In a sellers’ market, salespeople could quote almost any price to sellers and rely on a rising market to achieve their overquoted prices.
I won’t go into the ethics of this practice, but suffice to say that this type of salesperson is going to find life very difficult as the market shifts, and I don’t feel sorry for them one little bit.
As the market transitions from a sellers’ market to a stable market and then into a buyers’ market, the time may quickly come in your area when it becomes necessary for you to give price more focus in your listing presentations.
To make sales in stable markets, and especially in buyers’ markets, salespeople must “price right”, and this requires skill.
Here are some strategies you might consider so that your listings are priced to sell:
Accurate Estimated Selling Range
Salespeople are notorious for avoiding the issue of price. They use no price strategies such as Expression of Interest or auction, but these are less effective when buyers are calling the shots.
Sellers must hear an honest estimate of the likely selling price range for their properties in this current market. This must be done diplomatically, but it must be done.
For many years I have said, “To tell the truth in real estate and still win the business, you must be an outstanding presenter‘.
Your competitors may lie, but you should not. Ever.
Evidence is now more important in a shifting market. Comparable sales that are three months old may no longer be relevant.
Do your research and give evidence that helps sellers understand where their property sits in the current market.
Accurate and specific price feedback
Salespeople don’t like delivering bad news, and with the wrong attitude passing on buyer feedback to sellers can be regarded this way. Instead of looking at delivering price feedback as bad news, change your thinking – you are helping your clients achieve their goals.
Buyers will not give you their opinions of price unless you ask them. When you ask buyers what they feel your listing is worth, and then pass that feedback to your sellers, you are doing your sellers a great service.
Since most sellers are expecting more for their properties than they are worth, sellers must be coached to help them see where their property sits in the market. This must be done honestly and without pressure.
Accurate feedback from specific buyers helps sellers to move from overpriced to market price.
Why do your clients want to sell? Do they have a strong reason for putting their property on the market? If they don’t, why take them on?
Working with people who aren’t serious about selling, who don’t have a strong emotional centrepoint for selling, are not only a waste of your time and your company’s money, but they also wear you down. In buyers’ markets, you will face enough negativity without inflicting it on yourself by taking on the wrong people. Leave those sellers who aren’t serious for your desperate competitors.
A Time For Skill
When the market shifts, it becomes a time for skill. There are many real estate salespeople who are what I call “market victims’. When the market is booming, those salespeople do well. When it isn’t, they don’t.
Skilled salespeople do well in every market. They know that when the market changes, some of their selling techniques must also change.
They know they must price their listings to sell.