19 Aug Setting Seller Expectations to Get the Right Price
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In the most recent edition of the RealNex Webinar Series, Senior Instructor of Commercial Agent Success Strategies and CEO of Bull Realty, Michael Bull, CCIM, shared his perspective on securing properly priced listings. During the session Michael focused on proven techniques to move away from “what the seller wants” to focus only on “what is the property worth”.
All too often agents fall into a trap of taking overpriced listings. While that might make the seller happy in the moment believing they have a chance of realizing an unattainable value, agents are doing themselves and the client a disservice going to market with an overpriced listing. The listing will languish and be perceived as “damaged goods” before finally being appropriately priced and sold, likely for less than it would trade for had it been priced correctly to start. Serious buyers know the market well and walk away when they see these situations, and if they do come back after reality sets in, they typically do not bid as aggressively as they would for a property that was priced right from the start.
Michael recommends a dialog focusing on what the property is “worth” not what the seller “wants”. Often the seller will have unrealistic expectation and not realize the unintended consequences of going to the market at too high a listing price. He suggests going into discussions with an “Auction” mentality whereby you know the highest price and the lowest fee you would accept to handle the assignment.
To bring the seller in line with market come prepared with comparable sold properties and current availabilities for sale and lease. Present detailed discounted cash flow analyses using market rate leases and reasonable assumptions. Be sure to analyze highest and best use of the property and enhancements that can be made over time to create additional value. Align yourself with the seller so that they understand you want to get top dollar and not underprice for a quick sale.
And, by the way, once they say “Yes” get your paperwork signed and get out the door. Don’t ever talk yourself past a closed deal.
Throughout the session you will learn specific language to use and techniques to deploy to get in the door, make your case, secure the assignment and then get to work selling the property. You will also get a peek into how RealNex can help you streamline the process of managing comps and preparing financials that quickly and easily demonstrate your expertise. By building a database closed sales and leases and understanding the market availabilities and trends, you can prepare professionally designed Proposals and Opinions of Value, complete with 5, 10 and 20-year analyses, within minutes to authoritatively support your recommendations and win business.
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