| Hey all, All month we are going to be walking you through the listing approach we used to list 114 homes in a single year--all at 8% in a market where 6% is the norm. And while netting our customers more money and selling them in half the average DOM. But before we dive into the approach, it's important to lay some groundwork. There are a number of common listing myths circling the industry. We see them on the internet, from the old-timers in the office, and even hear them from agents we consider to be on their game. We can't share with you a new way to list a property without unraveling some of these myths. Myth #1 "You have to list to last" The most common piece of "wisdom" I learned when I first became an agent was that "you have to list to last". And while the listing side of the business has its upsides, we can't see any reason why our very survival is predicated upon listing homes. So we began asking the old-timers why we needed to "list to last". And we basically got variations of the same three reasons to list homes: 1) to get leads; 2) to build our visibility by always having signs in yards (so I could get leads); and 3) to give us freedom to work our own schedule and not be continually at the mercy of a buyer's schedule. It wasn't exactly a surprise, but the bottom line is that there are only two reasons to focus on listings in real estate: 1) to get more customers and 2) to have freedom. So if you can solve the "more customers" problem and gain more freedom by some other method (building a team, cherry picking leads, etc.), you may never list another home, yet still do very well. Myth #2 "The CMA is the most important part of the listing presentation" While you will certainly want to do your best to prepare an accurate property valuation, your CMA isn't the most important part of your listing presentation. The reason that the CMA has historically been critical to the traditional model of real estate is that the traditional model relies on selling the client's home by price. Another approach to selling the home would be the "traffic" approach which we will cover later in this training. By using this approach, you'll find that the lowest starting price isn't important at all. In the event that the home is overpriced, the burden of justifying the purchase price is then shifted to the buyer and buyer's agent. Heck, that's why we use appraisers: to protect the interest of the buyer and particularly the security interest of the lender. Myth #3 "You should never take an overpriced listing" This is one is one of the most common but it's pure fiction. It even goes against common sense, and here's why: it's more important to persuade the seller to commit to selling the home than it is to haggle about the listing price. Everyone knows that the listing price is just a starting point-- a point at which very few homes sell. In some markets, homes are routinely bid on way above the listing price, while other markets experience deep discounting due to market conditions. If the home is severely overpriced, everyone, including the seller, will know very soon. And when the seller eventually reaches his pain point, the price will be adjusted. But in the meantime, you have a sign in the yard and a listing to generate leads with. "But it costs money to advertise a house," you may say, "and if it's not going to sell, the advertising is a waste of money." However, I say that advertising isn't for selling houses--it's to generate buyer leads. And lead generation should be the only reason you advertise. Myth #4 "Customers want the dog and pony show" It's 6pm, and you're supposed to be meeting your clients to give your listing presentation. As you get to their home, Mom and Dad arrive at the same time with kids in tow, coming from different directions. You can see the "oh, i forgot" look in their eyes as they attempt to compensate by greeting you pleasantly. When they open the front door, the dog springs into action, yipping and jumping on anyone and everyone within reach. The kids are hungry, the house is a mess and let's not forget the dog demands to be heard! If you're a listing agent, this scenario has presented itself to you more than once. All the characters are playing their parts as scripted, but nobody wants to be there. The seller, who just wants to sell the house, has taken on the role of prudent consumer. And many agents have never questioned this traditional approach or considered that there may be a better way. The fact is that the seller simply wants to find a competent agent who'll net him the most money in the least time. He doesn't care about your company, your zillions of dollars in production, your fancy Power Point presentation, your brochures and pamphlets, or even about making a new friend (although, if you do your job right, he will make one). He definitely doesn't want the circus I just described. Customers appreciate when you offer them competence, whether in person or on the phone. And yes, you read it right! We will talk about how to take listings over the phone later. Myth #5 "You should always put up the sold and pending riders" This is one of the most mystifying marketing blunders that we see regularly. The thinking behind the strategy is fine. By putting the sold or pending riders on the yard sign, you've shown all the neighbors how well you did at marketing the home. This was part of the farming strategies that were so prevalent back before the Internet broke geographic barriers. Back then it wasn't a good idea, but it's a truly bad one now. The only reason we should advertise is to get customers. The minute you put up a sold or pending banner (online or on a sign), the phone stops ringing. You will instantly lose 30-45 days of prime advertising time while the home is in escrow. And if the sale falls through, you've effectively taken the home off the market and lost valuable marketing time for your seller. Then when the neighbors see the riders coming down, they'll assume it was your fault the home is back on the market. We have a few more myths to bust tomorrow. So stay tuned.
Levi Jones PS. Advertising should be about generating customers. If you don't already have a plan for generating 2-3 new leads every day with your advertising, check out our Pipeline Pro Tools system. Or you can skip straight to the point and get a live demo of our lead generating tools--click here. Guerilla Realty |
Friday, August 10, 2018
Listing Myths Busted
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment