Ask yourself: Why should a home seller work with me?
Your answer to this question is essentially your Unique Selling Proposition or USP — how you differentiate yourself from the competition.
The question … is it compelling enough? Will a potential seller know exactly what you will do to sell their home faster and for more money than anyone else?
Take a look at this data from the National Association of Realtors:
- Out of all the first-time home sellers, only 17% worked with the agent they used previously.
- For repeat sellers, only 24% worked with an agent they worked with previously. This means that the majority of repeat sellers worked with one agent, then a different agent, then a different agent again!
We can surmise from that data a couple of realities:
- Overall, agents are not doing a great job staying top of mind with previous clients or people they know
- They aren’t doing a good enough job sharing their USP for home selling
Unfortunately, many real estate agents do the classic 3 P’s for listings:
- Put it in the MLS
- Put a sign in the yard
- Pray that is sells
I really think many agents have just not made the adjustment from hot markets where that’s all that needed to be done. In the last couple of years, most markets have enjoyed (from a seller and listing agent point of view) multiple offers is certain price points and less than 30 days on the market.
Most real estate markets have shifted to a more neutral market, where days on market are 60-70 days and growing monthly.
We’ve been discussing and sharing strategies for listing on this podcast including:
- Leveraging Video – Episode 57 http://wbnlpodcast.com/episode57/
- The Pre-Listing Package – Episode 60 http://wbnlpodcast.com/episode60/
Today, we want to share the NEW 3 P’s – the REAL 3 P’s for your listing presentation
Discuss with the sellers the value of completing repairs on the property before you put it on the market. Ultimately, buyers will pay more for a home to avoid the work of fixing it. Buyers will see the work that needs to be done and immediately start deducting thousands of dollars.
Buyers are easily distracted, and they will tend to focus on the negatives instead of the positives of each home they tour. Help the seller understand that each dish left in the sink or dust bunny in the corner is going to detract from the perceived value of their home, which means a lower offer amount and more time on the market.
According to a recent study by the National Association of REALTORSⒸ, 96% of buyer agents reported that staging had some effect on their clients’ view of homes. They said that staging made it easier for their clients to visualize the properties as a future home and that they were more likely to overlook property faults. The survey revealed that 52% of buyer clients were willing to offer more on a staged home than a similar home that was not staged — as much as 20% more than asking price!
Take a staging class – or certification course. Partner with a home stager and consider adding a staging consultation to your overall services.
The first impression a buyer gets about a home that has been listed for a long time in this hot market is this: “Something must be wrong with that home.” That thought will scare away many buyers, and it’ll prompt the ones who remain interested to try to lowball you.
But why are those homes still on the market in the first place? It’s because they are often priced “out of the market.” It is imperative to discuss the dangers of overpricing with your sellers!
Use the classic Pricing Pyramid
or this updated version courtesy of The Paperless Agent:
The intersection of the two axes — price and preparation — represents homes “in the market.” These are properties that are priced competitively and prepared nicely, and these are the homes that will net the most money for their sellers.
As you move farther away from the intersection, the homes become too pricey and in too much disrepair. These homes show poorly and are basically guaranteed not to sell.
The curve in the middle of this graph contains homes in what call “Limbo Land.” Homes in Limbo Land are priced just over their market worth, or they are not adequately prepared to show. These properties are the ones that will stay on the market for months and ultimately sell for way under asking price.
The key to creating an auction environment is promotion. You have to get your listing in front of the people most likely to purchase it.
- Home Staging
- Getting professional photography completed
- Video tour
- Prepare initial social media ads
- Just Listed postcards
- Single property website
Post-Listing (On the MLS)
- Initial open house
- Ongoing advertising and marketing plan (online and offline)
- Network of agents – MLS
- More Open houses as needed
- Broker Open House
- Facebook/Instagram Ads
- Other advertising – featured listings
How to put these concepts into action:
- Prepare a document or Seller Guide outlining and explaining the 3 P’s of the Home Selling Process
- Include this information in your Pre-Listing Package
- Record three videos – Preparation, Pricing and Promotion and include in Pre-Listing Package
- Review it with the sellers during the Listing Presentation
At Home Connect America: THE Home for Teams, we see YOU as a small business owner. Home Connect America was created to help professionals like you build a successful real estate team. Our purpose is to help you seamlessly connect your business, your life, and your community so that you realize your ultimate goals and dreams. Our ultimate goal is to provide you with freedom. Everyone has a different objective and we believe that you should have the freedom to achieve what you want. We’ll be there to help you reach whatever that looks like for you. We make it happen with specialized coaching, training, and business systems designed to show you how to operate a successful business focused on providing excellent service and results.
Contact Jan O’Brien for a confidential interview to learn more about our proprietary training and coaching programs, team systems and software. Call or text Jan at 702-858-9191.
Real Estate and Reality meet as co-hosts, Jan O’Brien and Matt Emerson bring you Tips, Tools, & Topics to supercharge your business. They’ll share their insights along with interviews with industry thought leaders. The ethos of WBNL Coaching is helping you to align and connect so that you can prosper. The Wandering Zen segment will offer you some inspiration so that you can disconnect and recharge.
Visit WBNL Podcast for all of our Episodes, Show Notes, Videos and Links to Resources