Use these four simple questions to eliminate the unmotivated sellers before you waste time listing their home. There is nothing crazier than seeing another real estate agent list a house for $450,000 that comps out at $250,000.
Agents get so desperate for business that they’ll take anything they can get. The key to success in real estate is just like anything else. You have to select the good customers and get rid of the rest. Banks do this when they reject the bad borrowers and only lend to the ones most likely to pay. Agents get so ‘’busy’’ chasing down unmotivated prospects and working with unmotivated seller listings and unmotivated buyers.
They have no time for any profitable customers if they were able to find them. Then they wonder why they are going broke. Here is the best way to determine whether or not to take a listing. Several of the most successful agents I have known use this method.
Ask the seller questions to gauge their motivation. Motivation is everything. Motivated sellers that are broke will want to overprice their home in the beginning but will be realistic with the price when they have to move out of town for their job transfer.
Don’t take a listing just based on the price they want for the home. If they are in foreclosure, three months from losing the home, they are going to want every penny they can get because they need the money. They will overprice in the beginning, but the foreclosure will force them to price the home right.
There are two main things to look for with a seller. Let’s quickly go thru them below:
Motivation. Ask them where they are moving. Then ask why they are moving. Then ask what’s important to them about the move. It says in the Bible that, ‘’you have not because you ask not.’’ And a lot of people believe that the universe will give you what you ask of it. Whatever you believe, if you ask sellers to gauge their motivation, they will tell you.
You will be amazed at what people will tell you if you just ask them. ”Yeah Ben, we are moving to Omaha, because I am being transferred there for a great job that is paying more money and we’ll be closer to family.” Hmm, what’s important about the move?
I would say that I can give my family a better life. I’ll make more money, we can buy a bigger house and Omaha has lower crime and safer schools. And Robin’s parent will be only two hours away in Suskebush. I’m really looking forward to the move and I’m starting my job in 2 months. ”
Now you know that they are a motivated seller that is worth listing. Even if they want to list high in the beginning, if you call them every week and get the price down to reality, you will sell the home and collect a commission.
The current real estate market requires more work to sell our listings than the white hot market of 2005 to 2006. But, it’s easier to sell listings and if we have a system in place then that part isn’t that hard.
Here is the system that I recommend to keep your sellers happy and get prices reduced: First, call them every week either on a Tuesday or Wednesday afternoon. By this time you will have the showing feedback from the weekend showings.
Tell them what happened with their home this week and if necessary, ask for a price reduction.
Follow up on showings on Monday Afternoon. If you can’t reach the realtors call them again on Tuesday. Schedule the time to call all your sellers at the same time every week and treat it like an appointment.
This time is actually more important than a listing or buyer appointment. Don’t skip calling them one week. People like consistency and that is what you are giving them. Ask if they know anyone buying or selling when you call them.
If you are doing a good job, they will refer people to you. This will make your time calling them more productive and worthwhile. If you follow these simple steps, then real estate will be so much easier for you.