In a Shift? Price Ahead of the Market. Jay White

Transcription

1 In a Shift? Price Ahead of the Market Jay White

2 Jay White Charlotte, North Carolina Mega/Expansion Team Owner KWU Trainer KW MAPS Coach

3 A Shifted Market Whenever supply (sellers) and demand (buyers) move out of balance. A shift to a buyer s market creates pain for sellers! Fewer sales Happens abruptly Causes fear and panic A shift can be an opportunity!

4 Main Ideas Perspective on Pricing Strategies Study Your Market Approach Sellers Get the Right Price! Manage Your Listings in a Buyer s Market

5 Main Ideas Perspective on Pricing Strategies Study Your Market Approach Sellers Get the Right Price! Manage Your Listings in a Buyer s Market

6 Perspective on Pricing Strategies 1. In a buyer s market, real estate becomes a commodity. 2. Only properties in good condition and priced right will sell in a buyer s market. 3. Price correct for bad condition, but condition won t correct a bad price.

7 Perspective on Pricing Strategies 4. Correct pricing represents 80% of marketing efforts. 5. You don t want to waste your time or the seller s time. In a competitive market, buyers have a lot to choose from and will not even look at overpriced properties, let alone make offers on them.

8 Understand that only properties in the right condition and at the right price are going to sell in a buyer s market. - The Millionaire Real Estate Agent

9 Your Role in a Buyer s Market You are no longer undervalued! Sellers really need you for: Pricing Strategies Market Knowledge Buyers Fiduciary Commitment Negotiation Skills Knowledge of Financing Options

10 What Are the Opportunities? Opportunities for Sellers Maximize investment and minimize losses Excellent opportunity to move up Potential gain in another market Opportunities for Agents Attract more buyers Gain more market share

11 Main Ideas Perspective on Pricing Strategies Study Your Market Approach Sellers Get the Right Price! Manage Your Listings in a Buyer s Market

12 Study Your Market 1. Be the Local Market Economist a. Be more knowledgeable than the headlines. b. Preview more properties to gain a better understanding of what is on the market.

13 Study Your Market 2. Analyze the MLS a. Take time to study and internalize the statistics that are reflective of your market and which matter to your sellers. b. Choose numbers and statistics from the MLS and use the data in a sentence later in the day. c. Choose a partner from your team or Market Center with whom you can practice the numbers. Meet weekly.

14 Study Your Market 3. Use Formulas and Graphs a. Enhance the raw data from your MLS by using formulas and graphs to illustrate the market to your sellers.

15 Use Formulas and Graphs The Activity Index The number of properties going under contract compared to the number of active properties on the market. Active + Pendings = Activity Index Pendings

16 Use Formulas and Graphs The Absorption Rate The number of months of inventory on the market. It demonstrates how long it would take to sell all of the current homes on the market if no other homes were to come on the market. Number of ACTIVE homes on the market Number of SOLD homes in the last 30 days = Absorption Rate

17 Most of us process information based on what we see. In fact, 65% of us are visual learners. -Forbes magazine Why Infographics Rule (2013)

18 Absorption Rate

19 Main Ideas Perspective on Pricing Strategies Study Your Market Approach Sellers Get the Right Price! Manage Your Listings in a Buyer s Market

20 Approach Sellers Find the Motivated You can only afford to work with the very motivated. Prequalify sellers before you make listing appointments. Update Your Listing Appointment

21 Update Your Listing Appointment Tell the truth. Be strong up front. Leverage the media. Listen for responsiveness. Learn new scripts and dialogues. Communicate effectively. Be prepared to answer objections.

22 Main Ideas Perspective on Pricing Strategies Study Your Market Approach Sellers Get the Right Price! Manage Your Listings in a Buyer s Market

23 Get the Right Price! Don t miss the window of opportunity. Original price is CRITICAL Help the sellers self-discover. Tell the tale of two markets. Don t chase the market.

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25 Main Ideas Perspective on Pricing Strategies Study Your Market Approach Sellers Get the Right Price! Manage Your Listings in a Buyer s Market

26 Manage Your Listings in a Buyer s Market Offer phenomenal customer service. Get price reductions! Auction your listings. Offer seller concessions.

27 My Takeaways from Putting This Presentation Together 1. There is no single factor bigger than price. 2. Let the numbers do the heavy lifting. 3. Consistently keep sellers informed.

28 Questions?

29 Thank You. Please discard all your trash as you leave! Please complete an evaluation for this session. Use any mobile device! Download a FREE copy of this presentation. Go to familyreunion.kw.com/downloads