The Elephant in the Room Part 2: Five Tips for Working with Unrealistic Sellers

Last week we shared the first two of the “Five Tips for Working with Unrealistic Sellers” from a great article from the RISMEDIA Weekly Business Builder. As a quick reminder, those first two tips were: 1. Understand where they’re coming from and 2. Have the difficult financial conversation. Here are the last three tips for dealing with that elephant in the room:

3. Explaining the 10 days or 10 showings rule
If other properties around them are selling quickly (within days of listing) theirs will too — if it’s priced realistically. If their listing has been on the market for 10 days with no showings and no offers, it’s time to drop the price. Explain to them that the bulk of showings will take place in the first 3-4 weeks of it being listed. If they wait too long to drop the price, their property will be presumed to be overpriced by other agents and buyers, and not be shown.

Build the price-reduction process into your contract, so you don’t have to go back and convince your sellers to lower their price. Remind clients that this is not personal, but practical. If you explain this process during your first meeting, you’ll save yourself a lot of future headaches. The first meeting is when clients are typically more open to hearing how things work, and what they can expect from you.

4. Show-and-Tell
When a client wants to list for $350,000, and you know the house won’t sell for more than $210,000, invite your seller to go on a home tour with you. Show them what a $350,000 home looks like. Most people can’t imagine a $140,000 difference, but when they see that a $350,000 property is bigger, nicer and more luxurious overall, it sells your client on a reduction without you risking offending or angering them. You’re just showing them what a real $350,000 home looks like.

5. Create a buyer feedback system
The results of this buyer survey will go directly to both you and your seller. That way, the seller gets feedback about price directly from buyers. They’ll realize it’s not just you thinking the price is too high, but the market does too. Not only will the emails give you a reason to approach your seller, but they may also even initiate the “Maybe we should lower the price” conversation you both need to have.

In the beginning, it’s not an easy process, but the more you do it, the more comfortable it becomes for both you and your seller. As you approach the midpoint of the year, it’s time to reflect back on your 2016 goals. How many properties do you plan to sell this year? To make sure you’re meeting your goal, it’s important to connect with the right consumers. Position yourself in front of buyers and sellers who are actively searching for properties in your local area.

Thanks again, RISMEDIA for some excellent tips to keep in mind for when we encounter our first—or next—elephant!

David M. Hassler

VP, Professional Development