Agent Academy: How We Handle Price Reductions With Sellers
Do you have a stubborn seller that wants to stick to their price? Even when the data is telling them differently?
I am going to show you EXACTLY what my Beer Home Team at eXp Realty does to get our clients to take action.
This technique has been a massive support in doing $215 million in sales last year!
When all the data is pointing to your client being miss positioned for the market, but they won’t act, this is the system we use.
We draw out a diagram for them to illustrate exactly what the market is doing so the client will understand and be more prepared for a potential price drop.
In the video at 1:13 I will share the exact presentation we will show to our sellers.
“In any market cycle, especially when it shifts, we start to see mounting inventory. The “x” represents homes that are all starting to sit on the market in a very tight price range.
The buyer, when interest rates are changing, buying power is changing, and more options for them. The Buyer is looking for value.
That will never change, in every market, they are looking for value.
But what happens is, these homes tend to sit, days on the market are growing. Eventually one of these people [Sellers] just needs to move. They may be sick or just sick of waiting.
For whatever reason, they need to move, and they will drop in price – and they will sell.
Then what happens is all the other people [Sellers] start to move down and join them at this price range. Because now that is a concrete sell and the Buyer are looking for value.
And eventually, after all the Sellers have lowered their price, we now have a new market.
But now the homes are all sitting again because there is no differentiating value since they are all in the same price range.
Then again someone in this market needs to move, and they lower their price. They sell, and then everyone starts to join them now in the new price range.
This is what you probably heard as “Chasing the Market” and this is what it looks like.”
This is the exact dialog and system we use to explain this problem to our Sellers.
The real key for your client is on which step of this ladder are they going to sell at? Because the prices will continue to drop.
By illustrating this to your client, you have to encourage your client to be as high up the ladder as possible, to retain maximum value and equity.
Use this with your clients to show them the dangers of chasing the market.
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