How to Convince Sellers When the Market is Turning

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SUMMARY

1. Know what’s happening in the market.

2. Keep it about what the market is saying.  (Only the market gets to determine what a home is worth.)

Watch this video for how to know if you’re market is turning: https://youtu.be/pvOHerMtBc4

3. Be straightforward and sympathetic.

4. Focus on motivation, not the market.

5. Be a problem-solver and focus on the big picture.

FULL TRANSCRIPT

And now you’re on a listing appointment and you got to convince the seller that he still thinks his house is worth a million or he wishes it were worth a million and it’s actually only worth 925. What do you do?

And what do you do whenever the market is going down and prices are dropping and sellers don’t like it?

So the first thing, I would want you to do is go back and watch the video that I published last week on the channel here on how to tell if your market’s turning. You’ve got to know if your markets turning or not.

Now we know it’s turning, if it is, we know it’s turning so now I’m sitting down with a seller, how do I convince them that it is actually turning? And with that, help them price it right. So there’s five things that you have to do to win with sellers when they’re not, you’re gonna have to tell them something they’re not gonna like to hear and you’re gonna have to convince them to agree with you and take the right actions in terms of pricing and selling the house.

Number One:  What’s Happening in Your Market

So number one, the first thing that you have to do is you have to actually know what’s happening in the market. You’ve got to know how much inventory is, is the inventory increasing? Are days on market increasing? The month supply, is it increasing? You’ve got to know what’s happening in the market so that when you show up and you have this conversation, you have certainty. That you’re confident and you know what’s up. Because if not, they challenge you on it and you go like, well I think and you come across as uncertain. They’re like, “Oh you don’t know? Then I don’t trust you. You’re just trying to price my house low.”

Right? So you have to have that certainty and conviction so that you can stand up against their skepticism. Because they just don’t want to make a mistake and they don’t want to lose money. You have to understand where they’re coming from, which we’ll get to in just a second.

Number Two: The Market Rules

Now the second key to convincing them that the market rules. The market is in charge. How much is their house worth today? Well it has nothing to do with how much they paid for it. It has nothing to do with how much they want for it. It has nothing to do with how much money they put into it. It has nothing to do with how they feel. It has nothing to with what they want. What determines the value of their house today? Answer, the market.

The market is the only one that gets to set the value and the price on a home. If they set it based on what they want or how much they need, then they’re paying attention to something that’s totally irrelevant and disconnected from the market. The only thing that matters is how much is a motivated buyer willing to pay for your house in today’s market? By the way, that’s top dollar. So I train my coaching members that you should sell every single listing for top dollar.

Well what is top dollar? Top dollar is the most money motivated, qualified buyer is willing to pay for your house in this market when you’re represented by a good listing agent that knows how to negotiate the price. It’s the most money you’re gonna get for this house in this market. That’s top dollar. We’ll say, well I think it should be worth, I think I should be able to get 1.1 million. Right but what you think is not, has no connection to reality.

So when you’re talking to the seller, you must keep the conversation about the market and what the market is telling us, what the market is saying. So based on what the market is telling us, this is the price. All right? So you’ve got to do this. So one you have to know the market and then you’ve got to be able to speak market to them and say the market is telling us this. Well if I list it at your price, and you’ll hear sellers say that. They go, “Well I don’t like your price.”

And I hear what you’re saying, I see, I know where you’re coming from, however I just want to be real clear. It’s not my price. Unfortunately, I don’t get to choose the price for your home. The market is the only thing that can really determine the price of your home that’s gonna actually let your home sell. So you must keep it about the market. Not what they want, not what you think, not what you feel. None of that matters. It only matters what the market is saying. So that’s what we need to speak is always talk in terms of what the market is saying. If you ever say, well I think it’s not gonna sell for that or I think that’s too high. Then they’re going, well I don’t care what you think. Right?

Don’t make it about what you think. Make it about the market because the market knows and they cannot argue with the market. They can argue with you all day long, but they can’t argue with the actual comparable sales in the market because that’s the market talking and the market is the only thing that’s right.

Number Three: How you communicate with them

Number three is you how you communicate with them. You got to communicate straight and sympathetic. You got to be straight forward with them and you want to be sympathetic with them at the same time. Which means, I hear what you’re saying, unfortunately that’s just not gonna happen in this market. So I’ve got to be straight and shoot straight with them. Be honest, but I hear where you’re coming from. You know and I hated it too when I saw the comps I’m like, oh, I know this is not what you guys want and I totally, I’m with you on that. I would love to be able to get 1.2 million for this house, but unfortunately the market is very clear, based on the comps that the house is only going to sell for about one million dollars.

So I’ve got to be able to be straight forward, have a straight forward honest conversation, don’t BS them, don’t say, “Well we can try it.” And start giving them BS talk to try to get the listing. But at the same time don’t just run over them and go, “I know what you’re thinking, I know what you want, it just doesn’t work that way. So you want to sell it, you’ve got to price it here.”

Be sympathetic, “I hear where you’re coming from. I wish that we could, I wish there was any way that we could do it to 1.2 million. I mean I could list it at 1.2 million, the problem is it wouldn’t sell for that and over time it would just make people think what’s wrong with that house and make them make lower offers. So I hate it too. I was surprised too.”

In other words you’re letting them know, without sounding trite, I feel you’re pain. I get it and I hate it too. I wished, you let them know you’re on their side. So you’re straight forward with them, but you’re also sympathetic.

Next thing is always focus on their motivation. And that is go back to what they want. In a down turn, in a market that’s turning downward and we don’t know what’s gonna happen next, right? You never know how far it’s gonna go, how low it’s gonna go, how fast it’s gonna go. We don’t know any of that. So it all comes back to their motivation. If their motivation is tied to getting a certain price and the market’s going down and their price is up here high, then they’re probably not moving. Be their friend and say, “Look here’s the reality. It sounds to me like right now you guys should stay put. If anything changes let me know. Let’s just stay in touch and we’ll see how it goes.”

If their motivation is they have to move, then you’re job is to have that straight forward conversation. Sympathize with their pain and go, like I get it but we got to do the right thing here. Always focus on the motivation. If their motivation is they have to move, then you’ve got to be strong and straight forward and sympathetic. If their motivation is, well we only want to move if we can get our price. Then you’ve got to be clear enough to go okay I get it, it’s just not gonna happen right now. And have a straight forward, honest conversation with them and be their friend and keep communication lines open so that when their motivation does change, you’re ready to help the.

Number Five: Take them back to the big picture

And then fifth is always take them back to the big picture. Always take them back to the big picture. What is the big picture? The big picture is what they really want in their life. Look here’s the reality and let’s face it, most people move because they want to move. That’s the reality. Most people move because they want to move. This is something they, this is gonna help them get, move forward in their life. There’s some reason if we stay here, this is not what we want in our life. Okay? You know you go like, well they’re not moving because they want to move, they’re moving because their job transfer requires it. No, the job transfer is just saying like, hey if you want to keep this job you got to move. And they’re going okay do I want to keep this job? Yes I want to keep this job. Then I want to move right?

Go back to the big picture of what they really want. If they’re going through a divorce, you have unfortunate situations where they’re selling. What they want is they want to get past this pain in their life and move on with it. So I have to keep the perspective of, well I want 1.2 million for my house and I hear you and I wish the market would allow it. However, what’s gonna happen if we try it at 1.2 million and in six months from now you guys are still having to deal with this house? Well let’s just say they’re gonna have to sell it for $50,000 or whatever, we’ll just say $50,000 less than they want.

Here’s what I got to focus on. Two years from now when you guys are sitting in your new home, aren’t you gonna be glad that you decided to go ahead and make the move and every day you get to enjoy this new home that you wanted instead of being stuck there, upset that you could not get a price that you wanted? And you can use numbers, talk about you know reduceage the ridiculous to where you go like, if you’re gonna lose $50,000 in four years, that comes out to only $1,000 a month. And you can afford it and it’s just, is it worth it to be able to spend the next four years living in the house you want to live in and being in the city you want to be in or being close to your kids or grandkids?

Always go back to the big picture of what they want and think to yourself, how can I be the problem solver and help them see the reason that making this move is good for them? Now if there’s no way that it’s good for them, like if it puts them upside down in their finances or you know it’s not the move they really want to make, leave them alone. Right? But it they’re, if the big picture is I can help them make this move happen and even though it’s, there’s something about the price they don’t like or they’re gonna have to, they’re not gonna pocket as much money as they wanted to or they’re gonna have to put more money in out of their pocket into the next house. All of that.

I’ve got to look at what they really want and how can I help lead them to a decision that a month from now, six months from now, five years from now they’re gonna be going like, “Thank you so much for helping us through that tough time when we hated what the market was doing, but we realized it was still the best move for us.”

If you can keep your head about you, when all around you are losing theirs, you are gonna win. And you’re gonna help a lot of people win. So I hope this has been helpful for you and just kind of keeping that perspective, when as this market turns, and whatever it’s doing in your community or your market right now, whenever you’re watching this, markets turn. They go up and they go down. And when it’s going down. It requires you to be more prepared. To be stronger, to be better or you’re gonna end up taking a lot of overpriced listings and sitting there and they’re gonna be mad and you’re gonna be mad and it’s gonna be miserable.

So this is a time to be preparing for that. Hope this video has helped you prepare. If it has, make sure you give it a thumbs up. Post any comments or questions you have in the comment section below. And subscribe to the channel if you haven’t done that and I’ll look forward to seeing you on the next video.

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