How to Make CMA Price Adjustments to Listings Without Pissing Off Sellers

Yasser Khan — Sun, 08 Nov 2020 22:00:00 +0000

SUMMARY

There are few things more stressful in real estate than having an overpriced listing.

In fact, in my experience this is the number one reason that some real estate agents don’t like listings….
because if you don’t price a listing right, you know what’s going to happen, right?

Furious sellers who yell angrily at you!

The good news is that you can solve this problem relatively easily by following these five steps to make CMA price adjustments to listings without making sellers angry:

1. Start with the right price

One of the most critical skills you can learn is how to educate sellers on pricing and lead them to hire you to sell their property at a price that will allow it to sell and get them top dollar for the property.

Know that prevention is by far the best approach.

Did you realise that over 70% of listings are put on the market by agents at a price they will NOT sell?

That was shocking to me.
Over two thirds of new listings on the market will either expire, cancel, be withdrawn, or require one or more price reductions before they will sell!

That’s hard on you, the agent… and it also does not serve the seller.

Decide that getting the right price from the beginning is important enough that you will invest the time and effort to learn your market and develop the skill to actually convince sellers on the right price from the beginning.

That also means knowing how to help sellers beware of agents who are just out for a listing and will tell them what they WANT to hear, rather than the truth.

2. Let them know you’re “on top of it.”

The moment you realize the property may be overpriced, communicate quickly with your sellers.

The worst thing for your sellers to hear from you is silence.

They get unhappy very quickly when they don’t hear from you AND when they’re not having showings.

Call them within the first few days of not getting much activity and let them know you’re not satisfied with the lack of showings/interest.

It’s important to reassure them that the marketing is in full gear and that their property IS being fully exposed to the buyers out there.

3. Keep it about “the market.”

Remember, you don’t get to determine the value of their house…and neither do they.

How much they paid for it before, or how much they owe, or how much they want/need has nothing to do with the value of their property.

It’s all about the market…so always speak in terms of “what the market is telling us….”

4. Give them “fair warning.”

In other words give them a heads up that a conversation about a price reduction is coming.

In NLP (Neuro Linguistic Programming) this is known as 'future pacing'.

Before calling them on the phone and just “telling” the bad news “We need to reduce the price!”…let them know that if things don’t pick up in the next few days, you and they are going to be looking at the pricing situation.

So here is all of this in a BONUS script to help you with this conversation:

“I just wanted to let you know that… I’m not totally happy with how the number of showings we’ve had so far and how market has responded to our pricing.
…Because I’ve got your property fully exposed to the market…
and we’re getting it in front of the buyers, but we haven’t had the number of showings or the activity we like to see the first week on the market… 
Are you with me?
And you know… my commitment is to help you…get your property sold for top dollar, correct?
So… we’ll watch what happens this week…and I’ll continue to monitor it and follow up with all interested buyers…
and if we don’t get a real uptick in buyer interest, we’re going to want to re-visit our pricing and see if a price adjustment is necessary… 
Fair enough?”

5. Reduce the price sooner, not later.

The best time to get top dollar for a property is in the first 30 days on the market.

Psychologically this is very important for Buyers, so don’t procrastinate on adjusting the price or having this conversation with sellers.

Think about it this way, do we like to buy something old and stale…or new and fresh?

Whether it’s a loaf of bread or box of cereal or a new pair of shoes, or a car, people prefer something that’s new to market.

They don’t want something that’s been sitting on the shelf for months.

It’s the same with a house for sale.

The longer is sits on the market the less excited buyers are about it.

They lose any sense of urgency, AND when they do make offers, they tend to be lower offers.

It is in yours AND your sellers’ best interest to get to the right price quickly.

Final warning…when does this NOT work?

Either when the sellers are not motivated or if you’re not communicating well with them.

The motivation issue is likely something you can’t change.

However, the communication issue you can do something about…by developing your communication and influence skills.

That’s one of the primary things my coaching members learn from working with me.

Get more exclusive real estate agent training here 👉 http://www.yasserkhan.sg/👈

Learn How To Get More Real Estate Leads, More Listings, More Sales, with Less Resistance AND still have a LIFE!

Yasser Khan is a real estate coach, speaker, and trainer at YasserKhan.SG who teaches Realtors how to make more Money, have more Time and enjoy more Freedom without all the B.S.

Hey there! One of the biggest things about working with sellers is that there is a specific problem that many sellers give and that has to do with you know overpriced listing and many agents face the challenge of how to correct an overprice listing in a tactful manner. In other words how to make price adjustments to the listing without pissing off the seller? Hi, my name is Yasser Khan and I’m the author of Property Agent Secrets Book which is the most powerful book in the entire real estate industry guaranteed! For limited time, you can get the book for free, just pay for shipping over at propertyagentsecrets.com. So how do you make CMA price adjustments without pissing off sellers? So a lot of sellers, when they first start to list their house, they definitely have a very clear idea of what they want in the price but what they may not know is what is the actual market value of the house and the market value of the house has no bearing on the opinion of the seller or the opinion of the agent so many agents have to do a price reduction thankfully or you know risk letting the property rot on the market for too long and the buyers have this perception there's something wrong with the house because it's not selling for over three or four months so the question of making price reduction is a very sensitive one and sellers can obviously get very angry or very defensive so as an agent how do you do it in a way which gets you what you want which is get the listing sold as soon as possible and also help the seller you know get the price that he is looking for but may not be overpriced listing but actually close to the market value so how did you do that how did you juggle these two well what i found as a you know in my own career as well as the agent that it was an issue of education and i had to educate the seller in the right from the beginning and how i did that was basically i only chose to work with listing and i did my homework i found out okay the listing was priced at uh maybe let's say I’m just giving you a figure here let's say the little price at one million according to the market right but the seller wanted to sell it for two million and if i found these kind of sellers I wouldn't work I wouldn't want to work with this kind of sellers because this would these sellers were totally unrealistic and it's such a hassle to work with them because you know they will always say they are right and they will always get another agent to do it and in the end the other agent also loses because it's just bad business and it's bad marketing for the agent it's best business for the agent as well so how to resolve this problem basically you know i nip this problem in the part by only choosing to work with listings only chooses to work with sellers who are realistic who are willing to listen to me who understood you know what the market who understood market dynamics who understood that market set the price not the seller not the agent right and that is how i actually you know uh work with this kind of sellers and by the time the seller came to me i had an additional extra step i had to prepare them get them prepared for uh eventual price reduction right so how do they do that i didn't i didn't say it up front and leave it to last minute and that would definitely cause the seller to be totally shocked and the seller won't be happy about it and he'll be very very defensive and the better way i found through trial and error and through speaking with my mentors and working with other agents right the better way was basically to pre-frame it in future right so what i did was basically you know once i took up a seller right and i would do my competitive market analysis and i would say okay this is a bit far from the market price what i'm going to do is let's you know let's put it up on the market and let's see let's run it for a few weeks and after three weeks right after three weeks after you know after three weeks of being on the market it wasn't getting enough buyers wasn't getting any inquiries and if the listing wasn't even selling at all then I would basically you know communicate with the seller i would tell him hey this listing is not moving this listing is not going anywhere and i just want to be very clear about it I’m not happy with the response either and i plan to do something about it sure you know let's meet up and you know in in future I just want you to be prepared are you okay are you okay with you know doing a price adjustment according to the market I’m just putting it up front i just want and doing any surprises later down the road and i just want you to be prepared are you with me on this and that's how i would communicate with the seller i just saw i would talk to the seller and i will you know get their cooperation to work together with me and i mean that's the key thing that i found with a lot of sellers even though price reduction is very sensitive the right way to do the price reduction is actually to be very open about it to be very upfront to have a new bs approach and basically to get them on board with you by educating them by pre-framing them and in by preparing them basically in the future so once you take listing and you realize that maybe it's an overpriced listing then you tell the seller okay this is what i'm going to do but if after x amount of weeks or days if the listing is not moving if it is not going anywhere i need to do something are you with me on this or not are you prepared to do anything necessary to get the house sold you know and what i found the most serious will definitely say yes right so that's the secret to how to make a price correction on an overpriced listing the right way my name is Yasser Khan and I will hope to see you in the next video. Now, go sell houses!

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