Tag: top coach

Price it right with three simple questions

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By Mike Pallin

You need a great pricing dialogue in this market. Relying on a stack of comps in a pretty binder doesn’t make much sense. Many agents will give prospects a price over the phone or send them comps. That doesn’t work either.

Instead, what if you added three simple questions to your pricing presentation that will help you get the home priced right when you are at the listing appointment?

First, a couple of quick pricing DO’s and DON’Ts.

Do your market research, but keep it in reserve unless you need it to answer a question or substantiate the price you suggest. Though you’ve invested time and effort in market research, too much detail will only create confusion and get your presentation off track.

Don’t talk specifics until you know first that they are sold on listing with you and your company. If they don’t believe you can get the job done, why would they believe your opinion on price? They need to know why so many people choose your company, what makes your marketing powerful and why you are the best agent for them. That has to happen before a discussion of price.

So, what are the three questions?

The first one is, “If we could agree on a price, would there be anything preventing you from letting me handle things for you?”

There is a sound psychological principle behind this question, whatever words you use. Asking for the listing, subject to agreeing on price, lets you know how well you have connected in the “like and trust” department. If the answer is “no” it’s time to talk price.

Chances are your prospects have heard all kinds of promises about a quick and easy sale outside of the traditional method among cooperating brokers. There is no shortage of information (and misinformation) about selling today. Real estate is no different from most products and services that can be had at the market price, or at a discounted price — and discounts almost always come with a cost.

So, start your pricing discussion by showing them what an investor would typically pay for a home like theirs. In almost any market, investors will pay 70% of market value. If your market is still “hot,” they may pay even more. Take the value you determined from your market analysis, and calculate what an investor in your area would probably pay.

Then tell them the full market price you determined from the comps. Just give them the number you think it will sell for — one number that represents full value. Describe it as “…and the retail price on your house would be $XXX.” All you’re doing is explaining the facts.

Then ask the second question: “May I show you how most successful sellers choose their price?” Explain the relationship between time and price. Everyone knows that discounted goods sell quicker than goods at full retail price. So, finding a buyer to pay wholesale might only take a day or two, while finding a buyer to pay full retail price will take longer. Next, estimate the average days on market for that area and price point. Add processing time between finding a buyer and closing. And show them a date when they might expect to close with a full retail buyer.

Now it’s time to ask the third question: “How soon do you want your money?”

They pick the time, you show them the price. If they want a different price, show them how long it will take.

Pricing isn’t an exact science, but it also isn’t a mystery. There is a direct relationship between the price they choose and the amount of time it takes to get it. It is our responsibility to explain that to our clients. Keep them informed as this new market evolves, and make sure to connect price with time.

Mike Pallin is president and head coach of The Floyd Wickman Team. The agents he personally coached in 2022 produced an average of 60 listings and sales each. He can be reached at 734-637-4030 or mike@floydwickman.com.

3 things to do to take advantage of the shifting market

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By Jared James

Unless you’ve been on hiatus for the last six months, you have for sure heard the words “shifting market” more times than you care to count. The problem with this is that it puts the focus on the wrong place. The question is not whether the market is shifting; the real question is how you are shifting in your own business to stay ahead of the market and remain the best option for your consumers moving forward.

Let’s talk about that.

I’m a big believer that there is no such thing as a good market or bad market. There’s just the market you are in and what you do with it. I don’t just run one of the largest coaching and training companies in the industry today; I’m one of those rare breeds that actually sold a lot of real estate before getting into this side of the business, and I can tell you that my best year ever selling was 2008. Not exactly the best time to be selling, according to all reports at the time.

So, here we find ourselves again at a time when the headlines are less than ideal and yet opportunities are everywhere if you know where to look and how to
capitalize.

Here are a couple of tips to help you take advantage of the market we are in while so many of your competitors are just hoping things go OK and waiting to see what happens.

1. Don’t build your business on rented land

Would you build a house on rented land? Of course not. Then why are so many of you building your real estate business on sources that you don’t control? That’s a dangerous game when you consider that any one of them could pull the plug on their leads program and you would be out of luck. Building on rented land has more to do with the intent than it does the source. I’m actually all for pulling business from third-party companies and buying leads or paying referral fees, as long as you understand that the ultimate purpose of that customer is to get them into your database. Your database is only business that you actually own and control and have direct access to whenever you need it. When you understand the lifetime value of a real estate client, and aren’t just looking at them as a one-time sale, you will start to understand that the answer to any market or the next disruptor is sitting right under your nose: it’s your database.

2. Build your content library

Our business has changed, and while none of you got into real estate to be a content creator, that’s what it now takes to be a successful Realtor.
We teach our students that our job every day is to give people in your area the opportunity to KNOW you so that they have a chance to NO you. Most of the people that would have worked with you in the past are not even giving you an at-bat in today’s world, because the first thing they do is go online and decide who to talk to. The agent that answers their questions before they ever even get a chance to meet is more times than not the one they use.

If you aren’t sure what videos belong in your content library, it’s simple … just look at the questions that your clients ask you by text and email, and answer those questions one by one on YouTube, Instagram and Facebook. That will be the start you need to get going.

3. It’s time to be a professional again

We just came through a market that was a fool’s gold market for anyone new in the business. That wasn’t a normal market by any standard. We are now entering a market where pros are going to win and winging it won’t cut it anymore. This means that you will actually need to have specific strategies that you follow every day for results. Not sometimes … every day. It will also mean that the words you use will matter again, because, like it or not, we are in sales and the quality of the answers you get will always be determined by the quality of the questions that you ask. So, practice, practice, practice and commit to being a pro.

The coming market should only be scary for those that aren’t prepared, but for the rest of you, get with your coach, come up with your plan for 2023 and then remember what we tell our students every day: consistency is undefeated. It doesn’t matter what you do tomorrow or three days from now. All that matters is what you will still be doing eight months from now if you want to see results and succeed in any market regardless of the conditions around you.

Jared James is an entrepreneur, speaker, coach and author.