CLIENT SERVICES (This is the title or cover page.)

'Mr. and Mrs. Seller, If you were to hire an agent to market your property, what would your expectations be? What would you expect from that company and that agent?'

 

Page 2 "What are your goals In selling your property?  Are you looking to get the most money in the shortest possible time with the least amount of Inconvenience? .... Which is the most important to you? Which is the least? If I can prove to you I can do that, will you hire me?

 

 

Adjacent to this page you could include an outline of your or your company's marketing plan.

 

"The pages in this booklet will help me explain how our marketing program works and how ft will get you the most money for your property."

 

 

Since you will be using this page while going over other pages in the manual, ft should be taken out of your binder so it is easy to refer to.

 

"As you can see this page reads, 'Greater exposure will help sell your property faster and at top dollar.' Wouldn't you agree? Let me show you what we do to maximize the exposure of your property to the market place.'

 

Place a photo of your company staff, building or company sign on this page. Or you can place some statistical Information about the number of properties your firm sells in comparison to other firms. Or if your firm is small, a statement like, "We're large enough to get the job done and small enough to be personal'. Familiarize the sellers with your company.

 

 

 

"Our" For Sale "signs attract qualified buyers. Did you know seventy percent of our sales come directly from calls on our signs? You don't have a problem having a sign placed on your property do you?'

 

Include a photo of your "sold' sign on this page.

 

Talk about your company's advertising program and policies. Adjacent to this page display some samples of the classified ads your company runs. If possible have a couple of ads already written on the seller's property. This will help the sellers visualize their property being advertised. Get their Input and suggestions.

 

"Our Open Houses will expose your property to more buyers. Buyers like open houses because they have the freedom to look at a property without committing themselves. Would you permit us to occasionally hold your property open?'

 

Include a photo of a property with an open house sign or one with you welcoming a couple into one of your open houses.

 

Refer back to Page 4 (Remember, it is out of your binder.)

 

"As you can see from this page, both you and I can place a "For Sale" sign on your property, advertise it and hold open houses. However, if a buyer doesn't see your sign, appeal to your ad, or notice your open house you may never have a chance at a prospective purchaser. However we have many signs on properties. Calls from other signs, produce buyers for your property. We will let those calling on properties similar to yours know about your property as well."

 

If signs are prohibited in their neighborhood say, "Even though we (assumptive) will not be allowed to place a sign on your property because of the restrictions in your neighborhood, signs we place on other properties will generate inquiries from buyers who may be good prospects for your property."

 

The same works for advertising. Calls on other ads, will produce prospects for your property. Buyers from other open houses may turn into hot prospects for your property. We have dozens of open houses per week. Potential buyers will be found for your property In the process of holding others open. If prospective buyers don't see your ad, your sign or notice your open house, you lose. But, we have many ads, signs and open houses working for you.'

 

"Plus, because of our Multiple Listing Service, this exposure is multiplied hundreds/thousands of times. The Multiple Listing Service (MLS) exposes your property to nearly every agent In town and their buyers.'

 

Explain the benefits of the Multiple Listing Service. Adjacent to this page you could insert a copy of the MLS agreement or a sample page out of the MLS book. Show your MLS book.

 

'We permit the agents of other companies to show our listings through a service called Multiple Listing Service, commonly referred to as MLS. There are hundreds/thousands of agents in this market area (show agent roster) who control hundreds/ thousands of potential buyers. Through MLS we can expose your property to these buyers, many of which you or I may never meet. An agent from another company earns about the same commission for selling one of my listings as his own. Therefore, most agents are motivated to find the right property regardless of which company has it for sale. This insures that other agents will be motivated to sell your property."

 

"Therefore, (referring back to page 4) every sign, every ad, and every open house used by any real estate agent will be attracting prospective buyers for your property. When an agent is contacted by a buyer from a sign, ad or an open house, that agent works to locate a property for that buyer regardless of what company has ft for sale. When you put your property on the market with me, our MLS service insures that every potential buyer will be exposed to it. The more buyers we can expose your property to, the greater chance of you receiving top dollar."

 

 

"Do you know the type of buyers who usually pay the highest price for a property? It is typically the buyers being transferred from out of town. They are the ones willing to pay a fair price for the right property. Many times their purchases are being subsidized by their company. Our relocation service directs out of town buyers to your property. Our relocation department/program insures that we are in touch with such buyers before they arrive. That way we can direct them to your property. Since people being transferred are not familiar with this area, most wouldn't even know where to find your property. Those that did would not be able to make a decision because they would be unfamiliar with the area. That is why most of them work with real estate agents.'

 

Adjacent to this page you might want to show Information about your company's relocation program or perhaps a diagram on how it works.

 

 

"And remember, through MLS, every company's relocation program, will be working to attract prospects for your property.'

 

"Each agent in this area has several buyers they are working with. Multiply that by the number of agents and you're talking about thousands of buyers. Certainly these agents are not going to direct their present customers to your property, unless of course ft is listed with a real estate firm.'

 

'This year, there will be hundreds of buyers walking into real estate offices all over town looking for agents to assist them in locating properties. Many of these walk In customers you will never see and the agents will not bring them to your property, unless of course it is being handled by a licensed agent.'

 

"Now, let me show you something. This is my MLS book. There are currently over 5,000 (or whatever) properties listed for sale in this book. Eighty percent of these people will be purchasing another property right in our metro area. These people (holding up MLS book) already have a close relationship with the agent selling their property. When it sells, they are going to look to the same agent to help them locate and consummate the sale on their next one. That is 4,000 motivated prospects with cash in hand, needing to find a property to settle their families. There isn't an agent in town who would direct buyers from sold listings to your property unless it was being handled by a licensed agent."

 

"You are only one person. I am only one person. The way to get your property sold is to get every agent in town working for you. That way, your property is getting exposed to every potential buyer. I utilize several methods to promoting your property to other agents to increase its exposure. Let me show you a few…”

 

 

"Property tours and broker open houses familiarize other agents with your property.'

 

Explain how property tours and broker open houses will expose their property to other agents.

 

"I usually like to have a broker open house within the first 2 or 3 weeks in the marketing of a property. Would that be alright?"

 

Place a photo showing yourself hosting a broker open house or greeting agents on a property tour.

 

 

"Flyers get other agents excited about selling your property. With so many properties on the market 'it is hard for agents to remember one property from the next. I distribute flyers to all the companies and top agents in our market area. These flyers get other agents motivated to sell your property.”

 

Adjacent to this page, have a sample promotional flyer or a mock up of a flyer you will use in marketing their property to other agents. Got their input. Get them involved.

 

 

"Informative brochures keep buyers thinking about your property before and after the showings. Mr. And Mrs. Seller, we will create a brochure on your property similar to the one you see here. Sometimes we use two different types of brochures. One that gets buyers to call and another that is given after they have seen the property.'

 

A sample brochure should be placed on the adjacent page. Better yet, have theirs already finished, or a rough draft. Show a photo of your brochure box ff you use one in conjunction with your sign and explain its benefits.

 

 

"An Information box on your sign distributes flyers that increase buyer inquiries. With your permission, I will place this information box on your sign (show the sellers your information box). It will turn the sign we place on your property into an information center designed to get buyers to call. Buyers won't have to write down or memorize the phone number on the sign; they simply take a brochure from the box. The information on the brochure will increase their interest and excitement level on your property making them more prone to call. If they don't call I can't show it. We have found that the inquires more than double when there is an information box on the sign. Shall we put one on the sign we place on your property?” (If they give you their input the listing is 80% yours.)

 

If you utilize videotaping to market properties use this page here. Include a photo of you video taping a property or of a prospect viewing videotape. Explain or have outlined your video taping program.

 

 

"We locate additional prospects for your property from referrals from past customers and from referrals from other agents outside our market area. These are prospects you would never meet. Even our MLS computer is working for you through computer selection. An agent merely enters a buyers property requirements into the computer, then, if your properly meets those requirements it is selected for showing.'

"As you can see, we can expose a property to more buyers than a seller can. Therefore, we have a greater chance of finding the buyer who is willing to not only purchase your property, but pay top dollar for it. The net dollar you receive on the sale, even after commission, will be higher. Can you see how we can provide greater exposure for your property? Would you permit me to place your property in the Multiple Listing Service?"

 

If the prospect answers affirmative to this question you have just listed the property. If not, continue.

"Although we work hard to expose your property to every potential buyer, we have many other services we utilize to help got your property sold.”

 

"We will help you prepare your property for sale to help realize top dollar. Packaging and preparing your property for sale helps you realize top dollar In a short time. Obviously you wouldn't try to sell your car without washing it, or touching it up, would you? A few minor alterations could bring you much more money and a quicker sale. We will advise you as to what you can economically do to increase the marketability of your property.' (Don't give them much advice on packaging their property until it is listed. This is a service you provide your clients.)

 

 

"Buyers are always afraid to purchase a property they are unfamiliar with. Our warranty program protects you and puts the buyers at ease. If buyers know that the property is covered by a warranty program they are much likely to purchase the property and at top dollar, wouldn’t you agree?'

 

Include a copy of a warranty program your company uses showing its benefits and features.

 

 

 

"Our guarantied sales program allows you to purchase your next property prior to this one selling.' Talk about your guaranteed sales program if you have one.

 

If your company has a guaranteed sales program this is the place to talk about it. Include a copy of your guaranteed sales agreement or a brochure explaining the program.

 

 

"When people try to market there own property, they get phone calls and knocks on their doors at all hours. When you put your property on the market with us Showings by appointment will keep Inconvenience to a minimum. Typically, an agent will contact you by phone before showing your property. We permit most agents to contact you directly to set an appointment to show your property. Would that be alright with you?"

 

Go over your company's showing procedures.

"A lock box allows your property to be shown when you're not there. The advantage of having a lock box is tremendous. It an agent wishes to show your property he will call first. If you're not in, then he will use the lockbox. It allows you to go places without taking your property off the market. lt's very safe. Here, let me show you how it works...'

 

Include a photo of a lock box installed on a very expensive property. They will be more agreeable to placing one on their property. You should explain about the safety and security of using a lock box and overcome any fears they may have. Take a box, ask them for a key and demonstrate how it works. You might want to actually place it on their door.

 

 

"Mr. and Mrs. Seller, when we find a buyer for your property, I will present all purchase agreements to you and estimate your not proceeds. I'll be there to help you through Inspections, appraisals, escrow and closing.' Paste a checklist or sample net sheet on this or the adjacent page. Talk about the procedures you will take when a purchase agreement is written. Then, you close to determine if they are ready to work with you.

 

"Does this sound like the kind of service you would want in the sale of your property?" (Yes.) "Would you feel comfortable with me handling the sale of your property?"

 

If they respond negatively, ask them why. Got their Input then go into the in depth benefit module of the presentation. If they respond positively, ask them to sign the listing agreement. Then skip to the Price Setting Module and help the establish the asking price. Remember they can decide on the asking price after they decide to work with you. If they ask why the agreement does not show the price simply say:

 

"When we enter into this understanding, I become your employee. I work for you. I will give you some market Indicators that will help you determine the asking price, but ultimately you are the one who decides. We can decide that in a moment. What I would like to resolve now is would you like me to be the agent to get your house sold? (Yes.) Would you be so kind ... (pointing to the signature line on the listing agreement)?*

 

 

If the prospects are still resistive and insistent on trying on their own, continue with the following in depth benefit section of the presentation manual.

 

"I can understand you wanting to try on your own, but let me show

you something...'

 

 

"People try to sell their own property for various reasons. Here are four of the common reasons. They feel they can do it themselves. They want to save the commission. They don't know a competent agent. Or they've had a bad experience with a salesperson. Mr. and Mrs. Seller, when you decided to place your property on the market yourself what were the reasons behind that decision?"

 

 

'Studies show that 90% of the "By Owners" eventually employ an agent and, of the owners who sold their own property, 90% would have netted more had they used an agent I know that may sound like a lot of propaganda, but lot me show you why it is true...'

 

 

"There are many reasons why 'By Owners' are offered less for their properties. One is that buyers know the seller is not paying a commission. Lf you were a buyer what would motivate you to purchase a property for sale by owner. (A better price.) Am I correct in assuming; you are selling your own property to get more money? (Yes.) Then, how can you expect to get more money for your property, when the potential buyers are expecting to pay less?"

 

"'By owner' properties attract bargain hunters and speculators. When you offer your property for sale people automatically deduct the commission plus more. You attract bargain hunters and speculators who have only one thing in mi no, the lowest price possible. You don't save anything, they do. Are you trying to attract bargain hunters or someone willing to pay a fair price for the right property? (Someone willing to pay a fair price) Haven’t I already shown you how we do that?"

 

"Buyers, unsure of property values, will offer less. Obviously a speculator or bargain hunter will offer you less. But even someone willing to pay a fair price for the right property, will offer you less than he would with an agent. Since he is unsure of your property's value, he will automatically offer less. The only way for people to substantiate the price is to took at some comparable properties. To do that, they need an agent. The agent will convince most buyers that they are not saving anything by purchasing your property and sells them on what he shows them.'

 

"A big reason sellers are offered less for their properties is that buyers have no one to help them make a decision. Is hard enough for a person to make a decision on a small item, let alone the purchase of a property. As the seller you are in no position to help the buyer, after all, you have only one house to sell. Buyers are aware that I earn a fee on whatever property they purchase. No one can convince them to buy your property if they don’t like it, but if they do, they will look to me to help them make a decision. If they don’t got encouragement and emotional support, they will probably make no offer at all. One of the biggest fears people have is a fear of making a wrong decision. Rather than make a wrong decision most will just keep looking. I am in a strong position to help them make a decision to buy your property, and to encourage, substantiate and justify a decision to pay lop dollar. Don't you agree?'

 

"Another reason sellers are offered less is because 'By Owner' properties have less exposure to potential buyers. (Remind them of what you covered on page 4.) Would you agree that greater exposure will bring you more money?"

 

"Mr. and Mrs. Seller, can you see why most buyers would offer less for a property offered by an owner? Will you let me go to work for you today?' (If the sellers are still negative continue.)

 

 

 

"Let's look at it from the buyers perspective. Most serious buyers work with an agent because an agent can expose them to more properties. There are hundreds of thousands of properties for sale in our market place today handled by real estate agents. There are only a few offered by owners. If you were looking for a property would you limit yourself to only those offered by owners? Most of the properties offered by owners are over priced. If a buyer doesn't want to miss out on something, he must work with an agent.'

 

"Buyers from out of town will not make a decision until they got some insight as to what a town has to offer and become familiar with the various neighborhoods. An agent can familiarize them with the area. The typical seller is not in a position to do so."

 

"Buyers are afraid they are going to miss out on the right property. They actually look for a good real estate agent to hook up with because an agent can assist them in locating the right property.'

 

"Once a buyer finds a property of interest there are always questions about the property that need answering. However, most buyers would be reluctant to ask the seller these questions, fearing it may hurt their bargaining position. Most buyers like working with a real estate agent because an agent can provide more Information.'

 

"Buyers are afraid of tipping their hand to the sellers. That is why they like the benefit of working through a third party. They would rather have us work as their liaison rather than have to talk directly to the seller. We find most sellers also like the advantages of going through a third party, wouldn’t you?"

 

"Many buyers are more concerned about how they are going to finance the property than locating ft. Many do not know the first thing about financing a property. Many have credit problems that could inhibit their qualifying. Most buyers seek the help of an agent because they know an agent can recommend financial alternatives. In today's market, the price paid for the property is not as big as concern to potential buyers as being able to acquire the financing for it. I can help them.”

 

"Another reason most buyers like to go through an agent is an agent can help them write a purchase agreement. Do you have a purchase agreement for buyers to sign if they wish to purchase your property? Who prepared it? They will probably take it to an attorney for review. Once that happens who know what the attorney will advise them. Maybe they will be advised to make a lower offer. Buyers know that real estate agents are regulated by the state. We have an industry standard form. They are much more apt to signing an agreement with me, without seeing an attorney, wouldn’t you agree? Or would you rather they go to an attorney?"

 

"And look at all the other paper work ft takes to consummate the sale of a property. (Take out the forms and spread them across their table.) Look at all these forms! Who is going to keep them from getting cold feet when they are asked to sign a stack of legal forms they know nothing about? An agent can explain the forms and agreements. Finding buyers who like a property is the easy part. I really earn my fee when I get buyers financed and through the escrow period without backing out. A buyer wouldn’t let you help him even if you could, am I right?"

 

"Most serious buyers like to work with us because an agent's services are free. Because of the services we provide buyers, they are more inclined to pay a higher price. When someone buys your property and you pay my fee, whose money are you using? (The buyers.) So in reality it is the buyer that pays my fee, not you. Because we are in a position to logically and emotionally help the buyer make a decision, he not only buys, but pays a much higher price. As you see, you end up with more in your pocket after commission, wouldn’t you agree?"

 

 

"So you can see, as your agent, I'm in the best position to sell your property. This chart summarizes the sales duties commonly used to sell a property. Both you and I can show the property; in fact you can probably show it better than I can. However showing a property is only one of the tasks an agent performs to sell a property. Let's look at the others listed here."

 

"Only I can show comparable properties. Very few people will make a decision to purchase a property without looking at others first. You are not able to show them other properties. Therefore, to look at comparable properties they work with a real estate agent. Once that happens you don’t think an agent is going to advise them to come back here and buy your property do you? Agents work to get a buyer to purchase a listed property. Now, it your property was listed, an agent would show comparable properties to convince the buyers they should purchase yours.'

 

"As we talked about earlier most buyers are reluctant to ask the sellers too many questions for fear it would harm their bargaining position. I am in the best position to give additional information about your property that will satisfy their questions and encourage them to make a decision.'

 

"Only I can call prospects back after showings without hurting your bargaining position. If you call a buyer back, he'll think you’re anxious to sell. Ifhe was thinking about making an offer, he will lower it. But I call buyers back after every showing. That's my job, and my doing so, doesn't hurt your bargaining position. I routinely call prospects back to answer their questions and encourage them to make a purchase. That is when many of my sales are made.”

 

"Only I am in a position to discuss financing alternatives. Even If you were up to date on today's financing techniques, a buyer is not going to listen to you. They are more apt to give me Information on their financial position than you. Buyers freely discuss such matters with agents. Most buyers would get discouraged trying to secure financing on their own. Without an agents help in locating financing, most sales would be dead, wouldn’t you agree?”

 

"Even if you were an attorney, only I am in a position to explain forms an agreements that must be signed to purchase a property today. The buyers are not going to listen to the sellers’ explanation of legal documents. If they don't have an agent to explain the documentation, you can guarantee they are going to contact an attorney. And, who is going to write the purchase agreement? If you or your attorney write it, they will take it to their attorney. In either case that opens a whole can of worms which usually results in a more complicated transaction and a much lower offer. I am in the best position to write the purchase agreement and explain documentation."

 

"Only I am in the best position to help prospects make a buying decision. You only have one property to sell. Buyers look at many properties before making a decision. I earn a commission on any one they purchase. When I tell them to purchase yours, they are more prone to listen. Now I can't convince someone to purchase a property he doesn't like, but, if he does, he will look to me to support his decision. The emotional support and encouragement I can give buyers will always results in a much higher offer.'

 

"An agent is also in the best position to encourage buyers to enhance price or terms. In order to get a buyer to enhance price or terms, you have got to justify it. A buyer is not going to listen to a seller who obviously wants all they can get. However, an agent is in a position to reason with the buyer, show him comparable figures, and justify a higher price. If you’re not in a position to justify and encourage a higher price you're not going to get it."

 

"Buying a property is probably the greatest monetary and emotional decision for people to make in their lives. People are scared to death of doing the wrong thing. I am in the best position to help buyers eliminate buying fears. I don't care how much they like your property, they are not going to buy it until those fears are quenched. How are you going to help them? They are not going to discuss their buying fears with a seller, let alone listen to his solution. A buyer isn't going to make a decision, until he has the piece of mind that he is doing the right thing. Wouldn’t you be the same?'

 

"I am in the best position to assist the buyers through escrow and closing. You are not in a position to do that. Most attorneys can find a way out for their clients if they change their mind. You need me to not only to find and get a buyer on paper, but to keep encouraging and reassuring them through escrow and closing. You really don’t have a sale until the money is in your pocket, do you?'

 

"Can you see that I am in the best position to sell your property for the most money? (Yes.) It takes teamwork to sell a property today. Shall we join forces and get yours sold? (Okay.) All I need is your approval here (pointing to the signature line) and I become your agent.'

"Mr. and Mrs. Seller, pricing your property correctly Insures greater exposure, a higher price and a quicker sale.”

 

"Let's look    at the first one, location. How do you feel your property is located in

comparison to other properties? Comparable properties will bring different prices based

on their location. What do you think about the location of your property? How do you

feel the location compares to other properties competing in your price range?'

 

"Terms are another factor that determines the sale price of a property. The more liberal the terms you can offer a buyer typically the higher price you can expect. A buyer who must purchase all cash will most likely pay less, while a buyer who is offered very liberal terms, such as seller financing with a very low or no down payment, is willing to pay more. Buyers with more conventional types of financing would be somewhere in between. If I understood a little better about the terms you were willing to accept from the buyer we will be able to come up with a better indication of the type of price to ask and expect. What kind of terms are you willing to give on your property realizing the more flexible the terms the higher the price you can expect and the more rigid the terms the lower the price?'

 

"Property condition is important. You will be competing with other properties for sale. Those that are in better condition generally sell faster and for more money. In order to get top dollar your property needs to be in top condition. From a 1 to 1 0 how would you rate the condition of your property?'

 

"Market conditions have an effect on price. When interest rates go up, prices go down. When interest rates go down, prices go up. In a sellers market prices are significantly higher than in a buyers market. A buyers market is when there are more properties on the market than buyers to purchase them. Competition becomes fierce, driving prices down. From what you have heard, how would you appraise the current market conditions? Would you say we are in a buyers or sellers market?"

 

"Exposure is another factor that determines price. Agents are able to expose your property to many more buyers. Most sellers are unable to sell their own property, even at a greatly reduced price because they do not have access to the many segments of the market the agent has. Many times, there is only one buyer for a property and an owners marketing efforts are unable to reach him. Therefore the property remains unsold at any price.'

 

"Competition is a very big factor. We need to look specifically at what the properties competing with yours are selling for on the market. To help us do this I have prepared a Competitive Market Analysis that will help us determine how we can best compete 1 n the market place today. We will use this to help determine our asking price. We will go over that in just a moment.'

 

 

"Now, let's look at the Competitive Market Analysis. A comparative market analysis helps determine the price to place on your property. (Hand each of the sellers a copy of your competitive market analysis.) I spent considerable time preparing this Competitive Market Analysis. This data will help you decide what price to ask for your property. I have taken comparable properties from like neighborhoods.  I have listed those properties that are up for sale now, have sold and have gone off the market. As you can see some of the properties not having identical features to yours were adjusted slightly to help get a more accurate comparison. We are trying to compare apples with apples.'

 

'The most important section in this analysis is the section showing sold properties. In reality, neither you nor I determine the price of your property. It is what today's buyer in the present market condition is willing to pay that determines the price. The best way to determine that figure is to look at what buyers have been paying recently for similar properties. Would you agree?'

 

'We should focus on what properties have actually sold for to help come up with the right asking price. The properties now on the market and those that have expired will indicate it we need to make small adjustments up or down to get our best price in today's market. Look at the section containing the comparable sold properties. What appears to be the price range for properties on the market comparable to yours?' (Get their answer. Ask if they both agree.)

 

"That's right. The comparable sold properties are selling between $190,000 and $200,000. What is the range of properties presently on the market?" (Got their answer again.)

 

"That's right. The asking price of those properties currently on the market are ranging betweon$195,000and $220,000. What range of prices are the properties that have expired in?" (Get their answer again.)

 

"Correct. Those properties that have expired are showing a range between $200,000 and $220,000. Now based on my findings, what price or price range would you say your property should sell at?" If they respond with a price or range that is in agreement with your findings tell them that you agree with them. Then ask them if they can live with that figure as an asking price on their property. If they have trouble figuring it out or come up with a wrong figure continue.

 

"The facts indicate that comparable properties are actually selling for a price between $190,000 and $200,000. The properties priced above this figure are not selling or expiring. Certainly the market isn't indicating that buyers are willing to pay over $200,000! (No.) Now I can understand owners wanting to get more. So would I. But they probably won't. Most likely the agents suggested a higher price just to get a listing. Based on the facts, a realistic price would be between $190,000 and $200,000, wouldn’t you agree?'

 

If they agree with you ask them, "Keeping that range in mind, at what price would you like to place your property on the market?" If the price they select is within the range or close enough, add that price to the sellers net sheet, calculate their approximate net proceeds, get their acknowledgement to the net figure, enter the price in the listing agreement and have them approve it. If they come up with a higher price or say, "Can't we start higher?" or "Everyone makes offers, let's see if we can get more?" continue with the following:

 

"I don’t think someone is going to pay more than market, do you? Especially if there are properties on the market below $200,000 that haven't sold. Let's not make the same mistake those sellers made (pointing to higher priced properties on the OMA). This means nothing. What I want to do is get you into this section (pointing to the 'sold' section of the CMA). Where the sold properties are. May I suggest we use these (pointing to the overpriced properties on the CMA) to help sell your property? You see, people buy by comparison. If we price your property in line with what we actually know It will bring instead of an inflated price like these, it will draw attention to yours and make your property easier to sell. We are better off pricing it right and holding to that price than pricing it too high and hoping for a price the market indicates we will never get. Make sense? (Yes.) Can we keep the price in this range then?'

 

If so, enter that price onto the sellers’ net sheet, calculate their approximate net, get them to acknowledge the net figure, enter the price in the listing agreement and have them approve ft. If they are still hedging say:

 

"The market indicates that your property should sell somewhere between $1 90,000 and $200,000 depending on your time factor. It is neither you nor I that decides what your property will sell for but the market place. Automobile companies set a price on an

automobile and many times can't sell them. What do they do? They offer a rebate or, in effect, a price adjustment. It the incentive is good enough the buyers decide to buy. You see, it wasn't the automobile company that came up with their new adjusted price but actually the car buyer. But please understand I work for you. You set the asking price, not me. As long as you understand the facts and what the market is probably going to do, Iam perfectly willing to go along with any reasonable price you want to ask. It is your decision. But...

 

 

"When it comes to pricing your property remember: buyers are more likely to view properties priced right. With all the properties on the market, buyers won't even look at a property unless it is priced right. If you don't show it you can’t sell it."

 

"Your price should be based on sold comparable rather than on unsold comparable. Buyers don’t pay what people are asking, but what other buyers are paying.'

 

"Overpriced properties help those that are priced right sell. If another comparable property is priced below yours, agents will show your property to convince a buyer the other property is a good value.'

 

"Overpriced properties usually end up selling below market. A property priced too high typically doesn't sell until all comparable properties priced lower sell first. If the property doesn't sell within a reasonable time, people begin to think there is something

wrong with it. This usually results in lower offers than what could have been, if the price was more in line from the beginning.'

 

"Liberal terms will bring a higher price. If you could offer your property with seller financing, FHA or VA some buyers will pay more money. You are counting on the buyer getting new conventional financing or paying cash you can't expect as much.'

 

"I have heard many sellers say that some agent told them they could get more money, but remember, many agents suggest a higher price just to got a listing."

 

Page 31

 

"If you were a buyer what would you pay for the right property: What the sellers were asking? (No.) What the sellers said they needed to have? (No.) What the sellers

have Invested In the property? (No.) What the sellers need to purchase their next property? (No.) Or, what similar properties have actually sold for? (Yes.)

 

"Keeping all the things we discussed in mind, what shall we ask for your property?'

 

 

This is the end of this manual. Obviously, you would include you closing and move on to either scheduling another appointment to list the property of listing the property now. I hope that you have found great value in this manual. Good Luck and God Speed to you and your career.