OVERPRICED LISTINGS By Floyd Wickman, National Speakers Association Hall of Fame Member and CEO of The Floyd Wickman Team, LLC Let’s listen in on a recent round table discussion with some better producing agents.
“My partner and I are starting over in a new location, and we need to build our listing inventory back up quickly. We have been on half a dozen or more listing appointments we could have taken, but they weren’t realistic with their price. Our #1 question is - If we’re trying to build our inventory quickly, when is it okay to take an overpriced listing? If you could give me one piece of advice, what would it be?”
“Floyd taught me that worse than no listing at all, is a listing that doesn’t sell. So, bottom line it, Jeff. If you believe it will sell eventually, because there is a good enough reason why they want to sell, or have to sell, work with them until it sells.”
“I live by Floyd’s advice about listings when the seller wants us to go above and beyond, where it’s a quick sale or an above market price. We’re going to have to put in extra time and effort to get it sold, so he said to always ask for 1% more. Get the listing first, and then show them how an extra 1% commission will help them get that quick sale or stimulate enough interest and showings to get an above market price.”
“I think it’s okay because you are in a building mode. But in my mind the key factor is always rapport. Have I established an honest and open relationship with my clients, and do I believe we can work together as a team?”
“Did they initial the Net Sheet? Did you fill out the Marketability Checklist and the Broker/Agent Disclosure form with them? Did they sign a post-dated price reduction? Did you establish a maximum time without an offer before they adjust the price? I think we’ve got great tools to fall back on to get it priced right, if not right away, at least eventually.”
“If the sign is going to do you more good than harm, I’d say take it. As a lead generator, for instance. Or if holding open house is going to generate visibility and traffic and inquiries. But if your sign sitting out there month after month after month is going to make you and your company look bad, and make you and your clients feel bad, I’d be very cautious about taking anything overpriced.”
“Floyd is right that there’s nothing worse than an overpriced listing that doesn’t sell. And if you were brand spanking new, I’d say follow his advice to the letter. But you have a lot of experience to draw on, a lot of market knowledge, and great intuition about who will work with you and who will be a pain in the neck. I think we are in a ‘Let’s test the market’ market. If we don’t get any reasonable offers in two weeks, the market is telling us we are overpriced. Let’s just pay attention to what the market tells us.”
“I work expireds a lot, as you know, because when I moved here two years ago, I had no Book of Business to work. What I’ve learned is that most of them…let me rephrase that, all of them were overpriced. All of them blamed their agent. For not communicating. For not explaining what they were doing to market the house. Expireds do more damage to our business than anything else. My advice is take the listings you want and never, ever let them expire. Sharpen your pricing presentation and selling skills. That may solve the problem right there. But communicate regularly and consistently until they sell.”
“OK, Jeffrey, you’ve just gotten some great advice. What’s your take-away from what you just heard your team say?”
“First of all, thanks, team. I’m going back to the basics and review the pricing presentation and marketability checklist. But what makes the most sense to me is to trust my judgment and experience here, and really focus on my relationship with the clients. If I feel we can work together, and the conditions are right, I believe I will do everything in my power to get it sold, and not let them down.”
A client recently sent me a saying that is posted at the HQ of Special Ops troops: “There is no such thing as advanced skills. There is only the perfect execution of the fundamentals under stress.” Let’s all get back to the basics this year. Let’s practice and review until the basics are second nature, until we all become competent, confident and natural.