From Listed to SOLD - How to Sell Those Listings You Work So Hard to Get!

(The other day I promised to do a little series on applying Go-Giver principles to real estate - while this blog wasn't written with that in mind, I realize that it DOES indeed reflect a Go-Giver philosophy! So, let's consider this the first in that series, k?)

I was just talking to an agent who is going through a corporate-sponsored FSBO training program.

Sigh.

It’s typical stuff. Under the guise of being helpful, the program advises you to scare the guy to death about everything he doesn’t know about selling a house. Bring in a stack of complicated contracts and disclosures, “just so that he’ll be prepared if an offer comes in.” Include intimidating documents that he won’t actually need at contract (like a deed of trust and personal property bill of sale) just to beef up your pile. Provide a “helpful” info-sheet about the dangers of letting strangers into your home.

Again, your basic FSBO scare-tactics.

And again, sigh.

Hey, someone decides to FSBO their home because they think they can do it. They think they’re smart enough to do it and they don’t see the point in paying some smarty-pants real estate agent a whole bunch of dollars to stick a sign in the yard and do an open house. In most markets, they can pay a few hundred bucks to get on the MLS and borrow a For Sale sign, so they’re good to go.

And you know what? Maybe they are smart enough. But it doesn’t matter if they are or they aren’t; what matters is that they think they are. So, when you come in with your brow all furrowed with faux concern and your “helpful” material in hand, all you’re really doing is insulting the seller’s intelligence. You’re basically saying “You’re an idiot for trying to sell your house yourself! You can’t possibly succeed without me because I’m SO much smarter than you are.”

Oh, I know that’s not what you’re saying, but that’s what he’s hearing. And we wonder why FSBO’s can be hostile to us smarty-pants real estate agent types!

How about let’s be straight with the guy? If you think you can actually help this guy sell his house, then PROVE it to him. BE helpful without strings attached. Authentically CARE about his situation instead of mastering that look of faux concern. Be genuinely willing to walk him through contracts and answer his questions. Provide informative market reports to help him price properly.

Contrary to popular belief, demonstrating your expertise by sharing your knowledge won’t eliminate the seller’s need for you. I hope not, anyway; shoot, if it’s so easy to sell and close a house that we can explain it in an hour or two, that seller truly DOESN’T need us!

No, being cheerfully and genuinely helpful, caring and GIVING is gonna go a whole lot further with a suspicious FSBO than all the scare tactics in the world!

Had an interesting email dialogue over the weekend with a SWS reader - I'll let him identify himself here if he likes - about the use of charts and graphs and data and statistics in a listing interview. He asked the question during my "Helping Your Seller See the Light" teleseminar on Saturday whether or not I use, or recommend using statistics like "absorption rate" and "days on market" and "average list-to-sold," and if so, what exactly IS the best use of these statistics?

Well, my superficial, off-the-top-‘o-my-head answer was that no, I don't use charts and graphs and statistics because my brain doesn't work that way. I'm not a numbers gal, so when I look at charts and graphs and statistics, they don't mean much to me. And I don't want to go into a listing interview armed with information I don't fully understand.

And I highly recommend that if you're like me, not a math-nerd (I say that with respect and affection for math-nerds), don't try to become one when talking to sellers. Provide the information in a format that makes sense to you, and that you can easily and conversationally explain.

But if you ARE a numbers guy or gal, and you love your charts and graphs and stats, how can you best use this data when talking with a seller prospect about pricing?

Veddy, veddy carefully.

Here's the thing. The problem with graphs and charts and numbers and statistics is that they give the impression that selling a house is a random event, governed by those numbers and statistics, and not influence-able (?) by the agent's or seller's efforts. To present a chart that shows an 8-month inventory, for example, implies that it takes 8 months to sell a home. To present a graph showing an average list-to-sell ratio of 92% implies that a seller should build a margin into his price to account for being negotiated 8% down.  

But is that REALLY what the numbers are saying? In most cases, NO. Not even close! And again, do you really want to give a seller prospect the impression that neither you nor he is capable of affecting the outcome of your home-sale adventure?

To me, that's what depending on the numbers says to a seller. That THESE are the cold hard facts and there ain't nothing we can do to change them. We, Mr. Seller, you and I, are at the mercy of the market.

AND THAT'S NOT TRUE.  

Because you know what? Whenever you come up with a statistic, that statistic is based on a range of outcomes. Some houses didn't take 8 months to sell. Some houses sold higher than 92% of list price. And were these better-than-average outcomes simply the result of chance? Luck? Random events?

Of course not.

"Okay, Ms. Smarty Pants, but that's not how I use my graphs and charts - I use them to demonstrate the reality of the market to my sellers to persuade them to price properly. If they see those cold, hard facts, they'll realize that they need to listen to me and my pricing recommendations if they want to have a hope of selling."

Fair enough, and I'm inclined in theory to agree with that strategy. But as I said earlier, it must be done veddy, veddy carefully.

You only have so much time in a listing interview to say everything you want to say. At some point, your seller's eyes are going to glaze over and they'll check out. I'd rather spend their valuable attention span talking about what WE (he and I together) can do to maximize the chance of sale, at an acceptable price.

Besides, you know what? If your seller prospect is interviewing other agents, they've probably gone overboard with all the doom & gloom and already handled that part of the conversation for you! If YOU come in, not with a bunch of dire warnings, but rather a plan and a smile, you'll be a breath of fresh air, won't you?

We're going to talk much more about what YOU CAN DO to beat the odds and deliver a better-than-average result to your sellers at Wednesday SWS Teleseminar
"How to Be The BEST Thing to Happen to Your Seller."
Details and Registration Here!

REGISTER FOR THE SHOW

I've been running a little series of teleseminar shows in the SWS Virtual Studio this summer about various topics of interest to agents who want to improve their listing strategies. From commission negotiation to intelligently pursuing expired listings to helping a seller price right - lots of fun stuff!

To wrap up the series, the next show is about being an exceptional listing agent who is truly a blessing to his or her seller clients. And being an exceptional listing agent is so much more than simply writing good MLS copy or creating beautiful brochures or even pricing right, although those things are certainly important.

Being an exceptional listing agent means that you know how to sell houses in your market. It's that simple... and that complex.

If you know how to sell houses in your market, you'll enjoy a power over your business that is exhilarating, even intoxicating. Even better, your confidence in your abilities as a listing agent will be apparent to every seller you talk to which will inspire them to BEG you to take their listing! (Okay, well, maybe not, but you know what I'm sayin').

Seriously, when you can walk into a listing appointment knowing that you ARE the best thing that could ever happen to this seller wanna-be, you'll get every listing you want. And what's more... you'll SELL more of those listings, thus enjoying the love, affection and referrals of your happy seller AND that sweeeet commission check you'll have earned for yourself.

Sound like fun? It IS.

Join us? It's on Wednesday, August 11th, at 7pm Eastern. Here are the details!

THE DETAILS
Date: Wednesday, August 11th, 2010
Time: 4:00pm Pacific / 5:00 pm Mountain / 6:00 pm Central / 7:00 pm Eastern
Duration: 60 - 90 minutes
Equipment Needed: Nothing fancy - just a phone and/or computer
Price: Freeeee, but you have to register, below

REGISTER FOR THE SHOW