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!
Good Morning Jennifer,
Thanks for the post. I agree with you that statistics and charts should be used very carefully and the information explained to buyers and sellers. Charts, properly explained and geared to your audience, can be a tremendous tool in understanding the market and discovering opportunities.
It can be like a double edged sword. Have all of the information available if needed, some Sellers are of the same opinion and don't need to be reminded of the statistics others relish in them. You'll know soon enough what they want to see or hear.
I agree totally - although I have the stats and charts handy, I don't whip 'em out unless the the client is a stats-and-charts-engineering-statistician kind of guy who would think less of me if I didn't produce them. And, even then, I don't hang my hat on them.
I think most people are well aware of what is going on in the marketplace, so we don't need to beat them up on the doom and gloom.
Wow, JA. This is pretty brilliant.
I AM a Numbers GAL. Numbers, bars and charts speak to me. But I dont use them. If my sellers ask, I have data in my head (and papers to show, but I dont volunteer them). My strategy is simple: You ask, I answer. You only ask things that are important to you. If you are not a numbers person, you wouldn't care or the information may go over your head.
After going for many listing appointments, I find that keeping it simple is best. I have some numbers to show them to help start the conversation. Most often times, I let the Sellers drive what's important to them.
Statistics are Manipulative. You can make them look like anything you want.
Great blog post, Jennifer, and count me in for the seminar on Wednesday. I have a lot of improving to do on the listing side!
A couple years ago, I ditched the brag book, the stats and all that but a fistful of comps. I go in and just talk. Getting the seller to talk about the market comps you can get a feeling for how they feel their house can stand out, or where they may be overestimating the upgrades in their own. Once I went with this simple approach, I started seeing much more success in the form of signed listing agreements.
Jennifer,
I always have charts and graphs tailored to the type of home with me. Should the seller turn out to be a "math nerd," I have exactly what she or he wants most. Printouts from my market report posts are also part of my arsenal. The numbers have landed me more than 1 listing, although for other sellers, I do not use them.
Jennifer:
I agree with you. Most of the time we just do a lot of chatting even though I do carry all of the data to show them when and if that's what they want.
I really enjoyed your SWS and am looking foward to the next one.
One has to know how to use the information that is available. I use market trends and graphs only whne required. During the listing presentation we talk about where the market is at. If the seller is unrealistic about pricing (and I would know this ahead of time), then we tailor the market statistics to the seller. Yes we can affect the outcome, but if you have an unwilling seller and a poorly located property, well.....you need more than market charts and statistics. The market is not all doom and gloom.
My absorption chart is extremely helpful when pricing a home (as we know where the inventory trends are and if they are rising/falling/stable.)
You can be the best marketer in the city and the home can be the best cookie cutter home in the subdivision but there is no way it is going to sell if it is priced out of it's range and having to chase the market south.
I think what you're saying is true! When I look at the graphs myself, I have a hard time deciphering what it means! I have yet to get on my first listing appointment but am interested to know the best way to go about it since I am a newbie!! Thanks for offering your experienced opinion on the subject.
Best,
Melissa Dale
JA - Another awesome post ... so glad to know that some of the "Best" (you) ... don't have to have a chart with graphs ... I personally prefer to show them the "numbers" by review of what's Active, SoLD & Expired! The charts can be manipulated...I prefer to keep it Simple! Thank you for always keeping it straight!! "A plan and a smile" ... works for me!
Like many others here, I have the stats available for that particular home, but rarely use them to present to the seller. I have visuals that are effective in making them "see" what the stats are saying to them and have the stats in my head. For example, I have a fishing picture which shows a school of fish at the bottom of a lake and the person fishing has baited his/her hook with a worm but holds the line well above the school of fish. I demonstrate that's what they would be doing with a price well above what the buyers (school of fish) are willing to pay and give them the stats verbally. I have many other visuals to use, when necessary, to interpret the dry facts. That way, I'm hitting both the logical and visual parts of their brain.
SOLD. Jennifer, great post. You sold me. Now I will sign up for your webinar on Wednesday.
I keep the number stuff handy in case I have one of those personalities that love 'em, but most of the time the comps are all I need. Sure am looking forward to Wednesday!
I agree with most of the comments that, if you have that client, they are going to want to see the numbers. If it isn't that client, you'll see the glazed over look earlier than usual if you whip any statistics out.
Jennifer, I think we should be prepared and have the answers, graphs and statistics just in case. Then we LISTEN. Every seller is different. You'll have a feel for what that particular seller needs to feel comfortable. I agree, often people give way too much information, including here on blogs. Sometimes less is better.
The numbers are a reality check. For example...I have a friend who may need to sell her house. She "needs" $1 million out. A few years ago - that might have happened. It's a great piece of property. But these days only homes with every bell and whistle are fetching that price in her area. Unfortunately, the kitchen dates back to the 60s. There is only one upstairs bathroom and the place badly needs a facelift. I'm not judging - the same can be said for my own digs - but I can't list a home worth about $700k for $1million. She can try and wait - but financially I don't know if that's possible. Waiting might only mean chasing the market down.
As a general rule, I use the numbers and then show how we can maximize what is possible using proper marketing and staging. this is often a tough pill to swallow becaue the seller has already been told that their home won't sell for nearly as much as they want or need. Now they are expected to put money IN??? But showing the fact that you can get the most for your money by doing the hard work upfront helps move the home and get people out from under.
Thanks for all the comments on this loooong blog! For what it's worth, I always have the numbers that relate to this particular listing with me - in all their glory - but I never take general market information with me. And no one has ever asked for them - they're far more interested in the stuff I have that specifically relates to their house. As we talk about the property-specific CMA, they might ask about general market stats, but I casually explain why they aren't relevant and we move onto more important things.
I go into a listing appt with some data but almost all of the time i am there is just chit chat....getting to know them and their situation.......back and forth on what strategies we wil, use.....and a lot of building rapport on my end.....
I, like you, am not a math-nerd and the charts and graphs do not speak my language, but it would be just my luck if I didn not have them with me that's what would speak to my home seller. So, I ususally talk the language that I am comfortable talking while showing graphs and charts, etc. That way, whether they are emotional or logical they will understand me.
Keep in mind that 97.6% of all statistics are made up, so the graphs and charts are just pretty items to make the presentation pop and make it look like you did a lot of work!
Actually I agree, if you dont understand it 100% dont use it, it is more likely to back fire on you..
It is good to have supporting docs etc to over come objections and the format should be one that you are comfortable explaining.
I think it depends on the sellers personality. If they are a numbers guy, the wants charts and stats. But in my three years of real estate I've found that most people just want to know 2 things. How long do you think it will take to sell and how much do you think I can sell for. Not nessesarily in that order. More and more people are wanting a sellers net when I come to the listing apointment.
Luckily one of the title companies provides a program to whip up an easy professional looking one quickly.
Hi Jennifer,
I agree that you should be able to back up your stance with viable stats if required to, but I luuuuv what I learned in a previous webinar you did a while back, where I learned from Broker Bryant Tutas that these were called "Listening Presentations"...with US doing the listening to the seller.
It ultimately is about them, isn't it?
Bill - bingo. But not only is it "about them" because that's the nice thing to do, it needs to be "about them" because they're the ones with a problem to solve, so we need to know as much as possible about their problem to help them solve it!
"Listening Presentation" I love that comment! Thanks #24 for posting that BB said that. He's so right. Most of the people I have shown charts to aren't interested at all. It's the talking and listening they want.
We find that Listening is a breath of fresh air for most sellers. Most agents just want to talk about how great they are and not about what the sellers need.
Good stuff and I agree sometimes less is more! I have worked with many agents on listing presentation techniques and listening goes hand in hand in the presentation. A lot has change over the years and so has the listing presentations. If you get a chance please check out http://prelistpackage.com They have a lot of useful tools, templates, tips and scripts to make your job much easier during the listing presentation. Thanks for sharing!