I recently had a listing expire after three months on the market. Nothing has sold in my client's 
neighborhood for almost a year, so it wasn't a big surprise. We gave it a shot and it didn't work out for us. No biggie. She was prepared for the possibility and has no hard feelings toward me.
But that's not an accident. I always prepare my sellers for the chance that their home won't sell, despite our best efforts (by "our," I mean mine and my seller's joint efforts to prepare and present a great product to market). I don't make a big deal about it and I certainly don't lecture them or otherwise insult their intelligence; I just ask a simple question:
"What will you do if the house doesn't sell?"
Then I shut up.
If the seller doesn't have to sell (and I'm happy to take those listings if they're reasonable on price), then I've planted the seed that I/we don't control the market and if the house doesn't sell, it might be beyond our/my control. If the seller does need to sell, it forces them to think about the unthinkable - that they'll own a house they don't want and can't afford. The next thing you know, they're asking me what they need to do to ensure that doesn't happen. Suddenly, I'M THE EXPERT and they'll listen to me!
It also works beautifully for sellers who want to test the market at their price. A similar approach - "What if the house doesn't sell at that price? Will you be okay with that?" often works wonders in getting the seller to really think about what he's doing.
I don't consider myself a salesperson; I consider myself an advisor. Therefore, I don't try to convince my sellers that I can "sell" their homes. With the above words, I am relieved of the personal responsibility of selling a house that, for whatever reason, may not be sellable today.
For the record, my listings are always priced well, always staged and always easy to show. That's my job - to help my seller prepare and present their home to market in the best possible light.
That's all I can do.
I tell my clients that it's a broker's job to market and expose the property to get feet through the door, it's their job to react to the feedback. Sometimes no offer is enough "feedback" for a seller to reevaluate their goals and motivation. Most times, an adjustment of price will correct the lack of an offer, but not always.
So common in today's market, best of luck with the book.
Actually that is a good approach...I like asking if they are OK if it does not sell at that price. Thanks.
I don't think I would have taken a 3 month listing unless it was priced VERY competitively! We have about 2 years of inventory on the market. I only have one listing that I took for less than 6 months, and that's only because it's a corporate referral. But you're certainly askinga loaded question. And the answer should determine whether or not you take the listing.
That is a great question and sets the stage for discussion right from the beginning about price and reality. Or at the very least to be prepared for price reductions ! I believe getting price reductions is an art of communication in and of itself. If an agent overpromises and underdelivers from the beginning, getting a seller to agree to do a price reduction is no easy task if it all.
We always discuss plan B per se at the listing which allows for the consultative and advisory skills to come out.
In a market with a year market time I don't think I would take a three month listing either.
Jennifer, where I differ is I do consider myself a salesperson AND an advisor. Yes we are in this together, but it is my job to sell their house. I do like hearing your fresh approach to pricing though. Gets everyone VERY focused on market reality.
Asking about Plan B also works with buyer clients. It helps you understand their mind frame right away.
Thats all we can ever do. Sometimes its just not going to happen and other its happens in the blink of an eye. But always have them prepared!
Great questions, I use both actually. Here in Tucson there are no three month listings. With so much inventory not moving it's six month minimum. I still encounter unrealistic sellers who believe the market is slow but not for their great home.
The key to your post is asking the question ... and then shutting up. Many agents don't wait for the answer. They just firehose the information.
Interesting, all the comments about three-month listings. I rarely take a listing for longer than 3 months. Why? Well, one, I don't want to be stuck with a listing that's not selling and I figure that if it hasn't sold in 3 months, it probably isn't going to. But that's the nature of my market. Marketable homes DO sell, often quickly. Homes that haven't sold in that time period probably aren't going to. I price my listings competitively from Day One (or at least I try to), so I don't go into a listing with the expectation of a price reduction, unless the market changes.
And of course, my seller and I can always mutually agree to extend the listing if we're getting good activity, but just haven't found quite the right buyer.
But no, I have no interest in six-month + listings. We're lucky here, I guess. There ARE buyers for good homes; we don't have to sit around and wait for them in most cases.
Thanks for all the comments!
Excellent! Allowing your sellers to consider the plan B better prepares them for a Market that is difficult at best. Good Job!
Good luck and Sell Well!
Excellent point! I'm going to incorporate it into my listing presentation! Thank you!
Bob Mitchell
ValueList Real Estate Services, Inc.
I agree with Ross, it really comes down to communication and expectations. If you promise to sell the property in 30 days, you damn sure better keep your word. Since the seller ultimately decides the listing price, I makes HUGE sense to guage their reaction to a lower priced or no offer in the listing period.
Enjoyed your post. I like your approach.
You are my dream agent. Wish I could work with you.
You understand that you are only one piece of the puzzle when it comes to marketing a home for sale and do everything in your expertise to make it happen for the client. Kudos to you.
Great approach! I love your style and you are doing just about all you can do! Your sellers couldn't ask for more!
Good post!! The next bit of advice I give: Know what your bottom dollar is - I don't need to know, but you should have an idea BEFORE an offer comes in.
Good post, it is very important to go over contingiency plans with clients for the event their property doesn't seem to sell. No one likes to fail, but if you know there is a shot that you could fai it doesn't sting as much for sure.l
Thanks for the great post! This will definitely be a new addition to my listing presentation (my next one is in about an hour).
Great approach, it makes sellers think about how serious pricing correctly is in this market.
Great suggestion for a line to get sellers to think about what they are doing price wise!
As a follow up from the other day...I did use this line and got the seller to agree to a reasonable price. They wanted to list it for $40K higher then I did! Again thanks for the great advice!
Mandi - that is SO COOL! Thanks for sharing!!!! Go, you!
Nathan & Patricia - it works like a charm...
Jon Michael - Yep!
Greg - I'm not sure sellers know their bottom dollar until they see it in writing... I know when I sell, I don't!
Cristal... aw, shucks.
Michelle... wow - thank you...
Jennifer, great advice. I always try to get my clients thinking about a plan B. In this current mortgage meltdown I also am putting together a Plan B for myself. Everyone should have several choices set aside. As an example the recent NBA Draft.. coaches and owners had their target of who they wanted on their team, but what if someone got to them sooner, they all had to be thinking of alternative selections. just my thoughts on the Plan B Question
Jennifer, asking about a Plan B is always a great way to determine how motivated they are and how aggressive the pricing should be in a market like this. Fortunately, we also list short & long term rentals and are able to offer than as an option. BTW, I own Sell with Soul I...its a great book!
Thanks Nichika!
Thomas - great point...
Hi Jennifer,
I like your approach, I actually used this question yesterday on a listing appointment. It really helps to determine their motivation for selling. I didn't take the listing because they really didn't want to nor could afford to sell in this market. :)
Suzanne - that's great! Congratulations! (seriously)
Great post! I think it is important in today's market to ask this to our sellers and I will start asking this important question.
Keep communicating and let the client know every week or so what is happening and what needs to happen to sell the property. The client needs to know what the agent knows so they can react to the current market.
enjoyed your post alot thank you so much
enjoyed your post alot thank you so much