1. Create a powerful listing presentation manual 2. Quickly overcome the FSBO objection 3. Successfully price every listing taken 4. Present yourself as the market expert
Create a powerful listing presentation manual
Enough Trust to Let You‌ Sell possibly the largest asset their family owns Set the correct market value on that asset Set the time schedule for the liquidation of that asset Set the fee for the services required to liquidate that asset
Build Rapport BEFORE you even get there!
According to Google, 2 of 3 people searching for a prospective agent research them “extensively online prior to working with them".
SELLERS’ MAGAZINE
Winter Edition
The 2 Biggest Mistakes agents make at the beginning of their listing presentation
1. Bragging about Themselves 2. Bragging about Their Company
What are the fundamentals of your company’s marketing plan? How do you find and qualify prospective purchasers? What is your company’s ability to manage the overall process?
If you have any previous work experience or industry designations that separate you from other agents now is the time to mention it. If you’ve taken a negotiation class in the past and received a certificate for it, take the syllabus or the brochure for the class and make it part of your presentation. If you subscribe to services that help you stay abreast of market conditions (like KCM), let them know.
Building Trust is Crucial “Weary of misinformation, people are making integrity a new form of competitive advantage… More important than ever to building brand equity and differentiation,
trust has become a precious commodity.” Ford
FSBOs as a Percentage of all Home Sales
The percentage of homes selling as a FSBO has decreased from 19% to 9% in the last 20+ years
Typical Sold Price* $235K
FSBO vs. Agent
$209K
By FSBO
By AGENT
*The ‘typical’ price is actually the average price in the survey. However, studies have shown that people are more likely to FSBO in markets with lower price points.
Where Buyers Find the Home They Purchase Over the Last 10 Years by Percentage
The Internet
Yard Signs
Newspapers
% of Buyers who used an Agent
NAR
FSBOs Must Be Ready to Negotiate Here is a list of some of the people with whom you must be prepared to negotiate: • The buyer • The buyer’s agent • The buyer’s attorney • The home inspection company • The termite company • The buyer’s lender • The appraiser • The title company • The town or municipality • The buyer’s buyer • Your bank (in the case of a short sale)
5
Reasons to Hire a Real Estate Professional They help with all disclosures and paperwork necessary in today’s heavily regulated environment. They are well educated in and experienced with the entire sales process. They act as a ‘buffer’ in negotiations with all parties throughout the entire transaction. They help understand today’s real estate values when setting the price on a listing or on an offer to purchase . They simply and effectively explain today’s real estate headlines and decipher what they mean to you.
Home Prices
The Impact of Monthly Housing Inventory on Home Prices LESS THAN 6 MONTHS
SELLERS MARKET Homes prices will appreciate
BETWEEN 6-7 MONTHS
NEUTRAL MARKET Homes prices will only appreciate with inflation
GREATER THAN 7 MONTHS
BUYERS MARKET Homes prices will depreciate
BUYER 3X Greater
Months Inventory of HOMES FOR SALE
NAR 2/2015
Case Shiller Year-Over-Year PRICE CHANGES
S&P Case Shiller 2/2015
Year-Over-Year Percent Change in Price by Region
FHFA
Year-Over-Year Percent Change in Price by State
FHFA
Quarter-Over-Quarter Percent Change in Price by State
FHFA
1-Month Home Price Change
CoreLogic 3/3/15
Price & Time Since The Peak
CoreLogic 3/3/15
A nationwide panel of over one hundred economists, real estate experts and investment & market strategists.
Bubble Recovery To Date
Pre-Bubble
Average Annual %
APPRECIATION
Bust
Home Price Expectation Survey 2015 1Q
PROJECTED Mean Percentage Appreciation
Home Price Expectation Survey 2015 1Q
Present yourself as the
MARKET EXPERT
EXISTING Home Sales increase of 200K from last year
This January
4.82M Last January
4.62M
NAR 2/2015
PENDING Home Sales
last year vs. this year
Last four months of 2014 and January 2015 Last four months of 2013 and January 2014
NAR 2/2015
100 = Historically Healthy Level
PENDING Home Sales NAR 2/2015
New Construction Homes Sold
Up 5.3% over January 2014
Census
“Buying a Home� trend on Google
Google Trends is much better at gauging mindshare rather than the total number of searches for each term. The higher the number the larger share that topic had at that time compared to EVERY other thing that people searched for.
Months Inventory of HOMES FOR SALE
NAR
Mortgage Credit Availability
Mortgage Rate Projections Quarter
Fannie Mae
Freddie Mac
MBA
NAR
2015 1Q
3.7%
3.7%
3.7%
3.8%
3.7%
2015 2Q
3.8%
3.8%
4.0%
4.0%
3.9%
2015 3Q
3.9%
4.0%
4.4%
4.3%
4.2%
2015 4Q
4.0%
4.2%
4.6%
4.7%
4.4%
Average of all four
2/2015
RATE
Buyer’s Purchasing Power 5.25 $
2,208
$
2,154
$
2,098
$
2,044
$
1,988
5.00 $
2,148
$
2,094
$
2,040
$
1,986
$
1,932
4.75 $
2,086
$
2,034
$
1,982
$
1,930
$
1,878
4.50 $
2,026
$
1,976
$
1,926
$
1,874
$
1,824
4.25 $
1,968
$
1,919
$
1,869
$
1,820
$
1,771
4.00 $
1,910
$
1,862
$
1,814
$
1,766
$
1,719
3.75 $
1,852
$
1,806
$
1,760
$
1,714
$
1,667
$ 400,000
$ 390,000 -2.5%
$ 380,000 -5%
$ 370,000 -7.5%
$ 360,000 -10%
Principal and Interest Payments rounded to the nearest dollar amount.
According to Google, 2 of 3 people searching for a prospective agent research them “extensively online prior to working with them".
Multiple studies have shown that roughly
70% of the buying decision is now made before the prospect ever talks to a sales person face to face – and this number is growing daily.
Price & Time Since The Peak
CoreLogic 3/3/15
Here is a great article
Presentation Materials
Consumer Magazines
Social Media Content