In a Shift? Price Ahead of the Market

Jay White

Jay White

Charlotte, North Carolina

Mega/Expansion Team Owner

KWU Trainer

KW MAPS Coach

FAMILY REUNION

2016

• Whenever supply (sellers) and demand (buyers) move out of balance.

• A shift to a buyer’s market creates pain for sellers!

• Fewer sales• Happens abruptly• Causes fear and panic

• A shift can be an opportunity!

A Shifted Market

FAMILY REUNION

2016

• Perspective on Pricing Strategies

• Study Your Market

• Approach Sellers

• Get the Right Price!

• Manage Your Listings in a Buyer’s Market

Main Ideas

FAMILY REUNION

2016

• Perspective on Pricing Strategies

• Study Your Market

• Approach Sellers

• Get the Right Price!

• Manage Your Listings in a Buyer’s Market

Main Ideas

FAMILY REUNION

2016

1. In a buyer’s market, real estate becomes a

commodity.

2. Only properties in good condition and priced

right will sell in a buyer’s market.

3. Price correct for bad condition, but condition

won’t correct a bad price.

Perspective on Pricing Strategies

FAMILY REUNION

2016

4. Correct pricing represents 80% of marketing

efforts.

5. You don’t want to waste your time … or the

seller’s time. In a competitive market, buyers

have a lot to choose from and will not even

look at overpriced properties, let alone make

offers on them.

Perspective on Pricing Strategies

FAMILY REUNION

2016

- The Millionaire Real Estate Agent

“Understand that only properties in the right condition and at the right price are going to sell in a buyer’s market.”

FAMILY REUNION

2016

You are no longer undervalued!

Sellers really need you for:• Pricing Strategies• Market Knowledge• Buyers• Fiduciary Commitment• Negotiation Skills• Knowledge of Financing Options

Your Role in a Buyer’s Market

FAMILY REUNION

2016

• Opportunities for Sellers

• Maximize investment and minimize losses

• Excellent opportunity to move up

• Potential gain in another market

• Opportunities for Agents

• Attract more buyers

• Gain more market share

What Are the Opportunities?

FAMILY REUNION

2016

• Perspective on Pricing Strategies

• Study Your Market

• Approach Sellers

• Get the Right Price!

• Manage Your Listings in a Buyer’s Market

Main Ideas

FAMILY REUNION

2016

1. Be the Local Market Economist

a. Be more knowledgeable than the headlines.

b. Preview more properties to gain a better

understanding of what is on the market.

Study Your Market

FAMILY REUNION

2016

2. Analyze the MLSa. Take time to study and internalize the statistics

that are reflective of your market and which matter to your sellers.

b. Choose numbers and statistics from the MLS and use the data in a sentence later in the day.

c. Choose a partner from your team or Market Center with whom you can practice the numbers. Meet weekly.

Study Your Market

FAMILY REUNION

2016

3. Use Formulas and Graphs

a. Enhance the raw data from your MLS by using

formulas and graphs to illustrate the market to

your sellers.

Study Your Market

FAMILY REUNION

2016

The Activity Index

The number of properties going under

contract compared to the number of active

properties on the market.

Active + Pendings = Activity Index

Pendings

Use Formulas and Graphs

FAMILY REUNION

2016

The Absorption RateThe number of months of inventory on the

market. It demonstrates how long it would take to

sell all of the current homes on the market if no

other homes were to come on the market.

Number of ACTIVE homes on the market = Absorption

Number of SOLD homes in the last 30 days Rate

Use Formulas and Graphs

FAMILY REUNION

2016

-Forbes magazineWhy Infographics Rule (2013)

“Most of us process information based on what we see. In fact, 65% of us are visual learners.”

FAMILY REUNION

2016

Absorption Rate

FAMILY REUNION

2016

• Perspective on Pricing Strategies

• Study Your Market

• Approach Sellers

• Get the Right Price!

• Manage Your Listings in a Buyer’s Market

Main Ideas

FAMILY REUNION

2016

• Find the Motivated

• You can only afford to work with the very

motivated.

• Prequalify sellers before you make listing

appointments.

• Update Your Listing Appointment

Approach Sellers

FAMILY REUNION

2016

• Tell the truth.

• Be strong up front.

• Leverage the media.

• Listen for responsiveness.

• Learn new scripts and dialogues.

• Communicate effectively.

• Be prepared to answer objections.

Update Your Listing Appointment

FAMILY REUNION

2016

• Perspective on Pricing Strategies

• Study Your Market

• Approach Sellers

• Get the Right Price!

• Manage Your Listings in a Buyer’s Market

Main Ideas

FAMILY REUNION

2016

• Don’t miss the window of opportunity.

• Original price is CRITICAL

• Help the sellers self-discover.

• Tell the tale of two markets.

• Don’t chase the market.

Get the Right Price!

FAMILY REUNION

2016

FAMILY REUNION

2016

• Perspective on Pricing Strategies

• Study Your Market

• Approach Sellers

• Get the Right Price!

• Manage Your Listings in a Buyer’s Market

Main Ideas

FAMILY REUNION

2016

• Offer phenomenal customer service.

• Get price reductions!

• Auction your listings.

• Offer seller concessions.

Manage Your Listings in a Buyer’s Market

FAMILY REUNION

2016

1. There is no single factor bigger than price.

2. Let the numbers do the heavy lifting.

3. Consistently keep sellers informed.

My Takeaways from Putting This

Presentation Together

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