Lessons Learned from the Market Shift Seminar
Friday, March 1, 2019
Posted by: Maria Brogan
As the industry saying goes, shift happens. Every time the market shifts, buyers and sellers end up in a wrestling match and it’s often the agent’s job to keep everyone in check. On Wednesday, February 27, Anthony Lamacchia of Lamacchia Realty and Crush It In Real Estate passionately discussed market shift and how to handle the changes, especially consumer perception, to a packed room of members and guests.
Below are a few of my takeaways from the event. I’d also like to give a shout out to our Young Professionals Committee for coordinating and hosting this event and our sponsors RJ Home Inspections, Salem Five Mortgage Services, and Ligris, as well as to Anthony Lamacchia for spending a few hours to share his knowledge and techniques with us!
Be the Expert
Do you remember the scene in Good Will Hunting when Matt Damon’s character says, “You wasted $150,000 on an education you coulda got for $1.50 in late fees at the public library.”? He took advantage of all of the information available to him and put in the time and work to study and become extremely well educated. Like Matt’s character, consumers today have access to an incredible amount information. Luckily so do REALTORS®! Plus, you have exclusive access to more comprehensive data via MLS PIN and your local and state associations, as well as other tools, such as RPR®. You need to be more informed than even the savviest consumer. To be an expert in your industry, you need to do more than just review the market data, but analyze it to identify trends. Use the tools and resources that are available to you! By accessing data and recognizing trends, you can show buyers and sellers what has happened, is happening, and what the potential for the market is in the future.
Let Sellers Help Determine Their Price
Don’t be scared, I don’t mean just pick a price out of thin air based on the adoration of their custom baseboards or fancy chandelier, or the sale price of their neighbor's house months ago. If you begin your CMAs with a suggested list price, you may want to consider trying this approach: Give them your pitch and data first. When you lead with a number, that may be all your potential seller will focus on. While you’re showing them the awesomeness of your marketing plan, your impressive stats, and all your accomplishments, they are focused on that figure. Using your research data and reports, show them the comps and ask them what they think their home would sell for. Not only will this show off the hard work you’ve put into the research, but it will likely open up your new sellers to agree to a more reasonable price based on hard local data.
Bring Out Your Inner Freud
While most members do not have a degree in psychology, understanding the emotional state and triggers of potential buyers and sellers is extremely important. A few months ago, Anthony’s agents were discussing how prospective sellers would call to inquire about listing but never move forward. Upon listening to conversations his agents were having with seller prospects like, “My last listing went under agreement in 3 days!”, Anthony had an “A-HA” moment. Those prospective sellers were getting scared off by the possibility of having their home sell quickly and not having a place to go. Those in the industry know that contingencies can be put in place to ensure our sellers aren’t stuck, but it’s important to remember that the general public doesn’t always know what we do and can easily go into panic mode. How would you feel if you thought you’d have to move with just a few days’ notice? Try to put yourself in their shoes. Forget what you know and try to think about what you’re saying and what it might trigger emotionally or psychologically. By anticipating what may cause worry or hesitation and adjusting your script to address the issues, you should have an easier time having the discussion and potentially less resistance to listing.
Pack Some Swatches
While we’re still in psychology mode, I’m going to throw in this last tool we learned from our very own Nancy Rogers. During the event, Nancy was talking about approaching sellers about repairs and maintenance before listing. She asked the seller to put themselves in the buyers shoes and what they would want to update or change. Going a step further, she asked what they would do if they were going to stay in their home. This can change the conversation from a “the agent said I have to do or fix this” to “this repair or update will help make improve how buyers view my home”. When a particular seller mentioned painting a room and asked Nancy if she would help her pick colors, she was ready and even pulled out some swatches!
These were just a few of the takeaways that I learned from the event. What were yours?
Reference links from Presentation: