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Make Your Market Turning Up the Heat: Un-Freezing Sellers.

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Presentation on theme: "Make Your Market Turning Up the Heat: Un-Freezing Sellers."— Presentation transcript:

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2 Make Your Market Turning Up the Heat: Un-Freezing Sellers

3 *Prep for This Weeks Session* Slides are automated. Test these slides before presenting this session. Print out instructions for Sellers, Sales Associates, and observers for the activity on slides Print out blank copies of the Your Home vs. the Home Youll Purchase handout for the activity on slides Have calculators for the activity on slides Have a flip chart for the activity on slide 28 *Delete this slide before presenting *

4 The Too-Small House Ann and Dave have been married for 5 years. They live with their two young children in a 3-bedroom home - with only one full bathroom.

5 Cant You Imagine How Their Mornings Look?

6 Theyve Been Dreaming… Needless to say, they have been eyeing a couple of larger homes that have been on the market for a few months.

7 Does This Sound Familiar? They understand that its a good time to buy, but they keep hearing thats its a bad time to sell. Theyve met with three different real estate agents. None of the agents have dispelled the myth that its a bad time to sell, so they think they cant buy the bigger home theyve dreamed of.

8 Theyre Frozen So Ann and Dave are frozen and are staying in their too- small home with too few bathrooms. Theyve managed so far, so they figure they can stick it out until the market improves.

9 You Can Be Their Hero! Today well introduce a tool you can use to un-freeze sellers like Ann and Dave and help them understand todays unique opportunity for trade-up buyers.

10 You Might Ask… What about the seller who is down-sizing and is frozen? How can I influence them? Next week Ill introduce a tool for influencing down-sizing sellers in todays market. Lets get back to todays focus…trade-up buyers.

11 The Move-Up Tool This chart illustrates how much sellers will save by upsizing in a down market. Today youll learn how to present it so sellers respond to this unique opportunity.

12 The Move-Up Tool First well watch a demo of how to use this chart to influence sellers who are hesitant to move up. Then youll get a chance to practice using it. This tool can be used in all price ranges, not just the ones were using for these examples.

13 Your Home vs. the Home Youll Purchase Scenario: Phyllis and Steve Carney are expecting a set of twins to be born later this year. The house they currently own has two bedrooms, so they are looking to move to a larger home. How do you get them to understand that its a great time to upsize? Click to the next slide to find out. They would like to sell their home for $300,000. Comparable homes in the area are now selling for $270,000. They want to purchase a home in Middleville that was originally listed at $500,000. This home has recently had a price reduction and is currently listed for $450,000. Note: Play this is slide show view. The slides will play automatically. The Carneys Current HomeThe Home they Want to Purchase

14 Their HomeThe Home They Want to Purchase Cost of Upgrade Past$300,000$500,000$200,000 Current$270,000$450,000$180,000 Difference-10% $20,000 Savings Your Home vs. the Home Youll Purchase The Carneys want to list their home for $300,000. Current list prices for comparable homes in the area are $270,000. This equals a $30,000 decrease in price, or 10%. Remember that the Carneys want to purchase a home in Middleville originally listed for $500,000. In the current market, this same home is listed at $450,000. This difference in price is $50,000, or also 10%

15 Their HomeThe Home They Want to Purchase Cost of Upgrade Past$300,000$500,000$200,000 Current$270,000$450,000$180,000 Difference-10% $20,000 Savings Your Home vs. the Home Youll Purchase In the past, the Carneys would have paid $200,000 to upgrade to their home in Middleville. If they reduce the price on their current home now and buy the house in Middleville at its current list price, the cost of upgrade would be $180,000. Overall, the Carneys would save $20,000 in this situation.

16 Key Points to Remember Keep in mind…this approach only works for people moving into a higher-value home in a market thats declining at the same rate or greater. Help them see how much money they can save by moving up in a declining market. Sellers may be afraid to lose money in this market.

17 Key Points to Remember Do your homework: Look at the inventory on the market and make sure your example is representative of the story you want to tell. Be sure to have numerous properties to show. Click ahead to the next slide for a chance to practice.

18 Its Your Turn to Practice Split into groups of three. Each will have a turn to role-play the part of the Sales Associate, Seller, and Observer. Round 1 #1 Sales Associate #2 Seller #3 Observer

19 For Those Playing the Role of the Seller… For those playing the role of the seller, make sure you present obstacles to the Associate and do not give in too easily. Create your own responses to each question the Associate asks you, but be sure to stay consistent and make them work to convince you that its a good time to sell in this market.

20 For Those Playing the Role of the Associate… Remember, your ultimate goal is to have the seller understand why its still a good time to sell. Use the Your Home vs. the Home Youll Purchase chart to convey the point that this is a great time to move up in this market, if the scenario is applicable.

21 For Those Playing the Role of the Observer… Note what the Associate did well to get the Sellers to agree to list their home in this market. Note the tools and dialogue they use. Note some of the core objections brought up by the seller. Make any notes of what worked and suggestions for next time.

22 Round # 1 Background A couple named Diane and Steve Thomas. They want to list their home for $600,000. Comparable homes in the area are selling for $575,000. They want to purchase a home that is currently listed at $900,000, which is down from $975,000. You have 5 minutes ***Note to Managers: If you feel more comfortable, create scenarios that more closely match the price ranges in your area. Remove this box before presenting.***

23 Large Group Review How did you feel about this scenario? Was it easy to convince the seller to list their home in this market? Associates: What were the main challenges you faced and how did you overcome them? Sellers: What did the Associate say to convince you to put your home on the market? Observers: What went well? What could have been done better?

24 Skills Practice Round 2 Round 2 #1 Seller #2 Observer #3 Sales Associate

25 Round # 2 Background You have 5 minutes A woman named Judith Baker. She wants to list her home for $275,000 and doesnt want to budge. Comparable homes in the area are selling for $260,000. She wants to purchase a home that is currently listed at $435,000, which is down from $460,000.

26 Large Group Review How did you feel about this scenario? Was it easy to convince the seller to list their home in this market? Associates: What were the main challenges you faced and how did you overcome them? Sellers: What did the Associate say to convince you to put your home on the market? Observers: What went well? What could have been done better?

27 Skills Practice Round 3 Round 3 #1 Observer #2 Sales Associate #3 Seller

28 Round # 3 Background You have 5 minutes A man named Kenny Markus. He wants to list his home at $350,000 and thinks he cant afford to lower his price, since he wants to move up. Comparable homes in the area are selling for $330,000. He wants to purchase a home that is currently listed at $535,000, which is down from $575,000.

29 Large Group Review How did you feel about this scenario? Was it easy to convince the seller to list their home in this market? Associates: What were the main challenges you faced and how did you overcome them? Sellers: What did the Associate say to convince you to put your home on the market? Observers: What went well? What could have been done better?

30 Do You Have Frozen Buyers? Raise your hand if you currently have clients in this situation. Tell us about the house theyre currently living in and are hesitant to sell. Do you know where they want to move to? Lets practice how we would handle this seller to convince them that its a great time to move up.

31 Call to Action In the next week: Use the move-up tool to influence sellers that now is the time to move up to a more expensive home. Be prepared to share your experiences at the next Make Your Market session.

32 Next Weeks Make Your Market Session Have you been challenged with a seller who… Is retiring but is afraid to sell in this market? Doesnt need to move, but is tired of the maintenance their home requires? Well focus on influencing sellers who are down-sizing at next weeks session.

33 Day: [day of week] Time: [start time] – [end time] Location: [meeting location] Make Your Market: Un-Freezing Sellers Who Are Down-Sizing


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