Intertec™ Pricing Presentation

Question 1

Help You Price

Answer 1

One of the ways you will benefit by having me represent you to sell your home is … I can help you determine the best price to ask. Surprising as it may seem, people sometimes set the price lower than fair market value. Usually, however, the price is set too high and the home does not sell. It takes a lot of work on my part, but I can help you determine the right price to ask. (Because … Go To CMA-Concept)

Question 2

Comparative Market Analysis – Concept (Show blank CMA)

Answer 2

I work from a Comparative … Market… Analysis that contains three important parts.
Similar Homes Recently Sold. When this is filled out, these will tell us what people are willing to pay … for this kind of home … in this area … at this time.
Similar Homes For Sale Now. These will tell us what we are competing against. Buyers will compare your home against these.
Expired Listings or Reductions. These are Similar Homes Unsold for 90 Days or More. These illustrate the problems of over-pricing. As a matter of fact, expired listings and reductions tell us what people are not willing to pay … for this kind of home … in this area … at this time.
Do you see how this approach will help you determine the right price to ask?

Question 3

Comparative Market Analysis – Actual (Show filled out CMA)

Answer 3

Here’s the Comparative Market Analysis that I prepared on your home before I came out today.
Here’s your home … and I think you will agree that all of these homes in the area are similar to yours, do you agree?
OK, here are the similar homes that recently sold. Again, these tell us what people are willing to pay, for this kind of home, in this area, at this time: $211,800, $212,000, and $214,500.
Here are the similar homes for sale now. Again, these tell us what we are competing against: $220,500, $224,000 and $225,500.
And here are the expired listings and reductions. Again, these tell us what people are not willing to pay for this kind of home, in this area, at this time, $230,000 and $233,200. (SU TTLU)

Question 4

Price Tie Down

Answer 4

Do you want the most money possible (WFA)… as quickly as possible (WFA) … and with the fewest problems possible? (Let them answer Yes, then:) The best way to do that is to price it right in the first place. Does that make sense?

Question 5

CLOSING on Price 1

Answer 5

Where do you want to price it?

Question 6

CLOSING on Price 2

Answer 6

Based on the information I have given you, what price do you think will get the most money … the quickest sale … and the fewest problems?

Question 7

CLOSING on Price 3

To take a listing without a prepared CMA

Answer 7

I will take your listing today at a price you feel comfortable with. I will prepare a comparative market analysis and bring that information back to you. Then … you can adjust the price up … or down … or leave it alone … as you feel best. Fair enough?

Question 8

Price Delay

Answer 8

The pricing of your home is far too important to guess at. Let’s go through the house first.

Question 9

What I Think

Answer 9

What I think your house is worth has absolutely no merit whatsoever. The only thing that counts is … what are people willing to pay … for this kind of home … in this area … at this time. Isn’t that right?

Question 10

Best Way

Answer 10

The best way to determine what people are willing to pay … for this kind of home … in this area … at this time … is by comparing homes that have recently sold.

Question 11

At This Point

Answer 11

At this point, people usually ask me what I think their home is worth. Well … what I think … etc

Question 12

Always/Never

Answer 12

To get the best service, ALWAYS select your agent based on their marketing ability …
Then … with your agent … discuss and select the price and commission.
NEVER, EVER choose an agent based on price alone .. or commission alone! Ask me why.
When agents discover you are making your decision based on the asking price … or commission, they tell you the price or commission they think you want to hear, not the one that will sell the house.

Question 13

Price Assurance

Answer 13

By offering your home for sale in the competitive price range I believe you will get the most money … the quickest sale … and the fewest problems … which I know you want, isn’t that right?

Question 14

Two Other Pros

Answer 14

By offering your home for sale in the competitive price range I believe you will get the most money … the quickest sale … and the fewest problems … which I know you want, isn’t that right?

Question 15

Counter Offers

Answer 15

I’d rather counter ALL offers at full price than to not get an offer at all.

Question 16

Slightly Less- Slightly More

Answer 16

How would you like to get a little more for your home than other people are currently getting for theirs?
Some people are doing it by using the SLIGHTLY LESS - SLIGHTLY MORE pricing concept.
To get the most money … the quickest sale … and … the fewest problems … price your home slightly less than the competition … and slightly more than recent sales! About half Here’s why:
By pricing slightly less than the competition, more sales agents will inspect your home … and more buyers will inspect your home.
The extra activity and interest will give you a better chance to get a full price offer that is slightly more than recent sales. Does that make sense?

Question 17

Once / Twice

Answer 17

To get a home sold once - we need to sell it twice. First… we have to sell it to the agents … and second … they have to sell it to their buyers, so … to get the most money … the quickest sale … and … the fewest problems … we need to get the sales agents excited!

Question 18

Price Right and Showable

Answer 18

There are four possible combinations here:
If a home is overpriced, but showable, we get medium excitement.
If a home is priced right, but not showable, we get medium excitement. If a home is overpriced and not showable, we get big problems.
But when it’s priced right and showable we get lots of excitement, lots of activity, lots of showing, the most money … the quickest sale … the fewest problems.

Question 19

Effect of Price on Percentage that Sell / One Year Study

Answer 19

A one year study of 1000 homes shows that if a home was priced from 0-3% above the average of similar homes recently sold, 85% would sell within 90 days.
If a home was priced 4-7% above the average of similar homes recently sold, only 55% would sell within 90 days.
If a home was priced 8% or more above the average of similar homes recently sold, only 20% would sell within 90 days.
Where do you want to price your home … so it has a 20% chance to sell … a 55% chance to sell … or an 85% chance to sell?
How much is 3% above the average of these similar homes recently sold?

Question 20

19/20

Answer 20

Nineteen out of twenty times, the buyer for a home is found by an agent other than the one who lists the home.

Question 21

Penalty of Overpricing (Use the Presentation Visual)

Answer 21

Let me demonstrate the Penalty of Overpricing. We need to start at the bottom of the page.
1024 Elm came on the market on July 7th at $190,000.
At the time, the average asking price of similar homes for sale was $171,000.
Listed at $190,000, 1024 Elm was 10% higher than the average asking price of $171,000.
For 90 days, nobody made an offer. Consequently, on October 4th, Elm reduced to $172,000.
Notice that is still $1,000 dollars higher than the average asking price. The seller said he wanted negotiating room.
However, no offer was made until December 15th. The offer was $158,000. Notice that it’s $5,000 less than the average selling price of $163,000.
Elm had to accept because they had taken possession of their second house two months before and could not afford to keep making two payments. The owner said he had a gun to his head.
Subtract $158,000 from $163,000. That’s $5,000 dollars. It took Elm 5 months to lose $5,000 dollars.
Now, let’s look at what happened to Maple. 1020 Maple came on the market on July 1st at an asking price of $168,000. That’s $3,000 less than the competition. The house sold for $168,000 in 15 days. That’s $5,000 more than recent sales.
Bottom line: it took Maple 15 days to make $5,000, and it took Elm 5 months to lose $5,000!
Mr. and Mrs. Seller, what do you want to be … Maple … or Elm?

Question 22

Would You Pay (Compare seller’s wish-list price against lowest current competitive homes for sale.)

Answer 22

If you could buy the home at ______ for $______, or the home at _______for $_______, would you pay $_______ for this home right now?

Question 23

Six Choice Decisions – Price

Answer 23

Agents look for homes they think their prospective buyers will buy. Let’s see what happens when they see a house priced above the average asking price of say, $200,000.
(Using Presentation Visual, point to each home and say)
$200,000 … $200,000 … $200,000 … $200,000 … $200,000 … $210,000.
Which home will be shown the least? Which home will buyers have the least interest in? If an agent is showing six homes, which will he/she show with the least enthusiasm?
Let’s see what happens when a house is priced slightly below average asking price.
$200,000 … $200,000 … $200,000 … $200,000 … $200,000 … $195,000.
Which home will be shown the most? Which home will buyers have the most interest in? If an agent is showing six homes, which will he/she show with the most enthusiasm?

Question 24

Six Choice Decision – Tie Down

Answer 24

Do you want agents encouraging their buyers to buy your home … or to use your home as a bad example?

Question 25

Problems of Overpricing

Problem Opening Statement:

Answer 25

I will take your listing at $______ if you want me to … and I’ll do my very best… but before we actually put that price on the agreement, let’s discuss the four problems of overpricing.

Question 26

Problems of Overpricing

Price Problem 1:

Answer 26

The first problem is … it’s hard to get sales people excited. And it doesn’t make any difference which company in town gets the listing … the problem is the same … it’s hard to get sales people excited.
The sales people in my office know what people are willing to pay … for this kind of home … in this area … at this time. If I take your listing in at $_______, their reaction will be that it’s over-priced. They won’t get excited because they know they can’t get their buyers excited.
It goes into the MLS. There are about 80 active sales people in this area. They know what people are willing to pay … for this kind of home … in this area … at this time. Their reaction will be that it’s over-priced. They won’t get excited because they know they can’t get their buyers excited.
On the other hand … if you price your house competitively … this is what will happen:
The sales people in my office get excited because they know they can get their buyers excited. The active people in the MLS get excited because they know they can get their buyers excited. Excitement is contagious. So is apathy. May I ask … which would you like to have?

Question 27

Problems of Overpricing

Price Problem 2:

Answer 27

The second problem is … it’s hard to get good buyers to look. Serious … qualified … buyers just don’t want to spend time looking at over-priced listings.

Question 28

Problems of Overpricing

Price Problem 3:

Answer 28

The third problem is … even … if we can get buyers to look … it’s hard to get an offer. Serious, qualified buyers just don’t want to tie up their deposit money for even one day on what they think is a hopeless cause or long, drawn-out procedure.

Question 29

Problems of Overpricing

Price Problem 4:

Answer 29

The fourth problem is … it’s hard to get financing. Even if we find a buyer willing to pay $¬¬¬-_______, where are we going to get it financed? You see, lenders know what people are willing to pay … for this kind of home … in this area … at this time. They are willing to finance 70% or 80% of $(market value), not of $(an inflated asking price). So, where … are we going to get it financed?

Question 30

Price Reduction 1

Answer 30

I need to see you right away. We are not getting showings or offers. We need to lower the price or raise the commission, possibly both.

Question 31

Price Reduction 2

Answer 31

Would you consider an offer of $_________? (Use highest or average recent sale.)
(Review: What happens if the home does not sell by target date?)

Question 32

What Info

Answer 32

May I ask, what information do you have that leads you to believe you can actually get $_________ for your home at this time? (ADM)
(Or) May I ask, what information do you have that leads you to believe that someone will actually pay $_______for your home at this time? (ADM)

Question 33

What Happens If

Answer 33

May I ask, what happens if … you do not get (no one makes) a serious offer at $________? What are you going to do?

Question 34

Suppose

Answer 34

Suppose the best offer you receive is $________, will you accept it?

Question 35

Absolute Least

Answer 35

May I ask, what is the absolute least … you will take for your home at this time?

Question 36

I Sincerely Believe

Answer 36

I sincerely believe that you will get the most money … the quickest sale … and the fewest problems … by pricing your home in the competitive price range in the first place.

Question 37

Negotiating Room

Answer 37

When you give yourself negotiating room, you lose negotiating strength. By giving up negotiating room, you gain negotiation strength.

Question 38

Counter Offers

Answer 38

I’d rather see you counter ALL offers at full price than to not get an offer at all.

Question 39

Highest Not Best

Answer 39

Many people feel they should give the listing to the real estate person who offers to try at the highest asking price. That is not the best way at all. The fact is … you get the most money … the quickest sale … and the fewest problems by pricing your home at the right price in the first place. It takes a lot of work on my part, but I can help you select the best price to ask.

Question 40

Another Agent Said

Answer 40

Did he/she bring comparative … market… analysis … to justify their confidence?
Well … I’m sure that if you keep trying, you will find someone who will take your listing at___% over market value, ___% over market value, even ___%.
Actually, there’s no limit to how high you can go and still find someone who will take your listing.

Question 41

Big Sign / Little Sign

Answer 41

Any agent and any price can get you the big sign that says ‘For Sale’. Only the right agent and the right price will get you the little sign that says ‘Sold!’

Question 42

List or Sell

Answer 42

Do you want to list your home … or do you want to sell your home?

Question 43

In or Win

Answer 43

Do you want to be in the race … or win the race?

If other people are running a 4 minute mile, we won’t win the race by running a 5 minute mile.

Question 44

Rejecting a Listing:

I’d Rather Turn You Down

Answer 44

I’d rather turn you down than let you down. If I take your listing today at $ ______ you will expect me to get salespeople to come and see it … buyers to come and see it … and offers made. When the salespeople don’t come … the buyers don’t come … and the offers don’t come, you are going to say that I let you down. I would rather turn you down today than let you down in 90 days.

Question 45

Rejecting a Listing:

Would Not / Could Not

Answer 45

I’m sorry, but under the circumstances (price, showability, commission) I don’t believe I should take your listing. I’d rather have you tell your friends and neighbors (your name) would not sell my house, rather than have you tell them (your name) could not sell my house. If you change your mind on (issue at hand) please let me know.

Question 46

Rejecting a Listing:

Race Car Driver

Answer 46

If I owned a race car and you were a top professional driver and I said, ‘I don’t care if we win the race. I just want the car to be in the race.’ Would you want to be my driver?
If you don’t want to win this race (get your home sold) I don’t want to be your driver’.

Question 47

Rejecting a Listing:

It’s Your Home

Answer 47

I appreciate exactly how you feel. It is your home … and you certainly have the right to ask whatever price you want… but, my professional reputation is at stake. You see … my buyers put their trust in me. They ask me to recommend suitable homes at reasonable prices, and under the circumstances, I just could not recommend your home when it is this far over current market price.

Question 48

Rejecting a Listing:

I’m Not The Enemy

Answer 48

I’m not the enemy. I’m on your side. I wish we could sell your home for $1 million. The problem is that your neighbors are selling their homes for $________ and $________ and $________.