Great dialogue today from Rik Rushton when you have to explain to the seller the need for a price reduction.
Topic – Rik’s Fast Five
Mentor – Rik Rushton
- What to say when sellers resist early offers
- Price “improvements” not “adjustments”
- How to explain the need
Marketing Monday – Denise Quick from R&H Yamba tells us how Propify has helped her gain more exposure for her listings.
Kevin: Our Mentor this week, Rik Rushton from Insight PD explains to us how we can talk to a seller about the need for a price adjustment. One of the great skills that good agents have is that they can get their sellers to accept the unacceptable. Here’s Rik.
Rik: Yeah, absolutely, and that sort of really gets down to the fact that we’re in a changing market throughout most of the Australasian real estate market landscape. So a lot of vendors have probably still got their thinking, Kevin, in 2017 values and probably haven’t quite got adjusted to the reality of what the 2018 market is saying. So one of the things we need to get them to do very quickly is to educate them and improve their price.
Rik: A price improvement is much better than a price drop or a price adjustment. If we say we need to improve your price and here’s a reason why, the figure we just got from the most recent buyer coming through your home was that your board says you’re for sale but our price expectation says there’s better buying elsewhere.
Rik: That’s not me saying that to you Mr. and Mrs. Seller, “That’s the recent buyer that I had through or my colleague had through, and they identified three other properties in the current market that represented much better buying than our home here.” So it gives them a chance then to think about their price expectations and maybe, just maybe, improve the price to a point where they’re more in line with the current market.
Kevin: Yeah, I love that. The fact that you’re giving the information, you’re a conduit. It’s not coming from you. Even if they turn around and say to you, “Well, what do you think, Rik?” You could quite comfortably say, “Well, look. It’s not my decision because I’m not buying it. I’m trying to help you sell it, and we’ve gotta take notice of what the buyers are saying.”
Rik: Yeah, I often say to them, “Ultimately, my lifestyle doesn’t get affected whether we make this shift or not, but yours might. So let’s get on with it. What was the key purpose for coming to the market three or four weeks ago or three or four months ago?” And it’s like whatever they’re situation is, all I ask them is, Kevin, I say, “Has it changed in the last three weeks or the last three months?” “No, no, that’s still the ideal outcome.”
Rik: Then all we need to do now is improve the price, and we can get you there. But at the moment if we stay where we are as these buyers quite rightly pointed out, we say we’re for sale, but our price expectations says there’s better buying elsewhere.
Kevin: Mm-hmm (affirmative).