Market changes are not new to the real estate industry. We have seen many different markets just in the past 25 years. Agents that have been licensed more than 5, 10, 15 or even 25-plus years can confidently say they have seen all kinds of market conditions and will clearly remember the market we are back in right now. The agents licensed within the last 2-3 years who have never seen a property stay on the market more than 2-4 days and be such an intense seller’s market now need to increase their sales skills for guiding and managing the process of pricing and selling homes and how to navigate seller expectations.
Here are several proven strategies that will help keep your agents competing at the highest level and winning:
- The person who can change the most will succeed the most. Every agent in real estate must continually adjust and fine tune their strategies to be literally in front of and ahead of the market. To stay ahead of the changes, we must teach our agents to move and adjust quickly. Realize that staying ahead means seeing the changes before they start happening. Being able to ‘shift’ client service skills quickly will create better outcomes for your agents.
- How we communicate is as important as what we say. It is so important to realize that how a sentence is said is as important as what is being said. Teaching your sales associates how to speak with confidence and certainty is key. If we have buyer or seller clients that are in shock at the “sudden changes” that are occurring now we can either add gasoline to their concerns and over-mirror the client instilling even more fear and unnecessary concern, or we can minimize the unnecessary fear and say, “we see this all the time” OR “this is normal actually, let me explain…” These phrases help lessen the drama and fear associated with whatever is creating it. Help your team members overcome more objections using these diffusing and strategic phrases. It will lessen the drama and fear and help consumers make better decisions without stress.
- Learn to communicate “pricing strategies” at your listing appointments. It’s true and what this means is if you remember the scripts or talking points of 2018-2019, or even before that if you have been licensed for any significant amount of time, you will remember that listings were on the market for up to 45-60 days sometimes and they had 10-15 showings and had 1-2 offers. If you didn’t have your license prior to 2022, then you need to learn these new talk tracks and understand what a balanced market looks like. Know how to speak to a seller about their “options” and what the risks and benefits are to each one. Meaning what are the effects if any to pricing your home at or 10-15% above fair market value. If a seller wants to list at 10-20% higher than fair market value, but it is lower than the values of the last 24 months, don’t get discouraged, but rather realize they may not be super motivated and want to ‘test the market’. Take the listing and discuss with the seller a new pricing strategy for after the house has been market for “x” number of days and with 10 showings with no offers. The ‘initial’ list price implies there will be another potential list price.
- Brush up data-driven skills. Provide your ‘Big 4 Stats’ on listing appointments. Know your 1.) average DOM compared to the MLS, 2.) average sales price, 3.) average percent of list price to sale price ratio, and 4.) average sale price. These Big 4 Stats will help provide proven results that your agents and/or office can show prospective sellers.
- Determine motivation of your clients. Effective questions on the front end will help you understand the seller’s motivation for selling. If you don’t know their motivation it will be hard to help them determine their pricing strategy. If they need to be moved and into a new home they have already purchased in another state, then their motivation may be higher to sell at fair market value. If they are ‘testing the market’ to see if they can get a certain price, well that’s ok, too. Determining the seller’s motivation is so pivotal and most agents don’t take the time to really ask the right leading questions to fully know the motivation level of their seller clients. Knowing this will help you with the process of selling their home so much better. You can remind them that their motivation has changed, but the price hasn’t. Motivation does change and sometimes sellers need to see that their first pricing strategy didn’t produce a sale. That’s okay, keep providing them with options and the risks and benefits of each one and you will be adding value and helping them achieve their goal of selling their home.
Help your agents change their perspectives. Most of them have a little bit of whiplash from the abrupt change from seller’s market to buyer’s market or stable/balanced market. Help them remember the words, advice and guidance they used pre 2022 or if they are new in the last 3 years, teach them these effective ways to communicate with buyers and sellers to be more valuable and provide better solutions for their clients.
As a broker, manager or regional you can help your sales associates adopt these proven listing and sales skills strategies and incorporate them into your agent training and coaching. Educate your agents right now on how to best build confidence and certainty and look at this market as a great opportunity to thrive and grow their businesses.
These are just a few of Johnson’s proven and exclusive leadership and development strategies that produce amazing results quickly. For more information about Johnson’s exclusive turnkey, team solutions to scale your business or to hire Sherri for keynote, contact Sherri Johnson at www.sherrijohnson.com/onetoone for coaching plans. Download Sherri’s Exclusive GoldMine Pipeline™ Strategy to get your agents closing more leads into listings, sales and ultimately income. This system can double their production, fast! Go to www.goldminepipeline.com for my Free EBook and the Worksheet!
Sherri Johnson is CEO and founder of Sherri Johnson Coaching & Consulting. With 25 years of experience in real estate as a top agent, broker, and executive responsible for over 750 agents and over $1.7 billion in annual sales volume. Sherri offers her exclusive and proven methods through custom, one to one coaching and tailored consulting services. Sherri is a highly sought-after keynote speaker delivering high energy and real solutions audiences love. Sherri has been named a RISMedia Real Estate Newsmaker in 2020 and 2021 as an Industry Influencer and Thought Leader. She is the author of the Sherri Johnson Academy, an on-demand learning platform as well as the 90-Boot Camp. Sherri is a preferred coach, consultant and speaker for top 10 international brands and brokerages and can dramatically increase your company’s revenue and profits. Visit www.sherrijohnson.com for more information.