HOW TO SUCCESSFULLY RAISE YOUR PRICE RANGE - KEVIN WARD

I was totally comfortable with a $42,900 listing. A $429,000 listing made me uncomfortable. Hi there, it's Kevin Ward, the founder of yes Masters Real Estate Success training. Helping you get more yeses and more successes in your business and in your life. And I remember the very first listing I ever took was $42,900 in Fort Worth, Texas. $42,900. I have coaching members that regularly get commissions that are over $42,900. But that was my first listing as an agent. And I can remember walking into the luxury homes, going into the homes that back when I started real estate, back in the 1900s were homes that were 400, 500, 600,000. And looking at these houses and being like, whoa, this is unbelievable. And I was so uncomfortable. And the reason I was uncomfortable is because I grew up in a mobile home. I come from very humble back. I came from humble beginnings, very humble background. We weren't poor, but we certainly didn't live in affluence. And so the idea of listing and selling high priced homes really made me uncomfortable. I was totally comfortable with a $42,900 listing. A $429,000 listing made me uncomfortable. And yet I realized that, you know what, if I listed $429,000 houses, I make 10 times as much as on a $42,000 listing. And so I knew pretty soon in real estate, I've got to raise my price range. And I, to this day can remember back in 1998 when I started real estate. I remember the, the first listing I ever took that was over $100,000. And I'm like, yes, I have arrived. And then I remember the next listing I took that. Not the next listing necessarily, but I can remember the first listing I took, it was over $200,000. And then I remember the first new construction home I listed with Michael D's. There was over $450,000 in Colleyville. And I'm like, yes, I have arrived. Every time I broke through, it was terrifying. It was nervous. And so I get agents ask me all the time, how do I raise my average sales price? How do I raise my price range? I want to break into the luxury market or I want to just make more money. And I'm kind of stuck here in this price range. How do I get into a higher price point? So I wanted to share with you the simple and most powerful ways. The steps to take to how do you get from the price range you're on right now into a higher price range. And there's five steps that you want to take to do it in a way that will build your business and move you forward rather than kind of taking the flying leap and going like, okay, I'm going all into the luxury market. I do not recommend that if you're dealing with a regular, whatever price range you're in right now, I do not recommend that you just go like, okay, I'm just going to go luxury and I'm not going to do it deal with anything else. Because you're going to, you're going to cut yourself off from a lot of the business and a lot of the income that can feed you and feed your business and feed your bank account until you master the luxury market. So here's how you can make that transition in a way that's powerful, that's smooth, that's relatively fast, but also in a way that is not self destructive. So number one is if you want to raise your price range, you have to set the intention. You have to just go like, okay, I'm going to raise my sales price. It's not going to happen for most of you, it's not going to happen automatically. You have to set the intention to go like, okay, I want to get into a higher price point than I'm comfortable with now. The hardest thing for most people to raise their sales price is not about money, it's about comfort zone. It's that I'm comfortable. I was comfortable dealing with homes and that, you know, 50,0001-000001-50000. I was comfortable there, 250,000. I started getting a little uncomfortable when I started real estate. And so as my price range expanded, then my comfort zone also expanded. So it starts with the intention. I got to set the intention. Okay, I'm going to start this year, I am going to raise my average sales price. Then you can set a goal and say, okay, my average sales price now is 200. I'm going to raise my average sales price to 300,000, which would be a significant increase because it means you're taking some 400, $500,000 listings and doing some higher price deals to average it out. Because the second thing is, as you do it, the way you approach it is I want you to think expansion and what I mean by that is I want you to think, I am going to expand my price range. I'm not going to raise my price range. So let's just say that if your average sales price is 200,000 and that means you're doing anything from 100,000 to let's say 300,000, I'm just giving it right that what I want to do is let's say that I want to raise my average sales price. So I'm going to expand and I want to expand to the 400,000, the $500,000 market. I'm not going to just go like, okay, I'm not going to take any more of these and I'm just going to move up here. Okay? So I want you to think, expand what you're willing to do rather than stop this and move up here. Because if this is where you've been doing your business and you just move up here, what's going to happen is now you're going to be, you're mentally and emotionally, you're literally turning away business that will still feed your bank account. Okay? So expand it. If you later on want to do less and less of this, you can. But until you're being successful here, don't stop being successful here. So don't think just raising it and eliminating the lower. I want to think expand my sales price rather than raising the sales price. I hope that makes sense. So as I expand it, I'm getting these higher priced listings. It's automatically going to increase your price range, your average price range, your average commission check is going to go up. Another thing, the reason that's important is that your $100,000 seller today becomes your $300,000 seller five years from now or your $100 buyer today. Their parents have a 300 or 400,000 or million dollar house. And when you burn the relationship because like I don't want to Mess with you $100,000 little, little, you know, you're the little people, I don't want to mess with you. You're also cutting yourself off from all the relationships of the people that they may know. Okay? So expansion, not just raising it, but I want to think expansion number three as I to raise my price range is I want you to think exposure. Now what I mean by exposure is, is exposing yourself into a higher price range typically involves not just going on listing appointments in higher price range houses, but it also has to do with that comfort zone thing I mentioned earlier. And that is most agents, the reason they are in a certain price range is that's where they're comfortable. And so when they think of, oh, a million dollar listing, oh, you know, you see the TV shows Million Dollar Agent or the million dollar listing and you're like, wow, we a lot of Agents don't feel worthy of listing and selling a home in the up high end in the luxury market. And so how do I get comfortable in that price range? How do I get comfortable being around affluent sellers? How do I get comfortable being around somebody that will sell in a price range that is in a price range that I never don't have any experience in? Because we're like, oh no, what if they say how many homes have you sold in my price range? And I go, ha, ha ha. So what you want to do is expose yourself to those higher price ranges. In fact, I want to just share with you a couple of books that may help you on this. Okay. And in terms of exposing yourself and getting yourself comfortable to a higher price range, there was a book that was written several years ago by Lori Moormore. She's the one that actually started the Luxury Home Institute out of Dallas, Texas and her name is Laurie Mormore. She wrote a book called Rich Buyer Rich the Real Estate Agent's Guide to Marketing Luxury Homes. Now I'm just going to tell you, I think this book is no longer in print. I found a used copy of it and actually paid like 40 bucks for it on Amazon a few years ago. I did not find it that helpful. It's got some good stuff in it, but, but it really, for me it was kind of like, okay, I don't know that it was worth the 40 bucks for me, but anything like this is going to help you. Now this one was very helpful. And this is a book called Selling to The Affluent by Dr. Thomas Stanley. Now this book is several years old now. I'm not sure if it's been updated or not. And there may be other books that have come out that I'm not aware of. And so if you're watching this, I would love it if you know of a book or a book that is available on higher price ranges or working in the luxury market, feel free to comment and post that down in the comments below. This video. But exposure, not just exposing yourself to, I want to know how do people that make a lot of money think, how do people that live in those price homes, what are they like? And how do you do that? Expose yourself, expose yourself to the world of higher price homes. The people, where do they eat, where do they hang out, what are the kind of things? I want to go into those neighborhoods, I want to drive the neighborhoods. I want to get in there anytime that I can and get into that realm, build relationships there. But mostly is getting used to being around that people and you'll discover that they're no different than you and they're no different than any other seller in any other price range we talk about. Are they a little more sophisticated? Yes, they're more sophisticated in this respect. My experience has been they are used to paying other people to do professional services. So whereas I found the hundred thousand dollar seller was more likely to fight about commission because this is the guy that mows his own lawn. This guy up here in that million dollar price range, he doesn't mow his own lawn. He pays a professional to come mow his lawn. This guy does his own taxes. This guy has a CPA that he pays a lot of money to. But he needs a professional because he knows that it's an investment and he actually saves more money than it costs him. So higher end homeowners, buyers and sellers tend to be, they have higher expectations, but they also are a lot more willing to pay you a higher commission. Okay? So you got to get comfortable in that area. And the first step to doing that is to expose yourself to the higher price range. Now the fourth step is the tough one. Okay, and here it is. If you want to move to a higher price range, you just got to go for it. You got to get yourself into that higher price range. How do you do it? You start prospecting in the higher price range, you start making phone calls, you start door knocking. You get into the higher priced homes and you start talking to those people and you start asking for business. Now the problem is, the challenge is, is people go like, well, I'm just not comfortable doing that. And I will promise you, you will never get comfortable in a higher price ranged area, a higher price range if you're not comfortable now, you're never going to get comfortable until you go there. You're just not going to do it. It's kind of like trying to get used to taking an ice bath. There's only one way to get used to taking an ice bath. You have to jump in right until you get in the water and you experience it and experience the benefits of it. You're not going to get to where you're comfortable with it. And the first time you get in is going to be painful. It's going to be like, I can't believe I'm doing this right. But when you go there, that's the only path to the breakthrough that says I belong here. So you just have to go for it. And then the fifth step is get success. And that is once you decide to go into a higher price range. I just want you to focus on getting one success. Just focus on your first success. You've heard the saying, success breeds success, right? So as you're coming into it, you just got to be like, okay, my average list price is 200,000. The highest home I've ever done is 300,000. What am I going to do? I am going to set a goal that this year or in the next three months, I want to take one $400,000 listing or more. $400,000 plus. What do you do? Four. Focus on that. And just like I'm going to get, I'm going to do that. I'm going to focus on that and just focus on getting one success. Get your first one. And that first listing may not be 400, it may be 600. But once you set the intention and you start moving toward it and you start taking the action on it, make sure you're focused on getting the success as opposed to going and going like, I'm going to try this. Oh, I hope this isn't too painful. You don't focus on the pain. You focus on the win, right? Focus on getting the success. And when you start with that intention and you go with that attitude, it is a done deal. It is only a matter of time. It's not a matter of if, but when. You are going to break through to a higher price range, to bigger commissions, to bigger bank. It's your time. So if you liked the video, make sure you give it a thumbs up, ask any questions or post any comments you have down below. Share this video and I will see you on the next one.