YESTalk-125 - How to Convince Sellers When the Market is Turning

Welcome to Kevin Ward's Yes Talk for Realtors. This is Kevin Ward.

And now you're on a listing appointment, and you got to convince the seller that he still thinks his house is worth a million or he wishes it were worth a million and it's actually only worth 925. What do you do? And now you're on a listing appointment and you got to convince the seller that he still thinks his house is worth a million or he wishes it were worth a million and it's actually only worth 925. What do you do? So the first thing I want you to do is go back and watch the video that I published last week on the channel here on how to tell if your market's turning. You got to know if your market's turning or not. Now we know it's turning in. If it is, we know it's turning. So now I'm sitting down with a seller. How do I convince them that it is actually turning? And with that, help them price it right. So there's five things that you have to do to win with sellers. When they're not. You're going to have to tell them something they're not going to like to hear, and you're going to have to convince them to agree with you and take the right actions in terms of pricing and selling the house. So, number one, the first thing that you have to do is you have to actually do know what's happening in the market. You've got to know what's. How much inventory is. Is the inventory increasing or days on market increasing? Is a month supply? Is it increasing? You've got to know what's happening in the market so that when you show up and you have this conversation, you have certainty that you are confident and you know what's up. Because if not, they challenge you on it. You go, well, I think, and. And you come across as uncertain. They're like, oh, you don't know? Then I don't trust you. You're just trying to price my house low, Right? So you have to have that certainty and conviction so that you can stand up against their skepticism. Okay? Because they just don't want to make a mistake and they don't want to lose money. You have to understand where they're coming from, which we'll get to in just a second. Now, the second key to convincing them is I'm going to just put it this way. The market, the market knows, or you could say the market rules. The market is in charge. How much is their house Worth today? Well, it has nothing to do with how much they paid for. It has nothing to do with how much they want for it. It has nothing to do with how much money they put into it. It has nothing to do with how they feel. It has nothing to do with what they want. What determines the value of their house today? Answer, the market. The market is the only one that gets to set the value and the price on a home. If they set it based on what they want or how much they owe or how much they need, then they're paying attention to something that's totally irrelevant and disconnected from the market. The only thing that matters is how much is a motivated buyer willing to pay for your house in today's market. By the way, that's top dollar. So I train a lot of my coaching members that you, you should sell every single listing for top dollar. Well, what is top dollar? Top dollar is the most money a motivated qualified buyer is willing to pay for your house in this market. When you're represented by a good listing agent that knows how to negotiate the price, it's the most money you're going to get for this house in this market. That's the top dollar. We'll say, well, I think it, I think it should be worth, I think I should be able to get 1.1 million. Right? But what you think is not, has no connection to reality. So when you're talking to the seller, you must keep the conversation about the market and what the market is telling us, what the market is saying. Okay? So based on what the market is telling us, this is the price, alright? So you've got to do this. So one, you have to know the market and then you got to be able to speak market to them and say the market is telling us this. Well, if I listed at your price and you'll hear sellers say that, they go, I don't like your price. And I'm saying, I hear what you're saying. I see, I know where you're coming from. However, I just want to be real clear. It's not my price, okay? Unfortunately, I don't get to choose the price for your home. The market is the only thing that can really determine the price of your home that's going to actually let your home sell. So you must let, you must keep it about the market. Not what they want, not what you think, not what you feel. None of that matters. It only matters what the market is saying. So that's the way you need to speak. There's always talk in terms of what the market is saying, if you ever say, well, I think it's not going to sell for that, or I think that's too high, then they're going like, I don't care what you think. Right. Don't make it about what you think. Make it about the market. Because the market knows. And they cannot argue with the market. They can argue with you all day long, but they can't argue with the actual comparable sales in the market, because that's the market talking. And the market is the only thing that's right. Okay? Number three is you got to have stress. So I'm going to. Here's how you talk to them. Here's how you communicate with them. You got to communicate straight and sympathetic. Okay? You got to be straightforward with them, and you want to be sympathetic with them at the same time, which means I hear what you're saying. Unfortunately, that's just not going to happen in this market. So I've got to be straight and shoot straight with them. Be honest. But I. And I hear where you're coming from. You know, I hate. And I hated it, too, when I saw the comps. I'm like, ugh, I know this is not what you guys want, and I totally am with you on that. I would love to be able to get 1.2 million for this house, but unfortunately, the market is very clear based on the comps, that the house is only going to be worth about one. The house only going to sell for about $1 million. So I've got to be able to be straightforward, have a straightforward, honest conversation. Don't BS them. Don't say, well, we can try it and start giving them BS talk to try to get the listing. But at the same time, don't just run over them and go, like, I know. I know what you're thinking. I know what you want. It's just. Doesn't work that way. So you want to sell it, you got to price it here, be sympathetic. I hear where you're coming from. I would. I wish that we could. I wish there was any way that we could do it to 1.2 million. I mean, we could. I could list it at 1.2 million. The problem is it wouldn't solve for that. And over time, it would just make people think, what's wrong with that house? And make them make lower offers. So I hate it, too. I was surprised, too. In other words, you're letting them know. I just. Without sounding trite, I feel your pain. I get it. And I hate it, too. I wished you let them know you're on their side. So you're straightforward with them, but you're also sympathetic. Next thing is always focus on their motivation, and that is go back to what they want in a downturn in a market that's turning downward. And we don't know what's going to happen next, Right? You never know how far it's going to go, how low it's going to go, how fast it's going to go. We don't know any of that. So it all comes back to their motivation. If their motivation is tied to getting a certain price and the market's going down and their price is up here high, then they're probably not moving. Be their friend and say, look, here's the reality. It sounds to me like right now, you guys should stay put. If anything changes, let me know. Let's just stay in touch and we'll see how it goes. If their motivation is they have to move, then your job is to have that straightforward conversation, sympathize with their pain, and go, like, I get it, but we got to do the right thing here. Always focus on their motivation. If their motivation is they have to move, then you've got to be strong and straightforward and sympathetic. If their motivation is, well, we only want to move if we can get our price, then you got to be clear enough to go like, okay, I get it. It's just not going to happen right now. And have a straightforward, honest conversation with them and be their friend and keep communication lines open so that when their motivation does change, you're ready to help them. And then fifth is always, always take them back to the big picture. Always take them back to the big picture. What is the big picture? The big picture is it's what they really want in their life. Look, here's the reality. Let's face it, most people move because they want to move. That's the reality. Most people move because they want to move. This is something, this is going to help them get, move forward in their life. There's some reason that if we stay here, this is not what we want in our life. Okay? You know, you go like, well, now they're not moving because they want to move. They're moving because their job transfer requires it. No, the job transfer is just saying like, hey, if you want to keep this job, you got to move. And they're like, okay, do I want to keep the job? Yes, I want to keep the job, then I want to move, right? Go back to the big picture of what they really want. If they're going through a divorce, you have unfortunate situations where they're selling. What they want is they want to get past this pain in their life and move on with it. So I have to keep the perspective of, Well, I want 1.2 million for my house. I hear you, and I wish the market would allow it. However, what's going to happen if we tried at 1.2 million in six months from now? You guys are still having to deal with this house. Okay, well, let's just say they're going to have to sell it for 50,000 or whatever. We'll just say 50,000 less than they want. Okay, here's what I got to focus on. Two years from now, when you guys are sitting in your new home, aren't you going to be glad that you decided to go ahead and make the move? And every day you could enjoy this new home that you wanted instead of being stuck there, upset that you could not get a price that you wanted. Okay? And you can, I mean, you can use numbers. And they talk about, you know, reduce it to the ridiculous where you go, like, if you're going to lose $50,000 in four years, that comes out to only $1,000 a month and you can afford it. And it's just, is it worth it to be able to spend the next four years living in the house you want to live in and being in the city you want to be in, or being close to your kids or grandkids? Always go back to the big picture of what, what they want and think to yourself, how can I be the problem solver and help them see the reason that making this move is good for them now, if there's no way that it's good for them, like, it puts them upside down in their finances or, you know, it's not the move they really want to make, leave them alone. Right? But if they're. If the big picture is I can help them make this move happen, and even though it's. There's something about the price they don't like, or they're going to have to. They're not going to pocket as much money as they wanted to, or they're going to have to put more money in, out of their pocket, into the next house, all of that, I've got to look at what they really want and how can I help lead them to a decision that a month from now, six months from now, five years from now, they're going to be going like, thank you so much for helping us through that tough time when we hated what the market was doing, but we realized it was still the best move for us. If you can keep your head about you when all around you are losing theirs, you are going to win and you're going to help a lot of people win. So I hope this has been helpful for you and just kind of keeping that perspective as this market turns and whatever it's doing in your community or your market right now. Whenever you're watching this markets turn, they go up and they go down. And when it's going down, it requires you to be more prepared, to be stronger, to be better, or you're going to end up taking a lot of overpriced listings and sitting there and they're going to be mad and you're going to be mad and it's going to be miserable. So this is a time to be preparing for that. Hope this video has helped you prepare. If it has, make sure you give it a thumbs up. Post any comments or questions you have in the comment section below and subscribe to the channel if you haven't done that and I'll look forward to seeing you on the next video.

Hey there, it's Kevin. Did you like today's podcast?

If you did, be sure to subscribe to the next one and tell a friend about us. If you want more free training and.

Resources that are the best to help you get more Yeses with no BS, visit me@yesmasters.com until next time. Remember every day to embrace life, engage opportunity, and always expect yes.

Sam.