Agents can be a victim of their own success, when things are going well, they try and let the market do the talking, however they can neglect their vendors and keeping them in check. One of the most prevalent bad habits that can develop in agents when the market is really hot, is they don't constantly keep the vendor up to date, and assume they will take what ever is put forward.
Complacency develops because agents think that if this offer doesn't get over the line, there is a pool of other buyers out there that will snap it up. It's a dangerous and bad habit to form. Here are a list of good one liners to convert vendors and increase the urgency to accept the offer.
1. "The market is rejecting your price."
This is the one liner you should be going back to vendors after inspections and when you meet with vendors if there is a large gap between the vendors wants and what you think they will achieve. It's important you keep explaining that the market predicts the price, and explain to them why potential buyers are stuck at that figure.
2. "The potential buyer could buy this fantastic home for the same price."
This line should be used to put comparative homes and prices in perspective. Explain that there are other homes in the same price bracket that the potential buyer could snap up soon as well. They need to know their house is not the only house on the market, because when they believe they hold that power, their expectations become unrealistic. Whilst they may counteract your argument and explain why their home is better, explain that they could lose their one true lead, and give them time frames to explain how quickly it could go.
3. "This may not be the offer you want, but it is the offer you have got."
Sometimes the most important thing you can do and essentially your responsibility is to be straight forward. Explain to vendors after you have run a fully encompassed campaign that 'This is the offer you have' plain and simple. They either can reject or accept it. Work backwards and explain how the price arrived at this level compared to where they started. You should have been managing expectations and preparing your vendor for a modest result, so anything above that should be a bonus.
4. "Put the dollars in one hand, and the remaining time you have left in the other, what is more important?"
This is a great line when trying to give vendors perspective, especially when it gets to amounts that are incredibly small. Explain to the vendor the figure in more relative terms. Ask the vendor what the extra $20,000 would do over a 20 year period, explain that it is $19 a week - and that $19 a week could be the difference between selling their home and moving on, or holding on and dragging out the negotiation. Get philosophical and ask them how much such a small amount of money will matter in the large scheme of things.
These lines are what should get your vendor over the line, especially when things get tight and the amount is very small. If you are a large way off, then there is a much more likely chance that there has been a breakdown in communication about what the vendor should be expecting and what is realistic. Keep your vendor constantly updated and aware of the market movements and have their expectations in check.
About the Author:
Todd Schulberg handles all things marketing for Homely.com.au - Living and breathing property, Todd has a keen interest in the movements in the market and howagents can utilise new tools and technology in order to be more connected. Using all things social, Todd suggests different ways that agents can engage and think outside the square with their marketing approach.