← Your Daily Real Estate Podcast with Tristan Ahumada
Your Daily Real Estate Podcast with Tristan Ahumada
Episode 776: Stop Arguing Price. Start Changing Minds Instead
00:11:25
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You're not going to win a pricing argument with a seller. They've already zillowed it or chatgpted. They've already talked to their family member who got $50,000 over asking. Most of the time, they've already decided what their house is worth. And you walking in with comps, that feels like an attack on their judgment. So stop trying to win. Take them on a journey instead. The agents who nail pricing don't have better scripts. They have better frameworks, ways to let the sellers discover the truth themselves instead of being told. Because a seller who sees it will price it right. A seller who's told will resent it, and they'll resent you for it. I'm going to give you four ways to shift the conversation from opinion to evidence and two strategies for when they ignore you and you still want to list it anyway. You're gonna list it high because sometimes the overpriced listing isn't a loss. It's a lead machine if you know how to use it. I'm Tristan. This is your daily real estate. It's a podcast, it's a show. Goes on for 5, 10 minutes every single day. I've run lab coat agents now for 12 years, been an agent for 22 years. Just opened up a brand new brokerage. We're going national, baby. National. Anyway, this is to help you out because I've gone through this and it's not always the easiest thing to talk to a seller, determine pricing, and then you have to decide, do I want to take the listing that's overpriced if they're not listening to me. So the right price conversation. Let's go over that first, Number one, the neighborhood reality tour. Now, I've only done this a handful of times because sometimes the sellers don't want to do it, but I still try it. Here it is. Let me read this to you. And I have this on an outline. If you need this, message me on Instagram. I'm a little slow, so it may take me a little bit to get to you. Walk them through what's actually sold in the last 90 days. Not just listed sold. Pull up the photos together. You know, kind of like what we normally do on your iPad, on your computer, or maybe you've printed them out, let them see the condition, the upgrades, the lot size. Now, sometimes this takes a longer time, but it's important to set this framework. When they see that the house with the new kitchen sold for 425 and theirs has original 1990s oak or whatever. It has the conversation shifts from opinion to evidence. Right? This is key. You could also. This is the one. You could also tour them around the two to three homes to show them in person what's going on. And that's. Those are the properties that are just listed. Obviously the sold ones you can't get in. But when you're looking at the competition now, throw them in the car or say, hey, follow me, let's go take a look at some homes. Mr. And Mrs. Seller, listen, I'm going to go to your property, I'm going to go to your home, we're going to talk and I also want to show you some homes after we're done, but not to sell them to you, to show you your competition. Because my goal is to get you where you want to get to, but more importantly, to sell your home for what it's actually worth. And I know you want the most money possible. So let's go out there and see our competition. That. That right there works. Number two, the days on market math. Show them what happens to homes that sit like, you know, markets that are tougher, especially going on six months now, which used to be the national average, right. After 21 days, buyers start asking, hey, well, wait a second, what's wrong with this property? After 45 days now you're going to go chasing the market down where you should have priced it, right? But sometimes it's out of our hands. I know the reality, right? So price reductions become public record. It's like a stamp of ugliness or what's wrong? Wait a second. This property has been on the market for 50 days. There's something wrong with it, right? I thought the same thing. That's how I ended up here, right? And that's how I negotiated down on this property that I'm living in now. It's important because the first two weeks are when you get the most eyeballs. Definitely. And you got to take advantage of that. Are you priced? Right? But they have to see it. So they have to see the data. Right? But you're taking them on a journey. Here's the thing we forget to do as agents. You're also going to show these properties that sold. But where did they start? How long ago was it? How many price reductions did they have to do? You know that property that finally sold, Mrs. Seller, finally sold after six months and they sold for so low. Well, look at the journey. They started here. A month in, they lowered the price. Three months later, they lowered the price some more. Five months later, they finally lowered the price even lower. And what did they end up with? They even ended up with a lower price. I don't want you to go through that. That's. That's painful. And now you're taking them on the journey. Number three, the net sheet reality check. Like, if you're not bringing in a net sheet, you're not doing enough. Break it down. Break it down and show them you could do it however you want. Here's a net sheet for a price at what I'm asking. Here's a net sheet for what Zillow's saying. Here's the net sheet for what Redfin is saying. Right? There you go. Number four, the buyer perspective. Flip. Ask them, if you were buying today, would you pay this price for this house when you could get that house down the street? And if you've seen that property, you can use this at the end, right? Which is like, hey, okay, Joe, Joanne, now we've seen three properties. That's your competition. If we're going to price your home right at this price, which one would you buy? If you're coming in, which one would you buy? And just shut up and listen. Right crazy. After you've shown them the property, not before. So now that's if they're reasonable. If they're not. And look, I know there, there are unreasonable sellers out there every day. I've dealt with quite a few. And some are like, damn it, I wish I didn't. But I did. All right, if they're going to insist on listing their home for like 5% over market, 3% over market, what the market wants for it, then here are two steps, if you can. All right, Number one, which is number five, the coming soon buyer magnet. If you're able to do this, launch it as a marketing asset. New listings in. So here's how it looks, right? And we've done this for. So we also have a lead generation company off of Meta. Right. Trenton runs it and he does a magnificent job for those agents that can do coming soon. Those ads absolutely do. Amazing. They kill it in all markets, too. So here's what, here's what it looks like. New listing in neighborhood. And whatever neighborhood that is generates calls, even buyers who say that's too expensive, it's okay, because the coming soon is the hook, Right? Right. The new listing thing is the key. People want what's new. People want what they can't have. So if it's a pocket, if it's coming soon, they're like, well, I want to know about it. How do I Get on this list. So start creating this buyer magnet. Whether it's through your newsletter, meta ads, Google your organic, social, wherever it is, whatever your broker allows you to do doesn't even matter the price at this point. They just want to see what's behind curtain number one. And that's what you're going to do. So buyer magnet and number six, number two for this one overpriced one, the 14 day agreement. This doesn't always work. I would say works, not even 50% of the time, but when it works, I'm happy. Get them to commit in writing, will try your price for 14 days. Right. And this is how I get there. At this point, they know the property. The average days on market for their property in their area is going to BE let's say 45 days, maybe 60 days. They know the average. So if we've already taken them through that journey of price reduction, price reduction, price reduction, and it finally sold for even less or maybe a little more. But after 5 price reductions then this becomes a lot more impactful. So this is what you say. You can change the days depending on what you think is right for you. We'll try your price for 14 days. Well, we'll try the price you want, Joe. We're going to try the price for 14 days. If we don't have any serious activity, then we can revisit this together. And this is why this protects the relationship. You right, because you're going to have communication through this whole process gives you a built in price reduction because you're saying, hey now after do me a favor John, let's revisit this. But let's. And this is where only sometimes they sign it. 14 days in, 21 days in, let's have this ready to go so we don't slow down. Because the last thing I want to do, Joe, is slow down this process for you because I want to get you where you want to go. But if there has been no serious activity, let's do a price reduction of the price that I think this thing would sell for. And I think 14 days in, we don't lose too much. You still have that window where people are still going to come and see it at the right price if it doesn't work out at your price. So 14 days in, we let's go instead of 450, right. Let's bring it down to 425 and sign it. So we're ready to go. Now that doesn't always work, but at least you, you did it. You tried it, they know you're going to come back. It'll be like, hey, you know what, Tristan? Let's revisit that in 14 days then. All right, Say, great, let's do that. But most sellers, they come around faster if there's been no activity and. And you are communicating with them what's actually going on. Because sometimes you just show up 14 days later and you're like, see, I told you. But you haven't communicated with them everything that you're doing, like, what are you doing through this process? This is also why I like the company Rays R A Y S E. This is not brought to you by them, but I love them because they kind of show exactly what you do to sellers and to buyers. So they're like, oh, that's all the work that you're doing. This is great. Thank you. Anyway, that's the process. If you need this, message me on Instagram. If not, please share this with somebody you think may need this. Review this comment below. Give me some ideas. What am I missing? What do you do that we don't do? I'm always learning, too. Have an awesome day.