What is the number 1 complaint in real estate about real estate agents?
Lack of communication
“He persuaded us to list with him, walked out the door with the signed contract, and we didn’t hear from him again until the listing expired two weeks later.” Then he called and tried to persuade us to lower the price and extend the contract.”
If you’re feeling guilty right now, here’s a two-part permanent solution to dramatically enhance your connection with listing clients while also selling more homes and making more money.
Part 1. The Market Watch System
Set up an auto-notification system for each listing client to be notified anytime a new listing, a price modification, a conditional sale, a firm sale, or another event occurs. Ascertain that they have access to ALL of the information on each listing, including all of the images.
Set up a broad set of criteria if you’re in a big market, so there are at least 50-100 current listings within a certain price range and geographic location. At least 2-3 times every week, you should send relevant emails to your clients.
The primary goal is to offer a broad overview of the market. When a new rival joins the market, decreases their pricing, or sells effectively, you must notify your clients.
More so than home design, size, or age, the most important consideration is the price. If you need to add additional adjacent neighbourhoods to get your numbers up to 50-100 current listings, go ahead and do so, even if the home designs are drastically different.
Use your best judgment when deciding on a pricing range. On a $500,000 house, for example, I may start with a range of $450,000-$600,000. Then, depending on the findings, I’d fine-tune. For example, if there were a slew of clearly superior houses priced between $550,000 and $575,000, I could lower my upper limit to $575,000 rather than $600,000.
On the other hand, if the inventory immediately over $450,000 was complete rubbish (in comparison), I might raise the lower limit. We don’t want our customers to believe we’re comparing their home to trash! On the contrary, we want the subject property to outperform the bulk of the comparables.
“We’re priced at $500,000, but it’s crucial to understand what a customer may get for a little more.” If purchasers can receive much more for a 10% increase in price, that’s crucial information for us to know.”
Consider what information you want your customer to view so that they may make informed judgments. (If a price modification is required, for example, it should be evident.)
Providing accurate information to your clients helps them to make informed judgments.
Here’s the most important piece of advice for determining Market Watch criteria: Take some time to consider the results and how they could affect your clients. Is this the most up-to-date and useful information available to them? Like any other talent, the more you practice this strategy, the better you will get at it. It takes practice to create the exact criteria, and you’ll utilize distinct reasoning set for each characteristic.
Part 2: Client Report for the Week
Send an email report to each of your listing clients based on the activities recorded in their ‘Market Watch’ from the previous week EVERY Monday AM (put this up as a recurrent Appointment with Yourself).
Here’s a condensed version of what you could tell your clients:
a) New Listings — “In the last week, there have been two new listings. I’m not too concerned about New Listing #1 because it’s just slightly less expensive than yours, and I believe it’s inferior for these reasons…
New Listing #2, on the other hand, gives me concern. It’s just $10,000 more expensive than your house, plus it’s newer, bigger, and has all of these great amenities… I’ll be watching this one closely, but I wouldn’t be shocked if it didn’t sell soon.”
b) Price Reduction — “This listing’s price was reduced by $20K, making it significantly more competitive.” I’ll be keeping an eye on this one as well.”
c) Sold Listings — “These listings sold, and here are the reasons why, in my view…”
(Don’t be concerned.) At least 99 percent of the time, there is a simple explanation. It is larger. It’s more recent. It costs less. It has these qualities that yours lacks, and so on. 1% of the time, you’ll need to dig a little further and come up with a more imaginative solution.)
d) End with a straightforward summary (what you truly believe). As an example, “Based on this information and the present level of engagement, I’m concerned that we may have overestimated our list price.” I’m not recommending that we make a price change right away, but if we don’t see any significant action by the end of the week, it’s something we should talk about.”
Why are you bothering to write this report every week?
The first element of our two-part solution ensures that your clients are informed about each new listing, price modification, and sale. However, they have not yet got your expert assessment of what each new development may imply for them. Your customers will feel better educated and cared for as a result of your efforts (by you). After all, they’ve hired a professional to keep an eye on the market for them.
Simultaneously, you’re pushing yourself to keep a careful eye on what’s going on and what advice you should be offering your clients. This is a sufficient justification in and of itself!
Implementing this two-part plan will result in increased sales, happy clients, and referrals!