Hi, folks! Hope you're well!
Our Team members,Jeff Ardito and Kathleen Weaver-Zech, lost a listing the other day. It was for a small, three-unit apartment building in the Chicago Neighborhood of Jefferson Park.
The successful agent has made a living in the area by discounting his fees, signing for short listing terms, and taking the listing at whatever price the seller dictates. His own Expiration Rate, predictably, is high.
How did this agent get the signature on the Listing Agreement? Probably, by being agreeable - he likely figures he can now easily "work on his client's too-high price" now that he got the contract! Not a long-term way of forging a valued client relationship, I would say - but very effective at generating a signature short-term, and perhaps a few bucks in his pocket if the listing, by chance sells.
But why didn't Jeff and Kathy get the listing?
Most likely, they didn't crystallize MOTIVATION - the key to why the seller is selling in the first place!
Sure, they alluded to possible pricing levels. Comparative marketing strategies. Online promotion. And we do all of that, in our humble opinion, better than just about anyone here in Chicago.
But if you don't focus on exactly what the client's MOTIVATION is, and custom-tailor your presentation to specifically WHAT THAT MOTIVATION IS, you simply have a signature with a Listing Expiration Date, and a listing unlikely to sell.
In order to precisely determine MOTIVATION, an expert Listing Agent not only has to ask a lot of questions, but also listen CAREFULLY for the answers, as well as the INTENT BEHIND THE ANSWERS!
This particular family wanted to sell because their building was too big. They didn't want to deal with tenants anymore. The building lies only about 75 feet from the busy Kennedy Expressway, I-90 here in Chicago.
It sits landlocked with no garage, and the owner has to make separate arrangements with a neighbor to park his work truck off-street overnight. The schools are not good enough for their children. Etc, etc.
If you properly uncover motivation, and gear your discussion specifically how ONLY YOU, and YOUR TEAM, can address and SATISFY THE MOTIVATION, the clients will work with you, and will pay a premium to do so. If you don't uncover true motivation, you are just another real estate agent, hustling for the listing - so the seller might as well go with the cheapest, the one with the shortest commitment term, or the most agreeable!
"After all - all you folks are the same, right?" That's the dreaded chant even very successful agents here every once in a while. We top agents, however,blast through that homogeneity. And we do so by identifying exactly what the client is after when they list -
THEIR MOTIVATION!
Of course, sometimes a potential client's "Motivation" is to go with the cheapest. The easiest. Success is irrelevant here - control is all important to some.
These are the times you have to look at your OWN motivation - and perhaps walk away!
Your thoughts here?
DEAN & DEAN'S TEAM CHICAGO
(choir of angels singing in the background) Halleluja Brother! You have to do whats best for you client whether or not you get paid. Walking away is sometimes the best option for everyone! Who wants an expired listing on their record?? Way to go!
Motivated sellers will sell, motivated buyers will buy.
If they're not motivated..........."next"
THIS IS A GREAT POST. I AM A MEMBER OF THE MIKE FERRY ORGANIZATION AND HE TELLS ALL HIS ONE ON ONE COACHING STUDENTS THAT MOTIVATION IS THE NUMBER ONE KEY TO GETTING THE LISTING AND MAKING THE SALE.
THANKS FOR A GREAT POST.
DANIEL
Dean,
Of course your right on with your observation. However I suspect the sellers are what I like to call "commodity shoppers" you said it yourself "After all - all you folks are the same, right?".
They only want one thing the cheapest (perceived) price.
Not to worry I'll bet your phone starts ringing in about 45 days!
Take care,
David
Great post, agree 100%, maybe when they realize that they listed with a "yes person" they will list with your team members when the listing runs out or they run out of patience.
Listening and tailoring to a client is one thing but agreeing to what a client says without giving them the facts is foolish. Why list too high? thats just the first mistake, sellers come around eventually. Lip Service is the pits!!
Good luck let us know if the sellers call when the listing expires!
Cathy Elmore - Windermere, Ocean Shores,<WA
Dean, It is easy to walk away from an overpriced listing or unreasonable seller when you have lots going on. I think it is way more challenging to walk away when you are really in need of the extra business. I think we sometimes rationalize it and take an overpriced listing or a listing with terms that are not fair to us as Realtors, because we think that maybe we'll get lucky, or maybe we'll get that great buyer call.
Well said Dean! Wishing you continued success!
Geri Doyle Doyle & Devoe Iowa Realty