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010 - Strategies For When Your Seller Is Rejecting A Strong Offer · The Loan Daddy Podcast

• 0:00
  SPEAKER_00: What would stick with you longer?
• 0:02
  SPEAKER_00: Selling your price for$50,000 over the asking price or selling it for$50,000 below the asking price?
• 0:10
  SPEAKER_00: Welcome to the Lone Daddy Podcast episode 10.
• 0:14
  SPEAKER_00: So I came across this post recently that reads Nightmare Seller rejected a strong offer and ended up losing$47,000.
• 0:23
  SPEAKER_00: You've probably been in a situation like this before, where you price a property well, you garner attraction for that property.
• 0:34
  SPEAKER_00: You have multiple showings, you have buyers coming in, making offers, eventually a strong offer comes in, and then your seller says, I don't love it.
• 0:42
  SPEAKER_00: I don't like it.
• 0:43
  SPEAKER_00: Let's try to find someone else.
• 0:45
  SPEAKER_00: Maybe we can get a higher price.
• 0:46
  SPEAKER_00: And what do you do?
• 0:48
  SPEAKER_00: What do you do in situations like that?
• 0:49
  SPEAKER_00: So that that's exactly what happened in this post here, where this real estate agent thought that they listed the property at a great price and had a serious buyer.
• 0:59
  SPEAKER_00: And because the seller rejected that offer and counter-offered for a higher price, this buyer ended up walking away.
• 1:08
  SPEAKER_00: As a result of that, the property just sat for another two months.
• 1:13
  SPEAKER_00: Where traffic for the open house has started to slow down, fewer offers were coming in.
• 1:18
  SPEAKER_00: The end of this story is the seller ended up accepting an offer that was$47,000 less than the original price.
• 1:29
  SPEAKER_00: And at the closing, the seller looked at the agent and said, I probably should have listened to you.
• 1:35
  SPEAKER_00: So I think this is such an important post because I talk to agents all the time who are running into situations like this, where they have an unreasonable seller who thinks that their property is worth more, or better yet, thinks that they know the market better than the agent.
• 1:51
  SPEAKER_00: And more often than not, a lot more often than not, they're not right.
• 1:55
  SPEAKER_00: The agents know what they should be pricing this property at.
• 1:59
  SPEAKER_00: They understand the market.
• 2:00
  SPEAKER_00: I thought about three things that an agent can do in a situation like this.
• 2:04
  SPEAKER_00: And I think these three things will help agents in situations where you have a seller who is difficult and pushing back.
• 2:16
  SPEAKER_00: Number one, always be prepared that your seller may reject a strong offer.
• 2:21
  SPEAKER_00: How will you respond to that?
• 2:23
  SPEAKER_00: Do you have the data and facts to counter the seller's feelings and emotions?
• 2:29
  SPEAKER_00: The top agents don't try to convince sellers that they're wrong.
• 2:32
  SPEAKER_00: They simply try to get them to a place where they feel comfortable with their decision months later.
• 2:38
  SPEAKER_00: Good questions that you can ask in situations like this.
• 2:42
  SPEAKER_00: Help me understand what feels off about this offer.
• 2:45
  SPEAKER_00: Is it the price?
• 2:47
  SPEAKER_00: Is it something else that you're not comfortable with?
• 2:50
  SPEAKER_00: It's so important to nail down exactly what the objection is.
• 2:55
  SPEAKER_00: Is it fear of leaving money on the table?
• 2:57
  SPEAKER_00: Is it the emotional connection to the home that they have?
• 3:01
  SPEAKER_00: What is it?
• 3:02
  SPEAKER_00: Along these same lines, it's so important to understand the difference between the list price and the market price.
• 3:09
  SPEAKER_00: The list price is a marketing strategy.
• 3:12
  SPEAKER_00: The market price is the true value of that property.
• 3:16
  SPEAKER_00: Ultimately, what we're talking about here is understanding the difference between possibilities and probabilities.
• 3:22
  SPEAKER_00: A seller may say, uh, maybe someone will come with a higher offer, like the person did in this post here.
• 3:30
  SPEAKER_00: And that's certainly possible, but an agent's job is to help a seller weigh what's possible versus what's probable in this market.
• 3:39
  SPEAKER_00: And this is where you dig into the data.
• 3:42
  SPEAKER_00: Days on market, inventory, comparable sales, open house traffic, etc.
• 3:48
  SPEAKER_00: The numbers and the data don't lie.
• 3:51
  SPEAKER_00: Number two, broker open houses.
• 3:53
  SPEAKER_00: I think broker open houses are fantastic if done correctly.
• 3:58
  SPEAKER_00: And I've done a ton of these.
• 3:59
  SPEAKER_00: There's a right way to do them and there's a wrong way to do them.
• 4:02
  SPEAKER_00: And I think when you're doing a broker open house, there are two main things or two main reasons to do them.
• 4:08
  SPEAKER_00: Number one, it brings your property top of mind in the minds of agents.
• 4:15
  SPEAKER_00: If you're doing it correctly, you can get everyone to show up at the exact same time and talk about that listing.
• 4:23
  SPEAKER_00: Now you have hypothetically 40 different agents who know about your property, who are then gonna go out and talk to their potential buyers about your listing.
• 4:34
  SPEAKER_00: It gives them something to talk about.
• 4:37
  SPEAKER_00: And maybe your listing has a unique feature that one of their buyers really wants and really likes.
• 4:44
  SPEAKER_00: So now it's going to gain more open house traffic for your listing, which your seller is really going to like.
• 4:52
  SPEAKER_00: And the second reason why I think these broke these broker open houses are so important is because it gives you an opportunity to take a poll from the real estate agent community and see what they think about the price of this property.
• 5:07
  SPEAKER_00: And what I've seen in the past is some agents will record this.
• 5:12
  SPEAKER_00: They'll record other agents saying what they think they would list the property at.
• 5:17
  SPEAKER_00: So I did an open house at this point, it was probably a year ago, where an agent did that exact thing.
• 5:24
  SPEAKER_00: And the overall consensus amongst the 22 agents that were at that open house was that the property was overpriced by about 20%.
• 5:35
  SPEAKER_00: And we had this recorded on film.
• 5:37
  SPEAKER_00: So this listing agent then brought this data to their seller, showed them the compilation of answers from these different agents, and what did the seller do?
• 5:48
  SPEAKER_00: The seller dropped the price by 20%.
• 5:51
  SPEAKER_00: And within two weeks, they got an offer, an accepted offer, on that property.
• 5:57
  SPEAKER_00: So that's the power of a broker open house, if done correctly.
• 6:00
  SPEAKER_00: And number three, loss aversion.
• 6:03
  SPEAKER_00: Most people are motivated by what they can lose.
• 6:07
  SPEAKER_00: And you can paint that picture, right?
• 6:09
  SPEAKER_00: You could say something like, Mr.
• 6:11
  SPEAKER_00: or Mrs.
• 6:11
  SPEAKER_00: Seller, what would stick with you longer?
• 6:14
  SPEAKER_00: Selling your price for$50,000 over the asking price or selling it for$50,000 below the asking price.
• 6:22
  SPEAKER_00: Or you could say something like, if we reject this offer, how would you feel if in six weeks from now we don't receive another offer as strong as this one?
• 6:30
  SPEAKER_00: How would that make you feel?
• 6:31
  SPEAKER_00: So I think these are all great tips and strong points that I've learned from some of the top agents in this industry of what they do in situations where you have this difficult seller who, again, sometimes it is about price, where they really just want to get the top dollar and stretch every nickel and dime to sell that place.
• 6:56
  SPEAKER_00: But oftentimes it's also about just that emotional connection that they have with that property.
• 7:00
  SPEAKER_00: So having the tools in your toolbox and being able to respond confidently with the data, doing broker open houses, talking about loss aversion, these are things that you can do that will help you in situations like this and hopefully help sell your listings faster.
• 7:19
  SPEAKER_00: So that is all I have for today.
• 7:21
  SPEAKER_00: Thank you so much for joining, and I will see you on the next episode.
• 7:24
  SPEAKER_00: Take care.
• 7:25
  SPEAKER_00: Bye.