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Expired Listings Start at the Listing Appointment · Success Is Not Convenient

• 0:00
  SPEAKER_00: Hello, everybody.
• 0:00
  SPEAKER_00: Bernie Gallerani bringing an episode of Success is not convenient.
• 0:05
  SPEAKER_00: I love this title, by the way, because so many people I get to train and coach, they always say, Well, it's lower, everything's so much harder than I thought it was going to be.
• 0:12
  SPEAKER_00: Everything's harder than we think it's going to be, right?
• 0:15
  SPEAKER_00: You ever get like one of those little, you know, things that you put together at your house, whatever it might be, and you're like, oh, this thing took me forever.
• 0:20
  SPEAKER_00: The instructions make it sound.
• 0:22
  SPEAKER_00: Listen, if there's an instructional man instruction manual here, it's going to be hard to put this together.
• 0:27
  SPEAKER_00: So we just have to embrace the fact that this is going to be harder than we expect.
• 0:30
  SPEAKER_00: That's why success is not convenient.
• 0:32
  SPEAKER_00: But it is very worth it if you pay attention to the things that you're doing, you're challenging yourself, you're working towards all sorts of different things.
• 0:40
  SPEAKER_00: You will get there.
• 0:40
  SPEAKER_00: It just takes a little bit more time than expected.
• 0:43
  SPEAKER_00: Our topic today is something I'm always dear to my heart, and that because I called so many expireds as my real estate career.
• 0:50
  SPEAKER_00: Um, so the title of our talk today is expired listing was created months earlier than it expired.
• 0:58
  SPEAKER_00: Let me let me say this to you again.
• 0:59
  SPEAKER_00: You list the home, you put it on the market, you do whatever it is you do, and then the home expires.
• 1:05
  SPEAKER_00: It was gonna expire anyway.
• 1:06
  SPEAKER_00: And we're gonna talk about why it was going to expire.
• 1:09
  SPEAKER_00: And this is all behavior, um, questions, motivation, uh skill.
• 1:15
  SPEAKER_00: There's gonna be a lot of things that are gonna be corrected here.
• 1:18
  SPEAKER_00: Hopefully, we can talk about those.
• 1:19
  SPEAKER_00: Uh, so today I want to talk about expired listings if we can.
• 1:21
  SPEAKER_00: So, but but what I want us to look at, I wanted to look at this thing completely differently because when a listing expires, everybody looks at the expiration date and thinks that's when the listing failed, and that's not when the listing failed when it expired.
• 1:35
  SPEAKER_00: I don't believe that at all.
• 1:36
  SPEAKER_00: I believe that most expired listings were created weeks or sometimes months before the listing actually expired.
• 1:45
  SPEAKER_00: The expiration date is simply when everybody finally had to admit that there was a problem here.
• 1:50
  SPEAKER_00: That's all it was.
• 1:51
  SPEAKER_00: We look at it and the expired goal that expired.
• 1:53
  SPEAKER_00: Well, it was inevitable it was going to happen based on the behavior of how we approached it.
• 1:58
  SPEAKER_00: And here's what's the interesting thing about today's market and what's going on in today's market.
• 2:02
  SPEAKER_00: A home taking 45 to 60, even 65 days to sell is not necessarily an uh is unusual, right?
• 2:09
  SPEAKER_00: Having a home sit on the market for any length of time is pretty common.
• 2:13
  SPEAKER_00: Now, I have an opinion or approach on this, and I'll I'll tap into this here in a minute.
• 2:17
  SPEAKER_00: But 45, 60, 65 days on the market is absolutely ridiculous.
• 2:21
  SPEAKER_00: If it takes you that long to sell a home, that's fine.
• 2:23
  SPEAKER_00: Just sell the darn home.
• 2:25
  SPEAKER_00: But you know, it doesn't need to take that long.
• 2:26
  SPEAKER_00: And we're gonna we and we've talked in other videos on uh why we're willing to accept that it takes that long.
• 2:32
  SPEAKER_00: I I'm not a believer in that what whatsoever.
• 2:34
  SPEAKER_00: I think um, and then I'm not even saying I don't, my my company has those.
• 2:37
  SPEAKER_00: I don't have them.
• 2:38
  SPEAKER_00: I would never have a listings 45, 65 days on the market.
• 2:41
  SPEAKER_00: I just get rid of the listing because something's not going right.
• 2:44
  SPEAKER_00: But some of my agents, a lot of my agents will have homes on the market that that amount of time.
• 2:48
  SPEAKER_00: And I try to coach that out of them, but you know, you can lead a horse to water, but you can't make them drink, right?
• 2:52
  SPEAKER_00: But that doesn't mean that the agent should need 60 days to get it figured out, right?
• 2:56
  SPEAKER_00: You don't need 60 days to figure out if the house is positioned correctly to sell.
• 3:00
  SPEAKER_00: Some agents do need that.
• 3:01
  SPEAKER_00: Some agents don't do that.
• 3:03
  SPEAKER_00: Some agents actually know it's not positioned to sell, but they just continue to keep behaving the way they do.
• 3:07
  SPEAKER_00: And see, that's really the difference.
• 3:09
  SPEAKER_00: You don't necessarily have to sell the house in 21 days.
• 3:12
  SPEAKER_00: I do.
• 3:12
  SPEAKER_00: That's my goal, and and I will communicate with the seller to make that happen, but you don't have to.
• 3:18
  SPEAKER_00: But by day 21, you should have always have already learned what needs to be done in order to get that home sold quicker than the next time around, the second half of that 21, right?
• 3:28
  SPEAKER_00: So you get it sold within 40, 42, 43, 45 days.
• 3:32
  SPEAKER_00: The problem may have uh started before the sign even went in the yard.
• 3:36
  SPEAKER_00: And let me explain what that means.
• 3:37
  SPEAKER_00: Sometimes expired listing was actually created at the listing appointment.
• 3:42
  SPEAKER_00: I'm gonna say it again.
• 3:43
  SPEAKER_00: We're sitting down talking to the seller.
• 3:45
  SPEAKER_00: We created the problem when we signed the listing agreement.
• 3:49
  SPEAKER_00: See, here's what happens the seller says, I want$700,000 for the home.
• 3:53
  SPEAKER_00: And the comparables are telling us that$650,000 is more in line.
• 3:59
  SPEAKER_00: The competition is telling you$650,000.
• 4:01
  SPEAKER_00: Your experience is actually telling you$650, but you're sitting there thinking for a second, well, if I don't agree with them, another agent's gonna come in there and will agree with them and take the listing.
• 4:12
  SPEAKER_00: If that's you, nod your head right now, because that is very common, right?
• 4:15
  SPEAKER_00: I would rather take the listing and then have a chance to sell it versus give it to somebody else.
• 4:19
  SPEAKER_00: So what you do is you say, Well, let's try it.
• 4:21
  SPEAKER_00: You say that to the seller, I try it all along.
• 4:23
  SPEAKER_00: You know it's probably not gonna sell, but you're so eager to take the listing that you take the listing.
• 4:28
  SPEAKER_00: Congratulations, is you got the listing, so that's the plus.
• 4:31
  SPEAKER_00: But did you really win?
• 4:33
  SPEAKER_00: Did you really put yourself in a position where you can help the seller?
• 4:37
  SPEAKER_00: Or did you put yourself in a position where your ego says, Yay, I got a listing?
• 4:42
  SPEAKER_00: Well, as I've said to my agents before, and I'll say this to you, you didn't really take a listing, you actually took on the responsibility of a massive liability.
• 4:50
  SPEAKER_00: See, when you walked into that home, you were really hoping to get that home priced at a price that would cause it to sell.
• 4:55
  SPEAKER_00: I know everybody wants to do that.
• 4:57
  SPEAKER_00: Maybe you don't know the market well enough, maybe you don't have the skill, maybe you should work on the skill, but I can tell you this you walk in wanting the listing and you walk out with an overpriced opportunity, and now you have a massive liability because you didn't clarify with them how motivated they are, you didn't clarify them what the price uh adjustment time frame would be, you didn't give them any indication of what to expect.
• 5:18
  SPEAKER_00: You're just hoping and praying that someone will buy the house.
• 5:21
  SPEAKER_00: And that, my friends, is a liability because sometimes what you actually won was just six months of absolute frustration dealing with them.
• 5:29
  SPEAKER_00: And that's the difference between taking a listing and taking a listing that has a reasonable chance of even selling.
• 5:34
  SPEAKER_00: I want to say this to you guys so you understand this.
• 5:37
  SPEAKER_00: Taking a listing is just taking a listing, but taking a listing that's a sellable listing is a completely different thing.
• 5:44
  SPEAKER_00: And so you have to determine what has to happen in order for me to have a sellable listing.
• 5:49
  SPEAKER_00: See, a lot of agents are so focused on getting the seller's signature that they don't even think enough about what happens after they get it.
• 5:58
  SPEAKER_00: They walk out of there, I always say, doing the excitement dance, doing the little, like, hey, look what I got.
• 6:02
  SPEAKER_00: They got a big smile on their face, they put that selling that listing packet in their car, they go back to their office, they're like, Yeah, I just took a listing.
• 6:10
  SPEAKER_00: You have a liability.
• 6:11
  SPEAKER_00: Every time I take a listing, I'm like, uh-oh, I now have a job.
• 6:14
  SPEAKER_00: You've just been hired to perform.
• 6:16
  SPEAKER_00: I want you to hear me for a second.
• 6:18
  SPEAKER_00: You have a job, they're paying you X amount of money for a regular job.
• 6:21
  SPEAKER_00: You go to work every single day, and you have to perform in that seat.
• 6:25
  SPEAKER_00: And if you don't perform in that seat, what are they gonna do?
• 6:28
  SPEAKER_00: They're gonna fire you.
• 6:30
  SPEAKER_00: That's what an expired listing is.
• 6:32
  SPEAKER_00: You just got fired because you didn't cause the ability to get that home sold.
• 6:36
  SPEAKER_00: You didn't do the things you were supposed to be doing, and you basically got fired.
• 6:40
  SPEAKER_00: Agents get fired all the time with expired listings, but you know what they do?
• 6:44
  SPEAKER_00: They blame the market.
• 6:45
  SPEAKER_00: They blame the interest rates, they blame the government, they blame the broker, they blame all sorts of people.
• 6:50
  SPEAKER_00: But the reality was you're the one that took the listing.
• 6:53
  SPEAKER_00: You're the one that took the root listing in this market where you know it's going to be a little bit different, challenge, and yet you just took a signature on a contract, didn't pay a lot of attention to what was going to cause it to sell.
• 7:04
  SPEAKER_00: You're like, well, hey, I looked at the comps and the comparables.
• 7:06
  SPEAKER_00: Well, so what?
• 7:07
  SPEAKER_00: Comps and comparables are old.
• 7:08
  SPEAKER_00: Anything that you see that's old is something that's sold.
• 7:11
  SPEAKER_00: And it might have been a month old, two months old, three months old.
• 7:13
  SPEAKER_00: The market changes too much for us just to rely on that.
• 7:16
  SPEAKER_00: So I want you guys to all understand when you walk out of that house, you now have a liability.
• 7:22
  SPEAKER_00: You have just taken on a responsibility, you've raised your hand, you said, I'll take that position, I'll work really hard, and I'm gonna do the job so I can make you guys happy.
• 7:30
  SPEAKER_00: And yet you didn't.
• 7:31
  SPEAKER_00: See, sellers have their price, but buyers have theirs too.
• 7:34
  SPEAKER_00: And that's where the difference is.
• 7:35
  SPEAKER_00: Sellers have an equation of a thought of what they want to have.
• 7:38
  SPEAKER_00: The buyer's actually the ultimate decision maker.
• 7:41
  SPEAKER_00: Write this one down.
• 7:42
  SPEAKER_00: Every time your seller has a price higher than what the market or the buyers are willing to pay, they are the highest bidder on their own house.
• 7:51
  SPEAKER_00: Congratulations, Mr.
• 7:52
  SPEAKER_00: and Mrs.
• 7:52
  SPEAKER_00: Seller.
• 7:53
  SPEAKER_00: You're the highest bidder on your own house.
• 7:55
  SPEAKER_00: Nobody else wants it for what you want it for, so you win.
• 7:57
  SPEAKER_00: But you're never gonna move because the buyers aren't willing to pay that price, so now you're stuck with the home.
• 8:02
  SPEAKER_00: See, sellers are going to have an option about what their home is worth.
• 8:06
  SPEAKER_00: They're gonna have an option on that price.
• 8:08
  SPEAKER_00: It's their house.
• 8:09
  SPEAKER_00: They can pick any price they want, but we don't always have to agree.
• 8:13
  SPEAKER_00: Of course they're the owners.
• 8:14
  SPEAKER_00: Of course they're gonna want to have a certain price.
• 8:16
  SPEAKER_00: They know how much they paid for the home.
• 8:18
  SPEAKER_00: They know what they've put into the property, they know what they spent on the kitchen to remodel it.
• 8:24
  SPEAKER_00: They remember replacing the roof and what that cost was.
• 8:26
  SPEAKER_00: They know what the neighbor's house sold for across the street or down the road.
• 8:30
  SPEAKER_00: And emotionally, they have had 20 years or so or even more of memories tied up in this particular house.
• 8:37
  SPEAKER_00: And all of that to the seller has value to the seller.
• 8:41
  SPEAKER_00: But the seller doesn't want the home anymore.
• 8:43
  SPEAKER_00: The buyer wants the home.
• 8:44
  SPEAKER_00: Our job is to get the buyer to want the home.
• 8:47
  SPEAKER_00: And if the seller is so tied up on their new kitchen they remodeled 10 years ago, which by the way, it's now outdated, if they're so hung up on that year, that roof that they put on seven years ago, which by the way, it's halfway through its life, if they're really excited because they put new air conditioning units on it five years ago, they're still old.
• 9:02
  SPEAKER_00: If they remodeled their bathroom three years ago, it doesn't mean that that bathroom is in line with what people like today.
• 9:09
  SPEAKER_00: Because everybody has a personal opinion about how they want to live their life.
• 9:12
  SPEAKER_00: Just understand all of that, that what a buyer wants and what a seller wants are two different things.
• 9:16
  SPEAKER_00: And if your buyers are not making an offer on the property, then we've got a big problem.
• 9:21
  SPEAKER_00: None of these things require a buyer to buy the home.
• 9:24
  SPEAKER_00: All these updates, all these remodels, these paints doesn't mean that it's more attractive to the buyers looking today.
• 9:30
  SPEAKER_00: The buyer looks at the house completely differently than the seller.
• 9:33
  SPEAKER_00: The buyer says, What else can I buy for the same money?
• 9:37
  SPEAKER_00: They're looking, they have competition.
• 9:38
  SPEAKER_00: See, agents, here's what I want to say.
• 9:40
  SPEAKER_00: You put your house on the market, you've got competition everywhere.
• 9:43
  SPEAKER_00: And there are not enough buyers to absorb all of the inventory out there.
• 9:48
  SPEAKER_00: Buyer wants to know what else can I buy for the same money?
• 9:50
  SPEAKER_00: That's it.
• 9:50
  SPEAKER_00: See, in this market where buyers have more choices, the question becomes even more important.
• 9:56
  SPEAKER_00: In Nashville, we've recently been in the market with significantly more sellers than buyers right now.
• 10:02
  SPEAKER_00: So we have more sellers on the market than we have buyers.
• 10:05
  SPEAKER_00: That means that the buyers can be selective.
• 10:08
  SPEAKER_00: Selective.
• 10:09
  SPEAKER_00: If you have a house that needs updating, that needs work, that just looks like an ISO, get rid of the listing or reduce the price.
• 10:17
  SPEAKER_00: If nobody wants to buy the home, price is the marketing.
• 10:21
  SPEAKER_00: You price the home correctly, it really makes it more appealing for the buyers.
• 10:24
  SPEAKER_00: They're not asking how much does the seller need.
• 10:27
  SPEAKER_00: They're not asking, like can you imagine?
• 10:30
  SPEAKER_00: Um, well, what are you asking for the home?
• 10:32
  SPEAKER_00: Well, I'm asking$600,000.
• 10:33
  SPEAKER_00: Well, what does the seller really need out of it?
• 10:35
  SPEAKER_00: They're not asking that.
• 10:36
  SPEAKER_00: They're going the other direction.
• 10:38
  SPEAKER_00: What they're asking is which house gives me the most value for the money I'm willing to spend.
• 10:42
  SPEAKER_00: See, that's the conversations agents have to understand.
• 10:45
  SPEAKER_00: The market usually talks to you early.
• 10:48
  SPEAKER_00: It talks to you early.
• 10:50
  SPEAKER_00: And us as agents, we got to pay attention to that.
• 10:52
  SPEAKER_00: Here's where I think regular agents miss it altogether.
• 10:56
  SPEAKER_00: They think that they need months of data before they know what's happening.
• 11:00
  SPEAKER_00: You usually don't.
• 11:02
  SPEAKER_00: The market starts talking to you almost immediately.
• 11:05
  SPEAKER_00: Week one, how many showings did we have?
• 11:07
  SPEAKER_00: What are the buyers saying about my home?
• 11:10
  SPEAKER_00: Are agents calling me having good conversations?
• 11:12
  SPEAKER_00: Is there second showings?
• 11:14
  SPEAKER_00: What's the activity on that?
• 11:15
  SPEAKER_00: Are buyers walking in and walking right out without any good positive questions?
• 11:20
  SPEAKER_00: Are people saying they like the house, but they just don't like the price?
• 11:24
  SPEAKER_00: Are similar homes getting activity while yours is not?
• 11:27
  SPEAKER_00: All of that means something.
• 11:29
  SPEAKER_00: And this is where I think agents need to become better at reading behavior instead of waiting for an offer.
• 11:36
  SPEAKER_00: I love this one.
• 11:37
  SPEAKER_00: Well, the right buyer hasn't showed up.
• 11:39
  SPEAKER_00: Of course the right buyer showed up.
• 11:41
  SPEAKER_00: You just had the wrong price.
• 11:43
  SPEAKER_00: This is the biggest challenge I have when sellers and I I have any, listen, I have zero issues with hearing any of these objections.
• 11:50
  SPEAKER_00: It's like, yeah, well, maybe you just have the wrong price for the right property.
• 11:53
  SPEAKER_00: I love it when I roleplay with my team.
• 11:54
  SPEAKER_00: They're like, you actually say that to people.
• 11:56
  SPEAKER_00: Of course.
• 11:57
  SPEAKER_00: You have to say it.
• 11:58
  SPEAKER_00: You probably just have the wrong price.
• 11:59
  SPEAKER_00: You have a great home.
• 11:59
  SPEAKER_00: You just got the wrong price.
• 12:00
  SPEAKER_00: Or you know what, Mr.
• 12:01
  SPEAKER_00: and Mrs.
• 12:01
  SPEAKER_00: Seller, you know, I think your house is actually worth this, but probably just not in this market.
• 12:06
  SPEAKER_00: This market isn't demanding this kind of price.
• 12:07
  SPEAKER_00: I think it's a great price.
• 12:08
  SPEAKER_00: And if you wait long enough, you're probably individually getting it, but how long do you want to wait?
• 12:12
  SPEAKER_00: See, because the absence of an offer is information to us as agents, the absence of showings is information.
• 12:20
  SPEAKER_00: The fact that a house around the corner went under contract while yours didn't is information.
• 12:26
  SPEAKER_00: The market is actually talking to us.
• 12:29
  SPEAKER_00: Are we paying attention?
• 12:30
  SPEAKER_00: Here's the question Are you listening?
• 12:33
  SPEAKER_00: Are you listening to what the buyers are saying?
• 12:35
  SPEAKER_00: Or are you just sitting there going, well, right buyer will show up?
• 12:38
  SPEAKER_00: Stop using that.
• 12:40
  SPEAKER_00: Guys, I've sold thousands of houses.
• 12:43
  SPEAKER_00: I'm not speaking from an agent who sells 10 homes a year.
• 12:45
  SPEAKER_00: I'm speaking from one that sold hundreds of homes a year.
• 12:48
  SPEAKER_00: There is a lot going on that we can pay attention to just to become better.
• 12:52
  SPEAKER_00: Around one in three sellers eventually cut their price.
• 12:55
  SPEAKER_00: The other ones expire or come off the market.
• 12:58
  SPEAKER_00: And here's something agents should really think about.
• 13:01
  SPEAKER_00: Recent national uh data shows that roughly one out of every three sellers eventually make a price reduction.
• 13:08
  SPEAKER_00: Well, if you think about it, one out of three, how many of them actually expire or don't sell?
• 13:13
  SPEAKER_00: Half.
• 13:14
  SPEAKER_00: So almost every home that ultimately sells has to have a price adjustment on it.
• 13:18
  SPEAKER_00: And at any given time, roughly one out of every five active listings may already be showing a price cut.
• 13:26
  SPEAKER_00: One out of five, you have to keep cutting them, cutting them, cutting them until you get there.
• 13:29
  SPEAKER_00: Now stop and think about that for just a minute.
• 13:31
  SPEAKER_00: That means price reduction isn't some rare event.
• 13:35
  SPEAKER_00: Having a conversation with your seller isn't like, oh my God, I got to have this very unusual conversation.
• 13:39
  SPEAKER_00: It's a conversation that you expect to have with every listing you take.
• 13:44
  SPEAKER_00: And I think that part of this is you expressing to the seller, Mr.
• 13:47
  SPEAKER_00: or Mrs.
• 13:48
  SPEAKER_00: Seller, in the next seven to 10 days, we're gonna know whether or not we feel this price or the buyers feel this price is actually in line with what the market's willing to bear.
• 13:55
  SPEAKER_00: Can I explain?
• 13:56
  SPEAKER_00: Sure, you can explain.
• 13:58
  SPEAKER_00: Normally what we see is in successful sales, we'll get anywhere from three to five showings on this house within the first seven to ten days.
• 14:04
  SPEAKER_00: What we're looking for is eight to twelve within 30 days.
• 14:07
  SPEAKER_00: If they're not responding to showing the property, there's no way we're gonna be able to sell the property.
• 14:11
  SPEAKER_00: I love this line.
• 14:12
  SPEAKER_00: I learned this years ago.
• 14:13
  SPEAKER_00: There's no way you can ever get on the sold list until you get on the show list.
• 14:16
  SPEAKER_00: Agents, please help yourself and help your sellers.
• 14:19
  SPEAKER_00: If your home is not getting an adequate amount of showings, you have a problem, right?
• 14:23
  SPEAKER_00: You know that great say, you know, that great saying, Houston, we have a problem.
• 14:26
  SPEAKER_00: You have a problem, but our ignorance allows us just to ignore it.
• 14:30
  SPEAKER_00: And that's not fair to the seller, and it really isn't fair to you.
• 14:32
  SPEAKER_00: And I think that if somebody has a$500,000,$600,000,$700,000 home and they're putting that responsibility in your hands, you better be darn good at your job.
• 14:41
  SPEAKER_00: I always try to always find it interesting when I talk to sellers sometimes.
• 14:45
  SPEAKER_00: They're like, well, I'm gonna give it to my little nephew.
• 14:48
  SPEAKER_00: He's brand new realtor, he's gonna list my house.
• 14:50
  SPEAKER_00: Like, would you hire, like, if you were gonna try to win a lawsuit for$700,000 and you had to hire a lawyer, would you hire one that has never been to trial before?
• 14:58
  SPEAKER_00: Of course not.
• 14:59
  SPEAKER_00: If you had to have an operation on your brain, are you gonna hire a surgeon to work on your brain that has never operated anybody?
• 15:06
  SPEAKER_00: Absolutely not.
• 15:08
  SPEAKER_00: Then why would you hire an agent that hasn't had any experience at all at selling a$700,000 house?
• 15:15
  SPEAKER_00: But it happens all the time.
• 15:16
  SPEAKER_00: Guys, 3% of all the agents sell five or more homes per year.
• 15:22
  SPEAKER_00: 97% sell four to zero homes a year.
• 15:24
  SPEAKER_00: You have a 97% chance when you pick an agent that their education on selling homes and their skill level is well below par.
• 15:33
  SPEAKER_00: And yet agents are every single day getting in front of all these people trying to, you know, trying to figure this thing out.
• 15:38
  SPEAKER_00: And listen, I'm all about agents figuring things out.
• 15:41
  SPEAKER_00: Everyone starts somewhere.
• 15:42
  SPEAKER_00: But learn, don't just blame the market.
• 15:45
  SPEAKER_00: Blame yourself, blame your skill.
• 15:47
  SPEAKER_00: Uh really study the market, learn things, learn skills, learn objection handling skills, learn how to talk to people.
• 15:53
  SPEAKER_00: There's so much here to learn to make a lot of money in this business.
• 15:57
  SPEAKER_00: See, agents treat the word price reduction like it's telling the seller something died or somebody didn't, you know, got catastrophically injured.
• 16:08
  SPEAKER_00: No, it's it's not that.
• 16:10
  SPEAKER_00: Because they don't want the tension in the conversation.
• 16:13
  SPEAKER_00: The agents don't.
• 16:14
  SPEAKER_00: They don't want the seller to be upset and they don't want to hear, but you told me my house would sell.
• 16:19
  SPEAKER_00: By the way, don't ever tell any seller your house will sell.
• 16:22
  SPEAKER_00: That's the hardest thing I think I trained to people is you're not responsible for the price, the buyer is.
• 16:27
  SPEAKER_00: Meaning you're not responsible if the house doesn't sell, the buyer is.
• 16:31
  SPEAKER_00: Your job is just to tell them the truth.
• 16:32
  SPEAKER_00: So you're not responsible for the price.
• 16:35
  SPEAKER_00: Don't tell them the price.
• 16:37
  SPEAKER_00: Let them pick the price and then share with them some stats and some statistics to get the price in a normal range.
• 16:43
  SPEAKER_00: One of the things I always try to tell a seller or when I'm listing a home is based on what I'm seeing now, buyers are willing to pay around this for your house.
• 16:52
  SPEAKER_00: And I'm not really sure what the buyers are gonna respond to, but we're gonna know in seven to ten days.
• 16:56
  SPEAKER_00: That's gonna tell us a lot.
• 16:57
  SPEAKER_00: And in seven to ten days, I'm gonna call you each and every day for the next seven to ten days, and we're gonna walk through this together.
• 17:03
  SPEAKER_00: And if for some reason the market isn't responding to what we're doing in the price, then we'll talk about a price improvement.
• 17:09
  SPEAKER_00: How does that sound?
• 17:09
  SPEAKER_00: Right now, are they gonna push back?
• 17:11
  SPEAKER_00: Sure.
• 17:11
  SPEAKER_00: Handle it, it's an objection.
• 17:12
  SPEAKER_00: That's all it is.
• 17:13
  SPEAKER_00: So don't delay this conversation.
• 17:15
  SPEAKER_00: And that delay can get very expensive for you and for them.
• 17:19
  SPEAKER_00: Recent data has also shown that when sellers do finally reduce the price, the average reduction can be around 7%.
• 17:27
  SPEAKER_00: Wow, think about that.
• 17:29
  SPEAKER_00: You have a$500,000 house and your 7%, 5% is$25,000.
• 17:35
  SPEAKER_00: So let's just go with$30,000 to$35,000.
• 17:38
  SPEAKER_00: You know, agents, a lot of times what I see is you guys are doing$5,000 price adjustments.
• 17:43
  SPEAKER_00: I go in the MLS and I look at different houses and I see$5,000.
• 17:46
  SPEAKER_00: I'm like, what is wrong with this realtor?
• 17:48
  SPEAKER_00: What is wrong with if you have a$600,000 house and you're reducing it by$5,000?
• 17:55
  SPEAKER_00: Do you understand how idiotic that is?
• 17:58
  SPEAKER_00: Stop.
• 17:58
  SPEAKER_00: That is not a price adjustment.
• 18:00
  SPEAKER_00: You're doing a price adjustment to get really consumer uh excitement about the price you put on there.
• 18:06
  SPEAKER_00: You're actually doing a 1% reduction or a 2% reduction on a property.
• 18:10
  SPEAKER_00: It's like standing in line at Dillard's that opens on a sale.
• 18:14
  SPEAKER_00: You're gonna go stand in line if Dillard says I have a 1% sale, everyone show up at 5 a.m.
• 18:19
  SPEAKER_00: You're gonna sleep in.
• 18:20
  SPEAKER_00: See, this is an education problem.
• 18:22
  SPEAKER_00: This is a lack of really responding to what the market is doing.
• 18:25
  SPEAKER_00: I want you to think about this.
• 18:27
  SPEAKER_00: The sellers who wouldn't make a smaller adjustment early may end up making a much larger adjustment later.
• 18:33
  SPEAKER_00: So they're gonna have to make an adjustment most likely later.
• 18:36
  SPEAKER_00: Just get the bigger adjustment now.
• 18:39
  SPEAKER_00: And if you don't know how to do it, practice it.
• 18:41
  SPEAKER_00: We get them all the time:$50,000,$75,000,$20.
• 18:45
  SPEAKER_00: We don't take anything typically less than$25,000.
• 18:48
  SPEAKER_00: And that we really scrutinize.
• 18:50
  SPEAKER_00: So if you're taking listing adjustments at$5,000 or$10,000, you should probably not do that, right?
• 18:56
  SPEAKER_00: You're just losing a lot of time.
• 18:58
  SPEAKER_00: You're chasing the market down, and not the buyer's never going to make a different decision on a$5,000 price adjustment, most likely.
• 19:04
  SPEAKER_00: Now I want you guys to think about this.
• 19:06
  SPEAKER_00: The house has been sitting on the market.
• 19:07
  SPEAKER_00: Now buyers are wondering why nobody even bought it.
• 19:10
  SPEAKER_00: Now you've created another objection.
• 19:13
  SPEAKER_00: Not only do you have a price adjustment, but now you have a buyer's concern of why no one else has bought it.
• 19:17
  SPEAKER_00: That's what agents need to understand about time.
• 19:20
  SPEAKER_00: Time itself can become a problem.
• 19:22
  SPEAKER_00: A buyer sees a house that's been on the market for three days and thinks, oh, I better go see that property.
• 19:29
  SPEAKER_00: I don't want that thing to go away.
• 19:30
  SPEAKER_00: But a buyer sees a house that has been on the market for 103 days.
• 19:34
  SPEAKER_00: What are they thinking then?
• 19:35
  SPEAKER_00: What the heck's wrong with this house?
• 19:37
  SPEAKER_00: You're gonna get a lot lower offers in 103 days.
• 19:40
  SPEAKER_00: See, that's only just over three months.
• 19:43
  SPEAKER_00: Let's just call it three and a half months, be specific here.
• 19:46
  SPEAKER_00: Three and a half months, you already have an old house that the buyer is saying, Well, what's wrong with the house?
• 19:51
  SPEAKER_00: Because, see, the seller says, Well, this is could take some time.
• 19:55
  SPEAKER_00: The agent says, Okay, I agree with you because they don't want to have any confrontation.
• 19:59
  SPEAKER_00: So what's wrong with this?
• 20:00
  SPEAKER_00: Same house, totally different perception.
• 20:03
  SPEAKER_00: One house sells, one doesn't, one house sells in three days, one house doesn't sell after 103 days, then what?
• 20:09
  SPEAKER_00: Don't confuse time with strategy.
• 20:12
  SPEAKER_00: Write that one down.
• 20:13
  SPEAKER_00: Don't confuse time on the market with strategy.
• 20:16
  SPEAKER_00: Leaving the house on the market another 30 days isn't a strategy.
• 20:21
  SPEAKER_00: If the house is the same, the price is the same, the condition is the same, the competition is the same.
• 20:28
  SPEAKER_00: Why are we expecting buyers to suddenly respond differently?
• 20:33
  SPEAKER_00: They're not going to.
• 20:34
  SPEAKER_00: For 103 days, they saw the same old house with the same price, and you're going, I think the right buyer's gonna show up.
• 20:42
  SPEAKER_00: The right buyer's not gonna show up.
• 20:45
  SPEAKER_00: And if they do, it's a needle in a haystack.
• 20:47
  SPEAKER_00: Doesn't mean you won't ever sell it.
• 20:49
  SPEAKER_00: I'm not saying that.
• 20:50
  SPEAKER_00: I've had houses on the market where my agents have had them for 60, 90 days, they never did price adjustments on it, and miraculously they sold.
• 20:57
  SPEAKER_00: But I can tell you the odds are really against you, and that's called hope.
• 21:03
  SPEAKER_00: You hope it'll sell, and hope isn't a listing strategy.
• 21:06
  SPEAKER_00: Hope is not a strategy that I would want to hang my hat on.
• 21:10
  SPEAKER_00: The first 30 days matter more than agents even think.
• 21:14
  SPEAKER_00: One of the local studies I looked at around Nashville had an interesting pattern.
• 21:20
  SPEAKER_00: One of the homes that successfully sold, a large percentage were already under contract in the first few weeks.
• 21:28
  SPEAKER_00: Around 41% were under contract within seven days.
• 21:33
  SPEAKER_00: Well, why did that happen?
• 21:34
  SPEAKER_00: 41% within seven days.
• 21:36
  SPEAKER_00: More than half were under contract within 14 days.
• 21:40
  SPEAKER_00: Well, how is that possible?
• 21:41
  SPEAKER_00: And roughly two thirds were under contract within 30 days.
• 21:45
  SPEAKER_00: I'm not telling you every house should sell in 30 days.
• 21:49
  SPEAKER_00: That's not the point.
• 21:50
  SPEAKER_00: The point is the market gives you a tremendous amount of information in the first thirty days.
• 21:57
  SPEAKER_00: And yet, what do agents do?
• 21:59
  SPEAKER_00: Day seven?
• 22:00
  SPEAKER_00: Let's give it a little more time.
• 22:01
  SPEAKER_00: Day 14, well, we're getting some online activity, but we still haven't gotten an offer.
• 22:07
  SPEAKER_00: Day 21, the market is just a little bit slower than we really anticipated.
• 22:14
  SPEAKER_00: Day 30, well, maybe we'll do an open house.
• 22:17
  SPEAKER_00: Day 45, let's give it another couple of weeks before we actually tackle this conversation with the seller.
• 22:23
  SPEAKER_00: And then suddenly you're at day 75.
• 22:25
  SPEAKER_00: What happened?
• 22:26
  SPEAKER_00: Nothing happened.
• 22:28
  SPEAKER_00: You just procrastinated, and that's the biggest problem you have.
• 22:31
  SPEAKER_00: Somewhere between day 14 and day 30, there needs to be a real conversation.
• 22:37
  SPEAKER_00: Again, I'm not saying slash the price every two weeks.
• 22:41
  SPEAKER_00: Now, I would probably have serious conversations every two weeks, but I'm not telling you to do that.
• 22:46
  SPEAKER_00: I've been doing this a long time, so I have a different scale.
• 22:48
  SPEAKER_00: But what I am saying is evaluate it in the reality of what it really sits in.
• 22:54
  SPEAKER_00: By two or three weeks into the listing, you should be able to sit down with the seller and say, here's what we are seeing in the market today.
• 23:02
  SPEAKER_00: Here's our showing activity.
• 23:04
  SPEAKER_00: Here's what buyers are choosing instead of us.
• 23:07
  SPEAKER_00: Here's what's gone under contract in the last seven, fourteen, twenty one days.
• 23:11
  SPEAKER_00: Here's our competition that's actively right now.
• 23:14
  SPEAKER_00: Here's what the feedback is telling us.
• 23:16
  SPEAKER_00: And then ask this based on what the market is telling us, do we need to make a change in the price?
• 23:23
  SPEAKER_00: And maybe the answer isn't just price.
• 23:26
  SPEAKER_00: Maybe it's condition.
• 23:27
  SPEAKER_00: But maybe the property needs a little bit of work.
• 23:29
  SPEAKER_00: Maybe we should have addressed that in the beginning, or maybe we addressed that after maybe 30 days.
• 23:34
  SPEAKER_00: Maybe access to the house isn't all that great.
• 23:37
  SPEAKER_00: Maybe the photos weren't good enough.
• 23:38
  SPEAKER_00: Maybe we should have made sure that we have really good photos.
• 23:41
  SPEAKER_00: Maybe you're not presenting the home properly.
• 23:43
  SPEAKER_00: Maybe look at that as a strategy upgrade.
• 23:46
  SPEAKER_00: Something needs to be evaluated.
• 23:48
  SPEAKER_00: Here's another number agents should understand.
• 23:51
  SPEAKER_00: What is going on with everything around me?
• 23:53
  SPEAKER_00: Recent data showed roughly three out of five homes sold below the original asking price.
• 23:59
  SPEAKER_00: Three out of five.
• 24:00
  SPEAKER_00: And guess what's interesting?
• 24:01
  SPEAKER_00: Out of those other ones that didn't sell below their asking price, they sold very quickly.
• 24:06
  SPEAKER_00: The other ones had to make adjustments or sold less than asking price.
• 24:10
  SPEAKER_00: So the question you want to ask you is just because you put a price on the home doesn't mean you're going to sell it for that.
• 24:14
  SPEAKER_00: I want you to think about that for a minute.
• 24:16
  SPEAKER_00: That's not saying the home didn't sell.
• 24:18
  SPEAKER_00: They sold.
• 24:19
  SPEAKER_00: But the market eventually told the seller, I'm not paying your original number.
• 24:24
  SPEAKER_00: And that's exactly why pricing isn't one time is not a one-time conversation at the listing presentation.
• 24:31
  SPEAKER_00: Pricing is an ongoing conversation between the seller, the agent, and the marketplace.
• 24:37
  SPEAKER_00: Hear me again.
• 24:39
  SPEAKER_00: Pricing is an ongoing conversation between the seller, you, the agent, and what the market is telling us.
• 24:47
  SPEAKER_00: And the market keeps voting every single day.
• 24:51
  SPEAKER_00: The market is voting every day, every showing, every competing listing, every single offer, every house that goes pending, every home.
• 25:02
  SPEAKER_00: The question is whether the agent has the courage to report the vote.
• 25:08
  SPEAKER_00: Guys, your home expires because our lack of being attentive to the market.
• 25:14
  SPEAKER_00: We know months before it expires, it's going to.
• 25:18
  SPEAKER_00: Not because of the home, but it's usually because of the behavior of the realtor.
• 25:23
  SPEAKER_00: Be a realtor that makes a difference.
• 25:25
  SPEAKER_00: Be one that studies the market.
• 25:27
  SPEAKER_00: Be one that works on skills and craft to talk to the homeowner in a manner that gets them having complete clarity on what it's going to take.
• 25:38
  SPEAKER_00: Our job is to question the seller, make sure that we're putting them in the best position, and changing the way they look at the situation so the situation they look at changes.
• 25:48
  SPEAKER_00: I hope everybody has enjoyed this today.
• 25:51
  SPEAKER_00: I want to say thank you so much.
• 25:53
  SPEAKER_00: Don't forget to hit the like button and the subscribe button because we would love to continue to keep bringing these things to you.
• 25:59
  SPEAKER_00: Thank you guys.
• 26:00
  SPEAKER_00: Appreciate you.
• 26:01
  SPEAKER_00: Have a great day.