Buyer and Sellers! The Truth Will Set You Free!
When we write these blogs, record these podcasts, or video tape these vlogs, we do it based upon what we are seeing, hearing, learning and experiencing in the market. This one is no different, this topic comes from a listing presentation we carried out last week.
To give you some context, this gentleman previously had his home listed on the market with another agent and had been unsuccessful in selling it for some time now. The lack of success meant he pulled the home from the market as he needed a break from the Open Houses and Showings.
The home itself is a beautiful downtown condo, in a great building within a prestigious area of the city. It’s been well maintained and even had some slight renovations. It was on the market in the range of $1,100,000 and $1,200,000. I know that’s quite a large range but for privacy purposes I'm not getting too into the specifics for all you detectives out there!
So we carried out our listing presentation, discussed the market based upon comparables for both Sold and Actives and looked at all the necessary information together. Based on this, we told the gentleman, to meet today's market value, he would need to reduce his home price by a minimum of $100,000. Now that’s not chump change at all!! On top of that, that reduction is based upon the comparables and putting his home right in the mix, but not to try and entice a quick sale. No, in order to produce a quick sale, the reduction would of had to be more.
Now what you can likely expect to follow that type of conversation is a lot of disapproval, silence, emotion, swearing, storming out etc etc. Not in this case though. You see, the gentleman had a reason for selling and wanted to achieve a goal. Not selling his home stopped him from doing so. Now he wasn’t desperate or in a bad financial position, however it would have been convenient for him to achieve this goal. No, instead he gave out the biggest sigh of relief. Yes, he finally had the answer in which his agent was too afraid to tell him.
He now knew the ‘WHY’ his home was not selling. See as the professional, it’s our responsibility to tell you what you NEED to hear, not what you WANT to hear. In his previous case, he had told his agent what he would like to get for the home and his agent went with that as his listing number. Think about it, in the eyes of a client, they are relying on you, the professional, and you’re saying to list at that price? Of course they are going to be happy and trust you know what you’re doing, you ARE supposed to be the professional after all!!
On top of this, he had offered on a few other properties, but because of his home not selling, he was unable to secure the deal and make it happen. We came up there and then with the answer to his problems and what he was doing wrong in his offerings.
But what would typically be a very difficult conversation, was a breakthrough for this client. Like a TON of other sellers and buyers out there, he had been stuck without the ability to move forward and he didn’t know why. The ability to be able to move forward again, far outweighed the pain of a large price reduction. In this case, the honesty of the market correction we gave, was the final piece to the puzzle. It was the difference between success and failure, reaching his goal or not.
It goes to show, honesty is always the best policy!
Thanks for reading along! If you’re in the market right now and would like some help either buying or selling, we’d be happy to have a conversation with you. Feel free to reach out on any of the below details!
Until next week,
When we write these blogs, record these podcasts, or video tape these vlogs, we do it based upon what we are seeing, hearing, learning and experiencing in the market. This one is no different, this topic comes from a listing presentation we carried out last week.
To give you some context, this gentleman previously had his home listed on the market with another agent and had been unsuccessful in selling it for some time now. The lack of success meant he pulled the home from the market as he needed a break from the Open Houses and Showings.
The home itself is a beautiful downtown condo, in a great building within a prestigious area of the city. It’s been well maintained and even had some slight renovations. It was on the market in the range of $1,100,000 and $1,200,000. I know that’s quite a large range but for privacy purposes I'm not getting too into the specifics for all you detectives out there!
So we carried out our listing presentation, discussed the market based upon comparables for both Sold and Actives and looked at all the necessary information together. Based on this, we told the gentleman, to meet today's market value, he would need to reduce his home price by a minimum of $100,000. Now that’s not chump change at all!! On top of that, that reduction is based upon the comparables and putting his home right in the mix, but not to try and entice a quick sale. No, in order to produce a quick sale, the reduction would of had to be more.
Now what you can likely expect to follow that type of conversation is a lot of disapproval, silence, emotion, swearing, storming out etc etc. Not in this case though. You see, the gentleman had a reason for selling and wanted to achieve a goal. Not selling his home stopped him from doing so. Now he wasn’t desperate or in a bad financial position, however it would have been convenient for him to achieve this goal. No, instead he gave out the biggest sigh of relief. Yes, he finally had the answer in which his agent was too afraid to tell him.
He now knew the ‘WHY’ his home was not selling. See as the professional, it’s our responsibility to tell you what you NEED to hear, not what you WANT to hear. In his previous case, he had told his agent what he would like to get for the home and his agent went with that as his listing number. Think about it, in the eyes of a client, they are relying on you, the professional, and you’re saying to list at that price? Of course they are going to be happy and trust you know what you’re doing, you ARE supposed to be the professional after all!!
On top of this, he had offered on a few other properties, but because of his home not selling, he was unable to secure the deal and make it happen. We came up there and then with the answer to his problems and what he was doing wrong in his offerings.
But what would typically be a very difficult conversation, was a breakthrough for this client. Like a TON of other sellers and buyers out there, he had been stuck without the ability to move forward and he didn’t know why. The ability to be able to move forward again, far outweighed the pain of a large price reduction. In this case, the honesty of the market correction we gave, was the final piece to the puzzle. It was the difference between success and failure, reaching his goal or not.
It goes to show, honesty is always the best policy!
Thanks for reading along! If you’re in the market right now and would like some help either buying or selling, we’d be happy to have a conversation with you. Feel free to reach out on any of the below details!
Until next week,
Jay Mcinnes
T: 604.771.4606
jay@mcinnesmarketing.com
Ben Robinson
T: 604.353.8523
ben@mcinnesmarketing.com