New Market Mastery Program

New Market Mastery New Market Mastery ProgramProgramPositioning Your Positioning Your

Listings to SellListings to Sell

Workout AgendaWorkout Agenda

Sellers’ View of the Market Your View Key Challenges New Strategies Rehearsal for Price Improvement Discussions Action Plan

What are Sellers What are Sellers thinking about the thinking about the

market?market?

Understand the market from the Seller’s point of view.

What market shift?

I know what’s sold in my

neighborhood.

Why hasn’t my house sold?

That article wasn’t talking

about MY town

My house is better!

This is just a seasonal thing.

YouYou know what’s know what’s reallyreally happening in the happening in the

market.market.

That’s their perception.That’s their perception.

Today we’ll share a proven Today we’ll share a proven method for influencing method for influencing your Sellers to improve your Sellers to improve their price using a new their price using a new tool, the tool, the Market UpdateMarket Update. .

Let’s try something . . . Let’s try something . . .

Look at your completed Seller Situation Forms (the listings you’re currently servicing)

What price do you think the listing will actually sell for? Be honest.

Write down next to each listing what you think the “real” price should be.

How many of your How many of your listings are priced to listings are priced to

sell?sell?

Key ChallengesKey Challenges

What’s preventing us from What’s preventing us from securing more price improvements securing more price improvements to get our inventory sold?to get our inventory sold?

Workout SessionWorkout Session

Our plan today is to work on some Our plan today is to work on some of the challenges you’re facing. of the challenges you’re facing.

ANDAND

Conduct a “rehearsal” for an Conduct a “rehearsal” for an actual meeting you’re going to actual meeting you’re going to have with your Sellers.have with your Sellers.

Why use the Market Update? It Works!Why use the Market Update? It Works!

“I have a listing in a development of 95 homes and 7 are currently on the market. We listed for 30 days at $550,000, a price that was right in the middle of my recommended price range.

When I approached them (the sellers) for a price improvement they wanted to move down to $535,000. But after reviewing the Market Update with them they agreed to my new suggested price of $499,900. We had a full price offer five days later.”

- Dena Paolucci (Princeton, NJ)

“I have used the Market Update for many of my listings…When people can see something in front of them in black and white, the conversation is focused. Sellers can see the impact of market trends, such as absorption and interest rates, and the effects of such trends.

Through these presentations I have improved the price accordingly and ultimately gotten the listings sold, which is everybody’s goal.”

- Jill Fusco-Wrede (Landing, NJ)

Why use the Market Update? It Works!Why use the Market Update? It Works!

Securing the AppointmentSecuring the Appointment

Let’s try this dialogue:

“Mr. Anders, this is Jack Waters from Weichert, Realtors. There are some things happening in the local real estate market that we need to discuss. It’s about time we meet to talk about how we’re going to get your house sold. Can you come in on Thursday or would Friday work better for you?”

““Start with the Vacant Houses”Start with the Vacant Houses” Prioritize your listings.

Work FIRST with the most motivated sellers.

This gives you a “quick win” and puts you ahead faster.

Look at your Seller Situation forms:Who are YOUR “motivated sellers?”

The Price Improvement The Price Improvement MeetingMeeting1. Establish Rapport

Reconnect with your Seller and their motivation for selling. Ask about the kids, the dog, etc. Thank them for agreeing to meet.“How are your plans coming along? . . . “

2. Share Your Agenda (Use Market Update) “Ann and Richard . . . Today, I wanted to discuss with you three things:

a. What’s Happening in this Marketb. Progress in Marketing Your Homec. A Plan for Moving Forward

How does that sound?”

3. Follow Your Agenda (Use Market Update)Show how you do what you say you’ll do!Defer to stay on track – “That’s a valid concern. We’ll come back to that, but first I want to finish sharing what’s happening in the market.”

4. Ask for the Price Improvement“We need to reposition your property so it will sell.”

Tools for Conducting the Tools for Conducting the MeetingMeetingSellers Control Sheet

270

225

DOM

240280

215

DOM

245

MLS Printouts

Observer’s ChecklistObserver’s Checklist

Now that we’ve reviewed the flow of the meeting and the tools to use, let’s look a little closer at the specifics…

Let’s review the Observer’s Checklist

DemonstrationDemonstration

Let’s follow along with the Let’s follow along with the checklist as we see the checklist as we see the demonstration. demonstration.

Check off when you see the Check off when you see the associate do any of the associate do any of the steps here.steps here. Conduct demonstration

Establish Rapport

Reconnect with the seller and their motivation for moving

Demonstration

Market UpdateMarket Update

Demonstration

• What’s happening in the market

• Progress in marketing your home

• A plan for moving forward

AgendaAgenda

Demonstration

What’s Happening in this What’s Happening in this MarketMarket

Demonstration

• Supply is greater than demand

• Fewer active buyers

• More homes on sale than just a year ago

• Buyers have choice

• Market absorption rate has steadily increased over the past few months . . .

What’s Happening in the What’s Happening in the MarketMarket

Demonstration

Sample Market Sample Market Absorption RateAbsorption Rate

117 current active listings

23 reported sales in last 30 days=

5.1months

absorptionrate

Anytown, USA

The absorption rate is the number of months projected to deplete the existing inventory of homes based on current monthly sales. In the example above, it would take slightly more than 5

months to sell the existing inventory of homes.

Demonstration

Market Absorption ScaleMarket Absorption Scale(Absorption Rate in Months)(Absorption Rate in Months)

5-6 months absorption rate indicates a normal market.

5-6 months absorption rate indicates a normal market.Demonstration

2005 Buyers2005 BuyersBuyer Profile• First-time homebuyers• Trade-up buyers• Transferees• Investors

Buyer Mentality• Tremendous return on investment• High sense of urgency• Buying over their heads• High confidence in national and local economy• Multiple offers were normal

Demonstration

2006 Buyers2006 BuyersBuyer Profile• First-time home buyers priced out of the market• Fewer trade-up buyers• Transferees fewer and more reluctant to commit to purchasing• Speculators and investors not in the market

Buyer Mentality• Real estate represents a place to live, rather than an investment• Low sense of urgency• Conservative with personal spending• High energy costs create obstacles• Concerned the real estate market will devalue

Demonstration

Listings from the MLS in Weichert Market AreasListings from the MLS in Weichert Market Areas

In our local area (CT/NY/NJ. Lehigh Valley, PA), the number of homes for sale (Weichert and non-Weichert listings) has steadily increased over the past three years.

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

11/2

5/20

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1/25

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10/30/200331,002

10/30/200432,712

10/30/200541,280

10/30/200658,386

Num

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Demonstration

The Otteau Report comes from an objective, third party appraisal company that provides regular market updates to developers and consumers.

Demonstration

The Otteau Report comes from an objective, third party appraisal company that provides regular market updates to developers and consumers.

Demonstration

Key Market StatisticsKey Market StatisticsWeek Ending Week Ending 11/11/200611/11/2006

Town Total

ListingsUnder Contract

Last 30 DaysAbsorption

Rate

Hopatcong 184 17 10.8

Roxbury 197 20 9.8

Mount Olive 198 12 16.5

Netcong 18 2 9

Stanhope 41 3 13.7

Demonstration

The Effect of Interest Rates on The Effect of Interest Rates on Buying PowerBuying Power

What can I buy for $2,500.00 per month?

Source: Weichert Financial Services, 2006. Based on a 30-year fixed rate mortgage.

Demonstration

Market Scale for Supply & Market Scale for Supply & DemandDemand

High Supply/Low Demand Low Supply/High DemandNormal

Ma

rke

t A

bso

rpti

on

in M

on

ths 1

2

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No

rma

l

Weichert has been studying market conditions for more than 3 decades and has found a direct correlation between market absorption and property values.

As absorption rates increase beyond a normal market level of 5-6 months, property values depreciate annually.

Demonstration

Demonstration

Let’s look at your Let’s look at your competitioncompetition• Properties currently in competition with yours

for buyer attention.

• Properties that have caught buyer attention in the last 30 days.

• At this rate, how many months will it take for the current buyer demand to absorb the current listing supply in this sector of the market?

Demonstration

How would How would youyou like your home to like your home to be positioned in the market?be positioned in the market?

Stop HereStop Here

There’s More…There’s More…

We’ll stop here because this is usually where your Sellers will be ready to take action

Demonstration DebriefDemonstration Debrief

Demonstrate the current state of the market

Engage the Seller in the discussion

Convince the Seller to take action now by repositioning their home to sell

Which tools were particularly effective?

How did the Sales Associate:

Let’s RehearseLet’s Rehearse

One person will be the Associate

One person will be the Seller

One person will be the Coach

One person will be the Observer

We’ll repeat each round of rehearsal to give all Associates a chance to practice

At your tables:

Coach’s RoleCoach’s Role

Your role is to help the Associate get better.

Observe and listen.

Use the Observer’s Checklist!

Take thoughtful notes

The Coach ALWAYS plays the role of the Coach

Coaches, please raise your hands!

Feedback DiscussionFeedback Discussion

• Start with the Associate who practiced: What do you think you did well? What would you consider for next time?

• Then ask the Seller: What worked well for you? What would you suggest for next time

• Observer: What did the Associate do well? What should s/he consider for next time?

• Coach: What did the Associate do well? What should s/he consider for next time?

After you finish each rehearsal, the Coach will conduct a feedback discussion:

The Price Improvement The Price Improvement MeetingMeetingLet’s Rehearse: Establish Rapport &

Reconnect with the Seller’s Goals

1. Each “Associate” will take a turn at establishing rapport and reconnecting with the Sellers Goals. Decide who will be the “Associate” in Round 1.

2. Associate “rehearses” the first portion of the meeting with the “Seller” – then STOP

3. Seller – receive a briefing from the Associate on the Seller (use the Seller Situation form)

4. Coach and Observer take notes using the Observer’s Checklist Practice: 10 minutes

Then click to next slide






• Share feedback for each “Associate” who practiced

Feedback: 5 minutes Then click to next slide



Round 2: Switch roles.

• Associate “rehearses” the first portion of the meeting with the “Seller” – then STOP

• Seller – receive a briefing from the Associate on the Seller (use the Seller Situation form)

• Coach and Observer take notes using the Observer’s Checklist

Practice: 10 minutesThen click to next slide

Feedback DiscussionFeedback Discussion• Start with the Associate who practiced: What do you think

you did well? What would you consider for next time?




• Share feedback for each “Associate” who practiced




Round 3: Switch roles again.

• Associate “rehearses” the first portion of the meeting with the “Seller” – then STOP

• Seller – receive a briefing from the Associate on the Seller (use the Seller Situation form)









The Price Improvement The Price Improvement MeetingMeeting

1. Decide who will be the “Associate” in Round 1. Associate “rehearses” Share Agenda & What’s Happening in this Market – then STOP

2. Another plays “Seller” – receive a briefing from the Associate on the Seller (use the Seller Situation form)

3. Coach and Observer take notes using the Observer’s Checklist

Share Your Agenda (Use Market Update)“Ann and Richard . . . Today, I wanted to discuss with you three things:


How does that sound?

Follow Your Agenda – What’s Happening in this Market









Round 2: Switch roles.

• The Associate “rehearses” Share Agenda & What’s Happening in this Market – then STOP

• Another plays “Seller” – receive a briefing from the Associate on the Seller (use the Seller Situation form)





Follow Your Agenda – What’s Happening in this Market









Round 3: Switch roles again.

• Associate “rehearses” Share Agenda & What’s Happening in this Market – then STOP

• Another plays “Seller” – receive a briefing from the Associate on the Seller (use the Seller Situation form)





Follow Your Agenda (Use Market Update)







Feedback: 5 minutesThen click to next slide

DebriefDebrief

Was this helpful?

Any insights from this process?

StrategiesStrategies Start with the most motivated sellers first.

Build rapport and re-connect to the sellers’ goals and motivation for selling

Stick to your Agenda

Listen and Empathize

Defer to Stay on Track

Explain what you mean by “inventory,” “market absorption rate,” “Buyer’s Market,” and any other terms that might be unfamiliar to the Seller

StrategiesStrategies Ask questions to engage the Seller:

“What is your impression of the market?”

“Have you seen this article?”

“What does this graph tell you about the market?”

“Can you read the bottom number…I can’t make it out from here.”

Share facts from big picture to PTA to seller’s house and how it’s positioned in the marketplace

Your conviction and belief are key!

Go to Weichert UniversityGo to Weichert University

www.WeichertOne.com and click on Weichert University

For more dialogue, tips and strategies. If you have more, share them with us and we can post them on line!

Look at: Asking for the Price Improvement

Action PlanAction Plan

1. Call your Sellers. Make the appointments to meet.

2. Conduct a minimum of THREE meetings with your Sellers

3. Bring copies of your price change forms to our next session.

4. Next Meeting: _______________

Thank you for your Thank you for your active participation active participation

and focus today!and focus today!

Documents

New Market Mastery Program