For Sale signs are cute, but they don't pay the bills. Gone are the days where having a listing was pretty much a guarantee of an eventual paycheck; in fact, in today's market, a listing may very well be more of a liability than an asset... if it's not priced right.
The first challenge in pricing right is to figure out what the heck the right price is. But even if you're convinced you know what the house will sell for, that's only half the battle. The other half is convincingly communicating your findings to a seller; especially if that seller won't be delighted with your analysis!
Creating and presenting a persuasive CMA is an art that, frankly, takes time and practice to master. But we'd like to help you get there faster, or at least share some tips from our years of experience that might help you fine-tune your presentation.
We've put together a small powerhouse of heavy-hitter Active Rainers who will share their secrets for creating and presenting effective CMA's.
Join us on Saturday, February 7th at 8:30 am (Pacific) / 11:30 am (Eastern) for a teleconference panel discussion with me, Broker Bryant Tutas, Borino & Katerina Gasset - four very different personalities, four very different approaches to the Art of the CMA. Each of will have 15-20 minutes to spill our beans, and then take questions from the audience. We expect the conference will last 90 minutes or so.
The cost? It's FREEEEEEEEEEEEEE! Actually, we'll be giving away some cool prizes, so you might actually come away from the show a little bit richer! And certainly wiser...
How does it work? You have to register, and once you do, you'll get the details on how to tune-in to the conference. You can listen online or over the phone line.
Hope to see you there!!!
REGISTER FOR "PRICING IT RIGHT WITH A PERSUASIVE CMA!"
p.s. - it appears that my registration program site is up and down, so if you have trouble registering, please try again later!!!
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Good luck on the conference. I applaud the understanding and emphasis of proper pricing. The objective of any listing is to sell. If not properly priced, no matter the challenge, it just won't sale. For buyers in a changing market, it is critical for them to be aware of what the proper worth of a home is so they will make good purchase decisions. You will be a top professional is you have a clear understanding of price. I am an appraiser by background and that edge has helped immensely while negotiating contracts and kept both sellers and buyers informed. Good luck!
We turn down every seller that is not willing to list for at least market value. We make it clear to them that we will be brutally honest about the price and if that's not what they are looking for then that's too bad - for them, not for us.
Great idea, thanks for setting this up.
Jennifer,
Free is good! I didn't know that you were an appraiser. :)
Mike in Tucson
Hi Jennifer, I'm looking forward to it. I'm glad it's FREE !! Free is good :-)
Freeeeeeeeee IS good!!!!!!!
Hi Jennifer, I re-blogged this last night. The re-blog is now gone? Someone signed up off the re-blog post today, did you want me to take it down? Let me know if that is a problem.
DAvid - I just posted this blog this morning - and I have no idea how re-blogging works, actually! I didn't do anything - but tell me what I NEED to do to fix it!!!
Jennifer, Looking forward to the teleconference. Thanks for setting it up.
Look forward to the discussion...
Jennifer, that should be very interesting. I am going to mark my calendar and hopefully I will be able to dial in.
Yikes!!! The pressure is on now. I best go out and take a listing or two to see if I can figure out this CMA thingie.
Darn, I'm already booked on the 7th all day! Any chance you will release transcripts? Or do something techie so I can learn too?
Jennifer - It looks like this will be fun. I can't wait to tune in.
In our community a CMA is very difficult because we price listings based on what the builders are selling for.Unfortunately, by the time the listing goes live, the builder has already cut prices by 5-7% !! I would love to hear how one could deal with this scenario
I am looking forward to hearing the different perspectives from these experts. Thanks for setting this up.
Jennifer,
Thanks for setting this up! I will be there!
Looking forward to it! See you on the 7th
Looking forward to it - you can never learn enough about how to keep our sellers realistic!
Very nice post. I joined. See you on the 7th of Feb.
Looking forward to the discussion. It is always interesting to hear what others are doing. Thanks, I have registered.
Listing in a declining market requires listing today at tomorrow's LOWER price. Otherwise the home listed right today will be overpriced tomorrow. Chasing the market is futile and costly. The great hockey player, Gordy Howe, when asked why he did so well simply stated that he skated to where the puck was GOING TO BE.
I like Andrea Mills comment "too bad for them, not for us".... I like that!
I too have had to turn down 3 sellers that wanted to list with me because they kept telling me "I NEED" and "I WANT" and when I told them "it is not about what you need or what you want, it is about what the MARKET wants to pay you" (I tell it like it is--must be the NY'er in me). So of course they were looking at me with long faces and I said "If you decide to price it correctly, please call me, I would love to work with you, but cannot work with you now if you aren't willing to compromise"....That was a few months back and they (all 3) have their homes on FSBO websites.
I was thinking to myself "there goes another one, am I going to get a seller willing to price it right?" so now I will start thinking like Andrea and say "too bad for them".
Thanks Andrea!
I will be there. I have attended a couple of virtual conferences with Jennifer and Borino, and they are worth the time. But Borino makes me jealous by attending from the deck of his house overlooking the ocean!
Ann G. - I will actually address this issue during my segment - not the overpricing, but how to communicate your bad news without alienating the seller in the process!
Ann C. - you and me both, sista!
This is a terrific idea --- although on a Saturday --- when we are usually out and about with clients but I love the web cast idea... ( I have been involved with them for other industries. ) Looking forward to your help!
Great reminder. We need to be honest with our clients and not "sugar coat" the figures and advice. That will mean at times that we will need to pass on the listing...
Jennifer, you are absolutely correct. Unfortunately some sellers are extremely difficult to convince, especially when there have been no comps in their neighborhood for upwards of two years.
It'll be fun to get some fresh tips.
I am looking forward to the teleconference, thank you!
On another note; has anyone had any experience with Lead to Realty, and does anyone know of a good way to get a list of Asset Managers/banks to do BPOs or listings for? Look forward to any comments!
I am looking forward to it...this is exactly what the point of this website should be-it carries over into everyones market. Thanks for all your effort in getting this done!
Thanks Jennifer - I did reblog this and am looking forward to being on your call and bringing others along to join in wiith me. Thanks
Will be out with clients that day - will we you have a podcast available after?
free, free, free, who doesn't like free, that's what people look for in this economy!!
Looking forward to this Jennifer, thanks for helping others.
God Bless, Greg
Holy Moly - I'll bet we have 500 people signed up so far!!! Every time I check my email there are 10-20 more! Now I'm getting nervous... as BB said above, I guess I better figure out this CMA dealio...
Thanks for the newsletter feature, AR Gods!
Thanks for putting this together. Jennifer Allan is the greatest!
Sounds good, see you there!
Hi Jennifer~ Sounds interesting. I may just have to sign up- I like free education!
This is a great idea! I think that the market would be much better if the listings were just priced right from the begining... and there would most likely be less inventory at the same time if agents would learn that "NO" is acceptable in a listing presentation!
Dear Jennifer,
Free is good! Different ideas are great!
Thanks for sharing!
Barbara
Thanks so much for this. Do you have a phone # for us to call yet?
Looking forward to the session. As much as I would like business to come my way I do hope I do not get busy on the 7th!
I too walk away from over priced listings. In this economy it is difficult enough to get a contract on a listing so why have one that is over priced!
I do wish sellers would be as honest with us as we are with them. I have done 3 cma's this past week for people who stated they want to move to a different area or downsize. When I got their and listened to their "motivation" they finally spill the beans and tell me they are filing chapter 13. I don't mind doing an occasional "freebie" but it is getting to the point now that it is either a "freebie" or an unrealistic seller. Give me the good old days!
Looking forward to learning new skills on the 7th.
When I am getting ready to list a property I give the sellers 3 prices
1. How long can you hang on to this property?
2. Lets competitively price it?
3. How fast can you pack your bags and call the movers?
We usually end up with the second option :-)
MichelleHarrisHomes.com
What a great offering! It's what activerain was meant to be. Congratulations on being a very special and generous person.
Cathy Sarmento Cool, CA www.CoolRealEstate.com
Jennifer - What a great idea ! Sounds like a great pow-wow of some of the top bloggers and agents on Active Rain ! We will definitely register and look foward to being there, listening and learning.
Sandy - if you registered, you should have gotten the details of the call with your confirmation... let me know if you didn't!
Keller Williams is doing a charity pancake breakfast that AM but otherwise I would be signing up.
Jennifer, Thanks for your generous offer to share your time and knowledge. I'm looking forward to it!
This is a timely topic for discussion. There are a lot of overpriced listings going nowhere.
Good CMA's involve three critical skills. 1) Collecting and objectively evaluating enough relevant information to come to an understanding of the correct price. 2) Presenting it in a way that is understandable to the seller, especially when you know their initial opinion may differ. 3) Understanding the valid means to maximizing value through repairs and staging, or conversely, the correct deductions in value when not doing these things, which is often more than their cost. Certain elements of functional or economic obsolescense must be correctly adjusted for, relative to the competition (such as poor floor plan or location).
This is a changing market, so I try not to let my past perceptions of value unduly influence the data. In this market, I have found myself examining more current competing properties. I also try to employ some of the latest appraisal guidelines in selecting sold comps. In presenting this information to the seller, I try to let them choose the correct price, if possible. We will sometimes go over the information more than once until they get it.
I illustrate the role of the appraiser in a fair and reasonable manner, and the guidelines they are often confined by, as well as any rreasonable parameters for challenging these, if necessary. When repairs and staging are needed, I try to present two values (with and without repairs) to give the seller the coice.
I try to be empathetic and I don't let it become personal. The reality is that some sellers will never get it. All people are different, and we don't come with an "understanding switch" that we turn on and off. It is our job to do the best job of reasearch and presentation we can. We try to learn from the experience. Then we move on.
This should be a great exchange of methods and ideas.
Terry Hassett - Fort Collins, CO
Thanks to you all for being so generous. I'm looking forward to learning something new from each of you!
Thank you Jennifer. I am looking forward to listening to the conference. There is always an opportunity to learn a new tip! It's great to see Realtor's such as yourself and your colleagues who want to advance other Realtor's professionally. Thank you.
Thank you Jennifer. I am looking forward to listening to the conference. There is always an opportunity to learn a new tip! It's great to see Realtor's such as yourself and your colleagues who want to advance other Realtor's professionally. Thank you. Lucia Gagnon
Jennifer Allan, Author of Sell with Soul-I am definitely going to attend this one. I don't care how much you know,there is always more than you can know. Thanks for sharing this with us Jennifer. Great post.
Thanks for this opportunity. I am looking forward to new ideas!
Thanks so much! I am looking forward to hearing how others approach this.
Jennifer,
You are correct that it takes some pursuasion in the presentation of a CMA, but in general you as an agent are pursuading the client to list with you. This inclues personality, experience, and trust for a seller to list with a realtor. If the trust is not there, such as the seller thinks his home is worth more, then he is not going to trust that the lowered listing price is accurate. Pursuading a seller to trust and list with you can become very difficult in the current economic conditions. I am currently telling all my past sellers, that want to list now, to wait. The data and information that I used to list and sell the property origially is no longer viable.
Thanks for providing a webinar, but will it be available after that date for viewing. I will not be available that day.
Cathy Cooper-Arzola, Indiana
Cathy - great point, and I will be discussing this very thing. I do not believe in persuading any to list with me unless they think I'm the best (wo)man for the job, and in order to think that - they need to trust me.
I'll keep you posted on whether or not we'll have a replay... sorry we'll miss you!
Thanks for the post, Jennifer. I have already registered via Borino and I can't wait. One of my big problems is pricing to sell and convincing my sellers of such.
Marking the calendar now! What I would like to know is who coined the phrase... "I'm giving my house away". because who ever it was... they didn't understand the true meaning of the word GIVE, or we wouldn't hear this over and over again!
This is a problem for many agents...getting the seller to price the home right. I'm always looking for another way to present.
Jennifer, I will be sure to mark my calendar for this. I've turned down 3 listings and dropped one over pricing. I'm hoping to get some good tips.
This is so relevant! Thanks for putting it together. Unfortunately I am unable to attend -- I look forward to hearing what the follow-up will be.
I am sooo looking forward to getting ideas from this. I guess we should all have a moment of silence for Jennifer...there are a LOT of folks tuning in...even experts get butterflies. This is going to be sooo good.