How to talk price and value at a listing presentation. Emotional Price V Logical Price. By Ray Wood
A few years back, we invited Sydney super agent Jason Boon to speak at a real estate training event. His one-hour session was inspirational and he said one simple thing that overcomes the tricky issue of price at a listing presentation.
He also talked about the power of a really good database of buyers and how important it is at the actual listing presentation.
When you’re listening to a guy who is consistently in Australia’s top 10, you sit up and take notice.
The script he shared was short and simple and had to do with when he was in a listing presentation with a seller who was asking about price.
Many listings are lost at the presentation because the seller is not comfortable with, or doesn’t fully understand the agent’s explanation around the issue of value and price marketing.
Here’s how Jason handles that: “In real estate, there are two prices. One is logical, where recent sales of similar properties provide a realistic or ‘logical’ idea of value.
The second is emotional; this is where the selling price exceeds the logical price because the buyer (and often buyers) get emotionally involved and will pay a price well beyond what might have been logically expected.
Not only is this a great script at a listing presentation, it also opens the door for you to illustrate your massive point of difference which is your reputation for achieving great prices for your selling clients.
The obvious point of difference to use is that you currently have a database full of emotional buyers.
You then state how you prefer to show the property to your emotionally motivated buyers before sending it to the general market where all the Logical buyers are located.
The buyers on your database are people you have been working with closely.
They are motivated and ready to buy when they see what they want.
You know what suburbs they want. You know how much they have to spend and what properties they have made offers on.
This information is a major selling point and has to be used to its full advantage.
I believe it could be the reason why more sellers will sign with you as the majority of them will be thinking that all we do is take photos, advertise it online and it sells itself.
So try this script at your next listing presentation:
“How about this Mr & Mrs Seller: Now that we know there are two price levels for your property, let’s attract our emotional buyers first and see what happens.
I believe your database can be your most powerful listing tool.
If your listing presentation is supported by a solid pre-listing kit where you have sent the seller some reviews from past clients, it will be even more effective.
It works pretty well for Jason Boon and he makes $40,000 a week!