Delivering Meaningful and Successful Listing Presentations1

Delivering Meaningful and Successful Listing Presentations
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Delivering Meaningful and Successful
Listing Presentations
(C7813)

Basics and Beyond Real Estate Institute (S0216)
4235 SE Mile Hill Drive
Port Orchard, WA 98366
360-871-2332 or 800-488-7931

Basics and Beyond Real Estate Institute, October 20,2011

A Washington State approved Real Estate School and course under R.C.W. 18.85

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SESSION 1 (45minutes)
Introduction
Whats Important to Them?
How Will You Meet the Sellers Needs?
As a result of completing this session, you shall be able to:
Name the 3 distinct parts of the listing process
Describe what DNA means as it applies to sellers
List the top 5 priorities of most sellers
Practice the 80/20 rule
Describe 6 areas from which you should ask questions to determine a sellers DNA &
understand why you ask them.

SESSION 2 (45 minutes)
Preparing a Marketing Action Plan
Describing Your Value in the Listing Process
Create a customized marketing action plan
Name things you can discuss with a seller when providing updates
Describe various information sources used by a buyer in their home search
Relay to seller the importance of preparing their home for the market
Describe various staging tips you can share with seller
Convert features to benefits

The Best Price Discussion & Other Discussions
Recognizing and Dealing with the Fear Factor
Understand factors that neither you nor the seller have control over
Describe Market Value
Be prepared to discuss pricing objections
Describe and use meaningful graphs during a presentation
Know the keys to a successful presentation
Know 2 reasons for commission objections and how you can prepare for them

Exam
To receive credit for this course, students must attain 70% or better on the exam.

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Session 1 (45 minutes)
Introduction

A great listing presentation is like a well-choreographed dance each element gracefully
flowing into the next. And just as there are many different types of dance, real estate
practitioners employ varied styles in their listing presentations. Only you can determine which
style best fits your personality. And as most of us know, listings are the core of the real estate
business; without them there are NO sales! For this reason it is critical that you learn to master
the listing presentation.

The listing process includes three distinct parts the Fact Finding Visit or Call, the Preparation
Phase and the Actual Presentation. Care must be taken from the very beginning of a
relationship whether its from a floor call, a chance encounter at the grocery store or an open
house, or even as you take some personal time among family and friends. Securing a listing
begins with the fact-finding visit or call for it is then that you begin building rapport and qualifying
the seller. By asking the right kinds of questions, you begin unlocking the reasons of why they
want or need to sell. Using a conversational tone, you begin gathering information about the
sellers as well as about the property. You must determine the sellers needs and motivation if
you are to be of benefit to them even though they may be initially reluctant to share what may
sometimes be painful for them. Keep in mind that this reluctance usually has nothing to do with
you personally; it may be due to a fear that you have had nothing to do with. Maybe they just
dont know you well enough (yet) to trust you. You must win their trust. This process of
uncovering their needs, expectations and motivation will continue throughout the entire listing
process.

So what defines a powerful and effective listing presentation? Some
might say that you have given a great presentation any time your prospect has decided to list
their property with you. However, according to Bill Brooks who wrote an article entitled Do You
Know How to Deliver An Effective Sales Presentation, the sellers deciding to do business with
you may have nothing to do with the quality of your presentation. Maybe it was your timing that
performed the trick. Maybe you gave your presentation directly on the heels of a poor
presentation by a competitor. Perhaps you agreed to list their home at a higher price or you
were willing to accept a lower commission.

An effective, meaningful presentation is at the very heart of professional selling!
However, without input from your prospect it is impossible to make the most meaningful
presentation you can. You must first discover their DNA (Desires, Needs and Ability to
Perform).

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To achieve success there are three essential issues that must be dealt with:
Pre-call Planning and Preparation
Accurate questioning and targeting of precisely how your service will address their
situation and needs. Remember, its all about them and satisfying their needs. Instead
of listing a bunch services, you must be prepared to show them how these services will
benefit them.
Your depth of knowledge

If your service is not something that clearly addresses your prospects situation, Brooks
advises, dont even make the presentation. If there is not a good fit, move on. There is nothing
worse than a salesperson who continues to joust at windmills that arent there. There are lots of
other situations where your service will fit.

The primary key to a successful presentation is excellent prospecting! When you have an
ample number of prospects to meet your goals, you are in a stronger position to walk away
when you recognized that you cannot meet the needs of a particular prospect.

Bill Brooks has identified ten essentials for a powerful sales presentation.

1. Your presentation must be 100% on target at addressing the prospects specific issues,
needs or problems. You know you have the solution to help your prospects satisfy what theyre
trying to achieve.

2. Your prospects will become engaged physically and psychologically with you, your
presentation and how it applies to them.

3. You consistently stress benefits and positive end-result solutions that your prospects will
receive if they list with you. You dont waste time stressing feature after feature. Rather, you
devote your time to showing them the benefits those features have to offer.

4. You create value for your service. You dont just quote a premature price, for example, that
doesnt translate into value for them.

5. Your presentation will mirror your prospects time frame and schedule not Yours!

6. If you are one of multiple presenters, you should either make your presentation first or last.
Dont get buried in the middle.

7. You must be willing to course correct, adjust or modify your presentation as you move along.
Knowing your listing presentation inside and out helps you to make the necessary adjustments
in a manner that your prospect doesnt even sense course correction.

8. You must have enough depth of knowledge regarding the services you will provide and the
market conditions.

9. You wont confuse your prospects with buzzwords, acronyms or phrases.

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10. You will take the necessary time to review the following points which we will discuss later in
this lesson:
Whats important to them?
How will you meet their needs?
Marketing Action Plan
Your value in the process
The Best Price discussion
Other discussions

What is important to them in the sale of their property?
Various companies have done multiple studies, asking thousands of home sellers what is
important to them. The top five priorities in each of these studies have been:

The Best Price
The Shortest Time on the Market
Convenience
Good Communication (keeping them informed)
Diligent effort by you

Give your prospects a list that includes these top five priorities as well as the following items.
Ask them to rank them in the order of their importance to them with 1 meaning theyre not
concerned and 5 meaning theyre most concerned. By taking the time to complete this exercise,
you will have a much better idea of what to address during your listing presentation.

Brokers Qualifications
Home enhancement recommendations
Marketing/Advertising
Promotion on the internet
Open houses
Avoiding inconvenience
Security of their property
Buyers financial qualifications
Negotiating strategy
Closing costs/Net Proceeds
Handling the details
Post-Sale Follow-Up
Other

So, How Will You Meet Your Prospects Needs?

First of all, it cannot be over emphasized how important it is that you are fully prepared. That
means knowing the market for the area where their property is located.
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You must be willing to use meaningful statistics that back up what you are telling them. Are you
knowledgeable about state, county or city issues that might affect the area? Is the area rising in
value, loosing value, or has it remained relatively the same over a period of time?

Second, you must be able to ask meaningful questions and take notes. The art of asking
questions helps put you in control to help direct how the meeting will go. Your conversation with
them should follow the 80/20 rule. Your questions should take up no more than 20% of the time
while their responses take up 80%. What they have to say to you is much more important than
what you have to say to them. Too many times, Brokers have the reverse mindset and wonder
how they got on the wrong track of understanding their prospects needs and desires. Taking
notes is not only a sign of strength but helps you continue building rapport inyo the future.
Reflecting back on something theyve told you about themselves, their lives, or the property
gives them a feeling of confidence in your abilities and caring about them and their goals.
During this time, its important to adjust your manner and pace yourself to their mood and style.
Although you dont want your presentation to drag on and on (generally no more than 45
minutes), you need to take the necessary time to demonstrate clear benefits of working with
you. And be sure to allow plenty of time to establish and develop rapport.

Dressing professionally, arriving on time, keeping an enthusiastic and positive mind set (assume
the prospects will list with you) are all important for setting the tone of a professional meeting.
Involve them in the process step-by-step by continually asking open-ended questions so you
can draw out the information you need to make a decision of whether you can help them or not.
Its important not to ask questions just to be asking questions, however. Know what youre
trying to discover from your prospect with the questions you ask. Know how their responses will
assist you in determining how to move forward.

Professionals of all types seem to have difficulty engaging in the open-ended questioning
technique. Invariably they want to ask closed-ended questions that begin with is or are, do
or does, can, should, or other words that will garner them a simple one-word response.
But if you are to be successful at determining the DNA of your seller prospect, you must master
the technique of asking open-ended questions. As you continue reading the material below, you
will see sample questions that will help you to both build rapport and to understand the primary
motivation of why this prospect is seeking your assistance. As you begin developing the skill of
effectively asking questions, become aware in your every day conversations with family, friends,
fellow Brokers, acquaintances etc. Try to begin your questions with the six words that will give
you more insight than any others:

Who, What, Where, Why, When, How or Why

Ask, Listen, and Take Action!

So what type of questions will help make a most meaningful presentation? Following are six
areas that you should be asking questions from so that you can determine the prospects DNA
(desires, needs and ability to perform).
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They are:

Emotional Ties Next Location Time Restraints
Financial Considerations Experience Selling a House Family Needs

Following is a sampling of questions you should be asking in each category. Of course, you
must recognize that some questions may be too emotional or private for them to answer until
youve developed the right rapport/trust with them. Also, some questions may mark a starting
point and you will need to ask follow-up questions depending on their responses. Following the
questions listed in each category is a brief explanation of what your prospects responses
should be telling you.

Emotional Ties sample questions:

1. How do you feel about making this move?
2. How long have you lived in this house?
3. What changes have you made to the home?
4. What attracted you to this house?
5. What features in the home have you enjoyed most?

Their responses to these questions will help you to know their feelings. It will also help you
establish selling points to prospective buyers and in your marketing material. It may even alert
you to possible RED Flags that will need to be worked through as you move through the listing
process.

Next Location sample questions:

1. What have you liked about living in this neighborhood?
2. Where are you moving?
3. Do you have a home already selected?
4. What areas are you considering?
5. Are you working with a broker in the search for a new home?
6. May I refer you?
7. May I assist you in the purchase of your next home as well as in the sale of this one?
8. How do the homes compare in your new area?

Their responses will help you discover whether they need referral assistance or maybe you can
represent them in the buying side of their new home.

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Time Restraints sample questions

1. How soon do you need to move?
2. What will you do if this property doesnt sell?
3. When will it become a problem for you if the house isnt sold?
4. What will your company do to help in the sale of your home?
5. How long did it take to sell your last home?

Their responses will assist you in pricing. Be prepared to offer solutions. Also, they will prepare
you if they receive a low offer to determine if its beneficial to accept or continue making 2
payments.

Financial Considerations Sample questions

1. What do you know about recent market activity in the area?
2. What will you do with the proceeds from the sale of your home?
3. Who, in addition to you, is on the title or has a deed-able interest?
4. How will you finance your new home?
5. What do you estimate the monthly cost of holding this property to be?
6. Realistically, what do you think is the best price obtainable for your new home?
7. How did you decide on that price?

Their responses will ensure you have the right person(s) signing the listing and subsequent
Purchase and Sale documents. These questions will also help you in knowing whether you are
working with a sophisticated seller.

Experience Selling a House Sample questions

1. What experience have you had selling previous homes?
2. What experience have you had with other Brokers?
3. Have you sold a home For Sale by Owner before? How was that experience?
4. How did you select your last broker?
5. Are you interviewing with other Brokers?

These questions help you understand what they are looking for in an agent what are their
expectations? They will also help you not make the same mistakes previous Brokers they were
unhappy with have made.

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Family Needs Sample questions

1. When did you last sell a home?
2. How does the family feel about moving?
3. Who will have the most difficulty adjusting?
4. What are your childrens expectations of their new home?
5. What family activities do you enjoy that may conflict with showing the home?
6. Day care issues?

These questions will tell you whether you might anticipate resistance with showings.

To earn a deep level of respect and trust, you need to start every relationship with the right skills
a caring manner, a confident air and your diagnostic tools. Diagnostic tools may include
simple items like a pad of paper, a calculator, your past client experiences, personal
experiences or memories. The most powerful diagnostic tools will be the questions you
ask. Begin with general questions, and then based on the answers they give you; begin to
narrow your questions down to where you readily determine the right solution for the prospects
needs.

Session 2 (45 minutes)
Preparing a Marketing Action Plan

What Sellers Want Most From Real Estate Professionals!

One way of meeting a prospective sellers needs is to deliver consistent, predictable, reliable
performance. But just saying that this is what youll deliver isnt enough.
Help find a buyer for home
22%
Help sell the home within a
specific time frame 25%
Help seller market home to
potential buyers 16%
Help price home 16%
Help with negotiations &
dealings with buyer 4%
Other 2%
Help with paper work,
inspection & settlement 3%
Offer home enhancement
advice 10%
Help Sellers see homes to
buy 1%
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Think about how you can stand out from your competition who no doubt are also making these
promises. How can you GUARANTEE them your top-notch service? What will your guarantee
consist of? How can you make it set you apart?

Following are some examples of things you can include as part of your guarantee:

a) Marketing promise to develop a marketing plan that will utilize proven techniques to help
sell their home quickly, and for the best possible price. A Customized Marketing Plan might
consists of a thorough Competitive Market Analysis to help determine realistic price and terms,
a customized, written Marketing Action Plan, Home Enhancement Guidance, Promotion
through your MLS, and other brokers, Direct Marketing, Target Marketing, Yard Sign,
National, Regional, Local Advertising (print & internet), weekly or monthly Marketing Activity
Reports. Although most Brokers promise to perform some of these action, you can set yourself
apart by guaranteeing your services through a Customized Marketing Plan.

b) Customer Service whether before, during, or after the sale, be
committed to meeting their needs in a professional and timely manner. Discover how often and
by what means they wish you to provide them timely and personal responses to their inquiries
and updates. Tell them what actions you will take when a purchase offer is made. Explain how
you will constantly review the details to ensure the sale closes with minimal stress on them.

c) Counseling Service explain how you will represent their interests with professional and
reliable guidance throughout the entire transaction. This begins with providing them a realistic
market analysis and continues as you guide them with preparing their home for the market,
negotiating to get them the best price and terms and decreasing the likelihood of the sale falling
through due to unexpected surprises. If you have earned industry designations, take the time
to explain how your knowledge (as a result of the studies you have taken to earn the
designations) will enhance their overall selling experience. If your company has a Concierge
Service, explain how you can recommend preferred companies to assist with any repairs. And
what about counseling them on the benefits of a home warranty program. There are so many
aspects of counseling service that you provide but unless you tie the benefits gained, you are
only providing them a list of services that have no real meaning to them. Take the time to learn
what you and your company have to offer and then demonstrate its benefits.

Your Seller Guarantee should also indicate that you will acquaint them with the home finding
and buying process. Use graphs like the one shown below in your presentation to visually show
them what you are trying to tell them. Remember: a picture is worth a thousand words. You
can secure updated information about buyers, sellers and other professionals, including graphs,
from the National Association of Realtors.

Where Buyers First Learn About the Home They Purchased

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When designing your Marketing Action Plan, you should include not only the action you will be
accomplishing but also your proposed target date of completion or if on-going, the interval
proposed target dates.

Actions you may want to include on your WRITTEN Action Plan may include:
Installing a lock box
Installing a For Sale sign
Placing information on local, company web sites
Submitting information to your MLS
Promoting listings at office sales meetings
Holding an office preview
Setting up a Brokers Tour
Holding a public Open House
Preparing Just Listed property flyers
Distributing JUST Listed notices to Target Areas and other Brokers
Promoting the new listing on various web sites
Initiating a property web site address, complete with photos and descriptions.

Many of these you already do, but formalizing your actions into a written Action Plan not only
sets you apart from other professionals, but provides your prospective seller a well, thought-out
plan for your marketing efforts and a means for you to communicate those actions to them.

Your customized Marketing Action Plan may include a well-staged open
house. This can be a powerful way to show off a sellers property to interested buyers. To
ensure the sellers home is prepared for such an event, you will want to include guidance telling
them what they can do to make their home stand out. If you decide to include an open house
(or Brokers Open) in your marketing plan, be sure to tell your sellers how you plan to
aggressively promote the open house so as to attract more buyers. Be sure to schedule open
houses when you feel you can gain the greatest impact on the market.
Internet 24%
Home Book/Magazine 1%
Knew the Seller 3%
Other (less than 1%)
Real Estate Agent
Yard Sign 15%
News Ad 5%
Builder 8%
Friend/Neighbor/
Realtives 8%
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What will the property promotion portion of your Marketing Action Plan look like? What
will you include and how will you demonstrate to your prospect how your method of property
promotion can benefit them? Certainly explaining how your national and/or local company web
sites will expose their home to buyers all over the community, the state, the nation or even
internationally should be a part of promotion efforts. Exposing the property information through
the local MLS will provide immediate access to other local professionals who are working with
buyers. And, using the NAR statistics that describe how buyers first learn of a home for sale
may assist you in demonstrating the advantages of using digital media over print media.

Global or Regional Referral Networking

Referral networks generate buyer contacts from around the globe through a vast, internet-based
referral network.
What type of company referral network does your company participate in that you can promote
as a benefit? Referral networks can provide buyer referrals quickly and efficiently. If your seller
is moving to another area of the country, do you have the capability of providing them home
pricing comparisons in other housing markets or can you refer them to a reliable Broker in their
new location?

If you belong to a national/international company, be sure to tell your prospects about the
benefits. If your company advertises on network and cable television, explain the benefits. If
your company has a good public relations program, explain how local, national or regional public
relations can create excellent name recognition thereby driving potential buyers to your doors
and web sites.

Although most sellers do not object to having a yard sign advertising their home for sale, if they
choose not to, its important to explain how this effective advertising tool promotes their home
24/7. Calls generated from yard signs come from prospective buyers who are already
interested in their neighborhood, have seen the property (from the outside), and are eager for
more information.

Another recent NAR statistic indicates that 24% (and climbing) of home buyers report first
finding homes on the internet. Does your web site make finding a property online easy? What
makes it easier; what special tools do you have that make it easier for buyers to find a home
directly from the homepage? Is your site rich in information? Does it contain large photos,
slides shows, virtual tours, detailed data that helps the sellers home stand out to buyers? Does
your web site have an image-based mapping system that allows buyers to visualize their
property in relationship to the rest of the neighborhood and region? Can buyers save their
searches and return to them later (like using a shopping cart)? Can you demonstrate to sellers
how when someone requests additional information, you can get back to them almost
immediately and how that is beneficial to them? What other functions does your web site offer?
Can you demonstrate how these functions will benefit the exposure of your sellers property?

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Your Marketing Action Plan should also include full, written disclosures
on the propertys condition as this is essential to the successful closing of a sales transaction. A
discussion about a sellers disclosure is important because complete disclosures attract more
buyers by building buyer confidence and peace of mind. It also makes it clear to buyers that the
price of the property reflects its disclosed condition. Disclosures also help reduce
misunderstandings that can lead to delayed closing, renegotiation, and even litigation.

Home Warranties are another tool that can enhance the marketability of a
sellers property. Contract guidance is a major service that you provide and advising sellers
about the benefits of a home warranty program is a part of that guidance. Let the seller know
how a warranty can increase the marketability. For example: oftentimes, they will be able to sell
their house faster and for a higher price if it comes with a Home Protection Plan. Explain how
home warranties are a popular feature for attracting buyers it builds buyer confidence by
providing repair-or-replace coverage for major home operating systems and appliances for one
full year after closing.

As mentioned earlier, personal touch and timely responses are important to most seller
prospects. Tell them they will hear from you regularly on the progress of your marketing
activities. Some things to talk about during these updates include
Results report the results of events such as open houses and property showings.
Trends discuss current trends in buyer activity, interest rates and competitive prices.
Suggestions share suggestions from other real estate professionals who have
previewed or shown the property.
Progress weekly progress reports on the promotion and sale of the property.

Be sure to discuss, at your initial presentation, how often they want to hear
from you and by what format mail, email, texting, telephone etc).

Information Sources Used by Buyers in Home Search

Many sellers are unaware of where buyers begin their home search. By providing them graphs
(similar to the one shown below from NAR studies), you can educate them about why you
choose the sources you do for promoting their home. Although the internet is fast approaching
the level of real estate experts, your fellow Brokers are still the primary, initial source. Their
education and experience in local matters will undoubtedly keep them in the forefront of
information resources.

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Developing a custom tailored home enhancement plan is another aspect of your Marketing
Action Plan. By honestly advising them about how to show off their homes best features, you
can help make a dramatic difference in how quickly their home sells and the price they can
obtain.

Take the time to review with them that within 15 seconds a buyer has developed an opinion of
their property. This is why you need to help them look at their house through the buyers eyes
and suggest that they make changes and enhancements that establish the right first impression.
Many changes that you suggest will require only a minimum amount of time, effort and/or
expense to complete. But sometimes, the simplest changes will make their house stand out
from the competition. Depending on the home and the sellers, you may even want to suggest
they hire a professional stager (if you are not a certified stager yourself). And if you are, what
an excellent opportunity for you to demonstrate the benefit of them hiring you to list their
property.

One way that you might differentiate yourself from other Brokers is to include in your Marketing
Action Plan tips that will assist them with preparing their home for the market. Even if you are
not a certified Staging Specialist, your ability to help sellers present their home in its most
favorable light, will not only set you apart, but help the sellers home sell faster. Following are
some tips of the staging trade that you may want to incorporate into your Marketing Action Plan
and share with your prospective sellers once theyve hired you to list their property.

De-personalize your home you want possible future buyers of your home to visualize
this as their home
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Real Estate Agent 85%
Internet 80%
Yard Sign 63%
News Ad 55%
Open House 47%
Home/Book Magazine 34%
Builders 26%
TV 11%
Billboard 9%
Relocation Company 5%
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o Take down family pictures
o Remove memorabilia, collectors items and personal antiques
De-clutter your home now is the perfect time to throw away or sell items you wont be
taking with you in your move.
o Clear countertops
o Take books off bookshelves
o Remove artwork, pictures, coupons and other clutter from your refrigerator
Get organized you know people love to take a peek, so make sure what they see looks
presentable and organized.
o Organize cabinets and closets
o Put items in bins and nicely stack in closets
o Make cabinets and drawers clean and well put together. Silverware and dishware
should be nicely placed.
Minimize your furniture keep your space open and neat and allow for people to move
about.
o Some furniture may be your favorite and going with you in the move, but not right
for showing your home, so look at renting a storage unit.
Repair minor home injuries no one wants to see even the smallest of problems when
looking at a potential home.
o Fix leaky faucets
o Repair any holes or damage to walls
Replace burned out light bulbs
o Update paint jobs and look and change wall colors to natural and neutral, even if
purple is your favorite color.
Keep your house spic and span no one wants to walk into a dirty house and see all the
cleaning they have to do upon moving in.
o Keep interior of refrigerator clean and organized
o Countertops in bathroom and kitchen should be sparkling
o Get rid of all old rugs and towels
o Vacuum regularly
o Clean windows, draperies and blinds
Keep exterior presentable if they dont like what they see on the outside, they might not
make it through the front door.
o Keep lawn mowed
o Plant fresh flowers
o Wash down walkway, exterior windows, deck and door
Other showing conversations should include a discussion about
o Securing jewelry, cash, RX and other valuables
o Leaving the house while your house is being shown
o Referring people who are not accompanied by an agent and who are asking to see
their property, to you so you can pre-screen them.
o Saving business cards from all Brokers who show your property.

HOME-WORK EXERCISE
Take some time when you have completed this lesson to name at least five things that you bring
to the selling process that differentiates you from other real estate professionals. Then describe
the benefits they bring to your prospective sellers.

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Finals words about a Marketing Action Plan
Its not enough that you accumulate a list of things you have to offer prospective sellers. You
must turn this laundry list into benefits that will clearly address each sellers situation. Until they
understand the benefit, it has no real meaning to them. We all know that what one seller seeks
from you will not be same as others. You must conquer the ability to ask open-ended questions
to aid you in identifying what each sellers specific needs are. Then, you can take that laundry
list and plant firmly in your mind how you will discuss each item as a benefit for your prospective
seller. Using a tool like a Marketing Action Plan for each seller, you will be able to guide your
discussion showing the sellers your value in the listing process puzzle.

The Best Price Discussion
Too often, there is this mistaken concept that real estate professionals dictate the best
price obtainable for a sellers property. Though we, as professionals, know this isnt true, too
often our sellers have difficulty separating the idea that buyers, not us are in control of pricing.
You must be prepared to talk about price during your presentation and you must find out what
the seller is thinking when it comes to pricing. Be careful not to anticipate what you think the
seller might say. Instead take the time and effort to ask them. As David Know so eloquently
puts it it can be fatal to roll over and blurt out a price. They have a price in mind (even if its in
the back recesses of their mind); its up to you to draw out their thoughts.

Having an overpriced listing is not only embarrassing, but its also unprofessional and
unprofitable. When you have priced a listing correctly, you have a sense of pride; youre
confident and relaxed. You are energized about promoting a listing that you are confident will
sell at the price you recommend. You dont have to worry about how youre going to approach
the seller 30, 60, 90 days or more into the listing period to request a price adjustment. You
wont dread having to check in with the seller with your weekly update only to tell them theres
been no action!

So why dont we take the time to have the Best Price Discussion with sellers? One reason
might be our fear of confronting the seller. Of course, you must be tactful, but you must also be
assertive in addressing the price. A piece of advice from David Knox is to always question their
position; never defend your own. When you do a pricing presentation that blames the market,
you dont have to make it your opinion.

Some sellers feel you have a vested interest in having the home sell quickly so they may not
trust what you have to say in your presentation. They may object with such comments as:

o Another agent said theyd list it higher!
o We can always come down
o Couldnt we try it for a couple of weeks?
o But we have made so many improvements in it.
o But we paid $____ for it.
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o They (the buyers) can always make an offer!

Whatever techniques you use, do so with caution, tact, and compassion. Owners are not so
unusual to want as much money as they can get for their home. And you owe it to them to get
as much as the market will pay!

When discussing price with sellers, they must understand that buyers (just as they were at
one time) engage in comparison shopping. They are not going to pay more for a property than
they might pay for another similar one. The sellers must be willing to price their home so as to
attract enough attention among buyers to generate showings and offers. Your Competitive
Market Analysis will give you a solid foundation for helping them set a realistic price for their
property. It will reveal what buyers are willing to pay, what properties their home will be
competing with and what buyers are unwilling to pay under current market conditions.

You must be able to discuss with them what affects the market value of their property. In doing
so, you will be conveying that you and the sellers must deal with some factors that are given
in other words you or they have NO Control Over!

For example: Neither you nor they have any control over certain physical qualities of the
home things like its location, its age, the size of house or lot or the floor plan or architectural
style. Certainly, they can move the house to another location, they can update it, they may add
on and change the floor plan but to what expense.

There are market conditions that neither you nor they have control over either. For example:
interest rates and availability of financing, buyer demand, prices of recently sold properties,
state of the economy, and seasonal demand. Competition is another factor that neither of you
have control of. The number of similar properties for sale; their prices, financing terms, location
and physical condition are all things that are beyond your control.

In addition there are factors that have NO affect on the current value of a sellers property. How
often have you heard a seller say, but I originally paid $__... or I need $___ proceeds from the
sale. Or maybe theyve been talking with a neighbor or family member who have freely offered
their opinion as to the propertys worth. None of these has an affect on what a buyer is willing to
pay.

MARKET VALUE
Its all in the eye of the viewer

Appraiser Buyer Lender Tax Assessor Your view

As shown in the pictures above, a property can have many values. Certainly these examples
are on the humorous side but they give you and the seller an idea of what people are thinking in
relationship to value. In addition to all these views or values, there is also what is called market
value.
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This is the best price obtainable and can only be determined by testing the market and
challenging the competition. In the end, the market dictates the value based on current
conditions, number of home buyers, financing available etc. The price at which the seller
chooses to market their property will be an estimate of the test results once their house is
placed on the market. At this point you are ready to introduce them to your Competitive Market
Analysis (CMA). Your CMA focuses on properties on the market competing for buyers
attention. It also examines houses that have been recently sold and those that did not sell
giving them a fair idea of what buyers were not willing to pay. Let them know that you will assist
them in determing the most effective list price for their property.

Your counseling must include letting the sellers know that if their property is priced right, more
buyers will be interested when it first hits the market. The higher a property is priced above the
realistic market value, the more time it will take to sell and less interest it will attract. Let them
know that buyers wont knowingly pay too much. They want a good deal just as they did when
they were buying. They dont want to pay for a sellers mistakes for example overbuilding in
an area that wont support it. They also dont care how much a seller needs to net and they will
compare. Since mortgages are based on fair market value, not the sale price, more buyers will
be able to consider their property when it is priced competitively. Lenders rely on independent
fee appraisers to verify that a sale price is at fair market value. Therefore, if a property fails to
appraise at fair market value, it will either force the buyer to make up the difference in cash
(which most wont) or cause the sale to fall through or require the seller to reduce the selling
price. When having these discussion with a sellers, its always a good idea to preface the word
LISTING with SALEABLE.

When determining the best saleable price, there are four general areas you should consider:
Location
Condition
Terms
Sellers Motivation

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I encourage you to review, again, the questions discussed earlier in this lesson relating to a
sellers emotional ties, their next location, their time restraints, financial considerations,
experience selling a house and family needs as the responses to these questions will assist you
in better understanding your prospects motivation. Review the sellers expectations regarding
price. Make them defend any vagueness. Are they flexible? What happens if the house
doesnt sell? Be sensitive to their hopes and dreams but be realistic too!

As you discuss your Competitive Market Analysis, make them a part of the pricing discussion
vs. talking at them. Dont be afraid to ask them what they think the high/low price range should
be. Dont be afraid to ask them where they want to position their home given the numbers
theyve just looked at? Below market, At Market, Above Market!

Pricing Objections

Earlier in this part of the lesson we discussed a few pricing objections. At this point, Id like to
share with you David Knoxs (DK) responses to these objections. Obviously, this is only one
way of dealing with each of the objections but I present them to provide you with food for
thought on how you might handle each of them.

When a seller says to you: Another broker said theyd list it higher
DK: Inform the sellers that their mission is to select the best agent, not the best price. A real
estate agent has no control over the market, only the marketing plan. Never select an agent
based on price.

Mr. and Mrs. Seller, I am here because I want you to hire me to market your home. I am
accustomed to being in competition with other agents. If you chose me I want it to be because
you feel I am the best one of handle the marketing of your home, not because I said the highest
price. If you dont feel that I am the best, then dont hire meno matter what price I say. If you
hire an agent you like least, but says the highest price, youd be overpricing your home with the
least qualified agent. If you are going to over price your home, do it with the best agent.

This is powerful statement to make to owners. Make the point that they should hire you
because youre the best, not the most agreeable on price.

When a seller says to you: We can always come down
DK: Show the history of an overpriced home. Illustrate the stair steps down from the high price
through market value down to a sale price UNDER market value.

Heres a home that started out at a price of $x,xxx over market. It didnt sell so they reduced
the price. It didnt sell so they reduced it again. It still didnt sell so they reduced it again. And
finally they reduced it to market. What do you think happened? (Owner: I suppose it sold?)
No, it still stayed on the market. Do you know why? What question do you ask me at the front
door of every home I show you? (Owner: How long has it been on the market?) You ask me
that because if its been on a long time you can buy it for under market or something is wrong
with it. Thats what happened to this home. It sold for $x,xxx below market price. What do you
think wouldve happened if it were priced right on the first try. Yes, you can come down, and as
you can see, you will have to. Is this the way you want your home marketed?

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When a seller says to you: Couldnt we try it for a couple of weeks?
DK: Illustrate that the majority of market activity occurs in the first two or three weeks on the
market. Use a chart that shows a curve of high activity in the first two to three weeks. Show
them that this is the worst time to overprice since your best customers see the home.

As you can see by this chart, most of the marketing activity on a new listing occurs in the first
two weeks on the market. So when you ask, can we try it for a couple of weeks, look what
youre doing. Youre overpricing your home during the period when your best buyers show up,
then lowering it after theyre gone. Its like having a dinner party on Saturday and have the
caterers come on Monday. I recommend that you price it right on the first exposure to the
market.

When a seller says to you: But we have so many improvements in it
DK: Most improvements are made for enjoyment, not resale. Cause the owners to admit this
by asking the owners:

If you had known at the time you were making those improvements that you were going to
move today, would you still have made them? (Owner: No, we probably wouldnt) May I ask
why not? (Owner: because we couldnt get our money back).

Another important point is that structures and improvements to it do not appreciate in value. It is
the real estate the ground beneath it that appreciates. Where is it said that you can buy an
item, install it in your home, decorate it to your taste, use it for a few years then ask a new buyer
to pay you for it? The questions that determines the value of an improvement is: if the item
were not there right now, how many buyers would add the same improvement and pay what you
want to charge?

When a seller says to you: But we paid $xxxx for it
DK: This is the owners attempt to link cost to value. There is no relationship between cost and
value. What you paid for something has nothing to do with what its worth today. If you
purchase stocks, you clearly understand this principle. A technique to illustrate this to owners is
to ask:

Mr. and Mrs. Seller. I hear you say that since you paid a certain amount for this home that the
subsequent selling price should be based on that. Is that right? Let me ask you a question that
is realistic in many situations. If you had inherited this home through an estate, therefore your
cost was zero, what would you try to get for it today? (Owner: As much as we could get). Why,
you wouldnt have paid anything for it? (Well, that doesnt matter)

When a seller says to you: You can always make an offer
DK: Mr. and Mrs. Seller. The only way a qualified buyer can make an offer on your home is if
they see it. The problem is, most buyers look up to their price range, peek a bit over, then focus
only in their price range. By overpricing, you put your home into a price bracket where they
wont look. (Show them your computer printout and how their home will be invisible to a buyer
by not being in their range). The buyers who do see your home will be able to afford your higher
price, however, they will not be interested in it. The wrong price attracts the wrong buyers.

Realtor Magazine presented a series of articles to help both new and experienced
practitioners master the basics of the business relating to getting listings.
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You must be able to confidently answer sellers concerns and help them understand how their
local conditions affect the pricing and sale of their property. They suggest using sample scripts
like the one below to prepare yourself for your next listing appointment. Obviously, you can
adapt any script within this lesson to meet your personal style and comfort level. But before you
dive in, keep in mind some helpful hints for dealing with tough objections, especially those
dealing with your commission.

Think on your feet You shouldnt rely wholly on scripts to see you through difficult
situations. You have to be able to think on your feet.
Dont make assumptions This is best done by staying focused on what theyre saying
and feeling. Dont assume you know the answer when a client is only mid-way through a
question.
Take an education approach Overall, the most effective way to handle objections is by
educating home owners about market conditions and about how you will help them sell
their home. The key is not to sound defensive. Get prospects to readjust their thinking
while still allowing them to save face. By educating them, you empower them to make a
more confident decision.
Write your own scripts Based on what youve experienced in your market, you more
than likely can think of a few objections that always seem to crop up. Write them down,
and then devise a script that you can practice before your listing presentations.

A couple of seller objection scenarios:

When a seller says Were not ready to list because wed like to find a new home
first. You must first ascertain whether they will need to sell their home in order to move
up. If they say, yes

You: OK, lets talk about that. If I help you find your dream home before youve sold your
current home, and we make an offer, our offer will be contingent on the sale of your property.
Most sellers dont want to deal with a contingency, so making this type of offer puts you in a
weaker negotiating position. That may mean that even if the sellers accept your contingency
offer, youll have to pay more.

If they still say to you that it wouldnt hurt to look at some homes first

You: OK, Lets talk about the other side of this equation the selling side. If youve signed a
contract to buy a home and then you put your home up for sale, youre more likely to be willing
to take less money for your current home because youll want to get your home sold in a hurry.
I know you want the most money possible for this home since youre planning on buying a larger
place. Do you see how finding a new home before putting your current home on the market
may lead to you losing on both ends of the transaction?

If they feel they wont have enough time to find the home they want if they list their home first

You: As you probably realize, home sales are slower than they were a few years ago, so it
could take XXX days to sell your home. I think it will be less because youve price it right, but
you cant be certain. Plus, even after your home is sold, it usually takes XX days to close the
sale. Although I understand you dont want to have to move without finding a new home you
love, I think it makes sense to get your home on the market before you start your search.
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When the seller says: Someone else will do it for less.

You: Yes, you can probably always find someone who will take your listing for less money.
However, the amount of money you pay is directly related to the marketing services provided to
get your home sold quickly and for the highest value. Is that your goal?

The seller may agree with you on that point but then add that its the net from the sale thats
most important to them.

You: Of course. Your net matters greatly to me too. I have a lot of experience selling homes
in this neighborhood, and I believe that my marketing strategy and negotiation skills will lead to
a selling price that will make you very happy.

The seller may at this juncture tell you that they know other companies are willing to do it for
less and theyd save money.

You: I encourage you take a close look at what the other companies are going to do for the
fee. Usually a lower fee translates into less marketing dollars to promote your home, which isnt
a good plan in this market. In the end, youre not saving money when you pay a lower
commission. Youre actually missing out on market exposure. And thats the one thing that is
going to get your property sold right now.

The seller may ask you what you think its going to take to get their property sold.

You: It will take more than simply adding the home listing to the MLS. I am prepared to handle
all the details, from suggesting simple home improvements that will impress potential buyers, to
hosting open houses, and crafting an online marketing plan that is customized to this property.
My goal is the same as yours attract serious buyers and sell this home for the highest dollar
amount.

(Sources: Darrly Davis, Darryl Davis Seminars Inc; Tom Ferry, Success Strategies Institute; Joe Meyer
Presentations Inc; Marilyn B Schwartz)

Summary Sellers need to understand that their house cannot sell for more than the best offer
obtainable from the best buyer available on the current market. By thoroughly testing the
market and aggressively challenging the competition you will determine the true value. The
Best Buyers available NOW are looking at properties and comparing them. For this reason,
pricing it right from the beginning is critical to the overall success. Its also important that the
home get as much exposure as possible, especially if your local market is experiencing a
market where buyers have lots to choose from.

Other scenarios that you must be prepared to confidently deal with sellers include:

1. Sellers who believe that the way they live in the house is the way they can sell the house.
2. Sellers who unprepared for low appraisals.
3. Sellers who know little about negotiating. They may bring expectations and anxiety that
make everyones difficult.
4. Sellers who have unrealistic demands concerning showings, advertising and marketing.
5. Broker and sellers who may have personality conflicts
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6. Sellers who are unaware of all the closing costs.

Solving these problems gets sellers homes sold faster, for more money, and with less stress.
Its best to deal with these issues early on in the relationship. When building a listing
presentation, include specific questions that will help you determine whether these are issues
you will need to address.

If they are uncooperative on price, prepare a very thorough competitive market analysis. Show
them the criteria you used to select the properties you chose for the final CMA. If they believe
they can continuing living in the house the way they have while selling it, explain how clean,
organized, uncluttered homes sell faster because they allow buyers to see more of the house
helping them visualize where their things will go. To prepare them for the possibility of a low
appraisal, review the entire pending process, from offer acceptance to closing, especially the
inspection and appraisal process. Review the negotiating process you will use from the time an
interested buyer looks at their home to when an offer is accepted. Be prepared to discuss how
you will be their advocate. If their unrealistic about showing, advertising and marketing
demands, demonstrate to them proof that what you do works be prepared to showed them
your selling statistics. Personality conflicts can be dealt with in most cases by youre being self-
aware. Know your personality style (strengths and weaknesses). Recognize others personality
types and figure out how you can adapt. The best way to deal with letting sellers know about
closing costs is to ask them for their mortgage balance(s). Prepare a net proceeds sheet (you
may even want to inflate the numbers a bit, so you can assure them it will likely be less.

A lot of these issues can be covered in conversations with owners over the phone before
making a listing presentation. Top practitioners have spent years interacting, building,
rehearsing, presenting and improving their presentations. Being able to solve these and other
problems is generally a result of the extra effort put in during the preparation stage.

Other Discussions

During the remainder of this course, we will focus our attention on other discussions you should
be having with your seller. They include:

Important factors in choosing an agent to represent you
Working with buyers
Words of caution
Closing the sale

Important Factors Sellers Use in Choosing a Broker to Represent Them

A variety of factors influence a sellers decision to list with a particular real estate professional.
The graph below depicts a number of factors (from NAR when you have discussion with your
seller, you will want to have most recent graph). As you can see an Brokers reputation (or
more accurately, perceived reputation) tops the list. What are you doing to market yourself so
that you have an ever stream of prospects calling you, emailing you, knocking on your door? A
Brokers honesty and trustworthiness are next. Again, this might have a lot to do with perceived
ideas of your honesty and trustworthiness but its really about how you connect with people.
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Do you have the ability to build rapport quickly? Are you engaging with people when they call or
drop by? The third largest area is friends and family. This is why it is so important to keep in
touch with friends, especially. Do your friends really know whether you are still in business?
Do they even know you sell real estate? Time and time again, real estate professionals lament
about a neighbor down the street who listed with someone else; a friend who employed the
services of a competitor and when asked why, they simply reply Oh I forgot you sold real estate
or I didnt know you were still doing that!

Working with Buyers

Its important to let your sellers know that you will work hard to ensure that buyers are pre-
approved. Let them know how this will be beneficial to them in ensuring a smooth, successful
closing of the transaction.

It is also important to let them know that there are many factors that influence a home buyers
decision to purchase. Again, graphs such as the following should be a part of your presentation.
But know how you are going to use them to clarify your points. Knowing this information is what
makes you an expert in your market place. It conveys to sellers that you best serve them by
knowing what factors influence buyers neighborhood choices and/or what buyers want most
from those who represent them. These are but two of many graphs to choose from the NARs
report on homebuyers. Obviously, the NAR graphs speak from a national level. Using your
multiple statistics you can localize some of the information presented in these graphs. The
visual graphs will help your prospects better understand what you are attempting to tell them.

Factors Influencing Neighborhood Choice

0% 10% 20% 30% 40% 50% 60% 70%
Neighborhood quality 63%
Close to job/school 48%
Close to f riends/f amily 36%
School district 27%
Shopping 28%
Parks/Recreation Faclitiies 16%
Planned Community 11%
Entertainment Venues 19%
Public Transportation 7%
Proximity to Airport 7%
Health Facilities 11%
Other 9%
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What Buyers Want Most From
Real Estate Professionals

A Word of Caution

It is your responsibility to prepare a seller for the reality of the marketing process. This might
include advising them to leave the property when it is shown explaining why its important and
what effect it could have. It might also include your advising them on how to set the stage for
showings, offering them tips that will help make the showing stand out.

Offering words of caution is also an important aspect of your job. You want to help ensure your
sellers understand youre looking out for their best interest. Let them know how it helps them
maintain the strongest negotiating position when they receive an offer Your recommendations
should include what they shouldnt discuss with either the buyers or other real estate Brokers.
Some of these items include:

The sellers reason for selling
Their urgency to sell
Their willingness to consider an offer less than the listing price
Financing terms they might accept
Personal property they might include in the sale
And any other confidential information that would weaken their negotiating posture
Help to find the right house
to purchase 50%
Help with price negotiations
9%
Help with your paper work
8%
Tell you what comparable
homes are selling for 10%
Tell you how much house
you can afford 5%
Help find and arrange for
financing 3%
Help negotiating terms of
sale 13%
Other 2%
Help find renters for my
property (less than 1%)
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Its important for you to let the sellers know that when an offer is presented, you will negotiate on
their behalf to help them obtain the most favorable price and terms. By telling them, you create
more value for your services. You cant assume that they know what you will be doing for them.

You should also let them know that you will work on their behalf throughout the transaction to
help ensure a successful closing. Let them know that your aim is to reach a purchase
agreement that is favorable and protective of them. Explain the process that youll present all
offers in an objective fashion, review and explain their terms and conditions and that youll help
them evaluate how an offer fits their goals. Assure them that you will monitor the progress of
the transaction including the satisfaction of contingencies and conditions and that youll be
available to answer their questions.

Obviously, their satisfaction is your TOP priority. Its important for them to see
that you are ready to go to work for them NOW! Let your positive energy build a bridge between
your presentation and their acknowledging that they want to work with you. And remember that
a formal listing presentation is only a guide. You need to practice it in parts, changing the
sequence so youll be better able to move around as you determine your sellers needs.

Keep your presentation short and sweet. The longer your presentation takes, the more apt your
sellers mind will begin to wander and you begin promising more in marketing and advertising
than you intended. The longer your presentation takes, the weaker is becomes. Keep it short
and focused.

Key to keeping effective presentations
ASK QUESTIONS!
The one asking the questions is the one who controls the conversation!

KEYS to a Successful Presentation

1. Be Prepared Being prepared makes you look and feel confident. Being prepared is not
only knowing your presentation forwards and backwards, but also knowing the statistical
information that backs up your recommendation. It also means knowing about various
programs you or your company has to offer; being able to explain why you use various forms of
advertising over other forms; and being able to demonstrate through your actions that you are
the right person to market their property.

2. Practice - There is a saying practice makes perfect, but author T. Harv Eker says, Practice
does not make perfect; Practice makes Permanent. That means being able to give your
presentation by briefly checking your material not reading it.

3. Anticipate You must be able to anticipate what sellers might ask, especially in regards to
pricing and commission cuts. Youve got to be able to respond without hesitation! He who
hesitates, looses!

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4. Visualize I hope the following story will help you understand how powerful visualizing can
be. I had attended visualization training with Lou Tice, a Seattle visualization guru from
the 1980s and thought Id put his teaching to practice. For months as I commuted by
bus between San Rafael to San Francisco, CA, (Mon-Fri) I would take my seat and almost
immediately begin putting myself into a meditative state. I began visualizing myself
doing pushups, sit ups and a two-mile run all of which were required parts of a military
physical fitness test that I would have to accomplish during my two weeks of active duty
training in the Army. I did no physical preparation for this test only the meditative
visualization! Not only did I visualize myself actually doing these events, but my body
physically felt as though I was doing them. I could feel my limbs tense and relax, my
heart begin beating more rapidly, my breathing become more labored as I continued. I
did this everyday for approximately 3 months. Finally the day came for me to fly to a
camp in Oregon where I would complete my two weeks training. On my decent into the
camp, I blew out an eardrum and was in extreme pain when I reported for duty. The day
after we arrived, we were scheduled to take the Physical Fitness test. I was concerned
about whether I could even perform the required tasks let alone pass it. But to my
surprise, the visualization that I had been doing Monday-Friday for the previous few
months demonstrated to me how strong visualization can be. I maxed the sit ups and
push ups and nearly maxed the time requirements for the 2-mile run.

So, how do you practice this visualization to prepare yourself for a listing presentation set time
aside each day and visualize yourself in front of the sellers. Go over every word in your mind.
See yourself from your arrival at their front door, as you tour the home with them, as you sit
down at the kitchen or dining room table, as you question them about their needs, as you
demonstrate how what you have to offer will benefit them, to your having them sign the listing
documents. If you conscientiously apply yourself to this visualization practice, youll be amazed
at how comfortable, confident, and relaxed you will be when giving your individualized listing
presentation.

Additional things for you to consider as you are preparing your listing presentation.

David Knox teaches that if you have a pipeline of qualified prospects, the more
confidence you will instill in yourself. The more prospects you have, the easier it is for
you to adhere to your principals of not taking overpriced listings or caving into
commission cut demands.
Come from a place of service Remember, people dont care about how much you know
until they know how much you care!
Listen carefully Listen for their motivation, their expectations of you, and their level of
cooperation. If you dont hear, see, or feel positive factors relating to these areas, you
should consider walking away.
Questioning Technique Remember that when you supply the right questions, the seller
will provide the right answers! A good answer evolves from asking many good questions.
Practice asking open-ended questions (in everyday settings) that begin with who, what,
where, when, how, and why. Only then will it become second nature for you to ask
those same types of questions when you are in a listing presentation. A word of caution
be prepared to hear no. It helps you further evaluate the situation.

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Take the time to establish a relationship of mutual trust and respect. Build rapport and
share your values and above all practice active listing skills.
Pace yourself dont be rushed. Confidence in yourself and what you have to offer will
help ensure youve taken the necessary time. But be aware of time constraints your
sellers might have and be cognizant of their body language.
Provide structure by providing structure you are helping your seller clearly think about
what they want and the best way to achieve their goal. It also helps each of you decide
whether you should work together. The ideal client profile is:
o Someone who needs your help
o Someone who wants your help
o And someone who is willing to let you help them.

You may find fear is your greatest enemy. Hopefully, youll learn to recognize and conquer your
own inner fears. The toughest job is when you have to help others admit to and overcome their
fears, so you can earn the opportunity to list and sell their homes for them. Fear is what builds
that wall of resistance we so often run into. You must master the skills to either climb over or
break through that wall.

Dirk Zeller who writes a number of articles for Realty Times says there are two reasons for
objections to your commission rate, and it isnt the fact that other agents are doing it. He
believes we havent taken the time to establish value for our services, and that the seller has a
fear that we havent addressed properly to remove it.

Sellers have FEARS that you must learn to deal with
They fear you as a salesperson wanting to sell them something. Have you mastered
the skill of putting people at ease? Learn to use a relaxed manner and tone of voice.
Use rapport-building comments and questions that show them you are interested in them,
not just their property.
They have fears about making a mistake, making the wrong decision whether its
in choosing you to represent them or the whole selling process. Probe to understand the
root of their fears. It could be a previous bad experience. Maybe they feel they need to
talk with a parent or friends or legal counsel before they make a decision. Having an
understanding of that fear and giving them reassurances that you will protect them to
make sure their fear is never realized handles it for most people. Some people are
paralyzed by having to make decisions. When they say they need to think about it, you
need to find out what they need to think about. You have to isolate the fear and walk
them through the situations and challenges that come to mind, overcoming each one.
Sellers have a fear of owing money, especially in this time of short sales and
foreclosures.
Some people have a fear of change. You will have to sell them on the benefits of the
change. Identify the worst case situation to prove to them that there is a limited down
side. A personal assurance of the next steps and the protection and security you are
offering will usually work well. Sometimes, building a sense or urgency based on the
marketplace, interest rates, or a fear of loss will convince them that the window of
opportunity is open now and might not be as favorable a few months down the road.

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Some fear being cheated and want to get you to reduce your commission. You must
build value for your service to show that, because of your skills and strategy, they will get
more for what they are paying for. You have to demonstrate clearly that even though
they are paying more, they are getting more value.
Some sellers have a fear of acting without sufficient knowledge or reflection. The
best defense for this fear is a good offense. Find out what their decision-making process
is. Understand the timing of when they want to sell and be ready.

All of these fears are born out of a heightened feeling of risk. They are really not commission-
based concerns (though we often think they are). You must deal effectively with the risk sellers
feel toward working with you or any Broker. Focus on assuming the risk yourself or removing it.
Then, give them strong reassurances that they are making the right decision, and that they
should make it now. Focus on reassurance and work to pinpoint their fears and remove them.

During this lesson weve attempted to help you understand the significance of identifying what is
important to your prospective seller and how you plan to meet their needs. Weve shown you a
few ideas of how you can prepare a unique Marketing Action Plan for each of your Listing
Presentations and weve describe ways you can demonstrate your value in the listing process.
Weve also identified ways for you to address Pricing, Commission, and Fearful Concerns borne
by the sellers. We hope you will take a few of the ideas presented here and try them out on
your next listing presentation.

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Name: _________________________________________
EXAM

True or False
_____ 1. The primary key to a successful presentation is excellent prospecting.

_____ 2. The listing process includes 2 parts the preparation and the actual presentation phase.

_____ 3. The DNA of a seller is desires, needs and attitude.

_____ 4. A powerful sales presentation essential is that the prospect becomes engaged physically
and psychologically with you.

_____ 5. One of the top 5 priorities sellers identify as most important to them is a diligent effort by
you.

_____ 6. Open-ended questions begin with the words who, what, where, when, why & how.

_____ 7. The 80/20 rules as it applies to conversations with prospective sellers means you talk 80% of
the time so that you are sure they understand what you will do for them.

_____ 8. Responses to questions about a sellers emotional ties may alert you to possible Red Flags
that you will need to work through.

_____ 9. Time-Restraint questions will help you determine whether you are dealing with a
sophisticated seller.

_____ 10. Questions that may help you to anticipate resistance with showings fall under the category
of Emotional Ties.

_____ 11. The most powerful diagnostic tools you have available are the questions you ask.

_____ 12. Graphs and charts serve very little purpose in a listing presentation.

_____ 13. Your Marketing Action Plan should include both the actions you will accomplish and the
proposed target dates you anticipate accomplishment.

_____ 14. NAR stats describing how buyers first learn of a home for sale can help you show sellers
the advantages of using digital media over printed media.

_____ 15. Home warranties are a popular feature for attracting buyers.

31
_____ 16. A Brokers honesty and trust worthiness was ranked the highest factor that influences a
sellers decision to list with a particular broker (according to an NAR graph).

_____ 17. When you advise a seller not to discuss their urgency to sell or the reason theyre selling,
you are trying to help them maintain a strong negotiating position.

_____ 18. A formal listing presentation should be used as only a guide.

_____ 19. The longer your presentation takes, the stronger it becomes.

_____ 20. The more prospects you have, the easier it is to adhere to your principals of not taking
overpriced listings or caving into commission cut demands.

_____ 21. Not establishing your value and properly addressing fears are two reasons for commission
objections.

_____ 22. Buyers develop an opinion of a sellers property after they have viewed it, inside and out.

_____ 23. Market value is the best price obtainable and can only be determined by testing the market
and challenging the competition.

_____ 24. Its OK to tell sellers that they can continue living in their house the way they have been
(before placing their house on the market).

Fill in the Blanks
25-26 Communication through continual updates is an important aspect of your marketing plan.
Name 2 things you can talk about during these updates: ______________________________
And ______________________________________.

27-29 Name 3 tips (described in this lesson) you can provide sellers to help them prepare their home for
the market: ________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

30-31 There are 3 areas neither you nor the seller have any control over. The first is the physical
qualities of the home. Name the other two: ___________________________________________

And _____________________________________________________________________________

32-35 Name the 4 keys to a successful presentation: ____________________________________,

____________________________________, ______________________________________, and

___________________________________
32

Instructor: ____________________ Delivery Method: Distance Education
MANDATORY COURSE EVALUATION

Name: ______________________________________________ Date: _____________

Please check your answer to each questions YES NO
Did you receive a copy of the course curriculum/objectives?
Did the course content conform with the published description?
Did you read the material in the booklet on the date above?
Did you complete the quiz for the course & use the enclosed answer sheet?
Did you complete this course evaluation and sign the form below?

Why did you choose to take this course? Circle all that apply: Topic Time Cost Ease
or Other __________________________________________________________

Course Evaluation (5 being excellent, 1 being poor) Exc Poor
How useful was the information acquired from this course? 5 4 3 2 1
How current was the information presented? 5 4 3 2 1
How would you rate the organization of the information? 5 4 3 2 1
How would you rate the quality of the material used? 5 4 3 2 1
What is your overall evaluation of this course? 5 4 3 2 1

DELIVERY METHOD (Distance Education) Answers
How many hours did it take you to finish the course?
Was your assessment of your clock hours inclusive of
homework assignments? If yes, then break down the
seat time?

Did the course have periodic measures of time spent
and progression towards completion?

Did the delivery method allow interactivity with an
instructor? Was the instructor available?

Additional comments about the course, instructor or
delivery method.

Would you take another correspondence course from Basics & Beyond Real Estate Institute? Yes
No Why? ________________________________________________

Your Signature: ___________________________________________

To file a complaint regarding any education issues, you can download the Education Complaint Form from
www.dol.wa.gov/forms/620013.htm
Disclaimer: No denial of full continuing education credit for the subject course may occur as a result of completing this
evaluation form

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