The Three Pillars to Selling Real Estate
The Three Pillars to Selling Real Estate
Price, condition and marketing are the three primary pillars to selling a property. These three key areas will determine how much your home is worth, how many offers it receives and how quickly a transaction will close.
The three pillars work in unison to create a sum that is greater than each individual part. For example, you could take the most perfectly constructed home, with the best finishes, layout and location and price it well below market value but if there is not a solid marketing plan, it could sit on the market for months or even years!
The same can be said for the condition. A property could be priced at fair market value and the marketing could be phenomenal but if the condition of the property is poor, buyers won’t bite.
The one exception is the price. We will discuss pricing a property in later chapters, but it’s important to realize that the price is generally considered the most important of the three pillars.
Of course, each property is uniquely priced but the general idea is that a property is either priced under, over or at the current market value for its condition. A home could be in horrible shape but at the right price you will likely find a buyer.
Overpricing a property can have the opposite effect. Even if the property is in pristine condition and you have an extremely aggressive and effective marketing plan, if it’s overpriced buyers won’t submit offers.
When the price is too high you will end up wasting your time showing the property to “lookers.” Buyers that have no interest in actually writing an offer, they just want a tour.
The majority of this book will be discussing these three pillars, best practices and how they relate to each other. Even though each property is unique, once these concepts are understood it empowers property owners to position their transaction for success.
In general, the current marketing conditions have the greatest effect on a properties price. This means that the major pillars that can be directly controlled by an owner are the condition and marketing. As we discuss these areas, an owner may decide to make improvements and upgrades to a property’s condition after determining the potential return on investment in the current market.
It’s a delicate balance of the three pillars that allow a homeowner to get the most money in the shortest amount of time. The careful planning and execution of these pillars is the most important secret to sold.
The Emotional Sales Process
Every human is unique; this includes their sense of style, expectations, needs and financial situation. The emotional sales process goes beyond the nuances and simplifies the process from getting a qualified lead to closing a transaction.
Before we discuss the specifics of a real estate sale, we need to touch on the emotional side of selling. After all, every sale is just a series of emotions that cause a person to agree to terms and take actions to purchase.
Depending on the nature of the property you are selling, the particulars of the sales process differ. Generally, these are the steps most sales go through:
To get the sales process started, first you need to make potential customers aware of your existence and offer them information on the property.
Other ways to reach out can be through social media marketing, email marketing, cold calling, attending events, advertising and word of mouth.
RapportBuilding friendships with prospects can make them more receptive to what you have to say. Reach them in a way that is more comfortable and non-aggressive. Understand their needs, what they like about the property and discuss how to make this purchase a win-win.
Educate! Educate! Educate!
Give them information and ideas, which will convince them of the value of your property, why they need it and how to purchase it.
To convert prospects into paying customers, you need to develop a deep connection of trust with that person. They need to feel that the decision is in their best interest and they will get what is promised. This can be done in a rather short period of time and is a skill that can be learned and improved.
Trust goes beyond just believing in the property itself; there are actually three aspects to building trust in the sale:
- Trust in your property
- Trust in your process
- Trust in you
Make sure you are making the prospect feel comfortable with the decision to purchase. This goes back to educating them on the benefits buying the property will have for them. Why they should purchase the property and why they should purchase it from you.
This goes beyond being friendly to an interested party. It’s about connecting with them on an emotional level. This is only achieved by keeping your word and delivering on your promises. Do that over time and you will be trusted and successful.
Purchases are not always made instantly, which is why prospects will take their time in making their final decision. It is best to back off and give them the time and options to help facilitate their decision.
Giving prospects free samples or trials can help them evaluate the property and influence them in the right direction. Have flyers and even blueprints for them to take home. This helps with their decision to submit a great offer.