Make Your MarketMake Your MarketTurning Up the Heat: Turning Up the Heat:

Un-Freezing SellersUn-Freezing Sellers

*Prep for This Week’s *Prep for This Week’s Session*Session*

• Slides 12-16 are automated. Test these slides before presenting this session.

• Print out instructions for Sellers, Sales Associates, and observers for the activity on slides 17-27.

• Print out blank copies of the “Your Home vs. the Home You’ll Purchase” handout for the activity on slides 17-27.

• Have calculators for the activity on slides 17-27.

• Have a flip chart for the activity on slide 28

*Delete this slide before presenting *

The Too-Small HouseThe Too-Small House

Ann and Dave have been married for 5 years.

They live with their two young children in a 3-bedroom home - with only one full bathroom.

Can’t You Imagine How Can’t You Imagine How Their Mornings Look?Their Mornings Look?

They’ve Been They’ve Been Dreaming…Dreaming…

Needless to say, they have been eyeing a couple of larger homes that have been on the market for a few months.

Does This Sound Does This Sound Familiar?Familiar?

They understand that it’s a good time to buy, but they keep hearing that’s it’s a bad time to sell.

They’ve met with three different real estate agents. None of the agents have dispelled the myth that it’s a bad time to sell, so they think they can’t buy the bigger home they’ve dreamed of.

They’re FrozenThey’re Frozen

So Ann and Dave are “frozen” and are staying in their too-small home with too few bathrooms.

They’ve managed so far, so they figure they can stick it out until the market “improves.”

You Can Be Their Hero!You Can Be Their Hero!

Today we’ll introduce a tool you can use to “un-freeze” sellers like Ann and Dave and help them understand today’s unique opportunity for trade-up buyers.

You Might Ask…You Might Ask…

What about the seller who is down-sizing and is frozen? How can I influence them?

Next week I’ll introduce a tool for influencing down-sizing sellers in today’s market.

Let’s get back to today’s focus…trade-up buyers.

The “Move-Up” ToolThe “Move-Up” Tool

This chart illustrates how much sellers will save by upsizing in a down market. Today you’ll learn how to present it so sellers respond to this unique opportunity.

The “Move-Up” ToolThe “Move-Up” Tool

• First we’ll watch a demo of how to use this chart to influence sellers who are hesitant to move up.

• Then you’ll get a chance to practice using it.

• This tool can be used in all price ranges, not just the ones we’re using for these examples.

Your Home vs. the Home Your Home vs. the Home You’ll PurchaseYou’ll Purchase

Scenario: Phyllis and Steve Carney are expecting a set of twins to be born later this year. The house they currently own has two bedrooms, so they are looking to move to a larger home.

How do you get them to understand that it’s a great time to upsize? Click to the next slide to find out.

• They would like to sell their home for $300,000.

• Comparable homes in the area are now selling for $270,000.

• They want to purchase a home in Middleville that was originally listed at $500,000.• This home has recently had

a price reduction and is currently listed for $450,000.

Note: Play this is slide show view.

The slides will play automatically.

The Carney’s Current Home The Home they Want to Purchase

Their Home The Home They Want to Purchase

Cost of Upgrade

Past $300,000 $500,000 $200,000

Current $270,000 $450,000 $180,000

Difference -10% -10% $20,000 Savings

Your Home vs. the Home Your Home vs. the Home You’ll PurchaseYou’ll Purchase

The Carney’s want to list their home for $300,000.

Current list prices for comparable homes in the area are $270,000.

This equals a $30,000 decrease in price, or 10%.

Remember that the Carneys want to purchase a home in Middleville originally

listed for $500,000.

In the current market, this same home is listed at $450,000.

This difference in price is $50,000, or also 10%

Their Home The Home They Want to Purchase

Cost of Upgrade

Past $300,000 $500,000 $200,000

Current $270,000 $450,000 $180,000

Difference -10% -10% $20,000 Savings

Your Home vs. the Home Your Home vs. the Home You’ll PurchaseYou’ll Purchase

In the past, the Carneys would have paid $200,000 to upgrade to their home in

Middleville.

If they reduce the price on their current home now and buy the house in Middleville at its current list price, the cost of upgrade would

be $180,000.

Overall, the Carney’s would save $20,000 in this situation.

Key Points to RememberKey Points to Remember

• Keep in mind…this approach only works for people moving into a higher-value home in a market that’s declining at the same rate or greater.

•Help them see how much money they can save by moving up in a declining market.

• Sellers may be afraid to lose money in this market.

Key Points to RememberKey Points to Remember

Do your homework:

• Look at the inventory on the market and

make sure your example is representative of the story you want to tell.• Be sure to have numerous properties to

show.Click ahead to the next

slide for a chance to practice.

It’s Your Turn to Practice

• Split into groups of three.

• Each will have a turn to role-play the part of the Sales Associate, Seller, and Observer.

Round 1

#1 Sales Associat

e

#2 Seller

#3 Observer

For Those Playing the Role of the Seller…

• For those playing the role of the seller, make sure you present obstacles to the Associate and do not give in too easily.

• Create your own responses to each question the Associate asks you, but be sure to stay consistent and make them work to convince you that it’s a good time to sell in this market.

For Those Playing the Role of the Associate…

• Remember, your ultimate goal is to have the seller understand why it’s still a good time to sell.

• Use the “Your Home vs. the Home You’ll Purchase” chart to convey the point that this is a great time to move up in this market, if the scenario is applicable.

For Those Playing the Role of the Observer…

• Note what the Associate did well to get the Sellers to agree to list their home in this market. Note the tools and dialogue they use.

• Note some of the core objections brought up by the seller.

• Make any notes of what worked and suggestions for next time.

Round # 1 Background

• A couple named Diane and Steve Thomas.

• They want to list their home for $600,000.

• Comparable homes in the area are selling for $575,000.

• They want to purchase a home that is currently listed at $900,000, which is down from $975,000.

You have 5 minutes

***Note to Managers: If you feel more comfortable, create scenarios that more closely match the price ranges in your area.

Remove this box before presenting.***

Large Group Review

• How did you feel about this scenario? Was it easy to convince the seller to list their home in this market?

• Associates: What were the main challenges you faced and how did you overcome them?

• Sellers: What did the Associate say to convince you to put your home on the market?

• Observers: What went well? What could have been done better?

Skills Practice Round 2

Round 2

#1 Seller

#2 Observer

#3 Sales Associat

e

Round # 2 Background

You have 5 minutes

• A woman named Judith Baker.

• She wants to list her home for $275,000 and doesn’t want to budge.

• Comparable homes in the area are selling for $260,000.

• She wants to purchase a home that is currently listed at $435,000, which is down from $460,000.

Large Group Review

• How did you feel about this scenario? Was it easy to convince the seller to list their home in this market?

• Associates: What were the main challenges you faced and how did you overcome them?

• Sellers: What did the Associate say to convince you to put your home on the market?

• Observers: What went well? What could have been done better?

Skills Practice Round 3

Round 3

#1 Observer

#2 Sales Associat

e

#3 Seller

Round # 3 Background

You have 5 minutes

• A man named Kenny Markus.

• He wants to list his home at $350,000 and thinks he can’t afford to lower his price, since he wants to “move up.”

• Comparable homes in the area are selling for $330,000.

• He wants to purchase a home that is currently listed at $535,000, which is down from $575,000.

Large Group Review

• How did you feel about this scenario? Was it easy to convince the seller to list their home in this market?

• Associates: What were the main challenges you faced and how did you overcome them?

• Sellers: What did the Associate say to convince you to put your home on the market?

• Observers: What went well? What could have been done better?

Do You Have Frozen Buyers?

• Raise your hand if you currently have clients in this situation.

• Tell us about the house they’re currently living in and are hesitant to sell.

• Do you know where they want to move to?

Let’s practice how we would handle this seller to convince them that it’s a great time to move

up.

Call to Action

In the next week:

•Use the move-up tool to influence sellers that now is the time to “move up” to a more expensive home.

Be prepared to share your experiences at the next Make Your Market session.

Next Week’s Make Your Market Session

Have you been challenged with a seller who…

• Is retiring but is afraid to sell in this market?

• Doesn’t need to move, but is tired of the maintenance their home requires?

We’ll focus on influencing sellers who are down-sizing at next week’s session.

Day: [day of week]

Time: [start time] – [end time]

Location: [meeting location]

Make Your Market: Make Your Market: Un-Un-Freezing Sellers Who Are Freezing Sellers Who Are

Down-SizingDown-Sizing

Make Your Market: Make Your Market: Un-Un-Freezing Sellers Who Are Freezing Sellers Who Are

Down-SizingDown-Sizing