10 Ps TO A POWERFUL PRICE
by Neil Jenman
Article written and provided by Neil Jenman from Jenman.com.au . To see the original source of this article please click here. https://jenman.com.au/how-to-over-sell-your-home/. Neil Jenman is Australia’s trusted consumer crusader. He can support you, all the way, from choosing an agent who will get you the highest price guaranteed to when your removalist comes! You get an unprecedented level of total support. All for free. To find out more visit jenman.com.au
For years I have been saying it: Most home-sellers under-sell their homes. They lose tens, even hundreds of thousands of dollars. On high-priced homes, sellers can under-sell their homes by millions of dollars.
But not sellers who get great help and support – from someone with two major attributes: First, someone who truly cares about them. And second, someone who is competent at knowing how to get the very best price.
Indeed, someone who knows how to OVER-SELL a home.
When Frank sold his home last year, he likened it to “winning real estate lotto”. He got at least $350,000 more – possibly as much as $700,000 more, it’s hard to say exactly – than he would have got if he had done what most sellers typically do.
What do most sellers do? They call a few agents – and listen to a pitch about “the market”. And then they select one agent and do as that agent suggests.
Big mistake. Costly mistake too.
It’s why most sellers under-sell their homes. Most agents aren’t interested in getting the best price, they just focus on the lowest the sellers will accept which is the quickest way to score a commission.
So how did Frank manage to over-sell his home?
He called Jenman Support. He spoke with me, Neil Jenman.
Now, admittedly, when I spoke with Frank, it was like speaking with a good mate. We clicked instantly. Our first call lasted almost two hours.
Frank said words we feel so honoured to hear: “I am in your hands. Whatever you think we should do, we will do.”
Here’s something of which I am superbly confident: In 95 per cent of cases, I can help sellers get tens, perhaps hundreds of thousands of dollars more for their homes. Sometimes millions.
The biggest reason most agents under-sell homes is because they focus on one factor and one factor only – price.
To most agents, the world revolves around price.
They compare one home with other homes that have been sold nearby – but if most homes are under-sold then owners are being asked to compare their home with homes that have been under-sold. That’s sheer incompetence bordering on negligence.
When I was an agent, I used to tell sellers: There are two prices for your home. First, the price it’s worth in today’s market and, second, the price I can persuade a buyer to pay.
Sure, it didn’t always work – sometimes the best I could get was the current market price. But most times, I managed to get far more than the so-called market price. To the best of my knowledge, I never under-sold a home.
Now, of course, as I am no longer an agent, I show sellers how to do it – although sometimes, as their friend or supporter I speak with an agent or even buyers.
I can’t count the number of times agents say: “I guarantee these buyers won’t pay more.”
I then ask if I can speak with the buyers. “Sure, go ahead,” they say.
Then I ask, “If I get the buyers to pay more, will you forfeit your commission for our sellers?”
In one hundred per cent of cases, their answer is: “No way.”
How quickly agents throw away OPM (Other peoples’ money).
Try this next time you’re about to accept an offer from an agent who says the buyers are at their maximum and won’t pay more: Say that you’ll accept the price offered, but it must be clear for you. In other words, the net price.
Suddenly, the agent is no longer fighting for your money, but for their money. What a difference it makes. Most times, the agents put the sale together.
So, what do I – and my fellow supporters at Jenman Support – do to help you to OVER-SELL your home?
In brief, here are 10 factors – all of which start with P – that can help you to OVER-SELL your home.
PHONE: Yes, pick up the phone and call 1800 1800 18 and ask this question: How can you help us to get a better price for our home? I think you’ll be impressed.
PASSION: The best buyers are those who will pay the best price. They are almost always family home buyers. Price is secondary to them. Their passion for your home can often result in paying “overs” for it. It has happened to me and my wife. On two or three occasions, when we have really loved a property, we gladly paid more for it.
What’s most important to most people – money or happiness? Happiness, of course.
So, let’s say the local agents all agree that your home is beautiful. They “estimate” it can sell for “up to $2 million”.
But wait a minute.
If you find the right buyer, you might get $2.5 million.
If you love your home – and you have lived there happily for many years, here’s what to do: Write a Love List. Use the heading: WHY WE LOVE OUR HOME – and write as many reasons as you can imagine.
Nothing is more important than the passion of the person selling your home. If an agent doesn’t believe your home is worth a high price, you won’t get a high price. But an agent who’s enthusiastic and passionate about your home is the one who stands the best chance of getting the best price. It is often said that: “Selling is the transference of enthusiasm.”
PERSON: You only need one. One person – the right buyer for your home. It doesn’t matter if hundreds of buyers say your home is “too dear” or they list all its faults. These are not the right people for your home. Reject them.
In selling, one of the most powerful words is “NEXT”. If one person doesn’t like your home -or accuses you of being “over-priced”, think to yourself: “NEXT”.
Don’t let agents pressure you. Recently an agent told me that one of our sellers’ homes had “failed to sell”. They said buyers were “laughing”.
I told him: “The house has not ‘failed’ to sell especially for the low price you expect the sellers to accept. Sure, you may have failed to get a commission, but we don’t care about you. Nor do we care about those you claim are ‘laughing’. All we care about is that getting the price we believe the home is worth. The right buyer will appreciate this home and pay the right price.”
A few weeks later, the home sold for at least a million dollars above what this agent could have sold it for – maybe $2 million. When we asked him what price he thought the owners could get, he said, “The price they deserve.” Such arrogance.
When the home sold, I couldn’t help thinking: “He who laughs last laughs best.”
This agent got what he deserved: Nothing.
The sellers learned one of the golden rules of over-selling a home: Find one right person. Yes, you only need one buyer. Don’t worry about the masses – especially the bargain hunters.
PLAN. You need a plan if you’re going to get a great price for your home. These days, most agents give sellers a list of all the places and ways a home is going to be advertised – and beside each place they list a cost. For the seller, of course.
That’s not a plan. That’s an admission that the agent is too lazy or too incompetent.
Years ago, when agents would get a new home for sale, the first thing they’d do is go to their contacts and make a list of all the possible buyers. One by one they’d make the calls.
But not today.
Work is anathema to most “modern” agents. They’d rather take your money to advertise your home – which is really for promoting themselves and finding more seller leads – than call sellers. Or come with a solid plan to sell your home.
Here’s the truth: Advertising is what agents do when they are too lazy to call people.
Recently, for a multi-million-dollar home, I helped an agent answer the question: Where can we find the best buyer, who’ll pay the best price?
I designed eight different letters for the agent to send – to everyone from mortgage brokers to solicitors to the CEOs of top companies. That’s planning. It’s also work – which most agents don’t want to do.
PERSUASION. Most of today’s agents are not salespeople. At best, they are order-takers. How do you persuade buyers to pay the best price if you don’t know the buyers? It’s impossible. Agents spend more time trying to push sellers down in price than trying to persuade buyers to go up in price. Sellers who refuse to be pressured get the best price. As one seller recently said to one agent: “I am not paying you to persuade me to go down in price. So go and persuade the buyers to pay more, instead of trying to get me to accept less.”
To over-sell your home, you need to find a great persuader.
A great persuader does three things:
First, gets to know your home and it’s best features so the home can be sold with enthusiasm. Second, gets to know the buyers (in sales, it’s called “Qualifying”) so that the buyers’ best price can be discovered.
And third, a great persuader is a great negotiator. For instance, when the buyers say the home is too dear, the great persuader has statements to persuade the buyers to pay the “dear price”. Such as: “It might seem dear today, but you said you are going to live here for 20 years or more. In five years, it’ll likely look cheap.”
Or this statement: “It’s the perfect home for you and even though you are buying it in 2021, to make sure you get it, all you have to do is pay the 2025 price.”
PRIDE. It’s so important that you be proud of your price as well as your home. Stand firm. When you are asked why you are asking for such a great price, reply, “Because it’s a great home, that’s why.”
When agents (or buyers) throw “comparable sales” in your face, you should strongly reply: “There are two things you are missing when you tell me about the price at which other homes have sold: First, most have been under-sold (true!) and second, they are not nearly as good as our home.”
Or you can say, “Haven’t you heard? There is a boom happening. The prices have gone up since those other homes have sold.”
And here’s what Michael Bloomberg, the New York billionaire does when people question his price: “I put the price up, not down,” he says. “It works every time.”
So, be proud of your price. If an agent asks you to lower it, do the opposite – increase it. At the very least, it will get people talking.
And finally, remember this: “Your home is not too expensive, it’s just that the buyers who are offering you a lower price can’t afford it.” If you subtly suggest they look for a home in a less-expensive area, you’ll be surprised how often they will “show you” they can afford your home. The best way to prove they can afford it, of course, is to buy it.
PURPOSE. To over-sell your home, find out the main reason – the purpose – someone wants your home. Money is not as important as purpose. If you discover the purpose – such as the home is near a school they seek or it is a walk to the beach – then, each time they try and talk abut money, you talk about their purpose.
Like a broken record, you keep pounding their purpose – “Sure, I know you want to pay less, but it’s near the school.”
Or “Yes, I understand you are making an offer but it’s only three minutes to the beach.”
Each time anyone mentions money, you mention the purpose they want your home.
Most people soon realise that the purpose for which they want your home is more important than the money.
PATIENCE. Two of the greatest success factors in life are foresight and patience. Here’s what I said to some sellers recently. If you were offered $3.5 million for your home and it was a sure sale, but the buyers couldn’t pay you for nine months, what would you do?
They said they’d accept.
To which I replied, “Well, that’s like waiting a bit longer for the right buyer to come along.”
The greatest real estate trainer in Australia is Michael Kies from South Australia. One of Michael’s favourite sayings for getting great prices for homes is: “It’s just going to take a little bit longer.”
POSITION. Everyone knows the three greatest factors with real estate are location, location, location. Don’t forget it if your home is in a great position which includes a good part of your suburb or town.
Here’s something to sustain you while you wait for the best buyer. You still own your great home in its great position. Its position will never change. Don’t get frustrated, be pleased you still own it.
Good property is always good property. It eventually commands a great price.
PRESENTATION. The best part of a home’s presentation is its aura. Like people, homes have a personality, a life of their own. Indeed, they adopt the feelings of their owners. Sad people have sad homes – you can feel it, often when you enter. Happy people have happy homes, filled with love; they radiate warmth. These homes are so appealing.
If you pose that same question to the right buyers, “What’s more important to you – your money or your happiness?” they’ll give you the right answer.
And then you’ll over-sell your home.
And those are ten factors, all starting with P – to help you over-sell your home.
If you need help, remember the first P – phone us on 1800 1800 18.
Finally, here’s something that’s happening right now.
One of the delightful couples we are supporting have a home that we are convinced is worth up to $3 million more than the price quoted by several agents. These agents simply don’t “get it”. They are focusing purely on price.
But, as you have just seen, there are many factors far more important than price – and any one of these can lead to a much greater price.
The home next door to this couple was just sold for what can only be described as “a give-away” – at least $1.5 million below its best price. We were not involved with that sale.
We fight to make sure that doesn’t happen to sellers we support.
Homes are worth so much money these days. The wrong agent, the wrong strategy or, worst of all, the wrong belief can easily mean the best homes get sold for millions of dollars below the price they could have achieved.
These delightful owners texted my wife yesterday. Here’s what they said:
“I think back on earlier sales and purchases and consider we were babes in the woods; two innocent lambs led to the slaughter. I thought I knew everything that was important to know. However, when one is working 60 hours a week you simply don’t have the time to research and learn. One never knows what one doesn’t know. We are extremely grateful for the knowledge.”
As we always love to say, we do not charge sellers for our support. But, to us, there is no better payment than trust and appreciation.
Good luck with the sale of your home. If you’d like our help, let us know.
Whatever you choose to do, we hope you don’t join the thousands of home-sellers who under-sell their homes each month. Instead, we hope you over-sell.
If you need help to find a good agent, let us know – [email protected]. We will never ask you for money. We will never ask you to sign anything. We will always fight to protect your best interests. Thank you for reading this article