One Of The Many Reasons Real Estate Professionals Never Reach Their Maximum Level Of Proficiency, Professionalism, Productivity And Success Is Because They Burn Out Financially And Psychologically As A Result Of Taking And Trying To Service And Market Overpriced Listings.
(The following article is an excerpt from my How To Give A Listing Presentation book. This book is the fifth of 14 that comprise my Real Estate Listing Agent Training System.)
The Twenty Fourth Step that I potentially took during my Listing Presentations was that I Determined If Listing My Seller Lead’s Property Was Mutually Agreeable.
At this point in the Listing Presentation, if I really wanted my seller lead’s listing, I asked for it and specified the terms and conditions under which I was willing to list their property. By following the chronological steps of my Listing Presentation that I have discussed to this point, the majority of my seller leads were not only agreeable to list their home with me at my recommended asking price, but also with the Ultimate 4 Step Real Estate Selling Formula in effect.
When My Seller Leads Wanted To Ask More Than My Determined Fair Market Swing In Value
There were times when my seller leads were willing to list their home with me, at this point in the Listing Presentation, but wanted to start with an asking price that was higher than my determined fair market swing in value and recommended asking price, and in some cases without wanting to implement some or all of the Ultimate 4 Step Real Estate Selling Formula.
In situations like this, if I really wanted the listing, I would accept the listing at the higher asking price but only if the sellers would give me “in writing”, what I refer to as, a light at the end of the tunnel formula in my Listing Agreement.
11 Examples Of Light At The End Of The Tunnel Formula Verbiage In Listing Agreement
Here are 11 Examples of light at the end of the tunnel formula verbiage that I wanted written into my Listing Agreements.
Example #1:
Sellers will reduce their asking price to ( x amount of dollars ) on ( a specific date )
Example #2:
Sellers will offer all lending and financing on ( a specific date )
Example #3:
Sellers will offer seller concessions up to ( x amount of dollars or a % asking price ) on ( a specific date )
Example #4:
Sellers will order an appraisal on ( a specific date )
Example #5:
Sellers will order a home inspection on ( a specific date )
Example #6:
Sellers will order a township inspection on ( a specific date )
Example #7:
Sellers will order a pest control inspection on ( a specific date )
Example #8:
Sellers will order an environmental inspection on ( a specific date )
Example #9:
Sellers will order a title search on ( a specific date )
Example #10:
Sellers will order a new or updated survey on ( a specific date )
Example #11:
Sellers will offer a home warranty plan on ( a specific date )
3 Important Tips For Listing Real Estate Agents Who Consistently Take Overpriced Listings
Tip #1
By getting light at the end of the tunnel formula verbiage in my Listing Agreements from day one it statistically insured me that I would have a properly priced and saleable listing within a reasonably short time. It’s no secret that many real estate listing agents over the years have burned out both financially and psychologically because of taking overpriced listings and attempting to market them. In most cases they have 2 chances of having their overpriced listings sell. Not “slim and maybe,” but rather “none and never.”
Tip #2
Real estate listing agents should always program their brains for the fact that their listings will statistically not sell at the highest possible price and in the shortest period of time until the Ultimate 4 Step Real Estate Selling Formula is in effect. And if they are unable to get it in effect from day one of the Listing Agreement then they should try to get it into effect within a reasonably short period of time thereafter. This can be accomplished by inserting light at the end of the tunnel formula verbiage in their Listing Agreements like the examples I listed above.
Tip #3
I learned very early in my career that it was an excellent idea to get my sellers to agree to light at the end of the tunnel formula verbiage in my Listing Agreements “in writing” from day one rather than getting them to agree to this verbiage verbally. Why? Because when it’s done verbally the Ultimate 4 Step Real Estate Selling Formula usually never gets implemented. And when it’s never implemented it usually results in overpriced listings just sitting, and sitting, and sitting. And when this happens it usually results in a lot of anxiety, emotionalism, frustration, arbitrations, mediations, threats of lawsuits, and actual lawsuits potentially occurring as well as requests to cancel Listing Agreements and Transaction Broker Agreements, canceled Listing Agreements and Transaction Broker Agreements, and Listing Agreements and Transaction Broker Agreements that are not extended.
The Ultimate 4 Step Dagger Death
When the Ultimate 4 Step Real Estate Selling Formula is not implemented it can also lead to, what I refer to as, the Ultimate 4 Step Dagger Death for real estate listing agents. And experiencing the Ultimate 4 Step Dagger Death is truly one of the most psychologically and financially painful Life Lessons that real estate listing agents will ever experience. The Ultimate 4 Step Dagger Death is as follows.
Step #1:
The pain felt when sellers refuse to extend their Listing Agreements and Transaction Broker Agreements.
Step #2:
The pain felt when sellers list their property with another real estate firm for less money.
Step #3:
The pain felt when sellers put their property under agreement with another real estate firm.
Step #4:
The pain felt when sellers make final settlement on their home with another real estate firm.
There’s no question about it, when real estate listing agents consistently take overpriced listings and market them with good classified ads, display ads, television ads, radio ads, multiple listing service exposure, open houses, broker luncheons, and even Good Year Blimp exposure it still results, in virtually all cases, with a property not selling. And, as I have already said, when this happens it can and does lead to a lot of anxiety, emotionalism, frustration, arbitrations, mediations, threats of lawsuits, and actual lawsuits as well as requests to cancel Listing Agreements and Transaction Broker Agreements, canceled Listing Agreements and Transaction Broker Agreements, Listing Agreements and Transaction Broker Agreements that are not extended. It also can and does lead to the Ultimate 4 Step Dagger Death which can literally kill a real estate listing agent psychologically and financially.
Respectfully, Phil Mitsch
Cherry Hill, New Jersey
856-665-6569
http://PhilMitschForAmerica.com
@philmitsch
philmitsch@verizon.net
Comments