By Bruce Keith
One of the ways to generate bigger paycheques is to sell more expensive products. In my Interview with a Superstar, coaching client Robert Kroll of Re/Max Realtron in Toronto shared his formula. He has increased his average sale price significantly over the last 23+ years. Robert now earns a sizable income selling 60 homes per year with an average sale price of in excess of $1 million each!
If you want to increase your average sale price, there are some great ways to do it. Here’s how Robert did it:
1. Sit at open houses for listings in the desired area.
2. Preview every property that is for sale in the area, become the “resident expert”.
3. Prospect the area personally. Make telephone calls and go door knocking (unless it’s a gated community) every day. Become recognized.
4. Sponsor some activities in the area to become better known in the community. Be visible.
5. Associate with people in the area. Learn how they think. Join clubs; be involved in children’s sports and charity functions.
Follow the above five points and then, as soon as possible, do exactly what Robert did – move there. It certainly worked for him and it will for you.
One final thought: Do not “throw the baby out with the bathwater” while you are making this transition. Wherever your business is coming from now, keep doing it. Too many times salespeople make a decision to change their target market and in doing so go broke before the new approach becomes successful. Always rely on your bread-and-butter market. Have a plan and follow it. Expect that the change you are implementing will take approximately 12 to 18 months.
* * * * *
The market is always changing. It isn’t so much that the market is changing that you need to be concerned about… the key is to react quicker than your competition.
Most sellers feel there is a “magic pill” to getting their homes sold. Everyone has pride in their home and they feel that everyone else will be thrilled with what is being offered. The reality is that everything has a price at which it will sell. For example, a great location versus a bad location must always be reflected in the price. So how can we help our sellers understand this more easily?
If you have a listing that is not selling, the price needs to be addressed. Here are some ways to help your seller understand how you know that the price is too high. Share these indicators with them:
1. The number of hits on your website or on the MLS website for their home.
2. The number of sales in their price range since you listed their home.
3. The number of new listings that have come on the market since you listed their home.
4. Details regarding homes you have inspected that are comparable to theirs.
5. The number of showings on their home and the number of offers.
It is not uncommon for a seller to complain that “all you ever do is talk to me about the price… we need more blah, blah, blah.” Share the data from the above points and help them understand that the buyers are passing them by because they do not see the value in their home. The seller needs to know that you’re on their side. Support your advice with the above information and you will get the necessary price reductions faster. Be strong, be professional, be empathetic and help them get more offers. That’s why they hired you. No excuses.
Bruce Keith, the “Sales Coach”, began his sales career at IBM and 15 years later used his marketing and sales expertise to develop a highly successful real estate business. He is a master of teaching “what to say and how to say it”. His high energy and entertaining training style has allowed him to create a popular coaching and seminar business for numerous sales organizations during the last 12 years. www.brucekeithresults.com
Bruce Keith is a leading Real Estate Coach/Author/Speaker. Like Bruce Keith Results on Facebook or connect with Bruce on Linkedin. Email Bruce Keith.
