Tips for managing listing extensions

“Why didn’t the house sell?” This question will invariably be asked by any vendor who reaches the end of a listing contract with their real estate agent. Often the answer will come down to subdued market conditions, ineffective marketing or excessive price expectations on the part of the buyer or seller.

 

It is therefore important for agents to understand how to answer the question in a way that demonstrates their understanding of why the initial selling approach failed, and to offer a clear and attainable strategy for selling the property at a reasonable price in the future.

 

The following tips may prove useful for agents looking to secure listing extensions:

 

·         A vendor may have initially insisted on a selling price above market value for their property. In such a case it is important to reinforce realistic price expectations, and help the vendor to see that their initial price may have hampered their ability to sell. Be honest, tactful and sensitive, and the vendor will be more likely to stick with you;

·         Demonstrate that your marketing techniques were comprehensive and played no part in the property’s failure to sell (provided this is true, of course). Provide examples of the mediums that were used for advertising, and explain which of these were most effective in generating responses. If the property’s failure to sell is attributable to a misguided marketing strategy on your part, endeavour to show the vendor how your marketing strategy moving forward is rectified or improved;

·         Compile detailed feedback from all of the buyers who showed interest in the property. Emphasise the benefits and features that drew interest, but also illuminate what needs to change in order to spark a conversion;

·         Be proactive and undertake a comparative market analysis to establish a reduced sales price with the vendor. Demonstrate and reinforce that the property is capable of selling if the vendor’s price expectations are moderated according to the market;

·         Always be honest and sincere.

Posted by Reality Bytes - Real Estate Training Blog on 10/08/2012 at 11:23 AM | Categories:

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