Blog
Managing Expectations
Last week I shared some suggestions on correctly pricing properties to the market. Today’s topic—managing expectations is every bit as important. And not just important to real estate sales, but all areas of our lives—parenting, marriage, etc. How many disagreements or misunderstandings do we have in our marriages due to unmet expectations? How many sales never materialize or fall apart due to expectations that never materialize?
Two keys to managing expectations:
1. Be aware. Your clients already have expectations due to information they have read in the papers, seen on TV, heard from their friends, and observed in their home towns. While this “information” may be relevant in some markets, it’s probably inconsistent with the reality on the ground in your community. Be aware that you’re not dealing with a clean slate. You must give them new information to make a new decision.
2. Be proactive! The best time to answer an objection is before it comes up. Don’t wait to educate them on reality once they’re frustrated or disappointed.
An example combining the above two principles: You’re getting ready to take a prospect out to see properties and they have told you they want a “great buy”. I suggest you respond with something like the following:
“Wel, Bill and Sally, you’re timing is perfect. Let me ask you a question. Do you want me to show you homes that are way overpriced, or do you want me to show you homes that have already taken their 30% hit in value and are reduce to today’s market? You see, Bill and Sally we can go look at the overpriced homes, and they may come down in price, but there is a reason they haven’t sold. Or I can save you a lot of time and show you homes that have recently adjusted to the market and will be the next 2-3 homes that will purchased because they are great buys! However, since these homes have already adjusted their price to the reality of the market place, they are going to sell for close to their list price. They may come down slightly, or they may sell for list price. And they are a great buy at list price. Which homes would you like for me to show you?”
The above education process is crucial. In my training I have a two hour session focused strictly on managing expectations. It is always important, but in today’s market of short sales and foreclosures it is crucial. And it’s not just important on the showing of the property, it’s the appraisal, the bank process, the home inspection, etc.
Let me know your thoughts, and if I can be of help with any training give me a call or shoot me an email. And remember, not just in real estate sales, but success and contentment in all of our relationships, is dependent on how well we manage expectations!
Posted on 05/31 at 11:03 AM
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