Lecture on Real Estate Pricing Strategy

Introduction

• Host: James Shaw
• Focus: Discussing pricing strategies for real estate listings
• Market Challenges: Current market is weird and agents struggle with pricing
• Panel: Four elite real estate agents sharing insights

Panelists Introduction

• Orley Steinberg: Northern New Jersey, Keller Williams
• Tommy Choy: Chicago, large top 10 team
• Maria Pettit: Cleveland, Ohio, 22 years in business
• Terry Story: Boca Raton, Florida, 35 years experience

Key Discussion Points

Understanding Seller's Perception

• Orley Steinberg:
  • Ask sellers to rate their home on a scale of 1-10
  • Determine seller's perception and expectations
  • Assess mortgage situation to decide on listing feasibility

Setting Expectations

• Tommy Choy:
  • Use a pre-listing questionnaire
  • Key questions about recent appraisals and seller’s perceived home value
  • Understand whether sellers are shopping for agents
  • Tailor strategy based on seller’s perception of the market

Motivation and Strategy

• Maria Pettit:
  • Importance of understanding seller's motivation for selling
  • Educate sellers on market conditions like average price, days on market, etc.
  • Adjust pricing strategy based on the seller's timeline and market competition

Building a Relationship

• Terry Story:
  • Determine seller's communication style by asking them to describe their home
  • Clarify whether sellers want to be on the market (testing) or in the market (selling)
  • Collaboratively determine listing price based on market feedback

Handling Listing Appointments

Overcoming Overpricing

• Orley Steinberg:
  • Determine if sellers are realistic or greedy about pricing
  • Use online activity insights to assess interest
  • Positioning the house competitively from the start

Market Strategy

• Maria Pettit:
  • Acting as fiduciary to help sellers net the most money
  • Evaluate home condition and seller’s willingness to improve it

Communication and Agreement

• Terry Story:
  • Engage sellers in discovering the price together
  • Use market data to justify pricing decisions
  • Present pricing as a strategic decision, not just a value decision

Price Reduction Strategies

Planning and Execution

• Tommy Choy:
  • Establish showing-to-offer ratio (STTO) as a metric
  • Use data-backed strategies for price adjustments
  • Schedule strategic reviews (e.g., day 15)

Online Activity Monitoring

• Orley Steinberg:
  • Monitor online hits and saves to gauge buyer interest
  • Adjust pricing if home is not getting physical visits despite online interest

Engaging Sellers

• Terry Story:
  • Use analogies to help sellers understand market position
  • Set expectations for potential price reductions upfront

Final Tips and Best Practices

Understanding Market Dynamics

• Maria Pettit: Deep market understanding and data-driven decisions

Managing Seller Expectations

• Orley Steinberg: Eliminate seller's preconceived notions about home value

Maintaining Objectivity

• Terry Story: Keep emotions out of pricing discussions

Learning from Past Listings

• Tommy Choy: Use cancelled listings as learning tools

Conclusion

• Emphasis on understanding market dynamics and strategic pricing
• Importance of setting expectations with sellers early
• Availability of resources for Inspire members

Additional Resources

• Resources and downloads available for Inspire Collective members
• Information can be accessed at jamesdshaw.com