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The January FOMO Phenomenon
After 20 years as a full-time professional REALTOR® and being a serious student of market trends, I’ve learned a few things. One of them is the ‘January FOMO Phenomenon.’
One thing that never changes (in my local Calgary market, at least) is that December and January are ALWAYS the slowest two months of the year for sales. Sales are usually marginally higher in January, but not always! The numbers between the two months have been remarkably close over the past several years.
This contradicts what most people think (including practically every other agent I know). After all, it’s easily explainable why sales are slow in December. It’s the dead of winter, and who has time for house shopping in the weeks leading up to Christmas?
But why are sales so slow in January?
Most people considering buying a new home wait until the New Year to start their search. This makes sense. New year. New beginning. New home!
And, indeed, there is always way more showing activity in January than in December. It’s not even close. I typically have three to five times more showings in January!
But here’s the punch line:
More showings does NOT equal more sales.
This can be super frustrating for sellers. They’re getting way more activity, but still, no offers! Why?
Here’s the simple explanation: Most buyers looking in January are getting an early start on their search, and they don’t feel any sense of urgency. Even if they come across a listing they love, they often think, “This one is great! But there are lots of new listings coming on, so let’s wait and see what else pops up over the next month or two.”
They fear missing out on a future listing that could be better than the one they already like. That’s FOMO.
Then, as time passes, sure enough, there are more listings but ALSO way more competing buyers.
Suddenly, we’re in the middle of the spring market! It’s remarkable how quickly we transition from the ‘winter doldrums’ to the ‘spring frenzy,’ which often catches buyers off guard.
In most cases (not always), if a buyer has flexibility, they should start their search sooner (yes, in January) rather than later (when the market becomes significantly more competitive).
Of course, you still want to ensure you’re buying something good for a fair price! But the more time you put into ‘doing your homework’ (viewing properties), the more comfortable you’ll be in making a decision, even if the market conditions start getting hotter.
What about sellers? In most cases (but not always), listing your home in January is not much different from listing it in December (it sucks). As I stated, even if you find a very interested buyer, FOMO may prevent them from writing an offer.
Ideally, if sellers have flexibility, they should list closer to the beginning of the spring market when there is the most buyer activity.
By the way, ‘Early Spring’ is always a better time to list than ‘Late Spring’ (even if you think that’s when your house shows its best), but I’ll leave that topic for a future Rant. For now, suffice to say I’d rather my house showed 95% with 3X the buyers, compared to 100% with only 1/3 as many buyers (the fussiest ones to boot).
All the best in 2025!
Ted
P.S. I wrote this at the beginning of January, and today (Jan 20), it’s clear that we’re in for another banner spring market, barring any outside interference, such as American tariffs. What about your market? Let me know in the comments!
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Early Spring vs Late Spring
I know it’s been a while. I’ve been concentrating on my real estate business, which is going well.
The following is taken from my monthly newsletter I send to clients, but it occurred to me that you might find it helpful.
To be clear, I’m not giving permission to copy my articles word for word! Everything I write is copyrighted. However, if my words help you adjust your mindset, that’s great!
This is based on my market—Calgary—but the same theory applies to every Canadian market. Even if your market conditions are much more negative, there’s still a certain point where you pass the peak of the spring market. You just need to take the time to analyze your own numbers. (The change may actually be much more severe than it is here. Believe me, I’ve been through every different type of market. But the main point of the article is that one of the keys to success is the ability to quickly adapt.)
I’ll send another Real Agent Memo soon! In the meantime, I hope you’re having a great year!
Early Spring vs Late Spring
Welcome to the Late Spring Market, a significant transition point past the peak of the market in terms of sales volume.
You may wonder: If the total sales in May were more than in April, how can I say we’ve passed the peak? The answer lies in the trend.
Looking at the weekly and daily stats, I can see that sales climbed steadily throughout April until mid-May, and they’ve been declining ever since. A detailed analysis allows me to accurately state that May 15 was the peak of the market for detached homes in Calgary.
What does this mean in practical terms? It means that sellers need to adjust their expectations.
1. The available inventory has risen steadily since February 1st and is now about 50% higher than it was then.
2. Sales have steadily declined since mid-May, as mentioned. This trend will continue, with little or no deviation, from now until December or January. I can confidently state this, backed by two decades of diligent market observation and analysis.
3. Fewer multiple-offer scenarios are occurring now compared to a month or two ago. This trend will also continue, partly due to different market conditions with more listings and fewer sales, as already discussed. But there’s one more important phenomenon:
‘Early Spring Buyers’ are more willing to jump into multiple-offer scenarios and bid much higher than the list price to get a property. They’re early adopters with a different mindset than ‘Late Spring Buyers,’ who tend to be more conservative and less inclined to write much over asking. (This partly explains why they haven’t bought anything yet!)
Here’s another significant factor that sellers should consider:
At any given time, only a limited number of buyers might consider buying in your geographical area and price range. For the sake of simplicity, here’s a breakdown of when 50 theoretical buyers might buy a single-family detached home between March and August:
March – 8
April – 12
May – 12
June – 8
July – 6
August – 4
Based on this, if you wait until July to list your home, 80% of your potential buyers have already bought! AND, the remaining buyers have much more inventory to choose from! AND, these remaining buyers tend to be more conservative!
Can you see now why sellers need to adopt a different mindset in the late spring?
Anyone can look back on what happened in March, April, and May and assume it will be the same moving forward. That’s a huge mistake!
Many other factors also affect the market, but ‘Early Spring vs Late Spring’ is a significant one that must be considered to achieve success.
The bottom line is that in ‘Late Spring’ (now) it’s even more critical to:
1. Price it right from the start (not too low and not too high), and;
2. Ensure that your property stands out from the crowd.
A skilled and experienced agent will guide you in accomplishing both objectives. Even more importantly, they will constantly alter their mindset to adjust to changing trends, and always tell their clients precisely what they believe to be true.
Ted Greenhough
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The Ultimate Sales Superpower
Last RAM, I talked about the #1 most powerful question to initiate meaningful dialogue for prospects:
What’s your biggest reason for moving?
Click here to re-read why this question is 10X more potent than all those other questions most agents machine-gun at their prospects.
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You know how I always talk about not being a Salesy Slickster?
Let’s be clear: You must avoid old-school manipulative sales “skills.” NOBODY falls for that crap anymore. It’s just a big turn-off.
Rather, we need to work on actually delivering exceptional results for our clients, which is essentially what the Agent Skills Masters Program is all about.
But in order to deliver exceptional results, you still need “new-school” sales skills!
It boils down to what you care about. For example, are you focused on where your next commission cheque is coming from? Or are you focused on how you can help your clients achieve their goals?
And, assuming your my kind of agent and you’re genuinely focused on your clients, what’s the ultimate sales superpower?
The ability to read your prospects’ minds!
Well, that would sure be nice, wouldn’t it? But how, pray tell?
It’s called EMPATHY.
But since empathy sounds like sympathy, most of us think of this as a soft skill that we all have naturally, and we don’t need to do anything to implement it. That’s dead wrong.
Here’s how you should apply empathy to become more successful:
Think about what your prospect really cares about. If you were them, what would you do? And why? What’s the real reason behind their “why”? What drives them? How do they get rewarded?
Putting focus, time, and energy into EMPATHIZING makes everything so much easier.
Instead of talking, pitching, persuading, pressuring… use EMPATHY. Think like they do, and watch your sales go through the roof.
You can start by asking the right questions, such as:
What’s your biggest reason for moving?
Then, LISTEN carefully to the answer and probe further, always working to gain a greater understanding. That’s EMPATHY, and it’s your ultimate sales superpower.
Thanks to Brian G. Burns for the inspiration on this RAM.
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The Deceptive Statement, “Anyone Can Post Your Listing on the MLS”
“Anyone can post your listing on the MLS system.”
This is one of the most deceptive and misleading statements in real estate marketing.
Misleading by “telling the truth” is so pervasive in daily life that psychologists have recently employed a new term to describe it:
Paltering—the active use of selective truthful statements to mislead.
Politicians have a fine art out of paltering. And frankly, so have many REALTORS®.
Of course, every REALTOR® indeed can post a listing on the MLS system. However, the question is not whether you can do it or not.
The question should be,
“HOW WELL can you do it?”
How well do you understand the target buyer?
How effective are you at focusing on the best features of the property?
How compelling is your overall ad copy?
And, of course, how good are the images you use?
Stating, “Anyone can post your listing on the MLS,” implies that the quality and effectiveness of one listing is the same as the next. But as you are well aware. Nothing could be further from the truth!
Let’s take a step back and ask, “How important is the MLS System, anyway?” To find the answer, simply ask yourself:
How does every serious, qualified, active buyer find out the details about your listing?
It’s through the MLS system, of course!
There’s actually no other way except possibly by driving by and noticing the For Sale sign or attending an Open House. But even then, serious, qualified, active buyers already know all about it! Right?
So why do so few REALTORS® even discuss this most crucial aspect of marketing property?
Again, it’s because “anyone can post your listing on the MLS system,” and most agents don’t know how to differentiate themselves from their competitors.
But I do.
What about you?
Do you feel confident demonstrating how your listings stand out from the crowd with superior photography, compelling ad copy, and other subtle elements that contribute to the most powerful MLS presentation possible?
Can you confidently state that your clients will get more high-quality showings from serious, qualified, active buyers and dramatically improve their odds of selling quickly for the highest possible price?
If not, what are you doing? Isn’t this your job?
Note: I’ve emphasized the words serious, qualified, and active several times because if a buyer is not serious, not qualified, or not actively looking, then your seller simply doesn’t care about them, right? Or at least they shouldn’t.
What’s the point of marketing to people who are not serious, not qualified, or not actively looking?
Here’s a challenge for 2023: Before you plan on finally starting to use video, before you finally figure out how to have a better presence on social media, before you up the budget on mailings and bus benches…
Figure out how to improve the impact of your listings, and then incorporate this into your listing presentation.
The easiest and most effective way to market yourself is to demonstrate to potential clients that you’re a true professional at utilizing our most powerful marketing tool (the MLS system).
Then you’ll find all that other stuff infinitely easier.
Marketing yourself is simple when you actually ARE better. That’s what Agent Skills is all about.
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5 Critical Topics to Discuss with Every Buyer
One of the most common mistakes REALTORS® make is not scheduling time to discuss the fundamentals with their clients. We tend to forget that we do this stuff every day, but our clients do not!
Then, when the client goes off track (in one of a multitude of ways), we blame them. Damn clients! They should have asked me!
News flash: It’s not their fault. It’s your fault for not educating them ahead of time.
When it comes to new buyer clients, I recommend scheduling a meeting with them as soon as possible in the process. If this isn’t practical, figure out a different way. For example, it could be in your car in-between showings.
I know it’s old-school to drive your clients around in your car, but old-school doesn’t automatically mean it’s wrong. On the contrary, I find that “car chatting” time is invaluable for developing rapport and loyalty with new clients, even if I only do it the first one or two times.
If it’s not a scheduled meeting (best) or in your car (second best), figure out another way; maybe it’s just a simple phone call. Just don’t forget to do it, or you’ll be sorry!
You don’t believe me? You must be new…
Every experienced agent can tell multiple stories about losing buyer clients (and tens of thousands in lost commissions) because we didn’t take a few minutes to educate them on the fundamentals.
#1 Establish Wants and Needs
This is the first topic you need to discuss, and it forms the basis of setting up an auto-notification on your MLS software.
Listen carefully, give feedback, and make suggestions to expand or refine their search criteria. It’s your job as a professional to provide guidance.
I could easily write an entire RAM on this topic alone, but suffice to say, the worst thing you can do is set up an auto-notification for your clients and then fail to communicate with them regularly.
I’ll write more about this topic sometime soon. Probably maybe.
#2 Align Your Motivation Levels
Just say something like this, “If you’re a ONE, I’m a ONE too, and you won’t be hearing much from me. But If you’re a TEN, I’m going to drop everything right now, and let’s go find you a house!”
This will relieve pressure and make them feel more in control of the process. If they truly are a ONE, the last thing they want is you chasing after them daily. On the other hand, you’re clearly communicating that you’re ready, willing, and able to respond quickly to their needs, whenever they are ready.
By the way, if your client says they’re a ONE, this does not mean you should ignore them. They can go from a ONE to a TEN in a hot second. You need a system to communicate effectively without being annoying (another topic!).
#3 Getting Pre-Approved
It’s obvious (to you) why getting pre-approved is so important, but you need to explain it from their perspective.
Being truly pre-approved is quite different from a verbal, “yeah you should be good.” Explain why it is so important to follow through and submit all the necessary paperwork to their mortgage professional ahead of time. It can take the bank several days to process an application, so the more work they do up-front the less chance there will be of a delay and possibly missing out on the perfect property in a competitive market situation. Paint a picture! Speak from experience! Convey the urgency!
Also, if interest rates are rising, explain to them why it’s essential to have a rate hold in place, and to be aware of when that rate hold expires. They need to maintain ongoing communication with their bank or broker.
I’m not the REALTOR® who refuses to work with anyone who isn’t truly pre-approved. Sometimes I make a judgement call. But I do make absolutely sure that my buyers understand the importance of it, and I follow up with them regularly to ensure they’re getting it done.
#4 Review All Required Paperwork
The Buyer Meeting is the ideal time to discuss Agency, the Buyer’s Brokerage Agreement, and the Purchase Contract.
Everyone has a different opinion about the Buyer’s Brokerage Agreement. Mine is, it’s incredibly confusing and stupid, and I wish it didn’t exist.
It’s the part about ‘forced agency’ that I disagree with, by the way. If I have a buyer client, and I’m doing a lousy job, that client should not be forced to continue the relationship. That said, there are other legitimate reasons to have this form signed, including transparency about how I get paid, etc. I just wish they took out the ‘forced agency’ part.
Since I don’t make the rules, I always give my clients a copy and ask them to review it and sign it whenever they feel confident to do so. Yes, I tell them I think it’s stupid (I’m always dead honest), and I explain why.
In my jurisdiction (Alberta), we have the Consumer Relationship Guide, which explains the agency relationship. I do review this form and ask my buyer clients to sign it at the initial meeting. After all, it’s not a binding contract in any way. It’s just a simple acknowledgment of my role, but the act of them signing does have a psychological effect, I think, that further cements our relationship.
In addition to the above, I think it’s wise to review the appropriate Purchase Contract ahead of time and all other paperwork required in your jurisdiction.
#5 Preplan Negotiations
Reviewing the purchase contract is a great way to initiate a discussion about potential scenarios when writing an offer. For example, what is a reasonable deposit amount? What conditions will they include? What are all the various factors which may affect the price? Etc.
I guess that’s another topic! Hey, I know I’m not going into much detail here. If you’re reading this and you want to have a chat, feel free to call me any old time 403-973-9730. Yes I answer my own phone, unless I’m in an appointment.
There are numerous other topics to discuss during the Buyer Meeting, including FSBOs and New Construction (make sure your buyers always contact you first), what to do about potential hidden cameras and microphones, how to keep a tally of the best listings (and forget about the rest), how you will help them work through conditions, and much more.
Come to think of it; I could write an entire RAM on each of these topics. Of course, I do go into much more detail within the ‘Working with Buyers’ module in the Agent Skills Master’s Program. But the main point of this short post is, one way or another, to make sure you thoroughly discuss all these topics as soon as possible and preferably before you even get started looking at properties.
This will not only alleviate future mishaps, but perhaps even more importantly, it helps to establish your role as a trusted advisor, and further cements your relationship.
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Why You Need an Accountability Partner
Ah, the life of a REALTOR®. Being your own boss is the best, right?
No more annoying boss telling you what to do and dictating deadlines for boring projects.
Now, you set your own deadlines!
Except you don’t.
It turns out that being your own boss is way more challenging than we thought it would be!
The hardest part is doing the stuff that you perceive doesn’t have an immediate payoff (even though it does). For example, fixing your website, improving your listing presentation, working on a course, or any other items in your Great Pile of Projects (GPP).
After all, we REALTORS® tend to get into the habit of simply reacting to whatever is happening every day, and there never seems to be enough time to get to the big stuff.
But if you spend 100% of your time reacting to things and 0% working on larger projects to advance your business, you are a lousy ‘Boss of Yourself!’
If this describes you, the first step is to admit it.
You don’t have to go to a meeting or anything. Just repeat after me:
“I’m a lousy Boss of Myself.”
Say it out loud.
Congratulations! You’re on the road to recovery!
The second step is to learn and implement some basic organizational skills.
One of the most critical organizational skills I constantly preach (I know, I know) is honouring ‘Appointments with Yourself.’
“Honour” is the critical word (just as you would honour an Appointment with Your Best Client or an Appointment with Your Dentist).
But why is it so difficult for most agents to honour Appointments with Themselves?
There are two main reasons:
1. We’re hard-wired to put everyone else’s needs ahead of our own.
2. Big projects seem overwhelming, so we invent (hundreds of) excuses not to do them.
#2 is all about your lazy brain (we all have one). Your logical brain knows that the longer you procrastinate, the longer it will take you to start reaping the benefits of completing those big projects. But the lazy brain usually wins out.
Making and honouring Appointments with Yourself seems simple and logical, yet we constantly self-sabotage ourselves.
So, what’s the solution?
How about an accountability partner?
I won’t get into too much detail in this tiny space. Instead, consult ‘The Google’ for best practices on choosing a partner and structuring your meetings, but here are my top three rules (which I learned by doing the opposite):
#1. Always follow a strict agenda, whether meeting in person, over Zoom, or on the phone.
Start on time, end on time, and know the agenda before you start.
#2. Don’t allow your meeting to deteriorate into a BS session.
You can schedule a BS section at the end of your meeting, but it’s business first.
#3. Set firm but realistic weekly goals.
For example, if you’re working on the Agent Skills Master’s Program, set a goal to complete one module before your next meeting.
When you do this, your Accountability Partner serves as your ‘boss’ in a way (and vice-versa), which is a good thing!
To accomplish your weekly goals, you can use Appointments with Yourself. The more tasks you complete, the more you’ll realize how powerful this tool can be.
Start by finding a partner, decide the ground rules, set a meeting time for the same time every week, and start setting goals. Then, you can use Appointments with Yourself to ensure you meet your weekly targets.
If you do this consistently, you’ll be astounded at how much you will get done before the end of this year.
Why not add this to your Brain Clutter List right now?
All you have to do is write “Accountability Partner” on your list. That will be enough to remind you.
After all, If you want more (of whatever it is you want), it’s not enough to merely read this and then do nothing. You’ve got to take action!
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How to Nail Down Those Referrals
Have you ever had a client tell you that they referred you to a friend and “they will call you,” and nothing ever came of it?
Do you know how much money you’re leaving on the table?
Referrals are the best because, hopefully, these prospects already have a warm and fuzzy feeling about you after listening to their friend raving about how great you are.
So how come you never got the phone call?
It’s because you subscribe to the HAP (Hope and Pray) referral management system.
And while you were Hoping and Praying, that potential client got a referral from a different friend whose REALTOR® does not subscribe to the HAP-System. They took action, and they got the listing, plus a purchase of a new property and two more referrals, by the way.
There’s at least $50K down the proverbial toilet. Flush!
You need to dump the HAP-System, and take charge of your own fate, by adopting some simple ‘Systems and Procedures.’
This is one of the key differences between a $500K/year agent and the agent who is constantly chasing after crappy leads.
(View the previous RAM here: How to End the Vicious “Lead-Chasing” Cycle Forever)
For example, do you have a System and Procedure to record and track prospects and referrals? I’m not talking about the back of a listing sheet you picked up off the floor. Do you have a proper follow-up system?
This doesn’t need to be complicated. For example, I myself use a simple spreadsheet that I refer to daily.
Here’s my Procedure when a client tells me they referred me to a friend and “they should be calling you.”
I ask them to introduce us over a group email or text. Almost without exception, when I suggest this in the right way, my referral source is happy to do it. After all, they want their friend or family member to contact me.
Once this is done, it’s in the bag. Why? Because I’ve got a System to ensure I follow up in the right way. I know how to ask for a meeting and still come across as non-threatening, helpful, and knowledgeable. (Nobody wants to deal with a high-pressure Salesy Slickster.)
If they don’t respond, I’ve got a System to follow up in a different way.
Honestly, this business is much easier if you learn to use simple Systems and Procedures consistently. When this happens, I do that. When that happens, I do this.
It really is that simple, and in this case, it ensures that I almost always get a face-to-face meeting with referrals and then convert them to paying (and happy) clients.
Here’s a bonus System:
When you do get in front of a referral, always give your entire presentation. Otherwise, you’ll be getting this message, way too often:
“Thanks so much for meeting with us. We appreciated everything you had to say, and it was a tough decision, but we’ve decided to go with a different agent. Thanks so much for your time!”
Ugh. That’s one of the worst messages you can get.
Especially when the other agent turns out to be Agent Awful, whom you already know will do a lousy job.
It’s called a System because it’s something you do consistently, not just when you feel like it.
Systems and Procedures. Get some!
Otherwise, you’re just winging it every day, and I do not know a single highly successful agent who does that.
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What To Do if You Suck at Social Media
If you’re one of the 1% of REALTORS® who is highly skilled at social media, congratulations! You should fully exploit this skill.
Always work with your strengths!
However, if social media is frustrating for you, consider the possibility that you do NOT need to be a social media expert in order to be a great REALTOR®.
I know many agents who waste hundreds of hours attempting—quite unnaturally—to force themselves to become social media experts. Why? Because someone told them that social media is the magic pill that makes your life as a REALTOR® so much easier.
First, there are no magic pills. Sorry. Not sorry.
Second, becoming a social media expert takes a massive amount of time, effort, and a natural aptitude that few of us have.
The truth is that social media makes a significant impact for a minuscule percentage of agents, while everyone else is spinning their wheels and going nowhere fast.
There, I said it.
It’s like attempting to become a master motorcycle mechanic when you have no natural mechanical aptitude. I’ve thrown enough wrenches at walls to understand that I’ll probably always be a lousy mechanic, no matter how hard I try.
Perhaps you should stop trying to learn a craft for which you have no natural aptitude?
After all, social media has become a highly specialized and constantly evolving field. Even high-end ad agencies have different experts who concentrate strictly on either Paid or Organic Marketing for each different platform because each requires a unique skill set.
Of course, you should have some kind of presence on social media, so go to ‘The Google’ or ‘The YouTube’ and learn the basics for FREE.
The basics may be as simple as adding a post about your new or recently sold listing or your upcoming open house. Even if these posts are on your personal profile, that’s perfectly fine so long as you post 80% non-business stuff. Remind your online friends that you’re a REALTOR®, but don’t make your feed all about business. If you do, they’ll learn to “auto-ignore” you.
Perhaps the basics for you include doing some videos. If so, definitely do this, too!
However, beyond the basics, the Law of Diminishing Returns rears its ugly head, and you’ll stop getting the return you should expect compared to the effort put forth.
After all, what’s the purpose of social media, anyway? It’s to get more business, right?
News flash: There are hundreds of other ways to get more business. For example, ask yourself if you’re doing all of these things:
1. Do you contact your past clients regularly? I reach out to my past clients (in various ways) three days after closing, then in one week, one month, six months, and every one-year anniversary. I have some specific systems and procedures I recommend in my course for this, but the main thing is to keep in touch, so you’re top-of-mind with your number one potential referral source—your past clients!
2. Are you regularly meeting and connecting with new people through open houses, community involvement, or group memberships? And, if so, are you good at gently and effectively offering your services without being a Salesy Slickster?
3. Do you have an effective monitoring system to follow up regularly with your future clients? Do you know how to be a VIP (Valuable Information Provider)?
4. Do you have a personal website, and does it clearly communicate WHO you are, WHAT you stand for, and WHY the reader should hire you to represent them?
5. Once you’ve made a connection, how’s your listing presentation? What’s your success rate at getting listings in a competitive environment against the local shark?
I could easily add another hundred items to this list. And perhaps I’ve raised more questions than answers.
But the point is that in Real Estate, there are numerous other skills you could be working on that are far more important than forcing yourself to become a social media expert, which is a lost cause for most agents, anyway.
So stop banging your head against the wall and consider concentrating on learning other skills that are far more fundamental to BEING a great agent. Then, once you learn how to demonstrate your expertise effectively, you’ll forget all about chasing the magic pill.
You’ll need to book ‘Appointments with Yourself’ in order to learn and implement the various systems and procedures you need to be effective.
The good news is you’ll have much more time on your hands once you stop beating your skull against the wall.
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How to Deliver Bad News Easily and Effectively
Now that the market is slowing down and not every listing sells in 16 minutes, let’s talk about how to improve communication with your sellers.
Do you ever stop and think about one of your listings, “OMG! Nothing is happening with this thing. What am I going to do?”
Then you decide that ignoring the problem is the best option?
If so, you are perpetuating the biggest complaint there is about REALTORS®:
“We signed the listing contract, the agent walked out the door, and we never heard from them again. That is, until two weeks before the expiry date when they finally called and pressured us to lower the price and extend the listing.”
Hey, I get it. Nobody likes delivering bad news. But do you know what’s worse than delivering bad news?
NOT delivering bad news. Procrastination makes bad news much, much worse.
So here’s how to fix this problem once and for all, and *BONUS* reduce your stress by approximately 75%.
First, do not wait until there’s bad news! If you do that, your clients will develop a negative association with you.
Surprise! This article is not actually about delivering bad news. Instead, it’s about having a reliable system to ensure you communicate with your clients regularly. Here’s my ultra-simple system that keeps me on track with every client:
1. I set up every seller on an auto-notification system, so they receive an email each time a competing property is listed, sold, price-reduced, etc.
I do not screen these emails. Instead, they go to the client automatically, informing them precisely what is happening with their competitors in the same price range and geographical area. Setting the criteria is a combination of art and science (too much information for this space). If you’re interested, just call me at 403-973-9730 and I’ll give you the basics. Or, just wing it. Being perfect is far less important than doing it.
(Master’s Program students, refer to ‘The Big Picture CMA’ for a detailed explanation and numerous examples.
2. I send a Market Update every Monday morning by email, providing my take on what happened last week. What do I use for reference? The auto-notifications above! I sort them by status date and can easily see each event that occurred over the previous seven days. Then I provide my professional opinion on each one.
Here are a few comments I might make:
a) 123 Maple Street – This is a solid new listing. It’s bigger and newer than your property and seems well-priced. I’ll be watching this one as I expect it to sell quickly.
b) 123 Elm Street – Lowered their price by $10K, making it more competitive, but I still think your property is offering better value. They will probably need to lower it again.
c) 123 Oak Street – Sold for very close to the asking price. Not surprising! It’s a higher price point than your house, but this is warranted given the superior location and larger size. The buyer of this property could afford the higher price, so they would not likely have considered yours anyway. Happy to see this strong competitor eliminated!
So, how do I come up with this commentary? Easy. I simply tell them exactly what I genuinely believe. It’s not complicated. And two massive benefits come out of this exercise:
1. Your clients feel cared for knowing that you’re carefully observing precisely what is happening in their market segment and communicating with them regularly.
And even more importantly;
2. You are forced to look at exactly what is happening with each of your listings on a regular (weekly) basis. This keeps you on top of things and makes it a lot easier when you have to report something like this:
“Based on the above information, we may need to consider adjusting your price soon to be more in line with the current market conditions. I’m not suggesting reducing the price immediately, but let’s see how it goes this week and if we don’t have any action by Thursday, talk again then. Friday is generally the best day to make a price adjustment, right before the weekend.”
By the time they get this message, you’ve probably already been communicating with them for a while. They’re appreciative, and they now regard whatever you’re suggesting as solid professional advice from their agent that they’ve come to know and trust. Plus, it’s a soft sell. You’re not demanding an immediate price reduction; just getting them to think about it. You’d be surprised how a few days of percolating can help with tough decisions.
When you do this right, you will never have problems getting price adjustments. Not that this is the sole purpose; it’s really about building trust with a reliable communication system.
When you have that, delivering bad news is no big deal.