Southern Maryland Real Estate Pricing Workout for Realtors

8/9/2019 Southern Maryland Real Estate Pricing Workout for Realtors

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Hi! I’m Cheryl Ritchie, with RE/MAX 100. I’m a Realtor just like you

and I Service the Southern Maryland Marketplace right outside ofWashington, D.C. If you think of Annapolis or Baltimore orh C h k f f h l d f l

pWashington, D.C, think of me for your Southern Maryland Referrals.It’s a Kaleidoscope of Bay and Boats and Beach and Barns andCows and Fields and Horses and it’s a pretty place to be right outside

of Washington D Cf Washington, D.C.



Welcome to my 2010 Golden Results Pricing Workout!FIRST: Internal Pricing Dialogs..This is a Front Row SeatIRST: Internal Pricing Dialogs..This is a Front Row Seat

to my Pricing Approach..

SECOND: External Scripts… then A Real Live Pricing WorkoutP i S i Al d D li dractice Session…Already Delivered on a

Southern Maryland Listing (with signed price reduction attached)!This is what I say…Have your PDF ready to practice today!

THIRD: Toss Me Your Objections and Q&A!

FOURTH: NEW Powerpoint Listing Presentation Rehearsal UponR t P i i S i t Ab I l d d Thi k S D !equest. Pricing Scripts Above Included. Think , Say, Do!



Think about Noah’s Arc. His boat had to float. He had toselectthecorrectcargoandcrewandshipmatessohecouldelect the correct cargo and crew and shipmates so he couldsail everyone to SETTLE on safe shore. Sound familiar?



Remember, when you do not take or do not get the listing,S ll h d l f d h l d hometimes Sellers have disqualified themselves, so send them

roses in your thoughts.

“Notallpeopledeserveafrontrowseatinyourlife.Someyouot all p opl d s rv a ront row s at in your li . Som yousend loving thoughts to from a distance.”

And some you just throw off the bus. That’s my rendition of the

t O i thi th b t th A i N h’ Auote. Or in this case, the boat, or the Arc …as in Noah’s Arc.It’s Okay. That’s what I want you to know, Leslie, it’s okay.



How is taking an Overpriced Listing LikeD M d Mating a Married Man?



They are not availablehey are not available.

There is no to low return on investment.There is opportunity cost. While you are busy with thewrong thing, the right thing cannot come along.

And if you are unlucky enough to get one of them, they willmake your life miserable.



It does not matter who wants you. What Inventory do you want? Who do youwant? Who has a compelling reason to sell? It’s like a woman in her 50’sapproach. Sometimes the best lesson you get is that you know everything youp S y g y y g ydo not want. Which means you know everything that you do want. YOUKNOW. This Pricing Workout places the decision clearly in front of you.

H h d d M k ti g d S lli g Li ti g? ANSWERow many hours do you spend Marketing and Selling a Listing? ANSWERTHIS! This has increased with Social Networking and Tech Tools! Look atyour hourly time investment versus return on this investment. Can you afford astuck in concrete, overpriced listing with a Seller who has already disclosed tog yyou that they are unreasonable and unrealistic ? And in addition who mostassuredly is going to be a daily Brain Drain? NOTE: This Rhymes with Pain!

Remember the Garth Brooks song “Thank God for Unanswered Prayers ”emember the Garth Brooks song, Thank God for Unanswered Prayers.



You know the story about the man on the sinking Boat? No Noah Storyhere. Well a boat and plane arrived to rescue him and he kept waiting forp gGod to arrive. When he asked God what happened at the pearly gates,God said, “Well, I sent you a boat and a plane…why didn’t you take them?”

My question is why don’t you listen? They may be disqualifyingy question is, why don t you listen? They may be disqualifyingthemselves and you need to HEAR so you don’t get yourself kicked inthe REAR. Cut your Losses HERE on overpriced listings. You are astore with an inventory to sell and you cannot afford to stock your shelves

h h d ll ll D f h b dith inventory that does not or will not sell. Do you want fresh bread orstale bread on your shelves? Stale Bread that’s been on the shelf too longsells for stale bread prices. You see my Levitz Background here.



Quietly do the MATH. If it will take them a couple of months to gety p gthat their number is wrong and then another month or so to admit it, bythe time they get it and they admit it and you have gotten the correct

number there is not enough time to get the job done. You have been aBUN Warmer for the next agent to get compensated Why be aUN Warmer for the next agent to get compensated. Why be aBUN Warmer when you can be the whole plate that rates for aSettlement Date?

Bottom line, the boat that’s booked to cross the ocean is not loadedwith enough gas to get there so you need to book another boat ( orjump aboard to get another Listing) . Visualize the opportunity cost.



It can be expensive being cheap. Pick up vs. Delivery Costs. While trying torecoup the funds for this or that, the Parade has gone by. There is no Tivof L P dor a Live Parade.

While you’re busy being right, you can be busy being wrong. Think aboutthe Maytag Repairman.he Maytag Repairman.

I am interviewing them, they are not interviewing me. The 5 minute value oftime story. The “overwrite “ Levitz Story.

I am not a marriage counselor, financial counselor, or grief counselor. I amthere to sell their home and give them the facts they need to know to do so.They decide what to do with the facts but it’s my boat that’s got to float.y y g



h l h I lhose are my internal scripts when I arrive at a listing. You areinterviewing them to see if your boat will float with them aboard. Yes,

Gail, sometimes it is what is in your head that makes all the difference.Next are some of the scripts I actually use during the Workout.

Then, I’ll repeat a Pricing Workout with these scripts interspersed

h I d d h k h h P R d P k h d Ihat I did this week with the Price Reduction Paperwork attached. It’sGolden!



It’s a Price War and a Beauty Contest and you have to win at Both. This isthe BIG Kahuna. This is the Real Deal. This is where it’s at.

Price is the Great Equalizer. Think about Foreclosures. They Sell. Price

Adjusts for Everything.Casper Showings..Slippers and Jammies. Get the date to get Engaged!

The sound of Microwave Popcorn

New Kid on the Block or NEW Kid at School..New Broom sweeps Clean!

10% ARE Selling. 90% ARE NOT. Do the Oprah thing.0% ARE Selling. 90% ARE NOT. Do the Oprah thing.



Buyers VOTE with their Feet…No Pitter Patter thru the Door…You Spirits need not Soar, the vote is already cast and this vote has ayROAR!

The Market speaks to us. The Silence is Deafening.Athlete, Olympics…There’s just one Number One Winner.

Pretend you Won the Lottery and have to spend the winnings this

k d h h h h l deekend on a home in this area in the price range on this alreadyresearched paperwork ( which is your competition). How do we stack up?Let’s “Shop the Actives.” Let’s spend some of that Million Dollars onahome.Let’scompare.Areyoubuyingyourhomeback…atwhatcost?home. Let s compare. Are you buying your home back … at what cost?



The Grocery Line…The Slinky

The Maytag Repairman…Pick up vs. Delivery CostsM y g R p P p D y C

The Depthfinder

Th P tit St Th P d Th Phe Petite Store…The Parade…The Prom

Who shows up at the Party? You have to have someone to negotiate with…

As a Seller….Time is not your Friend. (In my world, neither is chocolate)

My favorite book is “Gone with the Wind.” Those are Gone with the WindPricesrices.



You are the Gatekeeper for the “Guests”…You determine how many come thruthe Gate with the pricing you determine. Picture a Drawbridge. How manyg y g yBuyers are you going to allow thru?

NAR Stats 1-2 /2-3 showings then 10 then Overpriced. I don’t need to tellyou!You’lltellmeou! You ll tell me.

Healthy Market is 6 months. This is 10. This is a Buyer’s Market. RAZORSharp Pricing is how you get in the 10%.

Why would someone buy Overpriced Home in an Underpriced market?

The Algebra Check…the Checks and Balance System…the Turnip Truckhe Algebra Check…the Checks and Balance System…the Turnip Truck



The Market has rejected this price. You need to reposition your home in themarketplace so it will sell.

What is your monthly payment and monthly cost to maintain this home? I want to

add the closing costs and price reduction a buyer may request in an offer, say3-5% and up to this monthly cost Those numbers add up to roughly for all-5% and up, to this monthly cost. Those numbers add up to roughly___ for allthe estimated months to sell . Now let’s compare this to the number you arethinking and let’s discuss a pricing strategy. You’re going to pay to play.

B f l A h ff l f fuyers want more for less. At this price, you offer less for more, not more forless. And remember, this is a Buyer’s Market saturated with a ten month versusa healthy 6 month inventory with only 10%, in the very best sales pace zip codes,of the inventory selling.f the inventory selling.



The Buyers see the Days on Market on the Printouts. The good homesgo in 30 days or so, still, even in this market. They’ve watched for ninemonths and they know this. After that 45-60 day mark or so they areA 5 y yasking how much the seller will take. Why would they offer the list price orclose to list when no one else has in al l that time? These Homes become

the leftovers. Why would a Buyer pay list price for leftovers? To them,th d f th Cl R k D t t b thhese are ready for the Clearance Rack. Do you want to be on theClearance Rack or in the Bargain Basement Department? Or do youwant to be in the Retail Store where you deserve to be? Think about it.

When you are overpriced, you are invisible to those who would want yourhome and can afford your home but are rejected by those who can and willbuy more for less. You are in the wrong price category and beingcompared to homes that offer lots more so your showings are Caspersompared to homes that offer lots more so your showings are Caspers.



Just like there are checks and balances in our government there areust like there are checks and balances in our government, there arechecks and balances in this system. Even if the Buyer has cash and hasjust landed off a boat from some remote island, the agent will representthe buyer and prepare a CMA before the offer is written… after theyh d d f h h h l h have viewed dozens of homes with their own mental cash register thatclicks and ticks. The licensed appraiser has his job to keep and theunderwriter has the money to protect for the loan. Then, there’s easyBuyer access to inventory and sales data on line. There are no secrets.y y TThe data’s all there and so are all the checks and balances.



Pricing Scripts, Blogging, House Tour: One of the most Valuable ServicesRE/MAX 100 provides. Real Energy. Not a Garden House Tour. Not there torubber stamp. We bring the eyes of the Buyers to you, the Seller , so we canW g y B y y , S ,preemptively price and and stage and correct the conditions to sell your home. Thegoal is to put you on the path of getting the Good Housekeeping Seal of Approval

before the REALBuyers come through. And if the home is Condition and PriceR d f t ( ’ th P i W d th B t C t t) th th lleady up front ( you’ve won the Price War and the Beauty Contest) then the cellphones will start humming. Because remember, our next closest competitors average 2-3X so this is the VERY valuable preemptive feedback. P.S. Please leave just as youdo for showings. It’s Good Practice! An aside :The Book “Team of Rivals.” CRS

quote: “If you and I agreed on everything, one of us would not be necessary. “ Your ownversion of yourself not someone else’s version. Each Voice Matters. Each person has aunique and valuable perspective. LISTEN & LEARN..then Sell like H…



Phantom Inventory

You are Buying in this Market, too. These interest rates and these prices.You make it up in spades this way. It’s a GAIN not a loss in the big

picture…in the long run…Real estate is long range investment.Add closing to sales price. Create Auction Environment.

Hand me the Four (one to spare) that I need to hand to the Appraiser

b h h I ll h decause that is what I will have to do.Let’s Review the Numbers. Did you get a chance to review the PDFalready I emailed earlier? Let’s look at the showing reports first….lready I emailed earlier? Let s look at the showing reports first….



THE GOAL? Have the Seller take ownership of the list pricenumber. You ask them to hand you the four comps that you need to handp ythe appraiser. When they say it, they own it. They are on your team.They know to listen for the sound of Microwave popcorn in the number

of showings. They know you are meeting with them the middle of themonth every month to discuss the state of the Listing and who stole ouronth every month to discuss the state of the Listing and who stole oursale and where we need to position the home to be the next home thatsells . They know before you tell them what they need to do. They needto mentally move and mentally prepare because when they hire me me they

h l bl S h d h SOLD R dre going to the settlement table. So, hand them a SOLD sign Rider &ask them to put it in a handy place, because we are going to WIN thisRACE. These are the systems and scripts I use for Golden Results inSouthern MD! Grab some “Gold” to get your Listings Sold!outhern MD! Grab some Gold to get your Listings Sold!



P.S. Thanks, Janie Coffey for all the hours of guidance you have givenme this past year to learn all the NEW Social Networking Skills tomore effectively promote my listings I appreciate all the webinars you haveore effectively promote my listings. I appreciate all the webinars you havedone. I hope this lends a helping hand to each of you as you develop yourown Pricing Workouts your own way. You just might not be able tomention turnip trucks like I can in Southern Maryland!

Remember, Oprah said she could be a better Oprah than a BarbaraWalters. So, do it your way and have the final say in how you spend yourday$$$$$$$ay$$$$$$$

Your life is the sum of your choices. Yes, even your Listing Choices.Choose Wisely.



How to contact me in Southern Maryland:Home Office 301 855 5215Cell 301 980 7566ell 301 980 7566EMail [email protected] www.GoldenResults.comYou’ll Retrieve Golden Results with Cheryl Ritchie, RE/MAX 100



Retrieve Golden Results with Cheryl

Southern Maryland Real Estate Pricing Workout for Realtors

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