Buyer Feedback: 'Win, Place, or Show'

Category #4: 'Out of the Money'

My favorite metaphor for how close a listing is to selling is temperature ("Listings and Pots of Water").

So, a new listing starts out at room temperature, heats up as showings (and second showings) accelerate, and reaches a boiling point by the time a strong offer (or two) comes in.

I still think that that applies, but based on the feedback my listings have been getting recently, a new metaphor seems in order: horse racing.

Four Categories

Specifically, listings these days seem to fall in to one of the following four categories:

Win: The best of what's out there. Offer imminent.

Place: First or second. The Buyer's next likeliest step is a second showing, to see both homes "fresh," dig in on the Seller's Disclosure, etc.

Show: Top three. The home had many nice attributes, and the price is in the ballpark -- but it was eclipsed by the finalists being considered by the Buyer.

Out of the Money: Didn't make the cut -- no further interest.

If a home is repeatedly "out of the money," action on the Home Seller's part is indicated: that can be either reducing the price and/or enhancing the home's appeal (by addressing whatever the most consistent objections have been).

On the other hand, if the home is making Buyers' short list, "standing pat" -- i.e., waiting for the competition to sell -- can be an option (and is certainly the path of least resistance for Sellers).

However, in a Buyer's market, I wouldn't recommend it.

That's because it risks being overtaken by new, better-priced horses -- er, listings, as well as existing listings that are not standing still, and instead are aggressively improving their price and/or appeal.

"The Close," "The Trial Close," & "The Reverse Trial Close"

Sales Repertoire

Consciously or unconsciously, every successful sales(wo)man develops some variation of the following techniques:

The Close. "Sign here."

The Trial Close. "If they agree to beef up the earnest money, is it a deal?"

The Reverse Trial Close. "With all those objections, this home sure doesn't seem like a very good fit for you."

If the objections are real, simply acknowledging that -- directly and honestly -- saves everyone time.

If the objections instead are disingenuous or posturing, nothing shifts the leverage faster than agreeing that the would-be Buyer's (long) list of flaws truly are deal breakers.

P.S.: my clients know one of my favorite anecdotes about Buyer feedback.

Way back when, I got an email from a Buyer's agent detailing -- in great length -- all the flaws in my client's home: the kitchen was hopelessly dated, the floor plan felt awkward, the bedrooms were small -- and on and on.

The last line?

"My clients are very interested. Please keep me in the loop."

"The Lights On - Lights Off" Indicator

Gauging Buyer, Seller Seriousness

The eyes are the window to the soul.

--New Testament

Want to know if a home seller is serious about selling?

They turn on all the lights before a showing.

Want to know if the showing went well?

The Buyer's agent turns them all off afterwards (yes, they should anyways -- but they don't always, especially if they're in a hurry and know they're not coming back).