10 Questions that Reveal Seller Motivation

In this episode we discuss the first step to a successful listing consultation.  The "Getting to Know You" questions that reveal seller motivation and so much more.

Transcript

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Welcome to real estate common sense. I'm your host. Lisa Spencer and I grew up in a real estate family was a top producing agent and a managing broker for over a decade. Leading an office of over 400 agents. What I've discovered is common sense is not that common. Especially when it comes to launching building or expanding a real estate business. I have interviewed thousands of agents. And helped hundreds launch successful careers. Today, we are going to talk about my 10 favorite questions for revealing seller motivation. I like to call them my getting to know you questions. A lot of effort goes into the process of securing a listing appointment. Sometimes the listing consultation is a culmination of years of relationship building and providing other real estate services. At other times, we're exploring an opportunity to work with someone that we just met. How can we approach each new seller in a state of curiosity and with an intention of understanding? Industry lingo and sales jargon can bog down a new agent and quite honestly be off putting to consumers. These questions were developed as a way to explore the needs and expectations of the seller before launching into a presentation. In order to remain curious, it is best to focus our conversation around questions and then really tune into the tone and the amount of detail offered in the answers provided by the sellers. We'll cover what a listing consultation, market analysis and comprehensive marketing plan look like in future episodes. And today we'll start with the important conversation that will help frame all of the others in a way that leads to success for you. And the seller. So many agents can get lost in all of the details of disclosures and documentation. Or they find themselves caught up in contention over the comparable properties they chose for their market analysis. These 10 questions can help you avoid those pitfalls and many others. If you take the time to ask them. The first question should be obvious. And it is one that is often overlooked. What do you expect from the agent and the company you choose to market and sell your home? Ask it and then sit on your hands because if you're like me, you can't talk without moving your hands. It is very important to ask this question without any expectation around the answer, because people can often surprise you. Some people express themselves directly and use few words. They may say, I expect you to sell my house. Honor the tone and move on to the next question. Then there are people who like to say, blah, blah, blah. When a simple"Blah" will do. Let them give you the detail. You're going to get to know a lot about them as you listen to the answer to this question, remember our question. It was, what do you expect from the agent and the company you choose to market and sell your home? Have they rambled on about every detail from every episode of their favorite HGTV series or are they recounting every nightmare scenario from their last home selling experience? At this point, it is important to really hear what is being said. Are you able to meet the expectations of this seller? Do they like to drive the bus and will they let you advise them or are you already sensing some future pain points? Let's assume that this first question was met with an open and honest answer that went something like: I expect you to help me understand the best way to sell my home. I would like your help with pricing, staging and understanding market conditions. I want you to have a marketing plan and communicate how I can get the best price for my home while still meeting a challenge of a deadline of being in Ohio by June. There is no right or wrong answer here. The first question can reveal so much. If you don't interfere or interject anything into their answer. Now let's move on to the second question. Are you excited about your move? This often solicits a simple answer, but can be very revealing if it does not. You might find out that one person is super excited about relocating for a huge job opportunity. And the other is dreading leaving lifelong friends and the support of family. Someone who is not on board with the move can become a Saba tour. As you work through the negotiation inspection and appraisal phases of the transaction. So, at this point, we should take a minute to talk about where and when to ask these 10 questions, You may choose to ask them as a part of a phone interview before going to the property. Or you may wait until you arrive for the appointment. In my experience. If you ask them over the phone, you only get one person's input. So when you arrive at the appointment, it's important to do a quick recap with all of the decision-makers and get confirmation that all parties involved in the sale are on the same page. Which is why we ask question number three, when do you want to move? Or when do you have to move? An unmotivated seller might say, we don't have to move. We just thought we would test the market. This reasoning can complicate everyone's life down the road. Are they prepared to accept a full price offer and then find out that although they got a great price in this market, their move up property is now out of reach. Don't interrupt the flow of your questions. Remember this is their time to share. I make a mental note that you will later have to spend some time in your consultation dedicated to some of the, what next scenarios. This may include taking them out to be a buyer for the day before listing their home. You may have to discuss the impact of including contingencies for the seller, finding a suitable property in your marketing and into a future contract. If the seller is offering a lot of detail, you may want to ask permission to take some notes. Do you what you can to leave lots of space for sellers to express themselves while moving the conversation to question number four.

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Who else are you speaking with about the sale of your home? Don't be offended or put off if they get a bit defensive, this question is not necessarily designed to uncover your competition, but if they offer the names of other real estate brands, it is helpful. The more important reason for asking this question is to find out if they have a financial advisor, accountant or family member that they are speaking with about the sale of their home. If they have a trusted counselor that they are talking to now, they will absolutely bring them into the decisions they make later on. Ask them, if they would like to include those people in the process now. This will save a lot of headaches. Later. Many people are not comfortable making big decisions alone, but you don't have to belabor this. If they give you a confident, I make all the decisions myself, then just move on to the most important question, which is. Have you thought about a price for your home? Sometimes people will respond with that's why you're here. And then I might add. You didn't even check on Zillow or realtor.com. I really have had sellers though that are busy professionals. That were referred to me that honestly respond such and so said you're the best. So we trust whatever you suggest. Of course I'm gracious and appreciative of their trust. And then see if I can get them to give me their best guess. Again, there's no right or wrong answer here. I just want to know the level of excitement or disappointment I'm going to face when we get to the market analysis. Do not elaborate or go into any part of your market analysis. At this point, you are still in discovery mode. If they freely revealed a number when you asked. Have you thought about a price for your home then immediately respond with how did you arrive at your price? Stay curious, don't defend or agree with their price. You are just getting to know them. The answer to this question will reveal if they are a detailed number cruncher who worked up an elaborate spreadsheet to calculate a price with precision. Or whether they just heard the neighborhood gossip about the highest sale on the street, either way you can adjust your presentation of your analysis to match their style. Then move on to the next question. What are your major concerns about making a move? We want to move away from pricing right now and return the focus to how to best achieve their goal of selling their home. Are they concerned that their home will sell too quickly? They may have waited for a new construction home to be completed, or they may not have identified what they want to do. Next. Coordinating domino closings is challenging. Don't dive into a strategy just yet. Just respond reassuringly. Some may respond to that question of what are you concerned about in making this move with? I am not sure what we should do about our pet snake. Yes, that one is from experience. After the seller has shared all of their concerns and you have reassured them that you can come up with a plan to address those concerns. Jump right into question number eight. Which of these three things is most important to you. Price, timing, or convenience. This is not a trick question yet it frames the typical top three in a way that reveals a lot. As you may guess most sellers will lean toward price until you respond with great. We will then write your agreement for six months. Of course, this can vary because the impact of market conditions varies in 2010. Our short sale listings, those agreements were for at least a year. In 2021, a 90 day listing agreement was more than enough. But you'll say great. So we'll write your agreement for six months and install an electronic lockbox for easy access. Whoa. Whoa, whoa. They quickly retort. We can't have a lockbox because I'm afraid my cat will escape, or we want you to show it. Remember not to make this contentious. And somehow gently inform them that in order to expose their home to the largest buyer pool, which is how they secure the best price, we need to make it easy for their home to be shown. If they want to condense the listing time, they are limiting exposure and constricting your ability to fully market the home to all potential buyers. This is the only question where I do try to shape their view toward obtaining the best price. If they insist on a shortened listing period or personal showings. It is not going to stop me from taking the listing. But I will invest the time here to explain why it is not best for them. Hopefully, we just sailed through the question with an agreement that price was most important and they were perfectly agreeable to installing a lock box And a reasonable listing timeframe, then slip right into question number nine. What would it do to your plans? If you decided not to sell. This question can sting the ears a little. So give it a minute. The sellers may look at each other and then one will respond. Oh, We have to sell. I have a job waiting for me and we need this to happen. Or they may both chime in with, oh, we don't have to sell. We can just stay here. There's no wrong answer. They are just letting you know the sense of urgency or lack of it. This is all just information and it lets you adjust your marketing plan and your budget accordingly. We've had two tough questions. So let's wrap up our, getting to know you time with a soft landing with our last question. Number 10. I'd love to know more about you and your home. Can you share your favorite things about living here? This last question can help you understand the strength of their emotional attachment to the house. Is this a 30 year home where they've raised a family or an investment property that is depreciated and it's just time to sell before they have to do a lot of repairs. Are they going to be leaving because they're moving up or downsizing. This question can reveal those details and also help you to design your marketing around the answers. Like we just love having coffee on the Back Lanai in the morning, I will miss this view. Or I loved living on a cul-de-sac. It's so quiet at night. Hopefully this last question will lead well into this statement. It has been awesome. Getting to know more about you, your goals and your home. I'm sure you're going to have some questions for me. So before we jump into those, is it okay for me to share a little bit about our company and our marketing plan? We hope you enjoyed our coverage of the 10 questions that reveal seller motivation. If you didn't like these, I hope you've been inspired to develop some of your own. Remember, our book is available on Amazon for$11.50 and includes a 100 day productivity plan. You can also find free downloads on our website RealEstateCommonSense.com. We invite you to tune into our next episode, where we will continue exploring the seller consultation with how to explain your value proposition and marketing plan. Thank you for tuning in to real estate. Common sense support for agents launching, building, or expanding their real estate business. I'm your host, Lisa Spencer sending love and wishing you success.