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If you’re approaching buyer and seller conversations today with trepidation, fear or uncertainty, stop it.
That’s the advice of Sherri Johnson, GRI, founder and CEO of Sherri Johnson Coaching & Consulting. She has been in the real estate industry 28 years and was a top-producing agent for a decade before moving into management and executive roles with a top independent brokerage. For the last seven years, she has been coaching and consulting with top brands.
Johnson brings her no-nonsense wisdom to NAR NXT this year in a session focused on pricing strategies. We asked her...
What’s the most important thing to know about pricing?
The seller is the one who sets the price. Our job is to ask good questions, understand the seller’s motivation and provide more of a competitive than a comparative market analysis. Rather than insist on being right about the price, present the facts and let the seller decide.
Is there a common mistake agent make when it comes to pricing?
Some agents who got their license in 2020 or 2021 [haven’t had] to do a price reduction. Instead of coming in with a strategy, they come in with comps. That was OK in a seller’s market when homes were pricing themselves. A seller could set a price based on the comps, and the house would sell at or over the asking price.
In a more balanced market, you need to have a different strategy. Ask for a longer listing term and a plan to reduce the price if the home doesn’t sell for the initial price within a certain time frame or after a certain number of showings.
The number one thing sellers want the listing agent to do is to find a buyer for their home, number two is to sell the home in a time period that meets their needs, and number three is to get a good price. Price generally isn’t the top thing on their mind.
How else can things go sideways during a listing presentation?
Sometimes an agent will try to give decorating feedback the first time they meet with someone. Go in with enthusiasm about the home. Make it clear that if you win the listing, you’ll bring a marketing plan that includes suggestions for getting the home ready for sale.
You’ve talked about how to bring non-producing agents back to productivity. What’s your advice?
Agents have to build a pipeline of leads—opportunities on both the seller and the buyer side. With every listing lead you have, add value. A lead isn’t always ready for a sale, but that doesn’t mean you can’t be adding value. Say: “I’d love to see your home and give you a price opinion.”
When they are ready to sell, you must have a proven, creative strategy to get the home sold—for example, a stellar digital marketing package or an incredible network.
How would you talk with buyers today about written agreements and compensation?
Everyone in the business needs to understand the practice changes that have gone into effect, but we don’t need to talk about details of the lawsuits with our clients as they look for a home.
The buyer consultation is incredibly important. Nothing should happen on the fly or be discussed over the hood of the car as you’re heading into a showing. During my sales career, I came into every buyer consultation with a home buyer guide—32 pages that laid out everything, including how I work and how I get paid. I used an exclusive buyer agreement, and I even charged buyers a retainer fee for a time that I refunded at the closing. A written agreement brings transparency and clarity to the relationship.
Buyers don’t have to sign it the minute they meet you. Explain it to them during the initial consultation, and give them time to digest it. (Editor’s note: Many brokers and associations have created short-term agreements to use before showings. See “New Real Estate Forms Drive Client Relationships.”)
And please stop telling people there’s no inventory. When we say that, we’re telling people not to move. I call it sales prevention. We need to stop getting in our own way. Instead, say, “I’m resourceful. I will find you a house that meets your needs.” Then, do it.
