Hi there, and welcome to this week’s coaching tip. Today we’re going to talk about an incredible rule around seller management called the 7-2-2 rule. Dean Mackie from our first Headstrong series taught this to me. He said that if a property that is on the market has had seven inspections, has been on the market for two weeks or has had two ads in the paper and if it doesn’t look like you’ve got a buyer who is going to move forward to an offer, then we you need to have a price change.
What I see go wrong a lot in vendor management is that properties stay on the market for a long period of time before agents are actually prepared to have decisive action. What I know in managing vendor relationships is the higher the level of intensity, the shorter the relationship will be. And the lower level of intensity, the longer the relationship will be.
High intensity is about getting on the phones and speaking with each of your vendors every day. If you can call all of your vendors first thing in the morning, it sets the expectation that you’re not only there to do business but you’re there to make things happen.
If you’re speaking to your vendors on a regular and consistent basis, then it starts to build trust, and that’s what actually counts when the moment that matter arrives and they ask you, “Should we actually accept this offer or should we try for a little more inside of the marketplace?” Remember, your vendor management is about following that simple 7-2-2 rule.
When we talk about a price change, just don’t get a price change of $5,000 or $10,000. Get a price change that is significant enough to actually put the property into the next price bracket and significantly encourage buyer activity. At this point, you also need to get buyers through properties the moment after you’ve got the price reduction. Don’t leave it to the ad in the paper or the change of the price on the internet to get more buyer activity through the home. The moment you get a price reduction, you must get a number of buyers through that property within the following 24 hours. It’s absolutely critical so that the vendor actually links price reduction equals buyer activity.
I’m a big believer in work hard and work well with people in the first 7, 14, 21 days of them being on the market and you’ll get them sold. The longer they are on the market, the more difficult the relationship is to manage and the more difficult it is to actually build great prospecting from all of that social proof in selling those properties.