It is all about clearance

As we come to the end of the year there’s an important skill you should know about called “clearance.” Clearance is your ability to get all of your properties sold that are currently in the marketplace.

One thing that I look for as to whether or not a property is actually sellable is the quality of indicators of interest in that property’s sale. These include enquiries, inspections, second appointments, contracts and offers.

Now, if you think about it, everything you currently have available in the marketplace has at least one of three issues. First, if the property doesn’t have enough marketing around it then buyers won’t know it’s available. If the key features and benefits of the property aren’t publicized, how does the consumer make a decision to pay more for what is offered?

The second issue is that the sales method you’re using may not create the sense of urgency required to move toward a conversion. Auction is a great sales method because it has an end date, so we generate more urgency with the buyer to make a decision to buy the property.

The final thing we draw down to is price. If we get the pricing right, we can attract more potential buyers to the home. A lot of agents use price like a blunt instrument when they’re working with their vendors. If you don’t get the price right in the first couple of weeks, there’s just no way you’re actually going to get the home sold.

One of your greatest challenges will be whether you can go for a reasonable price reduction. You have to be able to attract interest to that particular property without going too low in price during the sales process.

Ask your vendors the following questions:
– Did you expect that you’d actually have more enquiries on the home?
If they say yes, then ask,
– Did you expect you would have more inspections?
– Did you think you’d have more second appointments?
– Did you think we’d have more requests for legal documentations?
– Did you expect we’d have more offers?

Usually they will say Yes to all questions. Reply with, “Although you’ve said yes to all that, it’s pretty clear what the market is actually
telling us, and what the market is saying to us at this point is No.” Give them a few options of what to change – the marketing, the sales method, or the price.

Clearance is one of the most important things you must consider because it is the reason all of these sellers have made the decision to use you as their agent. Remember this so you will always be their most trusted advisor.