When is it going to sell?

When we set realistic expectations, Sellers are less likely to pressure us (or blame us) when it takes a while to sell their house.  Using a formula for estimating Days On Market (DOM) is not only logical, it puts the “monkey” where it belongs:  on the Sellers’ back.

The truth is, our marketing plan works!  We know it does.  We know we can sell any house in any condition….at the right price.  So, when a Seller chooses their price, they need to be aware that the time it takes to get their money at closing is determined by them….not us.  Our job is to inform them so they can make a wise pricing decision.

So, how do you answer the question, “When is my house going to sell?”

If you’re a Wickman Graduate, you learned a formula for calculating the time between when a property hits the market and when it closes.  Explaining this formula to a Seller is an essential ingredient in your listing presentation and will save you from having to backpedal and from having a dissatisfied client.

First, remember that a great salesperson never tells someone something s/he can show them. 

That means you need to draw this formula, not just say the words.  Commit to doing that from now on.

The first thing you’re going to write down is the DOM for similar homes in the area at this price range.  Let’s pretend, for our example, that it is currently 48 days.  It’s a good idea to actually show the Seller the MLS data that states that (whether it’s a chart or a summary line).  Your dialogue might sound like this: 

“With 25,000 Realtors in our area, the average home in this price range over the last 6 months, took an average of 48 days to sell.”

Next to that, write down the date on the calendar that is 48 days from today.

Then you add 50%.  That’s 24 days.  In class, we call that the adjusted market time, and here is how you might explain it:

“Of course, that number (48) isn’t really accurate.  It doesn’t include all the folks that tried to sell for months without a Realtor, or had to hire 2 companies to get the job done.  It doesn’t include someone who had it on the market, then took it off for a holiday, and put it on again a month later.  So we add another, oh, 24 days to make it more accurate.”

Notice, I didn’t say 50%, just the number.  If they ask how I know, I’ll simply say, “real estate experience!”

Now, I put the new date next to the 24.

The next number I write is the amount of time it takes from the point of contract to the date of closing.  You know your area and your mortgage companies’ timing best.  For our example, let’s say it’s 45 days.  Your dialogue may sound like this:

“Now, that’s not when you get your money.  That’s when you and the Buyer agree to enter into a contract.  Now the Buyer has to go get the loan.  They need an inspection, an appraisal, and time for the title search to be done.  Then the closer (or attorney) has to prepare all the documents.  All together, that probably takes another 45 days.”

After writing 45, place the date that is 45 days from your last date.

Now we summarize.  “So, start to finish, it’s going to take an average of about 117 days.”

And then circle the date by which, on average, they should close.

Then, it’s time for a closing question.  “Does that work for you?”

If the answer is yes – you’re on your way!  If they need it sold quicker, they’ll need to reduce their price.  If they need it sold quicker and do not want to reduce their price, that’s okay.  Just get them to agree that this is their decision, and promise they won’t be mad at you!

Answering this question with a visual that can be stored in the file, in case it’s needed to remind the Seller that they chose the timing (not you), will set you apart from every other agent and keep your clients happy.

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