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Vendor Management


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Lee Woodward, Price Adjustment System and Price Acceptance Process

In an ideal world buyers would always pay what vendors wanted for their properties. But we don’t live in an ideal world, and sometimes prices must be adjusted to meet the market’s expectations.

The key to handling price negotiations well is having a good relationship with the vendor to begin with. This means offering high levels of service, communicating often to keep them in the loop and showing you care. If all this is covered then the price adjustment conversation will flow much better.

Here are Real Estate Academy Lee Woodward’s top 10 tips when it comes to the price adjustment system and price acceptance process.

1. Have a clear selling plan, presentation and pricing procedure. This allows agents and vendors to understand what is expected of both.

2. Produce a set to sell document and organise the meeting with a clear agenda. The document and agenda will help you navigate the discussion.

3. Conduct a neutral price feedback meeting after the team inspection, providing the average neutral and Price Finder estimate. Back up your team’s opinion with the current figures to show the vendor your feedback is based on market conditions.

4. Schedule the calendar of events and actions for your plan and pricing timetable. This gives the vendor a clear indication that you are in control and have prepared for all eventualities.

5. Run a VIP property preview and obtain a possible first reduction before going live to the market. Inviting your top prospects to view the property shows the vendor you are taking action, but also means you can get some honest feedback about the price.

6. Create a vendor communication system that uses SMS, email, letters and weekly reporting in a scoreboard format with a cumulative number serving as the main agenda for face-to-face meetings. Constant communication throughout the campaign ensures vendors continue to feel they are involved and each point of contact throughout the week consolidates what is said at the weekly face-to-face meetings.

7. Keep a list of brilliant and probing questions that can be used both on the phone and as part of the agenda. Questions show your interest level is still high and may highlight additional strategies.

8. Produce CMA reports for the owner and the buyer and create a purchasing pack to send via email and hard copy. Having this information updated and on hand at all times means you never miss a selling opportunity.

9. Create a clean negotiation process that includes scripts, process and letters. If you stick to your tried and tested system, you know it works.

10. Produce a price acceptance process document with a heartfelt letter that requires a yes/no answer. Conclude this process with a face-to-face meeting. This is the time when the foundation you built with constant communication, good information, honesty and compassion will serve you well and help facilitate the conversation to secure the right price.

 

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Lee Woodward