Seller Processes & Contracts with Emily Kettenburg

I attended this webinar on May 8, 2024. Here are my notes, enjoy!

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Also on the panel: Sandra Hendrix, Carolyn Augur, Tausha Fournier, and Stephanie Younger

This is the halfway point through the NAR Effect Webinar Series.

The ability to balance your business as both a buyer agent and listing agent is the key to growth in your business.

Forms and processes are the only things that are changing, there’s no reason to have your hair on fire.

Lean into your state and brokerage-specific forms. Each state is reviewing their forms and are making the necessary adjustments. Each state will be a bit different, so be sure you are paying attention.

Five-Part Listing Process:

1. Prelisting consult and fact-finding
2. Knock knock and walkaround
3. Sit down – why us and exposure
4. Pricing presentation
5. Signature

Real estate is a relationship business built on trust, the commodity is the house. We are in the trust business.

Step 1: Prelist and homework.

This is a fact-finding mission. Do your homework and ask questions in advance to prepare for the in-person meeting. 

Step 2: Knock Knock and Walkaround

Thanking the client for choosing us, gaining trust and showing professionalism. Show them you appreciate them spending their time and that they’ve chosen you to come talk to them today. 

When you tour the home you take notes so they know you are actively listening. Even if you don’t need to, take the notes to show them how committed you are to the details.

Step 3: Sit down

Unique value proposition. This is about creating the value for them. Explain how you are going to share their home with the market.

Step 4: Pricing Presentation

Make sure the seller understands the difference between fair market value, vs perceived value.

Fair market – highest and best price that someone will pay without any undue stress to the buyer or seller.

Explaining agency and how commission works/how everyone gets paid.

Explain how agency works in your state. Be sure to bring a buyer agency agreement with you to the listing appointment so they can see what the buyers are signing before they view the home.

Step 5: Signature

You’re asking for the job of marketing and selling their home. 

Each part of your process is a conversation that takes your seller one step closer in their decision forward to hire you. Each of these steps is your interview. They aren’t your client until you have a signed agreement with them and they have a copy of that signed agreement.

Don’t underestimate the value of a true client for life. Your goal is to represent them forever.

Today’s consumers want to be served vs hard sold. They need and deserve a clear understanding of how we work for them and how we represent them.

The biggest complaint of real estate consumers is communication. It’s been #1 on the list for the last 20 years.

What is working for Step 1: Pre-List and Information Gathering

Break it down into 3 basic objectives that you want to happen during this step:

• Establish or re-establish rapport
  • We are solution oriented people, we sometimes need to slow down and connect with the person that is the client. Don’t go straight to the sale. When you are connected, you work together as a team. Rapport is often skipped or rushed, but this is the foundational piece of the relationship. This helps you to have hard conversations down the line.
• Situational details. What are the details of the situation that you need to know.
  • Why. When. What has to happen in order for this move to be successful. What timelines do we need to be aware of? What other things have to happen prior to us hitting the market.
• Property details. What has changed since you last saw the house?
  • What changes have been made? Upgrades or updates? Ask them what they think it’s worth. 

The agents who have these three steps down, are consistently bringing in more listings. This helps the potential client to see what it’s like to work with you. They can relax into the process and trust that you’ve got it. 

Most people think they win or lose their presentation on price. Not true. You most often lose on step 1 or two.

Step 2: Knock Knock and Walkaround Strategy

Is there a way to turn one listing into multiples? This is also known as a viral listing strategy. This is the part where you establish the expectations. Expectations can only be met when they are understood.

ListingLeads.com – you can find a ton of scripts here from Tom Ferry and Jimmy Mackin

Viral Listing Strategy: Before we even go to the appointment we are going to send an email to our database that says that I’m going on a listing appointment! I can’t share too much about the house, but I’m about to meet a potential seller who is thinking their home. I can tell you that homes of this size/neighborhood/etc. Typically sell at _____ price. If you’d like more details, reply back and I’ll send them to you.

You can also turn this into an Instagram story with a poll to generate interest in the potential listing as well.

When you get to the appointment, you can show the results of these two+ efforts to the potential client. This shows the potential interest in the market about their home and will also show the potential client you are already making efforts to sell their home.

When walking around, keep the focus on the client. The walkthrough is the most important part – you are getting to know the house so you can market the message. What’s the story of the home, what did the seller enjoy most. Ask about renovations, ask about any known repairs that need to be made. Why are you moving? Where are you moving to? What’s important to you? What do you want out of this transaction? This is the time to build trust by being a great listener.

Is there anyone else that needs to be involved with the decision-making?

What are your communication preferences?

Tell me about your financial situation. This is an enormous financial decision – treat it with respect.

You need to understand the market financially and be able to explain it to them.

Ensure that you are using “we” in conversation. 

Frame your expectations: you expect them to sign with you and for you to sell the house in terms that suit them best.

Marketing and messaging is important and you collect most of this information during this part of the process. 

This is a great opportunity to build trust and rapport. We are giving them all of our attention and showing that we are working together to sell this home. 

Also by asking these questions you can kind of figure out their social style or DISC profile to help you during the sit-down portion so you know what to focus on that will be much more important to them.

• Numbers people?
• Emotions/Feel people?

Marketers need to know their audience – the seller is your audience for this presentation.

A small gift/gesture also helps during the initial meeting. 

Role play these conversations so you are really comfortable and know how to cover all the questions you need to ask.

Step 3: The Sit Down

Your Unique Value Proposition and your unique marketing is presented during this time.

Most sellers want to know that you have a social media strategy to market their property. You will need to be able to illustrate what you will do and how you are different than others in the area. We are in a sea of sameness – this is your opportunity to really stand out and highlight what you’re doing from a marketing position that will solve problems for them in this process. 

• What are your favorite things to do? What can you do to give additional exposure to their listing?

Go through your entire presentation. Are you highlighting everything that you do that solves problems and creates add’l exposure? Or are you just highlighting the things you like the most? You may be excited the consumer needs to know how this will benefit them and the results that you get from those activities. 

• Show your efforts before, during, and after the sale to generate interest.
• If you show your social media post and email that you sent out prior to the meeting and the results, it shows that you are willing to do the job before you even get the job. You’re already working for them and they didn’t even ask!

Your value is the problems that you solve for the seller and exposing the property to the largest amount of people possible. Illustrate how you do this for them

Step 4: Pricing Presentation

Reconfirm why they are moving, what their financial situation and goals are, and figure out their communication style.

• The analytical will want more information and specifics. Know who you are presenting to

Four pricing strategies you need to know for each of your listings

1. Value market pricing. Creating a CMA and pricing accordingly to that. You’ll use this strategy in a buyer’s market.
2. Price Banding. When you separate your listing price from the bulk. Most listing you are looking at in this area. Let’s price it a little bit out of the group to draw more attention. If all the homes are between 300-320k, list yours at 299k. Don’t have your listing bunched up with other listings, separate it a little bit lower from the group so it gets more views.
3. Price High and test the market. You can only do this if the home has something unique. Use only in a seller’s market.
4. Psychological Pricing. Set your price apart so the buyer feels as though they are getting a deal. $299k vs $300k

Agency in your state – understand both buyer and seller agency and how they work. Be able to explain these to the client.

Bringing a buyer agency contract and explaining it to your seller during the meeting

Most of us don’t give the whole picture of the transaction. Especially with the upcoming changes, it’s especially important to illustrate what the buyers are doing and how they work. 

Step 5: Getting the signature

The hardest part of getting the listing is getting the lead in the first place. The more opportunities you have to get in front of sellers, the better your listing strategy will be. Prospecting more and talking to more people is key to building the listing side of your business.

Stephanie made a commitment to go on 200 listing appointments in one year. She signed 72 that year. Her conversion wasn’t great out of the gate, but it takes time and practice by going on tons of appointments to improve. 

The power of closing is more of a mindset than specific words. In their listing process they have a seller intake call that takes roughly 30 minutes. A walk through that’s 30-45 mins (they say it takes 15 minutes). Their presentation is about an hour and a half or longer. She gets a lot of criticism that this is a long time, but it’s worth the investment of preparation and time with the client. You are interviewing for a job that pays a lot, it should be taken seriously. The likelihood of you getting the listing is better the longer you are taking with the client.

Their strategy is asking lots and lots and lots of questions. One of those is “what price are you hoping to get for the home?” 

Practice the art of asking more questions. Your goal should be to listen more than you talk. 

There are six types of closes. You’ll want to change your strategy depending on who you are talking to. You can use them situationally and together.

Have a well practiced and well researched presentation. If you don’t have this, there’s no closing trick that will help you secure that listing. You must have a listing presentation.

A, B, C. Always be closing. This is closing the client throughout the entire presentation. Try to get agreement throughout the conversation. “Because you said yes to this….” You can use a summary close at the end to review. 

Read: Never split the difference by Chris Voss – use a late night FM radio DJ voice a bit to create a calm conversation.

In her listing presentation, she practices the art of being slow and even, curious and clear, and controlling her facial reaction or flushing reactions. A professional expects objections and questions. Don’t let your tone and face show that you are uncomfortable about commission or any other matter.

You will be improving all the time. Even with 20+ years of practice there are always ways to improve and do better.

Learn to keep track and re-state what they said was important to them. This shows that you are listening. She likes to use summary close paired with an assumptive close:

Because you said this was important to you…and this and this…and I love this house and would be honored to sell it, I would love to list this house with you. Or it sounds like we are ready to work together (if you are feeling super confident). 

I’ll get the paperwork sent over to you to sign/I have the paperwork right here for us to sign.

Don’t oversell it. Summarize what is important to them that you can deliver to them, say that you would be honored to sell the house, and then ask them to sign the paperwork.

If you don’t have a well-practiced process and presentation, you probably aren’t going to get the listing anyway. You can practice and you can get better. 

Ask the potential client if they have heard about the NAR changes and walk them through the facts regardless of their answer. 

A conversation is a frame. Start with curiosity, move into empathy, and then move into a close. Don’t skip steps or they won’t be comfortable. 

Building trust happens in all 5 of the steps. 

You are closing throughout the process, just don’t forget to ask for their signature before you leave.

It’s not anything other than forms and processes. Don’t be intimidated by big NAR changes here. If you can clearly convey options the seller has, how everyone gets paid, this process will be easy.

Know your forms and rules inside and out.

Be able to convey your value.

Bringing a buyer agency agreement with you to the appointment so that the seller understands what buyers are going to be seeing before they view their home. This also helps them to understand how the commission works on the buy side. 

If the seller is also potentially a buyer, you are getting a step ahead there as well.