2015 SELLER CLOSES
The “Insanity” Close
You’ve probably heard the phrase “The definition of insanity is to do the same thing over and over again and expect a different result.” The origin of this phrase may be unknown, but there is a reason why it is used so often. It applies to many situations, especially when it comes to Real Estate.
Often times, sellers will choose a “Wait and See” strategy- waiting to either lower the price of the home; or wait to sell altogether, expecting the market to recover.
How does this work out for them? Usually not well, considering that in most cases, the value will continue to drop over time. Many sellers that could have avoided an additional 10%, 20%, 30%, and in some cases even 40% drop in value, will take the beating simply because they continue to use the same strategy over and over again.
A good tactic is to point out to the seller that it’s probably time to change their strategy.
Give them the information they need to realize that it will get worse over time, (e.g. a pro-forma). You should encourage all sellers to recognize that the window of opportunity to get the best price possible will only get smaller as time goes on. Try using the following outline:
“You’ve lost tens of thousands of dollars doing it one way, isn’t it time you take another approach by considering my recommendation?”