Tips for Having Productive Conversations that Lead to Successful Deals

The challenge in this market isn’t the lack of deals but rather the presence of false expectations and a lack of crucial conversations to address them.

Buyers are pursuing homes beyond their financial reach, sellers are holding on to outdated pricing expectations, and agents are wasting time on unrealistic properties. This leads to frustration instead of successful closings.

To navigate this market effectively, you must take the lead and initiate these necessary conversations early and clearly without sugarcoating the reality. These discussions are essential for moving forward and conducting successful business transactions.

Here are three crucial conversations every Realtor should be having:

1. The buying power conversation

Before showing any more properties, buyers must understand their actual affordability, not their perceived or desired affordability. With changing mortgage rates and stretched affordability, many buyers lack a clear understanding of their financial standing.

For example, one of my coaching clients had a buyer with a budget of $1.2 to $1.3 million who fell in love with a property priced at $1.69 million. It’s crucial to obtain the actual numbers from a lender before proceeding strategically.

Taking this step of clarity saves everyone from unnecessary frustration and wasted time.

Action step: Ensure buyers have updated financial information from a lender before showing them properties. Clarity is key to avoiding disappointment.

2. The seller expectation reset

Sellers often cling to outdated price expectations and misconceptions about the current market. It’s essential to communicate the reality based on data, market trends, and experience.

Initiating this conversation at the beginning prevents wasted time on overpriced listings and sets the right tone for a strategic selling approach.

Action step: Address seller expectations during the listing presentation and establish a mutual understanding of market realities. Consider incorporating a “seller expectation sheet” for documentation and alignment.

Selling is a strategic process, not an emotional one.

3. The motivation check before lowering the price

Rather than immediately lowering the price when a listing stagnates, assess the seller’s motivation and the actual reasons for selling. Analyze data such as showings, feedback, and market comparables before making a decision.

Sometimes, sellers may not be ready to sell, leading to ineffective price adjustments. It’s crucial to base decisions on facts and motivations, not just on lowering the price.

Action step: Have a conversation with the seller to understand their motives before making any price adjustments. Prioritize your client’s best interests over immediate sales.

Here’s why all of this matters

These conversations are not just about individual transactions but about addressing the current market challenges. Uncertainty regarding affordability and pricing can be detrimental to clients and businesses.

Avoiding these tough conversations doesn’t protect clients; it harms them and your business in the long run.

By prioritizing clarity and honesty in these conversations, you can navigate the market more effectively and ensure successful transactions for all parties involved.

When you skip the buying power talk, you…