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Focusing on Vendor Lists: Unique Value Proposition for Vendors
- Focusing on seller listings is a strategy where focusing on serving sellers exceptionally is a way to close more deals, and a key to building a strong brand.
- From an economic perspective, seller listings represent “assets” that can be invested to generate more “assets.” From a behavioral perspective, the “Halo Effect” plays a role. A satisfied seller conveys their positive experience to others, creating a positive perceptionโ of the real estate agent/team.
- Pareto Principle (80/20 Rule): 80% of your results come from 20% of your efforts. 20% of your clients (satisfied sellers) may generate 80% of future referrals.
- Diffusion of Innovation Theory: Explains how new ideas and products spread in society. If you are among the first to offer unique value to sellers, you increase your chance of becoming a market leader and attracting more clients.
- A Unique Selling Proposition (USP) is what sets you apart from competitors and attracts potential sellers.
- Definition: A USP is a statement that clearly explains the value you offer to your clients that your competitors cannot provide.
- Essential Components of an Effective USP:
- Target Audience: Who are the sellers you are trying to attract?
- Problem: What problems or challenges do these sellers face?
- Solution: How does your team/services solve these problems?
- Differentiation: What makes you different from the competition?
- Proof: How can you prove that you deliver the value you promise?
- Examples of Seller-Centered Unique Selling Propositions:
- “We sell your home at the highest possible price and in the shortest possible time. We guarantee it.”
- “Our dedicated team will handle all aspects of selling your home, saving you time and effort.”
- “We use the latest marketing technologies to reach the largest possible number of potential buyers.”
- To determine the effectiveness of your seller-centered strategy, track the following Key Performance Indicators (KPIs):
- Selling Price to Asking Price Ratio:
- Formula: (Selling Price / Asking Price) * 100
- Goal: Achieve a ratio higher than the market average.
- Average Days on Market (DOM):
- Goal: Reduce the number of days it takes to sell a property compared to the market average.
- Calculation: DOM can be calculated by summing the number of days on the market for each property sold during a specific period, then dividing the result by the number of properties.
- Net Promoter Score (NPS):
- Description: A measure of customer loyalty based on the likelihood of customers recommending your services to others.
- Calculation: NPS is calculated by asking customers how likely they are to recommend your services to others on a scale of 0 to 10. The results are grouped and customers are divided into three categories: Promoters (9-10), Passives (7-8), and Detractors (0-6). NPS is calculated by subtracting the percentage of Detractors from the percentage of Promoters.
- Goal: Obtain a positive and high NPS.
- Number of Referrals from Sellers:
- Goal: Increase the number of referrals you receive from satisfied sellers.
- Gross Profit Margin:
- Formula: ((Total Revenue - Cost of Sales) / Total Revenue) * 100
- Goal: Increase profit margin by providing value-added services to sellers.
- Selling Price to Asking Price Ratio:
- Building a specialized team focused on serving sellers is a strategic investment.
- Specialization: Dividing tasks among team members allows each individual to focus on their area of expertise.
- Efficiency: A specialized team can accomplish tasks more quickly and efficiently than an individual agent.
- Quality: A specialized team can provide a higher level of personalized service.
- Model: The specialized team model can be applied by creating specific roles such as “Property Preparation Specialist,” “Marketing Manager,” and “Negotiation Specialist.”
- Marketing effective seller listings is a tool to generate more seller listings in the future.
- Use successful seller listingsโโ as Case Studies:
- Showcase success stories on your website and in marketing materials.
- Share testimonials from satisfied customers on social media.
- Use data and statistics to prove that you achieve better results than competitors.
- Organize Open House Events Strategically:
- Use open house events as an opportunity to network with potential sellers in the area.
- Collect contact information from visitors and follow up with them later.
- Offer special deals and discounts to sellers who attend the event.
- Targeted Digital Marketing:
- Use online advertising to reach potential sellers in your area.
- Target advertising based on demographics, interests, and online behavior.
- Use retargeting techniques to reach people who have visited your website or interacted with your content.
- Use successful seller listingsโโ as Case Studies:
- Top Ten Areas for Providing Added Value to Sellers:
- Needs Analysis: Help the seller clarify the reasons for selling and determine the timeline.
- Pricing Strategy: Determine the best pricing strategy based on current market conditions and present the potential net profit.
- Property Preparation: Provide advice on necessary repairs and improvements and offer ideal display strategies.
- Marketing Strategy: Develop a comprehensive marketing plan and determine a marketing timeline.
- Receiving Offers: Evaluate the offers submitted.
- Negotiating the Sale: Negotiate counteroffers and advise on final terms and conditions.
- Sale: Prepare a post-contract task list and provide advice on repair and maintenance services.
- Preparing for Closing: Coordinate and oversee document preparation and provide pre-closing advice.
- Closing: Review closing documents, resolve any last-minute issues, and complete the transaction.
- Post-Closing: Coordinate the transition process and assist in resolving any post-closing issues.
Chapter Summary
- Strategic focus on sellerโ listings is key to success in the real estate market.
- Focusing on seller listingsโ attracts both sellers and buyers, generating salesโ for buyers and increasing deal completion opportunities.
- A strongโ marketing message should be centered around a unique value proposition specifically for sellers.
- The unique value proposition for sellers should include obtaining the highest selling price, speed of sale, and providing additional value.
- Achieving the highest possible price requires tracking the percentage of selling price from the asking price compared to the market average and training listing specialists in effective communication.
- A faster sale requires correct pricing and specialized consultations for sellers on preparing their homes attractively.
- Providing additional value means offering a comprehensive solution to all seller needs, including a network of real estate-related serviceโ providers.
- The top ten service areas in a seller value proposition include needs analysis, pricing strategy, property preparation, marketing strategy, offer reception, negotiation, sale, preparation for closing, closing, and after-sales services.
- Teamwork provides a higher and more consistent level of service than an individual real estate agent.
- Marketing seller listings should be viewed as a tool for generating more seller listings, aiming to attract both potential buyers and sellers, capture their data, and follow up systematically.
- Real estate agents should re-evaluate marketing strategies and focus on meeting seller needs.
- Real estate agents should invest in training listing specialists.
- Real estate agents should develop a network of real estate-related service providers.
- Real estate agents should leverage the power of teamwork.
- Real estate agents should use marketing seller listings as a tool to generate more seller listings.
