PAGES 2-5 Seller QA STAR Marketing Program final 1 15 15

2016 STAR MARKETING PROGRAM

1. SELLERS MARKET--BUYERS MARKET: “ FEAR OF LOSS & URGENCY ”

1. Seller’s Markets are created when all buyers in the market realize price points are moving up - No Fear of Overpaying - this creates the

highest degree of “Fear of Loss and Urgency.” Buyers are quick to come to the negotiating table and may make offers above asking price. 2. Buyer’s markets are created when all buyers in the market place are

unsure of where the price points are or price points are moving down Biggest Fear—Overpaying low degree of “Fear of loss and Urgency.” Buyers are slower to make an offer and come to the negotiating table.

3. A buyer must feel “Fear of Loss and Urgency” to make an offer and

come to the negotiating table. Real Estate Auctions create “Fear of Loss and Urgency” like a seller’s market.

2. 3 WAYS FOR SELLER TO MARKET REAL ESTATE

The Sign in the Yard:

1. Doesn’t change the value of the property. 2. Doesn’t change the pool of prospects interested in the property. 3. Does change how you deal with the buyer - negotiate price - and timing of closing.

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When will the property sell and when will it close?

1. Seller—FSBO 2. Pre-Priced Marketing - Conventional Listing 3. 45-Day Real Estate Auction Marketing

3. THEOREMS IN REAL ESTATE

1. Buyers will always ascertain true value themselves. 2. A seller never controls the sales price of their property. 3. You maximize price when you to create upward pressure in pricing. 4. I’ve never sold a property to a seller. You will deal with a buyer. 5. You maximizing price by increasing the number of buyers participating. 6. Buyers will always initiate the negotiating process. 7. The best negotiating position for a seller — multiple offers.

REAL ESTATE AT AUCTION - COMPLETE OVERVIEW

6. HOW DO BUYERS RESPOND TO REAL ESTATE ADVERTISING?

7. 3 STAGES GOING FROM PROSPECT TO BUYER

5. YOU RECEIVE THE BEST PRICE WHEN YOU ATTRACT THE MOST BUYERS

4. POTENTIAL BUYERS FOR YOUR PROPERTY - SELL TO THE BEST BUYERS

1. There are always buyers in the market place - at different price points.

2. Many buyers have contingencies. 3. Terms of sale will affect the quality of the buyer. The Real Estate Auctions attract the best buyers. 4. Buyers are attracted to the transparency of the bidding process, they are able to see value created by other bidders.

3 responses with FSBO or Conventional listing advertising.

1. Buyers may take immediate action: call for information, set up showing, etc. 2. Buyer may take delayed action: will check it out later. 3. Buyer takes no action:

Only 2 responses with Real Estate Auction advertising All marketing is time sensitive — requires immediate action.

1. Immediate action - Once a buyer becomes aware of property the newspaper ad,

sign, web listing, etc., buyer must take immediate action - call for information, set up showing.

2. No action - that’s ok, at least you were able to force a decision from the buyer.

1. You can’t buy a property until you know it’s available - see a sign, view an ad, see a web listing.

2. You won’t buy a property until you learn about it - every buyer must do their due diligence before the offer.

3. The seller never gives the offer to the buyer. The buyer must enter the negotiating phase first - make the offer to Realtor, FSBO or place bid at auction.

1. Advertise MLS 2. Local and/or regional papers 3. Direct mail and e-mail 4. Web sites 5. Weekly Real Estate Magazine 6. Date sensitive signage 7. Multiple Open Houses 8. Aggressive marketing for 6 weeks 9. MARKETING WORKS—MAXIMIZING MARKETING

EFFORTS INCREASES PRICE

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Real Estate Auctions do not change the process Buyers must go through to purchase Real Estate.

10. 3 TYPES OF REAL ESTATE AUCTION OFFERINGS

11. 3 THINGS EVERY SELLER WANTS TO KNOW

9. PRICE PYRAMID

1. Conventional listing, FSBO - Pre-priced listing - your pool of prospects is the small circle of prospects - those that think the value of the property is same or 10% of asking price.

2. Real Estate Auction - you negotiate with the prospects from the large circle - everyone that is interested in the property which ensures the best price.

The Real Estate Auction will realize the same price as the conventional Listing.

High Bid or Offer

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All sellers will have one of two comfort levels for marketing Real Estate.

Price Specific - Focus on price rather than marketing results.

Marketing Oriented - Understands seller must deal with a buyer; is comfortable maximizing marketing efforts to attract the most buyers and to generate the best price.

Seller has two marketing options to attract buyers:

Price Specific Marketing - conventional listing with Realtor - FSBO - this is where you develop the best price by trying to attract an offer from a buyer who thinks the property is worth the asking price.

Market Oriented - you develop the best price through competitive negotiation with all buyers interested in the property.

8. The Litmus Test for Sellers - How will I know Real Estate Auction Marketing will work for me?

Negotiate one offer at a time with pre-price marketing.

Negotiate best market price with multiple offers from all parties in-

terested in the real estate.

1. Reserve Auction - Sellers are more comfortable however, it creates least degree of “Fear of loss and urgency” and reduces

participation from buyers. 2. Absolute Auction - Sellers initially not as

comfortable, however creates highest degree of “Fear of Loss and Urgency” in minds of Buyers which maximizes the participation and increases price.

3. Published Minimum - the lower the minimum the Buyers will react as though Absolute, the higher the minimum the Buyers will react as though a Reserve.

The type of offering that a seller selects does not change the value of the property. It only effects whether a buyer will participate in the Real Auction. Estate Auction.

TYPES OF REAL ESTATE AUCTION OFFERINGS “Pendulum of Comfort Level for Sellers”

1. Reserve 2. Absolute 3. Published Minimum

The Irony of negotiation: the person making the high bid or offer thinks they get a buy, the back up offer or bidder won’t pay another thousand.

1. When am I going to sell it? 2. What will be the price I receive? 3. When is it going to close?

The Real Estate Auction marketing program is able to answer two out of three for the Seller.

JACK DAVIS / REALTOR / AUCTIONEER / C-330-703-1750

HANNA COMMERCIAL / CHARTWELL REAL ESTATE AUCTIONS