The Value may not be the transaction point

Hi [name] and welcome to your Weekly Sales Tip for [date]

 Remember when selling and negotiating, that the value of what you are selling doesn't  mean that's the price it will change hands for.

Four things affect the transaction point - the price paid.

1 The motivation of the parties

2  The quality and target of the marketing

3  The appeal of the product - a well presented and appealing home will always have buyers. Like-wise a log-home may have one buyer, but they already live there.

4 The skills of the negotiator. 

Let me give you an example;

A bottle of water is priced at $2.80 but you are just coming off a long walk across a desert and are desparate for a drink. You only have a $20 note. You come across a water salesman who has one bottle left and no change to give you. You pay $20 for a $2.80 bottle of water because to you the value has changed.

When appraising property it must be difficult to get closer than a 10% range, despite there being ample evidence as to its value - you just can't always predict the price it will change hands for - the transaction point - because of the 4 points above. 

I have no doubt that the best real estate sales people are awesome at managing all 4 of those points and their fee is great value to the seller. Likewise those who seek to capture business based on the lowest fee are focused on how much they save their sellers. They do this before they even see the product, before thay start looking at the value and then the tramsaction point. Sellers should be educated to to be focused on winnning at the transaction point by having an awesome salesperson who manages these 4 points, rather than risking the cost of focusing on the what they maight save in commisssion. 

Quote for the Week

"Use what talents you possess: the woods would be silent if no birds

sang there except those that sang best."

Henry Van Dyke  

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Have an awesome week [name] and

have fun and make money


Posted: Sunday 22 April 2018

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