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Developing a sense of urgency

I showed a guy and his wife a mobile home a couple of days ago. At first they weren't sure that this was the home for them but at the end of the showing the said they liked it but wanted to talk with their lender before they wrote a contract. I suggest to them that if they wanted the home that we should write a contract immediately and make it subject to financing but they still went home without writing a contract.

The next day they called and scheduled an appointment to come in and write the contract but when I called the agent again for availability he said that they had just accepted a contract.

I don't think they felt a sense of urgency to write the contract that night and I don't know if this is my fault or what I could have said to develop a sense of urgency. So how do you do it? How do you develop a sense of urgency? - by Thomas
I would suggest Desire and/or Consequences.

When the buyers desire is high enough it is not likely that they are going to wait especially if they are preapproved and have money burning a hole in their pocket.

Help the customer evaluate the upside gain vs. the downside risk of waiting. Also, when the PAIN of the downside risk (Consequences) is high enough it is not likey that they are going to wait. - by Agent Smith
I would suggest Desire and/or Consequences.
Pain and/or Pleasure. How primative. ;bg - by SalesGuy
Pain and/or Pleasure. How primative. ;bg
Yet so effective. Nothing quite like the carrot and the stick. ;wi - by Agent Smith
Who needs carrots, where did I leave that stick? ;st - by SalesGuy
What carrot and what stick would you suggest? - by Thomas
Thomas,

Here's one idea. When they refused your suggestion to write a contingent offer, you could ask them "How will you feel if the house goes under contract before we do write an offer?"

If they say they won't care, then I don't think you could generate a sense of urgency.

If they say they'll be disappointed, then you could explain that while it may seem like a small possibility to them, your experience is that it happens much more often than they might think. And, really encourage them to write the contingent offer.

You could use this most recent situation as an example. I think often buyers think that since a home has been on the market for a while, the odds of someone else making an offer to beat them out is small. But, I think that home sales go in cycles. Once the home has been promoted for a period of time, the people who are interested in buying it probably do come all at once for a period of time.

Were they pre-approved for a mortgage? Maybe that would have helped.

Kathleen - by KSA-Mktg
Thanks Kathy for the suggestion. No they were not pre-approved. We're still working on that. :bl - by Thomas
"Scarcity" is a good motivator. Here are some examples:
  • Contract coming in on the same property.
  • Only five bedroom in that exclusive area.
  • Rates might go up making the payments too high.
  • For the next 24 hours only the sale will include the appliances.
I'm sure others can come up with even more examples. - by Calvin
So here's a question on creating "sense of urgency"...Is there a fine line between using the examples suggested by Calvin and pressure selling? Would the customers feel they're being pressured to buy/write an offer? How does one create a sense of urgency, but not appear to be pressuring customers for the sale?

--Scott - by Dixon Hill
So here's a question on creating "sense of urgency"...Is there a fine line between using the examples suggested by Calvin and pressure selling? Would the customers feel they're being pressured to buy/write an offer? How does one create a sense of urgency, but not appear to be pressuring customers for the sale?

--Scott
Good question Scott. I would say "How" this information is presented to the customer by the salesperson is the difference. - by Calvin
Old thread but still looking for more ideas. Anyone else? - by Thomas
Either urgency exists or it doesn't. To CREATE (the illusion of) urgency is not an act of integrity.

However, to UNCOVER an urgency certainly can serve our customer/prospect.

The two are not the same.

I own my business, and I'm also in the business of selling. If a salesperson attempts to create an urgency with me that I can clearly see does not exist, I will probably not do business with that person now or in the future. - by Joe Closer
See my post under "How I increased sales by 300%..." a little further up. - by Wonderboy
Creating that "Sense of Urgency" must be as much a part of your selling process as "Assuming the Sale" no matter the product or service.

How disappointed would you be if the home was not available tomorrow; There are several other people looking at this home; I spoke with the Listing Agent before our meeting and he assures me that there is a lot of activity on this home; The home could be on the market for the next 3 months or it could be sold tonight by another agent;

Success,

Rory Wilfong
Prospect MX - by rwilfong
Hi all,
I know that I am new to the forum but I used the timeline selling approach and it worked great.

The trainer said in this class that you should take something very small about your product, in my case a 2 million dollar home, and point out how that its different than any other home you have seen. They were very strict about NOT using the old, "How would you feel if someone else purchased this home from under you" bit. Instead find something very small.

So I did it. I was very clear to point out during the first, second and third showing of the home, how each bathroom had the same exact tile and that made the whole house flow together. I know that sounds stupid but they wouldnt go to contract. Once I reminded them of how unique it was that this home just seemed to flow....well they purchased the home and told me that was a big reason why.

That was 37 homes ago.

Strange but it worked. - by girlclozer
Don't sell yourself short, it wasn't just pointing this out to them, apparently it was your personality, taking the time to show them differences, just helping them. It goes to show that the competition is not at the top, it's at the bottom with the agents who don't take time with customers. Have a great day, happy selling!! - by mcaldwell
I think getting the client pre-approved helps create the urgency. They are now confident they can buy which makes them want to buy. IMO - by waynelong
Wayne

You should not even take a person to look at a house until they are pre-approved for a mortgage to buy a house.

Success,

Rory Wilfong
ProspectMX.com - by rwilfong
That is usually the first step but I do show people houses first sometimes. I work them in that direction pretty shortly.

I know a lot of people believe that you should get a buyer brokerage agreement and a pre-approval before putting someone in the car but I think a client deserves the time to get know you before you put a lot of pressure on them. I am good at reading people and knowing when it is more important and when it can wait. I occasionally waste some time with someone who will never qualify but I am willing to take that risk as it doesn't happen to me very often. Everyone has their way and it is usually based on past experience. :) - by waynelong
Waynelong,
I am not doing very much residential Real Estate these days (more commercial and investment) I have to say though that I agreee with you. Back when I sold residential, I used to take people out before they were pre-approved. A lot of my peers said it was bad idea and at times they were right. I believe though that it helped me get a couple of deals that I might not have had I insisted on a pre-approval letter. - by girlclozer
It works for me. I am not saying that is the proper way to do it but as I said I am good at reading people and so I don't usually waste much time with people who won't qualify or who are going to stiff me. I am convinced that I get a lot of deals that I would not have gotten if I had put the hard pressure to pre-qualify and/or sign a buyer brokerage agreement as soon as we met. I do move them in that direction as we look at homes. msnwnk; - by waynelong
Thomas,

Here's one idea. When they refused your suggestion to write a contingent offer, you could ask them "How will you feel if the house goes under contract before we do write an offer?"

If they say they won't care, then I don't think you could generate a sense of urgency.

If they say they'll be disappointed, then you could explain that while it may seem like a small possibility to them, your experience is that it happens much more often than they might think. And, really encourage them to write the contingent offer.

You could use this most recent situation as an example. I think often buyers think that since a home has been on the market for a while, the odds of someone else making an offer to beat them out is small. But, I think that home sales go in cycles. Once the home has been promoted for a period of time, the people who are interested in buying it probably do come all at once for a period of time.

Were they pre-approved for a mortgage? Maybe that would have helped.

Kathleen
This is great advice...

Buying a home is an emotional process... I would ask the question how will you feel if the house is not available when you are ready to place an offer. If the answer is It wouldn't matter or I'd be a little disappointed I would not worry about it and just know it probably wasn't "the" house anyways. If the answer is I would be very disappointed, or I REALY like this house I would go with the logical close based on their wants.

If they still don't go for it and end up being disappointed they may fall into the class of people who just need to have it happen to them once. next time they will be ready.

-Brad - by bmtrnavsky
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