Ep.33: How to Win in an Adjusting Market

An objection my team has been running into a lot recently and I'm sure that you have been running

into it as well is the move up buyer being scared or hesitating to make a move up they're waiting

for the market to rebound so that they can make their dream home purchase and the objection is

very simple hey I don't think that now's the right time for me to do this because of the market

conditions and so what I really want to help with you with today is helping the client understand

why that's not a good idea for them to wait because if we use logic to combat their fear

and they will obviously like come to the realization that waiting is actually a really really bad

decision and so I'm going to help you explain that to the client but before we even go there you

really put yourself into the mindset of the buyer right now you move into the mindset of a move

a buyer who is a move a buyer they are usually in a condo or a town home or a smaller home and they're

looking to up size and so most of the time if they're looking to up size they're looking to go from

a worse asset type a worse asset class we just condo town home into a better asset class single

family home and or they're moving from a less sought after neighborhood and into a more sought

after neighborhood so maybe they're going from you know the six and seven school district to the

eight nine nine ten school district okay great what we need to allow the client to understand is that

when you move up an asset class when you move into a a better asset class enter you move into a

better neighborhood therefore a better asset the better homes in the better neighborhoods hold their

values better in a down market and so you think about all the negativity the media spewing all of

this this nonsense and they're scared and a scared buyer a scared consumer is an on existing one

and the best way to combat the fear and and all the negativity is to simply spew watch and convey

to them in an effective manner using logic all right mr. seller mr. buyer and seller

right because they're going to buy and sell with you good for you got a great client there let's

think about this for a second so what you're telling me is that you're going to wait for this home

to rebound up to its original market price or rebound to a price where you're going to be able to

sell it and then get into that bigger home you're worried about the market conditions and so you

want to wait for better more favorable market conditions to sell it correct okay great well let's

let's play that out then let's say that right now you choose to wait let me ask you this let's say

that other property that you're looking to buy which one do you think is going to hold its value

better in a down market so if you bought today if you bought that new home today would that new home

hold this value better or with this home hold this value better they're going to say oh well the

new home is going to hold this value better awesome so what you're telling me is that you're

hesitant to make the move because you effectively feel like it's going to save you money okay but what

I'm telling you is that you're losing money by not moving into that better asset class fast sooner

because in waiting you're actually allowing your property to depreciate more than that new property

is going to depreciate and when you allow them to really understand it's like okay awesome and then

by the way it's going to hold this value better in a depreciating market when the market comes back

up what's going to appreciate faster the more desirable home or this property the more desirable home

right okay got it so by waiting effectively by waiting this property is going to depreciate more

in this cycle and then I'll appreciate less in the next cycle so will the delt is the delta

greater now or will the delta be greater then oh well the delt is going to be greater then awesome

so so it sounds like waiting is actually going to cause you to have to pay more money

wouldn't you agree well yeah what so is it better to buy then or is it better to just

selling by now oh kind of well it's better to sell it by now exactly and by the way it's the truth

and that's what the truth wins the truth wins 100% of the time so if you're struggling right now

with a move up buyer that's in that position have that simple conversation with them it's going to

help you but most importantly it's going to help them make the best financial decision possible this

day and go to everyone selling Silicon Valley state legendary everybody