How to Raise Your Average Sales Price

business tips coaching open houses Feb 15, 2022

Everybody has an organic price range that they are successful in. This is dictated by your lifestyle and the people you’re connected to. No matter the price range you start at, if you’re a smart agent, you’d like to raise your average sales price 10-20% a year. That means your income rises, as long as you’re able to charge the same commission rate.

I grew up in a small town in a low to middle-income neighborhood. The first step I did to raise my average sales range was to get an education. Getting an education helped me learn how to talk and to figure out topics people in the higher income brackets like to talk about. I also learned how to talk about finances because buying a home is a big financial investment. Changing the way you talk allows you to go upstream easier.

HOST OPEN HOUSES

So, how do you go from selling a $200k home to a $500k home? Typically I would start by using the associative method development process. The most effective way is to start hosting open houses at a price you feel comfortable in. Hosting open houses will give you the opportunity to meet people who are looking to buy or sell in other price ranges. For example, you may meet parents looking to help buy a first home for their kids at a lower price, while they are looking to buy a home for themselves at a higher price. Or you may meet someone wanting to downsize, but need to sell their high-priced home.

Learn about neighborhoods. Pick a neighborhood that is 20% higher than you are currently selling. Then go out to that neighborhood, preview the homes, study the MLS data, then sit open houses there. This is not a big jump, but the conversations will change and the buyers may be different.

BECOME A LOCAL AREA EXPERT

Working with out-of-state people is another way to move up. Real estate agents who have the most knowledge about a certain neighborhood have a greater chance of winning with an out-of-state buyer. Out-of-state buyers don’t necessarily care what price range their realtor typically works in, they want to work with a local area expert.

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