Updated 2.3.26

 

he built the house that we first lived in.

 

I think he said he spent $12,000 on that house. And it was a big, nice house. I mean, it was 20 500 square foot house on an acre. You can’t. But just so you guys know, you can’t build those for 12,000 anymore. It’s not possible. So it’s like the person, depending on how long ago was last time they bought their calibrator of their liquor is way off.

 

They don’t know. And so what happens over that 30 to 60 day period of time is they go look, they look at your 2000 square foot home and they go, you’re overpriced. And they might tell you this if they’re early, don’t get offended at it. Just know that you have to stay top of mind, awareness and in communication with them while they calibrate their liquor.

 

While they calibrate what they think they can buy for the money in their own mind. So what happens is they see your 2000 square foot home and they go, your prices do not. And then they go to another place and they look at another 2000 square foot home and they go, you’re actually higher than the guys I just looked at.

 

They’re like, you’re definitely too high. Then they go to another one and it’s similar to what yours was, was and they’re like me. And all these people’s prices are too high. And eventually they come to the realization of, I don’t know what I’m talking about. They come to the realization of, I can’t buy as much house for the price that I think I can.

 

I my brain is wrong. I can’t buy that much house for that price. And they start to adjust in their mind. I guess if I want 2000ft², I got to step up to this budget. Or they go, I guess based on the budget I have, I need to step my square footage down. So one of those things or let’s go back to our list of the three pricing objections, or the three objections.

 

They either got a step down, step up their price to get what they want, step over in A to a different location, or step down in amenities. Amenities meaning square footage, elevation. Room count. Stuff, cabinets, countertops, flooring. So one of those things needs to change so that they can get a home because they wanted to move.

 

This is why you have to ask really good questions and work through these three things that are the objections, and then understand that if they think you’re just like way too high, then it’s like, and when somebody tells me, well, they come in and they’re like, yeah, well, let me give you guys this example. You have Brady. You ever have somebody come in and they have champagne taste on a beer budget.

 

Yeah. Like all the time. Right where it’s like what they described to you that they want. And then you’re like, you don’t even want to ask like, okay, what’s your budget? Because you’re like, I know they’re going to give me a budget that’s like half of what it needs to be for them to be able to afford what they just described to me.

 

Had a guy come in the last open house I did at the Hickory Hills house, and when I asked him what he was pre-approved for, he told me 125 grand and I was like, you’re like, well, this home is 1.5 million. So that’s where else are you? I said, where else are you looking right? So it’s like location and amenities need to come way down because price is too low.

 

Right. So but people come in and they’ve got a really high expectation of what they want and they have a budget. Those are two things. Right. So what I do and this is so important for you guys to do and understand how to do this, like they’ve explained to me, they want 3000ft² in their budgets 250 or whatever.

 

So I’m like, I listen and I don’t just do not do this, do not just punch them in the face with reality. If you punch them in the face with reality, you will probably lose the ability to speak into their life and to help them find this home. So don’t just punch them in the face with reality and go, dude, your budgets way too low.

 

What are you talking about? You’re not going to be able to buy that. Don’t do that to them, right? You’ll just discourage them. They’re excited about looking for home. So when they have champagne taste.

 

Beer budget.

 

The move is this show them both. Show them both. They said they want 3000ft² or whatever the number is. Right? And they also said they have a $250,000 budget, which those two don’t match up for you guys. Right. So what you do is you go, absolutely. Let me show you some 3000 square foot homes and take them and show it to them, and then show them the price and the payment of it.

 

So take them to the two expensive homes, showing the price in the payment of it. Because what are you doing? You’re helping them calibrate. And then so show them the big square footage home. Once all the amenities and then show them the home that fits the budget and go. Because what’s going to happen is you’re instead of telling them they can’t afford it, do like every really good wife in in America knows how to do, and that is to make her husband feel like it was his decision.

 

Okay, that was funny right there, Jordan. I didn’t even get a giggle. Oh, that is funny. But my wife is the master of like, all she’ll be, like, telling me what she wants to do. And I’m like, I’m not doing that. And then later I’m like, find myself doing it. And but it was my decision. And I’m like, how does her idea.

 

Yeah, it was like my idea to do it. How did she make it like my idea to do it? I don’t know what kind of voodoo is this. And then she’s working on me, I don’t know, does she have, like, a doll somewhere in another room with some stick pins that she’s, like, making me? I don’t know how she does it, but anyways, it’s just wise.

 

So what you have to do is you have to go. You’re going to show them the home that they said they want, and you’re going to show them the price in the payment, and they’re going to be like, we can’t afford that, right? They’ll come to their own conclusion and then you go, well, guys, let me show you some stuff that is in the in the payment range.

 

You said you were comfortable with me. Just show it to you and you take them over and you show them that. And what do I always say? Logic is the midnight salesperson. When they leave you and go home, they might argue with you and go, don’t show me these little homes and your big home is too high of a break.

 

You guys are overpriced, your homes. It just means they’re early in the buying cycle and that you need to show them what they said they want because as they get calibrated, they need to be able to reference back in their mind to the one you showed them. That is the right price point, because they might actually like it at the end of the day when they 60 days later are like, okay, and they come back and they’re like, Natalia, look, I when we first met you guys, I know we were thinking we wanted to be here, but now we’ve moved our budget up to here.

 

We’ve moved it up a little bit, but we’ve also realized we can’t get 3000ft². So we’re okay coming down in square footage. And now, if you’re still in communication as they go from an inexperienced looker to an experienced looker, then what’s going to happen is they’re going to come back to you and look again when they’re calibrated to knowing what they can actually buy.

 

And so you got to not punch them in the face with reality. You need to help them come to the conclusion on their own that they can’t get what they think they can get, and that it’s okay to compromise and take some of those things off that list. And if there were ten things on the list and you prioritized them in order, and they took some of them the bottom five things off, and he came up a little bit on his budget, and they’re willing to not be in Rogersville, but maybe to be in Marshfield or whatever, you know, go to the community, the location that’s a little bit lower price.

 

Now you have a buyer when you didn’t have one before. Yeah. It’s just they have to have all the numbers to know what type of budget they’re even working with. So I think it just helps them as well. Absolutely. Which is why that lender warm handoff is like I’ve said many times, it is Brady to Gronkowski in the corner of the end zone.

 

It’s the undependable it is okay guys fine I’ll say it. It’s Mahomes to Kelsey in the corner of the end zone. Are you happy end zone. Are you happy Brady no Kelsey sucks okay so all right you pick the receiver. You pick the quarterback. But it’s the unstoppable play I like the Gronk one I like the grumble yeah yeah.

 

Jordan’s over here mentioning NHL things Jordan just be quiet over there okay. Nobody wants to hear about your Colorado Avalanche. Go skate. You go skate around teach