It has now been proven beyond any shadow of a doubt that us humans respond better when we have a deadline or a decision day. It’s like a phone bill, we really only pay it when we are prompted to pay or even sometimes when we get a demand to pay it. The reason for this is that we do not like making decisions simply because we do not want the responsibility of making the wrong decision, so inevitably we avoid making a decision at all until we are literally forced to do so. So how do we use this and to who’s advantage is it?
Funnily enough, it can work to everyone’s advantage. Let me explain how. First of all, we can use deadlines in the sales process by using marketing strategies such as auction, sale-by dates, or even if we set a price or give a price range, we make sure there is DATE that offers will be decided upon. The great thing about these methods of sale is that they have deadlines for when buyers have to make decisions. This is ideal for the sellers. If there is no deadline, the buyer will just keep looking for something else and inevitably find it. Auction date or fixed date sale can prove to be very beneficial for the buyer as well because sometimes the seller needs some air-time on the market to help their motivation escalate. Therefore, having a date when buyers AND sellers have to make a decision is in our best interest and causes the perfect storm and forces a sale.
This is not the only way deadlines and decision days are used in real estate, here are some more that may assist you to get the job done quickly and more efficiently.
- The 48hr or 2-day clause that is used to give notice to buyers of subject to sale properties that another offer has been presented and they have this time to make their offer unconditional or they will miss out.
- Finance and conditions that have decision or deadlines, what would we do without those?
- When properties have been offered VIP or OFF MARKET to potential buyers, it is a great way to let them know they have a certain date in which to make a decision or else the property is going to hit the OPEN MARKET. This works by creating fear of missing out.
- When you have a very keen buyer and you have a DECISION DATE like AUCTION or SALE BY DATE, you have leverage to actually motivate them to make a decision prior to that particular date through FOMO.
- On the deadline or decision date, a great way to motivate buyers to commit is to remind them that if it does not sell on that particular day, it will be priced very attractively to shock the market and get multiple offers, therefore causing more of a competitive environment and forcing them to pay more
- When dealing with sellers, a great way to get them to react and realign their price is through making specific deadlines when changes need to be made. We call this the 7 & 14-day change-up policy.
The list goes, but hopefully this gives you the idea of how powerful DEADLINES and DECISION DATES can be. No matter what you do in your business, make sure there is a goal date set and your business will change, making life a lot easier, less stressful, and keep you firmly in control.
For more great strategies, make sure you register for the upcoming Real Estate Brilliance seminar. I’ll take you through my 9 Pillars of Real Estate Success and show you how to take the bull by the reigns in the new decade. Look forward to seeing you there.