By Randy Roussie
Why does a seller hire an agent? Simply put, sellers hire agents because they cannot find a buyer on their own. This is the ‘priority reason’ why a seller hires an agent. This insight gives the agent a powerful strategy to use when on listing appointments. It would be wise for an agent to bring a list of ‘targeted buyers’ to the appointment since this is exactly what a seller wants from the agent.
The question then becomes, “how does an agent produce a list of targeted buyers?” The answer is found by understanding the MLS. The MLS is not just a seller tool. It’s also a buyer locator tool. How so? When a listing sells, most sellers automatically transform into a buyer. And as a buyer the seller either moves up to a more expensive home or down to a least expensive home.
For example, if a seller sells a $200,000 home and is a moveup buyer, the typical move-up buyer buys a home that is 30 to 50 percent more expensive than the one just sold. This seller, now turned buyer, will consider homes priced between the $260,000 to $300,000 range.
Therefore, to create a list of targeted buyers, the agent goes onto the MLS board and requests all listings between $260,000 to $300,000. In addition, note that the typical buyer moves within a five-mile radius of where they are now living. Include only those homes within that radius in the list. It’s also best for the list to include pictures of each listing, as it positively impacts the seller.
In terms of locating buyers, a ‘MLS Listing Presentation’ is the best way to explain this concept to sellers. It outlines how the agent will use the MLS, and the MLS daily of recent sold activity, to secure a buyer for the home.