Wow ! I had totally forgotten about Abraham Maslow’s hierarchy of needs until I read Peak by Chip Conley. The way he relates it to the business world, especially for someone like me who is intrigued by human behavior, is fantastic! I was a psych major and have a Masters in social work. My journey has taken me through sales & management, specifically in the real estate business and my successes & failures have been due in great part to my observation & understanding of people & their behavior as well as my own behavior.

So back to Maslow. Here is his Pyramid

•  At the bottom of the pyramid is survival – meeting a customers expectations. Here you are focusing on the basics … such as finding them a property.  Do you think that customer will be referring you if you just meet his/her expectations?
• At the middle of the pyramid is success in our social relationships and within ourselves. This is where we feel a sense of accomplishment as a business person. This is also where we create loyalty.Think who are you ad what are you Selling ? It is probably not what you think !
• At the top of the pyramid is transformation; meeting the unrecognized needs of your customers. This is where you create customers for life.

What are You Selling  to Whom?

Just focusing on the base needs will  never allow you to transform the relationship with customers to its greatest potential. Imagine the progression from survival to success to transformation.

Creating customer satisfaction will not ensure that your customers will be loyal to you and not wander, in an increasingly  promiscuous marketplace. Tapping into the desires of your customers may be the one and only thing that creates the differentiation between you and others. When a customers desires are met they are more likely to stick with you, and refer you to friends, family & colleagues.

 Chip Conley describes a parallel phenomenon  with the three levels of the employee pyramid above.

• Money is at the base of the pyramid it creates a base motivation
• Recognition/success creates commitment
• Transformation at the top creates inspiration & meaning

How many companies are actually looking at these things? Most are so busy at the bottom of the pyramid they cannot get out of their own way.  I highly suggest they read the book, Peak by Chip Conley. He took his company in a down market, to the top by focusing on aspects of this pyramid.

I challenge you all to focus on your customers and to start listening to what they are telling you. There is alot of information between the lines!

One of the main challenges for Real Estate agents is how to price properties.
We have to make sure:
*Our sellers get as much for their property as possible
*Potential buyers/cooperating brokers find it attractive enough to get traffic and realistic offers to present to our sellers.
*Once we are in Contract the property appraises
*If it is a Short Sale, the Buyer’s lender must find the purchase price reasonable to accept the reduced payment.

In simple words: Price Wisely!

We, as Real Estate Agents, normally have two choices when dealing with what a seller expect to get for their home.
-Share what we know. It’s our job to gather information to help price the property right. An over priced property is a frustrating experience and a waste of time for all parties involved. I understand how hard it is to accept that our property is worth less that what we paid for or was valued a couple of years ago, but that is a reality that might not change very soon. It is better to address the options a seller might have and take action according to his/her best interests. If the property MUST be sold, it has to be priced to sell.
-Tell what the Seller wants to hear, a NO NO for me. Telling a seller that their property is worth more than what it really is, I find it’s insane. I know they might want to hear that…. but will that help them at all? Over price a property can create expectations that later will be a source of disappointment

What we look for when setting a Price?

-Sold Properties: I look at comparable sales to get an idea of how much the property will appraise for. Yes! I said to get an idea because every appraiser makes apply their own criteria when pricing. The comps they use, the values they give to views, pools, etc… Many times when more than one appraisal is made on a property they differ. I do a lot of research and look for closed sales, pending sales, potential upcoming foreclosures and general market trends. I also keep a close eye on the market to be aware of any new comparable sale that might affect our property.

-Active Listings: I try to forecast what other properties our potential buyer could be looking at and I put myself in that buyer’s shoes. I look at out competition in the price range and suggest the seller to price in a way that we get picked in the first list of properties a real estate agent will send his/her client(s), normally the best 10 to 15 values and in the list of properties that client will choose to see in the first “round”. Someone buying in Weston will look for properties in different communities in Weston and often they will also consider other areas like Pembroke Pines, Miramar, SW Ranches or Davie.

How NOT to price?

Sellers often think they can price backwards, based on how much money they need to get. I am sorry to say that it doesn’t work that way. Wait for that crazy buyer willing to pay $ 50,000 more that market value is a dream, I will not say miracles do not occur but I haven’t seen one of those yet.

Pricing is an art but not a DALI masterpiece.