Last week, I had an interesting, but sadly, ALL TOO COMMON occurrence take place.

An agent made an appointment with the local showing service company we use here, MAPASS on one of my listings..

So. a couple of days later, the agent calls me and tells me, almost breathlessly, "I'm gonna get an offer on your listing today!".. You'd think I haven't seen an offer in over a year with the "enthusiasm" she had.

True enough, I get the offer. 

Without a preapproval.

Come on, what the heck?  Like I'm gonna get my seller and recommend they sign that offer. Yeah. ooookay...

Let me ask, in this day and age, what listing agent wouls recommend an offer to their listing clients from a buyer who doesn't submit a written preapproval from a reliable and "known" lender or mortgage institution?

Better yet, what showing/buyer agent even goes around with buyers like that?

if you are a buyer agent, and you get an offer from an unqualified buyer, and suppose for a moment, you are dealing with "Igor Idiot' real estate LISTING agent, who gets his sellers to sign the offer, you have just done a terrible disservice to the buyer!

So you all go through the motions. The buyers plunk down a couple of hundred dollars on a home inspection on a house they will never buy. They lose money and time, YOU as a buyer agent lose money and time, in short, everyone does..

Some agent YOU are!

Yet, this sort of thing happens ALL the time, believe me. I can't believe I have to even ask for a preapproval when I get some of these offers.. 

Just unbelievable..

Are the agents nervous about asking for one? Do they figure they can get "practice"?  Practice in what? Burning gas? Wasting time?  Looking like a "Realtor(R)"? 

REALLY unbelievable...

So, the thought occurred to me, should I demand a preapproval letter or, for those "cash" buyers out there, proof of funds, FIRST, BEFORE THE SHOWING?

It may drive down showings. What I'm really worried about is, doing this may "offend" some buyers and their agents into NOT showing my listing.

But then on the other hand, it's okay to show my listing to totally unqualified buyers? 

Something has to give, wouldn't you say?

I'm here, and I ain't going no place... What do YOU think?

http://www.massrealestateguy.com/2009/11/can-i-do-this-demand-a-preapproval-letter-on-a-buyer-before-my-listing-gets-shown.html

Yet I recieved another "telemarketing call today, this one from a company that says it "works" with Google, their phone number was 503-207-4123...

I can always use other free services.. Why did this company call? When I requested to be removed from the list and NOT CALLED ANYMORE, he told me it may be a good idea to remove my phone number from Activerain..

With a wise ass "remark" like that, you can be rest assured they'll NEVER get my business...

I didn't sign up with Activerain to deal with this ... I can get my own "help" from Google, thank you....

Sounds like a tongue twister, doesn't it?

The title is one of those expressions I've heard for years that I never got the full impact of the statement until a certain event "slammed" the point right at me.

I "get it" now..

I referred a client I work with over to a mortgage lender that I previously never worked with.  Normally I don't do that and there has to be a very good reason for this.  I don't like my clients being "guinea pigs" for untested service, but in this case I had NO choice.  There was a bank owned property that my client wanted to make an offer on; one of the conditions of making an offer with this REO was that any prospective purchasers HAVE TO be pre approved by the bank that owns the property.  After jumping through a few hoops, I found a mortgage officer from this lender and set the thing up.

I should have known from the beginning.  I called the mortgage guy up on Thursday mid morning and Saturday afternoon rolls around and still no answer. I tried to find another mortgage officer from the same lender and found someone with an attitude problem (as far as I'm concerned) that she didn't want to waste her time on my client if he ONLY wanted to "use" her for a pre approval and then go somewhere else. "Lady, I can't guarantee I'll get up out of bed tomorrow and you want me to PROMISE my client will use you for the mortgage?"  It's not enough for me to provide a lead to someone untested; I now also have to GUARANTEE my leads!  Ah, if I could only live THAT "charmed" a life LOL..

Nope, I'll stick with the first guy, the one who doesn't return calls in a timely fashion. Finally I got ahold of him, some bull excuse about his cell phone not working. Get a Blackberry or IPhone, my friend.. LOL.. Anyways, I shrug it off and hope for the best.

From what I understand, my client rightfully starts verbalizing his frustration with this guy; how he never calls back and sometimes has to wait for days, at times OVER 3 days, for a callback.  I understand the business and I personally don't make it a habit to call my clients and customers with meaningless wasted breath, but if I am called, I CALL BACK. And I try to call within minutes if possible. The only times I can't call imediately are either if I am at a class where I am NOT ABLE OR ALLOWED to call, or if I am at an appointment.  Usually I am able to call back within two hours.  Rarely will I let a call go to the next day unless the circumstances demand it.  I also use text messaging and/or email, but the point is I DO GET BACK...

For me to deal with someone who doesn't operate like that puts me WAY OUT of my comfort zone.  I consciously avoid people like that.  I just can't handle it.  If I refer someone to a service provider, whether it be a mortgage lender, home inspector, even another agent for a buyer agent, I insist out of them the same level of follow up service I provide myself.

So, getting back to my story, the loans (two properties for this lender) roll along, and I suppose everything's going through, except for the fact the mortgage guy is eternally unreachable by email or phone. I personally am getting frustrated by having to deal with someone who seems to work on their beat, not mine. Meanwhile, my client, rightfully so, is "bitching" at me left and right.  He starts asking me for names of other mortgage lenders. I explain that may not be his best option but HE IS MY CLIENT AND I WORK FOR HIS BEST INTERESTS... One thing leads to another, to make a long story shorter, he dumps the first mortgage lender and changes lenders and mortgage officers.

The problem I think service providers have who are extremely competent but lack client service skills is they forget the ole' tagline, "People don't care how much you know until they know how much you care ..."

They forget people are people. Of course they want competent and knowledgeable people BUT if someone is truly THAT good they understand excellent client service is an integral part of the whole picture.  "Communication is the universal solvent:, said L. Ron Hubbard. He was right.  All someone needs sometimes is just an acknowledgment that they've been heard, that's all.  Of course, an extremist that wants a phone call 8 times a day for no reason other than just to get attention also needs help that a real estate agent nor a mortgage lender is able to professionally provide, but aside from the joking around, any REASONABLE inquiry and phone call should NEVER be ignored. That is akin, in my opinion, to being insulted. Ignorance of any nature can be constituted as an insult,   That's not the right thing to do.

Years ago, I made it an issue to return calls. None of this lame "I normally return calls at 11 am and 4:17 pm" crap that I sometimes hear. When I get a voice recording like that, I hang up and move on if I can help it.  I honestly don't know who came up with that idea and I know it's even being taught by a couple of real estate coaching companies and trainers, but I personally think it's insulting and demeaning. What if MY times are 10:18 am and 3:24 pm? What do we do now? Never communicate?

Please don't get me wrong. I have no problem with emails and text messaging, but I also have a Blackberry so I can get these communication forms when I'm away from my computer. This problem doesn't apply for just mortgage lenders, so I'm not "singling" them out. I can't understand the agent that I call two, three, or more times to make an appointment and they never call back. If I persist and finally succeed, they have that famous excuse; "I never got any of your 68 messages .. I guess something's wrong with my phone"...

Buddy, I'm going to let you in on a secret. You know why a lot of real estate agents lately have suffered in their earnings? It isn't the economy. It's because they never answer their phones!  Jeez!

My answer will probably be from now on, "No  ... I think something's wrong with YOU.. "  You may have "missed the boat"...

I might get hate email or comment posts for this ... That's okay... I need to get this off my chest...

I REALLY hesitated writing out THIS post, believe me, but this bothers me...

A couple of months ago, I had a phone call from an agent in another part of the country...

Through my blogging, he found me and contacted me concerning a referral he wanted to hand over to me ...

Which I deeply appreciated, don't get me wrong. I was curious as to why he singled me out. I was hoping it was due to my blogging, my qualifications on various important topics in real estate. Maybe he liked my online "personality"... who knows? 

Whatever it was, I was a little "curious"...

So, he called. Asked me the usual. How many years, my area of service. 

Then he asked me a bizarre, really bizarre question. I NEVER imagined THIS question could be construed as a "qualification"...

If this type of question was asked by a potential employer to a job interviewee, I can only imagine the civil right violations and the potential for lawsuits it may have opened up.

"Are you a Christian" real estate agent?  Because my friends, they asked me to find them a "Christian" real estate agent."

Like I said, I was absolutely floored ...

It took me a moment to regain my thoughts. The first thing I thought was  "I'm NOT dealing with THIS jerk."... "Who need this?"
 

He kept asking that same question, "Are you a Christian" real estate agent? over and over again. If anything, I felt he was (unintentionally) sort of "taunting" me ...

I was flabbergasted.  Stunned, was more like it.  I couldn't believe it.  I immediately mentally tried to answer to myself, "what does it matter?"

I mean, we do live in America, don't we?

Plainly speaking, I was insulted.  I didn't want to deal with this narrow minded jerk.

So, I quickly collected myself, and explained I just didn't feel comfortable answering his question. He gave me a long, "drawling" kind of laugh, like he verbally exposed the devil in a lie, and then I told him someone else would be calling him.

In other words, my marketing efforts and blogging made someone else a potential commission because I didn't like the position I was put in by this "Christian"...

A Christian, mind you, who acted very "Un-Christian like".

How Christian? Eh?

What irks me is the indirect discrimination the referring agent practiced. 

I just didn't like it.

Whether or not I'm a Christian has nothing to do with the issue, and I'm not looking to get anyone in trouble. I am looking to expose a very important, very frustrating, issue at hand. The issue of how religion can be used to practice prejudice in a "commission" only, independent contractor status type of hiring. 

LOL, what's even funnier is, up until now, I pretty much have tried to keep religion out of my real estate discussions. Didn't even think of it, to be honest. I mean, really, when you think of it, who cares?

But it's wrong. You know it's wrong. It can be construed as a violation of housing laws.  I want NO part of it, on any end. BUT IT'S WRONG..

I honestly don't even go there, in terms of religion, when dealing with the public. However, I worry about agents like the guy I am writing about, because if he did THAT to me, what did he do to others?

I never considered someone's religion to be of paramount importance when I went to a Doctor, hired or recommended an accountant, a lawyer, chiropractor, or auto mechanic. 

Christian Real Estate Websites have been under fire before for similar allegations, as I found out when I did a "Google" Search.
I guess my gripes were someone else's too, a while ago...

Which begs the question; would most of these "Christian" real estate agents work with non Christians in terms of helping them buy or sell property?

I think you know the answer to that ... and that's what I don't like, the "one sidedness"....

Let me turn the tables and ask, are they saying they are more honest than everyone else?

Does that make everyone who doesn't meet "their" standards liars? Unethical? 

What was that Jesus said? "Let he without sin cast the first stone"

Yeah, right ...

How dare they?

And that, my friend, is the honest "Truth"... no matter what my religion is ... or yours, for that matter....

Yup, sorry I lagged in writing posts, but I've been very busy lately, mainly with short sales. 

I think I'll try to at least type a couple of sentences every couple of days, instead of writing a major big post once every so often. Probably easier for everyone to read, too.

Based on activity, I can tell you, properties are "flying" off the shelves!  Some are being sold within the hour! 

It doesn't matter if it's a bank owned or a "human being" owned property. If it's competitively priced, it'll move!

If you prefer to think that's a property being "given away", you stick to your opinion, let me not try to change your mind. I frankly, am too busy.  

But I personally am seeing multiple offer situations, with bids over and sometimes even WAY OVER asking price.  It's a war out there! 

A client who lost out on a couple of multiple offer situations asked me; "I thought it was a buyer's market out there!" 

Yes, my friend, it is.  When you're looking at a property (3 family) that's on the market NOW for $100,000 and probably has offers over $110,000, that's still better than $300,000... what THAT property may have sold for in 2004.

Yup, it's a buyer's market, all right...

I heard rumors that seem to be coming true.  In terms of short sales and reo (bank owned) properties,, I hear that soon enough you will start seeing a reduction in the availability of reo bank owned real estate and a rise in "short sale" properties.  This makes sense, what with the government stepping in and trying to slow down the foreclosure rate.

It's great news BUT "things" need to happen... to make this process smoother.

Number 1, in terms of short sales on government loans, I heard that lenders will be REQUIRED to pay 6%.

Couldn't be happier with that. Any "Realtor" haters out there, go work twice as hard for half salary and THEN stop by and comment on THIS blog....

Number 2, Lenders will NOT be able to pick and choose their own choice of appraisers.  They will have to use an appraiser who will be in a rotating pool.

I can see why this is happening, to reduce lender fraud, and for that, I have NO problem with this. 

However, as a friend of mine, who was previously in the mortgage industry, pointed out to me, it also elevates the appraisers who DON'T know what they're doing or are horrible appraisers to a new level..

I've observed over the years that REPUTABLE lenders tend to pick REPUTABLE appraisers. Scumbags pick Scumbags. "Birds of a feather flock together..."

Well, we'll see how THAT turns out...

I looked all over for more training on short sales.  With the short sales I've done in the past year I can tell you, I've learned a couple of things;

1.  I will either handle the short sales myself or ask my clients to get legal help. As for loss mitigation companies, I couldn't see what extra advantage they bring to the table.  Lenders prefer to work with LICENSED Real Estate agents anyway, in my view.

2. Sometimes lenders pull tricks out of their hats in the last possible minute, like the case I had where they "all of the sudden", in the last day before the closing, wanted the seller to take a non secured loan for a lot of money (let's say for this discussion, $40,000), because when it came down to the nitty gritty they were going to make more by foreclosing the property due to the private mortgage insurance! What a cruel, cruel thing to do in the last minute.

3. I don't, repeat, DO NOT want to list bank owned properties. The amount of baby sitting these properties need is NOT my cup of tea... Helping people with the lender and having a property that's not potentially "stripped" is more to my liking. What attracts me to short sales the most is not that they are much much more difficult; what attracts me is the fact that a person who does a short sale may be in a position to buy again and start all over in around 2 years!  Having a foreclosure can be devastating....

I think it's about time short sales are standardized and possibly even regulated. Waiting 2 and more months for just an answer from some of these lenders is bad, bad for the buyer, bad for the seller, bad for the lender. Any ideas, anyone?

I've written enough now. Gotta go to an appointment. In the meantime, comment away!

This week, I left my Coldwell Banker office in Worcester to return to the Keller Williams office in Westborough, the first Keller Williams office in New England. The Keller Williams office I first joined back in 2004.

Coldwell Banker Worcester - Park Ave is a great office.  everyone in that office are all super and they are true professionals.  Having been both a Coldwell Banker and a Keller Williams agent, I wasn't intentionally comparing, but that's what happened.  I just had to go back to Keller Williams.

What it is for me is philosophy.  With Keller Williams, my business is mine, not the company's. 

I couldn't take the feeling of "corporate" anymore...

I was affiliated with Coldwell Banker from 1997 through 2004, and then I changed to Keller Williams.  I was with both the Westborough and Worcester office through 2006, changing back to Coldwell Banker in April 2006.  I suppose you may say I've "been around"...

Keller Williams is THE MOST AGENT CENTRIC COMPANY I've ever seen.  It's all about the agent, not the company.  The agent is the one communicating with the buyers and sellers. The agent is the one doing all the running around, the driving, the work.  The agent is the one taking care of the business.

The Keller Williams model understands that real estate is a local, people to people business. National ads don't matter to me. My clients are all local.  I do my best to service them, not my company.

Simply put, the Keller Williams model is the only one I've actually experienced that an agent can enter into can come closest to running their own business without actually opening their own business, and STILL have the support of a major real estate franchise behind them. I'm sure their are others; but none have impressed me the way Keller Williams has.

I can run my business MY way, without having a "corporate" shadow behind me.  That alone was a problem for me. There is a feeling of "togetherness" with Keller Williams I haven't seen elsewhere. It really is unique.  

I read a book, "Small is the New Big", by Seth Godin.  That book was a "revelation", and a "confirmation."

"Revelation" in the sense if it's "corporate", that doesn't necessarily mean it's right. "Revelation" in the sense that "corporate" at times may tend to think a little bit much too much of themselves.

The books are open at any Keller Williams office, The agents really do have a stake in the success of the company.  I couldn't grasp that concept at first. It was just a mind boggling concept that I couldn't get into and had to leave and come back to appreciate.  Knowing you are business partners with the agency you're affiliated with can have the potential to "bring:" you to a new level.  The agents actually have a say in the management, the everyday operations, and the general direction of the company.  Profit sharing may be available and although it shouldn't be depended on, it's a nice potential bonus.  When agents recruit agents, they do it from their heart.  When some agents take turns running training classes, they do it from their heart.  At least they're supposed to. At least I always did. 

Of course, "corporate" isn't normally keen on that...

I am an independent contractor.  I like to "feel" that way. "Corporate" and "Independent Contractor" seem like a contradiction to me.  They can't mix well, at least for me...

The support services from Keller Williams are the best I can find.  Every company has it's unique features.  So does Keller Willams.  The training," oh my God!"  At Keller Williams, there is SO much training available. On a daily basis.  Free.  Sure, you can also get advanced stuff like coaching and materials you may pay for, but believe me, most of it is free. In a market like this, training and support are necessities, not luxuries.  Repetition is the key to success in learning. That's Keller Williams' strongest asset.  The best way to learn and master a topic is by teaching it.  I used to love public speaking, and I REALLY missed it.  Nobody likes to be "muzzled" after a while.

How about the client's needs?  Well, if you know me personally, you know how fanatical I can be about that.

The internet is the portal to market homes today. With "KWLS", a listing is added in all the important websites; ie., Googlebase, Trulia, Zillow, etc...

I get an "instant notification" via email from any website anywhere, including my website and other websites via my smart phone. 

My own signs. All the calls go to me.

In March, Openhouse.com wil allow any agent or company to DIRECTLY input listings for open houses.  Right now, it can be done, through an "FTP".  The system will be infinitely easier in March. Don't let no Coldwell Banker or Realogy agent tell you OpenHouse.com is "exclusive", 'cause it isn't.  It costs the agents NOTHING. Zip, Nada. Not a flat penny...

The internet is the place everything's happening.

So, what else was "the frosting on the cake"?

I bought and read a book by the the CEO of Keller Williams, named "Shift: How Top Real Estate Agents Tackle Tough Times"...

I haven't read any other book or been able to even find another book that comes even close to what this book does.

This book helped me because as a real estate agent in tough times, I needed a guidebook on what to know.  For my clients, it explains to me and gives me the information I need to provide data to buyers and sellers about what they should know about today's market.  You have NO idea how I felt after reading this book. This book was 100% information. I met Gary Keller and Dave Jenks a couple of years ago and I can tell you, they both are two of the most "down to earth" guys out there; they seem to truly care about their agents  concerns and are only interested in helping everyone succeed. They left a lasting impression on THIS guy. 

What else can I say? I want my past clients to know that I'm always there for them; that I will never change improving or "tweaking" what I can, and through my return to Keller Williams I am looking forward to providing the very best I can of myself. A couple of past clients just contacted me with nothing but praise. Thank you.

Primarily, I am at the Westborough office because through Westborough, I can be accessible to my Metrowest clientele through Route 9 and 495. I can be accessible to my Millbury - Grafton clientele through Route 20.  I can go to Worcester through Route 9. Clinton through Route 135 to I-290 or "the back roads"... Hudson-Marlborough, and even Sterling - Lancaster are within driving distance.  Of course, Auburn and Oxford - Webster - Dudley, Leicester, and Spencer are accessible too.  The location is an added "plus"... 

The services both the Worcester & Westborough offices give to their agents are top notch; I spoke to both the Worcester and the Westborough office but for my needs, Westborough won out.   Both offices are great.  Both have "super" "Team Leaders" and I can say from experience Kathleen Goneau, the Team Leader (manager and trainer) at my office is UNBELIEVABLE!  I don't have the 5 plus hours of typing I need now to type how great she is!  Maybe another time...

I also want to express a profound "thank you" to Skip Tebo, the Operating Principal of the Worcester office, for his patience, time, and advice. To David Shortsleeve, my former manager at Coldwell Banker, for his understanding and well wishes. To Jennifer Juliano, the KW Westborough "Cheerleader", for putting up with my "craziness!", and of course, my buddy John Miller, fellow KW agent, for so much help, advice, laughther, and patience, this guy should be elevated to "real estate sainthood!"

Of course, I finally want to thank my sweet, darling, understanding, and extremely supportive wife, Kathy. Words fail me.

Can't forget my little scottish doggie, Tula!  The day doesn't end well if she doesn't greet me at the door, her tail wagging in anticipation and overwhelming joy!

So, here I am.  And here I go!

 

Seriously ...

For any buyer, savvy ones, first time buyers, "trade up" buyers (ESPECIALLY trade up buyers!) and "trade down" buyers, investors, etc, etc, etc, THIS IS A GREAT TIME TO BUY!

The interest rates alone at least warrant a good look at the market!

I suppose the bug concern with many buyers currently sitting on the fence is "how much lower will prices go?"

Have you been analyzing the prices?  Have you ACTUALLY been compiling data?  Or are you simply going by what's being said in the media?

No doubt about it, prices HAVE come down, but there is a point to which the downward trend begins slowing down, total stagnation occurs (a price "freeze", for lack of a better term, and then, as confidence starts coming back, the cycle reverses itself.

The process of reversing may be slow, at a medium pace, or fast and hard. No matter what, THAT's when you start kicking yourself in the butt and scream in despair, "I should've"...

I'm not making this up. I've seen people scream these three words right to my face!  Some even blamed me for not pushing them!

Pardon me for not being pushy!  Another stereotype squashed!. 

"I should've,"  That hurts. It's not as bad as "I couldn't", or "I wasn't able"  "I should've", means you didn't take that chance and now you regret it. 

Sure, it's risky, but then again, is it as risky as the stock market?  Gold? Other investments?  What if you simply need a place to live? Is it better to pay rent? Have you checked this out?  Could you in fact, be paying more in rent presently than a mortgage payment?  Do you think things won't turn around?  Ever?

In some areas, prices overall have remained stable and even appreciated, in spite of the "gloom and doom" you may be listening to in the news. 

If anyone wants an absorption rate study of a certain town as a way to judge the "health" of the market, I tell you what; I want to earn your trust.  Make an anonymous comment on this post and I will post the study for you and you can download it. Of course the absorption rate study will be "public"; anyone will be able to download it, but what do you care?  No one will know who you are.  If you'd rather be private all the way, then contact me here and I promise I will send you only the absorption rates by email and that's it! 

I have a client who, through BuyWorcesterNow, was able to get 4.5% interest and he is buying a great property at a great price. Will YOU be able to likewise? I don't know.  But It's worth a shot, I would say. 

And I haven't even begun going through the tax advantages and the tax credit available. 

Fear can be a great friend, or a bad enemy. Just ask THIS guy...

Last night, I received a very polite email from a reader in the Western part of the state.  I replied back and am reprinted an updated version of my letter here on this blog,  The question is a very basic one;

"I am thinking of selling, I want to sell on my own,  do you have any advice???"

Y'know, I didn't want to respond with a "canned" reply, so I took my time and "slept" on it.  Around 7 am this morning, I replied. Following is my response with some slight changes and additions.

Thanks for your email. I would've responded last night but snow shoveling got to me.  Anyways, let me tackle your question now...

I am going to ask you a couple of questions and I'm only asking so I can isolate your situation for the best answer. #1, why are you selling? and #2, why are you thinking of selling on your own?

Let me give you a couple of answers that may apply and you can email me back if you'd like.  If you NEED to sell, absolutely, must sell, etc, etc, etc, then get yourself a top quality agent. Look at the whole thing this way;  I could fix my car! Since I have NO knowledge on auto repair since any automobiles made after the mid 80's, then it would take me forever. I'd probably waste a lot of money on parts and tools and STILL never get it fixed; then on top of all that money I'm never going to spend, I'll wind up towing the car to a mechanic and pay him, in addition to fixing what was originally wrong with the car, PLUS also fix my additional screw ups and mishandled repairs.

"Most of the FSBO's (for sale by owners) I see pretty much are in this type of boat."

 

Most of the FSBO's (for sale by owners) I see pretty much are in this type of boat.  It's bad enough the present market conditions make it tough for regular real estate agents to sell their listings; and you want to attempt selling your home in this market environment? The odds are not stacked in your favor. 

Most FSBO's I've been tracking (yes, I do track the "fsbos" in my area) all follow a sad and familiar pattern.  I want to scream,  "Please!!! Please don't do this!  So many others have failed before you!!! Perhaps that's what I'm probably doing with this post.

In some cases, the homeowner has consulted with an agent or agents.  They decide NOT to list with anyone, 'cause they want some monetary figure that no agent can get them. I mean, let's talk the truth here. The 2 biggest reasons sellers think they should try selling on their own is either because they think they won't be able to pay an agency and/or they think it's easier than it seems.  without meaning to potentially insult anyone, I'm sure you've heard the expression concerning defendants in a court house setting that "only a fool represents themselves"... With all due respect I submit to you that the same could be said for a lot of "FSBO's".

Honest and ethical agents tell the truth and do not list "liar" listings, with prices that will never sell.  They walk away if they can't get the property properly priced. In this market (any market, really), you may be giving out "signals" to the buying pool that you're NOT really serious about selling when you are asking an unrealistic amount. It's almost like you're saying; "Go away, until I get serious or until you find a more realistic, sensible buy."  All you are doing by overpricing your property is helping to justify your competition's market position. The ones that are in the same price range with you offer more bang for the buck; the ones you should be competing with are getting looked at. That's WHY a lot of overpriced homes don't even get showings. You or your agent could advertise that sucker on the Tonight Show with Jay Leno; no one will buy it.

The 4 "P"'s of marketing, for the real estate world...

A proper price is only ONE of the 4 p's of marketing; the others are promotion, product, and place. You can also throw in planning as a 5th p.  Let's look at price first.  Without a correct price, everything else collapses.  It will be impossible to promote a product, (your property), and expect to be taken seriously when the asking price is too high. As for  promotion, well, promotion is NOT advertising; it's PART of it...Promotion to me simply means getting the word out.  RUN AWAY from an agent that promises you tons of newspaper advertising!  Why would I or anyone waste our resources in a dying medium?  The serious buyers are all doing internet searches so they won't leave one stone unturned!  That means if you're not in the MLSPIN - Realtor.com search engine, you may as well pretty much forget about it.  An overpriced listing accomplishes NOTHING. And finally, place. Place is where the potential buyers are going to find your product. Place is the real estate agency the product is being handled by.  If your product is not handled correctly, well, that's why you see homes sometimes jumping 2, 3 or even 4 or more comapnies before they finally sell. Sometimes it may have sold for more money if it was handled correctly the first time, like anything else out there. 

If you attempt to sell it on your own, buyers may tend to try to deduct from your proceeds the very same commission you are trying to save. You have to ask yourself, "do I want to spend the commission and have a professional do this for me, with potentially much much less liability involved, or do I want to eventually see the buyer save that money, while I wind up doing all the work and walk on potentially dangerous soil?  So now you may be thinking; "I'll list it with one of those 'put it in MLS yourself' agencies'. 

What sort of a buyer would not want all the services of an agent? 

Is it an investor? A "looky loo?" or an unqualified buyer that has been told by 14 mortgage companies and 17 agents that they are NOT qualified to buy a house!  They decide to look and ONLY look for fsbos since you don't know their situation and you're probably as desperate as they are; after all, why would you be going fsbo?

Maybe they can even convince you to do a "rent to own" deal, eh?

"Most serious buyers I've worked with DO NOT WANT to see or meet the sellers."

Most serious buyers I've worked with DO NOT WANT to see or meet the sellers. The whole thought of this is nerve jarring to them. They don't care about you; the house is a commodity with a little emotion spread on it.  I've actually had buyers instruct me NOT to have the sellers in the house. When the occasional seller "slipped" by, they'd roll their eyes and give me THAT look....

Think that if you're there you can do better than an agent?  I once saw a buyer at a home inspection purposely disparage and demean both the house they were thinking of buying AND THE SELLER, probably because the seller was an elderly lady who was "afraid" of leaving her home. On almost every issue the home inspector brought up, the buyers kept turning and asking the elderly lady, in a borderline sarcastic way "You, you're going to fix that for us too, aren't you?"   Feeling sorry for my client (and doing my duty as a seller's agent in protecting her best interests), I INSISTED the lady and I leave the inspection and go have ice cream (even though I'm lactose intolerant LOL).  Two hours later, the inspection was over, the house was fine, and the buyer conveniently "forgot" all the "issues" they were bringing up to the seller before we left. 

If you're a real estate agent, and today there are many homes to pick from, HOW EXCITED WOULD YOU BE if you placed on deposit a home for your buyer client with someone that probably doesn't really know what they're doing? How much higher would you say there is a chance for liability, even with lawyers involved?  I think some, or most real estate agents get scared of FSBO's NOT because of the work they have to do but because of the potential nightmare they may be facing.  And again, buyers may see you as a "discount"
house and act accordingly.

I can't tell you how many times I've seen the following scenario repeated over and over...

1.  FSBO runs ad in paper and possibly something on the internet. Maybe it's a webpage they do themselves. 

2. 2- 3 weeks go by and they start doing open houses. The majority of respondents are real estate agents.

3.  They start offering the buying side of the commission to buyers agents, not having someone represent their side. (They are their own negotiators)
 
4.  They pay money to "list" their home, complete with a cheap looking sign that looks like a nightmare from Home Shopping Club"..

5.  Nothing happens. Then they may just give up and try the same steps again later on or.. if they REALLY DO NEED TO SELL...

6. Urgency sets in. They finally "break" and list with an agent. The sad thing is if they listed earlier, they may have gotten more. How much more? Well, with the declining market spread over the course of a couple of months, I saw a FSBO lose what I think in my opinion was around $20,000 or even more. Yup.. That much.

"If I have any advice, at least I'd say just price it right and don't spend more than $200 in advertising."

 

If I have any advice, at least I'd say just price it right and don't spend more than $200 in advertising. The commission you pay isn't just for advertising; it's a professional fee for expert services, NEGOTIATION, and advice. Doctors, Attorneys, etc, all collect professional fees.  If you can't sell it for a realistic price, don't waste your time. The buyer you seek isn't going to come down from the sky to save you.  Even if they did, the banks are sooo conservative today they'd knock the sale out with their appraisal.  Yes, you will find real estate agents that will take your property and put it on the market, and pile up on the market time and do mind numbing open house after open house after open house, but that because they are what a friend and client of mine calls "people pleasing" brokers, who have a hard time saying no and try to make you happy; only problem is, their failure is their unintentional deception and your misery.  This is where you have to interview agents and pick the best qualified. The best qualified is NOT necessarily the highest bidder for your listing.

If you owe more than you can sell for, and are having problems, I can try to help you with both either with a loan modification or a short sale.  You could try to do your own loan modification by checking out hopenow.com.  You don't want to waste week after week after week; those folks are flooded with work now.  Or you could call me and I could take an application over the phone. I submit it to ShortSalesexpress.com and they will tell you if they can do anything for you in terms of lowering your interest rate, your payments, or even in some cases your loan balance.  If you agree and they do this they will charge you. I can tell you it aint cheap but it may be worth it in the long run and it's probably cheaper than refinancing.  I am admittedly not a big fan of loan modification because in a lot of cases it merely delays the problem, and doesn't solve the problem.  Am I telling you to do this? No, I am telling you you may want to try it yourself with hopenow for free.

With a short sale, the bank agrees to release you from the obligation of the loan while they collect less than the loan amount rather than go through foreclosure.  You won't own the house anymore and have to move out, but worst things will happen in a foreclosure. Your credit may not be as adversely affected but this is a case by case assessment.  I would say however that anything is better than a foreclosure.  You may even be able to turn around after a year or so and buy another house, but again, a credit advisor-mortgage officer would be the one to consult.  

Through this blog I hope to provide enough information to help out. If you need to, please do not hesitate to call or email me directly.