John's Blog

Do We Make A Mistake When We Refer to the Agent Representing the Seller as the Listing Agent?

John Cleek, Ph.D. (Crown Realty) — Wed, 02 Jul 2008 08:30:56 -0500

I don't think it is a purely academic question to ask whether "listing agent" or "listing broker" is the best way to refer to the agent representing the Seller. The clear implication is that the primary task of this agent is to "list the seller's property on MLS." Sure that is an important reason why sellers come to us -- they want us to list their property for sale by other agents in the network. But the agent representing the seller cannot earn their commission simply by listing the property for sale.

A recent blog posted by Bryant Tutas Broker/REALTOR(R),Tutas Towne Realty, Inc, Poinciana, FL made some very important points regarding the role of the agent representing the seller. My first reaction to his blog was the way he uses the term "marketing". He wrote, "In this day, of disintermediation and transparency, I truly believe that it is the intangibles that will make or break us. There is no doubt that Sellers can find everything they need, to sell their property on their own, online. Heck, they can even get their property placed in the MLS for just a few hundred bucks. And the reality is MOST properties, by far, sell through the MLS. I think the figure is about 85%." Okay so far, but then he says, "They do not need me to "market" their property and that's a fact."

My problem is that this is not what marketing means to me. Marketing is not the listing of property on the Internet -- at best, that is a part of selling, not marketing. Marketing is the total process involving the "product, price, placement, and promotion." It involves doing whatever it takes to help our clients sell their property at the highest price, in the shortest possible time, with the least amount of inconvenience and stress on their part.

Broker/Realtor® Tutas pushed my hot button again when he continued, "So why pay me x% to market their property? They shouldn't. If all they needed me for was marketing their property then I agree completely they are wasting their money. Hire a marketing company like "For Sale by Owner" and have at it." No, no, no! Companies like "For Sale by Owner" are not "marketing companies." They are companies that sell services to homeowners that assist them in attempting to do their own marketing. There is a world of difference between companies that do this and professional realtors® who engage in the total marketing function on behalf of their clients.

But before I had time to react further I read on, and realized that my differences with Tutas were more a matter of semantics than substance. I totally agreed with him when he said that if the owner wants to handle their own marketing they should …

Be prepared to pay them [companies that offer "For Sale by Owner" tools] upfront.
Be prepared to arrive at your own pricing.
Be prepared to arrange all of you own showings.
Be prepared to screen potential Buyers.
Be prepared to negotiate your own deal.
Be prepared to complete all contracts and disclosures required by law.
Be prepared to deal with inspection issues.
Be prepared to deal with unscrupulous REALTORS®, lenders and Buyers.
Be prepared to deal with your own emotional issues with no one to turn to for advice and comfort.
Be prepared to dispute a bad appraisal.
Be prepared to find another Buyer when yours decides to walk at the last minute because you lost your temper with them over a $100 washing machine.

Yes, yes, yes! That's what I'm talking about. Marketing is to total process involving pricing to market; making sure the property is market ready; preparing a special website to promote the product (the property) effectively; making sure that agents who may represent buyers who are looking for properties like this one know it is on the market; negotiating a contract that is a good deal for both parties; following the transaction to closing making sure that a good deal doesn't go south before closing; etc., etc., etc.

Although Tutas and I may continue to differ over semantics, we have no disagreement when it comes to substance. As the listing agent/marketing agent it is my responsibility to provide total marketing service to my clients. If I do this well, you won't hear them asking, "How do you justify your commission?" Instead, they will lavish praise to the point of embarrassment sometimes because of the way you have helped them accomplish their goals. And they will do this even when their property sells the first weekend it is listed!

Serving Our Clients -- The Role of a True Professional

John Cleek, Ph.D. (Crown Realty) — Tue, 18 Sep 2007 17:12:37 -0500

While none of us are in the real estate business as a public service, if we are the professionals we should be our goal will always be to put our clients interests first.

In today's housing market a lot of clients are confused, frightened, threatened, and in real trouble. They got into trouble with a lot of help from realtors who helped them buy houses they shouldn't have bought with money they shouldn't have borrowed and now they need our help in finding a way out of the mess they are in.

Yes, there is plenty of blame to go around, but the issue today is not so much "Who screwed up?" but "What went wrong?"

The numbers of troubled loans still in the pipeline is staggering. We can wring our hands and proclaim, "Ain't it awful," but there are thousands of homeowners who need more than a sympathetic listener. They need proactive realtors who help them understand that the time to deal with a problem is before it becomes so overwhelming that there are no reasonable solutions.

These homeowners facing foreclosure and the loss of their home within the next six to 12 months need to know that we may be able to help them before they lose their home. Each of us should educate ourselves on the process of "loss mitigation" and make ourselves available. Not only is it something we should do as professionals; it is something we can do which will benefit us at the same time it is benefiting others.

Perception is Reality!!

John Cleek, Ph.D. (Crown Realty) — Sun, 02 Sep 2007 10:01:14 -0500

In real estate as in other areas of our social interaction, there is little likelihood that any two observers will draw identical conclusions from the same set of "facts". Sometimes it is selective memory, wishful thinking, divergent backgrounds, etc.

But the issue is not why two people draw divergent conclusions from the same set of "facts". The issue I want to highlight is that regardless of the "facts" involved, the perception of an individual is the only reality that matters.

If we apply this to the current real estate meltdown facing some regions of the country, it is clear that although the use and abuse of sub-prime loans has varied widely from region to region, the barrage of national headlines regarding foreclosure rates, housing prices, etc. has impacted Realtors, lenders, home buyers and sellers in all regions.

Whether or not a real crisis exists in a given local area, if the buyers and sellers [ibelieve there is a crisis, their buying habits will be impacted. In other words, their perceptioin shapes their reality -- and then creates a new reality for everyone around.

What do you think?

The Name of the Game is SERVICE TO CUSTOMERS

John Cleek, Ph.D. (Crown Realty) — Tue, 07 Aug 2007 07:28:56 -0500

Recently I got out of my car to greet a client and assist them in evaluating a property they were considering. Almost the first thing the client said as he took my hand was, "Over the past month we have called at least a half dozen agents inquiring about property, but YOU ARE THE ONLY ONE WHO RETURNED OUR CALLS!

His question was very direct, "Why don't agents return calls?" I had no explanation to give. I simply don't understand why anyone would offer their service to the public as a realtor® and then fail to return prospect calls. Are some of them a waste of time? Perhaps. But the only way to find the ones that are going to produce a sale is to RETURN ALL CALLS!

I have a longstanding policy, one that I followed when I owned and operated an international trading company 25 years ago and have never wavered in my commitment to it. Every call will be returned the same day it is received! Even if the only response I can provide is, "Thank you for your call, I will gather information and get back to you tomorrow (or another date certain). I follow this policy whether the inquiry is received via voice mail, text message, email, or snail mail.

For me, the name of the game is SERVICE TO CUSTOMERS and I want to be known to my customers as being responsive to their needs. This policy defines who I am and what I believe about business. I want my clients to tell all of their friends, Call John Cleek, he will answer your call!

The Difference Between Winners and Losers

John Cleek, Ph.D. (Crown Realty) — Sun, 22 Jul 2007 19:47:38 -0500

I have only been working in real estate on a ful-time basis for a little less than a year. However I have more than four decades of experience working in the public and private sectors, managing large and small organizations, and the similarities are striking.

No one questions that today's real estate market is one of the more challenging and difficult of any that have been experienced in recent memory. However since the external circumstances we face are shared by all, there is little point in blaming the environment for our failures to achieve the level of success we would like. Since all of our competitors, those who continue to produce at a high level as well as those whose production has declined sharply, are facing the same economic conditions, the same political environment, and the same intangibles, the difference between winners and losers, cannot be accounted for by the external environment.

The difference between winning and losing in this business; the difference between mediocrity and stardom, lies not in the external environment but in the way we plan for and address the external opportunities and threats in creating ways. Each of us brings certain strengths and weaknesses to the table. If we are wise we lead from strength and work to minimize our vulnerability in our areas of weakness.

What's our experience?

John E Cleek, Realtor
The CrownPlatinum Team
Crown Realty
Miami County - Linn County - Johnson County
johncleek@crownplatinum.com
www.crownplatinum.com
913-709-4423

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