We read about Great leaders who have overcome tremendous obstacles to achieve... well... Great things. We hear stories of tippy-top producers who found themselves at some point living in their cars... but today make gazillions of dollars. Closer to (my) home, there are stories like Jack Canfield's where he had to peddle his idea for the Chicken Soup for the Soul book to dozens of publishers before one bit... and it became one of the best-selling books of all time.
Stories like these are supposed to be inspiring. But can I be brutally honest for a moment? I find them more intimidating than inspiring. Call me humble (ha!), but I'm just not sure I have what it takes to reach such Greatness and prosperity. Besides that, I've never lived in my car, which seems to be a pre-requisite for Greatness, although I have run out of gas a few times. Does that count?
I find far more inspiration in mediocrity. When I need to rev myself up to work on a chapter in my next book or prepare for an upcoming speaking gig, I seem to magically stumble upon someone in my industry who does their craft poorly, or at least, without Greatness. Many of whom are quite successful, I might add! Just the other day I was reading a fairly popular book about entrepreneurship (which is the topic of my next book) and was stunned at how superficial and obvious, not to mention poorly edited the material was. I mean, DUH. This stuff comes straight from Old School Self-Promotion 101 -- and the book was touted as revolutionary!
Anyway, after reading about half the book, I couldn't wait to get back to working on mine which I'd backburnered earlier this year. Heck, if this guy's stuff can be considered "revolutionary," to what heights might MY stuff climb?!
This approach could easily apply in a real estate career. Sure, there are a handful of real estate practitioners who are Great but the vast majority is, by definition, average. Many, of course, are less-than-average, but darnit, if they don't do okay!? Frustrating, isn't it?
Well, take that frustration and be inspired by it. Visit open houses on Sundays and observe how poorly many agents handle them - their signage, their (lack of) knowledge of the home and neighborhood, and their often-uncomfortable rapport-building skills. Eavesdrop on the other agents in your office and hear how unprofessional some of them sound while talking to prospects and clients. Preview listings in your area and notice how poorly they are priced and marketed. Read through several MLS listings and see how many fields are incomplete and the descriptions dull. As you work your own deals, note how long it takes for other agents to return your calls, and how unfriendly or unprofessional their outgoing voicemail messages are.
I could go on and on, but I think you get the point.
If you, like me, are intimidated by the Great, look to the mediocre for inspiration. You can do better, significantly so, and in today's world of increasing mediocrity, you might find yourself among the Great!
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Been watching a conversation elsewhere on the web about whether or not to put buyers in your car... as opposed to driving separately. While some of the comments are ridiculously snotty ("They can drive themselves!" or "Let THEM use their own gas!"), the most sincere objection seems to be that putting another warm body in your car creates liability for you.
We hear similar objections all the time to doing things that serve our clients. DON'T attend inspections! DON'T recommend mortgage brokers! Don't give any advice that might be construed as legal! Don't put buyers in your car! Blah blah blah.
Basically, in order to CYA to the best of your ability, you should, as one instructor put it - "stand outside and smoke" during most phases of a real estate transaction. To avoid liability, y'know.
Well, shoot, I don't buy it. My buyers and sellers pay me darn good money to be intimately involved with every facet of their real estate transaction. And I show up. Yes, to inspections. I get on the roof and join the party in the crawlspace. If I don't know three good inspectors, I recommend only the one or two I like. I write my own addendums that probably border on practicing law. And yes, I put buyers in my car.*
It's my job. And in my 13 years of doing my job, I can honestly say I've been richly rewarded for doing my job and only threatened legally once. By doing my job, I serve my clients, which not only leads to happy clients, but more paychecks for ME ‘cause my deals close!
I know what I'm doing. And I shall do it. Even if I risk being sued. This is a liability-ridden business. If you cain't take that heat... go find another kitchen to play in.
*Here's my opinion on putting buyers in my car: In 13 years, I can count on one hand (okay, maybe two) the number of times I've ridden separately from my buyers. I usually drive, but if my buyer has a car-seat issue, I'll ride with them. The only times I've had a buyer follow me is if we're meeting at the house and only looking at a few others - then it just seems to make sense.
The time spent driving between houses is great bonding, rapport-building and information-gathering time. I can't imagine not having that time with my buyers as we're getting to know each other and figuring out what they want in a house. It also gives me the opportunity to demonstrate my expertise in the area and for them to ask questions which, assuming I can answer (!), builds my credibility.
I've shopped for houses in other markets and the agents always drove. I'm trying to imagine them leaving me in my rental car to follow them in an unfamiliar town... and I'm pretty sure I would think they were rude, antisocial, lazy or ashamed of their car. I certainly wouldn't think MORE of them if they made me drive myself.
That said, if I didn't feel safe with someone, I probably wouldn't want them in my car, but neither would I be working with them.
** Nothing written here should be construed as legal advice <grin>
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Thanks to those who are sticking thru this series with me! While I think that the process of properly pricing homes is fascinating stuff, I know it's not nearly as sexy as other topics! (Although SELLING your properly priced listing is very sexy, indeed.)
...we talked about how to effectively preview the competition to figure out where your potential listing falls into the scheme of things. So, what about the SOLDs?
The problem with using SOLDs in your market analysis is, unless you've been a previewing mad(wo)man over the last eight months, you probably haven't seen the inside of the properties, and now it's too late. So you have to go off the MLS description - a very risky proposition!
But we'll do our best.
Print off all the SOLDs that seem to be comparable, even if they're much higher or lower than your assumption of the market value of "your" listing. Drive by all of them! Pay special attention to the outliers - the ones that seem to have sold way out of whack to the rest of the market, or whose Days on Market statistic is unusually low or high.
There's a good chance your drive-by will reveal the reason for the out-of-line price or DOM. Perhaps there's a commercial building next door, behind or across the street. Or, common in Denver, a corner lot that doesn't have a private back yard, or any back yard at all. Maybe it's a pop-top done wrong and doesn't fit in with the neighborhood. Busy street with a bus stop in the front yard?
Or conversely, you might see that it has a stellar location with an extra-large lot, a mountain view, or around the corner (at a suitable distance) from a popular coffee shop.
If the reason for the outlying price and/or DOM isn't obvious from your drive-by, go line-by line through the MLS listing. Is it missing a garage in a market that expects garages? No basement? One bathroom? Obviously, if the interior photos show that it needs work, that's relevant. Check the showing instructions to see if there are any obvious limitations on access.
If all else fails, and you really feel a particular house is a good comparable, call the listing agent. Hopefully they'll be helpful in helping you understand why the house sold at the price it did. Or, maybe not. But give it a try.
It really is the outliers that give you the most grief when looking at the SOLDs. There probably are some sold listings that fall right in line with what you're thinking the price of your listing ought to be, but the ones that don't give you fits. The more research you do on these outliers will not only make your CMA stronger, but will give you an air of confidence when going through your CMA with a seller.
Next Time - Putting it All Together
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I live out in the country and the only high speed internet I can get is through a broadband card (well, I could have satellite, but satellite sucks). For $60/month, Verizon gives me 5GB of bandwidth to use to my heart's content. They SWEAR that's more than a normal human being could ever possibly use.
Uh, not quite. My first month I blew through 24GB of bandwidth, which I later discovered was due to my Carbonite back-ups always running. Y'know how much going almost 20k over your bandwidth allowance will cost you? $900. But since I'm such a good customer, Verizon graciously reduced that to $190. Still... ouch.
So, now, I'm, shall we say, a little more cautious with my precious bandwidth. Not only do I disable my Carbonite until I'm somewhere I can connect wirelessly, but I never, ever, ever play videos. Truth be told, I wasn't a big fan of videos before, but now that I might be financially punished for watching them, I don't even consider it. If a video comes in an email... I delete it. In a blog? NEXT.
Am I the only person on the planet who depends on a broadband card for internet service? Or, as more and more computers come with broadband cards installed, will this be more of an issue for video-blogging which has been touted as the next great thing?
Here's the third, well, kinda the fourth (if you count the introductory teaser) installment in my series "Pricing Historic Homes in Urban Neighborhoods." You can read the rest of the series here:
I've had a few comments come in to the tune of "Wow - that's a lot of work - is it really necessary to spend so much time pricing a home?" Well, I say - YES! It is necessary! After all, our product is property, and our sellers pay us darn good money to know our product and move THEIR product off the shelf... so I believe with all my heart that we owe it to our future adoring fans to do our homework and make the most knowledgeable recommendations we're capable of.
Although... we'll never be perfect. Sigh.
Back to Pricing.
In the last installment, I talked about how important it is to preview preview preview. The more competing listings you preview, the better sense you'll have of where your listing falls into the mix.
Remember, the houses you're previewing are 1) the competition for your listing and 2) houses that haven't sold.
Why is it important to check out the active listings? Some agents don't preview because they don't think the active listings are relevant. "All that matters is SOLD." Eh, I disagree. First, what's SOLD is not competing with your upcoming listing, and when you're dealing with older homes, buyers don't always have a lot of options that meet their criteria. In many cases, the buyer will only find one or two homes that even come close, so knowing what they're comparing your listing to is critical.
Second, it's important to know WHY that active competition hasn't sold. Especially if it appears to be "priced well." You'll never know for sure why a house hasn't sold by looking at the MLS, although you may have your suspicions. It's not as if the listing agent is going to tell you that the house reeks of cat urine or point out that there's no bathroom on the main floor.
So, when you're previewing, ask yourself...
WHY hasn't this house sold?
WHAT makes it superior (or inferior) to "my" listing?
HOW could the listing agent do a better job marketing this home?
WHO is the ideal buyer for this property and is it the same ideal buyer as "mine" will attract? (I can't think of a "when" or a "where," so I'll move on).
Training yourself to ask these questions at every house you preview makes you a better previewer, and therefore, a better pricer. It also helps you to remember each house so you can speak intelligently about the competition with your seller when discussing pricing, as well as down the road when that homes' status changes (sells, withdraws or reduces the price), you'll be able to nod and say to yourself, "Hmmmm, I thought so!"
Speaking of down the road... this is another important reason to preview. When or if the competition sells, you'll be familiar with it in case appraisal problems come up on YOUR property and the appraiser wants to use comparables that aren't appropriate. If you've been IN all the comparables, it's much easier to make a compelling case!
In my continuing effort to better understand the professional value of a presence on Facebook, I am now going to ask for help on the concept of the Facebook Fan Page.
Let me disclose upfront that I have Fan Page and I am grateful for every one of the 305310 313 fans who have, well, become fans. I even post there most days, and get a huge kick when someone comments on my postings.
But I must admit, I really don't see the point. As far as I can tell, conversations generated on Fan Pages tend to die out pretty quickly since the conversationalists aren't notified that someone has replied to a comment. Outta sight, outta mind.
And, well, this next bit is a little touchy.
I get invited to become a fan to at least a dozen fan pages a day. Mostly from real estate agents who are Facebook Friends on my personal page. That's totally cool.
But again, what's the point of becoming a fan of a real estate agent in another market except just to be polite? I can't say I'm much interested in the comings and goings of their local market, or of their listings or open houses. No offense, but well, I'm just not. Now, if the point of becoming a fan IS to do so out of politeness, that's fine, I'll do it. I want to have good manners, to be sure. If I never visit the Fan Page, I guess no one will know, so what harm does it do?
Am I missing something? Is there something really cool about these Facebook Fan Pages that has escaped my notice (MINE INCLUDED)? I'm serious - it may very well be the case because I'm still utterly perplexed by why anyone would want to Twitter. Although, I do have a Twitter account, too...
So... if YOU have joined a Fan Page (mine or anyone else's), why did you do it? Because you care about what that person or company is up to? Or just to be polite?
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In the last installment, I recommended that you always, always, always drive by your subject property before doing anything else. If you can get inside, so much the better...
So after you have a good visual of your subject property, it's time to go check out the competition - otherwise known as "previewing." (If your market frowns on previewing, and many do, please share with the audience how on earth you properly price homes!).
When I interview to list a property, I often find myself bonding with the home, to the point where it's almost as hard for me to be objective about it as it is for the sellers. I really have to fight the temptation to be overly critical of "my" listing's competition, while excusing "my" listing's challenges and flaws. Sometimes I'll take another agent with me on my previewing tour to help keep me objective.
SELECTING THE HOMES TO PREVIEW Which homes should you preview? In a word (okay, a phrase) - as many as you can. Even if they aren't exactly comparable. With every house you tour, you gain a little better grasp on the up-to-the-minute marketplace, which makes it much easier to pinpoint the proper price range to recommend. It just happens naturally. As you look at the competition, you'll start to get a feeling for where your listing falls in the scheme of things, and the more you look at, the more confident you'll be in that feeling.
I try to preview at least 10 houses when I'm pricing a home. Sometimes I'll get lazy and only hit five - and I always regret it. It seems that it's right around the sixth or seventh house that I start to trust my gut about pricing. And that gut feeling is further confirmed on the eighth, ninth and tenth.
Depending on my price range, I'll preview all comparable houses within $50,000 (on each side) of where I think my listing will fall. By "comparable," I mean homes that offer similar square footage for the money. I probably won't preview a 1,000 sqft Bungalow if I'm listing a 2,000 sqft Victorian; they just won't attract the same buyer, even though they may very well be priced similarly. I always preview any homes within one block of my seller's property, even if they aren't comparable at all. It's just good practice in case the seller asks you about it.
Always preview the low outliers. A "low outlier" is a house that looks good on paper, but seems to be a screaming deal. You need to know why it's priced so well... but hasn't sold. There probably is a good reason. If there isn't, then this is the listing to beat. But we'll talk about that later.
How about the high outliers? The houses that are priced way above the rest, which are probably getting your seller all excited? Look at those, too. Chances are that they're just grossly overpriced (and the more houses you look at, the more sure you'll be of this). If they aren't overpriced, there's something really fabulous about them, and you need to know what it is.
As you're setting your previews, note if any homes are difficult to show. That will definitely affect market value. And frankly, if they are, I'll skip them. Lazy? Maybe, but on the other hand, a difficult-to-show home is not going to be comparable to MY listing because I don't take difficult-to-show listings!
Effective previewing in an urban market entails a lot more than just looking at a bunch of homes. Sure, that's what you're going to do (look at a bunch of homes), but in order to really evaluate the information you're gathering, you need to go in with the heart & mind of a detective.
We'll talk about that next time.
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Ahhhhhhh... flickering jack-o-lanterns... the changing o'the leaves... the first snowfall... chestnuts roasting on an open fire... and time to order your end-of-year Doo-Dads!
Every year 'round this time, real estate agents open their checkbooks (or, better said, key in their credit card numbers) and spend millions of dollars on calendars and other Doo-Dads designed to be distributed to anyone and everyone who crosses their paths. The goal? Why, to ensure that every human being on the planet knows who they are, what they do and how to reach them, of course!
A worthy goal, indeed.
Even I, staunch opponent of the typical Doo-Dad, am sorely tempted this time of year to spend my few remaining marketing dollars on something of value to throw at my sphere of influence in hopes of drumming up some last minute fourth-quarter business or filling up my pipeline for the spring season.
But sheesh, most Doo-Dads are really silly. C'mon - personalized fly-swatters? Ice-scrapers? Lip balm? Oh, I'm not sayin' that I won't use a free fly-swatter, ice-scraper or lip balm, but I can pretty much promise you that such Doo-Dads are NOT going to make me feel obligated to use the person or company whose name graces said Doo-Dad!
That said... I like magnets. Always have. Not just any old magnet, mind you; it has to be cool if it's gonna go on my fridge. Even more important, it has to be cool if it's gonna get sent out to my precious sphere of influence.
What do I mean by "cool?" Glad you asked.
A "cool" magnet is one that is 1) extremely clever or attractive, and/or 2) contains truly useful information that the recipient will appreciate and 3) reflects my personality or interests.
What are some examples of UNcool magnets? Oh, how about a plain-jane, vanilla business card magnet? Or a list of kitchen measurements? Or, from someone like me, the sports schedule of the local hockey team? (But if you LOOOOOOOVE hockey, this would be totally cool for you).
If you're going to spend your hard-earned dollars on Doo-Dads, put your money where your heart is. If something seems a bit silly to you, it probably is. As with every other prospecting method you evaluate, be willing to listen to what your gut has to say on the matter. If your gut seems to be saying "Eh... we can do better," trust me, you can.
Here's a link to what I consider to be the ULTIMATE in Doo-Dad-Coolness. Yeah, I had a hand in creating it, so of course I think it's cool, but I'd love your thoughts as well. And please share your own experiences with Doo-Dads - d'good, d'bad and d'ugly!
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I've been re-blogged a lot lately. Well, maybe not a LOT, but some. And in the past, it never occurred to me to check out the re-blogs - I just saw that little blue dot (or two) at the top of my post and smiled, knowing someone thought enough of my writing to include it in their own blog.
Then suddenly, one morning, duh, I realized that when others post my stuff, they attract their own audiences to the blog and start up whole new conversations about me behind my back in front of my face!
How cool is that?!
I visited all my re-blogs. Whoa - talk about fun! All these nice comments about me and my stuff that I didn't even know were out there! And more than a few people who had never heard of me (oh my!) who said they'd go check me out. Sweeeeeeet.
So, Lenn, Bob, Robin, Shirley, Donald, June, Gabe, Anthony, John and joe blow (yeah, seriously) ...... THANKS for the Re-blog! I shall endeavor to return the favor...
Happy Hallooooooweeeeeeen!
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Earlier this week (or maybe last week?) I promised to do a little series with tips on how to properly price historic homes in urban markets. Here's where I promised that - you might want to read it first.
Got distracted by conversations ‘bout Real Estate Reality Shows, but here I am again, back to the more mundane issues of our daily grind... pricing homes to sell. Yawn. (I say that a little sarcastically; I totally love this stuff).
Pricing historic homes in urban markets is a bit (a lot?) more time-consuming than pricing newer homes in planned developments. But, at least to my way of thinking, it's a whole lot more fun! Hope you think so, too...
Step One is to Drive by the Home. Never, ever, ever begin the pricing process until you've at least driven by the subject property. You need to have an accurate mental picture of the home and its general location on the planet in order to take the next step. When you drive by, be sure to look for any locational challenges such as nearby railroad tracks, overhead high-tension power lines, undesirable neighbors (either commercial or residential) or obvious parking issues. If the home has an alley, drive through it to see what the back of the house overlooks.
Very few older urban homes are in a perfect location; almost all have some locational "amenity" that buyers will object to. You need to be aware of any such objections upfront. On the other hand, if the subject property IS in a perfect location, that's something you need to know as well, because most of the comparables you'll be using won't be.
While we're on the topic, it's far better if you can get inside the house before you prepare your CMA. I usually handle this by doing a 2-step listing presentation - the first being an information-gathering/rapport-building meeting and the second focusing on the current market - i.e. pricing. (Actually, I do a three-step listing presentation, but I'll talk about that later).
That said, whether you do a one-step, two-step or even three-step listing presentation, never meet face2face with a seller without first, driving by the house, and second, perusing the relevant market data online. You need to be at least conversational about the local market, even if you haven't done your detailed research yet. Remember, the general public thinks all we do all day is drive around and look at houses, so if you stutter, stammer and hedge when the seller asks you about his neighborhood's market activity during your first meeting, he'll certainly doubt your professionalism and expertise. Being able to casually toss out a few neighborhood statistics or hyper-local market factoids will do wonders for your confidence and credibility.
If there are any homes for sale or any that have recently sold within one block of the seller's home, know the details of the listings or sales, even if they aren't comparable. Your seller knows all about them and he'll expect you to as well.
Homeowners in urban markets tend to be pretty enamored with their neighborhood and will expect their real estate agent to be, too. So, be as prepared as you can, as early as you can.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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But sheesh, most Doo-Dads are really silly. C'mon - personalized fly-swatters? Ice-scrapers? Lip balm? Oh, I'm not sayin' that I won't use a free fly-swatter, ice-scraper or lip balm, but I can pretty much promise you that such Doo-Dads are NOT going to make me feel obligated to use the person or company whose name graces said Doo-Dad!
I've been re-blogged a lot lately. Well, maybe not a LOT, but some. And in the past, it never occurred to me to check out the re-blogs - I just saw that little blue dot (or two) at the top of my post and smiled, knowing someone thought enough of my writing to include it in their own blog.
stuff).
;)
;)
