I don't know about you, but I'm very much enjoying this debate on whether or not we listing agents can positively affect the market value of our listings. I believe we can. And frankly, I'm stunned at the amount of opposition to that notion.
Now, a disclaimer - I don't work in a distressed market, so I shall defer to those who do that they know more about selling homes in that environment. Fair enough. If you work mostly REO's and short sales, you are excused from this discussion. Although... well, I'll get to that in a sec.
For the rest of us... those of who work primarily retail markets...
If your seller gave you $2,000 and asked you to spend it for him with the goal of getting the highest price in the shortest amount of time... what would you spend it on? Obviously every home and situation is different, but give me a list of priorities you'd address.
For example, would you...
Take out a full-color ad in the neighborhood newspaper? and/or
Bring in a stager? and/or
Bring in a handyman? and/or
Replace/refinish flooring?
Paint?
Hold a catered broker open house? and/or
Board the dogs? and/or
Landscape? and/or
Have the house professionally cleaned? and/or.....
I have a very clear list in my head of what I'd tackle first, next and after that, depending on what the home needs, but I'd like to hear yours. But here's the big question... DO YOU THINK IT WOULD MAKE A DIFFERENCE in the market value and ultimate sellability of the home? Or would your seller be throwing his money away?
p.s. As alluded to above, perhaps this is not relevant to a distressed market... but maybe it is. What if banks gave their listing agents $2k to spend on improving the property... do you think it would help move these properties faster... for more... or at all?
This is yet another follow-up to the topic of "Is Price Always the Best Answer to a Non-Selling Listing?" that I started last week. You can read more HERE and HERE.
Real estate agents are quite fond of the philosophy that "Price conquers all," meaning that if you price a listing low enough, it will sell regardless of the challenges the property presents.
Fair enough.
But I must ask. So what? Is that our job as professional real estate agents to simply recommend a price low enough that any piece of junk will sell?
Or, rather, is it to help our sellers get the highest possible price in the shortest possible time, whatever a realistic price and time may be? If our job is to simply sell it fast, at any price, well, shoot, just about any idiot can give their property away! Isn't that why homesellers hire us in the first place, to do a better job for them than they can do for themselves?
Real estate agents are always bragging about their listing expertise and defending their commissions by claiming they MORE THAN EARN THEIR FEE. Uh, well, I have to disagree if the only solution we offer our sellers is to price aggressively. There ARE other things a seller can do to maximize his sales price, and it's our job to 1) know what those things are, and 2) be willing to share those secrets with a seller and 3) help the seller accomplish those things. (and those were the topics of the previous blogs linked to above)
What if you went to your doctor with a pain in your leg and the only solution he offered was to cut the offending appendage off? Yes, that would cure the pain in your leg, but maybe there's a better way that involves a little more effort on his part (and yours). Or if your plumber simply removed the toilet that wasn't flushing instead of figuring out how to repair it?
Of course, if I request that the doctor amputate my leg, or that the plumber tear out my toilet, or that my Realtor simply give my house away, well, then, they have my blessing. But in most cases, c'mon, our clients deserve a little more effort and expertise than that, don't they?
I'm not sayin' that price isn't important - of course it is. But if we keep preaching that "Price is the ANSWER!" to the exclusion of any other effort on our part, we may end up preaching ourselves out of a job...deservedly so, I might add.
So, if your listing isn't selling and you've agreed with me that perhaps price might not be the best solution, what else can you look at?
Well, it might be really simple. Have you checked access lately? Lockbox still there? Key still in it? Key still work in the lock (sticky locks kill showings)? Is the seller declining or restricting showings?
Have you previewed your listing lately? Does it still show well and smell good?
How's your MLS description? Is it dull ("3 bedroom/2 bath ranch in Woodbridge") or jazzy ("Mid-Century tri-level with modern flair!")? Do you over-promise and under-deliver? Are the photos in season? ARE there photos? Are the driving directions correct, if the property isn't a slam-dunk to find?
Here's a biggie - IS THERE A BUYER for this house? Are other similar homes selling? If so, there's something wrong with yours. If not, there may simply not be a buyer on the planet at this time and you can't manufacture one. Not all homes are sellable, contrary to popular opinion.
Take a really close look at what IS selling in the neighborhood or market area. Can you identify any common denominators among the selling listings versus the non-selling ones? Maybe all the sales are of 4-bedrooms and yours has 3. Maybe it's the 2-story models that are selling and yours is a ranch. You can't fix that, of course, but it might help you understand (and explain to your seller).
But what if the problem isn't simple, but is fixable?
Tell ya what - if you want to hear the rest of the story - click here for a 15-minute audio from a live presentation I did this spring on this very topic! Hope you enjoy!
This stuff is also included in my released-just-this-week book "If You're Not Having Fun Selling Real Estate, You're Not Doing it Right!" available as an ebook at my website.
When your listing hasn't sold, what's the first thing you look at?
PRICE!
Right?
Nope. Not always. Not even most of the time.*
Many real estate agents claim that price cures all. And in a way, they're right. If you have a listing that shows poorly or is difficult to show or smells funny, there probably IS a price that will inspire buyers to overlook the clutter, access issues or eau du Chef Boyardee.
But is price the RIGHT answer? Again, not always. Not even most of the time.*
Why on earth not?
Three reasons.
First, I hope that when we real estate agents price our listings, we're pretty proud of that price. If I've put a price on a property, unless the market has declined, I'm pretty sure I'm in the ballpark. And the thing is, in today's market, buyers are well aware that they can "make an offer," so a minimal price reduction--say, $229,000 to $224,000 probably isn't going to make much of an impression on the market. In order for a price reduction to be meaningful, it's going to have to take that listing into a different pricing tier, thus introducing it to a whole new set of buyers who weren't looking at it before. And, depending on the price range of the property, that might mean a price reduction of $20,000 or more.
Now, think about what we could do with that $20,000--seriously.
Second, automatically resorting to the solution of reducing the price is really not what my seller wants to hear, and in that mindset, he's likely to question my professionalism and commitment. Let's face it, a price reduction is an awfully easy solution to offer and often abused by the real estate community. We all know agents who "buy" listings at a too-high price and then, as part of their game plan, beat up the seller later for a price reduction. And this isn't a secret to the general public--a lot of sellers are aware this happens, too. So, when your first and only solution is a price reduction, I believe it can really damage your credibility, especially if you recommended or agreed to the price in the first place.
But the main reason I'm opposed to looking first at the price as the solution is because it's rarely the best solution for the seller.
The thing is, there are tons of solvable problems - some simple, some not-so - that can keep an otherwise marketable home from moving. Our job is to play detective with our non-selling listings to determine if there's a problem we and/or our seller can solve, outside of a price reduction.
Stay tuned... I'll pick this up tomorrow!
*Unless you're overpriced to begin with, of course.
You should have seen me on Saturday afternoon. I (being the master webgoddess that I've become) spent much of the afternoon creating the web page where my BRAND NEW BOOK would be featured. When I clicked "Publish" on my handy-dandy Adobe Contribute screen and saw my newest pride & joy go live for all the world to see... well, it was a fine moment indeed.
The name of the BRAND NEW BOOK is "If You're Not Having Fun Selling Real Estate, You're Not Doing it Right!" Kind of an optimistic title in today's real estate environment, eh? But you know what? Even in a recession, you gotta have fun if you're going to succeed in a tough business. Or, shoot, especially in a recession, you better enjoy what you're doing if you're going to succeed!
So, what's all this "fun" I think you should be having? And how do I propose you have it?
Well, my email signature line (borrowed from Pearl S. Buck) says it best: "The Secret of Joy in Work is one word - Excellence. To do something well is to enjoy it." That's what the book is about. Becoming an exceptional real estate agent who enjoys the heck out of her (or his) career because she knows she's the best thing that could ever happen to her clients
That's fun.
The "real" book won't go to press until later this year, but the downloadable ebook is available now on the above-mentioned web page I spent all Saturday creating. If you wanna buy it, here's the link: www.sellwithsoul.com/sws-sequel.html. It's $11.95.
If you love the book and want to tell me all about it, you might just find your comments included in the "reviews" section of the final print version. Wouldn't that be cool?
Thanks for all your support... and go have some FUN today!
Visit most real estate training sites and you'll pretty quickly see references to being a Superstar or a Champion or a Hero or a Top Producer or some other high-falutin' descriptive term for a tippy-top level of real estate production. You'll see testimonials from agents who bought whatever system is being marketed claiming to have tripled their income or hit the half-million mark in commissions or sold 167 houses their first month on the program.
Wow. That's something. I'll admit to being intimidated by such marketing, both as an active real estate agent AND a real estate trainer myself. Gee, I never made $500,000 or sold 300 houses in a year. Neither has anyone I've ever coached or mentored or trained.
Do I believe the claims? Sure I do - no real reason to believe that such levels aren't attainable just because I never did it or know anyone who did.
But I don't believe that the majority of agents are going to see anywhere near those production levels, regardless of what system, program or philosophy they follow. No, not even in a good market.
And that's okay! I have a loyal following of several thousand real estate agents who don't want or need to set the world on fire - they just want to make a consistent, comfortable living, doing business in a manner they're proud of, making more people happy than unhappy. They also want to have time for their families, their hobbies and their naps. They don't want to be Power Prospectors who generate business 14 hours a day and then hand it off to their harem of assistants and specialists on their way out the door to drum up even more.
Hey, there's nothing wrong with wanting to be the Top Dog in your office, neighborhood, city, county or state. But if you don't, that's okay, too. There's plenty of room (and commission checks) here in the middle for those with slightly less-grand aspirations.
So, don't fret if you doubt you'll ever be a Superstar. You're in very good company.
It's DONE! The Sequel to Sell with Soul AVAILABLE NOW! Order Here
I have a new soapbox that has fired up my blogging energy... doncha' love it when that happens? Off we go...
I had an interesting meeting last summer with a real estate agent who started in the business the same year I did, in the same company. That year, he was the Rookie of the Year ... and I was runner-up to him. Neither of us recall who was third, of course!
Anyway, we literally hadn't run into each other since that awards ceremony in the mid-90's. Oh, I've seen his name around and he's seen mine, but we've never actually talked. We both went on to have successful careers and to set our individual worlds on fire (in our own minds anyway) and are still alive and kicking, almost 13 years later. Good thing.
So, last summer, we had the opportunity to chat about our respective careers. Since his dad had been a mega-producing broker at the time this guy (let's call him Skip) entered the business, I always assumed that his success had been handed to him. Au Contraire!
Skip explained that his dad wouldn't even let him in the door of his real estate office until he had, get this, worked for a year as a copier salesman. After that, he had to get his appraiser's license. Only then did Dad allow him to hang his new real estate license. But that was only the beginning - the boot camp then begun. Skip had to call all 600 of his dad's past clients, had to knock on 20 FSBO doors and call 20 expired listings per week. He had to hold two open houses every single Saturday. I'm sure there was mass-mailing and advertising tossed in there, too, but he didn't mention it.
And, voila! Skip was Rookie of the Year!
At the same time, I was taking my friends to lunch and attending social events with my future-ex-husband. I did some open houses and returned phone calls in nano-seconds. That was about it for my prospecting efforts.
And voila! I was the Rookie of the Year Runner-up!
Truth be told, Skip blew me away in production. He sold something like 70 houses that first year to my 25. But I was pretty darn happy with my 25 and I was enjoying the heck out of my new real estate career. So, for me, it worked. Had I been forced thru Skip's boot camp, I wouldn't have made it past my first month.
Fast forward to today.
Both Skip and I have had successful careers. We've made a lot of money and have consistently been top producers in our offices. I'm sure he has a lot of plaques on his "me wall," as do I.
But our approaches are still vastly different. He said he has to sell AT LEAST 100 houses a year to be profitable - that is, to support the systems and staff he's put in place. He HAS to cold call, he HAS to door knock, he HAS to prospect, prospect, prospect to stay afloat. He said that if he only has 5 closings in a month, he's in deep financial doo-doo.
Me? Well, my "best" year was in 2001 when I sold something like 70 houses. But you know what? That year, I brought home less than 40% of my gross commissions (not counting taxes) because the cost of maintaining that level of production was astronomical. A few years later, I sold "only" 35 houses and netted exactly the same amount, working half as hard and taking on only half the risk. Hmmmmmm.
Today, my business is very simple (and cheap) to run. It's just me, myself and I. No assistants, no buyer agents, not even a free-lance transaction coordinator. I don't advertise, farm or SEO. Due to my strong sphere of influence and past client database, I have a steady stream of good business. Will I sell 100 houses this year? Uh, no. But do I work 60 hours a week? Nope. Haven't done that in years.
I imagine Skip's annual income is close to a million, if not more. Mine? Nowhere close to a million! But do I feel as if I'm been blown away by my fellow Rookie? Not really.
I don't ever want to be in the position of having to be a mega-producer in order to survive. I just want to take on the amount of business I can handle all by myself, the amount of business that I can easily attract using the soulful methods and philosophies that have always worked for me.
I must be getting old...
It's DONE! The Sequel to Sell with Soul AVAILABLE NOW! Order Here
As the Introverted Real Estate Agent's New Best Friend (I just made that up), I give out a lot of advice on how to make a real estate career work even if you aren't the most outgoing, charismatic social butterfly in town. The other day I was asked about the appropriateness of adding people to your mailing list (either email or snail-mail) without their permission. Spam issues aside (we're talking about people we know, not strangers), many introverts are hesitant to begin any structured communication with a friend or acquaintance for fear of annoying them.
I get that. Oh, how I get that. I agonize over my mailing list every time I send something out, whether it be to my real estate Sphere of Influence or my Sell with Soul readership. I wonder if I'm communicating too much; if I'm wearing out my welcome; or conversely, if I'm not communicating enough and my audience has forgotten who I am. I worry about the appropriateness of including a little promo for my next product or new listing. Conversely, I worry that if I don't, I'm not fulfilling my duty to myself to effectively market my stuff.
It's easy to over-think such things and end up doing nothing. Which is a bad plan. So, if this sounds anything like you, here are a few thoughts to put your mind at ease...
First, ask yourself if what you're getting ready to send out is something you're proud of. If it's something you'd enjoy receiving in your mailbox or inbox. Or, egads, if it's some cheesy newsletter or sales piece that you'd toss without reading if it were sent to you.
If your communication is something you are proud of and would enjoy receiving, then move on down to the next point. If it's not, if you're actually embarrassed by your effort, then you need to honor that gut feeling and return to the drawing board. Because, in my opinion, sending something cheesy or dorky is NOT better than doing nothing at all! But that's a topic for a different day.
If you're pleased with your piece, send it out. To everyone. Here's the thing. A few might be annoyed or feel spammed. That's a fact. But most won't. The vast majority won't. If you're sending out good stuff, most will enjoy it and be impressed by you. Which is good for business.
I'd rather impress 10 people and risk annoying one than take the chance of some other agent getting my SOI's business because I was worried about the one...
Are you a Broker B (as in, Broker Bryant Tutas) follower? If you aren't, you're one of, like 5 people on Active Rain who aren't. We Rainers love our Broker Bryant, don't we? And don't get us started on how much we adore his wife, TLW.
So, my people talked with his people and we arranged a special Broker Bryant show that's open to the public! On Saturday, June 20th, BB (and TLW?) will be joining me for an in-depth discussion of, well, whatever we decide to talk about!
Actually, the plan is to hit BB with a barrage of questions on topics he's passionate about - which, by default, according to his latest popularity polls, you are passionate about also.
It's a free show and worth every penny. Hope you'll join us!
Here are the details: Date & Time: Saturday morning, June 20th 8:30 am (pacific) / 11:30 am (eastern) Location: Your phone or computer - take your pick Duration: 60 - 90 minutes Cost: FREEEEEEE Registration: REQUIRED - Click here
Once you've registered, you'll have the opportunity to submit questions you'd like BB to address. And please do!
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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