I recently recieved an email from a local FSBO asking me a question I generally do not answer unless its asked by one of my sellers. I guess I was feeling nice that day, or maybe I just hope to eventually claim the listing but here was my response to him.
When reducing the price of a property there are a few things I recommend to keep it "fresh".
1. As noted in a previous post, a new picture is always a good start. Possibly a different front angle or just a better overall shot (almost all listing photos I see can be improved, including my own). This is especially effective when the seasons have changed since the original shots were taken.
2. If you are not using a Realtor you should be. But if for some reason you disagree, you absolutely need to get your home on the MLS. Some areas have companies that will list your home on the MLS for a low set fee. Fact is, the most powerful marketing tool available is the MLS.
3. Sometimes I use the phrase "New Price!" across the top of my listing photos in print advertising. I find that people are more drawn to it than when using "Price Reduced". It may have to do with the fact that people scan ad's looking for "New Listing" and the word new catches the eye.
4. Keep doing everything you have been doing and be sure to update the price on all the sites you are already using. Find a few more to use, you can never be on to many websites.
5. Make the price change once. If you have come to the conclusion that you are priced higher than you should be than you probably have had your house on the market awhile with no luck. If you are serious about selling your house, price it aggressively now. This is not a market where you are going to get lucky and make a million selling your house. You do not want to have to update 30 websites again next month when you realize you need another reduction.
I hope some of these ideas will help a fellow Realtor! Happy Selling!
Here are some tips that I give my sellers when listing their house. It's a mix of domestic wisdom and selling secrets!
Keep candles in the refrigerator for several hours before use to slow down dripping and make them last longer.
Have you tried baby wipes on carpet stains? They work so well you will be wondering why no one told you sooner!
To eliminate strong cooking odors (fish, fried food, bacon, garlic, ect.) heat white vinegar in an uncovered pot on the stove. (Don't boil) Remove after 30 minutes. The light vinegar smell dissipates quickly, taking odors with it.
After your next party, share flat, leftover beer with your garden. Plants love the yeast.
Ants hate anything spicy. Sprinkle ground pepper, cayenne, even cinnamon, in their path, and you'll stop them in their tracks.
Fill nail holes with a paste made from cornstarch and water. Works just as well as putty!
Your chimney will stay clean if you throw a handful of salt on the fire.
When a wooden door or gate sticks, bring out the hair dryer. By blowing hot air directly on the wood where its sticking, you will remove the moisture and the swelling will go down.
Squeaky doors? For a drip less solution, use petroleum jelly on the hinges instead of oil.
Simmer a sliced apple and a couple cinnamon sticks in water on your stove. Your whole house will smell like apple pie. This one is great for open houses!
Quick Skim For those who've wondered why some people seem to always find success while you struggle to live paycheck to paycheck, author Robert Shemin has the answer. In his new book, How Come That Idiot’s Rich and I’m Not? (Crown Publishers, 2008), Shemin provides a roadmap to becoming what he calls a “Rich Idiot” and building your wealth. He talks from experience, having become a multimillionaire himself by the age of 30 and owning a real estate empire of more than 400 properties. His wealth strategy relies on purchasing real estate, investing in stocks and bonds, and building your own business.
From the Book: 5 Ways to Increase Your Wealth
The key to achieving financial wealth first requires unlearning some of the things that have been holding you back, Shemin says. Here are a few:
1. Stop thinking too much. If you overanalyze and spend hours studying and creating complex charts to evaluate decisions, you risk becoming too set in your ways and unable to accept new ideas. In other words, “you’ve become too heavily invested in your own smartness,” Shemin says. By the time you’ve made a decision, the opportunity has disappeared. Instead, get the basic facts, verify those facts through others who’ve taken similar opportunities, trust your instincts, and then, most importantly, take action.
2. Throw away your long list of goals. Too many goals scatter your focus and energy, Shemin says. Instead, have one goal and pick activities to work toward it daily. “Setting too many goals is like taking aim with a shotgun,” Shemin writes. “Setting one goal is like taking aim with a laser beam.”
3. Get into debt. Good debt, that is — those assets that bring in more money than they cost. Good debt includes a loan to buy real estate or a loan to start your own business. Bad debt eliminate — debt on credit cards or that fancy car.
To help manage your cash flow and prevent bad debt, follow a budget, such as spending 30 percent on housing, 10 percent on transportation, 10 percent on insurance/medical, 15 percent
on food and clothing, 15 percent on travel and entertainment, 10 percent on savings, and 10 percent on charity.
4. Never say “I can’t.” Instead, say “How can I?” Maybe you don’t have the big bucks rolling in now but even a small investment can eventually pay off. For example, just a $1 investment per day can reap big rewards. In 20 years (earning interest at 10 percent), you’ll have $21,129, or $1.1 million in 60 years. Up that to $250 a week in savings (also earning 10 percent interest) and you’ll get even more — nearly $1.2 million in 25 years and more than $36.7 million in 60 years.
Need inspiration to keep yourself on track? Create a wealth wall that consists of pictures and words on luxuries you want, vacations you want to take, and examples of good works, such as a scholarship you could sponsor or a shelter you could help feed. Use the wall as full-color daily inspiration to reaching your goal.
5. Get to give. Wait a minute, shouldn’t it be give to get? Shemin says that in order to give, the “get” must come first. “I know that most of us are uncomfortable with receiving,” Shemin writes. “But Rich Idiots think of getting in a very different way. Rich Idiots know that the more they have, the more they can give. In fact, Rich Idiots crank this thinking up a notch and believe it’s their duty to get more so they can give more.”
The law of “get,” Shemin says, is receiving abundance with gratitude. So “get” more by being thankful for what you already have and always asking for more, such as for help, advice, and money. Then, donate to important causes. Even when you don’t have a lot to give monetarily, you can give by volunteering for a cause or contributing to your community.
Rich Idiots strive for balance in their lives — what comes to them in wealth is balanced with the wealth that flows from them to others, Shemin says.
Sneak Peek
“What made that guy or that girl back then an idiot is the same qualities that are making them rich today. And what got you the good grades and the pats on the back and all the gold stars is what’s keeping you from getting rich. Duh! And you thought it was all about hard work, sticking to the rules, and never coloring outside the lines.”
About the Author
Robert Shemin, a nationally recognized real estate expert, is the author of 10 best-selling books, including Secrets of Buying and Selling Real Estate Without Using Your Own Money (Wiley, 2003) and Successful Real Estate Investing: How to Avoid the 75 Most Costly Mistakes Every Investor Makes (John Wiley & Sons, 2003). He has been involved in more than 1,000 real estate transactions and serves as a spokesperson for the The National Association of Real Estate Investors and the American Congress of Real Estate Investors. He also serves as a regular expert on wealth for CNN. He holds a law degree and an MBA from Emory University.
As a real estate professional in the current market you are bound to run into your share of expired listings. Weather it is your listing that has expired, or a competitors, here are four major areas to address with the seller to get the listing back and get it sold-
1. Communication-
Teamwork and communication between the seller and agent is key to know how to alter a marketing plan for success. Inattention to a listing can be a factor, but rarely is the core issue. Make sure you let your sellers know that you want any feedback they can provide and that you will offer the same to them. The seller is the key source for information regarding changes in the neighborhood and property condition that affect the property's salability. The more you work together, the faster a sale will be closed.
2. Price-
This is the obvious most common culprit for the lack of a sale. An incorrectly priced home attracts the wrong buyers or worse, none at all. When working with a previously expired listing be sure to prepare an up-to-date competitive market analysis, the market conditions have probably changed since it was initially listed. Activity without offers often indicates overpricing. Remember, any home, no matter what the condition is, will sell for the right price.
3. Condition-
A home in like-new condition sells faster and gets the best price because it outshines the competition. Make sure your sellers fix all the little squeaks and drips, paint neutral colors where needed, brightened up and concentrated on outside curb appeal. I suggest having a few other agents from your office take a tour of the home with you and allow them to point out the areas that need to be addressed to make a sale happen. Make sure you relay any information that might be useful to the seller.
4.Marketing-
The saying goes, "Advertising doesn't sell homes, agents do." The secret to success is a carefully crafted marketing plan that exposes the property to the widest possible pool of prospective buyers. Some elements you might like to include in your plan: direct promotion to other agents/brokers, brochures and flyers, listing in an area wide internet website and MLS, broker open and buyer open houses if appropriate; and any other activities designed to capture buyers.
As a rule of thumb, make sure the home is in buyer-ready condition before you re-list it. If it didn't sell the first time around, don't just hope for better luck this time; make sure the necessary changes are made to inhibit a fast sale. Your sellers will thank you for it at the closing!
This is a list of the top five mistakes I have seen sellers make in the current market. I make a point to go over this list with all of my sellers when they list with me.
Mistake #1: Overpricing
Everyone knows the right price sells a home faster than any other factor. When you list a home at more than 5-10 percent over market value, the price will discourage potential buyers that think they can't afford to look. Buyers that do see your overpriced listing know they can get more for their money elsewhere.
Mistake #2: Fixer upper/as-is
Today's market is very competitive and most buyers do not even want to consider a home that needs multiple improvements. Buyers want a home that is neutral, clean, and in move-in condition. Even when a buyer decides he can tackle the fix-ups, they automatically subtract the cost they think it will cost them from the price they're going to offer. Either way sellers save nothing and likely delay the sale.
Mistake #3: Dark dated colors
The best dollar-for-dollar investment sellers can make is fresh paint. Fresh neutral paint makes a big difference in the feel of the home. Also, carpet is on the way out - replacing it because of condition or color can really help the sale price. If your sellers do not want to spend the money
to re-paint the entire house, have them focus on the kitchen, the master bedroom, and the garage. These areas tend to be inspected first during a showing, and if they aren't up to par, forget landing a buyer.
Mistake #4: Treating buyers as the enemy
Sellers sometimes forget that when we're at the negotiation table everyone wants the same thing - the house to sell. Make sure the sellers put down their dukes and come to a negotiation with a positive mind frame. Tell sellers to leave the discussions regarding price, terms, possession, and other conditions up to you. It's our job to get them the best deal.
Mistake #5: Delayed offer response
One of the most important mistakes sellers make is delaying their response to an offer. Be clear when explaining to your sellers that when buyers make an offer they are, right then, in the mood to buy. We all know how fast a mood can change and you don't want to lose a sale because your seller stalled the reply.
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.
Quick Skim
This is a list of the top five mistakes I have seen sellers make in the current market. I make a point to go over this list with all of my sellers when they list with me.
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