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Experiences Selling on Craigslist Teach About Real Estate Selling

This past week, I have been having a blast selling some personal items on Craigslist. I learnt an invaluable experience about safety's do's and dont's on Craigslist. The selling became almost a dog fight at one point. Buyers scrambling to my home to be the first one there (first come, first serve basis). Then, I realized I have another opportunity to share about selling and pricing - especially for our real estate business.

Pricing for Sellers:

Whenever you sell (real estate or other stuff), pricing is key in obtaining your objective. Are you pricing your product to move it or are you just merely testing the water to see if there are takers? These two paths can bring very different outcomes.

Buyers know the VALUE:

Pricing is the motivation to purchase or not for buyers. Again, in my experience, even though some of the items I sold had minor defects on it, I priced it accordingly. For the items that were in immaculate condition, I priced it accordingly. When 10 people emailed me about that particular item, and 1 person asked if the price can be negotiated, very clearly the answer is No (multiple offer situations in real estate can still happen). Capitalize on high-end name brands (the same with sharing names of high quality builders on the homes you sell).

When sellers price it "correctly" and buyers see the value, the come in like a swarm of bees. I was so busy answering emails from my Craigslist ads, I thought I had a new career.

Did I price it for a bidding war? No. I was just selling stuff I didn't want and I had no clue about the demand out there. But I priced it to sell it to reach my objective. I checked the "comps" for the items. Within 10-15 minutes, you know if that item was justified at $50 or $100.

Again, these principles can be applied to real estate. Serious buyers who have been looking for a while (not just the first weekend) will see the value. They will buy - Yes, even in this economy. All real estate should sell given the right price. Do not use "this economy" as an excuse anymore.

Tip: Proper description is essential to a successful sale. High-quality mahogany stained dining table that can be used also as a conference table (two users, two possible buyers). Also bring out the creativity in you. Help the unimaginative buyers for possibilities in your description. I find these most compelling.

In our real estate world, agents do a poor job in :

Describing their properties on websites
Spending enough to know the smallest useful features of the house
Making sure buyers' agents know about these features
Taking photos to show the beauty of the home
Capitalizing on the emotions that the home may bring.

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Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

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Copyright © 2009 by Loreena Yeo (3:16 team REALTY).
Experiences Selling on Craigslist Teach About Real Estate Selling.

Posted by Loreena Yeo - Broker|Realtor(R) of Frisco-TX-Homes (214) 783-2210 on 06/26/2009 08:27 AM

Comments (66)

Selling on Craigslist Teach About Real Estate Selling in the Sales Strategies / Tactics Channel

pricing strategy for home sellers

Originally posted at: faithfully frisco tx homes for sale: Experiences Selling on Craigslist Teach About Real Estate Selling

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66 Comments on Experiences Selling on Craigslist Teach About Real Estate Selling

JUN

Great analogy, Loreena.

Pricing right is the bomb in real estate. When you do and it sells, the sellers love you. When not they blame you.

I love Craigslist and often find steals on it. I buy all my staging furniture off of it. That side end of my business has actually paid for the furniture twice. I bought a leather camel back couch for 60.00 that looked new. Thats been the best deal so far.Great for staging!

I love Craigslist. I find many of my investors both local and out of state. Great tool!

Very nice post we post on craigslist and have found it to be very helpful. Thanks for some tips I needed

Title including subdivision/city or area helps here. Houston is enormous!

Thanks, we've gotten off track in posting our listings ! Good tips !

Warning, I put up a short sale on Craig's list that was a great price. I was going to the house the next day at Noon to put up the sign and lockbox. The next morning two people had already gone up to the dooor, rang the bell, and asked them if they could buy the house directly. First, I would get up the sign first, and then second, I might consider whether i should post an address on Craig's List. My sellers were happy that I got on the marketing so quickly, but not happy about the door knockers. Who knows if they were really buyers? I know give subdivision info but not the address.

Just starting on Craigslist and yes, pricing things right is the key, especially for real estate. Which reminds me, I've got some things to do on Craigslist before the end of this week. Thanks for the tips.

Excellent analogy, and very very true words about pricing.

... and some great tips for sharpening our listings !

Nicely done Loreena !

Sheldon :o)

Good points. Too many descriptions leave much to be desired. Many of the REO listings seem to have the same information. The agents are not bothering to state the selling points.

No matter how much money you throw at an over priced listing, it will not sell. In this market, today, Price is King. Great post. I post my listings on Craigslist, too.

I love Craigslist also.

One other essential for selling - Great Photos. Even better with the description of the mahogany table is a good photgraph showing the size and style.

Loreena, I would like to add that programs like www.vflyer.com will upload onto Craig's List so you can have picture slide show/mash ups on the site. I would think that Postlets would too. As the above comments say pictures are important, and these programs really set you apart.

I would add that Presentation is also a big part of it. If you saw an ad that said

"xyz laptop, 08, definatly runs good, got new one,, fist to come gets it 300"

and an ad, for the same computer, that said

"XYZ laptop. Purchased new in 2008. Runs well, I just needed the newer model. Will sell to first buyer, for $300."

...which one would you buy?

Same in real estate, how are you presenting yourself and your clients? On the internet, in person, everywhere?

Julie

Hit the nail right on the head. Do your homework and get some comps. Convince your buyer that if they price it wrong they will eliminate interested buyers and pricing high does not counter lowball offers. Talk to the selling points and we know that GREAT pictures help sell (get a professional if you can't do it right yourself). WE know it's the basics to do this, but when I look at many listings in MLS I don't always see it.

I posted 2 listings on Craigslist. One I got an e-mail from a buyer, but he is not able to buy at this time. The second posting I got 3 emails from companies thinking I was a FSBO wanting to help me market my house.

I thinks it is still a good tool though, in spite of the recent bad publicity.

Loreena - I love Craig's list but have only used it for homes and land. i really should branch out and sell some of the treasures I keep tripping over in the garage!

Loreena - You bring up some really good points. I feel like I need to read your post again, and take a fresh look at some of our listings that haven't sold in the last 60 days. Maybe it's part marketing and I need to rewrite the copy.

Of course, it's always price, but if I feel right about the price, maybe I didn't convey the right message and mention the right things is what I'm thinking...

Excellent analogy! Loved this post. :)

So right! I love Craigslist - has so much to offer! Just like real estate though, you still get the lowballers, who don't recognize a good value when then see one!

It used to be location, location, location. Now its price, price, location!

Loreena, as I read your blog a saying that someone shared with me came to mind:

There's nothing so wrong with a property that pricing can't fix.

Great tips for Craiglist. We have sold many personal items on there and love it.

http://www.homeinspectioncarolina.com/

http://www.askthecharlotteinspector.com/

Pricing is key whether on Craigslist or the MLS. I even give away stuff on Craigslist - good forum!

Great analogy Loreena! Describe it well, price it right and get multiple bids. Love it!

I posted my listings via Vflyer to Craigslist last night, and opened my email this morning to a new buyer! I agree with your assessment of what the typical real estate agent does a POOR job of. Those are the things I strive to do a GOOD job in - and it's easy for prospective sellers to see the difference online when they check me out!

Loreena, another great thing for buyers online is they can comparison shop specs/features/price very easily too.

Loreena , Craigslist has been and excellent avenue for me to find potential For Sale by Owners. I have a person on my staff that looks at Craiglist every morning to see what is available. I also can Wholesale a lot of my properties on Craigslist as well. Best of all it is free

I have noticed that Craigslist has some bargain hunters who want a bargain of a house. I have used Postlets there.

Perfect analogy and one that can be used when discussing a list price with sellers. Great Post!

Loreena, you're correct that "buyers know the value" and the value relates directly to the comps!!!

Loreena - I love Craigslist too for my listings and for selling personal items. If you price it right, they will come!

You hit a lot of very good points. Thank you for the reminder...

If you have something priced correctly.. it will sell.. If it is not selling.. look at the price.. Great post !

This is a great analogy between selling real estate and selling just "stuff" on Craigslist and why the same principles work for both.

JUN

Loreena - This is awesome. We went from a little conversation on Facebook to a featured blog post. Is so cool that pretty much everything in life can relate to real estate in form or another. Love the analogy and loved your blog even more ! We all can learn more by remembering what you stated here !

Thanks for the tips Loreena--both for real estate and Craigslist. I went back and checked your safety tips too. Good advice for all.

You write great stuff. I agree our descriptions need to peak interest. Thanks

I had a call from a real estate ad I posted on Craigslist last week. It's one more avenue to reach consumers.

Craigs list for me has been a great source for leads.

Pricing is tricky...... I have seen success in the forclosure market by actually underpricing a home and instigating a bidding war. It's not good for the agent that has a buyer in line with 10 othet offers but is good for the bank (seller).

Craig's List is GREAT!

Using Point2Agent, my web site posts directly to Craig's List and several other large search engines. I post REO proeprties, but highlight pricing and provide lots and lots of pictures rather than too much detailed description. Seems like for these REO's the first thing they ask is price, so I try to highlight that as much as possible, "Originally listed at $280,000, NOW $210,000". Headed to the low 100's here this week, so will talk about a pool also.

I spend about an hour a day and usually end up with one or two leads everyday. Some good, some not....you know a lead is a lead! In Nevada we are permitteds to advertise any of our Broker's listings. I post/repost, 30 -40 properties everyday in order to keep these properties out front of others. Believe me it works!

great post! yes, I agree, right pricing is so valuable. I will check out Craigs list. thanks for the info!

A caution about craigslist. When they first came out I decided I wanted to sell an antique French armoire. No real reason except that I'd looked at for years and maybe wanted a change. I got the scariest responses. One said her friend would be right over with cash, pay more than I asked, just have it ready. My email response was to ask when the friend was coming as my husband is a policeman and insists on being present! Not one more word from them. This happened three times on this before I pulled the ad. No, there is no "policeman" but my virtual one has sure come in handy on the phone late at night or this kind of thing :)

I was trying to sell some chrome automobile wheels. Can't belibe how many times people tried to scam me. You name it, they tried it. Even sending bad checks........Now only accept ceritifed bank funds and CASH.........even had a guy that only lived a few blocks away that wanted to give me a personal check instead of going to the bank and getting cash.......better be carefull out there.....great idea Joanie

Perhaps I tried to sell furniture or kids items. So the scam hit list is not that bad.

I agree that some items attract more scams like a DSLR camera my friend once tried. The way they wrote in that email, they think people are born yesterday.

Lorenna,

I agree, pricing has everything to do with how fast you want to sell your product/or house..

I have found that Craigslst is considered to be the "Online Garage Sale" and Twitter to be the "Online Water Cooler"

They both serve a purpose and if you used correctly can drive traffic and buyers to you.

Take a look at www.postandsend.com and www.tweetmymessage.com They work with realtors and help put campaigns together for them for little cost.

Great Service..

Thanks for the article, it was well thought out.

David

Craigslist wins hands down in marketing all our real estate properties! We receive the most responses from buyers and sellers from posting ads on this site. Thanks for sharing your positive experiences!

I'm wondering if anyone has experience selling vacation/second home properties using craigslist in the markets from which buyers usually come, rather than in the market where the property is located? For example, to sell a Big Island (Hawaii) resort condo, would it be effective to place ads in the Bay Area or Seattle craiglist?

Mahalo for a great post!

Beth

The descriptions of some listings on CL, and sometimes the MLS, leaves a lot to be desired. If you're putting something out there, you need to act like you really want it to sell. Great post!

Loreena,

This was a very well-written post.

I've used Craig's list quite succesfully.

Brian

Loreena, I have had very good luck selling specific personal items on Craig's List. Just last week I posted a Nordic Track Elliptical and sold it within one day! We are selling our home and I just won't have room in our new place. A few months ago, I also sold a complete set of Ladies Callaway Golf Clubs and bag. Good analogy to real estate - good property priced properly will sell, and Craig's List is a good addition to our marketing plans.

I get a lot of response on CraigsList, but I use good ads with HTML. But I need more properties to put up.

I must confess the we have never tried Craig's List, your post has opened my eyes and I promise I will try, your tips are very valid, when it comes to buyer VS seller, no matter what the item is, price is what will either make it or break it.

Antonio

I get my listings "hijacked" regularly on Craigs List. I just had a condo we were advertising become a "rental" under Craigs list! The person who hijacked was accepting applications for our Condo with "hydro and electricity included" (hydro? Not in THIS country does Water ever get labed as "hyro"!) and the ad started with the ver clever, "Dearly Beloved". Now just what kind of landlord does that? Can you spell "NIGERIA"!! Turns out they were "phising" for checking accounts, soc. sec. #'s and other secure credit information! It got removed very quickly but god knows how many got trapped in this.

We use Craig's List often but the downside needs to be monitored!

When I post a listing on my Point2agent website its automatically posted to Craigslist.. its coool

Loreena, I agree!

I often say to my friends or clients "if it is PRICE RIGHT, there is always a Buyer", it doesn't matter what the market is doing. That is the trick.... we need to do a lot of homework when it comes to pricing the product correctly.

Hi Loreena - good tips. And something I have posted about before is photos, photos, photos! I'm amazed when someone writes a description in their listing, but posts no photos or just one bad one of the front of a house obscured by a giant bush. With so many other choices, I don't want to waste my clients' time taking them to see something that could be awful. Show me the pictures, and write captions to them so I know what I'm supposed to see in each.

A great place for marketing. Nice post.

JUN

Craigslist has many advantages when used properly in real estate.

Start your listings on Postlets.com and go the Craig's List from there. Great sources for exposure!

Nice reminders, Loreena. I often wonder what we'd do if Craig's List up and went away? It's definitely THE source here in the San Francisco Bay Area for rental and household items. Real estate for sale has picked up too--it used to be we Realtors would post listings, but now I find potential buyers, without agents, are finding listings and calling about them. Sweet!

I have used Craigslist for my listings and have not had any luck. The only responses I get are from fictitious people that have a lot of money to invest in my house and bad spelling and grammar! I just have to empty my spam junk on the server more often. Still some Sellers insist and I comply.

JUN

Loreena, great post as always. I never thought about it, but there are definitely many lessons we can learn from how people sell items on CraigsList. Thanks for sharing your insights!

JUL

I'm about ready to GIVE UP on CRAIG'S LIST. Despite clicking the box that is supposed to keep out spam mail, it is very obvious to me that my spam mail goes up radically when I place an MLS listing on line. I also am not too sure about this Active Rain site...I'm starting to get emails directly into my profile here that are quite frankly spam. Is anyone else having this problem?

I have a SPAM filter set up by the way. I don't do the one where every contact has to look at a series of letters and numbers squiggled on a screen...because frankly they drive me nuts to do (apparently I can't read them well enough and it means I have to stop what I'm doing and go do that instead when the email comes back.

Roxy - I'm sorry about your experience especially on Active Rain. This may not be what you want to hear, but if you want to look at it in a "good" way, just as the "spammers" found out, potential clients can too. It is a matter of time before you receive a postive email. I know because I receive them on a weekly basis.

JUL

Loreena. Right pricing can mean the difference between a quicksale and a long wait.

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