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What EXACTLY happened to my sellers when their house went on the market during the holidays?

By
Real Estate Agent with The Results Group Real Estate Team

In the Bay Area this year, we experienced a shift in the market.  But it wasn't as bad as everyone portrayed it to be.  Everyone in my office or agents would talk about how bad the market was.  I believe it all starts with your mindset. My team and I had multiple listings that we decided to put on the market during the holidays.

  • One home was out of our area in Tracy, CA where there is an abundance of inventory with 750+ homes on the market and in my seller's neighborhood, there alone was 30+ homes in one subdivision. The average DOM was 52 days and only 12% of homes went pending in the previous month in the city of Tracy at the time of our listing presentation.  My seller was extremely nervous because he evicted the tenants and it took 2 months to get his property in "saleable" condition and that brought us into the November. This was their investment that they did not like the fact of paying 2 mortgages.
  • The other was a luxury home in Union City (East Bay Area) that had more than 12 active listings in this gated community of 353 homes.  In the past 5 years, there has never been that much inventory.  The most would be 3 or 4.  In addition, nothing had gone pending in 3 months.  There are homes that are still on the market now and have been listed since March of this year.  My sellers had decided to purchase property out of state in Texas.  Since their house was not going to be ready until May 2007.  They had no rush to sell now.  While other agents told them to hold off and wait until January 2007, I told them there is no better time than to sell now.  Don't wait until January because you will have more competition which could me less money. 

 

Everyday I had a mindset that we are in the best time to sell this whole year.  I am no longer reading or hearing about a real estate bubble.  It's definitely been quiet in our local newspapers. I also know that November and December are my busiest months.  I feel it's your time as agents to capitalize on little inventory and competition with less agents working because of the holidays. So what I did for these two homes became an example in our office/market center.  I gave an extra incentive of .25% to the selling agent if they could get in escrow before Christmas and after Christmas it would be taken away just like an expiration date.  So they were both offered 3.25% to sell these homes and I educated my sellers on having their home "show ready."  I told my sellers that offering more commission would get more showings on your home and it would be less than a price reduction.  It will net you more money in the end. 

 

Both these homes received multiple offers and sold over asking.  The first one sold for $7K over asking in less than 14 days and the second one sold and closed escrow in 16 days and became the highest comparable in 2006 in this gated community. The homes had minimum upgrades compared to the other active listings.  Both agents were so pleasant to work with because I'm sure it was a great bonus during the holidays. My sellers were completely satisfied that one seller offered me a bonus as well and for me to be paid more than the buyer's agent due to the marketing strategy behind it. 

 

Always look for unique ways to bring you different results!     

Comments (20)

Colleen Irwin
Retired - Irondequoit, NY
Creative Real Estate Solutions...
An example of the power of positive thinking!   Congratulations!
Dec 26, 2006 09:23 PM
Scott Daniels Florida Real Estate 2.0. Agents Earn 100% Commission.
Florida List For Less Realty, Inc. Broker/Owner. - Cooper City, FL

It`s never a bad time to take a listing. Good job!

Happy New Year!

Dec 26, 2006 09:37 PM
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection
Raquel conrgatulation! I find the holiday period a great time to work, I have sold and listed during this time.  I also used the bonus incentive and was able to get an offer on a property which was rather difficult to sell.  This made the seller very happy and there is the potential for added business.
Dec 26, 2006 10:34 PM
John Klassen
M & T Bank - Kingston, NY

The mind is a powerful thing. You achieve what you focs on.

Great job!

Dec 26, 2006 10:34 PM
Allison Stewart
St.Cloud Homes - Saint Cloud, FL
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904

Raquel It was a good plan with a positive result. I have always believed in offering a better than average "incentive" to cooperating agents. Good job-it works for me too!

Dec 26, 2006 11:10 PM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

That's great that both sold so quickly!  On the other hand, it's a shame that agents have to look for the bonuses to potentially push their buyers into one house over another, though I'm sure these were great houses.

Dec 26, 2006 11:48 PM
Real Estate
Best Buffalo Homes - Ellicottville, NY
Congratulations!
Dec 26, 2006 11:55 PM
Diane Bell, Hilton Head Real Estate, Bluffton
Charter 1 Real Estate, Hilton Head, Bluffton, SC - Hilton Head Island, SC
Positive throughts always help to generate great results!
Dec 27, 2006 12:09 AM
Brian Brass
Brian Brass - Guaranteed Rate - Troy, MI

RAQUEL -

Congratulations on implementing an innovative idea with positive results!

Do you think this strategy could work in other markets with less activity?

Did you do any special marketing to the Selling Agents?
There appears to be very few Buyers even looking now.

I have a client who recently purchased new construction in the Fremont area.
Problem is his home in Tampa has been listed for 5 months with no offers.
It's 1 of 16 in a gated golf community priced less than 10 of the other homes.

I'm a Mortgage Banker seeking advice to help this client get the home sold.
Always looking for successful strategies to offer my existing referral partners.

I've offered the Listing Agent ways to utilize creative Seller assisted financing.
It's a win-win proposition that creates more eligible buyers for the property. 
These strategies have worked great in other markets - but the Agent won't try it.

Again, congratulations on your recent successes... 

 

 

Dec 27, 2006 01:26 AM
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Property and Asset Management

Raquel,

Thanks for the post. Keep those positive thoughts coming!

Dec 27, 2006 01:36 AM
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Specialist - Agent
Way to go.  What a great way to start out the new year.
Dec 27, 2006 01:38 AM
Suzanne Marriott
Keller Williams Arizona Realty - Anthem, AZ
Associate Broker, CLHMS, e-PRO
Raquel - Congratulations on the listing and the offers!  There is never a "bad time" to take a listing - and the Buyers out there at this time of year are on the whole more "serious" than when the tire kickers are out and about.
Dec 27, 2006 01:50 AM
Anonymous
Jeff Dowler
Good post, and more evidence that listing during the holidays may be the best time for many to sell. Congratulations on your offers!
Dec 27, 2006 01:55 AM
#13
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Good job Raquel, I too had a great November and December. Houses are selling if they are priced right and are offering a good co-broke. And of course a positive attitude like yours is a must.
Dec 27, 2006 02:03 AM
Raquel Cutchon
The Results Group Real Estate Team - Union City, CA
GRI, PME, ASP, ALC

Thank you everyone for the possitive feedback. For Brian Brass:

  • Offer a bonus to the selling agent
  • Make sure the property is staged right.  We often forget as agents and sellers that when our house goes on the market, it become a product to sell.  The memories do not go with the house and neither does the family. I like to say the people that understand this concept are the model homes on new construction because when people walk through with that house, they fall in love (people buy on emotions) and buy the home.  But when their own home gets delivered it looks nothing like the model.  Tell the sellers that anything that can distract the buyer is not a good thing.  Buyers will create their own opinions of the sellers.
  • Offer the neighbors an incentive if they brought you a buyer.  You would be able to double end the deal and your ROI would be high.
  • Do an open house in the middle of the week?  We do them on Friday since everyone from work is more relax.  When people see a sign during the week, I feel it's better than see all of them on the weekend.  Less competition.
  • Use virtual tours and craigs list.  You just don't know where the buyer will come from.  The internet is powerful. 

Hope some of those ideas help. 

Dec 27, 2006 03:47 AM
Val Allocco
Staged 2 Sell New York & Long Island - Northport, NY
HSE; ASHSR - Home Stager, for Manhattan, Brooklyn & Long Island

Raquel,

Another case of being pro-active and 'thinking outside the box'!  Congratulations to you!  I think that your incentive was a great idea!

Dec 27, 2006 04:26 AM
Anonymous
brad quinet
This is great!  What a positive mindset.  I am really going to use you as a motivator.  I am glad things worked so well for you.  I am looking forward to bringing that positivity into my office.  Thank you for the wake-up call.  Keep up the good work!
Dec 27, 2006 04:27 AM
#17
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Welcome to Active Rain and congratulations on your gold star! 

I agree that November and December are great times to list. I find only serious buyers are out looking at this time of the year.

Raquel, I'd be very careful about that neighbor incentive.

www.HomeRome.com

Baltimore,Md.

Dec 27, 2006 03:23 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Raquel.... I didn't read all the comments.... but I will say, that's thinking on your feet and it worked. And you were able to get the sellers to understand... and it actually paid off. Good job.

And as I see that Margaret welcomed you, I welcome you also.... and congrats on your first gold star.

 gold star

 

 

Dec 28, 2006 12:38 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty
Raquel - A featured post on your second blog is a great achievement!  Will we be seeing more of you on Active Rain now that you're in the Goodyear, AZ office?
Aug 30, 2007 12:34 PM