Special offer

All BS Aside...

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

 

Can’t help myself, but I believe that if I stumble while reading something, many others would stumble, too.

In this wonderful world of automation, agents send solicitations to people, and they do not notice when they are sending it to … other real estate professionals. I get it. They click, and bunch of labels come out indiscriminately, or there is a fulfilling company, which is not even in this area…

And I get my fair share in the mail.

Some are Godzilla-size postcards, some are #10 envelopes, and it is usually when someone wants to overcome my resistance to sell by their analytical skills.

I love analytical skills, so I read this stuff. Sometimes it is puzzling. Here is a short quote out of a two-page solicitation, which came in the mail a few days ago.

Here ‘s what we bring to YOUR table:

MLS data shows we are getting an average 96% of listing price for our sellers. The Daytona Beach MLS listings are averaging only 95% of listing price upon sale.

Our listings are averaging just 67 days on the market. The average listing time in the Daytona Beach MLS is 123 days on the market.

This means that our customers walk away from the sales table with more money in their pocket, in less time.

Wow, do they really walk away with more money?

If there were only the first statement, I could “swallow” it. 1% is not a huge deal, but it is good. But when they add the second statement, I am “choking”.

Here is why. Let’s say a house is worth $220K, but would take 123 days to sell. And at 95% of the listing price it sells for $209,000.

The other agent aggressively lists the same/similar house for $200,000, sells in 67 days for 96% of the listing price, and grosses $192,000 for the Seller.

So, the agent sells a house in 67 days and sells it at 96% of the listing price compared to average agent in the field.

But who said that the seller gets more money? In my example at 95% and after waiting 123 days, the seller gets $17,000 more. Of course, there might be situations when the Seller would rather sell in half the time and get less money, but do Sellers really understand that they were, probably, shortchanged? Was it with their understanding and knowledge?

Somebody may say, that they might be doing something better than average real estate agents. Is it possible? Theoretically yes, but I doubt it. If they had an ace in their sleeve, they would be bragging about it to the world. There is way more power and magic in this ace for them to forget even to mention it.

Yes, they say “our team will aggressively list….”  And I wholeheartedly believe the agent. Because if all BS aside, we all know that to keep selling in half time, you need to keep listing at half price.

Well, maybe a little higher :)

Laura Filip
Laura Filip Broker , Opening doors for All Seasons of Life - Whitesboro, TX
What can we do for you today?

Interesting thought, as long as the statement is true than one can say it. such as NO ONE IN THE WORLD SELLS MORE REAL ESTATE THAN RE/MAX  prove your point and we are all good. Just talked to a listing agent about a property I have a buyer that is interested in listed way to high said show your comps to prove your price point he stumbled and could not do so..... prove it sell it we are all good. 

Nov 13, 2014 07:48 AM
Scott Gleason, CRS
Coldwell Banker Realty - Westfield, NJ
Westfield NJ New Homes Specialist

Fact and figures can be manipulated into any way we want to present them.  In the end, though, it's results that will count.

Nov 13, 2014 07:54 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Oh, wow.... Thank you, guys. Won't be able to respond individually, but appreciate every comment.

 

Nov 13, 2014 11:02 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Jon, there is a big difference in those numbers! Great job to see it!  In fact, you could do a comparable chart showing that companies advertising piece and what it really means to the seller.  The Seller would appreciate knowing it too!

Nov 13, 2014 11:11 AM
Claude Labbe
RLAH / @properties - Washington, DC
Realty for Your Busy Life

People do fall for that stuff.

My Dad called me one day, as they were thinking of selling and said "hey, this realtor has a great program, and we won't have to worry about it".

That was about the time I clearly reminded Dad that if they were going to sell, I'd like to be part of the discussion with their interviews.  (2 years ago, and they aren't selling, it turns out)

Nov 13, 2014 11:46 AM
Graziella Bruner
NCS Premier Real Estate - Detroit, MI
Associate Broker - Serving Wayne & Oakland County

That's called "Evangelising the Numbers" - When you make it seem larger than it really is. That may look good on paper - but what are the real facts - that's what really counts.  

Nov 13, 2014 11:59 AM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Jon Zolsky, Daytona Beach, FL - isn't it interesting that we twist the numbers (and perhaps, facts, too!) to earn the business?

Nov 13, 2014 01:51 PM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Jon, and then there is the whole issue of when the listing status is getting changed.  In our MLS "active with contract" (still showing and able to take backups) is included in days on market.  Pending status sometimes isn't reached until just a few days before closing date.

Nov 13, 2014 08:58 PM
Raul Rodriguez
Covenant Partners Realty - San Antonio, TX
Looking out for the client's interest and not my p

There is an old saying about numbers (or figures in this case)...figures don't lie, but liars figure. Manipulation, now there's a word!

Nov 13, 2014 09:22 PM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

One statistic does not go with the other number (more money to seller) so you make a very valid point Jon. Most of these Godzilla size post cards go straight in the trash anyways.

Nov 14, 2014 12:22 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Jon, I love that last line. It's all relative, isn't it? Getting the most money for the seller should be the goal. How you get there may be different, but that should at least be the goal.

Nov 14, 2014 08:29 AM
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

Bravo, Jon. Whoever wrote that BS must have been a political science major.

Nov 14, 2014 10:05 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

I like how the comparison is made between average price sold vs. listing price and days on market.  Some people are fascinated by stats.

Nov 14, 2014 10:36 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Again, thank you all. I am sorry I am not answering personally as I usually always do. I was away from the computer, and then there was so many comments to answer...

Nov 16, 2014 12:44 PM
ReadySetLoan Team
ReadySetLoan Condo Team LLC - South Windsor, CT
Residential, Commercial & Condo Financing Experts

HI Jon - I appreciate a fellow analytical.  Maybe that's why I enjoy your posts so much.  That marketing works because so few would take the time to figure it our OR they don't understand that homes that are priced lower sell more quickly.

Nov 16, 2014 10:22 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Eric - thank you, you are very kind.

Nov 16, 2014 11:40 PM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

YOu have to wonder also is that 96% of the list price at the time it went pending.  Or 96% of the original list price.  If the price ended up getting reduced 2 or 3 times, the seller might not be actually netting more money.  

Nov 17, 2014 04:01 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Rob - I do not have the answer. Actually, I am not sure they have really researched it. Probably, looked at one sale, and saw that they grossed 96% of the listing price, and came up with this number. I simply do not know.

Nov 17, 2014 04:44 AM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Don't even get me started on those mass mailers. I believe, the only purpose of them is 'to show up', and to be delivered regularly. I did not think anyone is reading those mass mailers:)

Dec 14, 2014 06:08 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Inna - pretty much they are lies?

Dec 14, 2014 10:02 PM