This week I received an inquiry from my website. So I immediately picked up the phone trying to respond quickly and demonstrate professionalism. When the man on the other end of the line answerd, he seemed pleased with my prompt reply to his web inquiry. I asked him how I might be of service to him as it appears from his inquiry that he is interested in selling his home and buying another one.
The would-be-client (We'll call him Ted) responds with, "No, I like the home I live in and have no intention of selling it, I just want you to sell my house." Huh? Pardon me, Ted, but I don't understand. Well, the conversation that ensued took about 25 minutes so I won't bore you with it in real time. Here's the gist:
Ted had used a wayyyyyy out of area broker to place his rental home in MLS. He paid $99 for this service. Ted was sending emails to all the agents within a reasonable radius of his rental home to ask them to sell his house.
Ted couldn't figure out why agents were unwilling to show his property and why this property wasn't selling. Since I had recently been working with a buyer who was looking for a home in the same area and in the same price range, I was curious why this listing had not been one of the ones my client chose to see. So, I took a look at his listing on MLS and here's what I found:
- There were only 4 photos in MLS. Front of the house, a picture of a stairway, a picture of a granite counter in the kitchen and a picture of a small backyard that was landscaped with only grass and no shrubs and a 2 ft. by 1 ft. piece of concrete next to the back door...very sparce to say the least.
- In Ted's email he had sent me a link to a lovely video of the home done on RealEstateShows.com. Yet this wonderful video was not on the listing.
- Since the home was a rental, Sam didn't want anyone disturbing the tenants, so he was restricting showings and prequalifying anyone who wanted to see the property.
- In the agent remarks (a portion of the listing that only agents and brokers can see) it read, "Agents to negotiate all terms of sale with the Seller."
Ted couldn't understand why the local agents weren't flocking to him with fistfuls of offers. I politely told him that in trying to save the commission he thought he was saving in not being represented by a listing agent he had:
- Originally Overpriced his rental home and although he'd recently had dropped the price by $150,000 he needs to drop it by an additional $150,000 in order to get the property shown. And, had he used the services of a listing agent, he would have most probably priced it right to begin with six months ago and not been subject to the significant price drop we've experienced in the past 6 months while he's been on the market. Ted's rental home was originally priced at $1,300,000. He just dropped the price to $1,150,000. In my opinion Ted really needs to drop the price to just below $1,000,000 to even get it shown. It just does not compare with area homes currently listed in the $1,150,000 price range.
- In sending emails to real estate agents who are working hard to market the properties they actually have listed and giving the impression he has a sincere desire to work with them, he's only wasting his time and ours. Most full time, practicing agents have wonderful clients that are willing to pay for our services to assist them in marketing their homes and appreciate utilizing the advantage of our expertise. I asked Ted if he'd be willing to work for months without receiving a paycheck and possibly never be paid for his work. The question of course was rhetorical and hopefully helped Ted to reconsider his options.
- Hard to Show - There are homes on the market with tenants in the property. Most agents agree that typically, these listings are not as easy to show, but this is not always the case. If you are a landlord who is attempting to sell your rental home while it is still rented, make it worth the tenants while by offering them a slight reduction in rent for the inconvenience to them during the marketing period. A couple hundred dollars in rent reduction saves you thousands in price decline during a declining market. I also ascertained from Ted that there was no lockbox on the property so if the tenants were unavailable, the property was not available to be seen by prospective buyers. There was no sign on the property so neighbors who might know someone interested in moving to the area or anyone driving by would have no idea the property is even for sale.
- Seller Trying to do the Job of a Professional - Buyer's Agents know that when they will be negotiating directly with the Seller in a transaction that invariably we must work twice as hard at best. Anyone who is unlicensed and not working in the real estate business daily is unfamiliar with the process and really need someone to help them to correctly furnish the necessary paperwork to complete the transaction. This is not the job of escrow, it is not the job of the Buyer's Agent, and do you honestly think the broker who placed the listing in MLS for Ted for $99 is going to be of any assistance? Trying to handle the sale of your own property is much like trying to do open heart surgery on yourself. Even if you have the skills, it is very difficult to make unemotional decision.
If you are a seller attempting to sell the property yourself, a word of caution...this is a very tough market. Seasoned professionals are having a hard time getting properties into escrow, pre-qualifying buyers, and once the properties get into escrow getting them to actually close is not happening with regularity. If you are seeking to save yourself a few dollars consider that in a declining market the dollar you believe you are saving in not hiring a listing agent to represent you and properly market your property could be costing you thousands in lost equity for every extra month the property lingers on the market.
If you need assistance in selling your home or condo in Orange County, California I'd be pleased to give you information without obligation.
Marlene Bridges, REALTOR®
800 777-1775
Orange County Real Estate Website
Orange County Seniors Lifestyles Blog
SRES - Seniors Real Estate Specialist®
CRS-Certified Residential Specialist®
President - Laguna Hills/Laguna Woods Chamber of Commerce 2007-2009
Marlene is a highly experienced and respected South Orange County CA REALTOR® specializing in residential Real Estate and the sale of Homes and Condos in South Orange County, California and Saddleback Valley cities of: Laguna Woods, Laguna Hills, Laguna Niguel, Laguna Beach, Rancho Santa Margarita, Lake Forest, Dana Point, San Juan Capistrano, San Clemente, Aliso Viejo, Mission Viejo.
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