Today's sellers can list their property on the internet. They can get on a site like Trulia and get what they believe to be a good asking price. They can show their property, go to an office supply store and get a contract and go to the title company or an attorney and close.
Your value is in your ability to provide accurate CMA data, being able to interpret the data, then educate the seller in market conditions and how REO properties are influencing market conditions. Value is added when you are able to expose the property through the MLS and a wide variety of sites on the internet and when you educate the sellers so that their properties show to their best advantage. You must be able to help them negotiate the contract and the contract contingencies and to provide assistance with any problems that come up during the process.
Besides the legal issues concerning agency and disclosures, there are several topics that must be mentioned at every listing appointment. It is very important for you to prepare your seller. This is not a complete list, but here are some topics that need to be discussed every time you list a property:
•1. A full CMA should always be done. You should explain how you compared the subject property with other sold properties. You should explain the active competition. You should explain to them what price the market says their property should sell for in 30 days and what price the market says is the most their property is likely to sell for. These are usually two different numbers.
•2. In addition to explaining the CMA it is your job to explain the market conditions and price points. In the current market it is imperative that you explain REO properties and how they can affect the property you are listing.
•3. The seller should be told what to expect from you, how you are going to advertise the property, where the property will be on the internet and how you are going to communicate with them. This is the time to find out if they prefer phone calls or e-mail.
•4. The seller should know what to do for showings. They should be told to try to keep their property ready at all times, if possible. Now is the time to tell them that even when their property is not in good showing condition they should never turn down a showing. If they are home and they have advanced notice they should be instructed to open blinds, turn on all the lights, take out the trash, put the animals away, if possible, and leave.
•5. The seller should know what to expect when offers come in. I tell every seller "There is no such thing as a bad offer, however there are low offers, we work with all offers." The time to talk about low offers and the reality of the seller paying the buyer's closing cost is when you are listing the property - not when the buyer has just written a low offer asking the seller to pay their closing cost. When you are listing the property tell sellers that once they get an accepted offer it will probably be 6-8 weeks before they actually close on the property, if everything goes well. The sellers should also be told that most buyers will have a professional inspection done on the property.
Your transaction will be a much smoother transaction when potential situations are identified before they happen. We do this all the time. The seller does not. Never assume they already know how it works. It's your job to make this easy for them.
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