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Castle-syndrome

By
Real Estate Agent with Big Block Realty 858.232.8722 CA BRE# 01261476

Castle-syndrome or is it SIN-drome?

 

We've all been there: It's 2015, The house was built in 1975, the second owners still live there and are now wanting to sell. They did a partial remodel in 1993 (the screened in porch, not to the kitchen) and they think it's the best on the block because of the updates and the  unique breeze they get between 4:30pm and 4:45pm every day that none of the neighbors get!

...or something to that affect right? So, how do we get the listing without insulting the homeowner or lying to them? I go to the Market Numbers. I never tell the owner anything. "The Market" tells them. 

I "Let The Market (numbers) Do The Talking". 

I like to find out the following first, here's a partial list:

1. Why are you selling now? (Their Why).

2. Are you on a time-frame or deadline to do so? (new job, new school for kids, etc.-their motivation).

3. How much do you owe on the house? (I like them to focus on their 94% not the 6%).

4. If you were to be given $50,000 and another 5 years to live here, what would you do to the house?" This gets them thinking like a buyer will, what needs work here?

5. What needs to happen before we list your home for sale? (I like this question to follow #4 as other "clues" will get mentioned here: "we should shampoo the carpets", "maybe we should touch up paint" or "well we need to pack", or "we need to move out first" , etc.

Then I work like an appraiser would on the comps:

  • 90 days sold , no further back than 6 months sold, more recent the better. (historical data)
  • no more than 1 mile radius from the house, closer the better. (less variables in "location")
  • no greater variance than + or - 20% of sqft. & floor plan. (I'm conservative here, I like +/- 1 bed or bath and less than +/- 100 sqft. or less if I have enough comps.
  • similar floor-plans, condition/upgrades, lot size and views factor in.
  • Same criteria with Pendings, only to see where the neighborhood is trending. Pendings on average in escrow higher than recent sold = appreciating market and conversely if they are averaging lower price point, the neighborhood is depreciating which helps me see the price if a range comes out of the comps vs. an obvious set price.

I then show the sellers what "the market says their home is worth". I show them the comps I used and then I show them what their current competition is asking (Actives). I fan out 3-6 Sold and 3-6 Active MLS reports and ask them to pick the one from each group that is most like their home in their opinion. Their choice shows me where their heads are at price-wise.

Ultimately, the Market numbers do the talking and sellers will realize the reality of their home or they won't. If they do, I apply for the listing. If they don't, I let them know "I don't think my services are a match for you, but I have a great referral to an agent that can help you!" and I refer them to one of the agents in my office that openly likes challenges (he's newer and hungry). I figure 25% on a possibility is better than 100% of "lack of reality" at this point in my career. I like to put my time, energy & money into realistic sellers. I don't collect over priced listings just to have listings; I sell listings, typically in the first 30 days. 

For a great article on Defending Your Commission, see Tony and Suzanne Marriott's post.

Posted by


Thomas J. Nelson
REALTOR®, CRS, RCS-D, CDPE, e-Pro, Certified Military Home Specialist, Luxury Home Specialist, Author, Keynote Speaker and  Podcast Host 

Serving Coastal San Diego from Carlsbad to Coronado, Downtown, Balboa Park Area,
La Jolla/UCSD & Mission Bay Park Areas
I Offer Rebates to Veterans
& Active Duty

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Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, medical advice or financial advice.  For legal advice see an attorney.   For tax advice, health or financial advice see a tax attorney, certified public accountant, or other qualified professional.

Comments (12)

Raymond E. Camp
Ontario, NY

Good morning Thomas,

This is a great list and I really will be stealing number 4!

Make yourself a great day.

Oct 21, 2015 11:40 PM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets

Raymond E. Camp take all 5 , they are FREE  Thanks for reading & commenting.


 

Oct 21, 2015 11:46 PM
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

that is a great list, very thought out. as usual. i have to bookmark this one. thanks!

Oct 21, 2015 11:43 PM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets

Thanks for reading & commenting Mike Rock anything you'd add? I'm always open to your creativity!

Oct 21, 2015 11:46 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Thomas J. Nelson, Realtor Excellent post and thanks for the tag to our blog post - much appreciated!

Oct 21, 2015 11:45 PM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

They tie in well, as part of the same listing process (one leads to the other) and I think more members need to read your post, it's a great reminder.

 

Oct 21, 2015 11:48 PM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Some great ideas and questions.  WE need to get the sellers to look at their home as if they would buy it and what they would have done

Oct 21, 2015 11:55 PM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets

Yes! It's a house for sale, no longer a home.

Oct 22, 2015 04:13 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Good morning, Thomas -- I especially like number four on your list --- excellent question and as you stated -- exactly the thought process of a potential buyer.

Very good post!

Oct 22, 2015 12:35 AM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets

Thank you Micahel, appreciate you reading it.

Oct 22, 2015 04:13 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

I like your questions posed to a seller.  Especially, #4 which has them thinking like a buyer!

Oct 22, 2015 11:34 AM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Thank you Myrl, I think I got #4 from my college instructor in 1998 when I was taking my license classes.

Oct 22, 2015 09:46 PM
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

Hey Thomas great post! We see it all the time. If you own a shack on Miami Beach they think they have San Simeon. We also have a huge foreign population so compared to what they came from  you can imagine the challenge we face daily.

Oct 31, 2015 12:28 AM
Women of Westchester Working Together
Women of Westchester Working Together - West Harrison, NY
Women helping Women get ahead

This is a great approach.  I especially like the $50,000 question.  - Debbie

Nov 01, 2015 02:25 AM
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

Hi Thomas J. Nelson, Realtor , As they say, the numbers don't lie. We always show them on paper, then they take the news better.

Nov 03, 2015 06:42 AM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets

Yep, I love the indisputable numbers. The market speaks plainly.


It's 99% price and 1% marketing that price.

Nov 03, 2015 07:33 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

This is a great post Thomas, and built to let Seller's know you are on their side, but the numbers are the numbers.  You aren't making things up.

Nov 15, 2015 04:15 AM