All Listings Are Not Created Equal
Ask any real estate agent and they will tell you that the key to success is listings. The more listings you have, the more successful you will be. What they won't tell you is that all listings are not created equal.
It Takes Teamwork
All listings are not created equal for a variety of reasons. Of course you know that some houses are more desirable to list. Properties in "hot" neighborhoods, in great school districts or with a high walk score can be some of the easiest to get sold if the listing agent and the seller work as a team. Unfortunately for real estate agents, most sellers don't understand that to get a property sold at the highest market price in the least amount of time takes give and take on both sides.
The Listing Appointment
The listing appointment is your opportunity to:
- Help the seller understand the process
- How to prepare the house to put on the market
- Show what similar properties in the neighborhood have sold for
- What they can expect from you
- What you expect from them
The Job Interview
The listing appointment is a job interview. You are interviewing for the job of selling the owners house. This is your opportunity to ask questions or make comments. You want to get a feel for how you would work with this client. This is the best time for you to point out issues with the property. Issues that potential buyers may not like or issues that need to be addressed prior to putting the house on the market. Unfortunately, many agents want a listing, any listing so badly they will not deliver any unpleasant news or information that could rattle the owner. Should they get the listing, this omission can create difficult conversations in the future.
The Overpriced Listing
You will find home owners who don't care what the comps say, their house is better. They don't care about market conditions, their house will sell. No matter what you say, they know they have the best house in the neighborhood. You explain to the seller that buyers are very savvy and will be looking at these very same comps and will know the property is overpriced. You explain that even if a buyer were to agree to purchase the overpriced property, the property would still need to appraise. An appraiser would review the comps and the property more than likely would not appraise. In spite of recommendations the seller holds fast to their price. As a real estate agent you get to decide if you want to work with this type of seller.
Reduce Your Commission
If one of the first things the seller wants to discuss is your commission you know what is important to them. It's all about the money. They don't care about what you do or how you do it, they want you to do it for what they think it is worth. When a seller doesn't understand the value you add they will focus heavily on the commission. They try to negotiate your commission because you didn't show them the value you add or they don't see the value any agent would add.
What Do You Do?
How you handle the commission conversation is completely up to you. You can charge whatever you feel you are worth. Every real estate agent runs their business differently. There are agents who will work for less than others, and that's fine. Before going on the appointment it's important for you to know what you will charge for what you are asked to do. When working at a reduced commission and asked to meet every buyer agent at the property for a showing, your hourly wage is drastically reduced. Before accepting a listing at a reduced commission, think about the work involved to get the property sold.
People show you who they are almost immediately. Real estate agents often choose to overlook what they show us because we want the listing and then wonder why they treat us poorly two months down the line when their house is still on the market. There are sellers who don't respect us or what we do. They feel that what we do is easy. It is our job to educate them. Don't gloss over what you do and how you do it. Put in writing what you will do to get their house sold. There are a lot of unreasonable sellers out there and as a real estate professional you get to decide who you will work with. You don't have to work with everyone.
What Are You Worth?
In the current real estate market it is imperative that we know our value. What skill set do we bring to the table to help the seller have a smooth real estate experience? How much work will we do to prepare the property for sale, to market the property and to negotiate the best terms and conditions for the seller? When you are clear as to what you must do to get the property sold and to closing, than you will be clear on what you are worth and regardless of the market conditions, you can walk away from those "unreasonable sellers" and have complete peace of mind.
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Inman News named Candy Miles-Crocker as one of the Top 25 Real Estate coaches in 2016. Candy, “The Real-Life Realtor”, coaches, mentors and trains new and experienced real estate agents to transform their business by mastering her proven systems for success. She is a firm believer in managing expectations. Her goal is to elevate the perception of real estate agents among the general public through education so every client has an amazing real estate experience. Candy’s unique training methods have shown agents what it takes to be successful!
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