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The Real Estate Market is changing Fast/ Back to the Basics

By
Real Estate Agent with Real Estate Rescue Realty 48355

Working with sellers/listings can be a challenging.  Especially in a down turning market. You are subject to 2 related BUT very different types of Dynamics-

  1. Mental/Emotional state of the (Fears, Ideas, Previous experiences, Anxiety, Needs, Wants, Desires)
  2. Loans or home equity lines of credit against the home. (Is there a loan on the home, is it current, a 2nd or home Equity loan)

1ST Step- Initial call to seller(s), After your introduction, let them know you have a few questions to better understand their situation, and to ensure that you do a great job for them. (This is a very important step in your successful journey)

Get personal information – correct spelling of names, email addresses, cell phone numbers, work schedules, and any other information you may need to contact them.

  1. Ask why they are selling? This will give you some clues to their potential motivation.  Find out where they want to go? What their ideal time frames are? If they have any loans on the house? If so, how much?
  2. Do they have a price in mind? With the easy access to real estate information, the web, and online real estate information, many sellers already have an idea of their “sales price” before you get there. When they give you an answer, ask how the got that figure? And keep in mind the “Market” will dictate the price.
  3. Any loans against the home? Find out if they have any loans against the home, if so, approximate balances. This will tell you where they stand regarding any equity when they sell.
  4. Have they ever sold a home with an agent before? What did they like about it? What did they not like? (This is important information to gather)
  5. Do you have a price in mind? Many sellers have a number they want to get from the sale- they may or may not understand the “cost of sale”. If they happen to share a price with you, ask how they arrived at it.
  6. Have they done any repairs or updates on the home? This is good information to have, as it shows care and sense of maintenance on the home.
  7. Do they know how the listing/ sale process works? There are several steps to listing a home.
  8. Discuss having a Pre-listing home inspection. Explain the advantage to having an inspection prior to putting it up for sale and then waiting for a buyer and their home inspector to go thru the home. Emphasize “Surprises are not good”. Talk about the importance of going thru their home and making any minor repairs/ replace light bulbs, furnace filters, broken hinges, any items that may cause challenges.
  9. Ask what is their biggest concerns putting their home on the market for sale? Listen intently and understand their concerns, as these will show up as you move forward. Talk about time frames for the listing, pending sold.
  10. Talk about price- Price is the single most important item when putting the home up for sale. If you are too high, you will spend your time waiting for a buyer, or trying to catch the market, as it drops. And more competition comes available. THIS IS CRITICAL.
  11. Talk about showings- Showings can be very stressful on sellers, as they must keep the home clean, pets removed- if needed, kid’s rooms clean, and bathrooms clean. Ask how stressful it will be on a scale of 1-10? “1” being they don’t care, and “10” being they want you there. This is a very telling number for you. If you don’t price it correctly, you will lose their trust and faith quickly.
  12. Professional Photography – Talk about the importance of photography by a professional photographer. Ask them if they have looked thru the current listings on the web? It is easy to see the ones that used a cell phone to take photos. Explain the importance of putting their best foot forward.
  13. Talk about Market time- Show them the average days on the market in the area. Talk about their home in comparison to the others, square footage, bedrooms, bathrooms, garage size, and amenities. How many showings without an offer? price reduction time, talk about pricing ranges for buyers searching for homes on the web.
  14. Make a plan to get the home on the market for sale- It is important to make a plan and assign tasks for you and them.
  15. Order signs and photos & Lockbox – Obtain set of keys- Coordinate a good date and time for photos and sign installation- don’t have sign installed too soon. Go over photos with the seller if they prefer.
  16. Create MLS Sheet- Confirm information with the seller, make sure to coordinate with the seller before you make it LIVE. As calls and showings will begin.
  17. Make sure to cover showing protocol – lights on, clean up, vacuum, clothes picked up, toilet lids closed, animals outside.

 

 

  1. Manage Listing Daily – Don’t let days go by without addressing the situation. If you are having showings and no offers, or no showings- The longer it “Sits” on the market, the less faith they have in you! Your stock goes down rapidly. You will need to have accurate stats/comps for your neighborhood and the general area. Keep in mind, if the seller(s) are living in the home, they see your sign every single day- Keep in mind the stress they are feeling about the situation and how it will affect your relationship with them, both short and long term. Many relationships are destroyed during this process, and the agent isn’t even aware of it. Have a schedule to communicate with the sellers, and make sure to get their feedback. Remember PRICE is KEY. And when you make a price adjustment- make sure it will bring in new buyers. Most agents don’t understand the emotional dynamic here- the seller feels like you are taking money out of their wallet or affecting their plan when they sell- when in reality- they don’t have the money yet.  You need to understand pricing models in the appropriate ranges.

 

The next area of challenge may be the condition of the home- depending on the year built, it may need updating of operating systems- roofing, windows, furnace/AC units, exterior paint or siding, water heater, and then there is the visual updating of the interior items, such as counter tops, cabinets, appliances, flooring, paint, kitchens, bathrooms, and master bedrooms are critical rooms in a house. Keep in mind you are the professional, the Seller, may have their own ideas, thoughts, and suggestions to get their home sold.  It is critical you maintain control of the situation, if you do not, and things go sideways, you will be to blame- as you re the professional and should know better. There are also the unchangeable items- the location, design, as well as, the loan, or loans against the house. There could be a 1st mortgage and a 2nd mortgage, as well as a home equity loan against the home. It is critical that you fully understand and realize the combination of items involved in a successful sale of a listing.

 

 

  1. Receiving an offer- Make sure to review the possible offer situations most likely to come in- before they do. Setting expectations is important- no surprises. Talk about “NET” dollars to the seller and make sure they understand the associated costs, as to not get frustrated when the closing statement is prepared.
  2. Going Pending- Talk about the process of accepting an offer in regard to making the listing “Pending” status. Let them know showings will stop, no more offers, the home inspection coming- make sure to mention they need to make the attic and crawlspace accessible to the inspector. Maybe mention it might be a good idea to go thru the house and make any obvious repairs (that weren’t made prior to listing the house). Talk about the importance of the time frames and that deals are NOT CLOSED UNITL they ARE. NO GUARENTEES!
  3. The two critical steps while pending- Go over the two steps with the seller that can have serious ramifications to the sale. 1st is the Home Inspection- it is an opportunity for the buyer to see the home and any repairs or conditions they were not aware of. And it is also an opportunity to negotiate repairs. 2nd is the Appraisal- this is another step that can have an impact on the sale. Explain the appraiser is looking at comps sales in the area, homes like theirs, to justify the sales price. And any conditions that may affect the long-term value of the home. The appraiser may call out “Repairs” that need to be completed prior to closing- and need to be confirmed by the appraiser.
  4. Moving to Closing- after all the negotiations are completed, the lender gives a “Clear to Close” for the loan,

 

The general public is looking for agents/professionals they can trust. Real Estate Rescue Realty

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Greg and thank you for sharing this great information with us here in the Rain.  Make it a great day!

 

Feb 28, 2023 09:15 AM
Greg Ferrera

Hello Will, you are very Welcome, I have had much of this in print for a long time, and I have not been much of a social media guy, a little ol school. thanks for reading.....Respectfully, Greg

Feb 28, 2023 11:39 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Greg, was looking to see where you are located, you may want to add some info.   Our market is changing back to a fast-paced market, and buyers are snagging houses in a weekend again.   Welcome to ActiveRain.

Feb 28, 2023 09:23 AM
Greg Ferrera

Hello Jean, You bring up a great point. I have a weekly radio show here in the Treasure Valley, Id. https://realestaterescueidaho.com/radio-show/  I monitor the markets weekly. We have an astounding number of vacant homes, both resale and new construction. There seems to be what I would call "Fear Buying" going on.  There is a near 50% vacancy rate in both Boise and Meridian, and very close in the neighboring Canyon County.   It will be very interesting to watch as we get into spring. I am happy to chat or share any information you wish....feel free to listen to my show. It is on Saturday at noon @KIDO 580am or you can go to my website and the shows are added weekly., 

Feb 28, 2023 11:45 AM
Dana Hollish Hill
Hollish Hill Group, JPAR Stellar Living - Bethesda, MD
REALTOR * Broker * Coach

Greg, Asking questions is such an important part of the process. Remembering their answers is also important. Many new agents ask the same questions again because they don't have a system of recording the answers. 

Feb 28, 2023 10:55 AM
Greg Ferrera

Dana, you are 1000% correct on that one. I have been in this business for a long time and it is very apparent the training for todays agents is below par at best. Unfortunately, they are not given good information or competent mentoring to be successful.  I had a national sales training company and traveled for several years around the country.  it was very interesting to experience the people and the individual markets.  I am happy to exchange information if you would like....Respectfully, Greg

Feb 28, 2023 11:49 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Sometimes you have to go 3 layers with questions 

Why are you selling ?  We need to sell.

Why do you need to sell ? We need money 

What’s causing your need for money ? We are 4 mortgagepayments behind 

 

 

Mar 02, 2023 06:17 AM
John Pusa
Glendale, CA

Welcome to the ActiveRain community. Congratulations on your first post.

Mar 04, 2023 05:52 PM
George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert

Greg Ferrera welcome to ActiveRain, and congratulations on successfully posting your first blog on this site.

Mar 06, 2023 04:01 PM
AJ Heidmann ~ CRS
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

Greg ~ Welcome to the ActiveRain community and congrats on your first post here.  Be sure to keep them coming...

Mar 24, 2023 12:36 PM