Are Real Estate Agents Dinosaurs?

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This article was forwarded to me by an associate. 

I chuckled when I read it because I’m always asking agents, “Are you in the 21st century or are you a dinosaur?”  Like it or not, if you are not using technology in the following ways:

  • to promote yourself
  • in your listing presentations
  • when out with buyers by accessing the Internet in real time
  • by having (and knowing how to use) a smart phone, and
  • communicating (at least some of the time) via text messaging with your clients

…you are a dinosaur.  I’m not suggesting one of the above I’m strongly suggesting all of the above!

I’m not surprised that the membership to NAR has dropped off since 2006.  In the late 90’s into the early 2000’s everybody and their grandfather decided that getting a real estate license was their ticket to becoming a millionaire.  Quite frankly, even the most incompetent of the incompetent could be successful — and they were, at least from an income perspective. It didn’t take any real skill.  Of course, lawsuits were rampant but that’s a separate post.  However, once the market changed and these overnight wonders realized that it wasn’t going to be a cake walk anymore and they’d really have to work is when we started to see the flood gates of attrition fly open. 

Any organization that has a sales force of over a million people just speaks volumes to the frequency of incompetency.  I encourage thousands to leave.  In fact, if the truth were to be known, many agents have left real estate, they just haven’t left the office!  

As always, I am interested in your comments.  Please read the article and let me know your reaction.

Have a question?  Ask Suzanne! Leave a comment below or email me directly at Suzanne@ATrackCoaching.com or visit my website. Better yet, do all 3!

And please visit A-Track Coaching on Facebook and give us a “Like!”

Excuses Sellers Give For Not Wanting to Stage Their Home

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Seller:   It costs too much money. 

Response:  I have never seen a home where the staging costs would have exceeded the first price reduction.  And that doesn’t even factor in the monthly carrying cost of the home. 

Seller:  We can’t stage the house; we’re still living in it. 

Response:  A common misconception is that staging is only for vacant homes.  Every home/condo can be staged, and you can actually live in it after staging.   

Seller:  We didn’t have to stage any of the other properties we sold over the years. 

Response:  Yes, once upon a time you could generate three offers by 5 p.m. on the same day your Realtor put the For Sale sign in your yard.  Not now.  Buyers are picky and they have a lot of homes to choose from. 

Seller:  Everyone loves our house and buyers will love it too.  

Response:  What you, your friends and relatives love about your house may not be what is important to the potential buyer.  Sellers are often baffled by the feedback they get after showings — amazed that buyers have found things they don’t like about the property. 

Seller:  We can clean the carpets and de-clutter without someone telling us how. 

Response:  Yes, you can (and should) do this, but it is a tiny piece of staging.  Do you know what differentiates ”clutter” from “asset”?  Do you know all the factors that are considered when staging a property?  Professional Stagers consider how easy is it to maneuver though the property, the importance of highlighting architectural features, updating, and appealing to your target market and so much more.

Seller:  We have no desire to remove/change our (wallpaper/mirrored tile/gold faucets/paneling/dated light fixtures . . .) 

Response:  Unfortunately, buyers feel the same way that you do.  They want to move into their new home without having to redo anything.  You absolutely do not have to change anything.  However; be prepared to receive discounted offers. 

Seller:  The view alone will sell this place. 

Response:  Granted the view is enticing.  However,buyers aren’t just buying a view.  They expect to buy the whole package, a home that is up-to-date and in move-in condition.  If they are only getting a view their offers will reflect their message.

Seller:  We would rather let the buyers makes their own paint/flooring choices. 

Response:  And that equals a price reduction.  If buyers did consider an offer on your home, they would typically take into consideration the cost of these items and reflect the cost in their discounted offer price. 

Seller:  Our home is professionally decorated. 

Response:  A professionally decorated home is tailored to the owner’s particular needs, likes, and wants.  Staging is about de-personalizing a property and creating a neutral environment so that the buyer is not distracted.  It’s like looking at a blank canvass and knowing that you can create to your personal tastes.

Using these excuses as a seller sets you up for –

  • price reductions
  • extended time on the market
  • buyers eliminating your home before they see it in person
  • buyers not coming back for a second look if they do see it in person
  • buyers using your home to justify buying your another sellers’ home

There are dozens of excuses you can come up with for not staging, but only one good reason to stage – to get your home sold faster for the highest possible price.  Staging is preparing your home for sale and creating a home that buyers want to buy.  If you want to be in the best competitive position in this market today, ask your real estate professional about professional staging. TODAY!

Have a question?  Ask Suzanne! Leave a comment below or email me directly at Suzanne@ATrackCoaching.com or visit my website. Better yet, do all 3!

And please visit A-Track Coaching on Facebook and give us a “Like!”

“Another Agent Said They’d List Our House for More”

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Here’s another entry for the Sellers out there.

If you ever hear yourself saying, “Another agent said they’d list our home at a higher price,” I want you to stop for a moment.  Let’s make sure you understand what you are saying.  Your selection of a listing agent is going to be based on the listing price they are willing to accept versus the best agent to get your home sold. 

Hmmm.  Well, let me share something with you.  I recently asked a very large group of real estate agents why they would take an overpriced listing.  Their answers may surprise you…unfortunately, they didn’t surprise me.

  • “At least it’s a listing.”
  • “I can use it to promote me.
  • “I’ll get exposure in the neighborhood.”
  • “I’ll wait a few weeks then tell them the market has changed and they need to do a price reduction.”
  • “They’ll have no choice and I’ll get to sell the house anyway.”

Notice that the above comments are about the agent and nothing about what is in your best interest.

So, Sellers, if your ego feeds into the incompetency of the agent you hire, then you both deserve each other.  It takes zero marketing skills or negotiating skills to take an overpriced listing. In fact, I told these agents that they shouldn’t waste your time or theirs.  They should just hand you a blank Listing Agreement and have you fill in the spaces. 

Don’t get upset with the agent.  You were willing to participate in the problem.  You decided to put your home on the market at a price that wouldn’t get it sold.  In fact, competent agents love when listings come into the market overpriced. Houses that are overpriced are used to sell listings that are priced at market value.

Let me explain: Let’s say your house is overpriced.  Houses similar to yours are priced appropriately at market value.  Agents will use your house to help their buyers recognize what a value they are getting in your competition. Ya gotta love it.

If an agent is willing to take your listing at a price that is higher than their suggested listing range, then alarm bells should go off.

A competent real estate agent has a vested interest in suggesting a listing price that positions your home competitively in the marketplace.  Why?  Agents get paid a percentage of your final selling price.  Don’t you think, if a competent and market knowledgeable agent really believed that your house would sell for more, they would suggest the higher range? 

Most real estate agents are ethical and take great pride in the services they provide their clients.  Unfortunately, as in most industries, you will occasionally find people who are totally self-focused at the expense of others. 

The real estate agent who refuses to list your home beyond their suggested listing range is the agent you want to hire. 

Have a question?  Ask Suzanne! Leave a comment below or email me directly at Suzanne@ATrackCoaching.com or visit my website. Better yet, do all 3!

And please visit A-Track Coaching on Facebook and give us a “Like!”

Why you should not become a For Sale By Owner

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The greatest disservice that you, as a seller, can do to yourself in selling your home is to try to sell it as a For Sale By Owner (FSBO).  

Here are just a few things to think about:

  • Everyone, including agents, knows that you interviewed a few agents to get their opinion as to what listing price you should consider when listing your home.
  • Everyone knows that you didn’t deduct the real estate fee (that amount you are trying to save by doing it yourself), which was included in all the agents’ pricing proposals, prior to you putting your property on the market.
  • In the event that an offer is received, FSBO sellers typically think the offer is low.  It probably is not. FSBO sellers are unaware that the buyers have deducted the real estate fee and actually the price is appropriate.
  • The truth is, FSBOs eventually list with a real estate agent.
  • As a FSBO, you are attempting to compete with hundreds of licensed real estate agents in and around your town.
  • The vast, vast majority of qualified buyers interested in buying a home are working with a real estate agent.
  • You may think that because you have access to the internet, and therefore pertinent real estate data, that you know enough to go it alone.
  • The truth is, real estate professionals know the real estate data the general public has access to is riddled with outdated information.
  • There is no way that you can be sure that you’ve contracted with the best, most qualified buyer.
  • Real estate agents have databases full of buyers that you don’t have access to.
  • Buyers who seek out FSBOs are typically looking for a cheap deal.
  • Buyers typically believe that FSBOs are desperate to sell.

You are extremely naïve if you think selling your home is done simply by creating an information sheet, putting a sign in front of your house with a bunch of balloons, conducting an open house and putting your listing on Craig’s list.

There is no way that you can compete with the real estate industry’s websites, SEO budgets, CRM budgets, electronic marketing capability, international reach for buyers, inside leads from their own affiliate companies, and access to the negotiating resources of an experienced real estate professional. 

So, do yourself a favor and turn your largest single investment over to a real estate professional and let them guide you through the process of getting your highest and best price.

Have a question?  Ask Suzanne! Leave a comment below or email me directly at Suzanne@ATrackCoaching.com or visit my website. Better yet, do all 3!

And please visit A-Track Coaching on Facebook and give us a “Like!”

Do you know the “5” Pushbacks from Sellers and how to overcome them?

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Here is my topic list for a listing presentation in the order in which I present them to the sellers: 

  1. Price
  2. Real Estate Fee
  3. Terms
  4. Appointments with other agents
  5. Family members in real estate

If you put together a powerful listing presentation addressing these 5 topics you then have a better chance of securing a listing agreement.

But, of course, every seller is going to have objections to at least one (and more like all) of these points. We could discuss each one for an hour and still want more time, so for this post, I’ll briefly address just the first one.

You lay out the comparables you’ve selected, point out the similar features, explain your thinking and you hear this…

“Suzanne, are you kidding?  These are nice houses, but really they don’t compare with ours. Ours is much better.”

And you are thinking…”Oh ya, how many times have I heard that.”

Well, in my opinion there is only one logical way to respond to this reaction.

Expect that the seller will always object to your Pricing Proposal and Range of Value.  So, as I’ve mentioned in previous posts, as part of your preparation for the listing presentation, always create an “Over-Market Value CMA”.

Here are a few of my suggestions for handling the Pricing Objection

 

  1. Open your laptop to the comparables you’ve used in your Over-Market CMA
  2. Ask the sellers to “pretend they are buyers who qualify to buy a home at the higher price range.”
  3. Take the seller on tour of those comparables that will now become their competition. (Note: you should always refer to Active listings as the selller’s “competition”)
  4. Point out during the tour the justification for the higher price for the comparables
  5. Ask the sellers, “If you had the choice between your house and one of these homes and you wanted to maximize your investment, which home would you buy?”

Taking an overpriced listing should not be an option!

Have a question?  Ask Suzanne! Leave a comment below or email me directly at Suzanne@ATrackCoaching.com or visit my website. Better yet, do all 3!

And please visit A-Track Coaching on Facebook and give us a “Like!”

Recruiting and Retention – The Foundations of a Real Estate Company

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In reflecting on real estate topics for which I have an opinion (and there are many!), recruiting and retention seem to be popping up more and more during my discussions with owners.

Today I want to talk about Recruiting.

It’s obviously easier for someone outside of the “fish bowl” to see more clearly some of the stumbling blocks and frustrations you may encounter for coming up with an effective, refreshing and results oriented recruiting and retention campaign.

So, I thought I’d share a couple of insights from outside the “fish bowl”.

Here are a couple of questions to consider as you objectively look at how your managers are recruiting:

  • Are they calling agents to meet for coffee?
  • Are they telling agents they’d like to get to know them?
  • Are they calling agents because they want to tell them about the latest and greatest tool or system you have to offer them?

If so, then sadly your recruiting may not be as successful as you desire because you and your competition have the same script.

Here’s what agents who are being recruited by their competition tell me:

  • Most of the time the recruiting calls are annoying because they all sound the same. 
  • Sometimes though, it’s an opportunity to find out what the competition is up to. 
  • If they get an offer from a competitor, they see it more as an opportunity to re-negotiate their present contracts.
  • It’s ego building when a manager almost begs to meet with them.

Well, sounds rather degrading and disrespectful.

Here are some things you might consider:

  • Identify the qualities of a real estate recruiter (what makes a good recruiter)
  • Determine if the manager is recruiter material (not all of them are)
  • Develop a program that empowers your managers to be successful recruiters
  • Work on getting your managers to think like the CEOs of a profit center
  • Get rid of the old approaches
  • Create dialogue that has more of a corporate business building spin

You want to recruit agents who know exactly where they want to take their business.

You want to recruit agents who understand that they are their own profit center.

You want to recruit agents without giving away company dollar.  That’s not recruiting, that’s “buying” and a very dangerous approach.  Most agents who are bought have no compunction against selling out to the highest bidder once the contract has ended.

You want to recruit agents who appreciate the opportunity to join a forward thinking company that welcomes them as a long-term business partner.

 

Have a question?  Ask Suzanne! Leave a comment below or email me directly at Suzanne@ATrackCoaching.com or visit my website. Better yet, do all 3!

And please visit A-Track Coaching on Facebook and give us a “Like!”

When Callers Expect You To “Drop and Run”

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I’ve gotten a few emails from people asking for a little more detail on how NOT to let buyers run their business.  So, here you go…

Opportunities for agents to teach buyers the difference between them and their competition are presented all of the time.  The problem is that most agents don’t recognize the opportunities nor do they know how to take advantage of them.

So, here’s one of the ideas that may help you take control of your business as a true real estate entrepreneur.

First, you must always have a mindset that when you are on duty time (up time, floor time, whatever you call it) a buyer at any given moment will want you to show them a house.  They’ll call and say that they are sitting in front of a listing and want to see it now or they are on the internet and want to meet you there.  Well, there are two approaches.  You can react like most agents and DROP whatever you’re doing AND RUN to meet the caller OR you can choose to take control of the situation. 

So are a few suggestions on how to stay in control of your potential buyer clients:

  • Get their contact information… name, e-mail address and cell phone.
  • Ask if they can receive e-mails from their cell phone.  Why?  To learn if there is a possibility of e-mailing them additional listings.
  • Let them know that you would be happy to show them the property, however arrangements need to be made with the seller first.
  • In the meantime, find out if the property fits their needs, wants and price range. 
  • If they are in front of a property tell them the price and ask if it’s comfortable for them.  If not, ask what price range they have they been approved for and that you have properties similar in their price range that you can e-mail to them now (cell phone permitting). 
  • If the answer is yes, then suggest that you check to make sure the floor plan meets their needs so that they are not looking at houses that don’t fit.
  • If they are on the internet let them know that you have other properties available that are similar and you would be happy to e-mail them the listings while they are on the phone so that they can maximize their time with you and see the options available to them.
  • Let the buyer know that you have an organized plan that has helped get your clients into their home of choice faster.

How do you do that?

By putting together a very detailed plan that documents all of their likes and dislikes, you maximize their time with you.  It is by tracking the changes they have made to the original description of the home that allows you to get them to their home of choice faster.

You are not going to close every buyer…that’s just the way it is.  Real Estate is a numbers game.  So, if you know exactly how many buyer sides you need to close to achieve your financial goal for the year, then you will come to realize that you don’t have to work with every buyer.  You just need to be willing to look objectively at the buyer and determine who is serious, respects what you do, is willing to sign a buyer agreement, and is motivated to buy.

The world of buyers can be very dramatic.  Buying a home is an extremely emotional process.  However; the agent that has a plan, educates the buyer about the process and communicates to them that by working with you they will have a stress-free buying experience is the agent who will achieve the buyer sides needed to have a successful and profitable year.

Have a question?  Ask Suzanne! Leave a comment below or email me directly at Suzanne@ATrackCoaching.com or visit my website. Better yet, do all 3!

And please visit A-Track Coaching on Facebook and give us a “Like!”

How Do You Structure Your Listing Presentation?

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If your listing presentation is a “dog and pony show” you are so behind the times.  What do I mean by “dog and pony show?” If your presentation starts out with bragging about you and your company; that’s a dog and pony show presentation. 

Keep the presentation focused on why they called.  Did they ask for someone to come over and talk about themselves or was it more like “I want someone to tell me what my house is worth.” 

So, what are you to do?  Simple … answer the question.  Get right to the point.  Start your presentation with one piece of paper and that’s the Pricing Proposal Letter, which shows the suggested Range of Value.

Here are a few “Ask Suzanne” Tips:

1.  Use a laptop during your presentation – it’s expected by today’s consumers 

2. Get a wireless internet card, also called an air card, for your laptop.  This will let you…

3.  …go live to the Internet and take the sellers on a virtual tour of your comps.  Show the comps on a map. This can be done with any number of free services online, but my favorite is www.BatchGeo.com. Just set your Groups to “Active,” and “Sold,” listings and you’re set. 

4. In addition to your regular CMA, prepare a CMA in the next Price Point above the suggested Range of Value in your pricing proposal letter.  If the sellers push back on the suggested range, show them what buyers in the higher Price Point expect to get for their money.  A picture is worth a thousand words!

5. Pull the local housing data for both price points (Suggested Charts:  Months of Supply, Days on Market, Price Per Sq. Ft. and Median Sales Price).  But remember, your goal is to educate, not browbeat or make them feel badly about their current property.

With minimal explanation you should be able to educate the sellers on a realistic and acceptable list price. If you cannot, if they are unreceptive to reality and insist on overpricing the property, politely thank them for their time and walk away. Do not take an overpriced listing!  And don’t be surprised if, as you gather your things and prepare to leave, they stop you and “reconsider.”

Once you secure the listing suggest that the sellers get an independent appraisal of the property.  Why?

  • If you did your job right, it will justify the listing price.
  • It could be extremely beneficial during the negotiating process.
  • It will help to counter the bank appraisal if it comes in low for some reason.

If you speak to the facts you will always be in control.

Have a question?  Ask Suzanne! Leave a comment below or email me directly at Suzanne@ATrackCoaching.com or visit my website. Better yet, do all 3!

Who is running your business?

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The phone rings in a real estate office and before you know it the duty agent is running out the door to show a property.  Now, mind you the agent has never met the person on the other end of the call.  All the agent knows is that the person is breathing and wants to look at a specific house NOW!  Of course, when the agent arrives they learn that the house is priced beyond the potential price range of the so-called buyer.  Moreover, the buyer has not been pre-approved and they don’t want to schedule an appointment to look at other houses.  However, they do want the agent to send them listing updates.  What price range?  Oh, between $400,000.00 and $700,000.00 even though they have not been pre-approved.  The agent takes their e-mail address and hopes that someday they will buy a house through them.

The agent’s cell phone rings and the caller ID shows it is the seller whose house is overpriced, not willing to adjust to market value and for the, oh let’s say 100th time is calling to find out why there have been no showings.  The agent is thinking.  “Oh no I’m not in the mood to listen to her complaining.  If I don’t answer, she’ll just keep calling.”

If any of this sounds familiar then accept the fact that your clients and non-clients are running your business. 

So, alas what do you do? 

Well, first of all you have to change your mindset from re-acting to pro-acting.   It’s really important for you to set boundaries and guidelines for how you do business.  You teach people how to treat you. 

Instead of jumping to the whiims of the buyer caller, do some clarifying as to their needs, wants and price range.  I encourage you to think of your safety first.  Why would you put yourself in a potentially compromising situation by meeting a perfect stranger at what is, in many cases, an empty house?  If the buyer is unwilling to meet you at your office prior to showing a property then don’t concede on your boundaries.  Remember, if you react because you hope to get a sale, then you are never going to be in charge of your business.  You deserve to work with people who respect you and don’t take you for granted.

And as far as the seller whose phone number shows up on your cell phone screen, well, my friend that’s what happens when you chose to take an overpriced listing.  Again, it all goes back to boundaries.  We teach people how to treat us.  Don’t ever be concerned about the money.  When you run a tight ship, exude confidence, have a plan, and call the shots, you will be amazed at how your business will increase.  

Have a question?  Ask Suzanne! Leave a comment below or email me directly at Suzanne@ATrackCoaching.com or visit my website.

 

Hello World!

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Have you ever experienced one of those moments when you feel, “Oh, my gosh this could be huge!”?  Well, today is one of those moments. 

In a recent “think tank” discussion with my team I asked them,  “Why should I spend my valuable time blogging?  I know that blogging is one of the decade’s new buzzwords, but you all know how I feel about just chatting for the the sake of chatting.  So, why should I blog and furthermore what the heck am I going to say?”  Well, after they regained their composure they in unison declared, “Are you kidding!?  When were you ever at a loss for words, or giving both solicited and unsolicited opinions?  Blogging is all about sharing ideas and opionins.” 

So, welcome to my blog! 

My motivation for creating a blog is to share my thoughts, ideas and opinions about the world of real estate.  As a successful real estate agent, coach and educator I have very clear ideas about how the real estate industry should function.  I invite you to agree, disagree, ask questions and share your own comments.  Those of you who know me know that I don’t get offended and those of you who don’t know me will soon learn that I appreciate a healthy dialogue.