Inspiring Excellence

Creating a New Paradigm

(4th in a series - listing excellence)

The more I think about yesterday's post, the more I need to pause in this series and share a few ideas.

I just left a website that would allow me as a seller to get "bids" from real estate agents for what commission that they would charge me.  I could have those bids end on a given date.  Agents would not have access to me and could only lower their commission based on other's bids.  I felt like I was on ebay.

To consumers: real estate is not a commodity.  My car, refrigerator, tv, and lots of other stuff we buy is a commodity.

To agents: the consumers think we are all the same (which sounds like a commodity).  If that is the case, we might as well join the bidding wars.

Let's change the paradigm.  Agents let's show up better in creating unique, exceptional experiences for sellers.  This is where we will pick up with this series next time...

Listen to Me

(3rd in a series - Listing Excellence)

Before anything, please listen.  Did you hear what I suggested?  Please listen.

So I mentioned hypothetically two days ago that I have a house for sale.  The normal agent grabs their listing paperwork, prints off a couple of pages of market comparables, gets a multi-lock and a sign, and rushes over to the house.  They tell me how great they are, how many awards they have won, all about their great company, what they are going to do for me, how much I should ask, blah, blah, blah, blah..."please sign here so I can get your house on the market asap."

Did anybody hear what I suggested first?  Please listen.

Why am I selling?  What is my motivation?  What do I need as the customer?  What is the pain or pleasure behind this need to sell?  Most sellers say we want the most money in the least amount of time.  Your job as a great agent is to find out why?  If you listen well and ask the right questions, I will tell you.  What I really want is someone that cares about me and my needs more than they care about their commission!

So, your first job as a great listing agent is LISTEN!  Just in case you started with anything else such as what I mentioned above, Donald has a couple of words he would like to share--YOU'RE FIRED!

Why now?

(2nd in a series - Listing Excellence)

Why is it important that listing excellence is something that we need to discuss now?  Maybe this is best answered with two real life calls from sellers today (even though I stopped selling a year ago):

Phone call #1:  friend of the family, retired homeowner with a condo.  "Hey Bud.  I've been on-line and seen where all the condos have sold in this complex since Jan. 06.  I have the average price per square foot of similar homes and have two interested parties.  What do you think if I offer it to them at 'X'?"

Amazing!  What happened to the good 'ole days when they needed us for information?  He actually had better information from the internet than our multiple listing service because most of the sales in this complex never hit the market.

Phone call #2:  past client with home currently listed with someone else.  "Hey Bud.  It's been on the market 90 days.   Why isn't it under contract?  Why isn't it in the paper?"

We've all been spoiled.  Agents and consumers have been living life on easy street.  Now that we can no longer price a home competitively, stick a sign in the yard, and wait for offers, the customer goes back to what we have taught them -- "spend more money on advertising."

Here's my "why now" thoughts:

• real estate has been too easy for the past few years (at least the 10 I have been in it).
• the market is changing.
• this is the first time most of us (real estate agents and many sellers) have seen a changing market.
• the last time the market was like this, the consumer still needed us for information (see phone call #1 above).
• the last time the market was like this, their were at least 50% fewer agents (probably less than that).
• the last time the market was like this, Blackberry was something that you put in pies (not to mention several other technological advances).

Whether we (agents) like it our not, it's time to discuss our value.  Because I am both a consumer and a lover of this industry, I'm idealistic enough to believe that we still have great value to bring to the consumer.  Those of us that are willing to continue to add value to the consumers will continue to get paid well for the services that we provide.  Those of us that don't, ...(I'll keep these thoughts to myself for the time being).

The time is now...more of the nuts and bolts of listing excellence tomorrow!

I need a real estate agent

I actually don't need a real estate agent, but I thought this an appropriate title to begin a new series.

I plan to spend the next several days discussing the idea of excellence in listing homes.  Thus, the idea for the title.

If you will, join me in this exercise regardless of what side of the equation you find yourself on....homeowner or agent.  Let's pretend that I really do have a home to sell.  If you are an agent, what are you going to provide me that separates you from the 1M+ agents in the US?  (Actually, in middle Tennessee, you only have to separate yourself from 13,000 or so.)

If you are a homeowner, what is it that you expect?  What do you desire that my industry brings to the table to help you?

Tomorrow...my thoughts on "Why Now?" for such a series.

By the way, to have the most fun (and to learn something from both sides) audience participation is requested.  Please post a comment or email me.

Good News....Middle Tennessee

6th and final in a series of posts about the real estate market in middle Tennessee.

This series has been an attempt to remind us all that real estate is a local industry.  Media not only chooses to play toward sensationalism and the negative, they have to cater to wide audiences.  Hence the opportunity to share some truth into the market where I live and work.  Bob Parks Realty has offices in six counties in and around Nashville.  The following information comes from the regional multiple listing service and relates to residential homes in the following counties: Davidson, Sumner, Wilson, Williamson, Rutherford, and Bedford.

In July, 2007, there were 2431 homes closed.  This number is less than our closings for the same time in the past 3 years, but more than any year prior to 2004.  The average sale price was $256,551 which is UP 3% over last year.

More importantly, the middle Tennessee market has been a great consistent market to own real estate.  While some markets were experiences double-digit growth rates the past few years, we were steady.  As those markets continue to correct themselves (which is what they need with as little government intervention as possible), we have less reason for concern about our market.

Your home is a great investment and I personally think about as safe as you can find.  Enjoy these last stats and be thankful if you live, and/or work, and/or own a home in middle Tennessee:

The average home sold in July '07 in the six counties I mentioned was 2198 square feet and sold for $256,551 which is $116.7 per square foot.  That same home would have cost you $189,248 ($86.1 per foot) in July '02.  In these five, you have experienced a 36% increase in price.

Good News....Bedford County

5th in a series of good news reporting on real estate in middle Tennessee.

As Bedford County starts their famous walking horse show this evening, real estate sales continue to remain steady according to the regional multiple listing service.

In July, there were 56 residential transactions averaging $122,307.  The month of July has seen between 55 and 69 transactions the last 5 years.  As you can see, the real estate market has not dried up in middle Tennessee.

Good News....Williamson County

4th in a series of good news reporting on the real estate climate in middle Tennessee.

Bob Parks Realty has two offices located in Williamson County, the highest price real estate in the state of Tennessee.  It is here that you would most likely think that the market correction around the country would have an impact.  Once again, our area is seeing a slight slowdown in the number of sales (437 total sales in July for residential units...the lowest since 2002), but the following suggests that it is still an extremely healthy market.

According to the regional multiple listing service, the average sales price is UP 8% from last year to $451,395.  The average price per square foot (which is a more accurate look at appreciation) is UP 5% over last year to $144.8.

More importantly, these numbers have been up for the past several years.  Since 2002, the average price per square foot is up from $98.7.  For example, if you bought an average 2500 square foot home in 2002, you would have paid $246,750.  Today, it would be worth $362,000....a 47% increase.

Good News....Wilson County

3rd in a series of good news reporting on the real estate climate in middle Tennessee.

Wilson County is anchored by the growing communities of Mt. Juliet and Lebanon.  Over the past 3 years we have sold between 238 and 257 residential homes in the month of July.  This year we closed 234.  The average price per square foot is UP over last year 3% to $107 per square foot and the average sales price is UP 6% to $236,391.

Maybe more important than the good news about this year, the past 5 years have been fantastic.  The average sales price has increased from $151,631 to $236,391 which is a 56% increase!  The average price per square foot has changed from $76.6 to $107.2 -- a 40% increase.  If you own a home in Wilson County, you have lots of reasons to be thankful.

Good News....

Sumner County.  This is the 2nd in a series of good news reporting in the markets where Bob Parks Realty has an office.

In July 2007, there were 284 residential homes closed according the regional Multiple Listing Service.  This number is less than we closed last year, but the 4th highest ever.  The average sale price is $209,546 which is slightly off from last year but up 28% in the past 5 years.  The average price per square foot is $98.5 which is down 1% from 2006 and up 22% over the past 5 years.

Just wanted to share 284 real life stories of seller's that sold at true market prices (what 284 buyers were willing to pay).

Saturday Morning Stroll

The boys and I participated in a 5K (3.1 miles) this morning in Murfreesboro.  This was Blake's second and Logan's first. 

Logan and I ran together at about a 12 minute pace.  I was a proud dad as we crossed the finish line.  Not bad for a guy that just graduated from crocs to running shoes in the past month!