Inspiring Excellence

The Gathering Begins...

(9th in a series on listing excellence)

We've agreed (the seller and the agent) that we would like to work together to market the home.  Now, we have to set the price.

As the agent, I want to get as much general information as I can about pricing and then begin to "drill down" with more specific data.  Here's all the general info that I like to collect:

• tax information for the specific home
• multiple listing service info for the specific home (any past sales and/or listing data)
• an idea from the seller of what they are thinking (most all sellers have an idea of what their home is worth based on similar sales in the neighborhood, new tax appraisal, etc)
• improvements the seller has made since purchase

Once again, this is all general information that I want to collect.  None of this will give us the actual price, but it will help us begin to get on the same page.  For the specific information, I'll do a separate post for each item...

Pricing Excellence

(8th in a series on listing excellence)

7 other posts on being a great listing agent and we haven't even talked about price other than to suggest that it has to wait to the very end.  We (sellers and agents) have to get to the point that we have agreed that we are "right" for each other before we settle on price.

Either party may choose to walk away if we can't work this last thing out, but I think we will work fine 99% of the time.  What do you think about these three thoughts:

• Sellers are bright enough to price their home correctly given the right data.  It is the agent's job to provide this data and help explain it (I'll start building a plan for providing excellent data next).
• If the seller chooses not to price the home correctly, than the agent may have failed early in the process (see the 3rd post in this series, Listen to Me) by not listening well.
• Or, the seller is not as motivated as we think and the agent may need to share the name of another agent that doesn't mind advertising a property that isn't going to sell (or may sell later for below market).

Next, building a plan to help the seller set the price.

Popping the Big One

(7th in a series - listing excellence)

Usually we are discussing a different type of marriage when we think of "popping the big one."  However, there does come a point in the listing process where the agent does need to ask the "big one."  My suggestion is for the question to go something like this:

Based on the information that you have received, do you feel that I am the right agent to help you market your property?

Remember all that has taken place in the excellent listing process to this point:

• the agent has asked great questions and knows the needs and motivations on the seller.
• the agent has toured the home and has decided that the home and the seller are a potential good marriage with their listing abilities.
• the seller knows the agent's marketing plan and something of their abilities and personality.

Now the seller needs to decide whether we all should proceed toward working together before we get to pricing the home correctly.

In this series of listing excellence both parties (the seller and the agent) most often mess up here.  The hiring of the most professional agent has absolutely nothing to do with the price.  The market sets the price.  If the decision is based on price, the likelihood of a win-win situation in this marriage is greatly reduced.

To be more direct - Agents, please stop telling sellers what they want to hear about the price of their home to get listings.  Sellers, please stop choosing agents based on how much they tell you they can get for your home.  The best marriages in real estate are the ones built on trust, care, and concern for both sides of this relationship.  If it is there, work with each other.  If not, one party or the other needs to decide that we might not be a good match.

Pricing is next and we're going to have fun with this!!

The Most Important Part

(6th in a series - listing excellence)

Agents, what if I could tell you one thing that would separate you from the majority of other real estate agents and other options that sellers have?  Wouldn't that be nice and easy?  You would think so, but most still fail to do it.

Use a prelisting packet that clearly shows your value to the consumer.  Remember yesterday's comment about me getting ready to pay several thousand dollars for someone to list my home.  Please show up with something more than a few pages of comparable properties!!

We're well on our way to creating the perfect listing partnership:

• You listened to what my needs/motivation are for selling.
• You've shown up to preview my house.
• You've brought something to show me about you, your company, the way you market property, and protect me through the transaction.

Tomorrow...the big question before we get to pricing!

Pre-listing appointment

(5th in a series - listing excellence)

Notice, it didn't say listing appointment.  I'm getting ready to hire someone for several thousand dollars and I want to make sure that we are a right fit.  If you have made it to this point, I already know that you are a good listener (see the 3rd post in this series).  Now, I need to find out if you are going to show up and pay attention to my unique home and my unique needs.

Wrong way: "Hi, Mr. Seller.  Let me see your home...great.  Now, let's sit at the table.  Here is the market data on similar homes.  Here is the price I think we can get.  Sign here and we can get this on the market first thing in the morning."

Okay, I might have over-generalized a bit, but this is not far off from many in the industry.

Why not slow the process down some.  Why not add a step.  How about this crazy idea:

HIRE AN AGENT BEFORE YOU EVER SET THE PRICE

Sounds a little odd at first, but stay with me.  It is the sellers job to correctly price the home, not the agent.  It is the agent's job to give the seller the best information available about the market (pricing will be later this week) and let the seller decide.

If this is the case, on this pre-listing visit, my suggestion is the agent should do the following:

• thorough preview of the home
• discuss marketing with/without repairs and/or updates (i.e. would you like to market this home with this carpet or with new carpet?)
• leave information about you, your company, your marketing (everything except pricing)
• leave homework for the seller (utility info, mortgage contact, property disclosure, etc.)
• set listing appointment

More on a great pre-listing appointment tomorrow....

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!

Excellence in Pricing

In the next couple of weeks I will be meeting with groups of agents to discuss pricing a home correctly.  Pricing is a critical piece in helping a seller reach their goals related to selling their home.  Many people would argue that it is the critical piece.

It is important to remember that the seller is to one that makes the decision on pricing their home.  The agent has two specific roles when it comes to price. 

First, to help the seller navigate the sea of information that is available to both the seller and the agent.  This might include everything from what the neighbor just sold (or maybe just listed) their home for all the way to "zestimates" from Zillow.

For example, I just went to Zillow and put in my address.  Within a couple of seconds, I get an aerial photo of my cul-de-sac with an estimate of the value of my home.  (The value happens to be within 5% of what I "think" the market might pay for my home.)  With one more click it gives me a value range of over $90,000 and tells me that it has decreased in value nearly $15,000 in the past 30 days.  Then I can click on my neighbor's homes and get the same information.  One more click gives me the price I paid for the house in 2001 and shows a chart of the estimated value change for my house, my zip, my city, my county, and my state for the past month, year, 3 years, 5 years, and 10 years.

If I'm a seller and you come to list my house, I've now got as much (if not more) information than you do.  You can see that your job now becomes to help me sift through all the data.

The second role that the agent has in pricing may be the tougher one....deciding whether they want to list the home at the price the seller desires.  Even in the best of markets somewhere near 1 in 3 homes don't sell.  Excellent agents can't afford those stats.

During these upcoming meetings we will discuss in depth how a great real estate agent goes about helping the seller figure a pricing strategy that helps them meet their goals.  I believe a seller that is serious about selling their home is willing to price their home correctly based on what the market is saying.

So my question is this.  What information do you use to help the seller price understand the current market?