I’m convinced that all real estate agents don’t know how to determine the right price for a property (and it embarrasses me to say that). However, there are agents I know and have known that would take a listing at any price just to have a listing (and it hurts me to say that). It’s my hope that you’ll find a way to put these ideas on your listing presentation checklist so you can refer to them when the time is right.
1. The price the owners paid for the house and the cost of improvements or repairs they’ve made have nothing to do with how much a buyer is willing to pay for the property. The price of the property is set by how much comparable properties are selling for—period. 90% of buyers shop the Internet for homes to buy, and they know when a property is overpriced and when it’s priced right. Overpriced properties are a major turnoff to most buyers; they don’t even consider them if there’s anything else available.
2. The list price has a limited life expectancy. The first 30 days a property is on the market is the prime time to get the highest and best price. “New Listing” labels are what attract most of the buyers who look online every day—sometimes many times every day—to find the home that fits their needs. After the first 30 days, the property is no longer considered a New Listing, and the interest in that property slows to a trickle. Rejuvenating interest in an overpriced property is extremely difficult even if the price is lowered to a more realistic number. The only exception to this rule is when there are considerably more buyers than there are sellers. After 30 days the original prices on most unsold properties are reduced significantly with the hope of rejuvenating more interest, but remember, nothing replaces the interest generated by a New Listing.
3. The first offer just may be the best offer. Many sellers make the mistake of turning down the first offer in hopes of getting a better one; this is a bad idea in many situations. The first offer may not only be the best offer, it may be the only one they get! A seller should be encouraged by the agent at the time of the listing presentation to treat the first offer as if it is the only offer. There’s a saying that fits well here: “A bird in the hand is worth two in the bush.” An offer you have in front of you is much more real than an offer that may never materialize.
4. Discuss the seller’s motivations at the outset. It may be that the seller is motivated to get the top price but Read the rest of this entry »
1. Start By Thinking Big. Or maybe I should have said, “Stop thinking small.” Small thinking is reflected in such statements as, “I’m retired and really don’t need that much money” or “I don’t live in a big city, so making a lot of money here is almost impossible” or “I really don’t want to have the problems that come with selling a lot of houses.”
As my friends in Jersey say, “Fugeddaboutit.”
Those who plan for and think they’ll reach A Big Number and don’t make it will still, on average, do better than if they aimed for a small number and made it. Would you want to list your house with an agent who didn’t need or want the money? My answer is an emphatic NO!
2. Get the Tools. The idea of waiting until you make money to get a computer, iPad, webcam/camcorder, or smartphone—or to set up a website or database—is the same as a retailer waiting until they have customers before they get any stock on the shelves. Many agents never give themselves a chance to reach the next level because they don’t have the right tools. These tools cost a lot less than a struggling business—and some agents struggle their entire careers. The difference between struggling and soaring is usually caused by small things like the TOOLS!
3. Do the Research and Work the Markets with Potential. A neighborhood farm can be a huge source of sales and profits, but it can also be a disaster Read the rest of this entry »
Referrals have been the #1 source of business in real estate sales ever since real estate was invented. When I ask agents about their sources of business, referrals are most often on the top of their list. Of course, the number of referrals a salesperson gets is in direct proportion to the number of friends or people they know and stay in touch with on a frequent ongoing basis. Many agents don’t do well in real estate because they don’t have enough relationships with the right people or they don’t make enough contacts to achieve top-of-mind recognition. This blog “Creating Effective Business-Building Relationships” contains several how-to ideas for developing and maintaining relationships that will help your business GROW.
Build the Contacts. A salesperson can never have too many contacts, but many agents fail because they never had enough. I’m appalled at the number of salespeople I meet who don’t wear a nametag or have a business card (!), both of which are fundamental to meeting new people and expanding a list of contacts. When a person thinks about real estate, they should think about you; this is top-of-mind recognition, and it’s fundamental to building any business…and it comes about as a result of numerous ongoing contacts with that person. You can’t catch a fish with your hands in your pockets, and you can’t build your business just sitting in the office. Want more referrals? Make more contacts.
Engage the Right People. The Declaration of Independence states that all people are created equal; while that’s true, all contacts are certainly NOT Read the rest of this entry »