LeRoy Houser

How to Sell Listing Impossible Part 1

In this market it would be out of the ordinary to have all good/saleable listings given the fact that prices are falling at a rapid rate in many price ranges and in most geographical areas; and even if prices are not falling, it can take a career to sell a good listing because we have many more listings for sale than we have buyers to buy them.

Re listing a property at the same price, terms and condition usually ends up in more frustration for both the seller/owner and the REALTOR®.  Cutting the price $5-10,000 on a $200,000 property usually has no effect on the final outcome in that the savings on a $5,000 reduction in the loan amount is less than $30.00 per month at 5% interest.  Once a property has been turned down by potential buyers, it is going to take much more than renewing it in MLS and a minor price reduction to renew any interest.  If that is all it would take to make it a saleable property, someone would have already made an offer. Rule No. 1 in selling a property in a Buyers Market is that IT SHALL NOT BE OVERPRICED!  

Here is a list of positive steps that can be taken to change LISTING IMPOSSIBLE TO

LISTING SOLD!

1. Reduce the price to the next price range down or significantly improve the value.  By making a significant reduction in price, it is possible that a new buyer group is identified for the property.  Reducing the price by small increments (Nibbling) usually results in very little.  It is much more effective to have the lowest possible price on day 1 of the listing and the value at the maximum level.

2. Remove the clutter inside and out. Clutter includes too much furniture in the house, stuff on the floor of all closets, seasonal clothes, garage clutter, appliances on the kitchen counters.  On the outside, clutter consists of too many vehicles in the driveway, scattered yard tools, unused hoses, leaves, tree limbs and dead or nearly dead trees and shrubs.  Most buyers are looking for an easy move and the very nature of clutter suggests “hard work.”  Who needs more work?

Having the property staged by a professional stager even at your own expense is the best, easiest and most effective way to get this done. 

3. Neutralize the property. Buyers are not interested in the current family lifestyle but are looking for a way to exhibit their lifestyle. Yes, the Blue Marlin  mounted on the dining room wall and the bear skin rug must go along with the diplomas, go kart trophies, family photos, collection of Jim Beam bottles and family photo albums.  All must go!

4. New appliances – new appliances add tremendously to the value of the property. Money spent on new appliances can be the deciding factor on which house to buy, and certainly adds more value than reducing the price $5,000.  Even if the property does not sell the owners enhance their lifestyle with the new equipment.

5. Offer Something Spectacular- A new car may just do the trick, or maybe a Harley, or a trip to Spain, or a 60” flat screen, or no payments for 12 months.  This was done in many markets in the 80’s and 90’s with great success.  With the amount of inventory that exists in most markets, it is important to accentuate the value of a property to separate it from the herd, and that “something” is called MARKETING.  Marketing is much more than posting a listing on a website, putting a sign in the yard, making a video and having a flyer on the kitchen counter.  This is the time to “Kick It Up A Notch!”

You can probably find a car/motorcycle/boat dealer to work with you that will allow you to offer the vehicle without having to buy it unless the house sells.  What do you have to lose?

6. Include Home Warranty and Closing Costs- These are two high value items that don’t cost the Seller a dime unless the house sells and most sellers will agree to pay them if they are requested in the sales contract.  Make the home easier to buy by offering these items up front without having to negotiate. Don’t wait until the property has been on the market for umpteen months to start increasing the value, do it the 1^st Day and sell it the 1^st Week!

7. THE NO. 1 ADDED VALUE- PRE LISTING HOME INSPECTION & REPAIRS COMPLETED!  Fears that prospective buyers have are the hidden defects and the “hidden costs” to fix them.  By inspecting in advance, the pressure on the buyer, seller and REALTOR is reduced significantly and it places the property on a much higher level than competing properties with obvious defects.  This may accelerate the sale; but even if the house does not sell, it is a benefit to the Seller to know the problem areas.  If I had to choose only one item on this list to do, it would definitely be a Pre Inspection.

It is obvious that this real estate market that most of us are experiencing is not going away anytime soon, but it is not an impossible market. It is important not to fill the listing portfolio with Listings Impossible, and far too many REALTORS® have done just that. This is a market where it is important to work on the possibilities of listing properties that will sell and avoiding those that will not. I know how hard it is to turn down business, but I also know how hard it is to do the work and not get paid for doing it. If you list it, SELL IT! You can do that by getting the PRICE RIGHT, and ADD TO THE VALUE or WALK-A-WAY! Next week’s blog – MARKETING LISTING IMPOSSIBLE! LeRoy

LeRoy will be teaching CRS 112 “Guiding the Buyer in the Distressed Property Market” in Charlottesville, VA on June 15th. This is a GREAT opportunity for Virginia agents to learn about being a great distressed property agent. If you are interested in more information email shellyj@comcast.net.

Why We Listed With the Other Agent… and Taco Soup!

If you’ve been selling real estate for any length of time, you’ve most likely lost a listing at some point to another agent who had fewer skills and less experience than you. It’s happened to me more than once and be assured, it’s happened to most of us! While such situations are not 100% avoidable, they can be minimized through efforts by YOU. It’s a fact that buyers and sellers have almost as much information as REALTORS^® these days, but it’s what they don’t know that makes the difference.

Many salespeople feel that what they’ve done in the past has worked, so they stick with the status quo. When you’re not motivated to change, you continue doing business the same way until the pain becomes so great you’re forced into something new. Success can bring a sense of being bulletproof, which causes us to do what is known as “winging it.” Winging it comes from being overconfident and in some cases from being lazy. 

My definition of winging a presentation is when the salesperson shows up with no or very little information, limited services, and little if any marketing ideas or materials to share. In short, they show up to talk, not show, because they are convinced the listing is theirs for the asking (and in many cases they get the listing). The problem with winging it is that you don’t get Read the rest of this entry »

Want a Listing? You Got It!

 A listing presentation is a job interview!  The purpose of interviewing someone for a job is to see if they have the skills and abilities to do the job you are offering, and a listing presentation is the Homeowners’ interview to see if you have what they are looking for. There was a time several years ago when presenting price was the most important part of the interview. Not today! Many if not most sellers have already checked out the MLS and have an idea as to selling price. What they want to know is: DO YOU HAVE THE SKILLS AND ABILITY TO SELL MY HOUSE?

What you present and how you present it in this “interview” has a lot to do with the relationship you have with the homeowner. In some situations you may present just a small amount of information, and in others you my present a huge amount over several days. It is always better to be over prepared than to embarrass yourself with an inadequate performance,(I can still remember some of those “learning experiences” when I wished I could have just vanished from the face of the Earth.) Regardless of the relationship or the volume of information required, these 9 Steps will serve you well.

1. One Step or Two Step? Some successful salespeople employ a One-Step listing presentation in which they do everything in one visit. To be successful with this method you should have Read the rest of this entry »