listings — Chance Brown's Real Estate Blog

Do For, Not To

May 30, 2017 By Chance Leave a Comment

I’ve actually been working on this post for quite a while now, but just haven’t found the right thing to tie into to make it work. Thanks to the shitstorm surrounding Zillow’s Instant Offers that has happened over the past two weeks, I owe them a bit of gratitude for helping me finish this up. The problem, up to this point, has been trying to put into words a philosophy that can be seen differently through any number of lenses without providing solid context. The aforementioned surge of paranoia about the perceived inevitability of the Zillow takeover of all things real estate has helped put some perspective in place to make the point.

To Answer The Question

Since I brought it up, no, I don’t believe that Zillow Instant Offers poses a very real threat to Realtors. No, I don’t think that Zillow has any intention of becoming a real estate broker and taking over the industry. I believe that Instant Offers is, plain and simply, a big name in the business reacting to a threat from smaller companies like Opendoor. That’s it. I’ll get to that later. That said, I would argue, given the way the platform is set up, that there is real opportunity with Instant Offers for agents that aren’t wasting time complaining about it.

The Real Problem

What the agents bitching about Zillow should be looking at, in my opinion, is why it’s happening, not who is doing it. The real problem is that the home selling and buying processes are arcane, intrusive, and, frankly, a giant pain in the ass. So, in walks an opportunity to take the time, stress, and hassle out of the equation and people like it. Is anyone really surprised? I mean, not to get all dramatic here, but it’s not a hard argument to make that our buyers and/or sellers often end up feeling like a victim by the time they get to the closing table.

For sellers, they have someone come into their house and tell them a bunch of stuff to fix. Then they have to keep it extra clean so a bunch of strangers can trample through at the time of their choosing. Then they usually have to negotiate offers. Then they get a professional inspector, that they don’t choose and have no oversight of, who comes in and tell them a bunch of stuff to fix. Then another professional, also not of their choosing, comes in and tells them if their home is really worth what the market clearly thinks it is. Then they finally, maybe, if another professional, that they also have no oversight of, hasn’t either lied or screwed something up, get to close. Oh, and they get to pay a bunch of money for this pleasure.

For buyers, they usually start looking online, often at sites that have significantly flawed data, yes, like Zillow (there, are you happy now?) for a home. Then someone tells them to go get a financial colonoscopy to make sure they can actually buy it. Don’t even get me started on how flawed the financial world is, specifically as it relates to “credit worthiness”. Then they get dragged around to look at a bunch of homes that usually results in that same feeling you get when your blind date doesn’t look anything like her online dating profile picture. Then they get to negotiate an offer, pay for the inspection, negotiate some more, pay for an appraisal, and possibly have to either negotiate some more or walk away after coming out of pocket for all of these things. Then, maybe, if the professionals they hired did their job, get to close.

Yep, can’t imagine why someone would want to avoid that, can you?

Disruption is Coming

When Barack Obama received the Democratic nomination for President of the United States, there was no such thing as an iPhone. Let that sink in for a second. Now, today, you go through separation anxiety if the damn thing is in the other room for five minutes. The world is changing quickly around us. Uber is quickly killing the cab and black car industries, without owning a single vehicle. Airbnb is the largest hotel operator in the world, without owning real estate. Cable companies are clinging on for dear life because of streaming media. Newspapers are closing left and right because of our need for everything on-demand. Expedia, and others like it, killed travel agents. The list goes on and continues to grow industry by industry. If you don’t believe that change is coming to real estate, please keep believing the way you do so I can take your clients when you aren’t in business anymore. Disruption is coming, and you should be ready, open-minded, and willing to identify where it might be coming from and take advantage.

Do For, Not To

So, because I’ve been waiting a really long time to get to the point these days, here it is. The industries I listed above all have one thing in common (except, maybe, newspapers, but I can make the argument both ways). They are all true service industries. I say “true” because they don’t actually sell a tangible product. Realtors like to fancy themselves as a service industry, but the truth of the matter is that we sell a tangible, consumer good. For most professionals in the industry, service may be what sets them apart from their competitors, but their consumer is still purchasing a brick and mortar product.

How, and when, we begin to see disruption in the consumer goods industry is still to be seen. We are seeing disruption in how the products are delivered, but not really in the products themselves, except in the electronics industry. Companies like Amazon, HelloFresh, and Shipt are dramatically changing the way we take possession of the things we buy, but aren’t fundamentally changing the actual products. I would argue that Zillow Instant Offers and Opendoor are in the same category. They are changing the delivery mechanism, but not the product.

I believe that it is the responsibility of the Realtors in the market, the real professionals, to drive the change needed in this industry on behalf of our consumers and clients. In the scenarios above describing the home buying and selling processes, nearly every step of the way, the client has something being done to them. It is time to change the thinking of the industry to a do for, not to mentality. Yes, of course I mean in the way you service your client. You should already be doing that. More importantly, though, is that we make the process a do for, not to process. Opendoor and Instant Offers are doing that for the people willing to accept their terms. If we want to have a say in how this goes down, then we need to stop running in fear of a make-believe enemy, stop the industry infighting over who controls data, and have a real discussion, with our clients involved, on how to make this process something that people actually want to be a part of when buying and selling real estate. Think about it, we would be the very first industry that didn’t have disruption done to them, but took it upon themselves to do it for them and their end-user!

And, as a side note for anyone in association leadership that might be reading this, no, we don’t need 17 committees and Presidential Advisory Groups to get this done.

Why Rising Mortgage Interest Rates Are Good For Realtors

March 30, 2017 By Chance Leave a Comment

Much ado has been made over the impending doom of rising mortgage interest rates as response to the Fed raising its benchmark rate this month. If I had a dollar for every “Buy now before rates get too high” post on Facebook from Realtors around the country, I wouldn’t be rich or anything, but I could buy a decent lunch or dinner. I certainly hope, for their sake, that they result in business coming their way. However, in the big scheme of things, I think it is relatively short-sighted and they would actually benefit more from the rising interest rates they think are going to be a market killer.

There, I said it. Rising mortgage interest rates are a good thing for Realtors in the long-term.

Don’t get me wrong, I’m not advocating for Carter-era rates or anything. That would be terrible and would definitely be a market killer. What I am saying is that a return to 2001-2006 rates would be a good thing, in my opinion. So, here’s my case for higher interest rates…

Higher Interest Rates Indicate a Healthier Economy

The quantitative easing that has resulted in the low Fed rates since the economic downturn began in ’07-’08 is neither sustainable nor healthy for the overall economy. The Federal Reserve should not be in the business of essentially printing money to prop up the economy. This is not intended as a political statement, but fact based on testimony from multiple Fed Chairs and members of the Board. The fact that rates are increasing is a sign that the Fed believes the economy is on the mend.

A healthy economy should be a no-brainer for a Realtor to see the benefit in, right? The healthier the economy the more jobs created. The more jobs created, the more people who can qualify for loans. The more loans qualified for, the more sales. You do the math. In most markets there is a ratio of jobs created to how the market can handle rising mortgage interest rates. For example, for every X,000 jobs created, interest rates could go up Y% without negatively affecting the housing market. If you have the interest and a state or local real estate economist, feel free to inquire about it for your market. Regardless, a healthy overall economy typically equates to a healthy real estate economy.

Higher Interest Rates Bring More Flexible Financing Options

Let’s take a total hypothetical here. If you had the option of investing in a mortgage not that paid 4% interest or in an index fund that was currently blowing through the roof, which would you choose? Exactly. That’s one of the many reasons we have been so reliant on government-sponsored entities over the past decade. For the record, if the recent downturn in the housing market didn’t teach us that reliance on government backing is bad, I don’t know what will. We bankrupted Fannie and Freddie.

As mortgage interest rates rise, private money returns to the market. Because, historically, mortgage debt is a relatively safe bet, the returns don’t have to be as sky-high as the Dow Jones these days. As private money returns to the mortgage market, more flexible and creative loan products become available, we become less reliant on government backing, and a trickle-down effect of great things happens.

Higher Interest Rates Means More Moving

Again, let’s play a hypothetical game. Let’s just say that you wanted to purchase a home. You just got married and you are looking to start your new life together in your first home. Sure, you’ve talked about kids, but it’s still in the future for you. All you really need is a home for the two of you. In a 5.5%-7% interest rate environment, you buy a home for just the two of you. On the other hand, in a 3.75%-4% interest rate environment, for the same amount of monthly payment, you can go ahead and buy a larger home for when the kid or kids do come. Which do you do?

Higher interest rates keep that first-time buyer from skipping the first-time market altogether and moving straight into the move-up market. Now, that first-time buyer stays a first-time buyer and, in a few years, they become a move-up buyer. So, for the Realtor, that one transaction just turned into three if they play their cards right. Otherwise, in a low rate environment, the buyer buys a bigger home and stays there longer.

Higher Interest Rates Means More Inventory

Here in Houston, we have a serious shortage of home inventory. I know we are not alone in that condition nationwide. The example above should illustrate the point of this section. As more people move more often instead of staying in their homes longer, more inventory is available. More inventory leads to more level markets. More level markets lead to more opportunities for buyers. More level markets lead to healthier price appreciation rates instead of spiking prices. All of these are obviously good and lead us right back to our first point about a healthier overall economy.

So, there you have it. My take on why rising mortgage interest rates are good. I’d love to hear your thoughts.

Utilizing a Pre-Listing Package

August 27, 2015 By Chance Leave a Comment

If you believe the statistics published by the NAR, somewhere around 70% of the listing appointments you go on will not be competitive. If that’s the case, your odds are pretty darn good every time you walk in a prospect’s door of getting the listing. Even if those stats are true, what are you going to do the other 30% of the time to win the listing? Even if you know it isn’t a competitive listing situation, why not take an opportunity to put your best foot forward for your client.

A great pre-listing appointment package can go a long way towards earning confidence, establishing your expertise, and winning the listing.

So, what is a pre-listing package?

Quite simply put, a pre-listing package is information about you, the market, their home, and how you plan to sell it. It should be delivered with enough time for your client to go through it, but not too far in advance that they will set it aside and forget about it. I like to drop mine off 2-3 days in advance, but ideally two.

The basic information that goes into the pre-listing package will not necessarily vary from appointment to appointment, but it’s presentation might, depending on the client and/or the property. Have fun with it. Be creative. Let your personality shine through. Remember, you don’t get a second chance to make a first impression. We’ll talk about this more in a minute.

Finally, in addition to the branding and the materials we are going to list below, a pre-listing package is a very unique opportunity, especially in a competitive listing situation, to take of ownership of information even if you aren’t the first to present to the client. How great would it be if, as your clients sit there listening to another agent make their presentation, they’re comparing everything that agent is saying to what they already received from you? You’re winning the listing and you aren’t even there! Unless that agent does something really special, the listing is your’s to lose.

What goes into a pre-listing package?

Your pre-listing package should include enough to help brand yourself, give a picture of the market, and prepare your clients for the upcoming appointment without giving away so much that you’ve got nothing to sell when you get there. Here’s a list of ideas to put in your pre-listing package:

Personal, and preferably hand-written, note of introduction
Your biography and resume
Info and stats on you and your company’s track record
Social proof/Testimonials
Samples of your marketing
Checklists or any other materials to prepare your client for listing/showing/moving
Step-by-step walk through of the selling process
Market statistics and reports
Personal guarantee, if you have one

Going back to our point about creativity from earlier, here is where you can really show your personality when it comes to presentation. Pair your pre-listing package with some snacks or popcorn and soda and make it a date for your clients. If it’s a luxury listing, print it on nice paper and bind it. If, part of your value proposition is that you are particularly high-tech, make it an online magazine complete with embedded video. There is no right or wrong way to do this. Just do it.

Your pre-listing package should set out to do a number of things. First, it should differentiate you from your competition and an expert. Second, it should show that you know the market as well as anyone out there. Finally, it should illustrate how you intend to market their home better than anyone else they might meet with.

Making a pre-listing package an integrated part of your standard listing appointment process will guarantee that you are able to walk through the front door of that listing appointment with a leg up on the competition. Your professionalism will show through and you’ll be that much closer to winning the listing and creating another happy client that will refer you to their friends.

Tough Love With Clients

May 19, 2015 By Chance Leave a Comment

There is no shortage of opportunities in a real estate transaction for something to go wrong. In most cases it’s a matter of when, not if, and to what degree. Some of them are small speed bumps on the way to a smooth closing, some take a little more work, and then there are those that make you question either your or your client’s sanity and maybe, just maybe, get a little jealous of your friends who have a “normal” job. It happens. If it hasn’t already happened to you, it will. It’s just part of dealing with people during the most emotionally charged, high stakes transaction of their lives.

When I worked in the home building world, everything we did revolved around the ever-important customer surveys at closing. The sales person got one and the builder got one. Funny thing about how those surveys worked out when it came to the builders. You see, there were basically two types of builders. On one hand, you had a builder who was their client’s best friend by the time they finished the home. They would go out of their way to be accommodating and do every little thing that the client asked. On the other hand, you had builders who handled the transaction like business and built the home quickly and efficiently without a lot of fluff. Now, you might think that the ones who went out of their way to make friends with their clients would have the higher survey scores than the ones who were all business, but the opposite was actually true.

So, how did they do it? Think about it. The client didn’t want a new best friend. They wanted an expert in home building that they could trust to do a great job in an efficient manner with a minimal number of surprises along the way. Sound familiar? Your clients want the same from you.

Too often, what leads to problems in a real estate transaction is our mistaking niceness for service.

Going back to the builders, here are the three things, plus a bonus, that the best builders I worked with did that created awesome experiences for their clients:

1) Set Very Clear Expectations

From the very outset of the process, the builder met, in person, with the client and set very clear expectations from beginning to end. These meetings were an hour or longer, depending on the needs of the client. There were other scheduled contact points that came out of that meeting and each person was expected to participate so we were all on the same page. If something came up during the process, they were reminded of the expectations set and the timeline explained at the outset. Everything hinged on that initial meeting. So, do you do the same thing as part of your client interaction? Do you walk through the process in detail? Do you set up communication points at regular intervals? If something comes up, will it be a surprise or will you be able to point back to your initial meeting as a reminder that something like this might happen?

2) Establish Expertise

They are, hopefully, hiring you for your expertise. That being said, the interwebs are a dangerous place to live. There is so much information out there, much of it wrong, that your clients will come to you with the most ridiculous things sometimes. “But I read on Zillow that (insert ridiculousness here).” Starting from the beginning, make yourself the go-to person when they have a question. Quicken Loans is ridiculous, Zillow is wrong as often as right, and don’t even get me started on the minimum wage moron at their local Chase Bank branch. Uh-uh. You, period. You know the market, you know the area, you have a team of experts.

3) Communicate Regularly

Yes, I know. We’ve talked about this before. Yet, here we are, talking about it again. Regular communication is one of the best tools you have to minimize adverse reactions to the problems that will come up along the way. You can’t just say you’re going to do it, you actually have to do it. There’s nothing worse than having to deliver bad news to a client when the last time you talked to them was two or three weeks ago and everything was fine then. Oh, and by the way, when I say talk to them I actually mean talk, a.k.a. speak with your mouth, to them. Not email or text. Words from your pie hole to their ears. When you talk to them, remind them from the first meeting where you are in the process and what comes next, answer any questions, make sure they are good to go, and either ask or plant the seed for a referral.

BONUS!!!

Since the title of this is about tough love, here’s how you deal with problems when they arise. It’s really easy. Be honest. Don’t beat around the bush. Get to the heart of the problem, tell them what your plan to fix the problem is, what you expect of them, and then go do it. Don’t worry about their feelings. Worry about solving the problem as quickly as you can. Their feelings will be just fine once you, as the expert here, fix the damn problem, make sure they are good with the fix, and then toot your horn a little about fixing the problem to reassert that you are, in fact, the expert here.

Last two notes on this subject. First, it’s still ok to be friends with your clients. It’s supposed to be a great experience for them and you can make it so by being their friend. That being said, at the end of the day, you have a job to do and they expect you to do it. Don’t let them down or you sure as hell won’t be their friend. Finally, sometimes people are just crazy and there’s nothing you can do about it but learn and hope to avoid them next time.

Be the expert. Be the best you can be for you and for your client.

My Realtor is an A-Hole, Part 1

April 27, 2015 By Chance Leave a Comment

I haven’t posted here in a while because I’ve been moving and the new house didn’t have internet for the first couple of weeks. Considering that I don’t usually write here other than in the middle of the night, that explains the absence. I’ll try not to let it happen again.

Being a Realtor and selling your house is quite possibly the best opportunity to literally put yourself in your clients’ shoes, get a taste of your systems and processes firsthand, and make changes to benefit the growth of your business. It should also, speaking personally, be the only time you run this experiment because moving sucks. Seriously, it’s the worst.

Don’t miss out on the best chance you will get to experience what your buyers and sellers go through when using you as their Realtor.

Warning: You might be surprised what you find out. As it turns out, my Realtor was kind of an asshole.

Take it Seriously

It’s really easy to just get your own transaction done the easiest way possible because you’re busy, you know what to expect, and it’s just habit to you at this point. Two things on that note. First, if you’re married and your spouse isn’t an agent, they aren’t used to it. It isn’t habit to them. And, most importantly, they are experiencing the same emotions that your clients experience. Take advantage of that and use it to get a front row seat to your own show. Second, by not taking it seriously and going through the process step-by-step, you miss out on really being able to analyze each part of your process and revise as needed.

That being said, the one spot where I screwed up in this process was not doing a full listing presentation on my wife. I wish I had done that. We did have a pretty serious discussion on pricing. We are in the middle of a pretty hot market here in Houston right now. I wanted to push the market. My wife did not. She wanted to make sure the home sold very quickly as not to put our purchase in jeopardy. I pushed back and insisted on the higher price. She trusted me to do the right thing. For the record, that’s the first time I’ve won in eight years. And, now it’s in writing, forever. As it will likely be the last time I win, I will relish it for just a minute.

A-Hole Realtor Lesson 1: If your client is wrong and you’re sure you’re right, stand your ground tactfully. Back it with data and make sure they know you are doing the right thing for them. Otherwise, they might end up with a bad taste in their mouth when they realize they were wrong.

A-Hole Realtor Lesson 2: Listen to their concerns and don’t dismiss them because you think you know better than they do.

One night a couple of weeks before we put the house on the market, we walked the house and made the dreaded “list”. Our home was in pretty good shape, but like any house you’ve lived in for awhile, there were things we needed to do to get the house market ready. The next morning I picked up the “list” and immediately hated myself. I had really called my baby ugly and didn’t want to admit it.

A-Hole Realtor Lesson 3: No matter how ugly the baby is, make the fix as painless as possible. Be resourceful and help your clients get the home ready for market as easily and quickly as possible. Don’t just give them a list. That being said, make sure the list is thorough and puts the final product in the best condition possible for market.

Finally, the day to list the house came. As strange as it may sound, having done this hundreds of times, I was nervous. One hour went by and nothing. Then two. Then three. Why didn’t anyone love my house?!? Why? I mean, for once in my adult life I made my bed. My kids picked up their toys. It wasn’t getting better than that, so why wasn’t there, after three hours, a line of buyers around the block?

A-Hole Realtor Lesson 4: Setting expectations, based in reality, is very important. The nerves and anxiety once the house goes on the market are very, very real.

Seven hours. It took seven hours for our home to sell. Once we signed the contract, there was a serious amount of relief. I sure as hell didn’t make the bed the next day. Instead of really enjoying it, I immediately started panicking about inspections, appraisal, packing and moving.

A-Hole Realtor Lesson 5: Even though you did the job as promised, the feelings described in Lesson 4 either don’t go away or get bigger and, no doubt, anchored in even more reality. That’s sarcasm for those of you keeping score at home.

And then the day came, the day that would undoubtedly be the unravelling of everything, inspection day. There was little doubt in my mind that with one wrong move the entire house would come crumbling in on itself crushing everything inside it including my hopes and dreams. Like I said, fears anchored in even more reality. Despite having lived in the home for 8 years and knowing it inside out, knowing that there was nothing to worry about, I was worried. As it turned out, as I should have known, there was nothing wrong with the house. A couple of minor things and we were moving forward.

A-Hole Realtor Lesson 6: Despite the anxiety and fear, this is where keeping perspective is important. Being the person who can, logically and without emotion, explain the inspection report and all that comes with it is pivotal in the overall satisfaction with the client.

Side note, the repair we made was greatly assisted by the fact that we had a good home warranty in place. If your client is getting one paid for by the seller, encourage them to keep it in place after it expires year one.

Once we got past that point, the rest of the transaction went very smoothly. I still kept going through my processes, including a list of things to do before closing like cut utilities, insurance, etc. That part went well and didn’t change after the fact. We were very fortunate to have a great agent on the other side and awesome buyers. We couldn’t be happier that they are starting their life together in the place we started our lives together and hope that they make great memories where we did.

At the end of the day, my systems and processes didn’t change drastically. What changed in a big way, and what I truly hope I never take for granted, is the emotion, the fear, the excitement, the relief, the work, all of it. It was, in addition to being a giant pain in the ass, a great experience. I feel like my ability to relate better with my clients and what they are going through is at its highest level since I started in this business. I will do my very best, based on the rules in this post, to be less of an a-hole with my sellers.

Next up, what it’s like to be a buyer.

Why You Should Be Using Video

November 13, 2014 By Chance Leave a Comment

For several years we’ve heard from industry expert after industry expert about how video is the next big thing for Realtors. The problem with that prophesy is that only about 14% of agents do any kind of video marketing, according to NAR. So, the question is, why should you be using video to market yourself and your listings?

The really simple answer is because 86% of your competitors aren’t!

There are, of course, other reasons you should incorporate video in your marketing efforts. Here are the top 5:

1) You are more likely to get seen

Everyone knows that Google owns YouTube. Putting your videos on YouTube will make you more likely to be seen on Google. Get a YouTube channel and learn about tagging videos with search keywords. Hint: There is most likely a YouTube video on how to do both.

2) You are more likely to get listings

If you are walking into a competitive listing presentation, video could be the tipping point. You, or your competitor, can talk all day about how you market your listings, but showing them an awesome video might just be the tipping point for you to win that listing. Tip: Shoot a quick “preview video” of the home from the street before you walk into the listing appointment and then show it to your seller.

3) Your website will benefit

Nobody wants to read boring content about how great you are or how much better your service is. They will, however, watch a video about it. Gone are the days of dozens of pages on a website with loads and loads of content. Now, simple and more visual are the ways to go and video can get you both in spades. Ideas for video on your site might include an intro video, client testimonials, and blog accompaniment videos that showcase your expertise. You can post these videos on YouTube and embed them on your website.

4) You’ll satisfy your clients better

How many times have you told a client something at a listing appointment only for it to get lost in all of the information? So, how cool would it be if after leaving the appointment you sent them a video of the highlights of the meeting? What if the day the house went on the market you sent a video with your top 5 tips for successful showings. Maybe a video for your buyer client of what to do (or not to do) now that they have a home under contract?

5) You’ll make more money

In case you didn’t put two and two together, being seen by more people, winning more listings, and creating raving fans will result in you building your business faster, getting more referrals, and, ultimately, make more money. All of this can be yours for only a few dollars and a small investment in time.

Stay tuned! Next week we’ll discuss the how-to of real estate video. See you then!

Tying the N.O.T.

February 5, 2014 By Chance Leave a Comment

I can’t exactly remember where I first learned this. It was part of a training class I took once upon a time, but it stuck with me and I have used it on more occasions than I can count with a high level of success. In my humble opinion, it is the best approach to starting a meeting where you know that the other party is expecting you to sell them something.

Let’s take your typical listing appointment, for example. You have a game plan. You might have even given the prospective seller a little expectation setting about the meeting in advance. Kudos to you on that if you did. Now you’re there, in the living room, and ready to convince them that you are the best agent in the world and will sell their home in a mere matter of hours and for at least asking price. Right?

But, are you sure you want them as much as you want them to want you?

Seriously, are they the right client for you? We’ve all probably had a client that we regret. They were a giant time suck, created problems, and when you averaged it out, you probably made about $10 an hour once you got to closing. Time to incorporate tying the NOT into your listing presentation. The beauty of the NOT is that it makes the sales pitch a two way street and gives both parties an out without any hurt feelings.

Why would you want to give your prospective client an out at the very beginning of the presentation? Because it immediately lowers their defenses and puts them at ease with you.

NOT – Naturally, Obviously, Typically. It’s a simple three step intro to the listing presentation that doesn’t take more than about 45 seconds to complete. The result, however, is that it almost immediately puts the potential client at ease, lays out some expectations, and sets you up for success. Here’s an example of how it might go:

“Good evening, Mr. and Mrs. Smith. Thank you for taking the time to meet with me this evening about selling your lovely home. Naturally, I’m sure you have a number of questions for me about the home selling process. Obviously, I have some questions for you about the house and also about your goals with the sale of your home. Typically this meeting takes about 45 minutes to an hour and, at the end, we will both have a pretty good idea if we are a good fit for each other.”

Naturally, you are going to want to customize this for your clients based on your personal style. I, obviously, don’t use that exact script every time. Typically, though, it goes something along those lines and works like a charm. It is a small, but easy to implement, set of statements that has a deep psychological effect on your prospective client. (See what I did there?)

Tie the NOT, get the client! Best of luck.

The Three P’s in Real Estate

January 31, 2014 By Chance Leave a Comment

So, let me preface this by saying that I hate it when people give an oversimplified title to what is actually a pretty complicated process. Couldn’t really help myself, but I hope that this does make things a little easier when it comes to earning the win in a listing presentation and selling your listings.

What’s the winning formula for selling homes? Isn’t everyone looking for that silver bullet? We all know that there isn’t one. I like to follow these three P’s when it comes to presenting my methods to a prospective seller and developing the listing strategy for a home.

Photos

90% of buyers use the internet in their home search, according to the NAR Profile of Buyers and Sellers. What’s the first impression of the property they are going to get? That main photo. As we all know, you only get one chance to make a first impression. That impression is even harder to make online. Don’t believe me, try online dating. Bottom line: if you aren’t using a professional photographer on your listings, you are doing your client a disservice. It isn’t expensive and it makes all the difference in the world. Tip: Take examples of your photos to your listing appointment and compare them to examples of an agent listing in the neighborhood that did not take professional photos.

Placement

Going back to that 90% number, where and how your listing shows up is also a very important part of your strategy. If your listings are syndicating to the big boys like Zillow, Realtor.com, Trulia, and Homes.com, you are missing out. I believe that paying for premier listings sucks, but until the industry gets its head out of its collective ass, it puts your listing front and center with prospective buyers. You can read more about my disdain for syndication by clicking this sentence. For Houston agents, despite the popularity of our local MLS site, keep in mind that 350 families a day are moving into the area and may not know the power of HAR.com. Being able to show your Seller that their listing is going to be seen by more people online is a big win. Check out ListHub and other syndicators for more details.

Pricing

Isn’t this where your Seller wants to spend most of their time? Sure, because it’s where they find out how much they make on the sale, right? Here’s my strategy when it comes to pricing. The best analogy I have come up with, and the easiest to explain to a client, is via the wonderful world of Google. If you’re website is on the first page of Google, you have a 96% chance of getting the ever-coveted “click”. If you are on the second page, or worse, you aren’t likely to be seen at all. A similar thing happens when people look at houses online. You see, most people will go online and look at a lot of houses, a lot. Here’s the kicker, as they look at more and more houses they become pickier. The houses all start to run together. So, it is imperative that your house is one of the first ones seen. In our market, Buyers can search our local site in increments of $5,000. So, I would always recommend pricing at that break and not somewhere in the middle.

So, simply put, take great photos so you grab their attention, make sure it is on as many sites as you can, and make sure that it is one of the first they see. No promises here, but when I implemented this in my business, the number of showings my listings got went way up.