The Three P's of A Sale

Posted at 5:18 PM, Jan. 12, 2007

You will see a lot of gimmicks in today's market where sellers and agents alike are desperate for buyers' attention.   I prefer to stick to simple, yet effective methods.  Ones that I think, transcend any market condition and will create opportunity.

First Rule:  Presentation.  This is a must.  Now when I say presentation, I am referring to staging, not decorating.  Staging is the process of depersonalizing a home, decorating is personalizing.  Future buyers do not wish to purchase your style.  Not to mention, style is subjective.  What you may think is beautiful and charming someone else can think is trashy and obnoxious.  Your ultimate goal is to sell your space.  By carefully planning a home's presentation can easily determine how buyers receive it. 

Need proof?  Okay.  Let's take food for example.  I am throwing a dinner party for people whom I don't have a personal relationship with.  I decide that I am going to serve fish.  However, instead of placing it on a lovely platter with an arrangement of vegetables, lemons and a sterling silver serving fork, I place it on a paper plate, whole (head, eyes and all) and require my guests to use their hands to serve themselves.  Now there plenty of fish lovers who don't mind digging in since they know the delicacies that lie under-neath.  But there are many of those who cannot get past how something looks to know how truly wonderful it is.   Think this is extreme?  Well, I can tell you from experience that most sellers have little awareness of how their home is perceived.  Pet smells, dirty dishes in the sink, garbage that is noticeable, dirty clothes on the floor, piles and piles of stuff in every corner and closet that spell one thing to a buyer:  dirty.   Bottom line is, you would not sell your used car without detailing it first, why would you sell your home any other way?  Are you willing to chance that you will find that selected buyer who can look past your home's distracting appearance?

Second Rule:  Preparation.  This is actually a spin off from the first rule.  Preparation applies in a few areas here.  First, is with presentation.  You negate staging your home if the condition of it is less than reasonable.  You will save yourself a lot of headache and a lot of money if you fix those items before listing your home.  Loose tiles, replace caulking in the bathroom, leaky faucet, broken window, etc.  In regards to larger projects, such as a older roof or mechanics, discretion here is the operative course of action.  If you are unable or unwilling to address problems such as these, then be up-front.  Either offer a home warranty or credit as a means to avoid dragged out negotiations after an inspection. 

The other application to the preparation rule is having all necessary documents and receipts handy.  If you own a condo or belong to a homeowners association, have a copy of your minutes, declarations and by-laws, budget and board contact information handy.  If its a room or area that goes with your property, make sure its accessible.  If you have up-graded or repaired/replaced something of significance in your home within the last 5 years, showing receipts can dispel any concern a new buyer might have.


Last Rule:  Price.  This is perhaps the largest pill to swallow.  You will eventually cost yourself more money to list a property high and reduce it's price than to price it correctly in the first place.  A home's price should reflect current market conditions, not what it is you need to net, not what your bank says it's worth, not the many wonderful memories you've collected over the years, not by all the improvements you have done, not even what your neighbors received for their home.  The successful pricing of your home may take these factors into consideration, but is not determined by them.  What a buyer is willing to pay will ultimately decide the value of your home, and what a buyer is willing to pay is determined by perceived value.

The bottom line to it all, you will get out what you put in.  By investing in the process of preparing your home for sale, you ultimately increase your chances of a successful outcome for both you and the buyer. 

Value is In the Eye of The Beholder

Posted at 9:03 AM, Nov. 18, 2009

Despite what we know to be true, there are still those who refute all wisdom for desire.  That is the best way I can sum up sellers who refuse to see the evidence in front of their faces, telling them, what the market value of their home is. 

I have gone over the data, addressed the emotions, even tossed my hands in the air.  You can't make a blind man see.  We are taught that with logic and careful teaching, even the most stubborn of clients will see the light.  You just need to educate them.  Wrong.

I find that even the best argument is no match for the aspirations that lie within the human soul.  You can't make a student out of some one who doesn't want to learn.  For some, that means the hard way. 

Unfortunately, as professionals we will continue to be the fall guy for those bad decisions, many of which, are irreversible.  It is sad to think that our public image does little to emphasize our experience and expertise really does count for something.

Are Realtors To Blame?

Posted at 5:24 AM, May. 15, 2009

Alright, I just can't help but get in on this debate.  I just received a video clip from FoxBusiness.com (via Coldwell Banker) regarding a recent interview with our chief CEO.  The main topic is, should real estate agents bare blame for the housing mess?  Well...

First and foremost I will answer the direct overall question that was unsaid.  Yes, there have been, currently are and will always be the few in the business that spoil the bunch.  We are held in contempt by the average consumer as being money hungry, immoral and down right shady.  This is not your average Realtor.  Like any profession, there are mostly good, and some, not so good.  The character of the person should be held in question, not the occupation.

Now to the direct question that was being asked, is it right for an agent to take a commission (the reporter stated 6%) representing the buyer for a property than turning around and getting a commission again for representing that past buyer (now current seller) in a short sale/foreclosure situation?  The question eludes that agents who have been involved (or as this report suggests, somewhat responsible for the seller being underwater) should try to sell that home for free.  I have to again ask, why is it that people become blinded when they think of commission as means of payment?  If I were a doctor, I could just bill you for the time spent with you regardless if I fixed your problem or not.  Same applies to an attorney.  You are billed whether you win or lose (so to speak).  So, should real estate agents just start billing flat fees for anytime spent on a property regardless of performance?  Do people forget that we can spend months on a property putting up our own hard earned dollars risking that the property might not sell and we too are out money?  We are not always rewarded for good works with payment.  In fact, every agent can recall how often they have lost money on dead listings and flaky buyers.

 Let us not forget the most important factor here, accountability.  NO ONE made the buyers buy.  That was a sole decision.  Were they advised to buy more than they should, possibly, but in the end, the bills were theirs and theirs alone.  If you can't make an adult decision and accept the consequences and responsibility that goes with that, well I'm sorry.  Enough of the finger-pointing and blame shifting.  We are  accountable for our own actions, regardless of the advise we heeded. 

In addition to that note, there is no one factor as to why a person loses their home.  It's not just because of adjusting mortgages.  In fact, the primary reasons people lose their home is due to job loss and/or medical debt/illness.  No super star Realtor is going to be able to tell if someone is bound to lose their job or go on sick leave in the future.  Nor should we be expected to.  We are not responsible for individuals saving or spending habits.   I can speak first hand.  My husband was just laid off from his job.  I could very well be facing losing my home even though we did not buy out of our financial capabilities or have an adjustable mortgage.  My income however, is unpredictable.  You can only prepare for so much.

 On a final note, FYI reporters, if the property is foreclosed on (or a short sale for that matter), the bank can influence and decide what commission will be paid out, not the seller.  Often than not, it is considerably less than the time, energy and frustration involved to get one of these deals to the closing table.  Let's grow up people and look forward to correcting the problem instead of figuring out who caused it.  The answer won't change anything nor will it necessarily make the public any wiser. 

 

Open House Tips For The Do-It-Yourself

Posted at 5:23 AM, May. 14, 2009

 

• Advertise your open house. Ideally you should advertise both the weekend before and the weekend of the open house. Check with the local paper to see when their ad closing deadlines are.

• Create a property summary sheet. This sheet gives prospective buyers an overview of your home. Include dimensions for each room, copies of a property survey, summaries of utility costs and property taxes, and a list of when capital items, such as roofs and furnace, were added.

• Develop a sign-in form for prospects’ addresses. You’ll ideally want both phone numbers and e-mail addresses to follow up with prospective buyers.

• Put up signs. One or two days before the open house, place directional signs at major intersections within three to four blocks of your house. Be sure you check on anti-sign regulations in your area.

• Get your house ready. Remove clutter, clean your house, wash your windows, add flowers, turn on lights, open draperies and blinds, remove valuables and breakables, confine pets, turn on soft music, and set up a table for your property fact sheet near the entrance.

• Develop a follow-up sheet. Getting feedback on your home from prospects who attended your open house will give you a better understanding of how to make your home more appealing to buyers.

The Price Is Right

Posted at 5:20 AM, Sep. 17, 2008

Sellers are definitely feeling the bite when it comes to selling their home.  I have had to tell many, if you don't need to sell, don't.  You will not outsmart the market.  Your property is not exempt from the effects of the downturn.  This has been extremely difficult to those needing or choosing to sell and have own less than 5 years.  Fact:  if you bought at the height of the market you WILL lose money if you sell now. 

Too often though, I hear the pleads of their special circumstances.  My rate is adjusting, I have been relocated, we need more space, etc.  The reasons are common.  I don't think I have taken a listing yet this year from a seller who DIDN'T have a special need.  Face it, we are Realtors, not magicians.  We are not going to create a market of buyers just for those sellers in need.  I would not be surprised if there are numerous professionals out there turning down listings if they know up front they'll be a waste of their time and resources.  The time is now to get serious.  Sellers, we as professionals have been shouting from the roof tops things you must do even to get in the game.  At the risk of repeating, here they are again:

PRICE COMPETITIVELY!  This is KING!  Have a Realtor look at the last 3-6 months and look at what is currently under contract, even before what has sold.  That will tell you what today's buyers are willing to make offers on.  If you have solds, use them as bookends if you will.  Know that in a depreciating market, your property may be worth a certain percentage less than the last sold. 

Also, know your competition.  In Chicago, the fatal mistake I hear is, " Well, that property is not like mine so it can't count!".  Truth is, if a buyer is looking at yours, he or she will look at others in a similiar price point.  Smaller, bigger, more amenities, less.  Don't underestimate your competition.  Plus, realize cross neighborhoods.  If they are looking in one, they may realistically be looking in another nearby.  There might be a larger pool of properties you are up against than you realize.

GET IN TIP TOP CONDITION!  There is no excuse for poor presentation.  If you property is in disrepair, price it accordingly.  But note, buyers will STILL offer less if the property has been on the market more than 30 days.  Buyers are not interested in the fixer-uppers unless the price is a steal.  Minor things such as a squeaky door, clutter and outdated paint and carpet can cost you market time which translates into dollars; lots of them.

DON'T OVERLOOK CURB APPEAL!  Your home could be a dream on the inside, but if the outside leaves much to be desired, change it.  Ask others for suggestions or perspectives on what you can do to make a buyer say, "I would like to check that out."  It takes a lot less to WOW than you may think.

DON'T USE A REALTOR WHO WON'T DO YOU JUSTICE!  I will say this till I am blue in the face; pictures, pictures, pictures.  REAL pictures.  Not of the door frame, the window or the oh so famous sky line.  Leave the details for when the buyer tours your home.  But facts are buyers will most likely not consider a home or will have lower expectations of those without pictures to look at.  I don't even consider homes without them.  You will lose a huge audience if you fail to post pictures of the interior.  Buyers want to grasp a feel of the home before they will bother to see it.

Next, ditch the fluffy lingo.  Beautiful, Amazing, Spectacular.  Guess what?  Buyers aren't buying it.  Have your professional talk about tangible pluses.  Ask yourself this, "What makes living here so great?"  You are going to appeal to a lifestyle before anything else.  Lots of space, close to transportation, shopping, first floor bedroom, office space, etc, all the things that actually make a buyer's want list.  State the facts and court them with the pictures.  If you can, give yourself the advantage by addressing any negatives in advance, i.e. parking, noise, etc.

When sellers are ready to take the reins back, buyers will move forward.  The power to change the atmosphere is in your hands.  Interest rates are dropping and buyers will buy when they can perceive the value. 

What Is an Appraised Value?

Posted at 6:28 AM, Aug. 18, 2008

 

Used with permission from Kim Daugherty, Real Estate Checklists and Systems, www.realestatechecklists.co

5 Things to do Before Putting Your Home on the Market

Posted at 6:25 AM, Aug. 11, 2008

How To Speed Up Your Sale

Posted at 4:04 AM, Jun. 26, 2007

Don't Wait to Establish Your Team

Posted at 11:36 AM, May. 10, 2007

I say it over and over again, but somehow it doesn't absorb for most clients until the very last minute.  Decide on your team before you need to.  Too often, clients wait until the very last minute, and in this case an accepted contract, to decide who will represent them in the appropriate fields.  Attorneys, inspectors and even at times, lenders are left to the last minute when stress levels are at their highest.

Choosing your team players is a necessary part of the process and will ultimately factor into the success of your experience.  So that in itself lends to the arguement that it is not in a consumer's best interest to wait.  Soliciting friends, co-workers and family for referrals is a good place to start.  You can also look to the recommended professionals from your Realtor and don't be afraid to interview them.  You want to have those involved to be easy to talk to and assist you in making important decisions with your largest investment.  Ask questions and rely on your instinicts to guide you with picking the right match for you. 

I have had clients in the past note that overall their experience was great, but those particular individuals that they did not take the time to research and interview, lessen the positive.  I find this especially important with attorneys and lenders.  There are very competent professional service providers out there, but not all will work well with you by giving you what you need or answer your questions in a manner that you feel comfortable with.  So save yourself from a potentially, less than grand experience.  Take the time to seek out all the members of your team with care and diligence and it will ultimately pay off. 

 

Penny Wise

Posted at 2:59 AM, May. 9, 2007

I cannot again begin to express my shock when I see that in today's information society, buyers will still opt to be stupid.  What do I mean by that?  By not utilizing their option to an inspection.

Here is the scenario:  I have a listing which has just sold in 6 days by the way, but is in a low price point for the city I work in.  In a nut shell, it is a property for those starting out or wanting an investment.  We accepted a contract from what appeared to be a first time buyer whom was willing by the way, to pay nearly full price.

Two days later at her scheduled inspection, I discover that as frugle and "smart" as this buyer thinks she is, instead of hiring a REAL inspector, she has her friend (gauging from the conversation, works in construction) stop by who then proceeds to stand in the middle of the living room, look around and says, "looks good".  ARE YOU KIDDING ME??????

Can you guess my response?  I immediately called my seller and advised her instead of spending "x" amount of dollars in some cosmetic repair to not bother.  If this buyer cared so little about her investment by spending a few hundred dollars to assure that there is no serious defects wrong with the property, she surely won't care about some minor repair/improvement.  Word of advise, DO NOT BE A PENNY WISE AND A DOLLAR FOOLISH!

Buyers, utilize your option to not only get an inspection, but hire a professional.  It truly is worth it in the long run.

People Will Not See Past Your Dirty Underwear

Posted at 4:21 AM, Mar. 28, 2007

It never ceases to amaze me when I have to say this, but look sellers, buyers will not see past your dirty, smelly laundry.  That means, pick up!!!

I took a client out on Sunday and low and behold, came across my first nasty property for the day.  The bachelor pad, the "I give my clothes the sniff test before I deem them unwearable" pad, the "just had the guys over for a poker night" pad. 

There we stood in the door way.  Mouths gapping in horror.  This was something that movies were made of.  Right in the middle of the living room was what appeared to be a complete change of clothes, used mind you.  Apparently, the owner was in such a rush out the door, he was unable to pick up his clothes and put them in the dirty laundry.  Of course, when we discovered the dirty laundry, or should I say, it annouced itself by the smell, we couldn't imagine that as a better option. 

In the middle of the room was a discarded pizza box, no doubt last night's dinner (I hope!).  Dirty dishes, dried food stains on the counter and a giant shark head in the closet to boot.  From this point I could not even tell you much about the property. 

I have to say, I feel sorry for this agent.  Or should I?  If a seller plans (or doesn't plan) on at the very least, keeping the place picked up and devoid of nasty odors do us all a favor and not take the listing, unless of course you plan on warning us in advance in the remark section of the MLS with something like this..."Warning, this property is a violation to every sense you have".

Sellers, if the only audience you wish to appeal to is your frat buddies (note, I do realize women can be just as messy!) don't waste a buyer's time.  They are not going to see past your filth and admire the home for its potential, unless of course its the very last property on earth.

Don't Overlook Preparation

Posted at 5:49 AM, Mar. 20, 2007

Secrets to Simultaneous Real Estate Closings

Posted at 10:45 AM, Jan. 28, 2007

Are you one of the many who will need to strategically sell your home while buying your next?  Click on the link below from Bankrate.com for tips.

Secrets to Simultaneous Real Estate Closings - It's a normal situation: close on both a home sale and a purchase the same day. But it's fraught with peril.

The Limited Purpose of Feedback

Posted at 12:59 PM, Jan. 22, 2007