Why Shifting Into Neutral Can Fast Forward Your Advancement!

 There's an oft repeated tale about how certain hunters in Africa catch monkeys.  It can be very difficult to corral these intelligent creatures, so hunters have used a more inventive method...trapping a monkey by enticing him.  A small jar is placed at the base of a tree with nuts or other items which may attract the monkey's curiosity. 

The opening of the jar allows the monkey to place his hand in, but when he tries to withdraw it, he is unable to do so without letting go of the contents of the jar.  Believe it or not, some monkeys will stay there with their hand in the jar until the hunter comes back to trap them!  They are trapped because they are unwilling to let go of something they are doing which is working against them.

It's not just monkeys who get trapped by what we are unwilling to release.  While, most of us would not be tempted by peanuts or sweets in a jar, it's amazing the things we will hang onto rather than release them so we can move on.  As a Realtor, I witness this phenomenon all the time.  The peanuts are quite conventional; I've got to obtain this Price for my house...irregardless of the market or I must have this home even though I can't really afford the payments. There may be variations on these themes, but in the end they're still peanuts...unrealistic expectations held on to at the expense of moving forward and achieving our goals & desires.

The real estate process often involves the 3 main components of this story; the Hunter, the Monkey & the Jar of Peanuts.  Buyers & Sellers are the significant players in the real estate process.  Sometimes, there is a tendency to behave like the monkey with the hand stuck in the jar for a few peanuts.  Instead of drawing back, taking the hand out of the jar to reconsider options and listen to sound counsel, so many get trapped by the peanuts. 

Peanuts are the misguided rewards that we think we desperately need.  Peanuts are symbolized by the Price that the Property must be worth because so much has been put into improvements.  Peanuts talk to the monkey even though they have no audible voice.  They convince the monkey that if you hold on to this for long enough, you will get what you want.  Peanuts lie!  Letting go of false assumptions is what will bring fulfillment to the desire & this can only be done by stopping the action of holding on to those peanuts. 

Holding on to an Artificially Inflated Price which the current market cannot support is listening to the Peanuts Lie.  Refusing to let go of clutter that serves no useful purpose and is hindering the sale of your home traps the hand in the peanut jar.  Looking for the , perfect home, in the perfect neighborhood, with  the perfect neighbors at the perfect price etc. ad nauseum ensures that your dream will never become a reality because...I tell you truth...Those peanuts will lie to you & then trap you! Once you move into the perfect neighborhood, you can rest assured, it will no longer be perfect.

The Hunter represents market forces.  The market needs players so it offers attractive opportunities. The number of financing vehicles, housing choices & selling tools  available to home buyers and home sellers has created many options &  provided a diverse variety of peanut jars. The market doesn't really care which monkey is snared by the contents of the jar.  It knows that some monkeys will pass by it's offers & simply decide that peanuts just aren't' an attractive choice on the menu at the moment. 

The Hunter also figures that a certain percentage of monkeys will recognize a trap when they see one & won't fall for the ruse.  But, it gambles that enough monkeys will not figure out a very simply solution to the dilemma.  Simply, let go of the peanuts, release your hand from the trap, turn the jar upside down & then you can have your peanuts & not get trapped!  The monkeys who have their Freedom & Eat Their Peanuts as well are those who realize that sometimes you have to let go of an outdated or incorrect assumption or ideals in order to move forward.  Sometimes, the action you take to STOP doing the wrong thing is the most important action you take because it allows you to see more clearly the best solution & option available to you.

Instead of demanding the highest price, simply stop being unrealistic.  Instead of taking several jobs to support a lifestyle we cannot afford, simply stop spending more money than you make or sell your house & move to something more affordable. We would be so much further ahead. if we concentrated on simply stopping doing a few of the things that we are doing which impede our progress  Instead of thinking like the monkey who is committed to getting a few peanuts out of a jar at the expense of his life & freedom, we can stop and  let go of the peanuts  & choose intelligent solutions.  This technique works for real estate & for life!

© 2007 Audu Real Estate  All rights reserved

In my previous post, I discussed how to determine if a home was a good choice for an Open House.  Now, we will focus on the right reasons to hold a home open.  This is something to take seriously.  We are asking homeowners to leave their home & let it be canvassed by members of the general public, for whom we cannot vouch their authentic interest, in the hopes that this will create a viable prospect for the sale of their home.  If we have not done our homework & prepared properly, at the very least, the effort has been a huge waste of everyone's time. 

Some of the reasons commonly given for holding an Open House are:  "The Seller's asked me to",   "I'm not getting any activity, so I need to hold an Open House,"My clients expect me to advertise their house, so I need to do an Open House," or "I'm not very busy so I have some time to do Open Houses."

Not!  None of the above is an optimal reason to conduct an Open House.  The Seller's asked me to - No, the Seller's hired you to give professional counsel & direction in the marketing and sale of their home.  Can you imagine this reasoning used in the following scenario - Patient to Doctor, "I need you to perform an operation because I've determined that this is the best solution to cure my condition."  No MD would acquiesce to a request like that simply because they were asked.  Professionals are hired to provide solutions and create options.  They are hired FOR their expertise.  Determining the viability of an Open House should be the responsibility of the real estate agent as one part of an extensive marketing strategy.

Reasons #2 - I'm not getting any activity on this listing, so I need to hold an Open House.  Holding an Open House will not magically transform a home with limited traffic into a hot portal of activity.  If a home is not getting showing requests, it's usually one of 2 things - a pricing problem or a staging problem.  No amount of increased exposure from a Open House will correct either of these 2 defects.  The solution is to discuss the limitations that an over-priced, improperly stage listing is creating for the Seller due to decreased showings, delayed offers and rapidly diminishing sale prospects.  Emphasize the fact that a well priced listing can NEVER be kept a secret!  Well Presented, Attractively Priced Homes are always Winners .  Successful Open Houses affirm this fact.

Reason #3 - I'm not busy and/or I need to show that I'm doing some advertising of my services. Not being busy is the very worst reason for an agent to hold an Open House which will not be successful.  New Agents and/or non-busy agents badly need to work in Open Houses that will guarantee them a good return on the investment of their time & energy.  One of the most debilitating things to do when your career is in a downward slide is to sit at multiple open houses which no one visits which guarantees that you will not be selling anything today.  There are methods to turn this particular scenario around...but we'll discuss that in a follow-up blog post.

Here are some right reasons to hold an Open House.

• Hold a home open to get buyers for the home you are Holding Open!  This is not counter-intuitive.  So, many times, I hear agents say, I'm holding this house open even though it's not a very good listing to get buyers.  Huh???  If it's not a good listing, why would buyers want to visit you there?
• Hold a home open to get buyers for YOUR other listings.  This demands that you choose very wisely the home that you are holding open.  You want people to be sufficiently wowed by your Open House that if they do not find this house to be the perfect fit, they are willing to trust your recommendations about what else they may want to preview. (This also holds true for other listings on your local MLS...the issue is building credibility & trust!
• Hold a home open to present potential future Sellers with a good pre-view of how you conduct your business.  An open house should feature examples of your marketing efforts.  These can include flyers & brochures that you have created.  This is a great opportunity to give visitors the opportunity to pre-view virtual tours or a real estate shows presentation.  Articles that you have written or blogged about should be attached to the Listing fact sheet along with other suggested homes to preview.  This can also be a great opportunity to highlight your local knowledge by creating virtual shows of the area in which the home you are located is in.
• Hold a home open to Talk with the Neighbors.  Statistics indicate that once a home is placed on the market, within 6-12 months, someone on the same street will be considering a move.  Don't know why this is...it just seems to happen.  Don't wait for the day of the Open House to call & introduce yourself.  Call a week before the Big event to Invite People in the Neighborhood to your Open House Party.  You know, they want to see the inside of the great home, extend an invitation!  Then while you're at the Open House, call again to remind them to stop by for coffee & donuts & get FREE information about what homes are selling for in their neighborhood.

Holding an Open House for the reasons above will dramatically increase the goodwill you generate with your current Seller Clients & will significantly increase your chances of getting many, many more Listings for your Open House Efforts.

Click here to read the previous Post:  Creating Captivating Open Houses

© 2007 Audu Real Estate  All rights reserved

Creating A Captivating Open House

When I entered the real estate profession 12 years ago, my broker told me that I would not stand a chance at succeeding if I did not do Sunday Open Houses.  When I transferred to another Broker a couple of years later, I heard the exact opposite advise, " Open Houses are usually a waste of time".  So which one was right.  Well, both were!  Open Houses are a waste of time unless they are prepared and conducted properly.  A well presented Open House is a strategy successful saavy agents use to effectively market their listings & skill set to the general public & create positive exposure for their clients. Unfortunately, many agents have never been given basic instructions about how to ensure that an Open House is worth the time & others do not want to put in the efforts to ensure that their time...which is money....is well worth it.

The fact is that Millions of Americans seem to find Open Houses to be an engaging hobby.  Don't ask me why.  Maybe, it's part of our morbid curiosity about how other people live; sort of like the house hunting version of tabloid voyeurism.  But if millions of people are going through Open Houses, largely hosted by real estate agents & our national statistics indicate that only 3% of homes are selling through Open Houses, then we have a 97% Failure Rate.  While many of these open house attenders will not necessarily buy a home they walk through, we are doing a dismal job of capturing prospects who have indicated that they are probably going to be buying sometime, somewhere.  Let's look at some vital issues which should be considered when planning to hold a house open.

The most important aspect of preparing for a Successful Open House is Picking the Right House.  Not every home is suitable for holding an Open House.  Have you ever gone on the Open House Needle in the Haystack Search?  The one which has so many twists & turns that you wonder if you'll ever find it?  There's a simple rule which will greatly assist in determining if a home qualifies as a good Open House Prospect.  It's this:  Can I Easily find this home (from a main road) by following a Maximum of 3 Signs.  You don't have to go to the house to ascertain this...simply take out your map & look!

Picking the Right House involves more than being able to locate the home easily for prospective buyers.  The right home is also a home that is priced to Sell.  Listing an Over-priced home is something we have all done at least once, but compounding the unfortunate error by continuing to advertise this embarrassing fact by holding it Open continuously is a disservice to the owner & the public. 

Perhaps, it would be better to be honest with the client and say something like this:  "Mr. Seller, as a contentious professional real estate agent, I have pledged to represent your interest to the best of my ability and resources.  Holding your home Open while it is priced significantly above the prevailing market will result in buyer's using your home to go shopping for a better deal elsewhere and eventually hasten the arrival of offers which are 20-25% below the average successful sale."  This simple conveyance of truth during a listing presentation may have the unanticipated, happy result of creating a Good Open House prospect because you have convinced the seller to create a Saleable Listing.

So in Summary, Here are Some Factors to consider in choosing the Right House.

The right house is:

• Located in area which can be easily accessed by no more than 3 Directional Signs & bring good traffic
• Priced at or Below the Current Market
• One which has Good Curb Appeal
• One Which Shows Well on the Inside...clear of excess clutter, clean & properly presented
• A Home which is Suitable for the Weather Conditions...ie. don't hold a vacant house with No Heat Open in Winter!

The Next Blog Post will Explore the Right Reasons to Hold An Open House.  Seller's hire real estate agents to ensure their best interests are served during the sale of their home.  Review the list & then look at your recent Open Houses.  Have they fit at least 3 out of 5 of these basic criteria?  Let's learn to work more effectively & efficiently to ensure that Open Houses are worth our time & the efforts o.

Why "Just Looking" Can Cost You Your Dream Home!

I seriously dislike being hounded by sales people when I'm shopping...especially clothes shopping.  It's my time to zone out, relax and beam my precision guided "great deals" antenna to lead me to the best bargains.  I'm pretty good at it.  So much so that friends & family have sometimes consulted with me prior to planned shopping excursions about the best place shop for a good deal.  But, I would have missed an extraordinary opportunity if I had not lowered my dogged "leave me alone, I'm just looking" attitude down on a recent visit to the mall. 

I had planned to just browse the racks quickly to see if there were any decent sales.  There didn't seem to be much going on and I was preparing to head out of the store when I heard a delighted chuckle behind me. 

There stood 2 ladies next to a rack of clothing. One, who held a clothing item grinned at me & said, "You've got to see this" and the other lady, the obvious source of this contagious delight was holding a price ticker  preparing to bring more happiness to the few lucky patrons nearby via price massive price reductions!  

I swiftly retraced my steps just in time.   The ticker lady was marking price reductions DOWN to $1.97 on items which moments prior had been $30 - $40!  I walked out of the store an hour later with 7 pieces of clothing purchased for $25 not including the tax!  If I had not been open to receiving the opportunity, I would have missed out on some incredible deals!

Being prepared to receive is  important.  There are a number of reasons why we may hesitate to move forward on things which we want.  I have found that this can be particularly evident when I assist home buyers during the search for a new home. There are many reasons  home buyers hesitate to move forward.  Unfortunately,  these often hidden, underlying issues may hinder your ultimate progress towards recognizing a great opportunity.  Here are 3 important areas to examine.

1.  Have You Done Your Homework?

Getting a great deal is dependent on knowing what one looks like.  You must do your homework.  In the experience I related at the beginning of this article, the good deal was absolutely obvious.  But not all my great deals have been that easy to spot.  To find good deals, you must be willing to invest time in understanding the market before you go shopping for a home.  Look at homes on-line and in magazines, visit Open Houses, attend the Parade of Homes to get perspective on new homes vs. existing homes, and meet with a good Real Estate agent well before you plan to purchase.  This is what research looks like when you're in the market for a new home.

2.  Are You Doubting Your Instincts?

Have you ever had a gut level feeling about something and then found that you were right on target?  Or perhaps, the reverse has occurred & you moved on anyway and headed straight into the disaster zone.  Learning to trust our instincts is difficult for most of us because we are so concerned about what others may think.  We spend so much of our time worrying about other people's opinions or trying to impress & keep up with the Jones's that we loose the guidance of our inner compass.  This can be very, very costly.  The fact is this...no one else can determine with complete accuracy what is best for you.  You are an original, with a particular destiny & purpose which only you can fulfill.  Expecting anyone to decipher your code for what will suit you best is courting trouble at best and can have disastrous implications.

3.  Are You Giving In to Fear?

A poplular acronym for Fear is:  False Expectations Appearing Real.  Often the Door of Opportunity requires us to cross over the threshold of Doubt & Apprehension.  Taking hold of any opportunity will require courage & determination.  It is important to examine the unique way in which fear plays itself out in your life.  Have you found that before many important moments, you are racked with the pain of indecision?  Perhaps, you deal with fear by running away and not facing the prospect of success.  Fear has so many variations & forms in which it manifests.  Learn to recognize the way it makes its appearance in your life.  Fear, unchecked is a thief.  It robs you of life's highest potential and possibilities.  To combat fear, it may be helpful to focus on the following:

• Recognizehow it manifests in your life and the patterns by which you tend to respond to it's influence.
• Verbalize the fact that you are fearful.  Bringing Fear into the light tends to dissolve a lot of its power
• Turn Fear on it's head by determining that if it's working this much over-time to dissuade you from a proposed course of action, there may be a very compelling reason for you to STOP & Reassess benefits which you may have missed.  Learn to use fear to your benefit rather than allowing it to take inappropriate control of your life & important decisions.

 To Maximize the Effectiveness of your home search, decide to look for your Next Home in a New Way.  Instead of "Just Looking", why not determine to "Expect A Deal"!  There is no better time than now to buy a home in Grand Rapids, Michigan!  With thousands of great houses & in the market inventory, Tons of Spring Open Houses and interest rates dropping to their lowest levels since January, don't allow "Just Looking" to rob you of the Dream of "Going Beyond Your Wildest Dreams & Expectations".  I tell you,...this is entirely possible...but you must set out with the expectation that you will receive! Now, is the Time to Buy...A great Deal can & Will be Yours!

This series was inspired by an blog post by the realestatetomato

 © 2007 Audu Real Estate All rights Reserved

How Will You Know When You're Ready to Seriously Consider Making A Move?

 Driving home from work, you notice that your next door neighbors did it last night.  You're sure it wasn't there when you left for work early this morning, but now it...the For Sale sign...is boldly strutting it's stuff on their front lawn daring you to pull over & surreptitiously swipe a flyer from the over-stuffed information box.  They've  put their home on the market!  You find the urge irresistible...Your must know what price they are asking for their home!

You may have been mulling over the idea of putting your house on the market for some time. Or, perhaps, it's a sudden turn of events like a job transition or change in life circumstances which propels this topic front & center.  Maybe, it's the unrelenting curiosity of wondering just how much money can currently be drawn off the piggy bank of home equity by a sale this spring.  All these reasons still beg an answer to the question...Am I ready to seriously consider making a Move?

Here are Some Simple Questions to ask Yourself to Determine if Now is the Time & if You are in a Position to Make A Move.

1.  Can I Afford to Move?

• This question has increasingly become the cornerstone of the decision for many home owners.  Property values in many locations have dropped within the last couple of years eroding the home equity in many homes.  An accurate appraisal of the value of your home is a necessity. You may want to consider ordering a professional appraisal and obtaining a Comparative Market Analysis from a real estate broker to assist you in determine the market price of your home & the costs associated with selling.

2.  Do I Have the Motivation to Move?

• Wanting a nicer, more expensive house is a desire...a wish.  Being unable to navigate a 2 story residence where all the bedrooms are in the upper level is more of a need...unless you are OK with sleeping in make-shift bedroom quarters in the living room.  Write down your motivations to move.  Then really look at them.  Are they wants, wishes or needs.  Then re-consider Question #1.

3.  Do I Have the Time to Move?

• This may seem at first glance to be a ridiculous question.  But this is a very serious question as getting a house ready for sale and going through the process of showings & Open Houses and then finally moving and packing is very time consuming.  A decision like this is best made with the input of all family members.  Children or spouses who fail to buy into the effort to keep a home in showing condition can seriously compromise the successful sale of a home.

4.  Do I have the Money to Move?

• Moving is costly.  Assuming that you will have a profit on the sale of your home, count the costs before you place your home on the market.  Will you need money towards a down-payment for your next home?  Are there bills that should be paid off so that you do not experience undue financial stress if your house payment increases?  Will you want to purchase new furnishings or appliances? 

Considering these simple questions prior to placing your home on the market will bring focus and a higher likelihood of success. These questions are not all inclusive of all the criteria which should be considered when making a determination of if the time is right for you to move.  They are more like the boundaries of a fence which provide a framework of issues to resolve or work on.   If you would like a detailed analysis of the value of your home in the current market and additional tips to ensure your home is properly prepared for sale, please contact Audu Real Estate or call 616-791-0511

Staging Your Home for Memorable Showings!

E-Neighborhood Reports Offer Valuable, Well Researched Data For Homeowners

Worrying, Wanting & Waiting...Overcoming Emotional Hurdles During a Home Sale.

How to Loose 2 Million Dollars in On-Line Home Equity!

Spring Time Open House Search for West Michigan.

This series was inspired by an blog post by the realestatetomato.