Same Old, Same Old Doesn't Cut It

I've been watching, bemused, as a consumer and a real estate agent dance to the same old steps of real estate, only without figuring out that the music has changed. The consumer is someone I know, who knows I'm a real estate educator. He is probably more candid than he should be with me. For instance, he freely admitted his opening list price was aspirational (my word, his meaning). He insisted on a short listing with the agent, and that more commission should go to the buyer's agent. A good thought, but the bonus is tied to a certain price, at a certain time. Supposedly, if he gets less, or later, no bonus. He also has a set up where his listing agent has to be present for all showings. In less than two weeks, he has already reduced the price. The steps are old. Real estate in today's market means listing it at the right price to start with. If the seller wants to take some money off, there are at least three better ways (that I can think of) to spend the money than just a reduction. One would be to buy down the interest rate, a second would be to pay some closing costs for the buyer, and a third (since this is a move-up house) would be to offer to pay the buyer's existing mortgage payments for 3-6 months. Alas, he isn't doing any of this, and neither is his agent. There is an eighteen month supply in this market for homes in this price range; why make it any more difficult for a buyer's agent to show the house ("Listing agent must be present for all showings") Then there's the term on the listing--90 days, per the owner, starting in November. In North Central PA, November begins the slowest three months in the real estate business. Yet, he and the agent are engaged in old dance steps---ones that probably won't get them to closing. The agent is letting the consumer call all the shots; and they are pretty much bad ones. The consumer, who purports to want his house sold, is insisting that the agent do it 'his way'. Same old, same old doesn't work anymore. Successful agents have a marketing plan, and they don't take listings if the sellers don't understand the difference between selling a house and marketing it. Successful agents also know that they are successful because they know what they are doing--and if someone asks them to dance this number, they just sit it out.

Melanie J. McLane, ABR, CRB, CRS, ePRO, GRI, RAA, SRES, 32 year veteran of the real estate industry. Offering training, speaking and consulting throughout the industry, I teach everything from ABR to USPAP. Certified ePRO Instructor. To contact me, email me at: melanie@TheMelanieGroup.com or visit my website: www.TheMelanieGroup.com