OK folks, let's get back to basics. Some of us have been wondering, how do I get more business during this slow down? Well, get back to the basics!
I remember when I first started in real estate 7 years ago, I called just about every expired listing and FSBO I could find so I can add to my inventory. I was told, "You need to list to last!"
One of my strong areas was the elusive FSBO. I would drive by and take a picture of the front of the house, put together a CMA and bind it like a book with a hard cover. Put it in a FedEx packet and drop it at the door. I would get 3 out of 10 listings and since they already been beat up by other Realtors about the sale price, I would be able to get agood price reduction and it would sell faster!
Here are some of the things NOT to do to a FSBO that other "professionals" are doing...
1. Never tell the FSBO they are overpriced or degrade them on their reason for the price. Sometimes I would walk in for the appointment and they would say that the last person told them "It will never sell at that price!" Always be respectful.
2. Never tell the FSBO that we call them "Fisbo."Most homeowners don't like to be tagged with that name because they think it's an "us versus them" mentality
3. Never ignore the spouse or the significant other in any of the conversations. I should actually make this the number 1 thing NOT to do. Although one fo them is talking and negotiating, the other is usually the one who makes all the decisions. I have been imany situations where the husband does all the talking and the wife is the ultimate decision maker.
4. Never put down their color decisions. Most homeowners take great pride in personalizing their home and may have several colors that you may think are ugly. Don't tell them that!
5. Never talk about yourself and how you are the best in the business. Homeowners don't care about how many letters you have behind your name. They only care about what you can do for them.
6. Feel free to add more after this...I have heard many horror stories about some of our local agents talking down to people and actually leaving notes on their doors!
I had one agent that left a note on a FSBO door saying they are stupid for trying to sell themselves!
Linda,
Whenever I come across a home that is really ugly and the owners seem really proud, I always refer them to the latest remodeling magazine and or any other magazine that shows homes and the newest color schemes. I would stay away from showing them an industry specific magazine because it is possible they could see another Realtor they might recognize and call them instead. Also, in your CMA, it should show some of the interior photos of the homes that have sold recently. That would give them a good idea what is pleasing to the eye. Hope this helps you!
Joseph,
I would still take an overpriced listing. Here's why,
They are going to lower the price anyway. Whether it's with you or with another Realtor who has taken the time to explain to them about the market conditions. There was a couple of times where I would have them not only sign the listing agreement, but also sign a price reduction that would take effect 45 days from now. I would also never say "price reduction." We would reposition your home in the current market.
I was told that one of my FSBOs I listed was $100k overpriced by some of my fellow Realtors. We not only received a full price offer, there were multiple offers and the property appraised at asking price and we close just yesterday! Our market is totally different than most of the state and the nation. We now have a lower inventory and the properties that sell are the ones that are positioned properly.
To take the overpriced listing or not.. a question for the ages. (Have you seen the realestatezebra video?) I try my best not to work with listings that are overpriced. I feel that sellers who aren't interested in my professional opinion on price probably aren't interested in my opinions about staging, showing instructions, negotiating or anything else. I don't need difficult clients, I need clients who are interested in working with me as a part of the team.
I know another agent who is happy to have as many signs up as possible. He does the same amount of business as I do and some of his sales are best described as miracles. He has lots of inventory and a lot of expireds, but it works for him.
To each his own.
Thanks for sharing your thoughts with us. Happy Holidays from Burbank CA