From Listed to SOLD - How to Sell Those Listings You Work So Hard to Get!

Earlier this week (or maybe last week?) I promised to do a little series with tips on how to properly price historic homes in urban markets. Here's where I promised that - you might want to read it first.

Got distracted by conversations ‘bout Real Estate Reality Shows, but here I am again, back to the more mundane issues of our daily grind... pricing homes to sell. Yawn. (I say that a little sarcastically; I totally love this stuff).

Pricing historic homes in urban markets is a bit (a lot?) more time-consuming than pricing newer homes in planned developments. But, at least to my way of thinking, it's a whole lot more fun! Hope you think so, too...

Step One is to Drive by the Home. Never, ever, ever begin the pricing process until you've at least driven by the subject property. You need to have an accurate mental picture of the home and its general location on the planet in order to take the next step. When you drive by, be sure to look for any locational challenges such as nearby railroad tracks, overhead high-tension power lines, undesirable neighbors (either commercial or residential) or obvious parking issues. If the home has an alley, drive through it to see what the back of the house overlooks.

Very few older urban homes are in a perfect location; almost all have some locational "amenity" that buyers will object to. You need to be aware of any such objections upfront. On the other hand, if the subject property IS in a perfect location, that's something you need to know as well, because most of the comparables you'll be using won't be.

While we're on the topic, it's far better if you can get inside the house before you prepare your CMA. I usually handle this by doing a 2-step listing presentation - the first being an information-gathering/rapport-building meeting and the second focusing on the current market - i.e. pricing. (Actually, I do a three-step listing presentation, but I'll talk about that later).

That said, whether you do a one-step, two-step or even three-step listing presentation, never meet face2face with a seller without first, driving by the house, and second, perusing the relevant market data online. You need to be at least conversational about the local market, even if you haven't done your detailed research yet. Remember, the general public thinks all we do all day is drive around and look at houses, so if you stutter, stammer and hedge when the seller asks you about his neighborhood's market activity during your first meeting, he'll certainly doubt your professionalism and expertise.  Being able to casually toss out a few neighborhood statistics or hyper-local market factoids will do wonders for your confidence and credibility.

If there are any homes for sale or any that have recently sold within one block of the seller's home, know the details of the listings or sales, even if they aren't comparable. Your seller knows all about them and he'll expect you to as well.  

Homeowners in urban markets tend to be pretty enamored with their neighborhood and will expect their real estate agent to be, too. So, be as prepared as you can, as early as you can.

Next Time - Step Two - Gentlemen (and ladies), Start Your Research!

A few months ago (sheesh, almost six months already!) I stopped actively selling real estate. Oh, not to worry, I still keep my fingers in the pie and my toes in the water of the Denver real estate market, but I don't actually list or sell properties in my own name. However, being the control freak that I am, anyone who gets a referral from me can count on lots of - ahem - help from me, especially if they're working with someone from my precious Sphere of Influence. I'm sure my - ahem - help is very much appreciated.

Anyway, I recently referred a sweeeeet Charming Old Denver listing to a fellow SWS'er - Mary Beth Bonacci. It's in one of Denver's many historic neighborhoods and was built in 1908. If you're fortunate enough to work in charming old neighborhoods, you know how challenging it can be to accurately price these homes. After 100 years (give or take a dozen) of renovations - not only of the subject property, but also of the surrounding neighbors, the influx of infill development, changes to perceived trendiness "boundaries," the comings and goings of neighborhood amenities, not to mention school district nuances and zoning codes... you can pretty much bet that there ain't another house just like the one you're trying to price.

Oh, sure, on paper, there are probably dozens. After all, builders weren't much more creative back then than they are today. Drive down a street in Denver's Washington Park and you'll see Bungalow after Bungalow built in 1927 - the tract homes of the 20's. On the next block, you might see Tudor after Tudor built in 1935 - the tract home of the 30's. Similar square footages, similar lot sizes, the same existence of or lack of a basement...

And of course, all the MLS descriptions of your comparables proclaim the homes to be Renovated with Pottery Barn Flair! Or to have a Gourmet Custom Kitchen with Stainless Appliances & Granite Counters! Oh, and in a Perfect Location, too.

But I digress.

I decided Mary Beth needed my help pricing the sweeeet listing I referred to her. And she graciously agreed to let me - ahem - help.

Actually, we had a great time. ‘Specially me - since I'd been out of the loop a few months, it was a bit of a novelty to get out there in the trenches and exercise my pricing expertise again.

But, as it usually does, it amazed me that many agents price simply from what the seller tells them about their home and what the MLS data tells them about the market. In other words, they have a telephone conversation with the seller; spend an hour in front of the computer and voila! They create a "professional" CMA and proudly present it to their seller prospect as gospel.

And proceed to the market with an improperly priced home...

Perhaps this strategy works just fine in a newer tract home development. But in a historic neighborhood? No way.

Stay tuned for some hints & tips on pricing urban homes in historic neighborhoods.... I freakin' love this stuff...

Now that the listing agreement is signed and your FOR SALE sign is in the yard, you're done, right? Onto the next victim prospect to WOW with your fancy listing presentation and 132-point marketing plan! Of course, most of those 132 points are pretty much fluff & nonsense, but by the time you've overwhelmed the seller with your promises of Exceptional Service and Total Commitment, he probably won't notice.

No, he probably WON'T notice at the time, but he'll certainly notice later. The good news is that by then it's too late! He's committed to stuck with you! And you'll be damned if you'll let him out of your listing agreement after you've spent ALL THAT MONEY and ALL THAT TIME on his listing! Besides, he probably won't have the guts to even ask (whew!).

Want to Show Your Seller How Much You (Don't) Care?

It's easy! Just follow these simple steps...

1.  Don't send your seller a copy of the MLS listing entry to get his feedback.

2.  Don't let him know when his house officially goes "on the market."

3.  Don't offer to do an open house, and be sure to argue with him if he asks you to.

4.  Don't call the seller after your open house with feedback.

5.  Don't call the seller after you show his house with feedback.

6.  Don't call after the first few showings just to check in.

7.  Don't monitor showings, but the next time you talk, ask "Have you had any showings lately?"

8.  Put up a brochure box, but never fill it (or let it stay empty after the first batch is gone).

9.  Don't send the seller copies of your advertising.

10.  Don't contact the seller at all until it's time to ask for price reduction or to extend the listing.

If you follow these simple instructions for each and every one of your listings, you will be assured a long, glorious career of prospecting, prospecting, prospecting to keep that pipeline filled! You'll never have to worry about repeat or referral business distracting you from your all-important prospecting schedule...

RELATED BLOGS
Sixteen Ways to Keep Your Seller Happy with You
I'm the Best Listing Agent I Know
Y'think Your Clients Are Talking About Their Real Estate Agent?

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The 2009-2010 Winter of Soul Tentative Schedule

Creating Your 2010 Business Plan - Everyone knows you're supposed to have a written plan. Have you done yours? No? Let's do it together in this kick-off to the 2009-2010 Winter of Soul. Wednesday afternoon/evening, November 18th

Alternatives to Referral-Begging - It's really not necessary to beg, bribe or even "remind" your friends to send you referrals. In fact, this behavior might actually be counterproductive to your goal of GETTING referrals from the people you know. I'll show you what to do instead. Saturday morning; January 16th

Open House Strategies - A panel discussion with four master open-housers on effective techniques to attract visitors, build rapport, get valid contact information (and permission to use it), and much more. Saturday morning, January 23rd

Why Isn't My Listing Selling? - ARGHGH! Why isn't my listing selling? I priced it right, made up a pretty brochure and I hold open houses every weekend! What else can I do? (And no, the answer isn't always "reduce the price."). Saturday morning, February 13th

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Social Media and Your Sphere of Influence - Don't spam your sphere! ...and other tips for effectively using social media in your sphere of influence business model. Saturday morning, February 20th

Rethinking the List(en)ing Presentation - Do you really need a formal listing presentation? Maybe... but maybe not. A panel discussion on various approaches to seller interviews. Saturday morning, January 9th

Don't Be Dorky, Be YOU! - Why is it that real estate agents, many of whom are otherwise fascinating creatures, insist on being dull as dirt in their written communications? You don't have to be a professional writer to create interesting letters, newsletters or online profiles that will make the reader smile... instead of yawn. Date TBD

B.R.A.N.D.'ing with Tom Gosche - Back by popular demand from the Summer of Soul, Tom Gosche, branding expert, joins us to share his unique perspective on personal branding that actually reflects who you are... and inspires you to become the best YOU you can be. It's good stuff. Wednesday afternoon/evening, December 2nd

Beyond Virtual Tours - Virtual Tours aren't just for listings anymore! So far, my friends at CPG Tours and I have come up with nearly 20 promotional uses for virtual tours outside of marketing your listings. Easy-as-pie to put together and a lot of fun to distribute. Saturday morning, March 6th  

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