I remember interviewing for my second listing back in 1997. The seller asked me this question: "Jennifer, I assume our house will sell quickly because it's so cute (it was), but if it doesn't sell right away, what will you do?"
Hmmmmmmmm. Hell, I dunno. I was a green bean agent; I'd only had one other listing in my career and didn't have a clue. I came up with something, that probably sounded like this: " I'll do a broker open house, I'll do mid-week open houses, I'll distribute color brochures throughout the neighborhood and post an ad on the nearby college's bulletin board."
Lucky for me, the house did sell quickly, so I didn't have to implement my admittedly weak Plan B.
But it's now 12 years later and I still don't have a good answer to the question: "What will you do in 30 days if my house hasn't sold?"
However, with 12 years of experience under my belt, I KNOW that there ISN'T a great answer to the question! Especially if the seller is expecting me to reach into some magic bag of tricks and pull out a secret marketing strategy that I reserve only for my non-selling listings!
Here's the thing. Even if I HAD a magic bag of secret marketing tricks, why would I hold out using them until after the listing is stale? Wouldn't it make more sense to hit the market with all guns blazing?
But the truth is, I don't have a magic bag of tricks (and neither do you). NO AMOUNT OF MARKETING CAN SELL AN UNSELLABLE HOME. You can do broker opens every day of the week, distribute enough color brochures to kill a small forest and refresh your Craigslist ad every 21 days for the next five years and your listing will not sell if it's not properly priced, properly prepared and properly presented! NO AMOUNT OF MARKETING CAN SELL AN UNSELLABLE HOME!
Our job as professional real estate agents is to know what it's gonna take to get a house sold. We need to know how to price the home TO SELL; how to prepare our sellers for the reality of Being on the Market and how to help them prepare the home to evoke the most positive emotional reaction from the greatest number of potential buyers (and their agents). It needs to look good, smell good and photograph well. It needs to be easy to show without the distraction of barking dogs or a work-at-home owner. If there's an obstacle to sale, we need to recognize it and have the balls to be frank with our seller about it (and help ‘em fix it).
That's how you sell your listing. By working with your seller to create a marketable product, not to throw time and money at advertising after the sign goes in the yard. Frankly, the MLS system is an incredibly efficient system to sell houses and there's nothing we can do individually to out-market that MLS.
WARNING - infomercial to follow...
I wrote a little book last year called "For Sale Signs Don't Pay the Bills" which is a very detailed list of 74 things you as a listing agent can do to get your listings sold. It's a damn good book, if I do say so myself and it's only $14.95 right now at my bookstore. If you have listings that aren't selling, or don't WANT listings that don't sell in the future, check it out. I also do live presentations on the material, if your Association is looking for a speaker in 2009.
Okay, Infomercial Over.
Let's go sell our listings!
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The Daily Seduction
Tips & Inspirations to Generate Business from the Very Important People Who Know You
I agree completely, problemis telling your seller...he lives in a pet rock!
Funny but so true. I like to hit the market with "guns blazing". No amount of marketing will sell a house improperly positioned in the market(price).
Most marketing of a home serves to:
Get the price right your house will sell.
Jennifer:
Ego, that is what gets in the way. In my market agents are still taking listings and pricing then over market value, with the hopes that they can get a buyer to pay for the time and energy that they put into this listing. I was out on a listing appointment yesterday and the home had been on the market not once but twice, with the same agent, when I sat down with the owners I indicated that the reason the home did not sell was that it needed sprucing up and the price had to come down, well the reaction that I got from the seller was as if I had thrown a bucket of cold water on them. The first agent did not have a plan B or C or D. So, this homeowner has lost a considerable amount of money. So, I am sure that they will keep shopping agents until they get someone to tell them what they want to hear. Good post.
You changed your photo! (and you thought no one would notice???)
Open and honest with an unbiased opinion (but diplomatic one) is so important. It could be as simple as the fresh coat of paint, clean the place etc... but the most common: "JUST SAY NO" to the listing that is $100,000 over priced! As agents the idea is to sell it, NOT just list it! and having the "balls" (as you so eloquently put it) to say "my goal is to sell the house, If I just wanted to list it, I would do so at your price, but since my goal is to sell your home I need to market it at $xxx,xxx.00
Merry Christmas Jennifer!
Rob
I once told unreasonable sellers that I could hire the Goodyear blimp to fly over their house 24/7 and it still wouldn't cause their house to sell. Sometimes it's not the marketing...it's the market...or it's the house itself (price, condition, location). In that case, it was totally a goofy floor plan (2 bedrooms up and 2 down) and the price. Real estate agents are not miracle workers, they are part of a team that must work together to get the home sold.
Back when it was a seller's market, listings totally were money in the bank. Brokers chanted, "Get more listings!" and "Lister's last" and now - listings are a total drain on the finances because they may not sell for months or even years (market times in some areas of Illinois are 14 months and up), which is a long time to wait to get paid! Agents need to be frank with sellers and to carefully chose which houses to list. Unless, of course, you have a broker with bottomless pockets and you pay no fees or advertising costs on your own, and you have another source of income to tide you over! Funny, but many brokers are now telling agents not to take listings unless they meet certain criteria! Oh, how times change....
Happy Holidays!
Rob - Bravo! I have no interesting in listing properties... I like my paychecks (and my happy sellers)!
L&L - Amazing how that mindset still exists... but yep, it's alive and well in my market too.
Kevin - Yep! I do believe it's important to keep our sellers happy, so I will "market" the house... but if that's my only game plan, I'm not doing my job IMO.
Lubbock... LOL!
Kelly - your comment reminded me of two blogs I wrote last year...
http://activerain.com/blogsview/204676/If-I-ruled-the-real-estate-world
http://activerain.com/blogsview/205514/Its-Good-to-be-the-Queen-If-I-ruled-the-real-estate-world-Part-II
This is great information as I am a new agent and will most definitely be asked this question soon. Thanks.
Jennifer, I always love your straight shooter appraoch to selling homes. Sellers have to see their house as a product and that the agent is NOT a magician. Merry Christmas.
Marketing does keep the sellers happy, but I agree that it usually isn't the selling factor for a home. MLS is the most valuable tool in my experience but first impressions are important for buyers and if a house smells good and looks great (and the price has gotten them in the door to begin with), then it is a step above a lot of other homes I have shown lately. Thanks for sharing.
Jennifer - you're absolutely right. Around here (DFW TX) many homes in a neighborhood are so similar to the others that there can be little variation in price - upwards that is - if you expect the home to sell. Many sellers have cash out re financed in the last few years and their mtg balance is too close to the potential selling price. We all have heard the "I need to sell it for so and so..." well sorry to tell you but it won't sell at that price. Just like Robert says - "If I wanted to just list it - I would do so at your price but since my goal is to sell it..."
This is so true - I'm going to have to look into your books.
I have been given a cute book that is 88 pages long by,"The Energized Seller"... it lists all the wonderful things a HOME OWNER can do to help with the sale of their home.
I took a look at it and I ordered another set of them to give to my owners.....
=-)
Congrats! You just sold another book, to me.......after I'm done with "For Sale Signs Don't Pay the Bills" I'll look into De-Dorking your letters. Sounds like some thing I need because the letters I'm using aren't getting the job done.
Jennifer and here a thought that you could sell anything :) :)
I like the new picture, especially with all the snow on the ground around here. Bring on the warm sunny weather again.
Hi Jennifer, always good to ready your posts; always great insight. I do have a list of 37 things I do for a listing; but in the end...it has to have the the right price. What's that saying, you want to be the first born, the 2nd wife and the last realtor??? Or something like that.
Jennifer, I love this post. I wish it were a "re-blog" post. You nailed this one.
David - You got it! Reblog away!
Cindy - Yes, indeed. Although I believe that you can't price for everything - buying a home is still an emotional decision and unless you want to slash your price, a home must be presented well.
George - you flatter me, but I'm the world's WORST salesperson!
Dena - Thanks for all your support of SWS!
Jennifer, It's taken me 10 years and I still find myself trying to sell stupid products (Over priced to state it better).
Love your new pic Jennifer! I like what you said about removing barriers whether it be price, pets, or odors. If a home isn't selling there is usually a barrier slowing down the process...and it's usually the price.
Paul - once you shift your mindset from marketing a house to preparing a house for market, it's easier to avoid the Pet Rock syndrome!
Patricia - I agree! In some cases, there simply isn't a buyer at this time, but if there IS, I want my listing to be the next one to sell!
Like the new photo......pricing has always been important but even more so now. I find that a lot of sellers still think their home is the same value as 2 years ago even when you show them the comps. I lost a listing 2 weeks ago to price. I did a CMA went over it with the sellers I had some good comps, they even said they knew the market was slow. Keeping it short, the house is now listed at a higher price than my recommendation.
Jennifer - I tried to visit your bookstore, but your link is broken. You forgot the .html at the end. Here is a link if anyone else wants to go there.
Price is important, but there are other obstacles to selling a house that I am sure everyone here agrees with. All you need is one obstacle to stop a sale. Get lots of great photos; declutter, clean, stage; make showings easy and convenient to buyers; sell benefits not features; listen to feedback; know all the financing options; describe and present for the Internet buyer; etc.
And yes price. Price too high, and you are the comparable that sells the other listing.
Thanks, Peter!!! I fixed it... I agree 100% that price is not always the issue; in fact, I don't think it's the issue nearly as often as people claim it is. It's the entire package, which includes price, but the other stuff is important too. Great point!
Jennifer,
This post topic is probably the hardest subject to coach new (and some experienced) agents. Sometimes sellers get caught up in the sizzle of the process and forget about their own goals. I liken the idea to sellers that get hung up on paying closing costs, even when they net exactly what they want.
Another side note to this: I find many agents price property too high because they are unable to convey the fact that the home is not in showroom condition. Many agents are too abrupt about it and lose the listing. Others just agree with the seller because they're afraid of rejection.
Your comment on the mindset of "preparing" vs. "marketing" is dead on. It's not our job to "market" a home. Our job is to set the seller/home up for a successful transaction, and not leave the seller (and our bank accounts) relying on hope alone.
Eric Lowery, Expert Skills for Real Estate Agents
Jennifer,
Every house sells regardless of marketing if it is seen as a good value. The trick is making it a good value. In today's market sellers are not only in a price war, but a beauty pageant as well. Once they understand that and they price the home at or below market value, as well as preparing it for sale, it will sell and it won't be because of marketing. Thanks for the blog!
Jennifer ..........let me share two pearls of wisdom for you, (in a grandfatherly way).
1. Get an education. It is the one thing you can achieve that no one can take away from you.
2. There is a sucker born every minute.
Jennifer- I'm thinking if the sellers asked me this when I was new I would have answered something like you did. But now I think I might ask the " Mr Seller, what will YOU do if your house doesnt' sell in 30 days?" Then explain to him that I've done all the marketing right from the start, etc. so if it doesn't sell, it's not the marketing, but the product that has to change.
Love the new picture too Jennifer. Happy New year!
Jennifer,
When I was managing I borrowed an idea from a Ninja Selling course I took. They had a saying that went like this "Having an overpriced listing is like trying to ride a dead horse" I took that concept and made a little flier for my agents. I'll email you and attach it.
Realistic pricing and preparing the home for sale are key components. However, exposure to the market does play a role. You may have the great home at the best price but you still need to attract attention, get the message out and generate traffic. The MLS is a great tool - but there are other real estate portals being used by buyers to preview homes that also play a role.
Thanks for the great tip. Now I know what to say in case I get asked that question. Everything you said makes pretty good sense.
P.S. From a new agent who also happens to have one listing in his career.
Ouch! This hits too close to home right now:( Thanks for the kick in the behind.