Dave Robison
By Dave Robison
Ever had a buyer working with more than one agent? Ever had a seller who you spent a ton of time with, gave them your advice, and then they used a discounted service? Ever had a buyer who kept changing their mind or made offers on a lot of properties?
I knew an agent who had a hard time with one of these scenarios. “Tina” broke down crying one day, saying, “How am I going to pay my bills now that this closing fell through? I’ve worked so hard this past month and now the buyer is backing out? How can they do this?” Many agents have been there. (This is a real story, however, and I changed the name above.) I had to explain a secret to Tina, on getting deals done.
The secret to success is not being emotionally affected or attached to the outcome of the transaction. Whether it fails or closes, you can’t be attached to the outcome you want. It’s a Nordstrom Way Secret.
The scenario:
Eons ago, I had a buyer who planned to purchase a multimillion-dollar property. I remember spending hours on end, educating and reassuring this person about the home buying process, in anticipation for what was about to be their biggest purchase ever. During the process, the buyer was concerned with the inspection. The items did not seem of major importance to me, however, they caused stress for the buyer.
The buyer asked the famous question: “What should I do?” This is the point where many REALTORS® might say something like, “It’s a great time to buy,” or, “I would do it,” etc. A secret to being unattached to the outcome is that you tell yourself: “It’s okay if they don’t buy the home. I still can pay my bills. There will be other buyers.” Even if you feel these statements aren’t true, you are going to have to say this to yourself anyway. There are many buyers I meet who will tell me they felt like their previous agent just wanted them to buy something and get a deal done. Those buyers left their agent to look for someone who would help them, rather than an agent who just wants a deal.
The right approach: Continue reading »
Jennifer A. Klein
By Jennifer Klein
When in doubt, it’s best to disclose. Protect your sellers’ best interest with this advice:
Jennifer Klein is a REALTOR® in Northern California who is experienced in short sales, investments, and property management. Connect with Jen at RosevilleAndRocklin.com, JenKlein.com, and @JenKleinSac.
Cory Brewer
By Cory Brewer
Last summer, an agent in my office took on a listing with high hopes…the market in this particular neighborhood was moving fast and prices seemed to be pretty stable. Unfortunately, though, by the time the clients were ready to hit the market, some of the neighboring comps had slashed prices (assumably to try and get sold before the start of the school year). As time went on, the comps dictated that there was really no way we could sell for our asking price, which meant we were approaching the dreaded “short sale territory.” This was a major game-changer, and there were many occasions on which our clients thought it would be best just to pull the house off the market and maybe even stop making their payments.
At times we almost felt like this was going to be a lost cause, but two things came to mind: If that house didn’t stay on the market, there was no other way it was going to sell…and the sellers are in a position where they have a legitimate hardship and NEED to get out from under the house and move on with their lives. I also didn’t want my agent’s sign to come down from what is a very high-traffic neighborhood.
Long story short, the sellers agreed that keeping the house on the market truly was the best course of action to meet their goals. At press time, we are thick in the middle of a win/win situation: They have accepted an offer on the house from a buyer who is willing to wait out the short sale process and our negotiator is well underway with the lienholder in getting that approved. In the meantime, the agent received several sign calls on the house…each time knowing that there was little chance the house would sell to that caller given the short sale situation. No matter…they pursued the sign calls and are currently under contract with one of those buyers on another house nearby (scheduled to close later this month). Continue reading »
Jennifer A. Klein
By Jennifer Klein
Sometimes short sale clients need to be referred to a tax professional or real estate attorney. Overcome your fear of losing the listing and do your due-diligence as a real estate professional.
Jennifer Klein is a REALTOR® in Northern California who is experienced in short sales, investments, and property management. Connect with Jen at RosevilleAndRocklin.com, JenKlein.com, and @JenKleinSac.
Jason O'Neil
By Jason O’Neil
Are the two at odds with one another? I say yes. I begin each buyer consultation with the simple question: “Do you want a great deal or do you want a great home?” The responses are typical:
“Both! Ha Ha Ha…I mean, can’t we get both?”
“Uhhhhh. Great home?”
“Somewhere between.”
“Great home. Good deal. Is that possible?”
Most home owners forget what they paid for their home the instant after they move their stuff in. And while most of them get a monthly reminder about how much they owe on their home, very few remember the asking price, let alone the prices of the other 10 homes they looked at before they found “The One.” The hang up on the good deal is so over emphasized that I predict it will fade in the next 12 months.
I know that there are naysayers out there, but I am having some serious deja-vu. In 2006, home sellers had the golden tickets. Price? Price had nothing to do with selling a house, heck, if you missed the mark on price the market would quickly appreciate so fast that the market would catch up with the price. Sellers didn’t have to negotiate and buyers were at their mercy. My how the tables have turned. But have they really? I am starting to see the same type of overreaction in buyers. I had a buyer ask the seller to fix the neighbors house during an inspection negotiation!
Sellers are saying enough is enough and our market is normalizing. The great homes sell and sell quickly for close to their asking price…some get multiple offers. The homes that languish on the market are the ones that have been over looked, or been rejected by other buyers and the market as a whole. Do you want a great home or a great deal?
Jason O’Neil is a broker and an owner of McKenzie Real Estate in Indianapolis. Visit his Web site: www.McKenzieListings.com
Dave Robison
By Dave Robison
According to NAR’s report about real estate professionals, the majority of us came from admin jobs rather than sales jobs. There is a high probability that the majority of you reading this are order-takers. The good news is you can change that. You can become a better sales person.
I admit it, I was an order-taker and learned this lesson almost 11 years ago. I was showing a friend of mine houses so he could buy his first home. No luck in writing an offer though because he couldn’t make up his mind and he was reluctant to put in an offer. (It was his fault, right?) My dad came out with me to show my friend the same homes a second time around. My dad said, “This is a great house, Kelly. Lets write an offer.” My friend said, “Okay,” and I got my first sale. (Oops, I blamed it on my client but it was really my fault!)
What was the difference? I was just showing homes, I was an order-taker. My dad was a salesperson. Here is how you can know what an order-taker will do versus someone who is a salesperson:
Example – Listing Client: “I’m not in a hurry. We don’t have to sell. We will move if that one buyer comes along.”
Order-Taker: “Okay, I will keep you updated with showings and whether we get any offers.” *Tries to smile while they feel frustrated with their client.*
Salesperson: “What do you mean by that?” “Tell me more about that.” “What is your timing on when you want to move?” (A salesperson will ask more questions so that the seller can come to a better conclusion. Being a salesperson means being a counselor, too!) Continue reading »
Nobu Hata
By Nobu Hata
The skinny: The Department of Housing and Urban Development is seeking public commentary through Aug. 14 on three “measures” that “reduce financial risk and preserve affordable mortgage financing for responsible consumers.”
The measures:
1. Update the combination of credit and down payment requirements for new borrowers. New borrowers seeking FHA-insured financing will be required to have a minimum FICO score of 580 to qualify for FHA’s flagship 3.5 percent down payment program. New borrowers with credit scores of less than a 580 will be required to make a cash investment of at least 10 percent. Borrowers with credit scores of less than 500 will no longer qualify for an FHA-insured mortgage.
2. Reduce allowable seller concessions from 6 percent to 3 percent. Allowing sellers to contribute up to 6 percent of the home’s sales price to offset a buyer’s costs exposes the FHA to excess risk by potentially driving up the cost of the home beyond its appraised value. Reducing seller concessions to 3 percent will bring FHA into conformity with industry standards. Continue reading »
By G. M. Filisko, contributing writer, HouseLogic
Sellers have a lot of plates in the air during their home sale, and sometimes making their yard stand out is the plate that drops.
Make sellers’ lawn-job easier with tips on landscaping for curb appeal from the June “Exterior Upgrades” package of articles now available at the REALTOR® Content Resource. Here are just three tips on keeping grass looking golf-course green:
1. Green up the grass. If your house has a front yard, you don’t want bare spots, sprawling weeds, or an untrimmed appearance. “It’s so simple to go to Home Depot, buy fertilizer, apply it every six weeks, and water it,” says Mitch Kalamian, a landscape designer in Huntington Beach, Calif.
2. Get sod. If the yard looks really scruffy, you may decide to invest in some sod. According to the National Gardening Association, the average cost of sod is 15 to 35 cents per square foot. If you hire a landscaper to sod your yard for you, labor will add 30 percent to 50percent to the total cost of the project.
3. Substitute turf grass for sod. Another alternative is to plant low-maintenance turf grasses. Turf grasses are durable and drought-resistant. Expect to pay $18 to $30 for enough turf grass seed to plant 1,000 square feet of lawn area.
Get even more tips on landscaping for curb appeal at the REALTOR® Content Resource. Also available as part of the “Exterior Upgrades” article package are tips on choosing an exterior door, achieving the perfect paint job, low-maintenance lawn alternatives, and outdoor lighting for curb appeal and safety.
The REALTOR® Content Resource, the new tool brought to you by the NATIONAL ASSOCIATION OF REALTORS®, is an exclusive NAR member benefit that entitles you to download free homeownership content to your consumer website, blog, or e-newsletter. HouseLogic is the NATIONAL ASSOCIATION OF REALTORS’® no-topic-left-uncovered consumer website geared to helping homeowners make smart decisions to maintain, protect, and increase the value of their home.
Brandon Rodriguez
By Brandon Rodriguez
Barriers are never good when selling a house. I know that all the good agents know this and have instructed to their clients the harm this can cause. However, the barriers are still up.
One weekend, I scheduled property to show for a client. The list was ready and the phone calls to our Centralized Showing System were being made. Mind you, I had at least 11 to show at the request of the client. These are real scenarios and my personal thoughts behind them.
House 1 – “Can only show between the hours of 10 a.m. and 2 p.m. with a one-hour notice.”
My Thought: This is a four-hour window. You might think to yourself, “Brandon, there is a good reason for this.” The seller (insert your reason here). In a buyers market, this four-hour window will not get the seller many showings. Buyers are working people who usually have jobs between these hours. Buyers will only see homes when it is convenient for them. “Well, if they love the house, they will make time.” Not so. They will move on to the next house and forget “the home they loved.”
House 2 – Day one listed the property for $400,000 and day three listed property for $415,000. Continue reading »
Jeremy Williams
By Jeremy Williams
I have heard other real estate practitioners say, “If you don’t take the listing, someone else will end up listing the home, selling it and making a commission.” I recently fell into that mindset and regretfully so. After months of actively marketing a property using both my time and money, the seller pulled their listing agreement saying that they just needed a new set of eyes. Despite my early reservations following the listing appointment, in the back of my mind I kept hearing take the listing or someone else will.
Upon termination of the listing agreement, frustration set in, but then clarity shortly followed. I realized I had spun my wheels marketing a property that just was not going to sell because the sellers’ expectations were unrealistic. Being upfront throughout the listing period, I let them know that several changes cosmetically needed to be done to make their home competitive with other homes in the market. I also let them know that the market required being priced correctly. The sellers did not believe that I knew what I was talking about. They held firm and did not pay attention to the feedback received by those that toured, the fact that no one submitted an offer after multiple showings, and for several showings stayed on sight as opposed to leaving, making the prospective buyers and their agents uncomfortable. I knew I was in trouble when I once made a suggestion early on and was called out as being ridiculous. Continue reading »
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