You Can Sell Your Home in a Slowing Real Estate Market
Lawrence D. Elliott
September 13, 2006
Remember the days when a home would go up for sale and within hours the homeowner would be popping open a bottle of champagne, dancing on the front lawn, and celebrating the substantially-over-the-asking-price offer they received? Then, they are gone so quick you only learn of their exit when you notice a new family working in the yard. Then, they put the very same home on market a year later, get a substantially-over-the-asking-price offer, and they disappear like smoke in a high wind. Remember those days?
Guess, what? Those days are over! Gone are the days of twenty and thirty percent appreciation rates. No longer is the agent you select unimportant because anyone can sell a home. No longer can your agent take a listing, go back to office, and kick his or her feet up on his desk with a hot cup of coffee because he knows an offer will be on his desk by the end of the day. Yes, in case you might have missed it, the real estate market has cooled considerably and is no longer moving at its once normal frenzied state.
Now, I’m not hysterically exclaiming the real estate bubble has burst like so many are already doing. But it is now a normal real estate market and it now takes work to sell a home. And the first decision that could make a difference between a home that languishes on the market and one that sells in a reasonable amount of time will be the next real estate agent you select. So, here are a few points that should be used in the selection process of your next agent.
Your next agent’s real estate experience matters now more than ever!
Real estate is a cyclical business. Chances are, a less experienced agent has never known how to sell in a normal market. Therefore, wouldn’t it be more advantageous to select an agent who has had experience selling in this market? After all, he has probably seen it before, therefore he would be able to create a marketing plan that has been proven to deliver results. A less experienced agent would probably need to use hit-and-miss marketing techniques. Do you really want them missing on your home?
What will your next agent do to sell your home?
What specific marketing tools will he implement to get your home sold for the highest possible price, in the least amount of time, and with the least amount of hassle to you? Sitting in the office waiting for something to happen will just not cut it. Under the current market conditions, your next agent must now be proactive, not passive. Your next agent must be out of the office beating the bushes for your buyer, because another agent most likely will! And remember, he should deliver a specific marketing plan in writing so you can hold him accountable!
What do the past clients say about your next agent’s service?
Before you hire your next agent, shouldn’t you know what his past clients felt about his service? Would they use him again? Would they recommend him to their friends and family? Would they even recommend him to a few of their enemies who are planning to move away…just to make sure the job is done right?
It’s important to know how well he will service you and the best way to get an idea is to know how he has serviced his past clients. For example, I use a 17-point questionnaire that gets specific about the quality of the service I delivered. I also treat it as a learning tool.
Will your next agent assist you with realistic pricing strategies?
It is important to note that the final listing price is always your call. But as real estate agents, it is our duty to advise you on a realistic price range based on the most current market data. However, an agent who comes in with a market value that is so much higher than anything else you have seen could push those emotional buttons and makes you forget this is a business decision and should be treated as such! Be aware because this is a tactic. It’s called “buying the listing” and it can be a very frustrating experience. You see, that agent has no intention of trying to get that price for your home. He just wants to get your signature on a contract and then beat you down—or let the market do it for him—and get a price reduction. Many times, you will have to reduce your price even lower than you would have in the beginning to just to catch up with competition. Don’t fall for this. Always remember, he’s listing your house to sell it, he’s not making an offer to purchase it! If you can’t resist the temptation of listing with this type of agent, then make him put it in writing that he will not ask for a the price for the term of the listing. Hey, if he’s so sure he can get that price, he won’t have a problem doing that, right?
Will your next agent guarantee his service in writing?
Don’t just accept what an agent tells you he will do, have him put in writing! A written promise keeps everyone on the same page and allows you to know what type of agent you are working with. If he is someone of high character, he will voluntarily offer this. If he is not, he’ll squirm at even the mention of it.
Breaking up shouldn’t be hard to do…even a listing agreement!
Let’s say your plans change or perhaps—and I shudder to think of this—you are not satisfied with the situation. Shouldn’t there be an easy and painless way to end the relationship? I know some agents who would rather cut off an arm than cancel a listing agreement. I have never understood this. If you aren’t happy, what is trapping you in a dead-end contract going to accomplish? Maybe your plans have changed or you discover you are better off staying where you are. After over 17 years in real estate, I have concluded the biggest fear a homeowner has is being trapped in a contract with an incompetent agent. Any agent should offer this feature to ease your fears because an incompetent agent wouldn’t have the guts to offer it!
Selling your home is not a game in any market. But when the market gets tough, your next agent needs to be someone who will use strong marketing techniques and service you as a professional should. If not, find someone who does and will!
Guess, what? Those days are over! Gone are the days of twenty and thirty percent appreciation rates. No longer is the agent you select unimportant because anyone can sell a home. No longer can your agent take a listing, go back to office, and kick his or her feet up on his desk with a hot cup of coffee because he knows an offer will be on his desk by the end of the day. Yes, in case you might have missed it, the real estate market has cooled considerably and is no longer moving at its once normal frenzied state.
Now, I’m not hysterically exclaiming the real estate bubble has burst like so many are already doing. But it is now a normal real estate market and it now takes work to sell a home. And the first decision that could make a difference between a home that languishes on the market and one that sells in a reasonable amount of time will be the next real estate agent you select. So, here are a few points that should be used in the selection process of your next agent.
Your next agent’s real estate experience matters now more than ever!
Real estate is a cyclical business. Chances are, a less experienced agent has never known how to sell in a normal market. Therefore, wouldn’t it be more advantageous to select an agent who has had experience selling in this market? After all, he has probably seen it before, therefore he would be able to create a marketing plan that has been proven to deliver results. A less experienced agent would probably need to use hit-and-miss marketing techniques. Do you really want them missing on your home?
What will your next agent do to sell your home?
What specific marketing tools will he implement to get your home sold for the highest possible price, in the least amount of time, and with the least amount of hassle to you? Sitting in the office waiting for something to happen will just not cut it. Under the current market conditions, your next agent must now be proactive, not passive. Your next agent must be out of the office beating the bushes for your buyer, because another agent most likely will! And remember, he should deliver a specific marketing plan in writing so you can hold him accountable!
What do the past clients say about your next agent’s service?
Before you hire your next agent, shouldn’t you know what his past clients felt about his service? Would they use him again? Would they recommend him to their friends and family? Would they even recommend him to a few of their enemies who are planning to move away…just to make sure the job is done right?
It’s important to know how well he will service you and the best way to get an idea is to know how he has serviced his past clients. For example, I use a 17-point questionnaire that gets specific about the quality of the service I delivered. I also treat it as a learning tool.
Will your next agent assist you with realistic pricing strategies?
It is important to note that the final listing price is always your call. But as real estate agents, it is our duty to advise you on a realistic price range based on the most current market data. However, an agent who comes in with a market value that is so much higher than anything else you have seen could push those emotional buttons and makes you forget this is a business decision and should be treated as such! Be aware because this is a tactic. It’s called “buying the listing” and it can be a very frustrating experience. You see, that agent has no intention of trying to get that price for your home. He just wants to get your signature on a contract and then beat you down—or let the market do it for him—and get a price reduction. Many times, you will have to reduce your price even lower than you would have in the beginning to just to catch up with competition. Don’t fall for this. Always remember, he’s listing your house to sell it, he’s not making an offer to purchase it! If you can’t resist the temptation of listing with this type of agent, then make him put it in writing that he will not ask for a the price for the term of the listing. Hey, if he’s so sure he can get that price, he won’t have a problem doing that, right?
Will your next agent guarantee his service in writing?
Don’t just accept what an agent tells you he will do, have him put in writing! A written promise keeps everyone on the same page and allows you to know what type of agent you are working with. If he is someone of high character, he will voluntarily offer this. If he is not, he’ll squirm at even the mention of it.
Breaking up shouldn’t be hard to do…even a listing agreement!
Let’s say your plans change or perhaps—and I shudder to think of this—you are not satisfied with the situation. Shouldn’t there be an easy and painless way to end the relationship? I know some agents who would rather cut off an arm than cancel a listing agreement. I have never understood this. If you aren’t happy, what is trapping you in a dead-end contract going to accomplish? Maybe your plans have changed or you discover you are better off staying where you are. After over 17 years in real estate, I have concluded the biggest fear a homeowner has is being trapped in a contract with an incompetent agent. Any agent should offer this feature to ease your fears because an incompetent agent wouldn’t have the guts to offer it!
Selling your home is not a game in any market. But when the market gets tough, your next agent needs to be someone who will use strong marketing techniques and service you as a professional should. If not, find someone who does and will!
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