To "move the merchandise," you need to be aggressive and creative in developing a marketing plan for each of your listings, and you must follow up to keep your clients informed. Perhaps the most common complaint among home owners who have listed is that "after all the sweet talk, we never heard from the agent again." You can help forestall that by enlisting their efforts in calling you each time the home is shown by an agent. Here are some specific things you need to do when carrying out your marketing strategy.
1. Prepare the multiple listing entry. Review listings as they appear in your multiple listing. You will find that many are sparse. Make yours complete. Although MLS formatting requirements have standardized most entries, there is still typically room for a few comments. Remember that the users are other real estate agents, so answer the questions that they will have. Include measurements of major rooms, indicate the size of the lot, describe unique features, and by all means, outline the terms upon which the house may be purchased. If there is an assumable loan, verify with the lender in writing under what conditions it may be assumed. If the seller will help with financing, point that out. In a tough market, terms often sell houses.
2. Place signs on the property. In many locales, "For Sale" signs sell more property than any other marketing device. In some exceptional instances, your client may not permit a sign, but most relent when they learn how effective they are. A rider on the sign that says, "Ask for Sarah Smith" will give you good exposure. As you service the listing, drive by periodically to make sure the sign is still up and visible. There are also "talking house" signs that work well for some agents. These permit a drive-by prospect to tune in to a local radio frequency and pick up information on the property (see Appendix C, under "Real Estate Promotionals"). As a minimum it's essential to have a supply of printed brochures in a box in the front yard so folks who pass by can pick up information. More details about those later.
3. Arrange for access to the property. Lock boxes are effective and convenient, but using them can pose problems. Real estate agents are busy and the easier a home is to show the more likely they are to show it. A lockbox contains a key to a home and members of the local multiple listing service are the only people who have access to the lock boxes, so you would think that security would be pretty effective. Unfortunately, carelessness and downright dishonesty have resulted in some home owners being wary of relying on the lockbox technique. If a lockbox is not used and if the key is left in your office, it is crucial that a foolproof and responsive system be implemented that will permit the property to be shown easily and at the same time provide owners the safety and security they deserve.
4. Advertise the property. All advertising must be done under your broker's supervision. If you are asked to prepare copy on your listings, keep it simple, honest, and interesting. We mentioned "Talking House" as a possibility previously, but here are some things you can do on your own that are very effective.
First, prepare a one-page flyer for each of your listings. You can do it on your computer or have it done by a printer. Secure a picture of the property for the flyer and then simply list features that prospective purchasers will probably be interested in, including price and terms. Place your business card at the bottom and clearly indicate your broker affiliation. Include a disclaimer on the bottom making it clear that, although you believe the information is correct, you cannot guarantee it. However it's prepared, make the flyer look professional. There are a number of standard formats you can access on the Internet.
Place copies in a prominent place at the home itself for agents and prospects who are looking at the property. A box next to the "For Sale" sign is the standard procedure. Give your sellers a large number of extra copies to put in the box if the supply is exhausted. If you are working any type of marketing program in which you correspond with prospects, send some copies along. You will want to put one up on your office wall for visitors to see, and you should give other agents in your office as many as they require.
Should you include the asking price of the property on your flyer that you place in a box in the front yard? OK, whom are you representing? Whose interests are you putting above everyone else? Who gave you the authority to put the sign in the front yard? Of course, the answer to "all of the above" is the home owner who listed the property with you. People interested in that house want to know the asking price and if it's not there they could simply move on out of frustration and look elsewhere.. Some training programs counsel not including the price on the brochure, which will require the prospect to call the agent. That means it's a good potential marketing tool for the agent (perhaps for other listings that might be in the buyer's price range), but does it best serve the listing client? I report. You decide. If I'm your supervising broker you know the answer.
Get the information, including pictures, to your company's Web site as quickly as possible. Believe me, the home owner will be following that closely. Virtual tours are becoming more and more common and can be an extremely effective marketing device. Incredibly, some people make offers on homes as a result of seeing a virtual tour, subject to actually visiting the property.
5. Hold an open house. Although it is rare for an open house to result in a sale for that specific listing, it does happen. Even if it doesn't, the exposure you get from conducting an open house is beneficial. Most home owners will probably want you to hold one so it is a good idea to establish a routine that will allow you to achieve maximum results. Maintain a log of who visits, both as a record for the home owner and for you, and as a way of maintaining security. If you indicate to your visitors that the owners have asked for the information, most will comply willingly. Pay attention to each individual. Introduce yourself and attempt to fix name and face. Invite them to look at the home and give them a flyer. Many will be browsers, but some will likely be immediate prospects for a purchase-perhaps not for that home, but for another. The more you know about the visitors and their motivations, the better you can meet their needs. If they are non communicative, don't push. Be friendly, businesslike, and unobtrusive. If any appear suspicious, keep an attentive eye on them and be particularly wary if two people arrive and one of them occupies you in conversation while the other disappears.
After the open house, send all visitors a note thanking them for stopping by, along with your card. Try to prepare the notes right after the open house and mail them from the post office so that they will be delivered the next day. If you judged anyone to be strong potential prospects (buyers or sellers), prepare a card on each one for your prospect file, and follow up.
6. Follow up on visits by real estate agents. Agents who either preview or show a listing are obligated to leave their business cards as a record of their visit. You will want to follow up with each agent personally. Get each one's reaction to the home, and secure feedback on pricing. If an agent noticed things that detract from the listing, discuss it with the owners.
Handling the Offer
Unless you sell your own listing to a prospect you are working with, the ball will typically get rolling by a telephone call from another agent, informing you: "I've got an offer on the Jones listing."
1. Present the offer. Procedures vary around the country as to what is good form in presenting offers, so local custom and courtesies will prevail. In many instances, agents will want to be with you when you meet with the Joneses. Some might not want to go over the offer with you before it is formally presented, but unless you preview everything, there is no way you can do your job properly. For example, verify that the other agent has made certain the prospective buyers are qualified. Sellers are concerned about both the motivation of the buyers and their financial capability.
2. Compute a net-proceeds sheet. One of the most important documents that sellers consider when they make their decision is the net proceeds to seller form. Because all the costs of the sale can now be accurately estimated based on a proposed sale price and exact terms (including a projected closing date), you can give your sellers a reasonably precise breakdown.
The first few forms you complete will be tough and you will need help. Prorating expenses can be tricky and time consuming. I received a lot of patient tutoring from a bright young escrow agent in a local title company. Computer programs are also now available that offer a convenient and helpful format.
It is always best to estimate potential expenditures on the high side, so that the sellers will end up getting no less than they expect. If you overlook or underestimate an expense and actual net proceeds are less than projected, you will have disgruntled sellers. They might even suspect you of inflating their expectations intentionally to get them to accept the offer so that you could earn a quick commission.
3. Let the sellers decide. After the offer has been presented, you should discuss it with the sellers privately and they should be given time to consider their decision. However, there are some advantages to accepting a good offer from highly qualified buyers when it's presented. Until an offer is accepted and the buyers are informed, they are under no obligation to consummate the transaction.
Following Up to Close
After the sellers accept and that is officially communicated to the buyers, the whole transaction enters its most crucial stage, and you need to stay on top of it to make sure that the things that need to be done, get done, and on time.
1. Make a list. Write down every task that needs to be accomplished, who must do it, and when it needs to be done. Some offices have a prepared checklist. Do not assume that something will be done. Make sure it has been done. Check on it yourself. Put it on the top of your daily schedule under number one priority. Do not accept evasive answers such as, "To the best of my knowledge the loan application has been submitted," or, "I am reasonably sure the credit check has been ordered." Your clients do not get their money until the transaction closes and neither do you. Be tough. Eliminate fall-throughs.
2. Give advice judiciously. Your sellers might ask for your advice in choosing other professionals, such as CPAs, attorneys, and title companies, to handle specialized phases of the transaction. It is wise to suggest two or three possibilities, particularly in the case of attorneys and CPAs, and let people make their own choices. If you steer a client toward someone specific and it does not work out, there could be repercussions. I would never recommend anyone with whom I had not had a personal, positive experience.
3. Follow up doggedly. It is very important to establish a personal working relationship with all other professionals involved in the transaction. At times, they will need prodding to get a job done expeditiously, because they are paid whether the transaction closes or not. Tact and good-natured persistence will be your best tools. Never recommend any company or individual who may have a vested interest in the outcome of the transaction without making that interest clear to all parties. Real estate brokers, for example, sometimes have partial ownership of title, escrow, and insurance companies.
"PLEASE LADY, DON'T INTERRUPT"
About a year after I joined the agency, our broker decided to affiliate with a national franchise. That meant all the agents had to go to a regional center for a week long training session on listing and selling. The facility, the staff, and the training techniques were all impressive. The center had the latest in instructional aids, including a videotaping device that allowed us to tape our listing presentations and play them back for critique. Instructors strongly believed in a structured, practiced approach to selling real estate and had little use for the more casual "do what the situation demands" method that had been my style.
Although my listing appointments had always seemed to work out well, I decided that I should be open minded and learn their system. That meant using charts and graphs to accompany a step-by-step rehearsed presentation that included answers for every possible objection. Depending on how many of those answers you had to use, the entire script was designed to last about forty-five to fifty minutes and to ensure that you walk out of the house with a signed listing agreement.
My first chance to use it in the field came when a woman called the office one day while I was on floor duty. She wanted someone to "come and tell me how much I can get for my house." The next day I went by to look at it and to take measurements to prepare for the actual listing appointment. The owner, Bonnie, was a young, single parent who worked to support herself and her little boy. She wanted to move to a larger town where job opportunities were better.
I spent almost an hour looking at the house and the grounds and asking questions. It was a lovely home. I was particularly impressed with the number of fruit-bearing trees and the ornamental shrubs she had, so I made a diagram of the yard with her help. We talked at length, but I was careful to save the "good stuff" for my upcoming presentation. An associate of mine went by later for a quick look of her own to help me arrive at a suggested price range. The next day I returned for the listing appointment, bringing my entire arsenal of paraphernalia and ready to deliver a sales pitch that could have convinced King Tut to list his pyramid with me. I was dazzling as I tripped lightly and confidently from one point to the next, pausing only long enough to get her to answer setup questions (called minor closes).
After about fifteen minutes, I noticed a shift in mood. She became a bit less attentive and that pained "Lord, will this ever end?" look became evident in her face. (I recognized it from the days when I used to practice my school assignment speeches in front of my wife.) Maybe she needs to go to the bathroom, I thought, so I stopped momentarily to ask if everything was all right. "Oh yes, Mr. Edwards, but would it be OK with you if I went ahead and signed those papers now?" Sign now?! But I have charts I haven't shown you, accomplishments I haven't bragged about, and marketing programs I haven't explained. Worst of all, you have not come up with a single objection for me to counter! Sign now?! "Sure, Bonnie, that would be great. Right here. Press hard."
It was a fine listing. We sold it quickly and Bonnie moved to a larger city. She still calls when she visits. She later confided to me that she really wanted to sign that first day I came out, but that I seemed so intent on doing things my way that she didn't want to bring it up.
The training I received at the listing seminar was excellent. It was logical, orderly, and convincing. I used much of it later on during other listing appointments. I still have the padded simulated-leather listing folder that opens up for use as a visual aid on a table. The obvious point is that any training you receive must be adapted to your style and to the situation, and that nothing replaces common sense and good judgment. You will also find that if you show a genuine and knowledgeable interest in the property and the people, the personal rapport you achieve will overcome shortcomings in other areas.
IS IT WORTH ALL THE EFFORT?
It may occur to you that there is a lot of hard work involved in listing and marketing residential property. There is, if you do it right. There is also a great deal of satisfaction to be gained from it and excellent money to be made. Remember, when you secure a listing and put it on the MLS, every other agent in town immediately starts trying to find a buyer. If you have several realistically priced properties on the market at any one time, you will have a lot of help in making a living.