by Paul Slaybaugh | May 31, 2010 | Home Selling, Scottsdale Real Estate
The collection of hats in a Scottsdale Real Estate listing agent’s closet grows at an exponential rate. We alternately don the garb of property evaluator, pitchman, marketing pro, receptionist / showing coordinator, contract prep specialist, home inspection consultant, appraisal jouster, loan oversight committee (of one), repair foreman, closing editor, schedule contortionist, marriage counselor, dime store psychologist, balloon animal fashionista, etc, etc, etc. With the advent of Internet marketing, you can add a couple more titles to the overflowing job description: Google Engineer and Social Media Cruise Director.
Before you place too much importance on these latest additions, make sure your virtual Captain Stubing has what it takes to avoid the icebergs of an honest to goodness Real Estate transaction.
The great equalizer, the cyber-world provides the blank slate upon which even the most novice agents can paint a colorful picture of expertise. Years of experience trumped in the search engines by weeks of keyword optimized content. Those with their hard hats on in this soft medium can easily be mistaken for proven veterans of the Real Estate world. As such, even the most obstinate curmudgeons have yielded to the inertia of technology and joined the online fray in the ever-expanding global search for the next business prospect.
While we here at the Scottsdale Property Shop are ardent followers of the Internet prophets, we realize that this shiny new(er) medium is only the latest and greatest hat to hang on our business rack. The fixation with getting to the top of the pagerank heap has distracted many agents and consumers alike from the actual job of selling Real Estate. Think getting the most online exposure possible for your home is key to the probability of a sale? Well, you’re right. That said, raw exposure in the absence of ability is tantamount to brain surgery via an enthusiastic first year med student with a text book, albeit it one with exceptional illustration.
If you are reading this, you already know that we are adept at getting our services and our properties in front of a target audience. What you may overlook, however, is the fact that this is but one minute portion of the job. You must fully vet the agent(s) you choose to employ on all facets of the service, not simply the “Cool, my house will be on page 1!” factor. Click through the articles, peruse our thoughts on the state of the market, review our credentials. Only then, if you believe we’ve got the chops to handle the full responsibility of listing and selling your Scottsdale home, give us a call to move into stage 2 of the vetting process: a personal consultation.
While the Internet is a valuable tool, there is no magic Real Estate bullet or panacea for an overpriced or under-represented property. Your agent should know the community, the builders, the amenities, the home sales, the effective means of procuring a buyer, the nuance of negotiation, the ability to close and how to effectively navigate the escrow to the finish line. Google and Facebook will do none of those things for you (him). To add another clumsy metaphor, consider the various legs that prop up your home sale. If your agent does not have adequate experience with / knowledge of the product, the integrity is suspect. If your agent cannot effectively close buyer leads, the integrity is suspect. If your agent cannot, or does not know how to handle the various hurdles of the escrow process, the integrity is suspect. And yes, if your agent does not leverage the proper media for attracting suitors for your property, the integrity is suspect. Ask any particular leg to support more than its burden, and watch the entire structure collapse.
While I know a few terrific agents who have been in the industry for relatively brief durations, I am aware of all too many Internet marketing wizards who lack the first clue about the process of selling a home. It seems that the only thing taught in new agent training these days is how to leverage social media and/or drive traffic to one’s site. Valuable tools, but am I crazy to posit that learning to actually do the job is every bit (or more) as valuable as tracking hits?
I see such agents in my keyword Google alerts often enough to know that they have the marketing portion of the job wired, but who exactly are they? For all of that search engine juice, I’ve never seen their names on a sign in the communities they target. I applaud the promotional efforts, but cringe for the consumer who hires the Internet warrior out of mistaken belief in his/her expertise. After all, are we Real Estate professionals who market on the Internet, or Internet professionals who occasionally dabble in Real Estate?
I can buy dominant online position for a particular neighborhood for about $20/month, but I can’t buy ability. Even in the 24/7 virtual “what have you done for me lately” world, a track record is always in vogue.
Consumers … choose your weapons wisely.
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by Paul Slaybaugh | May 18, 2010 | Home Selling, Scottsdale Real Estate
By now, nearly every prospective seller in Scottsdale and the greater Phoenix area has been inundated with the well-worn advice that it is wise to make oneself scarce during showings. If HGTV and its fleet of “Real Estate experts” haven’t gotten to you yet, your relatives have. Or maybe you heard it from the co-worker who maintains a Real Estate license on the chance that one hapless acquaintance per year will allow him to practice on him or her. It is a truth so pervasive in the sphere of collective consciousness that it has reached even the outer-most fringes of the industry. As such, it seems pointless to belabor it further here. Suffice it to say that buyers don’t like sellers looking over their shoulders when they shop.
Shoot, I still generally decline a store clerk’s offer of assistance despite clearly having no idea which bottle of red to pair with the flank steak atop my cart’s haphazard grocery selection. Just a knee-jerk reaction to get the salesperson out of my space. I am perfectly capable of bungling the choice on my own, thank you very much.
Which leads to the thrust of today’s discussion of a well-traveled suburban myth: The (presumed) advantage of listing agent attendance at all property showings.
Some agents, either out of deference to demanding sellers or as a standard business practice, require they be present at all showings. They show up, open the door and then go in one of two directions. They either stand aside and let the buyer’s agent handle the actual showing of the home, or they commandeer the next thirty minutes; leading buyer and cooperating agent on a room by room tour, pointing out each frivolous nuance in painstaking detail. The buyer’s frozen smile masking (or revealing, if the blithe monologist would bother to notice the glazed over eyes) the fact that mental check-out occurred shortly after exiting the foyer.
You say there are TWO electrical outlet receptacles along this wall? Both GFCI protected? Get the *%&^ outta here!
There may be two schools of thought on listing agent presence at showings, but one is simply promoting the wrong curriculum. When the listing agent inserts himself into the process, he lacks the rapport to understand which items are important to the buyer and the ability to sell the home’s strengths from a position of trust. Further, much as if the seller were in attendance, a buyer is less comfortable exploring a stranger’s home in the company of a stand-in stranger. The idea is to allow a buyer the breathing room to open cabinets and linen closet doors. To stand in the family room in silence for a few minutes and decide which wall is best for the sectional. To visualize his artwork hanging above the bed in the master, or the family gathered around the breakfast table on a lazy Sunday morning. It doesn’t work if an interloping chatterbox squeezes the breathable air out of the house.
Thanks for the fifteen minute demonstration of the pool’s waterfall. I wasn’t sure if I wanted the hassle of a house with a pool … now I’m sure I don’t.
Even if the agent hangs out of sight, the unnecessary presence can trigger an internal stopwatch within a buyer. While he may not care about wasting his own agent’s time (as well he shouldn’t), the stranger factor tends to accelerate the showing. Humans are much more apt to “put out” those with whom they are familiar than the guy off the street. Whether borne of politeness, the discomfort of feeling watched or a hesitancy to reveal any indication of interest to a salesman, the end result is a showing that is less likely to live up to its full potential.
Is the other agent still in the living room? I wouldn’t mind calling my wife to have her come see the house, but don’t want to keep him from other appointments …
Showing quality aside, the other big knock on mandatory appointments with the listing agent is showing quantity. The anticipated control and added security over the showing comes at the steep price of deterrence. Not only do properties that are more difficult to access get thrown to the bottom of the stack by many agents (if an agent is paring 10 potential properties down to 4 to show a buyer, guess which ones get the axe first?), but listing agents are not always available to show the home when it is convenient to the buyer. The ease of access issues with such properties can prove insurmountable. Say a relocating buyer is in town for the day, but your agent is unreachable or booked through tomorrow. You just lost your shot at that buyer. With the number of properties from which to choose currently, the very last thing you want to do is erect needless hurdles.
As to the safety issue, the integrity of your home’s security is always an issue when you open the doors to the general public. That said, with the state of the art electronic lockboxes that are utilized these days (please tell me your agent is willing to pony up the $80 per box cost), a record is kept of all agents who access the premises with clients. Each agent has an individual keypad with a unique code. Every time the key is accessed, that code is stored and available to the listing agent. Further, agent keypads crash unless they are updated every 24 hours. Thus, the threat of the missing or stolen keypad is not the cause for panic that it once was. Put the valuables away for safe keeping, but one licensed professional per showing provides adequate protection without diminishing the quality of the showing, or precluding it outright.
In our experience, the most advantageous means of ensuring high-quality and high-quantity showings is to dial phasers back to “stun” and stay the heck out of the way. Market the property to the nines, accompany unrepresented buyers on tours of the home, but don’t micro-manage the sales force. Draping oneself over a potentially hot showing like a wet sales blanket may appease a needy seller, but it does not serve the interest of the actual goal: selling the house.
by Paul Slaybaugh | May 6, 2010 | Home Selling, Scottsdale Real Estate
There is nothing the Real Estate industry loves more than a good cliche. The more hackneyed the slogan, the more likely we are to roll it into our marketing campaigns. Take the expressions which appear on an old industry stalwart, the sign rider, with frightening regularity. Intended to separate a listed house from the herd, many of the verbal gutterballs instead relegate their hapless charges to the back of the pack. You’ve seen the repeat offenders and mocked not only their stunning lack of originality, but more to the point, their inability to inspire … well … anything within your consumptive little heart.
If you will humor the presumption, I’d bet my license that my attendant impressions from the following gambits jive with those of today’s buyer to the tee.
“I’m Beautiful Inside” is henceforth redubbed “Coyote Ugly from the Street,” or “Look Past My Goiter and Love Me For Me.”
“Very Special!” is not outwardly off-putting, but it carries a stunning lack of associative context. While I happen to be very special to my mother, the man on the street just might cut my throat for the eight bucks in my wallet. If one can’t think of anything in particular that is worthwhile about the property, “Very Special” seems to fit the vanilla bill.
The insecure younger sister to the first member of our list, “I’m Gorgeous!” is a tired refrain from a house who doth protest too much. When was the last time that the person who regaled you for hours on end with tales of a jet-setting fashion model’s life was a true American beauty? It just doesn’t happen. Such a lovely has learned that his/her stunning visage requires no hyperbolic self-aggrandizement. This house, on the other hand, is the eight foot sasquatch with bad skin who won’t shut up about herself.
“Terms” – While agents generally know this to mean there may be some kind of owner financing available, this one is just patently confusing to the general public. Of course there are terms. Whether you are selling a home or Pet Rock, all transferences of ownership come with terms. Such as, “You pay X, I give you house.”
“Voted First On Tour!” – Congratulations, you beat out two other houses for the distinct honor. Seriously, if the agent’s colleagues were so taken with the home, where is the procession of buyers? My first reaction to such a proclamation is to surmise that the home has hung around the market long enough to make it into a tour lineup. Must be overpriced.
“Pool” – What else needs to be said? Some might argue that isolating any one feature of the home is pointless without the rest of the details, but I say who cares how many bedrooms, bathrooms, square feet, etc this home has? It has “Pool.”
“Extra Special!” – Oh snap! Take that “Very Special!”
“Pride of Ownership!” – For every abortion of a house out there, there is a proud homeowner. Shoot, that same owner is likely just as proud of his forty year old kid who still lives in the basement. Forgive me if I don’t lean too heavily on the hubris of persons unknown.
“Original Owner” – The decor has remained hermetically sealed within this time capsule since 1958. Forensic anthropologists will break down the door in the year 2200 to study the long-term effects of asbestos on shag carpeting.
“Won’t Last!” – Wanna bet?
“Look Here >>>” – I love this one. I mean, I absolutely love this one. If you somehow managed to notice the evidently insufficient “For Sale” sign, you are prompted to look at it. By a rider whose visibility requires you are already looking at it. A paradoxical delight.
“Neighborhood Specialist” – Silly me. Here I thought the idea was to promote the house.
I ridicule the use of trite slogans on Real Estate sign riders only because I have been there, done that. I am not exempt from this carnival of pie-throwing derision. At some point along my professional arc, I have tried just about every silly rider there is to get the attention of passersby. Through trial and error, I have come to realize the only one that is consistently effective is a website address. Rather than trying to sell a home in one to three words, it’s best to utilize that space to send prospective buyers somewhere they can get all of the property details. Properly designed, said website will catch your fly in a sticky web of additional buyer tools and resources. The idea is to keep them coming back for more, with your home top of mind all the while. Don’t tell a buyer how beautiful you are inside as they pass by, direct them to a resource which shows them in painstaking detail. Don’t distill the core value of the home all the way down to “Pool.” Funnel them to a place where the pool, 4 bedrooms, 3 bathrooms, upgraded kitchen, hardwood floors, new A/C and half acre lot share equal billing. This is how you best leverage a rider to trade up to its penultimate incarnation: “SOLD!”
Or you can continue to try to reel them in with your “Carpet Allowance!”
Your choice.
by Paul Slaybaugh | Apr 29, 2010 | Home Selling, Scottsdale Real Estate
Never confuse activity with production.
As powerful a five word mantra that a salesperson will ever encounter. When it comes to managing one’s business, the seductive powers of activity are often enough to lead a good REALTOR astray. While the carefully laid out marketing campaign gets left at home, the erstwhile agent steps out with every new expenditure and panacea that gives him a “come hither” glance.
Ignoring another haggard, old saying, “Never sell a salesman,” we are an easy mark. Highly susceptible to the allure of the next great promotional campaign or sales technique that is going to set us apart from the competition, we are prone to affairs of the wallet that stand to disrupt the matrimonial bliss of a productive agent and his lovely business plan.
A forgiving bride, we crawl back to her after every unsuccessful tryst. Whether just looking to spice up a meat and potatoes strategy or a full-fledged case of advertising lust that leads to the delusion that this could be “the next one,” our fundamental methodology will greet us with open arms when we come slink home with tails between legs and hundreds out of pocket. Jesse James and Tiger Woods could learn a thing or two from a salesman.
What does this confessional mean to you as a consumer? In short, everything.
The longer you hang around this industry, the better equipped you are to separate the effective marketing wheat from the gimmicky chafe. Rather than bouncing from product to product in search of an oil strike, we learn to distinguish what works and can be effectively rolled into an existing marketing campaign, and what is an overpriced tramp that has been around more blocks than Heidi Fleiss at Lego Land.
Here at the Scottsdale Property Shop, we won’t gamble with your money. What, you didn’t realize that it was your coin at stake? Now we cut to the quick of it. As all costs of doing business are factored into the fee your chosen professional, in any endeavor, charges, it is an often overlooked component of the value added to the service. We trot out the advertising we will employ to get your home sold, but seldom do homeowners question what is effective and what is superfluous. The more the better, right?
Not necessarily.
As the new world order has proven over and over again, print media has been relegated, by and large, to the realm of the ineffective. Certain exceptions apply, and certain properties must be marketed via publication, but for the most part, newspaper and magazine advertising has become a sinkhole for marketing dollars. Recognizing this, most sharp agents have directed those dollars to more productive venues: websites, blogs, social media, etc.
Some, however, continue to throw big money at both defunct media and unproven new products solely to demonstrate to clients that they are spending money.
See, I’m doing my job! Just look at this splashy front page ad in the Sunday paper! I also just signed up for a program guaranteed to produce more hits on my website (from non-buyers) to increase your home’s exposure!
Super duper.
All of this activity and all of these expenditures are factored not only into the fees you are charged, but come at great opportunity cost. There are only so many dollars in every advertising budget. Those dollars should be spent in a manner that is most likely to produce a buyer for your home. Only experience gained through ample trial and error will procure a buyer in the most direct and inexpensive manner possible. The result? You are not charged exorbinant fees, and your home actually sells.
While it’s true that even the longest tenured agent will look for a little extra-curricular excitement now and again, it shouldn’t be a drunken weekend spree that leaves him devoid of his marketing budget and equilibrium. Those slots and roulette wheels will eat up your sale in no time. New tools are brought into the fold, but only as adjuncts to the old standbys, not at their expense.
Traditional networking and sales techniques married to a strong web presence. And her sister.
Consider it Real Estate Big Love.
by Paul Slaybaugh | Sep 9, 2009 | Home Selling, Scottsdale Real Estate
You’ve been punched. You’ve been cajoled. You’ve been dismissed out of hand as a serious contender. Your corner wants to throw in the towel, but it’s time to look deep inside yourself for that fighting spirit. This is your Rocky moment, and I’m your Mick.
Tempting as it may be to utter “No mas,” in the face of a younger, stronger foe, you as a home seller have your own strengths. Yes, the bank properties have been hammering your rib cage and battering you with low blow after low blow for the last eleven rounds. Every time you regain your composure, another steel-fisted uppercut in the form of a new REO listing shatters the ineffective “pride of ownership” cup upon which you have been so dependant. The referee and the fight doctor are scrutinizing that nasty gash above your eye to determine if you are still able to intelligently defend yourself.
You’re seeing triple, you say? Buck up, Rock, and hit the guy in the middle.
Now that the free-fall in property values has seemingly arrested (much like the hearts of many homeowners this year) across several segments of the local Scottsdale Real Estate market, would-be sellers can take a deep breath and catch their second wind. Even if they are still leery of making the price jump from distressed properties to resale properties, buyers are back in the market. Several straight months of increasing home sales, decreasing inventory and even modest median price increases (really?) indicate this. That’s the good news. The bad news is that most of these buyers are still purchasing the goods on the ground floor (sporting goods, evening wear and foreclosed Real Estate) while the typical mom & pop seller continue to be priced on level four.
Before resale homes start selling at a higher rate, their prices still need to drift a little further South. This is not news. You’ve been pummeled with this unwelcome assertion for the past year. My intent is not to rabbit punch you with the obvious on this day. I’m offering a momentary reprieve from the infernal pessimism (which I have admittedly dispensed with impunity). No more defeatism from your corner, it’s time to talk strategy.
Yes, the bank-owned property on the far side of the ring is a fearsome opponent, but skill and guile can slay the relentless beast. You’ve been getting drubbed over the course of this bout because you are not offering your bigger foe any angles. You’re simply turtling up with that ridiculous price of yours and accepting a merciless beating. To change the tide in this lopsided affair, yes, you do need to get a bit more competitive with your price. Until you get inside the freakish reach advantage of the banks, you’re rope-a-dope tactics will just get you roped and doped.
This is not to imply that you need to match the price of the distressed properties, you simply need to vie for the same buyers. If the banks are on the ground floor, you need to get down to level two. If you can at least mitigate a portion of the huge price disadvantage you face, you have a puncher’s chance to sell your home. Here’s why:
- The bank property across the street will convey to the buyer in “as is” condition. You have maintained your home over the years and will make any necessary repairs, within reason, to appease a buyer.
- The bank property across the street will come with a grand total of zero disclosures. You will provide a potential buyer with a Seller Property Disclosure Statement, Insurance Loss History Report and any other appropriate documentation to give a certain level of comfort to the new owner.
- The bank property across the street may not be able to be financed by a buyer due to its condition. Because you have listened to your Realtor and whipped your home into tip-top shape, you will face no such problem. Right?
- The bank property across the street may require a buyer to order utilities turned on in their name (and pay any applicable deposits for said service) in order to inspect the working components of the home.
- The bank property across the street may ultimately attract multiple offers at its supremely low price. This can benefit you in several ways. For starters, the ultimate sales price is often driven higher than the list price in such scenarios, thus making your case for higher neighborhood values. Secondly, there will be despondent losing bidders for that property that will look, perhaps to you, for alternatives. Lastly, some buyers will become disenfranchised with bank properties after having gone through this multiple offer scenario several times. Eager for less competition and an honest negotiation, some just might set their sights on the slightly higher priced property that can be negotiated downwards instead of upwards.
So there you go, champ. You are far from a hapless tomato can against the oversized Palooka who has been doing the Ali Shuffle all over your face. He’s a one-trick pony. Take away the huge price haymaker and the kid is a regular Glass Joe. If you have the moxie and the wherewithal to get your price just a bit closer to the bank’s, you have the arsenal to pull off a stunning upset and walk out of the joint with the title. The title of “former homeowner,” that is.
Now put your mouthpiece back in, get off that damn stool and get in there and fight!
by Paul Slaybaugh | Jul 29, 2009 | Home Selling, Scottsdale Real Estate
“Someone can always make me an offer.”
If there were six words I could erase from the murky bog of a seller’s mind, it would be these. Within this seemingly innocuous sentence lies a terrible sickness. A Bubonic Real Estate Plague, if you will. The black death of a home sale.
There is something to the thought that a target buyer exists for every property. That the pre-qualified needle in the haystack will know a property is “the one” upon first sight. It is another matter altogether to make the flying leap that said buyer will, in turn, disavow all semblance of self-preservation and dive onto the hand grenade that is an overpriced house.
The underlying root of the weed of denial that infests a stubborn seller’s mental garden is the unflinching notion that “the right person” will come along and “fall in love with the house” just as he or she once did. Of course, when this simplistic rube comes along and falls head over heels in love with the one of kind abode, he won’t be able to reach into his wallet fast enough to pay whatever outlandish premium is required. Never mind that you are competing directly with homes that are 1000 square feet larger. Never mind that your home has a deficiency in location or condition. You have a pantry.
“Priced grossly above recent comparable sales? 1368 days on the market? Where do I sign? I MUST HAVE this house!”
Here is the thing, gang. Yes, someone can always make you an offer. If they see your house. If you are priced so far above and beyond the current market value of your home, however, the “right” buyer will never even see you on that outrageously lofty perch. Oh sure, you may get some traffic, but those suitors will end up buying one of the larger, nicer competing properties. The buyers looking in your size and amenity range are looking at properties thousands below your asking price. Kind of hard to make an offer when they don’t even know you exist.
And you know what? Even if they stumble across your place, why would Mr & Mrs Right make an offer on a home priced at 500k when they can make a more realistic offer on a similar home priced at 400k? It’s more than just counter-intuitive. A buyer would have to have been huffing spray paint in a non-ventilated storage room for the past 72 hours to pursue yours. If the “right” buyer is defined by constant drooling and a complete lack of interest in the alphabet past the letter “j,” you might want to rethink your strategy. The idea is to cast as wide a net as possible to find a keeper, not to dangle the bait 50 yards above the surface of the water and wait for a fish on a pogo stick to jump right into the boat.
The wise seller rolls out the welcome mat for an army of potential suitors. The foolish seller gives the assembled masses the finger as eagle eyes scout for that one, perfect, dumb-as-a-ham sandwich buyer.
Yes, someone can always make you an offer. Here’s mine: Fish or cut bait.
If you are ready to do some serious bill fishing, I’ve got the boat fueled up and ready to go. Plenty of Dramamine, too. We’ll chum the waters with a competitive price and superior product to land the biggest damn shark the ocean will yield.
If that doesn’t sound like your kind of tea party … better to wait at the marina for the seas to change. In another decade or two, the tides will surely rise high enough to deposit the price you covet.
