Ever since a recent appointment I've been thinking a lot about first impressions. Evidently buyers make their minds up about a house within 18 seconds of seeing it (weather or not it's in the "running"). I'm curious about sellers and what their average time frame is for making a decision when interviewing agents? A question I've learned to ask during listing appointments is "What have your experiences been with other agents? Have you had positive ones or negative ones?" You would choke on some of the answers I've heard.
Joni and I met with some prospective clients a week ago. We had been to their home, asked them lots of questions and taken copious notes. We agreed to meet about a week later to go over a comprehensive cost market analysis. We knew we were competing with at least 2 other agents. We wanted it, but we weren't willing to tell the sellers that their home was worth more than it was. When we met again, we could tell that they weren't thrilled with the price range we had come up with. The husband grilled us until we had answered every last question to his satisfaction. Afterwards, he mentioned that one of the agents they interviewed probably wasn't a good candidate. He said that she had walked in the door and promptly asked "What do you owe on this house and do you have money to bring to closing?" She continued dropping bombs, "You realize this market is terrible, nothing is selling...and you are in a bad school district". WOW. I can't believe she didn't tell the husband that his hair was thinning and that his wife needed dental work. Turns out she doesn't have any other homes currently on the market (surprise). Another agent recommended that the husband and wife find a different place for their kids to live while the house was for sale, and a past client shared with us that their agent told them that selling their house really wasn't her top priority because she had a new boyfriend?! Evidently she also stooped by late one night to tell them that she and her new boyfriend had just given each other a hot stone massage...and that it had been amazing. She got the boot.
Just imagine how stressful it is to invite a stranger into your home so that they can pick it apart and tell you that it's worth half of what it was 3 years ago. The grace, sensitivity and compassion that we communicate in those first few encounters is critical. I don't care what your sales statistics are like. If you want your business to thrive you have to be able to put prospective clients at ease immediately. Barging in and asserting that you are the Alpha may work with people who are inclined to pay for spankings, but anyone familiar with what good customer service is, will be instantly turned off.
There has been a subtle shift in the market. A year and a half ago every agent was groaning about how nothing was selling. Well, in case you haven't noticed, inventory is slowly creeping downwards and so is the average market time for sales. Joni and I have been on 3 appointments lately where we've been competing with other agents for the listing. All 3 of the potential clients were referred to us by happy past clients, but they still felt the need to interview multiple agents. That tells me that sellers are becoming more educated consumers and as far as I am concerned higher standards are better for everyone.
Tuesday, April 19, 2011
Wednesday, April 6, 2011
Don't believe the hype!
I am asked at least several times a week, "How are you doing...how's the market?". People often whisper the question while grasping my arm and and staring into my eyes intently. They seem almost certain that because I'm a realtor I'm on the verge of a nervous breakdown, that my family is living on top ramen and that the family dog is headed for the soup pot (our one year old lab is in danger of ending up on the menu...but not because we've run out of other options). While it is true that this housing market is a far cry from the extreme sellers market of 2007. Ill take this over the uncertainty in 2008 and 2009 any day. I'm convinced that we are experiencing the equivalent of "aftershocks" right now. We've already had the big free fall and its going to be bumpy for a while. However, the most important factor in making the decision to buy or sell a home right now shouldn't be the latest report on housing trends on CNN. We need to focus on our own "personal economies" as homeowners and what the specific needs of our clients are as agents.
I had a client last year who wanted to sell his primary residence because he was convinced the market was going to continue to drop. He wanted to sell his home so that he could rent and then buy again when the market was improving. I thought he was insane and told him so (he also wore white tube socks with black loafers and running shorts...I should have known). Why sell near the bottom of the market and wait to buy again when housing prices are going up? He prided himself on reading everything he could get his hands on about real estate...and that was a big part of the problem. He was reacting out of fear to too much negative and conflicting information. I can understand his paranoia. I was listening to the radio several weeks ago and in the span of 2 hours I heard completely contrasting reporting on the housing market. One show featured a panel discussion on the Seattle market. Most of the panelists were fairly optimistic that we had already hit "bottom" and that there were amazing deals to be had. They also remarked that Seattle and Tacoma are slated to be some of the first "rebound" markets in the nation. An hour later I was listening to some crab apple talk about how real estate is NEVER a good investment. He used the price of homes in Amsterdam as compared to inflation there for the last two centuries as an example. There are as many opinions out there as there are people....and bad news gets people's attention. The problem with my client was that he wasn't differentiating between his "personal economy", his local market and national market trends. He had a young family, his home was in a great location close to good schools and work. His home had had enough space for everyone and it was fairly new. I also happened to know that he was someone who paid down his mortgage aggressively and that he had a lot of equity in his house. Selling it was not a sound financial decision.
As agents, a big part of our job right now if focusing on client's individual needs. There is no "one size fits all". The market isn't gloom and doom for everyone. A significant portion of the people my partner and I are working with right now are move up buyers. These are people who have been in their homes for at least 5 to 10 years and they can afford to take a hit on their price so that they can buy "up" and take advantage of great prices and low interest rates on their next home. They are thinking long term, which is what most of us need to be doing. People will always need to buy and sell. Life circumstances change no matter what the economy is like.
I think that the fear of the unknown is much more dangerous than what is actually happening in the housing market. Yes, there are people who have been completely sucker punched by the economic downturn, and short sales and foreclosures will be with us for a while. However, there are also plenty of financially stable buyers and sellers who simply need to focus on the task at hand. They need grounded, well informed agents who can advise them and help them get from Point A to Point B. As agents we set the tone as soon as we walk through the door. So, when people ask me in a worried tone..."How are you doing...how's the market?" I tell them the truth. I tell them that I've never worked harder in my life and that I'm really busy because plenty of people are still having babies.
I had a client last year who wanted to sell his primary residence because he was convinced the market was going to continue to drop. He wanted to sell his home so that he could rent and then buy again when the market was improving. I thought he was insane and told him so (he also wore white tube socks with black loafers and running shorts...I should have known). Why sell near the bottom of the market and wait to buy again when housing prices are going up? He prided himself on reading everything he could get his hands on about real estate...and that was a big part of the problem. He was reacting out of fear to too much negative and conflicting information. I can understand his paranoia. I was listening to the radio several weeks ago and in the span of 2 hours I heard completely contrasting reporting on the housing market. One show featured a panel discussion on the Seattle market. Most of the panelists were fairly optimistic that we had already hit "bottom" and that there were amazing deals to be had. They also remarked that Seattle and Tacoma are slated to be some of the first "rebound" markets in the nation. An hour later I was listening to some crab apple talk about how real estate is NEVER a good investment. He used the price of homes in Amsterdam as compared to inflation there for the last two centuries as an example. There are as many opinions out there as there are people....and bad news gets people's attention. The problem with my client was that he wasn't differentiating between his "personal economy", his local market and national market trends. He had a young family, his home was in a great location close to good schools and work. His home had had enough space for everyone and it was fairly new. I also happened to know that he was someone who paid down his mortgage aggressively and that he had a lot of equity in his house. Selling it was not a sound financial decision.
As agents, a big part of our job right now if focusing on client's individual needs. There is no "one size fits all". The market isn't gloom and doom for everyone. A significant portion of the people my partner and I are working with right now are move up buyers. These are people who have been in their homes for at least 5 to 10 years and they can afford to take a hit on their price so that they can buy "up" and take advantage of great prices and low interest rates on their next home. They are thinking long term, which is what most of us need to be doing. People will always need to buy and sell. Life circumstances change no matter what the economy is like.
I think that the fear of the unknown is much more dangerous than what is actually happening in the housing market. Yes, there are people who have been completely sucker punched by the economic downturn, and short sales and foreclosures will be with us for a while. However, there are also plenty of financially stable buyers and sellers who simply need to focus on the task at hand. They need grounded, well informed agents who can advise them and help them get from Point A to Point B. As agents we set the tone as soon as we walk through the door. So, when people ask me in a worried tone..."How are you doing...how's the market?" I tell them the truth. I tell them that I've never worked harder in my life and that I'm really busy because plenty of people are still having babies.
Friday, April 1, 2011
April Fool
April Fools day seems like the perfect beginning for a blog about real estate. God knows how many of us fret over getting our license only to discover that it in no way prepares you for the pummeling you receive your first few years in business.
In 1991 I graduated from Art School with a degree in Ceramics. If you had asked me then what I’d be doing 20 years later…the last thing, the absolute last thing I would have guessed would have been selling Real Estate. I have been a realtor for 8 years now and I truly understand the statement, “You don’t try out real estate, real estate tries you out”.
Kids dream about becoming firefighters, astronauts, nurses, veterinarians…I have never met anyone who laid awake at night dreaming about growing up to be a realtor, “I can’t wait until I’m old enough to hold my very own open house. I’ll wake up and bake cookies, and sit there…by myself…for hours and hours, with no cell phone reception…at the end of a long dirt road…in a shack…in Gorst”.
We are our client’s confidants, financial advisors, marriage counselors, babysitters, grounding rods, cheerleaders, not to mention real estate experts...Oh and also marriage counselors. We help people navigate the biggest financial transaction of their lives. It can be a bumpy ride.
This blog is for agents who need some comic relief. It is also for people who are looking for information on how to screen agents, get a house ready to sell and how to pick a home and/or agent to represent you as a buyer. This blog is also for those rare individuals who have to work with other humans in any capacity. People are crazy, and dealing with the public can grind you down to a nub. I would like this to be a bright spot.
In 1991 I graduated from Art School with a degree in Ceramics. If you had asked me then what I’d be doing 20 years later…the last thing, the absolute last thing I would have guessed would have been selling Real Estate. I have been a realtor for 8 years now and I truly understand the statement, “You don’t try out real estate, real estate tries you out”.
Kids dream about becoming firefighters, astronauts, nurses, veterinarians…I have never met anyone who laid awake at night dreaming about growing up to be a realtor, “I can’t wait until I’m old enough to hold my very own open house. I’ll wake up and bake cookies, and sit there…by myself…for hours and hours, with no cell phone reception…at the end of a long dirt road…in a shack…in Gorst”.
We are our client’s confidants, financial advisors, marriage counselors, babysitters, grounding rods, cheerleaders, not to mention real estate experts...Oh and also marriage counselors. We help people navigate the biggest financial transaction of their lives. It can be a bumpy ride.
This blog is for agents who need some comic relief. It is also for people who are looking for information on how to screen agents, get a house ready to sell and how to pick a home and/or agent to represent you as a buyer. This blog is also for those rare individuals who have to work with other humans in any capacity. People are crazy, and dealing with the public can grind you down to a nub. I would like this to be a bright spot.
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