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Bill Thompson, REALTOR®

Market Analysis – The Sequel

By: Bill Thompson, REALTOR®
Thursday, December 27, 2007 3:29 PM

About 11 months ago, while doing a listing presentation, this statement came from my lips, “Since the market fluctuates constantly, I will not just do an initial market analysis, but I will do one each month to be sure your home stays in a competitive position in the market. We can adjust our asking price accordingly, if you agree to do so.” This seller was a man who was very concerned about the fluctuating market and wanted to get top dollar but also wanted to sell as quickly as possible. This is why I mentioned this in the listing presentation. “I think the asking price we both agreed to today is right for where the market is today, but we may be looking at a different market in the next few months,” I added.

 

He said I was the 3rd agent he had interviewed, but the first to say he’d do a repeat market analysis as necessary. I am sure any good agent would do this, but sometimes we forget to mention the services we provide. I got the listing by the way, and sold it after 80 days on the market with one price adjustment (down) at about day 60. The price adjustment was no big deal since we had discussed that possibility and in fact I had promise to keep him on top of where the market was so he could get his house sold.

 

Of course, I have done a repeat market analysis on many listings over the years but do not remember making that statement part of my initial listing presentation, not until this listing came along. Now it is part of my routine. I now see why some clients think we are making excuses when we suggest a price reduction several months into a listing. If we do not prepare them for this possibility it just looks we “messed up” in our initial market analysis.

 

It might not be a bad idea to list everything we do for our clients and spell it out in detail verbally and/or in writing when making a listing presentation or buyer representation contract. Some things we take for granted are often a big deal to a client that does not understand all that we do.

 

 

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Comments

Mike Farmer
Member Since '03

Mike Farmer said:

I couldn't agree more.

December 27, 2007 5:40 PM
Gregory Bain
Member Since '03

Gregory Bain said:

Bill, I am all for invoice of performed tasks - just like the attorney does with his client. Talk on the telephone = $ charged. Make copies of documents = $ charged. Run internet or print advertising = $ charged. If you come across a software that does this easily please let me know. I am trying to do it with Outlook and jounal entries but the learning curve is costly.

December 27, 2007 5:50 PM
Bill Thompson, REALTOR®
Member Since '07

Bill Thompson, REALTOR® said:

Greg - I use MS Excel for this sort of thing. I think it is a good idea.

December 27, 2007 6:04 PM
Gregory Bain
Member Since '03

Gregory Bain said:

Bill, I think a spread sheet might work if it had hidden codes to the associated tasks. IE, showed listing 45 minutes @ wallmart $6/hr customer billed $4.50. Heck, I might be able to win over those Zillow freaks and become a FisBo Killer.

Anyway, I'm with you Bill. We need to show the clients why it costs what it costs to sell a home. Invoice is one quick answer I've been trying to master.

December 27, 2007 8:10 PM
Connie Clark
Member Since '07

Connie Clark said:

Bill:

I agree that spelling out everything in detail is a great idea and I have incorporated this into my listing presentation. Too many sellers have no idea what things cost (or that they cost at all)...so I have two extra sheets -one lists the actual marketing plan and what that costs and another sheet shows where "all those commission dollars go" - as a whole...since they think it all goes back to me...I want them to know what really happens to the money.

It's very interesting to see the surprised looks by so many who had no idea what it costs to run our business!

Thanks for the reminder.

Connie

December 27, 2007 9:22 PM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

I just did that myself today, Bill -- great minds!

"The market value on day one was x, based on activity at that time.

If on day 45 new comps show it's x, we need to make it x too -- or < x.

At or below comps (comparables) and comps (competiton) to sell."

An appraisal is only good for one day. So are comps.

December 27, 2007 9:28 PM
Lonn Dugan
Member Since '05

Lonn Dugan said:

Gregory:  The Real Estate Management Program called Top Producer will allow you to track and record expenses or cost values for every step in your seller service plan.  It will print very nice reports that show everything you did for the seller and the value you assign to each step.

You start with one of their marketing plans and add your own steps.  Mine showed every action taken.  You can mail it to them with letters about staging, pricing, recent sales, or new CMA's

The first week might look something like this:

Deliver Sign and Lockbox

Schedule Photography

Visit Home for Photography

Complete Paperwork

Turn Listing in to Office

Enter Listing to MLS

Begin in office promotion to other agents

Email Top Producing Agents and Registered Buyers (via MLS)

Publish to Personal Web site

Create Virtual Tour

Publish Listing to Realtor.com

Publish Virtual Tour to Realtor.com

Mail Seller a Proof sheet of MLS Listing

Mail Just Listed Card To nearest 100 homes

Mail Seller Proof Sheet from Realtor.com Listing

Call Neighbors To Discuss New Listing

Syndicate to Yahoo, Google, Craigslist

Place Ad in Homes Magazine

Mail Seller Proof of Homes Ad

Call Seller to Discuss Progress

Call and Showing Activity

Mail Seller a Proof of Web Site Entry

Report Any Showing Feedback

It also tracks events like

Received Buyer Call

Schedule Showing

Call showing agent for feedback

Receive Showing Feedback

Every entry you add after the standard program is assigned - such as call from buyer, or call from seller, or ??? is date stamped and saved for easy printout later in chronological order.  

The real beauty of this program is that you decide how many days into the listing each activity is to be performed, and what value you place on it.  You can then attach the steps and costs to every new listing with a couple clicks.  Once you turn the marketing plan on, it reminds you each day what steps to take in an activities list.  

All of these daily activities are merged into your Top Producer Calendar and Reminder System, with activities from your prospecting plans, and etc, so each day the program can print all the letters you need to send with one click.  It also sets reminders for you to make the prospecting calls, seller service calls, and etc.

The marketing report is very handy at price reduction time, or to mail to seller if you get one of those calls.... "What are you doing to sell my house?"  Of course, those calls never happen ;)  

But just in case it does, you end up looking good to your seller.

Finally, this transaction journal can serve you well if a seller or buyer ever starts making noise about legal liability.  I had a short sale seller once who needed a report for his attorney about what we had done to try to sell the house.  The bank had declined the short sale, and seller needed an attorney to take up communication with the bank.  The implication was maybe I had not tried hard enough or been diligent.  

Click, Print, Mail!  

December 28, 2007 6:34 AM
Corie Seymour
Member Since '06

Corie Seymour said:

Good info Lonn.

Thanks

CS

December 28, 2007 8:41 AM
Gregory Bain
Member Since '03

Gregory Bain said:

Lonn, thanks for the endorsement of Top Producer. I have not been very open minded about their product. It seemed they kept improving and charging more and more for the upgrades. Every time a sales person would start to tell me about the features - I would run from the price. I guess it is time to get over the cost and take a fresh look. Thanks.

December 28, 2007 3:40 PM
Gary Szolosi
Member Since '03

Gary Szolosi said:

Greg, I think that top producer is a great product but I am not sure that is the question you really have, since it seems to me the true question is how to sell a property in a tough market. Proving how hard you work may justify the cost but doesn't get the home sold. Bill's suggestion is to let them know during the presentation that we have homes that sell and those that don't. Those that do are those that are priced to the market! It is a fantastic way to present the truth and if it sells, you never have to justify your worth! Greg don't make it more complicated that it need be. Keep it simple and every one can understand. No programs, no billing, just sell the home and everyone live happily ever after! Bill great presentation method! One of the best I have seen on Relib!

December 28, 2007 6:18 PM
Bill Thompson, REALTOR®
Member Since '07

Bill Thompson, REALTOR® said:

Gary, Well said! I know that it is best to tell the hard truth from the start, rather than promising too much in the listing presentation and then having to "explain" away the bad news later.

December 29, 2007 7:17 AM
Gregory Bain
Member Since '03

Gregory Bain said:

Gary, you are correct. I moved off topic and Bill does have a great listing presentation worth sharing. Getting the house sold is the most important objective and can only be accomplished when we work smart.

But, the top producer seems like a smart tool.

December 29, 2007 8:25 AM
Shelly  Constantz
Member Since '07

Shelly Constantz said:

Gregory, you also set up to email your client a link to a "special report" area, and they can check and see the activities that have been done on their home, and you can add items with a "cost" amount attached to it.  So they also see that you are spending your time (worth money) and you are actually spending money....

shelly

January 2, 2008 7:54 AM

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Bill Thompson, REALTOR®
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Bill Thompson, REALTOR®
Member Since '07

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