The Right Way to Sell Your Condo “For Sale By Owner” – Build a Bridge
Categories: About Realtors, For Sellers, Hoboken Condos
What is the Problem with For Sale By Owners?
“For Sale By Owner” are not the favorite words of the real estate agent. Yet, to save the commission that they would have to pay an agent, some sellers choose to go “FSBO”, as it’s called. There are two ways to do a FSBO. One, is for the owner to do everything on their own. The other, smarter way is for the owner to pay to have the property listed on the MLS and to be willing to compensate the agent who brings a buyer – a half-FSBO, if you will. Both present some real challenges but, if done well, may indeed save the seller some dough.
I could list many mistakes I’ve seen sellers make when trying to sell on their own. For example, the other day, I called a half-FBSO seller to make an afternoon appointment to show her condo to my buyer. She asked if we could come after 6:30 at night because she works during the day and wouldn’t be home to let us in. My buyer was meeting me at 1pm in the middle of the week to look at a number of properties. She was not going to make a special trip to see this one FSBO unit at night when she could see all the others during the day. Right there – the seller has missed an opportunity because of a lack of access to the property. As I often tell my sellers – if the buyer can’t see the property they aren’t going to buy it. That’s just one small example. There are many others. I am the first to admit many of the mistakes on this list are made by real estate agents as well as FSBO sellers. That is a whole ‘nother article. Of course I realize that not every item on this list applies to every seller but many do. FSBO sellers:
- don’t know how to stage a home
- don’t know how to price a home
- don’t know how to justify the price they pick based on the comps
- don’t know how best to describe a property to make it most appealing & differentiate it
- don’t know how to take good photos of the property
- didn’t even think of taking a video of the property
- don’t know how to speak about the property objectively, they are emotionally attached to their property
- don’t have any idea how to market their property on-line
- make buyers uncomfortable when they are at the property as the buyer views it
- are much more difficult for the agents to deal with when making appointments for buyers
- are not often professional, experienced negotiators
- don’t have much experience with home inspection or appraisal issues
- don’t know what to do when the deal starts to fall apart
There are lots of reasons why about 70% of properties that start out as FSBOs end up being listed with an agent when they don’t sell. I’ve read statistics that claim that properties sold with the representation of an agent fetch a higher price than those sold by the owner. The differential might actually pay for the commission, and then some.
In today’s environment, there are a real number of sellers who bought at the height of the market and even if they were to do absolutely everything 100% right, no matter what, they are going to sell at a loss. Sometimes it’s a big loss. It is very understandable that they are going to try to minimize the loss and they often feel that saving the commission is a viable way to do that. I’ve been involved with some of those sellers personally. They have spoken with me about listing their property but decided for economic reasons they had to give it a try on their own. When that is the case and the seller discusses it with me honestly and openly I can completely understand and empathize with their predicament. In fact, I will do what I can to try to help them avoid some of the pitfalls I listed above. That is the key, potential sellers – be honest.
If you think you can pick my brain and then try to sell your home on your own without me knowing, that shows how little you know about the Hoboken real estate market. Hoboken is a small town in many ways. If you are straight with me, or any other reputable, successful agent, they are going to respect you for it and be more than willing to help you. Chances are, you may end up listing with them eventually so you shouldn’t be burning bridges, you should be building them. (Calatrava’s pedestrian bridge in Bilbao is one of my favorites).
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Finding a Great Realtor May Be Difficult, But Spotting a Bad One is Easy
Categories: About Realtors, Hoboken Condos
Five Questions You Should Be Asking When Interviewing a Hoboken Realtor to Represent Your Interests
1. Do You Have a Smartphone?
I actually spoke with a agent the other day who bragged that he did not own a smart phone. He said he only checked his email when he felt like it. That kind of swagger may work if your buyers and sellers are as technology-resistant as you are, but the majority of today’s buyers and sellers are very tech-savvy and expect instantaneous response. The days of 24 hours being acceptable to respond are over. Now, if someone emails me and I don’t reply within an hour, they’ll find another agent who will. If you’re a seller and your agent is stuck in the mesosoic era you’re going to be hurt by that and miss out on potential buyers. If you’re a buyer and your agent isn’t updating you with new listings and current data and market information, you may miss out on your dream home.
2. Do You Have a Website, a Blog, a Facebook page and Do You Tweet?
Most agents utilize at least one of these technologies, but “just one” will not cut it in 2011. Sellers’ agents should be utilizing technology to reach buyers through as many avenues as possible. Buyers’ agents should be sprinting to get new listings into their customers’ hands before another buyer snaps up the property. If your agent advertises your home for sale by sending a “Just Listed” postcard, that postcard is more likely to wind up in the recycling than in the hands of a qualified buyer. I guarantee that qualified buyers ask their tech-savvy agents to text them the second new listings hit the market. Those same agents tweet new listings to their home-hunting followers.
A facebook page is a great place for an agent to share information about the market and the local community. Twitter is a way for an agent to connect with his or her audience of followers. If your agent’s idea of using twitter is to spam followers with nothing more than tweets of their own listings, and they use facebook to post those very same listings on their personal profile page – they really don’t get social media. Find an agent who does.
3. How Many Listings Do You Have? (More is Less.)
When an agent tells you they currently have 45 listings, your initial reaction might be “Wow, this guy (or gal) must be some super-duper agent!” What it really means is that he probably has a team of people working for him, and that he devotes very little of his own time towards his customers after that listing agreement is signed. If you’re comfortable dealing with the junior team member or non-licensed staff assistant then this type of arrangement may be fine for you when you sell. However, if you want the agent you hired to take a hands-on role in selling your most valuable asset, you should seek someone with a manageable number of listings who personally sees to all aspects and details of your transaction throughout the entire course of the deal. How much personal attention can you reasonably expect to receive from an agent serving 45 masters at once?
4. Do You Work Exclusively with Buyers, Sellers or Both?
Many agents are specialists. Some work almost exclusively with buyers, while others only work with sellers. (There are plenty who specialize in rentals too, but that’s a blog post for another day.) They will pitch themselves to you as an “expert”, but in actuality they’re more like outfielders who can only hit and can’t field. (Check out this HREN blog post from April ‘09 about “5-Tool Realtors.”) Working with buyers informs an agent of what buyers look for when they shop for a home. The agent gets to see the buyers’ reaction to different home features and can see firsthand mistakes other sellers have made which turn the buyers off. Similarly, working with sellers teaches a realtor what special features need to be pointed out to buyers and what pitfalls are to be avoided. If possible, try to find a realtor with a balanced perspective who understands the viewpoint of both the buyer and the seller or work with a team of realtors whose skill sets and experience compliment each other.
5. References May be Biased, but Photos Don’t Lie
If you ask an agent for references, do you think he’s going to tell you to call the guy who thought he did an awful job? Of course not! References are often meaningless when produced by the subject of the referral. Instead, ask the agent to email you links from the MLS to all his listings (not a sampling – all of them) for the past year. Then read the descriptions and look at the photos. You’ve heard me complain in the past about terrible photos and poorly worded descriptions. Look at his actual work and determine for yourself if the listings show the degree of professionalism and attention to detail you would demand when selling your home. Be wary if it takes him days to honor your request. Proof reading, deleting typos and swapping out bad pictures takes time. Sending links from the MLS is easy and takes 5 minutes max – if you don’t get an email by the next day at the latest, he may be doctoring his past work. While you are at it, ask for samples of all his marketing materials: flyers, signage, blog posts, market analysis, facebook posts, tweets, property websites, property videos, trulia, zillow, realtor.com, craigslist and any other internet postings he or she will be doing for you. Yes, you should expect all of these services to help market your home.
This isn’t the first time I’ve written about choosing the right realtor, and offered advice on asking the right questions when buying and selling a home. Check out these gems from the HREN vault:
The 10 Worst Things About Hoboken Realtors
The 3 Most Important Questions to Ask When Selecting a Hoboken Realtor
The truth is, if you want to find a good realtor, start with one whose judgment you trust. Someone who knows and understands both the Hoboken real estate market and the economics of the real estate market in general. Someone who has a proven track record of excellence but who is not afraid of technology and who keeps up with the latest trends. Someone with a well-rirounded financial, legal, economic and business-related background. Someone who blogs and writes all of his or her own content and never relies on a paid, third-party service for content. Someone who never rips off her ideas from other agents and who believes in honesty and transparency. Finding a great agent doesn’t have to be difficult at all. Sometimes the answer is staring right at you.
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Attention Hoboken Real Estate Agents
Categories: About Realtors
Get Real, Lazy Realtors
If you think you are going to comment on my blog, pitch your services and provide your links and contact information to my readers – guess what? You are wrong. I have not been doing all this work for so many years in order to provide you with a forum to advertise for free. Please start your own friggin’ blog. If you wish to contribute your insight and participate in the discussion in an appropriate manner, as several agents have done, your comments are always welcome.
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