Jim Crawford
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Editor’s Note: Real estate columnist Jim Crawford (ABR) is a Sales Associate with RE/MAX Greater Atlanta in Roswell, Ga. He has been with the RE/MAX network since 1993 and is a 30-year real estate veteran who regularly writes for Realty Times.
Many brokers are of the false assumption that listings are where the money is made. The saying goes, “Those that list, rule the market!”
After all, listings build a company’s reputation and provide the calling card to success.
Listing signs make the phone ring, generate leads and build the company’s market share through solid name recognition. You must ask yourself if that’s still true when we’re in a market where listings are on the market for months and years instead of days?
We must step back and ask: Are all listings productive in a positive sense, or are they a drain on your resources?
Times have changed. Where agents once boasted their production was from their sphere of influence, they now have to acknowledge unsold listings can work against you. Unhappy campers may cause more ill will by spreading the word that you and your company are ineffective. If that happens, that doesn’t bode well for future business.
Impatient sellers can soon become a liability if they start calling everyday, irate that they’re not happy campers. If they start bad mouthing your services to the neighbors, your career is over.
Please keep in mind that a “For Sale” sign on an unsold home for over a year isn’t a positive marketing image. Some may view those real estate signs with sarcastic humor.
Luckily for all of us, there’s a way to avoid this. Successful agents have known the solution for a long time: List homes selectively. That’s right! Your way or the highway! Instead of listing everything at any price, be a professional and say “no” once in a while.
This may entail going on 10 listing appointments, but only taking two listings that will sell. The reason for this is simple: This market is not a market for tire-kickers that just want to see if they can hit a price point.
That means you only list homes owned by determined and motivated sellers. The next part of the equation is to list only updated, clean homes that are in good condition. The homes you list need to have great curb appeal and be priced competitively to market.
I call these homes market-ready listings. Only when all the work is complete do they go on the market. My real estate career dictates there are no exceptions to this rule.
The last component of this strategy is research. Luck isn’t a plan for success in real estate. Before you list, know what will sell, and your odds of selling. Ask yourself if you want to take the listing. There’s no point to list $10 million homes if only one has sold in the last two years.
Know your local real estate market inside and out. There’s a reason why some agents are big producers and others are wannabees. Big producers understand the laws of supply and demand, and they strategize. In simple terms, we must fully comprehend what’s hot, and what’s not. We must have a litany of questions answered before we say, “Sure, I can list your home.”
Some questions to ask:
- What price ranges are most active? Why?
- What products are in demand – single-family homes, condos, town homes, etc.?
- How many months or years are listings staying on the market?
- Are sales increasing or decreasing?
- Are homes appraising?
- Are prices stable or falling?
- Are sellers contributing to buyers’ closing costs? If so, how much?
- What’s the average original list price to sales price ratios?
- What are the sellers realistically going to net from the sale?
- What time frame will it take to sell a home?
If you know your market, you’ll be in a great position to work with serious and motivated sellers who’ll immediately sense that you’re different from other agents. They’ll work with you after you’ve briefed them on your market assessment.
Substantiate your presentation with facts. You still have to be realistic with the sellers – and yourself. It may take a while, but you’ll attain your goal. These sellers will become your best advocate for future business and referrals. Otherwise, you’re just wasting your time, reputation and resources.
