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 are what build the company reputation; it is the calling card to success.
Listing signs are what makes the phone ring, generate leads and builds the companies market share through solid name recognition. You must ask yourself -- is that still true -- when we are 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 if 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 does not bode well for future business.
Impatient home sellers can soon become a liability if they start calling in everyday irate that they are 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.
Lucky for all of us there is a way to avoid this. The solution has been known by successful agents for a long time. Why not only 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 and a while. This may entail going on 10 listing appointments, but only taking 2 listings, but take the 2 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 where have determined the motivations of the seller. The next part of the equation is to list only homes that are updated, clean, and in good repair. The homes you list need to have great curb appeal and priced very competitively to market. I call these listings 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 do you want to take the listing? There is no point to list 10 million dollar homes if only 1 has sold in the last 2 years. Know your local real estate market inside out! There is a reason why some agents are big producers and others are 'wannabees.' Big producers understand the laws of supply and demand, and strategize. In simple terms...we must fully comprehend what is hot, and what is not. We must have a litany of questions that must be answered before we say, "Sure I can list you!"
Some questions may be:
- What price ranges are most active? Why?
- What products are in demand -- single family homes, condos, town homes etc?
- How many months / years of supply available?
- Are sales increasing or decreasing?
- Are homes appraising?
- Are prices stable or falling?
- Seller's contribution to buyers closing costs?
- 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 will be in a great position to work with serious and motivated sellers that will sense immediately that you are different from other agents. They will work with you after you have 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 will attain your goal. These sellers will also become your best advocate for future business and referrals. Otherwise you are just wasting your time, reputation, and resources. Oh and one last thing, only list them on your terms.