As I mentioned last week, working with buyers can be very exciting and often time-consuming. When the buyer finally decides to purchase, it can be extremely rewarding for both the buyer and the Realtor. Equally as rewarding is working with a seller and assisting them with the sale of what can be possibly their largest asset. As I just mentioned recently to one of my clients, I treat their property as if it were my own, and I take extreme pride in listing and selling their valuable asset.
When someone decides to sell a property, they typically choose to interview at least three agents. When the call comes, a Realtor must be prepared to make a listing presentation to discuss price and advantages he or she may have over the rest of the field. During one of my presentations, a seller asked me to recommend two other Realtors for him to interview. I thought to myself, “that is a tough request.” Do I recommend two other top agents and risk losing the listing, or do I recommend two retired agents and hope they are out golfing or fishing when the call comes? The statement I make at the beginning of each listing presentation is that the seller should choose a Realtor and a price independent of one other. In other words, select a Realtor with whom you are most comfortable, and then decide on the listing price of your property.
Advertising is a key component of a good listing presentation. In today’s market, where there are fewer buyers than before, your listing needs to be advertised more than ever. The old saying, “If you list it, they will come,” does not apply in today’s high-tech world. Actually, that’s not an old saying I just made it up. Traditional methods of advertising are still extremely important. These include a yard sign, newspaper ads, emails, postcards and flyers. However, in our new age of technology, the internet, and television advertising are becoming even more important. In fact, the National Association of Realtors claims that 77% of new buyers begin their search on the internet. Therefore, having your listing on as many websites as possible is imperative. Most agents and real estate companies have their own websites where you can find all listings currently on the market through Internet Data Exchange (IDX). This allows all agents to advertise everyone’s listings provided they advertise the Broker’s Reciprocity agreement. This must be why I have been getting so many calls from buyers looking for lots in Lehigh Acres!
The main component of a listing presentation is the price. In fact, during my listing presentations, I sometimes catch the seller not listening to the marketing portion of my presentation while he is thumbing to the back of my book looking for the recommended price. It is important that the listing price is based on sales of comparable properties in the past sixth months. Although Realtors are not allowed to prepare appraisals unless they are Certified Appraisers as well, we can prepare a Comparable Market Analysis (CMA) for our sellers. These two tools are basically the same and should indicate the same price if the Realtor has done his or her homework. When we finally unveil the price, the seller’s facial expression can make or break your day. If the recommended list price is lower than the seller expected, then we may get kicked out on the street. If it is higher than expected, then we may end up listing an overpriced property. However, the past sales do not lie, and the Realtors do not ultimately control the pricing. The fact of the matter is that any property is worth what someone is willing to pay for it.
Usually, within a day or two following a listing presentation, we will get a call from the seller to inform us of his decision. This can be the longest few days of our lives based on the initial reaction we witnessed when we suggested the listing price. However, if we are successful in getting the listing, we are overwhelmed with a great sense of accomplishment. This feeling subsides in about twenty seconds when we realize that the deadline for the Island Reporter real estate advertisement is in less than one hour and the Virtual Tour company has gone on a one-week vacation. Where did I put that digital camera?
During the next two weeks after getting a listing, a Realtor does a lot of behind-the-scenes work for the seller. Digital pictures, videos, virtual tours, newspaper ads, website updates, postcards, and Multiple Listing input forms are just a few of the things we work on to get a listing ready to sell. We also announce our listings at the Thursday morning Realtor Caravans and hold an open house for all of the Island Realtors to preview the property. Networking between the agents on the island, and reminding them about a new listing, is important as well.
When an offer finally comes in, this can be a very stressful time for not only the Buyer and Seller but for the Realtors as well. We need to remember, that the property is worth what someone will pay for it, regardless of the listing price. However, if the initial homework was done correctly for the listing presentation, the offers usually come in close to the asking price. Negotiations can take a few hours or many weeks. In the end, when the buyer is happy and the seller is happy, then we have a deal. When the seller signs the contract and faxes it back, we feel a sense of relief and can finally take a deep breath. Unless of course, the seller mentions he forgot to inform us that he is doing a Reverse1031 Tax-Deferred (Starker) Exchange and has to close on this property by the end of the week!
Learn more about Eric Pfeifer's Journey to Become a Top Sanibel & Captiva Island Realtor and Real Estate Brokerage Owner.