In what is considered a ‘normal’ real estate market, sellers can expect an almost seamless transaction process. Buyers’ choices are, after all, somewhat limited, which can make their decision process on what particular property to purchase a rather uncomplicated one. And, of course, in a full-out sellers market, sellers enjoy additional leverage because buyers are often forced to make snap decisions based on a sense of urgency derived from the fear that someone else will purchase ‘their’ property out from underneath them.
But today’s real estate environment is like nothing else seen in generations. It is a mega buyers market. No matter how lovely your house is, potential buyers may still remain frozen in an uncomfortable inertia due to the paradox of too many houses from which to choose, or they may be simply driven by acute economic uncertainty.
So, how are you sellers going to set your homes apart from the competition?
Choose your listing agent wisely to avoid a commoditization trap. Marketing can make all the difference in the world, especially in today’s abysmal real estate environment. Keep your focus on your prospective agent’s ability to professionally market your house, and don’t get sidetracked by their skill-set at self-promotion. A great listing agent’s seemingly small nuances, such as the angle of the front house photograph or the adjective used in your property’s descriptive headline can increase online click-throughs by up to three- hundred percent. (Based on Belle Haven Properties’ market research). The number of photographs your agent will be using in their advertising can either make or break your listing. It is, after all, the number one search criteria for buyers on the national real estate websites. And, keep in mind that listings with fewer than nine photographs become notoriously lost to the bottom rung of search lists, so insist on the maximum number of professional photographs. And, of course, it is not just buyers who cull the list of ‘must see’ properties in accordance with the level of professionalism in a property’s presentation: it is their agents too. Great marketing matters!
Sellers should be aware of boiler-plate real estate sales tactics. Do not succumb to believing that your agent and their network, or their broker’s corporate tendrils are enough to give your house the competitive edge it deserves. Keep in mind that in approximately 90% of residential real estate transactions, your listing agent doesn’t actually find you your buyer. In fact, in thirteen states, it is illegal for a seller’s agent to represent the buyer – as it is rightly considered an obvious conflict of interest. The confusion as to ‘who’ actually sells what is due to a rather convoluted rule by the National Association of Realtors which permits a listing agent to send out “Just Sold” cards, without requiring the agent to reference the name of the agent and broker who actually procured the buyer.
Understandably, staging isn’t just an option in this type of real estate market, it is mandatory. And, it should be congruent with your home’s architectural style, area lifestyle perceptions and designed with targeted demographic and psychographic buyers in mind. Unlike in your father’s era, today’s real estate market requires an amalgamation of complex inputs: e.g., the use of environmental psychology, color psychology and sensory research should be integral components of the marketing mix as well.
The competition is fierce among agents today. As a seller, you probably won’t have an easy breezy sale. But you owe it to yourself to level the playing field a bit by demanding far more from your listing agent. Therefore, if little Billy, your neighbors son, just got his salesperson’s license and you are feeling a bit obligated to list with him, here’s his to do list when marketing your property:
- Billy needs to have some lifestyle-vignette staging done for you at his expense.
- Billy should understand how shapes, color schematics, textures, lighting and scents affect mood and perception.
- He needs to hire a professional photographer.
- He will need to know as much as you do about your property in order to write a comprehensive (minimum two- thousand word count) description of your property in appropriate upper and lower case, non-abbreviated, standard English.
- Billy will need to upload your listing on the top real estate websites, using approximately 25 photographs and include the aforementioned descriptive copy.
- He will need to create a dynamic property brochure to appropriately brand your property as being special, vis a vis, the competition.
- Billy will need to create a positive touring experience for prospective buyers.
Keep in mind the following:
- Print advertising is just about dead. Its usefulness is in achieving name recognition for your agent, not in selling your house.
- Ditto, “Just Listed” cards.
- Open houses are not very effective at selling your house. (90% failure rate). They are an effective lead-generating tool for your agent.
- A few Open Houses are worthwhile to get the neighbors on-board - but that’s really about it.
I wish you Happy Selling in 2010.