When a Solid Deal Melts Away

It happened last night. I got that call every real estate agent dreads. “My buyer wants out.”

Ugh.

It was a solid deal. There was no reason to think things would take a turn over the next few days. But then the phone calls start coming in from the buyer’s agent, and you can just feel that this solid deal is melting away.

Yet until you actually hear the words, you hold out every bit of hope that the buyer will see things clearly and meet you and your sellers at the closing table. But that just wasn’t the case this time.

The phone conversation with my seller reminded me of the level and number of emotions that are wrapped up in every single real estate transaction.

Hope. Anxiety. Fear. Happiness. Relief. Frustration. Gratitude. Excitement. Anticipation.

It also reminded me that one of the most important parts of our job is to support our sellers and provide assurance that everything will be O.K. when we hit a bump in the road.

It’s easy to make assumptions or pass judgment, but I think it’s important and necessary for us to take the time to listen to our sellers. Let them vent. Let them be angry. And then help them to let go of this one and move on.

Help them to trust that a better buyer is out there. Assure them that you will do everything you can to bring that buyer to them. And then go out and do it.

 

So What Do I Need to Do to Get Ready for Our Open House?

I admit it. Having been in the business for about eight years, I tend to forget sometimes that some of my sellers who are selling for the first time simply don’t know what they need to do to prepare for an open house.

So if you’re about to have your house open for the first time this weekend or in the near future, here are a few pointers:

1. Clean. Dust the tables, vacuum, and pick up dirty laundry. Do the dishes — both those that need to be hand washed and those that go in the dishwasher. Opening up the dishwasher and seeing it full of dirty dishes can be a little unappealing.

2. Remove pets. Remember that some buyers may be allergic to certain animals or just may not be an animal-lover. Even though your cat may “stay to itself,” seeing it laying on the bed could be a turn off for some. Same goes for hamsters, guinea pigs or any other creature that lives in a cage. You may feel confident that they won’t get out, but a buyer may not share that same assuredness.

3. Put away personal paperwork. Don’t leave bills, listing paperwork or other personal items out on the counter.

4. Put away valuables. Never leave jewelry or other items that have monetary or sentimental value out in the open. Better not to have the temptation there.

5. Put away prescriptions.

6. Clear the front sidewalk, driveway and patio/deck. During the winter months, make sure the snow and ice are cleared from the walkways, driveway and patio or deck. It encourages buyers to walk around the property to get a better idea of the yard size, etc.

7. Mow the lawn and clean up landscaping. During the spring, summer, and fall months, make sure the lawn is cut, weeds are pulled, bushes are cut back, and leaves are raked up. The buyer’s first impression will be made the moment they drive up to your house. Do what you can to make it the best impression.

8. Try to avoid using strongly scented room deodorizers or cleaners. It seems more and more people are sensitive to strong odors. What you or I might find as a pleasing odor, may be offensive to someone else.

9. Don’t hang around during the open house. Try to be out of the house at least 15 minutes before and 15 minutes after the scheduled time. Buyers typically don’t feel comfortable looking at a house with the seller in their midst. If you come home and see cars out front, drive around the block a few times. Trust that your agent will contact you to let you know how things went.

Bottom line is you want to make the buyers feel welcome. It’s a lot of work to keep your house in showing condition. But the time and effort you put into it could set you apart from the other opens going on at the same time. That makes it worth it, doesn’t it?

 

What is it Worth to You to Be Able to Move On?

I recently received an offer on one of my past listings from a “protected buyer.” The sellers are no longer together but are still tied to one another because of this house.

Both told me individually that it’s time to move on — that they needed to be done with this. I could hear in each of their voices the “wear and tear” this house was putting on them. You can’t help but feel for them.

The parties in the transaction were far apart on the price, and it was easy to see why. It’s simply a difference in perspective. One sees the dated kitchen, the dated baths, the old windows, and the oil tank in the basement. The other sees the the financial ramifications of accepting an offer any less than their “bottom line.”

I can’t help but feel for both parties. Here are two buyers who love the house enough to come back months after seeing it to put in a bid, and two sellers wanting to move on with their individual lives but held back because of financial constraints.

Circumstances like this are something I have yet to “get used to.” My heart goes out to those who see the equity in their home disappear but continue to pay the mortgage on time. And when a broken relationship is added to the mix, the situation becomes even heavier.

But it is also in circumstances such as this that each person has to decide for themselves the value in being able to move on. Is it worth bringing some money to closing to get the deal done? Is it worth talking to your lender about a possiblel short sale to allow each of you to move on? What is having the sale of this house behind you worth to you?

I wish I had the answer for any of my sellers faced with this. The answer, though, is within each of them — only they know, in their heart of hearts, what they are willing to do to close this chapter and start living the next.

 

So Where Does All That Commission Go Anyway?

It’s not uncommon to be asked by a potential seller if I will reduce my commission, especially in cases where this individual will also be using my services to purchase a new home. And oh, how I used to cringe when that question would arise. But having been in the business for a few years now and gaining a clear understanding of the time, effort, and manpower it takes to get a house sold, I’ve learned that saying “no” really isn’t so hard after all.

So where does all that commission go?

OFFICE — rent, electricity, phones, computers, copy machine, fax machine, secretary, sales director, paper, insurance, Closing staff, Accounting staff

SALES AGENT COMMISSION — cell phone, errors and omissions insurance, tech fees, car expenses, association dues, license fee, personal web site, living expenses, self-employment taxes,

COMPANY PROFIT

CO-BROKE COMMISSION — Incentive offered to other brokers to show and sell your house

MARKETING — shorewest.com, billboards, radio, mailings, open house, Shorewest TV, yard sign, Shorewest hotline, smart phone apps, listing flyers

Charging less means spending less.

If the broker spends less on overhead, they wouldn’t be able to do the work they need to do.

If the broker reduces the percentage paid to the sales agents, those agents will work elsewhere.

If the broker reduces their profit margin, they won’t survive.

If the broker reduces the co-broke percentage, fewer agents are motivated to show their listings.

And if the broker reduces the marketing dollars, homes will not get the same level of exposure, which translates to fewer buyers, longer times on the market and lower sale prices.

I remember when I bought my first house I did the math. I thought the agent, who both listed and sold the house, was walking away with literally thousand of dollars in her pocket on a $100,000 house.

But I get it now.

Those thousands of dollars are covering several paychecks and paying several overhead bills.

I just have to remember that the general public isn’t in the business so really have no way of understanding this, and it’s therefore my job to explain it to them. And it’s my job to prove to them my broker and I are worth every penny.

It’s not uncommon to be asked by a potential seller if I will reduce my commission, especially in cases where this individual will also be using my services to purchase a new home. And oh, how I used to cringe when that question would arise. But having been in the business for a few years now and gaining a clear understanding of the time, effort, and manpower it takes to get a house sold, I’ve learned that saying “no” really isn’t so hard after all.

So where does all that commission go?

OFFICE — rent, electricity, phones, computers, copy machine, fax machine, secretary, sales director, paper, insurance, Closing staff, Accounting staff

SALES AGENT COMMISSION — cell phone, errors and omissions insurance, tech fees, car expenses, association dues, license fee, personal web site, living expenses, self-employment taxes,

COMPANY PROFIT

CO-BROKE COMMISSION — Incentive offered to other brokers to show and sell your house

MARKETING — shorewest.com, billboards, radio, mailings, open house, Shorewest TV, yard sign, Shorewest hotline, smart phone apps, listing flyers

Charging less means spending less.

If the broker spends less on overhead, they wouldn’t be able to do the work they need to do.

If the broker reduces the percentage paid to the sales agents, those agents will work elsewhere.

If the broker reduces their profit margin, they won’t survive.

If the broker reduces the co-broke percentage, fewer agents are motivated to show their listings.

And if the broker reduces the marketing dollars, homes will not get the same level of exposure, which translates to fewer buyers, longer times on the market and lower sale prices.

I remember when I bought my first house I did the math. I thought the agent, who both listed and sold the house, was walking away with literally thousand of dollars in her pocket on a $100,000 house.

But I get it now.

Those thousands of dollars are covering several paychecks and paying several overhead bills.

I just have to remember that the general public isn’t in the business so really have no way of understanding this, and it’s therefore my job to explain it to them. And it’s my job to prove to them my broker and I are worth every penny.

 

It’s that time of year again!! You know what I’m talking about — Thanksgiving is just around the corner and just a month later, we’ll be celebrating the holiest of all days, Christmas. It is the season of giving and being with family and friends.

Each year Cedarburg offers the opportunity to stroll through Cedar Creek Settlement past normal business hours five Fridays between Thanksgiving and Christmas. So come to Cedarburg one, two or all five festive Fridays and enjoy the fellowship from 5:00 pm – 9:00 pm.

Friday, November 19, “Blue Christmas…Back to the 50′s” – 

Festive Fridays

 

Featuring the Mary Del Rae Duo, The 4 of Hearts, and Lakeshore Dance students. There will also be a hula hoop contest with prizes, and scenery from the 50′s. Complimentary cookies and cider, and an outdoor cookout by The Hub.

Friday, November 26, “Home for the Holidays” – What a great way to extend the holiday weekend — join us for “make it and take it” projects. (No charge!) Irish singer/musician Derek Byrne. Patty Ehlers Peterson (from Larry’s Market) will present Easy Entertaining for the Holidays. Complimentary cookies and cider, and an outdoor cookout by The Hub.

Friday, December 3, “Christmas in the Country” – This is a nationally recognized Christmas boutique featuring Midwestern folk artists and Christmas artists. The Cedarburg Choral Singers will also be performing this evneing. (The show/sale runs December 3-5, and admission if $3.00.) Complimentary cookies and cider, and an outdoor cookout by The Hub.

Friday, December 10, “Santa’s Workshop” – Tonight is for the kids! Visit with Santa in his winter wonderland. David HB Drake will be performing “Songs of the Season,” and there will be children’s holiday pottery craft and cookie decorating (no charge!). Also free face painting! Wine tasting, too, for the adults.

Friday, December 17, “A Taste of Christmas” – And now it’s the adults’ turn. Shop in a relaxing atmosphere. Complimentary munchies and wine tasting available, and live music with the Vic DiCristo/Tony Corenc Duo, the Grafton High School Choral Singers and Premiere (Sweet Adeline’s). This is also the evening for the Food Drive for Family Sharing of Ozaukee County. Outdoor cookout by The Hub.

 

I Can’t Help But Wonder if We’re on the Verge of Losing Our Ability to Really Talk to Each Other

Something I’ve been noticing lately is that people are using texting as a means to “talk” with one another more and more. I understand there may be times when it may be better to text someone rather than call them, but to use it as a primary means of communicating seems silly…and sad.

Whatever happened to sitting down with someone and talking — really talking? Whatever happened to looking in their eyes as you talk and seeing the emotion or hearing the emotion in their voice?

I know there are plenty of adults who are texting more every day, and I admit that I’ve started doing it more and more. It does seem, though, that it is our youth who use it on a consistently regular basis, and I’m afraid there is no way they will ever understand what they are missing out on by not talking to someone face-to-face.

Disagreements cannot be properly handled by typing back and forth on a phone. How can you possibly come to really know and understand someone without that human contact? I’ve heard of kids breaking up with each other in a text. I can’t tell you how humiliating and hurtful it was when I got dumped in an email a few years ago. A text message certainly can’t make one feel any more worthy.

I know there are many things my parents experienced that I never will, simply because of the times in which they grew up. Their times were much, much simpler, much slower paced. Those were times of playing board games with the family, playing baseball in the front yard with the neighbor kids in the summer, and making home-baked goods on Saturday morning. No cell phones, no computers, no email, no video games, no texting. Birthday cards and letters were handwritten, and words like “you”, “see,” and “are” were spelled out correctly–not “spelled” with one letter.

There’s no going back to those times, I know. I do hope, however, that in the midst of all the buttons and touch screens we never forget how to use our mouths to talk with each other. I know that no message on a screen can take the place of hearing the words from someone — regardless of what the message might be.

 

We’re Ready to List the House — Now What Do We List It For??

One of the many things I try to plant in my sellers’ minds is the fact that this real estate market we’re in is ever-changing. Every day is a new adventure. Every day I learn something new.

And although this has been the reality for some time now, it still can be difficult to really wrap your head around the way things are. Prices are low and inventory is high. Foreclosures and short sales are out there — even in “your neighborhood.”

No one is immune from this. No one.

What does that mean if you are ready to sell? LIST YOUR HOUSE AT A COMPELLING PRICE!

You want the buyers to come through your house, not your competition’s.  

You want the buyers to write an offer on your house, not your competition’s.

So be aggressive. See things as they really are. Really study the comps your Realtor® provides for you and heed his/her advice.

Pay attention to what comparable homes have recently sold for in your area and consider those numbers when deciding on a list price.

Price below your competition — not the same as your competition.

Compel a buyer to buy your house.

Having trouble swallowing that you need to price your house “there?” Well, consider this.

How are you going to feel if that For Sale sign is sitting in your front yard six months from now?

Stay ahead of the competition — be aggressive. Sell your house — don’t just list it.

Now…what do you think your house should be listed for?

 

Knowing You Did All You Could and Then Moving On

I had lunch the other day with a colleague of mine. We work for the same company but in different offices.

I sold one of his listings last year, and that was the first deal I had with him. I had heard of him before, but that was the first time I met him. He is simply one of the kindest people I’ve met.

At our lunch on Tuesday, we talked about the challenges the world of real estate is presenting. He offered some simple, yet effective ideas on how to work with a seller to properly price their home to get it sold, how to break the news that the market cannot handle the price we’re currently at, and how not to let their frustrations “get to you.” It wasn’t a “pity party” by any means — just a chance to share some ideas and offer some encouragement.

 

Those of us who are “in the business” are certainly not the only ones feeling anxious. Sellers and buyers, too, are in the midst of uncertain times, aware of falling prices, and facing job uncertainty. And I think it’s important that we all understand we’re in this together. Whether we want to admit it or not, we are scared.

But I also think we all know when we’ve done all we can to try and make things work. As in any relationship, if both sides don’t really want the same thing, it is probably best to cut the ties and move on.

And it is best to know and trust better times are ahead — for all of us.

 

Let Me Google That

I saw a status update on Facebook yesterday from someone who said they might put the “For Sale” sign outside their house. They have no idea how to sell a house on their own, so maybe they’ll Google^TM it to find out. Someone replied that it’s really not that bad; just make sure to have an attorney look over the offer before accepting it.

If only it were that easy.

I started thinking about what I do when I list a house:

1. Complete and analyze a market analysis.
2. Meet with the seller to go over the market analysis.
3. Determine a compelling list price.
4. Take room measurements.
5. Provide suggestions to sellers for preparing their home– both inside and outside — for showings and open houses.
6. Have professional photographs taken.
7. Write an attention-getting description.
8. Put the listing into MLS and on the company web site, as well as my personal web site, Trulia, Realtor.com, WiHomes.com, etc., etc.
9. Prepare color information packets for buyers.
10. Mail out Just Listed postcards.
11. Schedule and prepare for broker’s open.
12. Schedule and prepare for open houses.
13. Follow up with buyers from open houses.
14. Schedule private showings.
15. Ensure all potential buyers are pre-approved.
16. Follow up with agents from private showings.
17. Provide sellers with feedback from open houses and private showings.
18. Review market conditionds daily to determine my listing’s position compared to our competition.
19. Submit weekly updates to seller.
20. Present offer to seller.
21. Negotiate terms of the offer on seller’s behalf.
22. Negotiate changes to terms of the offer resulting from home inspection.
23. Prepare and submit offer packet to Closing department.
24. Ensure title is free and clear of any liens.
25. Attend closing on seller’s behalf.

And as I think about this list, I’m realizing this doesn’t even begin to touch on the numerous hiccups we sometimes see pop up in a real estate transaction.

I wish there was an easy way to help the public understand the time commitment that is needed to sell a house. I wish there was an easy way to help them understand that no matter the reason for selling, it is an emotional transaction, and those emotions can quickly muddy up any transaction. I wish there was an easy way to help them understand the legal risks they take on when they don’t have a licensed professional representing them. I wish there was an easy way to help them see and understand the value — especially in these times — of listing their home with a Realtor®.

Maybe Google^TM can help me with that.

 

And This is Why I Am A Real Estate Agent

A couple of weeks ago I received a referral from a past customer who I had worked with in 2007 in their home search. She had a co-worker who was looking for her first home with her husband.

I contacted the prospective buyers, got some information about what they were looking for in a home, and started the search. Within a few days, we were off on our first tour.

It turned out to be a very successful day as there were three definite possibilities out of the eight or so homes we looked at. Although I didn’t say anything to them, I was pretty confident that one of those three in particular was “the one” for them. The second we stepped in the front door, he exclaimed, “This is my house!” and they both had that look on their face. You know the look–the “I found the one” look.

A couple days passed, and I received an email from Mrs. Buyer that they wanted to take another look at “that house” plus check out another one that they found in a nearby community. We stopped at the new listing first, and both seemed to like it, but the “I found the one” look didn’t come across either of their faces. And so it was on to “his house.”

When they stepped inside this time, Mr. Buyer said, “I don’t want to leave! This is my house!” The next day we wrote an offer – a secondary — and within 24 hours we had an accepted offer and were already in primary position.

For me, the pure joy and excitement on a first-time buyer’s face when they learn their offer has been accepted is one of the best things about being in this business. It erases in a split second any challenges from the past or present, and my buyers’ appreciation of the time and effort I put into my work is something I carry with me from that day forward.

How lucky am I to be a real estate agent…