Looking Out From the Garage

Image via Wikipedia

Two years ago there were worries among sellers that buyers couldn't obtain financing.  Those worries are back... but, then as now, money was available.

Of course, in the middle there were issues with getting loans funded.  But now, the loans are available.  Of course the credit restrictions are tighter and there are fewer loans available for those with weak credit.  But, many would be buyers think that getting a loan is all but impossible... that may be what they heard on TV or saw in the paper.

So, a great opportunity for sellers (and their agents) is to make sure that would be buyers KNOW that they can get a loan.  When I take listings, I call up one of my best mortgage guys and have him build out a few financing scenarios.  This lets prospective buyers know up front what their payment options might be... and if the property might be within their budget.

When I am working with buyers, if they haven't already, I get them to get a pre-approval.  This allows them to deal with issues with which they might not have been aware, PRIOR to putting an offer in on a property.

Here are a couple of links for Ken Cook, one of my mortgage guys.  He has access to a LOT of programs for buyers (there is audio on this link) that might be on the edge, as well as tools to help those that might have credit challenges to overcome.

Let's not forget the post from two years ago...

When selecting a listing agent, it helps to have one that also works with buyers.  A balanced agent has the resources and relationships to make it easier for a buyer to get your home.

Related articles

• Wayback Wednesday... What do YOU Deserve? (lanebailey.com)
• Wayback Wednesday... Why the Hurry? (lanebailey.com)
• Wayback Wednesday... The Dirty Little Secret... (lanebailey.com)
• Flashback Friday... Mortgage Thoughts... (gwinnettgarageguy.com)

from LaneBailey.com

I am slow to bring a property to market.  And I am proud of that.  In fact, I think that more agents should be slow to bring a property to market.  There are a few things that NEED to be done, and should really be done before the property is listed in the MLS or anywhere else...

• Photos of the house and property
• Virtual tour
• Website
• Flyers or brochures
• Video tour
• Staging

We all know that the absolute most important time to have everything right and in place for a listing is the first couple of days it is listed.  Not most agents... EVERY agent.  Every broker... and even most sellers.

But instead of figuring out the marketing plan, buying the right pieces, getting the design done and then in place, most agents list the property and then start worrying about how to market it. There is a good reason for this.  Properly marketing a home isn't cheap.  Many agents are hoping that they can sell the house before they spend any money on it.  Forget that most are trying to use the cheapest solution they can find (I hate $99 virtual tours)... they don't even want to cheap out... they want to free out.

So, if you are talking with an agent, and they tell you that they can "run around the house, shoot a dozen pics and get it in the system tonight", ask yourself why you should put them in charge of marketing your home?  What they are getting ready to do (or NOT do) is important.  Make sure that it is done right.

from LilburnDwellings.com

I got an email this morning from Obeo, the provider of my virtual tours.  It was the results from a survey they commissioned about home buying habits for internet users (there were a few people that weren't internet consumers).

Here is part of the press release:

Obeo Survey Provides Landmark Insight Into Home-Buying Behavior

Obeo -- the expert in buyer behavior -- has released the results of an in-depth demographic analysis that will help real estate agents serve the end consumer. (PRNewsFoto/Obeo)

SALT LAKE CITY, UT UNITED STATES

SALT LAKE CITY, Aug. 22 /PRNewswire/ -- In keeping with its reputation
as an expert in buyer behavior, Obeo's recent survey reveals significant
findings regarding gender's impact on the process of purchasing a home.

(Photo: http://www.newscom.com/cgi-bin/prnh/20080819/CLTU077 )

According to a survey of more than 500 adult respondents conducted by
National Polling Service on behalf of Obeo, a leading provider of
full-service residential real estate online marketing products in North
America:

-- 41 percent of women surveyed began their search for a new home
on-line, while 25 percent of all males did the same; interestingly enough,
more men (28.5 percent) initiated their search by contacting a real estate
agent.

-- 52.6 percent of all women surveyed searched 21 or more homes online
compared to 45 percent of men surveyed

-- While price was considered the most important home feature to
consider by both men and women, 13.2 percent of men surveyed said the size
of a home was the primary feature to consider compared to 4.4 percent of
all women

-- 94 percent of all women surveyed said photos of a home would be very
helpful in their search for a home while nearly 70 percent said 360-degree
panoramas would be very helpful.

-- More than 72 percent of all respondents found the interactive nature
of Obeo - like being able to virtually change certain design elements of a
home - helpful in their search for a home.

"We know that today's home buyers are more knowledgeable about the
process in general and have higher expectations of information provided
regarding the homes in which they are interested," said Obeo CEO Glade
Jones. "What this survey provides with its in-depth demographic analysis is
a map to better serving that end consumer."

"By providing REALTORS(R) with this breadth of information as well as a
marketing platform to meet the consumer needs, we believe we are providing
a valuable solution to the real estate industry," said Alan Earl, senior
vice president of sales and marketing.

For more information and to download this survey, please visit
http://www.Obeo.com/BuyerSurvey08 .

Obeo provides Realtors(R), homebuilders, land developers and property
managers with customized online marketing solutions and offline sales
tools. To find out more, go to http://www.obeo.com.

There were a lot of other interesting things.  22% of the respondents didn't use an RE agent.  But, 58% felt their agent was extremely or very effective.

I have been using Obeo for my virtual tours lately.  I really like the quality of the tours, as well as the other options that are available.  For 9010 Brixham Court, in Suwanee, I am using the basic tour, as well as panoramas, interactive floor plan and design tools.  There are almost 100 photos.  I also beefed it up with a much more extensive property website than most other agents.  I wanted to be sure that buyers had as much information as possible about a property.  And don't forget the video...

For another listing, I utilized a self-shot tour in addition to the design tools and interactive floor plan.  The neighborhood was profiled on the website.  And it was another website that went beyond the normal.  955 Juniper at the Tuscany can be found here.

The only way to deliver what buyers and sellers need and want is to pay attention to what buyers and sellers need and want.

from LaneBailey.com

I admit that this wasn't an email into my inbox. But, it is a question that I have received, investigated, and actually seek out.

Lane, we had our house on the market for ___ months. Why didn't it sell?

There is an easy answer, and a not very easy answer. First I'll give you the easy answer...

Your agent didn't do the right things to make your house sell.

Is that what you wanted to hear? If it is, and you don't like to be challenged or have someone tell you things you don't like to hear... stop. Do not read any further. Here is a video to distract you...

Are you still with me?

Ok.  Here is what it comes down to.  A buyer that wanted to buy your house didn't find it.  If they did, they didn't like the price. 

But why didn't they make an offer?  We might have negotiated.

There are two challenges here.  Did they see it?  If your home was priced at $424,900, and perhaps should have been priced at $399,900, then it is likely that the right buyer had no idea your home was available.  Not only was it not priced right, it was priced out of their range.  

Pricing is extremely important.  Your home has to be priced right for the right buyer to even see it.

And remember, this isn't 2005.  The house up the street that sold for $425k is no longer a relevant comp.  That was then.  This is now.  While a couple of years ago, the most important comps were sold properties, now the other competing listings are also very important.  Just like at the store, buyers don't go after the highest priced property first.  

We priced it competitively with the other houses near us.

Then the next thing we would look at is the condition and presentation.  Not just whether it had a nice roof, and the grass is cut, but whether the colors evoked a positive response from the buyer, and furniture arranged to best show off the size and shape of the rooms.  

Staging is another tool, just like price and marketing.

And it doesn't stop there.  The presentation begins well before the buyer steps through the door... or even into the agent's car.  The presentation begins where the buyer searches... the internet.  That means that after the home is properly staged and buffed to shine, there needs to be a pant-load of pictures for the buyer to peruse.   Perhaps it might also be a great idea to have an interactive virtual floor plan and interactive design program. 

Lane, it couldn't have looked prettier... to buyers, not just us... and it was well presented on the web.

We can't just expect that the right buyer is going to bump into the house in the MLS and Craigslist.  She might.  Or not.  We have to take advantage of the variety of opportunities to market the house to the right people... people that might be the right buyers.

Market Listings Strategically.

It isn't a coincidence that I picked a phrase with the initials MLS.  But, the point is that the MLS is just a start.  It is also important to get that wonderfully staged, beautifully photographed, fun and interactive presentation in front of people that would like to own that type of property.  Instead of shotgunning the marketing, and putting it in places that might have a lot of traffic, perhaps being a little more surgical might work better.  Don't put unique homes in front of average buyers, and do put it in front of unique buyers... the right unique buyers.  

If you took all of the right steps... be honest here... ALL of the right steps... your house should have sold.  But, if it didn't, there is one fall back.  In January, for every 100 properties that were newly listed, there were only 17 sales.   January is traditionally the low point of the year, but still, that ratio was less than 2/3rds of the number for the previous January.  And even in a strong market, where there is only a month or two of inventory... up to half of the listed homes won't sell.  

That puts us back to step one... Call me.