How A Listing Agent Goes Wrong

There are several things that listing agents can do wrong, however in this market it can mean financial suicide for not only the agent, but could be a disaster for the sellers.

First off, in this market you need to price your listings competitively if you want them to sell. Overpricing will guarantee three things. First, you ensure all of your efforts will go down the drain since you will get zero offers. Second, you ensure a very unhappy client since his/her home will not sell, perhaps losing several referrals, and last but not least you will upset every listing agent and neighbor in the area who wants to list their home.

Unless you are just lazy and want a listing to satisfy your boss or make you feel better about yourself, you need to understand how to get the maximum results before wasting money in advertising or time doing open houses.

First off, when you get a potential listing and make an appointment for a presentation, do your homework. You should spend at least 30-60 minutes researching their home and educating yourself about the surrounding market. Check the competition first by looking for active listings around the area. See what they are asking for their home and what shape it is in by the pictures. That will give you a clue as to several factors in pricing yours out. First, if there are only a few listings then you have a good chance of competing. If, on the other hand, there are 15 listings then you have a problem. It means that the area is not hot and the chances of it selling are decreased by 80% or more. Think "Snowballs Chance in Hell".

Now that you have an idea as to how many are available and what their prices are, check the comparable sales to make sure the active listings aren't overpriced. (I have seen entire areas that were overpriced by $50K or so, took a listing at a realistic price and sold it in a week.) If they aren't overpriced then you know what range it should be listed in. If it is overpriced then you now have an advantage over everyone else if you can get the seller to agree to list it at fair market value.

Ok, so now you have a price. What's next? Well since the days of throwing up a sign in the yard, sticking it on the MLS and getting 20 offers are gone it is time to come up with a marketing plan. Yes, alas, we have to work for a living again. I know to some this is a new concept, but before the boom we had to work to get our listings sold. Those who worked could double-end a deal. Those who didn't are probably at the local McDonalds or Burger King asking you if you want to Super Size.

So what should a marketing plan look like? Well a marketing plan is simply what you are going to do (not what you should or won't do) to get their home sold. It can be holding open houses every weekend, or sending post cards, door knocking, etc. But it should have no less than 20 things in it. If you can advertise in the local paper(s) or Real Estate Magazines then you should put those at the top of the list. Every agent should have a marketing budget for each listing they have.

The best way to determine who to market to is to look at the local demographics. Most title companies offer this or you can go to city hall and get them. This will tell you several things. What is the average income in the area, what the most popular type of job is, etc. This can help you target a specific type of group to help get your home sold.

Last and not least update your listing presentation. Many agents I have seen haven't updated the slides or pages in their presentations for years! You should have several things in your presentation including:

•·        Unique Programs for Sellers (If Applicable)

•·        Sales Information & Figures for the County/City

•·        MLS Sales Information

•·        Your Sales Figures

•·        Marketing Plan

•·        Where You Advertise (If Applicable)

•·        Personal Guarantee (If Applicable)

•·        Testimonials From Past Clients

You can add some personal touches but you should look like a knowledgeable professional who gets results, not someone who just wants a listing.

Last but not least, when you go on the appointment, be enthusiastic! Don't sound like someone who doesn't know what they are doing. You should sound confident but not cocky. Sellers are looking for someone they can trust, has knowledge about the market, someone who understands their situation and can assist them in acheiving their goals.