Kelly Sibilsky

Buyers often come with a wish list of what they would like in their new home. Wish lists can be lofty, realistic, practical or optimistic.

I like optimism. I like wishes. I like having a list of what my clients want and/or need in their new home. What is important to them vs. what is not so important. I like having a starting point.

I'm working with some first time homebuyers who have a great wish list. They are young, smart and practical. Having lived in an apartment for a while that is, well, lacking, they know what they want. They met with their lender before meeting with me for the first time to get pre-approved. They ask questions. They listen. They're fun to be with. They are determined.

A real estate agent's dream.

My job is to take their wish list and figure out a way to make it happen for them. It may take a few twists and turns, a little tweak here or there, perhaps a compromise on their part for no house is perfect. We will see plenty of homes that just won't make the cut. Wrong neighborhood, wrong layout, too much work needed or too far a drive to and from work. And we will see a few with great potential; the ones that might just work after all.

The key is that in the days and weeks ahead we will be working towards fulfilling their wish list together. For that's what real estate agents do, really. We are in the business of helping our clients make their wishes come true. How cool is that?

Tomorrow is a milestone day for many parents in Lake Zurich, including me and my husband. Tomorrow the Lake Zurich High School Class of 2008 will graduate.

In 1990, we were blessed with the birth of our first child, a perfect baby boy. Like many first time parents, we were totally unprepared for the changes this event would bring to our lives. We were just excited and happy.

Those first few weeks of sleepless nights and countless feedings had us wishing the days and nights would pass faster so that our little bundle of joy would sleep through the night. Now, we look back at those days and wonder how the time went by so fast. Suddenly, our baby is an 18 year old young man about to embark on his own life's journey. It just doesn't seem possible.

As parents, we commit to memory and cherish all those little moments in time that make up a life. The first tooth, the first word, the first steps. We carefully hold the reins through the years and sometimes gently, sometimes firmly, guide our child throughout his growing years; keeping him on the right path. We nudge him on when he is reluctant to go off to school on that first day of kindergarten. We rein him in when he wants to stay out past curfew. We educate, we mentor, we protect and we love, all the while knowing that someday we must release the reins and allow him to continue on the path on his own.

Truth be told, this year has been a difficult one for me as a mom. I've known this day is coming and both looked forward to it and dreaded it at the same time. Together, my son and I have completed college applications and received acceptance letters. We've had senior pictures taken. We've mailed out graduation announcements. We've argued as I try to hold him close while he pulls away. Some days I feel an incredible sense of accomplishment and other days I feel the sand in the hourglass slipping away. His childhood is officially over.

Tomorrow I will not be showing houses. I will be watching my first born son graduate from high school and filing away in my mind yet another treasured memory of the wonderful boy, now man, that my husband and I have been blessed to share our lives with. My heart is bursting with pride. I'm so excited for him and know that he is ready - more than ready, really - to leave the nest. Yet the tears flow anyway. I'm sure I'll be in good company with the rest of the parents of LZHS graduating seniors as we try not to embarrass ourselves or our kids. I'll bring extra tissues, just in case.

Negotiation is a key element of most real estate transactions. It is so commonplace that most buyers and sellers recognize that the list price is merely the seller's starting price and that the actual price paid for the house will be either lower, or in some cases higher, than the list price quoted. What happens in between is negotiation.

Back when it was a seller's market, it was common for houses to sell at or very near list price. Sometimes, multiple offers would push the purchase price over list price as buyers competed for a particular house. Inventory was low and good houses were hard to come by, so sellers could hold firm and had more negotiating power. You would sometimes see the words, "seller firm" in the MLS remarks which would basically give buyer's agents notice that the seller was more or less unwilling to negotiate off list price. The buyers and their agents could then tailor their offers accordingly to provide the buyer with the best chance to get the house of their dreams. It was a common courtesy.

Now that it is a buyer's market, houses are typically selling for less than asking price because inventory is high and buyers are in the driver's seat. This has resulted in very low initial offers and, more recently, an unwillingness of buyers to negotiate from their initial offer position. However, this rarely results in the buyers getting the house they made an offer on, not only because low initial offers are insulting to a seller, but because the buyers fail to do their homework prior to writing an offer and have no idea what the fair market value of the house is. They are simply throwing a number out there hoping to get a great "deal" with no thought given to what would be a reasonable amount to pay for the house.

Buyer's agents need to educate buyers prior to writing an offer, which includes discussing an appropriate negotiation strategy. The buyer's agent should present the buyer with recent comparable sales so that the buyer can be informed. The buyer's agent should then help a buyer prepare to make a reasonable offer on the house. This preparation includes helping a buyer use common sense instead of emotion. The buyer must be willing to either walk away or step up to the plate to get the house they want. The key is having the information at hand to back up the offer. Finally, the buyer's agent must make sure the buyer is realistic about what to expect in this process.

Buyers are under the impression that they can make ridiculous offers on well-priced homes. It is the buyer's agents job to make sure the buyer doesn't make a ridiculous offer that could cost them the house or, if they are able to get the house, won't cost them more in the long run due to annoying the seller in the beginning.

If it is the buyer's intention to present a "firm" initial offer, which they have every right to do, then common courtesy should dictate that they clearly state that their offer is "firm" and that they are unwilling to negotiate. A trend of sorts has emerged recently whereby buyers and their agents are presenting ridiculously low offers on well-priced houses with no bearing on reality or recently closed comparables (and by recent, I mean within 2-3 months). The sellers and their agents then take the time to craft a reasonable counteroffer, often coming down from list price $5,000 to $10,000 in an effort to open negotiations and work towards a win-win for both parties. The buyers then simply withdraw their offer without negotiating at all, claiming "they don't think that they will be able to get the house for the price they desire."

What? How do they know this? Can they read the seller's mind? If they don't take the time to negotiate, how will they ever know if they could have come to an agreement on price and terms with the seller?

It makes me wonder whether buyer's agents are taking the time to inform and prepare their buyers. Perhaps they are just so desperate for a sale that they are willing to write multiple ridiculously low offers for unrealistic buyers. Maybe they don't know how to negotiate.

The only thing I do know for sure is that there are a lot of buyers out there that still don't have a house...and a lot of sellers out there with homes to sell.

Negotiation is a key element of buying and selling real estate. Let's put the "go" back in negotiation and get these deals together!

I must be crazy.

I turn down business sometimes. Here are some examples:

I discouraged sellers from listing their home right now because they simply can't afford to sell without digging a financial hole they won't soon climb out of.

I turned down a potential listing because it was a 45 minute drive away from my office.

I asked a buyer to speak with a lender and get pre-approved before we look at houses.

I advised a couple who were potential renters that it is in their best interest to stay in their current rental for another year, instead of moving into a new larger rental now.

I must be crazy.

I don't like to turn down business. Who does? I try to refer it out if at all possible, but sometimes it's just me doing what I believe to be in the best interest of the potential client.

I mentioned this to another agent the other day and this person basically told me I was crazy.

Yep.

I must be crazy to have standards. I must be crazy to have compassion for others. I must be crazy to believe that profitability is more important than sales volume. I must be crazy to resist the old school ideas and choose to do things differently. I must be crazy to really want what is best for my clients. I must be crazy to want success for my sellers instead of just my sign in their yard. I must be crazy to refer out business that I feel is outside my market area or expertise. I must be crazy to screen clients and only work with those who fit my "best client" criteria.

I must be crazy. Either that or I'm very, very smart. I like to think I'm the latter. Are you crazy, too?

As a real estate marketer, I strive to create a marketing mix that will showcase your home to create the highest perceived value, reach the widest possible audience and generate the largest buyer response.

Traditionally, the 4 P's of marketing are:

PRODUCT

The product is, obviously, your house. The number of bedrooms and bathrooms, lot size, fixtures, amenities, updates, and the location are key components. Additionally, how well your house is staged, how clean it is, and your flexibility in accommodating showings will affect its salability.

PRICE

Together we will go over the recent comparable sales, current active listings and pending sales to arrive at a pricing strategy that takes into account both your needs and the current market conditions. Some additional components of pricing include your flexibility, your timeframe for moving, and the current competition for your house.

PLACE

Since I can't put your house on a shelf in a retail store like a gallon of milk, this means I will figure out where the most likely buyer of your house will come from...and will subsequently target that buyer. In other words, I'll bring the market to your doorstep!

PROMOTION

This is the exact combination of advertising and marketing that I will use to promote your home. My marketing strategy includes promoting your home to other agents as well as directly to buyers through a combination including, but not limited to, postcards, flyers, signage, broker open houses, the multiple listing service, as well as an explosive internet marketing program.

So, what is the 5^th P of marketing? In today's market, I think the 5^th P should be...

PERSEVERANCE

With increased inventory and tighter lending practices, even the best priced, best prepared and best marketed homes are taking longer to sell than in the boom years. Our offices report that the average number of showings for all listings was 2.5 per month for the month of April. Last year, the average number of showings per month was slightly higher, at 3.1 per month. Back in 2006 it was 4.9. It used to take about 8 to10 showings to generate an offer. Simply put, generating an offer was accomplished in less time when showings were more frequent. Prior to 2006, homes were selling in 30-60 days on average. With average marketing times in the Lake Zurich area for detached single family homes now hovering around 214 days, and attached single family homes at around 150 days, perseverance is a must!

The real estate marketing process is like putting together a puzzle...without all of the pieces it's just a waste of time. My 24/7 marketing plan puts all the pieces together for a winning combination of marketing and advertising designed to position your home for success. Call me today!