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Mark Lyon, PA, CRS, CRB

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Keller Williams Real Estate Agents Bring Sanity to Home Pricing in Pembroke Pines

10-26-09
Mark Lyon, PA, CRS, CRB

Keller Williams real estate agents bring sanity to home pricing in Pembroke Pines. Over the years I have gotten a lot of strange reasons from sellers why they think their house are worth more than the comparables suggest. Floyd Wickman, talks about this in his Sweathog training program, for newer practitioners this was a very successful and popular program 10-15 years ago, which I took, and by the way and got my very first listing while in this class. Floyd talked about the sellers with the "heavy duty nails" always wanting to overprice their home's, some think just because they have slept there it must be worth more than similar homes in the neighborhood.

On a listing appointment I had some years ago in Westview, Pembroke Pines, after going over all the comparables with the seller, an older lady, she informed me that her son had told her it was worth more than my comps suggest. I said to her "O your son must be a Realtor?" She replied. "No he was not," An appraiser." I replied. "No, he's a UPS truck driver." She replied. I asked her what training he had received at UPS to make him an expert in pricing of homes; she replied. "He looks at many homes while making deliveries." Tough to argue with.

Below are some other common objections you get and responses you can give.

Objection: We need to get more because we are moving to a higher priced area.
Well let's hope that when you get to this higher priced area the seller of the home you like is not moving to Japan, some of the most expensive real estate in the world

Objection: Our home is close to the Hard Rock Casino.
So are all the homes I used in my comps.

Objection: We have a lot of money invested in our home
So, if you knew, you were moving would you have spent the money? More often than not they will reply no, because they knew they would not get it back. So why do you think you can get it back now?

Objection: I would like to retire early and need the extra money.


Objection: We would like to start high and come down
Explain that the most activity is early in the listing and they will never be able recapture the market when they do come down.

Objection: Could we try for a couple of weeks.
Yes, but not the first couple. as you will lose the impact that a fresh listing has when it first comes on the market.

Objection: We can always come down.
Use the Fish Story or Price it Right in previous blogs

Keller Williams Agents in Pembroke Pines Teach Home Sellers How to Fish

Keller Williams Agents Price Homes Right in Pembroke Pines


Objection: They can always make an offer.

Use the Fish Story or Price it Right in previous blogs

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Keller Williams Agents in Pembroke Pines Teach Home Sellers How to Fish

10-22-09
Mark Lyon, PA, CRS, CRB

Keller Williams agents in Pembroke Pines teach home sellers how to fish. Here is another pricing technique I use, and probably just as much as the Charles Kimble story, Keller Williams Agents Price Homes Right in Pembroke Pines in fact I use them many times together on the same appointment, if one story isn't bringing them to reality. I am not sure where I first got this technique to assist sellers in pricing their homes correctly, but I have heard the Howard Brinton Stars use it frequently on his Star Power Club which I subscribed to for many years. Let us all keep Howard and his family in our prayers as he fights his health battles; he has and will continue to be instrumental in so many of our careers.

Many people especially men have some knowledge of fishing and fish finders used on boats. When using it I draw a line which illustrates the water or ocean then a boat, fish hook and line in the water and then show the fish schooling below it, what is important is to demonstrate that fish rarely leave the school and swim up and take the bait, to home sellers that's the Buyer from New York, ever noticed how Floridian sellers think all New Yorkers are dummies and willing to pay more for their home than it is really worth. Well the fish leaving the school is the New Yorker; I say it's not happening. You must get them to drop their hook (price) into the school of buyers, in our market today, that's below the school, so the fish swim into it as they school downward.

When the fish are schooling downward the pro's in real estate prosper, for those of you experiencing a declining market for the first time, how well you teach your sellers how to fish will determine whether you have skinny kids or not.

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The Seller Told Me - Keller Williams Agents in Pembroke Pines

10-15-09
Mark Lyon, PA, CRS, CRB

The seller told me - Keller Williams agents in Pembroke Pines. A couple of years ago a relatively new licensed associate with another brokerage was telling me about his first listing taken. Knowing he had little or no training, I asked him how he determined the price. "Oh he replied the seller told me what it was worth", looking quite pleased with himself, I thought to myself , why in all my years haven't I thought of that, to just show up and ask the seller for the price, it would have saved me countless hours in CMA's.

 David Eiglarsh a top Realtor in the county whose office is in Weston and one of Howard Brinton's stars tells the story he once had with a seller trying to overprice, it goes like this.

After making a pricing recommendation to the seller based on the comparables the seller was still adamant about using the price he needed, David filled in the listing contract for a 20 year period and a 20% commission. The seller upon seeing the terms, replied in a surprised voice "20 years at 20% commission" David calmly replies with the price you want, it will take 20 years for the market to catch up to your value and I have to recoup my cost of advertising over the next 20 years that's why the commission is so high. The seller got the point and even though he did not list with David that day, the respect was built and when he was serious about selling, David received the call and The Eiglarsh Team  listed the property.

Well back to this creative agent, needless to say he never sold the property, nor did he last long, not surprising.

 
Share with us some of your funny stories regarding pricing issues that you have experienced. I'll share mine in my next blog along with some other common reasons sellers use for overpricing.

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Higher Learning-Among Keller Williams Agents in Pembroke Pines

10-12-09
Mark Lyon, PA, CRS, CRB

Higher Learning-among Keller Williams agents in Pembroke Pines. On a quiet a Saturday morning some time ago I was in the market center and while making copies I ran out of paper, we keep extra paper right next to the machine, when I opened the draw I saw that it was broken, which I already knew about and being a quiet day I decided to pull the cabinet apart and find out what the problem was and repair it, Guys I am no handyman but figured I could handle this.

What I discovered was that the draw called for 8 screws to hold the front and back sections in place, and only six had been used leaving the back panel weak. The result was a catastrophic failure due to poor assembly, that's what the FAA would have called it had it been an aircraft. It dawned on me that this cabinet would have come with a simple 2-3 page instruction sheet, which obviously the assembler ignored.


Life is full of simple instruction sheets and manuals just think about the driver's manual, it teaches you the rules of the road giving you the meaning of solid white lines and the different warning signs you see posted. There are driving instructors to facilitate and help us learn these rules so we don't have head on collisions due to human error. The Bible is Gods manual on how to live a prosperous and happy life dealing with marriage, health, death, money and wisdom. There are Priests, Pastors, Rabbi's, who instruct us on God's manual to help us avoid many of the pitfalls in life. Realtors have many handbooks and manuals, they cover FSBO'S to contact management programs and explain the different skills and techniques that a professional practitioner would need to succeed. There are dozens of professional trainers and coaches just waiting to train the untrained, ever thought how happy that would make your managers, team leaders and OP's not to mention you're trained peers and your customers. Once trained, the business of selling real estate becomes far less confusing. Which leads me to ask you, who's your coach? What training programs are you attending? What manual are you following? What are you doing to avoid your catastrophic career failure in real estate?

Let me know who your favorite real estate trainers and coaches are and why.

Mark Lyon is the productivity coach for the Keller Williams market center in Pembroke Pines

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Keller Williams Agents in Pembroke Pines Understand Positive VS Negative Negotiation

10-09-09
Mark Lyon, PA, CRS, CRB

Keller Williams agents in Pembroke Pines understand positive vs negative negotiation How many times have you submitted an offer to a listing agent and the price, and closing date are acceptable to the seller, but the agent has narrowed your inspection period to 5 days and your financing period to 10, not to mention inserted a " AS IS " addenda on a house that is brand new and flawless. This phenomenon among agents has become popular over the last 7-9 years.

In the early 90's when I was in commercial real estate I had an excellent and probably one of the more talented and better known commercial experts in South Florida, Frank Arata Jr. as a mentor. Frank always told me, and it made sense to me then, and still does now "Don't negotiate what doesn't strengthen your position in the deal and move you forward." General George Patton believed that a battle should not be fought if you could not capture some ground. When I look back, Realtors, only on rare occasion made change to these clauses, but then again that was when Realtors understood the goal was to sell and close the deal. Remember the legal minds that put these contracts together with all the default dates have many years of experience and collective input into the purchase and sale agreement we use. So let's look at these areas commonly changed by some less informed practitioners and how they actually begin to negotiate against themselves and their unfortunate customers and clients who hire them.

Financing Clause: Since this is almost always on the first page of the contract, this is usually where the listing agent begins butchering a good offer, or maybe even the buyer's agent is trying to impress someone with their knowledge of contracts reduces the financing commitment period from the normal 30 days to 10-15 days on a 45 to 60 day closing. When the listing agent has made this change what happens? The selling agent says to the buyer no big deal; just sign it, we'll get an extension. Three days before the commitment is required the listing agent begins to pull their hair out and jump up and down as though they were on a pogo stick, they then attack the selling agent like some crazed person in need of an exorcism and attempts to pass on their demons to the selling agent, they beg for an extension on the financing commitment (you can spot these Realtors they are the one's without hair and sweaty palms and blood shot eyes) no they don't terminate the contract, because they don't want to lose the deal, and were only puffing out their chests to begin with, they should not have changed what wiser and more sane people put as a default date, and you know what, they'd have more hair and live longer to boot. Be smart, make your life easy, keep your blood pressure low and enjoy the business and leave the default time periods alone. Trust me the attorneys who wrote it really do have a little more brains than we like to give them credit for.

Inspection Period: Guys give me a break, 10 days is a very reasonable time for inspections to be completed and for the life of me I cannot see what Realtors think they gain by changing this date. Look guys there are exceptions to everything, but before you just begin changing an otherwise perfectly acceptable contract, make sure it really does better your position in the negotiation

Limitations on the Inspection: This one is really crazy on a perfectly immaculate and flawless house the listing agent will lower the limit from the 1.5% to 0 or 1. Why? By the sellers admission there is nothing wrong. On a $400K purchase 1.5% = $6K by you lowering it to 1% it now = 4K when there is not even $500.00 dollars in defect, you are negotiating against yourself. It's simple if it isn't broke you don't to negotiate it.

We're supposed to be expert negotiators, let's begin by understanding the contracts, and making sure that the ball is going in the right direction so we don't score against our own team.

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