Part 1 of “This Brokerage Has 750 Listings…..So they must be the best! ” was prompted by the fact that the Westchester NY real estate market had changed and as a result, I was getting more and more questions about what a brokerage brought to the table in terms of marketing. I emphasized the importance of choosing the right agent and that the brokerage itself was of less importance. I also indicated that there was a lot of smoke and mirrors regarding brokerage brands and what that means to the seller in terms of marketing the home.
In the end, I promised a sequel that got into more specifics. So here it is – six major myths about listing a property and marketing a property that are often trumpeted by our own industry. Its been said that if you repeat something often enough it becomes “fact” in the eyes of the consumer. So let’s put some of these “facts” to rest.
Really? How on earth does anyone come to that conclusion? You can have all the listings in the world, but if you can’t sell them, what’s the point? The percentage of sold listings is a bit more pertinant. However, even that number does not discriminate between individual agent performance.
Yup – it sure will be – along with every other listing in the ENTIRE MLS – whether you are listed with this brokerage or not.
Why? because listings and pictures are like crack-cocaine to buyers and that’s what these sites are designed to lure. The “bait” has to be the entire MLS or the buyer will be on to the next site in very short order. So rest assured your listing will appear on their site just like every other listing on the MLS whether your contract is with them or the small independent broker down the street.
It sounds really comforting. Many consumers believe that a big listing brokerage must be brimming with money to market their home. Why wouldn’t they do it if they stand to make so much more once the sale is complete?
There are a couple of problems with that notion:
1. That big plush brokerage has a big plush overhead to go with it! That’s a fixed cost that doesn’t go away and in many cases it has become a monster demanding ever more revenue to sustain it. Most brokerages are not nearly so flush with money as they were in years gone by.
2. The other problem is “risk.” By marketing a house the agent or/and brokerage puts money on the table and assumes a financial risk. The risk is that the house won’t sell. No matter how good you are as an agent or broker…its a game that you will not always win.
Most sellers would be shocked at how little a brokerages will actually spend. But the fact is that if a broker is holding 700 listings, how much money can they spend at any one time? If you spend $2000 on each listing that’s $1,400,000 in outlays – with no guarantee of success. HELLO!!! Do you see now what I mean about the risk issue?
Brokerages of this size are generally playing a numbers game. They throw 700 listings up against a wall and some will actually “stick.” The sheer volume of listings necessitate this approach. But how wedded to each listing can a brokerage of that size be? That dedication must fall on the individual agent representing the seller. Since the agent doesn’t carry anything close to a the volume of a major brokerage – each individual listing is of far more importance. This is another reason why sellers should look to the AGENT not the BROKERAGE when selecting a professional to list their house. .
If a brokerage has over 700 listings, how individual can the marketing plan possibly be?
Usually that means that the listing will be sucked up into the cookie-cutter marketing machine they throw at every listing.
In fact, if the agent keeps intoning “my brokerage does this, my brokerage does that” it is often a signal that they may well have divorced themselves from all but standard brokerage marketing. In this tough market that’s not a good thing. It is also a sign that nothing truly unique or outside the box will be brought to the table to help move the home.
WHOA!!! All I can say to this is RUN THE OTHER WAY!!! This may well mean that they are highly motivated to keep the sale “in-house” which is code for the agents have a financial motivation to do so.
This is a problem on so many levels, it’s hard to know where to begin. For openers it violates the spirit of the MLS. The MLS’s were created to level the playing field between competing brokerages so that buyers and sellers could work with whoever they wanted to without feeling they were at a disadvantage. Creating financial incentives to keep sales in-house throws a monkey wrench into that system.
It may sound great – having 500 agents looking to find you a buyer, but there’s a big elephant in the room. If the listing agent is motivated to keep the sale in house, what will they do if an agent from a competing office brings in the best offer? Will they push an ‘in-house’ offer? Even if it truly isn’t the BEST offer? The answer depends on the individual. I know many agents who would never compromise their sellers…but there are always a few who would. Bottom line: Why work with a brokerage that encourages this since it can almost invites unethical behavior? In the end, the numbers tell the story. There are roughly 6500 agents working in our county. Even if a brokerage had 1000 agents, statistically, it is far more likely that the “best” offer will come from an agent outside the listing brokerage.
Please see myth #5. Any buyer coming in through a relocation service will be looking at the entire MLS inventory…not just the listings within that brokerage.
So there you have it….six common myths about listings, agents, brokerages and marketing. I hope this adds some transparency to an issue that is generally a black box to consumers.
Further Reading:
© 2009 Ruthmarie G. Hicks http://thewestchesterview.com
Original Post:
There is something about the color of the leaves and how it lights up the sky that I find very compelling. Forget leaf peeping in Vermont – our season peaks later, but the foliage is just as amazing. At this time of year, people flock to parks in Westchester NY for the foliage and crisp weather.
This week had been particularly stressful – so Friday afternoon I escaped to the Rockefeller Preserve in Sleepy Hollow to regenerate. Among the many things to do in Westchester, this is among my favorite places to decompress and get back in touch with what it is all about. Although the leaves were more than half gone, the color of the sky and the sunlight caused the remaining leaves light up the sky with a full fall fire. Jade and Tundra – my faithful Huskies accompanied me and enjoyed the blustery cold air. We also ran into a friend from my brokerage – Monique another avid walker, arrived just as I was leaving.
Here are a couple of the photos I snapped along the way. As a nature Preserve, you get to see the beauty of nature’s wild side.
The video was created from still shots that I have collected during the fall of 2009 with a few from 2008 thrown in for good measure. To view the still photos go to my Flickr Feed.
© 2009 Ruthmarie G. Hicks – http://thewestchesterview.com
First published
Does size really matter? Do the number of listings or the size of the brokerage have anything to do with the ability of the agent to market and sell a home successfully? Is it the brokerage or the agent that is the determining factor?
One of the biggest issues I encounter on listing presentations are questions regarding the brokerage itself. Most questions revolve around marketing. What does the brokerage do in terms of marketing for the listing?
I think that most sellers assume that since the brokerage is “big” and has capital behind it, that they are the ones spending big bucks on marketing the home. But this is rarely the case. Many big-box national brokerages build on that confusion and perpetuate the myth that their brokerage “brand” makes a significant difference in selling a home for top dollar. They also tout their “marketing package” in terms of the amount of support they offer. Some actually stress that the number of agents in the brokerage somehow makes that brokerage better or somehow more able to move the property. With all the hype and misinformation out there it is small wonder that sellers are confused.
I would challenge these large brokerages who claim that their numbers speak for themselves to enumerate exactly WHAT they do to justify their claims? And while they are at it, I would like to have some hard numbers to back up their success stories. I haven’t seen any of them come up with any marketing advantage that holds up under scrutiny. Most of the time they appear to be blowing smoke. Don’t get me wrong, I’m not slamming big brokerages. That would be rather foolish since the brokerage that I am currently associated with is quite large. What I am trying to do is cut through the hype.
Who actually sells the listing? The agent or the brokerage? To figure that out you have only to listen to the words of “Deep Throat” in All the President’s Men. He told Robert Redford to “Follow the money!”
If a brokerage has hundreds of agents, it is likely that they have close to 1000 listings. Brokerages are business to make money on sales. For a big brokerage like this – the listings are a numbers game. Throw 1000 up against a wall and maybe half will “stick.” So how important is your individual listing going to be to that brokerage? Answer: not very.
But what about the agent? Most agents have just one to two listings at a time. Top producers can have as manay as 20-30. Agents are paid on commission. If the property doesn’t sell – all the work they did is down the drain….and there is a lot more to than sticking a sign in the ground. When a listing fails to sell an agent is out usually well over 150 hours of time AND they are generally out a good deal of marketing money as well. Do you think that agent cares if your home sells? You better believe it.
Take Home Lesson: Look to the AGENT to market and sell your home.
Stay tuned for part 2 – where some major marketing myths will be revealed.
Further Reading:
Mirror, mirror on the wall…who’s the fairest listing agent of all…Part 1:
Mirror, mirror on the wall…who’s the fairest listing agent of all…Part 2
© 2009 Ruthmarie G. Hicks http://thewestchesterview.com. All rights reserved. Initial post
The Hartsdale NY housing market is in buyer’s market mode. Prices for coops, condos and single family homes all experienced price reductions when compared with the third
quarter of the previous year. This was the second year of price reductions for the area. Volume was variable with single-family home sales being down 70% over the previous year while there was a slight increase in the number of coop sales.
Coop prices dropped 11.1% over the previous year with the average price being $192k for Q3 2009. That was enough to make them a desirable purchase. This was particularly true of East Hartsdale Ave. Demand remained high and volume was up 1% from 2008. There is a 5.8 month inventory on the market – making it a borderline buyer’s market in terms of inventory. Prices have dropped nearly 15% from Q3 2007 – which is roughly when sales prices peaked. This is still a buyer’s market, but the reduction in inventory and stable sales volume indicates that we may be near the bottom.
Condos didn’t fare as well as cooperatives. Sales prices were down nearly 13% from the previous year. The average sales price for the third quarter was $370k down from $425k in 2008. Sales volume was down 33.3% and there is currently an 8 month inventory on the market creating a definite buyer’s market. This market didn’t really start declining until after the stock market crash – so it may have some more adjustments ahead.
The price of a single-family home was up about 2.3% – however, I would not consider this to be a true improvement. The volume was so low, that this probably reflects the nature of the homes that actually sold more than an uptick in prices. Volume is down 70% from Q3 in 2008. Further, that low volume translates into over two years of inventory on the market – making this a definite buyer’s market. The market is down less than 8% from the peak indicating it may have a way to go. Sellers should price homes realistically, while buyers should enjoy great opportunities in the coming months.
Further Reading:
© 2009 Ruthmarie G. Hicks – http://thewestchesterview.com. All rights reserved.
Following the stock market crash of 2008, home prices in White Plains finally took a hit. This market had remained remarkably sturdy up to the fourth quarter of 2008. The correction has been an abrupt one. The third quarter market reports reflect a market that is experiencing a major correction. The declines are steady but not alarming. This is the first time that White Plains has have every single factor in buyer’s market territory.
The average price of a cooperative in White Plains has decreased to $181,000 – down $36,000 or near 17% from Q3 of 2008. Sales volume was also down 38.5%. Although sales picked up over the summer months inventories remain in excess of 12 months. This is an excellent buying opportunity and sellers need to be realistic when pricing their homes.
Condos have seen a sharp decline in prices. This is to be expected because during the boom a large number of condos were built creating a “natural” glut. Sales prices are down 16.1% over the previous year to $463,000 – down $89,000 over the previous year. Sales volume was down 20% over the previous year. Once again – this is a buyer’s market and sellers need to price their units to sell.
Single family homes fared slightly better – at least at the starter level. Homes in the move-up range were another story. WIth jumbo loans hard to get and with a large pool of would-be move up buyers dealing with a depreciating values in the homes they are in – this is to be expected. There is a glimmer of hope for entry level single family homes – but the rest of the market is languishing. Prices are down 13.3% or $85,000 off the Q3 2008 average.
Further Reading:
It is my pleasure to serve the real estate needs of buyers and sellers throughout Westchester County. In addition, I have a niche market for buyers and sellers with pets and their unique needs.
Welcome to Westchester, NY and thank you for checking my profile. I hope that I can be of assistance to you. Westchester is is an amazing county with many faces. Urban, suburban, with small villages, hamlets and parks as well as plenty of cityscape - you name it and we've got it. Located just north of New York City, Westchester is a highly desirable location and its varied nature means that it offers something unique for everyone.
Do you know those annoying agents that call you 24/7, knock on your door and make a general nuisance of the themselves? If you close the front door, they come in the back, if you close the back door they come through the window! Well, that’s NOT me! I do my best to work with people on their terms. In addition to providing my prospective clients with current listings, I keep everyone who contacts me up-to-date with current market conditions
Once a potential client is ready to act, they can be assured that as a life-long resident of Westchester, I am very well versed in what each town and village has to offer. This is important. In spite of all the hype about people buying homes off the internet, residential real estate continues to be a very local business. Understanding the nuances of pricing requires local knowledge. This is particularly true in a location like Westchester where the towns, villages and cities are each entities unto themselves. In Westchester, one minute you are in the middle a city standing next to the tallest buildings between Manhattan and Albany and five minutes later you can easily find yourself in a small village surrounded by single family homes and low rise buildings no more than three stories in height.
Beyond aiding in the actual transaction, my clients have a “team” of professionals at their fingertips. Contractors including plumbers, and electricians, moving companies, mortgage brokers, home stagers, decorators and much more.
Prior to selling real estate, I was a scientist. I mention this mostly because those who google my name will find several academic papers under my name. Rest assured this is an asset not a liability. Working as I did in the sciences means that I have a great deal of experience attending to details. That ability to follow up and nail down loose ends will help to ensure a smooth transaction through escrow - to a successful and happy closing.
Use this section to write about your specific areas of expertise. Do you specialize in first time buyers - listing high end homes - etc. Are there specific market area's that you specialize in? The more you write about your area's of expertise the more knowledgeable you'll sound to a potential buyer or seller.
"Selling your home and beginning the hunt for the perfect new one is a stressful experience. Ruthmarie Hicks helped alleviate that stress and made both our home selling and buying experiences pleasurable ones. Ruthmarie is a kind, accessible and patient agent to work with....She was exceptionally flexible when it came to arranging Open Houses and she made certain that 
our property was well advertised. When it came to buying our new home we were very particular in what we were looking for and owning a dog only made our search more difficult. Ruthmarie...would always make herself available for showings that worked with our schedules.We have already recommended Ruthmarie to many of our friends and look forward to working with her ourselves again in the future." Katie and John O'Dea
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