Sondra TenClay

Almost every market in Michigan has become a "Buyers' Market" and because of that I have observed some disturbing behaviors among buyers and the real estate agents that represent them.

Let's set the record straight...if properties are properly priced, in good condition, and show well they will sell! Buyers shouldn't assume that, just because they look at something one day, it will be on the market for days and weeks in the future.

Secondly, Buyers' Agents need to make sure they are representing their clients to the fullest extent. These representatives cannot assume or let their clients assume that time is not a factor in securing a property of interest. Further they should be just as attentive to submitting offers and doing follow-up as they were in a more balanced market.

This past week was a great reminder of these thoughts. I had a luxury home listed at a very competitive price and everyone who saw this property recognized the great value it represented, even in this market. A couple looked at the home a week or two ago and expressed interest. Late last week they visited again with their agent and decided to proceed with an offer. Meanwhile a second party visited the home twice with their agent and we were getting other showing requests.

On Saturday afternoon I received a call from the first buyers' agent who said he had an offer (on behalf of buyers who had seen the property over a week before). When I asked if the offer was written he indicated that it was not. I told him that I would not notify the sellers until I had the offer in hand and encouraged him to get the offer to me as soon as possible so that I could proceed with presenting it to the sellers that evening. He indicated I would have the offer sometime on Sunday afternoon. It never came.... Meanwhile I was notified that the second party had great interest and would be writing an offer.

On Monday morning both agents were notified of the other's stated intentions. By Monday afternoon I had both offers. The first buyers' offer was very low. Both agents were notified that we would be presenting the offers on Tuesday and both were encouraged to let their buyers know that this was a multiple offer situation and therefore they should write their best offers. Both parties did, significantly increasing their offers.

Ultimately a deal was executed with Buyer 2 and sold over list price. Great for the sellers! Not so great for the buyers.

Here's my point...had the first buyers acted in a timely manner they probably would not have had competition to their offer and would have had a better chance at negotiating a deal. Had the Buyers' Agent not been so casual about getting an offer together and in to me there is also the chance that his buyers may have prevailed. Additionally, the second agent included a lender letter and earnest deposit copy with her clients' offer, the first agent apparently didn't feel it necessary even though he knew it was a competitive situation. One happy buyer was represented well while the unhappy buyers were not.

NAR studies indicate that negotiation skills rank highest (98%) in what consumers want and expect from us yet agents fullfill that expectation less than 50% of the time. Is it any wonder that we need to convince consumers of our value?

The attitude that the sellers were desperate, given that the house was vacant, and that no one else was likely to be looking cost these folks a fantastic home at a great price. On so many levels their agent failed to represent them adequately! I'm left wondering if he will have another chance!

Copyright 2009 Sondra TenClay All rights reserved

Consumers today are all looking for the highest value for their dollars. In a time when real estate values are declining, they are looking even more closely at the value of being represented by a real estate professional. The question then becomes "What is my value?" and what am I really providing in exchange for the revenue received.

For too long consumers and clients have seen us as sales people who try very hard to get a transaction to closing so that we are paid and on our way. We really can't fault the public since many in our industry have believed that ourselves. I always cringe when I hear someone say that they "sell real estate". In reality we are not selling real estate...we are being paid for our time, our knowledge, and our expertise.

My role as a real estate consultant is that of learning the needs, goals and desires of my clients then partnering with them so that they are educated about the process and the market and can make good decisions. We're very quick to give our opinions and input but often we don't spend enough time listening and educating to the knowledge gaps that exist. Often we assume too much, thinking that our cients already know and understand what is very basic to us.

Key words for me to remember as I help folks navigate the sale of a home or the purchase of property are to understand, guide, educate, and invite.

If I am to be providing value then my clients need to believe that I am a partner, a trusted advisor, a skilled negotiator and facilitator as we navigate together through their situation. If I convey those things then my value is clear and my client has been well served.

Copyright 2009 Sondra TenClay

I recently was at a luncheon which featured an economist as the guest speaker. Among his very interesting observations and comments he commented that it was too bad that the car industry was in such trouble now because for years they have told us as consumers what kind of car we want to buy (see how that worked out!:. Now ironically, even as they swim in a sea of economic turmoil, they are finally listening to what we really want to buy and beginning to produce those products. Is it too late for them?

As I reflected on that comment I realized that the real estate industry isn't so very much unlike the auto industry. For years we have told consumers how they should buy and sell real estate and have protected the information pipeline to force them to find information and assistance in very limited form. We have been afraid of providing what they wanted for fear of being irrelevant. Now we are finally realizing that consumers are demanding more transparency and access to the data and will go elsewhere to find it if we aren't willing to provide it.

Just as the auto industry is reaping the results of their business practices, we in the real estate industry are as well. Competitors have inundated the internet in attempts to capture those eyeballs and to provide what is wanted. Our practices have caused the consumers to go elsewhere for their source of information.

What we have come to realize is that the information is available in multiple places and consumers know how to find it. Does that make me as a REALTOR® less relevant and important to the transaction? No! Anyone can obtain information but it's the interpretation of that data, the nuances of the neighborhoods and communities and the perspectives I have that create value for my clients as they buy and/or sell property. The consumer needs to be aware that just because the information is available does not make it true or valid in their situation. Through the experience of many transactions I can assist my clients by avoiding the common mistakes, helping them find suitable financing in this difficult financing climate, and keep them informed of market trends and consumer behaviors. My value is still very relevant when I sit at a table with a troubled family trying to work through a potential short sale situation or, worse, a possible foreclosure. No access to data and websites will help that family navigate the troubled waters they will row through in the months and weeks ahead.

Marty Frame of Cyberhomes was recently quoted as saying that only a small percentage of the millions of visitors to real estate portals are actually in the market to buy a home any time in the near future. The takeaway may be that while listings have always been the main attraction for visitors, now those visitors are looking for information and gravitating to those sites that provide the information and make it easy to find. Since buyers begin to explore the real estate world as much as 12 months ahead of their actual search they are taking time to get familiar with the market, finding and returning to the places where the information is most helpful, consumer centric, and easily accessed. No longer are they interested in messages about our individual listings being "shouted" at them....they do not want to be sold....they want to be educated.

The question then remains....are we becoming relevant in time?

The sun was shining and a new year begun so we decided to take in the Richard Avedon exhibit at the Grand Rapids Art Museum this past Saturday. The GRAM is truly a Grand Rapids treasure with something for almost everyone. This particular exibition was facinating because of the technique and style Avedon utilized as well as the subjects chosen, both obscure and famous. We found the museum humming with people both young and old, each enjoying various exhibitions throughout the building.

Outside the streets and sidewalks were filled with folks enjoying the sunshine and attractions nearby. Rosa Park Circle, designed by the famed Maya Lin was packed with skaters of all ages, all able to enjoy the reflection of downtown buildings on a nearby mirrored facade. This downtown attraction was designed with water in various forms...frozen, liquid and vapor...and is a gathering place year round. One can rent or bring their own skates and skate for a minimal fee surrounded by the urban scene. Nearby are coffee shops and restaurants where skaters can warm up with hot chocolate and reenergize.

If you haven't taken time to take a stroll down Monroe Ave. of late you should find the time to do so. Things are ever changing and there's always something new to experience!

A fierce winter storm blew into West Michigan early on Friday dumping over 12" of heavy wet snow. Schools and businesses closed and life slowed to a crawl for a few hours!

I was out earlier today and found many neighborhoods still a maze of ruts and one lane roadways full of heavy snow waiting for plows to finish main thoroughfares before opening neighborhood lanes.

While the storm disrupted life for awhile it left red-cheeked children screaming in delight as they slide down huge snowpiles and I saw lots of cross country skiers in my travels today. As the sun made its appearance it reflected a landscape of trees still heavy with snow, creeks still running through snowy banks overhanging waters edge and acres of pristine, untouched snow.

Tonight it is snowing again and we brace for yet another storm. Or is it really a gift wrapped in white that causes us to slow down, nestle in and enjoy this season of the year away from the frantic shoppers and crowded streets and hurried schedules.

Copyright 2008 Sondra TenClay All rights reserved