De-bunking the myth that "My agent didn't do a damn thing to get my house sold... she just got lucky and now I have to pay her all that money for nothing!"
Since "Luck is what happens when preparation meets opportunity," let's take a peek Behind the Scenes to find out what makes your agent (and you) so "lucky."
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
As the curtain opens on this drama, your real estate agent is showing property to out-of-town buyers for the 3rd consecutive day.
Scene 1. Phone rings...
Caller (You): Do you handle homes in (Fill in name of your community)?
Agent: Yes I do, how can I help you?
She speaks with you briefly and makes an appointment for later in the week. Then the agent's attention returns to the buyers she's working with today. They want to make an offer on one of the properties she showed them, so the next few hours are dedicated to preparing their offer, going over the details with them, and delivering their offer to the listing agent. The buyers head home to await a counter-offer, and your agent now focuses 100% on your real estate needs!
Scene 2. Back at the office...
- Agent sends you a follow-up email to thank you for your call and confirm your pending appointment.
- Agent searches and finds the public record on your property and takes note of the lot size, finished sq. footage of the house, zoning, assessment amounts, details of last property transfer, your property tax amount, and other relevant information.
Agent utilizes Google Maps or other Internet program for (1) a street view of the property and (2) an aerial view of the property which will indicate if the property backs to a major highway or a golf course, if it is on a corner or interior lot, if it adjoins a school or a junk yard... - Agent contacts utility companies to determine the average monthly costs for your property.
- Agent identifies nearby properties listed in the mls for sale and those under contingent contract and - based on the size, features, condition and location - chooses those most similar to your home.
- Agent identifies nearby properties listed in the mls that are sold/settled and others that are pending settlement and again - based on the size, features condition and location - chooses those most similar to your home.
- Agent checks the foreclosure list to determine if any nearby properties are pre-foreclosure, foreclosure or REO.
- Agent checks the public record for recently sold properties in your community so she doesn't overlook any that sold without an agent.
- Agent maps the selected properties to show their proximity to your home.
- Agent prints out mls listings for the selected properties and sets them aside with the map to provide you copies or, in some cases, to keep in the file she is building on your property.
- Agent researches market statistics for the zipcode where property is located and, depending on recent sales activity in the immediate neighborhood, she may also compile market statistics for your specific neighborhood.
- Agent calculates the average and median sale price, the average days on market, and the percentage of list price to sold price; she determines how many homes were on the market last month and how many sold so she can calculate the absorption rate; she determines how long homes were on the market before selling last month.
- Agent does the same for at least three prior months (perhaps more) to identify any trends.
- Agent creates colorful charts, graphs and tables to provide a clear visual representation of all this data.
Scene 3. Next morning, in her car and armed with a camera...
- Agent takes photos of your property exterior from the street, including close-ups of curb-appeal problems like fungus on the roof, dead shrubs in front, visible clutter in the carport.
- Armed with the list of six or more nearby properties (see above) and a GPS system, your agent drives past each property and takes notes... perhaps also some exterior photos of these comps.
- Agent photographs the neighborhood school, playgrounds or tot lots, golf course or beach (if any), community clubhouse (if any), nearby shopping areas or other assets of the area where property is located. NOTE: If the day is rainy or overcast, this will require a separate trip on another day.
Scene 4. Later that day, back at the computer...
Agent carefully organizes and reviews all the material collected over the past few days.- Agent customizes a written listing presentation for you, merging the comps, graphs, tables, maps and other information specific to your property with "standard" information prepared by the agent at an earlier time.
- Agent estimates the likely selling price of your property, based on the accumulated information and years of previous experience and training.
- Agent estimates your net proceeds after all closing expenses, based on the accumulated information and years of previous experience and training.
- Agent reviews the finished written product to confirm that it is clear, concise, and easily understandable - you would never imagine how many hours are invested in researching and analyzing these materials, or the expertise required for an accurate and reliable recommendation.
- Agent binds these materials with a cover sheet and gathers other previously prepared (or purchased) brochures and written materials to give you, as well.
Your agent knows that "Luck is what happens when preparation meets opportunity." Her thorough and accurate preparations are a key element in creating this "luck" for you... and the reason you pay her all that money - but not UNLESS and UNTIL she procurs a buyer whose terms are acceptable to you.
To be continued...
Behind the Scenes - The Listing Appointment
DISCLAIMER: Your agent may or may not do everything listed above. I took the time to write down these steps as I prepared for a listing appointment this week in Lanham, Maryland.
Copyright 2010. All rights reserved.
For answers to your real estate questions about Bowie, Crofton, Davidsonville, Fort Meade, Gambrills, Odenton and other communities in Anne Arundel County, Maryland, contact Margaret Woda at Long & Foster Real Estate, Inc. or simply click on a button below for information you can review online at your own pace:
We buyers agents go through similar situations where the buyer, after finding the perfect home the first day, may think their agent is making a lot of money for one day.
They don't realize that a lot goes on behind the scenes to prepare for that ratified contract/settlement.
I don't get those questions because I communicate with my buyers every step along the way so they KNOW how much work I'm doing for them and often they are surprised at some of the things that are done that they never thought about.
Margaret, I dunno! Sounds pretty simple to me!
Just kidding! It's nice to have someone remind us just what goes into a good listing presentation.
Margaret - in this market it is even more complicated, adn our role, whether as buyer agent or listing agent, is filled with a ton of tasks, informaiton to gather and share, administration, and more. This is a great start of just some of what we do. I have a list of the major tasks I perform that I share in my buyer's kit and pre-listing kit.
Jeff
The "myth" quoted at the beginning of this post is one I heard from a seller whose property I recently sold in three weeks for 97% of full price (with no inspections, no appraisal, no problems). This post is for him and all the sellers out there who look at the information we prepare for them and believe it's all computer-generated, with no time or expertise on the part of their agent.
It's really quite a production---behind the scenes...you did a great job of writing out the entire script! I think you're right about most people not really understanding all that goes on. It's the hardest job I've ever had!
Margaret - Bravo, bravo and the Oscar goes to...... Margaret. You have done a fantastic job outlining what really goes on behind the scene when it comes to a listing presentation.
Great idea for a series. Consumers who read this will really have a better understanding of the hard work that goes on behind the scenes. I agree, BRAVO!
Very nice outline for the script...when do we make the movie? Who will play you?
Great post. What other profession spends not only many hours, but sometimes days prepping just to get the job. Imagine what it would be like if Doctors, mechanics, plumber, attorney's anything else provided us this service for free? In many cases just an initial professional consultation cost consumers hundreds of dollars....
Most professionals charge an upfront fee- we don't get paid till the job is done.
I definitely will advise clients to read this post if they think we get paid for doing nothing. Looking forward to the rest of the series.
Wow, what a list, I did not know I worked so hard......lol
This is a definite keeper and passer on-er....thank you so much for YOUR hard work!
Margaret, yes, there is an incredible amount of work that goes into it. AND that's not counting the classes and experience that gets us to that point!
I love this. What also cracks me up is when they think you should reduce your commission because "the internet is FREE!" (Yeah, it free alright ... for consumers.)
Great post...... Most people don't understand how much is involved in listing a property. I didn't realize that I worked so hard. I can't wait to see how much work I do at the listing presentation.
Do you think home sellers have any idea how much work we do just to apply for the job? Before we even get the listing? I think it's time we started letting them know.
Just to kill time, on a recent road trip from Dallas TX to Crofton MD, my husband and I started a list of details that go into any real estate listing, and we had many pages by the time our trip concluded. My hope with this series is to bring some "life" to the list - which, in itself, is a very boring read!
What an awesome post. Truly worthy of being featured for content as well as just plain good looks.
I never thought about taking photos "including close-ups of curb-appeal problems like fungus on the roof, dead shrubs in front, visible clutter in the carport." That's an awesome idea I'm going to add to my rouitne.
Margaret, This post and the "to be continued" should be required reading for every home buyer and seller.
Margaret - Great Post! I think we can all relate whether it's with a buyer or a seller.
Margaret, My favorites: Lucille Ball said: "Luck to me means hard work - and realizing what is opportunity and what isn't."
Stephen Leacock said almost the same thing: "I am a great believer in luck, and I find the harder I work that the more of it I have."
Luck is also known as: 4 scenes, 22 steps, and more to come tomorrow! That's what makes you so "lucky"!
:) Kate
Margaret, What a great list of everything that goes into preparing for a listing presentation. A lot of work does go on behind the scenes that our client is never fully aware of.
Have a wonderful day,
Anne Rains
Margaret, Terrific outline of just some of the things we do BEFORE the listing. Look forward to your follow up posts in this series.
Margaret - You've got a follower! Very nice intro to the listing appointment. Great idea! And congrats on the feature!
Great post for all the doubters out there. Listing agents don't just list homes and wait, just as Buyers agents don't just show homes and write offers...I agree with Lenn, educating clients as you go along is the most effective way of de-bunking the myth that real estate agents have a cushy job!
Margaret ~ your post gives clients a realworld look into the life of a Realtor. If only everyone knew how hard you guys work!
Margaret -
Great, great idea for a series. Kudos to you for actually sitting down and listing out the exact steps you take. It is so easy to either lump some of them together or dismiss some as "well everybody does this" but you have clearly defined what YOU do - and do so well.
Michael
This is a great post. We all know what we do but it is a matter of communicating that to our clients and potential clients. This is worth keeping to remind us.
LOVE IT MISS MARGARET! This is a great way to show people that we don't just "throw the sign" in the yard. Awesome series!
Ickcellent! Now please debunk the myth that if a buyer finds the house s/he eventually buys s/he was robbed!
Glad they made this one a featured post. I hope you put it into the general public channel. They need to know that we "Work Hard for the Money"
I like this idea for a series. Gives everyone a 'behind the scenes' look at what an agent does. Congrats on the feature.
Margaret, well done, and so true. The key to the efforts is to never let them see what it takes so you have that professional and polished image. However, even Dorothy was surprised when she looked behind the curtain to see how much the wizard actually did. Good post
Thanks for putting this on your public blog. Consumers need to know how much goes into a listing. I'm tired just thinking about it! ;-)
Oh Margaret -- well written! But seriously, it's not just ONE deal . . . it's the many, many leads we go on, the hours of meeting with people (I provide a free one-hour consultation before I begin to work with a client) that don't pan out. In my consultations, I can easily spend up to 3 hours (drive to/from, organizing my marketing materials, etc.) And on the days when I meet with people and it's a good conversation, the one-hour can become two! The listing agents (and I don't list) spend hours on their comps, CMA's, going out to various sellers' homes . . . never obtaining a signed listing contract. The hours and hours we take with all our clients -- so sure the ONE deal that took ONE day . . . but what about the listing that's been on the market for 6 months? The buyers that have toured 50 homes, and have written 2 offers . . . all not going anywhere. Our job is a combination of A LOT of variable factors, countless hours that DO NOT provide a closed deal!
Unfortunately, when sellers or buyers see the HUD, they see the commission -- but not the hours, and hours of CUMULATIVE work we've done that did not produce an income at all. It's not just one client, or their one deal.
NOT to mention the months and months that can go by in the late fall through early spring that provide STAGNANT markets in most parts of the Nation! (No one shops much in snow, rain, sleet, ice).
Hi Margaret! This is great.......we really do a lot that folks don't realize....
This is super great. So glad that I stopped by your blog Margaret. Congrats on your featured Gold Star and soon to be listing in Lanham,Maryland. Definitely looking forward to the sequel to this Oscar nominated blog-"Behind the Scenes-How an Agent prepares for listing your home"
Margaret: No kidding - our hours and hours of preparation appear to just simply happen like magic! Great agents exercise a lot of planning and preparation. We know what the other agents do - or don't do - don't we?
Margaret,
That certainly sounds like a whole lot of work!
But, really, do sellers want to sweat it out for another 6 months? That doesn't make any sense either.
Brian
Hi Margaret - I do believe in doing a lot of preparation before a listing appointment and preparing a full customized listing presentation in a nice binder. Then I give the client the full binder when the listing is signed, so they have all the information they need. Also, the binder has pockets and places to keep some of the other documentation associated with their sale.
I think giving them data about comps and calculations and recommending a listing price that has facts and figures to back it up can help get the client to agree to a price they might not otherwise want to use and make for a faster and easier sale without the drama of having to go back later and talk them into a price reduction.
And as for luck, another quote I like is "The harder I work, the Luckier I get."
I think that many agents would be able to defend their commission if they actually wrote down what they do for every sale. It can be eye opening.
This is such an awesome series. I LOVE it... It gives such a huge insight to consumers.
WoW !!!!
This may be one of my favorite posts of the year Margaret !
Brilliantly organized and presented, and easy & fun to read !
... and of course, great info that many consumers wont possibly know about their listing agent !
Love it !
Cheers !
Sheldon
Tired just reading it. I figure it takes about 6-8 hrs. to come up with a price. Amazing how customers think you can just pull one out of the air over the telephone. Interesing thing, tho, I would love to compare this list with that of appraisers. If you had 10 professionals going thru their process, would it be expected that there would be a general consensus or would we see large discrepancies?
Great Blog - very good info and comprehensive.....Margaret....
I really enoy this blog. Thanks for getting it out to us today at AR
Patricia AUlson/portsmouth nh
This is one of the BEST posts I've read in weeks! I don't think the sellers -- or buyers -- have any idea how much work is going on 'behind the scenes'. I've gone on four listing appointments this week and spent many, many hours just trying to come up with the appropriate list prices.
Hi Margaret -- Exceptional advice and I hope every seller read this to gain a new found appreciation when a "good" agent does this to add tremendous value.
The best agents are always the most prepared, & polished. You do, indeed, make your own "luck".
Nice job!
And the crazy thing about this Margaret, is that if we all spent the time doing this for every listing appointment we go on, how many of those appointments do we actually walk away from with the listing in hand? This is nice to let people know the work we put into doing our jobs for them ahead of time.
Excellent post you certainly go in with guns blazing..well prepared..Thank you
HELPFULHANNAH
I don't think any of the sellers out there even think about all the processes we have in place to assist them in the sale of their home. Great post on the activities we go through for sellers.
Thank you for comments. I know you understand if I procrastinate on acknowledging your comments individually for a few days - 'just got back from a week in TX, and tomorrow I'm headed to NJ. I WILL return!
As agents, we get very defensive when someone suggests we "just got lucky" and didn't do anything to justify the commission we earn. I think our industry made a mistake when we worked so hard to make every real estate transaction seem so easy by doing everything behind the scenes.
"Preparation meets opportunity" - so true. Luck favors the prepared. This is a great behind the scenes to help a seller understand what we do.
Hi Margaret. Preparation is key and often underappreciated :-)
Wow, when do you get time to sleep? I hope this is a part of the series challenge because I want to read the next chapter. This will be a real page turner. FYI, you had me at absorption rate.
Well that sums up several hours work really well. I should make a post on the appraisal process I do as well. I am a real estsate Broker, but also a certified appraiser. I love that part of the job. It pays less but is less stress than the realtor has to endure, and short lived for the job time. Hummm, makes me think how everyone thinks an appraisers job is the 15-20 minutes in the house, and that we make the BIG bucks, lol. No idea on the preparation before the inspection (3-4 hours), driving time, inspectin and sketch (I do the entire sketch as a floorplan), photos of all the comparables, (1/2 to 1 hour), input time (1-2 hours), the hours of evaluation (another 2-3 hours), and for a meesly $350. And now lenders want us to work for much less, with all the HVCC stuff. Last time I looked my expenses keep going up, gas keeps going up, ink, paper, car expenses for maintenance. Not to mention office costs, computer, insurance, E&O, and the asssistant we need so we can process the work quickly. Now we can't even communicate with the realtor, or loan officer to get their opinions. I think we should be paid more not less. Kudos to you for being able to put into writing the details of the job we do as Realtors so automatically when listing a property, that is from experience and doing quality work. Then they review their listings each week, etc. As a fellow Realtor I admire the ones who can deal with all the crap sellers and buyers bring to the table. Its not who will list for the least commission but who will do the better job. Personally I think a great Realtor is worth a lot more than 3-4%. Wish I could get lenders to see it that way for the appraisal side. I'm worth $500 per report, not less, I do a great job and can back up anything I do. The great appraisers may be out of business and you will have to deal with newer unexperienced appraiser who work for this weeks pay, not thinking of the taxes that have to come out of that smaller pay they are willing to work for. We figured it up one time a few years ago, Out of the $350 fee, $125 of it goes toward office expenses, and if we then take the remainer and figure out the hours it took to complete the report (we will say 8 but many times it is more) that means we are working for $28.125 per hour and thats gross, before gas, our own E&O, and don't forget self empoyment taxes and then federal and state TAXES. Now figure that out with taking appraisal jobs at $225 to $275; guess we are working for free. THANKS
Hi Margaret, Excellent outline... You shouldn't ever hear it said that you got paid for doing nothing! Looking forward to reading the next one.
Hi Margaret, Congratulations on feature post! Great Post! Yes people do not realize how hard we work to do a listing, ect.. thanks for reminding them..
www.charlottelakewyliehomes.com
Thanks for writing this Margaret...I posted a facebook update about a house that I received an offer on within 1 week of listing and promptly had an agent point out that those scenarios are why consumers think we make too much money. How about the fact that I did the up front work and marketed and priced it right to get to that point? It's not just consumers that need to know - obviously some of our own need to see what goes into a proper listing presentation and how much work it is.
Margaret, I'm tired just reading this and I'm only sipping my coffee! Seriously though, thanks for this insightful testimonial about how much hard work you put into to creating your own luck. It's also a good argument for having Professional Stagers take on the task of staging so that you can do what you do best...sell the property! I'm looking forward to chapter two...after a good night's sleep!
Margaret, you are so right about the "behind the scenes" activity. You almost want to print out the details of what is being done so they understand how you are earning your keep.
In my resume I give the sellers a list similar to yours of all the things I have done thus far, then what I will be doing week by week for the next 90 days, also a list of things they will be doing, passing out business cards with their home on it, posting flyers within a five mile radius of their home and two open houses with in the first month, then I give them a list of my 101 irrefutable things that will go wrong during a transaction, including agents leaving lights on, doors unlocked and them not getting any showing in the first week because they have overpriced.
I can see you were a Girl Scout in your early years, "Be Prepared". Thanks for the great post.
I agree, it is time to let sellers peek behind the "For Sale" sign and see the time and effort behind it. I'm looking forward to the rest of the series.
Margaret,
Great post. I've always thought that one of the problems with being a competent, experienced agent is that you make the buying or selling transaction so problem-free that buyers and sellers DO think that you did nothing to earn your commission. Personally, I don't like to give out lists to justify my commission because there's always another agent who will do one or two things more. As Lenn said recently in a post, it's not what you do for the client, it's what you KNOW.
Margaret,
I SO wish you were in my area! What a joy it is to work with someone who puts the time and effort in, not just for their existing clients but for potential clients as well. That's not to say there aren't great agents in my area, there are but it's always nice to meet more!
Thanks for all you and others like you do for your clients and those of us who get to work with you, as well!
Margaret,
Thank you so much for spelling out all the work we do. I am going to bookmark it and the next time a client thinks it is so easy to prepare for a listing, I will send this off to them.
Mrytle,
I totally agree with you that appraisers are not being paid enough and wwe will soon lose most of the good appraisers if we have to keep going through 3rd party companies. They are taking money that should be going to you. As a loan officer, I know I cannot talk with the appraiser, but I believe, that as a real estate agent, I can. Let's get this system changed!
Hi Margaret - If I was a seller this would be impressive. What I've found in talking to buyers and sellers and seeing the materials (or lack of) that are left behind by other agents is that less than 1% of the agents approach this level of comprehensiveness. It's definitely something to aspire to!
Nothing is every as easy as it seems and most people do not know how much work we do (or in some cases do not do). If they did they would pick the agents better.
Great post Margaret.
When I went to file this link, I found another I had saved that was posted on the Orland Realtors Association site. It gave 200 things we do as a full service Realtor. Looks like we can credit Paula Bean for this one.
"The Realtor®'s Critical Role in the Real Estate Transaction"
http://filelibrary.myaasite.com/Content/0/621/9574649.doc
Damn good post, Margaret!
Excellent post and an eye opener for all prospective sellers.
Thanks to Margaret, for putting this in text. I have bookmarked it and will put it together with your following blogs. I will bind them and keep them ready for you know when! JIM-IN-PARADISE WWW.ParadiseJim.com
No reblog on this? Great post that offers up behind the scenes energies & strategy.
Margaret... I'm impressed. I book marked this to share with my clients, that even though you do a lot online, there's still a lot of 'good old fashioned' work going on... Nice post, thanks.
Margaret, Great post! Would be a great comparison to what's done for a "MLS listing only" listing some of the discount broker's offer. -Mako
Yep...leave it to you to do a kick bu-- post on this subject. I've yet to come up with my "list post" but I'll hopefully have one tonight!
As everyone else has said...well written....worthy of something !
I'm so embarrassed that I haven't been able to comment to everyone - I posted this and left for vacation, came back for a day and departed again. I promise, I shall either reciprocate on your blog or comment on your comment before the month is over! Thank you so much for taking the time to read this.
I don't think anyone realizes how hard our job is. None of us was probably aware of just what we were getting into when we got our license. I'm mentoring a few new agents and it's been a rude awakening for some of them!
Jenny - I think most of us would agree! Actually, it wasn't this hard when I started four decades ago... it kinda evolved and my job got harder incrementally. It wasn't always this way. LOL.
Great post! This is a step-by-step way of explaining the behind-the-scene preparation that an agent does before the 1st meeting! To a client, the work of an agent may seem mysterious. To ease some of the skepticism, I think a list like this needs to be included with every listing presentation. Great work!