Real estate marketing advice: Reason number 6 why sellers need to perform property inspections before marketing.

 

 

Before a seller places a property on the market they need to have all property inspections performed before they self market or list for sale thru a Realtor.

 

The reasons that performing these inspections before you seek a buyer are so important include:

1. Establishment of price
2. Learning the exact nature of the property
3. Misrepresentations
4. Avoiding price renegotiations
5. Error and omissions insurance coverage
6. Maintain arms length negotiations

 

Reason #6 is designed to maintain distance in between the seller and buyer.

 

There is an old saying that familiarity breeds contempt. Well, when it comes to a real estate transaction familiarity breeds altered negotiations.

Anything a seller does or says will most often be used against them in the arena of negotiations. The more a seller keeps his or her distance from a buyer or a buyer’s agent the less chance they will have to figure out what make a seller tick. What their motivation are for selling. What their negotiating strategy or lack of one is.

 

If a seller performs the inspection reports and gives a copy to an interested buyer before they negotiate they in effect create some very useful and necessary distance between them so negotiations will not be based from a point of familiarity.

  

If a seller is not careful they will usually tip their hand and show the buyers the real motivation behind their contemplated sale. These reasons vary greatly but this information can be used by the buyer to negotiate a better deal for themselves if they are made aware of the true reasons a seller is selling.

 The less time a seller is in the company or direct verbal communications with a buyer the better off the seller will be. Let the inspection reports do the talking.

 

At some point in the sales process it will become inevitable these reports are performed.

It is entirely in the SELLER’S BEST INTEREST to maintain this control and have these inspections performed at their own expense. In the long run it will always save the seller time, aggravation and money.

 

 

By maintaining a safe communication policy with the buyers a seller will insulate themselves from the possibility of sharing too much information with the buyers. Performing the home inspections in advance enables the seller to keep the proper distance needed to protect this policy.  The seller should let the inspection reports do the talking for them.

 

 

 

Real estate marketing advice: Reason number 5 why sellers need to perform property inspections before marketing.

 

Before a seller places a property on the market they need to have all property inspections performed before they self market or list for sale thru a Realtor.

 

The reasons that performing these inspections before you seek a buyer are so important include:

1. Establishment of price
2. Learning the exact nature of the property
3. Misrepresentations
4. Avoiding price renegotiations
5. Error and omissions insurance coverage
6. Maintain arms length negotiations

 

Reason #5 is entirely for the Sellers self-protection.

 

The inspection companies (and every professional) that the seller hires, must possess and show proof of proper error and omissions insurance or general liability insurance coverage. These insurance certificates are to be requested and obtained by the seller before any work is paid for.

The property inspection company is providing the seller with a fairly in-depth report concerning the exact nature about the property condition. This report will become the basis by which several different groups will form some very important decisions upon. The sellers shall base the worth of the property on the condition of how the property does or does not compared to other properties. Buyers will use to it formulate what they believe the property will need for repairs or improvements in the immediate future.

If the analysis of the inspection company should contain any incorrect information the sellers must have the security in knowing that they reiterated information that came from a reliable and fortified entity and that they are protected not just by the inspection company themselves but also by the insurance company that insures the inspection work.

Coldwell Banker Residential Brokerage, part of the largest real estate sales companies in the country has customers sign a “Disclaimer regarding service providers” which states the following “Coldwell Banker has not conducted an investigation into the qualifications or financial status of these service providers. So if the largest sales company feels the need to use this disclaimer the seller should demand that the service provider has adequate insurance coverage.

”It is nice to believe that the firm that is hired will stand up and cover their work by making good on any errors or oversights. However a seller needs to be guaranteed that this is actually the case? Sellers do not know the financial shape or ability of the inspection company as to whether they are able or not to make the seller whole after an unexpected issue arises. The seller is on a completely different footing if they know, in advance, who the actual insurance provider of the inspection company is.

 

 

 

 

At some point in the sales process it will become inevitable these reports are performed.

It is entirely in the SELLER’S BEST INTEREST to maintain this control and have these inspections performed at their own expense. In the long run it will always save the seller time, aggravation and money.

 

By demanding that the home inspection company a seller chooses to use has proper insurance coverage, a seller is in the position where the work will be guaranteed by two companies, the inspection company and their insurance company. Sellers cannot afford to risk their home sale to inadequate risks and hoping an inspector has insurance is just not good enough, they need proof.

 

 

 

Real estate marketing advice: 6 reasons sellers need to perform property inspections before marketing.

 

 

Before a seller places their property on the market they need to have all property inspections performed before they self market or list for sale thru a Realtor.

 

Why Realtors do not suggest this is beyond all logic because in the long run it will always save the seller money. This short term, up front, small expense has the potential to save huge money before the transaction is complete.

Types of inspection that may be needed (NOT ALWAYS!) include general property inspection, septic inspection, well inspection, pest (bugs) inspection, radon inspection and lead paint inspection. A good general inspection company will perform most of these types of inspection under one visit and the charge is usually several hundred dollars.

 

The reason that performing these inspections before you seek a buyer are so important include:

1. Establishment of price
2. Learning the exact nature of the property
3. Misrepresentations
4. Avoiding price renegotiations
5. Error and omissions insurance coverage
6. Maintain arms length negotiations

 

This is not to suggest that the seller needs to repair and remedy anything that the inspection highlights as needed. The seller can make as many or as few repairs as they see fit or simply price the property accordingly. I shall explain the individual reasons in more detail in subsequent articles.

 

At some point in the sales process it will become inevitable these reports are performed.

It is entirely in the SELLER’S BEST INTEREST to maintain this control and have these inspections performed at their own expense. It will always save the seller money.

 

Most listing Realtors allow their Sellers to fall prey to the renegotiations the take place after home inspections are performed. Seller need to take away this advantage and perform all property inspection themselves before they go to market with their property. This is in the SELLER’S BEST INTEREST and will always save the seller time and aggravation.

 

Real estate marketing advice: Check up on your Realtor and review your online listing information. The R/E Maven

 

 

Please go to www.realtor.com and lookup MLS#754553. It happens to be an oceanfront property for sale with an asking price of $10,250,000. It is known as “Seaweed” and is located in Newport Rhode Island somewhere in the Ocean Avenue area.

 

What is so special about this listing that I ask you go view it for yourselves? Namely what the heck is this Realtor attempting to sell for more than 10 million dollars? I cannot tell. There is only one Arial photo on the site and it is from hundreds of yards away. I’ll bet this property has all sorts of great and interesting character but I have to use my imagination to fully enjoy the experience of its architecture.

What are the seller or this agent thinking by making such a marketing 101 mistake?

Is this the agent’s fault? Is he perhaps too lazy or cheap to have some class A photography performed and shared. Or is it more than likely at the seller direction that buyers are to be left to guess what 10 million dollars will buy. Could it be that the seller’s ego so far out of line that they believe this one poor photo is good enough and why did not the agent demand better for all his marketing efforts. There is no answer good to these questions to justify this mistake.

My point to all of this is to demonstrate to other sellers that they should not be intimidated as to whether they are capable of marketing their own property. If this type real estate can suffer through this type of marketing with the assistance of a real estate professional then you can feel good about your own marketing efforts without an agent.

With the enormous exposure possibilities of the Internet sellers need visit the most popular sites and check and see that their Realtor has their listing located there and that all its information is correct and valuable.

Oh and one last thing, did you notice that the address to this property on the Multiple Listing Service is kind of a secret?

 

 

Real Estate Marketing Advise: Be careful of who you talk too! The Sellers R/E Maven

 

 

 

 

 

As a seller, when you enter into the real estate office that has your property listed for sale, how many people in that office are working for you?

 

Lets say it’s a big office and there are a total of 25 Realtors that work at this office. How many do you think work in your best interest?

 

Back in the 90’s the correct answer would have been at least 26 people. My math is not goofy because the total consists of 25 agents plus the office manager and you could even add in the entire staff to this number as well. Everyone one in the entire office was working for you, the Seller, and in your best interest.

Now it is just the opposite. There is only one real estate agent working in your best interest. The other 24 agents are working against you. That’s right against you! They all work in the Buyer’s best interest. Make no mistake about this, these two interests are entirely different and should be treated so.

The entire system has been altered and most sellers do not realize this vital change. The teams have changed in their entirety. Before it was representation of all the sellers, now it is representation of all the buyers.

 

The office manager is not even working in your best interest. They are working in the capacity of a deal facilitator. This topic of office management is very fuzzy and I will explore it in a later article.

When you now hold any conversation in what you consider to be your real estate sales office (after all you did hire this company) if it is of any consequence whatsoever, you need to make sure it takes place behind closed doors and only in the presence of one single person. The agent that actually has your listing.

Limit any public conversation at the Realtor’s office to just small talk. In common areas with other ears nearby do not discuss thing such as how you are pressured to sell or what your burning needs are for the proceeds money or how your personal life is deeply effected by the need to sell. Unless your intentions are to inform 24 other agents of the exact why, where, how and why you are motivated to sell and that you will most certainly accept less money because of the reasons you have just stated.

If any information that is shared by you in passing that can help out the negotiating position of one of the other 24 agents buyers, the other agents in this office are all duty bound to inform their buyer of this information that you have just innocently given away to them for them to use against you with their buyers. The buyer is entitled to any and all legal information that the Buyer’s agent is in possession of that will help the buyer.

 

Do you know that if your agent is scheduled to hold an open house at your property and he or she has a conflict and has another Realtor cover the open house, this fill in agent is not working in your best interest but rather as a facilitator? If an unescorted buyer should come to the open house, fall in love and make an offer through this fill in agent the agent would not be working in your best interest but rather in the buyers best interest. Did you just stand around with this fill in agent for the last two hours and tell them your life’s story and why you need sell? The other agent can and will now use you own words against you and it will most probably cost you money.

 

 

 

 

 

 

Real estate marketing strategies; SECRET LOCATIONS

 

Is the fact that your property is for sale a well kept secret?

 

If it is why even bother attempting to sell it.

 

For your property to sell efficiently you need to accomplish two things. The first is to be priced correctly and the second is for it to be fully exposed to the entire marketplace.

 

So if your property location is not disclosed then you are missing critical marketing information?

 

Many Realtors actually choose to omit the listing address from their own Realtor.com so the buying public does not know where it is located and they will need to call that same agent to find out the location. Take a look through Realtor.com and see for yourself how common this practice actually is.

 

Realtors omit listing addresses for several reasons. The first of which is a very selfish one on the Realtors behalf. It is so the Realtor can generate a direct relationship with potential Buyers. If the property address is omitted and a buyer desires to find out more about this particular property and the buyer does not have a buyer’s agent then the buyers will inevitably call the listing agent for more information about the property. If the buyer has any familiarity with the area, they will almost always want to know its whereabouts to edit the possibilities.

This call for the address sets up a chain of events that can and will only benefit the listing Realtor. It is usually in the listing realtors best interest to work it this way because the listing agent will now have an opportunity to become a “DOUBLE AGENT” and double his or her income in the process.

If at any time a situation arises that is in the Realtors best interest over the Sellers best interest then it can never be considered anything but a true conflict and this is one of those circumstances. How does the National Association of Realtors condone this behavior? In a fiduciary relationship there can only be a concentration of efforts on only one party and in the best interest of that party.

Under this common scenario it is not possible for the realty professional to work in the Sellers best interest. When the Realtor attempts to work for both the Seller and Buyer at the same time a Realtor can no longer work for the Seller best interest.

 

When the listing Realtor withholds the listing address they

 

• Attract direct contact with new buyers.
• The new buyers then become clients of the same listing agent
• A Dual Agent (“DOUBLE AGENT”) relationship with both seller and buyer can now be created
•  The listing agents fiduciary relationship with the seller now becomes diluted down to just a facilitator.
• The Listing Agent doubles the commission earned on the transaction.

 

So by with holding the address the agent gains more money and the seller gets less representation.

Withholding the address from the National listing Service’s www.Realtor.com is an extreme conflict of interest

 

 

 

 

 

Sellers need to get a commitment from Realtor before listing property.

 

Money is tight in real estate and real estate sales offices are no exception. Even the large national brand offices are cutting back on expenses and the largest expense that they have is their advertising budget. They are all hurting and cutting back on what they spend.

 

For your property to sell effectively it needs to be priced accurately and to be exposed to the entire marketplace. If this is not done because the Realtor’s office has financial constraints then they are doing you and your property a complete disservice.

 Know one knows where that one perfect buyer for your property is going to come from and you cannot afford to let anyone squander away any opportunity.

Spend some time and check out the agent you are considering too hire. What do their current listings look like on the other Internet marketing sites such as www.zillow.com, www.Googlebase.com, www.point2homes.com and www.trulia.com.

Are the descriptions great, is the agents bio and picture complete, are there plenty of pictures and do they utilize at least eight to ten of these sites? Remember that most of these sites are free so all that is required of the agent or their office is some attention to details and if they do not handle this properly you need to wonder what else they might be missing

Just as importantly because this is what the real estate office is actually going to need to spend some money on, you need to obtain an actual commitment as to where and how often your property will be advertised. This includes online newspaper advertising. Remember the majority or buyers use the Internet to search for property. Online newspaper advertising is a great vehicle to use. In most of the major newspapers it only costs about a dollar per day. So an excuse not use exactly what will cover your market is not acceptable.

 The reason that you need an actual commitment is that the larger offices have set papers that they use because they buy their online newspaper listing space in bulk. They save money by limiting their ad placement to these certain publications. If your property is not located in the particular marketplace where their set bulk buying relationships are it does you little good. An ad in the Wall Street Journal might be impressive but is it really a draw for your property?

 You as a seller need to prepare ahead of time and seek out which newspapers, large and small, serve your market area the most effectively. If you are not sure which newspapers cover your area then a good comprehensive source to start with is www.newspapers.com.

 

At listing time it is only appropriate for the Seller to demand that an advertising schedule be established and agreed to ahead of time.