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Submitted by on September 18, 2008 - 4:11pm.

In dealing with large properties, you have to account for the emotionalities of the agents, too! There is a great deal at stake for all parties in a $10+million deal.

To answer your question, I believe it's important for the agent to always keep their cool, be clear with their client as to who they represent and use their experience as their guidance to the buyer or seller. It's clear to me when the agent on the other side of the deal has not established themselves with their client. Even though the agent may be in the position to bring the deal together to everyones satisfaction, not having credibility with their client will prevent the most obvious deals from coming together.

I've seen a $10million furnished deal fall apart over an armchair because the sellers agent didn't know how to couch the fact that the particular item was of sentimental value to their client.

I've found staying one step ahead of the client in the transaction, helping them anticipate possibilities, is a good place to be. If you don't have the experience to anticipate, then you should be working or mentoring with someone who does. The days of taking contract orders like big mac orders may be over for a while...md

Michael Daly
The Hamptons Real Estate Blog

 
Submitted by on September 18, 2008 - 7:49pm.

As a recent home buyer (I market and build our real estate website and don't actually sell property), I thought I'd prefer an agent with a softer sales technique. Someone who listens and suggests and ultimately waits for me make come to my own conclusion.

However, I'm not so sure this was so great for me when dealing with such a high ticket item. Even though I was in the the right place in my life to buy a home, it took me months to finally pull the trigger. You would think it was because I had a lot of concerns, but actually there was only one thing standing in my way of home ownership. It was your 3rd point, stalling on moving forward because I was paralyzed on the notion that prices would continue to drop.

It finally took an aggressive agent (and friend) to give me a good kick in the butt and tell me that the time for me to buy was now because I needed a home.

I hate to say it, but I think you need to be a great closer to sell property in this market. I wouldn't have purchased my home if wasn't for one.

--
Justin Britt
Head-Web-Head
Hawaii Life Real Estate Services, LLC
Oahu real estate | Real Estate Marketing

 
Submitted by on September 18, 2008 - 10:24pm.

Not sure what kind of friend would tell someone to buy a home in a market that is trending down. Maybe not a very good one.

Jeff Manson
American Dream Realty
Hawaii Realtor
Hawaii real estate company

 
Submitted by Damien Hall on September 19, 2008 - 5:59am.

Jeff:

I'm not sure I understand your comment. As a realtor, are you saying that homes shouldn't be purchased in this market?

If someone is buying a home for the long term, then they wouldn't be as concerned about their house depreciating as much as someone who knew they needed to sell next year. The homebuyer with a long term focus should buy now as prices have dropped substantially.

 
Submitted by on September 19, 2008 - 6:47am.

Jeff I have been listening to conversations like this and others and they are prime examples of why this industry is in crisis.

When you treat the house like a stock then you get answers like you just stated.

With that attitude get out of the business. Seriously, why bother, in fact everone should get out of whatever business they are in because all the conversations point to economic darkness. In fact I am not going to work today. How could I possibly sell my services when it wont matter anyway, the world is going to hell in a handbasket. It must be going to hell because that blonde chick and chissel chinned dude on the news just told me it is.

I am moving to Mexico man. Game over.

With all due respect sales people sell. Its does say sales license, not financial advisor in Hawaii doesn't it? Justin, I am sure said "I want a house". His buddy pre-qualified him. Justin I imagine said he would be interested in buying now if the right house came along and I am sure part of his answer wasn't if and only if "I can be assured a rate of 5% increase of more per year". Once he was qualified game over, Justin was going to buy, or his buddy should get out of the business.

When this ship turns around it will be because of sales people. And sales people are not sales people unless they sell.

Will all due respect......

Tim O'Keefe
http://www.spiderworkz.com - Real Estate SEO and Online Marketing
http://www.houseblogger.com - Real Estate First Online Marketing Blog
http://www.positiveonrealestate.com - "Positive real estate news only"

 
Submitted by on September 19, 2008 - 7:40am.

Rock On, Tim!!!

I'm exhausted by the negative nelly's with the gloom and doom attitudes. Remember all the bubble blogs that started 3 years ago? Well, if you do a rain dance long enough, eventually it'll rain! And you know what, we need rain too!
So, now we got rain...more in some areas than in others, but we adjust and do business in wet weather, because that's what we do! We don't sit around, wringing our hands, fretting over the lack of sun.

The 4 C's to Real Estate - Confidence, Committment, Contacts and Closing skills. Use 'em and make you own weather...md

Michael Daly
The Hamptons Real Estate Blog

 
Submitted by Jason Graves on September 19, 2008 - 8:00am.

Agents need to recognize when a buyer's anxiety is getting in the way of them making a sound decision.

I wrote a long post today on my blog, Raleigh Real Estate News. I'd love your opinions since it touches on a lot of what is being echoed here.

Election year politics no help to ailing real estate market Read it here: http://www.raleighrealestatenews.com/?p=360

Jason B. Graves
Raleigh, NC
www.RaleighRealEstateNews.com
www.JasonBGraves.com

 
Submitted by on September 19, 2008 - 8:03am.

Amen, Brother.

I see it in our area as well. Yes, we have slowed down but last year was crazy and some of us really needed a rest. Yes, my income has changed and I am to blame for most of that as I have taken advantage of the changing market and spent time with my family that I missed during the hot times. But there are still plenty of opportunities out there for those that want to get up off their duff, stop whining and get back to basics. Real estate is ever changing and unless you learn to smile and change with it, you are headed for a career change.

Thanks again for your 4C's, I will print them out and post it in my office as a reminder to get back out there!

Your Katy, TX Realtor,

Christi Borden, CIPS, GRI, ABR
Prudential Gary Greene, Realtors
Email: Christi@ChristiBorden.com
Web: www.ChristiBorden.com
Cell: 832-372-7470

 
Submitted by Joan Lorberbaum Moore on September 19, 2008 - 8:06am.

To All: This little snippet was emailed to me yesterday and its attribution was that it was from a "competitors blog." I think it's a great quote.

"Some sellers in South Florida are still living in yesterday’s higher prices, and some buyers wish they could live in tomorrow’s lower prices. My job is to get them both to live in today."

To Michael: Besides "Location,Location, Location" my next rule of real estate is "one should never lose a transaction over a chandelier." That rule applies to both buyers and sellers and I've sucessfully applied it to many transactions over the years. I, personally, would imagine that if a sale didn't take place because of the proverbial "chandelier" then either the seller couldn't detach themselves emotionally from the entire property and was looking for a way out. Or, the buyer had cold feet and it would make no difference how the selling agent couched the chair situation to his/her buyer.

Joan Lorberbaum Moore
Broker Associate, GRI
Lang Realty
9858 Clint Moore Road
Boca Raton, FL 33496
www.boca-delray-boynton.com

 
Submitted by on September 19, 2008 - 8:06am.

And I forgot to add...

If anyone in this nation thinks they have it bad, think about my fellow Galveston, TX Realtors who not only have lost their personal homes but have lost their entire inventory as well. Hard to work when there is nothing to sell and no one to buy.

Your Katy, TX Realtor,

Christi Borden, CIPS, GRI, ABR
Prudential Gary Greene, Realtors
Email: Christi@ChristiBorden.com
Web: www.ChristiBorden.com
Cell: 832-372-7470

 
Submitted by Jason Graves on September 19, 2008 - 8:16am.

I'd like to add a 5th "C" if I may- Consistency.

Jason B. Graves
Raleigh, NC
www.RaleighRealEstateNews.com
www.JasonBGraves.com

 
Submitted by on September 19, 2008 - 8:20am.

Joan,
Agree totally about the "chandelier" effect, however that's the point of the article; understanding that it's natural for buyers and sellers to experience highs and lows, attachments and detachments throughout the entire process and if we don't manage those moments properly, the deal could be lost for the wrong reason. BTW, those buyers who didn't buy that house over the armchair, later regretted it and if the agent was mature and sophisticated enough to stay in control, it would've been a different story...md

Michael Daly
The Hamptons Real Estate Blog

 
Submitted by on September 19, 2008 - 8:54am.

@Damian – no I am not suggesting to not sell homes in this market. That would be crazy. I agree if buyers are in it for the long haul and are not having anxiety about buying then you should do your best to help them. I personally know Justin (just for the record). He was obviously having some reservations about buying and all I said was not sure what kind of friend would push somebody to buy in a market that was trending down.

@Tim – Knowing Justin, I am sure he didn’t buy a home to lose equity. I am pretty sure he bought it as an investment as well as a home to live in. I like how you made a bunch of assumptions that you do not know are true. I can assure you that I am all about selling, but you also have to be truthful with the person you are selling too.

I have posted before letting agents know that they needed to get back to basics and start selling. Which are: prospecting daily for buyers and sellers along with good follow up. Now kicking someone in the butt to buy a home is not probably the best thing to do. Prospect more and you will find the ones that actually need to buy or sell. Closing the deal is easy if you have a qualified prospect that wants to buy and feels comfortable with you because you actually told them the TRUTH.

Its about helping people not just making a commission.

Jeff Manson
American Dream Realty
Hawaii Realtor
Hawaii real estate company

 
Submitted by on September 19, 2008 - 10:04am.

Jeff-
No one buys a home to lose equity and if that is what people are doing now (because just about anyone buying now or frankly anyone at any time risks loss) then I wonder how can any agent live with themself, if indeed that is your sales game? Again no wonder there is a crisis because if you are selling equity then you are rolling clients dice every time. Sell value (not dollar). There is other reasons than increase to buy a home. But if you assume everyone buys to make money,or not to lose money, well that is a stressful business life to live.

All those hits you get each week thru your website....The disparity of leads compared to visits seems to have increased over the last couple of years. Why? I have access to thousands of log analysis and see the numbers pretty much the same for traffic. LEads are way down. Why? Why would someone come to a real estate website and look at homes and not put there toe in the water as even a lead?

The interest is there folks. They in my opinion are being scared off by this up/down economic frame. If you create the value based on the market going up, you will die by the market going down, unless you get more game.

Change the frame back to fundamental values on why people really buy a home and sales will increase. Keep the conversation on home prices and you are a pawn in Bernakes game. People buy with emotion justify with logic. The prices going up was the logic and the emotion (greed and fear of lost opportunity) during the run up. Now all you got is loss as the emotion. You have no sale lever whatsoever.

Get back to why they buy. Basic benefits that go deeper into their own values. Freedom, independence, pride, family, etc. That has nothing to do with money. Very few people put a high value on money anyway. Dig deeper and it is to get freedom, family security etc.

Put another way then I guess that car dealers are criminals because they sell very expensive cars that are diminihed in value from the minute the car leaves the lot. They never see appreciation.

Of course price does matter to some degree but does it really? Take three apprasiers and they all will come up with three unique values. Add three more BPO's to the mix and now you have 6 opinions that are all wrong. Because all that matters is the buyer and seller and financier coming together on value. In fact talking about market fluctuations in my opinion is a big diservice,in any market. IT is what put money in most agents pockets during the run up. It was too great a temptation to sell increase and fear of loss. Its a fine line at times.
But you guys are not financial advisors and a buyer and seller are being misguided if
they are being sold on such matters. Again the house, as much as we would all love it to be is not a stock.

As far as the anxiety you mention, that is the salesmens job to alleviate. And as far as the friend pushing Justin, I took Justins comment as a relief that he got pushed. Maybe I was wrong. And then I would argue that the friend did not attach enough of the future utility or value he would get from the home so long as he lives there.

-Closing the deal is easy if you have a qualified prospect that wants to buy and feels comfortable with you because you actually told them the TRUTH.-
Telling the truth does not mean full disclosure ( please do not mistake this in terms of r.e. disclosure law). I have a friend who gets into realtionships and feels he has to disclose his sorid past. He of course quickly scares the girl off. Forgeting that his gal is interested in his today version of himself.

So does the truth mean that you have to tell the prospect how bad you think this market sucks? Or that you would not buy if it was the last house on the island? Or is truth that he can afford to buy a home now, wants a home now, and has chosen you to find him a home now, and it has nothing to do with your opinion?

You might wonder why I can give a rats you know what on this kind of stuff as a marketing guy, but I went thru the last down turn here in LA. Lost my keester and I saw my friends and loved ones lose theirs. I have had almost 20 years to digest that.

The industry is no different than it was then. Just more competition and more bad ideas than ever. You have discounters pop up, and to some degree get justified by the market, and this only validates the increase selling model.

With the deepest respect as an ex Realtor, please. At the end of the day you are paid to sell. Not give advice on the market. There are people much dumber than us , paid much more than us to give advice on where the market is going.

Put another way. There are few Realtors left from the time when I was in the business. Do they go around telling the TRUTH better, or are they selling more, while leaving their opinions out of the mix?

(When I say you I am not pointing you out per se Jeff. I mean you as the industry as I see this as a meme that has infected the industry for years)

Tim O'Keefe
http://www.houseblogger.com

 
Submitted by Eliese Pivarnik on September 19, 2008 - 1:09pm.

Tim,
Your comments are the best thing I've heard regarding this market in a while. Thanks for the reality check.

Eliese Pivarnik, Steamboat Springs Real Estate Broker Associate

Steamboat Springs Real Estate Blog

 
Submitted by Chris Adams on September 19, 2008 - 1:25pm.

To all,

Perhaps the real question is are you listening to your buyers and sellers-

...what are they saying?

Steven Stearns
www.obeo.com
http://obeoman.blogspot.com
262-325-8687

 
Submitted by on September 25, 2008 - 12:11pm.

Hello, Everyone!

I am honored to be in the company of such deep thinkers. Clearly you are all professionals and take pride in your careers, as do I.

Has anyone heard of the "Merlin Principal"? Basically, the concept is to plan your success in the future, then bring it into your present. How? You set specific goals for your success in the future (ie, I will triple my sales by Sept. 25, 2010) then placing milestones backwards on your personal calendar to today. Each milestone is the step you have to take to achieve your future-stated goal.

Like it? I do. With this principal, every day is an opportunity to adjust my actions to achieve each milestone. Advertising. Educating. Networking. Listings. Sales.

Keeping a finger on the pulse of the economy is wise, but not the barometer by which one should approach real estate sales. Maintaining a positive attitude, developing a relationship with clients to clearly understand their needs(hence, avoiding those emotional pitfalls), and keeping high value on the purpose of bringing buyers and sellers together can only achieve success, no matter what the market or emotional environment of the sale.

In other words, know your business. Be an expert. I think that is what we all are saying.

Thank you all for your responses.

Very best,
Julie Jones

 
Submitted by Glenn Ginsburg on October 6, 2008 - 10:17am.

"Conversely, buyers tend to stall on moving forward because they become paralyzed on the notion that prices will continue to drop. When buyers realize there is no “real right time to buy” they become more comfortable in continuing the transaction because they are looking for a new home now."

I would only use this if I could prove thru analysis that prices were stable or performed better than the overall performance for an entire area.

One other item - if the property represented an excellent value so that if values were to continue dropping it would be within the parameters set by the buyer.

Emotional rather than rational buying got us in this mess!

Glenn Ginsburg
A Delta Realty
Bonita Springs Florida
Copperleaf at The Brooks

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