Do You Need A Real Estate Pro?
I asked the question because it is absolutely critical for consumers to define our legitimacy and value for themselves. Hopefully, by offering our own ideas of how our service expedites and smoothes the process, the consumer comes away with sound reasons for using real estate agents.
Some people prefer to walk the new or used car lot alone with no help (read interference) from a sales person. Others want a full-blown tour of the lot as the sales person explains different makes, models, and options.
Much like home shopping, car shopping involves many of the same issues of home ownership. Big-ticket item, insurance, registration, taxes, paperwork and a myriad of other details attended to by the salesperson and dealership.
In essence, the car salesperson expedites the sale and transfer of a vehicle to the end consumer. For that service, he or she receives a commission. Those who know the auto sales business understand that good moral fiber, honesty, and sincere service are rewarded by repeat business from the family and friends of the buyer.
How different is this process from introducing folks to our listings or working as a buyer’s agent? We have a copious amount of proprietary information we can easily access for answers. The consumer can also access the same information, albeit more slowly and perhaps less accurately.
Buying and selling real estate is not rocket science. As real estate professionals, we should be careful to define what our functions are and how they serve to benefit our clients and customers.
A good agent wears many hats and is an expediter. Quite often we act as the middlemen/women between two views that need melding and agreement. Whether negotiating price, getting tax information, scheduling and conducting viewings, we certainly perform valuable services for those who understand how special knowledge lubricates the buying and selling process.
John Kavaller
Tuesday, September 7, 2010
Monday, September 6, 2010
Other People’s Money or Why You Need A Real Estate Pro
The Real Estate Industry is flush with jokers, red herrings, and fast talkers. As with most businesses, the opposite is also true. Professional and ethical sales people are legion as well.
The professional real estate sales person, especially those who earn a living based on commission alone, barter time, energy, and hopefully expertise, for a payday upon closing. The agent performs a valuable service in return for substantive remuneration.
Conceptually, what could be better than using other people’s money (OPM) to earn your own living? Typically, the seller pays a commission upon the successful completion of a sale. The listing broker and or agent leveraged the seller’s resources to gain specific financial gain without risking a dime.
Sounds like a super model to me. Much like the auctioneer who receives a seller’s premium, buyer’s premium, or both, the broker/agent gets a cut off the top thereby earning a healthy living for his/her trouble.
Buyer’s agents often represent clients for a stipulated commission that is akin to a professional consulting agreement. Much like an attorney receiving a specific award percentage for services rendered, the buyer’s agent gets paid by successfully completing a sale for his/her client.
Opening shop requires a license, perhaps a sponsoring broker, phone, computer and access to listings. Start-up costs can be minimal when compared to the expenses borne by other business models.
Is it any wonder why so many seem to be involved in real estate sales? Of course not. And—why the heck do you need one of these people to represent you? What can a real estate agent possibly do that you can’t?
Glad you asked. Let’s use the attorney example. You can represent yourself pro se in court if you choose to. If you believe you have the skill, experience, and determination to win a tort case, you may opt to argue your case as a layman.
Chances are, you won’t win, but you certainly are welcome to state your case without a professional at your side. Most personal injury lawyers don’t get paid unless they win your case. So, you aren’t paying for services unless there is an award in your favor.
Where is the downside? Oh yes—if you manage to win an award pro se, you get to keep the entire award. And, if you lose, you get zilch. Would you truly consider representing yourself after your auto accident?
This logic also holds true for representing yourself in personal real estate transactions. Of course, you have the right to carry out the mission. If you are a buyer, why would you try to navigate the real estate tide by yourself? The seller is paying out the commission, not you.
You may reason you can cut a better deal with the seller by cutting out an agent. Let’s say the seller must pay a 6 percent commission upon the successful completion of his home. Makes sense to ask the seller to reduce his price by a minimum of that amount because of the commission savings. Right?
Not a bad strategy, but you, the potential buyer are leaving a whole lot of money in the seller’s pocket if you haven’t correctly assessed the market. If you’re negotiating 6 percent below asking price, you’re probably paying too much—especially in today’s market.
So go ahead and lowball the price and negotiate up from your first offer? Sound right? Could be a good strategy, but maybe not. Maybe the owners will just tell you to get lost. Maybe you don’t care if the seller’s walk away; but I’ll bet if it’s a home you really want, it makes a very big difference.
Now what do you know about obtaining a mortgage? What do you know about points, application fees, FHA programs, Fannie Mae, Freddie Mac, home inspections, title companies, deed filing, transfer taxes?
Who writes up the sales contract and why? What happens if you don’t understand the contract or want revisions? What the heck is agency anyway and why does that affect you? Should you hire an attorney? Is it mandatory to hire a lawyer for your transaction?
There’s an oil tank in the ground. Should it be tested? Is it leaking? If it is, who is responsible to get the mess remediated. What the heck is a binder and what happens to it if the deal falls through? Leach field, your own well, colliform? Hm? “Ah-just dump some bleach down the well head”—“say what”?
Sure—there are a lot more situations and circumstances that arise in real estate transactions. And frankly, with a computer and some commons sense, you can probably find the answers for yourself. It may take you substantial time, but you certainly can go it alone if that makes sense for you.
For the Seller—Want to save on the commission paid out? May not be a great idea. You may wind up saving a few percentage points, and losing out on a much higher selling price because you don’t do this sort of thing for a living. You may wind up pricing incorrectly for the market place and sit twiddling your thumbs whistling Dixie.
Or you could get lucky—really lucky and have a buyer come along and give you exactly what you want. In today’s market, that is even more unlikely than it was several years ago.
For the Buyer: What is the downside of using a professional real estate agent? I can’t think of one. I could send you a link to the National Association of Realtors site listing all the benefits, but then I’d be accused of be a talking head for NAR and entirely unoriginal—perish the thought.
At any rate, share your ideas as to why or why not using a real estate pro is the way to go or not go. There will be those that consider the logic here entirely self-serving with no merit whatsoever. If you are among that tribe, craft a response that presents your side of the issue. I am sure the public will appreciate your perspective.
The professional real estate sales person, especially those who earn a living based on commission alone, barter time, energy, and hopefully expertise, for a payday upon closing. The agent performs a valuable service in return for substantive remuneration.
Conceptually, what could be better than using other people’s money (OPM) to earn your own living? Typically, the seller pays a commission upon the successful completion of a sale. The listing broker and or agent leveraged the seller’s resources to gain specific financial gain without risking a dime.
Sounds like a super model to me. Much like the auctioneer who receives a seller’s premium, buyer’s premium, or both, the broker/agent gets a cut off the top thereby earning a healthy living for his/her trouble.
Buyer’s agents often represent clients for a stipulated commission that is akin to a professional consulting agreement. Much like an attorney receiving a specific award percentage for services rendered, the buyer’s agent gets paid by successfully completing a sale for his/her client.
Opening shop requires a license, perhaps a sponsoring broker, phone, computer and access to listings. Start-up costs can be minimal when compared to the expenses borne by other business models.
Is it any wonder why so many seem to be involved in real estate sales? Of course not. And—why the heck do you need one of these people to represent you? What can a real estate agent possibly do that you can’t?
Glad you asked. Let’s use the attorney example. You can represent yourself pro se in court if you choose to. If you believe you have the skill, experience, and determination to win a tort case, you may opt to argue your case as a layman.
Chances are, you won’t win, but you certainly are welcome to state your case without a professional at your side. Most personal injury lawyers don’t get paid unless they win your case. So, you aren’t paying for services unless there is an award in your favor.
Where is the downside? Oh yes—if you manage to win an award pro se, you get to keep the entire award. And, if you lose, you get zilch. Would you truly consider representing yourself after your auto accident?
This logic also holds true for representing yourself in personal real estate transactions. Of course, you have the right to carry out the mission. If you are a buyer, why would you try to navigate the real estate tide by yourself? The seller is paying out the commission, not you.
You may reason you can cut a better deal with the seller by cutting out an agent. Let’s say the seller must pay a 6 percent commission upon the successful completion of his home. Makes sense to ask the seller to reduce his price by a minimum of that amount because of the commission savings. Right?
Not a bad strategy, but you, the potential buyer are leaving a whole lot of money in the seller’s pocket if you haven’t correctly assessed the market. If you’re negotiating 6 percent below asking price, you’re probably paying too much—especially in today’s market.
So go ahead and lowball the price and negotiate up from your first offer? Sound right? Could be a good strategy, but maybe not. Maybe the owners will just tell you to get lost. Maybe you don’t care if the seller’s walk away; but I’ll bet if it’s a home you really want, it makes a very big difference.
Now what do you know about obtaining a mortgage? What do you know about points, application fees, FHA programs, Fannie Mae, Freddie Mac, home inspections, title companies, deed filing, transfer taxes?
Who writes up the sales contract and why? What happens if you don’t understand the contract or want revisions? What the heck is agency anyway and why does that affect you? Should you hire an attorney? Is it mandatory to hire a lawyer for your transaction?
There’s an oil tank in the ground. Should it be tested? Is it leaking? If it is, who is responsible to get the mess remediated. What the heck is a binder and what happens to it if the deal falls through? Leach field, your own well, colliform? Hm? “Ah-just dump some bleach down the well head”—“say what”?
Sure—there are a lot more situations and circumstances that arise in real estate transactions. And frankly, with a computer and some commons sense, you can probably find the answers for yourself. It may take you substantial time, but you certainly can go it alone if that makes sense for you.
For the Seller—Want to save on the commission paid out? May not be a great idea. You may wind up saving a few percentage points, and losing out on a much higher selling price because you don’t do this sort of thing for a living. You may wind up pricing incorrectly for the market place and sit twiddling your thumbs whistling Dixie.
Or you could get lucky—really lucky and have a buyer come along and give you exactly what you want. In today’s market, that is even more unlikely than it was several years ago.
For the Buyer: What is the downside of using a professional real estate agent? I can’t think of one. I could send you a link to the National Association of Realtors site listing all the benefits, but then I’d be accused of be a talking head for NAR and entirely unoriginal—perish the thought.
At any rate, share your ideas as to why or why not using a real estate pro is the way to go or not go. There will be those that consider the logic here entirely self-serving with no merit whatsoever. If you are among that tribe, craft a response that presents your side of the issue. I am sure the public will appreciate your perspective.
Thursday, August 5, 2010
Big Smiles Make Me Cry
Big Smiley Faces
Are not particularly good at defining quality or excellent service. If your specific tastes run with how an agent is packaged, then I suppose, a big smiley face is an important aspect of choosing a real estate representative.
Big Smiley Faces
Are not indicative of substance. It is not difficult, nor does it require any real estate knowledge to sit for a fashion photograph. Gleaming white teeth and perfectly matched accessories don’t mean you, the client or customer, achieves excellent pricing for the property being purchased or sold.
Big Smiley Faces
Are not necessarily stylish or graceful in person. Calmness in the face of challenge, negotiating skill, rational thinking, and research based on analysis are some factors that actually DO translate to credible service for your commission dollar.
Big Smiley Faces
Work well for used car salesman some of the time. Shiny gold colored cuff links, monogrammed shirts, and paisley ties certainly do have their place in the business world; but do you want this sort of representative when you are buying or selling a top asset?
Big Smiley Faces
Are often displayed in other ways besides good looks or lack thereof. Hiding behind paperwork, making up answers without having the real answer, hesitating too long when a direct question is asked, and ignoring your requirements often go hand in glove with the grand smile approach.
Big Smiley Faces
Indicate, at least to me, that the advertiser is more concerned with themselves and how they look than they are with how best to represent your interests. Those who know this business are not likely to brag. I keep my personal and intimate life off the Internet—regardless of the social networking milieu that’s the current social idiom. Big, splashy presentments are usually lies covering up truthful representation.
Big Smiley Faces
For some reason, have become part of traditional real estate web design. I don’t know why. Being beautiful, having brilliantly white teeth, perfect accessories, sturdy face with just enough ruggedness to portray the manly approach are fine. These attributes, however, should not be the main focus. Mr. Clinton, then vying for the presidency used: It’s the customer and client stupid, not you, who is important." Well- I did take just a bit of poetic license to adjust the slogan.
And--I am going to remove my photo soon--promise!
Are not particularly good at defining quality or excellent service. If your specific tastes run with how an agent is packaged, then I suppose, a big smiley face is an important aspect of choosing a real estate representative.
Big Smiley Faces
Are not indicative of substance. It is not difficult, nor does it require any real estate knowledge to sit for a fashion photograph. Gleaming white teeth and perfectly matched accessories don’t mean you, the client or customer, achieves excellent pricing for the property being purchased or sold.
Big Smiley Faces
Are not necessarily stylish or graceful in person. Calmness in the face of challenge, negotiating skill, rational thinking, and research based on analysis are some factors that actually DO translate to credible service for your commission dollar.
Big Smiley Faces
Work well for used car salesman some of the time. Shiny gold colored cuff links, monogrammed shirts, and paisley ties certainly do have their place in the business world; but do you want this sort of representative when you are buying or selling a top asset?
Big Smiley Faces
Are often displayed in other ways besides good looks or lack thereof. Hiding behind paperwork, making up answers without having the real answer, hesitating too long when a direct question is asked, and ignoring your requirements often go hand in glove with the grand smile approach.
Big Smiley Faces
Indicate, at least to me, that the advertiser is more concerned with themselves and how they look than they are with how best to represent your interests. Those who know this business are not likely to brag. I keep my personal and intimate life off the Internet—regardless of the social networking milieu that’s the current social idiom. Big, splashy presentments are usually lies covering up truthful representation.
Big Smiley Faces
For some reason, have become part of traditional real estate web design. I don’t know why. Being beautiful, having brilliantly white teeth, perfect accessories, sturdy face with just enough ruggedness to portray the manly approach are fine. These attributes, however, should not be the main focus. Mr. Clinton, then vying for the presidency used: It’s the customer and client stupid, not you, who is important." Well- I did take just a bit of poetic license to adjust the slogan.
And--I am going to remove my photo soon--promise!
Tuesday, August 3, 2010
What you need to put a deal together
What you need to put a deal together
Conceptually, buying and selling property is no different than buying or selling any other commodity. Basically--a product, buyer, and seller define the process. Why then does it seem difficult, especially in current climate, to bring a fair deal to the table?
Kick these around and see if they ring true for you.
1) Lenders are not being especially cooperative or efficient: If the former rule of thumb was to lend to almost anyone, the current climate now often denies individuals who are credit worthy.
Where no documentation was required, the lending institutions now require several paper mountains to accumulate and be reviewed by over worked underwriters. My recent dealings with lenders demonstrates a lack of motivation to lend.
(Side note on single and double wide manufactured homes: In our rural area, single and double wides abound. Single wide mobiles are totally off the table. If a client can't buy for cash, they are out of luck. Double wides are extremely difficult to get through. The interest rates are 1.5 to 2 points higher for funding than conventional loans. Additionally, loan terms are generally a maximum of 20 years. Lenders often require 30 or more percent down. Although some financing programs still do exist (FHA)the stringent requirements, soon to be even more stringent, disallow our working populace the pleasure of owning a home.)
2) In my home market of Sullivan County, NY, sellers still remain somewhat unrealistic in their expectations. New listing prices are often not supported by current market conditions.
3) Buyers, knowing it is indeed their market, are lowballing offers that simply don't make the grade. It is one thing to offer a certain percentage below realistic pricing, say even 20 percent for starters; it is quite another to slash a well documented price tag by 50 percent. Recent data in our county suggests that 12% percent below adjusted asking prices (prices revised downward from original listing price) are the number at which most consummated deals are made.
4) Our economy is not conducive to buying homes. Home inventory is quite high and serious buyers are scant. Prices may yet fall further. What are the incentives to move quickly on a purchase?
5) Appraisers seem afraid of using the higher comparables available for analysis. Experience in my home market demonstrates that deals fall through based on properties not apprising out--a mortgage killer in many circumstances.
Although many other factors are involved in real estate transactions, the points discussed here are more than enough to make seasoned veterans bite their nails.
Conceptually, buying and selling property is no different than buying or selling any other commodity. Basically--a product, buyer, and seller define the process. Why then does it seem difficult, especially in current climate, to bring a fair deal to the table?
Kick these around and see if they ring true for you.
1) Lenders are not being especially cooperative or efficient: If the former rule of thumb was to lend to almost anyone, the current climate now often denies individuals who are credit worthy.
Where no documentation was required, the lending institutions now require several paper mountains to accumulate and be reviewed by over worked underwriters. My recent dealings with lenders demonstrates a lack of motivation to lend.
(Side note on single and double wide manufactured homes: In our rural area, single and double wides abound. Single wide mobiles are totally off the table. If a client can't buy for cash, they are out of luck. Double wides are extremely difficult to get through. The interest rates are 1.5 to 2 points higher for funding than conventional loans. Additionally, loan terms are generally a maximum of 20 years. Lenders often require 30 or more percent down. Although some financing programs still do exist (FHA)the stringent requirements, soon to be even more stringent, disallow our working populace the pleasure of owning a home.)
2) In my home market of Sullivan County, NY, sellers still remain somewhat unrealistic in their expectations. New listing prices are often not supported by current market conditions.
3) Buyers, knowing it is indeed their market, are lowballing offers that simply don't make the grade. It is one thing to offer a certain percentage below realistic pricing, say even 20 percent for starters; it is quite another to slash a well documented price tag by 50 percent. Recent data in our county suggests that 12% percent below adjusted asking prices (prices revised downward from original listing price) are the number at which most consummated deals are made.
4) Our economy is not conducive to buying homes. Home inventory is quite high and serious buyers are scant. Prices may yet fall further. What are the incentives to move quickly on a purchase?
5) Appraisers seem afraid of using the higher comparables available for analysis. Experience in my home market demonstrates that deals fall through based on properties not apprising out--a mortgage killer in many circumstances.
Although many other factors are involved in real estate transactions, the points discussed here are more than enough to make seasoned veterans bite their nails.
Tuesday, June 22, 2010
So--I closed a deal on Monday
The saga started in February 2010 Yes ma'am, that's right. 4 months later, Wells Fargo Bank decided they would fund the loan and allow my clients to close.
The transaction went smoothly at first. Both buyer and seller came to a quick agreed upon price. The FHA inspection went very well. My client scrupulously dotted her I's and crossed her T's. She should have said more Hail Marys though.
The owner traveled up from Florida to arrange the selling details. Little did he know that the couple of week trip would burgeon into a full-fledged two-month ordeal of sleeping in an empty house on the floor. His patience went south as the process kept dragging on.
My clients were living out of cardboard boxes and eating cereal-- all three meals-- while their lender sliced, diced, mixed, pureed, and heavily salted the lending file. They could not have been working on my client's file in a professionally seasoned way. This loan was not getting cooked at all--it wasn't even thawed.
I did what any self-respecting realtor would do. I called the loan officer at Wells Fargo numerous times and was assured all requirements were met. Then, I'd call and asked: "When will the loan come through?"
Ms. Loan Officer replied: "Oh, it's in underwriting and out of my hands." I'd call again and inquire as to the loan status. Ms. Loan Officer said: "Oh, so glad you called we need 50 more documents. Underwriting sent it back to us."
I responded: "Oh, you want us to send the 50 documents we sent you 2 months ago?" Ms. Loan Officer responded: "Yes, somehow, they never got to the file." My last two calls to Ms. Loan Officer never were returned.
It's pretty evident to me that Wells Fargo isn't interested in mortgage lending. I don't know what they are interested in doing, but helping buyers into homes is certainly not on their current agenda--don't know if it ever was.
It's pretty evident the loan officer wasn't doing her job well, professionally, or attentively. I suppose you can just file your nails and get paid for doing that.
My clients were furious with the entire procedure. I was furious with the entirely hostile lending environment and attitude of Wells Fargo and their representatives. Needless to say, I will not suggest any of my clients use Wells Fargo.
And you know something? I think that's exactly what Wells Fargo had in mind.
P.S: Oh yes, we did close yesterday--thanks Wells Fargo
Sunday, March 21, 2010
Business is Business-All Is Fair in Real Estate, Love & War
If I may take a very hard stance here: My opinion is based on business reality. The fact that you renovated beautifully, sunk a ton of money into your Victorian, and are receiving mildly interested offers at 15% or more below your asking price is a common problem in today’s real estate market here in Sullivan County, NY.
These facts pertaining to your home for sale are important to be sure. The pricing model, however, needs to be reworked.
Buyers understand current market condition to be in their favor by a wide margin. The psychology is fairly simple: " I am the buyer (a rare breed these days). I have the cash and financing, and if these sellers won't negotiate down to what I consider a bargain, I'll find another seller that really needs to get out."
Sitting at the poker table with your last $20.00 bill means one thing to an experienced player--you're out of the game next hand. If you cannot afford to keep your Victorian due to financial difficulties and telegraph this to anyone, you have a problem. In essence, you too are out of the game and will not get an acceptable offer on your terms.
If I were a potential buyer, I'd preview your house, get your financial situation clarified, (and there are a number of ways to investigate your financial condition.) and low ball my offer and leave it stand. As harsh a reality as this is, deals are being consummated based on buyer awareness that there are a ton of properties out there and the price can be negotiated down, down, down--business is not supposed to be emotional. It's supposed to be factual.
A caveat here: No sellers are anxious to divest at fire sale prices; but, in order to move the property, it is the only option. If you are, however, in a desirable market where inventory is low, you may be in a much better sales position--even considering today's climate.
It is my sense that deals are being made based on the "blood in the water" model. Easy prey gets eaten first. In order to sell YOUR property, you must know how the other side operates and counteract that "play" with your own strategy.
You must always negotiate from strength or you lose out. What power position(s) can you legitimately present to a potential buyer? How can you portray that your Victorian is just the right home, at the right price, and you are willing to consider some creative selling options?
Can you hold paper at an attractive interest rate? Are there comps that justify your asking and final negotiated price target? How is your agent marketing your home? How should it be marketed? Can you delay selling?
There are thousands upon thousands of homeowners who got caught up in the house flipping frenzy and are now experiencing difficulty hanging on. I am not suggesting that you fall into this category, but many do.
And--this is MY perspective at this time in my market place of the Sullivan County Catskills. Your question is one that seller's are always asking and it is a great opportunity to address just a few of them here.
John Kavaller
Licensed NYS Agent & REALTOR®
845-482-3200 Ext. 13: Office
845-492-0261: John’s Cell
john@catskillsales.com
http://www.catskillcountryrealestate.com/
These facts pertaining to your home for sale are important to be sure. The pricing model, however, needs to be reworked.
Buyers understand current market condition to be in their favor by a wide margin. The psychology is fairly simple: " I am the buyer (a rare breed these days). I have the cash and financing, and if these sellers won't negotiate down to what I consider a bargain, I'll find another seller that really needs to get out."
Sitting at the poker table with your last $20.00 bill means one thing to an experienced player--you're out of the game next hand. If you cannot afford to keep your Victorian due to financial difficulties and telegraph this to anyone, you have a problem. In essence, you too are out of the game and will not get an acceptable offer on your terms.
If I were a potential buyer, I'd preview your house, get your financial situation clarified, (and there are a number of ways to investigate your financial condition.) and low ball my offer and leave it stand. As harsh a reality as this is, deals are being consummated based on buyer awareness that there are a ton of properties out there and the price can be negotiated down, down, down--business is not supposed to be emotional. It's supposed to be factual.
A caveat here: No sellers are anxious to divest at fire sale prices; but, in order to move the property, it is the only option. If you are, however, in a desirable market where inventory is low, you may be in a much better sales position--even considering today's climate.
It is my sense that deals are being made based on the "blood in the water" model. Easy prey gets eaten first. In order to sell YOUR property, you must know how the other side operates and counteract that "play" with your own strategy.
You must always negotiate from strength or you lose out. What power position(s) can you legitimately present to a potential buyer? How can you portray that your Victorian is just the right home, at the right price, and you are willing to consider some creative selling options?
Can you hold paper at an attractive interest rate? Are there comps that justify your asking and final negotiated price target? How is your agent marketing your home? How should it be marketed? Can you delay selling?
There are thousands upon thousands of homeowners who got caught up in the house flipping frenzy and are now experiencing difficulty hanging on. I am not suggesting that you fall into this category, but many do.
And--this is MY perspective at this time in my market place of the Sullivan County Catskills. Your question is one that seller's are always asking and it is a great opportunity to address just a few of them here.
John Kavaller
Licensed NYS Agent & REALTOR®
845-482-3200 Ext. 13: Office
845-492-0261: John’s Cell
john@catskillsales.com
http://www.catskillcountryrealestate.com/
Saturday, February 27, 2010
To Call or Not To Call, That is the Question
Mike Nastri, on Active Rain, Raised this question HERE
The quote below is from Realtor ®Mag and referenced by Mike. It is repeated below for clarity.
Best Practice #2: Don't Call Them
If you've somehow acquired a prospect's phone number and you're tempted to pick up the phone, stop yourself. It's generally a bad idea. Why? You risk driving that potential client away because in all probability, he or she just wanted information, not a salesperson trying to set up an appointment.
Most human beings feel vulnerable and defensive when they're on the phone with a salesperson with whom they don't have a relationship. That's one reason why Internet is such a popular place for prospects' to gather information before speaking to a real estate professional.
So, is it ever appropriate to call an online prospect in response to an online inquiry? Yes, there are a couple of exceptions.
•If the prospects explicitly ask you to call them and provide their phone number.
If it is clear that the lead has come directly from your highly targeted Web site, and the prospects offered their phone number voluntarily (in other words, they were not forced to reveal it in order to access information on your site or order a report). It's so important the lead comes from your highly targeted Web site because then it's more likely they've already learned about your business and have started trusting you. That's a contrast from most inquiries from third-party lead generation services or "one size fits all" sites are actually quite cold.
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Since this is such a hot topic, I asked the Trulia Audience the following:
There is a debate raging within the professional real estate ranks. The conundrum centers on this question: Should real estate professionals take the initiative to call people who register on their websites?
As a real estate consumer, your opinion is highly valued. What follows is a prominent dilemma we face as professionals in this very competitive field.
Scenario: You (the real estate consumer) arrive at a super real estate website. You have come to the site because you want to search home listings for a certain area. You click on FREE Search and arrive quickly at the search area. Here you input your search criteria, press search, and there you have it--a parade of listings that hold your interest. When you press for the next page-a registration page appears. You are asked for contact information. Please give us your name; telephone number, and email address are the basic questions. In order to proceed with your search, you have to input your information.
Question: Is this a fair trade off in your mind? You are trading your personal information for the opportunity to continue searching. You realize that the outfit asking for the information will probably contact you. Do you want to be contacted? If yes, in what way? Via email? Via Phone? Both?
Question: It is difficult to know what consumers want and or expect. When you leave your personal contact information are you leaving it so you are contacted? Leaving it as the price of admission and feel coerced? Angry that the website owner/sponsor requires you leave personal information.
As a legitimate consumer seeking real estate services, what approach should real estate professionals use to gain your business? This is the central issue.
Your responses are truly appreciated and will open up thousands of eyes in our field. Thanks for your help folks.
John Kavaller
Licensed NYS Agent & REALTOR®
845-482-3200 Ext. 13: Office
845-492-0261: John's Cell
john@catskillsales.com
http://www.catskillcountryrealestate.com/
The quote below is from Realtor ®Mag and referenced by Mike. It is repeated below for clarity.
Best Practice #2: Don't Call Them
If you've somehow acquired a prospect's phone number and you're tempted to pick up the phone, stop yourself. It's generally a bad idea. Why? You risk driving that potential client away because in all probability, he or she just wanted information, not a salesperson trying to set up an appointment.
Most human beings feel vulnerable and defensive when they're on the phone with a salesperson with whom they don't have a relationship. That's one reason why Internet is such a popular place for prospects' to gather information before speaking to a real estate professional.
So, is it ever appropriate to call an online prospect in response to an online inquiry? Yes, there are a couple of exceptions.
•If the prospects explicitly ask you to call them and provide their phone number.
If it is clear that the lead has come directly from your highly targeted Web site, and the prospects offered their phone number voluntarily (in other words, they were not forced to reveal it in order to access information on your site or order a report). It's so important the lead comes from your highly targeted Web site because then it's more likely they've already learned about your business and have started trusting you. That's a contrast from most inquiries from third-party lead generation services or "one size fits all" sites are actually quite cold.
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Since this is such a hot topic, I asked the Trulia Audience the following:
There is a debate raging within the professional real estate ranks. The conundrum centers on this question: Should real estate professionals take the initiative to call people who register on their websites?
As a real estate consumer, your opinion is highly valued. What follows is a prominent dilemma we face as professionals in this very competitive field.
Scenario: You (the real estate consumer) arrive at a super real estate website. You have come to the site because you want to search home listings for a certain area. You click on FREE Search and arrive quickly at the search area. Here you input your search criteria, press search, and there you have it--a parade of listings that hold your interest. When you press for the next page-a registration page appears. You are asked for contact information. Please give us your name; telephone number, and email address are the basic questions. In order to proceed with your search, you have to input your information.
Question: Is this a fair trade off in your mind? You are trading your personal information for the opportunity to continue searching. You realize that the outfit asking for the information will probably contact you. Do you want to be contacted? If yes, in what way? Via email? Via Phone? Both?
Question: It is difficult to know what consumers want and or expect. When you leave your personal contact information are you leaving it so you are contacted? Leaving it as the price of admission and feel coerced? Angry that the website owner/sponsor requires you leave personal information.
As a legitimate consumer seeking real estate services, what approach should real estate professionals use to gain your business? This is the central issue.
Your responses are truly appreciated and will open up thousands of eyes in our field. Thanks for your help folks.
John Kavaller
Licensed NYS Agent & REALTOR®
845-482-3200 Ext. 13: Office
845-492-0261: John's Cell
john@catskillsales.com
http://www.catskillcountryrealestate.com/
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