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Everyone, and I mean EVERYONE, can learn a lesson from today’s post. If you are smart, you should be telling your loved ones, friends, neighbors, co-workers, acquaintances, and even your enemies, about this site- and about Dr. Marc – THE DARK LORD (me).
Why am I The DARK LORD?
It’s not just because I am sexy and well-built. And no, it’s not JUST about my pecs of steel. No, no, no. The reason that I am THE DARK LORD is because I tell it like it is, even if it hurts. But unlike some of the big mouth speakers out there, I don’t just point out a problem. I always give you a very specific solution. There are a few speakers out there that get paid big money to tell you what an idiot you are. Hmm? Not a bad gig if you can get it. But really, how long can your really take that kind of garbage? I punch you in the face with the problem, and then drive home the solution(s).
One More Point…
Many blogs are written by folks who steal (err…”borrow”) information from other blogs, articles, etc., repackage them, and then “suggestively” post the information as their own. That’s why, when you meet these gurus and experts in person, they are such a disappointment. I know a self-proclaimed social media “guru” who fits that description PERFECTLY.
Read and LEARN:
There’s no question that today’s real estate market is tough. But one reason that it’s even tougher than it needs to be, is the fact that many real estate agents are actively playing a role in sinking their own ship. Naturally, the only folks who will disagree with me are the real estate agents, but hey – what else would you expect?
Many real estate agents have trained sellers (like training a seal) to accept the idea of repeatedly reducing their asking price for their property. If the real estate folks actually saw the statistics with regard to pricing strategy, they’d probably pass out. But wait – what am I saying? Most real estate folks are ALWAYS right. Just ask them. They’ll tell you how long they’ve been in the business, and how right they are.
Dr. Katy (my wife for those of who have not had the pleasure) and I were driving along when we passed a house for sale with a real estate agent’s BIG “For Sale” sign out in front. On the sign was a smaller sign that read, “Twice Reduced!” – obviously referring to the price.
If you ask most real estate professionals about such a move, the response you’ll get is a big round of applause. After all, most of them do the very same thing, so how could they be wrong?
Sadly, THEY ARE WRONG.
ALL OF THEM.
When you reduce your asking price, here is what you are saying:
1). My home was overpriced from the get-go
2). No one is interested, and I’ve had no bites
3). There is something WAY wrong with my home
When you TWICE reduce the asking price, what you’re saying is:
1). There is something VERY, VERY, VERY wrong with this house
2). The asking price is still WAY TOO HIGH
Many of the real estate folks out there don’t get this. They obviously want the sale, and they don’t care if the seller loses money. If something isn’t moving, it’s not because the agent is doing a lousy job at selling the property, right?
WRONG.
Many real estate professionals don’t know the first thing about truly selling a home. That’s where the interior designers (and their typically HORRIBLE taste) come into the picture. They take a nice home, and then fill it with dreck (aka garbage). They call it “staging.” It’s their attempt at creating “the look” of the perfect home.
I have been hired and have worked with a number of real estate firms throughout the country. I tell them what stays and what goes. In general, I tell them to get as much crap out of that home as they can. Keep the big screen television and the basic furniture, but for Swerd’s sake, get rid of all the “tchotskies” (pronounced CHOT-SKIES – a yiddish word that is the perfect definition of all the little trinkets and doodads that people use to litter their homes).
People already come into a home with their own mental pictures that reflect THEIR expectations. If you dress up the great room to look like a place where everyone can play board games and talk about American Idol, but in my mind, I’m trying to figure out how many people we can accommodate during our Saturday evening orgies, then you aren’t going to be selling me that home. End of story.
I don’t want to be TOLD where I should put things. Let me figure it out for myself. Show me where the big screen is connected, where I can mix up a batch of Marcaritas , and where I can “pinch a loaf.” I can put all the rest of the pieces together on my own, thanks.
Real Estate Agent: “This is the bathroom, and here is an enormous jacuzzi tub that will accommodate two…where you can take a bath.”
Dr. Marc: “Really? You mean I would take a bath (which I don’t because baths are for chicks) in the bath tub. Well gee…thank goodness you were here to tell me that. Okay, maybe I WOULD take a bath, but not alone, and not to bathe (if you know what I mean).”
A real estate professional should be able to tell the seller two things:
1). The initial asking price should be ____
2). The final selling price will be ____
That’s it!
Nothing else!
If you want $750,000 for your home, then start your asking price around $800,000 and make the buyer feel like they negotiated some kind of deal. Everyone loves a deal, and everyone loves to walk away with a hard-on knowing that they made it happen. If you have to continuously lower your asking price, then what you have is a value problem. No, I’m not talking about the home value, rather – building the overall value of the property.
In any market, and in any economy, there are always people willing to pay for WHAT THEY BELIEVE to be something of value. Just look at Apple. Even without figuring in sales from the iPhone, 2008, 2009, and thus far, 2010, have clearly illustrated that – even in a market where “no one has any money,” people actually do have money (and do appreciate value) to purchase things that are not essential to life.
Even though some of the real estate folks will tell you that you can’t say this IN THIS MARKET, my suggestion would be a much better sign that read, “This house is selling for a firm $800,000. If you would like to know what makes this house so special, please call _____ to set up a appointment.”
Now you’ve created interest, and as an added bonus, have taken the first step in planting a “value seed.” The expectation is now on the higher side of the spectrum. Get it? Additionally, if you followed my recommendation, you just avoided insulting the crap out of your prospective buyer. Why the hell would you price a home at $799,000? Let me guess: Because some genius told you that $799,000 sounds like a lot less than $800,000? Am I right? Boy, you really pulled one over on the prospective buyer, now didn’t you? Nice job Einstein!
If the real estate agent has done their job, then each prospective buyer who sets up an appointment for a walk-through, will be handed a lovely DVD presentation. The coil-bound presentations are too expensive. Put all the details on a DVD and let them go home, pour a drink, and watch the video on THEIR OWN TURF (where Muffy the real estate agent isn’t breathing down their throat). And besides, a nice DVD presentation can be burned to a disc for pennies. You can even purchase disc labeling software and have an image of the house burned onto the disc. The DVD would feature a slide show accompanied by narration and a little 70’s porn music playing in the background:
“This is the bedroom. Notice the stripper pole, lube display,
and handcuff rack – perfect for those extra special evenings.”
On the other hand, if the house you’re putting up for sale is a piece of crap, then sell it for what you KNOW you’re going to end up getting. Come on – you know exactly what I’m talking about! If it’s a piece of crap, then it’s a piece of crap. Don’t try to dress it up by putting in granite counter-tops, a kitchen island, and an over-sized stainless steel refrigerator. Please. I hate when people do that. Their taste usually sucks, which in turn means that you have to pay for the ugly granite, spend even more money getting rid of it, and then installing something nice. If you’ve got Formica counter-tops, then figure in the fact that I’m going to have to replace them, and drop your asking price from the GET-GO. Stop playing games.
MY POINT:
I don’t care if you’re a real estate agent or not. Many of you play games with your customers, clients, patients, or whomever. In the end, you’ll make more money if you’re straight-forward and avoid wasting someone’s time.
I hope you learned something.
If you did, then you’ll stay tuned and even
register for my HEADSPACE Seminar.
Have A GREAT Weekend!
…Dr. Marc (The DARK LORD)