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Week #12 - 6% of nothing is...nothing PDF Print E-mail
Written by Ben Eckenroed   
Tuesday, March 17 2009 10:38

 “'And that ain’t nothing, believe you me' is a refrain of a popular song from my youth. Who knew they were talking about real estate commissions?" writes Mildren Wilkins on BrokerAgentSocial.com

 
"In today’s tight market it behooves you to start with the end in mind. Literally.  It would seem obvious that licensees would always do that since they’re self-employed and paid only via commissions."
 
"Unfortunately, keen observation signals that far too often REALTORS focus on the accumulation of listings without focusing on the realistic possibility of a completed closing.  They bought into the myth that whoever has the most listings is the winner of the trophy and therefore is most productive. "
 
"Something is Wrong With This Picture . . . 
Can you imagine an agent who regularly carries an inventory of 25+ listings (average price $125,000) but is seriously struggling. Obviously, the agent has no problem convincing folks he can sell their home.  The problem lies in failing at some other very basic issues which are likely to prevent someone from converting a listing into a “closed” transaction. Let’s consider the most likely culprits."
 
"Silly Details
This will surely not be stepping on your toes to mention “silly” reasons why a listing is unlikely to result in a sale.
  • The owner filed bankruptcy, two weeks ago
  • The spouse never signed the listing contract
  • The lender will be “short” and no one mentioned it
  • The house is already scheduled for a sheriff’s sale
  • The paperwork for a deed-in-lieu was mailed the day you had your listing appointment
  • The “summons” was received two (2) days before they called you"
 
Shame on YOU
"In today’s market it is not intrusive to conduct a thorough analysis of the reasons why a potential seller chooses to sell at this junction—that just reflects market savvy.  Further, it is a disservice to the potential client and to your agency/yourself to list property without addressing the most common reasons why real estate becomes “unavailable” for the completion of the transaction in today’s market. "
 
Mildren continues and covers:
  • Price ‘em RIGHT…from the beginning
  • Is the owner committed?
  • Read for the debut?
  • The Four Rules for Listing
  • Closing = Commission Paid
Mildren finishes by reminded us that 6% of nothing is nothing.
 
"One of the prime reasons I teach and write is because I recognized that the strategies which are being used by many agents are counterproductive and therefore, very frustrating. Handling foreclosed properties for Fannie Mae, after some well-meaning agent had tried to sell them—the traditional way—predictably resulting in foreclosure—I decided to teach agents how to better understand the lender/insurer’s position, and how to successfully structure a short sale.  It works, IF YOU WORK IT."
 

Read the Full Article Here

UFSB Take: How true it is. UFSB always recommends pricing right when listing a home. It does not do you any good to "buy" a listing just so you can have signs in the front yard. Many agents will say "Yeah, but what about the buyers you will get off that sign"? Honestly, unless you are a rockstar converting 80% of sign calls to buyers, you won't hardly get one buyer that closes every 10 listings. Is it worth that one buyer to be known as the agent that expires 50% or more of their listings because they can't sell them? We say no. You are better off getting good listings at good prices, then working hard to convert those buyer leads. That is a win-win situation.

New Business

New Listings

  • 3152 Hayden Ridge Way, Riverton UT 84065 - MLS# 870245 - $339,000 - Doug Evans

Listing Updates

  • MLS# 870245 - 3152 Hayden Ridge Way - Offer accepted by seller and submitted to lender for approval. Still accepting other offers as backup.

Under Contracts

  • No New Under Contracts this week

Closings

  • Dalra Hartvigsen - $195,800 - 7669 S Sunrise, West Jordan UT - SOI

Agent Business

No new agent business was brought up this week

 

News

Client Events

  • The Salt Lake Bee's game is too expensive. Around $18 per person if we want to give them a basic game with snack.
  • Plan B - We have been in discussions with the American Red Cross about doing a blood drive. Most likely we will have the blood-mobile come to our office and we will invite our clients to an open house and do an economy & market update while we are at it. We are shooting for Saturday April 25th.

Market Huddle - OT

  • Market Huddle - OT for April will most likely be pushed back to April 18 so that we can accommodate more agents. Here is the general outline, but subject to change.
    • 9:30am - 10:-00am - Light snack and social time to catch up
    • 10:00am - 10:30am - review of weekly market huddle's business. Listings, Under Contracts, Closings etc..
    • 10:30am - 11:00am - review news & articles that we discuss each week in our normal market huddle
    • 11:00am - 11:30am - State of the Market & Economic discussions
    • 11:30am - Noon - Role playing, script practicing, and marketing & prospecting discussions

Board Classes

  • Commercial Real Estate 101 - April 9th & 10th - 9am to 5pm - $199 - Joe Still
    Provides 4 pillars of commercial real estate: industry overview, leasing, investing analysis and negotiation. The workshop provides the "must have" skill, knowledge and information you need to get started and succeed. (Board website has more details)

Board Events

  • RPAC Golf Tournament - April 24 - 8:30am - River Oaks
    To register call Jimey Colement at (801) 974-6397 or email This e-mail address is being protected from spambots, you need JavaScript enabled to view it for info about becoming a sponsor.

Newsletters

  • This month they went out in black and white. We have the color issue resolved, so they will go out in color next month.

 
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