Q. What are the four most important qualities to look for when choosing your Realtor?
- Integrity
- Marketing Expertise
- Availability
- Negotiating Skills
1. Integrity .....
in·teg·ri·ty | in-ˈte-grə-tē
a: the quality of being honest and having strong moral principles
b: adherence to a set of professional values, where a person tells the truth, keeps their promises, and treats others fairly.
Putting a client's interests first .....
requires INTEGRITY. But that doesn't mean you're always going to hear what you want.
The broker you really want will offer an objective, truthful opinion as to your property’s condition, and financially prudent advice as to what makes sense to change prior to listing.
Often it can take weeks or months of preparation to truly help you maximize your profit ..... and if that's your goal .....
Find a broker that has the integrity to offer you more than the standard, "Looks good, let's put it on the market."
Integrity when it comes to suggesting your property's listing price
It happens time after time .....
the broker who suggests the highest price gets the listing ..... the seller forgets all about marketing plans, the consistent ability to handle requests for showings, or negotiating skill. The more money the seller is led to believe they can get, the better that broker must be.
Nothing could be further from the truth.
Many list prices are simply unattainable ...
2019 Breckenridge Residential Listings: Sold vs. Unsold
It's easy to be misled by a broker who gives you a fantasy price simply to get your business. The broker with integrity offers a rational price based on the realities of the current market. Without a realistic price, you will inevitably end up with very few showings, much less get any offers.
Integrity when it comes to discussing the merits & drawbacks of offers
An offer comes in .....
the knee jerk reaction of far too many brokers and sellers is: “Let’s take it!” or “Let’s counter it!” ..... forget the fact it’s contingent on the sale of another property, or the Buyer won’t provide proof of funds, or the closing date is 4 months out, or the earnest money offered is far too low to properly compensate you in the event Buyer “walks” on the deal.
The all-too-easy answer for brokers?
“Get it under contract ASAP and hope it closes.”
The correct answer for sellers?
- First and foremost, confirm if additional offers are being contemplated by other buyers who have already toured your property. As a Seller, you are always better off with multiple offers ..... but very few brokers will ever bother to take this important first step.
- If your buyer needs a loan, speak to their lender BEFORE you ever consider their offer. Understand the loan limitations, timeframes, down payment requirements and credit issues prior to submitting any counter offer.
- Thoroughly consider all other aspects of the offer and make inquiries about specific troubling terms or dates prior to engaging with a buyer any further.
- Submit a counter promoting your best interests with fair terms & dates for all concerned.
- Realize that sometimes the best deal is no deal at all.
Find the broker that is truly committed to your best interests.
2. Marketing Expertise
With real estate in particular, marketing has nothing to do with creating demand for your property. Rather, your marketing “expert” needs to be great at finding demand (aka buyers) for your property.
Or more accurately, your broker should be an expert at maximizing the number of buyers that will find YOUR property for sale.
The all-too-obvious first step in getting buyers to find your property?
Determine those venues through which buyers are initially finding the properties they purchased!
Incredibly simple to do..... Surprising how many brokers don’t.
Where Buyers Found The Home They Purchased
* According to 2019 survey of buyers by the National Association of Realtors.
One of the most surprising results of the buyer survey above? Confirmation that print advertising has become almost completely irrelevant in capturing buyers.
And while magazine and newspaper ads might be great for promoting a broker’s self-interests, those same advertising venues have become an irrelevant tool in promoting your property.
Please do not allow yourself to be led to believe that a broker’s strong presence in the local print media has anything to do with being a marketing expert on your behalf.
What you should really want is a marketing expert that understands how to pro-actively use these home-discovery metrics to your definitive advantage.
What truly benefits you .....
is a broker that employs specific strategies to CAPTURE the maximum number of buyers for YOUR property.
To name a few .....
- use of subconscious pricing parameters
- best techniques for inputting property attributes into the MLS
- thorough use of automatic notification technologies
- search engine optimization tactics
- full engagement & co-operation with the entire brokerage community to get their buyers to want to see it
What truly benefits you .....
is a broker who recognizes what COMPELS the greatest number of buyers to choose YOUR home as one they physically want to visit.
- great photos and lots of them
- appearance of being well-maintained & clean
- realistic price when compared to other properties
- engaging written description of your property
- availability of information about your property, i.e. rental income projections, surveys, etc
- ability to conveniently tour your property as the buyers’ schedule dictates
When it comes time to sell your home, choose a Realtor that is not only an expert at maximizing the number of buyers that will find YOUR property for sale, but also understands exactly what compels more buyers to personally walk through.
3. Availability
On so many fronts, the availability and response time of your Realtor and their office staff will be a key factor in the successful sale of your property. Some of the issues to consider:
- Can your broker or their office staff handle showing requests 7 days a week? The overwhelming majority of buyers in Summit County live elsewhere and have very limited time to visit properties ..... those buyers certainly can’t see it, or want to buy it, if your broker or their office staff does not answer the phone!
- Does your broker actually live within reasonable distance of your property? Many live outside the county, state or even country!
- Can your broker help with the inevitable issues that will arise during the sales process requiring their availability and proximity?
- Can your broker rely on partners within their brokerage firm to help if they are not available?
- How quickly will your broker respond to texts, calls and emails from you as a Seller?
- How responsive will your broker be when offers come in?
- Will your broker be able to consistently help on-site as you prepare your property for photos?
- Are you the type of person that wants a real person to answer the phone?
- Did you know that several large local brokerages have their calls go to automated response centers?
Assuming your price was realistic, the marketing was effective and buyers were able to see your property, you will inevitably receive an offer.
Now What?
It’s time to negotiate with your buyer.
4. Negotiating Skill
The combined result of education, experience, preparation and ultimately, the ability to communicate effectively.
How do you as a seller get the highest possible price and best possible terms?
The short answer —
Hire an experienced Realtor with a proven track record of selling as close to listing price as possible.
Be a well-informed Seller and ask the broker you are interviewing this exact question "As the listing agent, what has been your average Sold-Price to List-Price ratio and average Days On Market for residential properties you have sold in Summit County over the past 10 years?"
The benchmarks (derived from Summit County MLS data 1/1/2010 – 1/1/2020) :
- County-wide average Sold-Price to List-Price ratio = 95.94%
- Mike Krueger average Sold-Price to List-Price ratio = 98.92%
- The higher the ratio, the more money the seller is putting in their pocket.
- County-wide average Days on Market = 112
- Mike Krueger average Days on Market = 47
- The fewer the days on market, the lower your carrying costs, the higher your profit, the quicker you move onto your next adventure.
The long answer —
- 1) make certain there are no other offers a different buyer may want to make,
- 2) gather as much information as you can about the buyer,
- 3) dissect and fully understand all of the aspects of the offer on the table,
- 4) re-visit your personal situation and motivation to sell,
- 5) prepare a written counter-proposal that protects and promotes your particular situation based on the realities of the market, and
- 6) submit the counter along with factual information on past sales or other data that support your position in the negotiation.
Please keep in mind this is a very abbreviated answer to the ultimate question "Who is the Realtor that is best prepared to help you maximize your profit?"
Four Requirements of your Realtor
1. Integrity
2. Seller-focused marketing expertise
3. Availability & professional office support
4. Top-notch negotiating skills
Dedicated to Seller Profitability
Mike Krueger
cell: (970) 485-1518
email: mikek@realtor.com
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