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Educational Resources For Realtors

9 Listing Presentation Tips

How to master your listing

As a current or former student in our real estate license school you might remember my lecture from Real Estate Practice on listing presentations. I’ve placed a link to the YouTube video here if you

As a current or former student in our real estate license school you might remember my lecture from Real Estate Practice on listing presentations. I’ve placed a link to the YouTube video here if you need a refresher or haven’t seen it yet. While this video isn’t intended to be a real estate crash course it’s still helpful to watch as you strategize around building your seller-focused real estate business. While buyer clients are important, a scaleable real estate business is built around controlling listing inventory and that means working with sellers. In order to obtain listings, you must become proficient at generating seller leads and making killer presentations. The high-level goal is to demonstrate you are the best Realtor for the job of selling their home. Because of the competitive nature of the market you’ll need to have a solid listing presentation. Sellers have options when it comes to listing their home as the number of real estate agents in an area far exceeds the inventory at any given time. I’ve put together some tips as you work with and negotiate with a potential seller. 1. Introduce yourself Every meeting starts with an introduction. Keep in mind first impressions matter—so be sure to get this part right—and remember to smile. Be prepared to share your credentials, previous successes, and any other pertinent information demonstrating why you’re the right person to list their home. 2. Know the property Before you arrive, make sure you’ve researched everything possible about the property and dig beyond surface-level information like bedroom and bathroom count. If you haven’t done your homework, it’ll be obvious to the seller. Make sure that your Comparative Market Analysis (CMA) is detailed, up- to-date and visually appealing. 3. Walk through the selling process Share a clear timeline with the seller so they know what to expect. Much of this timeline will depend upon the current state of the market, so be prepared to explain any circumstances that will impact the time it’ll take from listing to contract and from contract to close. It’s also important to also explain to the seller that buyers will generally have the right to conduct an inspection on the home while it’s in escrow. This could cause the buyer to ask for repairs or even ask for a monetary credit as a result of the inspection. Going through several possible scenarios with the seller will help minimize surprises during the listing. 4. Explain pricing strategy The main thing that prevents a listing from selling is an inappropriate price. Proper pricing can overcome nearly everything. Does the property have an inferior location? Price it properly. Is there an odd smell or is the home in desperate need of landscaping? Fix the price. The professional real estate agent should have relevant comps pulled, bearing in mind the condition of the subject property, condition and location of comps, and have the communication skills to convey this information to the seller. Be prepared and ready to explain the recommended price to the seller. It’s not uncommon for the owner to believe that their home is worth more money than your data suggests, especially in the world of Zillow. I recorded a YouTube video about this here if you need a refresher. 5. Explain pre-listing steps As a sales technique, speak to the seller during the presentation as though you already have the listing. Educate them on what will be occurring after they sign. Assume that they are going to be listing with you. It’s important that the seller know that the property won’t hit the market the instant you leave the presentation as there are many things that still have to happen. Photography must be arranged, marketing collateral needs to be created and copy must be written, as examples. Giving the sellers a heads up about the process will go a long way in establishing rapport,trust and an understanding of the cadence of the process. 6. Explain marketing strategy If your marketing strategy consists of placing the property on the MLS with one iPhone photo - this isn’t going to be enough. Since real estate commissions easily run $10,000+ on most homes in California, it’s important to explain to the seller what the plan to sell their home is and why our commissions are as they are. A well thought out marketing plan will help justify your fee and aid the seller in understanding where their money goes. Include any syndication, local marketing, and online publicizing—share techniques you use that make their home stand out in a competitive marketplace. 7. Remember to listen You want to build a relationship of trust with clients. Talk to them about why they’re selling their home and ask what their future plans are understanding their needs will help you better serve them. Also remember to include all family members in the discussion. Often times a real estate professional might only speak to one spouse, falsely believing that they are the decision maker when the decision to list might be one made jointly by both owners. God gave us two ears and one mouth-remember to use them run that ratio 8. Dress for success Non-verbal cues like body language, grooming and how we dress can say a lot more than verbal communication can. There is little doubt that in a post-COVID world the business climate has moved away from suits, ties and pantyhose in favor of a more relaxed attire. Depending on your market, how you dress might vary, but generally, business casual is probably appropriate. One last tip: While the world is a bit more casual it’s better to be overdressed than underdressed so choose your wardrobe carefully. 9. Leverage the power of reviews If you (or your company) have testimonials or online reviews from previous clients, bring them to the listing presentation. People are more inclined to trust others who have experienced success with their agents. These nine tips should help you put your best foot forward when making listing presentations. It all starts with the right real estate school so choose wisely. I’d love to help you get started in our great business. Call me at 888 768 5285 and I or a member of my team can get you started. Love, Kartik
Educational Resources For Realtors

The dos and don'ts of real estate social media posting

Social media realestate media posting

Social media is a terrific way for real estate agents to gain more exposure. However,like any other marketing strategy, you want to be careful about how you post. To ensure social media results that promote

Social media is a terrific way for real estate agents to gain more exposure. However,like any other marketing strategy, you want to be careful about how you post. To ensure social media results that promote a smart strategy, follow these do’s and avoid don’ts when posting on the various platforms. Do’s of real estate social media posting Promoting positive interactions is a must for a successful social media marketing strategy as a real estate agent. Here are a few top best practices. 1. Be selective Be selective with the social media platforms you join. It’s nearly impossible for busy real estate agents to maintain a profile on every social media network. The U.S. NationalAssociation of Realtors (NAR) found in a study 97% of realtors chose Facebook as their preferred network. Facebook was followed by LinkedIn (59%), and Instagram (39%). Roughly one-third choose Twitter. Other possibilities include Pinterest, Snapchat, and YouTube. The key to choosing correctly is to know your target audience.. 2. Be active Promoting on social media goes well beyond setting up a profile and promoting listings.If you focus on self-promotion, you’re only going to alienate people. Instead, concentrate on being a part of the community. Share posts, make comments, ask thoughtful questions, and give shoutouts to connections. Bottom line, be consistent in terms of activity and be responsive to others. 3. Use visibility strategies When posting or sharing others’ posts, be sure to use visibility strategies to gain traction. Good methods include using keywords with hashtags and tagging others in your network to give them call-outs. Don’ts of real estate social media posting Just one blunder can soil your professional standing, but a series of bad practices can really hurt your reputation if not careful. Here are the top don’ts when it comes to social media marketing for real estate agents. 1. Don't be overly promotional This is #1 on the list of things NOT to do. Don’t try to oversell on your page, but use social media to share interesting news, customer interests, how-to’s, or even fun memes. By using your page strictly as a personal listing mechanism, people will disconnect from you or scroll through your posts without even looking. Always follow the 80/20 rule when using social media. 2. Use your own photos Photos are a critical aspect of promoting properties. Ideally, you want to use your own photos to highlight listings you promote. (20% of your posts!) If using others' photos, be sure to first ask permission first and then publicly give credit to the photo’s owner. 3. Don’t post constantly The trick to social media marketing success is balance. You need to find the “Goldilocks” level of posting. In other words, don’t post so frequently it becomes “noise”,or worse, social media’s version of unsolicited robocalls. Then again, you don’t want to post so infrequently that you become irrelevant. Focus on timely, thoughtful, and interesting posts, spread out. Determine what your audience likes and then deliver it. Savvy real estate agents know how to skillfully use social media to gain the trust of potential clients and maintain strong relationships with existing ones. Focus on good social media practices, avoid bad ones, and you’ll create a standout online presence.
Educational Resources For Realtors

What is a Virtual Real Estate Brokerage

Virtual

To say that the world has changed over the last few years is certainly something of an understatement. As the pandemic began to take hold in March of 2020, suddenly in-person gatherings of any kind

To say that the world has changed over the last few years is certainly something of an understatement. As the pandemic began to take hold in March of 2020, suddenly in-person gatherings of any kind were all but impossible. In the real estate world, this created a bit of chaos as agents and clients wondered how to show a prospective buyer a house when multiple people can't be in the same place at the same time? Moreover, how do real estate agents operate in a world where everyone is suddenly doing business remotely? COVID created a perfect storm for the real estate business and allowed for some pretty powerful “virtual” or “cloud” brokerages to come to prominence. Such companies mostly exist online - meaning that there are very few, if any, physical office locations to speak of. Realtors who join such companies typically feel that having traditional office space doesn’t really matter because the nature of our work doesn’t mean we sit at a desk all day. These online companies also often offer higher commission splits to their agents because of lower overhead. The firm doesn’t have to spend money renting an office space or buy furniture, office equipment or pay utilities. Some seasoned agents who already have an extensive book of business are attracted to this virtual model as the more experienced salesperson doesn’t need as much basic training and handholding as those who are new to the field. This type of brokerage does have it’s downsides, however. In a traditional real estate firm, agents have the option of reporting to a location in the morning and leveraging support staff and have the ability to meet with clients and more. Larger real estate firms that have a significant brick and mortar presence are often perceived to have more credibility than a strictly online operation. Local buyers and sellers are often assured by a large real estate firm sign on the side of a building in their hometown that the company - and the agent - are there to stay. If you are wondering how to choose a real estate office to work at consider watching this video. Another big downside of the “virtual” brokerage can be a lack of community. While some real estate agents are comfortable with the idea of working without the distractions of the workplace, some might find it difficult. Agents are often social beings (arguably even more than the average person) and long hours with only a computer screen and a phone can be painful for some salespeople. Building a career in real estate is hard enough and without a sense of community the journey can be that much more difficult. Then again a virtual real estate firm might make sense when you consider what the duties of a real estate agent actually are. Most of the actual money making activities in the real estate industry are not performed sitting at a desk. When an agent has a client, they are either at the client’s home advising them on marketing strategy, going over offers, or touring a home or building. Whether you decide to join a brick and mortar traditional real estate firm or go with a virtual one, just make sure that you will have support from the management team so that in the event you have questions or need marketing or other support you have resources. Either way, your journey starts with real estate license courses and remember - even though we are a school that operates online, there are real people manning our phones. =) Call us at (888) 768-5285 if you are ready to get started! Love, Kartik
Educational Resources For Realtors

A Look At Home Price Appreciation

A look at home price appreciation

According to one recent study, California home prices saw a major increase of 20% in April of 2021 - shattering another already impressive record and reflecting the incredible surge of activity in the

According to one recent study, California home prices saw a major increase of 20% in April of 2021 - shattering another already impressive record and reflecting the incredible surge of activity in the market over the last two years. In Southern California in particular, prices hit an all-time high of $655,000. Not only is that an enormous 20.2% increase over 2020, but it's also approximately $25,000 higher than the price record that was set just one month prior, in March. The Factors That Impact Home Price Appreciation: An Overview But the strength of the market isn't the only thing having a significant impact on home price appreciation - far from it. Equally important is the growing net worth of the homeowners themselves. "Net worth" is a term used to describe the total value of all of a person's assets, minus the value of all of their debts and various financial liabilities. It's an important number to know, as it's a quick way to truly understand someone's larger financial health. It's also important to understand within the context of real estate, because the average net worth of homeowners tends to be dramatically higher than people who are renting. According to one recent study in 2019 the average net worth of people who owned homes was literally 40 times higher than those of renters. Those who fell into the former category had a median net worth of $255,000, while those who fell into the latter had a median net worth of only $6,300. As expected, this is a financial gap that has only been getting more significant since the onset of the Great Recession more than a decade ago. But if you understand how real estate works, this actually makes a great deal of sense. Someone's home tends to be their primary source of wealth. As average home values skyrocket and houses continue to appreciate, their wealth goes up. You don't get to enjoy the same benefits if you're living in someplace like an apartment, for example. Another important idea to understand has to do with the fact that home price appreciation and home equity are directly linked. Home equity is described as the total value of someone's interest in their current home. One of the fastest ways to build equity is to make the largest down payment that you can. If you make a down payment of over 20% (assuming you're financially able to do so), it will instantly offer more equity than it would if you had made a smaller payment. The vast majority of all people don't purchase homes in cash - they get the necessary funds via a mortgage loan. When that loan originally begins, the financial institution who gave it to you has a much larger interest in your home than you do. But as you continue to make payments, your interest goes up while the bank's goes down until the loan has been paid off. Therefore, another way to look at home equity would be to say that it's the part of your home that you actually own - meaning a financial representation of what you've already paid off on the original loan. Additional Considerations About Home Value Appreciation Of course, real estate is a complicated topic - and home value appreciation is no exception. While the factors outlined above are certainly important, there are a number of others that will directly impact a home's price appreciation, too. One of these are the neighborhood comps - something that a lot of homeowners in California are benefiting from right now. When similar homes in a neighborhood sell - meaning ones with similar floor plans, features or other qualities - that can absolutely cause a home to appreciate much faster. Because the real estate market across the country is so hot right now, a lot of people are finding that their homes are growing in value much faster than they otherwise would have had things been more stagnant. Location is also another factor that impacts home price appreciation. The quality of the local school district, the total number of desirable employment opportunities, and even the distance to points of attraction like shopping or entertainment venues can all make a home's value increase. Finally, any upgrades or updates that have been made to a home can also cause the value to appreciate. This is especially true in older homes that may have already had outdated features. If you own a home in Los Angeles with a current estimated value of between $150,000 and $250,000, for example, choosing to remodel your kitchen could add between $19,000 and $23,000 to the value of your home immediately after the project is completed. Adding a bedroom could add between $8,000 and $10,000, and even adding just a full bathroom could add between $1,900 and $2,300. Obviously, how much value certain upgrades will add depends largely on the area of the country where you live. In the end, understand that home price appreciation is still somewhat at the mercy of the local market. If someone is buying in a buyer's market, they'll be able to negotiate on the price of a home far easier than they would if it were a seller's market for obvious reasons. But the good news is that in California in particular, home prices are expected to continue appreciating for the foreseeable future - a trend that shows absolutely no signs of slowing down anytime soon. Love, Kartik