Chicago and Southern Illinois Real Estate Happenings

I win listing contracts by serving my potential clients.

One owner had me trimming his 25 foot tree on a Saturday; with hedge clippers and a step ladder... NOT a gas powered trimmer, NOR an electric trimmer. It took the better part of 4 hours to do. That afternoon we signed the contract to list his home(was sold for full price within 1 week).

One owner had me giving him listings and a full CMA from his internet connection at his home (Him and his wife signed a listing contract after I showed them the CMA AND let them see me compiling it).

Another owner had me cleaning out his gutters and contacting a roofer to inspect and replace worn shingles one weekend after he agreed to sign a listing contract (He was a building engineer on assignment in China).

I looked after an owners dog and cat after signing a listing contract AND was present at ALL showings of their home (A sales contract was signed within one week).

Besides doing a competent CMA and telling them what you will do to market their property -- what do YOU do to win a listing contract?

What do you say after a person says to you,"I might sell my house in about 2 weeks, but I don't know what to sell it for."

Do you have a script that you have memorized?

Do you know what questions to ask from your prior training classes, and how do you ask those questions?

The first thing I would say to ANY agent is: BE YOURSELF.

Ask how old the house is, how big it is, when it was built; any question to get the prospect talking about the most important investment in their life; then just listen till they stop -- then ask another question.... ANY question about the house.

BE YOURSELF.

When THEY are at the point that they know you CARE about them and their investment from YOUR HEART, then you give them your business card and ask them for their contact info.

NOW --- You more than likely have a HOT PROSPECT, because you have proved to them you care ABOUT THEM AND THEIR HOME.

NOT your commission (remember you did not say a thing about what you are getting paid; when they are convinced of your worth BECAUSE of your heart felt caring and attention to them and their investment, that will take care of itself).

Not a script, although they are good to overcome the jitters, or inexperience.

JUST BE YOURSELF...... CARE FROM YOUR HEART

I used to think spending a LOT of money getting leads was the way to go because,"You get what you pay for" after spend ing over $7500 and closing ONE deal from "buying leads"..... NOW I spend time talking to EVERYONE I meet about real estate...and the leads come to me..... how much do I spend....time talking to people about real estate.....I spend TIME talking to people about real estate...just time...

I have little more invested beside that...I have 5 websites, but they are all FREE...I have domain names for them...@ $8.95/ domain/ year...I spent time taking classes to get designations on what I could see were the most efficient lead generating systems out there --- websites, domains and web SEO. And I talk to people about real estate. I use yahoo notebook and my client database in Point2Agent, both of which are FREE.

When I get my car filled with gas, go to Walmart, Target, Home Depot, Lowes, Perkins, Dennys, McDonalds, Burger King, TGI Fridays, Chilis, Ruby Tuesdays, Baskin Robbins, ColdStone Creamery, Dominoes, Donatos, Papa Johns, Bike Works, Pawn Shops, Appliance Direct, CVS, Wallgreens, the movie theatre, Blockbuster Video, The Camara Store, Publix Grocery Store, Albertsons Grocery store, The Mall... I think you get the picture...my life is my lead generating machine...just as I had been taught in all the classes I took after I got my license 8 years ago.

Out of the abundance of the heart the mouth speaks: In other words, you talk about what you love; I talk about God, my wife, my family, my hobbies and real estate.

I love my life.....which includes all of the above.... how do you get your leads?       Feel free to comment.....

"B-rring!"

The telephone rang.

It was my friendly neighborhood mortgage guy.  Not the goofy loser in the Di-Tech ad, not the cheesy bald disco reject in the "Stop This Man!" ad, and not the bunch of goofballs you used to see in the Lending Tree ads.  Those are caricatures and I've never met loan officers that resembled anything like what you see in those ads.

This guy was professional and he was following up on my online refinance application.

Huh?

That was a pretty fast response, especially because I didn't remember filling out a mortgage application on the web.

He was surprised, too, and suggested that he verify my information with me.  He had my name right.  He had my phone...

Wait!

I have two lines at home.  One is personal.  The other is business.  He called my business line.

Hmmm....

He also had my business address, not my home address.

Obviously, someone had entered my name on an online form.  I didn't do it.  If I wanted to refinance, I could do it myself.

Anyway, we had a friendly chat and decided I didn't need a mortgage, so we ended the phone call.

"B-rring!"

Another friendly neighborhood loan officer.  Eight calls in one day that I can verify, plus at least two hang-ups.

Now I knew what it was like to be a "lead."

You see, there are some web sites that specialize in getting you to fill out "lead-generating" forms.  They don't identify what company or individual will get the form and call you.  That is because they "sell" you.  They sell your name.  You are a commodity.  You are how they make money.

They sell you multiple times.

To mortgage lenders, it is common to be sold for ten to forty dollars a pop.  Since ten lenders called me up today, I was probably sold at least ten times.  Some company (I don't know who) made $100 (or more) off me.

And I didn't even want a loan.

All the mortgage lenders who called, paid to get my name.  At least ten mortgage companies got ripped off.

But someone made money.

As a real estate lead, you (and I) are worth even more -- sometimes a lot more.  Maybe you get sold for $75 a lead.  Some lead-generating companies charge agents a subscription and guarantee a certain number of leads per month.  Some will only provide leads to agents if they give up as much as 35% of their sales commission or a certain minimum, whichever is higher.

Now there's a middleman for you.

Sure, when I subscribe to a magazine, I realize they are selling my name and I will get junk mail from credit cards or whatever.  That isn't their main source of business, though -- and I have a trash can just for junk mail.

These companies are different.

Consumers bought and sold like commodities for big bucks.

I don't like being sold.  I don't like being bought. 

For some reason, I don't mind calling an ad if one person or company is behind the ad.  Like a mortgage lender.  Or a real estate office. 

But when the ad is from a company that doesn't do loans or sell real estate -- and they make their money just for selling my name to companies that do -- well, that bugs me.

Some home buyers and sellers (and borrowers) obviously don't mind it, or maybe they just don't know this is going on.

Maybe I'm just over-sensitive.

Because I was in the business, I look at real estate agents and lenders as more than "just" salespeople.  Most are licensed by the state.  The state licenses them because they have obligations to do MORE than just "sell" the client.

They are supposed to act as an agent.

They are supposed to help me.  They are supposed to tell me things I don't know that they think I should know.  They are supposed to advise me, not just "sell" me.

Or buy me.

Maybe I'm old-fashioned, but I think there is a difference.  I don't like being sold.

And I am STILL getting those calls........ :-(

Anyone else getting calls like that?

Nationally, the median average sales price increased 5.99% over the last year. Regionally, prices increased by 4.55% in the West, 1.16% in the Midwest, 7.09% in the Northeast, and 5.56% in the South.

The median price is that price where half the homes sold for a higher price and half sold for a lower price.

Seasonal factors come into play with larger homes being sold in the summer than in the winter.

BUT the median sales prices are as follows 1st if the West with a median price of $345,000 2nd is the Northeast at $287,000, 3rd is the south at $190,000 and 4th is Midwest at $174,000

I would have thought the south would have come in second to the west....any comments? With how the North is loosing population at an alarming rate and the south and west are gaining, it didn't make sense to me.

Info. is from the National Board of Realtors®

So you've decided to sell your home and have a fairly good idea of what you think it is worth. Being a sensible home seller, you schedule appointments with three local listing agents who've been hanging stuff on your front doorknob for years. And all you agents know who you are..... Each Realtor comes prepared with a "Competitive Market Analysis" on fancy paper and they each recommend a specific sales price.

Amazingly, a couple of the Realtors have come up with prices that are lower than you expected. Although they back up their recommendations with recent sales data of similar homes, you remain convinced your house is worth more.  That is called "Pricing your home with your heart and not your head.."

When you interview the third agent's figures, they are much more in line with your own anticipated value, or maybe even higher. Suddenly, you are a happy and excited home seller, already counting the money. You are getting ready to buy a new car, get your teeth done and more... you can't wait to spend some or all of that money the agent says he/she is going to make you.

A Sales Practice Called "Buying a Listing"

If you're like many people, you pick Realtor number three. This is an agent who seems willing to listen to your input and work with you. This is an agent that cares about putting the most money in your pocket. This is an agent that is willing to start out at your price and if you need to drop the price later, you can do that easily, right?  Does that sound like any of the agents you have met?

After all, everyone else does it!

The truth is that you may have just met an agent engaging in a questionable sales practice called "buying a listing."  He "bought" the listing by suggesting you might be able to get a higher sales price than the other agents recommended. Most likely, he is quite doubtful that your home will actually sell at that price. The intention from the beginning is to eventually talk you into lowering the price. He/she has convinced you that if the house doesn't sell at that price, later when the house has been on the market a while ( 1-3 MONTHS) and NO-ONE is looking at it, a lower price will have buyers eating out your hand again.

Why do some agents "buy" listings this way?

There are basically two reasons. A well-meaning and hard working agent can feel pressure from a homeowner who has an inflated perception of his home's value. On the other hand, there are some agents who engage in this sales practice routinely. They are the agent communitys biggest nightmare........

Ever lost a listing to one of them? Comments.......anyone?

Summer is the season of the "do-it-your-selfer." Handy homeowners come into their own as the weather warms and they can embark on all those home improvement and maintenance tasks that languished all winter. Painting tops the list for many homeowners; it not only protects your interiors, painting is a great way to liven things up and can add value to your home if you are thinking of selling it.

Giving interior walls a fresh coat of paint is well within the abilities of most homeowners. Here are some helpful tips for when you "Take up the Brush" and start painting:

Preparation

* Good surface preparation is the key to a long-lasting and great-looking paint job. Repair cracks or chips, sand and smooth rough edges, and clean chalky surfaces. Give the walls 24 hours to dry after you have wiped them down. Nothing is worse than having your paint run after you have just spent LOTS of time making it look "just so".

* Assemble all painting tools and cleanup supplies before you start. You will need paint (one gallon per every 300 to 400 square feet), painter's tape, drop cloths, brushes, rollers, paint tray liners, paint thinner and rags. For fast, easy painting, consider a power sprayer or power roller.  Recent innovations make these tools easy to use, easy to control, easy to switch colors and easy to clean.   Power sprayers will reduce your time painting by a great amount. They are easily rented from home improvement stores.

* Protect floors and furniture with a drop cloth or sheet.

*Cover trim with a low-tack painter's tape to protect trim. Low-tack or less sticky tapes are easier to remove and less likely to harm wood. These are also available at home improvement stores.

*Protect windows with Glass Mask, a liquid product that is easier to apply than traditional tape. The product comes in a plastic tube that fits easily in the palm of the hand. To apply, simply press the attached applicator pad to the window and glide it along the trim that will be painted. Once the liquid is completely dry, you can paint the trim. Any paint that laps onto the Glass Mask can easily be scraped off with the included blade. One tube of Glass Mask will cover about the same lineal footage as three rolls of traditional tape. The product is available at hardware, paint supply and home improvement stores.

* Remove loose fibers from roller covers with painter's tape or a lint roller before using.

Mortgage lenders generally check with three credit bureaus in order to evaluate your past payment history. Your goal in cleaning up your credit report should be to clean up each of the three bureaus. If you only work on one, this does not effect the reporting to the other bureaus.

Get A Copy of Your Credit Report

The first step is to get a copy of your merged credit report, which shows all three of the major bureaus, Experian (formerly TRW), Equifax (formerly CBI), and Trans-Union.  Most mortgage lenders will obtain data from all three of these bureaus in analyzing your credit history.  The exception is that some portfolio lenders (usually adjustable rate lenders) may only review one.  To make it easier for you, the reporting agencies allow you to order a report online once per year free of charge

What to Say When You Call Your Creditors

There are two efforts that must be made. First, call any creditors reporting a negative and ask them to remove the negative item. Ask in a nice calm voice and do not get upset when they say no. Simply repeat your request over and over in your nice pleasant voice. If you get nowhere, then ask to speak to the supervisor. Make sure you keep a log of your conversation, noting the date, time, who you spoke to and what they said. Repeat this procedure over and over. In a high percentage of cases, it works.

Every home improvement you make today increases your home's value and helps you sell tomorrow—and, of course, makes your house more comfortable in the meantime. But before you head to the hardware store, be sure to consider projects with potential buyers in mind, even if you're not ready to sell. Here are some improvements that are guaranteed to make the strongest impression.

1) Remodel the Kitchen
The kitchen is the heart of the home, so expand and update it to modernize the feel of the entire house.  Storage space is key. Personally, my wife has said she will NOT want another home without LOTS of storage space in the kitchen. In addition to plenty of cabinets and generous countertop space, buyers like breakfast nooks with pull-up stools, open floor plans that connect to family rooms, rollout cabinet trays, granite countertops and stainless steel appliances. Also, a separate cooking island might not be so easy to incorporate into your kitchen but adds so much flare it is a nice thing to look into.

2) Beautify the Bathroom
Add a master bathroom or update an existing one, and you’re boosting your home’s comfort and luxury factors.  Buyers love spacious, spa-like retreats with deep tubs, stone or ceramic tiles, his-and-hers toilets in private alcoves and dual sinks. Large wall covering mirrors will add to the overall feeling you are trying to convey. Try to make a nice large walk in closet and your wife will love you for it.

3) Create Curb Appeal
A house’s exterior charm attracts buyers and creates that vital first impression. Hire a landscaper to prune or replace overgrown shrubs, a lawn service to green up a dead lawn, and a painter to scrape away peeling paint and apply a fresh coat of color. Cover bare flower beds with wood chips. Make sure the lawn is edged and all weeds poking through any cracks in the cement are pulled or killed with RoundUp or a similar chemical treatment.

4) Make More Room
Add a bedroom, office, family room or playroom to improve your home's value. Choose the addition based on who might move in: A new bedroom, for example, is great for a family-oriented neighborhood. Increase your living space by building up, bumping out, or by finishing a basement, attic, porch or room over the garage. Many people convert their garage to a livingroom or extra den or bedroom. You can actually keep some storage space from the old garage by just making the interior wall several feet closer inside than going all the way to the outside wall of the home.

5) Upgrade Cosmetics
Home buyers have a hard time seeing past dated details. Tear out old wall to-wall carpeting, swap linoleum and vinyl for new ceramic tile, refinish dingy wood floors, replace low-grade moldings, hardware and lighting fixtures, and paint the walls in neutral colors.

Many homes are not sold, sit on the market longer than needed or sell for less than they should because a shortsighted owner did not want to prepare their home for sale by seeing their property through a buyers eyes. Investing in your property in the short term will gain you much more money when it is sold to a buyer who sees an upgraded and well kept home.