Avoid These Common Mistakes to Maximize Your Home's Financial Return!
Don’t Let Emotions Cloud Your Logic!
Your Real Estate decisions are probably the most important Financial Decisions you may ever make. However, most are made from emotion, not Financial Optimization.
So why do so many people disregard this fact when they choose a Real Estate Agent to represent them in the process of selling their home? It is very likely because they Probably Have Not Examined Their Own Logic for Making the Selection.
There are no reputable statistics on why people choose a Real Estate Agent. The most common reasons include “They are a Relative, a Friend of a Relative, a Relative of a Friend, their Farming Efforts in My Neighborhood, their Advertising, their Company Size, their Sales Volume claims, their Picture, they seem Sincere, their claim to Knowledge”, and the list goes on, to infinity. All Agents are trained and coached to focus on earning your trust, with an emphasis on emotional connections. What do you think is most important????
Change Your Perspective for just a moment:
Do these reasons Make Good Sense from a Financial Perspective? OF COURSE NOT!!!………So Consider Some Options……….
Most Real Estate Agents focus their marketing and selling efforts on YOU! Their goal is to convince you that they are someone with knowledge that you can trust, and try to be in your thoughts at the time you are ready to sell your home. It’s the Convenience Store Mentality and has no correlation to Optimizing the Financial Outcome of your Real Estate transaction. If you think that because they are good at Selling YOU that they will also be good at selling your home, well, you are sadly mistaken!
The process is Completely Different and requires a Different set of Skills!Consider the selling process. To keep it simple, after you have signed a Listing Agreement you have Marketing (not Selling), Negotiation, and Facilitation (to Close your Escrow).
You should know that major organizations have access to the most widely used Internet Marketing Sites and will automatically post your Home to every major high traffic site. There is no differentiation here. Unless your agent has a specific plan that goes beyond broadcasting your listing, they should not waste your time on this topic. We believe that highly Targeted Marketing which is developed and paid for by your agent is the Best Solution to optimize your Financial results.
Lesson learned: Marketing needs to be more than mass distribution. Targeting the Right Buyers allows you to Maximize Your Financial Returns!
Next comes Negotiation. Very few, if any, Real Estate Agents are trained and have extensive experience in the Negotiation process. Buyers are almost always represented by an Agent so you need to understand that Selling Skills are NOT an Advantage here!
Since most of the Offer/Counter-Offer process is conducted between the Agents, and NOT between the Buyer and Seller, your best representative is someone who knows how to hold the line on true value and who can communicate that effectively to the other Agent so they can present that to their Buyer in a way that makes logical Financial sense.
Lesson learned: Choose an Agent who has a solid background in Negotiations and is willing to present Your offer/counter-offer face-to-face with the Buyer.
If you have a Pit-Bull Agent (a really “Great Salesperson”), you do NOT want to let them turn their Selling skills on You just to get the deal closed! Keep in mind it worked on You once already, when You hired them.
Finally comes Facilitation. It is important to note that all agents have access to, and consistently use, Transaction Coordinators to help assemble and organize the documents that are required to Close a Successful Escrow. Anyone who does not include this support in their business model is putting you at risk if they forget, become too busy, or make a mistake in the paperwork processing portion of your Selling Transaction! You should obtain a very clear explanation as to why any Agent seeking your business would ever consider not employing these resources on your behalf!
Likewise, selecting an Agent with Organizational and Project Management skills and years of successful experience who believes in Overseeing Their Transaction Coordinator could save you from losing Time, Money, and encountering Emotional Duress in the VERY COMPLEX process of completing a Sales Transaction and Closing Escrow.
Lesson Learned: Look for Problem Solving Skills and Composure Under Pressure. The ONLY Differentiation Possible in the Facilitation Process is Your Agent’s ABILITY and MINDSET to Monitor the Transaction Coordinator and Keep You Updated in the Closing of Your Escrow!
Finally, Dare to Compare and Don’t Give Away Your Advantage in the Process! Your advantage is that you have an opportunity that every agent wants to acquire. It is to be the Real Estate Agent you have chosen to sell your home. You absolutely MUST take the time and effort to compare your choices! As we stated earlier, Your Real Estate decisions are probably the MOST IMPORTANT Financial Decisions you will ever make!
You hold all the Trump! Do not play your cards prematurely – keep all your Agent Sales Proposals confidential and DO NOT disclose any information to your suitors other than they are in a group of options that you are considering. Every Agent will probably have a different approach to winning your business, so think about the things they are promoting and translate those promises into your MOST IMPORTANT GOAL.
You want to sell your Home for the MOST FINANCIAL GAIN possible! This could be a function of many factors including Price, Holding Costs, and Opportunity Costs, etc. that you will incur in the Selling Process. Choosing an Agent with Financial Expertise and who is also Trained in the Process of Educating You is critical to your success! Knowing the long-term ramifications of your decisions is the most important factor in your decision process.
Regardless of how you set your priorities, the decisions you make MUST be made with full knowledge. You would be surprised as to the number of opportunities your Real Estate Agent will encounter to let you have your way, without challenging your thinking with more information, without challenging your logic with professional expertise, and allowing you to make a less than optimized decision based upon your emotions rather than Financial Outcome!
A Truly Great Agent will always support your final decision with the knowledge that they have provided you with ALL the facts and choices that matched your goals, and have pointed out where your thinking did not align with your stated objectives. You cannot ask for anything more.
Final Lesson Learned: Compare!
Select an Agent with a Strong Financial Optimization Background who understands the art of Negotiating from a 3rd Party Perspective. Make Sure they are focused on Learning about You, and Not Selling You on who they are!