Expectations; also sometimes known as assumptions. Like a couple other things in life, everyone has them (expectations, that is). And, if you’re smart (and I’m betting you are), you already know that in any relationship, whether it be business or personal, it’s always a good idea to control what someone else expects of you.
That’s not to say you’re controlling the person. Instead you’re setting them up to know what to expect from you and your relationship. This is wise to do if your business involves direct interaction with public in anyway. In my line of work, it’s especially important.
Real estate, in some ways, is a unique business. There are many hats to wear, and many facets to the relationship between agent and client. Sometimes you’re a counselor, sometimes a coach. You’re always an advocate, and you leverage your knowledge and expertise to give the soundest advice possible. Sure, you need to be a tough negotiator, but you must also be a bridge-builder.
Somewhere in the middle of that swirl of skills and abilities lies the expectations of a home seller regarding how you will actually get their home sold. (Please note that ‘Miracle Worker’ is not a hat I mentioned wearing above.) When setting those expectations, I think it’s helpful for sellers to understand the factors that impact the sale of their home. Different people categorize these things differently … but in my experience, it breaks down like this:
PRICE
Naturally, the price you put on your home affects whether or not it will sell. Your agent helps out here by providing market data and, more importantly, their seasoned interpretation of that data. Knowing what they know, your agent will point you where they think you should go, and provide plenty of supporting evidence. However, at the end of the day, it’s your house. You ultimately chose the price. And if the home doesn’t sell, you determine when and how much to adjust that price. So, Item #1: you control.
CONDITION
What does your house look like? How does it show? Again, you need to find an agent that will tell you honestly what your challenges are here, and which ones you can remedy. Sure, there are some things you can fix, like if your house is built on a slab, you really can’t go back and add a basement now can you? However, there are usually a number of areas where the seller can make improvements to the way a house shows, if they choose to make those changes. So here again, this one is up to you, the seller. Item #2: you control.
MARKET
What I mean by ‘The Market’ is the pool of buyers available at any given time. You may have a great house and a fair price but if it’s a unique property or in a challenging price range, there may only be a few buyers looking for what you’re selling. And you don’t control that at all. Item #3: the market controls.
COMPETITION
I think this is the one most sellers don’t adequately account for. Sure, you know there will be other homes on the market, but what you may not realize is how much they will impact you. Your competition affects your sales price, your days on market, the terms that buyers will expect to be able to get, as well as the condition buyers will demand. And, here’s the kicker: your competition changes every single day. Item #4: the market controls.
EXPOSURE
Some call it marketing, some call it promotion. Whatever name you give it, the idea here is whether or not enough of the right people know your home is for sale. There are innumerable ways to market a property, and some ways work better than others. Here’s where the agent you have chosen really comes into play. Based on their knowledge of the market and what works best, they will implement a strategy to “get the word out.” That’s their job. Of all five factors, only #5 is controlled by your agent.
So think of it this way: Let’s say you start a business selling red, helium-filled balloons. And then you hire someone to sell those balloons. Well, if you determine that you want to sell them for $10 apiece, the salesman is going to have a pretty tough time (unless you live in an abnormally balloon-fanatical community). What if your balloons are priced appropriately, but they go flat in 20 minutes? Well, that’s not the sales guy’s fault either, is it? The product must be as good as or better than its competition.
Okay, now maybe you have well-priced balloons, which last several days. Now we’re getting somewhere. Now suppose there’s a nationwide ban on holidays and celebrations (I have no idea the reason … why are you selling red balloons to begin with?). There’s no amount of good salesmanship that’s going to overcome the fact that no one can have a party.
Or, what if parties and celebrations are back on, and suddenly balloons are loved and in high demand. As a result, 13 Red Balloon Stores open up all over town. When you got into the balloon sales business, you were the only game in town, and now everyone just wants to go to the “big box balloon store.” You get my point.
Finally, let’s assume the world is as it should be. Balloons supply and demand is at equilibrium. Prices are steady and competition is at a minimum. These are all factors controlled by you or by your environment. Now, if you hire a salesman who then stands on a street corner silently holding a bag of un-inflated balloons … well then that’s a bad strategy, and it IS his fault if they don’t sell.
Ultimately, when the time comes for you to sell, even if your agent doesn’t outline expectations in this way, it’s still a good idea for you to have this in mind. Expect them to do their job and expose the property to the widest and best audience. Just be aware of the factors that you control, and the ones the market dictates.