"Out of Bounds" Showing Directions

Showing Directions as
Marketing Strategy

One of the most famous lines in sales is "always be closing" ("ABC").

Less well-known -- but equally important -- is "always be marketing."

I was reminded of that yesterday when I was showing homes to Buyers yesterday in the West suburbs.

"Out of Bounds" Showing Directions

Prior to meeting clients to tour "For Sale" homes, Realtors will typically print a map with all the homes they'll be visiting.

However, once the Realtor gets close to a particular home, it's common to consult the MLS listing info and follow the listing agent's directions.

Which I did.

About halfway through my (especially scenic) drive through Cedar Pass -- a newer, upper bracket neighborhood in Minnetonka -- I realized what the listing agent was up to.

On the west side of the "For Sale" home -- the more convenient and closer approach -- is a neighborhood of older, more modest homes.

On the east side is Cedar Pass.

Best foot forward, indeed.

P.S.: And no, I don't think such a tactic is out-of-bounds (pun intended); it's actually very good marketing!

When the Cover-Up is Worse Than the Crime

Damage Control: Advice to Prospective Sellers

As Watergate made plain, the cover-up is often worse than the crime (although in Richard Nixon's case, ordering a burglary was plenty bad in its own right).

The same principle applies to selling homes.

Here are three examples where covering up a problem is worse than simply leaving it be (or preferably, fixing it before prospective Buyers ever show up).

One. Odors.

I don't know about other Realtors, but whenever I smell the distinctive aroma of a plug-in (or more accurately, my clients do, because my sense of smell is atrocious), my hackles immediately go up.

What is the Seller trying to hide? Is there a water intrusion problem somewhere? Other damage? Is the smell mold, or could it just be mustiness from not having the house opened up recently?

If in fact a home smells moldy, the homeowner should identify the source of the water -- which is always the culprit -- and eliminate it.

Even if the offending odors are from an especially pungent dinner the night before, it's still better not to try to mask it.

(Advice to Sellers: you may want forego preparing especially spicy or exotic dishes while your home is on the market -- or at least those days you're expecting lots of traffic. Seriously.)

Similarly, if the home smells of fresh paint, that can be a cue to look for wall or ceiling damage resulting from a defective roof, recent plumbing problems, etc.

Two. Noise.

Whenever I hear too-loud background music (I guess that would make it "foreground" music), I look outside: is the home on a busy street? Is it close to (or under) the flight path? Is there a commercial business near by?

"Foreground Music"

I think a good rule of thumb in such cases is, if you notice the music . . . it's too loud.

It's also surprising to me how often music that the Sellers assume is tasteful and mood-setting . . . isn't.

Three. Concealed damage.

Probably the most egregious example of covering up damage that I've personally encountered was the shoe I tripped over -- 10 seconds into the showing -- in the middle of the Seller's Living Room floor.

Directly below: a hole in the floor that went all the way through to the basement.

Aside from being dangerous (physically, liability-wise, etc.) it's also dumb: my Buyers had seen all they needed to to know that this wasn't the home for them.

As a practical matter, the cues that there may be underlying damage are (usually) much more subtle: the too-big or oddly out-of-place rug (covering damage to the flooring); a wall hanging that seems misplaced; a piece of furniture that you keep bumping into (again, covering floor damage); a shade that's pulled down because one or more window panes are broken.

If the prospective Buyer catches the problem early, their trust is shot; if they catch it later, during a second showing or even at the walk-thru, they're likely to demand a big price concession or may even threaten to walk if the problem is big enough.

Even if they stay in the deal, I can guarantee that the now-distrustful Buyers will ratchet up their scrutiny of everything else in the home!

None of the foregoing scenarios makes the Seller better off than if they had simply dealt with the problem in a straightforward manner from the get-go.

Did They Really "Give it Away?"

How to Tell if it's a "Fire Sale"

Realtors hear it all the time (often from neighbors or prospective Sellers protesting about the value of their home):

"Oh, they gave it away."

"The Smith house? That was a fire sale."

"They sold for way too little."

How to Tell

Whenever I hear the foregoing, I typically respond with the following three questions:

One. How long was the home on the market?

It's awfully hard to make the case that any given home sold too low once it's gotten a couple months -- or years -- of market exposure.

That's true even if the marketing has been, shall we say, lacklustre (see "Fire Sale" Factors, below)

Two. Did you see the inside?

It's surprising how many people who are convinced that a home sold for too little . . . have never been inside! Or, if they were, were last in 25 years ago.

It's pretty hard to assess the value of a home you really don't know very well (if at all). Which leads to . . .

Three. Did you inspect it?

I'm aware of several transactions where the ultimate selling price was at least partly explained by major issues uncovered during the inspection.

In one case, a slate roof that looked fine from the street . . . wasn't. Replacement cost: north of $30k.

True Fire Sales

Of course, none of the foregoing is to say that some homes do appear to sell for too little.

In fact, I'd (conservatively) estimate that as many as one-third of the homes on the market fail to maximize their selling price.

Here are the factors that I think are most responsible:

--Poor (or no) staging
--Poor (or no) marketing, including unflattering or out-of-season photos
--Initially overpriced, which leads to too-long market time, which ultimately leads to a discounted selling price
--Major discount due to minor deferred maintenance (I tell Sellers that every $1 in deferred repairs can easily subtract $3 from their selling price).
--Bank-owned property
--For Sale by Owner ("FSBO"): usual pattern is, from way-too-high, to, way-too-low
--Restrictive showing instructions: Buyers won't buy something they can't get in.
--Estate sale with out-of-town owners (sometimes, they don't have a clue; other times, they explicitly tell the listing agent that selling fast is more important than maximizing the price).

Plus, perhaps the biggest yellow flag of all: the home sold the first week (or day) it was on the market -- or even before it hit the market.

The Buyer's agent?

The same agent representing the Seller (called "single agent dual agency").

(Note: to really know if the price is below market . . . you (still) have to know both the home in question and the market.)

"Please Remove Shoes"

"Please Remove Shoes??" Please Remove Carpet (Tack) Strip!!

Removing your shoes at the front door before proceeding to show a home is one of those courtesies that Realtors -- and their clients -- invariably respect. Ditto for the other, standard showing instructions ("turn off lights, leave card, don't let Fluffy out").

Removing your shoes in winter in Minnesota is especially important, because not doing so could easily leave the owner with a big cleanup headache (if not a bill for carpet cleaning).

Especially if your client ends up wanting to buy the home, that's not an auspicious start.

In fact, I even wear a scruffy pair of slip-on's whenever I show homes, just to make it easier to comply.

However . . .

The implicit quid pro quo is that the homeowner's floors are clean, debris-free, etc.

And that there aren't things like nails sticking out of carpet strips in lower level storage areas!

(Guess how I discovered it? Ouch!!)

P.S.: And yes, the shoes go right back on the second it's apparent that the request is, shall we say, "inappropriate."

Showing Instructions

"Do's" and "Don'ts" for Home Sellers

Want your home to sell?

Here's a quick checklist of "do's" and "don'ts":

--Hire a good Realtor, who knows how to price, market, pre-market, draft contracts, and negotiate (and can coach you through the rest of this list)
--Make sure that everything in your home is in good working order. If your city has a point-of-sale requirement, get a certificate of compliance.
--Price your home well, based on the comp's ("comparable sold properties")
--Hire a good stager.

Last but not least . . . make sure your home is accessible.

I'm trying to get clients into a home now that requires 24 hours' notice for showings, says no showings before 1 p.m., and no showings on Saturdays. Seriously.

Might as well put up a billboard that says, "not serious about selling."

P.S.: And yes, in lots of these situations, the delay is due to a renter. If you're a landlord/owner, make sure your lease permits access on reasonably short notice.