Latest / The Real Estate Agent Playbook / Listings Sitting Too Long? You’re Probably Ignoring These Buyers

Transcript

Listings Sitting Too Long? You’re Probably Ignoring These Buyers · The Real Estate Agent Playbook

• 0:00
  we have a new phenomenon going on
• 0:02
  right here in real estate
• 0:04
  and that is that our listings may be sitting
• 0:07
  if you have a listing that's sitting
• 0:08
  we may need to pull back the curtain
• 0:10
  consider a couple options
• 0:12
  and I have done this recently
• 0:14
  and absolutely seen results start to pick up
• 0:17
  so stay tuned
• 0:23
  what's up guys Jeremy Kane
• 0:24
  the Real Estate Agent Playbook and EXP Realty
• 0:27
  excited to dive into this one
• 0:29
  because I think it's worth talking about
• 0:31
  looking back at the market
• 0:32
  I am very dialed into my hyper local market
• 0:36
  and understanding what we can do to get creative
• 0:39
  to help
• 0:41
  maybe you know
• 0:42
  right now it's free up some of the sitting inventory
• 0:46
  and I got to thinking
• 0:49
  a lot of the buyers for my listings
• 0:51
  are actually selling a smaller house in the same area
• 0:56
  so I kind of dove deep
• 0:58
  but if you like information like this
• 1:00
  you like strategies
• 1:01
  I also talk a ton about sphere of influence
• 1:04
  and growing your business
• 1:05
  I've helped over 150 agents in my organization
• 1:09
  grow their real estate businesses
• 1:10
  if you are interested in anything like that
• 1:12
  or you need my help please do not hesitate to reach out
• 1:15
  you can find all my contact information
• 1:17
  in the comments below so let's talk about this
• 1:20
  contingent offers may bring serious buyers
• 1:23
  there is and was
• 1:25
  a time
• 1:26
  where we weren't really considering contingent offers
• 1:28
  because we didn't need to
• 1:30
  but there was also a time before that
• 1:32
  where a lot of the sales would have a contingency
• 1:35
  and even sometimes two or three lined up right
• 1:38
  it's not comfortable it's not amazing
• 1:40
  because you're relying on
• 1:41
  three different people to get the financing together to
• 1:45
  you know make all of these Domino's fall
• 1:47
  and so that's part of part of why it's kind of like
• 1:51
  oh no we're not going to take a contention offer
• 1:54
  also I wanna say that hyperlocally
• 1:56
  there are a lot of different rules based on okay yes
• 2:00
  we can take this contingent offer
• 2:01
  we can't how can we market the property moving forward
• 2:05
  and so in our market if we take a contract
• 2:09
  we have to note that we have a contract
• 2:11
  and that it's pending accepting backups
• 2:14
  at that point it kind of falls off of our search radar
• 2:17
  it falls us off of that
• 2:18
  and typically we don't show those under contracts
• 2:22
  in a market like this
• 2:23
  where there is enough inventory to go around
• 2:25
  each Mark is different each MLS rules are different
• 2:27
  so if anything I say here
• 2:29
  doesn't kind of line up with that
• 2:31
  I'm in Denver uh
• 2:32
  I'll talk about it from a Denver perspective
• 2:35
  we're not gonna go too far into that
• 2:37
  I just wanted to make that note
• 2:39
  so let's talk about this right
• 2:40
  we have a bunch of different buyers that are
• 2:45
  you know trying to sell their home in my instance
• 2:48
  I have a large listing in Castle Rock
• 2:51
  it actually hasn't had any showings
• 2:53
  the one showing got canceled
• 2:55
  because those buyers went under contract
• 2:57
  in three or four weeks right
• 2:59
  it's the largest home in the area um
• 3:02
  by a significant amount
• 3:04
  it has an in law apartment in the basement
• 3:06
  it's a walkout basement
• 3:08
  so there's a lot of good things here
• 3:09
  the price per square foot
• 3:10
  we are very competitively priced
• 3:12
  however the price of the home is higher
• 3:14
  because the rest of the homes around it are smaller
• 3:18
  and so got to think as like there's a lot of
• 3:21
  you know people
• 3:22
  there's a lot of inventory stacking up
• 3:25
  and I think that's where our buyers are right
• 3:27
  so we went in we
• 3:29
  I said let's go look at a few houses
• 3:31
  you may fall in love
• 3:31
  but I'm going to try and get someone to take our
• 3:33
  contingency so therefore
• 3:35
  we know what we need to get out of the home
• 3:38
  so we can slash the price pretty aggressively
• 3:41
  and get it more into you know
• 3:43
  the ballpark of where
• 3:45
  where the homes need to be in order to
• 3:47
  you know get it sold
• 3:49
  so we did that we actually had the
• 3:51
  you know
• 3:51
  a conversation with the listing agent on another home
• 3:55
  she didn't end up taking our offer
• 3:57
  her clients didn't end up taking our offer
• 3:59
  but it did uh
• 4:01
  spur my clients to you know
• 4:03
  aggressively lower the price
• 4:04
  because they felt like it was an opportunity right
• 4:07
  we went out to one day they found a house they liked
• 4:09
  so they feel like they're pretty comfortable
• 4:11
  where they're at so
• 4:12
  we're not just gonna sit
• 4:13
  around and wait for the market
• 4:14
  is the whole point right
• 4:16
  if we wait until you know
• 4:20
  buyers pick up and showings pick up and so on
• 4:22
  and we just kind of lower the price a little bit
• 4:24
  and whatever right
• 4:26
  kind of chase the market to the bottom
• 4:28
  well then these people will be buying in that same
• 4:32
  more competitive style market
• 4:34
  whereas if we can push the envelope
• 4:36
  we may have to sell our house at a discount
• 4:38
  but we're also gonna get the replacement at a discount
• 4:41
  cause we're buying in that same market
• 4:42
  we're not waiting for the market to change
• 4:45
  and so that's kind of where this all came from
• 4:48
  but then it got me thinking
• 4:49
  why are people so adverse to contingent offers
• 4:54
  and it's because of where it's been right
• 4:57
  so inventory is growing buyer urgency is down
• 5:00
  there's a lot of uncertainty in the economy
• 5:01
  the interest rates haven't
• 5:03
  you know behaved as we wish they would
• 5:06
  um but contingent buyers might be really serious
• 5:09
  and if they purchase your home
• 5:11
  and they know exactly what their monthly payment is
• 5:13
  what their down payments required and so on
• 5:15
  then they have a baseline
• 5:16
  for what they can lower their home to
• 5:19
  and maybe get it sold and at the end of the day
• 5:21
  if it's you know
• 5:22
  moving into this
• 5:23
  house that better suits their lifestyle
• 5:25
  or better suits their financial situation
• 5:27
  or whatever it is if they have all those numbers
• 5:29
  and it's laid out and that property is identified
• 5:32
  then they can get more aggressive on selling theirs and
• 5:35
  and go from there and I get it
• 5:37
  like taking a home off the market
• 5:39
  doesn't seem like a great idea
• 5:41
  but when you're getting one or two showings a week
• 5:43
  anyways
• 5:44
  right or less I don't see a major problem in
• 5:48
  in trying to work something out
• 5:50
  now how do we vet those contention offers
• 5:53
  is something that's extremely important
• 5:55
  since we haven't really done it um
• 5:57
  we want to make sure the home is currently listed
• 6:00
  make sure it's presented okay
• 6:02
  make sure you know I
• 6:04
  as the buyers
• 6:05
  or as the listing agent on the contingent
• 6:08
  they're now contingent property
• 6:10
  I make sure that the comps make sense
• 6:12
  I make sure that everything's positioned really well
• 6:15
  and that you know
• 6:16
  I know kind of their game plan
• 6:18
  what are they gonna do right
• 6:19
  what's market like in that neighborhood
• 6:21
  what have they done for marketing
• 6:23
  um
• 6:24
  who are they working with and all of those things
• 6:26
  so we're gonna look at the whole ball of wax
• 6:29
  and talk about the history of
• 6:30
  you know
• 6:31
  how many showings they've had and those kind of things
• 6:34
  and then we're gonna make an educated decision
• 6:35
  based on on what that looks like well
• 6:38
  we're gonna present the options to our sellers
• 6:42
  and they're gonna make the decision
• 6:44
  but there's a lot more you can gain
• 6:46
  by just looking at it
• 6:47
  simply maybe going to check it out
• 6:49
  do a preview or whatever you can do in your market
• 6:52
  and just make sure you're
• 6:53
  you're making a a solid you know
• 6:57
  suggestion to your client
• 6:58
  but ultimately those people will be like
• 7:00
  okay well yeah
• 7:01
  we'll pay this for that house and we're good to go
• 7:03
  and then we can adjust accordingly
• 7:05
  but that could be the domino that breaks loose right
• 7:09
  if we start to understand contingency offers
• 7:11
  and how we can use them
• 7:13
  certainly we can do it and there's ways to leverage it
• 7:16
  right
• 7:16
  use contract timelines to your advantage right now
• 7:19
  right contingent offers don't mean that
• 7:23
  you know loose
• 7:25
  contingencies
• 7:25
  don't mean that they have to have loose terms right
• 7:28
  you could say here's the deal
• 7:29
  your house has to be under contract by 10
• 7:31
  you know
• 7:31
  and within 10 days or the seller can terminate you know
• 7:34
  so on so you can put those things in there
• 7:37
  make sure you're talking to your managing brokers and
• 7:39
  you know when you're adding language to contracts
• 7:41
  and things like that um
• 7:43
  if you can where you're at
• 7:45
  and so there's ways to go about this
• 7:48
  and tighten some of the terms down
• 7:50
  so that the market will act accordingly
• 7:56
  but this may be the best chance
• 7:58
  for your client to get a
• 7:59
  full price offer is to consider these contingencies
• 8:02
  and don't sign a blank check
• 8:04
  don't sign a six week contract
• 8:06
  where you can't market the property because
• 8:08
  you know you're under contract with someone else
• 8:10
  just make sure you're
• 8:11
  protecting your client's best interest huh
• 8:14
  imagine that um
• 8:16
  but as you know as this starts to happen
• 8:20
  you never know how this goes right
• 8:23
  so you have somebody who's willing to pay full price
• 8:25
  they're you know
• 8:26
  gonna lower their price to this
• 8:28
  you've determined it's gonna work and you know
• 8:32
  then you kind of see right
• 8:33
  then you continue to be in communication
• 8:35
  continue to you know
• 8:37
  follow that and track that and you never know
• 8:39
  it could be a perfect solution to get their home sold
• 8:43
  and into this new home that you are trying to sell
• 8:47
  much quicker than sitting on the market
• 8:50
  and just waiting for that perfect
• 8:51
  non contingent buyer to come through
• 8:54
  um so don't write off the contingent offers
• 8:58
  it's a way to you know
• 9:00
  maybe expedite the process
• 9:03
  even though for some
• 9:04
  it seems like it might slow it down
• 9:06
  so just wanted to say stop the contingent offer hate
• 9:10
  uh and if you're out there and you're
• 9:12
  you know trying to get creative
• 9:14
  certainly the
• 9:15
  the idea I referenced earlier is in motion
• 9:18
  and I'll let you guys know how that goes
• 9:19
  so I hope you have a good one
• 9:21
  please like comment subscribe again
• 9:23
  I help agents grow their business
• 9:26
  get creative with things just like this
• 9:28
  so if you need any of that help
• 9:30
  please contact me below book a Realtor Game Plan
• 9:33
  call or give me a call directly
• 9:35
  we'll see you next time bye bye