The "Real" Role of a Listing Agent
Your first exposure to a real estate agent was probably when you bought your home. Based on those experiences, you formed a generalized impression about exactly what it is that agents do. When it comes time to sell your house, you probably expect your listing agent to do the same things that your agent did when you were looking to buy a home.
The person who helped you buy your home was a "selling agent" (often referred to as a "buyer's agent"). Selling agents advertise in newspapers, on the internet, and other places, hoping to get buyers to call on the ads. Since over 90% of buyers do not buy the home in the ad, selling agents begin showing other properties to the potential homebuyers.
So sellers want their listing agents to advertise in newspapers and to hold open houses, thinking this is what makes them effective agents. They couldn't be more wrong.
A listing agent's primary job has absolutely nothing to do with finding buyers -- it is to convince all of those selling agents to show your home to their buyers.
That is why there is a "broker preview" or an "office preview" of your home -- including food or other "enticements" that appeal to selling agents. They want the selling agents to "preview" your home so it will be "fresh" in their mind to show potential buyers.
Your listing agent also puts your house in the local Multiple Listing Service and sends flyers to all of the other local office (and their agents) -- telling them about your property. They talk to as many agents as they can about your house.
This is also why you want to price your home properly during that preview period. If you price it too high, the selling agents just laugh and say they'll wait till the price comes down. Of course, by then your house is "old news" and no longer fresh in their mind.
As for all those "open houses" and "ads" you want your agent to run - or else you feel like they aren't doing anything? Those rarely sell your house. Sellers just "think" they do. That is part of why most FSBO's do not successfully sell their homes on their own. They begin with a false impression of what makes a good listing agent effective.
The real value of a listing agent is proper pricing, providing instruction at what you need to do to properly "present" your house, and in marketing -- but not marketing to buyers -- marketing your home to other agents.
Don't Expect Much from an Open House
If you want potential buyers to see your home, the conventional wisdom says hold an open house. Roll out the red carpet, bake the cookies, and post your listing agent at the front door. But recent surveys of real estate agents actually reveal that holding an open house is the least effective technique for selling your home, says The Washington Post.
How ineffective?
A recent nationwide poll of realtors by the National Association of Realtors found that only 7 percent of all home sales were through traditional open houses. Because they know that the time spent at an open house is probably not going to lead to a sale, real estate professionals approach open houses like unpaid baby sitting-if the seller really wants one, they'll do it to appease the client. Ironically, the agent's real motivation might have nothing to do with selling your house at all. 75 percent of the agents in a new study said they use open houses to find new clients. In that study of Texas realtors conducted by Texas A∧M University, realtors also complained about having to stake out the home all day long. Then there's the crime issue. One never knows if a visitor is a bona fide home shopper or a potential thief casing the residence, or worse.
Is it worth holding an Open House?
Yes, if you do it right. The "targeted" open house is for real estate agents or other invited guests only. The restricted approach was endorsed by 59 percent of the agents in the Texas A&M study. You showcase the listing to other brokers, preferably when the house first goes on the market.
If holding a weekly open house is a weak sales technique, then what really works? The agents in the Texas study listed yard signs, the multiple-listing service, and referrals as the top ways to attract buyers. Number four on the list was the Internet. Brokerage firms, agents, and the National Association of Realtors all operate web sites. You can't beat the world wide web for convenience and the massive quantity of listing information that can fit onto a web site.
Before you get someone in the door, the survey suggests the following:
- 1 - Price your home competitively.
- 2 - Decorate so your house "shows" well: consider hiring a decorator who specializes in low-cost home "primping" for real estate sales.
- 3 - Provide comprehensive information, including as much detail as possible about your home's construction and features, and neighborhood information on schools and community services.
- 4 - If your house is energy efficient, be sure to trumpet that virtue along with the annual savings on utilities.
Use the form below to send Lori your MLS listing number or ask any questions. She will reply as soon as possible, please double check your email before submitting. An email will be sent to you confirming you submitted the form correctly.
