Mary Pope-Handy's Silicon Valley Real Estate Commentary

How do you break the ice with new clients? Clients, what makes you warm up to your agent?

Sometimes do you ever get the impression that folks you show homes to, or sellers you are meeting with, are somehow actually afraid of you?

All of us have had pushy car sales people experiences. And they really are awful. I'm sad to think that real estate professionals can get lumped in with the same sort of nightmarish fears. Wasn't it Meryl Streep who confessed, "I'm afraid of Realtors" in a recent kids' movie, "A Series of Unfortunate Events"??

When I'm with "new" clients and I want to get them to relax a bit, I sometimes break the ice by telling true, anecdotal stories out of my career (without names, of course). If I can get them to chuckle, a lot of times I can get them to relax, see me as human, and not be terrified of me.  Some of MY outrageous stories are these:

1. Open House Horror: I had volunteered to hold an estate home open (not my listing), sight unseen. Never again! The place was decorated, LITERALLY, with whips and chains and other "interesting" stuff.
   
2. Remove Your Shoes (at your own risk). An eccentric seller wanted our shoes off (not unusual) but hadn't made sure that the dark brown hardwood floors were actually safe to encounter. Her large German Shepherd puppy had made a boo-boo that wasn't found 'til it was stepped in by my buyer.
   
3. No Trespassing, We Mean It!  In one not-so-well-marked area, my buyer client and I were trying to locate a for-sale house where we had an appointment. The sign on the long, steep driveway warned "No Tresspassing!  Alarmed Driveway!"  I told my client that it didn't look welcoming, and I didn't think it was the house. She begged and implored me to go down that driveway. My gut instinct (which I should have listened to) was that this was a bad idea. Sure enough, an alarm blasted and then a scary looking Mountain Man wearing overalls (but no shirt) and salt and pepper long hair and beard going every which way emerged, scowling frightfully, to see who the %$#@ was on his land - rifle in hand!!!
   
4. Please Check Your Answering Machine: I had an appointment to take my buyer (the same one from #2 and #3 above, ironically) to see a hillside home at 11am on a Saturday morning. Actually the showing instructions were "call first, then go" (and use lock box). So I'd phoned at 9am and at 11am, precisely, we were there. Apparently the teenage boy was home alone, woke up late, and didn't check the answering machine. My client and I rang the doorbell and waited. I don't like to surprise people. Then I used the lock box and opened the front door, slowly, and I announced very loudly, "HELLO, REAL ESTATE!!" What happened next we could not have anticipated. A naked teenaged boy, maybe 16 or 17 years old, went dashing past us, covered by a very tiny rug (smaller than a bathmat) that must have been grabbed in a panic. Apparently he was eating chips, watching cartoons, and enjoying lounging around in the buff and sitting in a bean bag chair prior to our intrusion.

And these aren't all of the stories, but normally I don't need to get past more than 3 or 4 to effectively "break the ice".

Folks just have no idea about the inherent dangers (or misadventures) of our profession!!  So it helps a lot to work with someone you trust. It's good to know that sometimes, things happen when you are buying and selling a home.  And it helps a whole lot to keep a sense of humor.

 

This afternoon, I attended a class in web marketing at my real estate board, the SILICON VALLEY ASSOCIATION OF REALTORS, or "SILVAR" for short.  I have had some success with my websites (though not with blogging to date) after reading a bunch and taking some courses on the subject and have worked with a group in my office on internet marketing.

Though I probably knew 90% of what was taught today, I felt that the 10% that was new to me was really helpful. And it was great that the presenter, Chris Alston, does a nice job in front of a live audience. So the time moves along at a good clip. (I have invited him on to Active Rain. I think anyone teaching internet marketing belongs here so we can exchange good info!!)   Chris used material both from the National Assn. of Realtors and from the California Assn of Realtors to present the "highest and best use" of our web resources, time, and money. Information on "the online consumer" was a bit different than I had learned before. In the past, I recalled that web leads tended to incubate over about 18 months. It looks like 2/3 of the internet generated leads today "mature" much faster than that, though. Hard to know if it's a matter of the way the statistics are sliced or if something is changing.

Also he did a good job with the numbers. It's always good to "know your numbers", but Chris distilled them in a very helpful way, breaking down the average conversion ratios. His example was 1704 sellers visiting your site (or your Seller Site) might result in 341 registrations for information, and they might result in 17 appointments that would turn into 14 contracts. I don't recall the study used for this information, but it's helpful. If in the next 12 months I want to get 10 sales from internet sellers, I just have to reverse engineer these numbers and make sure I get the appropriate traffic (and then NOT drop the ball - I need to follow up!). I have taken other web marketing classes and not seen the numbers shared like this. Really helpful.

Oh, I should say a word about the numbers. I know that many of you do a gazillion transactions a year, and it is very humbling to me to see how many deals you put together and see through to the end.  In our area, prices are excruciatingly high (an entry level house is $700,000) and for that reason, every third person has a real estate license and it's simply a saturated field here. In our valley there are 1.8 million people (including kids, of course) and an estimated 12,000 licensees (of which there are 8,000 REALTORS). In the state of California there is one licensee per 52 adults. And in my town of Los Gatos, there are a little under 30,000 people (about 18,000 licensed voters) and 800 agents. The average agent sold 7 homes in 2005 and my best estimate is that the average agent sold 5 homes in 2006 (our market was way off).  Anyway, an agent who sells 10 homes a year here is doing well!! The top 1% sold upwards of 25 homes here last year...but nowhere near the numbers you'd see in most of the US.

Back to internet marketing: Chris did a great job and used powerpoint effectively.  He did not talk about blogging until we were wrapping up and it was raised as a question in the audience.

So if you see Chris, welcome him warmly ... and encourage him to get blogging!!

Sometime's it is just not a fit - for whatever reason, it's better if we don't work with a relative or friend, even if they live very close by. Usually that's not the case, in my experience, but sometimes it is. But whatever the case, whenever it happens, I'd like to help connect that person to the "right" agent.  Often I can match their personality or selling style (some folks need a very calm agent who will take a lot of time and be patient - others need a very aggressive one who will be brief, for example), their special needs (help with staging, someone experienced in working with the elderly), age, experience, or other abilities.

Clients who understand a bit about the real estate business know that if I refer them a great agent, a few things happen: first, I screen and interview and "set the stage". Secondly, for my time, experience and expertise, I do get a referral fee. Amazingly, I have had people I know want me involved and to be compensated - but not so "hands on" that I'm in the transaction. Works for me and I'm grateful that they value my input. It has been a great win-win when it happens.

Sometimes, though, family and friends are either far away, or want less involvement. Then what? I have to admit, I'm protective and I want them to be careful about the hiring process, whether they are buying or selling.  When a relative was buying a home in a faraway state years ago, I suggested that she ask the agent a few questions. "I can't do that, it would be insulting", I was told. <Big sigh.> 

The whole first chapter of my book, "Get The Best Deal When Selling Your Home In Silicon Valley", is about how to hire an agent and questions to ask.  But here are a few key points:

-ask how long the agent's been working in your area
-ask how many transactions the agent has had
-ask about the agent's vacations and days off
-ask if he or she is a REALTOR and not simply a licensee
-ask what fees are charged (and have them explained)
-ask for references (or check out testimonials online at a minimum)
-ask how the agent will help you to buy or sell a home - what's the process like?
-ask what the agency relationship is like (it varies from state to state)
-ask how often your agent will communicate with you, and how (cell, email or?)

Agents, what questions would YOU add to this list?

My biggest concern with my buyer friends is that their agent won't represent them, but instead the seller - and the buyer may never know this. Or that the agent may not dilligently point out construction flaws or other "red flags'.

And with my seller friends, my biggest concern is that the agent may tell the client what he or she wants to hear, instead of what he or she needs to hear (about pricing, condition, etc.)  Sellers too often hire someone who tells them an unrealistic price, thinking that if the agent confirms a high value, it's attainable because of the agent's "enthusiasm".  You can do all the best marketing in the world, but if your price is wrong, the home won't sell. Being honest will cost many agents the listing, and this has happened to me more than a few times. So the better practice is to chose the agent first, and then work on pricing together.

There are a lot of resouces out there to help you to hire a good agent. Your success hinges on a careful selection, so make use of the resouces, whether Realtors you know who can screen for you, or online information that can help you do your research. Don't just pick a warm body at an open house. Your home sale or purchase is too important to not take the hiring process very seriously.

5169-5173 Oxbow Court, San Jose (Cambrian Park)

Fabulous duplex, nicely updated and in great cul-de-sac location, on huge lot, just one block from Los Gatos! It is just a few steps to Union Middle School, Alta Vista Elementary School, and to restaurants and shops at nearby Downing Center. Wonderful tenants want to stay.

MLS # 714087

5169 Oxbow Court