Selling real estate has evolved over the years. About 15 to 20 years ago, it was a completely different environment. The MLS used to print out a physical book and mail it out to all the Realtors in the area. This was the old-school, low-tech way to buy and sell real estate. Unfortunately, some agents are still behind the times; they perpetuate myths that in today’s real estate environment simply don’t hold any water. Today, my goal is to debunk the following myths:

1. Open houses sell houses. In a survey among top Realtors in the United States, most agree that less than 2% of open houses sold the home that was held open. They also agreed that the majority of buyers that walked through the property weren’t actual buyers.
2. Classified-style ads will sell your house. These include newspaper ads, the pennysaver, or Dream Home Magazine. None of these types of ads will sell your house in today’s real estate environment.
3. The Realtor caravan will sell your home. This is another very low-tech way of sell real estate. It consists of getting a bunch of Realtors together to pitch your property. Then, they all drive by and walk through the homes. The fact of the matter is that over 90% of buyers shop for homes online.
4. Flyers will sell your home. Buyers will know whether they want to purchase your home within minutes, and flyers only give them more reasons to discount it.
5. The international buyers list will sell your home. This is a list of buyers from all over the world who are looking to purchase a home in the United States. The reality is that these buyers are no different than regular buyers, with the exception that they may be held to more restrictions.
6. The MLS will sell your house. Simply putting your home on the MLS is not going to get your home sold. The expired list is made up of homes that failed to sell on this very service. You need more than a basic online listing to get selling results!
7. There is an all-cash buyer out there looking to buy your home. Some people actually think that poor marketing and listing the home as-is will attract some magical all-cash buyer who will pay top dollar for your home. This one doesn’t even need to be debunked because it’s so unbelievable in the first place!

If you have questions about what techniques actually do sell homes, please don’t hesitate to reach out to us. We would love to help you with any and all of your real estate needs.

 

 

This week, I’m talking to you about negotiations. When you follow the King marketing plan, you gain an aggressive strategy. You might be asking yourself, “What is the best way to handle offers to earn the highest and best sales price?”

I’d like to break down an important component of negotiation called BATNA. The acronym stands for the Best Alternative To a Negotiated Agreement. Understanding your strengths and weaknesses prior to entering a negotiation can significantly better your strategy. The party with the best alternative will almost always have the strongest foothold in the negotiation.

If you’re the buyer, find another, similar house you like just as much as the other or maybe even more. This will be your backup if your first option doesn’t work out. It gives you freedom in a transaction to walk away, which increases your negotiating power.
 

If you’re a seller, find the better buyer who will pay what you want or more. If the seller only has one buyer, and they find another home they like better, the buyer will ask for a discount, request extensive repairs, and even beat down the appraisal. The seller’s best defense includes additional buyers, even if it’s just one, within a single transaction.

The seller then can explain to a more demanding buyer that they have other offers to explore. You have more negotiating power if you can walk away from an offer. When social influence plays a role with other buyers wanting to buy your home, this will keep your current buyer more committed to the transaction within closing time and budget. Always have several buyers and back-up offers to score the best deal. If a current deal in escrow falls apart, you have other options to explore already.

Understanding your BATNA before negotiating can help you build your strategy and give you an advantage in the San Diego marketplace. If you’re thinking about buying or selling a home locally, contact me by phone or email. I am happy to serve your local real estate needs!