by Jim the Realtor | May 17, 2020 | Jim's Take on the Market, Listing Agent Practices, Realtor, Realtor Training, Thinking of Selling?, Tips, Advice & Links, Why You Should List With Jim
We’ve touched on two differences that the coronavirus is causing in residential real estate sales; the cumbersome arrangements now required just to see a house for sale, and how wearing masks will help buyers hide their interest in a home.
What else is changing?
The real estate flyers are gone now, and public open houses are heading for extinction too – and the 3D tours are being heralded as a worthy substitute. It’s too bad too, because the industry never fully grasped the biggest benefit of open houses – helping to create urgency in the buyers, especially when the home is fresh on the market.
If you haven’t seen a 3D tour, here’s an example:
https://my.matterport.com/show/?m=pznhRXGpYoS&mls=1
The 3D tours are very crafty, and buyers should love them for offering maximum convenience within minutes – or seconds. Sellers don’t have to leave their house every Sunday afternoon, and agents won’t have to work weekends any more.
What’s wrong with that?
Have you ever seen a perfect house? Me neither.
The 3D tour allows the viewer to scroll around the home at their own pace, which is a plus. But it’s too easy for viewers to give up when they see something unusual or have trouble navigating.
You gotta give the house a chance.
Rather than relying on a thorough walk-around with an agent who is explaining every nuance, the home-buying decisions will be based on fancy imagery on a computer screen.
Won’t the interested parties pursue an in-home visit? Yes, and they are the most likely real buyers.
But it’s the internet viewers who click out too quickly who will miss out – and fewer buyers relying on less information isn’t a positive for home sales. Instead, the sales process gets dumbed down further, and those who support the 3D tours as an adequate substitute for agent advice are contributing to the downfall.
It’s all going that way anyway, but at least you can say you saw it coming!
by Jim the Realtor | May 13, 2020 | Jim's Take on the Market, Realtor, Virus
We noted one sales hazard caused by the virus – the increased difficulty of showing homes.
Want another?
I hate the masks……..all you see is eyeballs.
Have you noticed the differences when around masked people? Reading facial expressions is near impossible, and we’re left with interpreting eyebrows!
Isn’t there less talking too? Which leads to people not listening as intently as well?
According to a study, 55% of any message is generated by face and body. And when verbal and non-verbal communication contradicts, non-verbal is mostly true. You should believe in non-verbal cues.
The face masks enable home buyers to disguise their interest when touring a home, and real salespeople will notice the difference immediately.
For example, agents will attend the showings of their listings by outside agents to size up the buyers. We’re trying to assess whether we can trust these people to make it to the finish line, and their non-verbal communication has been a big determining factor…..until now!
Get Good Help!
by Jim the Realtor | May 12, 2020 | Jim's Take on the Market, Listing Agent Practices, Realtor, Virus |
We should take precautions during the coronavirus era, so let’s inform the buyers and sellers what to expect before showing a house. Here we go:
As you may know, the industry recently received guidance from the California Department of Health and Cal/OSHA (the “Guidance”) regarding the handling of real estate transactions, especially the showing of properties for sale. Pursuant to that guidance, we have created a Compass “Shown Property COVID-19 Prevention Plan,” (the “Plan”) attached below, which is to be used as follows:
1. The Plan is to be posted at the door of every property we show or enter, for each showing or entrance.
2. The Plan is to be forwarded to every person entering the property, including prospective buyers or inspectors, by email prior to the entrance. It should be emailed with the PEAD and the person entering should be required to both sign the PEAD and acknowledge the Plan, promising to comply with its requirements while at the property. Your cover email should state that entry to the property constitutes an agreement to comply with the Plan.
3. The Plan, or a link to the Plan, must be included in all online public and MLS listings of the Property.
Furthermore, the Guidance outlines certain other practices that should be followed at all showings and inspections.
1. Commonly used surfaces, like door and cabinet handles, counter tops, toilet and toilet handles, sinks / faucets, and light switches should be wiped down, preferably by the seller, before and after every visit.
2. Open doors, windows, and ventilation systems prior to each showing to introduce outside air to the property.
3. Open all interior doors and turn on all lights before showings so as to minimize the need for touching.
4. Wipe down any item you get from the seller, such as keys, after each use.
5. Schedule appointments with sufficient time in between to conduct the necessary cleaning.
6. If you provide sanitary wipes, face coverings, gloves, etc., place them at the property’s entrance so they can be used or put on prior to entry.
7. Require each person entering the property to wash their hands with soap and water at the sink closest to the property’s entry prior to touring or inspecting the property.
8. No flyers or paper are to be handed out or left at the property for circulation to prospective buyers.
I hope we don’t get so engrossed with adhering to the rules that we forget about selling the home!
by Jim the Realtor | May 12, 2020 | Coming Soon, Jim's Take on the Market, Listing Agent Practices, Pocket Listings, Realtor |
It has never been made clear to realtors why the Clear Cooperation policy is needed in the first place – or agents didn’t understand or agree with its purpose. The new way to get around the rule is for agents to advertise their coming-soon listings with no address – instead, they just include the neighborhood or tract.
From the wsj.com:
The real-estate industry’s largest trade association, the National Association of Realtors, and two of its affiliates are facing a federal antitrust lawsuit challenging a new rule that effectively bans NAR members from marketing homes privately, or “off-market.”
The lawsuit was filed Monday in the U.S. District Court for the Northern District of California by Top Agent Network, a San Francisco-based, members-only platform for real-estate agents. The suit names as defendants the NAR, the California Association of Realtors and the San Francisco Association of Realtors. It seeks unspecified damages and to reverse NAR’s newly enacted “Clear Cooperation Policy,” which went into effect May 1. The new policy requires NAR members to share their listings through the local multiple listings service rather than shopping them privately to a few contacts, a practice increasingly preferred by wealthy and high-profile sellers. Members who violate the policy face punishment, including fines.
TAN, launched in 2010, is a members-only networking and communication platform for real-estate agents who can show that they are in the top 10% of producers in their geographic area, according to founder David Faudman. Its roughly 10,000 members, who pay between $475 and $675 in annual dues, frequently use the platform to share information about off-market listings, which are for sale but not in the MLS. That function is now against NAR rules, said Mr. Faudman. “We’re concerned that this could put a huge damper on TAN, to the point that it destroys the business,” he said.
Since the Clear Cooperation Policy was enacted, Mr. Faudman said some TAN members—most of whom are also NAR members—have told him they don’t plan to renew their TAN memberships for fear of penalties from NAR. He claims the new policy is an attempt by NAR to quash alternative marketing platforms like his. “It’s quite clear to us that they’re trying to eliminate competition,” he said.
In some markets, like the San Francisco Bay Area, off-MLS listings make up a significant portion of business, agents said. Silicon Valley real-estate agent Billy McNair of Compass said that in any given year, roughly one-third of his sales takes place off-market. Some buyers pay a premium to buy a house that hasn’t yet hit the market.
Link to WSJ Article
by Jim the Realtor | May 7, 2020 | Jim's Take on the Market, Realtor, Sales and Price Check
From the buyer’s perspective – your chances of getting a big discount are about 1% to 2%.
https://www.nar.realtor/research-and-statistics/research-reports/nar-flash-survey-economic-pulse
by Jim the Realtor | Apr 29, 2020 | Coming Soon, Jim's Take on the Market, Pocket Listings, Realtor
The new N.A.R Clear Cooperation Policy takes effect on May 1st.
Next Monday, the CRMLS will begin a Coming-Soon category in the MLS for agents only. The listings can only be in the coming-soon category for 21 days, and no showings are allowed.
But the feature won’t be part of the San Diego MLS.
Realtors in San Diego County are split between one faction that wants to join CRMLS (which is the MLS provider for most of Southern California), and the other association of realtors who wants to be on their own. The compromise was a data-sharing agreement that allows both MLS systems to facilitate agent access to the county-wide inventory. But because the SDAR won’t cooperate, there won’t be a Coming-Soon category developed in the San Diego MLS. But it is coming to the rest of Southern California next week – but for agents only, and no showings so I guess it’s an FYI to the realtor community.
So there won’t be much change to the casual observer in San Diego County.
Multiple agents asked the question, “How can I sell my Coming-Soons if I can’t show them?”, demonstrating how oblivious some realtors are on why the new rule was created in the first place – to stop agents from doing off-market deals, and, instead, share all their listings with every realtor.
I sell yours, and you sell mine!
But realtors do have the option to take the listing as an office exclusive and distribute it among agents within their brokerage for days or weeks before putting it on the open market. It is inevitable that 20% to 30% of our listings will be sold off-market, and they will be the choice properties that don’t need mass exposure to find a buyer.
Why will these off-market deals persist, when NAR is trying to prevent them?
Because the industry looks the other way.
As long as the inventory is tight, agents will be motivated to keep their listings within the club – at least for the first few days or weeks while they get it ready for market. If it sells prior to going onto the MLS, then great – and no risk of getting the corona from all those strangers coming around.
by Jim the Realtor | Apr 26, 2020 | Jim's Take on the Market, Realtor, Showings, Virus |
Showings have steadily improved – here are the percentages off the 2020 weekly average:
April 13: -60.4%
April 19: -41.1%
April 25: -21.7%
It looks like they re-adjust their graph based on the new weekly average.
The top graph shows that on March 28th (the last day of agents being considered non-essential), showings were off about 70% from the weekly 2020 average. Today’s graph only shows the bottom to be at -49% (on April 6th & 12th). So the improvement has actually been better than today’s graph portrays.
Did anyone expect that?
Buyers want to get a jump on the market – plus realtors have to eat.
by Jim the Realtor | Apr 20, 2020 | Jim's Take on the Market, Realtor, Virus, Why You Should List With Jim |
This is where it starts – more buyers are out looking.
Those who have fewer concerns about the Covid-19 and are relatively impressed with the industry’s attempt at safety are going to get a jump on the good listings.
The resistance to the rules is growing too:
by Jim the Realtor | Apr 20, 2020 | Jim's Take on the Market, Realtor, Realtors Talking Shop, Why You Should List With Jim
Hat tip to Rob Dawg for sending in this podcast by a realtor president – an excerpt:
It’s been a strange, and difficult time for us. So, imagine what it’s like if you are trying to buy, or sell a home. Tim Comstock is President of the Ventura County Coastal Association of Realtors, as well as a working Real Estate Agent. He says that if buyers or sellers can wait, they should.
Comstock says about 20% of the homes listed when the crisis started have been taken off the market, but some people still have to move ahead because of factors like a job move or a death in the family.
Comstock says despite the difficulties, some deals are still happening. He admits it isn’t easy.
As for the future, what does the industry expect? Comstock says people will always need housing, but much will depend on whether people keep their jobs, so that they’re in a position to buy in the first place.
Within twenty seconds into this podcast interview, Tim said that buyers and sellers should wait if they don’t have to move, and that he had nine listings currently that he is struggling to sell. This is the guy who is the public face of Ventura County real estate, and the elected leader of the local realtor group.
The listeners are looking to him for guidance, and leadership.
He did them a great disservice.
While we know that being the president of a realtor association is mostly ceremonial, when a crisis develops on your watch, it’s your time to deliver for your people. Agents are counting on you to help them!
This is our Super Bowl, and the ultimate challenge of our career. This is where realtors get to rise up and demonstrate our value as problem solvers – and then provide solutions!
He threw an interception here – time to get back in the game and throw for a touchdown.
He should get back up to the microphone and apologize – maybe he had some bad pizza the night before? Then tell us how realtors can serve their clients, and assist them with moving while we’re in this predicament. It’s what leaders are expected to do.
We may not win every game, but let’s try.
by Jim the Realtor | Apr 17, 2020 | Jim's Take on the Market, Realtor, Realtors Talking Shop
This isn’t what buyers and sellers think. It’s what realtors are thinking that their buyers and sellers are thinking, but we aren’t mind readers so it’s really what realtors think…..who haven’t left their house for a month.
Yes, the markets are showing delays. Sixty percent said their clients are pressing pause for a couple of months. Completely stalled, though? No—they’re simply simmering, responses show. Consumers and the industry are adapting to the changes, awaiting a hopeful return to normalcy.
“Expect second quarter home sales activity to slow down with the broad observance of stay-at-home orders, but sales will pick up when the economy reopens as many potential homebuyers and sellers indicate they’re still in the market or will be in a couple of months,” says NAR Chief Economist Lawrence Yun. “Home prices remain stable as deals continue to happen with the growing use of new technology tools. Remarkably, 10 percent of REALTORS® report the same level or even more business activity now than before the economic lockdown.”
How else are the markets faring? The survey shows 33 percent (a third of REALTORS®) have not experienced closing delays. For those who have reported delays, these road bumps often happen during the financing, appraisal and home inspection portions of the transaction process.
The key to adapting? Technology. To cultivate new client relationships, surveyed respondents say they will leverage live videos (33 percent), social media (59 percent), e-closing tech (42 percent), e-signatures (77 percent), virtual tours (34 percent), messaging apps (38 percent) and WebEx/Zoom (30 percent).
Link to Survey
Many realtors will end up out of the business – look how many are unplugged:
