No one knows better than buyers how different and sometimes incredibly unique each home can be.  After months of filtering through the MLS online listings and then arriving in Sequim or Port Angeles to look at homes with their buyer’s agent, a buyer gets first hand experience with the various architectural styles of homes for sale.  We don’t have tract housing here with cracker box homes all lined up in a subdivision where the only way to tell which house is yours is to look for a familiar car in the driveway.  We do have a variety of custom home designs, standard house plans, and truly unique homes that have been designed by homeowners themselves or have been remodeled or have rooms added.

Homeowners that have a home built or who remodel or have built an addition onto their home do not always consider the resale effect of their design.  When it comes time to sell your home, if your home is not in the bell curve of homes that buyers want, you will find your home on the market longer, it may sell for less than more standard house plans, and if it is unique enough, you may not find a buyer at any price.  This is no exaggeration.  There are homes for sale in Clallam County that have not sold after two years or more on the market.  Some of these homes have been listed for sale, expired, re-listed, and withdrawn as sellers reach their emotional exhaustion threshold.

But here’s an interesting irony.  Some homeowners who have a truly unique home that is not within the bell curve of 67% of homes that appeal to the majority of buyers, will often be so emotionally attached to their homes and so individually identified with unique features suitable only for their personalities and lifestyles, that they will often add a premium value to their homes.  This homeowner will support their notion of value with esoteric arguments that make sense in their mind but make little or no sense to prospective buyers.  In other words, a minority of homeowners cannot be objective about the value of their homes.  How do I know this?  Buyers teach me a lot of things, and this is a common lesson buyers teach me regularly.

When it comes to the fair market value of a home, intelligent buyers who have been doing their due diligence to search for a home are most often better qualified to identify the fair market value of a home than the homeowners.  I have seen this to be true again and again and again.  Sellers are not typically doing all the homework that buyers are doing.  Buyers have looked at and compared literally hundreds of homes online, examining the features, the photographs, the locations, and the prices, and these buyers also walk through the homes they have identified as the best values.  A buyer may walk through dozens of homes, still doing careful comparisons of all features, locations, and prices.  Sellers rarely, if ever, do all of this due diligence.  Buyers are usually more knowledgeable about the fair market value of a home than the homeowner.  After 30 years in the real estate business, I have seen a lot of evidence that this is true.

Buyers will either buy a home or not, and if they do, it is because they came to a resolution in their minds regarding the value of the home they decided to buy.  Sellers will either sell their homes or not, and if they don’t it is often because they came to a resolution in their minds regarding value, but they were wrong and buyers refused to pay that price.  But there is more to the story.  I have had buyers tell me that a house is “just wrong,” and at any price they would not buy it.  A house has to be right for a buyer to consider living in it, and this is where extreme uniqueness can make a home wrong for the vast majority of buyers, or all buyers.

Sometimes it is hard to think objectively about our homes or to step outside ourselves and see through the eyes of a buyer.  The seller who cannot do that may simply be stuck with their home . . . forever.  That’s a long time.

Possibly Related Posts:

• Selling a Home in Sequim is More Than the MLS
• Selling Your Home Fast, Slow, or Never
• Sequim Homes Listed for Sale: Marketing Techniques
• Selling Your Home – Words Matter
• Advertising Real Estate For Sale – New Methods

Selling a home in Sequim requires much more than just listing it in the Sequim MLS, whether that is the Olympic Listing Service or the Northwest MLS, or both.  It used to be a Realtor could just put his listings in the MLS and run a little ad in the Sunday paper once or twice for each home, and that was marketing real estate.  Wow, things have really changed since then.

Selling a home in Sequim or Port Angeles, or anywhere in the country for that matter, is not what it used to be.  It has dramatically changed in recent years.  I’m not talking about  changes in the economy, the mortgage debacle, or the state of the real estate market.  I’m talking about the marketing and advertising of real estate for sale.  The way buyers and sellers are connecting has taken a leap into the future, although I admit that leap was more like a frog in a pot of water slowly getting warmer until finally we have reached a steady boil.  There is no precise point in time when this dramatic change took place, but it certainly has.  As far as marketing real estate is concerned, I think it is fair to say the future is here.

Most real estate brokers and agents around the country are still operating with a 20-year old business model.  They are relying on what used to work, what they’ve done for 20 years, and it made them some pretty good money for a long time.  But today brick and mortar buildings, impressive conference rooms, billboards, multiple page advertisements in the real estate magazines and massive advertising in print newspapers almost go unnoticed by the astute buyer who knows how to do his due diligence to shop for a home.  This discerning buyer knows how to research and find a competent and trustworthy Realtor.  This buyer is not fooled by gimmicks or “loud advertising.”  Today print advertising plays a small role in capturing buyers’ attention.

USA Today had a great article on August 8, 2008 in the Money section, entitled, “Faster, higher, stronger – and digital.”

Marketing around the Olympics used to be like a 100-meter cakewalk.  You’d pay a gazillion dollars to the International Olympic Committee, then pay a gazillion more to brag like heck about it on TV and in print ads.  That was then.  This is now:  Add on a multi-pronged digital ad strategy that feeds on megabuzz.  It must touch all the hot buttons from the hippest social-networking sites to the coolest blogs to the cellphones of those most coveted by marketers – trendsetters 18 to 26.

Technology, the digital age, and the Internet, have changed the rules of the game  for selling a home in Sequim or Port Angeles.  Of course most buyers and sellers are not 18 to 26, but even people in their 70’s are using the Internet for email, for shopping, and for research on buying and selling real estate.

Selling a home in Sequim requires much more than simply listing it in the MLS and running an ad.  Effective marketing today will include an Internet strategy that has more power than any local newspaper.  That’s especially true for Sequim since most of our buyers are coming from out of state.  Of course, there are principles of advertising that will always be true.  There are principles of sales and the effective use of words and images that a professional learns to use.  But the medium and the techniques of selling a home in Sequim have changed.

Does your Realtor comprehend these changes and this new frontier?  What is your comprehensive plan to market and sell your home?

Possibly Related Posts:

• Homes for Sale – They Come in All Sizes and Shapes
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• Sequim Homes Listed for Sale: Marketing Techniques
• Selling Your Home – Words Matter
• Advertising Real Estate For Sale – New Methods

Today we entertain another question from our Sequim and Port Angeles readers in our continuing series of Q&A with retired real estate attorney, author, and now real estate broker Chuck Marunde.   Chuck is the Broker of Sequim & Port Angeles Real Estate, LLC.

Question:   Does it matter who I list my home with?   Any Realtor can earn 1/2 the commission by selling it, so all Realtors are motivated to sell my home.   Right?

Answer:   The answers are “yes” and “no.”   Here’s an explanation.

It’s true that a Realtor who sells another Realtor’s listing can earn a commission, but there’s more to the story.   If you are selling your home, understanding how this works is critical if you hope to sell your home within a reasonable period of time.   The other two options are selling your home slowly or never.   I don’t have to prove to anyone that many listings are in the slow mode or haven’t sold after 276 days or 362 days on   the market.   There are many possible reasons why a listing hasn’t sold, but the focus of this answer is on the pool of Realtors out here selling.   Are Realtors equally motivated to sell listings, regardless of who listed it?   (more…)

Possibly Related Posts:

• Homes for Sale – They Come in All Sizes and Shapes
• Selling a Home in Sequim is More Than the MLS
• Sequim Homes Listed for Sale: Marketing Techniques
• Selling Your Home – Words Matter
• Advertising Real Estate For Sale – New Methods

Sequim FSBO’s or expired listings, if you are selling a Sequim home or a Port Angeles home, you will want to know what is NOT working.   Most people know print newspapers have not been working well, but there is much more to the story.   Watch this video to pick up on what does not sell homes right now.

Possibly Related Posts:

• Homes for Sale – They Come in All Sizes and Shapes
• Selling a Home in Sequim is More Than the MLS
• Selling Your Home Fast, Slow, or Never
• Selling Your Home – Words Matter
• Advertising Real Estate For Sale – New Methods

Words matter. Wars have started with words. Now there is proof that some words help sell a home faster. A National Bureau of Economic Research study in Canada dissected the wording of more than 20,000 Canadian home listings from 1997 to 2000.   Top salesman know that the words they use in their ad copy is very important.   Words are not everything, but they are more than most people realize, especially in a slow market.

Words, titles, captions, and descriptions can either cause a buyer to pause and consider your listing amidst the thousands of listings, and perhaps schedule a showing.   If you don’t connect with a buyer initially, if you don’t capture their attention, if they don’t ever see it, you don’t sell your home.

Homes described as “beautiful” moved 15 percent faster and for 5 percent more in price than the benchmark. “Good-value” homes sold for 5 percent less than average. Another finding in Anglin’s study was that the plea of “must see!” was received about as enthusiastically as a dinner-time telemarketing call. Using “must see” had a statistically insignificant effect on the number of days homes took to sell.

Words that help sell a home:

Handyman special
Curb appeal
Move-in condition
Landscaping
Granite
Gourmet
Golf

Words that hurt:

Motivated seller
Good value
As-is
Clean
Quiet
New paint

Listings where “landscaping” was heralded sold 20 percent faster, and homes in “move-in condition” took 12 percent less time to sell than the benchmark, although the study showed that “move-in condition” had an insignificant effect on the sales price. Descriptions of houses that indicated an obvious problem — such as “foreclosure,” “as-is” and “handyman special” — drew substantially lower sale prices. Words that suggested desirable attributes — “granite,” “maple,” “gourmet” — translated into a higher sale price, the study found. One problem discovered was that “superficially positive” words that, in effect, damn with faint praise — such as “clean” or “quiet” — had zero or even a negative correlation with prices.

Words are not everything, but they are vital elements of a successful campaign that either captures the attention of a potential buyer, or not.   I’ve written elsewhere about how critically important good photographs are as visual aides to get a buyer on your property.   I’ve also written about how important it is to have your photographs and sales copy in the right places, where buyers are actually looking.   How and where you advertise your home for sale not only makes the difference between selling a home or not selling a home in a slow market, it also determines how much money you ultimately get at the closing table.

Quotes from another great Seattle Times Article.

Possibly Related Posts:

• Homes for Sale – They Come in All Sizes and Shapes
• Selling a Home in Sequim is More Than the MLS
• Selling Your Home Fast, Slow, or Never
• Sequim Homes Listed for Sale: Marketing Techniques
• Advertising Real Estate For Sale – New Methods

Selling real estate in Clallam County, or anywhere in the country for that matter, is not what it used to be.   It has dramatically changed in recent years.   I’m not talking about the economy, the mortgage debacle, or the state of the real estate market.   I’m thinking about the marketing and advertising of real estate for sale.   The way buyers and sellers are connecting has taken a leap into the future, although I admit that leap was more like a frog in a pot of water slowly getting warmer.   There is no precise point in time when this dramatic change took place, but it certainly has.

Most real estate brokers and agents around the country are still in the dark, but when the light does go on, it is like shining a flashlight into a dark room.   Light shining into darkness reveals the truth.     When you discover something, you suddenly begin to see proof of it everywhere, even though you’ve never   noticed it before.   I recently purchased a Chrysler New Yorker that is in nearly perfect condition.   Before I bought it, I never noticed New Yorkers on the highway.   Now that I drive one, I see New Yorkers everywhere.   Funny how that works, isn’t it?

USA Today had a great article on August 8, 2008 in the Money section, entitled, “Faster, higher, stronger – and digital.”

“Marketing around the Olympics used to be like a 100-meter cakewalk.   You’d pay a gazillion dollars to the International Olympic Committee, then pay a gazillion more to brag like heck about it on TV and in print ads.   That was then.   This is now:   Add on a multi-pronged digital ad strategy that feeds on megabuzz.   It must touch all the hot buttons from the hippest social-networking sites to the coolest blogs to the cellphones of those most coveted by marketers – trendsetters 18 to 26.”

Technology, the digital age, and the Internet, have changed the rules of the game in real estate, too.   Of course most buyers and sellers are not 18 to 26, but even people in their 70’s are using the Internet for email, for shopping, and for research on buying and selling real estate.

Now that you’ve taken a ride in my Chrysler New Yorker, take a look at the scenary every day around you.   I think you’ll begin to see how dramatically technology is changing everything.   The new is in.   The old is fading.   This reality is important for buyers and sellers of homes and land, but it is especially significant in this slow market.   No, it’s not just important–it’s critical!

Possibly Related Posts:

• Homes for Sale – They Come in All Sizes and Shapes
• Selling a Home in Sequim is More Than the MLS
• Selling Your Home Fast, Slow, or Never
• Sequim Homes Listed for Sale: Marketing Techniques
• Selling Your Home – Words Matter

If you’re selling a home in Sequim or Port Angeles, effectively advertising your home is critical to success.   I find it fascinating that so little is known about traditional advertising and it’s effectiveness, or ineffectivenss.   It’s one of those huge subjects that is hardly given any attention.   I have written several articles addressing this topic, but there’s an interesting little blog post written by a Realtor.   I can’t   link to his post here, because it is part of a “Members Only” section for professional Realtors.   Here are a few snippets from his post and the comments:

(more…)

Possibly Related Posts:

• Homes for Sale – They Come in All Sizes and Shapes
• Selling a Home in Sequim is More Than the MLS
• Selling Your Home Fast, Slow, or Never
• Sequim Homes Listed for Sale: Marketing Techniques
• Selling Your Home – Words Matter

When a home is on the market for a long time and it still has not sold, a homeowner might legitimately ask his agent, or himself if he is a FSBO (for sale by owner), do I need to reduce my price? Have I overpriced my home?

In my experience, whenever the DOM (days on market) exceed 90 days, and especially when the DOM approaches 200, the first question everyone focuses on is the price. “Oh, it must be priced too high. Let’s drop it and try to get some attention that way.”

An overpriced listing is like death to a serious home seller, but sometimes the reason a home hasn’t sold has nothing to do with the current price. Elsewhere, I’ve written about the danger of overpricing, and that should be a consideration, but there is a huge factor that may be far more important in “getting attention” from prospective buyers.

How well is your home being marketed? Is your marketing plan reaching buyers (wherever they may be) in this price range and for your area and for the floor plan and features of your home? If your marketing is ineffective, the price is not why your home has not sold. It’s because buyers are not even aware of your home.

Anyone who reads my blog articles knows that one of my pet peeves is ineffective marketing of homes. So many FSBO’s and so many practicing real estate agents think that simply putting a house in the MLS and in some local newspaper ads is all there is to this marketing business. Some think they have the secret key, because they’ve placed a few haphazard ads on the Internet. There’s so much more to marketing and placement. There’s so much more to knowing how to reach prospects on the Internet.

Why does a marketing expert like Jay Abraham get paid as much as $1 million dollars to draft one letter for major retailers? Because they can make an extra $200 million dollars in sales. Well, why not save all that money and simply pay a Boeing engineer to write a letter, or a retired sporting goods store owner, or a waitress? Because they don’t know how. Period. It doesn’t matter if they think they know, they don’t. That’s why Jay Abraham can charge so much. Because he produces results.

A homeowner may think they know about marketing. A real estate agent might present themselves as an expert who can sell someones’s home. If they are wrong and don’t know, who pays the price? The homeowner who is stuck with a house that hasn’t sold. A Boeing engineer may be very smart about engineering, a retired sporting goods store owner may have been very successful in his business, and a waitress may be phenomenal, but are they marketing experts in selling their own homes in this market? Probably not. I’m sure they would admit that. [They might say, "I just want to give it a try." Red flag. Maybe I'll write about how listings go stale once they're overpriced, and no one comes back.]

I recently listed an incredible home with an unbelievable view of International waters. It was listed by another agent, but nothing happened for six months. So my client asked me, “Do I need to reduce the price.” My answer was a probing question, “Was your house effectively marketed to your potential buyers?” His answer was a quick, “No.” He knew it wasn’t. My response, “Then we don’t know if we need to reduce the price yet. First we market, then we adjust price if those buyers are telling us the price is too high.”

If you had a home listed at $425,000, but it was not effectively being exposed to prospective buyers, you could drop the price to $400,000, and still you would have no activity, except tire kickers. You could drop the price 6 months later to $387,000, and still you would have no offers. How much money are you willing to lose until you actually sell it to someone who is just looking for a steal. It isn’t always about price.

Selling your home is effective marketing plus a reasonable listing price. Effective marketing is not for the inexperienced. The difference between good marketing and poor marketing is 60 DOM or 324 DOM. It gets even better than that. The house that is on the market for a long time before it sells will also get a lesser price than the same house sold in 60 days with good marketing.

In today’s real estate market, effective marketing is more important than ever. Either you, as the homeowner, must become an expert in marketing in all its facets if you are to sell your home in a reasonable period of time for the highest price, or you should be darn sure your Realtor is a true expert. Do you know how to discern the difference between a Realtor who is and who is not? [Hint: just because their lips are moving doesn't mean they are saying something that will help you sell your home.]

If you’re selling your home soon, be careful. It’s dangerous out there. There are many Traps for the Unwary, and a poor marketing plan is one of those traps.

Possibly Related Posts:

• Homes for Sale – They Come in All Sizes and Shapes
• Listing Prices, Appraisals and Home Improvements
• FSBO asks Should I List My House Above FMV
• Selling a Home in Sequim is More Than the MLS
• Selling FSBO Huge Disadvantage

How Important Are Photographs?
(Photo to left is an example of a great photo. Click on photo to see detail.)

Chuck Marunde, J.D.
Broker/Owner
Sequim & Port Angeles Real Estate
Port Angeles, Washington
chuckmarunde@gmail.com

Possibly Related Posts:

• Homes for Sale – They Come in All Sizes and Shapes
• Selling a Home in Sequim is More Than the MLS
• Selling Your Home Fast, Slow, or Never
• Sequim Homes Listed for Sale: Marketing Techniques
• Selling Your Home – Words Matter