Maximizing Multiple Listings

November 6, 2020 by bzawaski

MAXIMIZING MULTIPLE LISTINGS

We’ve come a long way since “The Book” was our tool for sharing the latest listing information from the Multiple Listing Service (RMLS) with our clients. It’s hard to imagine in today’s world with information being at the ready via social media and advancements in internet technology that we once eagerly waited twice monthly for a hard copy publication to be hand delivered so we could share it with Buyers & sellers. Buyer’s eagerly waited for ‘new’ listings that they may not have already become aware of via Open Houses, driving by a sign, or reading a newspaper ad. Seller’s simply wanted to take a look to see that their Home had ‘made the Book’ and how it looked. Despite the speed at which listings are now delivered the common thread that still remains is listings that sell quickly ultimately rely on creative marketing from Brokers who can portray an appealing image to both brokers and potential Buyers alike, via Multiple Listings.

A good social media campaign is essential to getting the word out about your home but, what if the words & images aren’t so flattering? If remarks, images & information aren’t portrayed in a thoughtful manner that creates a positive vision for the viewer then you’ve now put that out to more places than ever but, in a ‘not-so-flattering light. If you were to ask Brokers today who the multiple listing sheet should be marketed towards I would venture to say that most would indicate ‘to potential buyers”. Of course, that’s in part correct however, the multiple listing on your Home has a “Private” remarks section that only Broker’s can see, as well as a “Public” remarks section with certain Confidential Seller information omitted. The more complete answer to that question would be it’s designed to appeal to both, Broker & Buyer alike. In fact, there may well be something said for the multiple listing sheet being weighed more heavily in marketing towards Brokers than buyers. The multiple listing is the place where the Buyer’s Broker obtains all the pertinent information about the property, makes certain judgments about the credibility of that information, and the Broker who prepared it. Ultimately the Buyer’s Broker is the only conduit to the buyer and it’s crucial to set the right tone. If that weren’t enough to create a better understanding of the importance of marketing to other Brokers, keep in mind this is the same place those Brokers derive their first glance at what their potential commission will be.

With all the marketing tools at a Broker’s disposal today, the single most important first impression that is created is the ‘Private’ & ‘Public’ remarks section of the multiple listing sheet. From our perspective in Listing your Home with Investors Trust Realty, we always strive to capture & retain the attention of the Buyer’s Broker via the multiple listing sheet, first & foremost. It still amazes me how often I hear from a Seller I may have contact with that information on their multiple listing is incorrect to a certain degree. What I find to be even more astonishing is how many of those Sellers in turn say they’ve never actually seen the full version of the multiple listing sheet their Broker prepared. The buyer’s initial discovery of a newly listed property may in fact be generated from someplace on the internet however, it will ultimately come down to utilizing the multiple listing sheet when it’s time to write an offer. It’s critical that all documentation is provided to Seller & its uses well communicated, we make certain that’s a top priority at Investors Trust Realty.

In marketing the multiple listing sheet to the Broker we utilize several marketing techniques that are universal to selling, regardless of the product or service being sold. First, we always utilize as much of the allotted drop-down menus for descriptions, amenities, and room dimensions. In regards to the latter, Investors Trust Realty listings are professionally measured by a State Licensed Appraiser…A Quality Appraisal prior to going on the market. In addition to the protection it affords our Seller from potential liability for misrepresentation of inaccurate measurements, it demonstrates credibility to the Buyer’s Broker that everything has been done in order to verify accuracy. The floor plan is attached as a PDF so the Broker can download it. We’ve created another analytic tool to monitor activity as well as an insight as to which Broker may require further contact. A complete multiple listing sheet is a welcoming site for Brokers who looks at numerous listings on a daily basis, it’s part of the process that engages their support towards promoting your Home to their Buyer clients. It’s critical that we at Investors Trust Realty do everything possible to make it easier for the Buyer’s Broker to help us sell your Home to the Buyer, after all, we want that Buyer to be your Buyer as well. In regards to the all-important ‘Private’ remarks section that is intended to appeal to Brokers, we are striving to create a vision in 280 characters that will provide them with enough evidence to take an advocacy stance on your behalf with their Buyer. A couple of things we always adhere to first, project an image that “if you show this listing you won’t be disappointed once you arrive with your clients” and second, do so with the same descriptive language that is directed at the Buyer while not reiterating anything they can easily find someplace else in the listing i.e., mentioning how many bedrooms & baths there are. Every listed property is unique in its own right thus the ‘Story’ we tell about your Home at Investors Trust Realty is tailored towards an audience we envision based upon over 20 years of Marketing Homes. Here are a couple of examples of ‘Private’ remarks on recently sold Listings:

Private Broker Remarks:

“Perfect blend of character from yesteryear coupled with tastefully selected finishes & unparalleled attention to detail is evident throughout this turn of the Century Tudor. Tucked away against a backdrop of gently rolling farmland & just minutes from it all…a rare opportunity.”

…from a 1900-era Tudor on the outskirts of Gresham to this multi-family duplex with development potential in Forest Grove. An entirely different audience to market to.

Private Broker Remarks:

“Painstakingly refurbished with unparalleled attention to detail this side-by-side duplex sits on a meticulously manicured 1/2 acre parcel with potential development possibilities for 8 additional units. No surfaces left untouched on this truly turn-key ready operation”

Marketing your Home to the general public, via RMLS (Realtors Multiple Listing Service) allows us up to 440 characters to ‘tell the Story. In addition, Confidential Seller contact information is not available to the Public, nor are the ‘Private Remarks’. Below are the same two listed sales with Remarks the general public will see. Our goal is the basically tell the same story however, it’s critically important to touch on the Community around the property as it either introduces or confirms to the buyers that this is the right place to be!

Public Remarks Section:

“Nestled away in a tranquil rural setting & just minutes to shopping, freeway access & fine dining this impeccably maintained turn of the Century Tudor has been painstakingly updated with quality finishes & unparalleled attention to detail throughout. Meticulously manicured grounds feature well-appointed natural materials amongst tastefully selected ornamental plants creating a serene setting for those with the most discerning tastes.

Public Remarks Section:

“Situated on a meticulously manicured 1/2 acre parcel with development potential for 8 additional units this side-by-side duplex is just minutes to Pacific University, Parks, shops & Downtown Forest Grove. Painstakingly refurbished with unparalleled attention to detail, no surface has gone untouched. Turn key ready operation coupled with the potential for future development makes this a truly rare opportunity for the astute investor”.

Providing maximum exposure for your Home via social media is a critical component to your success in selling. Once the Buyer and their Broker have collectively decided to make an offer on your Home the real work begins. That includes a feeling-out process to determine not only the accuracy of the information but, the perception of top-level representation & marketing they get from the multiple listing. This foundation we create at Investors Trust Realty allows you to not only get an offer(s) on your Home but, is much more likely than our competitors, to keep your transaction together for a successful closing.

Bob Zawaski

Principal Broker / Owner

Investors Trust Realty

When Your Buying & Selling As-Is

December 23, 2019 by bzawaski

When you Buying or Selling a home the term ‘as-is’ will probably come up. What exactly it means will depend on who is making that interpretation and how that benefits them. Sellers who are steadfast about not doing repairs or multiple offer situations can be determining factors. In either case, it’s important that neither party feels compelled by those factors to do what they ordinarily wouldn’t.

Sellers may want to make it clear in writing that they won’t be participating in making repairs or providing credit allowances. Most sales agreements include as-is provisions & inspection clauses that may already be pre-printed. It’s important to carefully address your desire to sell as-is without eliminating the buyer’s rights to any written representations. State-required Property Disclosures or Federally mandated lead disclosures, in the case of pre-1978 homes, are required. Whether or not a Buyer fully inspects the property or waives that right is something both parties should cautiously approach. It would serve the Sellers’ best interests to allow any potential Buyer the opportunity to fully inspect their property.

In the event, a Buyer chooses to waive that right it should be in writing. Waivers should be based upon the buyer knowingly and voluntarily electing to waive that right. Private parties should seek legal counsel when preparing a sales agreement. Licensed Brokers should avoid altering any pre-printed language to suit Sellers’ wishes to drive home a point without first consulting legal counsel. It’s easier to simply stay within your lane and not make changes to legal terminology already in place.

It’s not always a clear path despite one party or another laying the ground rules. As-is means different things to different people. It’s not uncommon for a Buyer who discovers a “big-ticket item” to take pause. Sewer lines & underground fuel tanks are often met with “I didn’t mean to include that in my as-is offer”. Of course, the Seller is not obligated to change the terms & conditions as originally agreed to. On the other hand, not coming to an agreement may mean the sale won’t close. Sellers should consider their potential liability for dealing with certain issues, despite any previous no repairs stance.

In the case of an abandoned underground fuel tank, there is no statute of limitations. I’ve had this conversation with many Buyers & Sellers over the years and there is plenty of potential liability to go around for passing along this issue. In Oregon, a DEQ (Department of Environmental Quality) Certified contractor is required to report leakage within 48 hours. Sellers must take responsibility but, what about a situation where both parties agree to sell without further testing? The Seller may feel it’s the Buyer’s responsibility going forward. What if the Buyer were to lose the house to foreclosure and disappear? With no statute of limitations, the Government can bypass owners to the next in line, the Seller. The Government will pull out all the stops to locate past owners. Banks who foreclosure are exempt & can sell without the tank being decommissioned thus, truly as-is.

There are lesser issues dollar-wise that a Seller should also consider despite any previous ‘no repair’ stances. Where CO & Smoke alarms are required saying I won’t do it or simply handing them over and saying “You do it” is short-sighted. If that potential buyer simply didn’t get around to installing them and is injured or perishes in a fire there is something to be said for that Sellers’s liability. Even a somewhat minor issue could have negative ramifications down the road thus, counsel from your Broker should always be sought before simply saying no.

In a recent condo sale, we were advised that a dryer duct had dislodged from the roof vent. It may have subsequently contributed to the fungi growth on the sheathing. Ducting from the interior space had been accidentally cut, which too may have been a contributing factor. Might the Association consider the latter as a contributing factor to their fungi issue? Despite the duct being within the Association’s domain consideration was given to simply replacing the entire duct.

In a hot market, Buyers will oftentimes want their offer to stand out. In order to stand out, some will opt to waive their inspection rights. It’s important they’re not given the impression or feel compelled to do so by the Seller or their Broker. As the cost of repairs & maintenance takes its toll Buyers may second guess waiving an inspection. In a Real Estate transaction, all things must be in writing but, they’re only as good as the parties involved. Good verbal communication along with the appropriate written language will protect both parties interests.

Bob Zawaski G.R.I.

Oregon Licensed Principal Broker

Investors Trust Realty

Negotiation Insights – You Can Take It With You

November 12, 2017 by bzawaski

Laying a solid foundation via effective social media and maximizing use & creativity in preparing the multiple listing can easily be neutralized via poorly handling the negotiation of an offer or multiple offers. Investors Trust Realty provides Seller with the most comprehensive planning from our very first meeting thru closing. No two sales are exactly alike however, with hundreds of sold properties over 23 years we’ve probably been there, and done that. Ultimately the final decision is always yours as a Seller however, having all the resources and knowledge behind you makes that a much easier task.

Just as we listen to your concerns & needs as a Seller, we do likewise when negotiating on your behalf in order to maximize the ‘net’ sales price of your Home. Listening is a skill that has served us well, whether it’s negotiating single or multiple offers. One of the many reasons you hire a Broker to either Buy or Sell is to take the emotion out of a large transaction. At Investors Trust Realty we understand there is a human element to every transaction & Brokers are not exempt from such emotions. The vast majority of Brokers want to do the very best for their clients and as a result, may be willing to share helpful information about their buyer clients in order to put their best foot forward. Listening & creating a comfortable environment from which they can sound off is crucial in helping Sellers get the most useful information. With Buyers experiencing multiple offers & rejections at every turn, it’s not uncommon for their Broker to counsel them in a variety of ways that will ‘sweeten’ their offer to a Seller. Conveying this information to the Seller based upon similar scenarios we’ve dealt with previously gives you the opportunity to make the most informed decision possible. Again, as a Seller the final decisions are always yours to make but, one would hope you have all the information required.

It’s certainly okay in a multiple-offer scenario to set a deadline for offers and ask everyone to provide their highest & best. In fact, we have that form in our files for just those occasions. In many situations, it appears that the playing field has been leveled by doing so but, at whose expense? It may be that the buyer who has been previously rejected many times is so beaten down that they simply don’t feel comfortable offering in what seems to be another failed attempt. It could also be that the prevailing offer was made by someone who simply wanted to ‘win’ out of desperation and either has buyer’s remorse shortly thereafter or attempts to gain it back during inspection negotiations. In either case, it could leave a Seller back at square one with their Broker explaining away a recent sale failure. Of course, this may not be the outcome in a majority of those types of offer situations however, at least knowing about options can be helpful to your bottom line.

On more occasions than I can recall, I’ve encountered Listing Broker who are overwhelmed in a multiple offer scenario and are doing little to covey any counsel to their Seller, other than sending them offers and pointing out where to locate the sales price on page 1. When inquiring about what needs their Sellers may have it’s not uncommon to hear “You know I can’t tell you anything, it wouldn’t be fair”. In reality, it’s the Listing Broker’s Fiduciary responsibility to the Seller to get as much for your property as possible thus, you may choose to deal with a particular offer that may have some terms & conditions to your liking. Whether or not a Seller decides to rely on an experienced Broker’s insight or simply let the chips fall where they may, having that choice is only possible with the guidance of an experienced Broker such as Investors Trust Realty.

Cooperation between Brokers should always be sought after as it benefits a Buyer in purchasing and the Seller in selling. This can certainly be accomplished in a way that benefits both parties in meeting their goals thus, cooperation with verification of facts is the preference. The number of multiple & single offer scenarios wherein buyers has walked away or been outright rejected, only to find they would have paid at least that much or more, is much higher than one might think. Marketing your Home to ensure it not only stands out but, has a desirability factor that creates buyer excitement is key. It’s our goal at Investors Trust Realty to make certain you never wonder whether or not you’ve left anything ‘on the table’.

Bob Zawaski

Principal Broker / Owner

Investors Trust Realty

Selling Your Home and Buying Another

November 10, 2017 by bzawaski

Selling your Home and buying another can be a challenge, especially in a market with an inventory of just 2.3 months (the amount of time it would take to deplete all listings if no new listings were added) as is the case here in the Portland, OR metro area. Inventory below 6 months is indicative of an appreciating market thus, 2.3 would suggest it’s a Seller’s market. Despite very little change in inventory from the last time I blogged on this issue (September of 2015 when it was 1.9 months) in Transitioning Between Houses we’ve come a long way in bringing back the simultaneous closing of one house to another that was commonplace a decade ago.

Transitioning Between Houses

As is the case with the Stock market where sentiment towards the events of the day shapes its ups & downs, Real Estate is not solely reliant upon Buyers & sellers simply taking statistical market data at face value. The slight gain in inventory we’ve seen in September of 2017 versus that of 2015 would suggest we should be going at roughly the same level of appreciation yet, we’re clearly not. The typical slowing down of the market that we see mid-summer seemingly came as no secret to buyers this past year thus, their sentiment was heard loud & clear. Price reductions, discounts, and repair negotiations became more commonplace than in the last two years. That’s not to say that we’re headed in a rapid decline but, perhaps a correction of sorts after a couple of years that saw Portland as one of the leading major metropolitan areas in appreciation. Does this mean the Seller will be more receptive to Contingent offers? Perhaps in some cases, they will but, there have been some changes on the lending side of the equation that may give hope to those who have little or no reservations about selling their home but, wonder if they can find a replacement home when they become buyers themselves.

The stumbling blocks to bridging the gap have typically included expensive Bridge loans or a refinance with all the costs & fees in order to rid the borrower of the ‘temporary’ financing utilized in order to circumvent buying in a Seller’s market. Whether we are still in a Seller’s market or witnessing a correction remains to be seen but, certain lenders have created products in response to the needs of today’s borrowers. According to the National Association of REALTORS, 68% of buyers are buying a home at least for the second time thus, one would assume many of them have a home to sell. Although much more than a stop-gap measure, Guild Mortgage lender John Bruce has successfully linked several of my clients with the Guild 1% Down program as an alternative to those who might be cash-strapped yet, want to purchase their next home in advance of selling their own. With market rates and competitive Mortgage Insurance the borrower truly has an option that includes keeping this loan in place as opposed to viewing it as an expensive temporary measure such as a bridge loan or traditional refinance. In addition, a recast or virtually cost-free version of a traditional refinance after purchase allows those whose qualifying numbers might be too tight, and/or whose cash for a down payment is problematic, without selling first. Of course, flexibility in underwriting has also created opportunities for borrowers where none may have existed just a couple of years prior.

Having the resources available from the lending side, as well as a thumb on the pulse of the market from the Broker’s side are what we bring to our clients at Investors Trust Realty.