Lab Tested Real Estate

05/14/2024

09/02/2022

This Before and After is a great example of why we need to be able to see beyond the clutter.

I love this example because it's a house I'd been in several times without ever realizing how cool it was. (My friend's birthday is in February, so we were only ever there on dark winter evenings for his birthday party.)

When we got the call to evaluate it for a listing, all I could remember was that it had felt like it was full of... stuff.

Which it was. But when we arrived in Real Estate Mindset we quickly saw that it's a great house with an awesome floor plan. It just needed some vision!

There's Mike in the Before photo, visualizing. 🙂

TIPS ON HOW WE GOT THE 'AFTER' VERSION:

** New carpet.
Sellers were unsure at first, but once the new carpet was in they couldn't believe the difference. A great example of $2500 netting the seller far, far more in the sale price.

** Framed the setting around the fireplace, for a welcoming, cozy feel.

** Added a color spot in the foreground with the orange chair.

** Used glass coffee and side tables to increase the feeling of space in the room.

** Used semi-modern style living room furniture that's a bit elevated (not flush to the floor). This allows more floor to be seen and makes the room look bigger.

** Professional photography using an angle that shows the fireplace and highlights the large windows and natural scenery outside.

SOME THINGS WE MIGHT DO NOW:

** Add a metal art piece above the fireplace, ideally gold to match the insert door trim.

** Colored pillows on the couches would introduce a little more pop in the picture, as long as they weren't overwhelming.

09/02/2022

📣 New agents are constantly being told what to say to clients, but it's equally important to know what *NOT* to say.

Here are 5 examples of traditional language that misses the mark (and suggestions for what to say instead).

1. DON'T say "Sit down together" when you're inviting a prospect to a meeting or consultation.

Think about what they really want. They want a lot of things, but not one of those things is to "sit down".

So DO say: "find a time to get together".

The point is to speak our client's language and not use words that - for some of us - can spark a latent feeling of claustrophobia.

(No, I do not want to sit down. Please excuse me while I crawl through this open window.) 🙂

2. DON'T say "How much can you afford?"

DO say "What price range would you like to stay within?"

3. DON'T say "Homework" when you're providing clients with paperwork to review or setting them up to get financial information to the lender.

Yes, I know everyone says it. But to a lot of people it comes off as condescending. Our clients already have a life full of demands on their time and energy, so being assigned "homework" by someone they've hired is not a plus.

So DO say "information to review that will be helpful", or whatever version of this suits your situation.

4. DON'T say "I'm hearing..."

DO say "It sounds like..."

This is straight from the book "Never Split the Difference" by Christopher Voss. He explains that when people hear "I" they get defensive. "It sounds like" is much more neutral.

5. DON'T say "Teach you".

DO say "Share with you".

These are all seemingly small things, but small things accumulate and eventually turn into critical mass.

That could easily mean one client won or lost, and we all know that in real estate one client can turn into 20 more via the power of referrals.

So let's keep our language working FOR us, not against us. 🙂

07/28/2022

Here's a list of books for new agents that might surprise you.

Why are they crucial to read early on?

Well, the mantra you hear time and time again as a new agent is "Fake it 'til you make it", right?

OK, some things do have to be figured out "in the field". But you can blast 🚀 through your learning curve faster by teaching yourself key negotiating, marketing, and personal productivity strategies ahead of time.

And here's where you actually have the jump on more experienced agents:

Most of us never got taught these things at all.

Just being "in the biz" for 20 years doesn't make someone a good negotiator, it just makes them think they are.

So you, new agent, actively seeking out this info because you KNOW you need it... you have an advantage!

(And if you're like me - just finding some of these books after 10 or 20 years - well, big thumbs up to us warhorses too.) 🏇

OK, the list.

1️⃣ Secrets of Power Negotiation, by Roger Dawson.

You may not use all the "gambits" in this book, but if you can't recognize them they'll likely be used on you at some point.

Pro: Short, practical chapters on gambits and pressure points.

Con: A bit of a penny-pincher mentality. Jim Rohn says it's fine to pay what something is worth, and I agree.

2️⃣ The 1-Page Marketing Plan, by Allan Dib.

Pro: Compiles into one book the key concepts for a practical marketing plan. Like five books in one.

Con: Some references are a bit outdated. (Concepts still apply.)

3️⃣ Atomic Habits, by James Clear

Pro: Very good for helping people figure out why they may be struggling to achieve goals.

Tip: It's easy to think "That makes total sense!" and then walk away. I recommend multiple reads or listens.

4️⃣ Never Split the Difference, by Christopher Voss

Pro: Excellent negotiating advice, including words to NOT use. I highly recommend listening on Audible due to teachings on voice modulation.

Tip: So much info that you need to take notes and study to internalize it.

5️⃣ Yes!, by Robert B. Cialdini

Pro: Short chapters on practical concepts with actionable examples.

Tip: Easy to think "Great tips!" and then walk away for 5 years. Start with one idea and implement it.

07/28/2022

Even small spaces can add up to big value 💰 when you're preparing a home for sale.

That's why even though it seems like a minor touch, it was important to stage this little nook near a backyard door as a tiny office space (even though it was a struggle to find items that fit nicely enough to not look stuffed in there.)

The 'before' photo shows some... storage space? Maybe a place you'd throw a few brooms or bags of dog food.

The 'after' photo demonstrates a lot more functionality and looks like a place that might even be nice to spend some time in (higher value).

Especially when a home is quite small, like this one was, it's crucial to make valuable use of every bit of usable space.

TIPS:

Turning the chair at an angle stops the back of the chair from blocking a big part of the field of view, which would have made the space looked more cramped.

Taking the photo with the back door partly open incorporates the color, depth and vibe of the yard.

(In other words, we're borrowing from an area that has a lot to offer in order to supplement a small space that, even after staging, has limitations.)

I think that, especially for new agents, it can be easy to believe that staging is only for homes that are already high end and glamorous, but the concept of maximizing the value of every square foot of space is at least as important in smaller, more standard homes.

And when it comes to the small spaces in those smaller, more standard homes, even those can sometimes have a lot of potential.

They all add up and contribute to an increase in perceived value that translates to the final sale price.

07/27/2022

I love this example of why staging a vacant home communicates so much more value to a potential buyer. ✨

This was a nice newer townhome that would have photographed "fine" if we had just tidied it up and brought in a professional photographer to take pictures of it vacant...

But what a difference some good furniture and decor make!

Good staging highlights the home's most desirable features, increases perceived value, and ultimately gains the seller a better sale price.

STEPS:

- Wall color was already a good warm neutral. When we need to change wall color we often recommend Sherwin Williams Softer Tan or Kilim Beige in EgShel. (Yes, that's how it's spelled!) 🤔

(If walls need to be a greige tone we love SW Agreeable Gray.)

- We used a relatively modern furniture style with clean lines.

- The red chair provides a color pop and its style helps the room look larger because you can see the floor beneath it.

- The colored pillow on the chair in the foreground provides visual interest. Without it the seat of that chair would appear really large and monotone.

- The angle and the pro-grade photography means the natural view outside the tall windows is accentuated.

- The standing light in the corner is not dramatic, but if it weren't there that area would be missing something.

- Pro photographer added fire in the fireplace.

The seller was very happy with this transformation!

07/27/2022

Here's a great way to start getting more real estate referrals immediately.

This may be hard to believe, but...

It requires hardly any effort.
It doesn't cost anything (as in, totally free).
Within 5 minutes of reading this post you can have it up and running.

This is honestly one of the first things I tell any new agent to do when they start in real estate (and if you're a long-timer today's a great day to start putting it to work for you too).

Here it is:

👉 Use your voicemail greeting to ask callers for referrals. 👈

I'll explain exactly how, but first - why does this work?

1️⃣ Your referral network is exponentially greater than your own network!

If you know 100 people and ask them for business, that's just 100 people. But if you focus on referrals from those people (who probably each know 100 people), then suddenly your potential reach goes from 100 to 10,000.

2️⃣ The language I'll suggest here expresses gratitude and provides social proof to the caller that others refer you already. This is huge.

3️⃣ You have now AUTOMATED a referral system! Your voicemail will continue to plant those referral seeds without you having to lift a finger.

Here's the language I like:

"Hi, you've reached the direct line for (you) at (your company). Your call is VERY important to me. Please leave me a message or send me a text, and I WILL get back to you promptly. And if you were referred to me by a friend or family member, please let me know who that was so I can say thank you. Thanks for calling, I look forward to speaking with you soon."

TIPS:

📣 Voice modulation:

If you end each sentence on a downward note it makes you sound more calm and confident. It helps to raise your voice tone part of the way through a sentence in order to bring it down at the end.

🤨 What not to say:

"I'm on a call or with a client." Well, maybe you are, or maybe you're walking your dog. Or in the bathroom. This super common language basically takes up space without providing value

👉 Friendly challenge: Do this right now! It literally takes 5 minutes to change your greeting and I truly believe it will bring you new clients.

07/27/2022

Doing a home buyer consultation with every buyer is a game-changer.

Done 👉correctly👈, you'll see hesitant buyers who were brimming with unvoiced questions turn into confident, prepared clients who see you as their partner, not their salesperson.

(Equally important: Your consultation filters out tire-kickers who would otherwise have wasted countless hours of your time and emotional energy.)

So what's the key to getting those results?

1. Use the consultation as a truly no-obligation TEACHING opportunity.

(It's NOT a 'sell yourself' spiel. That's what a lot of people get wrong.)

The good news: Doing the consultation like this WILL sell you in the best possible way!

👉Here are ideas on what to cover:👈

1. The Goal
2. Steps in the Home Buying Process
3. Features that Create Value in Homes
4. The Law of Buyer Agency in Your State
5. Tips on Choosing a Good Lender
6. How to Know What Price to Offer
7. Brief Explanation of Offer Forms
8. How Contingencies Work
9. How Earnest Money Works
10. What to Expect After Mutual Acceptance
11. How the Inspection Works
12. Explanation of Other Reviews
13. How You Help Them Track Deadlines
14. What Escrow/Closing Agent Does
15. What to Expect During Closing Week
16. How Short Sales and Bank-Owned Purchases Work
17. How Multiple Offers Work
18. What the Market is Doing

Important: When you invite people, think about what THEY want.

(Tip: No one wants to "sit down" with anyone.) 😉

Try this:

“Most people find it really helpful to get an overview of how the home buying process works early on, so they know exactly what to expect at every step in the process. We typically go over things like what to look for in a great house, how to know the right price to offer, how to choose a good lender and home inspector, and also a few things to look out for.”

"It also gives us a chance to chat and get a feel for if we'll be a good match to work together."

(That last bit takes the pressure off and lets people know you're not going to throw yourself at them.)

I hope these tips help you develop a home buyer consultation that rocks. Good luck!

07/25/2022

Here’s some of the best advice I ever received as a real estate agent, back when I was a struggling newbie.

My friend Rick Bakke was kind of the maverick warhorse in the office – a high-volume agent who looked a bit like Santa Claus and often delivered purchase and sale agreements from his Harley Davidson. 🏍

Rick had some good tips for me as a new agent back then, and I often refer to this one as “The best advice I’ve ever gotten in real estate.”

It was simply:

👉 “If you can’t be yourself as a real estate agent, hang it up.” 👈

Now as easy as that sounds, sometimes it’s not.

The fact is, when you’re starting a completely new business, it can be really tough to figure out whether:

You’re just leaving your comfort zone but growing in a good way... 🌳

Or...

You’re crossing over into the zone of trying to become someone that you’re not. 🤨

Growing is great.

Becoming someone you’re not is, well, not.

❔ But since both typically involve fear and discomfort – and we entrepreneurs tend to set ourselves up for challenges – it can be easy to feel like you need to force yourself to plunge ahead when you actually should step back and say, “Hey, that’s just not me.”

👉 So, listen to your intuition and be honest with yourself. 👈

If prospecting language or a script feels uncomfortable, is it just because you’ve only practiced it a few times?

Learn it by heart, so that you can say it without thinking about it, and then evaluate it again. Maybe by then you’ll just want to tweak a few words and it will be “yours”.

Or, maybe you’ll think, “I would rather wallow in a pit full of moray eels than ever say these words to another human being.”

In which case, it’s on to Plan B.

The same goes for your mailings, your website, and how you represent your clients – all of the ways you interact with people.

👉 “You” will change over time, but it just always has to stay “you”. 👈

Make that your "North Star" ✨ - regardless of who might be telling you you're not openminded or "teachable".

(It's great to be openminded and teachable, but let's be real - that language is also frequently used to manipulate people by making them feel like they're missing the success train. When in doubt, trust your gut.)

I thought about calling Rick a few weeks before he passed on, but I put it off, and will always regret that. So I’m passing along his good advice instead.

07/24/2022

🏠 What's the one question to ask every seller before they list?

(Hint: This can make the difference between a seller who ends up disappointed - * even though you did everything right * - and one who's happy and excited to recommend you in the future.)

Here's the scenario:

👉 You've done your spot-on market analysis.

👉 You're confident within a narrow range of where the home is likely to sell.

👉 The home is nicely prepped and the photos show it well.

👉 You've educated the seller about the market and they understand that the goal is to aim for the "sweet spot" of high appeal without leaving money on the table.

(By the way, this tip is for a traditional "normal" market like the one we're transitioning to. Pricing correctly becomes FAR more important when we can't count on multiple offers to set market value.)

Now, let's say you end up priced at that perfect sweet spot. 🎯 It wouldn't necessarily be strange to get a full price offer soon, even within a day or two.

The buyer, after all, has been looking around for a while. You're at the top point of what they're willing to spend but still within market value range, and they're willing to pay list price to get the house before someone else does.

(When agents say "The first offer you get is usually the best offer you'll get", this is the situation they're talking about.)

This is awesome - we have a deal!

👍 You're happy - your market analysis was spot on and all that hard work paid off.

🎉 The buyer's happy - they've finally found the home they were looking for.

💰 The seller got a full price offer so they should be ecstatic!

Wait a minute...

🤦‍♀️ Ugh. This is what can feel like a real kick in the teeth.

Seller now feels they left money on the table and should have priced higher. 🤨 After all, "We got an offer in just two days!"

'P**f' goes the air out of our balloons.

Here's the thing.

👉 Even if the list price was the absolute top price the seller would ever get for the home in that market and you did the best possible job anyone could have done...
..what you have on your hands now is a seller who's unhappy with the way you handled their home sale.

In the end, it's the seller's perception that defines their experience, right?

🌞 Well, here's some good news...

This entire situation can be completely avoided by asking one simple question BEFORE you list. This is it:

👉 "Seller, if we list at 'X' price and you get a full price offer within two days, are you going to be happy about it or are you going to feel like you left money on the table?" 👈

It sounds so simple, but the answer to this question is crucial.

If they say they'd be excited 🥂 and you're sure they truly understand their options, then that's great and you can all move forward.

But if even one of the sellers says they'd feel like they left money on the table 😕, it's time to discuss the list price again.

(Please note, I am NOT talking about encouraging sellers to significantly overprice a home, which is a sure route to misery for everyone. I AM saying to take a fresh look at the possible value ranges.)

For example...

➡ If your CMA landed pretty firmly on $500K, was there still an argument for $515K or $525K?

➡ Were you most comfortable with $1.3 million, but felt that there might be a small possibility of $1.35?

As long as the higher "we're sure we didn't leave any money on the table" price point is still within a zone of reality (even if it's a much less likely zone), it could make all the difference in the world to the seller's peace of mind to try that price for a couple of weeks.

And if you're priced too high and need to drop soon, at least when the seller gets that great offer at your original price suggestion they'll be happy and respect your expertise 🙌 instead of thinking you goofed on the pricing.

A few caveats:

This only works if your seller fully understands...

1️⃣ They'll need to adjust to a "get real" price soon if the reaction to their chosen price shows that it's too high. Lingering just loses money. (And agree on that time frame beforehand.)

2️⃣ If you're in a slowing market, their "meet the market" price in two or three weeks might be lower than the home's market value today.

3️⃣ The market could experience a big unexpected shift while they're priced too high. Make sure they understand what it means to "chase the market down" and why sellers never want to be in that position.

👉 The Bottom Line 👈

The seller's perception of what happened determines whether they're happy or disappointed with an outcome. And ultimately the seller wants to be happy, right?

Using that question allows them to choose their own path towards that goal. 🕊

Yes, there are risks to choosing the higher list price, but I've asked this question for years in my business and have always been glad I did.

I've also forgotten to ask it, and have been reminded in a not so great way of why I should never skip it. 🫤

I recently saw a post in an online forum where an agent complained about exactly this situation, so I thought it would be helpful to mention this simple technique in a post. I'd love to hear if you find it useful in your own real estate business.

Oh, and I will just add one thing about that higher "not leaving money on the table" price that the seller may want to try for.

(Waiting for real estate lightning to strike me from above as I type this....)

Sometimes it turns out that the seller was right. 😉

09/30/2019

50 real estate one-liners to motivate clients. Mostly true (OK, and some not so true), and some just downright funny. Number 17 is important but Number 21 is the best!

It's a scenario familiar to many real estate agents: A buyer client tours a home that they really like and then tells their agent they'd like to take the evening to decide whether to make an offer.