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Contributing Story to the Destin Log Real Estate Section
by Linda Coiro, Real Estate Consultant
October 8, 2005
"A Little More Respect for the Open House, Please!
"Motivated Homeowner!" "Must Sell!" These are the words of desperation running rampant in our area's real estate housing market. Too many homes and not enough buyers. Wow, how the tides have turned since April.
Now's the time for Realtors to polish up on the marketing skills necessary to sell homes. Last year all it took was an MLS listing, and a line of potential buyers were patiently waiting as the Realtor went to hammer up the "For Sale" sign.
Truthfully, I was quite upset about this since my college and work experience have always been in marketing and customer service and the market didn't allow me the opportunity to do what I loved to do best! I listed and sold a bunch of homes. Yeah, it was easy, but I wanted to use my expertise to its full advantage and didn't even have a chance.
Today's market is a completely different story. A sign and an MLS listing is minimal at best. We must all dig deep for that creative niche in which to market and sell a property. And not every property is the same -- you marketing plan for one home will not always work for another.
Now let's just talk about the Open House. A mainstay of the industry for years -- you either love it or hate it, but either way, sellers are happy to see you proactively trying to sell their property. These days though, it's almost a losing proposition. I've held about 8 open houses in 1 month for several properties and the response leaves much to be desired. Whether you advertise or not, give away free stuff or not or give away free food or not. Yes, even free food! For example, my TeamLatitude30.com decided to do a dual open house for Realtors one recent Friday. Innovative to say the least, prepared with diligence and imagination from start to finish. The idea stemmed from my Italian heritage. OK, be different, create a niche. Everyone loves Italian food. So lasagna and vino were on the menu at House #1. From the tablecloth and breadsticks, authenticity the key. For dessert, a simple map directed the way to House #2 for "dolce" `and espresso served in those teeny weeny Italian espresso cups, topped with a shot of amaretto, the perfect way to finish up an Italian meal. A drawing too! Visit both homes and enter to win a $25 gift certificate to a local restaurant, and I'm not talkin' McDonalds! Poppys, Gugliamos, Beachwalk Cafe, Marlin Grill to name a few. Could it get any juicier? Possibly, but apparently not enough to generate the activity we hoped for.
What's it going to take to get us Realtors out and looking at Open Houses? In the current market, we need to support each other and take advantage of viewing the properties out there. It is only fair to our customers, even as few buyers as we're seeing lately, to act as their consultants and real estate experts to be aware of everything out there, especially now since there's so much to choose from. It is sad that we have gotten complacent after this past year's boom.
So next time, come join us! We refuse to spend another weekend in a home for sale eating a tray of lasagna by ourselves! Mangia!"
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This article appeared in the Saturday, October 29, 2005 publication of the Destin Log, Real Estate Section, by Linda Coiro
Buyers and Sellers:
It's Time to Stop Playing Silly Games
Original asking price $899K.
Reduced asking price $849K.
Offered price $749K.
Counter offer $819K.
Counter counter offer $779K.
Counter counter counter offer $799K.
$779K my final offer. BUYER STOP.
$799 and won't take a penny less. SELLER STOP.
Game over.
Who won?
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(Insert name of winner here)
You guessed it. "Nobody's" name goes there. This negotiation could have resulted in a win/win situation but since both the buyer and seller were "cappodosto", or "thickheaded" as we say in Italian, it turned into a lose/lose situation and everyone is back to square uno.
As Realtors, in the current buyer's market, we hold our breath the moment an offer is made. We make phone calls to our colleagues, old friends, new friends, our beloved family, our landscaper, our pet sitter, even our ex's in Texas. Namely anyone with a telephone! Woo-hoo! Yippee! Time for celebration! Meet me for Happy Hour! We keep our fingers crossed, our toes crossed, say some prayers and try not to get over-excited! But by this time, especially after Happy Hour, it's too late.
Just last year, I cringed thinking about the bidding war that was going to begin on my "Just Listed" property. I knew the morning that fresh new listing sprouted on the MLS it was going to get picked way before it got ripe. And not by one house-picker... several! My seller with two offers on his home told me to get the buyers into a room and have them duke it out. He was serious. Of course, being a Realtor of Ethics, I chose not to be the referee. And the fight was on paper, not in the ring. We did have a winner, but it was a long, stressful transaction and it seemed that only the seller wore the happy face. Then again, the buyer got what he wanted, just at a higher price than he originally intended to pay.
Property values soared in such a short time. I equate it to orange juice, the kind that comes in the can from the frozen food section. We were in a concentrated market last year, and now we're in the "add 3 cups of water" stage. Watered down and lots of it. Personally, I prefer fresh squeezed.
Enter April, 2005. Seller's market fading. Buyer's market coming into full view.
It's what I comically call the Destin Olympics. Let the games begin!
This back and forth haggling on sales price is enough to make me want to sit in the stadium and watch like a spectator with binoculars. Hey guys, when you're finished, let me know. But this is when a Realtor's negotiating skills come in to play. Both the seller and buyer are pushing it to the limit with the risk of losing it all. Working with either side must be handled carefully or the deal will fall apart. It's a frustrating part of the process and no one wants a win/win turning into a lose/lose.
Many consumers are willing to pay the price, but our human instinct as buyers is to get a good deal even if we're millionaires. If a buyer won't budge, I throw in a free termite inspection, or home warranty, just to get the sale moving along. Sometimes I'll have to negotiate to get the washer/dryer thrown in, or the patio set, something, anything, just a good deal to close the deal.
As Realtors, we must stay tuned to the buyer's comments and ask lots of questions. What are each side's motivations? Is it really the $20K difference in price that's driviing the sale, or the peace of mind each side will inherit once the contract becomes effective? Once we determine the buyer's psychological reasons for buying and the bottom line of the seller, negotiations can proceed smoothly, a price is agreed upon and the win/win is won.
BUYER RETURNS: OK, $799K, but you pay closing costs.
SELLER RETURNS: OK, but I want your first born if it's a male.
Thank goodness! We have a winner!
Time for Happy Hour again, care to join me?
Linda Coiro, Real Estate Consultant
Destin 850-543-4604
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This article appeared in the Saturday, November 26 issue of the Destin Log.
When you're ready to sell, your home becomes a house
You be the judge. In your heart you know that this situation is no longer working, and it’s high time you slam that gavel, get rid of the emotional baggage, and move on with your life.
No, I’m not talking about marriage counseling. I’m not talking about leaving Mr. or Mrs. Right, your better half, your spouse of 50 years. I’m not talking about signing away a fortune amassed in a 401K plan.
I’m talking about emotional attachment to a “home.” The word “home” (according to Webster, 3rd Collegiate, Copyright 1987) is “the social unit formed by a family living together, a congenial environment, a place of origin.” We tend to view our homes as extensions of ourselves, a place of comfort, family gatherings, peace and safety. A haven that we retreat to when things aren’t going quite right, or a place we return to to unwind from the stresses of the day. We politely inform our guests to “make yourselves at home.” Have you ever heard anyone saying “make yourselves at house?” A “house,” on the other hand, is just a replaceable edifice. Webster defines a house as “a building that serves as living quarters.” Could be a pup tent, a love shack, a beachfront cottage, or a mobile mansion in the woods. What we put into our house makes it a home. Like the saying goes, “home is where the heart is.” As soon as the For Sale sign is placed on the lawn, every home becomes a product.
The other day I received a referral call from a past client. So I prepare for the listing appointment, armed with statistics, brochures, web info; etc. etc. etc. I walk through this beautiful home with pen and pad in hand, evaluating it from a professional point of view. I go home (note that I “go home” and not “go house”) and prepare my post-listing presentation for the next day, when I’ll return and give the sellers the cold, hard facts. No sugar coating; not even Sweet-n-Low; I’m serious about getting their house sold!
“Mr. and Mrs. Whatanicehomeyouhave,” I’m sorry to be the one to tell you this, but you need to get divorced. Divorce yourself from this home. Wrap up those emotions and tuck them carefully away in little U-Haul boxes in your memory bank. Make believe this home is a product, a commodity to be sold, stripped of personality to the bare walls. What a beautiful miniature statue collection of pastel colore birds in pink hats perched on several shelves in the family room. They’re really cute, but the new family is allergic to birds, and as a matter of fact, feathered and furry friends of any kind! (And put away that smelly cat litter box!) I see lots of Kodak moments of a happy, handsome family all over the place, but lo and behold, they aren’t the new buyer’s family!”
Which brings me to this true story: My mama in Orlando used to call in a local Realtor every year to tell her what her home was worth. Mama is so proud of her plastic covered sofas, her many throw rugs and plastic runners on top of the wall-to-wall carpeting, her zillions of crafty knick-knacks in every nook. Aunts, uncles, cousins and my sister and nephews are smiling from every angle of every wall, we’re smiling over the fireplace, smiling on the coffee table, on the foyer table, in the halls, on the fridge, even in the closets! Holy cards of Saints we’ve never even met, tucked in the clear plastic wall protectors behind the light switches. The home is clean and neat and well-maintained for the most part. I must admit her Lladro collection is truly a thing of beauty! The home totally reflects my mama’s lifestyle, but probably not the cozy haven another family would enjoy as it is. The Realtors come in and say “This is a beautiful home, Mrs. Coiro,” and truth be known, I think that’s all she really ever wants to hear!
It’s a fact that when buyers come to “try on” a future home, they subconsciously enter the front door and envision themselves living there. It’s a lot easier for them to do that when the home is depersonalized. (Unless, of course, they’re looking for an investment property.) Sellers should make the house look clean and crisp, as if it were a model home getting ready to be lived in for the very first time. Get rid of odors, wild colors, and personal effects. Even if it costs a few bucks, you’ll see more profit in the long run. You’re not trying to sell who you are (and yes, you’re a very nice person) you’re trying to sell a “house!” As a Realtor, this is a delicate topic to bring up with clients. It’s difficult to advise someone to remove and pack away their Purple Heart war medals or their diplomas and civic service awards and other artifacts they’re so proud of. The truth is we’re not negating what lives are all about, we’re just simply trying to sell a house.
So you don’t need a lawyer to initiate the separation agreement. Just a few empty boxes, some bubble wrap and duct tape. Wave bye bye to Aunt Janie. Tell the birdies they’re just flying south for the winter. Position your “product” to sell and improve on the look of your home to increase the odds of securing a buyer. Don’t just leave it up to your Realtor; you’re the one in control of your product. It’s the Realtors job to sell that product. We want to take gorgeous photos of a model home ready to take on a new family with only a light dusting.
I know that when my mama gets ready to move north to Destin, or back to Lawnguyland with my sista, we’ll be packing for months. It’s going to be a long, drawn-out, knock-down and dirty divorce! Especially if I’m involved!
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Linda was quoted in the Dec. 17 edition of the Destin Log in the Real Estate section, Page D and D2.....
Article entitled "$500K and up price range Destin's most active...."
"Linda Coiro, a realtor with Century 21 Beach Realty, said finding buyers has become harder, but she's finding ways to attract them. Open Houses don't seem to be working very well, Coiro said. She invited 1900 realtors to a realtor open house and only six showed up. What has worked she said, is the Internet. Coiro said she spends a lot of time surfing the internet and looking for related web sites that offer cheap or free advertising. She also mails fliers and postcards to out-of-town realtors in areas such as Memphis, Atlanta and Birmingham offering them a referral fee. Coiro also targets contractors. She said she mails fliers to about 70 area contractors, trying to convince them of the tax advantages of buying a home in which their employees could live. She also networks, which she said is her biggest tool to grab buyers. "People say the market will pick up, "Coiro said. I'm advising clients not to lower prices and to let a listing expire so it doesn't get too stale -- and then pick it back up in February."
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The following article appeared in the Dec. 24, 2005 issue of the Destin Log:
FINANCIAL SUCCESS IN RETAIL AND REAL ESTATE -- DISTANT COUSINS?
"The end."
I had serious thoughts about writing this article backwards since today is the last day to shop before the clock strikes midnight . the culmination of last-minute "holiday" (or can I say Christmas?) shoppers with their fat envelopes full of bonus money.
As I sat in Panera's having lunch this week, I had serious writer's block wondering how to tie in Christmas to real estate. Gosh, I really wanted to write an end-of-the-year-super-duper article, but somehow, these two don't tie in together very well. Especially this year! I watched shoppers sip soup with shopping bags full of holiday cheer sitting at their feet. A little nourishment for refueling and they're ready to return to the hustle and bustle of the mall to shop till they drop. Oh how I wished upon a star that this was my day for "floor duty" and they were all coming into my Century 21 office to buy property instead!
But lo and behold, I was a shopper too, searching out the perfect gifts for the loved ones left on my list. Oh why didn't I stick to my New Year's resolution to start earlier in the year? But look at this; the whole mall is on sale! 20% off, 50% off, buy one get one free, prices slashed, free gift wrapping.. Sale after sale after sale! Even Santa's giving out candy canes.. free!
I'm a true believer that everything happens for a reason, and then it hit me. Here's my article! Retail and real estate: related! Thank you baby Jesus for the inspiration!
So with that weight lifted off my shoulders I meandered the mall for article content. I smiled as I watched parents and children visiting Santa in the main plaza near the tree. I listened to a special needs choir singing Christmas carols with the innocence of children. I saw little dawgies with stocking hats, some punk rockers with purple spiked hair, moms pushing babies.
But back to the business at hand. I still had two gifts to buy. A "20% off entire purchase" sign lured me into Lillie Rubin's. Hmmm, never saw that shop before.. "we're just opened two months," chirps Julie, the store manager. "Take a look around, we're having a storewide sale today." Then she recognized me and said, "Aren't you that realtor with the white bird in the Real Estate Book? Linda Correao or something like that?" And with that comment, and the correction of my last name (it's said COY-ROW) us two pros got to talking about how similar our professions really were.
As we chatted, I thought, Mmmm, I sense a pattern here. In order to bring in new inventory to sell, the old inventory must sell first, otherwise it gets saggy and shopworn on the hangers. Buyers pass it weekly and say, hey that's the same old stuff, why go in there. But when the mannequin is dressed in a new funky little furry sweater, hey let's go in and check it out!
Corner spot at the mall's central plaza = location.
Changing the mannequins outfits in the window = curb appeal.
20% off sale to entice customers into buying = price.
Bottom line in retail = location, appearance, price.
Bottom line in real estate = location, curb appeal, price.
And then I came up with a great realtor's New Year's resolution! As a service to our customers, we need to take inventory of our inventory. Especially as we go into the new year. We need to uncover the reasons the property isn't selling, determine what specifically is not working, and implement ways to turn it into a sale. What will it take for buyers to say, "Hey, let's go in and check it out!" Maybe it will be some nice new bushes out front, some painting inside, a pantry cleaned, different signage, a new price. Honest, down-to-earth conversations with our sellers to make the changes necessary to change "For Sale" into "SOLD."
I'm so happy that my afternoon at the mall turned my writer's block into inspiration. The sun went down and I went home with the gifts I came for... my mamma mia got a nice new funky furry sweater from Lillie Rubin's, and I picked up a 2 for 1 deal of the day thingamajiggy at the Sharper Image for my husband. But the best of all was the gift to myself... ways to revamp my inventory so it won't show up on the after Christmas sale clearance rack!
The REAL end.
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