By “Coach” Marilou Butcher Roth
There is no doubt in my mind that the majority of you already have a system in place for your listing consultations. However, for those of you who do not, you may find this helpful. This particular structure came about several years ago when I had the idea that I wanted to create some structure for myself so that I might easily remember to stay on track during my listing consultations. After teaching a CE class on “Listing Consultations” on Wednesday, I realized this was still beneficial for those of us to tend to be easily distracted! Although I prefer this particular order, you may find you are more effective with another order. So, here you go:
- PROPERTY — Walk through the property with your prospective sellers. Let them show you updates they have made. If there is something that you feel needs tending to, you can point that out, make notes on it and review it when you sit down. This is also the time to notice and discuss any item that may not be staying with the property.
- PRICE — Yep! I say jump right in! This is what they most want to discuss, so just do it! Go over your comps and other related information with them. You may want to use a Net Sheet — I feel these are often overlooked but very important.
- PROBABLE BUYER — This is your marketing discussion. Have a conversation about who the most probable buyer might be. This might be more than one target group. In explaining how the listing will be marketed, you also want to make sure the information is pointed to the groups of probable buyers that you and your seller identify.
- PAPERWORK — Go through your necessary paperwork.
- PREPARING THE SELLER — Talk to your seller about what to expect — this discussion can cover a lot of ground.
Obviously, there is much more that happens on a listing consultation, and using the 5 P’s, you will keep yourself on track with the conversations that need to happen. Hope you find this helpful!
Marilou Butcher Roth is the owner of The MBR Group, a coaching and training company working primarily with REALTORS who have a desire to work and live from a more inspired place. She is also the Broker/Owner of Group REALTORS in Cincinnati.
Marilou is a member of the OAR Board of Directors and past chairman of the organization’s Communications Committee. Feel free to contact Marilou to see if coaching is right for you: Marilou@mbr-group.com
By Greg Stitz, OAR Director of Research
Ohio REALTOR feedback from around the state shows the median time listings are staying on the market falls between 41 and 50 days. Further, the survey shows 19 percent of homes are staying on the market 20 days or less, while 13 percent are on the market for more than 100 days. These findings are based on the results of OAR’s August Ohio REALTOR Housing Market Confidence survey.
Survey results are based on responses to a monthly survey, designed to capture the effects of the existing economic conditions and trends on the real estate industry, sent to a pool of 1,500 OAR participants. Click here to participate in future OAR Housing Confidence Surveys.
By Paul Glass, OAR Director of Political Affairs
The Ohio Association of REALTORS will be examining the merits of the state’s advertising rule mandating equal prominence in real estate advertising via a special task force comprised of an equal number of brokers and agents.
The group, which will be appointed by OAR President Greg Hrabcak, will conduct an exhaustive review of the Ohio rule stipulating that the agent’s name cannot be more prominent in size than that of the brokers in advertising. It will explore advertising standards being used other states, garner input from Ohio practitioners and seek insight from the Ohio Real Estate Commission and Ohio Division of Real Estate.
Formation of the Task Force is in response to a bill drafted by Ohio Sen. Kevin Bacon (R-Defiance) that would amend Ohio’s Revised Code pertaining to real estate advertising. As drafted, the legislation would give brokerages the flexibility to determine the size and prominence requirements of an agent’s name in an advertisement, rather than the current rule that is enforced by the Division.
OAR’s Board of Directors voted unanimously to oppose the legislation, as currently drafted, during the organization’s Annual Convention & Expo, Sept. 20-22, in Columbus. OAR will ask Sen. Bacon to delay introduction of the measure until the task force completes its comprehensive review.
By Carl Horst, OAR Director of Publications/Media Relations
According REALTOR.com’s August 2015 Housing Report, which tracks inventory of for-sale single-family homes and condos, median list prices, inventory levels and days on the market for 300 cities across the country:
Our analysis of realtor.com data indicates that the residential real estate market remained positive and healthy in August, as both demand and supply experienced sustained growth. We saw inventory grow 2 percent to its likely peak for the year, and while overall demand remained strong, the trend in median days on market suggests that the market is finding more of a balance. This bodes well for would-be buyers who have been discouraged by the inability to find a home to buy this spring and summer.
Nationally, the median list price is now $232,000, up 7 percent year-over-year and virtually flat over July, demonstrating a continued positive trend in home prices.
Median days on market are down 5 percent year-over-year and up 6 percent month-over-month at 75 days, which shows the season is naturally shifting to favor buyers as inventory moves more slowly than in spring and early summer.
Demand remained strong, with traffic and searches on Realtor.com continuing to set new highs in August. Unique users for the month grew 40 percent y/y, while visits and searches were up more than 50 percent and 30 percent, respectively.
Compared to the findings from a year ago, all nine Ohio markets tracked reported an uptick or were unchanged in terms of median list price in August. The pace of sales quickened from a year ago in six marketplaces. Additionally, inventory levels across Ohio dropped in all but one market from August 2014 levels.
August 2015 vs. August 2014
“The Ohio housing marketplace is continuing to experience steady increases in list prices and shorter time frames that homes are being marketed for sale,” said Greg Hrabcak, president of the Ohio Association of REALTORS. “The issue of low inventory levels remains an ongoing challenge throughout most of the state and is undoubtedly contributing to the quicker pace of sales occurring in our marketplace.”
By Lorie Garland, OAR Assistant Vice President of Legal Services
The OAR Legal Assistance Hotline receives an array of real estate-related legal questions — including license law issues, disclosure, contract law, ethics and commission problems, among others. In an effort to help you work within the law, our “Legally Speaking” series spotlights some of the timely questions that are being asked by REALTORS. The following involves whether you’re obligated to release a listing…
Q: Four months into a six month listing agreement my sellers have requested a release of the listing. The sellers have stated that they are happy with my work, as I had implemented an extensive marking plan and had many showings, but they have changed their mind about selling. I told the sellers that I would cease marketing the property and withdraw the listing from the MLS but I would not release them from their obligation to pay a commission if the property sells during the term stated in the listing agreement. The sellers are adamant about a full release which makes me doubt that they have changed their mind about selling. I suspect they want to sell to a friend who has expressed interest in the property. Do I have to release the listing? Can I agree to a release only if the sellers reimburse me for my marketing expenses?
A: If a seller tells the listing agent to no longer market the house and to remove the listing from the MLS, the listing agent must honor that request. However, the listing brokerage is not required to release the seller from his obligation to pay a commission if the property sells during the term of the listing agreement.
The listing agreement is a legally binding contract the terms of which can be altered by agreement of the parties, the seller and listing broker. When a seller asks for a release the listing broker can grant the request, grant the request if certain conditions are met or cease marketing the property but make clear to the seller that he will owe a commission if the property is sold during the term of the listing.
A condition to granting the release could be payment of the costs incurred to market the property. Once payment is received by the brokerage the listing termination agreement could be executed.
When the brokerage is not releasing the seller from the obligation to pay a commission if the property sells, this continuing commission obligation should be clearly stated in the agreement to no longer market the property. If the property does in fact sell, the seller would owe the listing brokerage the commission stated in the listing agreement. If the commission is not paid, the listing brokerage would have to turn to the courts to enforce the commission agreement.