DO THEY PASS THE TEST?… In the Real Estate business, it is easy to get off track. Consider taking a listing. There are so many variables in the equation of getting a home sold successfully. There is everything from price to motivation to location to condition to being realistic to timing, etc., etc. It is important to have a simple system for deciding whether or not you want to take the listing. The first criteria should start with the premise that "the Seller is applying for the job of you selling their home" (not the opposite). So what's the best way for you to decide whether or not you want to hire them? How do you decide if you want to take them on as a Seller Client?
Here is your ACTION STEP… the first Reminder is to keep it simple… it does not have to be complicated. Follow these two very distinct steps:
Step #1. There are three basic questions to ask yourself about this Job Application they are making…
a) Motivation… how motivated are they? How soon do they want to move? How committed are they to moving? The answer to all this usually shows up in how realistic they are being about the price. They won't always start off that way but once you explain the current market situation, if they are motivated, they will come around to a realistic price.
b) House Desirability... ask yourself whether or not you think you can sell their home. It is a good location? Is it presentable? Can any deficiencies be corrected? How will it be perceived by the potential Buyers? While price can make up for a lot of "warts" you still have to feel good about taking on the responsibility of selling this home.
c) Do I like Them?… If you were hiring an employee to work for you the first thing you would look at would be their general capabilities and qualifications. Next what about who they are?… you certainly wouldn't take them on if there is not a mutual respect. It's a simple question to ask about your Sellers… do I want to work with these people? You should never compromise your principles for a potential paycheck… doing so is a surefire way to erode your self-confidence. A big mistake.
Step #2. Now is the fun part… rate each of a, b, & c on a scale of 1 to 10. Do it this way, #10 is "I can't wait to get started" and #1 is "I hope I never see them again". Add up the three numbers and come up with a total.
Your minimum standard is 24 points. If they do not meet this basic criteria then you should not take the listing. Also, no individual item should be less than a #5. Anything less and you are asking for trouble. The benefit of taking this approach is that it helps you keep the emotion out of your decision-making. Consider that every listing you take will cost you somewhere in the vicinity of $1800 — $2000 minimum (combined expenses and your time). Trust me…those #s are legit. You are not in the business to lose money. You are not in the business of taking bad listings. Do not make the mistake of falling into this trap… "I might get some ad calls or do some open houses even though this one's probably not going to sell". A much better alternative is to forget about this situation and go out and find a better one. Find someone who ends up with a rating total of 24 points or more. Avoid "hiring" a seller who you are ultimately going to have to fire later on. NO Excuses.