I walked across the stage, shook the hands of the dean of the UTSA Graduate School, Dr. DeBrenna LaFa Agbényiga and the dean of the UTSA College of Business, Dr. Gerry Sanders, and received my diploma to validate 2 ½ years of hard work for an MBA in Real Estate Finance. As I continued on behind the curtain and took a picture for my family to remember the occasion, I thought to myself…“Now what?”
The reality is I’ve spent many years and many dollars paying for a higher education to become different and think differently than most others within the real estate industry. The real estate industry as we’ve all come to know it is a broken industry. The term “real estate agent” leaves a bitter taste in most people’s mouth.
Real estate greed is real and it puts homeowners at risk. The fact is, most people don’t trust real estate agents, and rightfully so. Each day I see the horror stories that agents cause, and the frustration that homeowners experience. I see the unnecessary price reductions in home prices. I see the poor negotiations. I see the backroom deals that agents hide from their clients just to guarantee themselves a commission check. I also see the lost profit, your money, which often amounts to tens of thousands of dollars, due to the incompetence of the realtors.
This has driven many homeowners to try to sell their home on their own without the help of a realtor. Many homeowners believe they can do a better job than their previous realtor did or they’ve been completely burned by someone in the past that they have no trust in the real estate industry.
As I look back on my experience within the New Braunfels real estate industry over the past 13 years and ponder what I can do to make a small difference in the lives of those that I will help through their individual experience of buying or selling a home, I have come to the conclusion that there is a better way.
The only protection you have against Real Estate Greed is to know how to “play the game” equally as well, if not better, than those guilty of breaking the rules. My goal is to help you know how to play the game in order to combat those intent on breaking the rules. My goal is to bring another approach to the game of real estate and become The Protector of my clients.
The Value Promotion Approach to Selling Real Estate
One of the troubling trends that I’ve seen in recent years, with the market having been so strong, is a general lack of commitment by agents to the importance of property presentation. The money that is made in a real estate transaction is not made during the listing and it’s certainly not made at closing when the house actually sells. The profit puzzle starts to take shape the moment the homeowner commits to a smart strategy that is designed to help them avoid the fundamental mistakes that plague most home sellers. The process often takes weeks or months – not days.
Unfortunately, I find the prevailing thought to be, “Why make the effort? The market is great and the house is probably going to sell anyway. I might as well sit back and let the market do the work.”
The agents who think like this are a disgrace to the real estate industry and are doing you a disservice and ultimately costing you money.
The new trend recently is for neighborhoods to create a Facebook group page where those living in the community can communicate with each other about topics relating to or affecting their neighborhood. My neighborhood has such a page and I was reading a post the other day where one of the residents asked “Hey guys has anyone else tried to sell their house in the neighborhood? We might be moving and I wanted to see if anyone knew what the market was like right now.”
Immediately there were multiple real estate agents who live in the neighborhood that swarmed to this poor homeowner and inundated her with private messages and their take on the local market. One such remark was simply “It’s all about price.” This is the mentality that most low information agents have and this is the mentality that, if you hire them, will cost you money.
Your home is not a commodity that someone can slap a price on and simply let the market do its work. But too often, this is what happens. I whole-heartedly disagree… IT IS NOT ALL ABOUT PRICE. If I do my job correctly, the price can be a secondary reason why someone buys your house. I am going to do everything in my power to make the buyer have an emotional connection with your home rather than simply looking at the price tag.
Rather than taking the time to run the tests and investigate and advise the homeowner on the opportunities to find extra profit in their home, most agents hide behind the “market” and tell you what your house should sell for because this is what the house next door sold for. Who knows what the story is behind the neighbors’ house? Did they do everything possible to enhance the value? Why would you price your home according to the possible ineptness of the agent who sold the neighbor’s house?
Anyone who pays for an MLS subscription can plug in your address and find the sales price of houses near you and give you an average. This is not creating value for you and is not providing you a service that you need.
I told you earlier that I have spent years studying business strategies in my quest for an MBA degree. My approach to selling real estate is to give you ideas, suggestions, and specific activities that will actually enhance the value of your home. My approach is a Value Promotion Approach to Selling Real Estate.
Many agents will try to blind you with the idea that they have a 187 step approach to selling real estate. They hide behind a binder full of administrative tasks that do nothing to enhance the value of your home. If you actually look at these lists you will find things listed on there like “install lockbox on the door” or “verify the owners’ names” or “send an email confirmation.” Are these tasks not just a given? Do they do anything for you to help create value? If you are presented with this type of pitch from an agent, I challenge you to really look into their “187 step approach” and learn for yourself how much of a sham this is.
There is a massive difference between taking time to ensure that all the mundane administrative tasks are complete and proactively investing the time necessary to increase the perceived value of the home in the eyes of the buyers. One is a given in my book and the other is likely a dollar in yours.
You see, there is no volume of tasks that can manipulate the home’s value after the fact. Value Promotion is a proactive process that must be tackled early on. As your agent I will focus on the fundamentals with an eye on the future profit.
I believe there is a significant difference between my approach, The Value Promotion Approach, and most of the others that you will see out there. I am not interested in binding you with the “value” of administrative tasks or the price that your neighbor’s house sold for. Rather I will treat the sale of your home like a business and present your home in the best possible light to create the highest possible perceived value to the buyer.
I will help you cut through the noise and focus on what actually matters.
About the Author:
Hi there! I’m David Carpenter, a REALTOR in New Braunfels, TX and an associate with NPL Group. Real Estate is my passion! I believe consumers deserve a better experience when buying and selling real estate and I strive to make your experience better than you will get anywhere else. I truly enjoy writing useful articles for home buyers and sellers to help simplify the real estate process and provide a visual guide through one of the most complex times of your life. Feel free to contact me directly or leave a comment in the comment section below.