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May 24, 2024

Mastering Your Realtor Value Proposition: Essential Tips for Agents

Are you prepared for the changes coming to real estate commissions? Tune in to uncover the essential strategies for mastering your Realtor value proposition and clearly communicating your worth to clients. Join us as we explore invaluable tips and techniques to elevate your listing presentations and secure more listings.

In this episode of the Texas Real Estate and Finance Podcast, we focus on mastering your Realtor value proposition in light of the recent changes to real estate commission structures. Host Mike Mills, a North Texas mortgage banker, is joined by luxury listing specialist Susan Mills. Together, they discuss how to clearly communicate your worth as a listing agent, prepare for listing presentations, and highlight your unique skills and experience. Key questions include how to justify your commission, strategies for effective home showings, and marketing tactics to stand out in the market. Tune in for actionable advice and expert tips to elevate your real estate business.

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The Texas Real Estate & Finance Podcast with Mike Mills
Mastering Your Realtor Value Proposition: Essential Tips for Agents
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Are you prepared for the changes coming to real estate commissions? Tune in to uncover the essential strategies for mastering your Realtor value proposition and clearly communicating your worth to clients. Join us as we explore invaluable tips and techniques to elevate your listing presentations and secure more listings.

In this episode of the Texas Real Estate and Finance Podcast, we focus on mastering your Realtor value proposition in light of the recent changes to real estate commission structures. Host Mike Mills, a North Texas mortgage banker, is joined by luxury listing specialist Susan Mills. Together, they discuss how to clearly communicate your worth as a listing agent, prepare for listing presentations, and highlight your unique skills and experience. Key questions include how to justify your commission, strategies for effective home showings, and marketing tactics to stand out in the market. Tune in for actionable advice and expert tips to elevate your real estate business.

Key Takeaways

Establishing a Unique Value Proposition

A strong Realtor value proposition is crucial in differentiating yourself from other agents. Clearly communicate your unique skills, experience, and the specific benefits you offer to clients. Highlight your commitment to providing exceptional service and the value you bring to the table, ensuring clients understand why they should choose you over others.

Preparing for Listing Presentations

Preparation is key to a successful listing presentation. Research the property, understand the market conditions, and know what your clients value. Bring comprehensive data, including comps and a detailed marketing plan, to demonstrate your expertise and readiness to sell their home effectively.

Communicating Your Worth

Effectively justifying your commission involves more than just stating your fees. Explain the costs and time involved in your services, emphasizing your years of experience and the value of your expertise. Use clear, client-centric language to articulate how your efforts will benefit them, ensuring they see the worth in every cent they pay.

Handling Home Showings

Guide your clients through the home showing process with specific, actionable advice. Suggest minor repairs and staging tips to enhance the property's appeal. Provide a checklist for showings, ensuring the home is presented in its best light, and discuss the importance of removing personal items to help buyers envision themselves in the space.

Adapting to Market Changes

Stay informed and adaptable in response to changes in the real estate market, such as the new commission structures. Be transparent with clients about how these changes affect transactions and be ready to negotiate terms effectively. Emphasize your role as a knowledgeable, adaptable professional who is prepared to navigate the evolving landscape.

Time Stamped Summary

0:00 - 0:13 - Introduction

  • Host Mike Mills kicks off the episode, setting the stage for discussing changes in real estate commissions effective August 17.
  • Emphasis on the importance of Realtors solidifying their value propositions.

 

0:14 - 1:00 - Podcast Overview and Introduction of Guest

  • Mike introduces the podcast and the main topic: creating a Realtor value proposition.
  • Introduction of special guest, Susan Mills, a luxury listing specialist and Mike's wife.
  • Mention of the upcoming live episode and its significance.

 

1:01 - 1:47 - Initial Banter and Sports Talk

  • Mike and Susan engage in light-hearted conversation about local sports, specifically the Mavs and the Stars.
  • Discussion about the excitement of being a North Texas sports fan.

 

1:48 - 3:16 - Transition to Main Topic

  • Susan expresses nervousness about the changes coming to real estate commissions.
  • Mike reassures and transitions back to the main topic, focusing on value propositions.

 

3:17 - 4:10 - Overview of New NAR Guidelines

  • Explanation of new NAR guidelines affecting MLS listings and buyer agent commissions.
  • Discussion on the implications for Realtors and sellers.

 

4:11 - 7:00 - Defining a Realtor Value Proposition

  • Susan explains the importance of a unique value proposition.
  • Discussion on what sets an agent apart and how to effectively communicate this to clients.
  • Emphasis on the need for specificity in outlining benefits and services.

 

7:01 - 9:00 - Key Elements of a Value Proposition

  • Detailed discussion on unique services like staging, high-quality photography, and virtual tours.
  • Importance of experience, expertise, and a client-centric approach.
  • Commitment to quality and the importance of effective communication.

 

9:01 - 12:00 - First Meeting with a Client

  • Susan outlines her process for the initial client meeting.
  • Importance of in-person meetings and understanding the property's unique features.
  • Discussing the timeline, reasons for selling, and expectations.

 

12:01 - 16:00 - Preparing for the Listing Presentation

  • Steps involved in preparing for a listing presentation, including research and understanding client needs.
  • Importance of visiting the property and getting a sense of its condition.
  • Strategies for effective communication during the first meeting.

 

16:01 - 18:00 - Handling Property Issues

  • Discussion on addressing potential property issues and their impact on pricing.
  • Importance of clear communication about any known issues.

 

18:01 - 20:00 - Second Meeting with a Client

  • Preparation for the second meeting, including creating a formal presentation.
  • Outlining all services and costs to the client.

 

20:01 - 23:00 - Strategies for Showing the Home

  • Tips for making a home show well, including minor repairs and staging.
  • Advice on maintaining the home's appearance throughout the listing period.

 

23:01 - 27:00 - Navigating Sensitive Conversations

  • How to handle sensitive conversations about home improvements and staging.
  • Importance of tact and understanding in these discussions.

 

27:01 - 30:00 - Finalizing the Listing Presentation

  • Importance of having a formal presentation and providing clients with comprehensive information.
  • Use of visual aids and checklists to help clients prepare for showings.

 

30:01 - 33:00 - Effective Marketing Strategies

  • Discussion on different marketing strategies, including MLS listings and third-party sites.
  • Importance of verifying listing accuracy on all platforms.

 

33:01 - 38:00 - Leveraging Local Expertise and Networks

  • Susan highlights the value of being a local market expert.
  • Building relationships within the community and using them to benefit clients.
  • Examples of using social media and local groups for marketing.

 

38:01 - 42:00 - Pricing the Home

  • Strategies for pricing the home, including aggressive, average, and optimistic approaches.
  • Discussion on the importance of market conditions and client timelines.

 

42:01 - 47:00 - Handling Appraisals and Pricing Expectations

  • Explanation of the appraisal process and its impact on pricing.
  • Importance of managing client expectations regarding appraisals and pricing.

 

47:01 - 52:00 - Discussing Money and Commissions

  • Finalizing the conversation with a discussion on commissions and net proceeds.
  • Importance of transparency and providing detailed seller net sheets.

 

52:01 - 1:01:00 - Preparing for Market Changes

  • Strategies for adapting to market changes and new commission structures.
  • Importance of negotiating and being clear about buyer agent commissions.

 

1:01:01 - 1:09:00 - Final Thoughts and Wrap-Up

  • Emphasizing the need for clear communication and detailed presentations.
  • Importance of building strong relationships with clients and being prepared for market changes.
  • Closing remarks and a preview of future episodes.

 

Susan Mills – Luxury Listing Specialist

Susan Mills is a highly esteemed luxury listing specialist with extensive experience in the North Texas real estate market. Known for her exceptional skills in staging and design, Susan brings a unique touch to each listing, ensuring homes are presented in the best possible light. Her deep-rooted passion for real estate and design started as a hobby and has seamlessly transitioned into her professional career. Susan is not just an expert in property aesthetics; she is also a master communicator and dedicated professional who prioritizes her clients' needs and goals. As an active member of the Mansfield community, she leverages her local market expertise and vast network to provide unparalleled service. Additionally, Susan's comprehensive approach to real estate, including her meticulous attention to detail and commitment to quality, makes her a trusted advisor and ally in the home selling process. Beyond her professional accolades, Susan is also the wife of podcast host Mike Mills, lending a personal touch to her professional insights on the show.

 

Transcript
Mike Mills
(0:13) Well, what is up, Internet? (0:15) So as of August 17, as it quickly approaches, the changes to the recent NARC commission lawsuits are going to go into full effect and impact how you communicate with your clients. (0:26) This means that you have about two and a half months to solidify your value proposition as a listing or buyer agent, if you haven't already done so.
 
(0:35) You need to be able to clearly communicate what you do, why it's important, and what it's worth to your clients. (0:40) Knowing your value proposition backwards and forwards, like you know your own phone number, and having it ready to present is going to be crucial in this new era of real estate. (0:48) Well, today we are here to help you put it all together.
 
(0:51) You're listening to the Texas Real Estate and Finance Podcast, and I'm your host, Mike Mills, a North Texas mortgage banker with Geneva Financial. (0:58) I can't talk today for some reason. (1:00) I don't know what the heck's going on.
 
(1:00) So on today's episode, we're talking about all things value proposition, specifically as it relates to your listing presentations. (1:07) Now, if you've been selling real estate for any amount of time, then there aren't going to be any earth-shattering revelations here. (1:13) But what we are focusing on is how you explain and present this to your clients.
 
(1:18) Remember, we all know how important you are to the transaction and that you earn every penny of what you make. (1:24) But what's the best way to communicate this, and how should you present it to your sellers for the best results? (1:30) But before we get rolling here, if you find today's episode helpful, then share it with your network.
 
(1:34) We're all facing these new challenges together, and if you think our show can help someone you know, then send it their way. (1:40) I love new listeners, and you guys are the ones on the front lines helping spread the word. (1:44) Plus, it would put a big smile on my bald face.
 
(1:47) So let's take a few seconds. (1:48) So please take a few seconds, like, comment, and share. (1:50) I'd really appreciate it.
 
(1:52) All right, let's get into it. (1:53) Now, here to help keep me on track and be the brains of this operation, as she is in every other aspect of our lives, is a luxury listing specialist, expert communicator, and overall stunningly beautiful North Texas realtor. (2:05) In fact, she is my own personal in-house realtor.
 
(2:09) Please welcome to the podcast, Susan Mills, my amazing wife.
Susan Mills
(2:12) Wow, what an introduction. (2:13) Hi, babe.
Mike Mills
(2:14) That's right. (2:15) Well, you know, I got to make sure I get brownie points here. (2:17) I get in trouble a lot.
 
(2:18) So, you know, I'm going to make sure I say all the right things. (2:22) So before we start, I've been talking about this a little bit on the show from time to time. (2:27) What'd you think of the Mavs last night?
Susan Mills
(2:29) Man, it was pretty close there for a minute. (2:31) And I was really happy to see their free throw shooting improve.
Mike Mills
(2:36) Yes.
Susan Mills
(2:36) It was definitely an opportunity that they could capitalize on. (2:41) Friggin' Luca and Kyrie are fantastic.
Mike Mills
(2:44) They're great.
Susan Mills
(2:45) Yeah, they're pretty good. (2:45) And I like Lively. (2:46) For a rookie, man, that guy.
Mike Mills
(2:48) You like his hair? (2:49) The big hair?
Susan Mills
(2:50) I like everything about him. (2:51) I like his rebound. (2:52) I like his enthusiasm.
 
(2:53) I just like everything about him.
Mike Mills
(2:54) Yes. (2:55) Well, I'm really excited. (2:56) And the Stars, we haven't been watching the Stars, but they're also in the Western Conference Finals, too.
 
(3:00) So it's fun to be in North Texas right now, especially after we just came off the Rangers winning their World Series.
Susan Mills
(3:04) Heck, yeah. (3:05) It's always fun to be a North Texas sports fan, unless you're talking about the Cowboys. (3:08) Unless you're talking about the Cowboys, of course.
Mike Mills
(3:11) All right. (3:12) So you ready for this?
Susan Mills
(3:14) Here we are. (3:15) Ready or not.
Mike Mills
(3:16) How are you feeling about it?
Susan Mills
(3:17) Nervous.
Mike Mills
(3:18) Nervous? (3:18) Why are you nervous?
Susan Mills
(3:19) I don't know. (3:20) It's just this is a time of change. (3:22) And we're all unsure.
 
(3:24) You know? (3:25) So I think it's normal.
Mike Mills
(3:26) All right. (3:27) Nobody knows exactly what's coming, so we're just trying to prepare for it the best we can. (3:31) So that's what we're going to do today, is we are going to go into value propositions on being a listening agent.
 
(3:37) So how are you going to explain this stuff to your clients? (3:39) What do you need to tell them up front? (3:41) What's the process look like?
 
(3:42) How do you present it? (3:44) How do you explain to them that you're worth every nickel of what you're getting paid? (3:48) And how are we going to go through that?
 
(3:49) So first off, let's start and let's talk about, or I want to tell everybody what we're looking at as far as why we're having this conversation. (3:56) So as everybody knows, August 17th is the official start date of the changes to the recent NAR guidelines and the MLS information that you can put on the MLS that goes into effect. (4:06) So what can you do and what can't you do, at least as of right now?
 
(4:10) So under the new rules set by the NAR settlement, sellers can offer compensation to buyers, or excuse me, sellers cannot offer compensation to buyer agents through the MLS. (4:20) However, this does not prevent sellers from agreeing to pay a buyer's agent commission outside the MLS if both parties negotiate and agree on such arrangements. (4:30) So can you give us a few specifics as to what exactly we're expecting you to do?
Susan Mills
(4:34) Yeah. (4:34) So unfortunately, sellers can no longer list the compensation through the MLS. (4:40) So in previous times, you would be able to be able to see what the seller was going to be paying the buyer's agent.
 
(4:50) And now that is not going to be the case. (4:52) In fact, I heard that it was going to possibly go through starting in May. (4:56) We haven't seen that, but sellers can still offer concessions in the MLS to cover buyers closing costs, which can indirectly benefit buyers and their overall cost structure.
 
(5:06) This may potentially be a way for buyer's agent fees to be paid through different types of negotiation.
Mike Mills
(5:14) Right. (5:14) You can still negotiate the fee. (5:16) You just can't list it.
Susan Mills
(5:17) That's correct.
Mike Mills
(5:18) And then the other part of this related to buyer's agents is what?
Susan Mills
(5:21) Yeah. (5:21) So buyer's agents are going to need to have a written agreement with their clients, detailing their compensation structure. (5:27) This really ensures transparency and clarity regarding how buyer's agents are going to get paid, whether it's going to be the buyer paying their agent themselves, the seller paying the buyer's agent, or possibly a combination.
Mike Mills
(5:40) Right. (5:40) Okay. (5:41) So we got the rules.
 
(5:42) We know what you can and can't do, at least at this point. (5:45) There is a little bit of, so I read something the other day. (5:47) There was a hearing regarding a commission lawsuit in Miami, and they were talking about how that buyer's compensation, or I should say that the Department of Justice is still looking to reopen their case against NAR.
 
(6:02) And one of the Department of Justice attorneys stated that they didn't feel like that any compensation should be offered to a buyer's agent at all. (6:12) Now, this was just a statement made by one of the attorneys, and it just happened like last week. (6:17) But it is something that they're considering.
 
(6:19) So we're not going to operate from the fact that sellers can't pay buyer agents, because right now that's not the case. (6:24) They can pay buyer agents. (6:26) They absolutely can.
 
(6:27) You just can't offer it as of August 17th. (6:29) So that's when it goes into effect. (6:31) All right.
 
(6:31) So what that means is that we have to go in and create our value proposition as a listing agent. (6:38) Okay. (6:39) So tell me what your thoughts are as what the value proposition actually is.
Susan Mills
(6:44) So creating your unique value proposition is really what sets you apart. (6:48) What makes you different? (6:49) What makes you special?
 
(6:50) How are you going to get the most value, sell the home most quickly? (6:54) This is kind of the minimum standard for why you should be chosen as a listing agent.
Mike Mills
(7:00) Okay. (7:00) So as far as the value proposition is concerned specifically, okay, so basically just the general definition of it is it's a unique value proposition is in real estate. (7:11) It's pretty clear.
 
(7:11) It explains, you know, like you said, what sets you apart from every other agent that comes through there and why the client should choose you to sell you their home or to sell their home. (7:20) Now it does. (7:21) You have to outline specific benefits and services that you provide and how you're going to solve those clients problems.
 
(7:26) And the key to this is you have to be specific, right? (7:29) Because every agent is trying to do. (7:31) We're all trying to do the same thing.
 
(7:32) Or you guys are all trying to do the same thing, trying to sell the house quickly, trying to sell it for a good price. (7:36) And you're going to communicate with everybody. (7:37) Well, that's kind of like the bare minimum of stuff you have to do.
 
(7:40) Right. (7:40) So you have to get specific. (7:42) So what are some of those things that are specific as a listing agent that you need to do to be able to, you know, communicate to your clients why they should pick you?
Susan Mills
(7:49) Well, I mean, first, how are your services unique? (7:51) So what do you offer in terms of staging or high quality photography or virtual tours or whatever it is that makes your services unique to the other agent that will be coming in for their interview after you? (8:04) How does your experience and expertise set you apart?
 
(8:08) How long have you been in the business? (8:09) How many transactions have you closed? (8:11) What's your record for really doing your job well?
 
(8:17) And what's your client-centric approach? (8:19) How do you make the process easy? (8:20) How can you make your sellers feel confident that they've chosen the right person?
 
(8:26) And also, too, your commitment to quality. (8:29) One piece of feedback that I get a lot is that agents don't answer their phone. (8:34) How can you possibly maintain a good relationship with not only your clients but the buyer's agent and the title company and possibly the lender and maybe the surveyor and the home inspector who's locked out?
 
(8:46) And, oh, by the way, the agent that was just in the house accidentally locked themselves out. (8:51) I mean you have to be able to continue to show the quality of your service that you provide.
Mike Mills
(9:02) And you have to be able to communicate that to the client as well. (9:05) That's the big piece of this because I think everybody will say, I communicate well, but what does that mean? (9:10) When you say you communicate well, what does that mean?
 
(9:13) And you have to be able to spell that out so your client understands all the steps that you have to go through. (9:18) Like you said, communicating with the buyer's agent, communicating with the inspector, communicating with an appraiser, communicating with the lender, communicating with everybody throughout the process. (9:26) If you just say, I communicate well, and you don't explain to your client what that means, I mean they may hear it and it may be okay, but they have no idea what you're talking about.
Susan Mills
(9:36) Well, and I think the end goal is to make it seem like we really didn't do anything.
Mike Mills
(9:40) Right.
Susan Mills
(9:41) Like we got the buyer and then we just walked into title with our bottle of champagne and it was perfect. (9:47) And that's what we're hoping for, but there's a lot of steps in between that.
Mike Mills
(9:52) Well, but these days, especially with commissions being such a focal point, then this also brings into effect that yes, you want it to seem like a seamless transaction. (10:00) But in the very beginning, at least, you have to be able to explain why the transaction is seamless and why your years of experience are going to make the transaction seamless. (10:09) So that way, when you sit down the first time and you talk to a buyer and you say, okay, or excuse me, a seller, and you say, okay, here's all the stuff that I'm going to do for you.
 
(10:17) And these are all the things that I'm going to handle throughout this transaction. (10:20) And by the time we get to the end, you'll have forgotten about all that because you didn't feel it at all. (10:25) And that's why you need me as a professional, right?
 
(10:27) Right. (10:28) Okay. (10:29) So, um, so let's talk a little bit about, um, you know, for you specifically.
 
(10:33) So when you talk to your sellers, what is it about you that you give as far as your unique value proposition? (10:39) Not that you're just a great agent, but what is it that your unique skillset brings like as an example that you give to your clients?
Susan Mills
(10:46) Well, I think for me, and it's not for everybody, but I think that my specialty is staging and design. (10:51) That's something that I have a passion for. (10:53) It's something that I've tried to, um, develop over the years.
 
(10:57) I've got some experience doing, uh, staging and virtual staging and, uh, basically general design. (11:03) It kind of started as a hobby for me. (11:05) And then that has, uh, kind of bled into my professional career as a real estate agent.
 
(11:09) And it's something that I love and I'm very passionate about. (11:12) And it's super fun that I can kind of do both at the same time, um, to get listings ready to, ready to go.
Mike Mills
(11:18) Yeah. (11:19) So you're, you're focusing more so on when you talk to a client, you're explaining to them about how you can make their house be as appealing as possible whenever they're going to list it. (11:28) Which is why, you know, especially with the higher end homes, this is a big piece of it.
 
(11:32) Because someone spending that much money on a property, then obviously, you know, they want to sell it for the highest price they can, but they have to see themselves within that. (11:39) And so what you try to do and, and the message that you try to send to your clients is to say, okay, I'm going to make sure that this house presents itself in the best light possible because this is what I'm an expert at. (11:51) So when you build your value proposition with your listing clients, that's kind of the thing that you frame it around, right?
Susan Mills
(11:56) Absolutely.
Mike Mills
(11:56) But everybody's going to be a little bit different.
Susan Mills
(11:58) And some houses don't need that. (11:59) And some clients don't need that. (12:00) But it is something that I do offer that can set me apart.
 
(12:04) And so that's something that is important to, to my presentation.
Mike Mills
(12:08) And some people do social media. (12:09) Some people do, uh, you know, they're really good with networking. (12:12) I mean, everybody's got their own skillset, right?
Susan Mills
(12:14) Right. (12:15) Well, I mean, and that's the minimum expectation. (12:16) Everybody, you know, does the minimum.
 
(12:21) But what, what makes you different? (12:23) What makes you special? (12:24) What makes you appeal to, to a seller?
 
(12:26) Right.
Mike Mills
(12:27) Okay. (12:28) So, um, let's talk about the process of going through the listing. (12:32) Okay.
 
(12:32) So, so you are going to set up a meeting with a client. (12:36) Um, and, uh, what does that, like, what does that process look like for you? (12:40) So when you do a listing presentation, you know, kind of what are the steps, um, you know, what are you expecting?
 
(12:46) You know, right at the beginning, what kind of expectations are you setting? (12:48) So let's just start with, you know, what's your general parameters for a listing presentation?
Susan Mills
(12:52) So you can meet with a seller over the phone. (12:55) I much prefer to meet with them in person. (12:58) Um, there's a lot of things that you physically cannot tell unless you're on the property.
 
(13:05) Um, some of that has to do with how the house is going to show online, but also what are the neighbor's homes look like? (13:12) Uh, how does the house smell? (13:14) Um, you know, how do they live in the house right now?
 
(13:18) Does, did they prepare for you? (13:19) They wanted to, to have their agent per possible agent come over to the house and they want it to be in a good light. (13:25) So is it tidy and well kept or is it a mess?
Mike Mills
(13:28) Right.
Susan Mills
(13:29) You know, you can't really tell that in person.
Mike Mills
(13:31) So you can't tell her with the phone.
Susan Mills
(13:32) Oh yeah. (13:33) Over the phone. (13:33) Yeah.
 
(13:33) And then another thing too is one thing that's really, really important. (13:36) And I think aside from the money piece, what is their timeline? (13:41) Why are they moving and what is their timeline?
Mike Mills
(13:45) Um, so if you have, all right, when you set up a meeting with somebody, are you trying to do everything at once? (13:49) Are you trying to do multiple? (13:51) Like how many, how many meetings do you have with a client typically when you set it up?
Susan Mills
(13:54) So typically before listing, I like to have one in person meeting. (13:59) And then I like to then have a followup conversation after I've kind of done my presentation. (14:06) And then prior to the listing, we'll go over with the photographer and have another opportunity to kind of revisit some things.
 
(14:14) Um, but that's generally what it looks like.
Mike Mills
(14:16) So you have three meetings or two meetings or how many meetings do you have?
Susan Mills
(14:18) One in person.
Mike Mills
(14:19) So let's say I call you and I'm like, Hey Susan, I want to list my house. (14:21) Well, how does that go?
Susan Mills
(14:22) Well, you call me and said that you want to list your house. (14:25) And then I say, first of all, why are you moving? (14:31) And, um, when are you moving and can we get together?
Mike Mills
(14:36) Right.
Susan Mills
(14:37) I need to get their physical address because I need to do some research.
Mike Mills
(14:40) Right.
Susan Mills
(14:40) But I want to physically look at the property.
Mike Mills
(14:43) So your first phone call is just, Hey, we want to do this. (14:45) And then you say, okay, great. (14:47) Um, what's your timeline, you know, so then you can set a meeting and then you try to physically go to the property.
Susan Mills
(14:52) Yeah. (14:52) And, you know, usually for me, it's a little bit more organic than that. (14:55) I like 99% of my business is business by referral.
 
(14:58) Oh, my cousin is selling their house, you know? (15:01) Oh, you know her, she was at, you know, Billy's baseball game or whatever. (15:05) So a lot of times I already kind of know who I'm talking to.
 
(15:08) So it really is just getting the general information, scheduling a meeting and then, you know, doing a little preparation prior to meeting in person.
Mike Mills
(15:15) Gotcha. (15:15) Okay. (15:15) So then you're meeting them for the first time to kind of go through some basic stuff to get some data.
 
(15:19) Right. (15:20) So what kind of, what kind of information are you looking for in that very first conversation or that very first meeting?
Susan Mills
(15:25) Yeah. (15:25) I mean, I need to know, obviously, like I said, why are they, why are they moving? (15:28) What's their timeline?
 
(15:29) What kind of features do they have in the home that I may not be able to see that would possibly set them apart? (15:35) Whether that's something great like a full in-home generator or a new roof or something bad that's not ideal that I need to be prepared for, you know, just kind of tell me a little bit about the home. (15:47) Why is it special?
 
(15:48) Any problems that you kind of foresee being an issue? (15:52) And, you know, what's your expectation of value for the house so I can kind of have an idea of a ballpark? (15:58) And usually they'll say, oh, you know, a couple of weeks ago, you know, we had a new listing come up in the neighborhood.
 
(16:02) It's listed for X amount of dollars. (16:04) They kind of have a general idea of worth. (16:07) It's kind of rare that someone's like, oh man, I have no idea what the house is worth.
 
(16:12) And then, you know, just kind of getting some general backstory so that I can be prepared to walk in the door for that initial in-person meeting.
Mike Mills
(16:21) So as far as when you're talking about the condition of the home and you said something about, you know, you want to know what's wrong with it. (16:27) So, I mean, you're obviously not going to phrase it that way, but why do you need to know the bad side of what's happening there? (16:32) Like with the property itself?
Susan Mills
(16:34) Yeah, sure. (16:34) Well, that's obviously going to affect the price.
Mike Mills
(16:36) Right.
Susan Mills
(16:37) So, you know, if there's something of significance that isn't right with the home, you know, we need to be really clear and upfront about that. (16:44) We need to be able to strategize around that.
Mike Mills
(16:47) Right. (16:47) And then this relates to like seller's disclosures and making sure that everybody's covered. (16:51) So there's no issues if somebody buys the house and there was something that was undisclosed basically.
Susan Mills
(16:57) Sure. (16:57) Or, you know, for example, sometimes it has nothing to do with the home, but there is a neighborhood here and where we live that the homeowners association is having a really hard time because a lot of the infrastructure that was done is now not not holding up. (17:14) And so that does not sound great to a potential buyer coming in that the curbs are falling apart.
 
(17:22) They're having to reframe any house that has like a stone exterior. (17:26) They're having to reframe the archways and put these like temporary stabilizers up. (17:30) I mean, it's of significance and it's not good.
 
(17:33) And I can't I couldn't price that house properly without knowing that.
Mike Mills
(17:38) Right. (17:38) Without being aware of the issues with it.
Susan Mills
(17:40) For sure.
Mike Mills
(17:41) Is there anything else about finding out what they think the price of the house should be that kind of helps you for your second meeting when you come in?
Susan Mills
(17:48) Yeah. (17:49) I mean, you want to meet or exceed expectations always.
Mike Mills
(17:53) Right.
Susan Mills
(17:53) You want to be straight and up front and clear. (17:56) But our goal is to meet or exceed expectations. (17:59) So knowing what their expectation is is certainly helpful.
Mike Mills
(18:01) Right. (18:02) Well, because then you'll be able to set the price according. (18:04) Well, you'll know that if you come in well below what they think the price is that you're going to have to how you're going to have that conversation.
 
(18:12) Right. (18:12) Because it's it's not exactly if somebody thinks their house is worth a million dollars and it's only worth eight hundred thousand. (18:18) In your opinion, as an agent looking at the comps, that's a different conversation than if someone thinks that their house is worth a million and it's worth nine fifty or nine ninety nine.
 
(18:27) Right. (18:27) So it's a totally different conversation that you're going to have to have with somebody. (18:30) And knowing that up front and making sure that you have all that information is going to help you when you have your second meeting and when you go through actually.
 
(18:37) OK. (18:37) The first meeting is really here's what I can do or here's what I need to know. (18:41) Right.
 
(18:42) Here's what I'm trying to find out about you, about the property. (18:44) You're trying to get a gauge on how to communicate with that person. (18:47) Right.
 
(18:48) What what kind of communication standards they deal with? (18:51) If they're what their personalities like, are they, you know, very engaged and have a lot of opinions or they dry and you're going to have to lead that direct, you know, lead the conversation a little bit. (19:01) So all of that comes into play in that first meeting of trying to get an idea of who this person is, what their house is like, what it looks like.
 
(19:07) What's what are the problems I'm going to have? (19:08) What are the benefits of this property? (19:10) OK, now I can take all of that information and I can go back and put together my presentation.
 
(19:15) Right. (19:15) Absolutely. (19:16) And that first meeting is going to be incredibly important because that's when you get all the data that you need in order to come back the second time and go through exactly what it is that you're going to do as the agent to help them sell their home and what that you know, what value associates to that.
 
(19:31) OK, so. (19:33) All right. (19:33) So we've had our first meeting.
 
(19:34) We've gone through. (19:35) We've talked to the client. (19:36) We've looked at their property.
 
(19:37) We found out all the good and bad stuff. (19:39) Now it's time for our second conversation with them. (19:41) Now, I think, you know, some agents will do this over the phone.
 
(19:45) Some people will do this in person. (19:46) It all just depends. (19:47) I think that in person as much as possible is probably going to give you you know, you need to be in person at least once, like you said, because you have to see the house.
 
(19:54) But then on that second meeting, you're going to present to them all of the things that you're going to do in order to help them sell the house. (20:00) So what are kind of the main hit points when you're sitting down in that second meeting that you're going to have with the client to say, OK, here's the stuff we're going to go over today? (20:09) What are you going over with them specifically in that second one?
Susan Mills
(20:11) I mean, specifically, we're going to go over, you know, how to show the house. (20:15) That's going to be important. (20:16) There's a lot to that, but how we're going to strategize on showing the house, what to expect during those showings.
 
(20:23) How do I plan on marketing the home and what's our pricing strategy?
Mike Mills
(20:26) OK, so generally speaking, are you do you like to have something physical that they can have or are you trying to do like a PowerPoint or what? (20:35) Like, what do you think is the best route to go as far as like having stuff for them to either take with them or keep or whatever?
Susan Mills
(20:42) I prefer to have a folder for them that has a lot of outlines, timelines, photographs, things like that, just so that they can have things to reference later. (20:54) Because, you know, we do this every day and we're accustomed to the process. (20:58) But I think that sometimes, especially if somebody hasn't moved in a while, this is like drinking from a fire hose.
 
(21:05) I mean, it's just a lot of information. (21:07) So having them and also to let's remember that this is in the best of circumstances. (21:12) This is still an emotional time for them.
Mike Mills
(21:13) Yes.
Susan Mills
(21:14) And so, you know, they're they're maybe thinking about, oh, my gosh, this really got real. (21:17) Just all of a sudden, like yesterday, it was just an idea. (21:19) Now this agent's in my kitchen and now I'm not even listening to what she's saying.
 
(21:25) I'm just worried about where we're going to move or how we're going to find the next house or, you know, whatever the circumstances. (21:31) I like to have all of that printed so they can reference it later.
Mike Mills
(21:34) Well, and part of that's related to what you were talking about earlier with the timeline, right? (21:37) Because if you understand why they're selling and what their timeline is, then you can gauge how this conversation needs to go. (21:42) Because if they're like, oh, we're in no hurry or, you know, we're not exactly we just want to see if we can get the price we want.
 
(21:47) Well, then it's a different conversation than if someone's like, I'm moving to Ohio in 60 days and we have to be there. (21:53) So I got to get my home sold today.
Susan Mills
(21:55) Right. (21:55) And do I need the cash to buy the next house?
Mike Mills
(21:59) Right. (22:00) Right. (22:01) OK, so let's talk about when you discuss with them, you know, what makes you know how we're going to show the house, like what the process or I should say, what are you telling them that they need to do to make sure that this house shows well?
 
(22:15) And then we're presenting this in some sort of a document, I guess. (22:19) So that way you can have this all lined out as you go through it is like a visual aid. (22:22) So you're going through exactly what you're what what your expectation or what their expectations should be when it comes to listing their house.
Susan Mills
(22:28) Yeah, absolutely. (22:28) I mean, there are some things that will certainly make the house show the best. (22:33) One thing that's really interesting as real estate has evolved.
 
(22:38) If you have a home inspection and something has come up a while ago, you used to just be able to tighten a bolt or you used to be able to have your brother in law, who was a carpenter on the side, do a deck repair or something like that, and times have really changed. (22:56) The contract was updated about specifics on the the skilled type of laborers that can be in the house and what kind of appropriate licensing they need. (23:06) And so one thing that that I like to share with my clients is that if there's little things that you know that you can do yourself and I'm not talking, don't get out over your skis and do something that you're not qualified to.
 
(23:17) I mean, if your light fixture is blinking and you're not an electrician, don't mess with that. (23:21) But what I'm saying is, is that if there are small repairs that you can make that you feel qualified for, go ahead and do that. (23:28) All the little things that have been annoying you about your house that you just haven't gotten around to, I promise you it's going to annoy the inspector as well.
 
(23:36) And what you don't want is you don't want the home inspection to come out and be so completely overwhelmed, have the buyer be so completely overwhelmed by little things that you could have taken care of. (23:46) So one thing I like to say is if you can do it, go ahead and do it. (23:49) It's going to save you a heck of a lot of money instead of paying a master plumber $100 an hour to tighten the bolt on the toilet seat.
 
(23:56) Because that's literally what you'll be doing. (23:59) You can't turn that wrench once the house is under contract.
Mike Mills
(24:02) Do you ever kind of walk through and like with the client when you're there and look at anything like that and give them ideas?
Susan Mills
(24:08) I love to. (24:09) And I will stay with a client for as long as they want. (24:13) And some are like, no, we're fine.
 
(24:14) Thanks for the information. (24:15) And you know, whatever. (24:16) And some are like, they want to show me like everything since 1981.
 
(24:20) And I'm totally fine with that. (24:22) That's great. (24:22) It just totally depends.
 
(24:23) But that that doing some of the small things is really important. (24:27) And then attention to detail is really important, in my opinion. (24:30) And, you know, I am so fortunate to work with some really excellent photographers and they can do some editing.
 
(24:36) But what you don't want to happen is you don't want your you don't want to catfish your buyers. (24:41) You don't want them to look at this beautiful house online where the grass has been touched up and the lighting has all been enhanced. (24:49) And then they get to your home and they're disappointed.
Mike Mills
(24:52) Right.
Susan Mills
(24:52) Because that's an inconvenience for for my precious sellers as well, because they've gotten the house ready to show. (24:58) And then a buyer walks in, opens the door, tells their agents are out of there. (25:02) So we're talking about meeting the expectations.
 
(25:04) So it shows just as well in person. (25:06) And some of those things are, you know, making sure that the light bulbs are the same color, making sure that the lawn is well maintained throughout the entire process of listing to close, doing things like power washing or adding mulch is a great thing, just little things that you can do to really make sure that a buyer knows. (25:26) Mulch the flowerbeds.
Mike Mills
(25:27) Oh, yeah. (25:28) Not mulch the living room?
Susan Mills
(25:30) No, no, no, no, no. (25:31) Just keeping the yard maintained, adding fresh mulch and.
Mike Mills
(25:35) Come a little closer to that mic. (25:36) There you go.
Susan Mills
(25:36) Things like that. (25:38) So, yeah. (25:39) And then one thing you just have to be careful with, in my opinion, is just to make sure that you're not overwhelming somebody.
 
(25:45) You don't want to come in and make their house feel like it's being picked apart. (25:48) But just giving people a general idea of ways that their house can show better once people are actually in the door.
Mike Mills
(25:54) OK. (25:55) So, you know, it's hard when you're telling someone how to fix their home or make it look better. (26:01) So how do you navigate that conversation when you're talking to somebody about, you know, like taking their pictures down or, you know, the fact that they have cats or dogs in the house and it makes it smell like.
 
(26:11) What do you like? (26:13) How do you how do you do that?
Susan Mills
(26:15) That is sometimes sensitive. (26:17) A lot of times people are pretty self-aware. (26:20) They're like, hey, we know that we need a fresh coat of paint.
 
(26:23) We just haven't really gotten around to it. (26:24) We weren't motivated to do that. (26:26) Or, you know, sometimes they don't.
 
(26:30) I do ask them. (26:31) I'm like, are there any issues that you're aware of that you had planned on addressing before I got here? (26:37) And sometimes they're like, oh, yeah.
 
(26:39) You know, I'm sorry. (26:40) We didn't have time to do this. (26:41) This is on our list.
 
(26:41) We'll have it accomplished prior to listing. (26:44) And that kind of takes the heat off of an agent having to tell them that there are opportunities to have their house show in a better light. (26:52) A lot of times, too, people just don't think about it.
 
(26:55) And so I ask, you know, when you're looking at homes online or you're looking at homes in a magazine, it's just. (27:01) Clean and like serene looking. (27:04) You're not distracted.
 
(27:05) So I encourage them to take away anything that's distracting, particularly in the photo. (27:11) So any personal items that would look like somebody lives there? (27:14) I know people live there, but we don't want it to look like that.
 
(27:17) Unfortunately, you know, and I don't mean it doesn't need to be down to the salt and pepper shakers. (27:22) But I'm just I'm encouraging them to do a lot of declutter because they're going to have to pack it anyway. (27:28) If they're motivated to sell and and I'm already here.
 
(27:33) Go and get, you know, five or ten totes from the Home Depot and start packing away those things that are precious to you that you don't want to get broken and things that are cluttering the house to make the photography look not at its best.
Mike Mills
(27:47) Do you think that, you know, when you're when you're going through this, like if you're going to present. (27:54) So we're talking about the listing presentation in general, because, again, this is all about creating your value. (27:57) Right.
 
(27:58) So we're trying to explain. (27:59) So part of you explaining this to your buyers is to help them understand, hey, look, this is going to help your house sell quicker. (28:05) This is going to put your explain to your sellers.
 
(28:07) I mean, this is going to put briars in the right mindset to look at the home and like we could live here. (28:12) We could see ourselves living here because I don't see Mr. And Mrs. Smith's wedding photo on the mantle. (28:18) Right.
 
(28:18) Because I want to see myself in this house and that's where I want to be. (28:21) And so as a realtor, as a listing agent, when you're talking to your sellers, you have to not just tell them what they need to do. (28:29) Right.
 
(28:29) But you have to tell them why they need to do it, because this is what your years of being a realtor has has has shown you. (28:36) Right. (28:36) This is what you've learned.
 
(28:38) Correct.
Susan Mills
(28:38) Yeah, absolutely. (28:39) And, you know, that that's something that I do and I enjoy to do. (28:43) A lot of my clients don't need it, but some do need the help.
 
(28:46) And I will go over and just kind of help them to, you know, I'm not going to be packing the boxes, but I will go over and just kind of we'll start making notes and mark down ways that they what they can do, what they need to take down and kind of help them prepare. (29:02) And I think that that is a benefit. (29:06) And the sense also is that they have less to maintain during that showing process.
 
(29:09) If they don't have a lot of tchotchkes everywhere and things like that, it's going to minimize their effort and stress when they get a showing at seven thirty p.m. and they really want to accommodate it. (29:20) It's just fewer things that they'll have to do. (29:22) And so just letting them know that this up front might be a little bumpy, but it's really going to ease your your sense of, you know, what you need to do once buyers are.
Mike Mills
(29:32) And that goes back to part of what your value proposition is. (29:34) Right. (29:34) Because you are there helping them saying, OK, I'm going to walk.
 
(29:38) I'm going to I will help you walk through your home and tell you what we need to stage appropriately, what things we need to take down, what you need to fix. (29:44) That's part of the value that I'm bringing to this for you is I can show you all this stuff because I've sold hundreds of homes before. (29:50) I know it shows.
 
(29:51) Well, excuse me. (29:53) And I know what buyers are looking for. (29:54) And so that's what you do.
 
(29:56) Now, if you're somebody that, say, is a social media person and you, you know, you're going to show their home well, well, then maybe what you're talking about is lighting in certain rooms. (30:05) So you can film, you know, this particular bedroom or this particular kitchen. (30:09) Or if you're really good at photography and you that's the biggest piece of you and you have a drone and you know, you do an aerial scope of the house, maybe you walk through and you show them, OK, here's where we're going to bring it through.
 
(30:19) We want to see the backyard. (30:19) We want to see the front. (30:21) You know, I have one small one that can go through the house.
 
(30:22) Not me, but if you're an agent, you have that that can actually fly through the house. (30:26) You this again, you are showing what your expertise is during the second meeting. (30:31) So you're saying in your case is Susan Mills listing agent.
 
(30:34) You're saying I'm going to help you stage this thing so it looks immaculate. (30:37) And here's all the things that you need to do. (30:39) If I'm a social media value person, then I'm saying, OK, here's how I'm going to.
 
(30:45) Here's the things that I need to have in the house so I can film it properly so I can demonstrate, you know, to people online, you know, the best, the best look for it or whatever. (30:52) Right.
Susan Mills
(30:53) Yeah, absolutely.
Mike Mills
(30:54) What about like anything? (30:57) How do you feel about special things highlighting what is unique about the house?
Susan Mills
(31:02) Yeah, absolutely. (31:02) So when you're preparing for or the showing, one thing that is important is that any special features that you have a media room, or awesome sound system or specialty pool lights and fountains or a Koi pond or whatever your your house has to that, whatever your house has, it sets it apart. (31:23) You know, that's something that I do love to prepare my sellers like, please go ahead and have this turned on if you're able to.
 
(31:28) Now, with technology, sometimes it's as easy as an app where they can turn their waterfall on from, you know, their office on their, you know, on their app. (31:36) And sometimes it's a little more in depth than that. (31:38) But if you've got awesome features, let's show it off during the showing.
Mike Mills
(31:42) Right, right. (31:43) Now, do you do you think that you should have a like kind of like a checklist of all of these things that they need to do, you know, before a showing shows up? (31:54) Like what like the things that they need to make sure that they take care of before that?
 
(31:58) Because if somebody is leaving in the middle, like if they get a phone call, you know, and are listening to email or whatever, and their house is showing at two o'clock, and it's 12 o'clock, you know, what do they need to do before they leave to make sure that the house shows appropriately?
Susan Mills
(32:12) Yeah, I mean, absolutely. (32:13) And the Murphy's Law situation is that if the one day you left your underwear on the floor, that's the one day you're going to have 10 showing.
Mike Mills
(32:21) Right.
Susan Mills
(32:21) So it is really nice. (32:22) It's something that I do like to put together. (32:24) Not like I said, not all clients need it.
 
(32:26) They're, you know, already on edge, or they definitely want to make sure that the house shows in the best light possible. (32:32) And there are clients that I have that like will wash a window before a client walks. (32:35) I'm like, that's, that's not necessary.
 
(32:37) But I do make a list of things, you know, if they're, if they're not able to, you know, turn lights on and things like that, the showing agent is going to do that. (32:46) That's no big deal. (32:47) But you know, no dirty dishes in the sink, make sure that your pets are secure.
 
(32:52) That's a really big thing. (32:54) And my preference is that pets are gone. (32:57) And the reason for that is you're the potential buyers that are in your home, they're going to want to see every livable square foot of that house.
 
(33:07) They're not going to want to not go into the backyard because your dog is in the back. (33:10) They're not going to not want to go into the garage because, you know, all the animals are in there. (33:15) So I just think it's really important for them to be really prepared for those specific things.
 
(33:21) Aside from the beds being made and the basic things, those are a couple of items that they need to be prepared to do is just make sure that the dishes are out of the sink before they leave for the day. (33:32) Make sure that they have a plan for their pets. (33:35) Um, make sure all the beds are made.
 
(33:37) So yeah, there is a checklist and it kind of at discretion on if I give, give a seller that checklist, like, Hey dummy, make sure you do. (33:46) Yeah.
Mike Mills
(33:47) Okay. (33:47) So, so first step was what you need to do to have your house ready to go. (33:52) Here's all the things you've set you after your, this is during your second meeting you've gone through and you've said, okay, here's all the stuff that we need to do to make sure that your house shows in the best light.
 
(34:00) And here's what I'm going to do to help you to make sure that it shows in the best light. (34:03) Okay. (34:03) So you've gone through that in detail with them.
 
(34:05) The second part of this is okay. (34:06) Now the house is ready. (34:08) Now we're going to start showing it.
 
(34:09) So what, what do you go through with them at that point to say, okay, now that we have the house ready, here's what's here's what you need to know as far as what happens when you actually have a showing, what do you walk through with them now?
Susan Mills
(34:20) So technology is great, but technology can be a little bit confusing, especially for older clients. (34:27) Um, because what will happen is, is that once they get a showing, we, we have a system, a showing system that will call and either notify or ask for permission, um, or an app that people can either accept decline or ask to reschedule, um, the showing. (34:45) So I kind of walked them through that process on what it looks like to actually get a showing, how to approve the showing.
 
(34:52) We already know how the house is going to look during the showing. (34:55) Um, and then another thing that sometimes gets overlooked, um, with showings is the seller needs to not be in the house. (35:04) And I know that that sounds really basic and everybody knows, but not everybody, everybody knows that.
Mike Mills
(35:10) You know, that as an agent, I know that as a lender, but, but, but sellers don't necessarily know that.
Susan Mills
(35:15) The sellers need to be gone. (35:16) Their teenage kids need to be gone. (35:17) The kids that are skipping school need to not be in the bed.
 
(35:21) That has happened. (35:22) Um, yeah. (35:23) So, you know, that that's important.
 
(35:25) And also too, let's talk about a showing window because what we're generally doing when, uh, when buyers agents are out is we've got a list of sometimes eight or nine houses and we're like, okay, we're trying to get from point A to point B. (35:38) We're trying to unlock this one. (35:39) This is an owner occupied.
 
(35:41) So we're trying to be really cognizant of, you know, their timeline. (35:44) This house is vacant and we're, we're going through a lot of work and effort, putting our showing cart together to make this really seamless for not only our clients as the buyers, but also the sellers. (35:56) Um, you're showing window is a window.
 
(35:59) So if you get an appointment and it's from 10 to 11, they might come at 10 59. (36:04) And is that a little inconvenient? (36:07) Absolutely.
 
(36:07) Was that their intention? (36:09) Probably not. (36:10) But they're trying to work through, um, that now if it's 1115 and they haven't come, give me a call and say, Hey, I saw my ring doorbell that the, um, the buyer's agent hasn't come.
 
(36:23) Um, and I will communicate with the buyer's agent. (36:27) They're like, Oh my gosh, I'm so sorry. (36:28) We're, we're stuck in traffic.
 
(36:29) I couldn't find your phone number. (36:30) Do you mind if we're a few minutes late or my client bailed? (36:34) I forgot to call.
 
(36:35) I'm unfortunately irresponsible agents are your seller clean the whole house and yada, yada, yada.
Mike Mills
(36:40) We're not showing up.
Susan Mills
(36:41) Um, whatever the case may be, but that's kind of generally how it works. (36:44) I like to prepare them for what the expectation is for the timeline and things like that. (36:49) Um, another interesting thing that we need to make sure that we go over is making sure that they've got access to their home.
 
(36:56) Once the buyer's agent walks up one tricky thing that hangs sellers up a lot is a man. (37:01) I don't even have a key to my front door anymore. (37:03) I only use my garage door to get in the house.
 
(37:06) And now the laundry room door between the garage and the laundry room is now locked.
Mike Mills
(37:10) And you're stuck.
Susan Mills
(37:12) And, and the only key to the entire property is inside the lockbox and sagging on. (37:16) I'm in Forney, you know, that's not a great call. (37:20) That's really not.
 
(37:21) Um, so just prepare them to make sure that they've got the access to their own home, which you would think would be self-explanatory. (37:28) And yet.
Mike Mills
(37:28) Well, and again, but these are, these are little things, right? (37:31) These are, these are small details, but important details because you have to be able to, again, the whole point of this conversation is that you have to be able to communicate to your clients, all the things that you are doing and why you're worth every nickel of what you're making. (37:46) And so if you don't walk through these little details and nowadays, especially in, in why we keep kind of referencing going back to like writing this stuff out as part of your listing presentation, because this seemed like this seems like, yeah, no duh.
 
(38:00) I do this. (38:00) This is what I'm supposed to do, but it's so paramount now because there will be questions about commissions. (38:06) It's going to happen.
 
(38:07) People are going to ask questions about it. (38:08) They're going to ask what they have to pay to buyers. (38:10) We'll talk about that in a minute, but this stuff's going to come up.
 
(38:13) So when this stuff comes up, you have to have all of this presented in a manner that when a seller sits down and looks at the 20 or 30 pages of stuff that you've given them or the 50 slide point, you know, PowerPoint slide, and then they think for a second, oh, I could list this house on my own. (38:30) No, no, you can't. (38:32) I mean, you can, but I can drive my car on my feet.
 
(38:36) Doesn't mean it's a good idea.
Susan Mills
(38:37) Yeah. (38:38) Well, and I think unfortunately too, um, our job being a licensed realtor doesn't really prepare you to be an effective real estate agent. (38:48) And a lot of the things that I know that I can prepare for is because I've run into problems.
 
(38:53) I've had all of these circumstances that I'm talking to you about. (38:57) They have all come up. (38:58) So part of my value proposition is that you're not paying me for this one listing.
 
(39:03) You're paying for the hundred, however many that I have. (39:07) That way I can prepare you. (39:08) I can prepare you emotionally.
 
(39:10) I can help prepare your house physically and set those expectations and not overlook the small details that seem self-explanatory, um, that aren't, that are really important steps.
Mike Mills
(39:21) Yeah. (39:22) Well, you even told me, uh, before, cause we were kind of talking about this, about how, you know, you, you try to tell your sellers, you know, when you leave the house to let the, you know, for the showing set the house up the way that you want it to show, because often, you know, you want them to come in and have that experience right out of the gate. (39:39) And then the agent, whoever is showing the home will often leave the house the way that you set it up.
 
(39:44) Right?
Susan Mills
(39:45) Yeah, absolutely. (39:45) So on the showing instructions, a lot of times I will have it listed as leave the home, leave lights or home or however the circumstances as found. (39:56) Um, because what we've experienced now in this day and age where a lot of hybrid or remote workers are home and they can set it perfectly, um, because we were programmed, uh, you know, a while back where we would turn off every light.
 
(40:08) But now, you know, we don't know if there's maybe a showing right behind us and the way that we've arrived is how the seller wants that house set up for the next buyer to come in. (40:19) So yeah, we can be very specific, um, as a listing agent on, on, you know, how to instruct the buyer's agent to see the house and leave it as presented. (40:29) Right.
Mike Mills
(40:30) And again, you are communicating this to your sellers. (40:32) So that way they understand, Hey, here's what's going to sell your house the best. (40:36) Okay.
 
(40:36) Because the whole way you're framing this conversation and the whole, and the reason, because I think prior to these changes that are coming, we, most agents would all have these conversations. (40:45) Like you would talk about it. (40:46) You're never leaving this stuff out.
 
(40:48) The difference now is that now you really, you know, it's in your best interest as an agent from a, from listing side and especially a buyer side when we, you know, when we get to there. (40:58) But from a listing side is to, to have all this very clearly defined because you are, this is part of you selling yourself. (41:05) This is part of you explaining to them why you're, why this stuff is important because you're telling them, Hey, these are the things that you need to do to make sure that your house shows well, here's why you need to do these things.
 
(41:14) And again, we're all getting to the place where the reason I'm asking you to do this stuff is because this is what's going to get you the most value, have the most buyers interested and get you the best dollar for your house. (41:25) And that's, that's what my job is, is to make sure that that happens.
Susan Mills
(41:28) Right.
Mike Mills
(41:28) All right. (41:29) So, um, now let's talk about, so we, we've, we've said, okay, we've got, um, here's what the house needs to be, needs to have to be ready to go. (41:37) Uh, you know, all the repairs and whatever you need to fix.
 
(41:40) Here's what you can expect during your showing. (41:42) Okay. (41:43) And what, what's going to go on there.
 
(41:45) All right. (41:45) Now we get into the other piece of it, which is okay. (41:48) How as a list, as a listing agent, and I going to tell the world that your house is for sale, how am I going to market this property to make sure that you get the best bang for your dollar?
 
(41:56) So talk a little bit about that.
Susan Mills
(41:58) Well, I mean, that's where your unique value proposition comes into play. (42:02) Are you a drone person? (42:03) Are you a social media person?
 
(42:05) Are you a networking person? (42:06) What specifically can you do? (42:08) That's going to bring the value to the sale of the home.
 
(42:11) Now, of course, the must do is, is you've got to put it on the MLS, right? (42:15) So, um, that is a little bit confusing because there are opportunities for individuals to list their house on the internet. (42:23) Um, but where the MLS is a little different is that, you know, it's an agent only tool and we've got specific filters that can really get down to some very nitty gritty specifics.
 
(42:36) Um, and in terms of bedrooms, pools, neighborhoods, yeah, a lot of those things. (42:41) And then that in turn will push out to the third party sites. (42:45) Now, believe me, that is not a perfect system.
 
(42:47) Um, it's gotten a little better on how the MLS is structured for particularly like full baths and half baths at three car garages sometimes get messed up. (42:57) So, um, what I'll do is after I put the listing in the MLS and it pushes off to the third party sites, I'll check the big ones. (43:03) I'll go to roller.com and Zillow and, um, you know, Redfin and all of that to make sure that it's right. (43:08) There even is like a back agent portal into Zillow that says, Hey, I'm the listing agent on this specific property. (43:14) This information didn't, um, didn't export properly out of the MLS. (43:18) Can you please fix it?
 
(43:20) Because we know, you know, consumers don't have access to the MLS. (43:23) Um, so, you know, things like that.
Mike Mills
(43:25) And that's, that's important because if you're missing something, like if, if, if it didn't say that it was a three car garage, even though you put that in the listing and it didn't port over to Redfin or Zillow or homes.com or whatever the case may be, well, that's going to eliminate a certain amount of buyers that would otherwise look at your house because they're specifically looking for a three car garage. (43:41) Right? (43:41) So again, part of your service as marketing your property is not only am I putting it on the MLS, which is a portal that only agents have access to, you know, you have to be a licensed realtor in order to list a house on the MLS, but also I've got to make sure that all of the sites that consumers can access that information is correct.
 
(44:00) So that's what I'm going to do for you. (44:01) I'm going to put it on the MLS because I want to make sure that, you know, realtors that can also access this, but I'm also going to make sure that all the other sites that someone can access, I can go on there and double check and make sure that it all ports over correctly. (44:13) And if it doesn't, then I can go back in and get it fixed because I've done that before.
Susan Mills
(44:16) Yeah, absolutely. (44:17) I mean, that's something that's really important. (44:19) And, you know, like for me, I'm blessed because I have a really great broker who is very, very adamant on our expertise in the area.
 
(44:31) Like, what is your competency? (44:33) And so I prefer to refer agents if I have a potential buyer or seller in a market that I am not competent. (44:44) So for me, being a local market expert is something that I bring to the table that I hope that the other licensed agents are doing.
 
(44:52) So part of that is I live in Mansfield, so I'm a member of every mom's social social group, every networking group, every media group, every buy, sell, trade Mansfield Mansfield moms.
Mike Mills
(45:06) What's it with Mansfield moms?
Susan Mills
(45:07) You know, all of those things. (45:10) I'm friends with a lot of great agents. (45:12) So like my social media, like I don't even need to be on a broker page because, you know, all the great listings come through because I've friends and have worked with some great agents in the area.
 
(45:24) And that kind of boots on the ground is not something that you can really replicate very easily. (45:30) So you know, being a true market expert being really competent and where you're buying and selling is certainly something really again, you have to explain this.
Mike Mills
(45:36) You have to share this. (45:37) You have to write this out. (45:38) You have to tell your, you can't just say I'm a marketer.
 
(45:41) I mean, you've got to tell them why and how.
Susan Mills
(45:42) Yeah.
Mike Mills
(45:43) Yeah.
Susan Mills
(45:43) Well, how do you know about me?
Mike Mills
(45:44) Yeah.
Susan Mills
(45:45) Oh, because she's in this group or she volunteers with the PTA or she's booster club president or whatever it is. (45:50) And also to, oh, she's a genuinely good person. (45:54) Right.
 
(45:54) Like that's something I guess maybe is debatable. (45:57) I don't know. (45:57) But, you know, that that's really important.
 
(46:00) And then, you know, maybe, maybe you're the best open houser that there ever was.
Mike Mills
(46:06) Right.
Susan Mills
(46:07) You know, that could be something that could be your own open houser.
Mike Mills
(46:10) I like that.
Susan Mills
(46:11) Your own specific value proposition. (46:14) I have clients that prefer to not have open houses. (46:18) I have clients that would like to have an open house every week.
 
(46:20) It doesn't matter to me. (46:21) I'm happy to do whatever, whatever they want. (46:23) But you just have to be really clear.
 
(46:25) What is it that makes you special? (46:27) What makes you set apart?
Mike Mills
(46:30) You have to. (46:30) And I think you can give options to write. (46:32) You can say, hey, look, you know, if you want to do open houses, we can do this.
 
(46:36) We can do it. (46:36) This is the way that I do them. (46:38) This is how we when I when I think the best times of doing this are, you know, I think giving the client options because everybody's going to market the property different.
 
(46:47) Right. (46:48) And so I think that's where you're when it gets to the this is my unique value proposition. (46:52) That's where it plays a big role, because you as an individual have unique skills that someone else may or may not have.
 
(46:59) And so this is the place where you really want to highlight that stuff, because that's what's going to endear you to your clients and get future referrals, because they're like, hey, Susan, if you want to sell your house in Mansfield, like she knows everybody. (47:11) So sell with her because you're going to get multiple people involved. (47:13) Or, you know, this person, you know, did it open house, you know, four times throughout the property and had this really cool process of getting people in and keeping their data and following up with them and all that kind of stuff.
 
(47:24) And so whatever it is that you are really good at, then this is the place where you want to highlight that and explain what you're going to do, how you're going to do it, the time spent in doing it, and even sometimes some of the costs that you're going to incur going through that kind of like the photography. (47:38) Right.
Susan Mills
(47:38) Well, yeah. (47:39) And, you know, part of being plugged into the community is, is also what, what tradesmen, what vendors, who are you relying on? (47:46) How can you be an excellent referral source to your seller?
 
(47:49) Right. (47:49) That's really important.
Mike Mills
(47:50) Because you've created relationships.
Susan Mills
(47:51) Because you've created relationships.
Mike Mills
(47:53) And these are people that are in the community that you know, that you trust, that you've already done work with before. (47:58) So you're not vetting out somebody new, which again, goes back to why are you important in this process? (48:03) Why are you necessary?
 
(48:04) Why is the money that you're, why, what is, what do you bring to the table that's so important to make sure that your sellers understand that so they understand exactly what your money value is worth?
Susan Mills
(48:14) Yeah, it's, it's not even surprising to me anymore. (48:17) Anytime anything in terms of a seller needs something done, it's rare that they even use their own resources. (48:23) They're like, who do you know who can maintain my yard while I'm traveling?
 
(48:27) Or who do you know who can make this repair? (48:29) Or, you know, X, Y, Z.
Mike Mills
(48:32) You're a connector of people.
Susan Mills
(48:33) Exactly.
Mike Mills
(48:33) Yeah, you've built the relationships. (48:35) You know, these people. (48:35) So now you're putting them together.
 
(48:36) And that's the other piece. (48:37) Again, here's my network of people. (48:39) Here are the landscape folks.
 
(48:40) Here's my electricians. (48:42) Here are my, you know, all of the people that I have relationships with, that I can help with this process and help you fix something. (48:49) I can help you maintain something.
 
(48:50) I can make sure that the when the inspector comes in, I can tell you what you can expect, how he's going to put it together. (48:55) All of this stuff. (48:56) Again, if you have this, you know, presented and written, this all goes back to 20 pages of, oh, my gosh, I could do this.
 
(49:03) I couldn't ever imagine trying to do this on my own. (49:05) There's so much involved that I never even considered as a seller. (49:08) I just thought it was just throw it up on Zillow and it all works out well.
 
(49:11) Well, no, it doesn't. (49:13) You know, these are all the things that are involved with it. (49:15) And your job now, it had always been this way, but especially now, is to clearly communicate this in a way that they will remember and understand the value.
Susan Mills
(49:23) Absolutely.
Mike Mills
(49:23) All right. (49:24) So now, now it comes down to, all right, we've, we've told them what needs to be fixed. (49:29) We've told them what to expect in listing process.
 
(49:30) We told them how we're going to sell this home and why you're so good at it. (49:34) So now we have the hard conversation or the easy conversation sometimes, which is, all right, what is the house actually worth? (49:40) Okay.
 
(49:41) So tell me what your, what your philosophy and how you handle that piece.
Susan Mills
(49:45) The most important thing, and this has really pulled me out of my comfort zone because I am the biggest people pleaser.
Mike Mills
(49:52) Yes.
Susan Mills
(49:52) So when somebody says, I want to list my house for $750,000, I really want to get $750,000 for them. (50:00) It has very much pulled me out of my comfort zone to be very clear and direct because if you're going to hire me, then that's my obligation to you. (50:11) And so there's, I personally like to give a range when I'm pricing a house.
Mike Mills
(50:17) Okay.
Susan Mills
(50:17) I like to give, well.
Mike Mills
(50:20) A range or like different, different ways to do it.
Susan Mills
(50:23) Well, I mean, it kind of depends. (50:25) And a lot of it has to do with the price of the house. (50:28) Right.
 
(50:28) So for me, typically I'll sell more expensive homes. (50:32) And so a range is better because when you're talking big numbers.
Mike Mills
(50:38) Right.
Susan Mills
(50:38) The span is different.
Mike Mills
(50:40) Yeah.
Susan Mills
(50:40) When you're talking about.
Mike Mills
(50:41) $20,000 is a lot of money, but it's, it's a, it's a whole lot of money on a $300,000 house. (50:46) It's not that much money on a million dollar home.
Susan Mills
(50:48) Right. (50:48) So, so that's about perspective. (50:51) So there's, and this comes back to the timeline, which is the thing that we talked about at the very beginning.
 
(50:57) Why are you selling and when do you need your house sold? (51:00) Because that is a really key factor in how we're going to price the house. (51:04) So whether that's in a very aggressive pricing strategy, whether we're going to try to sell that home as fast as we can, get your money in the bank and you're onto your next adventure.
 
(51:14) That's option number one. (51:16) There's kind of the average safe move, which is just kind of a, a general based on the recently sold, not really taking a huge comparison on the home's features or things like that. (51:28) Kind of just a safe space, average market price.
 
(51:32) And then you're a little optimistic. (51:35) You're being, you're thinking that your house is way better than the 20 other houses that have sold for whatever reason that is. (51:43) And so we can try to get to that.
Mike Mills
(51:48) Yes.
Susan Mills
(51:48) But I'm meaning to be realistic with you that this is, I'm not saying we're not going to get it.
Mike Mills
(51:55) Yeah.
Susan Mills
(51:55) Just saying.
Mike Mills
(51:56) Yes. (51:57) Yes. (51:57) It might be a little bit of a challenge.
Susan Mills
(51:59) Yeah. (52:00) And you know, so one thing too that's really important to consider is that it's not necessarily what somebody is willing to pay for the house. (52:06) It's what the bank is willing to give that person to buy the house.
 
(52:10) And you're obviously the expert with that in terms of the lending piece. (52:14) But the appraisal means a lot because your house may be overpriced per square foot, but the most affordable in the neighborhood and somebody is dying to get into that neighborhood and they're willing to pay a premium. (52:30) And then 10 days before closing, you know, you've accepted this great offer.
 
(52:35) Cool. (52:36) But also there's an opportunity that the house is not going to appraise. (52:40) Right.
 
(52:40) And what people don't understand is that what you're going to have to have in that circumstance is not only your down payment and your closing costs, but if the seller doesn't renegotiate the price, the difference between what the house appraised for and the contract price. (52:54) Right. (52:55) And that gets really stressful.
Mike Mills
(52:56) Well, and this is part of explaining, again, your value, your brain, right? (52:59) You're telling them, hey, look, I've been through this. (53:02) Okay.
 
(53:02) And I think a lot of sellers think, oh, well, you know, if it doesn't appraise, they agreed to pay, you know, 750. (53:07) So they're paying 750. (53:08) It's like, no, I mean, they can.
 
(53:11) And they certainly, you know, that's an option, but they may not be able to. (53:15) They may have never intended because the difference because realize the bank and this again, you're telling this as a listing agent, the bank is only going to lend off what the appraised value is. (53:23) They're not going to lend off of what the client offered to pay.
 
(53:26) Now the client or the buyer can pay over the appraised value if they want to. (53:30) Right. (53:30) And there are some stipulations in there where depending on the down payment, there's a few things that you have some legal opportunities there.
 
(53:37) But either way, they may not be able to. (53:41) Right. (53:41) And as a lender, I can come up with a lot of ways to which somebody doesn't qualify for a house.
 
(53:45) Right. (53:45) So if the house comes in 50,000 or 100,000 short again, we're talking million dollar homes or whatever. (53:51) Right.
 
(53:51) Well, then if they don't have an extra hundred grand sitting in the bank to put down, then they can't. (53:55) Right. (53:56) So this is another avenue for you to be able to say, hey, look, I know you want this price for this house and you think it's worth this much.
Susan Mills
(54:04) And somebody may very well be willing to pay that.
Mike Mills
(54:06) But we could also run into a hurdle because of appraisals, because based on what I've run, my comps, my CMA, everything that I've put together for you, this is where I think it's going to appraise. (54:19) OK, this is probably pretty close. (54:20) And if we get this, maybe they could.
 
(54:23) And by the way, you can tell them, hey, the appraiser gets the contract when they go appraise the property. (54:28) They have the contract in hand. (54:30) They know exactly how much you're offering to pay for the house.
 
(54:34) Right. (54:34) So so they know they have a target to shoot for, so they don't get there. (54:39) There's a reason.
 
(54:40) And and you need to make your sellers aware of that fact, because that that helps you in the negotiation of, OK, what do we want to list this house for? (54:48) And, you know, here's my three strategies. (54:51) But this optimistic strategy, here are the hurdles we could run into for that.
 
(54:56) And you need to be aware of that because I've had this happen before. (54:59) This one time it was this and this one time. (55:00) This is when you want to give those stories and explanations and examples of what happened.
Susan Mills
(55:04) Well, absolutely. (55:04) And at the end of the day, I work I work for my seller. (55:08) I'll do within reason pretty much what they want in terms of the listing.
Mike Mills
(55:12) Can I get that same?
Susan Mills
(55:14) We'll talk about that later. (55:16) But it's really important just to be really clear with expectations. (55:21) And I've had clients that are like, you know what, it's fine if if I'm if I list it for this and I get a buyer and it doesn't appraise, then I understand what you're saying and we'll renegotiate.
Mike Mills
(55:32) Right.
Susan Mills
(55:32) And as long as you're OK with that and you're comfortable with that, I'm comfortable with that, too. (55:37) There have been circumstances where a house is so unique that there are features that I really don't know how an appraiser is going to view it. (55:45) There's not any comps.
 
(55:47) I mean, I'm digging around going 10 miles from the subject property or, you know, just trying to do everything I can to be reasonable. (55:54) I've had to put appraisal packets together so that I can have something already ready for an appraiser to come in. (56:00) That's something that I am happy to do and would like to do because it's in everybody's best interest for this house to appraise.
 
(56:06) So, you know, that as long as you're as long as you're up front with it. (56:11) You know, one thing I do want to circle back on, though, is that if if a client does have a tough type timeline on selling and they go with the very aggressive pricing, that could work out in their in their benefit. (56:26) Because if you're underpricing it, then.
 
(56:30) You know, a lot of interest, you're going to have a lot of interest. (56:32) That's exactly right. (56:33) So you might be going back up to what maybe the average would have been or possibly even the optimistic pricing strategy, just depending on how the market receives the house.
Mike Mills
(56:43) And this is where, again, as a listing agent, you want to present this in some sort of a written form to say, here's my aggressive pricing strategy. (56:51) Here are the benefits to it. (56:52) It might sell fast.
 
(56:53) It might sell above what we're asking for. (56:56) We might get into a bidding war. (56:57) Here's my average pricing scenario.
 
(57:00) It might take this long to sell it. (57:01) It might take 30 days as opposed to two or three weeks. (57:04) Here's my optimistic pricing point.
 
(57:06) It's going to take a certain buyer in a certain situation with all these. (57:09) So it might take three to six months to sell the house in this. (57:12) So giving, you know, the pros and cons of each approach, giving the price of each approach and then giving the timelines of each approach from your professional opinion is going to, again, play a big role in demonstrating the value in your knowledge.
 
(57:25) And I think a great, like a great phrase I think to use often is, well, based on my experience and based on what I know about doing this and based on my previous, you know, knowledge of this, how this all plays, this is how I expect it to work out. (57:38) Because you're, it's like we've talked about before. (57:41) You know, when you hire a plumber to come fix your toilet and it takes him, you know, five minutes to do it, right?
 
(57:47) And he charges you 350. (57:48) You're like, you know, but it would have taken me three days to do it and probably flooded the bathroom and did all this stuff along. (57:54) So you're not paying him for his time.
 
(57:56) You're paying him for his experience and his expertise because he's been doing it for 20 years or 10 years or however long he's been doing it.
Susan Mills
(58:03) That's right. (58:03) Well, and another thing too is I do not have a crystal ball, right? (58:06) I have data that I'm trying to analyze and I'm doing my absolute best to use my experience and my expertise to steer you in the right direction.
 
(58:13) But the reality is, is that the price of the home is a moving target and it's a moving target all the way through because a pending house, which means that it's already under contract but has not closed, could drastically change.
Mike Mills
(58:27) Right. (58:29) Okay. (58:30) So, um, we're getting close to the end here, so we're going to kind of wrap it up with the, with the hardest part of this, which is now we're going to be talking about money.
 
(58:37) Okay. (58:37) So now we have told them what they need to do to get their house ready to list. (58:41) We've told them what to expect when they're listing it and showing it and what goes on there, told them how we're going to market it.
 
(58:46) We've told them what we think the pricing is and why. (58:49) Okay. (58:49) Now we got to say, okay, here's how much money you're going to walk away.
 
(58:52) And this is, we do this at the end, obviously, because in this process, we have to build up all of this value and understanding and expertise to be able to get down to the bottom line and go, okay, this is how much you can expect to walk away from with this transaction. (59:05) So how do you have those conversations?
Susan Mills
(59:06) Yeah. (59:06) So that's really black and white. (59:08) Anything in money needs to be in black and white.
 
(59:10) That's why everything in real estate is signed and initialed. (59:14) It's the right strategy to put everything in writing as best as you can. (59:21) There's a preliminary seller net sheet that we put together that list out as best as we know it at that time.
 
(59:28) I mean, a lot of this is a moving target, but you know that as of right now, the buyer's agent commission, the listing agents commission. (59:37) Now the new rules are going to make that a little bit tricky. (59:39) So how we go about doing that is maybe going to change.
 
(59:45) But what prorated taxes are and how we anticipate the transaction going, basic expenses of the transaction that are black and white. (59:57) So we put that in writing in a seller net sheet based on how we anticipate it going. (1:00:02) And then, of course, once an offer comes in the door, then we can revise that based on that specific offer.
Mike Mills
(1:00:07) And I would even suggest to go as far as doing a net sheet for each one of those scenarios, your aggressive pricing, your average pricing, your optimistic pricing. (1:00:15) Now, obviously, the optimistic one is going to look great. (1:00:19) But if you really want to go the extra mile, you can also say, OK, here's our I know this optimistic one looks like you're walking away with an extra fifty thousand dollars than you would on my aggressive.
 
(1:00:27) That's true. (1:00:28) But let's look at the holding costs on this, because if you're having to sit here for six months and wait versus moving. (1:00:34) Now, if you don't if you're not in a hurry, you want to stay and keep doing that.
 
(1:00:37) Great. (1:00:38) Right. (1:00:38) No problem.
 
(1:00:39) There isn't a lot of holding costs. (1:00:40) But if you're in a hurry to get out of here and you've got to be somewhere where now you're paying rent over here, you're paying, you know, this house mortgage. (1:00:47) Now you've got two mortgages.
 
(1:00:48) Now you're paying utilities in both spots. (1:00:50) So. (1:00:51) So, yeah, the number looks bigger.
 
(1:00:52) But here's the holding costs and here are the costs for doing that as well. (1:00:56) And again, breaking that all down. (1:00:57) So it's very clear to the seller as to exactly, you know, yeah, I like this optimistic pricing structure, but I understand the risks that come with that.
 
(1:01:05) So let's move in this direction. (1:01:07) And you have to give them the choice to make that decision. (1:01:10) All right.
 
(1:01:10) So so with the pricing, you want to be very specific. (1:01:14) You want to walk through it very clearly, give them all the expected costs and what you think is going to be there. (1:01:19) Of course, everything's subject to change.
 
(1:01:21) There's variations and all this stuff, depending on the price. (1:01:24) Obviously, the if you're doing a commission based or excuse me, a percentage based commission, then your commission as the agent is going to fluctuate based on the price of the home. (1:01:32) And you can explain that if you decide you want to move to a flat fee, which there are some agents that are doing that.
 
(1:01:37) That'll be an easy conversation. (1:01:39) You say, this is what my flat cost is. (1:01:41) If you decide, you know, some people are talking about doing hourly, you know, and we'll see where all this goes.
 
(1:01:46) Nobody knows. (1:01:47) But if you decide to do that, this is the place where you want to go through that as well. (1:01:51) I think right now it's pretty much status quo.
 
(1:01:53) Everybody's staying in the percentage level or, you know, doing it for one, two, three percent, whatever it is you decide that you're going to list the property for. (1:02:00) But but these are adjustments that you're going to have to make along the flight. (1:02:03) The good news is, is that's the easy part to fix.
 
(1:02:05) Right. (1:02:06) Because if you've put together your entire proposition, you've got all the stuff that we've talked about up to this point put together. (1:02:11) Well, then when you start adjusting how you think you want to charge or don't charge, well, that's an easy thing to fix.
 
(1:02:16) You just fix one little piece because you're not having to go back and adjust everything else you've already created. (1:02:22) Now, real quick, before we wrap it up, you know, so after August 17th, all this stuff, all the buyer offer compensation goes away. (1:02:31) So you, Susan Mills, how are you going to handle that conversation when a buyer, when a seller says, do I have to pay a buyer agent commission?
Susan Mills
(1:02:41) Well, one thing that's really important to remember is that that has always been negotiable. (1:02:47) So I would expect that there. (1:02:55) I guess the answer is no, but I would expect to compensate a buyer to offset the expense of them paying for their own agent.
 
(1:03:01) So whether or not a seller is paying the buyer's agent directly or indirectly or possibly a combination, a combination of that.
Mike Mills
(1:03:11) Right. (1:03:12) Well, and it's all going to depend on the market too, right? (1:03:14) Because if we're sitting in a market where rates like, let's say rates go to 8%, God, please don't have that happen.
 
(1:03:20) But let's say that we've got a lender and a realtor living in the same household. (1:03:24) Please don't have rates at 8%. (1:03:26) But let's say that they go to that, that high or whatever.
 
(1:03:28) Well, now you're in, you could very much be in what we would call a buyer's market, right? (1:03:33) Where Dallas, by the way, Dallas Fort Worth, the listings have gone up recently quite a bit. (1:03:38) So there's a lot more homes available for sale.
 
(1:03:40) Some are good, some are bad. (1:03:41) Depends on the area that you're in, but ultimately they have gone up. (1:03:44) And so, you know, when you're looking at a seller or a buyer's market, now buyers have selection.
 
(1:03:50) They have choice. (1:03:51) They can pick, right? (1:03:52) Well, if you're a seller and you need to sell it aggressively, then the conversation needs to be, hey, look, you're going to be better off.
 
(1:03:57) If you're compensating the buyer's agent in this transaction or be willing to. (1:04:02) We can't list it. (1:04:03) We can't, you know, advertise it.
 
(1:04:06) But when I talk to the buyer's agent, when they call me, they're going to ask. (1:04:09) So what do you want me to tell them? (1:04:10) Are you willing to do that?
 
(1:04:11) And up to what level and how much and all that kind of stuff. (1:04:14) Because if you want to sell it quickly, the buyer, it's not that the agent's going to push them in one direction or the other on a property. (1:04:21) It's just the buyer may not have the money.
Susan Mills
(1:04:23) Well, that's the part that is difficult. (1:04:26) It's not that that a buyer's agent doesn't have the willingness to pay their agent. (1:04:32) A lot of buyers don't have the ability on top of the other expenses when it comes to homeownership.
 
(1:04:39) Everything has gotten more expensive.
Mike Mills
(1:04:41) The down payment, the closing costs, everything else. (1:04:43) It's it's up. (1:04:44) So so but that's the conversation you have to have.
 
(1:04:47) Hey, seller, I'm going to get phone calls from buyers, agents, and they're going to ask about the property. (1:04:52) They're also going to ask me your willingness to pay their commission. (1:04:55) What do you want me to tell them?
 
(1:04:56) You know, you can you can walk through the scenarios for them. (1:04:59) But in a seller's in a buyer's market, the more you're willing to do that, the more opportunity for buyers you're going to get. (1:05:07) Now, if the market changes and let's say rates go down to five percent in a year.
 
(1:05:11) Well, now, if we don't have more listings available than we have right now, then there's going to be properties in high demand. (1:05:17) Right. (1:05:17) Then then we're going to get to a place where you're going to have multiple buyers coming in wanting to offer on your home.
 
(1:05:25) So now as a seller, you can discern. (1:05:28) Maybe I don't. (1:05:28) That's part of it.
 
(1:05:29) Like you said, everything's negotiable at that point. (1:05:31) So we were in a place where people weren't paying title policies and people were giving the the amendments to guarantee over appraised value. (1:05:39) We were not that wasn't that long ago.
 
(1:05:41) If we get into that place again, then you can explain to yourself. (1:05:44) Hey, look, in that circumstance, you know, you don't have to if you don't want to.
Susan Mills
(1:05:49) Right.
Mike Mills
(1:05:49) And it's going to be that it's going to be up to the buyer's agent how they handle it. (1:05:53) One thing to keep in mind, too, in this whole thing is that. (1:05:57) With these new rules as a buyer agent, you have to establish your commission prior to showing homes.
 
(1:06:04) So as part of this buyer's listing or this buyer's agreement, if you say buyer, you're going to I'm going to get one percent or I'm going to get a flat fee or I'm going to get our whatever it is. (1:06:14) If the buyer, let's say in the example, the buyer's agent says I'm getting two percent from, however, the seller, from you, whoever. (1:06:20) OK, well, if as a seller, your seller is willing to pay three, it doesn't matter.
 
(1:06:25) The buyer still only gets to they can only get paid what's represented in their buyer's agreement, at least as far as I understand it right now. (1:06:32) So so in this scenario, it's going to be up. (1:06:35) You can tell your sellers, hey, look, how much you pay is going to depend on what the agreement between the buyer and the buyer's agent is.
 
(1:06:42) So that's going to determine how much you would pay if you're willing to pay the buyer's agent commission. (1:06:47) And I guess maybe part of this will be, you know, we get as a listing agent. (1:06:51) I say we as a listing agent, you get a copy of or at least an idea of what the agreement is.
Susan Mills
(1:06:57) Right.
Mike Mills
(1:06:57) Right.
Susan Mills
(1:06:58) Yeah. (1:06:58) There's going to be paperwork. (1:07:01) Yes, there's going to be more paperwork, paperwork.
 
(1:07:02) But it really is in the best interest of the consumer for everybody to be really, really clear, because that is something that is interesting that I think that we have skimmed over for a long time. (1:07:11) That our buyer's rep agreement has always said, yeah, that if the if the listing broker does not pay, the client is responsible. (1:07:20) Right now, whether or not the buyer's agent has held a client to that, I don't know.
 
(1:07:26) I'm sure that's happened before, but it's just it wasn't a conversation that we ever had or needed to have. (1:07:33) And also, too, I mean, well, I'm kind of going on a tangent, but in terms of when the market was really aggressive and especially investor clients were only listing two percent buyer's agent commissions. (1:07:42) I'm certain that all of those buyers agents had three percent representation agreements, but they weren't holding them to that.
Mike Mills
(1:07:49) Right. (1:07:49) Right.
Susan Mills
(1:07:50) So, I mean, this has always been a negotiation. (1:07:52) We're just having to have hard conversations. (1:07:54) We're having to be more transparent.
 
(1:07:56) We're having to do more planning. (1:07:58) And that and the reality is we don't know how it's all it's all going to happen. (1:08:03) But one thing that I do think is really important is that I like to talk to and remind my clients is that this is not an adversarial relationship.
 
(1:08:10) It's not them against us. (1:08:12) It's collaboratively. (1:08:13) How are we going to meet everybody's goals?
 
(1:08:15) And how are we going to do that with the least amount of heartburn possible?
Mike Mills
(1:08:18) Right. (1:08:18) And the key to all of this, again, is that if you're clear up front with everything that you're doing, you're clear with all of the timelines, you're clear with all the expectations. (1:08:28) And again, you've written it all out in some form or fashion and you're presenting this to your sellers, then this is going to take the stress away from the transaction.
 
(1:08:36) It's going to take away any kind of anxiety that they're going to have about what what exactly is expected of them. (1:08:42) They're going to understand why it's so important that you're there. (1:08:45) Right.
 
(1:08:45) Why you need to be representing them, because. (1:08:49) In a way, you know, it's good that it's a little overwhelming because it is it's a lot of stuff, but that, again, is just one more indication like, man, I'm so glad you're here. (1:08:57) I'm so glad I have you, because if I didn't, all of this stuff, I wouldn't have thought of 80 percent of it.
 
(1:09:04) And the other 20 percent that I maybe would have thought of, I would have had to have done. (1:09:07) And that would have, you know, not exactly at the top of my list of things to do.
Susan Mills
(1:09:11) Yeah, well, it's really interesting because it's like kind of the sad part about real estate is that there are clients that I see, you know, socially or whatever. (1:09:17) But during that time of the transaction, like we bond, like we talk every day, multiple times a day, calling, texting. (1:09:26) We're allies in this together.
 
(1:09:27) And then the house closes and I'm like, oh, I guess we're not friends anymore.
Mike Mills
(1:09:32) And then you just just see them on Facebook.
Susan Mills
(1:09:35) And that truly is sad because that is one of my very favorite things about real estate is building those relationships.
Mike Mills
(1:09:42) Well, and the goal of all this is you're trying to get referrals, right? (1:09:45) That's what we're here for. (1:09:46) We're trying to get do such a great job and be so clear with what we do that they tell their friends, their family, everybody that you were amazing.
 
(1:09:54) And, you know, it's funny, I think because everybody is so most agents are pretty referral heavy and they work with their friends and they don't. (1:10:01) I think, you know, people will kind of cut some of this short when they're working with because like, oh, they know, you know, like I'm going to take great care of them. (1:10:09) But I think in those circumstances, it's more important to go above and beyond than what you would do for somebody that you don't know.
 
(1:10:15) Because, you know, these transactions, like you said in the beginning, it's such a personal transaction that that could make or break that friendship, that relationship, that whatever. (1:10:24) Because it's such a personal thing that if you weren't clear about everything that you were doing up front, you just assume that they knew and that they assumed that you were going to do something that you didn't say or whatever the case may be. (1:10:35) You might lose a friend over that stuff.
 
(1:10:38) So it's even more important.
Susan Mills
(1:10:39) It's really important. (1:10:41) And that is a really good point is, you know, be discerning on that too, because you don't want a bad real estate transaction really affecting other parts of your life.
Mike Mills
(1:10:53) No, no.
Susan Mills
(1:10:54) That's not fun.
Mike Mills
(1:10:55) No. (1:10:55) And, you know, to cover yourself and to make sure that you're, you know, in the best situation with all of your clients in the future. (1:11:01) This is the thing that you have to do.
 
(1:11:03) You have to go through, you have to put this together, you have to sit down, you have to think about it. (1:11:07) Hopefully you can use this episode as a guide to kind of help you remember. (1:11:11) Oh, yeah, I forgot.
 
(1:11:11) I do that. (1:11:12) Oh, yeah. (1:11:12) Because, look, we all know what you do while you're going through the process, but you don't remember all of it in the moment through your conversations, right?
 
(1:11:19) It's like you have a, you're in your house and you know that you need milk. (1:11:23) But if you don't write it on your grocery list and remind yourself when you're at the grocery store to get the milk, at least for me, you're going to forget or you could forget. (1:11:31) And so that's why it's so important in, you know, Paramount to put all of this stuff in writing.
 
(1:11:37) So when you present it to your clients, you remember everything that you do. (1:11:42) You go over it all in great detail and you don't miss anything. (1:11:45) So that way it's clear what you're doing.
 
(1:11:47) The expectations are set properly and everybody walks away feeling very, very comfortable about what's happening and what they're paying for it without any concerns. (1:11:55) Because, again, when you get to the last day and they're signing on the bottom line and they've got, they've sold their home and, you know, they're getting that big check in the bank or they're moving off to their new adventure. (1:12:04) You want them to have a wonderful feeling and a wonderful taste in their mouth.
 
(1:12:07) So that way you continue to do business in the future. (1:12:11) That's right. (1:12:12) All right, dear.
 
(1:12:13) Well, we're over our time a little bit, so I appreciate you coming and doing this with me. (1:12:18) I know you weren't really excited about it, but I am excited.
Susan Mills
(1:12:22) I was excited. (1:12:23) It was fun, but that also did force me to kind of review my policies and procedures, too, which is something that's evolving. (1:12:30) We can't just sit on cruise control anymore.
Mike Mills
(1:12:32) Yeah, we got to get out there and be professionals in this thing and present who we are to our clients because, you know, that's how you're going to survive. (1:12:39) Business is slower right now. (1:12:41) It's, you know, it's been on the decline some and we're moving into the summer, so it will pick up a little bit.
 
(1:12:46) We're getting more listings. (1:12:47) You know, there's going to be more traction rates of come down a little. (1:12:50) They're moving around a little bit, but but they're getting better.
 
(1:12:54) So, you know, once these things take place, it is going to be out there in the in the zeitgeist of culture, letting people know that, hey, agent commissions, they've always been negotiable. (1:13:05) But now it's going to be out there and people are going to ask questions and you have to have answers to those questions.
Susan Mills
(1:13:09) Don't pretend it's not happening. (1:13:11) It's here.
Mike Mills
(1:13:11) It's here. (1:13:12) It's happening. (1:13:12) You got to be ready for it.
 
(1:13:13) So. (1:13:13) All right, guys. (1:13:14) Well, thank you to everybody that stuck around with us.
 
(1:13:16) I know we didn't get this was this was a technical one. (1:13:20) We didn't get into the whatever the ins and outs of the Susan and Mike life. (1:13:24) But, you know, maybe on another.
Susan Mills
(1:13:26) Who cares about that?
Mike Mills
(1:13:27) That's right. (1:13:27) Nobody cares. (1:13:28) We're going to do this again in a few months or so.
 
(1:13:32) We're going to go into on the buyer side of things. (1:13:34) So we're going to do a similar episode about how to do your proposition to a buyer prior to the August 17th date. (1:13:41) So hope you get ready and tune in for that one.
 
(1:13:43) Otherwise, I hope everybody has a great week. (1:13:45) School's out for most places. (1:13:47) We were out of school today.
 
(1:13:48) So now it's summer. (1:13:49) That could be a good thing or a bad thing, depending on who's living in your home. (1:13:53) But summertime is here and everybody's excited.
 
(1:13:56) So everybody have a great summer. (1:13:57) Would you like to say anything before we go, dear? (1:13:59) She's full of words today.
 
(1:14:00) All right, guys. (1:14:01) I appreciate everybody. (1:14:02) We will see you back.
 
(1:14:03) I'll have my market update out on Tuesday. (1:14:06) We'll be talking more about rates, as always, market trends and go into a few other topics. (1:14:10) So hope you guys can tune in and we'll see you then.
 
(1:14:13) Goodbye, dear.
Susan Mills Profile Photo

Susan Mills

Realtor

Susan Mills is a highly esteemed luxury listing specialist with extensive experience in the North Texas real estate market. Known for her exceptional skills in staging and design, Susan brings a unique touch to each listing, ensuring homes are presented in the best possible light. Her deep-rooted passion for real estate and design started as a hobby and has seamlessly transitioned into her professional career. Susan is not just an expert in property aesthetics; she is also a master communicator and dedicated professional who prioritizes her client's needs and goals. As an active member of the Mansfield community, she leverages her local market expertise and vast network to provide unparalleled service. Additionally, Susan's comprehensive approach to real estate, including her meticulous attention to detail and commitment to quality, makes her a trusted advisor and ally in the home selling process.