A recent study was done to examine how word selection in real estate ad copy affected the outcome of the sale. Originally detailed in The Seattle Times, the study came up with some interesting results:

Words matter. Wars have started over them. Civilizations have collapsed because of them. And it appears the speed with which a house sells might be determined by them.As listings grow old on the vine in this flush-with-inventory market and frustrated sellers reach for the slightest edge, the findings of several academics might offer guidance.

For example, a Canadian professor, as part of a broader study on real-estate sales patterns, found that homes where the seller was “motivated” took 15 percent longer to sell, while houses listed as “handyman specials” flew off the market in half the average time. FULL STORY

 

As I reflect on the story, I realize from my own experience how much sense this makes. Most home buyers make emotional decisions, not logical ones. Sure, they’ll buy in an area that makes sense, within a range that makes sense, but when given the opportunity to buy a beautiful home or a value (both within their criteria), most buyers will pay more for the home that captures their heart.

It just goes to show that you have to pay attention – from the words that you use to the agent you choose.

Dennis and I were recently contacted about listing a property that had previously been listed with another agent. While it’s always promising to get a new lead, working properties that have already had market exposure (and didn’t sell) tend to kill the buzz a little. Still, we’re thankful for the opportunity, for as we did the research, we learned quite a bit about the business we conducted in 2006.

One of our responsibilities after getting a lead on an expired property involves researching the previous agent. I won’t say what agency this agent worked for (other than to say it wasn’t RE/Max, nor was he a Realtor©), but his work was shoddy at best. He hadn’t taken any photos of the property, nor had he taken any time to develop any outside marketing for the property. Sadly, like so many agents are perceived, he was merely hoping that sticking a sign in the ground and putting the property on the Multiple Listing Service would be enough. Looking over his productivity for the year, it was interesting to see how his listings fared:

33% Expired
11% Cancelled
56% Sold

Essentially, anyone that chose to list their homes with this agent had a 56% chance of their home selling at all. Researching these properties further, we found that of those that sold, they were on the market for an average of 62 days, and they were selling for 99.88% of the asking price.

This prompted Dennis and I to take a look at our productivity over 2006 – if for no other reason than to show the seller how we compared to their previous agent. Of all of our listings for 2006, 100% of them sold. None of them expired, and none of them were cancelled. Homes listed with us averaged 30 days on market, with a selling price of 102.2% of the asking price.

None of these numbers really get to the heart of what we feel separates us from the crowd, but it’s encouraging to step back and see the effectiveness of our strategies. This year our real estate enterprises incorporated business on Camano Island, Lake Stevens, Bothell, Woodinville, Kenmore, Brier, Redmond, Everett, Sedro Woolley, Edmonds, Marysville, Lynnwood, Seattle, Mukilteo, West Seattle, Snohomish, and Mill Creek. While we aren’t looking to expand our radius of influence (Seattle and Camano are far enough don’t you think?), we are looking to expand our influence in the communities we serve.

100% sold. 102% of asking price. We have ambitious goals for 2007, but please pardon us if we think it might be hard to improve on those numbers. Instead, we’ll work on bringing those results to more people.

Pickett Street – where real estate is more than sticking a sign in the ground.