My point proven!!!

By
Real Estate Agent with Coastal Palmetto Realty LLC

In one of my earlier post (The Big Secret to Success in Real Estate is only Two Words...) I wrote about how  important Honesty and Pricing were in your business.  Today I proved my point and wanted to share the experience with all you rainers...

Ok I had some Developers contact me some time ago about buying several lots I had in Southwood a subdivision I have listed.  They were thinking of building a few spec homes in that neighborhood while they waited for the Beach Market to stabilize...The smartest thing I have heard from them to date....

 So I give them a CMA of what homes are selling for...Current number of lots on the market, Selling price of the competition lots, Current attrition rate, what price range is over supplied , where the gaps in the market are, etc, etc, etc...  I guess they have never dealt with a land broker before, because no one had ever broken down the numbers like that for them before.  Like I told them this is what the big builders are doing, and why they are so successful....It's the numbers, and as a developer if the numbers don't work you walk away...

Anyway a few weeks later they called me into their office and ask me to analyze a small subdivision they were planning to do...What a mess...  First they paid way, and I mean WAY too much for the property.  It was in the nicest area of Loris, but still there is now way you can make those numbers work.  Of course the agent that sold them the property told them it was a great deal and they could make BIG BUCKS on this deal.  Yeah Right!!!  Not only have they paid to much for the property, but they have had it engineered twice...and paid interest for over a YEAR NOW!!!

 I put all my numbers together present the complete package...And the first words out of my mouth are you guys are screwed!!!  You can imagine how the rest of the meeting went...A lot of blaming, pointing fingers, and telling me how wrong I am...So I ended my presentation by telling them what I thought the best course of action was....Mind you I have the NUMBERS to back up what I am telling them...Then I tell them they should talk to several other agents and see what there numbers say...But make sure they show you the numbers. 

A few weeks later they call me and say I'm right and they want me to help them cut their losses.  I come back in, and I'm sure to ask how it went with the other agents.  Of course they all said they could sell the property for what they wanted for it, some even more...But not one of those agents had any numbers to back it up...

So we talk pricing and they are still trying to list them for more than the property is worth...What you have in the property has nothing to do with what someone will pay for it...So for the second time I walk away from listing these properties.  They call and we argue back and forth for a couple of days...Finally feeling that they were getting now where with me, (after all negotiating is what we do for a living) they give in.

I list the properties and almost immediately I get an offer on two of them...We worked out the fine print today nearly full price, cash deal, with no contingencies, closing in less than 14 days...And I have someone flying in this weekend to look at the last one.  No rocket science just honesty and pricing.  That is all it takes...

I've said it before if you are honest to people and price properties correctly they sell.  Not only was I able to move the property fast saving them money on interest payments, but because they listened to me I discounted my rate just to show I'm fair.  You can't even imagine how ecstatic these guys are... They think I some sort of miracle worker... They now what me to do the numbers on three more properties they are starting to develop.   Guess what guys, I bet they listen this time. 

Try this sometime...Don't be afraid to tell someone they are going to lose money...If you're honest and can back it up with some solid numbers they can not refute you...Stick to your guns, and they will respect you.  List and Sell the property and you have a client for life!!!

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Rainmaker
346,180
Michael Eisenberg
Bellingham Real Estate Broker
eXp Realty
Congradulations, Great job you did, and it worked out for you and your client, Honesty is still the best policy
October 24, 2007 01:33 PM
Rainmaker
334,601
Ann Cummings
Portsmouth NH Homes - Service With a Smile!
RE/MAX By The Bay - NH and Maine

Hi Brandon - this is a great, well-written post, and I love this sentence of yours:

< If you're honest and can back it up with some solid numbers they can not refute you...Stick to your guns, and they will respect you. >

That is SO true, and you will respect yourself as well, and that's equally as important.

Great post!
Ann

October 24, 2007 01:53 PM
Rainer
29,049
Mary Smartt
Smartt Moves with Mary Smartt
Lawton Associates / www.LawtonAssociates.com
This is a great post, very well written, and important to share.  Now more than ever we need to prepare our sellers for the realitites of this changing market.  And, that is a great line--"What you have in the property has nothing to do with what someone will pay for it".  Mind if I borrow it?
October 24, 2007 02:06 PM
Rainer
47,177
Lori Gilmore
Realtor - Will County Illinois
Realty Executives Success - Short Sale Professional
Brandon -- Agents like you will not only survive tough markets, they will flourish long term!  Too many agents are trying to buy listings to fill out their inventory. . .overpriced inventory that will sit.  They get the listing and lose the client.  Your honesty and know how will win over the clients that are worth working with.  Great post and great job!
October 24, 2007 03:44 PM
Rainmaker
605,739
Sharon Simms
St. Pete FL - CRS CIPS CLHMS RSPS
Coastal Properties Group International
Good for you, Brandon. If they don't list with you, I'll bet after six months they will - and then you'll get it at the right price.
October 24, 2007 06:09 PM
Rainer
32,275
Brandon Causey
Realtor, Coastal Palmetto Realty LLC
Coastal Palmetto Realty LLC

BLR Guy....Thanks for the MEME...LOL

Vicki you are on the right track and will do fine...

Lori  Thanks for seeing my points I see that from other agents all the time.

Mary  You can borrow that anytime.  It is just the truth.

Ann  I like that line too.  Sometimes it's tough to stick to your guns, but you have to do it...Otherwise you are only hurting your client as well as yourself.

October 24, 2007 09:13 PM
Rainer
120,136
Ronald Gillis
CNSA Southwest Florida. Notaries, Port Charlotte, 941-7-NOTARY
Southwest Florida Notaries (Mortgage Notary Signing Agent)

It sounds like it really worked well for you, congrats & good luck with more business with them!

Signature

October 24, 2007 10:22 PM
Ambassador
895,064
Missy Caulk
Realtor - Ann Arbor Real Estate
Missy Caulk TEAM
Great job, I doing it right now on 20 lots. Well, I have the same success you did ? I hope so, if not I walk away.
October 25, 2007 06:12 AM
Rainer
14,979
Scot Thrapp
Coastal Palmetto Realty
Way to go Brandon!  Now you just have to educated couple hundred other developers in the area and we can get back to smart Real Estate!
October 25, 2007 08:47 AM
Rainmaker
46,013
Sarah Nopp
Ahh- you are so mean to your builders! Not telling them what they want to hear!
October 25, 2007 10:24 AM
Rainer
32,275
Brandon Causey
Realtor, Coastal Palmetto Realty LLC
Coastal Palmetto Realty LLC

Sarah,

I'm not mean...I think my mom called it tough love...

October 25, 2007 03:21 PM
Rainer
262,270
Ginger Sala
Wilmington NC Real Estate & Relocation~
Wilkinson & Associates, Wilmington NC

Brandon, The numbers don't lie. Excellent work. Wait till word gets around how awesome you are!

Ginger

October 28, 2007 04:08 PM
Rainer
32,275
Brandon Causey
Realtor, Coastal Palmetto Realty LLC
Coastal Palmetto Realty LLC
Ginger Thanks for the comment.  And thanks for letting me know if it was you or roger
October 29, 2007 09:22 AM
Anonymous #41
Anonymous
Anonymous

Well presented.  I concur that honesty is the best policy.  Be professional, back up your opinion with the numbers and stick to it.  Good job.

By the way, thanks for reading and commenting on Man Shot By His Dog

October 31, 2007 02:38 PM
Rainer
32,275
Brandon Causey
Realtor, Coastal Palmetto Realty LLC
Coastal Palmetto Realty LLC

Thanks for returning the comment love dan...Great post by the way.  I saw a small spot in our local paper

about the same article.

October 31, 2007 05:44 PM
Rainer
262,270
Ginger Sala
Wilmington NC Real Estate & Relocation~
Wilkinson & Associates, Wilmington NC

Hi Brandon I just noticed some of your awesome photos of Ft Fisher on Localism. Great spot for photos .

BTW it's always me, Roger does not do AR..LOL!

Ginger

November 02, 2007 10:16 AM
Rainer
32,275
Brandon Causey
Realtor, Coastal Palmetto Realty LLC
Coastal Palmetto Realty LLC
LOL...It took me a minute.  I love Ft. Fisher.  Before this business took hold of me, I was up there a least once a week.
November 02, 2007 09:12 AM
Rainer
262,270
Ginger Sala
Wilmington NC Real Estate & Relocation~
Wilkinson & Associates, Wilmington NC

Fort Fisher is specila. Are you planning on attending the Bluegrass festival this weekend?

 

November 02, 2007 10:17 AM
Rainer
32,275
Brandon Causey
Realtor, Coastal Palmetto Realty LLC
Coastal Palmetto Realty LLC

No, I don't think I'll make that one. Have to work this weekend.

November 02, 2007 10:15 PM
Rainer
83,712
Mary Bigelow
2010 Letnulls Do It AGAIN!!!!
GLREA

Brandon - this is a very well written post and demonstrates what a quality realtor you are. What you have in the property has nothing to do with what someone will pay for it...

You did your homework and didn't  cave under pressure. You have created Raving Fans by sticking to you guns! There is something (still) to be said for honesty and integrity!! 

December 04, 2007 07:50 AM
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Rainer
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Brandon Causey

Realtor, Coastal Palmetto Realty LLC
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