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Despite reality, sellers (& buyers) remain emotional on price

Homegain recently conducted a survey of 700+ Realtors® nationwide, the results of which surprised me a bit.  It seems when it’s our home, we feel it’s worth more than the home next door.

Delusions of value

45% of homeowners think their homes should be listed 10 – 20% higher than what their Realtors recommend.  Nearly 20% think that their homes are worth 20% higher than their Realtors’ recommended listing price.  In other words, ~65% disagree with your professional opinion.  Opportunistic homebuyers are experiencing a similar disconnect with only 18% of believing homes are fairly priced.

Emotional appraisal vs. reality

Even with the harsh realities of the current market, decisions about selling or buying real estate remain emotional, despite a recent Zillow® poll that showed that sellers were no longer ‘in denial’ regarding the U.S. housing slide.

Will the Stimulus stimulate?

The Obama stimulus package was not viewed favorably by a majority of Realtors.  ~60% feel it will have no impact on home prices or may actually cause home prices to fall.  38% think the stimulus package will stabilize home prices and just 3% believe it will help increase prices.

Reality used to be a friend of mine

How do you win listings when the client has convinced themselves their home’s value is higher than your professional recommendation?  Particularly, if they’ve visited a website that has helped validate their misconception – as Ginny Cain discussed last week.   Mark Eckenrode commented on Ginny’s post “it’s important to remove the website from the playing field altogether, or at least re-frame how the client views the website.”  And, to point out while these resources are a good resource for frame of reference, the data may be inaccurate or stale and it lacks the advantage of neighborhood knowledge.

Armed and dangerous

It seems the biggest challenge is getting the homeowner to convince themselves the value is where you say it is.  You have all the data: CMA’s, recent & historical sales, comps, etc.  And, you are prepared to address the inflated prices provided by the web sites mentioned above.  Now what?

Shhhhh

I’ll bet the most critical communication skill for agents is effective listening.  People don’t buy what you wish to sell. They buy what they need.  The same could be said when trying to “sell” the reality of your recommended listing price.  Once you’ve asked what it is about their home that warrants a higher price than the data warrant, listen.  They may just end up explaining it to themselves.

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Brandie is an unapologetically candid marketing professional who was recently mentioned on BusinessWeek as a Top Young Female Entrepreneur. She recently co-founded consulting firm MarketingTBD. She's held senior level positions with GE and Fidelity, as well as with entrepreneurial start-ups. Raised by a real estate Broker, Brandie is passionate about real estate and is an avid investor. Follow her on Twitter.

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7 Comments

7 Comments

  1. Ro Troia

    March 12, 2009 at 5:27 pm

    This is so true, I can’t tell you how many listing appointments I go on where the seller thinks their home is worth so much more than their neighbors. I have lost listings because I don’t agree with their pricing and I try not to over price a listing just to get the listing! That doesn’t do anyone any good. But I’ve seen a seller list their home with an agent that tells them what they want to hear and then the home sits on the market for months.

  2. Marvin Jensen

    March 12, 2009 at 10:57 pm

    Brandie,

    Sellers always have a long list of items about why their home is worth more than the comparables. The problem is their list is usually not relevant for pricing.

    The solution for unrealistic sellers? Walk!

  3. Brandie Young

    March 13, 2009 at 4:43 pm

    Ro & Marvin – sounds like you two have similar thoughts on this … doing what’s best for the customer isn’t necessarily doing what they want. Even if that means (gulp) walking. I have a feeling you may have both learned that the hard way…

    Cheers!

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Business Marketing

Pay employees for their time, not only their work

(MARKETING) Yes, you still must pay employees for their time even if they aren’t able to complete their work due to restrictions. Time = Money.

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pay employees for their time

The COVID-19 pandemic has inspired a lot of insightful questions about things like our healthcare system, worldwide containment procedures, and about a billion other things that all deserve well-thought answers.

Unfortunately, it has also led to some of the dumbest questions of all time.

One such question comes courtesy of Comstock Mag, with the inquiry asking whether or not employees who show up on time can be deducted an hour’s pay if the manager shows up an hour later.

From a legal standpoint, Comstock Mag points out that employees participating in such activities are “engaged to wait”, meaning that – while they aren’t necessarily “working” – they are still on the clock and waiting for work to appear; in this case, the aforementioned “work” comes in the form of the manager or supervisor showing up.

In short: if the reason your employees aren’t working is that the precursor to completing the work for which you pay them is inaccessible, you still have to pay them for their time.

Morally, of course, the answer is much simpler: pay your employees for their time, especially if the reason they are unable to complete work is because you (or a subordinate) didn’t make it to work at the right time.

Certainly, you might be able to justify sending all of your employees home early if you run into something like a technology snag or a hiccup in the processes which make it possible for them to do their jobs – that would mean your employees were no longer engaged to wait, thus removing your legal obligation to continue paying them.

Then again, the moral question of whether or not cutting your employees’ hours comes into play here. It’s understandable that funds would be tight for the time being, but docking employees an hour of their work here or there due to problems that no one can control may cause them to resent you down the line when you need their support in return.

The real problem with this question is that, despite most people knowing that the answer should always be “pay them”, the sheer number of people working from home in the wake of worldwide closures and social distancing could muddy the water in terms of what constitutes the difference between being engaged to wait and simply burning time.

For example, an employee who is waiting for a meeting to start still fits the bill of “engaged to wait” even if the meeting software takes an extra half hour to kick in (or, worse yet, the meeting never happens), and docking them pay for timecard issues or other extenuating factors that keep them from their work is similarly disingenuous – and illegal.

There are a lot of unknowns these days, but basic human decency should never be up for debate – especially now.

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Business Marketing

Cooler temps mean restaurants have to get creative to survive

(MARKETING) With winter approaching, restaurants are starting to find creative and sustainable ways to keep customers coming in… and warm.

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Outdoor eating at restaurants grows in popularity.

Over the last decade we have seen a change in the approach to clientele experiences in the restaurant business. It’s no longer just about how good your food is, although that is still key. Now you have to give your customers an experience to remember. There are now restaurants that feed you in the dark, and others who require you to check all your clothes at the door. Each of these provides an experience to remember alongside food that ranges from good to exquisite, depending on your taste.

Now, however, the global pandemic has rearranged how we think about dining. We can no longer just shove people into a building and create a delectable meal. If you’ve relied mostly on people coming into your restaurant, you may struggle to survive now.

The new rules of keeping clients safe means setting things up outside is the easiest means of keeping large numbers of them from crowding inside. Because of this, weather has become a key influence in a company’s daily income. Tents that were a gimmick before, only needed by presumptuous millennials, are now a requirement to keep afloat. People are rushing to make their yards into lawns that bring some in some fancy feeling.

The ties to the sun in some areas are so strong that cloudy days have been shown to drop attendance as much as 14% for the day. This will become the more apparent the colder it gets. For me, I always mention hibernation weight in the winter, when all I want to do is curl up and eat at home. Down here in Texas we are already finding cooler weather, drops into the 70s even in August and September. We are all assuming a cold winter ahead. So, a bit of foresight is finding a means of keeping your guests warm for the winter ahead.

San Francisco restaurants have started with heat lamps during their cooler evenings. Fiberglass igloos have also been added to outdoor seating as a means of temperature control. A few places down in the Lonestar state keep roaring fires going for their outdoor activities. While others actually keep you running in between beverages by encouraging volleyball matches. This is the new future ahead of us, and being memorable is the way to go.

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Business Marketing

Canva is catching on to content trends, launches in-app video editor

(MARKETING) Canva launches an in-platform video editor, allowing access to their extensive library of assets and animations to create high-quality videos

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African American woman working on Canva Video Editor Desktop in office setting.

Video content consumption is on the rise, and the graphic design platform, Canva, took note of it. The $40 billion Australian startup has entered the video business and announced the launch of its video editor, Canva Video Suite.

The end-to-end video editor is an easy-to-use platform that anyone, no matter the skill level, can create, edit, and record high-quality videos. Best of all, it’s free, and it’s available on both desktop and mobile platforms.

The tool has hundreds of editable templates that you can use to create videos for several online platforms like TikTok, YouTube, Instagram, and Facebook. Some templates can be used to create workplace and business videos, while other templates are perfect for personal videos. There are playful themes you can use to create that spooky video just in time for Halloween or make a laugh-out-loud video to send to your best friend! With a wide range of selections, in no time you’ll start creating your very own video masterpiece with Canva.

Caucasian man holding iPhone showing Canva video editor on mobile.

What else does the video software offer and what can you do with it? Well, let me tell you:

Collaborate in real-time

Having everyone on the same page is important and Canva’s video suite takes that into account. To collaborate with others, you simply send them an invite, and together you can edit videos, manage assets, and leave comments to give your input.

Video timeline editing and in-app recording

Similar to building presentation slides, Canva’s scene-based editor simplifies video editing by using a timeline approach. With it, you can quickly reorder, crop, trim, and splice your videos. Also, users don’t need to leave the platform to record that last-minute shot; within the app, you can shoot and record yourself from a camera or a screen.

Library of assets

The video editor is filled with an array of watermark-free stock footage, icons, images, illustrations, and even audio tracks that you can choose from – but if you really need something that is not on their platform – you can upload your own image, video, or audio track.

Animate with ease

Although still in the process of being released, soon you will be able to add animations of both text and visual elements in just a few simple clicks. Among others, animation presets that fade, pan, and tumble will help you transform your video and take it to a whole other level.

Overall, Canva Video Suite is very intuitive and has all the essential things you need to create a video. And by streamlining the video creation process, Canva is ensuring it enters the video marketplace with a bang.

“One of Canva’s guiding principles is to make complex things simple, and our new Video Suite will allow everyone to unlock the power of video, whether that’s to market their business, make engaging social posts, or express their creativity,” said Rob Kawalsky, Head of Product at Canva.

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