Charlotte Property Management Weekly: “List to Last” Still True?

There are many sayings that become axioms as their wisdom becomes evident over time:




“Don’t throw good money after bad”






“The way to a man’s heart is through his stomach”






“Diamonds are a girl’s best friend”



In real estate, the wisdom for real estate agents was “list to last”; this means that the agents who want to last in the business should take a lot of sales listings (aka put houses on the market for sale). The rationale is that if an agent has a lot of houses on the market for sale or rent, it is probable that some of them will and they’ll make money.



Taking listings requires resources from agents. Agents need to take pictures, gather information, put the listing up on websites, take phone calls, and then pay for advertising. There is also the time expended fielding inquiries about the home, showing it to potential buyers, and giving status reports and tips to their seller clients. The more homes the agent has on the market for sale or rent, the more resources that are required.



And this isn’t a paid gig! The agents are working on faith that some of the houses will sell and they will be reimbursed for their expenses. Agents are putting themselves into position to be lucky. Fortunately, in the past, this usually worked out well.



Now, however, houses aren’t selling very swiftly. And more people than ever want to sell their homes. “List to Last” can be the fastest way to go broke. Agents that were salivating over the amount of listings they were personally accumulating are now singing a very different tune. Not only are they being sucked dry financially, the toll of anxious seller’s phone calls are sucking them dry psychologically.



“Why isn’t my home sold yet? You said you were different!”






“Why haven’t there been more showings? Why aren’t I seeing any offers?”



“Are you any good? How much money are you spending to advertise my property? You are just one of those agents who puts the home on MLS and then sits back to collect the commission, aren’t you?”



“List to (Not) Last” or “List to Leave (the Business)” may seem more apropos axioms. Amassing home listings that don’t move is both financially and mentally taxing. So what to do?



One word- Prequalify. In a world of limited resources, agents need to expend their resources judiciously. They need to know with a high degree of certainty that they can execute a transaction for a client. This is already commonly done by buyer agents who won’t show properties to clients who aren’t prequalified by a bank to purchase. This needs to be the norm on the sell side as well. That means not accepting every listing opportunity (gasp)!



Specialized firms do this everyday. Auction firms take listings that they know they can sell; if the client isn’t willing to (or can’t) take whatever offer that comes, they don’t expend their resources to put it on the block. It’s the same with short sale firms. If a client isn’t willing to let their credit get shredded, they typically won’t walk through the firm’s doors. Clients prequalify themselves.



General brokerage has a “come one, come all” message; prequalification of clients is done at the individual agent level. And, to have staying power in the real estate business, it’s important that it actually happens!



Listings are still vital to the business of real estate agents, but they need to be homes the agents know they can sell or rent. So, in the new normal, the axiom should read, “List (the Homes You Can Actually Transact) to Last!”



Brett Furniss is the President & Owner of BDF Realty (“Charlotte’s Most Innovative Property Management & Investment Company”), and Rent-To-Sell Realty (“When You Need a New Solution to Sell Your Home”) which specialize in rent-to-own (lease options) and rent-to-sell homes. His newest book, A Real Estate Agent’s Complete Guide to Representing Rent-To-Own (Lease Option) Tenants (Delight Clients, Fill Vacant Homes, and Earn $2,250* Upfront! (*Minimum!)