Before Your Open House

Getting ready for an open house is more than just a task. It’s an opportunity to impact the future of the property significantly. As the big day approaches, you must tackle several essential tasks to ensure everything runs smoothly and impresses potential buyers. 

1. Consider Professional Staging

Remember, you only get one chance to make a first impression. If your new listing needs a little extra pizazz, consider the expertise of a professional staging company or software. They can make the most of your client’s existing decor or spice it up to help your listing pop. And if your listing is vacant, adding a few things to give context to the space is essential to attract the perfect buyers.

Check out Apply Design, the ultimate user-friendly app that empowers everyone to stage their listings effortlessly. Unlike other virtual staging apps, Apply Design still gives agents the freedom to work their magic. It has an intuitive interface and a vast selection of elegant furniture, art, lighting, rugs, and plant renderings!

2. Get Pro Photography

Now that you’ve got the place looking super-fly, it’s time for real estate photography. Word of warning—don’t skimp on the pictures! You’re about to post this listing for everyone to view and want these pictures to draw potential buyers to your upcoming open house. Be sure to hire a professional to get the job done. Or, if you DIY, at least check out our tips to ensure buyers stop scrolling through Zillow to add your open house list to their calendar.

Pro Tip: While your pro photographer is already in your new listing and everything looks perfect, get them to shoot some video for you, too. Some photographers can create Reel-style short vertical videos that you can use to post to social media to announce your upcoming open house. If your photographer doesn’t offer this service or you want to do some DIY to save some cash, make some quick videos yourself using your cell phone camera.

3. Boost Your Open House Post on Facebook

Given that most of your potential open house guests are conducting their house hunting online, boosting a Facebook post to announce your open house can be a game-changer. Just ensure your Facebook ad is designed to cut through the noise on Facebook. If you’re yet to set up a Facebook business page, you can find a comprehensive guide in our How to Set Up a Real Estate Agent Facebook Page to Get More Leads article.

4. Decide Which Food & Drinks You Want to Serve

Believe it or not, the refreshments you serve at your open house can greatly impact how you are perceived as an agent. Remember, most of your guests don’t know you. That means they will be judging you on everything, including food! By serving high-quality open house refreshments, you will enhance your professional image and leave a lasting impression on your guests.

If you’re ordering food, give the restaurant or caterer enough time to prepare it. Two days before the open house should usually be enough lead time, but call ahead to make sure. If you’re making refreshments alone, shopping and preparing a few days before couldn’t hurt. 

5. Send an Email Blast or Newsletter Reminder

You worked hard to build your email list; now is the time to use it. Include your open house announcement in your weekly newsletter, or better yet, send out a dedicated email blast if you think the house is a good deal or it offers something curious neighbors might want to see.

Looking for a simple way to send out your email blast? Pipedrive provides a customizable email builder with impressive templates and email analytics. Its intuitive interface lets you create visually appealing emails tailored to your branding and audience. Its robust analytics offer valuable insights into email performance, including open rates, click-through rates, and engagement metrics.

6. Post Your Open House on Zillow & Realtor.com 

Of course, not all your potential guests will be on your email list, but they will be scrolling Zillow and realtor.com if they’re looking to buy. Zillow’s dedicated setting for scheduling open houses is a convenient tool to help you plan your event. You need to plan it early, but not too early. Four days or so before your open house should do the trick. 

Why stop with your open house? Zillow Premier Agent is a powerful tool that lets you connect with buyers where they’re already looking, giving you the confidence that your property is being seen by the right people.

7. Text Buyers You’re Already Working With

If you’re working with buyers, send them a quick text to announce the open house. It might not be the perfect home for them, but it gives you another chance to connect and will show them you’re working hard for your seller client.

8. Text Your Seller a Checklist to Prepare the Home

It’s important to give your seller time to prepare for the open house. They might need to clean, hide valuables, or make arrangements for pets. To show your thoughtfulness and care, offer to send a house cleaner, even though they might refuse. It’s the thought that counts!

Two Days Before Your Open House

Are you ready to host an open house for your real estate listing? Two days before the big day, you must utilize social media to reach out to the neighbors and prepare essential materials. These steps not only help you maximize attendance but also create a buzz that can make your open house an exciting event. 

9. Post an Instagram Reel Preview Announcement 

Since your Facebook post has already been boosted, take a few minutes to create a quick Instagram Reel to announce the open house to your followers. It doesn’t have to be Hollywood-quality, but it should tell them the date, time, and address and maybe include a sneak peek of the home. 

Highlight the benefits of attending, such as getting a first-hand look at the property, meeting the real estate agent, and asking any questions you may have. Shoot and edit this in advance, posting it two days before the open house.

Example of Instagram Reel open house preview announcement (Source: Instagram)

10. Do Some Circle Prospecting

Agents may shy away from knocking on doors (even though you should do that, too). Still, circle prospecting is a unique way to establish a personal connection with the neighborhood around your listing. Circle prospecting is a real estate strategy to generate more leads by focusing on a smaller area around a specific property. This makes building relationships and showcasing experience easier, creating a more personal outreach than cold calls. 

This personal touch can significantly enhance your chances of gaining another client. So, step out, knock on those doors, personally invite the neighbors to the open house, and then follow up with the results using a Just Sold postcard after you close.

11. Review Your Open House Scripts & Icebreakers

If you’re a new agent or haven’t held an open house in a while, it’s crucial to freshen up your open house scripts and icebreakers. This preparation will ensure you don’t stumble on the big day, making you feel more reassured. You want to be loose and spontaneous, but having some snappy phrases in your arsenal can’t hurt! A great example of an icebreaker and script from Laura Marie, Team Leader, eXp Realty:

12. Add Your Open House Sign 

Consider installing the open house sign a little earlier than scheduled. This can notify neighbors and passersby that they are welcome to drop by and view the home at their convenience without making an appointment.

13. Print Out Your Sign-in Sheets or Set Up Your App

It also helps to print out your open house sign-in sheets a few days before the event. The last thing you want is to have a printer malfunction or discover you’re low on ink the morning of the event.

By the way, printing your open house sign-in sheets is so 2020. Savvy agents are stepping up their open house game with apps like Curb Hero, which feeds leads directly to thousands of customer relationship managers (CRMs) to help you easily stay on top of your potential new clients. And it’s free!

The Day of Your Open House

Get ready for your open house by taking care of these key tasks: think about what to bring to an open house as a realtor, put up directional signs, jazz up your for sale sign with balloons, and set up welcoming signs, eye-catching open house flyers, and important disclosures. Paying attention to these details will help set the right tone and make your open house a hit!

14. Install Open House Directional Signs

Given that many locations restrict the placement of directional signs to the day of your open house, it’s crucial to take the initiative and wake up early to install them. This proactive approach ensures you’re in control of the event’s logistics.

15. Put Balloons on Your For Sale Sign

While some realtors may dismiss balloons as tacky, they are a practical and effective tool to prevent your guests from getting lost and to attract attention. Embracing this strategy can give you confidence in the smooth running of your open house.

16. Put Out Welcome Signs, Flyers & Disclosures 

Once your directional signs and balloons are in place, it’s time to prepare the house for viewing. Set up a visible and informative entrance with a small table displaying your welcome sign, sign-in sheet, flyers, and disclosures. This clear guidance ensures your guests are well-informed from the moment they arrive.

Two Days After Your Open House 

As a realtor, your work doesn’t end when the last visitor leaves the open house. Completing post-open house tasks is a key part of your real estate agent open house checklist. It’s not just about wrapping up the event—it’s about maximizing your chances of getting property offers, generating new leads, and making a lasting impression on your sellers. The diligence and focus you put into these tasks can lead to approving reviews of your services and boost your professional reputation.

17. Text Buyers’ Agents for Feedback 

If you know any agents who brought or sent buyers to your open house, text them and ask for feedback. You can also include them in your follow-up emails, but texting will likely get you a faster—and hopefully more honest—response. 

18. Add Sign-ins to Your CRM 

This step should be fast and easy if you use an app that integrates with your customer relationship manager (CRM) like Pipedrive. If you’re working with paper sign-in sheets, enter them manually or send the list to your virtual assistant.

Pipedrive’s email segmentation allows agents to filter contacts based on various criteria, such as activities, products, and deals. This enables personalized emails to be sent to all clients, resonating with each recipient. Additionally, Pipedrive automates tasks such as reminders and email follow-ups, streamlining client management for real estate agents

19. Text Hot Sign-in Leads for Feedback 

After having great conversations with your guests, sending a friendly text is a more personal way to follow up than emailing. Remember to offer something of value, like inviting them for a coffee to discuss their real estate needs and desires further.

20. Email Cold Sign-in Leads

Finally, it would be best to take all the people who gave you their contact information and put them on a drip campaign. A drip campaign is a series of pre-written emails that are automatically sent to a specific group of people over a period of time. You can start with an email request for feedback and follow up with hot new listings. Make sure you ask for their business in your call to action. An example of an open house follow-up email is shown below:

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Subject line: I Need Your Opinion…

Hi {Contact name},

Thanks for stopping by my open house this weekend at {open house address}.

Really quick, what did you think of the open house? I try to make my open houses fun and informative experiences for all my guests, but because we get so busy, I don’t always have enough time to hear from every guest.

I would love to get your feedback, warts and all. If something went wrong, that would help me get it right next time.

We can also chat about the market if you’d like. I have {#} years of experience in {your farm area}, so I can talk about this market for days. I’m an open book!

What’s a good day to chat?

Best regards,

{Your name and title}
{Your contact info}

21. Share All Feedback & Performance Data With the Seller

After receiving feedback about the home, put it all together and send it to your seller. Apps like Spacio will give you a form to send them with the data, making the process convenient and easy. However, you can always write it in an email or text message along with your analysis if that’s more comfortable for you. 

Bringing It All Together

Hey there, everyone! I’ve created a comprehensive open house checklist for realtors, but I’d love to make it even more impressive with your help! If you think anything should be added to the open house checklist for sellers, please feel free to share your ideas in the comments. Your input is incredibly valuable, and together, let’s make this real estate agent open house checklist absolutely fantastic!

The post The #1 Open House Checklist Top Agents Use to Get Amazing Results appeared first on The Close.

Bonus: Download the Dual Agency Agreement Template

Disclaimer: Check with your state and brokerage to see if they have specific dual agency forms you need to use

What Is Dual Agency?

The real estate term dual agency is when a real estate agent represents both parties in a transaction. A dual agency relationship differs from a single agency in that the buyer and seller are represented by the same agent, who has to balance the interests of two clients. While this could streamline the buying and selling process, it also includes a lot of challenges regarding objectivity and confidentiality.

The real estate agent in a dual agency has a code of ethics that must be rigidly adhered to to deal fairly with both parties. This includes fully disclosing the dual agency relationship with a dual agency agreement and getting informed consent from the buyer and the seller. Otherwise, there may be some legal implications from such a breach of fiduciary duty.

What Is a Dual Agency Agreement?

A dual agency agreement is a critical document that ensures explicit agreement on the facts of a dual agency relationship between the agent and buyer and seller. The role played by the agent, with the limitations of dual agency, must be understood by both the buyer and the seller. The important components of the dual agency agreement include:

• Disclosure: This refers to the clear explanation given to the principal about the nature and extent of the dual agency relationship, including the possible benefits and associated risks.
• Consent: Both parties must consent in writing to their understanding and acceptance of the dual agency arrangement.
• Responsibilities: A detailed description of what duties the agent will perform. This idea would include maintaining neutrality, confidentiality, and adhering to their fiduciary duty.
• Compensation: In case of a reduced commission rate pact, how will their commission be divided or handled.

Responsibilities of a Dual Agent

Since the agent represents both buyer and seller in the case of dual agency, they should deal with their buyers’ and sellers’ interests impartially. Agents must also balance their responsibilities to ensure fairness and adherence to high ethical standards. Some of the responsibilities in a dual agent real estate situation are: 

• Impartialness: The agent should be unbiased and avoid doing anything to benefit one party at the expense of the other. It is challenging since the agent has to balance the interests of the two clients under their control.
• Disclosure: The agent shall disclose all the material facts about the property to both parties. Material fact means any information that may influence a buyer’s judgment or impair a seller’s ability to sell a property.
• Confidentiality: The agent is bound not to disclose any confidential information from one party to the other without explicit prior consent. This confidentiality protects sensitive information that includes negotiation strategies or personal financial details.
• Fiduciary duties: These include the duties of care, loyalty, and obedience to both clients. An agent should always protect the best interests of both parties. They are bound to give honest and competent advice without compromising either party’s interests.

Commission in Dual Agency

Since only one agent or real estate brokerage is involved, a dual agency may make the commission structure a bit easier. Agents can be lenient with their commission rate in a dual agency scenario because no other agent is involved. 

Therefore, they don’t have to worry about another agent’s involvement if they want to discount their commission by a percentage to get the deal done and benefit their clients. However, it should be very clear exactly how the commission division works as outlined in the dual agency agreement and where the cost savings are for both the buyer and seller.

Pros & Cons of a Dual Agency

Agents should consider dual representation real estate if both the buyer and seller want a smooth and efficient transaction and both parties are comfortable with one agent representing both sides. It can be of great value if an agent has specific knowledge about the property and the local market, providing value to both parties. 

Another advantage associated with a dual agency is the leeway to negotiate commission rates, thus benefitting the deal. In dual agency, however, there are potential conflicts of interest between both parties, and each party needs to be aware and comfortable moving forward. Knowing the dual agency pros and cons will help you decide whether you want to put yourself in that situation.

In Which States Are Dual Agency Legal?

Dual agency is legal in many states, although regulations and requirements differ from state to state. States that do allow dual agency require the agents to follow certain disclosure and consent procedures. Dual agency is not permissible in these states:

• Alaska
• Colorado
• Florida
• Kansas
• Maryland
• Texas
• Vermont
• Wyoming

Agents should familiarize themselves with the laws of their state on dual agency so they don’t get involved in illegal activities. This includes knowing additional documentation or disclosure that may be required and how such agreements and letters to clients are to be worded.

Tips to Operate as a Dual Agent

Great care and rigid adherence to ethics should be taken when operating as a dual agent to avoid conflicts of interest and loss of trust. Successful navigation of dual agency is characterized by clear communication, neutrality, and professional integrity. Consider the key practices for effective management of dual agency:

Tip 1: Provide Full Disclosure

Make sure the two parties are fully aware of the existence of a dual agency relationship right from the very start. This would be important in establishing trust and ensuring that both the buyer and the seller know that the agent represents both of them. Full disclosure avoids misunderstanding and possible legal disputes in the future.

Tip 2: Stay Neutral

No act on an agent’s part should be interpreted as favoring one party over another. Provide each client with roughly equal service, information, and comparable support. This helps to establish confidence in the process by assuring both buyer and seller of fair treatment. Balance the needs and interests of both parties without compromising either side.

Tip 3: Use Clear Communication

The agent shall maintain clear and truthful communication with the parties involved. This includes timely progress reports regarding the transaction and immediate disclosure of any material facts or problems as they arise. Effective communication shall help keep both clients fully informed and involved, thereby preventing or minimizing the potential for conflict and misunderstanding. Both parties are to receive timely, accurate information, which will help facilitate informed decision-making.

Tip 4: Practice Professionalism

Abide by statutory and regulatory state requirements relevant to a dual agency that include confidentiality, the truthfulness of information, and loyalty to the client’s interest. The responsible management of a dual agency means being professional in ensuring all acts are within the confines of the law and ethical standards. High professional standards foster trust with one’s clients and facilitate the transaction process through its successful completion.

Scripts to Use When Clients Ask About Dual Agency 

Whenever a client inquires about dual agency in real estate, it is important to respond clearly and with simple language that dispels their fears with clear transparency and total neutrality. Whether describing how the dual agency works, explaining possible conflicts of interest, or just outlining it as an option, your responses reassure the client that their interests will be equally well-guarded. 

The following scripts will guide you through these conversations confidently and help your clients fully understand the implications of dual agency.

Script 1: Explaining Dual Agency to a Client

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Client: “What exactly is dual agency, and how does it work?”

Agent: “Good question. Dual agency would exist if I represented you, the buyer, and the seller in the same transaction. Basically, I have a duty to both of you, and I must remain neutral throughout. I will work to facilitate the transaction as efficiently and smoothly as possible while providing the same service and flow of information to you and the seller.

I’ll disclose all material facts about the property to both parties, but I won’t be able to advocate for one party over the other. What’s important is that both of us, as well as the seller, be comfortable with the situation, and we would all need to sign a dual agency agreement to proceed.”

Script 2: Addressing Concerns About Conflicts of Interest

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Client: “I’m worried that you might be biased towards the seller since you’re representing both of us.”

Agent: “I completely understand your concern, which I take very seriously. I am supposed to be impartial as a dual agent, offering you and the seller the same level of service while providing both of you with all the information. Therefore, I won’t be able to choose one side over the other or give only one side confidential information.

My role is to ensure both parties have the facts they need to make the best decisions possible. If you ever feel uncomfortable or if, at some point, you believe there is a conflict of interest, then we can discuss it and determine what is best.

Script 3: Pitching Dual Agency to a Client

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Agent: “I would like to discuss an option with you that would very much befit your situation: dual agency. This would make me the representative of both you and the buyer. This would streamline communication between us and save us time during negotiations. Because you know I am knowledgeable of the local market, the information and advice I will provide will be useful to both parties involved.

Plus, because I would be handling both ends of the transaction, there would be some opportunity to negotiate a slightly lower commission being paid out on my part, which could save you money. Of course, I would work through that process in a completely neutral and open way. If this is something you’d be open to, I’d be happy to run through the details and answer any questions you might have.”

Script 4: Responding to a Client’s Hesitation About Dual Agency

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Client: “I’m not sure if I’m comfortable with dual agency. What happens if I decide not to go with it?”

Agent: “It’s normal that you should have reservations about dual agency, and that is quite understandable. You must be sure of the decision you are making. If you don’t want to proceed with dual agency, we can certainly look at other options, such as separate representation for each party. The key is to choose a situation that makes you feel most comfortable and confident about the transaction. I am here to support you either way and will be sure that your best interest is protected.”

FAQs

Should real estate agents avoid dual agency?

What is an example of a dual agency?

What is the difference between a sub-agency and a dual agency?

Bringing It All Together

Proper navigation of dual agency requires some thought and clear communication to ensure a fair and efficient transaction for buyers and sellers. The ins and outs of how commissions work, when it’s proper to represent both parties, and formalizing that relationship with a detailed dual agency agreement are all essential considerations. This navigation enables agents to maintain transparency, neutrality, and professionalism in dealing with dual agency situations and support increasing their gross commission income (GCI).

The post What Is a Dual Agent? A Guide for Real Estate Agents appeared first on The Close.

What Is Circle Prospecting?

Circle prospecting is a real estate strategy that agents use when trying to generate more leads. The goal is to laser-focus on a smaller area surrounding a specific property, making building solid and lasting relationships easier. Plus, you can showcase your experience in the area by leveraging closed transactions. Using this prospecting technique gives you a reason to reach out to potential clients, making it feel more like a warm outreach rather than using the cold call method. 

Before You Begin Circle Prospecting

Circle prospecting is a great way to connect with more people, but without strong systems in place, it may not live up to its potential. I get it—you’re eager to start filling your pipeline, but it’s crucial to take the time to establish a solid foundation for maximum prospecting success. To prepare, make sure to do the following things: 

• Scrub your database for any numbers on the “do not call” list. 
• Create a solid system for outreach and follow-up.  
• Establish the goals you want to accomplish with the circle prospecting method. 
• Practice your circle prospecting scripts. 
• Choose a tool, like Vulcan7, to help you with lead conversion and follow-up.

Vulcan7 is a lead generation platform that provides agents with seller leads and tools to convert leads into clients effectively. Agents can leverage its circle prospecting software to target neighborhoods and access reliable databases.

Circle Prospecting Tips & Scripts 

Now that you’ve got everything set up, it’s time to take the next step and start building connections with potential clients. With these eight easy steps and helpful scripts, you’ll not only bring in more leads but also improve your conversion skills.

Tip 1: Don’t Make Your Circle Too Large

Filling your pipeline in real estate is often a numbers game, so it may seem counterintuitive to keep your circle small rather than cast a wide net. However, focusing on a smaller group of between 20-50 homes near the subject property is actually more effective. You target homeowners with a vested interest in the area by focusing on the immediate vicinity. This targeted approach ensures you’re concentrating on connecting with people who genuinely care about your listing and the neighborhood you’re working in.

• What to Do: Use your MLS or a site like Zillow to create a radius around the subject property. This pinpointed focus will help you gather the addresses of the homes you want to focus on and build your database.

Tip 2: Know the Market

Stay ahead of the game with daily market research. Keeping up with the latest trends will help you provide valuable information to the people you interact with—from your social media followers to your current clients and sphere of influence. By focusing on recent sales, new listings, property values, and local amenities, you can position yourself as the ultimate expert in your field and your circle prospecting area.

• What to Do: To really get to know a community, it’s essential to become a part of it. Spend time in the places you want to work in and keep an eye on the market trends. Immersing yourself in the community will help you discover the best schools, restaurants, and shops and stay updated on real estate trends.

Tip 3: Use Multiple Outreach Methods 

Create prospecting letter templates for outreach and mix things up using postcards, texts, phone calls, and door-knocking to increase your chances of success. It’s important to plan and spread out your outreach attempts so as not to overwhelm potential clients. Include details about recently sold listings, exclusive open house invitations, or a list of off-market properties. Make sure your focus includes offering something of value, like a comparative market analysis (CMA) or a new neighborhood amenity announcement, to the people you’re connecting with.

• What to Do: Send postcards 2-3 times a year or whenever you have a sale in the area. This outreach should be in addition to your monthly newsletter and regular calls and texts. You can even get ahead by batching your postcard mailings so they’re all set to go when the time is right.

Tip 4: Leverage Tech

You can’t do it alone, and you shouldn’t have to! There are plenty of options for incorporating circle prospecting and client relationship management (CRM) software into your lead gen efforts. Using a CRM like LionDesk, you can keep track of your outreach, stay organized, and effectively manage your leads. This system will help drive your success and make your job a whole lot easier.

• What to Do: Sign up for a circle prospecting or CRM software. This step is a great way to keep all your contact information in one place and stay organized.

Tip 5: Use Scripts

When using a circle prospecting script for real estate, don’t overthink it. Think of it as a friendly conversation starter or a tool to kick-start and sustain a conversation. Remember, it’s all about building relationships. As you continue to nurture your leads, it will start feeling more natural. So, don’t hesitate to use scripts as a gentle nudge to start a great conversation. 

Here’s a quick and easy neighbors-only open house invite script:

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“Hi, this is [your name] from [your brokerage]. I just wanted to let you know we’re hosting an open house at [listing address] on Sunday, and I wanted to personally invite you for a neighbor-only sneak peek. The market is picking up again, so I wanted to give you a chance to see what [price of listing] gets you if you’re considering making a move in the next year or so.”

Here’s a simple “just listed” script you can use to keep the conversation going:

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Agent: This is [your name] with [your brokerage]. I just listed a home in [community name], and I was wondering if you knew anyone who might be moving to the neighborhood.

Homeowner: No, I can’t think of anyone right now. Sorry.

Agent: No worries. The market is a little tricky right now, but I am just trying to get my client the best possible price for their home. That’s the commitment I made when I got the listing, and I want to do as much as possible to make them happy. Just out of curiosity, when do you plan to move?

Homeowner: We just moved here last year and aren’t looking for a new house anytime soon. Sorry.

Agent: I wouldn’t either. It’s a great neighborhood and not a lot of homes come on the market. By the way, I send all my clients a monthly [off-market listings update or market report]. Even if you’re not moving, seeing what’s happening in the market is a great resource. I can send it to you in a text message if you want.

Here’s a script perfect for circle prospecting around a listing you just sold:

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“Hello, sorry to bother you. My name is [your name], and I am the listing agent for the property down the street [point in the direction of the property]. We received multiple offers, and, of course, we can only accept one. The home sold well above the asking price, and these other buyers are still looking for a home in [neighborhood]. Who do you know who would like to sell their home in this hot market?”

Here’s a script crafted by Tom Ferry and Christina Griffin to leave a message on voicemail:

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“This is Christina Griffin with the Griffin Group at Coldwell Banker. We just listed a home in your community, [neighborhood name]. If you know anyone looking to move, give us a call.”

• What to Do: Use these scripts as they are or as a guide to create your own. Once you choose what script you want to use, take some time to practice it so it sounds natural.

Tip 6: Form Relationships

Circle prospecting is like planting seeds of opportunity. Although you might not see immediate results, with some nurturing, those seeds will start to sprout. Ultimately, circle prospecting is all about building relationships. The goal is to connect with more homeowners and establish yourself as a reliable and well-known presence in the neighborhood.

• What to Do: Be yourself! People can tell when you’re genuine. They’ll appreciate your knowledge, guidance, and expertise, and they will also connect with who you are. Share a text or email with a link to an article that you think they’d like, or drop by with a gift card to a great new local hangout.

Tip 7: Don’t Forget Door Knocking ← This One’s Important!

Sure, door-knocking can be a bit intimidating, but there are ways to make it easier on yourself and the homeowners. Instead of just showing up unannounced, start by using a circle prospecting script to make a call, send out postcards, or leave door hangers. This way, when you knock on doors, you’ll already seem more familiar and welcoming. It’s all about making a positive connection and giving yourself something tangible to reference when they open the door.

• What to Do: Check local laws on door-knocking before visiting homes, and then prepare to engage with homeowners in the best way possible. Bring an informational flyer to leave behind and start providing value immediately.

Tip 8: Get Comfortable With Follow-Up

Follow-up is key in real estate relationships. Converting leads into successful deals requires skill and an effective lead nurturing approach. Using modern technology and reaching out to prospects through different channels will build strong relationships and grow your business. With this strategy, you can experience the potential of circle prospecting to drive leads and propel your business forward, even if you don’t have a sphere of influence to work with.

• What to Do: Leverage a CRM system to track every interaction with your prospects. Mix things up by using various outreach methods and tailoring the information you share with each follow-up.

Benefits of Circle Prospecting

Real estate circle prospecting goes beyond simply connecting with potential clients. It can also significantly impact establishing a strong presence in the target community where you want to work. Let’s look at the numerous ways you can benefit from circle prospecting in real estate. 

• Develop local authority: When people see how well you know the neighborhood, including all its features, property values, and more, it builds a sense of trust that makes them comfortable turning to you for help with buying or selling in the area.
• Build relationships: It’s important to stay in touch with people not only to work with them directly but also to get referrals. Building genuine relationships is key to generating more leads.
• Long-term lead generation: Having a consistent pipeline of business coming in is a goal for many agents. Circle prospecting is a great way to help you achieve that.

• Genuine lead nurturing: Staying in touch with potential clients is a great way to build strong connections and ensure you remain top-of-mind. These efforts will definitely help boost your business in the long run.
• Increase presence: Having a strong, recognizable name and brand in your target community can make all the difference! It builds trust and confidence that you’re the right person for the job.

Frequently Asked Questions (FAQs)

How often should I be circle prospecting?

What is the best circle prospecting tool?

Bringing It All Together

Circle prospecting is a great way to establish yourself as a go-to person in the neighborhood. Incorporating this lead gen method into your business allows you to tailor your marketing efforts and form genuine connections.

Have you had success with circle prospecting? Or maybe you know a great real estate agent who creatively leverages new (or old) technology to generate listings and leads. We’d love to hear from you; let us know in the comments! 

The post 8 Circle Prospecting Strategies to Boost Lead Generation appeared first on The Close.

What Is a Real Estate Team?

Before I get into how to build a real estate team, you need to know what a team is all about. A real estate team is a group of agents and employees with complementary skill sets that join to close more deals.

Teams come in all shapes and sizes—ranging from a duo of experienced agents who work side by side to close deals together to a single licensed agent with multiple unlicensed assistants to a dozen or more buyer’s agents, listing agents, and inside sales associates. How you structure your team is entirely up to you and depends on your business needs. However, you need to review the pros and cons to decide if it’s right for you.

Steps of How to Build a Real Estate Team

Now that you know what a real estate team is and its advantages and disadvantages, it’s time to learn how to put it together. Before starting your quest to dominate your real estate market with a team, you need a plan. Here are the step-by-step instructions on how to build a real estate team and run it successfully.

Step 1: Get Approval & Guidance From Your Managing Broker 

Even though real estate teams are legal in all 50 states, you must still talk to your broker to ensure you know the rules on how to start a real estate team. You’ll also need a split and cap agreement to know how much money you can count on from each transaction to pay your team and cover your expenses. You can renegotiate with your broker as your team grows and becomes more successful.

Step 2: Choose the Right Team Structure

Once you get the green light from your managing broker, the next step is to decide how your team will be structured. Here is a quick overview of our three favorite team structures to get you started.

Step 3: Develop a Business Plan & Budget

When overseeing a real estate team’s operations, it’s essential to recognize the unique aspects compared to managing a solo real estate business. A comprehensive real estate business plan outlining your requirements, financial considerations, and strategies for utilizing the generated revenue is crucial for success.

The real estate team business plan must include the following items:

• Mission, vision, and values
• Detailed overview of the team’s organizational structure
• Roles and responsibilities of team members
• Strategies for effective team communication and collaboration
• Conducting a SWOT analysis and setting SMART goals
• Lead generation and client conversion strategies tailored to a team-based approach
• Client relationship management and nurturing strategies
• Comprehensive marketing plan for both team and individual agent branding
• Scalability plans include expanding, hiring, and training new team members
• Financial plan reflecting revenue-sharing model, budget allocations, and profit-sharing arrangements

Step 4: Decide on a Compensation Model

When working in real estate teams, the commission is usually split among team members. Junior agents typically receive 40% to 50%, and team leaders get 60% to 75%. Teams often have a cap of around 90% of the collective cap of a group of licensed agents of the same size. It’s important to be generous when attracting high-quality agents; adjustments can be made as your team grows.

Wondering how much you’ll take home after sealing the deal? Use our handy calculator to find out! Just provide the details below, and we’ll automatically calculate your commission.

• Sale price of home: The amount of money the buyer agrees to pay for the seller’s home.
• Percent of the commission collected by an agent from the sale: The percentage of the sale price you are collecting at the close of the transaction.
• Agent commission split with brokerage: Your commission rate is agreed upon between you and your brokerage.

Step 5: Build Your Technology & Communications Stack

Remember, the tools you choose can significantly impact your team’s success. The right software helps attract new team members and reduces stress and confusion. I’ve selected some top team tools and software specifically designed to help teams. They will allow you to start with just two team members and add more as your team grows.

Marketing: Coffee & Contracts

Want to run the team leader model but can’t afford to hire a marketing manager? Coffee & Contracts is your new secret weapon. They offer beautifully designed social media and print templates that make everyone think you hired a $100,000-a-year marketing manager.

Lead Generation: Market Leader

If you need a steady stream of seller leads without the hassles of running your platform, then Market Leader is for you. Their exclusive seller leads come from housevalues.com, one of the internet’s most efficient lead capture websites. All you need to do is sign up and start qualifying your leads.

Communication: Slack

Want to escape the drudgery of digging through your inbox just to follow up on conversations with your team? Slack, a business group messaging platform, is the 21st-century method innovative teams use to communicate. No more lost emails or scrolling through endless email chains to find that one disclosure file.

Step 6: Hire an Administrative Assistant

If you want to set your team up for success, your first hire should be an administrative assistant. Having an administrative assistant on your team can be an attractive lure for recruiting junior agents. This person’s primary responsibility is to take work off the plate of the team leader or other licensed team members so that they can focus on the real estate-specific tasks that drive new client relationships and closed deals.

This work includes things like the following:

• Filing
• Calendar coordination and scheduling
• Communication that doesn’t include real estate-specific advice or strategy
• Light marketing tasks
• Errands
• Sign placement
• Marketing material delivery
• General office organization

The ideal candidate for this position is organized, helpful, and solutions-oriented. They see a problem that needs fixing or a chance to increase the efficiency of a daily routine and fix it without being told to. This role is generally entry-level, so real estate experience isn’t necessary here. But it is helpful, especially if you’re a top producer with a lot of volume.

Step 7: Build Out the Rest of Your Team

Once your team starts closing more deals than your agents can handle, it’s time to scale and recruit for your team. While the team model you choose will determine who you should hire next, here is the general order we recommend for most teams.

Critical Mistakes New Team Leaders Make

Now that you have a better idea of how to set your team up for success let’s examine some common missteps that bright-eyed and bushy-tailed new team leaders make and how to avoid them.

• Mistake #1: Not embracing the platinum rule: “Do unto others as you would have them do unto you.”
  • Do this instead: Great leaders embrace the Platinum Rule, popularized by authors Michael O’Connor and Tony Alessandra: “Treat people how they want to be treated.” You must also commit to knowing your people well enough to understand exactly what that means.
• Mistake #2: Not providing consistent guidance, direction, or accountability.
  • Do this instead: People in our industry join teams and organizations because they want to be a part of something, and they want to be led. So, if you intend to be a great leader, you must be accessible, highly communicative, and model the high-minded behavior you expect from them.
• Mistake #3: Not helping your people or team members develop to their full potential.
  • Do this instead: Consult with each team member and create an individualized growth plan. Where do their interests lie? What skills and proficiencies can be improved over the next quarter and year? What impact could this have on their performance and your profitability? Be prepared to identify the people, platforms, courses, and resources to make it happen—and to invest the resources.
• Mistake #4: Failing to respect other people’s boundaries.
  • Do this instead: Great leaders embrace their people and honor what’s important to them. Your team members want balance, which comes from boundaries. Pay attention to how you spend your time and what your people observe you do. Be willing to share your challenges and desire to make positive, impactful changes. Reinforce their boundaries and balance, and seek a peer group to do the same for you.
• Mistake #5: Not recognizing a job well done.
  • Do this instead: While it’s easy and maybe even second nature for leaders to identify what someone is doing wrong, you’ll be better respected and earn greater loyalty when you pay attention to what your people are doing right. So praise them, thank them, surprise and delight them, and be the leader others love to work with.
• Mistake #6: Making big, business-impacting decisions without consulting those you lead or other team members.
  • Do this instead: If you’re a smart leader, you’ll ask for suggestions, consider their opinions, and include them in your decision-making process. If you don’t, things can go terribly wrong. 
• Mistake #7: Micromanaging and expecting perfection from your team.
  • Do this instead: Tell your team what you want and let them do their work. Trust them and talk to each other. Everyone is good at different things, so listen when they tell you stuff. Don’t watch them all the time. Help them when they need it. This will make work better for everyone.

FAQs

What is a real estate teamerage?

I’m a new agent. Should I join a real estate team or a teamerage?

What qualifications do I need to start a real estate team?

How do real estate team members get paid?

Bringing It All Together

Building a real estate team is a fantastic way for successful agents to scale up their business and for new agents to break into the industry and learn from seasoned pros. Are you a part of a real estate team? What advice would you give to agents wondering how to start up a squad or choose a company to work for? Tell us in the comments below.

The post How to Build a Real Estate Team in 7 Steps + Mistakes to Avoid appeared first on The Close.

Photography Fails

1. House Flipping?

Why it’s bad: The photo was uploaded to his MLS without verifying the photos were in the upright position.

Fix: When adding photos to your listings, make sure you get them uploaded correctly before you push that publish button.

2. Virtual Staging Gone Rogue

Why it’s bad: if you’re looking for weird real estate photos, virtual staging is the ticket. The virtual staging in this photo obviously was not done by a professional and looks that way. 

Fix: If you want to use virtual staging, use a professional company like Apply Design to make sure it looks realistic. And make sure your photos are well-lit, professional photos before you add virtual staging.

Pro Tip: Get results like THIS for just $7 per photo.

With virtual staging companies charging $30 to $100 per picture these days, most agents only use them for luxury listings. Sure, there is DIY staging software out there, but most are a pain to use, and the quality is awful. That is until Apply Design came along.

Apply Design is the first DIY virtual staging software that is easy to use, easy to get professional-looking results from, and, best of all, affordable enough for any agent. They even have a 100% money-back guarantee, and you can stage your first room for free.

3. Blurred Lines

Why it’s bad: This photo is so blurry it’s unrecognizable. It looks like it was blurred for the protection of the seller.

Fix: When adding photos to your listings, don’t upload any photos that are so low quality that no one can see them.

4. A Fracture in Space

Why it’s bad: It’s difficult to make out exactly what’s going on in this photo. Is it a portal in the space-time continuum? Hard to say for sure.

Fix: This photo could use a little context. Reflections in the glass are creating a bizarre effect that could really throw off potential buyers. Get more of this room in the lens. 

5. Rex Discovers a Portal to Another Dimension

Why it’s bad: Aside from the fracturing of the space-time continuum, there probably shouldn’t be a dog’s head in the photo.

Fix: This is more careless than anything else. If your photo looks like this, take another one while holding the camera still long enough for it to finish collecting the image.

6. My Selfie Stick Makes This Easy

Why it’s bad: Just what everyone wanted to see—your head in front of the sofa.

Fix: OK, I’m going to be blunt—if you don’t know how to use these properly, please don’t. It’s called a selfie stick because it puts you in the picture. You don’t need to be in any of the listing pictures, so just don’t.

Staging and Decor Disasters

7. Living Inside a 90s Taco Bell

Why it’s bad: This room is filled with color—so much so that a potential buyer might be overwhelmed and miss the features of this home.

Fix: Your sellers don’t have to do a complete overhaul of their home for it to sell. But you can use your knowledge of home staging basics and help them cut down on some of the clutter to minimize the sensory overload.

8. Eat More Chicken

Why it’s bad: Let’s just be honest—everyone has their weird kinks, and that’s perfectly fine. But when it’s time to sell, you probably don’t want to advertise those kinks to the whole internet.

Fix: Before you list a new property on the MLS, you might encourage your sellers to invest in some paint to get the home back to a more neutral tone.

9. The Corpse Dino

Why it’s bad: Again, we all have our idiosyncrasies and bizarre hobbies. But there’s no need to broadcast them to the world.

Fix: As an agent, when you tour a room like this with your sellers, you should look at it as the perfect opportunity to discuss what “declutter” means.

10. Grecian Sanctuary

Why it’s bad: You have to wonder how they get the toilet lid to stay open if they need to sit down. And just how bad is someone’s aim if you need that much plastic on the floor?

Fix: Sure, this is just another example of DIY home design gone wild. But you can coach your sellers to remove some of the extra, including the plastic sheet on the floor before picture day. 

11. Too Many Options

Why it’s bad: It’s great to have options when using a washroom, but this one is actually overwhelming. Why are there two (or is it three) toilets? And only one roll of toilet paper?

Fix: The angle on this image does not do this bathroom any favors. 

12. Zero Gravity

Why it’s bad: This listing definitely deserved two images. First, it’s a million-dollar listing, but it’s also one of the most cluttered homes ever. There is a mannequin hanging from the ceiling in not one but two separate images. The realtor said the buyer of this home would be able to see the forest through the trees. Seriously, this whole listing is chock full of funny real estate photos that will have you scratching your head.

Fix: It’s important to help your sellers understand the importance of depersonalization. Please have this conversation with them.

13. It’s About Damn Lime

Why it’s bad: In a minute, I’mma need a bucket o’paint! I had a listing for a room painted this color once. No buyers could get past it. 

Fix: I can’t tell you how many buyers said, “Just show us—we can look past [insert bad house feature here],” but then balked when I showed them the home. Don’t believe your buyers. Don’t show homes that are not show-ready. But when you do, use virtual staging to show buyers how a little paint can work some magic.

14. Under the Sea

Why it’s bad: There’s just no accounting for people’s taste. But that doesn’t mean you have to put it on display. 

Fix: No doubt about it, this floor needs some creative photography best left to the pros. And quite possibly a flooring allowance.

15. Just Add Glitter

Why it’s bad: This bathroom definitely needs more sparkle … and a toilet paper roll holder!

Fix: There’s so much color in this tiny bathroom. Certain colors can make a space feel even smaller, while others can help open up a tight space. You might encourage your sellers to paint this bathroom a color that adds some area.

16. Some Like It Ugly

Why it’s bad: Are you listing a funhouse? There are so many colors! It may be a lot to ask your sellers to remove all the clutter and repaint.

Fix: It may be a lot to ask your sellers to remove all the clutter and repaint the house, but you should definitely give it one helluva try. Or at least consider some virtual staging and a paint allowance. 

Unexpected Occupants

17. Send in the Clowns

Why it’s bad: There is a lot going on in this image, not the least of which is the 4 ft. clown statue in the corner. Some of the most awful real estate photos feature really creepy clowns.

Fix: Have thorough conversations about neutralizing the home to provide potential buyers with fewer distractions.

18. Life on the Serengeti

Why it’s bad: You’ll notice there are many images on this list with a lot going on, like this photo filled with taxidermy from exotic lands.

Fix: Sit your sellers down and encourage them (strongly) to minimize the clutter in the home. Offer to help them find a storage location to house their many prized possessions that might detract from buyers focusing on the home rather than their collection.

19. Master of Multitasking

Why it’s bad: Clearly, this seller is a DIY type, based on this terrible real estate photography.

Fix: Your MLS photos should not have anyone in them, especially if they’re actually sitting on the toilet. Pop for some professional photos to make sure the job’s done right.

20. Mane Entry

Why it’s bad: Why would anyone snap a photo before the horse was out of the way?

Fix: Photography for your listing should not be taken so carelessly. Plan out your photo shoot, make sure you have great lighting in every room, and clean up any extraneous items so your photos are clean and show the home in its best possible light.

21. Holy Cow!

Why it’s bad: How lonely do you need to be to install this oddly well-dressed, life-sized creature in your home? And why is it there for photos?

Fix: It’s highly recommended to be present when your listing is scheduled for photos. Perhaps if this agent had been present, they could have moved Mrs. Heifer to the other room while this pic was taken.

22. Photo Bomb

Why it’s bad: Sure, dogs are amazing, and no one loves them more than I do. But this dog takes the cake! How in the hell did he even get up there?

Fix: As cute as this little guy is, he’s just another distraction taking away from the house. When taking photos, make sure you don’t accidentally capture a lovable mutt in the frame. And I suppose you should look up as well.

Structural and Design Oddities

23. M.C. Escher Fanboy Homebuilder

Why it’s bad: The photo isn’t the problem here; it’s the home itself. (Where are all those steps going?)

Fix: Every home you list won’t be magazine-worthy. All you can do is make the best of what you’re working with. Treat every listing equally, and make sure you’re doing all you can to showcase the best features. Find clever ways to highlight the positives!

24. Bed, Bath, and Be-gross!

Why it’s bad: It’s hard to know where to begin with this photo, but it will probably be the bunk bed over the tub.

Fix: If you absolutely must list a photo like this, at least make sure it’s tidy. And you should probably get creative with your listing description.

25. I Can Really See Myself Living Here

Why it’s bad: Why anyone would want to see an infinite number of themselves on the toilet or naked in the tub is beyond me. Anything with this many mirrors ranks up there with bad real estate pictures that you probably can’t fix.

Fix: Hire a professional photographer. Hopefully, they’ll have a few creative ways to shoot this room to tamp down the effects of all those mirrors.

26. Outdoor Facilities

Why it’s bad: No matter how you look at this photo, it’s not showing anything positive about the house.

Fix: For the love of all that’s holy, please don’t take a picture of the house with someone taking a piss right on the side of it! Just no.

27. For Emergency Evacuations Please Use Stairs

Why it’s bad: Not sure who thought this was a good place to install a bathroom, but here we are.

Fix: Because of the refracted lighting, the toilet is overexposed while the corner with the sink is dark. Make sure your lighting is balanced, or correct it in post.

28. Fertility Window

Why it’s bad: This home’s unique structural design conjures intriguing thoughts. Amirite?

Fix: When your listing has unfortunate features, the best way to offset them is to get images from different angles that de-emphasize the issues. Best left to the pros.

Cleanliness and Clutter Issues

29. Where’s the Remote?

Why it’s bad: Let’s face it—not all of your sellers are going to be the cleanest. But you should not broadcast that information to the entire internet.

Fix: This is the perfect situation where you will benefit immensely from offering to pay for a cleaning service for your sellers.

30. This is Where I Like to Go to Cry

Why it’s bad: Listing photos should give viewers a feel for what it’s like inside the home while showing off its best features. Not sure if this one gives that vibe.

Fix: When shooting photos and videos of your listing, don’t let obstructions get between your viewer’s eyeballs and the space.

31. Elder Enclosure

Why it’s bad: To be completely honest, I’m not sure why this pic would even make it to your actual listing.

Fix: When choosing images for your listing, it’s important to ask yourself, “Will this photo help me sell this house?”

Inappropriate or Bizarre Content

32. Fire Sale

Why it’s bad: I don’t know where to start. An image of a home on fire in the MLS? That’s got to be up there among the most terrible real estate pictures ever, right?

Fix: Listing photos should highlight the home’s best features. Show your listing in its best light.

Fix: When adding photos to your listings, don’t upload any photos that are so low quality that no one can see them. 

33. No Realtor Needed

Why it’s bad: Anything that detracts from the home’s features should be eliminated.Fix: This is what happens when sellers think they can sell their home as easily as any agent. Check out the Zillow FSBO listings, and you’ll find a veritable gold mine of sellers out there who desperately need your expertise.

Pro Tip: Spend a few minutes scrolling through any FSBO site, including the FSBOs on Zillow, and you’ll learn just how horrible 99% of FSBO marketing is. When you finish scrolling (and laughing), our best FSBO scripts article will be waiting for you.

34. Valley of the Dolls

Why it’s bad: It’s the one lying on the ground like she’s in a 90s music video for me.

Fix: Again, when there’s so much stuff in a room that it distracts the buyer from the home’s features, it needs to go. Help your sellers find temporary storage for their bizarre collections.

35. Percy Jackson

Why it’s bad: This house is really gorgeous. The female rabbit statue is a little questionable, but the minotaur in the hallway is haunting my dreams!

Fix: Any potential buyers would naturally be scared away if they saw this image in the MLS. Stage the home tastefully and remove distractions like this monstrosity.

36. It’s a Jungle out There

Why it’s bad: Now might be a great time to discuss curb appeal.

Fix: As a listing agent, you’ll want to make sure this doesn’t happen to your listing. Hire a landscaper to keep the jungle trimmed and neat.

37. Target Your Audience

Why it’s bad: Do I really need to explain why this photo might turn off buyers? 

Fix: Humans are interesting, with lots of interesting hobbies. But maybe some things should only be known by those closest to you. Pack up the gun collection for pictures and showings, just to be on the safe side.

38. This Could Have Been So Much Worse

Why it’s bad: It would be kind of funny if it wasn’t so horrifying at the same time.

Fix: Don’t have your naked seller take photos of your listing. Not to mention, the lighting in this bathroom is really bad.

39. Stunning Art

Why it’s bad: The lighting is good, the bed is made, what could possibly…??? Oh, that!

Fix: I’m all for embracing sexual exploration. But when you put your house on the market, you might want to tone down anything that could embarrass buyers who come through your home. They’ll be so stunned, they’ll walk away from your listing without any further consideration.

40. Lifestyle Goals

Why it’s bad: This photo is a blatant abuse of Photoshop and really bad graphic design and should be avoided at all costs.

Fix: In all seriousness, what exactly does this photo have to do with this house? That pool certainly doesn’t come with its own dolphin-riding agent. It’s just silliness.

41. Slow Market

Why it’s bad: “What’s your average number of days on the market for listings?” 

Fix: You gotta love people’s senses of humor. While this skeleton will make some people laugh, it could also upset others. It’s best not to use the MLS for your (or your seller’s) practical jokes. 

42. Thoughtful Closing Gift

Why it’s bad: This would be a perfectly lovely image of this little cottage if only Baxter had gone earlier when we made that stop.

Fix: I feel like a broken record, but listing photos should not be some offhanded thing you do just as you’re leaving the property. Make sure your images are free from distractions (and debris).

43. Stock Photo

Why it’s bad: It’s the juxtaposition of the stockade footboard, complete with leg restraints, against the Stitch-themed bedspread for me.

Fix: If you come across a situation where too much of your sellers’ sex life is on display, you might try to find creative ways to disguise it. For example, I may have removed the leg restraints and covered the footboard with an afghan so it’s less obvious. Just my thoughts after staring at this photo for longer than I care to admit.

44. Too Intimate?

Why it’s bad: “The painting on the wall is custom art …”

Fix: Not everyone’s taste in art will be the same. For many, this intimate portrait of a birth may be off-putting. Best to remove it for photography and showings. Agree?

45. Nightmare Listing

Why it’s bad: Can you imagine seeing this as a potential buyer on the MLS? I mean, the lighting is atrocious!

Fix: But seriously, don’t be this agent. This photo is only causing serious anxiety for most of the viewers who encounter it. It does nothing to help sell the property. 

How to Get the Most From Your Real Estate Photos (And Never End Up On This List!)

Look, I get it. Taking Instagram-worthy pictures of creepy and cluttered houses isn’t easy. But a listing is a listing, right? So if you want to actually sell the property, you’re going to have to do your best to present the house in its best light. And maybe not every listing needs professional photography, although that’s a debatable topic for another article. Here are six simple tips to take better pictures of visually challenged homes.

Tip 1: For the Love of All That Is Holy, Put the Toilet Seat Down!

One of the first things I learned from my professional real estate photographer is to put the toilet seats down before you snap those photos. My photographer went through the house and made sure they were all closed before he took even one photo. So, before you start clicking, go through the house and close all the toilet lids, regardless of everything else that might be wrong.

Tip 2: Offer to Pay for a Decluttering & Cleaning Service

A dirty house filled with junk is always going to be the last one buyers schedule a tour to see. That means your listing will sit on the market longer, and you might need to lower the price to get the house some love. So if your homeowner refuses to clean or move the Star Trek collection to the garage, consider paying out of pocket to get the job done.

Tip 3: You Don’t Need to Show the Weirdness

I’ve already touched on this, but everyone has their own weird things. But there are exactly zero reasons to upload pictures of your homeowner’s weird belongings to Zillow. Try to convince your sellers to move their personal stuff to a storage unit while you’re trying to sell the home. Offer to pay for a storage unit if you have to. But remind them of the objective—depersonalize so buyers can see themselves in the home, not the sellers.

Tip 4: Resist the Urge to Edit Your Own Pictures

Unless you’re a professional editor, editing your own listing pictures is never a good idea. It is absurdly easy to make a mediocre picture worse, and you can hire a professional editor for a small fee. So do yourself a favor and leave it to the pros. You’ll thank me later.

Tip 5: Use a Professional Virtual Staging Service or App

Be extremely careful with virtual staging. It’s so easy to overdo it and make your listing photos look ridiculous. Hire a professional or use a company that specializes in real estate virtual staging. Sure, it’s a little more expensive than professional photo editing, but it’s always a great investment when trying to get a challenging home sold. You have so many more options today, with more coming in the near future. 

Tip 6: Learn the Basics of Photography

If you insist on taking your own pictures instead of hiring a photographer like every successful real estate agent, at least take a few hours to learn the basics. Professional real estate photography is not easy, but it’s also not as hard as you think it is. Check out our deep-dive guide on photography to learn how to take pictures that won’t end up on this list.

Bringing It All Together

Have some unbearably bad real estate photos to share or a real estate photography tip that works every time? Send it to us at hi@theclose.com or share it with us on Instagram via @theclosedotcom. Use the hashtag #realestatepictastrophes 

The post 45 Bad Real Estate Photos Agents Actually Posted (+ How to Fix Them) appeared first on The Close.

Get ready to dive into some fun and practical tips for real estate photography that are sure to make your listing photos truly stunning and stand out from the crowd! 

Tip 1: Schedule Your Shoot for Optimal Lighting

Believe it or not, scheduling your photoshoot for the right time of day can make a huge difference in the quality of your photos. The golden hours of early morning or dusk are perfect for dramatic hero shots of the home’s exterior. Many photo editors fake dusk shots; why not capture them for real? For taking real estate photos of the interior of the home, aim to shoot during the golden hours, early morning or late afternoon, when the light is soft and flattering. The natural light will surely add warmth to any room—as long as there is a window!

Try not to schedule your shoot for midday when the sun is harsh, as it can cast strong shadows and wash out important details. You will want to capture rooms when they’re filled with light, so pay close attention to the sun’s direction. Keep in mind the weather as well. Clear, sunny days typically produce the best results. By carefully choosing the right timing, you can ensure your listing photos are bright and welcoming and truly showcase the property’s charm and curb appeal.

If you’re having trouble finding the right light and need finishing touches put on your pictures, consider hiring a freelance photo editor on Fiverr. Remember, the goal is to put a professional touch on the final product to enhance a photo, not to cover blemishes. That’s a big no-no. 

Tip 2: Clean, Depersonalize & Declutter

After your shoot is scheduled, it’s time to put your best foot forward and work with your homeowner to depersonalize and declutter the listing. Homeowners can be very emotional over removing their personal items, so make sure you sell the reasoning—the new owner has to be able to imagine that they live there. Also, make sure to tell them that a neutral home with only a few decorative elements is the key to great listing pictures. 

Here’s a quick checklist you can use to take the sting out of asking them to clean windows and put away toys so that you can take pictures.

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General  Clean all windows and mirrors Remove screens from windows Make sure all lightbulbs work Living Room Remove all family photos from walls, shelves, or tables Hide remote controls Store toys, video games, or other electronic equipment Hide visible electrical cords or wires Remove non-decorative items from coffee and end tables Kitchen  Remove visible garbage cans Declutter kitchen countertops Put all food away Wash dirty dishes Remove refrigerator magnets Take down wall calendars Bathrooms Declutter bathroom sinks and shelves Put away laundry and laundry baskets

Bedrooms Make all beds Put all clothing and shoes in closets Dining Room Remove all mail, papers, or other work from table Front & Backyard  Skim and vacuum pool (if any) Sweep walkways and patios Rake leaves (if applicable) Remove debris from flower beds Trim lawn Move cars from driveway Finished Garages or Basements Straighten items on shelves Remove unused appliances Straighten or remove boxes

You can copy and paste the checklist above if you want to edit it, or just download our spiffier version as a PDF below and add your personal branding using Acrobat Pro.

Tip 3: Set the Scene with Effective Staging

Now that your listing is clean and decluttered, you have a fresh canvas to showcase the property’s best features. Even if a home is already furnished, things will need to be changed to make it look better on camera. If the home is empty and you have the budget, consider hiring a professional to stage it. 

If you want to know how to take real estate photography to the next level or simply on a lower budget, consider virtual staging or creating a virtual tour. Just remember to label your virtually staged images before uploading them to your MLS to avoid violating your MLS guidelines. Check out Apply Design for an easy, affordable way to stage your listing virtually. It only takes 15 minutes to get realistic results. The pictures are stunning, but if you don’t like what you see, they will do revisions for you in no time. Try it today for free!

You can learn more tips about staging a home here: 17 Clever Home Staging Tips From Top Agents (+ DIY Shopping Guide)

Tip 4: Plan Your Photo Shoot Using a Shot List

It’s time to plan the order of the rooms and the details you will photograph. This is called a shot list. It might seem like overkill at first, but planning out your shoot will make it much easier to sort through your pictures when you get back to the office. In most cases, you’ll want to shoot in the same order your pictures will be on your MLS. 

The only caveat here is that you won’t be able to capture a trendy dusk picture of the front of the house if you show up before the golden hour. This is why we recommend shooting the home’s exterior twice: once when you first arrive and once at the end of your shoot. 

Here’s an example of a shot list:

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Exterior of the Home: Full Sunlight

The front of the home: One head-on and one from each angle

The backyard: One shot of the view of the yard from the home, one shot of the view of the home from the yard, detail shots of the yard

Interior of the Home

Capture three angles as well as details and vignettes of each of the following:

• Living room
• Kitchen
• Primary bedroom
• Primary bathroom
• Guest bedrooms
• Guest bathrooms
• Home office
• Finished basement

Exterior of the Home: Dusk

The front of the home: One head-on, one each from right angle and left angle

Pro tip: Remember to turn on the interior lights when you shoot your dusk shot in front of the home for that warm, cozy glow!

Tip 5: Invest in the Right Photography Tools

To get the right shots for your listing, having the right equipment is key. 

• A high-quality camera captures sharp, detailed images to showcase a property’s features and appeal to future buyers.
• Tripods provide stability for clear photos, especially in low-light conditions, ensuring your images look professional and polished.
• External flashes and lighting equipment enhance lighting in dim areas, especially those with little to no natural light. 

Now, if you’re going to ask me which camera to use—I can’t make that decision for you—but I can give you some of the best recommendations we’ve found. Whether you’re looking for the best cell phone camera or the best handheld, here are some of my best recommendations.

That said, here are some basic recommendations for cameras that should work for most real estate photography applications.

Tip 6: Master the Art of Photography Techniques

The reason you take listing photos is to draw in potential buyers to purchase the home. There are many techniques that can breathe life into dull spaces. Nine times out of ten, it’s not the tool, it’s the person using it. The main techniques a photographer needs to use are as follows:

• Rule of thirds for balanced shots
• Wide-angle lenses to capture more of the room
• Angles and perspectives that make spaces look larger

Take the rule of thirds, for example. There is a formula that professional photographers use to compose their pictures that was discovered in 300 BCE. Don’t believe me? Take a look at the photograph below.

Notice how the bowl of fruit on the countertop, the light fixture, and the open cabinet doors all line up at the intersections of the blue grid? Notice how the picture is broken up vertically into three sections that roughly match the three horizontal sections of the grid? That’s no accident. It’s a composition technique that most professional photographers use to take pictures for real estate that just look right, known as the rule of thirds. 

Now let’s look at the same picture composed without using the rule of thirds. All the same elements are there, but it just looks … off.

Tip 7: Use Photo Editing Software

Editing software helps you polish your photos and make them look their best. There are several options out there, most of which will allow you to adjust lighting, correct colors, and remove any elements that take away from a professional finish. Some graphic design and editing software, such as Adobe Lightroom, cost a bit more yet have extensive features that also come with a steep learning curve. More inexpensive editing software, such as Canva, tends to be easier to use and requires no tech skills to pick it up. 

Be sure to do your research and choose the tools that can add just the right flair to your listing photos. Here are a few editing software types to consider adding to your toolkit. 

• HDR software: This is great for combining multiple exposures, capturing a full range of light and detail.
• Virtual tour software: Create virtual tours, offering potential buyers an interactive experience.
• Mobile editing apps: This is handy for quick edits on the go and perfect for enhancing photos directly from your smartphone.
• Drones and videography software: Get stunning aerial shots, giving a unique perspective on properties and their surroundings.

If you’re new to photo editing, check out Canva. It’s beginner-friendly, has free and paid features, and can be used for more than just editing. Use your listing photos to create branded marketing content that’s sure to get that listing sold!

Tip 8: Decide Whether to Hire or Do-it-Yourself (DIY)

I recommend hiring a professional photographer whenever your budget allows. Hiring a pro lets you skip the learning curve and get consistent results for every listing. While your mistakes might not be immediately noticeable to you at first, when your seller compares your DIY photos to the professional pictures in other listings on Zillow, yours will almost always fall short. It’s a few hundred dollars well spent, in my opinion.

If you think you’ve got what it takes and know how to take real estate photos, just be sure your results can measure up so you don’t end up with bad real estate photos. You know you’ve been on MLS making fun of agents and asking yourself, “What were they thinking!” Don’t end up like them.

 Before you make a decision, let’s take a look at the pros and cons of each method.

Frequently Asked Questions (FAQs)

The homeowner has an adorable dog. Should I include her in a few pictures?

Is real estate photography easy?

When should I order photos for a listing?

Bringing It All Together

Learning how to take real estate photography is a blend of preparation, technique, and the right tools. Whether you hire a professional or take the DIY route, focusing on composition, lighting, and editing will make your listings shine bright like a diamond. 

Have any killer DIY realty photography tips we missed? Let us know in the comments.

The post 8 Real Estate Photography Tips for Stunning Listing Photos appeared first on The Close.

Download The Close’s Listing Presentation Template

What Is a Listing Presentation?

A real estate listing presentation is like the championship finals of selling homes; we want to claim victory. Normally, a potential seller shortlists a few real estate agents to meet with before selecting who will represent them in selling their property. This meeting is your opportunity to demonstrate your skills and expertise. You will have the chance to explain what makes you stand out and how you will assist the sellers in achieving their goals.

Benefits of a Listing Presentation

It’s important to understand the value of having a strong listing presentation. It’s not just about being prepared—there are so many benefits to having one ready to go. If you haven’t nailed yours down yet, here are some great reasons to consider putting one in place. 

• It builds credibility, trust, and rapport with potential clients. 
• It gives you a chance to set clear expectations.  
• It gives you the opportunity to increase your income and commissions.
• It improves your confidence and performance as a real estate agent.
• It showcases your expertise and experience in the real estate industry.
• It helps you stand out from other agents who may be competing for the same business.
• It highlights your marketing strategy for selling a home.
• It demonstrates your attention to detail and professionalism.

Components of an Effective Listing Presentation & What to Include 

When it comes to your listing presentation, it’s important to feel confident and prepared. Everyone has a unique approach, so using tried-and-true methods customized to your personality will ensure you feel your best when presenting. Let’s break down the essential factors of each part of the listing presentation to give you a solid yet flexible structure to work with.

1. Introduction & Competitive Advantage

Let’s be real. The true first impression happened when you nailed down the listing appointment. Take the confidence from knowing they’ve shown interest in you and run with it. This is your opportunity to really connect and earn the seller’s trust. Share more about yourself and your background to show them how you can help sell their home.

Examples of What to Include:  

• Years in the industry and any awards and accolades you’ve received 
• Your expertise and knowledge of the local market
• Any relevant stats that show your sales history and the list-to-sale price ratio you get your clients 
• Don’t be afraid to include past client testimonials. 
• Explain the benefits of your brokerage, including the tools and resources provided to you to sell this house.

Pro tip: If you are a high-volume agent, that’s great! It’s totally fine to talk about the busy business you’re running to demonstrate to potential sellers that you are in demand and fully capable. Just remember that some might be concerned that they won’t have your undivided attention if you’re juggling a lot. Use this chance to highlight how you effectively run your business, including any talented team members or agents who assist you in closing deals.

On the other hand: If you’re a new agent and don’t have a portfolio of sales to showcase, highlight your determination to put in the work and give your full attention to their home sale. You can also invite a more seasoned agent to join you to show that you have support and experience on your side. Or, if you’re on a team, leverage the expertise and accomplishments of the team. 

2. Client Questions  

Now that your client knows a little bit about you, give them a chance to share more about themselves, their home, and their goals. This is your opportunity to demonstrate genuine interest and care, showing that your focus goes beyond securing the listing. This may also allow you to discover valuable information that will enable you to customize your presentation as you go.

Examples of What to Include:  

• When do you need to move by?
• Why are you moving?
• Are you purchasing another home? If so, do you need this home to sell in order to purchase? 
• Let’s talk about your backup plan if your home doesn’t sell in the timeframe you need. 
• Are there any issues with your home that I should know about? 

3. Tour the Home 

A realtor listing presentation is not just about showing the client what you can do to sell their home but also about building a relationship. Starting the presentation with some conversation that helps you get acquainted is a way to allow everyone to let their guard down and feel more comfortable. 

Taking a tour of the home will then ease into pricing and strategy conversations. It’s important to allow the seller to guide you through their home before you get into these conversations so that you can get an idea of how the property stacks up to the competition and adjust as needed.

Examples of What to Do While Touring:  

• Compliment the positive aspects of the home. 
• Make a note of things that could be improved to help the sale. 
• Take pictures to remind yourself of things you may want to address. 
• Discuss or take room measurements. 
• Talk about any updates that have been done to the home.  

4. Comparative Market Analysis (CMA)

Now that you’ve had a chance to check out the home, it’s time to review your CMA with the seller. This is the part where you really get into the nitty-gritty of the numbers. Use all the info you gathered during the home tour and apply it to the comparables you share. 

It’s your chance to show the seller how important it is to price their home appropriately and how that directly impacts market time. Since sellers often have a specific price in mind, this may involve some back-and-forth, so make sure you have the data to back up your pricing strategy.

Examples of What to Include:  

• Include roughly three to five homes sold within the past three months. If you need to adjust because of the time of year, try to stay within six months. 
• Look within a half-mile radius of the subject property. If you need to look further out to get comps, increase by half a mile if you’re within the same zip code or school district. 
• Homes that are of similar types of properties
• Square footage and the number of bedrooms and bathrooms
• Include your price range estimate. 

5. Marketing Strategy 

When it comes to listing a property, it’s all about marketing. This is your chance to impress the sellers with your creative ideas to get their home sold. Besides the standard MLS listing, professional photography, video tours, and just listed mailers, show them what makes your selling strategy unique. 

Talk to the sellers about the many different ways you can market their home for sale. This includes off-market options such as promoting their home as a pocket listing before going live on the public market. How about hosting fun-themed broker opens or open houses? Do you have a standout social media strategy? Share some examples, and remember to be transparent about the cost associated with your services.

Examples of What to Include: 

• Package options for professional photography, video, and floor plan  
• How you’ll use direct mail marketing and social media campaigns to get in front of more buyers   
• Home staging and virtual staging options 
• When and how you’ll use reverse prospecting  
• Any additional tools and resources that you can access will help you sell their home. 

6. Home Selling Tips

In addition to showcasing your creativity with marketing, give the sellers some tips on how they can enhance their home’s appeal to potential buyers. Involving sellers in this process will also ensure they actively contribute to selling their homes. Encourage decluttering and suggest small yet impactful changes like a fresh coat of paint, which can help the home sell faster.

Examples of What to Include: 

• Explanation of how decluttering and depersonalization help buyers visualize a home being theirs 
• Before and after pictures of home staging
• How to improve curb appeal  
• Why it’s good to do things like tighten loose screws and replace lightbulbs and outlets before an inspection 
• Staying in the habit of keeping the home clean while showings occur 

7. Your Role & Responsibilities

You’ve discussed your experience, built a solid rapport with the seller, learned more about the property, and discussed your winning strategy. Now is the time to drive home and explain why you’re the right agent for the job. Take this moment to highlight the exceptional support and guidance you’ll provide the seller throughout the transaction. This will give them a better understanding of your responsibilities and what they can expect from you.

Examples of What to Include: 

• Thoroughly review the listing agreement and sales contract that will be used and address any questions. 
• Review your open house strategy. Discuss dates and times so that the seller is in the mindset of working with you.   
• Explain how you will conduct home showings and ask if they have any restrictions on days or times. 
• Reassure the seller that you will provide regular feedback on listing updates and showings. 
• Detail how you will handle price adjustments. 
• Explain the process of presenting offers and negotiating. 
• Reassure the sellers that you will guide them through every step, including during the inspection, appraisal, and closing. 

8. Call to Action

Once you have reviewed and gathered all of the necessary information, it’s time for the final push. Wrap up the real estate listing presentation with a call to action, encouraging the seller to sign the listing agreement. Be prepared for possible objections, as some sellers may not want to sign anything right away. Give them a taste of your negotiating and persuasive skills that you use when working on a deal. 

Examples of What to Ask: 

• Based on the information presented today, are you confident in moving forward with signing the listing agreement?
• I’d be honored to represent you in the sale of your home. Are you ready to kick-start this process by signing the listing paperwork today?
• After reviewing everything today, do you feel confident I can sell your home quickly and for the best price?

Pro tip:  During this last part of the listing presentation, you may experience seller objections like “The Zillow Zestimate is higher than your suggested list price” or “You’re charging more commission than another agent.” Learn how to tackle these objections in our article, “10 Real Estate Objections + How to Overcome Them.”

Overcoming Seller Objections

Although you may boast confidence and feel like you covered all your bases, the decision to sell is big, and some sellers may feel unsure for various reasons. If the seller you are meeting with is struggling to move forward, be prepared to tackle some objections they may throw your way. Here are just a few common examples you may encounter: 

• The Zillow Zestimate is higher than your suggested list price. 
• You’re charging more commission than another agent they met with.  
• They’re considering selling without an agent. 

9. Master the Follow-up

Although this is not part of the actual presentation, following up is a crucial step, regardless of the outcome of your listing presentation. The type of follow-up you send will depend on whether or not the seller signed the listing agreement with you. 

Even if you didn’t secure the listing this time, you never know when the sellers might want to work with you directly or refer you to someone in the future. And if they did sign with you, now is the time to start wowing them and proving why you were the perfect choice.

• You got a signed listing agreement. Send a thank-you and the next steps in the listing process. This would include things like scheduling photography and drafting the MLS listing. 
• The sellers have not signed with you yet. Even though you didn’t get the business this time around, be sure to thank the sellers for their time and encourage them to reach out if they have any questions. You can also add them to an email drip campaign if they have not yet decided to list and sell. 

Extra Tips for a Successful Listing Presentation

You now have everything you need to truly impress potential sellers! Just remember to focus on the little details that will help you hone your skills and improve your presentation. Keep these extra prep tips in mind before meeting with clients.

• Practice the presentation beforehand with a colleague or record yourself. 
• Keep the length of the real estate presentation between 30 and 90 minutes. 
• Leave behind a copy of the presentation or any marketing samples. 
• Leave time for questions and provide an FAQ sheet with commonly asked questions. For example, “Do you work as a dual agent?” or “What mistakes should I avoid in this process?”
• Conduct yourself with confidence. 
• Make sure to follow up after the appointment.
• Use a graphic design program to ensure that your presentation looks professional. 

FAQs

What are the steps to planning a listing presentation in real estate?

What is the difference between prelisting presentation and listing presentation?

Bringing It All Together

You may have heard the phrase “list to last,” which means having a strong inventory of listings is essential for long-term success in the real estate industry. Listings play a crucial role in attracting potential buyers and help boost your marketing efforts. So, honing in on your listing presentation can significantly improve your chances of securing more listings and expanding your business.

While you’re sure to find plenty of listing presentation examples online, keep in mind that what makes it unique is you. What is your favorite aspect of your listing presentation?

The post The Complete Guide for Effective Listing Presentations (+Template) appeared first on The Close.

What is the Zestimate & How Does Zillow Get It?

The Zestimate is a home valuation based on a sophisticated algorithm that considers many factors and data points and is delivered in real-time for both on- and off-market properties. However, it’s important to note that a Zestimate is not the same as an appraisal conducted in person by a trained professional. When a property is evaluated in person, considering all data points, the condition of the property, and any upgrades, it will be the more accurate valuation.

 According to Zillow, there is a method to the madness regarding the Zestimate, which includes a “nationwide median error rate.” For on-market homes, the error rate is 2.35%, and for off-market homes, it’s more than three times that, at 7.74%. Zillow breaks it down even further and shows the percentage of properties within 5%, 10%, and 20% of the sale price.

These numbers show that the Zestimate is generally good at getting within 20% of the market price, gets within 10% a little more than half the time, and only gets within 5% a third of the time. Roughly 20% of properties are off by 20% or more. This discrepancy is real money clients might be leaving on the table—or expecting to pocket. 

Variations to Consider 

• On-market: Zestimates are based on listing price, description, comparable homes in the area, and days on the market.
• Off-market: Zestimates are determined by tax assessments, prior sales, and other publicly available records.
• Geographical: State-by-state data varies in accuracy. The Zestimate in West Virginia, for example, misses the sale price by more than 20%, nearly a third of the time. Properties in western states, like Utah and Nevada, are within 5% almost half the time. 
• Planned communities: They tend to have more accurate Zestimates because the properties are much more homogeneous, making it easier to calculate accurate comps.

How Is a Zestimate Calculated?

A property’s Zestimate is calculated by complex software using an “automated valuation model” that analyzes data points collected from users, public records, and multiple listing services. According to Zillow, here’s what goes into that equation:

• Recent comps (geographic area can be as large as an entire county)
• Home features (bedrooms, bathrooms, and more)
• Physical attributes (square footage, acreage, and more)
• Historical data
• Tax assessments
• MLS data
• Listing price
• Market trends (and seasonality)
• Public data
• User-submitted data

Zillow constantly tweaks and improves its algorithm, and the information input can change over time. For example, it used to be that Zillow didn’t include listing price data, but now it does. Additionally, not all MLSs participate in Zillow’s massive data collection. This results in a much more limited data set, further skewing a Zestimate, so understanding your MLS’s relationship with Zillow is also important.

Are Zestimates Accurate?

There is often a debate about the accuracy of the Zillow Zestimate, and we’ve all seen the jokes. But as much as some real estate agents claim the Zestimate is completely inaccurate, it’s not that cut-and-dry. As a real estate agent, I have learned to use the Zestimate as a guide to help my clients better understand their home value. Let’s break it down further to answer whether Zillow is accurate.

Zestimate accuracy can fluctuate depending on the data Zillow has access to. The listings on Zillow get updated when information is publicly available. So, for instance, if a homeowner makes improvements to their property, this will increase its value. However, unless the local property tax authority adds that information to the public database, Zillow does not know there have been updates, and therefore the Zestimate would be skewed.

Where Zillow shines is in the on-market Zestimates, which are based on the list price data and are far more accurate than the off-market Zestimates. However, neither compares to a custom comparative market analysis (CMA) from an experienced real estate agent. In any case, a Zestimate is great to use as a starting point and could even be a catalyst for someone’s decision to hire a top-notch real estate agent.

Pro tip: Sellers typically already have a perception of what they think their home is worth, often due to the Zestimate, so don’t avoid talking about it. Add a section to your listing appointment checklist that touches on the Zestimate, and use that time to explain it further.

​​Strategies for Talking to Clients About a Zestimate

Believe it or not, the Zestimate has existed for almost 20 years. It launched in 2006 and evolved over time. By this point, the general public has a better understanding that the true value of their home cannot be determined by the Zestimate alone. And while this may be the case, answering “Is Zillow accurate?” is still something we, as real estate agents, have to battle with occasionally. 

We still have clients who use the Zestimate to support an inflated listing price or devalue a home they want to buy, leaving you to answer, “How accurate is Zestimate?” Let’s discuss ways to combat seller objections and leverage the Zestimate with your knowledge. 

Strategy 1: Use Your Data

When conducting your listing presentation, this is your chance to show why you are confident in your listing price. Walk the seller through your customized CMA and compare it to the Zestimate to help give the seller a complete picture of accurate pricing. This is a good time to explain how a Zestimate is calculated and why variances exist.

Pro tip: If you are getting a lot of pushback from the seller because their Zestimate is different from your suggested list price, offer to test the market with the Zestimate price as a pocket listing for a specific period of time. 

Strategy 2: Apply Your Local Expertise

You know your local community better than Zillow does. Use this expertise to illustrate how your price considers new zoning, a great new donut shop coming in around the corner, whether you’ll need flood insurance, or that buyers paid more for the neighbor’s house because it had a brand-new HVAC system. You have the advantage of proximity. Remind your clients that when making giant financial life decisions, it’s OK to back away from a computer and rely on an actual human being. 

Strategy 3: Show Proof of the Inaccuracies

To paint a full picture, it’s important to acknowledge and discuss the potential inaccuracies that can come with the Zestimate. Our clients hire us to help them sell their homes for the highest and best price in the fastest timeframe possible. Pull some examples of Zestimate inaccuracies and explain why that can happen. Remind your clients that a home is only worth what a buyer is willing to pay and that sold homes reflect that accurately. 

Strategy 4: Practice With a Script

Feeling comfortable having difficult conversations with clients comes with time and experience. If you’re unsure how to approach a discussion about the Zestimate, try this script.

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I know you don’t want to undervalue your home, and online estimates, like Zestimates, can be attractive. But here’s the thing—those estimates don’t always reflect the local market or take into account your home’s unique value, and they can be misleading.

My CMA is based on in-depth research of the local area, current market trends, and years of local expertise. It’s designed to help you price your home strategically so you can sell quickly and for the best possible price.
I know it’s hard to hear your home might not match an online estimate, but my goal is to be your advocate and help you get the best outcome. I’m not trying to undervalue your home, but I want to make sure it’s priced right for this market.

Let’s review my CMA together and discuss a pricing strategy that positions your home for success. I’m confident we can agree on a price you’re comfortable with and that attracts serious buyers.

Remember, the longer a home sits on the market, the harder it becomes to sell. Let’s work together to price it right from the start and get you moving forward.

How is the Zestimate helpful? 

While there are many reasons real estate agents don’t like battling the Zestimate or constantly answering, “Is Zillow accurate?” learning to use it as a tool can actually be beneficial.

• The Zestimate is a great conversation starter. 
• You can leverage the Zestimate to show your expertise and further dive into the details of a CMA. 
• It can be a door opener for new business. 
• It can act as a bridge to have difficult conversations, including those about price reductions. 

FAQs

Is Zestimate or Redfin more accurate?

Can a seller change the Zestimate?

Bringing It All Together

Embracing technology and tools in the real estate industry is a way to keep evolving your business. Especially since we’ll likely continue to see more tools and tech in years to come. Zillow was ahead of its time when it rolled out the Zestimate. While frequently getting asked, “How accurate is the Zestimate?” and having to defend local market valuation data can still be frustrating to deal with at times, it continues to improve. Consider it part of your market research and use it to your advantage to help educate your clients.

The post How Accurate is Zestimate? appeared first on The Close.

Bonus: Download this ready-made question sheet for your clients!

Questions to Ask Before the Home Inspection

Choosing a quality home inspector is a vital part of a thorough house hunting checklist. Although homebuyers should interview several candidates, a realtor should have a handful of vetted inspectors to recommend. Make sure to include these questions when choosing the best inspector.

1. What are your credentials?

When hiring an inspector, asking about credentials should be one of your client’s first questions. A home inspector should be licensed and belong to an organization like the International Association of Certified Home Inspectors or the American Society of Home Inspectors. Go to one of these sites and use the search tool to find a licensed inspector, or look up an inspector you already know. Not all states require inspectors to be licensed, but this is not an area where you want to skimp. Credentials provide expertise and reassurance in the inspection report.

If you’re curious about the home inspector licensing process, read more in our guide on how to become a home inspector.

2. Are you bonded and insured?

When a company (or individual) says it is bonded and insured, it has the proper insurance on its business. Therefore, its work in the home or future home is protected. Bonded is like a second layer of protection for professionals working within other people’s property.

While being bonded or carrying insurance isn’t required in all states, an inspector must carry a bond and insurance to protect the client. If anything happens to a homeowner’s personal property during an inspection, the bond and the insurance will protect the homeowner and buyers.

3. How do you stay current with the industry?

The home inspection industry changes along with the construction and real estate industries, so working with a professional who knows the latest news and legal updates is essential. Ask the home inspector how they maintain their industry knowledge. A home inspector who values continuing education shows dedication to their craft and is likelier to be thorough during the inspection process.

4. Can I attend the home inspection?

This is one of the most important questions to ask a home inspector. The potential buyer pays for the inspection, giving them the right to accompany the inspector as they check out the house. Your inspector should expect this question, but some may have specific recommendations, like not having sellers and buyers accompanying them on the roof, attic, or crawlspace.

5. What type of inspection services do you provide?

Some inspectors specialize in specific systems. For example, I used to work with a home inspector who was also a general contractor and a roofer. When he inspected homes, he walked on the roof. Not all inspectors go to this length, so having someone who did that instead of just looking up from the ground was a bonus.

Home inspectors with additional experience in another field and who provide extra services may charge more for their inspections, but the benefits can be worth it. If you or your clients are concerned about parts of the home, ensure your inspector has experience in those areas.

6. How much experience do you have?

There’s nothing wrong with hiring a home inspector with little experience. However, you might have to ask for some references and find out if they have experience in a related field. For instance, previous experience in construction, plumbing, electrical, HVAC, or roofing could mitigate some of their inexperience. A licensed general contractor or builder with a track record who doesn’t have a home inspection license may also be amply qualified to inspect. 

7. How much will the home inspection cost?

Since the homebuyer pays for the inspection, you’ll want to clarify the cost and everything it includes. The average cost of a home inspection across the US is about $300 to $500, depending on individual inspectors, the property type, and the location of your market.

8. Do you reinspect?

Though you and your clients may be eager to finish the inspection and start planning the move, there will be some instances when a home inspector will need to come back for a second inspection. This could happen, for example, if some wood rot needs to be repaired or the seller needs to replace the roof. In other words, a reinspection may be needed after the work is complete if something needs to be fixed before the insurance or the loan can move forward.

Some inspectors will return for a fraction of the original cost or just charge a second full inspection fee. Even though you may not need a reinspection, knowing the expectations in advance is good.

9. What type of report will you deliver?

Some home inspectors will give a detailed report with tons of pictures, which is ideal. Pictures will help you visualize precisely what and where the items are in the home and can help homeowners maintain their homes for years down the line. If the home inspector doesn’t provide photos or diagrams with the report, it might be more difficult to figure out how to tackle any necessary repairs. Ensure you find a home inspector who delivers a detailed written inspection report.

10. How long will it take to receive the inspection report?

When a home is under contract, buyers have limited time to complete the inspection and confirm whether the transaction will move forward or not. If the home inspector drags their feet on delivering the inspection report, that will shorten the time you have to weigh the items in the report and make a final decision. Most inspectors will provide their reports within 24 hours, but discussing this during your interview is a good idea.

11. Will you answer questions after the inspection?

Although knowing what to ask a home inspector before the appointment is helpful, homebuyers and agents often have questions after the inspection. Communicate clearly with potential inspectors about their availability to answer follow-up questions. During your interview, look for someone who is a good communicator and can go over the report in detail, answering all questions in layperson’s terms.

12. Are there any areas you don’t inspect?

Some inspectors have rigid rules about what they do and do not do during an inspection. For example, some inspectors only inspect easily accessible areas and do not move furniture to access certain areas. Additionally, some may not inspect the attic or spaces that require crawling or special gear. In many cases, this isn’t necessary, but it’s ideal to find someone willing to get their hands dirty to understand the home’s condition thoroughly.

Questions to Ask During a Home Inspection

Hopefully, the homebuyers and real estate agent can accompany the inspector as they perform the inspection. This can be a fantastic opportunity to get valuable insight from the inspector on the home’s systems, current condition, and how to properly maintain it. A home inspector can be a wealth of information, so take advantage of your appointment and remember there are no bad questions to ask in a home inspection!

13. I don’t know what that means. Can you clarify?

It’s almost a guarantee that the inspector will point out issues in the home that homebuyers (and sometimes realtors!) aren’t familiar with. These will be some of the best questions to ask during a home inspection because they are golden opportunities to tap into the advanced knowledge of a good home inspector. For example, you can ask the home inspector about the electrical system, the HVAC, or the appliances. If you don’t understand what the inspector is talking about, don’t be afraid to ask for clarification.

14. How’s the condition of the ____?

There are many key home systems that your inspector will go through, and it’s important to learn what they discover about each of them. Even though a professional inspector will likely walk you through these without prompting, be sure to go through each of these listed home features to ask about the status of its condition.

• Roof: Knowing the age and condition of the roof is critical to your home inspection, so be sure to ask for this information. If it eventually needs to be replaced, it is one of the costliest parts of a home to repair.
• HVAC systems: Similar to the roof, get written details about the age, condition, and life expectancy of the HVAC system.
• Electrical system: Ask about the type of wiring in the home, and consider whether it is aluminum or cloth wiring. Ask if the electrical systems or electrical panels will need to be updated and if they’re up to code.
• Plumbing: Ask about the condition of the plumbing and the types of pipes in the home. If it’s an older home, ask if polybutylene pipes are present since they were banned after 1995.
• Foundation or structural issues: Structural issues are usually a deal-breaker for home purchases. Even if there aren’t any major problems, don’t forget to ask if there is anything concerning in the interior or exterior foundation, like cracks or sloping.
• Insulation: Ask how well-insulated the home is, which will require the inspector to check the attic. This is a red flag if the inspector doesn’t check the attic.
• Drainage: Ask the inspector about how water drains from the home and whether any areas could be a concern for pooling.
• Sewage: Ask where the sewage goes and ensure you fully understand this plumbing system. Ask for a grinder pump, septic tank, or gravity pipe for local sewage.

15. Are there any mold concerns?

Mold is a hidden evil that can cause various problems and is not always visible. It could be hiding behind the walls or under flooring. A home inspector must test the air quality to determine if unseen mold is an issue. If the inspector doesn’t test for mold and you have a concern, they should be able to refer you to another professional specializing in mold testing.

16. Any tips on maintaining [insert system]?

Many homebuyers are unfamiliar with the systems in a house. These are vital questions to ask the home inspector during and after an inspection because they can help the owners maintain the home and prevent emergencies for decades. Ask about the maintenance of systems like the following:

• HVAC systems
• Water heater 
• Appliances (refrigerator, dishwasher, washer, dryer, etc.)
• Irrigation systems
• Plumbing
• Electrical

17. Do you see any major red flags?

You’ll pick up plenty of information as you work through the inspection. However, keep this question toward the end of the process. This is when the inspector will have a more thorough understanding of all the home’s systems and the overall condition.

18. Would you buy this house?

This is a fantastic, straightforward question to ask a home inspector. Depending on their answer, you and your clients can get more details on the inspector’s overall confidence in the home’s value. The response to this question must be based on the inspector’s inspection, not aesthetics or home type. Would they buy the home in its current condition?

Questions to Ask After the Home Inspection

Now that you know what to ask for in the home inspection, let’s consider what happens after it’s complete. Here are a few post-inspection questions that both the agent and homebuyers can feel comfortable asking to reassure moving forward with the deal.

19. What are the costliest repairs needed?

This question will be crucial to buyers because it will determine if a property is too risky or expensive. Depending on the buyers’ overall budget, there may be a way to negotiate with the sellers on certain repairs. For realtors, this is one of the most important times to represent your client’s best interests and work with the seller’s agent to reach an agreement that fits both parties.

20. Who do you recommend for repairs?

Since the home inspection industry is related to construction and real estate, a good-quality inspector should have firsthand experience with plenty of contractors and specialists. Plus, many home inspectors own their businesses and know how valuable referrals are to other homebuyers and other business owners. 

21. How can I best maintain my new home?

After purchasing a new home, buyers are typically eager to keep it in pristine condition. While some maintenance may be more straightforward, like mowing the lawn or treating for pests, there are plenty of other maintenance questions you may think of over time. Asking your home inspector about future maintenance tips will help buyers prepare.

For home inspectors or real estate agents, this is a great opportunity to provide value to your leads and clients and potentially generate referrals or repeat business. Consider creating an email or a printable checklist that you can automatically send to your clients. This keeps you top-of-mind and gives your clients an extra level of support that they aren’t likely to forget.

Home Inspection Questions to Expect as a Real Estate Agent

Although real estate agents get accustomed to having home inspections, they aren’t part of most people’s everyday lives. Whether helping a seller or assisting the transaction as a buyer’s agent, it’s important to be well-versed in the basic questions that buyers and sellers may have about the home inspection.

22. Why do I need a home inspection?

Although there are cases when agents make an offer stand out by waiving an inspection, lenders often require it for loan approval. Even for cash buyers, a smart agent will recommend that buyers get one for different reasons.

Sellers can benefit from a pre-listing home inspection by becoming aware of potential issues. This can help agents market the listing more effectively and prevent deals from falling through. 

Buyers should learn as much as possible about the home before proceeding with the purchase process. Even if you’re purchasing new construction, it’s wise to have unbiased, professional eyes on the property. To the untrained eye (most buyers), major issues like foundation problems, termite damage, or a roof past its prime may not stand out.

23. What does a home inspection include?

A home inspection is designed to assess the safety and quality of a home by inspecting all of the accessible areas of the home. Typically, a home inspection covers all the major points in the home, including the following:

• Electrical
• Plumbing
• Heating
• Ventilation
• HVAC systems
• Foundation or structural components
• Roof and exterior conditions
• Insulation
• Windows

24. How does a home inspection affect my loan?

A home inspection may not technically or legally be needed for those paying cash on a property. However, buyers using a mortgage to purchase a home should know that most lenders require an inspection and a home appraisal. Banks want to verify that the house is worth the money they’re providing.

25. What’s the difference between a home inspection and an appraisal?

Many first-time homebuyers ask this question because the processes appear similar to those of casual observers. A trained and licensed home inspector looks for the home’s overall condition, checking the electrical, plumbing, foundation, and roof. On the other hand, an appraiser determines the home’s market value. Although they both inspect the house, they evaluate very different things.

A home inspector typically isn’t looking at the home’s cosmetics, like interior paint, countertops, and cabinets. However, the appraiser will examine those elements to determine how the house compares to others on the market. They may compare the upgrades (or lack thereof) to other homes that have recently sold or are currently on the market to make a valuation of the home.

26. What will the inspector find?

Even in successful home inspections, the home typically has a laundry list of items that must be repaired. However, only some of the items on the home inspector’s report must be addressed as part of the transaction. The inspector should point out the major concerns that are most urgent, and the rest of the items may become a to-do list of projects for the future homeowner. 

Suppose the home inspection uncovers a major problem, like the HVAC being over 16 years old, a major leak in the plumbing, or the roof’s total lack of life expectancy. In that case, the transaction must be negotiated or could fall through. For the seller agent, you’ll have to help clients decide what steps to take to correct the issue. Buyer’s agents should sit down with their clients to discuss whether this house is right for them to purchase.

FAQs

What are three questions you may ask the inspector?

What will a home inspector typically evaluate?

What should I look for during a home inspection?

Bringing It All Together

Home inspections can be stressful for all parties involved. However, when good real estate agents and qualified home inspectors work together, the process can be pain-free and help buyers make wise decisions. This list of questions to ask during a home inspection will help home buyers and real estate agents alike be fully prepared for a successful inspection.

The post 26 Critical Questions to Ask Home Inspectors appeared first on The Close.

What Are Real Estate Agent Tax Deductions? 

Individuals and businesses are taxed at a certain percentage defined by their real estate taxable income. To reduce the amount that you are taxed, you want to lower your taxable income as much as possible by deducting certain expenses.

For expenses to qualify as real estate agent deductions, they must generally be considered necessary and ordinary within the business context. For example, if an independent farmer were to itemize their tax deductions, then their animal feed cost would be deemed necessary and ordinary. The IRS sets specific criteria for what can be deducted for a business based on profession and expense type. 

Why Should Real Estate Agents Claim Tax Deductions? 

Most agents are provided with a 1099 tax form, which means not only is your commission not instantly taxed, but you will also be considered a nonemployee and pay self-employment taxes on all sources of income. Therefore, you want to maximize as many tax deductions for real estate agents as possible to lower your overall tax burden. 

Agents and brokers often incur various expenses related to their business activities, such as traveling to properties, marketing listings, and maintaining an office. By leveraging the available real estate agent tax deductions, agents can ensure that they are not overpaying on their taxable income.

QuickBooks is a powerful tool that can significantly aid real estate agents in managing their finances and tracking tax deductions efficiently. This software allows agents to categorize expenses, monitor income streams, and store receipts digitally. Keeping precise records through QuickBooks ensures that all deductible expenses are accurately captured throughout the year. This can be especially helpful when preparing for tax season, as agents can quickly run detailed financial reports that provide a clear overview of potential deductions.

15 Realtor Tax Deduction Items

Real estate agents can benefit from understanding and using various realtor tax deductions specific to the real estate business. These deductions are tailored to offset the costs of real estate activities and include expenses for donations, continuing education, and home offices. By taking advantage of these opportunities, agents can reduce their taxable gross commission income and lower their tax liability. 

So, if you’re wondering, “What can real estate agents write off?” here is a list of the top 15 real estate agent tax deductions every agent should know about: 

1. Home Office Expenses

Home office expenses added on Schedule C, Line 18, allow real estate agents to deduct costs associated with maintaining a home office if it is their principal place of business. These deductions can include a portion of rent or mortgage, utilities, insurance, and office maintenance. In 2024, agents can choose between a standard deduction of $5.00 per square foot (a maximum of 300 square feet) and itemizing actual expenses based on the percentage of the home used for business. 

2. Vehicle Expenses

Suppose an agent uses a car for business purposes. In that case, they can use a vehicle deduction on Line 9 of Schedule C. This deduction is only available if you use your car exclusively for business. You can deduct the vehicle cost, mileage, gas, and any repairs for up to $28,900. However, if used for personal and business purposes, you can only deduct the costs associated with the portion used for business by considering the business mileage. There is no cap on how many miles an individual can deduct.

3. Marketing & Advertising ​

This deduction includes all costs related to marketing and promoting a real estate business, like digital advertising, print ads, billboards, and promotional materials. These expenses are 100% tax deductible, so agents can deduct all costs of marketing their business. Make sure to include this deduction on your Schedule C, Line 8.

4. Professional Fees 

Agents can deduct fees paid for professional services related to their real estate activities on Schedule C, Line 17. These services include payments to lawyers, accountants, business consultants, and other specialists who provide advice and services that help maintain or improve the business. As mentioned above, these real estate expenses must also be considered “ordinary and necessary” to be deductible.

5. Professional Development & Training 

Costs incurred for education and training that enhance a real estate agent’s skills and knowledge are fully deductible on Schedule C, Line 27a. These costs may include educational activities such as seminars, workshops, specific real estate designations, and courses relevant to the real estate industry. According to H&R Block, agents must be prepared to prove that these educational activities will help maintain or improve the business. 

6. Continuing Education 

Real estate agents will need to complete continuing education to maintain licensure. Although slightly similar to the professional development and training real estate salesperson tax deductions above, expenses for required continuing education will fall under the ​​requirement from the IRS that it is an expense required by your employer or by law to keep your current job. However, the IRS specifies that such education expenses imputed on Schedule C, Line 27a, must not qualify the agent for a new trade or profession, ensuring that the education is directly related to their existing role.

Agents who need to renew their licenses will be required to take continuing education courses. The CE Shop is a great option because of its LEAP learning platform and online format. The platform includes features like progress tracking and flexible online access, allowing agents to learn at their own pace and schedule. Whether you want to expand your expertise or simply keep up with mandatory education credits, The CE Shop equips agents with the tools needed for success.

7. Office Supplies & Equipment 

Real estate agents can fully deduct the costs of business supplies and equipment essential for their business on Schedule C, Line 18. Items include everything from high-tech items—like laptops and cell phones—to everyday office supplies—such as paper, pens, and staplers. Keep detailed records and receipts of these purchases to maximize your deductions at the end of each year. 

8. Travel Expenses 

Travel expenses for business purposes are tax-deductible for real estate agents and documented on Schedule C, Line 24a. Deductible travel expenses can include visits to properties, client meetings, or industry conferences. Agents can claim costs associated with transportation, lodging, and other necessary travel-related expenses directly related to conducting business activities. 

9. Meal expenses 

Taking out clients for a meal or attending business-related meals can be partially deducted. Agents can deduct 50% of the total costs as a tax deduction. It’s best practice to keep the receipts and write down who you had a meal with and what it was for as a record if questioned in the future. This deduction can be recorded on Schedule C, Line 24b.

10. Real Estate License & Dues 

On Schedule C, Line 23, costs related to maintaining a real estate license and dues paid to real estate boards or your brokerage are deductible. Since these costs are usually due annually, it should be easy for agents to remember to include them in their tax filings. 

11. Professional Insurance Premiums

Some agents must maintain insurance premiums like professional liability insurance, also known as errors and omissions (E&O) insurance. The costs for the insurance premiums are considered necessary business expenses and, therefore, allowed as a business tax deduction to be added on Schedule C, Line 15.

12. Health Insurance 

Most self-employed real estate agents are not provided health insurance through their brokerages and must secure their own policies. The health insurance premiums can also cover spouses and dependents. The expense is tax deductible when added to Schedule C, Line 14, and can offer significant tax relief due to the high cost of healthcare. 

13. Desk Fees

Some brokers will require agents to pay desk fees for office space, resources, and support services. Sometimes, agents must pay out of pocket or deduct the fees from their commissions. If the fees are deducted from commissions, agents need to remember that this expense is still incurring and remember to document it on Schedule C, Line 10.

14. Professional Memberships 

Fees for memberships in professional organizations like the National Association of Realtors, which is $156 per member in 2024, are deductible as they are required to perform real estate activities. This expense can be documented in Schedule C, Line 27a. Professional memberships geared towards recreation, pleasure, or social purposes do not fall under this category and are not tax deductible. 

15. Charitable Donation

The charitable donation tax deduction isn’t specific to real estate agents but must be considered. For an agent to use this tax deduction, the charity must be an IRS-recognized nonprofit organization. Donations may include cash gifts and donations of goods or services. Proper documentation, such as receipts or acknowledgment letters from the charity, is essential for claiming these deductions on Form 1040, Schedule A.

FAQs

What records do I need to keep for tax deductions?

What is the difference between standard deductions and itemized deductions?

How long do I need to keep my tax records?

Bringing It All Together

After completing your first tax return, the process generally becomes more manageable each year. Many new real estate agents initially overlook crucial real estate agent tax deductions, often leading to unexpectedly high tax bills. Agents can significantly reduce their tax liability by staying proactive about these deductions and maintaining meticulous records. 

Feel free to enlist the help of a good tax accountant to help you stay on track. You will need to keep good records and have a basic understanding of tax requirements from the start. By taking time throughout the year to look at your expenses and realtor tax deductions, you can safeguard against future financial surprises.

The post Top 15 Real Estate Agent Tax Deductions appeared first on The Close.