My sweet bride and I recently had a land listing in an up and coming area northwest of Phoenix (Wittman, for those that know it or care). It was a little over 2 acres, and while it did have some structures, the values was completely in the land. We received several calls on the property, but alas, we got no offers and the listing expired.
We have failed our clients.
I'm not saying that we are failures. I'm not even saying we failed because we didn't sell the property.
We failed because we FAILED TO EDUCATE THE CLIENT.
There were several things we did wrong on this listing:
- We failed to educate the client on the comparables. Many times it’s difficult to find good comparables on a land listing. In this case, there were several similar sized parcels recently sold. The problem with these comparables was that none were in a flood plain, while a portion of this listing was in a flood plain. That would make this property typically sell for less than the comparables. How much less is difficult to say. Despite the flood plain issue, the clients wanted their property listed for significantly more than the recently sold land around them.
- We failed to educate the client on emotionally detaching themselves from the property. This was a tricky one as our clients recently deceased father had owned the property for years, always intending to build his “dream home” there. The clients were naturally very emotionally attached to the property and they let their emotions get in the way of pricing and clearing the property. Oh, we spoke about emotional detachment, but we should have done a better job explaining the impact of it.
- We failed to educate the client on getting the property ready to show. Land is not like a house, there’s not a lot you can do to it to prepare it for showing. Particularly raw desert land such as this. However, there was a LOT of junk on this property. An old car, building materials, tires. Parts of the property were overgrown with man-sized weeds. We told the clients the land needed to be cleared. We got the, “Yes yes, we’ll do that right away, but let’s get it in the MLS first” speech from the clients. And of course, they never cleared the property. I’m certain the few that looked at the lots couldn’t see past all the junk on them. There was a lot of potential in these lots.
There were ways we could have prevented this failure. We should have gotten a commitment to price reduction over time. We should have been more aggressive in helping them understand their listing was overpriced. We shouldn’t have listed the property until it was cleared. Maybe we shouldn’t have even taken the listing. The clients were so wrapped up emotionally in the land. We probably should have told them to sit on it for six months until they could detach themselves a little more. I’m not even sure they *really* wanted to sell the property. I think they can sit back now and say, “Well, we tried to sell Daddy’s land, but we couldn’t” and now they can keep it and not be forced to make that emotional break.
But I still feel like we failed our clients. Educating your clients is one of the most important things a good agent does. But one of the most important things we can do as professionals is learn from our mistakes and failures so that we don’t repeat them. And I think sharing our mistakes may be more important than sharing our successes. We can all learn from each other.
Hi Jay and Francy,
Yep, this happens to the best of us. I feel the same way when I have a listing that doesn't sell. What could I have done better? Why wasn't I stronger in my advice? And I, like you, place the blame on myself. This is how we learn. Fortunately, the road to success is paved with failures. We fail, we pick ourselves up, we learn and we move forward. Great post.
BTW, how much is 2 acres in Arizona, in the desert?
Nice to hear such honesty!
I think we've all been there, done that. That's why our years of experience are invaluable to our future and our clients bottom line!
BTW, why do you list so far out of town? I think it would cost more in gas in my H2 than the total commission would be... LOL :-)
Sincerely,
Matt Pellerin
PhoenixHomes.com
You didn't really fail; like Thomas Edison (invented light bulb, phonograph, movie projectors, etc.) you just found a way that didn't work. ;-)
Edison was well known for his quote when asked by a reporter how it felt to fail so many times while trying to invent a filament that would burn longer in his light bulb replied: "I have successfully discovered 5000 ways that do not work and I do not need to try them again."Failure, like beauty, is in the eye of the beholder.
Back to back comments with "BTWs"!
Bryant - Where this listing was, land is about $100K an acre. That's because there is water, electricity and paved roads nearby, if not on property. Just down the road, you're looking at $15 - $20K/acre but there's no electricity or water nearby, and you pretty much have to have a high profile 4WD vehicle to get to them. Speculators are snapping it up though because who knows what will happen growth wise in 5 - 10 years.
Matt - My Jeep gets better milage than your H2! Actually we're out that direction frequently for off-road fun and Francy has cornered a little piece of the market out there catering to out of state owners. Sales have been fairly slow of late, but we expect it to pick up since it's finally starting to cool off...
To the others, thanks for the support. Lessons learned. Not the first time, won't be the last...
Hi Jay & Francy,
As usual your post is thoughtful and helpful. Losing a listing by expiration is very frustrating. Land is so tough, sometimes it takes years to sell, so don't be so hard on yourself.
I also "buy into emotion of the sellers". Have you ever fallen in love with a listing that just didn't sell....very perplexing!
Jay and Francy:
YOU HAVE SUCCEEDED...
.In making one of the finest blog entries I have yet read on Active Rain.
.In rattling that nagging voice in every conscientious Realtor who get wrapped up into the value a seller places on his or her property--the voice that tells us to GET REAL and see things from a buyer's perspective.
.In reminding us that we need to keep reminding our sellers that they never get that second chance to make the first impression--AND THAT THERE IS NO TIME LIKE THE PRESENT TO GET RID OF THOSE OLD TIRES, TIRED CARS, RUSTED TOOLS AND ANCIENT WEEDS. JUST DO IT!!!
Unfortunately, some people are just not ready to accept the truth about their listing. Not taking the listing would probably have meant that they would have listed it through another agent who might have done a poorer job at communicating with the client.
You may have done everything correctly under the circumstances and they were just not ready for reality. In the future, when they are a little more willing to accept the value of a professionals opinion, they can list the land with you again and get it sold for what it is worth.
It is great that you took the time to think of possible options that you could have tried to make the situation better, in hind sight. Many would just move on and learn nothing from the experience. Once again you have shown us what great agents need to do on a regular basis.
I used to live in Litchfield Park so I know Wittman. I'm guessing your listing was in Clearwater Farms. If so, that is a really hard subdivision to comp. Lots of custome homes. rodeo arenas, stables, chicken coops, etc.
It's an awesome subdivision but each property is unique. Don't be so hard on yourself.
We've got our favorite little 4X4 spots too! Since we've owned the H2 we've really beat it up. All kinds of Arizona pin-stripping, a few small checnks of tread missing, replaced a few of the steps, etc.
What a ball living, working and PLAYING in the Sonoran Desert!
Matt Pellerin
PhoenixHomes.com
Great sentiments, Jay ... I'd written something similar once upon a time on my blog after watching someone cancel a listing with me only to re-list with someone else at a higher price and with a lower co-broke.
We're real estate professionals. We're not miracle workers. I'm working to convince myself to be more steadfast in working with clients, particularly sellers. The market is what the market is. If I can't educate them and help them see where things really are, then I'm not going to be able to provide them the service they need the most.
Confirmation that I may know what I'm doing comes in the fact that not a single expired listing of mine has been sold by the second agent in, either. So at least it's not just me. :-)
Jay and Francy
Dealing with land is the hardest I have seen. Even new home buyers are easier than dealing with just land. Especially with no septic permit or well makes it worse and then you are left with no offers and just being a secretary to every one else, which just ties up your valuable time. And then we are not paying attention to the ones we need to.
You may have failed to sell the lisitng, but y ou have not failed.
You have gained a wealth of knowledge wisdom experience and humility.
You have honestly shared with your peers, and helped us with your insights.
As hockey great Wayne Gretsky says The only shot you're sure to miss is the one you do not take.
You took a shot, you missed and now your technique has been perfected.
Thanks for the post.