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You are here: Home / 2011 / Archives for February 2011

How do you value your time?

February 23, 2011 by Spencer Barron

Do you value your time? Harlan Ellison, a Hollywood writer, had this incredibily irreverent rant that resonated with me. It resonates with me because people often ask me to give my work away for free.

Plumbers and electricians often get paid just to show up. Appraisers get paid to show up. Inspectors get paid when they show up. Real estate agents on the other hand, are often expected to give their opinions for free before they have even been hired. An experienced agents opinion could be worth thousands of dollars to the homeowner by the time the home sale reaches fruitition. So why do agents give away their best ‘stuff’ for free?

I can’t help but wonder if the National Association of REALTORS and large brokerages have effectively homogenized the value of agents. It’s in all of their marketing. Claims that working with a paticular brokerage or working with a REALTOR alone is what will guarantee great results. I wonder if people believe that.

I would recommend to any agent to reconsider how they go about their business. How they handle listing appointments and what advice they give potential buyers when discussing a paticular property, especially before getting something in writing.

Do you view yourself as a commodity? Are you really that easily replaced? If you have a unique knowledge and can offer advice that will help people make thousands more on their homes and save them countless headaches, shouldn’t you act like it? Do you communicate your value proposition effectively? Do you prove it in the service you offer?

It’s all about how you are going about your business each day. Chances are, if you don’t value your time, no one else will either.

Filed Under: commissions, Denver Real Estate, Denver Real Estate, Marketing

Does price per square foot matter?

February 4, 2011 by Spencer Barron

Only to the lender. I should qualify that a bit. In a true apples to apples neighborhood in the suberbs, the price per square foot (PSF) of the comparable sold homes matter. Especially to the lender who will be lending on it. They need metrics like this in order to explain to shareholders why they lent the money.

Builders use price per square foot for an area to help project their potential profits compared to their cost to build.

Investors can screen neighborhoods for homes that are significantly below the average price per square foot for the neighborhood.

For you and I. We need to be more specific. One way is a comparative market analysis or CMA.

There is one certainy though, to determine the value of a property, you can’t simply take the square footage and multiply it by the area’s PSF or even the comparable home’s PSF. It’s just not going to get you where you want to go.

As an example, I once met a man that built a massive addition on the back of his house. He added over 2000 square feet (SF) to his home. He then did the calculation; my home is 3400SF X $200 PSF = $680,000. Unfortunately, he simply added massive rooms without any appeal to them. He added only one jack and jill style bathroom for the 2000 SF he added. That was supposed to be a shared master bath. Needless to say, buyers didn’t see it and had a 100 other options for under $680,000 that were superior.

He ended up selling for $385,000 or $113 per SF. For him, using price per square foot to determine his value sent him down the wrong path by more than 40%.

Filed Under: Denver Real Estate, Marketing, value

Ten ways to use QR-Codes (bar codes) for your real estate business.

February 3, 2011 by Spencer Barron

QR-Codes, those cute little square bar codes, seem to be popping up everywhere. Businesses can use them to link real world places and objects to online content.  You can communicate all sorts of information in the codes which allow for a wide variety of creative uses. I recently started putting together a plan to incorporate these into my business. Here’s my top ten ways to use QR-codes for real estate.

1. Put contact details in a code on the back of a business card. This will make it easy for people to add you to their phone contacts.
2. Put it in your craigslist ads. Techy and bored, your target audience might just use their phone. This is probably the best way an online to online link might be effective.
3. Place it in the last slide in a video upload, where a normal link wouldn’t work.
4. Have the code start a text message to you requesting more information about your service or a property.
5. Put QR-codes on your flyers that link to a specific landing page for that property for more info.
6. Link to a youtube video tour of the property…put it on your sign or box flyer.
6. Use a QR-code to drive traffic to a specific neighborhood IDX search on your website.
7. Yard signs to peek the interest of the tech savvy.
8. Create a “send this home to a friend” email straight from the yard sign.
9. For farming with postcards, link to a neighborhood report with specific sales information for your farm area.
10….umm… I ran out of ideas, feel free to put your number 10 in the comments.

Why should you do one of these? Because it’s cool, it’s free, it calls for immediate (easy) action from the client and it’s another way you can track your results.

Here’s a cool site to check out what QR-codes can do. —> QRStuff.com

Filed Under: Denver Real Estate, Featured, Marketing, Technology

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