FranklyCRA: A Comparative REALTOR Analysis. Unleashed.
Imagine legally eavesdropping onto the conversation of the listing agent, with buyer in tow.
You know, the one that goes like this, “Well, in my experience I think you should…”
Well what if I could tell you there was a way to know what that experience exactly was? Trends that the other agent repeats. Yep, and I have been doing it for 4 years.
A REALTOR friend that I taught this technique to, and works for one of the big boys said, “No Stop, Don’t Tell Anybody!”
So, could that be interesting data? Maybe? Maybe not?
DEFINED: Frankly CRA ™ technique where one agent can run a report to view the last 5-50 sales of the other agent. Showing you their style and pattern. Are they an overpricer? Are they a weekend warrior, do they create bidding wars? I find it even more useful then the traditional CMA (Comparative Market Analysis). Note this is just 1 of a dozen techniques to figure out a strategy to offer on a place.
Example 1: FranklyCRA on a listing agent, it helped us get a LOWER price.
I found that she was a “chronic overpricer, 30 day price dropper.“ And recently she had 5 deals where she dropped the price exactly after 30 days. I had a buyer interested in paying near full price. It was 28 Days on the Market. After looking at the report, we know that she already whispered into her client’s ear that it was time for her “usual” $25,000 price drop soon (also she then sells them within 4 days thereafter). So we offered $30K below list, and we GOT IT. The client was willing to pay more, so they were thrilled.
I was rebating at the time see “I used to rebate, but then I got good.”
Is it cheating? Nah, it just has to do with knowing how the MRIS database works and putting sold data to good use.
This information saved them $5-20K since they really wanted the house and were willing to pay more. They didn’t care about my rebate, they just cared about the unexpected savings that I helped them get. At that point, my focus turned to saving people a greater NET, vs handing over my commission to get more business (a great strategy for newbies and pencil pushers).
(Side note: Why do some Realtors always overprice? See “buying a listing”).
But Frankly CRA can also show you data that might lead you to spend MORE! What! Another scam! “Trying to have your clients overpay so you get more! You should be arrested, sneaky bastard!”
No. Settle down Beavis.
How can that be good? Well data is king, and it is all about VALUE, not about % off list (see Lowball Myth video).
Example #2 Another listing agent look up resulted in a HIGHER offer.
My buyer found (sidenote: usually my buyers prefer to do the 6 hours a day of searching, like a hobby) a $350K TH in Alexandria. It was the 1st week on the market.
My client says, “I need this house, I want to offer $20K off.” My reply is, “Hold on we aren’t Redfin” (no offense, I love Redfin, but their model is different, their buyers call the shots and even submit offers online.)
I ran a Frankly CRA report. Turns out the agent is a “proper price, fast seller”: 8 of his last 10 sales in that exact community sold within 7 days for full list. That, coupled with a ton more data… “do you still want to offer $20K under, or do you want to actually buy this place?” (side note: It is easy to get caught in the Vegas style machismo of getting a “deal” and lose the focus which is to find a home for the right VALUE, VALUE,VALUE, not %off, %off, %off, for that go to Bloomingdales.).
Sure we could offer less, but my stats showed we would have a 20% chance, and actually make it easier for them to sell it to somebody else (people love making offers on places with offers, subscribe to the blog, I have a detailed diary of a bidding war coming soon).
As an alternative, we could go buy the $50K overpriced place for $30K under list (ie overpay by $20k)and you can brag to your friends, or we can strategize to keep this from getting bid up.
This blog post would be too exhaustive to go into more detail (and there is a ton), and no we didn’t “just offer list.” Just last week I won a bank property, and we were NOT the highest offer. Smart offers (like ones where you tell the listing agent you will risk your entire commission because you are confident you will close it on time.)
Example 3: Frankly CRA uncovers Weekend Warriors and Newbies.
It can show me if an agent is brand spankin new! If you think I don’t take a completely different negotiation strategy with a newbie, vs a 20 year veteran, then I hope you hire one and I get to be on the other side.
Also do they tend to do $200K deals and we are selling a $800K place? Is the agent from MD and somehow got stuck in a random Arlington listing? All this intel matters (at least I think so but I might be full of it?).
Example 4: Frankly CRA to look up the BUYER AGENT’s background (when I list).
I sold, and closed, my mom’s listing to a new agent in 4 days for full list. 3 agents said it was overpriced. What a compliment. Reputable agents (including one of my own, and one on the board) said it was overpriced, yet we got full list (sign up for blog, that detailed post is coming soon)
Example 5: Frankly CRA to look up actual sellers/owners prior 10 year selling history (when I’m the buyer agent).
This seller had a $1.8 million home in Great Falls. I did a look up for the last 10 years. They were owners of two other properties (300K + 700K). Each took 200 days and sold exactly for 15% under list!
Unknowingly, our offer, based on a ton of other metrics was also 15% under list. Coincidence? I think n
er=”0″ />ot. The seller was a “15% overpricer, long holder.“
Starting to sound like ordering at Starbucks? (Something I still can’t do right)
Again with builders. Either within one condo building or if they sell 5 houses a year, run a Frankly CRA on their Realtor coupled with that exact builder. What percentage below did that $1.2million builder take last month? Do you think that might be relevant? I think so, but maybe I’m just a data guy. Maybe what really matters is your gut feelings?!
A good friend of mine bought a detached home new construction builder (he used his aunt, who was a Realtor). He was going back and forth. They were within $20k of list. It was 100 DOM. He bought it! Without telling him, I then ran a Frankly CRA. The builder recently took $50k below list for the same DOM… might he be bluffing… very possibly. (Oh well, at least he can save face with his aunt at Thanksgiving)
Example 6: (New) Frankly CRA on Banks!
Some banks will price aggressively and get bid up. Wouldn’t you want to know about the bank’s last 10 deals and how 7 went over list? Well you might not be as quick to lowball on day 3, now would you be?
Related background research… Look up a listing agent’s last 10 deals and contact some buyer agents for those deals. Ask them, “Hey when you bought that place, was there a ton of back and forth, or did they take your first offer?” Or “Hey, I see you got $50k under, did you all come in at $50k under, or did you start at $80k under?”
So all of the above just scratches the surface of what we do. Part of me wants to bury this post, so the competition doesn’t know what we are up to, but part of me says it doesn’t matter if the other side knows our strategy.
WHAT IS THE POINT?
It is important for consumers to know the difference. Not all Realtors are paper pushers, and a good one can actually save you money. Our company is NOT just bullet points, or a checklist of services to see whose list is longer. This stuff isn’t taught by the cattle call-take-everyone with a heartbeat large firms .(test that theory, call your favorite large company and say you are thinking about getting a license).
This STUFF (and other stuff, ie subscribe to this blog) NETS YOU MORE.
If you already have an agent see if they can run a Frankly CRA for you. If they look at you funny, send them here for the bullet points. Also, if you haven’t already, make sure to check out the Wiki MLS, FranklyMLS.com
If you read this via RSS, or email, come back to Blog.FranklyRealty.com to read the comments and add your own.
Written by Frank Borges LL0SA- Broker FranklyRealty.com
See you at INMAN!
(please report typos, so I don’t look dumb)