FranklyCRA: A Comparative REALTOR Analysis. Unleashed.

(Warning long a** post, but my best of year.)

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)

  • 22
  • July
  • 2008

98 Responses to “FranklyCRA: A Comparative REALTOR Analysis. Unleashed.”

  1. Ben Myers, GRI, REALTOR, Boise, Idaho, USA (Jagen Realty) says:

    I like to see a fellow number cruncher at work. I like the way you think outside the box. Good luck!

  2. Tamara Inzunza, Realtor Alexandria, VA (McEnearney Associates, Inc.) says:

    Frank, you outdid yourself with this post! I’ve been doing this for some time, but I usually do it when I’m the listing agent…reviewing a contract that has been submitted. I like to see the track record of the buyer agent, i.e. how many deals they’ve done as well to get a feel for their experience level. I don’t think it’s so much a secret, just something a lot of people just don’t do. Great post!

  3. Dan Hartman (Province Mortgage Associates) says:

    Wow, Frank, great way to use the mountains of available data! I wish there was this degree of data available about my competition.

    Dan

  4. Nestor & Katerina Gasset, Realtors® Wellington Florida Luxury Homes (International Properties and Investments, Inc.) says:

    Frank- This is a great post with a lot of great ideas. Our immediate market is so small and I am very good friends with agents and my two best friends are also agents. We all get along very well and know what each M.O. is. We have a core group of us that are old timers and have been here for a long time. We eat and play together, we even give each other referral fees for passing on listings and buyers. I like it here. It is the nicest climate of agents I have ever worked with.

    The only thing that I would caution is to the line that should not be crossed in badmouthing another Realtor(R) per the Code of Ethics.

  5. Karl Burger - Pensacola Real Estate News (ERA Beach Ball Realty) says:

    What a great post. I never thought of that. In my opinion, any data that is available should be used to the benefit of your clients. I’m printing this one and studying it. Very impressive. And so kind of you to share your secrets

  6. Karen Monsour,REALTOR® Broward,Palm Beach,Miami/Dade! 954-464-4194 anytime! (EXIT Team Realty) says:

    Great post. I have checked on other agents from time to time, however not to this extent! Great idea’s, thanks for sharing, now can you delete please? :-)

  7. Peter Diamant says:

    Frank,

    a truly informative posting.
    This has been our experience exactly. Looking forward to seeing from you more articles like that. All the best!

  8. Patricia Kennedy (Evers & Company) says:

    Frank, and I thought I was the only one who tried this! You are so funny!

  9. Diane Bell, Hilton Head Real Estate, Bluffton (Charter 1 Real Estate, Hilton Head, Bluffton, SC) says:

    Frank,

    I definitely admire the amount of work that you put into researching other agents. I don’t think we can do this in our MLS–is that how you do it where you are?

  10. Dawn Maloney, ABR (Geneva Chervenic Realty) says:

    Just had a discussion with buyer about this last night – I don’t have to run these on certain agents – you just know after a few years. The agent’s listings are generally priced dead on, and don’t sell ONLY if they are “issue properties”. Agent knows this and fights for price and generally gets it – you will never lowball this agent’s listings. I’ve only seen this agent miss once in a blue moon.

    Fantastic post – I’m definitely going to look and see what MY pattern is!!!

  11. Greg Steffens (Coldwell Banker Sky Ridge Realty) says:

    Good stuff here. I’ve already pegged a number of agents who habitually price too high and/or too low. I know which will “buy listings” and walk the prices down over time. Any little bit of info helps and makes you look really on the ball to your clients. Great post…

  12. Donna Grady (Keller Williams Realty) says:

    Now turn the tables and do a FRANKLY CRA on yourself. See what you show others. I think that if someone did one on me I would be all over the page because I really don’t think that I service my listings the same. I think I will run one on myself just to see. I do know some Realtors in my market that are consistent.

    One market strategy that I use is to send my listings to the top 25 selling agents in our MLS. So I have to run a FRANKLY CRA in my MLS to get the list.

    Great Post.

  13. YVETTE REALTOR IN WILLIAMSBURG VIRGINIA (LIZ MOORE & ASSOCIATES) says:

    FRANKLY, your post wasn’t that long, but it was certainly worth the read. You’re brilliant!! I’m subscribing to your blog now!!

  14. Jay Norlund (Keller Williams SD, CA) says:

    Good stuff for old and new alike.

  15. Kerry Lucasse (Keller Williams Peachtree Rd) says:

    Genius! I am going to put the CRA to use this weekend. Thanks for the great info.

  16. Derenda Grubb (CENTURY 21 Bessette Realty, Inc. says:

    Very interesting and I am very eager to try it out. It is always best to know as much about your opponent as possible, if you consider the opposing agent an opponent. I look forward to reading more about this and other ideas along this topic. Thanks.

  17. Terrylynn Fisher StagersLIST.com Buy Stage Sell (Diablo Realty) says:

    If you want to stay under the radar, well DON’T GET FEATURED!!! And make it boring…Enjoyed reading this, really did.

  18. Karen Tindall (Keller Williams) says:

    Great Stratagy, New to this site. Glad I found value the first time in.

  19. Margaret Woda, Maryland REALTOR (RE/MAX VISION) says:

    Well, I don’t call it that, but it is part of my preparation for writing an offer. However, you have to be cognizant of the fact that it isn’t always a complete picture – For example, I don’t care about “the glory” any more (been there, done that), so many of my transactions are done in the name of my partner – this is true for many teams and partnerships. So – good idea, always do this type of research, but also realize it may not be 100% of the picture.

  20. Sheila Reeve says:

    I liked the response of the Keller Williams agent in Athens. He prefers to work from his own strengths rather than the weakness of other agents. Now that, in my opinion, says a lot about his integrity and how he perceives his own strengths as an agent.

  21. Anonymous says:

    Frank…your mind is a whir with analysis. Keep up the super sleuthing.

  22. Connie Harvey (Prudential Woodmont Realty) says:

    Frank, long, but very worth the read! Thanks for the ideas.

  23. Sally & David Hanson, Southeastern Wisconsin Realtors (First Weber Group) says:

    Lovely….
    I like it …BUT…..I don’t think that we can find production by agent on our MLS which would mean you could look forever thru 6 counties to get a handle on what they do.

  24. Adam Waldman - Long Island REALTOR® (RE/MAX Best) says:

    FRANK – Your approach is very interesting. I think that you have to be a number cruncher to appreciate what it takes to put forth this kind of effort. I have done similar number crunching, but not to this degree, although I may start now.

    I can’t tell you how many buyers have asked me what they should offer to get the house for “X” price. I have explained time and time again that there is no formula, but maybe you’ve proven me wrong. However, buyers do have to realize that properly priced homes sell faster and for close to asking price (or full asking price) whereas overpriced homes sit on the market, and continue to do regular price drops.

  25. Raymond Camp (Prudential Discover Real Estate) says:

    Good morning Frank, As a relatively new salesperson would you pass along how to do a CRA. It is a very interesting article.

    Thanks, Ray

  26. Nathan Duce says:

    Wow Great info! I never even considered that such data was available. thanks!

  27. Tammy Deviley (RE/MAX Select REALTORS) says:

    It is great info, however isn’t there rules against talking badly about other Realtors? I don’t understand how you can get around that.

  28. Kathleen "Kate" Elim, LAKE ANNA, VA Real Estate (RE/MAX Lake & Country) says:

    Hi Frank…I was reflecting on your post and in this market you may have all the time in the world to do this “thorough” an analysis but I would find it hard to believe that you were doing it a few years ago when properties in Northern Virginia were receiving several contracts as soon as they hit the market.

    Also, when I put the quotes around “thorough” I was referring to the fact that there is not always a paper trail to give you the information you say you use about the seller. Many of the first time sellers in the Northern Virginia area may well have sold several other homes elsewhere in the country. You are not going to have that history.

    As far as how close to sale price agents list is a combination of things and can vary from property to property. You may have been able to figure out which agent does what in that vast pool of REALTORS that service NoVA but that would have had to take you years to figure that out. (Yes, I was one of those agents years ago before moving to Lake Anna.)

    There have been properties that I have listed that have sold quickly and others that have not for a number of reason and none of them are because I have a formula for how high or low off the mark I go. I do not have a formula other than to price it to sell. Sometimes the seller has a different view.

    Kate

  29. FRANK LL0SA Va Broker- BLOG.FranklyRealty.com says:

    Tammy, I stick to facts. That isn’t talking badly. If somebody is an “overpricer” they are an “overpricer”. I don’t say “they suck.”

  30. FRANK LL0SA Va Broker- BLOG.FranklyRealty.com says:

    Hey Kate,

    Yep, I did this in the multiple contract marketplace. It matters then too.

    When there were multiple offers, don’t you think it would be good information to say, “this listing agent got 3 of their last homes bid up 3% above list.” Heck yeah that matters.

    Even in the bidding war days, some agents still overpriced. SO if they said “hurry act fast” but they said that about 3 other places that just say since they were overpriced by $50k…

    So yes, it works well (not 100% perfectly) in all markets.

    Frank

  31. Raj Rajpal says:

    Asolultly a great idea , I always say how can you market anywhere without knowing your compitition, but you deffinatly take it a few steps deeper than that , I am sure some a lot of realtors will benifit from your post

  32. Gail Robinson, GRI, e-PRO - Black Rock Connecticut Real Estate (William Raveis Real Estate) says:

    Frank, I was taught by my mentor to look up the sales history of the other agent (whether selling or listing) to see whether they are a newbie or a part-timer, but I never thought to analyze the history of price reductions of listing agents. I will start doing that! Great idea! Excellent post.

  33. Holly says:

    You’re amazing.

  34. Pam Jank (Coldwell Banker Schneidmiller Realty) says:

    Great ideas. Useful information. keep the blogs coming. Long or not!

  35. Lane Bailey - The REALTOR for Car People (Diamond Dwellings Realty) says:

    This is a great example of ways to build a better negotiation strategy… but you knew that…

  36. Mark Organek - Tempe Gilbert Mesa Chandler REALTOR (RE/MAX Alliance) says:

    Frank, this is a very informative and helpful post. In our market, we only have a few that control the majority of REO’s and it has been helpful to see consistency in their techniques. I have to agree completely with your methodology and I enjoyed the post thoroughly! Thank you!

  37. Karen Hawkins and Ray Levy (CB Camelot Realty / Lake County Home Pros) says:

    I enjoyed the video on low balling. Thanks for publishing it.

  38. John Duncan (Keller Williams Realty) says:

    I like this information Frank. I too look at the agent I’m negotiating with. You are right on. If they’re a new one, or a part timer, I’m going to negotiate differently than with a seasoned veteran.

    However, I did learn something new from you. That is, the idea of looking at the track record of the agent. That’s GREAT stuff! I guess it’s like baseball pitchers who know their opponents.

    Looking forward to more from you.

    John

  39. Christina Asad Edwards @ www.daytonohiohouse.com (Real Living Realty Services - #1 in Ohio!) says:

    I do a Highest Price Analysis, it is a combination of a Comparative Market Analysis and a Trends Analysis Report, showing the months of inventory versus sold, etc. It works very well with clients since it encompasses MORE than most would show.

    Christina

  40. [...] a FranklyCRA to see if you can find some trends with that bank or the listing [...]

  41. Bonnie says:

    What an AWESOME website. So glad I found it.

    I am pointing out a grammatical error, not a typo, but it’s common and does not make you look stupid. I am a court reporter, so I proofread. Most people probably didn’t notice.

    “I find it even more useful then the traditional CMA (Comparative Market Analysis).”
    It is than when used for comparison. Then is a tense, past, future, etc., i.e., ” I used to rebate, then I got good.”

  42. Bonnie says:

    Hey, Frank.

    I pointed out a grammatical error and made you look super smart.

    Can I get half off on a T-shirt if I decide to buy one?

    Would it be offensive to give my realtor that Trust Me, I’m a Realtor shirt or not. LOL

  43. mappo says:

    Hi Frank,

    Do “realtor teams” confound your CRA method? How do you get beneath the surface, as they seem to list all their properties under the “brand name” headliner agent rather than the actual agent representing the property?

  44. FranklyRealty.com says:

    Yeah, not much you can do there. A “team” can mess up the accuracy. But I would still want to know what the lowest % of current list price one of their team members has recently sold (assume similar DOM and similar price range, and similar area). So if you offer 7% less and they say you are crazy, but their team member just accepted 8% less a month ago in the next door down, you know you might be on the right track.

  45. Tom Kane says:

    Frank:

    This FranklyCRA is a great idea! I cannot believe I missed this in more than a year of using your site. What great work and agent assessment. I plan on using this a LOT!

    Tom

  46. Amber says:

    The Frankly CRA sounds like an awesome idea. I can’t find a link to it though, just this blog post. How do I get to it, and does it cover everywhere or just the MD-DC-NorVA area?

  47. [...] While it is very important to meet a REALTOR in person, you can do this CRA analysis before you meet with any agent!  For more background information on CRA, see Frank’s blog post on why you should use a CRA. [...]

  48. […] FranklyCRA: A Comparative REALTOR Analysis.  Unleashed.  […]

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