Have you ever heard of the "iceberg theory"? It's a theory that was first coined by Ernest Hemingway as a way to describe his distinct writing style. I mention it here as it is relevant to understanding the role of the expert realtor. Let me explain.
The "Iceberg Theory"
Hemingway developed a writing style that is minimalistic. The fewer the words, the stronger the story. With an iceberg, we see only what is above the water, and for Hemingway, these are the words he chose for the reader to see. However, Hemingway carefully selected words to be omitted (below the iceberg), along with additional background information or themes that the reader is unaware of. The "unseen" (below the iceberg) makes the "seen" (above the iceberg) that much more powerful. And for Hemingway, that technique made his stories really shine. How does this relate to real estate, you might be wondering?
When you drive by a home that has a For Sale sign in the front yard, you are instantly aware that this is a home that has been launched onto the market. What you don't see, however, is the myriad of things that is needed to be done to get the home ready for sale. And for some potential sellers, as well as buyers, the launch process may appear rather effortless, like simply putting a realtor sign in the ground. If we apply the "iceberg theory", we can understand how there is often extensive work conducted by the "rockstar" realtor when listing a home that the consumer may not initially see.
To better understand the role of the "rockstar" listing realtor, let's dive deeper and explore what exactly is "below the iceberg". Any idea what's there? At the very center is what I like to call "compound expertise".
"Compound Expertise" - The Fundamental Uniqueness of the "Rockstar" Realtor
A top-level realtor has the ability to make everything go as smoothly as possible because of his/her "compound expertise". The realtor has expertise that gets compounded with each new transaction which is especially important because every home sale/purchase is complex and has its own nuances. Thus, when the homeowner has questions or things come up during the home selling process, the "rockstar" realtor is guided by the wealth of expertise that is unique to them. The realtor's "compound expertise" honed by many transactions over several years is what contributes to their fundamental uniqueness. This is what you find "below the iceberg". This is the "unseen" component in real estate and why who you choose to list your home matters. Your home is one of your largest financial assets. So might you be curious about the role of the "rockstar" listing realtor in safeguarding your investment and maximizing the equity in your home? Find your favorite comfy chair and get ready for the inside scoop on the multi-faceted role of the "rockstar" realtor for home sellers.
The Multi-Faceted Role of the "Rockstar" Listing Realtor
For many people, the decision to put one's home on the market often comes after months of serious thought. It is not usually a sudden decision. If, for example, you are moving because of a job transfer, frequently you have some advance notice. I mention this because it can take time to prepare one's home for market. The earlier you connect with a "rockstar" realtor, the more favorable the position you will be in when you are truly ready to list your home. Think of this phase in the home listing process as "below the iceberg". And since the end goal is to get your home sold with the best terms, we need to go beyond the listing process itself. You see, there is an additional layer to the listing process that you might not have thought about. This additional layer is the "marketing and selling" of the home, which frequently begins prior to the home going onto the Multiple Listing Service (MLS). If this sounds a bit confusing, let me illustrate what a "rockstar" realtor for the home seller actually does. There are 8 essential roles.
1. Financial Confidant
For many homeowners, selling a home is all about the numbers. This includes the price they originally paid for the house and the expenses they incurred over the years to maintain and enhance the home's condition. Additionally, there may be a second mortgage in the form of a home equity loan, a home equity line of credit (HELOC), or possibly another type of renovation loan. And since everyone's situation is unique, there may be other financial scenarios which potentially could impact selling the property that are likely to be shared with the trusted realtor.
For many homeowners, selling a home is all about the numbers. This includes the price they originally paid for the house and the expenses they incurred over the years to maintain and enhance the home's condition. Additionally, there may be a second mortgage in the form of a home equity loan, a home equity line of credit (HELOC), or possibly another type of renovation loan. And since everyone's situation is unique, there may be other financial scenarios which potentially could impact selling the property that are likely to be shared with the trusted realtor.
If the condition of the home needs some improvement prior to going onto the market, for example, the financial ability (as well as desire) of the homeowner to undertake "deferred home maintenance" projects (e.g. missing roof shingles, broken fence, leaky faucet, etc.) is important. Similarly, if there are some enhancements to the home (e.g. painting, removal of carpet, etc.) that will strengthen the appeal of your home to a wider pool of potential buyers, knowing the financial health of the seller is paramount.
As a "financial confidant", the listing realtor is often privy to sensitive homeowner information. Such financial insight enables the realtor to not only provide guidance to the seller about making a financial investment in home improvements, but also holds the key to shaping the pricing strategy when listing the home for sale. And if a homeowner needs the proceeds of the sale of their house in order to purchase another home, it can impact the timing and terms for accepting a buyer's offer. A top-notch listing agent can help achieve the ideal parameters for accepting an offer.
2. Trusted Advisor
When you decide to put your largest financial asset on the market for sale, you are simultaneously making a decision to put your trust in your realtor. You are trusting your realtor to guide you through the listing and selling process to deliver the best outcome. For many homeowners, it can feel a bit scary at first and might require a leap of faith. So place your trust wisely!
When you decide to put your largest financial asset on the market for sale, you are simultaneously making a decision to put your trust in your realtor. You are trusting your realtor to guide you through the listing and selling process to deliver the best outcome. For many homeowners, it can feel a bit scary at first and might require a leap of faith. So place your trust wisely!
When you partner with a "rockstar" realtor, trust is a key factor in the relationship. Not only will you be sharing your real estate goals, but very often personal details (e.g. family, work, etc.) as well. Throughout the home list/sell process, your top-notch realtor is your "trusted advisor" who you may lean on for expertise, as well as understanding and support. Simply stated, the "rockstar" realtor is part of your inner circle of trust who consistently communicates with you and is there for you every step of the way!
3. Market Trends Analyst
A pivotal aspect when listing a home for sale is the realtor's ability to identify relevant and current market data, and then astutely interpret what the data means. This cannot be overemphasized. Using the wrong data, omitting key data metrics, or not fully understanding the significance (or lack thereof) of the data can potentially adversely affect the outcome for the seller. This can take the form of delays in receiving offers, price reductions, or simply leaving money on the closing table. It is imperative to partner with a "rockstar" realtor who has an excellent grasp of the right market data.
A pivotal aspect when listing a home for sale is the realtor's ability to identify relevant and current market data, and then astutely interpret what the data means. This cannot be overemphasized. Using the wrong data, omitting key data metrics, or not fully understanding the significance (or lack thereof) of the data can potentially adversely affect the outcome for the seller. This can take the form of delays in receiving offers, price reductions, or simply leaving money on the closing table. It is imperative to partner with a "rockstar" realtor who has an excellent grasp of the right market data.
As a "market trends analyst", the expert realtor can skillfully craft a winning listing price strategy. Knowing the real estate market on a micro-level is key. In some instances, there might be limited "comps" for a particular home. This can happen, for example, when there are only a handful of homes that have traded in the neighborhood.
Recently, I met with one of my seller clients who lives in a small enclave of 200 homes where only one home turned over in 2023. As a result, I expanded the scope of my analysis to include the trends in the larger community where there were significantly more current home sales. This data provided valuable market insight for pricing my client's home.
4. Visual Design Strategist
Do you remember the 1989 film, "Field of Dreams"? There is a single phrase that still resonates today: "If you build it, he will come." "It", or course, refers to the baseball diamond and "he" refers to the many people who will come to see it for nostalgia. While there are deeper meanings to this film, I mention it here because this is precisely how I feel each time I set out to launch a home onto the market. There is a design element that sets everything in motion. And the "rockstar" listing agent knows that it begins with the visual story of the home. As I like to say, "Build the visual story, and the narrative will follow."
Do you remember the 1989 film, "Field of Dreams"? There is a single phrase that still resonates today: "If you build it, he will come." "It", or course, refers to the baseball diamond and "he" refers to the many people who will come to see it for nostalgia. While there are deeper meanings to this film, I mention it here because this is precisely how I feel each time I set out to launch a home onto the market. There is a design element that sets everything in motion. And the "rockstar" listing agent knows that it begins with the visual story of the home. As I like to say, "Build the visual story, and the narrative will follow."
It is crucial to understand that there is often an emotional component to the home buying decision. A great story will attract the buyers. Therefore, it's important to focus on the visual design element. The exceptional realtor will frequently connect a seller with an excellent home stager. And this might just be for an overall design consultation, as some homes may need only a bit of "tweaking". Home staging re-orients the property from a "home" to a "house" for sale. The expert realtor often will stay involved throughout the home staging process to ensure the design has just the right balance of warmth and clean lines in order for potential buyers to envision living in the house.
Once the house has been "staged, fluffed, and straightened-up", it will be time to call in the professional photographer. Photographing a home is truly an art and requires that "je ne sais quois" to best showcase the home. The photographer needs to capture the best angles of the house, interior as well as exterior.
A talented photographer understands that photos need to "motivate" rather than simply "document" what the house looks like. For all my seller clients, I work closely with the photographer to ensure the photos look outstanding and that we have what I like to call, the "money shot". Every home needs to have a "money shot". It is the photo that prompts buyers to exclaim, "Yes! I've got to see the house!"
In addition to traditional photography, there is drone photography, Matterport, and videography for the home. Another important visual is creating a professional floor plan that can be shared with buyers. It is a great way to see how the rooms flow from one to another. The floor plan is a "must have" tool for understanding the home's potential. As a "rockstar" realtor, I routinely share the floor plan with an architect prior to the launch of a home. Buyers appreciate seeing what the design possibilities can be, especially if they plan to live in the house for several years. It's a courtesy service that I provide to many of my clients.
It is the combination of these various design tools that will produce a remarkable visual story of the home. Therefore, it is imperative to have an amazing multi-faceted realtor throughout the list/sell process!
5. Marketing Expert
Once the visual design is created, the narrative can begin. The narrative answers the common, yet often unspoken question among most buyers, "Why choose this home?" If there are a few or even a dozen or more homes to select from, buyers want to immediately understand what the house is all about and why it could offer the best lifestyle choice for them. If the walls could talk, what would the house say? A review of the professional photos by your stellar realtor will inspire a primary basis for developing the narrative, i.e. the description about the home. Special features of the neighborhood, as well as proximity to schools, restaurants, shops, transportation will help to round out the narrative.
Once the visual design is created, the narrative can begin. The narrative answers the common, yet often unspoken question among most buyers, "Why choose this home?" If there are a few or even a dozen or more homes to select from, buyers want to immediately understand what the house is all about and why it could offer the best lifestyle choice for them. If the walls could talk, what would the house say? A review of the professional photos by your stellar realtor will inspire a primary basis for developing the narrative, i.e. the description about the home. Special features of the neighborhood, as well as proximity to schools, restaurants, shops, transportation will help to round out the narrative.
A great story needs to be communicated. The role of marketing in real estate is as crucial as putting gas in your car (unless, of course, it is electric) for getting to your destination. In today's environment of numerous competing distractions, effective marketing can mean all the difference in making your home stand out. The "rockstar" realtor will develop a formal marketing plan complete with dates for bringing the home to market for both the pre-launch and post-launch phases.
There are several social media platforms, e-marketing, digital, print, in-person events, etc. that can be used to broadcast a new listing. A successful marketing plan will be aimed at not just potential buyers, but the realtor community as well. Historically, in over 90% of sales, a buyer's agent brings the homebuyer. Therefore, it is essential to market your home to buyer agents also.
6. Offer Generator
A critical role of the "rockstar" realtor is to bring in offers. While this may seem obvious, some sellers have shared their unfortunate tale of having their house on the market without receiving a single offer! And there are some sellers who receive an offer, but it goes nowhere.
A critical role of the "rockstar" realtor is to bring in offers. While this may seem obvious, some sellers have shared their unfortunate tale of having their house on the market without receiving a single offer! And there are some sellers who receive an offer, but it goes nowhere.
If you're scratching your head thinking this is probably due to an unrealistic list price, you might be correct. However, in many instances, the list price is reasonable and the house is getting showings. And we see this on the MLS when a house comes back on the market with a different realtor at the same price. So what gives?
This is where the experience of the realtor comes into play. The "rockstar" listing realtor proactively shares market insights to the seller and whether the initial list price is still an effective marketing tool. A skilled realtor is constantly monitoring the market to see if any changes are needed in the marketing plan. If everything seems to be all good, then the listing agent needs to be proactive to generate offers. How does this work?
Allow me to explain. Typically offers come in, but not at the same time. The key is to be able to get offers within a tight window of time so that they can compete with each other. At the end of the day, most buyers tend to want a house that others have expressed interest in. And to do this, the listing realtor needs to expertly finesse the relationships with the buyer agents who have shown the property. The dialogue between the listing realtor and the buyer agents sets the stage for generating excitement about the house and getting offers to come in.
There are times when the listing agent will announce to the buyer agents a "call for all offers". This may happen if there have been several showings, either private appointments or at an open house. However, until someone comes forward with a written offer, it might be more prudent to wait than set a deadline for when all offers need to be submitted by. It can backfire if you "call for all offers" and no one shows up! However, if you have a verbal commitment that an offer is coming in, the timing might be right to communicate that the seller is accepting offers by a certain date.
For one of my recent seller clients, the home was getting tons of showings as soon as it went onto the market, but no one wanted to be the first one to come in with an offer. However, since many realtors were expressing serious interest and were asking when offers are due, I announced a "call for all offers". I then shared a list of Seller Guidelines with buyer agents which resulted in multiple offers! Sometimes buyer agents need to have a "deadline" to create a sense of urgency among their buyer clients to move forward expeditiously.
Alternatively, what if there are no offers coming in? Or an offer comes in but it is too low? If we recall the "iceberg theory" discussed above, this is the activity that the seller is seeing ("above the iceberg"). The skilled realtor, however, is focusing on what the seller doesn't initially see ("below the iceberg"). With every showing appointment, the listing realtor is actively communicating with the buyer's agent to get buyer feedback. And this feedback is key for determining if any tweaks are needed in the seller's marketing plan.
Any offer that comes in, no matter how low it is, is really just a conversation starter. It's more important where the offer goes, rather than where it starts. The right listing agent frequently can collaborate with the buyer agent to get the offer to be mutually acceptable to both the buyer and seller for a win-win!
7. Strategic Negotiator
Being a "rockstar" listing realtor also means being a great "strategic negotiator". When an offer is presented, the seller wants to be sure that it is the best offer. Generally, the seller is looking for not only the highest price, but also the most favorable terms. Often the timing is a key factor for sellers. Some sellers may need the proceeds from the sale of the house in order to make a purchase on another property. In this scenario, the seller may want to close on the property, and then "rent back" the house with a "use and occupancy agreement". And other sellers may simply want to have a longer closing date to allow their children to finish out the school year. Such terms get negotiated during the offer stage.
Being a "rockstar" listing realtor also means being a great "strategic negotiator". When an offer is presented, the seller wants to be sure that it is the best offer. Generally, the seller is looking for not only the highest price, but also the most favorable terms. Often the timing is a key factor for sellers. Some sellers may need the proceeds from the sale of the house in order to make a purchase on another property. In this scenario, the seller may want to close on the property, and then "rent back" the house with a "use and occupancy agreement". And other sellers may simply want to have a longer closing date to allow their children to finish out the school year. Such terms get negotiated during the offer stage.
With regard to price, the highest price that the seller is looking for is not pre-determined. It gets negotiated by the listing agent based on what a buyer can afford and is willing to pay for the house. The seller wants to be sure that no money is "left on the closing table" and this important role rests with the "rockstar" listing agent. Whether the house gets just a single offer, or multiple offers, the right listing agent knows how to strategically negotiate to ensure the seller gets the overall best offer.
Most people are unaware that negotiations don't end once the offer gets negotiated and accepted by both seller and buyer. Negotiations happen during the next phase of the selling process as well. Depending on where you live around the country, the home inspection phase may take place after an offer is accepted. And this phase could last for a few weeks or even more than a month.
The home inspection phase, if not expertly negotiated, can result in the offer being canceled (either by the buyer or seller) and the house going back onto the market. Unless the buyer's offer states that the home inspection is conducted for "informational purposes only", there may be concerns raised in the lengthy home inspection report that cannot be resolved by both parties. As a realtor for over a decade, I have seen many surprises and issues come up during home inspection that could have potentially jeopardized the offer but did not. Some issues that tend to come up involve swimming pools, sky lights, fireplaces, HVAC, roof, spa tubs, garages, etc. The ability to hold the transaction together during the home inspection phase requires great diplomacy, collaboration, and expert negotiation skills by the listing agent. One never knows what may come up as a concern during home inspection!
8. Creative Solutions Provider
The role of the "rockstar" listing agent is perhaps best summed up as a "creative solutions provider" who offers strategic approaches when listing a home for sale. The expert listing agent elevates the visuals, provides innovative marketing, conducts skillful negotiation and collaboration for addressing any challenges that arise during the entire list/sale process. There are numerous complexities in any transaction and the right listing agent will leverage their expertise to deliver the best solution. This involves "outside the box" thinking to create a great marketing story that showcases the property's unique and best features, as well as to identify opportunities that maximize the home's appeal for generating offers.
The role of the "rockstar" listing agent is perhaps best summed up as a "creative solutions provider" who offers strategic approaches when listing a home for sale. The expert listing agent elevates the visuals, provides innovative marketing, conducts skillful negotiation and collaboration for addressing any challenges that arise during the entire list/sale process. There are numerous complexities in any transaction and the right listing agent will leverage their expertise to deliver the best solution. This involves "outside the box" thinking to create a great marketing story that showcases the property's unique and best features, as well as to identify opportunities that maximize the home's appeal for generating offers.
The top-notch listing realtor devises creative strategies for positioning a home so that it stands out in a crowded real estate market. This addresses that important buyer question I mentioned above about "why this house". For one of my sellers, I positioned the home as a "mini-castle" which had a storybook exterior and modern interior with 6 bedrooms plus a guest wing. It helped that the house had a very distinctive turret as part of the entryway! Another home I listed had wonderful features, but the most captivating was the "2-story library" with old world charm with a private spiral staircase that led to the primary bedroom suite. For another seller client of mine here in northern New Jersey, the home had a screened porch with a hot tub overlooking the backyard. The new buyers enjoyed this magical space which I had described as the "Key West" room.
Recently, I positioned a home on the market as a "Hemingway" house to reflect the overall feel of a turn-of-the-century home. The home had lots of wood beams throughout, and one room with a fireplace was ideal for relaxation and inspiration, as if one was sitting in a comfy chair reading a book. Every home has a story to tell!
Capturing the story of a home, both in the visuals and narrative, is a critical success factor in effective marketing. This can lead to selling the home more swiftly, smoothly, and at an optimum price which is the ultimate goal.
The Many Roles of the Realtor: Listing Agent vs. Buyer Agent
In my article last month I talked about the multi-faceted "rockstar" realtor for home buyers. You might be wondering how is this different from the realtor who represents the seller.
Both agent roles are similar and require exquisite talent and wisdom to deliver a "rockstar" experience. Both the buyer agent and seller agent go "above and beyond". The following is my view on how these roles differ.
Broadly speaking, the buyer agent is a matchmaker between the buyer's "wants and needs" and the various homes available for sale. And once the right home is identified, the buyer agent is an advocate for the buyer throughout the buying process.
In contrast, the listing realtor is focused on one single house and creating a compelling story around it which is then marketing to both potential buyers and the realtor community. There is a pre-launch phase and a Multiple Listing Service (MLS) phase. And once an offer is presented, negotiated and accepted, both the listing agent and buyer agent focus on home inspection. They collaborate to get to the closing table.
Thus, the role of the listing agent is more heavily weighted toward visual and marketing skills as part of the initial listing process where the house is the "star". The listing agent works for the seller and focuses on getting the house to be noticed and memorable by potential buyers. On the other hand, the buyer's agent focuses on the needs of the buyer and touring multiple homes. The buyer's agent is an advocate for the home buyer when there is a home of interest and an offer is presented. From the perspective of the buyer's agent, the listing agent is the gatekeeper to the house, while to the listing agent, the buyer's agent is the gatekeeper to a potential buyer.
It is important, therefore, to fully understand the expertise of your realtor when you are selling or buying a home. The role of the "rockstar" listing realtor for the seller, as well as the "rockstar" buyer's agent, is multi-faceted. Their individual knowledge and skills can have a significant impact on the success of your real estate transaction.
One of the interesting trends in real estate when the pandemic started was that, with the high buyer demand, some sellers turned to discount or transaction brokers. However, feedback has indicated that many of these sellers actually left a significant money on the table as they could have negotiated a higher price for their homes. Investing in the full service "rockstar" agent is priceless. The negotiation value delivered by the top-notch realtor pays for itself, from thousands to tens of thousands of dollars. In addition to the higher return, the "rockstar" realtor delivers many benefits. These primary benefits include hours and hours of time saved, reduced stress, and hand-holding support and expert wisdom throughout the entire process, truly making the "rockstar" realtor invaluable! The sale or purchase of a home is often your largest financial asset. Don't you deserve to get the very best outcome using a "rockstar" realtor?
"Every Home Has a Story to Tell" - Suzy Minken at Compass
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