Sellers Guide

Because Possum Kingdom Lake is a SECOND HOME market, property owners face extensive challenges associated with living a long distance from their lake property. The PRIMARY GOAL is for property owners is always to sell their property for the best possible price! To achieve this goal, you need to make sure you attract as many potential qualified buyers as possible. This is a discussion of what Sellers' options are available At Possum Kingdom Lake.

Next, the #1 Ranked Realtor in the lake country will suggest what else can you do to increase the chances of making as much money as possible from the sale of your property.

Based upon the potential gain for Sellers, the time to read this EXTENSIVE guide will definitely be WORTH IT!

Let’s Dive In
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1. Sellers Options

The property owner's need to carefully consider HOW to sell their property. This first step is often the most important factor to determine the success or compromise of the seller's goals.

For Sale By Owner Sign

FSBO

PROS:

  • COST SAVINGS - Avoiding real estate agent commissions can result in significant savings for the seller.
  • CONTROL - Sellers have complete control over the sale process, including pricing, negotiations, and scheduling showings.
  • DIRECT COMMUNICATION - Sellers can directly communicate with potential buyers, which can sometimes lead to smoother negotiations.

CONS:

  • LIMITED EXPOSURE - FSBO listings typically have less exposure compared to listings handled by real estate agents, potentially resulting in fewer offers. Realtors have access to a wider network of potential buyers and marketing channels, resulting in more exposure for the property and potentially attracting more competitive offers.
  • COMPLEXITY - Selling property involves legal and financial complexities that FSBO sellers may not be equipped to handle, leading to mistakes or delays. Agents handle all the paperwork, legalities, and logistics of the transaction, ensuring a smoother and more efficient process, which can lead to better outcomes for the seller.
  • PRICING CHALLENGES - Determining the right listing price without the guidance of a professional can be challenging, leading to overpricing or underpricing. Real estate agents have the experience and market knowledge to accurately price a property, maximizing the seller's potential proceeds.
  • NEGOTIATION SKILLS - Negotiating directly with buyers and buyers’ agents requires strong negotiation skills, which some FSBO sellers may lack, potentially resulting in less favorable deals. Experienced agents are skilled negotiators who can advocate for their clients and secure the best possible price and terms for the sale.

Overall, FSBO can be a viable option for sellers who are knowledgeable about the Possum Kingdom Lake real estate market and willing to take on the responsibilities and risks associated with selling their property independently. However, it may not be suitable for everyone, especially those who lack experience or time to manage the process effectively from a remote location.

MAKING DOLLARS AND SENSE:

  • According to the National Association of Realtors (NAR), homes sold with the help of an agent typically sell for about 20% more than FSBO properties.

  • While selling FSBO may result in saving on agent commissions, sellers should consider the potential trade-offs in terms of sale price and overall proceeds. It's essential to weigh the costs and benefits carefully and consider consulting with a real estate professional to make an informed decision. 
  • At Possum Kingdom the majority of FSBO's end up listing with a realtor for many reasons.

FLAT FEE LISTING

A few years ago, some licensed real estate brokers and MLS service providers began to offer a “Flat-Fee” MLS selling model. Essentially, it does away with the listing agent and his customary listing fee for representing and marketing a seller’s property. The seller now has access to the Multiple Listing Service by virtue of paying a flat fee instead of a full commission and is allowed to carry on the sale of his or her own home and the option to pay a fee only to an agent who produces a qualified buyer.

Provided under typical flat fee listing program is limited representation services for owner. As such, the owner is responsible for all showing arrangements with buyers and/or buyer’s agents, escrow, settlement and closing. As is normal practice in the real estate industry, buyer/agents usually present their offers through the listing brokerage so the receipt of any offer on owner’s property to the flat fee services provider is usually sent to owner by fax or email. The owner negotiates any offer, handles their own paperwork, escrow, settlement and closing details.

Essentially this service option is little more than a FSBO ON STERIODS with full blown exposure to the unqualified leads from being listed on Realtor.com, Trulia, Zillow and many other local and national sites. Additionally, the property owner will be communicating directly with buyer agents but as stated before with little to no representation. This is only a good choice for a property owner who has a lot of time available and is willing to navigate through full exposure to opposing interests.

In second home or luxury markets this service option is very rarely ever seen. Buyers' agents are reluctant to show this type of listing because of the hassle of trying to get replies to questions and offers submitted through the flat fee service provider plus the potential of the extra workload generally handled by the listing agent.

OUT OF MARKET REALTOR

The Basic "PPP" Approach

Agents who live more than an hour’s drive from the Possum Kingdom area may be closer to many of the buyers but are honestly NOT competent to list property at Possum Kingdom Lake. More experienced realtors know to avoid listing out of their market. But the other realtors, the temptation is often overwhelming when considering the high commission potential in our luxury second home market, especially where many of these out-of-market realtors are somewhat familiar with PK Lake because they play here.

What makes an agent competent is simply THE ABILITY TO PREFORM THEIR SERVICES. However, most property owners are not aware of what all Realtors should do to earn their commission. Therefore, a quick review of the following article provided by the National Association of Realtors is very helpful to start to understand what tasks Realtors normally preform when they list a property for sale… (This list does NOT include all the ADDITIONAL special considerations in our market)

READ ARTICLE >>>179 Ways Agents Who Are REALTORS® Are Worth Every Penny of Their Compensation

Anyone who reads the above article with task list supplied by NAR would no doubt wonder how any Realtor who does not spend substantial time in our lake market practicing real estate could possibly preform many of these essential tasks and justify full-service compensation? Perhaps if an out-of-market Realtor is really being a true friend or trusted professional, then they should give a substantial discount for providing limited services, which most of the time only amounts to the "PPP" approach:


PHOTOS

PLACE IN MLS

PRAY


Further, Legislation passed by the 86th Texas Legislature made clear that license holders must be knowledgeable about local market issues in a geographical area in which they work. TREC Rule 531.3. According to the rule, license holders must: “Be informed on the local market issues and conditions affecting real estate in the geographic area where a license holder provides services to a client.”

Out-of-market Realtors BEWARE with this legislation in place they will be held liable.

Why has GEOGRAPHIC COMPETENCY become such as issue? The Texas Real Estate Commission and the National Association of Realtors are trying to enforce Realtors to do what’s best for their client and to avoid unnecessary liability and economic loss for their client!

CO-LISTING SOLUTION

Long distance Listing Agents might consider an often-overlooked solution of working with a local Possum Kingdom Lake Realtor. It does NOT cost the client a penny more but can absolutely be the best of two worlds for the client… the advice from the client’s trusted Realtor PLUS the service of “boots on the ground” and local expertise.

The Institute of Luxury Home Marketing provides insights about the benefits of CO-LISTING for Agents to consider.

READ ARTICLE>>>3 Benefits of CO-LISTING in Luxury Real Estate

Come In We Are Open Sign

LOCAL REALTORS

Yes, local realtors are assumed to have Geographic competency because of their knowledge and expertise of where they work. It encompasses their understanding of local neighborhoods, market trends, amenities, schools, transportation, zoning regulations, and other factors that can influence real estate transactions within that area.  The Possum Kingdom Lake area is a "small bedroom community" where the local realtors cooperate very well together. This option is the best so far in this discussion.

LOCAL REALTORS’ GEOGRAPHIC COMPETENCY IS IMPORTANT FOR SEVERAL REASONS:

  • ACCESSIBILITY: Local realtors are more readily available to meet in person, conduct property tours, and attend inspections or meetings with clients. This accessibility fosters better communication and allows for more personalized service throughout the property buying or selling process.
  • MARKET KNOWLEDGE: Realtors with geographic competency have a deep understanding of the local real estate market, including current inventory, pricing trends, and market conditions. This knowledge allows them to accurately advise clients on pricing strategies, negotiations, and market timing.
  • TARGETED MARKETING: Realtors who specialize in a specific geographic area can develop targeted marketing strategies tailored to the unique characteristics and preferences of local buyers. This can help sellers attract more qualified buyers and achieve better outcomes.
  • LOCAL NETWORKS: Realtors with geographic competency often have established relationships with other real estate professionals, service providers, such as mortgage lenders, title companies, and home inspectors. These connections can be invaluable for marketing properties, sourcing off-market opportunities, and facilitating smooth transactions.
  • NAVIGATING COMPLEXITIES: Different geographic areas may have unique legal, regulatory, or environmental considerations that can impact real estate transactions. Realtors with geographic competency are better equipped to navigate these complexities and ensure compliance with local regulations.
  • COMMUNITY ENGAGEMENT: Local realtors are often active members of their communities and have a vested interest in the area's growth and development. They can provide valuable information about upcoming projects, zoning regulations, and other factors that may impact property values or quality of life.


THE BOTTOM LINE

Choosing a local realtor with geographic competency enables realtors to provide specialized expertise, targeted marketing, strong local connections and personalized service within a specific geographic area, ultimately enhancing the overall real estate experience for their clients. However, all local realtors are NOT the same when it comes how they market and promote your property.  To sort through these issues, we suggest asking important questions.

*** QUSTIONS TO DETERMINE GEOGRAHIC COMPETENCY****

  • Ask the realtor where they live.
  • Ask if they are a full-time realtor at Possum Kingdom Lake.
  • Ask them what is their percentage of transactions at PK Lake vs. other areas? i.e., are they a 75% PK or 50% PK realtor or what?
  • Ask for their production volume in the last 12 months at Possum Kingdom Lake. (verify on Zillow or Homes.com)
  • Ask if they buy leads or if they actually generate leads for Possum Kingdom Lake.
  • Ask for a Marketing Plan for selling property at Possum Kingdom Lake

**** BEWARE OF "PPP+P" which are still limited services

PHOTOS

PLACE in MLS

PRAY for offers!

+ POSTCARDS

 (Postcards = Listing Solicitation)



Leads Are The Target

LEAD GENERATING REALTOR

Overall, while traditional real estate marketing methods still play a role, ONLINE LEAD GENERATION has become increasingly more important to reach today’s digitally savvy consumers and drive business growth in the competitive real estate industry.

The truth is buyers today are just not walking into real estate offices,
nor are they phoning in as much to talk to a stranger.
Buyer leads are coming through the internet!

Big problems lie ahead for the local realtors who have been relying on National Local Listing Platforms (Zillow, Trulia, Realtor.com, Homes.com etc.) for their online presence since COVID. This is because changes in their platforms are adversely affecting the local realtors who were buying leads. Local realtors are being outnumbered by all the competition from out-of-market realtors, who are buying the high commission potential leads for Possum Kingdom Lake.  Therefore, local agents who are not generating leads on their own will have fewer opportunities to close deals. The real estate industry is constantly evolving, with shifts in trends and consumer preferences. Realtors and their agents who invest time and recourses into lead generation strategies are more likely to have a pool of potential buyers to work with, giving them an edge.

For further discussion of how a realtor can generate online leads plus more on current market trends request our 2024 MARKETING PLAN which also explains exactly how Possum Kingdom Real Estate consistently sells the most property in the lake country area of Palo Pinto, Stephens and Young counties.

<<CLICK HERE 2024 MARKETING PLAN>>

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2. Hire the Right Agent

Hiring the right real estate agent is crucial for a successful and smooth real estate transaction. Here are some steps to help you find and hire the right real estate agent:


  • DUE DILIGENCE HERE! Start by researching real estate agents in the Possum Kingdom Lake area. You can use online platforms, such as real estate websites, social media, and agent directories, to find agents who specialize in your target area or property type. Ask for recommendations from friends, family, and colleagues who have recently bought or sold a property.
  • CHECK CREDENTIALS - How many years of experience, track record of sales, and any professional certifications or designations they may have? Third party resources are Zillow or Homes.com
  • READ REVIEWS - Read online reviews and testimonials from past clients to get a sense of the agent's reputation and level of service. Pay attention to both positive and negative reviews to gauge the agent's strengths and areas for improvement. Google, Facebook and Zillow are recommended.
  • INTERVIEW MULTIPLE AGENTS - Schedule consultations or interviews with multiple real estate agents to discuss your needs, preferences, and goals. Ask questions about their experience, marketing strategies, communication style, and knowledge of the local Possum Kingdom Lake market. Take note of how well they listen to your concerns and whether they provide thoughtful responses.
  • REVIEW MARKETING STRATEGIES:  Inquire about the agent's marketing strategies for selling your property. A good real estate agent should have a comprehensive marketing plan that includes online and offline tactics to maximize exposure and attract potential buyers or properties.
  • EVALUATE COMPATABILITY - Consider the agent's personality, communication style, and availability. You'll be working closely with your real estate agent throughout the buying or selling process, so it's essential to choose someone you feel comfortable with and who is responsive to your needs.
  • ASK FOR REFERENCES - Request references from past clients and follow up with them to ask about their experience working with the agent. Find out if they were satisfied with the agent's performance, communication, and negotiation skills.
  • NEGOTIATE TERMS - Discuss the agent's commission structure, contract terms, and any additional fees upfront. Make sure you understand the terms of the agreement before signing a contract with the agent.

By following these steps and carefully evaluating your options, you can hire the right real estate agent who will represent your best interests and guide you through a successful real estate transaction.

  

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3. Price your property to sell from day one

By far the most effective way to attract buyers is to price your home correctly from day one.

At first glance, it may seem like a good idea to price your home as high as you possibly can. After all, there are always rounds of negotiation in real estate, and buyers can always negotiate and make a counteroffer... right?

Sadly, that’s a recipe for failure in real estate.

Buyers (and especially buyer agents) are more informed than ever and have all the tools they need to know how much a home is worth, and what a realistic and market-data-backed final price tag should look like.

If a home is obviously overpriced, buyers won’t have the patience or interest to spend round after round of counter offers., especially if there are alternatives in the market.

In fact, if the price for the home is too high, your home might not even show up in important areas of a MLS or property search sites. For example, if you price a $750,000 lake home at $1,000,000, it won’t show up on a property search for homes up to $800,000.

Also, if your home remains unsold in the market for too long, it may start raising questions about whether there’s something wrong with the home.

And opportunistic buyer agents and investors will know that the longer a listing remains in the market, the more it will cost you, and they’ll start making ridiculously low offers. At the end, you could end up with a final price that’s much lower than you could have hoped for.

Select a Realtor and their listing agent based upon SERVICES. Basing your decisions on which agent thought they could get the highest sales price is not wise.  Then, trust your agent’s advice, and make sure you verify the data that they use to price your property. By pricing your property correctly from day one, you’ll attract more qualified buyers, and your home won’t get stuck in the market unsold.

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5. Use professional photography and cinematography

Today, the vast majority of property searches by home buyers begin online. This happens way before they even reach out to a real estate agent, or even officially apply for a loan.

So in order for all of your efforts to make your home feel brand new are shown in the best possible light in your online listing, make sure a professional photographer does your home photos.

Professional photography can set your home apart from the competition, and it’s instrumental in helping sell a home as quickly as possible. Buyers are far more likely to go visit or make an offer on a home with professional photography, than one without it.

While you may be able to skip some tips in this article, this one should ABSOLUTELY NOT BE SKIPPED. Hiring a professional photographer is one of the best possible steps you can take to attract more buyers. It’s not an expense, it’s a real investment.


CINEMATOGRAPHY is the “High Water Mark”

 

Visual Appeal - Luxury properties often boast stunning architecture, design, and amenities. High-quality cinematography can effectively capture the beauty and grandeur of these features, showcasing the property in the best possible light and attracting potential buyers.

  • Emotional Engagement - Cinematic techniques such as dynamic camera movements, dramatic lighting, and artistic composition can evoke emotion and create a sense of luxury and exclusivity. By immersing viewers in a visually captivating experience, cinematography can stimulate interest and desire for the property.
  • Storytelling - Cinematography allows real estate agents to tell a compelling story about the luxury property, highlighting its unique selling points, lifestyle opportunities, and aspirational appeal. Through carefully crafted visuals and narrative techniques, cinematography can convey the essence and personality of the property, resonating with potential buyers on a deeper level.
  • Differentiation - In a competitive market, luxury properties need to stand out from the crowd. High-quality cinematography sets a property apart from standard real estate listings, signaling to potential buyers that it is exceptional and worthy of their attention and investment.

Overall, cinematography enhances the marketing appeal of luxury real estate by creating visually stunning and emotionally engaging content that captivates potential buyers, differentiates properties from the competition, and elevates the brand image of real estate professionals. 

In Conclusion

By using the strategies mentioned in this guide, you can increase the chances that you will sell your home faster, and by extension, at the highest possible price. But as always, the best possible strategy you can follow is to hire the best agent for the job.

A real estate agent can guide you through the entire real estate process, help you avoid common costly mistakes, and negotiate the best possible price. And if you pick an agent that specializes in your type of property and a proven track record, your agent will already be very familiar with the most effective marketing strategies that work in your area of service.