Using F.O.R.D. To Drive Clients To Their Real Estate Goals – Kathy Novak
On this episode of The Closing Table, we sat down with Kathy Novak!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Kathy Novak…
The conversation began with a this or that icebreaker on long-term rentals, cash flows, and more. Kathy introduced herself as a seasoned real estate professional since 2004 and is more than just a real estate expert. With nearly 30 years of marriage and four children, she embraces her role as a wife and mother. Alongside her real estate career, Kathy has a passion for tennis, having played the sport herself and avidly following professional tennis matches. In addition to her personal interests, Kathy holds licenses in Ohio, Florida, and North Carolina, reflecting her dedication to serving clients across multiple states.
Kathy’s primary market centers around Aurora, OH, and the eastern suburbs of Cleveland. Aurora boasts an average home price in the mid-300k range, with an average square footage of $2800. The area exhibits a unique blend of light industrial and local commercial retail, contributing to its characteristic small-town charm. However, what truly elevates property values in this region is the presence of excellent school systems, further enhancing the appeal of the area for potential homebuyers and residents.
In order to understand her client’s desires beyond monetary considerations when selling their homes, it is essential to ask the right questions. This helps gather necessary information and gain insights into their needs and expectations. During pre-appointment discussions with sellers, there are several important questions Kathy typically covers to ensure a comprehensive understanding. Drawing from real estate fundamentals, she follows the F.O.R.D. approach, which entails exploring the seller’s family situation, occupation, recreational activities, and dreams and desires. By engaging in these conversations, valuable insights are uncovered that aid in effective marketing strategies, pricing decisions, assessing the urgency to sell, and identifying any specific needs or terms.
While it may seem that you are not directly working with your clients throughout their transaction, you are still diligently working behind the scenes on their behalf. To effectively communicate the work done behind the scenes and convey availability, particularly on weekends, Kathy employs various strategies. She acknowledges her initial struggle with setting boundaries, as her clients are aware of her constant accessibility through her phone. Kathy strives to respond promptly to client inquiries, committing to returning calls within an hour if missed. She emphasizes the importance of implementing systems that automate the delivery of property listings and market updates to her clients on a daily basis, ensuring her name remains at the forefront of their minds. While automation can handle certain aspects, Kathy understands the importance of personally attending to crucial matters and urges agents to always answer their phones. Managing client expectations is an ongoing process, and Kathy admits that she may not be the best example, as she tends to answer client calls even late at night if she is awake and available to do so.
Kevin then brought up how homes priced at the current market value are in high demand, resulting in faster sales and better prices. To ensure sellers grasp the significance of pricing their homes appropriately and understand the potential consequences of pricing too high or too low, specific strategies are employed. Kathy addressed that in a more balanced market with approximately six months of inventory, traditional pricing standards based on comparable sales and data analysis are typically followed. However, in the current “unicorn market,” where supply is limited and demand is high, these traditional paradigms are no longer reliable. Kathy explains to her clients that relying on market value estimates provided by certain MLS programs makes sense in this unique market. By pricing a home competitively, taking into consideration its quality, location, and market value, sellers can attract multiple offers within the first few days. Kathy also highlights the importance of caution when buyers become overly competitive, as mortgage appraisals may pose challenges if the sale price exceeds the appraised value. Through these discussions, she guides her clients toward making smarter pricing choices.
Owning a home offers individuals the opportunity to build equity, which can have a substantial long-term impact on their net worth and financial stability. To convey this concept effectively, Kathy emphasizes the drawbacks of renting. She highlights that rental payments often yield minimal returns in terms of building wealth, especially in the current market where rental costs are high due to limited inventory. Kathy encourages clients to consider that the same amount of money spent on rent could instead be used to invest in homeownership and begin accumulating equity. By illustrating the potential benefits of homeownership, Kathy emphasizes the missed opportunities and financial disadvantages of continuing to rent.
Currently, Kathy holds multiple designations and certifications that enhance her expertise and enable her to better serve her clients. As a Residential Relocation Specialist (RRS), Kathy’s designation proves invaluable when assisting clients who are relocating for job opportunities. Beyond understanding the corporate aspects and handling necessary paperwork, Kathy recognizes that working with out-of-town buyers involves much more. She goes above and beyond to help them settle into their new environment by providing guidance on various aspects such as shopping, finding dentists, exploring schools, and more. Kathy believes that being a successful real estate agent requires not only the knowledge gained through designations but also the heart of a teacher. She explains complex matters to buyers and sellers and genuinely cares for the people she represents, treating them as if they were her own family.
Considering the potential rise in home values over time and the ability to pay off a mortgage, homeowners have various strategies they can employ to leverage their built equity for future investments or to upgrade to a larger property. Kathy advises her buyer clients to adopt a proactive approach when it comes to their homes. She recommends making incremental improvements each year, such as changing the flooring, refreshing the paint, or replacing a few windows at a time. The key is not to feel pressured to spend a large sum of money all at once but to consistently update and enhance the home over time. Kathy encourages homeowners to enjoy their homes while living in them and not wait until they decide to sell before making updates. By continuously investing in their property, homeowners can increase its value and build equity, enabling them to leverage that equity for future investments or to upgrade to a larger, more desirable property.
The conversation wraps up with Kevin asking Kathy where she finds inspiration or motivation. Kathy recalls the profound impact of a piece of advice she received from her coach when she first entered the real estate industry. The coach told her, “When things go wrong, and they will, ask yourself if it’s a convenience or a tragedy and act accordingly.” This quote has resonated with Kathy both personally and professionally. It serves as a reminder that most challenges are inconveniences rather than true tragedies. By maintaining perspective and responding appropriately to setbacks, Kathy finds the strength to overcome obstacles and move forward.
Check out Kathy Novak:
Instagram: https://www.instagram.com/kathleennovak/
Facebook: https://www.facebook.com/kathleen.a.novak
Facebook Business Page: https://www.facebook.com/KathySellsAurora
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