How To Sell Equine Real Estate
(Straight From the Horses Mouth)
PRE-RELEASE TEASER EDITION
by
Marylee Ayers, ERES, Realtor®
Published by WeSellHorseFarms, LLC at Smashwords
Smashwords Edition
© Copyright 2012 Marylee Ayers
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FOREWORD
So many different agents have asked me to write down my Equine Real Estate Specialist classroom training in a book form that weaves both my essential training materials and the personal stories that illustrate each point. We are in the midst of doing just that. This spring of 2012 the book will be available at Smashwords.com in all e-reader formats and in paperback through Amazon.com.
The reason for the Pre-Release, or Teaser Pony you might say, is to allow agents who are tired of the same old, tired, real estate niche training to request a copy upon first release. To put your name on the Immediate Release Notice list send an e-mail to maryleeayers2@gmail.com with your name and email address. My staff will compile the list and notify you immediately upon the release of the book via email with a link to the e-book and Amazon site. The cost will be $24.95 in PDF, Mobi or ePub formats. It is $29.95 through Amazon.com.
I am writing this book for a second reason. I have a phrase I use: Real Estate's a bitch without a niche. I heard all the courses, seminars, training classes, big names, small names and multi-multi-multi million dollar sellers. It is the same no matter who you listen to. It is good material but it is still the same. When I finally broke away and said I was going to carve a niche where no one else was selling then I had my breakthrough. I still remember the feeling I had as I walked through a major department store and realized that I had deposited a check for one sale that totaled three times what most workers in the store made in one year. At that point I knew I had made the right decision.
Please request the book and then take a trip to my website, wesellhorsefarms.com. I hope that in a few months I will be releasing another book that is filled with the stories of agents like you who have found a true niche. Believe in you and trust your gut.
Marylee Ayers, ERES
Equine Real Estate Specialist
maryleeayers2@gmail.com
Chapter 1
"Finding Your Niche"
There is a lot to know about horse farms. Unfortunately what you don't know can and will hurt you when it comes to either listing or selling. Buyers can tell a "tin-horn" the moment you step your stiletto heel out of your car. They know you aren't prepared for what is ahead and they are secretly chuckling while you stumble through the pastures and step daintily around horse manure. Horse farms have higher price tags. Farm buyers are usually financially secure and very few agents cater to their needs. In other words, it is a niche market that is primarily overlooked. When you specialize in equestrian properties horse people get to know you and your car. I had one customer tell me that they followed me to a farm to see which was the next one going on the market. I will tell you later why that is a both and good and bad thing.
The truth is that it is a specialized market and it has a strong network. Once you are in then owners and buyers market you. The trick is to get in. The tougher trick is to get accepted.
My first trainee was my husband. He learned well and quick (now if I can just get him trained to put the toilet seat down). He had been selling new home construction for years and was fairly good at it. My business had grown so much that I needed another agent. He was my first choice but I knew he didn't understand all that it would take.
On that first appointment he came walking into my home office with a dress shirt, khakis and black wing-tip shoes. He thought he was dressed down since he wasn't wearing a tie. I politely laughed and said, "You're not wearing those shoes are you? You realize that it just rained, the fields will be muddy and you know what is in the pastures."
Like any good husband he immediately got defensive. "What do you mean? These are old shoes. I was going to throw them out. They look ok," he griped.
"They look great for a real estate agent but you are trying to sell a horse farm. The way you look is going to broadcast to both buyer and seller that you don't know a thing about your product," I told him. I knew he knew the product. He knew all about the fencing, the barns, the land and house but he looked like he didn't. He would lose the buyer trust before he got to the barn. I didn't want to bruise his ego anymore than I had so I let him go off to the appointment in his "old" black wing-tip shoes.
He showed the farm and thought he did a fine job. The buyers didn't buy (he eventually did sell it once he learned a few rope tricks) but the owner called me before he even pulled out of the driveway. She was laughing her head off about my husband's shoes. I told her the story of our conversation and she laughed even harder. Just before Amy (the owner) got off the phone she said, "Tell Tim to lose the shoes." He did the next day when he bought a nice respectable pair of mucks.
I tell that story so I can tell you this. What you know about real estate can be reversed when it comes to selling horse farms. Fancy clothes and fancy cars win you no awards when you are down on the farm.
In this book I will teach you how to prospect, list, market and sell equestrian properties for more money and how to receive an higher commission while doing it. Most agents turn down farm listings because they fear them and customers like horses can smell the fear.
In this book I will teach you about different equestrian disciplines (riding and training styles) and how that relates to selling and sales techniques. We'll talk about breeds. You won't get to know them all but you will understand how an owner or buyers choice of breed relates to their own personalities. We will delve in the horse itself. You will know the parts of a horse and you'll discover what the question "How many hands is he?" mean.
Barns are essential to a buyer. You will be able to look at a barn, know the style, assess its condition and value and talk intelligently about stalls within. I can remember one agent telling me a farm had a barn. I couldn't tell from pictures if it did or not. I took my customers out and the so-called barn was a large shed. That kind of mistake makes you, the buyer's agent, look inept and as a specialist you cannot allow that to happen.
Within the course of this book we will talk about the contour of the land, its drainage, quality of the soil for hay production and what type of land is not safe for expensive race horses. We will discuss types of fencing and why there are some types that are not safe for horses and the questions you need to ask a buyer if they are using it.
Selling horse farms, farm or large parcels of land is more about knowing your buyer and your seller. The more you know will help you avoid costly and constant visits to far flung properties. Yes, far flung because horse people would rather have the right farm than be closer to their job. Like I said, sometimes selling equine real estate is the exact opposite of what you have already learned.
There is a secret that I need to tell before we go much further. You have to keep this one to yourself. As an equine real estate specialist you will most likely be the lone agent in your niche. By the time a buyer or seller finds you they are exhausted and exasperated. They’ve seen more high heels and neat little business suits that they will ever want to see again. They are ecstatic that you even recognize that there is a barn and that you are willing to walk through it. When you question the type of fencing or the type of footing in an arena they nearly faint. Because you know the product and because you’ve taken the time to know what they have the seller is quite receptive to a higher commission rate. I ask for 8%. I usually get it. Now that you know the secret you are sworn to keep quiet. We really don’t want someone else getting into our niche, do we?
Chapter 2
“They Can’t See It”
One of my golfing partners used to tell a story about her father and uncle. Her father’s eyesight was slowly getting worse but he loved to golf. He could still hit well but he couldn’t see where the ball flew to or landed. Her father’s brother, Uncle Dave, couldn’t golf anymore and wasn’t allowed out of the house by himself. So, her dad picked up Uncle Dave and took him out on the course. He told him, “I can hit it but I can’t see it. Dave, all you have to do is watch where it goes and lead me to it.” Uncle Dave was all smiles. He knew what he had to do.
My friend’s dad teed up his ball, pulled back and let go of a beautiful swing. He felt the club hit the sweet spot and heard the crack. This was going to be a fantastic shot. He turned to his brother and said, “Dave, did you see that one?”
Once again, all smiles Uncle Dave said, “It was a beautiful shot. I watched it the whole way and the three bounces afterward. It was beautiful.”
My friend’s dad jumped in the cart and joyfully said, “OK, Dave, tell me where it is.”
To which Uncle Dave responded, “Tell you where what is?”
After you read this book you will talk to your manager and your broker about this great idea of being a horse farm specialist. Unfortunately, one can’t see the market and the other has already forgotten what you told them by the time you leave his office. It isn’t that they are bad brokers or bad managers. They got to where they are by being really good residential agents. That’s why there is no training for equine agents and that is why there is no mention of it in “quick start” courses offered by agencies. They don’t see it. A few years ago I ran across these stats in a government report. I have to thank the great website horseproperties.net for reposting them under their horse statistics tab.
A recent study commissioned by the American Horse Council Federation provides an exciting snapshot of the vibrant and diverse horse industry. The study entitled "The Economic Impact of the Horse Industry on the United States" provides compelling details and describes overall trends that are shaping the industry today. Highlights of the study include:
The horse industry has approximately $39 billion in direct economic impact on our economy. In a troubled time like this that is very good and very strong. If you add in the indirect spending the amount jumps to a staggering $102 billion dollars. Your potential clients put $102,000,000,000.00 back into the economy and most people don’t even notice the farms all around them. Your potential clients buy saddles, hay, cowboy hats, riding boots, riding helmets, horse vitamins and they spend a lot of money on vets to keep their equine friends alive and healthy. They spend $32 billion on recreation that involves their horses and another $29 billion on horse shows. Amazingly both of those areas yeild more than the racing industries $26 billion dollars.
It is a big economic kicker to our communities. Take a little drive in the country around your office. Those back roads will take you by farm after farm. Before long you will know if it is a cattle, vegetable or horse farm. For now, just drink in all the farms that surround you.
Your broker and your manager don’t do this type of driving. They’re in residential communities and see house after house. Like my friend’s dad, they can’t see the farms because they are not looking. Like my friend’s Uncle Dave, in most cases, they have already forgotten the rural market.
The study also showed that horse ownership appeals to many different types of people. It isn’t just for the rich little girl whose daddy can buy and board a horse. Twenty-eight percent of horse owners earn in the six figures and thirty-four percent of horse owners have an annual household income of less than $50,000. Owners, families and volunteers make up the lion's share of contributors to the horse economy, with employees representing only fifteen percent of participants.
The racing industry generates about a third of the equine marketplace’s money. In places like Kentucky it is hard to drive anywhere without seeing the black or white four board fencing of a thoroughbred farm. Thoroughbreds are only a portion of the racehorse world. Standardbreds compete at our harness tracks. These are expensive horses that race to win high-stake purses. Therefore, when they buy or sell a horse farm you can be pretty darn sure it is going to sell for more than they average residential home. A well appointed equestrian facility sells in the multiples of millions. A small boarding facility could run from a half million to one and a half million. The nice hobby farm with a small barn, a few paddocks and a house is rarely below $300,000. Are you getting the picture yet?
It doesn’t matter if your broker or manager understands. I was fortunate both of my brokers understood but not until I proved it. Don’t expect a lot of support from your office and don’t expect a lot of support from your bosses that is until you succeed. As they say, nothing succeeds like success. After I sold the expensive properties I had imitators coming out of the woodwork. Anyone who ever sold a chunk of land with a shed on it was now an equine agent. That was fine with me. Their lack of knowledge simply made me look smarter. Don’t expect support until you have established yourself. At that point you get support from many sources and respect from the agents who have earned it with their hard work.
UPCOMING CHAPTERS
1. Riding Disciplines-How they reveal the client's personality type
2. Conformation of the Horse-Knowing this will prevent that "deer in the headlights" look
3. The Basic Elements of a Farm-You need to know barns, houses, outbuildings, fencing etc.
4. Different Types of Barns-I even throw in some questions for you that will make you sound and
seem more experienced.
5. Horse Stalls-You will learn them from the gate in and from the footing up to the hay drop.
6. Important Rooms in the Barn-knowing this can guide your market analysis.
7. Why You Should Invest in a Pair of Mucks before you step into it.
8. Indoor and Outdoor Arenas.
9. Fencing types and what not to say.
10. Dump the heels-Equine agents dress for their own type of success.
11. How to read your client correctly-what they say they want is not usually what they buy.
12. How to do a market analysis for a horse farm.
13. The type of marketing plan that works for the type of real estate you are selling.
A dictionary of terms that will save your butt and make you look like the Equine Specialist you have become.