How to Stay Up in a Down Market

It has been a while since my last posting. Mostly because I went to the annual Keller Williams Realty family reunion in Atlanta, GA. Not only did I come back with a whole host of ideas for postings that I will be putting up in the next few weeks, but I also came back with the flu bug that has hit this country hard. That said, waaaaaahhhh, I am behind so bear with me as I share some great information with you over the next few postings.

My topic today is "How to Stay Up in a Down Market". It is apparent that the real estate market has shifted across the entire country and all agents are feeling its effect. But there are certain things you can do to get you through this time that will help guarantee your long term success in this business.

Here is a list in no particular order of importance, but things you need to remember as you go through your day. I'd like to credit alot of what I have hear from my colleague Rosemary West of the Rosemary West Team in Joliet, IL.

1. Bottom line is that your potential clients and prospects are looking to you as a leader. They are looking for someone whom they can trust to get their home sold or find them a great deal. We are here to educate our buyers and sellers. So, instead of painting a picture of doom and gloom, paint a picture of how smart money is buying this time so if you are in the market to buy, this is the time. And if you are in the market to sell and buy, you might not get what you could have 3 years ago but you will make up for it on the buy side.
2. Have a pro-active marketing plan for your potential listings. Be the expert and be prepared to spend the money necessary to get your listings sold. You have to be a problem solver and you have to be educated about the market in order to get a home sold. Know your comps for all your listings so you can price them accordingly to attract buyers. Well priced homes in great condition do sell in this market.
3. Don't take a listing from someone who is unrealistic about their price range. Be prepared to walk away and tell them that you hope they keep your name and number should it not sell with their first agent. This is critical. Listings require a lot of effort and it makes no sense to put this effort in if you price it too high.
4. Be busy doing the right things. What I mean by this is do the activities that are revenue producing. You have heard me talk about the 80/20 rule. 20 percent of your activities produce 80 percent of your results. The other 80 percent is just stuff that doesn't make you money like paperwork, answering emails, developing flyer's, marketing plans, etc. Only concentrate on the 20% that produces REVENUE.
5. Be the agent that knows the market value of a property. Overpricing a home is the oldest trick in the book just to get a listing. Be prepared to share this with a home seller and be prepared to walk away and wish them the best.
6. Be prepared with your very own Unique Selling Proposition. In other words, what makes you different than all other agents out there. Selling a home is no longer placing a sign in a yard and listing it in the MLS. It takes your strengths and abilities. It takes a great marketing plan to get a home sold. Have this down pat in your listing presentation.
7. Align yourself with your Core Advocates like a good mortgage broker, title rep and escrow company. If you are not asking these people for referrals, you are missing a great opportunity for referral business. After all, if you are sending business their way, they should be sending business your way. It's a two way street.
8. To capture buyers, use a great hook in all your ads like, "Ask me how you can save 1% on your first years interest rate on your new home purchase". People always want a deal and if this can entice them to call you, you should be prepared to explain to them how a seller contribution can buy down their rate for the first year and how you can write this in to their offer.
9. Show how you are prospecting for buyer's by actively marketing your listings. Show them all that you do to pursue every opportunity out there. Your marketing program should be a pro-active marketing program, not a passive marketing plan. By pro-active, I mean things like knocking on the neighbors doors to introduce yourself and telling them about your listing you have for sale in their neighborhood.
10. You get what you pay for. You deserve 6% commission in this market. Be prepared to only accept 6% and be ready to explain why now more than ever it is important to offer that full 3% to the cooperating broker.
11. Know how to explain to a listing what their home is NOT WORTH. It is not what they have in it, what the appraised value is, what it is assessed at, what they need out of it, what they want for it, what their neighbors house sold for, what it's insured for, what memories and treasures are in it or what the prices of homes are for where they are moving.
12. The true value of a home is, what buyers are willing to pay based on today's market, the competition, financing, perception of condition, economic condition, location, normal marketing time and acceptability to the market.
13. Explain how they can control the showing conditions, the price and the offering terms.
14. Be prepared to explain how you do not control the market, value or the motivation of their competition. You don't determine the market, you only analyze it. To explain this you can use the used car scenario. On a car lot, the shiniest car at the best price will be the one that gets the most attention.
15. Counteract what the media is saying by coming out with your own message. Be prepared to discuss all the good as you see it like:

• Foreclosures are great deals right now
• Quality homes in top condition that are priced right are still selling.
• Fixer uppers that can be stolen from investors who have too many mortgages on them.
• Buyers get what they want in most cases.
• Interest rates are still at historic lows.
• Seller buy downs can reduce first year interest rates to 4.5%
• Investors can tap in to their home equity to purchase properties at great steals.

16. Rosemary taught me this geat phrase and I'd love it if you listen and heed this advice. She says that you have to have skin in the game. Put your money where you mouth is and show your sellers how your are spending money to get homes sold. It shows you are in the business 100% and are stepping up to the plate and continue to market as you have in the past. When you go in to these houses, you can talk to them about this and say, just so you know, I have thousand of marketing dollars being spent in the game before I even get to the table to earn my commission. So I'm trusting in your that we can price your home competitively to make it shine and get the home sold.

17. Be willing to work the Expired Market. There is no greater time to call on Expired Listings as there are more now than ever.

18. Don't work short sales. They are a pain and you never know if they will close or what your end commission will be.

19. If you have a lead, then you better be on that lead like a banana on a split. Leads are so few and so precious these days that it requires you to be quick and responsive to every lead that comes your way.

20. Finally, you have to have a positive mental attitude. Whatever it takes, you have to get yourself in to the mindset that good things are happening. Clients and prospects will feel this in your voice and actions. They want you to know you are projecting a confident situation in these bad times.

Happy Production. More to follow in a few days.