SO THE MARKET IS SLOW AND SALES ARE HARDER TO COME BUY. SO WHAT?
ARE WE VICTIMS of THE MARKET? OR, ARE WE MARKET MAKERS?
What are you doing to improve your production?
I'm planning to send a memo to the agents and brokers in my network today to suggest few things that we can all do to improve our production and sell more real estate. IMO, it's all in the numbers. We're not new to the business. We're have experience managing real estate transactions. What we MUST do is improve our individual production. The secret of the growth in national economies and businesses for the past century has been a dramatic increase in production.
- For nations, it meant working hard to industrialize.
- For companies, it meant working hard to develop systems for data management.
- For individuals, it meant working hard to embrace the computer and then the Internet.
WHAT IS THE MESSAGE? In each example; industrialization, data management and computer/Internet use required study, focus, practice, application, organization and hard work. Lots of hard work. Learning new processes and applying new systems is very hard work. Breaking old habits is difficult. Analyzing our present needs requires introspection and courage to move to a new direction. Simply changing direction in itself is hard work.
GET OUT OF THE RUT. Humans are creatures of habit and we are comfortable in doing what we have done for some time. However, when the entire world is changing around us, we must change too. Otherwise, we stagnate and the world, even our small worlds, will pass us by. Don't let that happen to you.
HARD WORK TASK #1: KNOW WHERE YOU ARE SPENDING MONEY. From time to time, I evaluate the return on investment for products and services. For instance, over the years, I've subscribed to many online directories. What I found when checking the return from those directories was that they produced less in income than what I paid for the directory listing. Since directory listings are quite inexpensive, what I was getting from these directories was a simple backlink. However, if the directory didn't maintain rank in Google, it ceased to be worth what I was paying and they were dropped. Now, I had to work hardto set up systems to follow these directories over the years, but I've trimmed my overhead for directories, search engine advertising, web site advertising, etc. by $Thousands of Dollars each year for the past 4 years. Achieving simple organic SERP on Google, for instance, saved me about $600 a month beginning in 2005 when I stopped using AdWords.
HARD WORK TASK #2: IDENTIFY A MARKET NICHE AND WORK HARD BECOMING AN EXPERT. I believe that the term "Jack of all trades and master of none" offers good advice for real estate agents.
BUYERS AGENTS. If you believe that you are a better agent working with, advising, and advocating for home buyers, become a specialist in Buyer's Agency. Since 1994, I've specialized in Buyer's Agency and focused advertising to and representing home buyers. My Internet presence has focused on reaching home buyers for my market. I believe that when a consumer searches the Internet and sees confusing signals on an agent's web site, "If you are in the market to buy or sell a home. . . . ", that agent has the added task of convincing a consumer, who does not understand agency, that they can benefit by working with a good buyer's representative. This focus will produce buyer clients who want representation and advocacy for their individual needs and not just an agent.
The percentage of consumers who understand this concept is small. However, IMO, they are much more likely to work closely with one agent and have loyalty to that one agent. I am rarely contacted by prospective home buyers seeking Exclusive Buyer Broker Representation. However, when a buyer contacts me for information about real estate in my area, it is an easy task to make that buyer feel very comfortable working with an agent that will help them as a buyer and not just someone who wants us to open doors. Good buyer's agents have learned how to advocate for home buyers in contracts including; price, terms, conditions, disclosures, inspections and concessions to a degree that most home buyers would never receive from an agent who specializes in listing homes. Strong buyers agents do not believe that they "should be fair". They know that they must advocate every advantage for their buyer/clien
t.
Tip: Many agents have stopped sending out relocation packages to out of town relocating buyers. You can easily set yourself above the masses by having an easy, relevant package. Folks, especially out of town military folks love to get packages. Brokers have cut back on this service thinking that the information is all on the Internet. Sure, it's hard work, but, folks love packages. Buyers have told me that I'm the only one who sent them anything. Military buyers love to get mail of any kind. I send cookies and "stuff" to military buyers in my system. It's a good use of resources.
LISTING AGENTS. The majority of agents are inculcated in the believe that "to list is to survive". I suspect that a few are now questioning that theory. Fact is, our markets have cycles from Buyers' Market to Sellers' Market and while the years 2004-2006 were strong sellers' markets, we are now in a cycle where buyers have a stronger position with respect to negotiation of price, terms and conditions than any time since the early 1990s. However, many agents have developed strong presentation, marketing and listing management skills and those agents have adjusted and are thriving. These agents have worked hard to expand their listing services and skills to include hot niches such as foreclosures or short sales.
Agents who specialize in listings are often more market savvy than the "generalists" who try to represent any and all consumers. Strong listing agents have worked hardto develop productive advertising, listing, promotion, networking and contract management skills and systems. The focus on pricing is much more critical for listing agents than for buyers agents because if the house isn't priced right, it is unlikely to get agent traffic. Further, if agents repeatedly list overpriced properties, they will soon go broke. Presentation skills and presentation systems are important to listing agents since they have to convince the seller that they and they alone are the best agent to get the highest price in the shortest time for that home that the owner wishes to sell. Understanding comparable sales and pricing is a skill that good listing agents work hard to incorporate in their practice.
HARD WORK TASK #3. WORK HARDER ON YOUR SPECIALTY. Recently, we've seen many comments on ActiveRain with the comment that "we'll take anything now". That practice is completely understandable, but, sadly, it will often cost the agent who takes a buyer or seller as a client when they are not comfortable or skilled in that type of representation. Often we read posts about bad experiences of agents who write about buyers or sellers that they didn't want to take but, because of the slow market, did so and were later realized that they made a mistake. We can often stumble into a sale, but, unless you have experience with both listings and sales, can lead to a significant loss of time and resources.
HARD WORK TASK #4. ADD A FEW MINUTES TO YOUR DAY. My answer has always been, is now and always be - identify your market, focus on that market and work hard to develop that market. However, since we are individuals with family, friends and responsibilities, we have to find a few minutes each day or a few hours each week to devote to work. Adding 15 minutes a day posting to a web site, answering e-mail, working ActiveRain, or previewing one property for sale, will add to your knowledge base. Sure it's hard work, but you'll not only be working harder, you'll be working smarter.
HARD WORK TASK #5. PRESERVING CAPITAL takes planning. Plan your shopping trips to save driving miles to distant stores. Make a list and check it twice. If you are out showing homes or visiting your office, stop by the shops or stores while in route. You'll not only save gasoline but you'll save time.
HARD WORK TASK #5. ADVERTISING. Review all of your online, magazine, newspaper, or other advertising to verify the value. Be very leary of subscription based advertising. If you have to commit to a 6 or 12 month period, be careful. You will likely find, after 6-12 months that all of those directories, aggregators and competing web sites are not producing and you will not be able to stop the bleeding of resources (money). This takes hard work to track your business. But, if you are subscribing to on line Verizon Yellow Pages, Homes.com, etc., and you cannot identify either a buyer, seller call or back link, you have wasted a lot of money. The subscription based advertising of some vendors is, IMO, one of the biggest scams on the Internet.
PUT THE FOLLOWING ON YOUR SCHEDULE
HARD WORK TASK #6. BANK SOME CONTINUING EDUCATION CREDITS. Winter money in colder climates is a wonderful time to get those CE hours. Less daylight means fewer showings and more time for CE. CE is probably the best use of agents' time because, not only are we banking the hours for re-licensing requirements, we learn and widen our knowledge base. Most REALTOR Associations offer low cost CE classes. Many are on line and easy to register. Put it on your schedule.
HARD WORK TASK #7. WORK HARD EVERY DAY TO IMPROVE YOUR INTERNET PRESENCE. Yes. Every single day. If you simply post to your personal blog, you will get some Google juice. Write a 10 line post about a community and add a picture of a house or yourself or the countryside. If you add 10 lines to a web site or personal blog every day, Google will visit more often and you'll rank better. That's money in the bank for agents who rely on the Internet for advertising. Put it on your schedule.
HARD WORK TASK #8. WRITE A POST TO ACTIVERAIN SEVERAL TIMES A WEEK. Read a few posts and comment on a few every day. You'll get some ActiveRain juice which, in time, will translate to Google Juice. That's money in the bank.
JUST DO IT! Stop thinking about it and just do it. IMO, none of us works at full capacity. If things are slow, we can improve our production by XX percent simply by focusing on what works and working hard
er.
I NEVER PROMISED YOU A ROSE GARDEN. However, the promise of succeeding in real estate sales in a slow market will redound to your benefit for years to come.
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.
These sad and shocking statistics came out today about Bay Area home prices, further tarnishing what was once some of the most coveted (and most expensive) real estate in the country: The median price for a home in the Bay Area has plunged an astounding 44.4% from November 2007 to November 2008.
They are at a 37 year LOW. I locked my very first loan EVER that started with a "4", as in 4.75% (also shocking..to me, anyway) In late November the Federal Reserve moved to purchase as much as $600 billion of mortgage related securities, which has helped rates move lower.
The BULLISH:
The BEARISH:
choice. 
;)
;)
