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Once Again, I Find Myself Bucking Traditional Wisdom

By
Services for Real Estate Pros with AZ Veteran Notary Services CA BRE 01444168

Let me start by saying that I love the end of the year and the natural slow down that occurs in the real estate industry starting around the middle of December and lasts straight through the first week of January.

Many REALTORS® are taking it easy - enjoying the family and holiday festivities, rightfully so, I may add.  However, there are many who do absolutely nothing for their business during this period and just come back to work doing what they were doing the year before. (Although I am afraid in 2008, many will not be renewing thier annual dues to NAR and their State Associations.)

While I cherish every moment I have with Sherri, my wife, I am working harder now than ever.  Not only do I have my day-to-day business to take care of, but I am also very busy analyzing every aspect of my business and trying to figure out what to do differently next year and what to do more of the same of.

Once again, I find myself bucking traditional wisdom.

Since the market has definitely turned 180 degrees in the past 12 months from a solid sellers market to a very depressed buyers market it seems everywhere I turn I am being advised - even lectured that I need to spend my activities on buyers.  It is funny, because those who are struggling will sneer at me and tell me that anyone can go get 20... even 100 listings right now if they wanted to - but what good are listings if they never sell.

I say that whoever controls the inventory controls the market.

Prevailing wisdom dictates that we need to spend out time and resources on developing buyer leads.  I strongly disagree, as the real estate business has always been about controlling the inventory.

Today's buyers are much more difficult to work with.  They are never certain if they are getting ‘the best deal' and will often pull out of one escrow as yet a better deal exposes itself on the Internet or elsewhere.

The buyers in this market are much more difficult to qualify.  Long gone are the days of readily available 100+% financing for anyone who can fog a mirror.

The buyer today requires much more of the agents time to write a deal that takes longer to close than they have anytime in the past.

Control The Listing

I say if I can control a large pool of well-priced homes that are competitive in today's market, than I will attract the buyers.  My Internet marketing is second to none in my market and I can organize one heck of an Open House, when I want to.

So, if I can control the inventory and attract qualified buyers, why not do it through my listings, instead of trying to play in someone else's sandbox.  Once I have an interested buyer, I can be much more thorough in screening and approving them for my listings.  I can find out about their motivations, I can counsel them to make sure this is the right decision and that they won't be bailing on me in 3 weeks and I can obtain the best financial information available.

Most importantly, if I play my cards right and present myself as the true professional real estate agent that I am, I will not have a problem having them retain me as their exclusive buyer's agent when they sign my Buyer-Broker Agreement.

So to all of my competitors, keep looking under all of those rocks for the next qualified buyer, as for me I'll be at an open house this Saturday with my switch book ready to go!

Until Next Time, Have a Blessed Day,

John Occhi, Hemet CA REALTOR®
Mission Grove Realty


Author of "What You Need to Know...About Foreclosure and How You Can Stop It!" - If you are a Hemet or San Jacinto Homeowner please call (951-443-6259) for your free copy.

 This blog and the contents written here is the intellectual property of John Occhi, Hemet California REALTOR®.  The views and opinions expressed are just that - views and opinions of John Occhi and those who comment.  Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance. 

This blog is part of the ActiveRain Real Estate Network, which is a social network highlighting the best of Web 2.0.  Information is provided with the intent of educating and assisting home owners, home sellers, home buyers and real estate investors with information the can be used to make better real estate decisions. 

I am proud to be a full time REALTOR® with Mission Grove Realty who is proud to be a contributing member of the ActiveRain community.

 

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Until Next Time, Have a Blessed Day,

John Occhi, ePRO, REALTOR®
DRE Lic No: 01444168


ePro,John Occhi,www.johnocchi.com,realtor      Certified Probate Real Estate Specialist Logo Awarded to John OcchiFive Star Logo,Certification,REO,Five Star Institute     

Excellence in Real Estate,Team Log,John Occhi,www.johnocchi.com,hemet,san jacinto,CA  

This blog and the contents written here is the intellectual property of John Occhi, Temecula - Murrieta, CA REALTOR® in the South West Riverside County region of the Inland Empire of Southern California.  The views and opinions expressed are just that - views and opinions of John Occhi and those who comment.  Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance. 


I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

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Lanre-"THE REAL ESTATE FARMER" Folayan
Samson Properties - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES
Hello John. I want to wish you,your family,friends and colleagues at Mission Grove Realty a Merry Christmas and a safe and prosperous Happy New Year. May 2008 bring you much peace,joy,love,happiness and abundant blessings. Have a great day. Great post.
Dec 24, 2007 05:06 PM
Robert Huntsinger
Empire Realty - Upland, CA
Empire Realty Upland, CA - Full Service at a Discount

John,

As always you are wise in your ways, besides controlling the market you also get the calls and inquiries.

Happy Holidays!

RJH

Dec 24, 2007 05:10 PM
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

John, Interesting post! Wishing you a Merry Christmas and a prosperous New Year.  8-)

Dec 24, 2007 06:10 PM
Jen Hudson
Windermere Real Estate/M2, LLC - Stanwood, WA
Stanwood, Camano & Arlington, WA

I say you need to "list to last."  I'll be honest, the majority of my time has always been attracting sellers.  The vast majority of buyers I've worked with this last year have all come through my listings.  I totally agree with your system, it works for me.

Thanks!

Dec 24, 2007 06:20 PM
Ron Parise
LocateHomes.com - Cape Coral, FL

bucking traditional wisdom has always been my way.  When everyone is buying...thats probably the best time to sell.

I came into this business at the height of the sellers market, and I came in as a buyers agent and I do what you suggest "be ...thorough in screening and approving them.....  I .. find out about their motivations, I...counsel them to make sure this is the right decision and that they won't be bailing on me in 3 weeks and I ... obtain the best financial information available."  I much prefer working with a qualified buyer over an unmotivated seller. ........

However, recently I have seen what you see....more and more agents are deciding that if this is a buyers market, they should be working with buyers. Listing agents are moving onto my turf.....Contrarian that I am I have decided that its time for me to learn how to list a house. My thinking is that if I qualify sellers like I qualify buyers (ie I want motivated sellers and well priced inventory) I can control 50 or so listings and add significantly to my sales in 2008

Dec 24, 2007 11:50 PM
Brian Wentz
Keller Williams Greater Des Moines - Des Moines, IA
Realtor - Des Moines Iowa Real Estate
John ~ I agree that listings are important, but when given the chance I almost prefer buyers. But that is because I have a highly systematic process that we use on buyers, which keeps me, and them, on track. We use exclusive agency agreements on most all our buyers. And like with sellers, having a great buyer process means happy buyers refer other would-be buyers. We have found that many consumers, when moving, first think of buying- not selling. So positioning as being strong with a buyer sometimes get a client to me first. Different strokes/different folks- that's what great about the business! Merry Christmas
Dec 25, 2007 01:06 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate
Merry Christmas to you and Sherri. Who controls the inventory, controls the market. Always has been that way and I suspect it always will be. But, it is easier to work with buyers now days. IMO
Dec 25, 2007 01:23 AM
Graham Holmes - Yucaipa Homes Listing Agent
Reviron Realty - RDCPro e-Pro Listing Broker - Yucaipa, CA
When Experience Matters
John you are absolutley right. For those out there who think you do no need listings they face tough times ahead. LISTINGS GENERATE BUYERS - PERIOD. Our office phones have never rung so much since we added so many listings. Yes they are costly to service and take time and effort, but it is effort well spent.
Dec 25, 2007 04:39 AM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645
I like you approach.  When it was true sellers market, I still focused on buyers.  In this market I am with you, why not go after listings?
Dec 25, 2007 05:08 AM
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS

He who holds the most listings is king or queen, if you are a she, like me;)

Dec 26, 2007 11:58 AM
Fran Gatti
RE/MAX Integrity - Medford, OR
Managing Principal Broker - RE/MAX Integrity

John,

Good post and good food for thought.  I have generally liked working with buyers more than listings, but have decided to focus on that aspect of the market for awhile.  I feel being successful with both will be advantageous to my clients.

Merry Christmas,

Dec 26, 2007 02:29 PM
Rosemary Brooks
BMC Real Estate - 209-910-3706 - Stockton, CA
The Mother & Daughter Realty Team
John, John ~ You did it again.  Layed some solid planning and organizing tips on my head.  Thanks I too am in the process of figuring out the best route to follow for this coming new year.  I looked back on where my focus has been for the last few months and I will enhance on that focus and I will also pick up new ideas or get back to basics as needed.  In a heartbeat. Thanks for the ideas.
Dec 28, 2007 07:18 AM