Defining a "Good Deal" in today's Real Estate Market

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Defining a "Good Deal" in today's Real Estate Market


What is a “Good Deal in today’s Real Estate Market?

I’ve read over and over again that “a recession is a terrible thing to waste”. And I agree. When I googled this phrase in quotes, I came up with 23,300 hits. The truth is, during any downturn, someone is having an upturn. In the retail market, that someone is Wal Mart and Target instead of Nordstom and Neiman Marcus. And in real estate it is no different. Many people are very quietly celebrating this recession… and making big bucks by taking advantage of it. Someone is going to win big and I want it to be you!

So, how do we as real estate agents, win big?

By making our Buyers and Sellers win big, of course! The problem, as I see it, is that the general public does not see the opportunities out there. Like how to use the home they have as a tool to position themselves in a better place when the market recovers! What an opportunity they have and they don’t often see it. Instead they see how much they’ve “lost”. When they haven’t lost anything!

And the Buyers? They all want X% off the LIST price when the real question is how much off the last peak price is the home? How much will it be in the next peak?

So, how do we, as Agents, show the Buyers and Sellers the truth about the opportunities today and not “waste this recession”? I have some thoughts and would love to hear yours as well.

1. Do the research and tell the Buyers what the home was worth in the peak before you show them. “This home was worth $500,000 in the peak and it’s listed at $300K now. That’s $200K less than the last peak! How much do you think it will be worth in the next peak? How long do YOU think it will take to get there?” That allows the Buyer to see the unbeatable “GOOD DEALS” they have available today!

2. Show the Sellers how to use their home as a tool to get in better position for the next wave. If they keep the home they are in, they are in no better position. Of course they must also need/want/can afford the next property but you may be surprised when you run the numbers. I’m seeing Sellers that can sell (for much less than the peak was) and re-buy a bigger, better, newer home for nearly the SAME monthly payment they have now. PLUS, they are positioning themselves to really win in the next upturn! That’s showing them how to get a really “GOOD DEAL”.

3. Show investors the positive cash flows they can have buying investment real estate in today’s market. Positive cash flows are abundant and I think we all believe we are at or near the bottom. Explain the risks and the benefits to them. It’s a GREAT time to buy investments! That’s what people who get a “GOOD DEAL” are doing all over the country!


It boils down to this…. How well do YOU understand what is a "good deal" and how well do you deliver that message? Would love to hear your comments.

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Information and content in this blog is original to Donna Stott.

 

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Donna Stott

Your Coaching Matters

Based in Roswell, Georgia -   Serving all of North America & Hawaii

Moving you forward from where you ARE to where you WANT TO BE!

 

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Re-Blogged 1 time:

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  1. Ilona Matteson 08/13/2010 04:21 AM
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Rainer
115,442
Renee L. Norton
Birmingham, AL

I like your idea of telling the buyer what the house was worth in the peak.  There are buyers who will make low offers and act offended when the sellers do not come off of the listed price x amount of dollars...even when the listed price has been greatly reduced.

Jan 11, 2010 01:13 PM #1
Rainmaker
260,776
David Monsour
Keller Williams Keystone Realty - Gettysburg, PA
ABR - www.realty-insights.com

Donna - You made some fantastic points here.  I haven't considered a few of these angles.  I love using material like this to explain market position.  Nicely done. 

Jan 11, 2010 01:15 PM #2
Rainer
75,709
Joel Prince
The Principle Group, Inc - Hixson, TN
Hixson/Soddy Real Estate Broker

Great info.  A good deal has to be taken in the context of the broader market.

Buyers do well to heed this advice.

Jan 11, 2010 02:25 PM #3
Rainer
13,168
Donna Stott
Your Coaching Matters - Marietta, GA
Passionate Teacher / Lifelong Learner

Thanks Renee, David and Joel.  Our job is to better communicate to our Buyers and Sellers the advantages the market has to offer.  Move-up Sellers are one of the most underrated people who will "win big" in this market.  Be sure to explain this clearly to all your past clients and centers of influence. If you need help with a script for that, just email me at dstott@qtscoaching.com  Free, no obligation. I truly do want to help.

Donna

Jan 12, 2010 02:48 AM #4
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Rainer
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Donna Stott

Passionate Teacher / Lifelong Learner
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