Market Shift - Things Realtors Can Do To Prepare for the On Slaught

By
Real Estate Agent with Realty One Group BR554118000

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Five years ago I was lucky enough to realize that the market was tanking and doing a major shift.  This was a shift to predominantly Foreclosures and Short sales.  I went to countless seminars and joined even more webinars where the topic was Foreclosures and Short sales and 90% of the participants said they wouldn't do Foreclosures or Short sales because they were too hard or they didn't know what to do or they were just too lazy.  I sided with the 10%, saw the future of real estate and became the best short sale agent I could be. Now that Five years have passed were heading towards another shift which is a great shift if you ask me.  We are adjusting back to a normal market, more people have positive equity and can purchase a move up home, the short sales and foreclosures are getting less and less each day.

So the Question is what is my plan of attack for this new shift?  Easy, change with the waves.

First I determine what I am up against a buyer or seller.  The buyers are still looking for the "Best Deal" and don't want to pay within 10% of asking price because they know the market better than me.  The sellers because they have access to the internet like Trulia.com, Zillow.com and Realtor.com know more about the market than I do.   I love being in a profession that I work 80 plus hours in each week and everybody else I talk to knows more than me.

Next I access what I'm up against like I just mentioned and I educate the buyer or seller.  I give them better tools then Tulia, Zillow and Realtor.com.  I give the an IDX search that's on steriods.   I no longer do a Comparative Market Analysis, I do an "Absorption Rate Market Analysis" of their home and show them where there property should be priced and what and offer should be on a property and give a three month future estimate.  This is generally and eye opener or a pattern interrupt which then allows me to do my job which is either finding the prospect the best home or sell the prospects house for the most we can get.

This is all fine and well if you have the prospect but I have had to change my marketing strategies tremendously over the past few months.  For short sales I was predominantly word of mouth and in Arizona I could walk down a street, knock on a door and get a short sale.  That’s not the case anymore.  Now I am having to do marketing.   

The first thing I changed was I started doing open houses.  I did this to get familiar again with my own personal sales tactics and to refine the information I needed to give prospective buyers in order to convert them into clients.  Hands down this is the best dollar to dollar conversion you can do.  It doesn't cost much money to do an open house and the return is 1-4 buyer prospects depending on your area.

Next I have moved my internet advertising to a different provider who is Google juicing my site and helping me understand what I need to do in order to get traffic to my site and keeping me engaged in the site.  This is much different than the past 5 years where I trusted somebody to do my advertising.  Now I have taken control of it which is a must I think for any profession but real important for us real estate agents.

I am no longer available all times of the day and night.   I turn off my phone at night and schedule appointments throughout the week.  I got to a point where I had to answer the phone whenever it rang and got caught up in the moment with all the crisis issues.  This drove me nuts and now that I have stepped back and make time for the crisis instead of reacting to them I better serve my clients because I am clear in the mind for the task at hand.

I have been asked about my fears of the upcoming change and the only fear I have is the Home Builders are getting cocky again and trying to dominate the market.  Just recently I have watched home builders in my area start with the weekly price increases and really shunning the real estate agents.  It's funny how this same treatment happened 5 years ago when the home builders go greedy, started cutting our commissions on sales, drove prices in neighborhoods up to astronomical rates and the bubble burst.  So my greatest fear is we will allow this to happen again. 

In the end I can say they three biggest things I am doing to prepare or rather embrace this market change is:

1) step up, embrace the change and accept things are going to get better.  

2)  Change the way I do business, even though I have mostly worked with sellers its turning into a buyers’ market, get out there and show some homes,

3) Change my marketing efforts away from short sales and foreclosures and gear it towards the move up sellers and the first time buyers, internet advertise, hand out flyers, contact my sphere of influence, get a website or a few websites, invest in a CRM.  It’s all working you just have to take the step and become involved.

 

 www.housescouter.com

 

 

Posted by

 

Shawn Krill

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Comments (2)

Alan Grizzle
Chestatee Real Estate - Dahlonega, GA
Full Time Realtor, Lifelong Resident of Dahlonega

I see the market shifting in nDahlonega. I had grown accustom to showing vacant foreclosures, now I have to schedule showings for occupied homes.

Mar 31, 2013 09:06 AM
Shawn Krill
Realty One Group - Peoria, AZ
Shawn Krill, CPA

Isn't that the truth.  I was taking two different clients to see homes yesterday and spent most of the night before scheduling, calling agents, calling occupants, and re-scheduling my showings on Saturday.  Its like 2004 all over again.

Mar 31, 2013 12:25 PM