Yes, we are in the middle of a recession and it's hard to think of the future or believe that times will get better, but things will get better and you have to plan for it.
The rule for Realtors has always been to have listings so people will come to you. If you have buyers, you need to drive them all over town, show them 20 houses and then maybe they will buy. But if you have listings, all you have to do is sit back and wait. This hasn't changed.
It was difficult to get proper listings last year. They were priced too high. Sellers were unrealistic about the depth of this real estate crisis and how over-inflated their property value was. Now that reality has set in, sellers are more willing to reduce their price to something more realistic with market conditions. These are the buyers you want to attract.
Here are some basic rules for getting listings.
1. Target people with equity. If someone has equity in their property they will have the flexibility to modify thier asking price. There are 4 basic segments of the residential real estate market; existing homes, existing condos, new homes and new condos. People who have lived in their home or condo for at least 10 years have equity. They have room to be flexible. Those are the people to target. New home prices are coming in line with values, and inventories are starting to decline, so there might be some opportunities there. New condos (unless they are unique, like waterfront, luxury, etc) will be having problems for a while. Too much inventory. Too much coming on line. Too costly to build. This will be a hard market to go after.
2. Go in prepared. When going in to a listing presentation go in prepared with CMAs and other data that will show the seller what the true value of their property is. Be sympathetic yet firm. The last thing you want to do is waste time, energy and resources on an overpriced listing. If the seller refuses to be realistic, be polite, leave your info, and leave a back door open. But do not accept a listing that will make you look inexperienced.
3. Rentals. Some property owners are willing to sit back and wait until prices stabilize. They are willing to rent their property (even at a loss) in order to lessen their loss. This has become a big market. Some realtors have created a specialty niche with the rental market. Some are doing it grudgingly and are not treating this new niche with the respect needed. When taking a rental listing, do things properly. Take photos. Put a great description on the MLS. Make it look attractive. This will get the unit moving faster. Remember there are a lot of properties in the rental market now. The better you make it look the faster is will rent.
Marketing Tips
So now that you have some guidelines for going after listings how do you start.
1. Consult the MLS. Go to the MLS and look for what has sold in the past week/month. We are not interested in what is for sale, but what is actually closing. Develop a mental picture of what is selling, where it is selling, and for how much it sold for. This will tell you where the action is and what the true market value is.
2. Pick a farming area. Pick an area where you feel comfortable with the type of properties and the people in that community. You need to be an expert in that community.
3. Start farming that area. Mail postcards to at least 1,000 homes a month. Be consistent. Get your name out there. Become the go-to person in that neighborhood.
4. Put community information on your web site. Have a web site that people will go to in order to get marketing, economic, or community news. Be more than just an average Realtor. Be the source.
Please call DPI if you have any questions or would like to discuss your marketing plans. 305-948-2311 or go to www.dpiBIZcards.com
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