REAL ESTATE AGENT NEWS

How to Adjust for a Tough Market

by Walter Sanford

Recently, I have been deluged with Emails and calls from concerned owners, managers, and brokers about huge inventories, cement-head sellers, and buyers still waiting for the bottom of the market.

There is a business plan that I used in tough markets. This business plan worked unbelievably well, and now, my coaching clients across the nation are using it to move production to pre-2006 levels. Yes, it will take a leap of faith for some, but I promise, if you can make these adjustments to your current activities, you will see the pot of gold at the end.

Here are a few key points of the plan:

There are fewer reasons for buyers to buy and for sellers to sell. We have to increase our sample size so we are meeting the needs for those who are truly motivated. Even though inventory is up, I want you to have MORE! By having more inventory, your chances of meeting motivated sellers increases.

Motivated sellers are the only ones that will compete against short sales, REOs, and other "must sell" sellers. Spend about 25% of your time coming up with fun, pro-active ways to generate seller leads. These lead generation methods must be inexpensive and easy-to-implement.

If these methods are effective, you will want to make them a permanent part of your schedule with time-blocking. Identify the groups most likely to list, develop a list of values that will excite that group, and then deliver those values by phone, mail, Email, and your website. You will find that when you give true value to a motivated demographic, and it is easier to talk to them.

"But Walter, we really need motivated buyers." Yes, you do. Have you really researched the least expensive way that produces buyers? Answer -- having you own listings! Not an IDX system that allows you to piggy back off everyone else's listings, but your own listings.

The leverage of real estate is the reason I have been passionate about this business for 32 years! It is also the reason why I could do more in less time than the other agents in town. I achieved multiple outcomes with one exertion of energy. The more seller leads that I received, the more listing presentations I was able to give, then the more listings that I could produce.

Between the signs and numerous websites showing my listing, I created buyer leads! At the same time, if I was good at the listing presentation and had a saleable listing, the cooperative agents would try to sell it for me while it was producing buyers. I would implement my systems to increase my chances for a double-ended system. Now, that is leverage!

Just showing up to take a listing is old school. You need to counsel the potential sellers before you leave your office. Ask them questions to make sure you are spending your time profitably with a motivated seller. Refer the others out.

You have two jobs in this market -- determine motivation and make the appointment. All other discussions get put off until the listing presentation. Since you know more about the seller because of the counseling questions, you will be able to focus on the seller’s needs at the listing presentation. Your listing presentation will be shorter with a motivated seller.

"But, what about the buyers, Walter?" Under-motivated buyers will not perform the activities necessary to achieve their success. We ask them thirty questions to help us find their target property, get them a formal pre-approval letter, show them properties that no other agent will ever show them, and ask them to sign a loyalty agreement. The ones who fall out of the system go to a new agent in the office for a referral fee. You are then left with the buyers who are motivated and real. You like them because they showed enough motivation to participate in systems that would help them.

How deeply is the lender involved in your business? What about your title rep, home warranty company, termite guy, or inspection company? This market requires a team effort.

Is your personal promotion upbeat? Do you have the reasons for sellers to sell and for buyers to buy? Make sure everything that leaves your office shows your beliefs in real estate.

Let's talk about how to get leaner. What does not work as well as other activities? What are you going to cut from your checklists? What more profitable activities can be added? Can you delegate some activities to clients and affiliates? You can make small tweaks to cut expenses, allowing you to be more productive. My systems have always been about trying to get your week done in 40 hours and not to be disturbed by the “siren's song of the business” while family, faith, fun, fitness, and personal finances are to be the priority. How to get more done in less time in a tougher environment is what I have personally lived and now aggressively pursue.

I know that agents in “overwhelm” mode will get nothing done. There is a first thing to do and then a next. Direction will increase effectiveness and provide the motivation every morning to get out of bed.


About the Author: Walter Sanford was one of the top real estate agents in North America for nearly thirty years, and now, he is one of the most requested speakers, trainers, and coaches.