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Markets across the country have been fluctuating
wildly on a monthly basis, and despite some signs of improvement, it
doesn’t look like the turbulence will abate anytime soon. Brokers, sales
associates, lenders, and any other professionals who make their living
in real estate should face this new reality and prepare for a tumultuous
environment for the foreseeable future.
However, there are three specific steps you can take
to ensure your success and income in this uncertain marketplace whenever
you encounter low production, changing marketplaces, or falling short of
goals.
Step 1: Re-price your listings to reflect real market
value.
With only 47 percent of listed homes selling last year
(USA), it seems clear that we have a problem in pricing. My own analysis
shows that about 80 percent of homes for sale in most marketplaces are
overpriced—that is, unlikely to be sold at anything like their listed
price. In contrast, short sales and foreclosures in most marketplaces
are selling because usually they are priced more competitively.
The fastest and easiest way to a commission check is a
well-priced listing. Price usually trumps all other factors—for you, the
buyer, and the seller. What a property will actually sell for is
dictated by the marketplace. The only decision is whether to sell or
not.
In some situations, you’ll need to convince clients
that they need to sell at a price below their expectations, painful
though it may be. If you have a listing that is going to be a short sale
but the seller just doesn’t know it yet, then tell him. If your client
has to sell and can’t hold onto the home, then help her face the facts.
Step 2: Call all leads and ask for face-to-face
appointments.
We are less personal today than when I entered the
business more than 20 years ago. We need to focus more on face-to-face
presentations. I believe one of the problems we have in the real estate
business is with the word “sales.”
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Too many agents have lost their way—or never even knew
the way—in this industry. While new technology has altered lead
generation—through the Internet, social networking, Web sites, call
capture, squeeze pages, electronic newsletters, and other formats—the
model of lead conversion has largely been unaltered. All leads still
ideally need to be run through a fundamental sales channel of calling
and face-to-face conversion.
Step 3: Start prospecting now!
Think about it: What’s your conversion rate on a lead
that you can’t get face-to-face with? If you got face-to-face with them,
did you book the appointment using e-mail or a phone call? If you said
e-mail, then how many leads did you need to create or interact with via
e-mail to get one of them to finally meet with you face-to-face?
I realize that once I use the “P” word, a lot of
people in real estate immediately say, “He’s out of touch.” Am I? I
don’t think prospecting will ever become obsolete or out of touch.
Searching for sales leads systematically in a personal and direct manner
will always have a place in sales—and especially real estate sales.
If, when I used the “P” word, your mind went to a
place where you are mindlessly dialing random numbers down a street or
calling expireds or FSBOs, you really don’t understand what prospecting
is. Sure, those are forms of prospecting, to be sure, but not all agents
should do them.
Being a top producer in real estate means having a
personal system for making contact with prospects and doing it
consistently. Not having that plan and discipline leaves you at the
mercy of the market.
If you don’t have it, you may find yourself having to
learn new scripts and dialogues such as, “Welcome to McDonalds, may I take your order?
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