If you’ve been following the national news recently regarding the bankruptcy of Lehman Brothers, the stock market getting hit and Fannie and Freddie being taken over by the government, these are all the classics signs of the bottom of a market correction.

Right now, we don’t have so much of a real estate problem as we do a banking one. Prices have mostly stabilized across the country and in the short sale and foreclosure market we’re seeing multiple offers. Although I do believe there are a couple more banks in trouble and there’s not yet a full complement of mortgage products to satisfy all the buyers in the market, trust me that will get sorted out. For thousands of years lending money has been one of the most profitable businesses in the world. Banks make money by lending; not by deposits. So they will figure out ways to package loans and get cash into the hands of consumers. I believe this is the final cleansing process and in the next six months we’ll start to come out on the other side of this.

Make sure your clients don’t get caught in the “cudda shudda wudda” of taking advantage of this market. Make sure all your investor clients are fully aware of all the deals that exist and if there’s any way possible, see if you can pick up one of these real estate deals as part of your own investment strategy. We won’t know what the bottom is until after but I believe it’s pretty close. Keep your head down working hard.

It’s a good life!

Brian

A couple of years ago, buyer or seller objections were likely related to the lack of inventory, or to multiple-offer scenarios. While this presented its own set of challenges at the time, today inventory is up, the market has adjusted and objections are a big piece of the puzzle you have to solve. Oftentimes an objection is the only thing standing between you and doing business with someone.

Typically, objections are just smokescreens for peoples’ fears. Instead of telling us they are afraid, they’ll throw up a smokescreen as a way to get time to think. When making a decision, we are committing to something and that can make us nervous. And if there’s one thing that can make people nervous, it’s buying or selling a home.

Listen to your client’s concerns; try to help them isolate what is causing the fear and then work together toward a solution. Remember, this is not a sword fight. A transaction is a commission that’s often already spent, but a client is an asset that grows and grows for years to come. Don’t win the battle and lose the war. If you have a desire for approval,  it can be easy to get sucked into an objection so don’t be defensive when you encounter objections. Take a listening approach to this and remember; objections are a smokescreen for what the real fear is.

A professional is excited to deal with obstacles...so go into battle for your clients; not against them!

It’s a good life!

Brian

The three opportunities in today’s market are first-time buyers, move-up clients and investors: 

• First-time buyers. Many people have a desire to buy a home almost as a rite of passage or that fulfilling sensation of having a place to call your own. No matter what the market conditions, first-time buyers are always going to try to break in to home ownership.

• Move-up clients own a house but it either doesn’t fulfill their current needs, or it’s not the house or neighborhood they want.

• Investors who are looking for a long-term play in real estate are enthusiastically looking for properties right now because it has a built-in discount and an investor who’s smart enough to hold onto a property will have a nice piece of built-in equity.

My hope for people in the real estate community is not only will they help their clients skillfully through the transaction process, but they ultimately get to participate in real estate as an investor themselves. Become your own best client…and your fortune is assured. 

It’s a good life! 

Brian 

With two adults and six active kids, you can imagine how much laundry there is to wash at our house. Sometimes we miss a couple of days, the baskets in the kids’ rooms overflow and when all piled together, the mountain of clothes looks like an overwhelming task with no end in sight. We have a choice at that time; clean clothes or go shopping for more.

As grown adults when we get behind on our lead-generation activities such as writing personal notes, making calls or doing Pop-Bys to our favorite clients, it’s just like a pile of dirty laundry. The thought of catching up seems overwhelming, the notes begin to pile up, and rather than sitting down and dutifully going through these one at time we let our minds drift: “Let’s run out to the Realtor® store and buy a talking house sign”, “Let’s go buy some internet leads”, “Let me do anything other than chip away at that big pile of unfinished tasks which will ultimately allow me to get my financial house in order.”

Very few people allow their dirty clothes to pile up for weeks on end, but in my experience, many small business owners will allow their lead-generation activities to pile up. Allowing your laundry to pile up is not the most hygienic thing to do… and if you put it off long enough, you’ll have nothing to wear. Putting off lead-generation activities isn’t too healthy for your business either and eventually will leave your financial cupboard bare!

It ain’t sexy but it’s simple enough: take care of your business before your financial challenges become your personal dirty laundry.

It’s a good life!

Brian

That was what my old high school coach used to shout to me on the field. That was his clarion call to increase the level of physical play on the field. It seemed to work as he led us to a National Championship. One thing I know is that principles don’t go out of style. And if you want to win a championship in your business, it’s time to step up your physical interaction with your clients.

In the colder climates, people have been cocooned in their homes with fewer people interactions than normal. Now that springtime is here, get out amongst your people. See them at work, at home, at events, or at business networking meetings. Attend seminars, classes or take in a show or ballgame together.

Visibility is key; especially with all the negativity in the media about the marketplace. Knowing that you’re active and out and about deepens your hold on being their trusted advisor. When the going gets tough, the tough get out and visit people.

So, get in your car and Pop-By! Visit, or break bread with your favorite people. And for goodness sake, let ‘em know you’re there…for them!

It’s a good life!

Brian

In business there is so much that is out of our control. Unemployment rates, interest rates, and housing prices. Don’t ever get caught waiting for those factors to influence your personal income. There’s only one market you can master and that’s the six inch market - otherwise known as the space between your two ears.

There are many new agents currently doing well because they don’t know how the market is supposed to be. There are many veterans waiting for the market to turn to “normalcy”.

This is normal.

In each of the last five decades, there has been price growth and retraction; high and low unemployment; wars and peacetime. People are still going to buy and sell homes. In 2008, somewhere between 4.5 and 5 million homes will be purchased on the resale market. How many are you going to sell?

It’s a good life!

Brian

Nationally, the market is correcting itself and becoming more "normal". I have lived through this and seen the animal before. In the nineties in San Diego, our prices dropped over 30% and many agents were forced to leave the business.

There are two magic words you must remember: market share. 

This may mean you do fewer deals, but proportionately you will actually be doing more. You’ll always hear me talking about not comparing yourself to others, but this is the one time it’s good to do that. Look around you. You might be down to one deal a month but keep perspective. There are people doing nothing.

Right now, make a commitment to your career. You might be doing fewer deals and making a little less money but it’s time to expand market share. Everyone is in a different place but it’s time to increase your percentage of the transactions going on around you. Intensify your commitment to the activities in the Referral Systems and you will come out of this market in a great spot.

While it is natural to feel bad for anyone facing foreclosure or a short sale it’s VERY important that you don’t over-own your clients’ problems. Whether they made some bad choices in the past or are responsible folks who have been put in a difficult situation because of job loss or market changes you can’t own it. The best way you can help them is to listen for their concerns and then help them get to and stay on the solution side of the problem.

In a tough market like this, your clients will see you sticking it out and their level of trust and confidence in you will increase. You’ll become the trusted advisor to their database and a professional they and their friends can count on.

It’s a good life!

Brian