By Rich Levin

These are the first two of many Soft Market Strategies. Watch for upcoming articles that will give you winning tools for success in your market.

Let’s get the facts straight. I have looked at the data. In nearly every market across the country sales volume is down significantly. Most markets are off by over 25%. That means there are over 25% less commissions to be earned. The pie is smaller. How can you ensure that you get your piece of it?

Strategy #1: The Secret to Capturing the Serious Motivated Buyers

It’s a Buyer’s Market. Buyers have an advantage and they know it. To capture the serious motivated Buyers, to have them take you seriously, to have them want to meet with you and work with you, you need to have a captivating interaction with them by phone or e-mail.

There is only one way to have that interaction. I have worked with thousands of Agents in an equal number of locations. I am not exaggerating when I say that there is only one way to have that interaction.

The Interaction: If they are in your Sphere of Influence, a personal referral or a repeat customer, start by asking questions that show you are interested in them and their move. You then ask questions about what they are looking for and where. As you answer their questions, you then proceed with the script below.

Provide the information they want regarding the property they are inquiring about and immediately ask a follow up question that indicates that you are knowledgeable and interested in what they want. Like this: “That one is $279,900. Is that the price range you were considering or are you looking higher or lower than that?” Then follow up with similar information and questions about location, number of bedrooms, and square footage.

You then ask, “Tell me all the things you are looking for in a new home and I’ll make some notes.” If you have gotten this far and they have answered all your questions, follow this process to make the appointment (if you want it).

As they offer their desires, acknowledge them with comments like: “great,” “sounds perfect,” “I like that too,” “mmm hmmm” to indicate your sincere attention and interest.

Next, ask this: “Do you have a copy of all the latest documents and contracts used during the purchase process? I find that if you are familiar with the paperwork ahead of time it adds to your confidence and reduces stress when it is crunch time and you want to make a decision on a home that you like. Has anyone gone over a copy of that paperwork with you?”

And ask this: “Hmm, has anyone sat down with you and gone over the whole process of buying, like when you will need legal counsel, what inspectors and inspections you may want… really everything from now until you are happily moved in so you can be more comfortable and confident through the whole process?”

And finish with: “Let’s do this. Let’s get together. I don’t bite. I promise. I’ll go over all of that with you. I’ll give you a copy of all the paperwork and I’ll walk through the whole process with you. If we hit it off, I’ll help you buy your next home. If not, we’ll go our separate ways and I promise you will be a lot more informed, confident and ready to buy. Although, I think we are going to like each other. What afternoon this week would be best for you?”

Some variation of this is the only way to capture Serious Motivated Buyers. With Internet leads you do exactly the same thing in an e-mail exchange. It does require that you have what I call a Buyer Presentation which is the second strategy for winning in a soft market.

Strategy #2: Only Work with Educated Buyers

Working with uneducated Buyers wastes your time. Recognize that even doctors, lawyers, accountants, etc, are uneducated Buyers. Every Buyer that has not recently seen the latest purchase documents and recently walked through the process of buying from beginning to closing with an active Agent is uneducated.

When you make an appointment to show a house before you have educated the buyer, you are doing them a huge disservice. It is your job, the Agent’s job, to educate Buyers before the first showing or after you have shown them the listing they have called on.

Conducting a thorough Buyer Presentation at the beginning of their buying experience is a key ingredient to capturing serious motivated Buyers. Why? There are so many reasons. First, you differentiate yourself from all the other Agents who just show houses. Second, you prepare the Buyer for how the process is going to go. That is, you “frame the buying experience.” Then as you follow the process that you described, they have more confidence in their own decisions and in you. This builds loyalty and commitment toward you.

The most important reason for conducting a thorough Buyer Presentation is that it adds enormous strength to your ability to convert inquiries into appointments; thus converting more appointments into sales as described in Strategy #1 above. Agents with thorough Buyer Presentations average less than ten, often less than five homes shown per sale, even in a soft market. Agents with thorough Buyer Presentations don’t ever waste time with unmotivated, unqualified, or disloyal buyers, not even one showing. Conduct thorough Buyer Presentations and you will get more referrals.

Build a thorough Buyer Presentation and you will capture only serious motivated buyers who will remain loyal to you, buy more quickly from you, with greater ease, and refer you more business, sooner and more often.

Two of Many

These are the first two of many soft market strategies I will share with you. Others have to do with the goals you set and what you focus on each day; marketing with immediate results; strengthening your pricing skills and strategies; strengthening your listing presentation and more.

Please remember this. Real Estate markets are cyclical. They always get better and they always get worse. Good markets nearly always last longer than bad ones. Most importantly, those Agents that gain strength and learn to be successful in bad markets become the most successful, wealthy ones as the good market emerges.

Oh, good coaching helps too.

Rich Levin is a coach and speaker whose focus is teaching Agents to understand and control their business. And through that understanding achieve exceptional happiness and wealth in their life. Rich is President of Rich Levin’s Success Corps Inc. Contact Rich at 585-244-2700 or rich@richlevin.com.

Take Action to Survive and Succeed in this Soft Market, Register for a free Soft Market Business Strategy Session with Rich. Go to www.SoftMarketSolution.com�

By Rich Levin

These are the next two of many Soft Market Strategies. Watch for upcoming articles that give you the knowledge, approach, and ideas to win in this market. Go to RichLevin.com at the top of the home page for other Soft Market Strategies articles.

A major newspaper in New York had this as a front page above the fold headline, “Home Sales Fall Again.” The second paragraph reads, “There were 1,076 closings in the region last month, almost 12% fewer than the same month a year ago.” This is very good news for Agents. Each closing is two sides of a transaction, buyer and seller. So, there were two times 1,076 which are 2,152 commissions collected just that one month. The point is that over 88% of the business is still out

The article goes on to say that the listed inventory is down by 9.7% from a year earlier.” That is more good news for homeowners and Agents. That means there are fewer homes for sale which should stabilize if not increase prices.

Strategy #3: Investment Property is a Hidden Diamond

There are two obvious reasons that investing in Real Estate right now is a brilliant idea. These reasons apply to both the purchase of homes and investment property.

Everyone knows the age-old investment philosophy, “buy low and sell high.” Real Estate investments are taking a beating in the media right now. No one is talking about investing in Real Estate. That means that the demand is down and prices are low. It is an ideal “buy low” time for Real Estate investors.

“But Rich, why would anyone be selling now?” Good question with an easy answer, people need more space or they need to downsize, people move for jobs, people retire, people want to cash out, people want cash in, people make bad decisions then need to sell something to pay off debt, just to name a few. The fact is that there is inventory on the market at good prices and even more inventory not on the market but available if you go looking for it.

So, the first obvious reason that investing now is a brilliant idea is that the prices are low.

At the same time there is growing talk of inflation. It is not just talk. Without going into all the economic factors and indicators, they all line up to reveal impending inflation. What does inflation mean? It means that the price of nearly everything is going up. It means you buy less for your money. Your paycheck buys less. The price of oil and gas is driving the price of everything higher. Your dollar used to buy a loaf of bread. Now it takes a dollar and a half. Inflation spreads to all hard goods. Real Estate is one of those commodities that it will take more dollars to purchase.

Between 1981 and 1984 there was a period of rampant inflation. House prices in most of the country rose by fifty to a hundred percent. This was during a recession. Interest rates were at those record highs you always hear about, 15% to 20%. And house prices rose dramatically.

A loosening of lending restrictions that created a flurry of home buying followed that period which drove prices even higher. Is this beginning to sound somewhat familiar? Instead of the high interest rates driving up inflation and creating the pent up demand it is the cost of fuel, tightening of lending criteria, and concern over the liquidity of the secondary market wholesale buyers of mortgages that is creating pent up demand. That, fueled by inflation is going to create a significant increase in home values.

Bottom line, as a strategy to winning in this soft market, begin to prospect for investment property. Begin to learn about buying and selling investment property. Begin to communicate and network with investors. Take this article and discuss it with them. The savvy ones are going to understand that this is very likely a perfect time to be buying property. And if they are selling, they will realize that your sharp thinking and insight is just what they are looking for to get them the most for their property.

Strategy #4: Smart Marketing

What is smart marketing? And why is that guaranteed winning soft market strategy?

Smart marketing accomplishes one goal. It makes you top of mind as the Real Estate Agent of choice to the market (group of people) most likely to do business with you. Smart marketing sends a clear message that you are the best choice of Real Estate Agent to successfully buy or sell property.

It is a guaranteed winning soft market strategy because everyone is thinking about their Real Estate and looking for someone to make sense out of all the confusing and contradictory news. They are looking for some credible source to understand how it affects them as they think about their next move. The soft market is the ideal time for an Agent to step up as that credible source.

Question: Who is likely to find you most credible?

Answer: The people that already know you are in the business?

Question: How do you prove to them that you are credible?

Answer: Send them information that shows you know what is happening with some insight as to how it affects them.

Question: What do I send? How often?

Answer: Send postcards that are nicely branded with your picture, a consistent color scheme, and layout. Put houses recently listed or sold on it to show that you are active and finding success. Give some Real Estate facts about sold prices, listing inventory, foreclosures, and days on the market, etc. Follow that with a brief, two or three sentence explanation of what it indicates for their specific community. End with an invitation to call you or e-mail to discuss how that may impact them, their property value, or their plans to move.

Two of Many

These are the second two of many soft market strategies I will share with you. Others have to do with the goals you set and what you focus on each day; marketing with immediate results; strengthening your pricing skills and strategies; strengthening your listing presentation and more.

Please remember this. Real Estate markets are cyclical. They always get better and they always get worse. Good markets nearly always last longer than bad ones. Most importantly, those Agents that gain strength and learn to be successful in softer markets become the most successful, wealthy ones as the good market emerges.

Oh, good coaching helps too.

Rich Levin is a coach and speaker whose focus is teaching Agents to achieve their highest level of production with a higher quality of life in their next twelve months. Take Action to Survive and Succeed in this Soft Market, Register for a free Soft Market Business Strategy Session with Rich at RichLevin.com. Rich is President of Rich Levin’s Success Corps Inc. Contact Rich at 585-244-2700 or rich@richlevin.com.