Our agents are facing dropping prices, buyers without the hope of future appreciation, and FICO scores that aren’t up to par. Sellers are watching the equity that they have already spent disappear. Banks are pushing the short sale envelope until it rips. Shadow inventory with Alt A option arm re-adjustments are now coming to join the party. The government is spending more than the printing press can handle, debasing a currency that the lenders expect to get back 30 years from now. Are they going to continue to lend at 6%? You have not seen anything yet! So, get ready to change the way you do business…or move over.

You get what you deserve when you tell agents it is going to be “ok” tomorrow, because they never change. They think they are going to party like 2006 again. Keep telling them it’s getting better and watch them do what most do best — wait for a client to bump into them.

If they want to survive, even prosper, you need to do what I did when the market was horrible — increase your listing inventory by multiples populated by motivated sellers (with equity would be nice, too!). Only take short sales that have a chance of closing. Stop chasing the REOs. If you don’t have an account already, there is easier business to find!

Work only with buyers who allow counseling, written pre-approval, and sign a loyalty agreement. Give them something different so they can be loyal to you. The days of Pop-TartTM agent are over. Hoping they will buy is different in obtaining a commitment from a buyer who will buy. You will also be generating leads when you are showing your buyers the inventory of FSBOs, expireds, your new listings, properties from your sphere of influence database, and the calls generated from your demographic postcard campaign.

Stop blowing smoke. It may not be getting any better. Let go of clients who cannot perform. Remember — real estate agents work for FREE until closing. The only thing you can control is the quality of your client. Build that listing inventory, stop doing things that make little or new money, and stop working with buyers who have not jumped through a few hoops.

The business of real estate is exciting. Personally, I was always able to increase my income in tough markets by following these steps:

1. Agents get out faster than the market goes down, leaving the great clients to me!

2. It is easier to get listings, just take those that will close.

3. Learn how to add “glue” to contracts.

4. Nicely turn down buyers who will not become clients.

This will increase an agent’s income, allowing the inherent leverage of this business to work. Here’s how that leverage works:

1. A listing puts the whole MLS on your payroll. It gives you an opportunity for a double-ended transaction. It is the least expensive method to generate a buyer. Work every day to get a new one.

2. A buyer who is shown off-market listings will help you produce more listing leads. Work with fewer and show them properties in addition to the MLS.

3. Buyers and sellers pay you commission to learn and absorb information about all the good deals out there. What if you had a few extra bucks to buy prime, bargain property at 40-year low interest rates?

I guess that I am just tired of hearing all the complaints. It is time to start training agents to do the right stuff…NOW!

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. He has authored twelve systems and books on checklists, pro-active lead generation, affiliate lead generation, plus others mentioned in this article. You can hire Walter or buy his products by visiting his website for more details at www.waltersanford.com, by calling 815-929-9258, or emailing Walter at walter@waltersanford.com.

Below is a link that is a sample of what Sanford Systems can provide in marketing your next seminar with us.  We have a long list of creative marketing tools and this is one of them.  Call us at 800.792.5837 and we’ll start planning your next event together.

walter-sanford-for-exit-june-2009

You need to do the right things in the right order to make a profitable business that has limited resourses. Here is a Q&A detailing this concept:

Question:

Hello Mr. Sanford,

Love your tips on Realty Times! I have been a Realtor for 4 years so still fairly new…but struggling in this economy. I need all the training I can get!!

Do you have a book????

Thank you!
Joyce Sipple, REALTOR

Answer:

Hi, Joyce. If you like my stuff, you will do fine. “Doing fine” means you understand that owning the inventory is the key and your focus needs to be on seller lead generation. You understand that making listing presentations will increase you chances for income in less time. You understand that you will have to concentrate on buyer control and produce listings from that control. You know that you will have to gather your assets in family and affiliates to form an unpaid team. When you find that money is flowing, begin saving just a little to begin investing in real estate.

If you’re interested in my systems, most agents start with Letters 401: The Advanced Course, Expert Lead Generation Tool Kit, Beating the Competition Every Time, and Buyer Net Profit. I will forward this to Cyndi. If you call her at 800 792 5837, she will give you the seminar price on the package.

Follow the systems and I will cut 10 years out of your learning curve.

Thanks for your kind words!

Many times you are up against competition with a better track record like the agent asked in the question below.  If you know more about the seller before going on the appointment, you can direct your presentation toward achieving the client’s goal.  You should have been privy to their goal, prior to the appointment.  The next step will be to keep the discussion off of your track record and put it where it belongs…on achieving the seller’s goals, at the highest net with new marketing ideas. 

You should be able to beat the agents with the “canned” listing presentations.  You can easily be better than those agents who do not spend the time to find out about a sellers’ goals and those who have not come up with new ideas for year.  Below is the question from a stymied agent and my suggestions on how to avoid the same situation in the future.
Question:

Walter, we recently relocated to Southern California from Calgary and purchased all your books and CDs. They are great. The following objection is something we keep running into.  Should we discuss our track record in Calgary?  We are at a loss and need some guidance.

How would you handle the following objection: “We really liked your presentation.  Your pricing was similar to the other REALTORS®, and your commissions were all the same.  The only factor was track record.  We went with the REALTOR® who had a stronger track record for the area.”

Sincerely, Desiree
Answer:

Here is my suggested response: “Track record on anything is an important indicator of future performance.  We are at a loss because that record for us is in Canada, where we were considered to be the best in the following areas: (insert items that you can back up with proof).

“However, what is even more important are the ways we intend to achieve your goal of (insert their reason for selling) and achieve that goal with the highest net to you.  I would like to show you five ways that we find a buyer, which will be new to this area, and also five ways we can increase your net proceeds.

Getting you to sell your home and (insert their goal) is what it is all about!  I believe we have brought some new ideas to the table.  I would like the privilege of selling your home.”

Notes for you: remember, you need to be the last agent in for the presentation!  Know their criteria for hiring an agent before you go on an appointment and also know what their largest concerns are before going on the appointment.