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A
buyer's market is the most difficult type of market in which to make money. Are
you prepared if this downturn strikes your business?
For
the last six months, I've been telling agents that a downturn is coming in many
of the major markets. Recently, Federal Reserve Board Chairman Alan Greenspan
predicted a downturn in the real estate market that will result in a decline in
prices and fewer sales. For example, what happens to your business and your
profitability when gas is $4 or more per gallon? If you are already struggling
to get by, here are seven strategies to help you weather the upcoming storm at
the gas pumps as well as a potential market downturn.
1.
Have buyers pre-approved, not just pre-qualified
Save
gas, time and effort by asking all buyers to be pre-approved, not just
pre-qualified. Pre-approval means that the lender has looked at the buyer's
credit and is willing to make a loan provided the property appraises and the
title is clear. Do not work with buyers who cannot qualify to buy property. If
buyers refuse to take the necessary steps to be qualified, stop spending your
valuable time and your gas money on them. If you have shown more than 20 homes
to a buyer who has not yet purchased, ask yourself whether you have done an
adequate job of identifying what they really would like to purchase. If so, you
must decide whether you will continue to waste time or spend your time prospecting
for a more motivated client to take their place.
2.
Shift to "virtual caravans"
Ask
your manager or broker to put together a virtual caravan for your weekly office
meeting. The listing agent takes at least 10 digital pictures of the property.
Each agent has three minutes at your office meeting to describe the listing and
to show the digital pictures or virtual tour (if available.) These pictures and
virtual tours are then posted on your company Web site as 24-7 open houses.
Everyone saves on gasoline.
3.
Motivate incoming ad and sign callers to give you their e-mail address
When
people call your 800 call-capture system, motivate them to leave their e-mail
address by offering to send them a virtual tour of the property. Be sure to let
the callers know that they will only receive the virtual tour and no spam from
you. When you send the virtual tour, include a link back to your Web site that
will allow them to see additional properties.
4.
Change your approach to floor or "up" duty
Incoming
calls are easier to convert into leads when you can send individuals a link
that allows them to see all the details of the property from the convenience of
their computer. Instead of having the floor or "up" broker describe
the property, offer to send the caller a copy of the virtual tour either at
their e-mail address or via a CD to their home address. Both ways you obtain
valid contact information.
5.
Go paperless
My
office is drowning in paper. Tons of notes from meetings are in notebooks and
even though my notes are dated with the topics at the top of each page, I still
need to type them into my PC. Of course, I never do it. I spent today setting
up my new tablet PC. It has been a battle since my technology IQ is about as
low as it can be. When I began jotting notes on the tablet, however, I could
see all of those files, all of the sticky notes, all of this paper magically
disappearing. I love the handwriting recognition feature that translated my
handwriting perfectly into a Word file. How much time could you save (and how
much gasoline), if you never had to copy notes on to multiple forms again or
never had to drive back to the office to obtain a purchase contract or listing
agreement? How many more clients could you serve if you could stop driving and
handle everything online with a transaction-tracking platform? One agent said
she cut back her work by 75 percent. More importantly, my current laptop when
packed for travel weighs about 15 pounds. The tablet, packed with the same
equipment, weighs about the same as a medium-sized shoulder bag (a little over
five pounds). Say goodbye to arm, shoulder and neck aches from lugging around
that extra weight! (One caveat: For those of us over 40, adjusting to new
technology can be very challenging. To make the transition as painless as
possible, set aside time for training.)
6.
Stay home
Unless
you have an unusually nice office, working from your home can increase your
efficiency dramatically and provide you with a much better work environment. If
it takes you 15 minutes to commute to the office, that's 2.5 hours per week, or
125 hours per year. That's enough for a three-week vacation! The virtual office
concept does work. If you have space, set up a separate bedroom or your den as
your office, provided you can shut yourself off from the rest of the activities
in your home. Go to the office for meetings and to meet clients. Of course, you
can cut down on showings by sending your buyers virtual tours first so they can
identify the properties they most want to see.
7.
Use video to be face-to-face
The
cost of a Web cam is about $100 and you can obtain a service that will allow
you to send video e-mails for as little as $9.95 per month. Do you really need
to drive to see that seller when you could send a face-to-face message on
video? Better yet, what a great way to be in direct communication at the end of
a long day when it's too late to call a client you really wanted to contact.
Remember,
small changes can result in big savings in both your time and money. Prepare
today just in case you have to cope tomorrow.
Bernice
Ross, co-owner of Realestatecoach.com, has written a new book, "Waging War
on Real Estate's Discounters," available online. She can be
reached at bernice@realestatecoach.com.
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