In this new era, the average consumer is on an empowered adventure to gather free information from the net in unorganized fashion. If they don’t find what they are looking for on one site, they go to another. There is no loyalty! This is quite different than the prospecting we did when we farmed a subdivision. This is due to the fact that viewers on the net may remain anonymous, yet they can gather facts and information, without ever talking to an agent or correctly identifying themselves.

All potential clients have needs, but they may not be imminent or pressing. For the moment let's assume most Internet viewers are just curious or just in an information-gathering stage. They just are not making a decision this week. The reasons they are not a hot prospect may be a possible relocation to your area, an upcoming job interview in your town, renters in a lease, or a person anticipating a job transfer. So is it is not wise to spend a lot of time on these prospects right now.  Instead allow them to come forward when they are ready, willing, and able. 

  

With all of the negative speculation on today’s housing market, it’s extremely difficult for condo buyers and sellers to stay positive and look at the “Big Picture”.  The majority of society would prefer to sulk in the negative aspects in life regardless of what it pertains to…..  Why do you think the media is 85% geared towards death, theft, scandals, and Paris Hilton???   Why, because a newspaper with a good Samaritan story on the front cover won’t sell.  It’s that simple.  So let’s take a moment to look at the housing market “Big Picture” and really break it down.   

  

In a housing market of rising foreclosure rates, brokers are beginning to utilize the “foreclosure hype” as a tactic to generate and capture new buyers.  This morning I was reading the San Diego Union Tribune (Homes section), when I noticed a banner reading “San Diego Foreclosures” and “How to get started”.  In my paperless environment, I clicked on the “How to get started” option and I was directed to a screen which advised the following: 

“Distress Sales resulting from bank foreclosures often represent a great way to get a fantastic deal on a home. It's not easy for the average homeowner to find these deals, because you have to keep scouring the paper to see when one comes up.

As the market transitions and prices hold strong throughout the majority of the country, the demand for attached housing continues to rise.  Less then 10 years ago, the majority of condo buyers in San Diego consisted of young executives, single or married, without children.  Since the tables have turned…..  Let me tell you who’s buying the condo next door? 

When the Center City Development Corp. in San Diego pushed the idea of relocating the Padres to East Village, in Downtown San Diego, they knew that if we build it, they will come.  When I say “they” I’m referring to thousands of patrons who flock to the heart of the city night after night to witness the excitement.  With the continuous building of residential units surrounding the ballpark, you can literally sit at your seat at the game and count numerous cranes diligently working everyday to build-up what was recently considered unmentionable and unapproachable.   

Anyone in sales can relate to this…..   We’ve all heard the objection, “I’m interested in what you have to offer, but I think I’d like to wait for awhile before making a decision.”  In the real estate world, “I’d like to wait” can mean a matter of not closing a potential buyer for weeks, months, or even years.  How do we as sales-agents create urgency in our buyers so they don’t have the inclination to drag there feet in making a commitment???

Lets brainstorm and come up with a few ideas of how to address potential objections and create urgency for our buyers to push up the process.  First and foremost, we need to uncover what the real objection is.  Why do you feel they need to wait?  There’s a sales tactic used to do just this, it’s referred to as “going 3-deep”.  So often buyer’s have hidden doubts or concerns when it comes to making a financial decision and without prying the challenge out of them, you won’t know what you’re really up against.  So we take the tactic of asking three questions or “going 3-deep” to begin unraveling the real issue: 

~ What is it that’s holding you back from making a decision on this home or condo? 

Simply ask what the deal is.  Buyers will appreciate the fact that you acknowledge there’s a challenge and most will share it with you. 

~ Really……why is that?

You now know the objection, so we need to establish how it came about.  The majority of the time, the objection is a misunderstanding that can be clarified with a few simple facts and/or figures given to the buyer.   

~ Okay…….so how can we overcome that? 

Should the objection be more complicated then a misunderstanding, ask the buyer what “we” can do to overcome the challenge.  I express “we”, because it will give the buyer a sense of comfort, they will realize you on their side and not the sellers. 

Investigators are trying to determine what sparked a fire that caused $1.5 million worth of damage and destroyed a dozen condominiums under construction in the Midway District of San Diego early Wednesday morning.

The fire, which broke out shortly after midnight required about a fourth of the city's firefighting resources to extinguish it. Firefighters found the buildings engulfed in flames shortly after midnight. They quickly called for help, sounding a second and then a third alarm. The crews had a fire extinguished around 1:15 a.m.

By Wednesday morning, investigators with the Metro Arson Strike Team, as well as FBI investigators, had determined the blaze started on the third floor of a middle unit in the complex and spread to surrounding units, said fire department spokesman Maurice Luque. “They've ruled out any electrical problems or connections, and ruled out any plumbing work” as a cause, Luque said. The first two floors were completed and the third floor was being framed.

You better believe it!  Keeping in mind, Frogman’s posting regarding the possibility of home-builders facing bankruptcy….. With inventory levels rising, and interest rates staying consistent, new home builders are pulling out all of the stops in hopes of “un-loading” their remaining inventory.

Builder's are offering different buyer loan incentives as an appeal to set themselves aside from the competition.  They offer covering costs to “Buy-Down” the rate and lower the buyer’s monthly mortgage.  Builder's are also offering to cover any non-recurring and/or recurring closing costs for a certain length of time.  This includes paying months or even years of HOA fee’s and taxes, upon lender approval. 

Some builder's are beginning to again roll-out the popular “Builder Trade-In” programs.  Developed in the early 90’s, this program assists builders with the sale of their new homes or condos by arranging for them to take the buyers' existing homes in trade. In a marketplace where houses are slow to sell, builders' contingent buyers are sometimes unable to close escrow on new homes. This program creates a device to turn the builders' contingent sales into non-contingent sales.    

Do the creative real estate financing techniques you hear about really work? Yes and no. They likely have all worked somewhere for someone at least once. The important point is to understand the principles involved, so you can find your own creative ways to invest in real estate. Here are ten methods to get you thinking. 1. Use hard money lenders. Ask around or find these online. These lenders specialize in short-term loans at high interest. Typically, you use this type of financing for a "fix and flip." You can get the money fast, and if you make $30,000 on a project, who cares if you paid $10,000 interest in six months? 2. No-doc or low-doc loans. With these loans, no (or low) documentation of your income or credit is required. You can find banks that do these online now. You'll only be able to borrow 70% to 80% of the purchase price or property value. However, if you have 10% in cash, you might be able to borrow the other 10% or 20% from a friend or the seller. 3. Seller financing help. Sometimes a bank will loan you 90%, and allow the seller to take back a second mortgage from you for 5%, leaving you needing only 5% for a downpayment. 4. Land contract or "contract for sale." Called other names as well, this just means the seller lets you make payments, and delivers the title upon payment in full.

As the housing market fluctuates, so does the number of discount brokers who have come and gone over the last few years.  Lending Tree recently released a statement notifying the community of 440 company lay-offs.  With this spokeswomen Rebecca Anderson stated, “This decision was a proactive move to adapt to the current market.” Anderson declines to break down how many employees will lose their jobs in each city. Affected employees will receive severance packages and outplacement services, she says. The layoffs come in the wake of Tom Reddin’s departure as chief executive of the business. Reddin surprised even his corporate superiors last month, announcing he would retire effective May 7 to spend more time with his family. 

In recent months, we have also seen a Southern California Brokerage, I-Pay-One float in and out of bankruptcy, another discount broker who facilitates real estate transactions for no more than 1% commission.  Help-U-Sell assists home buyers in For Sale By Owner type transactions at a reduced commission.  In the heat of the market Help-U-Sell flooded the country with office grand-openings all over and now it seems like the doors are closing quicker then opening. 

As a Buyer’s Specialist, there is nothing more discouraging then receiving that Monday morning voicemail from a client you’ve been working with for the past few months, stating, “Oh my gosh, Bob and I found a home over the weekend from an open house that we drove by, and we placed an offer.  The agent who was there, said that if we wrote the offer through him, he’d be able to get us a great deal.  Isn’t that awesome?  Aren’t you happy for us?”  Am I happy for you??  Not so much….. 

This has happened to me one too many times, shortly after being burned, I began taking the advice of my manager and insisted on only representing buyer’s who would make a commitment in writing to working with me and only me.  Our time as agents is too valuable to be considered a “weekend tour guide” who is tossed aside the second the buyer gets wrapped-up in finding a deal.  I’ve been utilizing the Buyer Broker Agreement for the past 4 years now, and let me tell you, my peace of mind alone is worth every objection I get thrown when pitching the concept.   

For all of you pet lovers, here's one for you.  What would you do without someone at the front door to greet you when you come home after a long day at work?  Or someone to watch your cheesy late night shows with?  I say "someone", because if you've had the pleasure of developing a animal bond, you've probably at one point treated them or talked to them as if they were a "someone".  Up until a few years ago, I never understood why my friends and family held their dogs or cats on such a high pedestol???  Why they continously talked about their pets, or better yet take their pets on play dates???  Well.....after 3 years with Cozmo, my cat, I can relate.  She is the best, loves me no matter what.  No matter what.  And....she doesn't take over my space in the house or my side of the bed......  I have close friends who perfer dogs over cats, personally after experiencing the bond I have with Comzo, I couldn't imagine how attached people can get to "mans best friend".  The day that I have a back yard, is the day I will have "womans best friend".......

As agents, we all know the importance of holding open houses on a weekly basis.  Whether you’re representing the seller, or facilitating an open with the goal of generating buyer business, there are a few extra steps that can be taken to ensure you get the most out of your time.   First and foremost, you must keep an open mind with an “It’s my pleasure” attitude throughout the entire shift.  You never know when your next qualified buyer will walk through the door.

To begin, I would like to address the “set-up” of the open.  While most agents specialize in a particular area, it helps to familiarize you with the neighborhood prior to discussing the inventory with potential buyers.  I suggest pulling all of the active/pending/ and sold listings in the area.  Buyers, even nosey neighbors are notorious for visiting the same area ever weekend in hopes of a new open house.  When you begin conversation with a prospect, and the game, stump the agent rolls into play, it helps to be aware of the competition.  Preview the comparable homes in the area so when you’re asked about similar floor plans around the corner, you can intelligently answer and earn instant bonus points.  Know the current interest rates, know the average sold price, and lastly make sure you are aware of why the seller is selling.  BUILD BUYER CONFIDENCE WITH KNOWLEDGE. 

And so it does in the world of active Real Estate agents. As the market turns and the number of closed sales begins to dwindle, so does the number of active real estate agents. For the past 10 years, agents throughout the country have had continuous success in real estate sales by listing property, holding open houses, occupying "floor time" at the office, and lastly working their referral base. With prices beginning to settle, rates holding still, and inventory levels rising, that "continuous success" is a little more difficult to come by.

Agents are having to step outside of there daily routine and come up with new and improved ways to rise above the rest. Whether its developing an new website, hiring a marketing firm to flood the market with advertising, or joining partnerships with real estate related websites in hopes of generating internet leads, you, as an agent, must adjust accordingly to the prevailing market. According to the National Association of Realtors, state membership in the Realtor group is expected to decrease from 210,000 in 2006 to 185,000 this year. What are you doing to rise to the top?

The misconception of being given a “better deal” when buying a home directly from the builder is shared by many.  Everyone is looking for a deal, why wouldn’t we, your talking about potentially saving thousands of dollars, but let me educate you on a few challenges that most don’t think about when buying new construction.  Buying a new home from a developer can give you the best of both worlds: You have the ability to pick and choose the décor and upgrades to fit your needs. 

Unlike buying a resale home, where chances are you have a few cosmetic items to take care of prior to moving in.  You also have less headache, if you’ve had the opportunity of remodeling or working with contractors, you know what type of stress associates with “doing it yourself”.  By buying new construction, you can definitely sit back and relax while others worry for you.  With that said, there are still a couple of things that you need to consider.  After representing quite a few different buyers in new construction transactions, here are a few things to think about: