It’s that time in the market. The pundants (economists) have finally realized that yes, the downturn is “pronounced” and long lasting. They are busy covering their rears from their ridiculous models showing a soft landing for Southern Cal, Vegas and Florida. Agents are wondering where the bottom is. As a side note, only listen to top producing (over 100 transactions per year) agents if you want to know where the market is. Interview 10, throw out the two most optimistic and pessimistic predictions and average the remaining six. You should be right on. Let me save you the trouble. Many of the markets that have experienced price reductions have done so to the point where buyers are interested again. Lenders kinda know what they can do. The bottom is near. The problem at this point in the market is the real estate agents have just learned how to….
1. Time block price reduction meetings with their sellers and be strong on their request.
2. Let go of listings that will not sell
3. Tell the truth at listing presentations as to value and if there is not enough motivation to sell to compete with REO’s, then walk. However, learn to overcome objections if the cement head seller does have motivation.
4. Write tighter contracts that stick in the face of scared buyers.
5. Ask for more from their team members
6. Cut stupid expenses
7. Finally pull out all that genius and sage advice contained in their Walter Sanford System Manuals.
8. Generate more listing leads
So, the problem is, we might see some upticks soon. That languishing inventory might start going down. Maybe we should be looking to keep those cement head sellers with motivation a little longer and maybe we should lessen the pressure at the listing presentations, just a little. However, keep producing those listing leads, their turnover is going to increase!
Furthermore, since I am calling a bottom in many markets, now is the time to pick up a little present for yourself. Get that fixed loan, put 10% down and using a 35% expense factor off the income make sure there is enough left over to fully amortize that loan. You don’t need the cash flow, because you are a great real estate agent, but you need the tax benefits and the equity paydown will make you rich, so the next time we have one of these cycles, you can say……”Walter made me rich, I don’t have to do this again!”