Archive for Real Estate Marketing Tips
Even in Bad Times: “Stick to Your Knitting”
· CommentsThis guest post was written by Larry Easto who is a
best-selling business writer, and publisher of Real Estate Marketing Link
For the past few weeks, the W network, a Canadian cable network, has been running a series featuring real estate agents in their day-to-day activities. Shortly before the worst of the recession really hit Canada, the intention was to show the dog-eat-dog world of high powered real estate agents. Instead of seeing agents deal with the stress of multiple offers, viewers got to see the stress of agents frantically looking for the next client and whatever new business came their way.
Personally I found the series as it turned out more engaging than what was intended. What surprised me most was the willingness of so many agents to abandon their niche markets to pursue new business opportunities.
For example, one agent who normally assisted clients with the purchase and sale of high-end homes eagerly undertook a land-assembly project for a would-be developer. She was so far out of her element that she got lost on her way to look at some property.
Another agent who also normally served the high end marketed aggressively promoted herself to a local celebrity who was looking for a short-term condo rental. Even though he told this agent that he really liked a unit that another agent had shown him, she pushed him into seeing another until that was available. The showing was complete fiasco…she too got lost and tried to show the wrong unit. Needless to say, her client was very upset and would be unlikely to speak to her again, let alone hire or recommend her.
While I recognize the urgency to generate new business, I also appreciate the importance of sticking to what you know and do best. When chasing new business outside of your familiar niche market, instead of the ideal of a win-win scenario, you risk creating a lose-lose situation for you and your clients. By wallowing around in an unfamiliar market, you add more stress and frustration to your already over-stressed life. You also compromise your hard-earned credibility when stumbling around in an unfamiliar market.
Instead of being selflessly focused on clients’ needs wants and expectations, you are more likely to be driven by your self-interest of generating more new business, whatever and wherever it is. Say good bye to professional objectivity.
Instead of chasing new business in unfamiliar markets, these agents—and you—would be better advised to reconnect with past clients. Certainly they would be interested to hear your thoughts on the current status of the real estate market. And who knows…maybe they know some one in your market who would benefit from your services.
Despite the economic situation and a tough real estate market, client referrals remain the best source of new business. Sometimes you just have to work a little harder to generate the referrals—but it’s well worth the effort.
For a refresher on niche marketing see: http://real-estate-marketing-link.info/target_marketing.html
What Was Your Income Last Year?
· Comments
I hope you made some money last year. But, did you make any income?
That might sound like a silly question. But, following up on my conversation with James Smith, I find that question very relevant.
Like many real estate agents, James started in real estate treating his business like a hobby. That’s not to say that he wasn’t very professional and effective in providing real estate consulting services. But, from a business management perspective, he started out being caught up in the traditional real estate agent model. Even though he had years of business experience, he just never thought about the fact that since he was building a business, he should treat it like one from a management standpoint.
One of the best things he did for himself was to create a business entity for his consulting practice. Now, he knows for sure that he has income because his company pays him a salary. Why does that matter?
Think about going to get a loan, for example. What does a loan officer look at first thing? Your income. If you’re acting as a 1099 employee of your broker, you don’t really have any income. You might be making money, but from a loan officer’s perspective, that’s just not the same as income.
When you create a corporation of some type (Sub-S or LLC for example), you’re creating a business entity that pays you a salary, and pays for all of your other business expenses. Now you’re a company and you can do all the things a real business does. And, you can claim income just like back when you were working as a W-2 employee for somebody else’s company.
I’m running a small business, and from my perspective, it never occurred to me to do that without forming a corporation. That’s why the writing at the top of the blog says “Build Real Estate Results with Getting It Write, Inc“! And, that’s why I say that the most important thing I bring to the table is the ability to apply solid business and marketing principles to the real estate industry. I recognized early on that the industry needed all the fresh perspective it could get to stay viable.
If you haven’t investigated how forming a real company could benefit you in the long run, do it now!
Where Will You Be in 10 Years?
· CommentsI had an interesting discussion with James Smith, a Keller Williams agent marketing Charlotte NC Real Estate a while ago, and we started talking about how his business is going and where he sees the industry going in the future. James made this point:
When the public learns to differentiate between good and bad agents, the real estate industry will be revolutionized.
I think he’s right. So, where do you think that will put you 10 years from now?
As James gained experience in the real estate industry, he discovered that he needed to stop modeling himself after traditional real estate agents and apply his business background to his real estate business.
Right now, James is selling a lot of homes. He’s specializing in working with investors, helping them to optimize their real estate portfolios to maximize return. He’s not doing traditional real estate sales. He’s using a consulting model, charging investors a minimum commission for managing the purchase and sale of very low-end investment property.
As James says “The majority of real estate agents sell houses, but they don’t know much about the real estate industry.” And, without a Unique Selling Proposition (USP) that sets them apart from the crowd and identifies a niche where they can contribute value-added knowledge and skills, the majority of agents, traditional agents, are turning into a dying breed.
So, what do you think? Do you think you’re in danger of becoming obsolete? If so, what are you going to do about it?
I came across an interesting post on ActiveRain by Bob Sommers, who describes himself as The Likeability Guy.
The post identifies three reasons why you shouldn’t trash your competition, and I found it an interesting perspective.
We all know we shouldn’t trash the competition, I’m sure. But, the situation Bob describes is one of those that could be considered borderline, yet it still elicited a negative reaction.
I know that we’d all like to save our prospects and clients from making mistakes in selecting professionals to provide assistance. But, trashing those professional who might be hurtful really does backfire.
Visit Bob’s post for a reinforcement on why not to trash the competition, and an approach for avoiding it.
Based on an announcement on the HUD website last Friday, it seems that the question of how the $8000 tax credit can be used is much more clear!
Thankfully, there are safeguards in place to protect borrowers from getting into the type of situations that helped start the housing implosion in the first place.
In summary, the announcement indicates that state Housing Finance Agencies and certain non-profits will be allowed to “monetize” the tax credit. So, that means that in qualifying transactions, buyers will be able to use the tax credit up-front as part of a downpayment.
The tax credit can’t be used to fund the minimum 3.5 percent downpayment required by the FHA, but it can be used as additional downpayment funds, or to offset some closing costs. I’m sure the “safeguards” mentioned in the annoucement will result in a set of requirements that must be met before the tax credit can be monetized. But, at least we’ve got some additional direction, meaning that it would be worthwhile to investigate how the tax credit could be used by your buyers who meet the “first-time homebuyer” definition.
The National Association of Home Builders estimates that the use of the tax credit will increase home sales nationwide by 160,000. That number is comprised of first-time homebuyers using the credit, and home purchases made by people who were able to move because their “old” homes were purchased using the credit.
It sounds like this could be a good thing for first-time homebuyers and sellers alike. Spread the word!
