At this time of year, business plans become a major thought for real estate agents and their brokers. You don’t have to have a degree in anything to realize that without a plan, a person’s business is merely a matter of luck. Fortunately, it doesn’t have to be that way. After all, you don’t need an attorney or a CPA to write a business plan; all you need is a little time, a pen, and one piece of paper…which could very well be a dinner napkin.
Am I exaggerating to make a point? Yes, but it’s all about getting the plan down on paper (or the computer screen). Of course, many business plans don’t work because people don’t understand them even after they write them—which, in turn, translates to no cash flow. I’m here to help you understand how to build and execute a successful business plan, so check out these ideas to get you going and make you RICH!
Get That Business Plan Working
Step One: Analyze Your Current Sources of Business. One of the biggest mistakes agents make is spending time and money working a source of business that doesn’t present an adequate number of financial opportunities to warrant the work. Farming a neighborhood with insufficient turnover or communicating with a Sphere of Influence which fails to provide sufficient leads will just lead to frustration, wasted time, and lost opportunities elsewhere. It’s important to determine the sources of your current business and make adjustments by either changing the way you work with them, adding additional contacts, or dropping dead sources and substituting those with more potential.
Step Two: Research and Find Hot Sources. A good place to start your research is the findings published and compiled by Read the rest of this entry »
With the exception of price, there are very few things that can turn off a potential buyer as quickly as the five stumbling blocks cited in this blog. Most of the REALTOR® stories I hear during story-telling sessions involve something that happened during a showing…and make no mistake about the fact that mistakes during the showing process can wreck the opportunity to sell the property. Here are five avoidable stumbling blocks that should be addressed with the seller before any showings—or even before you sign the listing agreement. Avoid these, and you’ll be in much better shape for smooth sailing at your showings.
Prevent these Showing Deal-Wreckers
You, aka the Listing Agent. Yes, you! There’s more to selling a home than putting it in the MLS and waiting for an offer; with just a little extra effort, the listing agent can be the difference maker. Things such as promptly returning phone calls, scheduling appointments, answering questions, pointing out the special features or values of the property, and being pleasant to work with all encourage the buyer’s agent to show the property.
Dirty/Nasty/Worn Carpet. Dirty, nasty and/or worn carpet is a real turnoff for most people Read the rest of this entry »
I’m convinced that all real estate agents don’t know how to determine the right price for a property (and it embarrasses me to say that). However, there are agents I know and have known that would take a listing at any price just to have a listing (and it hurts me to say that). It’s my hope that you’ll find a way to put these ideas on your listing presentation checklist so you can refer to them when the time is right.
1. The price the owners paid for the house and the cost of improvements or repairs they’ve made have nothing to do with how much a buyer is willing to pay for the property. The price of the property is set by how much comparable properties are selling for—period. 90% of buyers shop the Internet for homes to buy, and they know when a property is overpriced and when it’s priced right. Overpriced properties are a major turnoff to most buyers; they don’t even consider them if there’s anything else available.
2. The list price has a limited life expectancy. The first 30 days a property is on the market is the prime time to get the highest and best price. “New Listing” labels are what attract most of the buyers who look online every day—sometimes many times every day—to find the home that fits their needs. After the first 30 days, the property is no longer considered a New Listing, and the interest in that property slows to a trickle. Rejuvenating interest in an overpriced property is extremely difficult even if the price is lowered to a more realistic number. The only exception to this rule is when there are considerably more buyers than there are sellers. After 30 days the original prices on most unsold properties are reduced significantly with the hope of rejuvenating more interest, but remember, nothing replaces the interest generated by a New Listing.
3. The first offer just may be the best offer. Many sellers make the mistake of turning down the first offer in hopes of getting a better one; this is a bad idea in many situations. The first offer may not only be the best offer, it may be the only one they get! A seller should be encouraged by the agent at the time of the listing presentation to treat the first offer as if it is the only offer. There’s a saying that fits well here: “A bird in the hand is worth two in the bush.” An offer you have in front of you is much more real than an offer that may never materialize.
4. Discuss the seller’s motivations at the outset. It may be that the seller is motivated to get the top price but Read the rest of this entry »