In reading a recent article on businesses in this downtown economy, Harvard Business School professor Michael E. Porter founder of the modern field of business strategy answered some questions on how and where businesses should focus during this time.

Question: What strategies should small businesses use to survive this recession?

He expressed that during a time period of economic downtown there is an overwhelming instinct to lay off and cut back. He recommends that if you are going to lay off and cut back, you need to do it with your business strategy in mind. The biggest mistake is to cut across the board. He goes on to state that “good leaders need a positive agenda, not just an agenda of dealing with crisis.”

This reminds me of the first couple of points in the book Good to Great. You need to get the right people on the bus, then with the right people, you need to decide where you are going (aka business strategy). If we lay off the wrong people, then we have the wrong people on the bus directing our business, which can be the demise of a company. Gary Keller of Keller Williams Realty said during the 2009 Keller Williams Family Reunion that this is the “Era of Extra Effort” those who are average or mediocre will be laid off. You are seeing this across the nation. Companies are laying off individuals – cleaning house. Now, I need to throw a clause in here that some companies are letting good individuals go because they are not going about it according to their strategy.

Question: What is the best way for small businesses to capitalize on any recovery?

Porter comments companies that ramp up their capacity will aline themselves to gain market position. Larger organizations will not be able to meet the new demand due to downsizing or outsourcing.

This is inline with what Keller said – Get Real! Get Right! Wake-Up! “The Business with the Lowest Costs Wins!” – look at the investments in your business and put a dollar amount to everything. Is advertisement XYZ paying for itself? What’s the ROI? Is it worth the investment? Remember the profit you seek will always be made in the way you manage your money. When the market shifts, you must create a budget that matches your revenue. You need to lower your costs now and revisit this every month.

As Charlie Munger, Warren Buffett Speaks, “Name a business that has been ruined by downsizing. I can’t name one. Name a company that has been ruined by bloat. I can name dozens.”

Question: Are there opportunities in trying times?

Porter stated “during an economic downtown there is a greater level of flexibility.”

Get involved in the market of the moment. What is happening now? Normal homes priced at their normal value are not selling. What is selling? What price range in your area is selling? What REOs are there in your area? Short Sales? Foreclosures? Lease Renegotiations? Companies down sizing? Companies expanding. Know your market and the market of the moment and price your listings ahead of the market.

As W. Edwards Deming said “It is not necessary to change. Survival is not mandatory.”

Looking for commercial real estate in peoria il? See what we can do for you!

 

 

When we are no longer able to change a situation, we are challenged to change ourselves. – Victor Frankl

As much as we all like to get our way, there are many circumstances that out of our control. When things are in our favor we don’t seem to complain, however when the tables turn and we start getting uncomfortable, whether on a corporate level or individual it is time to get reflective. 

In the words of Gary Keller ” …it is time to roll up your sleeves and for everyone around you to do the same. It’s time to work both smarter and harder. It’s time to evaluate which resources and services must stay or go. It’s time to consider effectiveness and efficiency as tools of necessity. It’s time to see what bang you can get for the bucks you’ve got.”

Companies all over are ‘rolling up their sleeves’ right now. If they don’t take drastic action, their ’life’ could be short lived. What about us? Could our ‘life’, career, financial situation, be short lived also if we don’t take immediate action?

Instead of focusing on what we can not control, lets look for areas that we can change ourselves. Evaluate and upgrade. Can we be more efficient with our money? Be more cost effective. Eat out less, make lunch, make coffee at home? Search for those hidden fees.

Do we have to play by the corporate rules? Can we control our  attitude about our work? Is our company making a physical move? How is our attitude and openness about doing what is best for the company.

Are there big changes happening in our personal life? Can we look at these as an opportunity to challenge ourselves and grow. There is a phrase… “to grow, let go.”  Are there people in our life that harm more than help us? 

Now is the time to get real. Get serious and look intently at our situations. Work with what we ourselves can control and be adaptable. 

In times like these, sellers are nervous.  Between what they hear, see, and read in the media plus the economy in general it can be pretty scary.  They need help – qualified help.

The job of a Real Estate Professional in to help the seller understand what the best steps are to be successful their home in in any market.  (Or to assist the Buyer in finding the right property from them based on location, amenities, financial reality, and future resale potential.)

That’s where Real Estate Professional shine. True professionals understand that success is a process.  Follow the process and you get good results.  Cut corners and you may be disappointed.

To stay at the top of our game, we, as Real Estate Professionals, need to follow our own processes and procedures to ensure that our clients get the best service possible.  When we deliver great service, our customers appreciate it and tell their friends.  That leads to referrals, more opportunities, and more opportunities for our businesses.

We All Need Support so We can Support Our Buyers and Sellers.

Anybody who has been in this business for a while will tell you, Shift Happens.  Markets cycle up in good times and down in others.  The trick is to do the right things at the right time to adjust and to have a strong support network of well served clients, a knowledgeable broker, great training resources and a strong support team for your business needs.  Gary Keller, founder of Keller Williams Realty, has a great new book out called SHIFT with lots of ideas that we, as Real Estate Professionals, can use to continue to build our business even when the markets shift down.  You’ll hear some of these ideas in SHIFT Rap, but you also might want to read the book!

SHIFT explores 12 proven strategies for achieving success in any real estate market including:

• Master The Market Of The Moment:
  • Short Sales, Foreclosures, and REOs
• Create Urgency
  • Overcoming Buyer Reluctance
• Re-margin Your Business
  • Expense Management
• Find The Motivated
  • Effective Lead Generation
• Expand The Options
  • Creative Financing

Check it out, follow the process,  and SHIFT your business back into high gear!

SHIFT into Overdrive: The Tactics to Succeed Now

Back by popular demand, the SHIFT Tour is on the road again, and this time, we’re bringing a razor-sharp focus to the tactics that you need NOW! These are the tactics that are widening the gap between real estate agents who have chosen to shift and the rest of the pack. You will also hear from a local panel of top real estate agents who will share exactly what they are doing RIGHT NOW to tackle YOUR local market. Don’t get caught with your head in the sand! Get in the game.

Discover the action steps that top agents across the country are taking and the skills you need to defy the downturn:

• Generating and Converting Leads
• Pricing Ahead of the Market
• Creating Urgency
• Seizing the Market of the Moment
• Managing your Money

Click here to find out when SHIFT is coming to a town near you!

“You gain strength, courage, and confidence by every experience in which you really stop to look fear in the face. You must do the thing which you think you cannot do.”

-Eleanor Roosevelt-

Are you lead generating and really taking advantage of all this market has to offer?  Are you honoring your commitment to build your business? Is fear holding you back?  It doesn’t have to.  Take advantage of Power Hour in the office each morning, 8:30.  Start your day with affirmations, scripts and support from your fellow agents, give yourself the opportunity to not only meet your business expectations, but to surpass them.  The economy doesn’t have to change for you to succeed, beyond your wildest dreams.

As Gary Keller would say, “it’s not about the market…It’s about what you do!”

Take Control, Make it Happen, Start Today!

 Until Next Time,

Samantha Poland, RedHeadedRealEstate.com

Reflections of a Real Estate Coach and Trainer

Clearwater, Florida

“Growth comes from clarity, priorities and focused action.” (SHIFT page 25)

“When you are ready, anything short of action is just plain inappropiate.” (MREA page 84)

Are you ready? What do you need to do to be ready? What actions do you need to take? When will you take them?
If you are ready, what are you waiting for?
If you know what to do, how to do it, why don’t you already have what you want?

If you would like to test drive a coaching program with me, contact me at 425-446-2429 or email me at morelistingsmoresales@gmail.com to schedule 15 minutes to find out if  it would work for you.

Wow, time to revive this blog! I’m going to take a different approach this time though. Although I will add content that could prove helpful for many consumers I am also going to provide content for the agents out there that are struggling with this market.

Here’s my thought process. I have seen way too much negative information through the media and so many of the agents that you talk to would like to bullshit you into believing that the market isn’t as bad as it’s being projected. They’re both wrong. It’s good and it’s bad, it just depends on how you’re working your business and whether or not you have chosen to shift with the times. This is a concept very easily explained in Gary Keller’s book SHIFT, and I would encourage you to get a copy of it, FAST!

Every day that goes by we as agents are bombarded with information either through the media, via our “trusted” mortgage advisers, and just through the constant sharing of information that goes on in our offices. We then are entrusted by our clients to be the “expert” on the market but what information we chose to use can either harm or hurt or even help our clients. We’re damned if we do and really damned if we don’t.

Yet everyday my clients look to me to be the expert that will get their home sold and/or find them the perfect home (for a steal of a deal). And everyday I trust in myself that I’ll get the job done. And I believe that that mindset is what separates the thriving agents from the ones that are “going back to work”. (By the way, nothing irritates me more than when I hear that someone who was a Realtor has “gone back to work” in the “real” workforce. What the hell were they doing when they were a real estate professional??? This has always been work for me, and hard work at that!)

With all of that said I will try to make this blog a useful tool for both consumers and agents with the hope that if you happen upon this blog and would like to share your situations and real estate concerns that you know that someone is listening, can possibly help, and might actually know what you’re going through! In the meantime, I’ll be adding additional insurance my current E&O policy!

Stacy’s Website

Whenever I finish a book I feel bereft, like I’m leaving an old friend.  Gary Keller’s book SHIFT made be feel that way because I had learned so much.  I think the last chapter was the most insightful because it talked about shifting in personal terms as well as market terms.   He talks about successful people in general who continuously and relentlessly are shifting in response to the market but also in response to their own goals.

Keller talks about embracing tough times and tackling them.  His book lays out twelve tactics in order to do just that and this series of articles have explored several of his suggestions.  He cautions you to keep things simple and not try to accomplish everything at once.  We “move at the speed of need” and when goals are clear we figure out what speed we need.  Your life and career will profit when you take your priorities to your calendar and block out time for them.

Life is a series of choices that produce results and those results define us as individuals.  The person that fails and gives up has indeed failed but the person that fails and learns the lesson of “what happened” ultimately succeeds.  It takes resilience, flexibility, adaptability to succeed and this is a perfect market to hone those skills.  You can either look at this market as an insurmountable problem or a huge opportunity; it is all a matter of your choice.  Keller sums it up when he says, “How you think determines what you do and what you do determines the results you get.”

DF

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Most of the complaints I hear from real estate agents is the frustration of working with buyers who turn out to be dawdling, postponing, hesitating, wavering……you get the picture. Don’t they know this is a buyers’ market? Oddly enough during a sellers’ market buyers will go to any lengths to buy a house making it one of the most difficult times to buy value. Buyers were buying like crazy even though the advantage was all to the seller. Now when it’s a true buyers’ market, they want to wait for fear of paying too much. Gary Keller in his book Shift says, “When they should have been afraid of paying too much they weren’t and now that they shouldn’t be afraid of paying too much they are.” It seems they are intent on finding the greatest deal ever and it causes them to miss out on the great deals that are possible. Most believe that they can “time” the market thinking they have all the time in the world. It isn’t possible to know when the real estate market has “bottomed” since it is a relative position and you only know you were at the bottom when it starts up again. Guaranteeing a “killing” on both ends is impossible, as any investor will tell you real estate is a long-term investment. What goes up comes down and what is down will come up again.

After the typical advice that buyers need to be ready, willing and able, Keller offers some excellent direction on energizing buyer urgency…

photo credit: visitmyluxuryhome.com

Three Ways to Energize Buyer Urgency

1.  Become the local economist of choice: Consumers seek expert advice on everything from health care to car problems but take their real estate advice from newspapers, neighbors and relatives. Those sources can’t possibly give you the whole story on local real estate. Keller suggests that you start by influencing their rational thinking with solid numbers and facts. People have been lead to believe that they can buy or sell every three to five years and make a killing on both ends. As the local expert you can help buyers to understand realistic economic expectations in their local market. Since market expectations can be a powerful source of motivation, you should be the one setting those expectations. You need to know as much as possible about the local market.

2.  Tap into their “WHY”: You’ve heard it before, “when they say what they want, you ask why?” Don’t let this powerful determining and motivating factor go unnoticed. Leading reluctant buyers back to their “why” is not manipulation, it is part of your fiduciary duty to remind them of what they want to buy and why. Of course, in the end your buyers make their own decisions but it is you who helped them overcome their fears and make a good decision.

3.  Overcome Buyers Reluctance: Once the market starts showing signs of improvement the really great buys slip away and the pent up demand for housing drives prices up through mounting competition. Buyers’ markets are skill-based markets and now is the time to practice your talking points (scripts), find a business coach, engage in interactive role playing all in order to help buyers make good decisions. You can do all that with the strategies that Keller describes in his book; hazards of timing the market, trade up (the opportunity of a down market), narrowing a buyer’s choices and finding a “Best Buy”.

Keller says you can cope with this market shift by: building buyer urgency through “expert knowledge of the market, careful consultation on their personal wants and needs, skill at communicating the opportunities of the market, and assertiveness in challenging their thinking. As the dedicated professional that you are you have earned the right to help people with their real estate decisions as well as the “courage to act on what you know to be true.”

DF

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It wasn’t all that long ago that a house would sell regardless of how it looked, smelled or presented itself – well, WAKE UP, times have changed and so have buyers.  Savvy agents recognize that a shift means its showtime for a listing.  Your listing must win a beauty contest and a price war!

As an agent you face two obstacles; the seller’s reluctance to invest in staging and the buyer’s inability to envision how a property will look when it is in its best condition.  Generally speaking, staging is an essential part of marketing a home.  Keller tells you the numbers are on your side, “a review of over 2,800 properties in eight cities found that staged homes, on average, sold in half the time that non-staged homes did.  The sellers with staged homes ended up with 6.3 percent more than their asking price, on average.”

Sellers, while they grasp the benefits of staging, may not see the necessity of staging their home.  They have spent money, time and effort in fixing and filling it with their stuff and it bears their personal taste.  But now, the house needs to appeal to the broadest possible segment of likely buyers.  And, you need to convince the seller that you don’t live in a house the same way you put a house up for sale.

Gary Keller in his book Shift suggests that you might want to use the “3P-2F Formula” in suggesting improvements:

♦  Plantings

♦  Paint

♦  Pictures

♦  Furnishings

♦  Fixtures

The house’s appeal has to start at the curb, if they don’t like the outside, they may never see the inside.  And, buyers spend a lot of time on the front porch while the agent is accessing the key.  Keller advises taking sellers through the house room by room asking them in each area what three things they would do to improve the appeal for that particular area.  The following areas are especially important to buyers:

♦  Entryway

♦  Kitchen

♦  Master bedroom and bath

♦  Main living areas

♦  Other bedrooms

♦  Backyard

In the event that sellers cannot name three things they need to do to improve those areas, you need to be ready with a list to help them out.

Be sure to suggest a thorough cleaning, windows especially need to sparkle.  You may need to address clutter; clutter eats equity because clutter eats space.  You certainly don’t have to be the one that does any of this, if you want to that’s great, but there are professional stagers you can use as another option.  Some agents provide one or two hours of a staging consultation as a part of their listing package.  There are advantages to having a third-party professional deliver the bad news especially when you are talking about their precious personal photos or knick-knacks.  Remember that the entire idea of staging is to create a neutral environment where buyers can envision their own things.

There are already so many thing you can’t change about a home; its location, square footage and amenities that staging becomes imperative to accentuate the true value of a home and when done effectively can actually create value.  Keller says, “Pricing and staging are the issues of the day in a shift…..pricing gets you in the game – staging gets you the offer.”

DF

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What defines a “shift”?  If you say, “scarcity defines a shift”, then you truly get what’s happening.  There may still be lots of “leads” (if you are generating them properly) but there are fewer good leads.  As important as lead generation is, if you don’t get a name and number and an appointment, what good is it?  You might be deeply into activities that generate leads but leads that don’t turn into appointments make your activities futile.  So let’s define a real lead as a lead that has a name, contact information and an appointment with a motivated person – now THAT’S a lead.

Gary Keller in his book “Shift” says that conversion is simple but requires preparation.  Lead conversion is:

Capture – According to NAR most buyers and sellers only interview one agent so getting there first is important. Then, you have to ask, if you fear being “pushy” or “intimidating” it is inappropriate because just asking has no emotional energy attached to it.  “If I found exactly what you’re looking for where would I contact you?”  Try it, it works well!

Connect – The fundamental theme of connecting is curiosity – to understand someone’s wants and needs and become aware of their concerns and issues.  You are a consultant who wants to understand their situation.  Keller suggests six connection questions:

1.       Who are they?

2.       What do they want or need to do?

3.       Where do they want or need to do it?

4.       Why do they want or need to do it?

5.       When do they want or need to do it?

6.       How do they plan to do it?

Close –   Does that sound too “sales like”, well it should according to Keller  ”close” means “end in mind”.  Based on your connection can you help?  Is their “need” viable.  Closing doesn’t just happen, it is part of the plan and you ask - ask to meet, ask when to meet, ask where to meet, ask if you should, could, want or must meet.  Just Ask!!

Keller is a real proponent of scripts – so is John Hall & Associates.  When you know the answer, it is hard to wait for the question.  You want a chance to use your polished answer.  Unfortunately many agents don’t have a polished answer!  Because they never practiced the answer even though they have heard the question again and again.  Keller has some great script suggestions.  You also might try the John Hall & Associates intranet for dozens of scripts under “Flannigan’s Marketing Ideas”, more importantly PRACTICE them.  Lead conversion is more than an art it is a skill-based aspect of your business.

DF

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You are NOT going to like this but you need to hear it anyway if you want to remain in the real estate business -

YOU NEED TO GENERATE LEADS!!!

Most of our dislike for lead generation is based on pure myth:

•  Myth: It is too difficult and no fun.

♦  Myth Buster: You’re confusing effort with enjoyment.

• Myth: I’m too busy and it takes too much time.

♦ Myth Buster: It’s an issue of making time and then protecting it.

• Myth: I’m afraid of making mistakes.

♦ Myth Buster: It is nothing more than a set of skills easy to learn.

• Myth: I don’t have the capital and it costs too much.

♦ Myth Buster: You don’t have to spend any money if you don’t want to and the old saying, “It takes money to make money” is pure nonsense.

• Myth: I don’t like it and I just plain fought it.

♦ Myth Buster: There are no natural born lead generators so let’s face it, refusing to do lead generation is like a butcher who refused to touch meat!  It won’t work.

There are some simple steps to effective lead generation:

Step One – Find out what doesn’t work and STOP DOING IT!  The only way you can know this is to associate your valid leads and your sources with closed sales.  If you haven’t kept those records, start right now.

Step Two – Figure out what works and do more of it.  Identify your lead sources and concentrate on the top four sources.  Keller says to narrow your focus and then concentrate on the Message and the Method.

Message – If you read “Real Estate Rainmaker” by Dan Gooder Richard you will fully understand this type of solution marketing. Find the areas of pain in this market such as buyers worried about paying too much, sellers worried about how long it will take to sell and, of course, have we reached “bottom”.  Concentrating on your message brings a solution to that pain.  Keller suggested, for example, using “bargain” in this market because buyers are attracted to that aspect.  It should not be difficult in your advertising to offer a solution to some of the problems in this market.

Method – How are you delivering the message?  There are only two ways of generating leads – marketing and prospecting.  Marketing is attracting business, in a sellers’ market that works well because the product sells itself. (Marketing = Attracting) Prospecting is seeking business and in a buyers’ market when the product no longer sells itself you MUST prospect!  (Prospecting = Seeking) Marketing is passive and reactive (i.e. mailing, etc.) while prospecting is active and proactive.  By the way, marketing can cost a ton of money while prospecting can be practically free.

Step Three -Now that you have honed your message and your methods its time to put them to work.   Ramp It Up!  “To do this you must subscribe to one simple belief; dealing with business never takes precedence over finding business.”  If you don’t embrace this philosophy, everything else will interfere and you will constantly find other things that seem more important.  You must block out your lead generation time and consistently focus on prospecting and marketing.  Keller suggested you time block three (3) hours each day for this important activity and “if you erase, you must replace”.   I almost fell out of my chair when I first read that but the book lays out EXACTLY how to block out the time and then a step-by-step list of what needs to be done in those three hours daily.  I highly suggest that you read the book but you probably know that by now.

Finally, Keller says when the market slows it is naturally for agents to “cocoon” hanging around their office or home waiting for the market to pick up.  Instead, gear up.  Real estate and lead generation are both contact sports.  Your job is to find ways to get in the path of motivated buyers and sellers.

DF

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I have always agreed with Tony Robbins – people run towards pleasure and away from pain, Keller puts a new spin on that in his book “Shift”.  He says the first approach lifts you up and the other drags you down.  Keller suggests that you “Get Real” by recognizing this market for what it is.  Know the fact, this is a very tough market and you can’t control it but you can control your outlook and your response to the market.  There is great freedom in realizing that success is “never about the chosen few, but always about the few who choose.”

It might sound very “Zig Zigler” or “Norman Vincent Peal” but nevertheless it is an enduring truth, all success, and especially sales success, starts between your ears.  Get your mind right, get in the game and be resolute.  This shouldn’t be a temporary attitude but a life long mindset that elevates you far above most people who live a “flow with the tides” kind of life.

Mindset alone won’t bring success it takes action.  Real personal growth comes from clarity of purpose, arranging priorities and focused-action.  Actually critical actions must be  done by you on a daily basis.  The critical action that we are talking about here is Lead Generation and Lead Conversion. Keller maintains that your direct involvement in lead generation and conversion gives you two invaluable insights.  “First, you get an immediate and ongoing sense of the issues of the market – buyer and seller objections that need to be overcome.  Second, you will get an honest understanding of the conversion rates that are possible.”

None of this is new, unique or particularly special it is all quite basic but maybe that’s what the fundamentals of a successful real estate career are – BASIC!!

DF

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It isn’t often that you’re introduced to a book that could quite literally change your perspective on this market or at the very least, change the way you conduct your business but I was recently given such a book.  The title is simple enough “Shift” by Gary Keller who asserts that its not about the market….It’s about what you DO!  Wow, that’s a different spin on a tough market, what could matter that much in today’s economy?  I was about to find out.  The information was so valuable, insightful and timely that I wanted to write my first book report since graduate school and tell you what I learned.

It wouldn’t be possible to tell you everything that is valuable in this book; you’ll need to read it for yourself to see what applies to you.  However, I can pick out a few things in some select chapters that can increase your business and relieve some stress.  Over the next couple of weeks, I will give you a brief overview of this wonderful book with a review of some specific chapters.

After a brief introduction that addresses how economic and real estate shifts happen and the kind of personal financial strategies that you need in order to survive, the book moves to the anatomy of a shift.  While many people talk about the types of markets we face, Keller effectively labels them:

1.       Buyers’ Market – More than 7 month’s inventory

2.       Balanced Market – 5 to 7 months of inventory.

3.       Sellers’ Market - Less than 5 months inventory.

This is valuable information that comes in handy when talking about prospecting vs. marketing (no they are NOT the same thing!), so keep them in mind.  Keller wastes no time or extra words listing what he believes to be the core competencies of a business.  I am going to assume that you know you are running a business, you are the CEO and the employee, and the primary objective of any business is to make a profit.  Given those assumptions there are fundamental priorities for your business.

Six Core Competencies of a Business

1.       Lead generation, capture and convert to appointments.

2.       Present to buyers and sellers and get agreement.

3.       Show buyers and market sellers for required results.

4.       Write and negotiate contracts.

5.       Coordinate the sale to closing.

6.       Manage the money.

Keller also gives you twelve tactics to help you deal with tough times.

#1      Mindset and action

#2      Expense Management

#3      Leverage

#4      Lead Generation

#5      Lead Conversion

#6      Internet Lead Conversion

#7      Seller Pricing Strategies

#8      Seller Staging Strategies

#9      Overcoming Buyer Reluctance

#10    Creative Financing

#11    Short Sales, Foreclosures and REO

#12    Issues and Solutions

So that’s the game plan, obviously these articles aren’t going to replace reading the book but over the next few articles you WILL get the essence of how to change your business strategies to survive and thrive in these tough times.

DF

next article in series >

My real estate guru, Gary Keller, says the only good answer to the question “How’s the market?” is the rhetorical “Who cares?” It is what it is, he says, and if you need or want to buy or sell property today, then today is the perfect time to do so.

How’s that for plain-talkin’ real life?

I’m interviewed all the time on the state of real estate in Galveston — and while I’m as grateful as can be for the opportunity, rarely is my message fully delivered. So here’s what I want you to know about Galveston real estate today:

We were a buyer’s market before Ike, and we are less so today. That is because a buyer’s market is when supply significantly exceeds demand, and since Ike, lots of properties have come off the market. Many of those will go back on the market after they are repaired. A house with a new roof and new kitchen is more valuable than it was without those upgrades, right? So as properties are relisted, prices will at least stay where they were before the storm or may even go up. That remains to be seen. What we know for sure is that properties that received little-to-no damage have held their values and are selling with fewer days on the market. The vast majority of properties on the island fit into this category. Here are some examples:

This is all consistent with the statistical and empirical evidence from other Gulf Coast communities struck by storms in recent years: In every case, property values surged after a period of respite and repair.

Which brings me to the ever-popular and not-at-all-original “find me something to steal” investment strategy. Here’s what you can have cheap. (I wouldn’t call it stealing because the sellers are offering it to you. Whatever, call it stealing if you need to feel like a thief to enjoy the transaction.) Here’s what you can have: Extremely damaged as-is properties in neighborhoods that were underinsured or red-tagged. That’s it. That’s all we have “on sale.” We have a few new construction offerings in foreclosure (builders who underestimated a lot of things), but we are not in the same economic condition as the rest of the country. We are a second home market. That means that our buyers are largely less impacted by slips and slides in the mortgage industry.

So, after all is said and done, we are still a stable market in the most affordable resort area in the country — 45 minutes away from the third largest city, where the economy is strong. We are kissing our boo-boos since Ike, but watch for a powerful rebound quickly and with vision!

And remember, the minute you close a transaction as a buyer, you become a seller. And the minute you close a transaction as a seller, you become a buyer. So is there really ever a bad time to buy or sell?

Here are some post-Ike Galveston real estate-related stories…

• http://www.chron.com/disp/story.mpl/nb/bay/news/6177329.html
• http://www.fema.gov/news/newsrelease.fema?id=47141
• http://www.galvnews.com/story.lasso?ewcd=9bc62816719b2225
• http://www.chron.com/disp/story.mpl/business/sarnoff/6026325.html
• http://galvestondailynews.com/story.lasso?ewcd=eebc8807c7c0b718

Looking for another way to tap into the business-building energy and power of SHIFT: How Top Real Estate Agents Tackle Tough Times? SHIFT the podcast is now available as a FREE download on iTunes.

Listen in as co-authors Gary Keller and Dave Jenks discuss the 12 tactics and provide a strategic vision for success in any market.

This weekly podcast will help you to keep building momentum to show the world that Keller Williams agents can survive and thrive during a downturn!

Download the SHIFT podcasts through your iTunes account, or go to www.itunes.comto download the free program. Once you open iTunes, go to the iTunes store and search for “Gary Keller” under the podcast tab in the business category and sign up to receive the SHIFT podcast today!

Your First Home: The Proven Path to Home Ownership

A Keller Williams ® Realty Guide

By Gary Keller with Dave Jenks and Jay Papasan

There are certain problems buyers typically ask sellers to handle. These include deferred maintenance, such as cleaning the pool or gutters, or having a neglected heating or air-conditioning system serviced. As always, local norms help provide a guide. “We have many septic systems and wells, and sellers typically pay for their septic systems to be pumped and inspected,” says agent Roy Van Winkle. “That’s not written anywhere, but it’s just expected.”

The kinds of problems you encounter will depend on your region. Shifting foundations and termites are common in the South; basement leaks or insulation problems frequently occur up North. Your agent will be able to estimate what many common repairs will cost; in some cases he or she may recommend calling in a contractor for an estimate. Once you see your repair bill, you can decide what to ask the seller to fix, and what you’re comfortable repairing (either with or without a repair allowance).

We suggest you exercise caution when deciding how to handle problems-such as leaks, electrical work, or pests-that require opening walls. It can often be difficult to tell how extensive such problems are from the outside, so when you open the wall, you may find a much larger problem than you bargained for. So, ask the sellers to handle inside-the-wall repairs, if possible. Otherwise, you may negotiate a repair allowance of one amount, only to find once the drywall is in pieces that fixing the problem will cost five times more than you expected.

If you thinking of taking on a major repair, we encourage you to factor in your short- and long-term plans. If you’re staying only a few years, extensive repairs may not be worth the hassle. On the other hand, if this is the home you intend to live in for many years, it can be exciting to take the reins on an upgrade that will last a lifetime.

Copyright © 2008, available at Amazon.com 

Gary writes,

“You can “motive-aid” someone to help them better understand why they should consider buying or selling in this market, but you can’t motivate them. Their motives are their own. Their rationales or reasons are theirs and theirs alone. And since you can’t actually motivate people, your only choice will be to find more of them. So this is why you must now ramp up your lead generation, because there are less of the motivated to find.” (page 50 SHIFT)

Recently in Austin, Texas I was attending a class with former CEO of Keller Williams, Mo Anderson. Mo said something that sums this all up, “You need to develop the ability to talk to the right people.”

A huge part of the lead generation process is having the simple, powerful words to use so that you are the most effiecent and effective you can be with our message. Gary Keller says that,

“I saw that on top of being a “transaction knowledge and service business,” our industry is a “script and dialogue skill-based business.” I had to commit to getting onto the path of mastering these.” (page 52 SHIFT)

Scripts and dialogues. ARRRGHHH! Really? We need to master scripts and dialogues? That sounds awful! What is this sales? YES!!! It is!!!!

Gary Keller goes on to tell us that everyone should be mastering scripts and dialogues,

“It dawned on me that very few people have the perfect sales profile and that no one is truly a natural lead generator. The gift of gab should never be mistaken for natural sales skill. It became obvious to me that everyone has to master the specific and meaningful scripts dialogues, and skills of lead generation to be really successful.” (page 53 SHIFT)

So true! Just because you can talk, doesn’t mean you should! Less is more! For you HIGH I behavior profiles you might need to learn how to not talk so much. The HIGH C behavior will need to learn the scripts to feel confident with objections. The key in all scripts is being able to really listen to the client so you can help them with their needs, instead of trying to figure out what to say next.

Everyone uses scripts, some scripts are just better than others. My first time I remember working on a script, I was 7. I was riding home on the bus after getting in trouble at school, trying to figure out how to explain this to my parents. I rehearsed that script over and over again.

How good are your scripts? How much time are you investing in practicing your scripts?

Join us in the KW Everett market center at 8:15 every morning when we role play our scripts or join us online at www.KWLionsDen.com

RELATED POSTS:

Session 4 – Mastering The Real Estate SHIFT

Taking Action SHIFT

Shift Tactic #1 Get Real, Get Right – Mindset And Action

Your First Home: The Proven Path to Home Ownership

A Keller Williams ® Realty Guide

By Gary Keller with Dave Jenks and Jay Papasan

Once you have your inspection report, we want you to know your first job is simple: read it.

Many agents say they’re amazed by the number of people who approach their inspection like a hurdle to jump over; rather than as a valuable new source of information about the property they’re considering to buy.

“When my daughter bought her house, she didn’t pay attention to the details of her inspection and ended up with all sorts of problems,” says New York agent Mohammad Abbasi. “This is all too common. In the rush of things, people don’t take the time to read the report and miss the opportunity to make the seller take care of the problems for them.”

So you’re flipping through your inspection report, noting page after page of problems the inspector found in your “former” dream home. Your first response, when you get to page five or so, is probably a heartfelt “Eeeeek!”

Don’t panic. There are no perfect homes. Unless your home is new, it’s virtually guaranteed to have some wear and tear. An inspector’s job is to note everything-everything-that’s not perfect about the property, right down to the minor, easily fixed “problems,” such as replacing a missing window screens or broken switch plates, which annoys about everyone. However, asking a seller to replace every broken doorknob is a surefire deal-killer. Custom (not to mention common sense) dictates that buyers not ask the unreasonable. But what, exactly, is “unreasonable”? This will vary from place to place and market to market, and your real estate agent will be able to guide you toward what is and isn’t a typical, reasonable request.

“Put yourself in the seller’s shoes,” says agent Shannon Jones. “If there are any health-and-safety concerns, most people would consider those repairs reasonable. But most sellers will say no if you just come in with a laundry list.” In short, the right to handle your inspection report is to avoid demanding the sellers fix every little thing. Instead, take the time to sort out problems that are actually worth worrying about and negotiating over.

Copyright © 2008, available at Amazon.com 

Your First Home: The Proven Path to Home Ownership

A Keller Williams ® Realty Guide

By Gary Keller with Dave Jenks and Jay Papasan

1. The rules of real estate are always local.
2. The best deals are usually win-win.
3. Price and value are not the same.
4. Choose with your heart and your head.

Copyright © 2008, available at Amazon.com 

Tactic #3 from Gary Keller’s new book is Do More With Less. Do more with less. I am going to repeat that again. Do more with less.

In a shifting real estate market, you are going to have to do more. You are going to have to work harder, be more efficient, more effective and even work longer hours; all the while you are going to have to do this while spending less money.

What leverage really means is re-margining your time. Spending a lot of time on a task or project and doing it well does not make it important. What you spend your time on will always be more important than how well you do something. Think about it like this: You might put together the best CMA, spend hours researching data and statistics and be able to create magnificent graphs and charts. If you don’t have a seller to present this info to what does it matter?

Tim Ferriss, author of The 4-Hour Workweek writes about time management in his book,

“Being busy is most often used as a guise for avoiding the few critically important but uncomfortable actions. The options are almost limitless for creating “busyness”: You could call a few hundred unqualified sales leads, reorganize your Outlook contacts, walk across the office to request documents you don’t really need, or fuss with your Blackberry for a few hours when you should be prioritizing.”

Where are you spending your time? Is it in important actions or urgent items? Think about the difference of those two things.

Gary tells us to ask ourselves these four questions in SHIFT,

What are my business priorities? When do they need to get done? Who is the best person to do them? And, finally, how should they be done?

He then shares with us The Six Core Competencies Of A Business:

1. Lead generate, capture, and convert to appointments
2. Present to buyers and sellers and get agreements
3. Show buyers and market sellers
4. Write and negotiate contracts
5. Coordinate the sale to closing
6. Manage the money

So you no longer have to think or guess what your priorties should be. Isn’t that great? Start doing more by  doing less of the unimportant.