August 2010 by The KCM Crew
1. Realize demand will increase.
The lull in buying activity that many parts of the country experienced this summer will not continue into the fall. Purchasing activity drops every summer. The tax credit also pulled demand forward from the summer months as people shopped early in order to qualify for the $8,000 or $6,500 credit that was available prior to June 30th. The fall market always outperforms the summer market. Buyers will return. Be prepared for them.
2. Price your listing inventory based on ‘supply & demand’.
The price of anything in the world is based on the ratio between how many people want to purchase the item and how many of the items are available. Real estate is no different. With demand remaining relatively flat (see NAR’s statement) and inventory skyrocketing (see NAR’s report), prices will continue to soften. Know the month’s supply of inventory in your marketplace and apply this guideline:
- 1-4 months inventory = a sellers’ market with home prices appreciating
- 5-6 months = a normal market with stable home prices
- 7+ months = a buyers’ market with home prices depreciating
Make sure you add in future ‘shadow’ inventory of distressed properties which will be coming to market.
3. Go to work! Once there, GET TO WORK!
I realize that it has become fashionable for some agents to work from home. But, whether you have a home office or an office you report to, get there early. Don’t get caught in the trap of lazily starting your workday. Whether it is a 7:30 start, an 8:30 or a 9:30 start, get to your ‘work station’ and be ready to start on time.
Once there, make sure you have a well thought out work plan that will maximize your production for that day. This market is not about waiting around for something to happen. It’s about MAKING SOMETHING HAPPEN!
4. Begin using a Customer Relationship Management (CRM) system.
You must run your real estate business as an actual business. There is no industry operating today that does not keep track of every customer or potential customer in which they come in contact. They continue to massage relationships for either additional business, future business or referral business. We should not have any lower of a standard. The KCM Crew believes strongly in the use of a powerful CRM program. MPC has software specifically designed for real estate professionals. You can visit them at http://www.mpc-co.com/fastrakcrm.html. (We receive absolutely no benefit either financially or otherwise if you decide to use this product. We just want to pass along a service that we have checked out and believe can help.)
5. You feed your body EVERY day. Feed your mind EVERY day also.
We are facing challenging times in the real estate industry today. We must not only be physically prepared to overcome the obstacles in front of us; we must also be mentally prepared!! Take time each and every day to feed your brain with the nourishment it needs. Read positive books! Listen to ‘inspiring’ tapes (notice I didn’t use the word ‘motivational’).
Your success over the next 18 months will be determined by your attitude. Your attitude will be determined by your mental strength.
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Success Strategies for September 2010