Real Clues

[RealClues] #328: Get Buyers to Buy Now! (part 2)

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New for June 1-15, 2008 at www.ListenandLearnRealEstate.com (See Featured Products for detailed descriptions)
*The Key to Profits in 2008--It's Not the Web. Eleven Strategies to Help You Improve Your Business
*Ready to Beat the Competition? Five Strategies for Breaking out of the Box
*A Hot New Niche: the Basics You Need to Specialize in this Important Area
*Seven Guidelines for Selling Investment Properties

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Table of Contents
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1. CoachingClues: Get Your Buyers to Buy Now (Part 2 of 2)
2. Welcome Notes: Four Inexpensive Steps to Build Your Business
3. Reprise: Sell that Ugly House
4. Create a Better Life: Eight Ways to Increase Your Profits
5. Positive News for Positive Realtors(reg): No Recession yet, Positive FHA News, 2600 Cities Where Prices Are Increasing
6. New this week at www.LuxuryClues.com:
7. Featured Products: The Midas Touch, Innocent Chocolate + Much More
* Our Best Seller for a Reason
8. Increase Your Production with Personal Coaching
9. Give Us Your Feedback on this Newsletter
10. How to Subscribe/Unsubscribe

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1. CoachingClues: Get Buyers to Buy Now! Part 2 of 2
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If you're struggling with reluctant buyers, you can get your buyers to buy now!

Last week's article looked at four strategies for motivating buyers to buy now. Here are four additional strategies to help you persuade a reluctant buyer that today is the best time ever to purchase.

1. The smart investor conversation
It's no secret that people like Warren Buffet and Donald Trump are actively involved in purchasing as much real estate as possible right now. Explain to your buyers, that like Buffet and Trump, the smartest people in the real estate business are contrarians. They sell when prices increase and buy when prices are going down. This may be a little difficult for some buyers to grasp since it is exactly opposite to how most consumers behave. When prices increase, buyers stampede to buy property to capitalize on the increases. Of course, when markets fall, those who bought at or near the peak are generally the ones who are stuck with properties that are not worth what they paid. As one economist put it, "I know it's time to get out of the real estate market when my manicurist and the man who cuts my hair start advising me on how to make money by flipping real estate." If your buyers are feeling reluctant, encourage them to be smart like Trump and Buffet--buy now when the interest rates are at historic lows and there are plenty of bargains as well.

2. The Bargain Bus
A trend that has been popping up in several places in the country is the "bargain bus." Rather than taking individual buyers out to look at various foreclosure, REO, or well-priced properties, some agents have been taking out groups of buyers in a bus to tour these properties. It's certainly more time efficient for the agents. It's also an excellent way to have reluctant buyers become more motivated to purchase. When the agent sets up the best properties available in a given category and uses print and web advertising to attract investors or savvy homebuyers, there are usually multiple purchases from a single tour. The tour creates urgency in much the same way that an auction does. The fact that there is a busload of buyers also creates the impression that "Others are doing it--perhaps I should do it as well."

3. Provide financial incentives
Often times, providing a financial incentive is a good way to attract buyers who will take action. Seller strategies include having the seller pay part of the closing costs, pre-paying the buyers' homeowner association dues for one year, or providing home warranty policy. Since 35 percent of the properties in the U.S. are owned free and clear, having the seller carry part or all of the financing can be another viable option. Properties with financial incentives are excellent choices if you're conducting a "bargain bus tour." One caveat: avoid "wrapping" mortgages (i.e. expecting the existing lender to continue their loan after you sell to another buyer) unless you have negotiated a written approval from the senior lien holder(s) prior to closing.

4. Locate sellers who will provide an interest rate buy-down for their buyer.
Numerous lenders have buy down programs, including FHA. For example, on a $500,000 purchase price with a $450,000 loan at 6.5 percent, a permanent buy down would cost the seller $18,000. For $18,000, the buyer's loan is reduced $289 per month. To reduce payments by this amount would require a $45,800 reduction. (Please note that permanent buy-downs for 30 years are only available at a limited number of lenders. The typical buy-down is 2 or 3 years.) This approach may be too sophisticated for some buyers and sellers. The best way to explain it is to show the buyers what their payment would be with and without the buy down. Next, show them how much the monthly buy-down amount would amortize over a 30 year period. A permanent buy-down is a win for both the seller and the buyer.

5. Reverse contracts
"Reverse contracts" was one of the most innovative ideas from the book, Transforming the Market in 2008 by BestAgentBusiness.com. Many times buyers have challenges determining which property to purchase. The proactive listing agent can begin the negotiation by having their sellers write a "reverse contract." In other words, the seller drafts an offer, slightly under asking price, and the listing agent presents it to the buyer. This can be the gentle nudge required to persuade the buyer to purchase.

Buyers today have the best possible opportunity to make their dream purchase. Use your marketing and your creativity to get the word out that if you're thinking about buying a home, now's the absolute best time to do it!

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2. Welcome Notes
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Welcome to our new subscribers this week. Each week RealClues provides you with great strategies to improve both your business and your life. If you find this issue of RealClues helpful, take a moment to hit the "forward" button and send it to another friend in the business.

It breaks my heart when managers tell me how many of their agents are struggling with today's market. Some are afraid to take a listing because it will cost money to market it. If you're having problems with this market, the most important step that you can take is to invest in yourself. Many of the agents who have implemented the steps in our training programs are having their best year ever. That's because they have learned the conversations necessary to prosper in this market. Here are four inexpensive steps that can help you with your business.

1. Go to our website at www.RealEstateCoach.com and read all of the articles under Resources. There is no charge for these. http://realestatecoach.com/resourcecenter/index.html

2. Take 10 minutes to complete the on-line form to create a Point 2 website. There's no charge for the first six months. The site lets you market your listings on over 30 different websites, tracks traffic, and provides you with a host of other services. It also gives you a website that has all of the listings posted in your area by Point 2 members. There are over 180,000 agents who belong. This is a no-brainer. http://agent.point2.com/agent/partners/recoachFeaturesPage.asp

3. Order a copy of Waging War on Real Estate's Discounters. The book shows you how to state your value proposition and has over 300 pages of the best advice from the top trainers and agents in the business. http://www.realestatecoach.com/wagingwar.html

4. Sign up for Listen and Learn Real Estate for one month. It's $29.95. There are currently 70 audio podcasts in the library with six to eight new sessions being added each month. Set aside one hour a day to listen for a month and you will have covered most of them including how to price properties in tough markets, how to get sellers and buyers to be realistic, as well as tips on short sales and other topics. This is the best training value in the business. http://www.ListenAndLearnRealEstate.com

These are extremely valuable resources. The most important resource, however, is you. Get away from anyone who is negative. They will drag you down with them. Take the time to care for yourself. Finally, remember, change takes place best one-step at a time. Be kind to yourself and start adding the steps today that you will need to prosper tomorrow.

Make it a great week.

Bernice Ross, MCC, and Byron Van Arsdale, MCC
www.RealEstateCoach.com, www.LuxuryClues.com, www.RossdalePress.com, www.ConferenceCallTraining.com, and www.TeleconferenceLine.com

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3. Reprise: Sell That Ugly House
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Do you have a listing you think would look best bulldozed to the ground? Don't despair! You can sell that ugly house!

http://www.realestatecoach.com/articles_archive/art20041115.html

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4. Create a Better Life: Eight Ways to Increase Your Profits
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You can increase your profitability by working harder, but have you ever thought of "spending smarter?"

http://www.realestatecoach.com/articles_archive/art20040927.html

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5. Positive News for Positive Realtors(reg)
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What recession? Despite all the nay-sayers and the huge increases in energy costs, the economy continues to be in plus range. Also, there are over 2600 cities that are experiencing price increases. Check out today's Positive News to learn where to find out.

http://listenandlearnrealestate.com/news.html

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6. This Week at www.LuxuryClues.com
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Innocent Chocolate (Yes--low cal, low carb, good for your cholesterol, and really yummy!)
Opening Glass Walls--A Cool Way to Convert Your Space
Four Hot Luxury Trends that will Filter into Moderately Priced Homes
The Midas Touch--Are You Ready for a Gold Cell Phone?

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7. Featured Products:
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**Our Best Seller for a Reason
Are you willing to invest $99.00 to transform your business into a money making machine? If so, order our Waging War on Real Estate's Discounters package that includes the book, 82 listing scripts on audio CD, plus a set of 82 script cards. Make thousands more each year simply by implementing the how-to-steps in this package. If you're not converting over 90 percent of your listing appointments at a full commission, don't wait--order today and start making money tomorrow. Check out the Table of Contents (http://www.realestatecoach.com/wagingwar_toc.html) and then Order now!
http://realestatecoach.com/wagingwar.html

**New at www.ListenandLearnRealEstate.com Six to eight new audio broadcast training modules EVERY month for only $29.97 per month or $147.00 for six months. Here's what's new for June 1-15, 2008:

*The Key to Profits in 2008--It's Not the Web.
Real estate today is not just location, location, location--it's about connection. Your website is simply a way for people to connect with you. This session provides you with a quick assessment of how strong your connection skills are as well as plenty of tips on how to make them even stronger.

*Ready to Beat the Competition? Five Strategies for Breaking out of the Box
If you keep doing the same thing, expect the same results. Discover five ways to make your business unique and increase your income by breaking out of the box.

*A Hot New Niche: the Basics You Need to Specialize in this Important Area
What's the hottest new niche in 2008 with an anticipated 1.65 million sales and virtually no agents addressing it? Don't miss this session that gives you the basics on what you need to get started.

*Seven Guidelines for Selling Investment Properties
If you're business is slow, consider adding investments as a new niche. The typical investor buys two properties every year. If you want to know what it takes to develop a successful residential income business as well as key pitfalls to avoid, don't miss this great session.

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8. Increase Your Production with Personal Coaching
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Looking for a well-trained coach who knows the real estate business? Our coaching team can help you increase your production and make your dreams come true. Send an e-mail to Shane@RealEstateCoach.com and we'll help find the right coach for you.

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9. Give Us Your Feedback On This Newsletter
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We want your feedback-to share your thoughts and suggestions, please e-mail us at Shane@RealEstateCoach.com.

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10. How to Subscribe/Unsubscribe
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Visit our Web site, http://www.RealEstateCoach.com to subscribe/unsubscribe to RealClues.

Copyright (c) 1996-2008, RealEstateCoach.com and Teleclass4U.com, LLC. All rights reserved. Permission is granted to reproduce, copy, or distribute RealClues as long as this copyright notice and full information about contacting the contributors to this newsletter is attached.

Contributors to this newsletter:
Bernice Ross, MCC, and Byron Van Arsdale, MCC, Owners, www.RealEstateCoach.com, www.LuxuryClues.com, www.ConferenceCallTraining.com; www.RossdalePress.com; and www.TeleconferenceLine.com
Shane Bowlin, REC General Manager

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