Lost. $40,000 in Equity. Reward Offered

As an investor's agent I always get confused when a client finds a property, inspects it for repair costs, runs the numbers and then waits for the list price to drop before they submit an offer.

Here's my question: Why leave the property on the market for other people to steal your target purchase when you know what you can buy it for and how much you'll make from the purchase. at the right price? You have no idea what they will or will not accept.

Examples of When Buyers Aren't Afraid to Ask:

1. I had a listing that had an appraised price of $85k. The sellers listed it at $79k. They accepted an offer of $63k after only 21 days on the market and also offered to do update work prior to closing.

2. A HUD property that had been on the market for almost a year. Listed at $250k, then $242k, $235k...you get the point.

My buyer placed a bid each day for $140k (the on line auction had a daily closing). We did this for about 30 days. There was no winning bid.

The price was reduced again, this time to $195k.

I asked my clients if they wanted to place the same bid.

READ CLOSELY!!!

They did not want to submit a bid, as they had been, at $140k.

The next day the auction closed with the winning bid at $98,000.

My clients were outraged that they lost the opportunity to purchase the property. Not to mention that up and to that point they were offering over $40,000 more than the winning bid.

Please learn from these experiences...

PUT IN AN OFFER!!!

Leave a comment about any experiences you have had or heard of...good or bad.

3 Tips to Start the New Year Off Right

I'm starting from the assumption that you (the reader) are interested in making your life experience in 2008 different (dare I say, better) than 2007.

I've come across some great podcasts that have been really inspirational. Check out these links...after you've read my tips, of course.

My Thought Coach, Brian Tracey Podcasts, Hypnosis w/ Michael White and the 4-hour Work Week

Tip 1: Reflect - What did you do last year? (Or...what did you avoid?)

• I avoided going to the gym during the day because I would have to use the public shower. (That causes me unreasonable anxiety.)
• I did not add to my property inventory because I was reluctant to take a serious look at my finances.
• (On a positive note) I almost doubled my business production.
• I reviewed, eliminated and created new successful marketing campaigns.
• I enjoyed multiple wonderful vacations.

Tip 2: Brainstorm - What gave you the most enjoyment in 2007?

• I ran my first half-marathon.
• I was increased my flexibility. (I touched my toes for the first time in over 5 years.)
• I read some wonderful business/educational books.
• I automated almost all of my duties as a Realtor.
• I took on a part-time assistant.
• I made some new friendships.
• I helped all my clients through their real estate transactions in a volatile market.

Tip 3: Decide - Pick some things you want to do/be/have. (Use the previous steps to get some ideas.)

• Because it was an amazing rush - I am going to run 2 more half-marathons in 2008.
• Because I feel a sense of accomplishment and have more energy - I am going to continue limiting my intake of fast food and microwave meals and prepare meals at home 5 days/week.
• Because I believe in myself - I am going to increase my property holdings according to my business plan.

These are just some things that I plan to improve in this new year. I hope you make some amazing new accomplishments in 2008.

Please leave some comments on what you plan to do so we can encourage you along the way! (And, let me know what you think about the links I posted.)

Here's to a wonderful 2008!

Increase Your Bottom Line...(Part 2)

Here are some more steps to make more money in your real estate business.

4. Identify your best client

Are you spending your time on your best prospect? (Putting on my Realtor hat) I could drive a shopper around for months to see every house that happens to be in a particular town and have a certain number of bedrooms. Or, I could refer that shopper to some other agent who likes shopping and spend my valuable time locating my ideal client (who has 2 days to select their next home, is pre-approved with my favorite lender and has a pleasant personality).

Don't get me wrong. There are a lot of potential clients out there that are serious about making a decision to purchase a home. I'd just prefer to spend my time on the client that will be decisive and agreeable. (And, I know when I've found that type of person. And I do everything in my power to ensure that they will do business with me.)

So, transpose this idea to your business. Are you looking for a service provider, a property to purchase, a tenant or a buyer? In each area, identify your best client and serve ONLY those that fit similar criteria.

If you spend more time on client screening you'll find that you: Waste less time (on bad clients that probably won't perform anyway), Experience less stress and Make more money. And isn't that was business is really about?


5. Provide top quality service

Do you have a niche? Are you the "best" in your area? If you want to make more money (without necessarily working more) you need to give you clients amazing service. It's common knowledge that people will pay a premium for a high quality product or service. (And usually that means that service is provided to fewer clients.) So, if you're interested in serving fewer people and charging them at a higher rate, I suggest you provide an amazing service.


6. Satisfy your customer

Somewhat aligned with the last bullet point, customer satisfaction creates great referrals. Once you have taken the market by storm by the quality of your product, don't forget to ensure that your client loves it.

I have a great listing presentation. I pull out all the stops and typically walk away with a signed contract. (Unless I have determined that my prospect does not fit my "best client" criteria. In which case, I tell them "Thank you" and offer to refer them to another agent in my office...or a competing brokerage if they are really high maintenance. Ha!)

But Once I have the contract signed, if I don't satisfy my client with consistently amazing service, I've hurt my entire business.

Make sure that your client is aware of what you intend to provide and be sure that level of service satisfies their needs...at the very least. (And, if it doesn't, you probably did a poor job at at client screening and have wasted your time and theirs...so cut them loose. Oh! I'm so cold!)



...I'll have more tips to come. Please leave me a comment and let me know what you do to be the best in your market or how you have created a niche.