Make Your Market Myth Busters Prep for This

Make Your Market: Myth Busters

*Prep for This Week’s Session* § Order SOLD stickers from Central Fulfillment (item # P 024) or sign riders from A-Sign or David Lane. § Put blank paper on each table, enough for each associate to have one sheet for the “V” tool. § Slide 17 refers to a “SOLD raffle” for associates who email you SOLD photos with buyers; when you’re announcing that, reinforce how your raffle will be conducted. *Delete this slide before presenting *

Agenda § Today we’ll explore where myths come from. § You’ll leave here with the ability to dispel common myths in the current real estate market.

What is a Myth? What is the definition of a myth? A “myth” is a fiction or half-truth that appeals to the consciousness of people while expressing some of their deep, commonly felt emotions.

Common Myths Here are some common myths in our society today: § Unicorns § Big Foot § The Tooth Fairy What other societal myths can you think of?

Common Myths Let’s explore where a couple of these myths come from and how they continue to stay alive.

Myth: Unicorns § Why does this myth exist? § What factors contribute to it’s perpetuation? § Is it indeed a myth, or is there a measure of truth in it? § What can we do to dispel this myth? Let’s look at one more myth…

Myth: The Tooth Fairy § Why does this myth exist? § What factors contribute to it’s perpetuation? § Is it indeed a myth, or is there a measure of truth in it? § What can we do to dispel this myth?

Common Real Estate Myths Now let’s talk about real estate. What are some common myths in the current real estate market?

Current Real Estate Myths Here are some current real estate myths that we’ll explore – and learn to dispel: 1. Houses are not selling. 2. All buyers are afraid to buy because of the economy. 3. It’s hard to get a mortgage.

Common Myths Let’s explore where a couple of these myths come from and what you can do to change public perception – in order to make your own market.

Myth: Houses are Not Selling § Why does this myth exist? § What factors contribute to it’s perpetuation? § Is it indeed a myth, or is there a measure of truth in it? § What can we do to dispel this myth?

Myth Buster: Homes Not Selling What is the most powerful, visible tool you can use to bust the myth that houses are not selling?

Myth Buster: Homes Not Selling 1. Use SOLD signs to change public perception – we’ll go through a process for doing that in a moment. 2. Call the neighbors when a home has sold. Let them know you’re the one who sold it. Here’s one more…

Start with SOLD 3. At your next listing appointment, bring the SOLD sticker/rider with you. Give it to the sellers and say, “Hold onto this. You’ll be needing it very soon. ”

SOLD Sign Process 1. At walk-through, get permission from the buyer to put SOLD sign on lawn 2. Take digital photo of buyers and SOLD sign in front of house and email it to me so I can post it for everyone to see & enter you into our SOLD raffle 3. Put SOLD sign on prominent place on lawn while on walk-through 4. 2 weeks later, pick up sign and give buyers a thank you letter with their SOLD picture

SOLD Sign Process Let’s talk about that last point a little further: 4. 2 weeks later, pick up sign and give buyers a thank you letter with their SOLD picture; it’s an opportunity to ask for referrals Giving a framed picture of your buyers with the SOLD sign in front of their house might sound corny, but it’s actually a good sales technique. How can it bring more business your way?

Give a Gift & Get a Gift Think about your buyers’ reaction when you return two weeks later to pick up the sign - and you unexpectedly hand them a personal note and gift.

You’re a Dream Builder You helped them find their new home. . . • A special event in their lives, • Highly emotional • Associated with their dreams, quality of life, their goals . . . and that photo will take them back to that moment when it became theirs.

Give a Gift & Get a Gift When you give them that framed picture, they’ll feel good about you. It’s a great time to leverage that opportunity by asking for referrals: “Who do you think might be next among your family and friends to make a move? I’d like to help them the way I’ve helped you and your family. ”

SOLD Sign Do you have any other ideas for using the SOLD sign to bust the myth that houses are not selling? What do you think our company could do to bust this myth?

Myth Buster: Homes Not Selling Here’s what our company is doing to support your efforts to bust that myth: 1. Putting SOLD listings in newspapers. How will that bust the myth? 2. Promoting recent SOLDs in our market areas. Here’s a sample of one that will be specific to our market area that you can email to your clients…

Current Real Estate Myths Here is the second real estate myth for us to bust: § All buyers are afraid to buy because of the economy.

Myth: All Buyers Afraid § Why does this myth exist? § What factors contribute to it’s perpetuation? § Is it indeed a myth, or is there a measure of truth in it? § What can we do to dispel this myth?

Myth Buster: All Buyers Afraid Show buyers the opportunity that exists in the current market: • Let’s start by using a visual that will show your buyers the tremendous opportunity that exists today. • We’ll run through it ourselves, then talk about how to use it with buyers.

Myth Buster: All Buyers Afraid Let’s start with a rhetorical question… Q: Have home prices and interest rates remained stable throughout the years, or have they changed? A: They fluctuate constantly. Let’s do an exercise to demonstrate this visually…

Seeing the Opportunity Let’s do this at our tables: 1. Draw a V on a piece of paper Prices 2. The top of the V is high, the bottom is low 3. Put a dot on the Prices line to indicate where you think prices are right now. 4. Put a dot on the Rates line to indicate where you think rates are right now. Rates High Mid-Range Low

Showing Buyers Opportunity Look at your drawing and tell me the answer to these questions: Prices 1. If this were 2005, where would you place the Price and Rate dots? 2. When do you last remember an opportunity like this – with low prices and low rates? 3. How do you know when you’ve hit the bottom of the market, where the deals are? Rates High Mid-Range Low

Showing Buyers Opportunity Here is the answer to the 1 st question: Prices In 2005, the V would like somewhat like this one, where prices were on the high end of the scale and rates were in the lower range. Rates High Mid-Range Low

Showing Buyers Opportunity Here is the answer to the 2 nd question: Prices In recent history, there has never been an opportunity like this, with low prices and low rates. In real estate, this circular area at the bottom of the V is called the buying zone – it’s an unbelievable time to buy. Rates High Mid-Range Low

Showing Buyers Opportunity Here is the answer to the 3 rd question: Prices You know the saying, “Hindsight is 20/20? ” The only way you know when you’ve hit the bottom of the market is when prices and/or rates start going back up – and then you’ve missed the opportunity for an unbelievable deal. Rates High Mid-Range Low

Using this With Buyers When using this tool with buyers, follow this ancient Chinese proverb: “I hear and I forget; I see and I remember; I do and I understand. ” This means you need to allow your buyers to come to the conclusions you’re leading them to. Don’t just tell them or show them – allow them to experience the revelation for themselves.

Using this With Buyers 1. Start with asking your buyer the rhetorical question we started with. Who remembers what the question was? 2. Have your buyer put the dots on the V. 3. Your buyer need to come to the conclusion themselves that this is an opportunity that’s not to be missed. 4. Your job is to lead them to that conclusion by having them draw the dots and having them answer questions about what they see.

Another Tip: Showing Buyers Opportunity Show buyers that houses priced right are selling FAST. 1. Access the MLS and pull properties that sold in under 30 days in the desired market areas. 2. In green marker, record the # of days on market and highlight the price.

Myth Buster: All Buyers Afraid Do you have any other ideas for how we can bust this myth and break through to our buyers?

Current Real Estate Myths Here is the third real estate myth for us to bust: § It’s hard to get a mortgage. Have you heard from customers that it’s a great time to buy, but not to get a mortgage?

Myth Buster: Getting a Mortgage § Why does this myth exist? § What factors contribute to it’s perpetuation? § Is it indeed a myth, or is there a measure of truth in it? § What can we do to dispel this myth?

Myth Buster: Getting a Mortgage Recent facts can dispel the myth that it’s hard to get a mortgage: 1. 93% of U. S. buyers who financed their home purchase between July 2007 and June 2008 were not rejected by any lenders. * 2. At Weichert, we qualify 9 out of 10 people who come to us for a mortgage. ** *Source: NJAR 2008 Profile of NJ Home Buyers and Sellers **Based on credit approval guarantees submitted to WFS between January 2008 and August 2008.

Myth Buster: Getting a Mortgage “I hear and I forget; I see and I remember; I do and I understand. ” Q: How can you change buyer’s perceptions so they see for themselves that they really can get a mortgage? A: Introduce your buyers to your GSM to get preapproved.

Myth Buster: Getting a Mortgage Here’s an opportunity for you to bust that myth even further – and get referrals by doing so: 1. When your buyer gets pre-approved for a mortgage, congratulate them. 2. Give them your business cards. 3. Say, “When you tell your friends and family that you got a mortgage – even in this economy give them my card and tell them I can help them, too. ”

Myth Buster: Getting a Mortgage Do you have any other ideas for how we can bust this myth?

Busted: 3 Real Estate Myths We dispelled three real estate myths today so you can break through the negativity and make your own market: 1. Houses are not selling. 2. All buyers are afraid to buy because of the economy. 3. It’s hard to get a mortgage.

Did You Jot Down These Tips? 1. Advertise your success – put up the SOLD sign and take a picture of your buyers. Frame that picture and give as a gift to your buyers. Ask for a referral. 2. Call the neighbors to tell them you sold the house. 3. Start with SOLD and bring a rider on your next listing appointment. “Hold onto this. You’ll need it soon. ” 4. Use the “V” tool to engage your buyers and help them discover the “buying zone. ”

Did You Jot Down These Tips? 5. Show buyers the opportunity and what’s actually selling in under 30 days in the market area. 6. Use facts to show that mortgages are not hard to get. 7. Put your buyers in front of your GSM so they can get pre-approved for a mortgage. 8. Once they’re pre-approved, congratulate them and ask for referrals.

Take Action NOW q Take an affirmative action NOW and purchase three frames for your buyer/SOLD sign photo. q Get your SOLD stickers ready. Bring to your next listing appointment and your next walk-through. q Try the “V” Tool with a buyer you’re struggling with. Call your buyer and schedule a meeting. q At next week’s Make Your Market session, share how these tips and ideas worked for you!

Next Make Your Market Session At our next session we’ll talk about exploring opportunities that exist within the lower-range market: § Find business opportunities within your Pure Gold list – even if they are not a candidate for the lower -range market § Discover new sales tools you can use to target lower-range buyers

Session 2: Moving the Lower. Range Market Day: [day of week] Time: [start time] – [end time] Location: [meeting location]