- Turn it into a Marketing Advantage for your Real Estate Business

(ed: note that this pertains to those markets where the sales cycle has slowed and the inventory is 'up')

Perhaps the most common commentary on the market that I am getting these days, whether online (websites, blogs, emails), print (newspapers, editorials, magazines, interviews), or in person (consultations, coaching sessions, training classes, or just business lunch); is that Inventory is UP and Buyers are DOWN.

• There is a lack of 'urgency' in the market
• Buyers cannot get qualified to purchase 'like they used to be able to'
• Pricing has been damaged by the increase in foreclosures
• The holidays have taken real estate out of the focus in my market

Here's the point: This business of Real Estate is one of cycling markets. Up, down, and everywhere in between. National trends, regional and local 'micro' markets, and neighborhood whims will absolutely affect our ability to succeed as real estate agents and brokers on a daily basis.

So rather than simply commenting on how our current marketing approach is being proven ineffective on the street, successful and professional agents are adept at taking full advantage of *whatever* situation presents itself and 'riding' the market cycles, to their business advantage.

Sounds easy enough, right?

Ok, - so the question becomes: "What does this mean exactly and how does it pertain to my business today?"

If inventory is HIGH, then let's look at some key points pertinent to that situation:

• More agents have property listings, and more of them, than the market will absorb (given the state / ability / number of buyers)
• The typical agent/broker has more properties to MARKET than they do to SELL
• Marketing expense(s) can rise higher with no valid guarantee of return (marketing length/sales cycle is increasing)
• Sellers are looking to agents/brokers to more aggressively market their homes in the belief that if they 'do more' they'll reach the buyers that are able/willing to move forward

The key point here is that WE HAVE INVENTORY. In fact, just about any agent today can 'take a listing' - even if they haven't had success with sellers in previous market conditions.

By using this current market to your advantage, you can leverage that inventory as essentially 'free' marketing to assist you in Growing your Business, Building your Brand (personal or Brokerage), and Attracting more Customers (buyers, sellers, and investors).

The key to marketing is messaging - and that messaging is either something you create yourself, or something that your product/service (that which you market) creates in the 'mind' or view of your customer. In your case, that is Real Estate / Real Property.

When you have an inventory of property listings, think about this: what is the messaging that is created? The consumer is not inept - they understand that the market has slowed - it's broadcast to them repeatedly by the national and local media (foreclosure fallout, etc.). The fact that you have 'x' number of properties in your local market, neighborhood, price range, etc. says what to the consumer? It says you're the EXPERT. It says you are the Specialist. It says you are the Professional Agent (Broker) that knows the market (neighborhood, price range, etc.).

Remember what the TOP Agent in your local market place does: they MARKET the fact that they are 'Joe Blow, the Condo King of Kalamazoo', or 'Sally Subdivision - the #1 Agent in XYZ Heights'. As professional REALTORS, many of us get worried that high inventory=an inability to 'sell' homes. Remember - the consumer is not an agent, they are just desperately seeking gidance -- GIVE it to them!

Get it OUT of your head that having inventory means you can't sell properties, it's simply not true. Maintaining this as part of your belief system will hurt your business - your clients and potential clients will sense this and stay away from you.

Move confidently forward as the 'expert' and know that your inventory simply means you are securing market share over your competitors - After all, if there are any given number of potential buyers / investors interested in your market, then having the inventory to show them makes you the clear winner.

Now, onto the marketing side of things. While it can be true that carrying higher inventory can mean an increased marketing expense, there is a solution that the Top Marketers use every day (and I'll share it with you here). Again, remember that the consumer (read: seller this time) knows the market has slowed, so you want to take advantage of that in your messaging. Tell your sellers that buyers are more scarce and it is taking longer to sell today in their market/price range. Be specific, tell them everything, don't sugar-coat it thinking you're helping them or keeping them happy. Show them the stats, compare them to previous quarter, year, etc.
Once you've laid the 'cards on the table' you'll be well positioned to let them know that you have 'adjusted' your marketing plan accordingly. Here are some salient points to focus on that will keep marketing costs low and keep sellers' faith in you and hopes high:

• We have increased on online presence to reach a larger number of potential buyers and investors (since there are less buyers able to close due to the changes in lending, etc.)
• We are shifting to a tiered-approach with our print and electronic media marketing (meaning that you won't be paying for high-priced print ads to reach the 'few' buyers in the short-term, since the listing will be on the market for a longer duration).
• We are leveraging the advertising to bring in multiple offers (for example, we now see agents/brokers leveraging the 'free' or less expensive online marketing until the first offer(s) come in, and then adding weekend print advertising to bring in more contracts)
• We are able to attract more buyers due to our current inventory of fine homes (in ______) and will find work to find the perfect buyer for your fine home (property).

You can see the shift in the mindset here - leverage your inventory as your marketing ASSET. In fact, did you realize that by having more properties listed your Agent Name, Contact Information, Brokerage, Email Address, Phone Number and Key Messaging are exposed exponentially greater than with a single listing? Use this to your advantage! Search Engines, Property Search Sites (Like MyREALTY.com), Listing Services, etc. all spend Millions of dollars to market your properties - and YOUR CONTACT INFO - at least the good ones do. Use this to your advantage today!

Change your Mindset.

Leverage the increased Marketing you get with increased inventory.

Communicate Clearly and Truthfully with your Sellers.

Run your real estate race up over the hills and down through the valleys - and if you need any help, please remember to let me know what I can do to help YOU grow your business!!

Best to You!

-Tim!

Tim Mancuso - Director Global Sales, MyREALTY.com

Home of the GLS - the Global Listing Service (which, by the way is a great FREE way to market your properties, your contact information, your business, - and your story.)

tmancuso@MyREALTY.com

Register now (free): http://www.3freezips.com/

My friends just found what they believe is the FSBO deal of the century. It's a big home, probably six bedrooms and four bathrooms. It's in a pleasant, well-groomed neighborhood with homes ranging from 500-600 grand. The houses could best be described as McMansions. You might have heard of these massive shelters that fall somewhere between practical and ostentatious, well-built and shoddy. Their big selling points are, typically, granite counter tops.

The one they want to buy is selling for about $150,000 less than the areas comparable sales. It seems like one heck of a deal, or so we all thought, until their buyer's agent told them that they didn't need to be present at the inspection. She said it in such a way as to convey convenience. In a "Oh, don't worry, you go get some expensive coffee and we'll take care of it" kind of way.

I didn't know about this until they showed up at our house with Starbucks. I asked them what they were up to and they said they were waiting for their home inspection to finish. I told them I hoped the technical, structural and overall integral overview of the BIGGEST INVESTMENT THEY'VE EVER MADE included a twenty-minute recess, because they needed to be with the inspector at the inspection of the Jenga stack of sticks and bricks they were about to pour $420,000 dollars into.

Nope. They were following their agent's advice. I told them if they really wanted to part with their hard-earned money on a potentially very bad investment they could just buy me at 52-inch flat screen and a lifetime supply of Pabst Blue Ribbon. BECAUSE HERE'S THE DEAL FOLKS...never, I MEAN NEVER EVER, ditch the inspection. Yah, sure you can, if you want, and if you're a money masochist. Then sure.

When you are at the inspection of the home--you know, the roof you hope will provide shelter from the elements and such--you get to ask questions about it's durability and even learn important things like if it will electrocute you when you pee barefoot. Another reason to attend the inspection is to find angles for negotiation. The furnace needs updated? The windows are old? Well now you can go back to the seller and get an even better deal. Or you can make the sale contingent on the replacement of these items. Yet another option is having the home's purveyor throw in a home warranty that covers all the appliances. These benefits can all come out of an inspection.

Yes, it's true, you will get an inspection report that explains the same things, but when you're with a certified National Association of Home Inspectors inspector, you can ask this valuable source of information questions face to face. And once you've closed and in the home you'll be standing over an overflowing toilet wishing you had.

So no matter what you're buying, an old Victorian or a brand new build, find an experienced NAHI inspector and spend as much time as possible with him or her.

And have you're real estate agent bring the coffee.

Today's real estate agents and brokers have a higher calling.

How many times have you straightened your tie or put on that little, black dress when you'd rather throw on some sweats and veg in front of the tube? But you did it. You took a deep breath and left another lazy evening in the almighty name of Networking. Everywhere you go, anything you do, you comfort yourself by saying, "It's great networking." You could end up in prison and still make good use of the time.

But you know what? You're lucky. Really. You've killed entire Saturdays shopping for little cocktail wieners and frosting cupcakes just so you can eat most of them by yourself at a slow open house. Thank goodness for veggie trays or you'd be on your way to an early grave. Yet there's a side to networking that has everybody else in every other field wishing they were you. Everyone yearns to get out of the house, or flee the office, and actually be part of the community . But they're too busy at work. You do it everyday, and it's part of your job.

Now I'm going to use a phrase that will make you a bit nauseous. You'll hear it a lot in this fevered political season. Here we go..."Now more than ever." yep. Now more than ever you need to market yourself, and even more importantly, now more than ever our communities need people to get involved. The shift manager at the local superstore might help with the little league, but it's not part of her job. As a Realtor or unaffiliated real estate agent you are at kid carnivals and fund raisers. You weed the community garden and wax nostalgic at county fairs.

You don't have to do it all. Find a couple good causes to fit into your routine. Walk a 5k for cancer or just to pick up litter. You'll stay in shape, you'll clear your head and...you'll be networking. But you already know that.

You might think it grossly cynical to look at volunteering as just an opportunity to increase your bottom line, but we're way past that. People donate so they can get a write-off. If you call right now PBS will send Suze Orman to balance your checkbook. And everyone knows that once you're out there, whether wiping the neighbor kid's nose at a soccer game or getting hit on by a someone older than your grandfather at an Elk's Club cake walk, you're there because you love the people. You thrive on the social experience. If you didn't then you would have never bothered getting in this hectic business.

So look yourself in the mirror, toss the lint brush on the bed and get out there. You may be out for a night of networking, but you're doing a world of good.