mind over market
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This is a presentation about understanding your marketTRANSCRIPT
REVISED EDITION
Becoming an Opportunity Warrior
An Agent’s Guide toGaining Mind Over Market
Breakthrough to Mastery
2An Agent’s Guide to Gaining Mind over Market
Gaining Mind Over MarketMain Ideas1. Perspective on the Market2. Opportunity Mindset3. Master Your Skills4. Install Key Systems5. Get in the Game
3An Agent’s Guide to Gaining Mind over Market
Perspective on the Market How’s Your Market?
» People always need to buy or sell » Markets always shift over time—cyclical nature» Change = opportunity
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4An Agent’s Guide to Gaining Mind over Market
Perspective on the Market (continued)
The Law of Supply and Demand» Demand exceeds supply—high prices» Supply exceeds demand—low prices
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5An Agent’s Guide to Gaining Mind over Market
Perspective on the Market (continued)
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6An Agent’s Guide to Gaining Mind over Market
Perspective on the Market (continued)
Other Factors Signal Market Change—Inventory
Inventory as a Measure of the MarketSellers’ Market Less than 5 months’
inventoryBalanced Market 5-7 months’ inventoryBuyers’ Market More than 7 months’
inventory
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Perspective on the Market (continued)
Other Factors—Affordability Index» Measure of financial ability to buy» Index of 100 = median income family can afford median
priced home» Higher index over 100 = greater affordability
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Perspective on the Market (continued)
Affordability for Austin, TX
Median income $69,300
Median home price $182,500
Mortgage amount (after 20% down)
$146,000
Required income (25% of $146,000)
$36,500
Affordability Index ($69,300/$36,500 X 100)
190
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Perspective on the Market (continued)
Three Ways to Close the Affordability “Gap”» Lower home prices» Increased borrowing power (lower rates, more
options)» Increased income
What factors can an agent control?
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Perspective on the Market (continued)
What Impacts Affordability and Availability?
Macro (National) factorsEconomic growth
InflationInterest rates
Metro (City) factorsPopulation
EmploymentHousehold income
Micro (Local) factorsNeighborhood dynamics
Property conditionsHome prices
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Perspective on the Market (continued)
What’s Your Affordability Index?
What’s the median income?
What’s the median home price?
What’s the affordability index?
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12An Agent’s Guide to Gaining Mind over Market
Perspective on the Market (continued)
What Are Buyers and Sellers Thinking?» Role of media» Seller beliefs
• Inflated sense of value• Can’t sell for what they need or want• Can sell “as is” without improvements• Marketing and open house will sell• Can’t afford payment = lose home to foreclosure
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13An Agent’s Guide to Gaining Mind over Market
Perspective on the Market (continued)
What Are Buyers and Sellers Thinking?» Buyer beliefs
• Values may continue to go down• Plenty of time to look and buy• Seller will take almost any offer• Wait for more homes to come on market• May not be able to get a loan• Great time to invest in real estate
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Opportunity Mindset Six Truths About Markets From When Markets Shift by Gary Keller
» A paper written right after 9/11/2001» Guidance still relevant in today’s environment
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Opportunity Mindset (continued)
1. Markets Shift—It’s a Way of Life» Markets are always in transition.» Myth: Market determines your success.» People buy and sell in all markets.» Down markets tend to have fewer great deals
—and those that are, sell faster.
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Opportunity Mindset (continued)
2. Up Markets = Proactive and Reactive Lead Generation
BUT, in down markets only proactive lead generation works!
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Opportunity Mindset (continued)
3. Market Shift = New Strategies Required» Adopt opportunity mindset.» Seek only motivated buyers and sellers.» Price ahead of market—do not chase market.» Make condition of listings stand out.» Motivate buyers with sense of urgency.» Qualify and convert leads quickly.
Continued
Pages 20-21
18An Agent’s Guide to Gaining Mind over Market
Opportunity Mindset (continued)
3. Market Shift = New Strategies Required » Catch and convert leads on the Web.» Bulletproof your transactions all the way to
closing.» Find out where market is and get in it.» Do more with less—expenses, services,
people.» Learn alternative financing options.
Pages 20-21
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Opportunity Mindset (continued)
4. The Theory of Equilibrium» Sellers’ market = agent count increase» Buyers’ market = agent count decrease» Big opportunity for those with stamina, skill,
and adapted, improved business practices
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20An Agent’s Guide to Gaining Mind over Market
Opportunity Mindset (continued)
5. When Markets Shift Downward, Time to Reach Equilibrium Is Unknown
» Myth: Wait it out, it will be over soon.» Truth: Face the market, adapt as needed.
• Commitment• Consistency• Reduced expenses
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Opportunity Mindset (continued)
6. In a Down Shift, It’s “All Hands On Deck” Time
» Prospecting» Converting to appointments and contracts» Cost control» Negotiation» Transaction bulletproofing» Customer service
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Opportunity Mindset (continued)
Your Role as Opportunity Warrior» Have a plan and know what you should be
doing at all times.» Know your strengths, leverage them, and
execute.» Delegate tasks you do less well.
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Opportunity Mindset (continued)
Opportunity Warrior Affirmations» I’m an opportunist and this is an opportunity.» I’m a market maker and will create my own market in
these conditions.» I’m able,ready, and willing.» I’m a knowledgeable real estate consultant.» I understand the big picture.» I’m a professional guiding clients through the process.» Sellers need me more than ever to get a sale.» Buyers need me more than ever to get the best price.
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Opportunity Mindset (continued)
Gain Market Share in a Slowing Market» Maintaining your volume = increasing your
share
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Opportunity Mindset (continued)
Gain Volume in a Growing Market» Maintaining market share = increasing volume
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Master Your Skills Focus on the Basics
1. Assess and look for ways to improve2. Keep up your education3. Know the market4. Be a great communicator5. Lead generate 3 hours a day6. Consult sellers on pricing7. Motivate buyers to buy8. Convert leads to appointments
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Master Your Skills (continued)
Assess Your Skills» Know your market» Prospect» Try new sources for leads» Know scripts» Make offers to generate responses» Have clear, concise USP
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What improvement would benefit you the most?
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Master Your Skills (continued)
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Master Your Skills (continued)
Keep Up With Your Education» Be a lifelong learner.» Become a teacher, coach or mentor.» When you cut expenses, don’t cut education.» Use education to plug in and grow.
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Master Your Skills (continued)
Be a Student of the Market» This is an everyday commitment.» Data is your friend—know where to find it.» Know both the national and local statistics—use
graphics to share what you know.» Know the best buys.» Know all homes’ statuses in proximity to your
listings.
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Master Your Skills (continued)
Be the Media—Become a Spokesperson, Speaker, and Resource» Write articles.» Speak at town meetings.» Speak to business, volunteer and other
organizations.» Put updated, insightful content on your website.» Start a blog.
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What are your market numbers?Homes on market
Homes sold
Homes pending
Expired listings
Days on market
Average list price
Average sales price
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Master Your Skills (continued)
33An Agent’s Guide to Gaining Mind over Market
Master Your Skills (continued)
Be a Great Communicator» Seek first to understand—ask, listen, and
validate what your understanding is.» Study and practice scripts.» Leverage script knowledge through
conversational skills.» Communicate with your clients faithfully,
relieving their stress—and yours.Continued
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Master Your Skills (continued)
Be a Great Communicator » Remessaging
• Evaluate every message you are putting out.– Are your messages driving prospects to you?
• For sellers (time to sell, % of list price)• For buyers (best buys, foreclosures, free searches)• Use web domain names that attract an audience.
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Master Your Skills (continued)
Talk Competently About Pricing with Sellers» Know the market facts.» Be truthful, then test their understanding of what
you’ve said.» Use the bottom line or net approach.» Let them vent their emotions—remain calm.» Discuss financing options that might be offered
to buyers.
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Master Your Skills (continued)
Motivate Buyers to Buy» Make offers that generate immediate response.» Understand and overcome fear with scripts.» Educate them about the opportunities.
Lead Generate 3 Hours a Day!» See Lead Generation 36:12:3 and An Agent’s
Guide to Upshifting Your Lead Generation.
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Be Efficient and Effective!» Review everything you do with a critical eye.» Focus on your 20% activities.
• See Lead Generation 36:12:3, Introduction: The Power of One.
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Install Key Systems
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Be Efficient and Effective!» Use tools from KWRI
• eAgentC for your website• Contact Management System (ProManage)• Calendar tools• Task lists and checklists
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Install Key Systems (continued)
39An Agent’s Guide to Gaining Mind over Market
Install Key Systems (continued)
Be Efficient and Effective!» Rethink how you use and work with people.» Restructure as needed.» Increase accountability.
“Quit the wrong stuff. Stick with the right stuff. Have the guts to do one or the other.”
Seth Godin, The Dip
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Install Key Systems (continued)
Systematize Everything!» Lead Generation 36:12:3 describes “the 3 hour
habit”—do it!» Convert leads, follow up on everything.» Manage expenses, know all numbers, prioritize.» Leverage your people and a great vendor
support team.
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41An Agent’s Guide to Gaining Mind over Market
Get in the Game! Commit and don’t quit. Lay your foundation for growth in improving
markets. Have a game plan, and stick to it. Know your role, revamp it if necessary. Focus on dollar-productive activities.
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The Bottom Line Be an Opportunity Warrior—embrace the
market.» Accept the Law of Supply and Demand.» Understand and use local Affordability Index.» Become the media.» Master your skills (market, communication, lead
generation, conversion). Evaluate yourself on all challenges and
build your action plan now!
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Productivity Boosters Send Market Snapshot—feature of
ProManage/Top Producer—to prospects and customers
Track your lead generation efforts with ProManage.
Check out technology offerings from KW—eAgentC, etc.
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My Action Plan
Pages 55-56
Don’t put away this guide without developing a plan to put what you have learned into action!
Refer to the Action Plan in the back of your agent guide to assess your strengths and areas for improvement.
Write down steps you will take to improve your skills—complete it, share it, and commit to it!
45An Agent’s Guide to Gaining Mind over Market
Breakthrough to Mastery Agent Guide series
Gaining Mind over Market Upshifting Your Lead Generation Seller Pricing Strategies Seller Staging Strategies Lead Capture and Conversion Internet Lead Capture and Conversion Creating Urgency to Buy Bulletproofing Transactions Expense Management Effective People Leverage Short Sales, Foreclosures, and REOs Financing Solutions
46An Agent’s Guide to Gaining Mind over Market
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