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Welcome to RealClues
The Twice Monthly Newsletter for Real Estate Professionals
7% of the Agents Conduct 93% of the Business—the Rest Don't Have Coaches!™ www.RealEstateCoach.com.
Friday April 4, 2003 No. 75
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Copyright (c) 1996-2003, www.RealEstateCoach.com and Teleclass4U.com, LLC All rights in all media reserved.

We have a no SPAM policy. If you received this newsletter and did not subscribe to it, visit www.RealEstateCoach.com to unsubscribe.

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Table of Contents
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1. CoachingClues: "Profiting When the Market Turns South"
2. Welcome Notes: "New Web Site is On-line!"
3. BizClues: "Assist Your Business with Virtual Assistance!"
4. Reprise: "Bump the Slumps!"
5. Upcoming Teleclasses
6. Give Us Your Feedback on this Newsletter
7. How to Subscribe/Unsubscribe

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1. CoachingClues
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Coaching Clues "Profiting When the Market Turns South "
by Bernice Ross, MCC

Are you ready to cope with more competition for fewer transactions? Shifting your strategy now can keep you in cash while your competition scrounges for pennies.

Like the stock market, real estate is cyclical. Given the costs of the war with Iraq, there is a high probability the government will finance part of its cost through increased borrowing in the form of government bonds and Treasury securities. While this is great news if you have money in the bank, it may be very bad news for those of us in the real estate industry. If the government competes for a limited amount of investment money, this normally drives up interest rates. I've personally experienced the real estate crashes in 1980 and 1990, and each time, as rates increased, we shifted from being in strong seller's market to very difficult buyers' market. In case you're not familiar with what this will do to your business, here's a brief synopsis.

The best of all markets is a flat or even market. Here you have a balance between available listings and available buyers. Prices are stable. A seller's market occurs when you have too many buyers and not enough inventory. This drives prices up. In contrast, a buyer's market is the hardest type of market in which to make money because there are too many listings and too few buyers. This causes downward pressure on the prices. Given the current state of affairs, there is a high probability many places in the country will soon be experiencing a strong buyer's market.

Instead of being ambushed by an unexpected change, here are several strategic adjustments to make to keep you profitable when the market turns south.

1. Master market statistics. Are prices in your marketplace going up or down? How many months of inventory are currently on the market in each of your service areas? Commercial brokers can clearly describe exactly how many months of inventory are on the market, price per foot statistics, as well as what percentage prices have increased or decreased in the last 6-12 months. Unfortunately, most residential agents simply are unable to calculate and use these numbers to obtain realistic listing prices. Being able to explain "what the numbers mean" to your buyers and sellers is the most critical skill needed to survive during a changing or down market.

2. Back to Basics! I made great money in the 1991-92 down turn because I developed a niche representing foreclosure properties and could clearly show sellers how much they were losing each month by holding on to their property. In a down market, knowing the fundamentals is critical to survival.

3. Upgrade your technology skills. Like it or not, organizations like Yahoo, MSN, and other web based real estate companies are whittling away at the market share of "traditional" agents. Couple this with a market downturn, there will be even fewer opportunities for "traditional transactions." If you haven't implemented call capture technology in your advertising, a web site that actually generates leads, or joined a web referral service such as www.Homegain.com, you may have significantly fewer closed transactions in 2003 than you did in 2001 and 2002.

4. Be willing to quickly adapt as the market changes. For example, if you've been in a Sellers' market and listings stop selling, stop prospecting for new listings. Instead, focus on obtaining buyers by holding more open houses, working with people or companies who are relocating, and working with a "niche" such as "newly married" (or going through a divorce.) The objective is to work with individuals who have the highest probability of buying.

5. Prospect for first time buyers. In most down markets, the last segment to feel the impact is the first time buyer market. The best way to locate first time buyers is to prospect high-end rental apartments and rented houses for potential buyers. These individuals have nothing to sell and hence, are easier to "take to the bank."

6. Watch the sales board. If a certain area in your marketplace is significantly more active than others, prospect for listings and hold open houses (even if they aren't your listings) in that area. The goal is to focus your efforts on areas experiencing the greatest number of closed transactions.

7. Be even more diligent in working your sphere of influence. Since solid referrals are more difficult to obtain, regular contact with your sphere maximizes the probability you'll receive the referral rather than someone else.

8. Be a fanatic about lead follow-up. When market conditions are lousy, you can't afford to let viable leads slip through your fingers.

Remember, the key to surviving a down market is to carefully choose where you spend your time and money. By watching what's selling, shifting your strategy as needed, and remembering to keep focused on the fundamentals, you'll keep your income steady and strong no matter what the market does.

If you're having a challenge in this area, please Email us at coach@RealEstateCoach.com to arrange for a complimentary coaching appointment with our wonderful team of coaches.

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2. Welcome Notes
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Welcome to our new subscribers this week. Twice monthly RealClues provides you with coaching tips and upcoming teleclasses to improve the quality of your both your business and your life. If you find this issue of RealClues helpful, would you take a moment to hit the "forward" button and send it to another friend in the business?

Six months later than we anticipated, we have just launched the most innovative, comprehensive training the real estate industry has ever seen. Whether you want the best of the traditional approaches to the industry or the latest, most cutting edge resources you have ever experienced, RealEstateCoach.com IS the place to find everything you need to be wildly successful in this business. Watch for our special offers, free product demonstrations, and a host of other great resources all coming this month!

Have a great week!

Warmly, Bernice Ross, MCC, and Byron Van Arsdale, MCC www.RealEstateCoach.com, www.Teleclass4U.com and www.TeleconferenceLine.com

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3. BizClues: "Assist Your Business with Virtual Assistance!"
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Struggling to increase your production? Terrified about what it takes to create a great web site? Don't have the time to follow up on all of your leads? Can't afford a full time assistant but still want to increase your production? If you answered "yes" to any of these questions, then consider doing what we did at RealEstateCoach.com—Hire a Virtual Assistant!!

You already know about real estate assistants, but are you familiar with a "virtual assistance"? As far as we're concerned, our "VA" (virtual assistant) Shane Bowlin pretty much walks on water. Shane has worked with us since 1999. She oversees the administration of our three web-based businesses, publishes our ten monthly E-newsletters, updates us with ideas and innovations that give us a competitive edge, and keeps us focused on what's most important to our business.

VA's are well-trained support professionals who work as independent contractors from their own office and provide a host of customized services. Although their services may seem a little expensive at first ($35.00-50.00) per hour, the level of expertise they bring to the job is well worth it. Even better, you're only charged for the time you use. Because VAs are independent contractors, you don't have to worry about workman's comp or any other the other challenges you face when you hire a traditional "employee" assistant to work in your office.

What types of services can you expect from your VA? Since VAs are not usually licensed, they will not be able to show property or attend closings. Where a great VA shines, however, is in keeping you in front of buyers and sellers while they attend to the chores you hate to do. Here's a list of just some of the things a VA can do for your business.

1. Put together and publish your Email Newsletter
2. Post your new listings to the web including setting up your virtual tours.
3. Keep your web site up-to-date and respond to web inquiries.
4. Set up the autoresponders on your web site so you can be more efficient in responding to web leads.
5. Conduct lead follow-up and help you stay in touch regularly with your referral database. Most VAs have no problem tracking hundreds (even thousands) of people in your database.
6. Handle your bookkeeping including evaluating which aspects of your business are profitable and which aspects are losing money. Shane recently spotted where we were bleeding money on web site fees. After researching several alternatives, she arranged for us to move somewhere less expensive that offers better service.
7. Keep you abreast of the latest trends and ideas on the web to give you a competitive edge against other agents.
8. Oversee your transactions.
9. Set up appointments.
10. Coordinate inspectors, repair people, and closings.
11. Be a resource in solving your problems. The best VAs belong to organizations such as the International Virtual Assistance Association (IVAA) www.ivaa.org or www.AssistU.com. When one of them has a challenge and doesn't know where to find the answer, they put it out to the group. Instead of one person helping to solve your problem, you literally have access to hundreds.

To learn more about Virtual Assistance, http://www.AssistU.com or www.ivaa.org.

If you are considering hiring a VA, the first step is to place a "RFP" (request for proposal) at http://www.AssistU.com or www.ivaa.org. Your RFP should include all the tasks you want the VA to handle. It's smart to rank order what you hate to do the most and would like the VA to handle.

Once you complete your RFP, it will be mailed to all active VA's currently taking clients. Those who feel they meet your criteria will Email you back. Then, you interview the VA and the VA will also interview you to see if you are a good fit for each other.

The next thing you will have to decide is whether or not you want to work with a retainer. Many VAs will give you a price break if you guarantee a minimum number of hours per month.

If you're concerned about the cost or are nervous about delegating activities, start slowly. Your VA is actually trained how to coach you to work best with them. In most cases, your VA is ready to take over what you hate long before you're ready to let go of it.

As you let go of all those headaches (your VA usually is very good at doing what you absolutely hate to do), don't be surprised at how this investment reaps rewards much greater than you could have ever anticipated!

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4. Reprise: "Bump the Slumps "
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Already in a slump because your market has already turned south? If so, this article can help you "bump the slumps!"

http://www.realestatecoach.com/articles_archive/art20020211.html

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5. Upcoming Teleclasses
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Class registration information is available on our sister Web site http://www.Teleclass4U.com.

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6. 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 Ideas@RealEstateCoach.com.

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

If you enjoy RealClues, you may also want to subscribe to our free coaching newsletter, TeleClues4U. For subscription information, please visit our web site at www.Teleclass4U.com and click on "free newsletter" in the navigation bar.

Copyright (c) 1996-2003, 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 week's newsletter:
Bernice Ross, MCC, and Byron Van Arsdale, MCC, Owners, www.RealEstateCoach.com, www.Teleclass4U.com and www.TeleconferenceLine.com Shane Bowlin, REC General Manager

Looking for a well-trained coach who knows the real estate business? RealEstateCoach.com has over 18 excellent coaches to choose from. Send an e-mail to IWantACoach@RealEstateCoach.com and we'll help find the right coach for you.

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