Hi folks, it seems like just yesterday that my business consisted mostly of listing properties for Mr. and Mrs. Regular Seller. I spent a lot of my time preparing print ads, brochures, virtual tours and making sure I got the properties disseminated throughout the Internet. When I wasn't doing these things I was busy arranging showings, negotiating deals, talking with my Sellers and fielding Buyer calls. Life was good. I was busy helping folks move up or move on. It felt good to help and everyone I had contact with seemed to be in good cheer.
Now those times are just a memory. The market has changed and so has my way of doing business. I jest with TLW in the mornings saying "I'm heading off to work to try and pull some money out of my &*%!"
But, I have to say..... I LOVE this new market! It has taken me a while to find my groove and I have had a couple of setbacks BUT things are really starting to come together. My entire focus has shifted. My new focus is now Short Sales, REOs(Bank Owned), Buyers and expanding my business.
Poinciana Florida Real Estate distressed Sellers and distressed properties make up over 80% of the closed transactions each month. To spend time and money looking for the very few Sellers that have equity and are able to sell makes no sense.
In fact, let's do the math, for the last 3 months there were 185 sales in Poinciana Florida. All but 36 were either REOs or Short Sales.
How could I possibly stay in business if my focus was getting a part of those 36 closings? Let me put a little more perspective on this. There are approximately 20,500 homes in Poinciana. Mr. and Mrs. Average Seller are accounting for 12 sales a month. Finding one of these Sellers to work with is literally like finding a needle in a haystack. It ain't happening.
Now on the other hand, depending on who you listen to, from 10% to 15% of the properties in Poinciana are in some stage of mortgage delinquency!!! Even if I used the 10% figure that means that 2,050 homes in Poinciana Florida will probably be either a REO or Short Sale in the near future.
Folks, I would have to be a fool to not concentrate my efforts on this part of the market. Short Sales may be frustrating and REOs may be difficult to get BUT, unless I want to spend my days driving Buyers around looking at $80,000 properties, I best become an expert in these areas. And I will.
So........over the next few months and for several years to come I plan on having tons of distressed property listings. Which also means......I'm going to have to expand my business by hiring REALTORS® to handle all of the Buyers these listings will generate. I've conveniently placed a link down there if you are interested.
My plan is in motion and the stage has been set for a GREAT 2009!!!
OK, I wrote this post just to show you my thought process and to hopefully get you thinking about your market conditions and your future. If you are just waiting for the market to get back to "normal" you will fail. The old market is gone. What we are experiencing now is.......NORMAL! What say you?
POINCIANA FLORIDA REAL ESTATE SHORT SALE INFORMATION
POINCIANA FLORIDA REAL ESTATE MARKET REPORTS
CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES
MORE INFO FROM BROKER BRYANT... THE SOURCE FOR POINCIANA REAL ESTATE
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Reserved Parking For "The Lovely Wife"...TLW...ROAR!
Blog Boy...
Well done my love. The only missing is the video of you actually pulling money out of your $*%. That's a video waiting to happen. Where there's a will, there's a way. We've proven that to ourselves a gazillion times in our lifetime :)
P.S. Have we lived long enough to use the gazillion?
TLW...ROAR!
The true professional becomes the expert in the field and expands their market offerings...... In other words there is a bigger piece of pie out there for those that are hungry and are willing to work at it
I'd like to see that video. TLW can you pull that off for us <gg>!
Bryant,
At least you see the light at the end of the tunnel. Most agents don't. The listings, even up here in New York, is primarily people with mortgage or credit problems.
It is up to us to realign ourselves to be able to assist them and therefore pick-up that end of the business. Train, implement and sell. Good Luck.
Woo Hooo, finally something positive ! No-one is my house is allowed to turn on the news anymore or bring home the newspaper !!!! Sick of all the media frenzy. 2009 IS going to be an awesome year ! See you on the fast track to success ! Hope you and TLW are doing well and that she is feeling better.
TLW - I am not you, therefor I cannot roar, ( I would like to keep my face in tact and of course your guns in the closet, lol ) however I wrote a post that I think you could appreciate, do you think you could roar for me.
While many agents in our area have been lamenting a lack of business or resting on "history" some of us have been out in the trenches making a good living.
You gotta keep on keeping on.
Thanks
Rich
Charlotte NC
Who moved my cheese? Great Book!
Anyway, you have to be flexible and ride where the wave is taking you. If short sales are the business for now, go with it.
Melissa...
I hear you roaring. I shall be there shortly.
Monika...
As soon as I figure out how to produce it with a PG rating....You'll be the first to know :)
TLW...ROAR!
Well BB I hope you continue to thrive under your new plan. Buyers and BB did not use to go hand in hand:)
BB - When the tough gets going you'll excel because you "paying it forward"
Broker Bryant, My Mantra now is "You have to change with the times." It seems many of us are doing that these days.
BB - congratulations on following your cheese and moving the box. Follow the money, as they say.
I'm so glad things are beginning to turn around and normalize - its a good sign! :-)
BB - Congratulations on making the shift, you are a true business person so you studied the market and proceeded to do what was necessary. Best wishes
BB,
Thank you, thank you for sharing with your fellow REALTORS how you have changed your business model to accomdate your market and you forsee that your new strategy is the reality for awhile....'til you have to reinvent again.
I think this is really the heart of the matter. Too many waiting it out, getting what they can, waiting for the market to "get back to normal"...what is normal? Normal is now.
Adapt or Vanquish.
Yeah, I guess normal is what it is now. I need to start focusing on the short sales for sure.
Excellent. You analyzed the market and what needed to be done, and made the adjustments you needed to be successful. Gratz! =)
BB- Way to go! You could have resisted change! Instead, you embraced it! Congratulations!
Each year Ifind out the new normal if its not getting rid of print ads,doing blogging, worrying about my web placement its talking to a seller about lowering the price. If we don't change we will be history.
BB You are awesome! Thanks for this post.
BB is going to find new cheese!
Great thought Process, I strongly believe that you could sell a home right in a middle of a hurricane. Your very positive and a straight shooter. Love the vids by the way, Funny.
Cheers!
Best to you and yours
Wow! At first you had me thinking your market was really back to the old normal. Good for you for making the change to the new normal. I am working in that direction also. Best wishes and thanks for the flashback!
BB,
I kept telling people that that other market was just a fake inflated one...true there were some that did well but moat of the problems were from the other. Now we should be aware that this market is really what it should have been all along...maybe not as fruitful as it once was but like I said that should have never been. I'd like to see HO's get between 3-8% in return but you have to wait and it should be yearly...not daily:)
I am avoiding short sales like the plague. REOs I am not so sure about either, they are driving me bonkers. This is one of those do or die moments in one's re career. I have been doing many things to keep afloat and I hope you can find that perfect combo to make it work too !
I am glad to see that things are getting "normal" for you. Until about a year ago, I absolutely detested short sales. I have found that it is much easier just to delgate all the short sale work to a full-time agent, and let them deal with all the work and in return they get a big chunk of the action from our firm's advertising and publicity. It's definitely a time to be changing your business model to position yourself for when the economy does finally stabalize itself.
Another good book on expanding your business is "The Millionaire Real Estate Agent" by Gary Keller. Lots of good ideas.
Your plan sounds positive and I bet it will turn everything around for you. I know one thing...even here....I am focusing on whatever comes my way...buyers /sellers...makes no matter. Our sales are down 50%...funny though...mine is slightly up from last year. Go figure.
BB- great way of looking at the situation that we are in. I am sure your 2009 plan will be a huge success. I'm working on my 09 plan and will have it completed shortly. I expect 09 to be a great year for me here in Tacoma!
Best,
Scott
BB,
Thanks for a great post. REOs, SS, and distressed properties is something I have been thinking of getting more into. Just by seeing your figures it makes a lot of sense to move at least a portion of your budget to marketing and seeking out these type of properties.
Hey guys. Thanks for all the comments. It's been a little hectic around Tutas Towne Realty today so my apologies for being such a bad blog hist...AGAIN!!! I just can't seen to find the time anymore. BUT.....as always I have read each and every comment and will answer any questions when posed. I hope you guys are working hard and making tons of money!!!
Goodness. How did I miss this. I've been busy, busy.
I haven't changed my practice that much, except to spend more time looking for new home buyers for myself and fortunately I sold one this week and have a contract appt. on the 30th for another.
Successful agents or brokers will take notice of the market and adjust accordingly.
Good evening, I've found that while residential sales may sometimes be slow, residentail leasing and commercial sales and leasing seem to be moving as well as rehabs for flippers in this area. Simply of matter of readjusting yourself to what the market is doing.
Thanks for outlining how you are changing to meld with your market, Bryant. Always good to see a positive outline in these challenging times!
Normal is wherever the market has changed to be...normal is constantly moving...it doesn't take long either for what you thought was normal to be abnormal anymore...you gotta change with the times...
Is great that you have a plan and have adapted to what is working ! That makes the most sense and obviously will lead to more production and income : ) It is that willingness to expand and adjust that seperates the "normal" agent and the producer too : )
Bryant - Yep, REO's are where its at in my market. I'm trying to get the listings, but I'll take representing the buyers as well. I'm definitely putting in the time and trying to grab some of that pie. You're oh so right when you say that this is the new normal. I couldn't agree with you more.
Bryant,
Thanks for the post. Normal in my market is short sales and from the looks of it, they'll be here for awhile.