mind over market

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


Perspective on the Market How’s Your Market?

» People always need to buy or sell » Markets always shift over time—cyclical nature» Change = opportunity

Pages 7-9


Perspective on the Market (continued)

The Law of Supply and Demand» Demand exceeds supply—high prices» Supply exceeds demand—low prices

Page 9



Page 10



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

Page 11



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

Page 12



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

Page 12



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?

Page 14



What Impacts Affordability and Availability?

Macro (National) factorsEconomic growth

InflationInterest rates

Metro (City) factorsPopulation

EmploymentHousehold income

Micro (Local) factorsNeighborhood dynamics

Property conditionsHome prices

Page 14



What’s Your Affordability Index?

What’s the median income?

What’s the median home price?

What’s the affordability index?

Page 15



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

Pages 16-17



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

Page 17


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

Page 18


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.

Page 19



2. Up Markets = Proactive and Reactive Lead Generation

BUT, in down markets only proactive lead generation works!

Page 20



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



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



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

Page 21



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

Page 21



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

Page 22



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.

Pages 23-24



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.

Page 24



Gain Market Share in a Slowing Market» Maintaining your volume = increasing your

share

Page 25



Gain Volume in a Growing Market» Maintaining market share = increasing volume

Page 26


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

Page 27


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

Page 28


What improvement would benefit you the most?

Page 29




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.

Pages 29-30



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.

Pages 31-34



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.

Page 35


What are your market numbers?Homes on market

Homes sold

Homes pending

Expired listings

Days on market

Average list price

Average sales price

Pages 35-36




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

Page 37



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.

Page 38



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.

Page 39



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.

Pages 40-41


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.

Page 42

Install Key Systems


Be Efficient and Effective!» Use tools from KWRI

• eAgentC for your website• Contact Management System (ProManage)• Calendar tools• Task lists and checklists

Page 43

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

Page 43



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.

Pages 44-49


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.

Pages 50-52


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!

Page 53


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.

Page 54


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!


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


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