Sad to say, the number of people trying to short sell their home to avoid mortgage default or foreclosure increases daily.  One may think a savvy real estate agent would look upon this situation as an opportunity to specialize in the short sell process, and garner a fair amount of business by doing so.  However, let’s take a look at the bigger picture…

The Short View on Short Sells

Basically, a short sale is a desperate measure for desperate times - for all parties involved.  The person selling their house is obviously in severe financial distress, and the lender is just looking for a way to cut their losses on a loan gone bad.  The sales prices on short sold properties are well below market value, requires a terribly complicated process, and the time involved for the deal to be completed is painfully long.  These factors combined have to make you wonder if the time you need to invest is worth the payoff.  Trying to make up for it though sheer volume will simply add the headache of tracking and maintaining all these deals to the heartache inherent in the situation.  In other words, it’s a lot of work and hassle for little return.  Wouldn’t it be better worth your time to focus on a niche that would garner less work and greater return?

The Long View Ain’t So Pretty Either

The realities of the short view on short sales aside, let’s take a look at the longer term view.  If you’re like most agents, a fairly decent percentage of business comes from either returning customers or referrals from happy clients.  Well, people who are forced to short sell their homes are neither happy, nor are they likely to be buying a home again for a long time given the hit their credit will take.

Also, although all prognostications say we have yet to hit the bottom of this mortgage crisis, the fact remains that it is ultimately a short-lived situation.  In a year or two, the market will level out again and a new normal will be established.  Short sells will be a beast of the past instead of the everyday occurrence they are now.  Where will that leave your niche, the specialty for which you are known?  You’d be coming’ up short, my friend! 

Primary vs. Secondary Niche

Now, all this is not to say you can’t glean some benefit from the current situation.  After all, most the people who have been backed into the short sell corner genuinely need the assistance of an experienced professional broker or agent to help them through this difficult time too.  There is no reason you should not be ready for the opportunity.  If you see enough value in short sells in your particular area, go ahead and develop short sales as a niche - BUT, do it as a secondary niche to your primary target market.  It would be a short-sighted mistake to rely on short sells as a long-term business strategy.

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Anyone who has listened to one of my speaking presentations, scanned any of my articles, or even read a few recent posts here on my blog will know what a HUGE proponent I am of defining your niche market.  It is the difference between being a Lemming - blindly following along with what everyone else is doing and falling to the same fate, as opposed to being a Lion - king of his territory, in control of his fate.  Of course, this is the super-premium, ideal (and entirely realistic) scenario for a real estate agent, but stop to consider the other side of the equation… the CUSTOMER.

Not all agents are entirely sure whether or not to believe me when I lay out not only the advantages to them for creating a niche, but also the step-by-step means by which to do it successfully.  Many are afraid that by “limiting themselves” to a specific type of customer or market need will result in actually losing all the other potential business which may be available out there.  Well, you know what they say about trying to be all things to all people, right?  It just doesn’t work, and there are really no exceptions to this rule especially now that the internet allows such broad access to literally all things.  But to get on with my point, I will spare you any further lecture on this particular topic.

What is my point about Niche Marketing?

Besides the benefit having the corner on a particular target market provides a broker or agent, it also provides an immense benefit, and hence irresistible draw, to the consumer.  Having a specialist to turn to, who can provide immediate access to the specific types of information required to cater their needs, is a 100% certain way to ensure a fiercely loyal customer.  When you find a doctor you trust, or a stylist that does your hair just right, or a restaurant that knows exactly how you like your steak prepared, do you abandon them at the first opportunity?  NO!  You return to the comfort and assurance that you will be taken the best care of possible.

An admirable demonstration of this point is presented by a REALTOR^® Frank Zedar…

Creating a Market for Heroes - of All Kinds

Frank, a long-time broker and Army Vietnam War veteran, created www.RealEstateForHeroes.com.  It is a no-strings attached program for all branches of military service (both active and retired), law enforcement, firefighters, paramedics, emergency response personnel, and - here’s the surprising part that really shouldn’t be… teachers and nurses!  Basically, Heroes of all kinds.  Frank works with them closely, knowing the areas, price ranges, financing programs, housing features, etc. each would be looking for, and not just among his own listings.  Then, upon closing, Frank turns around and hands 30% of his commission right back to the individual.  Think that builds a little bit of loyalty?  Yes, I would think so.  Think he gets enough referrals to more than make up for it?  You betcha.

Here’s the deal.  Frank has the personal experience and understanding to know what his niche’s needs are, and to provide them with essential options and answers.  Then, he extend the irresistible offer: a no restrictions, no requirements, here’s the check and it won’t bounce financial return.  But, the real key to it is, although he certainly enjoys the successes of Real Estate for Heroes, the reason he does it is because it is his PASSION.  Not just for the military heroes, but for the all the heroes of our society and community.  It is not a tax-break, he does not raise outside funds, it has nothing to do with his agency (RE/MAX Oceanside).  He just does it because he wants to.

So please, do a service for your Customers, become a Lion and find a suitable territory.  And, if you have already done or at least started to begin this leonine transformation, make sure you follow through with it by learning all you can and putting all the fresh ideas out there you can.  You AND your future clients will be so glad you did!

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Every now and then you hear something that makes you go “Hmmmm… Isn’t that the point?”  I had one of those moments not too long ago.  I was talking with a real estate office HR Manager about her agents’ reaction to the Online Dominance program, and if any other agents were getting curious yet.  She said one lady, who was a long-time agent, commented that it may be fine for those young bucks just starting out, but people like her who had been around for years just wouldn’t be able to pay for something like that, and besides, what could it have to teach HER?  She didn’t have time for it.

 Well, hmmmm… Isn’t that the point?  If you are working so hard and have so little time, and yet still have so little money to invest in yourself, are you really having a fulfilling career and life?  Isn’t it so frustrating when you work and work to offer people an opportunity, but they just completely miss the point?

 What are some experiences you have had where missed the point?  Or better yet, what are some ways you had success getting your point across?

 Well, this week’s Featured Article from Dr. Jay addresses “The Missing Links in Web Marketing”.  Be sure to read it so you don’t miss out!

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