Here's a tongue twister: If Sally sells short sales down by the sea shore how many sales will Sally sell short if Sally doesn't close any short sales?

Short sales are hard to make. It is a frustrating and demoralizing situation to work hard for long hours then not close the deal.

The truth is that short sales are going to be with us for a long time.

According to Dr. Ken Rosen, Chair of the Fisher Center, "Although there are signs of stability in new housing starts, existing home sales, and house prices, it will be a long, slow recovery of 3-4 years before we return to equilibrium conditions. The embryonic recovery in housing has been highly dependent on massive federal government intervention rather than an organic increase in buyer demand, Dr. Rosen said in his recent report to the Financial Crisis Inquiry Commission's (FCIC) first public hearing in Washington, DC."

He says "the planned conclusion of several programs this year could stunt the housing market's nascent recovery. Although the market will see a bunching of closings through the June 30, 2010 closing date to benefit from the tax credits, he predicts 'possibly a sharp fall-off in sales in the second half of 2010." He also predicts mortgage rates above 6 percent by year-end. "Another risk to the housing market's recovery is the foreclosure tsunami, which continues to mount with nearly 1 in 10 mortgages in the United States either in severe delinquent or foreclosure status."

"The Obama administration's plans need to be radically modified to address these massive issues if the fragile housing market recovery is to be sustainable," Dr. Rosen's report stated.

Question: If Dr. Rosen is correct, what should you do about it? Work harder? Make more calls? Go part time? Quit?

If this market is going to last another 3-4 years and you are not happy now, a change is needed and fast. So, here is a recommendation.

Build NEW HOMES teams. Every new homes consultant and the highly motivated well-trained team that supports them, will support you.

Your team members include a sales consultant, transaction manager, construction superintendent, closing coordinator and a home builder -- all at your fingertips. Each location becomes another 'team.'

If you had just two 'new homes teams' on the North, South, East and West sides of your office, you would have eight communities ready to support you and your prospects. Even better, you would have known inventory to show your prospects.

You would have resources keeping you informed of the market, pricing, schools, new roads, taxes and more and best of all you would always have a friendly place to take your prospects. Does this mean you should not list resales or show short sales? Not at all. But it does mean you are in control of at least one segment of the housing industry and are building something, not starting over with every listing and sale.

No matter what office you are with, your new homes teams are always with you and vice versa. It's a slam dunk natural thing to do in this market, because the builders need you more than ever.

New homes are selling, but more importantly, the new homes team gives you all of the support you need. You need to know two things: how to draw new homes buyers to your website and how to drive to the builder's sales office. Since they take care of all, and I do mean all, of the details, this leaves you free to concentrate on the only two things that will make you money: prospecting and personal selling.

It is good to work and build new homes teams in times like these, and very few general agents know it. Unfortunately, 'new homes' is usually not part of the company training program. Maybe it's time it should be.

Based on more than 25 years in the new homes business, allow a prediction:

General agents who start building their 'new homes' niche and networking now with new homes sales consultants and builders will make more sales, have more fun doing it, and set up a meaningful and profitable niche for their profession.

Here is why:

1. As opposed to short sales, you always know the commission, the price, and the closing date.

2. The market is easy to identify. In most markets first time home buyers and relocating buyers purchase new homes.

3. Follow-up is embedded in the work habits of an on-site sales consultant.

4. The seller ( the builder) actually directs the closing and stays involved with every phase of transaction management.

5. Walk-through issues are resolved efficiently and completely.

6. As an educational bonus, you don't have to learn every detail of the neighborhood. Your on-site "partner" answers questions about schools, shopping, transportation, medical facilities, zoning, taxes, and more every day!

7. Have you ever met a negative on-site sales consultant? They are the most consistently positive people you will ever meet, and you need to get to know them.

By focusing on "new homes" you position yourself above the overcrowded short-sale and foreclosure agents making some, but not much money. The exceptions are those few agents who saw foreclosures coming months ago and built their teams to handle them.

Builders in most markets are paying good cobroker commissions. Some pay commissions up front for presales. Do yourself a favor. Conduct a key word search for 'new homes (your town or zip code).

Call the sales office and make an appointment to visit the new homes sales center. Tell the on-site consultant you want to start bringing your prospects to his/her sales office. They need your buyers. You need their support and encouragement.

Question: If Nancy nets six new-home sales down by the sea shore, how many sales will Nancy not net if she does not net a short sale?

Selling new homes is a win/win way to make a great living in a too often 'you lose' market.

Copyright © 2010 Realty Times. All Rights Reserved.
Source: Realty Times Last Updated: 03/18/2010 12:30 AM CDT

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