Over the years many of you have heard my buddy Joe Niego talk about not having a spray and pray approach when it comes to the focus of your business and how to generate a lead…and he is so right. That’s why we teach the working by referral system – to help you maintain your focus.
However, in order to get an offer accepted today, the rules have temporarily changed. Helping a buyer has always been a process of elimination. You educate a client in a geographic area and start eliminating homes that they don’t want until they find the one or two they like the best. You then write an offer, negotiate, get it accepted and work on getting it closed.
Today if you write an offer on a short sale or a foreclosure you have approximately a 1 in 4 chance of getting it accepted – even if it’s the best offer. You have a 1 in 3 chance of even getting a response. Many of us are frustrated because this is not how the business is supposed to go. Well folks this is how the business is going today. You need to educate buyers that we’re going to follow the spray and pray approach.
“We’re going to find a home you like, write an offer and there’s a pretty good chance we may not hear back. There’s also a pretty good chance the offer will expire without hearing back so immediately after writing an offer, we’re going to look at more homes. We may have to write offers on five homes to get one accepted.”
This is not how I like to do business and I’m sure it’s not how you like to do business but right now we need to have different expectations and so do our clients. As long as short sales and foreclosures are the first choice of buyers we have to educate them that they going to have to put up with a season of frustration for the opportunity to get one of these deals.
As I told a young buyer the other day; you’re buying this home for $100K less than it sold for a year ago…it will eventually regain it’s value and how long would it take you to save $100K?
So yes we’re going to have to spray a lot of offers into the market but don’t forget to pray. You’ve got to have faith in this market: Faith that things are going to work out; Faith that the market will turn; and faith in the intrinsic value of real estate itself.
I have faith in you.
It’s a good life!