NATIONAL NEWS

It seems you can’t turn on the news these days without hearing reports of plummeting housing markets, brokers being replaced, and agents being forced out of the industry. But while some Real Estate agents are hurting, others continue to thrive. Real Estate experts Scott Macdonald and Stuart Hardy shed some light on how agents can survive the housing slump.

Both Scott and Stuart believe that there are numerous strategies agents can employ, rather than waiting for their phones to ring, or worse, competing by offering lower commissions. In the long run, Stuart says that quality service, experience, and industry knowledge will ensure that agents survive a downturn.

While it may seem like the Real Estate industry is suffering, there are many opportunities for agents during this time. For example, Stuart, president of Equitywest Group/Hardy Commercial Real Estate Services, says that, instead of panicking over the increasing number of Real Estate agents leaving the industry, agents should focus on the benefits of this trend.

Fewer Real Estate sales may mean fewer Real Estate agents, but it is unlikely to hurt those agents who are in it for the long term. Recessions can actually be good because a lot of people who became agents during the hot market shouldn't have, he says. This will benefit those who have the skill set and can provide the customer service, as it will get marginal people out of the business.”

Both Scott and Stuart agree that the Real Estate industry is ripe with opportunity for those who are willing to work hard. In the previous hot Real Estate market, agents were little more than order-takers, says Stuart. For skilled and unskilled agents alike, it was easy to list and sell properties. However, before the housing boom, successful agents relied on traditional sales tactics. Now, it’s time to go back to those core business practices, says Stuart.

Knocking on doors, contacting your sphere of influence, and networking are a few of these core business practices. Networking is key, Stuart says. Join as many trade associations as possible. Do some public speaking to get your name out.”

Scott, who is general manager of Prudential California Realty in Newport Beach and Corona del Mar, describes networking as a high probability activity. He says, At Prudential, we focus on activities that give us the highest probability of getting in front of serious buyers and sellers. Networking is one of these activities. For example, he says, open houses are a great way to meet people who are truly interested in buying properties. The bonus is that these buyers often have homes to sell as well. Many agents are disappointed when they spend time holding an open house and the client decides not to sell that particular property, says Scott. But open houses are extremely important, as they put us in front of buyers who are serious about buying.”

For many agents, it is difficult to stay motivated in a down market. One of the best things to keep you motivated and on top of your game is a coach or mentor. A coach can help you find the areas where you need to improve your practice, says Stuart. In addition, mastermind groups and associations let you work with like-minded people and learn what they are doing. You benefit from each other’s knowledge and abilities.”

When it comes to addressing negative media coverage of the housing slump, Scott advises agents at Prudential to adjust their marketing materials to highlight current market conditions and their unique ability to buy and sell homes in a down market. He says that Prudential relies heavily on facts and figures that show the current condition of the market.

It is important to show clients the truth, says Scott. In the news, they're hearing horror stories about uncertainty and disaster in the Real Estate market. I always try to focus their attention on facts and the truth. For example, I have a graph of Orange County home prices dating back to 1970. This 37-year history of sales prices helps people look at the market objectively and have the confidence to buy in this market.”

Many agents and brokerages believe they should cut back on expenses when the market slows down, especially when it comes to marketing. However, this is a huge mistake according to Scott. We're staying very committed to marketing in the traditional mediums and online, he says. It's a mistake to cut back on marketing in a slump.”

Prudential has had great success with several of its online marketing initiatives, such as graphical e-cards, which promote various property listings. E-cards promoting properties have been an integral part of our ongoing marketing plan, he says.

Online marketing programs also help agents stay ahead of their online competition. According to a recent article in the New York Times, companies like Redfin, an online brokerage, Zillow, Terabitz and Trulia have seen sales rise this year as the housing market sank. But Stuart and Scott believe that there are many things agents can do to combat the growth of Real Estate sites that aim to replace them.

Most buyers search the Internet before they go to an agent,” says Stuar This highlights the need for agents to have a Web presence. Have a place where people will want to go for information. And don’t just provide an introduction and list of accomplishments. Show them what you can do for them.

Stuart also suggests using multiple pictures and videos when selling a home. Differentiate your Web site from those of other agents, he says. Offer listings with more pictures and movies and you have a better chance of selling.

Product knowledge is our greatest competitive edge, says Scott. Customers can find Real Estate information all over the Internet. But they often need someone to help them interpret and analyze it for them. That’s where our value lies. We bring exact and precise information to consumers in a local market so they can compare accurate information and interpret it to accomplish individual goals.

Stuart believes that the future looks bright, as there is a lot of pent-up demand. Many people need to move for a variety of reasons but are waiting to see what the market is doing, he says. This demand has got to be released at some point.

Scott adds that agents who stay focused and committed to reaching buyers and sellers can enjoy great success even in this down market. We are very ambitious with our goals for 2008 because we believe that this market is creating distinct and rare opportunities for buyers to buy homes for significantly less than they could have a year or two ago says Scott. Sellers who are selling to reinvest also have a tremendous opportunity, especially if they are moving up. As agents, we need to position ourselves by getting in front of the people who are ready, willing and able to take advantage of the 2008 market.