There’s a concept in sales known as “niche marketing” that holds that greater success comes from dropping the jack-of-all-trades mentality, and focusing on one group of prospective clients. It might seem counter-intuitive to think that more success might come from fewer potential sources of business, but I do believe it will be the case.
It’s been a pretty nasty week in Colorado. It’s hard to fathom the damage, based upon what we experienced here in my neighborhood, just a few miles down the road. The weather station in my neighborhood reported well less than four inches of rain over the last week, or less than one quarter of what Boulder received in that same week. As the sun came out today, I paused to reflect not only on the floods, but their effect on the community.
We balance those three factors — product, price and packaging — so that we can achieve a seller’s goal: highest price in the shortest time with the fewest challenges. If the product is lacking in some capacity or another, we have to fix it somehow. Sometimes, we can physically fix the product (what it is and how it is), but sometimes, such as with a poor location, we can’t. Then, we have to rely on adjusting the price or the packaging.
Location, of course, is the one thing about a property that can’t be changed. Because, if ya could, it’d be a different property now, wouldn’t it? This point was driven home last week when I had a chance to sit down with a seller whose property was on the market, but not generating any interest. Not a single showing in almost three months on market, even in this crazy real estate market. Clearly something was wrong.
Is this the house General Meade deliberated in? I honestly don’t know, but it makes a great story for me because I have a connection to that house in Maryland: my great-grandfather married his second wife in it. It was her childhood home, and she grew up there. She was a member of the Booth family.
I’ve just calculated the current market conditions snapshot report for my market area, and I’m delighted to report that the craziness continues unabated. It’s getting crazier, in fact.
Bank owned REO was a good niche for me. I understood it from the beginning because I was learning the loan business during the last mortgage crisis in the 1980′s . . . It was a mess, and I had a front-row seat. Nearly 20 years later, that experience naturally lead me to the world of REO brokerage. I got in several years early, so I was ready.
Through the years, I’ve learned that the one aspect of real estate that really sends folks around the bend is contract negotiation. There’s something about asking for what you want, and denying what “the other guy” wants, that just gets people all aflutter, and causes them to do things that are not necessarily in their best interest.
The process we all go through to find a home and sell real estate has changed, indeed, and I must admit that I like it better now. Today, our clients are likely to come to us already armed with a ton of knowledge that they have gleaned from the internet.
The real estate market is still crazy. Inventory is creeping up slowly — and that’s a good thing — but last month we sold over 50% more properties than we did in February, so we cut deeply into what little inventory we had. Right now, we have less than a five-week supply of homes for sale.
For any given market, the total time it takes to go through the entire process of selling real estate is about the same for all properties. Which is better for you, physical or emotional work?