This idea submitted by agent David Jurewicz explains how he set up a trade-in program with builders to profit during a previous slow market.

Home trade-ins are in a way like trading in your used car for a new one. Home owners buy a new home from a new home builder, who agrees to buy the old home. Some builders are using these programs today to help increase sales and it can mean opportunity for you. What builders in YOUR area could you help implement a program like this and receive listings in the process?

Here he is in his own words…

“I had success in the down market of the 1990’s helping a local builder develop a trade-in program for their subdivisions. Since it would take about 3 months to build a home, I would use this time to market the trade-in home. It usually sold before the new home was built.

The builder dramatically increased traffic at their subdivision, sold it completely out in a slow market, and I got to market great trade-in properties. The interesting part is that the builder only had to take in two trade-in homes and I got to sell them! I’m making an effort to do that again.”

Qualified buyers are difficult to find today and when one is in front of you it becomes essential to maximize every second with them… either selling them a property or making them a client.

New agent Jeff Rogers uses his camera and some old-fashioned leg-work to put together a winning buyer presentation that bonds clients to him and closes deals. Could you use something similar in your practice?

Here’s Jeff’s description…

“Hi, I’m Jeff Rogers a new real estate agent. A customer had came into the office and asked about lake property. She stated that she really wanted to purchase a lot however did not have a lot of time to look. Would I just print her some MLS sheets and give them to her. I agreed and she said she would be back on Monday to pick them up.

The weekend was a blur to me. I drove to every one of the lake properties that were the best deals and even the ones that weren’t. I took photos, digital video and notes. I even called the agent listing the property. I went back to my office and put together a presentation package through slide show and video.

I placed all the paper work in a nice folder made just for her. When she came on Monday, I asked her how much time she had that morning. She said only about 20 minutes. I asked her to wait in the conference room and got her something to drink. In less than 15 minutes. I showed her all the property that she couldn’t see right there on a 52 ” LCD TV as if she were right there. She was my client for life from then on. She said no one had ever gone to such great lengths before. I really would put that camera to good use.”

Are you sitting on listings that won’t sell?

Every day I hear the frustrations from agents victimized by a stagnant market. Cautious buyers, unreasonable sellers, and marketing and “carrying” expenses from home inventory are slowly bleeding agent’s profits.

What’s the real problem? We have opposing market forces working against each other right now, and the market is simply out of equilibrium.

Sellers think their home is worth more than it is, given an unusually high inventory and competition with foreclosures and short sales. Or they’re upside down or otherwise not willing to reduce their home’s price to get it competitive. The pressure is upward with sellers.

Meanwhile, there are fewer buyers in the market…and those who can qualify are hesitant about buying on a downturn. The pressure is downward with buyers.

And who’s caught in the middle? YOU.

If you’re feeling the squeeze, here are a number of proven strategies, tips and tactics (used by the most experienced home marketing pros) you can use to market and sell your listings faster and for more money than ever before.

The most important thing you need to understand when selling your listings is…

You Actually Have THREE Clients

And once you learn how to “hit on all cylinders” by marketing to all three clients, your life will become infinitely better (and richer!). So let’s talk about each client and what you need to do…

Client #1: Your Seller

Sellers don’t determine the price at which their home will sell, but they do determine how FAST it will sell by establishing a marketable price. Every factor in the home – from location, sighting, features, design, condition, cosmetic or functional obsolescence – are ultimately all reflected into price.

Taking overpriced listings in today’s market is hazardous to your career. The truth is, homes that sell the fastest also sell for the most money. This means they’re priced correctly up front to sell – and so they sell quickly.

If they’re priced wrong, you run the risk of stigmatizing the property as a bad value in relation to other properties in the market. It’s very difficult to get buyers agents back to a home stigmatized as a poor value.

If you find yourself in a situation where your sellers won’t price their home where you believe the market will present an offer, you have 3 options:

1. Take the listing and get ready for a protracted waiting period, bleeding your cash flow, and you’ll be endlessly blamed (and possibly fired) for the home failing to sell…

2. Walk away from the listing – which will be hard to do because you’re in the business of selling real estate…

3. Take the listing, but write into the contract that, if the home doesn’t sell in “x” days at their price, they agree to lower the price to one you feel is marketable. Remember: Get it in writing or you won’t get the price reduction.

Your sellers need to know that their home is competing not only against other homes for sale in their area, but foreclosures and short sales too. And they need to know that buyers agents only show home they believe can sell.

So if their home isn’t priced within a price range where a prospective buyer would even consider starting the negotiation process by making an offer (or worse, buyers agents won’t even show the home), they run the risk of creating a stigmatized listing. That’s bad news for everyone involved.

Handle your sellers correctly right up front, do your homework to prove your case with pricing, and you set the stage for a successful sale.

Client #2: Buyer’s Agents

Did you realize that other agents may be your clients? Most agents don’t. But they are and here’s why.

Buyer’s agents hold the key to bringing buyers to your listing. And we now know they they’re not going to show any listings they don’t believe have a chance to sell. They don’t work for free.

So the question is: “What can you do to motivate the most active buyer’s agents to show your home to every buyer who fits the bill?”

Here are 2 Quick Steps for getting your listings shown more than any other home in the area – thus motivating a faster sale:

Step 1: Put your listing on their radar screen. When I was building spec homes and infill subdivisions I used to hop on the MLS and locate all the buyers agents who actively sold homes in the area and price range of the home(s) we were selling.

Then we created a small database by subdivision of these agents, ranked from most active to least. And we used that list to initially market our homes (many before they were even built!).

What did we do with that list? First, we’d create beautiful brochures of the homes and make sure a pile of them sat on the agent’s desk (90% of success is just showing up – and we showed up!).

Next, we’d hold very exclusive agent tours just for the agents on our list. Again we’re getting our homes on their radar screen, right?

Next, we frequently asked buyer agents for input on a home (features, sighting, etc.) even when we were in the planning stage. Imagine how important these folks felt, and how bonded they were to us, when we actually included them in the product design?

Finally, we established a regular monthly contact system so they were always up to date with our homes (and we were always top of mind with them).

The result? We sold 57 $1 million+ homes in 3 years, and all but a handful of them were sold before we completed construction!

Step 2: Consider ethical incentives to get your home shown first. A lot of agents cringe when they hear financial incentives, but let’s face it…they work.

For example, we used to offer cash and other incentives to agents who sold our homes at certain times in their construction process. An agent might get a $2,000 bonus or trip to Hawaii if they sold the home prior to breaking ground.

Or they might get a $1,000 bonus if they sold it prior to construction completion. And in some cases we’d just send out Gift Certificates or other valuable novelties when agents showed the home multiple times.

This strategy not only gives incentives to show your properties first, but keeps you top of mind with a reference to a “unique benefit” in the mind of the buyer’s agent.

Now, I’m not asking you to give away your commission (and by all means run this by your managing broker before considering), but think about small but meaningful incentives you can offer to agents to stimulate more showings to your home.

The more showings, the more likely your home will get an offer.

Client #3: The Ultimate Buyer

Buyers have a lot of choices today with the abundance of “bargain” homes on the market. Now more than ever you need to generate as many buyer inquiries on your listings as possible.

Again, make sure you’re hitting on all cylinders with your listings, and consider creating a “Marketing Strategies Checklist” to be implemented with every listing you take.

I’ve included here a 28-Step Home Marketing Plan you can use not just for your own listing checklist, but as a presentation device in your listing presentations.

Download it as a pdf by clicking here.

And don’t forget: Buyers are attracted to the “lifestyle benefits” of a home. All homes have bedrooms, baths, etc., but you need to become a “sales detective” and locate the most powerful features and benefits of the homes you list.

Then, use those “lifestyle benefits” as the central focus of our marketing efforts.

And finally, you need to make your listing as “affordable” as possible to prospective buyers. What do I mean by “affordable”?

There’s a difference between price and affordability. With the right financing programs you can make your home much more attractive over other homes in the market.

So team up with a great mortgage professional and create some financing options that highlight the affordability of your home. You must make it easier to buy your listing than the foreclosure down the street.

Follow these steps, focus on what buyers and buyers’ agents ultimately want, and you’ll be surprised at how much faster your listings will sell.

Have you ever found yourself baffled by clients who ask you to reduce your commission at a listing presentation? Then baffle no more! Here’s a step-by-step script to help you negotiate the best commission rate. Larry Hoffman gets a little bit “in your face” with his client – but it works! Read on…

“The dialogue goes like this.

Seller: What is your commission rate?

Agent: Other than the commission rate is there anything else that will prevent you and I from working together?

Seller: No, that’s about it. (BE SURE TO GET THIS COMMITTMENT BEFORE YOU PROCEED OR THEY WILL RAISE ANOTHER OBJECTION).

Agent: So let me understand what you are saying, If we can agree on the commission rate you are prepared to sign the listing TODAY?

Seller: Yes

Agent: Tell me, what is your concern about the commission rate?

Seller: I have been quoted by “ABC Realty” that they will charge me a total of 3.5% to sell this home.

Agent: (My answer is said in a firm, mildly combative tone of voice.) Why would you pay 3.5% for selling your home when I can send you to a company that will list your home for $1,000.00? You have to do all the work, book the appointments, pay for ads and promotion, prepare and negotiate your own contract, deal with unsavory people walking through your home, etc. Is that what you want? (NOTE: No matter what the answer, except “I’ll pay you what you want”, continue…)

Tell me, is selling this home at the highest possible price important you?

Seller: Yes, but we don’t want to pay too much or get ripped off.

Agent: NO ONE DOES! However, when something is very, very important, do you think most people want the solution, not necessarily just the lowest price? Don’t you agree?