1. REVISED EDITION An Agent’s Guide to Creating Urgency to Buy Buyers’ Market = Right Time to Buy Breakthrough to Mastery

2. 2 An Agent’s Guide to Creating Urgency to Buy Main Ideas 1.Perspective on Buyer Urgency 2.Prequalify Buyers: Are they Able, Ready, and Willing? 3.Become the Local Economist of Choice 4.Help Buyers Tap Into Their Why 5.Address Buyer Reluctance 6.The Bottom Line

3. 3 An Agent’s Guide to Creating Urgency to Buy Perspective on Buyer Urgency The Challenge » The media creates misconceptions about buying homes today. » Buyers fear paying too much. » Buyers don’t have any sense of urgency. » Many agents think it is not a good time to buy. Page 7

4. 4 An Agent’s Guide to Creating Urgency to Buy Perspective on Buyer Urgency (continued) The Truth » People are buying and selling homes in this market. » No one can truly “time the market.” Page 8

5. 5 An Agent’s Guide to Creating Urgency to Buy Perspective on Buyer Urgency (continued) The Solution » Prequalify buyers » Work with buyers who are able, ready, and willing » Become the local economist of choice » Help buyers tap into their why » Address buyer reluctance Page 12

6. 6 An Agent’s Guide to Creating Urgency to Buy Prequalify Buyers  Able—do they qualify for a loan?  Ready—what are their reasons for buying?  Willing—what are the market expectations? Page 13

7. 7 An Agent’s Guide to Creating Urgency to Buy Prequalify Buyers (continued)  Common Reasons for Buying » Relocation » Dissatisfaction » Life changes » Second home » Home sold » Lease ending » Investment Page 15

8. 8 An Agent’s Guide to Creating Urgency to Buy Prequalify Buyers (continued)  Ask and Listen » Dig deeper with great questions » Listen carefully » Take notes Page 16

9. 9 An Agent’s Guide to Creating Urgency to Buy Prequalify Buyers (continued)  Determine Willingness » Ask … “Do you want to risk missing a house that is perfect for you because you’re waiting for a sliver of savings that may or may not be there?” Page 17

10. 10 An Agent’s Guide to Creating Urgency to Buy Prequalify Buyers (continued)  Impact Their Urgency » Three Tactics 1. Become the local economist of choice 2. Help buyers tap into their why 3. Address buyer reluctance Page 17

11. 11 An Agent’s Guide to Creating Urgency to Buy Prequalify Buyers (continued)  Able, Ready, and Willing? What questions will you ask to determine if your buyer is able, ready, and willing? Page 18

12. 12 An Agent’s Guide to Creating Urgency to Buy Invest Time in Research Page 19 Top Dollar-Productive Activities 1.Lead Generation 2.Lead Follow-Up 3.Appointments with Prospects 4.Negotiating Contracts 5.Market Research Be the Local Economist of Choice

13. 13 An Agent’s Guide to Creating Urgency to Buy The Tale of Two Markets Page 20 In the Market Out of the Market GreatPoor Condition vs. Comps Above Below Price vs. Comps Be the Local Economist of Choice (cont)

14. 14 An Agent’s Guide to Creating Urgency to Buy The Tale of Two Markets: Sellers’ Market Page 21 GreatPoor Condition vs. Comps Above Below Price vs. Comps In the Market Out of the Market Be the Local Economist of Choice (cont)

15. 15 An Agent’s Guide to Creating Urgency to Buy The Tale of Two Markets: Buyers’ Market Page 22 GreatPoor Condition vs. Comps Above Below Price vs. Comps In the Market Out of the Market Be the Local Economist of Choice (cont)

16. 16 An Agent’s Guide to Creating Urgency to Buy Good Time to Buy Reasons to Buy Now 1. Mortgage interest rates are low and stable 2. Home prices have become more affordable 3. Inventory is high 4. Strong economy 5. Low unemployment Page 24 Be the Local Economist of Choice (cont)

17. 17 An Agent’s Guide to Creating Urgency to Buy Mortgage interest rates are low and stable. Page 26 Source: Freddie Mac Mortgage Interest Rates 1971 – 2007 30 Year, Fixed-Rate Mortgage Be the Local Economist of Choice (cont)

18. 18 An Agent’s Guide to Creating Urgency to Buy Home prices have become more affordable. Page 27 Source: OFHEO U. S. Home Price Index 1976 – 2007 Year-to-Year Change Be the Local Economist of Choice (cont)

19. 19 An Agent’s Guide to Creating Urgency to Buy Inventory is high. Page 28 Source: National Association of Realtors Supply and Demand Shifts 1989 – 2007 Months Millions Existing Home Sales Housing Inventory Buyers Market Sellers Market Be the Local Economist of Choice (cont)

20. 20 An Agent’s Guide to Creating Urgency to Buy Be the Local Economist of Choice (cont)  Becoming the Expert What tools do you use to communicate your knowledge of the economy and local market? Where can you get reference information you need? Page 30

21. 21 An Agent’s Guide to Creating Urgency to Buy Help Buyers Tap Into Their Why  Features vs. Benefits » Features—amenities Fireplace Pool Large master bedroom » Benefits—affect emotions Quiet Cozy Spacious Pages 31-32

22. 22 An Agent’s Guide to Creating Urgency to Buy Help Buyers Tap Into Their Why (cont)  Advantages of Home Ownership » Build equity » Tax break » Investment Page 32

23. 23 An Agent’s Guide to Creating Urgency to Buy  Cost of Waiting to Buy » Delay of tax benefit » Delay of building equity in new home » Need to view more homes » Selection of best homes is limited » Market will shift and great buys will be gone Page 33 Help Buyers Tap Into Their Why (cont)

24. 24 An Agent’s Guide to Creating Urgency to Buy Help Buyers Tap Into Their Why (cont)  Buyers Who Want a Deal » Learn their definition of deal » Communicate the consequences of some “deals” Page 35

25. 25 An Agent’s Guide to Creating Urgency to Buy Remove Fears » Fear of paying too much CMA Appraisal » Fear of making a commitment Option period Buyback guarantee Pages 36-37 Help Buyers Tap Into Their Why (cont)

26. 26 An Agent’s Guide to Creating Urgency to Buy Incentives and Concessions » Improvement allowances (carpet, paint) » Pay early move-out on renter’s lease » Pay mortgage on buyer’s home for a period of time » Pay buyer closing costs » Lease-purchase options » Mortgage buydowns » Seller financing » Extras (electronics, car) Page 38 Help Buyers Tap Into Their Why (cont)

27. 27 An Agent’s Guide to Creating Urgency to Buy Help Buyers Tap Into Their Why (cont) Close “Is this a house you want to buy?” “Good houses sell fast in any market.” “How would you feel if someone else bought this house tomorrow?” “If you love this house, someone else will too.” Page 39

28. 28 An Agent’s Guide to Creating Urgency to Buy Help Buyers Tap Into Their Why (cont) Helping Buyers Tap Into Their Why What will you say to remind buyers of their wants and needs? Page 40

29. 29 An Agent’s Guide to Creating Urgency to Buy Address Buyer Reluctance Four Strategies to Overcome Buyer Reluctance 1. Why wait? 2. Trade up 3. Less is more 4. Find a best buy Page 40

30. 30 An Agent’s Guide to Creating Urgency to Buy Address Buyer Reluctance (continued) 1.Why wait?—the hazards of timing the market Home Price Starting Price $200,000 5% Drop $190,000 10% Drop $180,000 Interest Rate Starting Rate 6.0%.5% Jump 6.5% 1% Jump 7.0% Payment$1,199$1,201$1,198 Drop in home price is offset by increase in interest rate. Page 41

31. 31 An Agent’s Guide to Creating Urgency to Buy Address Buyer Reluctance (continued) 2.Trade up—the opportunity of a down market Original Home Starting Price $200,000 5% Drop in Home Prices Sell at $190,000 Loss of $10,000 New Home Starting Price $400,000 5% Drop in Home Prices Sell at $380,000 Savings of $20,000 Lower sale price is offset by greater savings. Page 43

32. 32 An Agent’s Guide to Creating Urgency to Buy Address Buyer Reluctance (continued) 3.Less is More—Narrowing the Field 1.Know what they need and want 2.Know the best buys in the market “If you show buyers what they want, they’ll be motivated to buy.” Steve Cohen Boston, Massachusetts Pages 44-46

33. 33 An Agent’s Guide to Creating Urgency to Buy  Know the Inventory Reasons to Preview Homes 1. Save yourself time and gasoline 2. Take customers directly to the best buys 3. Buyers have confidence in you when you only show houses that meet their needs and wants Page 46 Address Buyer Reluctance (continued)

34. 34 An Agent’s Guide to Creating Urgency to Buy Address Buyer Reluctance (continued) 4.Find a Best Buy—Get While the Getting’s Good Where to Find Best Buys 1. REOs 2. HUD Exchange 3. Foreclosure lists 4. FSBOs 5. Price reductions in the MLS 6. New homes on the market 7. Builder’s promotions Pages 48-49

35. 35 An Agent’s Guide to Creating Urgency to Buy Address Buyer Reluctance (continued)  Create a List » Nominate homes that you consider “best buys” » Be on the lookout for special offers from builders and other sellers » Create a short list of the best of the best Page 49

36. 36 An Agent’s Guide to Creating Urgency to Buy Address Buyer Reluctance (continued) Do Your Homework Track Your Best Buys 1. Time on market 2. List price 3. Condition 4. Selling price Page 49

37. 37 An Agent’s Guide to Creating Urgency to Buy Address Buyer Reluctance (continued) Use Your List » Don’t give the list out, offer access to the best buys. » Show houses on the list to your customers—these are the houses that will sell fastest. Page 50

38. 38 An Agent’s Guide to Creating Urgency to Buy Address Buyer Reluctance (continued) What strategies will you implement to address buyer reluctance? Page 51

39. 39 An Agent’s Guide to Creating Urgency to Buy The Bottom Line  Prequalify buyers  Only work with buyers who are able, ready, and willing  Become the local economist of choice  Help buyers tap into their why  Address buyer reluctance Page 52

40. 40 An Agent’s Guide to Creating Urgency to Buy Productivity Boosters  Consult using buyer guides  Apply action plans to stay in touch  Use mass email with hyperlinks to your website  Use an IVR number and capture each caller Page 53

41. 41 An Agent’s Guide to Creating Urgency to Buy My Action Plan Pages 59-61  Don’t put away this guide without developing a plan to put what you have learned into action!  Refer to the Action Plan on pages 59-61of the guide to assess your strengths and areas for improvement.  Write down steps you will take to improve your skills—complete it, share it, and commit to it!

42. 42 An Agent’s Guide to Creating Urgency to Buy Take the other courses in the Breakthrough to Mastery Guide series!  Gaining Mind over Market  Upshifting Your Lead Generation  Seller Pricing Strategies  Seller Staging Strategies  Lead Capture and Conversion  Internet Lead Capture and Conversion  Bulletproofing Transactions  Expense Management  Effective People Leverage  Short Sales, Foreclosures, and REOs  Financing Solutions

43. 43 An Agent’s Guide to Creating Urgency to Buy Thanks for being here! Please complete an evaluation for this session.