You might remember that line from a movie. Ahh, but what movie?
Most people think it comes from “Alien”. No, it comes from “The Fly” (the 1986 remake with Jeff Goldblum and Geena Davis). The scene has two women and a man. The one woman, fearful of doing something, says, “. ..But I’m afraid…” The man says, “No, don’t be afraid…” and the other woman says, very sternly, “Be afraid, be VERY afraid”.
This brings to mind the fear and paralysis that affects some real estate agents who fear the unknown. I have talked to so many agents who tell me “… I refuse to do a short sale or lender owned deal”. Why? They are afraid of the unknown, but the difference here, versus the movie, there is nothing to be afraid of. What most agents fear is the process, which is unknown to them, and sadly they have heard the horror stories and use both of those factors to take that position.
As a result, they are staying away from a large segment of our current market, which likely will stay that way for most of 2009. We will see more foreclosures before we see less, especially with the government-imposed moratorium being lifted last week; thus the sheer number of pre-foreclosure and lender-owned sales will increase. If you are fearful of that part of the market, you might be out of business.
So, if you decide to go after those foreclosed, lender-owned listings, you should answer these questions.
First, are you going to work harder for potentially less income? Yes. These deals take longer, require more documents and certainly require patience. With prices at a record low, and pressure on commissions, your income will be less. That’s a fact, but there is not much we can do about that.
Next question. Will I lose some control of the deal? Yes, as lenders make their own rules, we need to far-more flexible in dealing with many of our standard rules. Your brokers are here to help you with that.
Last question. OK, how do I get these deals? How can I get listings from lenders? This takes work, good ole prospecting. Talk to every mortgage broker and title officer you know. They deal with lenders and asset managers every day. Ask for names, or have them put in a good word for you. It’s just like prospecting for listings. Knock on doors, call people, and make yourself known. Lenders are assigning hundreds of listings to real estate agents all over the valley every day. You might just get in front of that person (or on the phone) on the right day, when they need another agent. Timing is a big part of success. You certainly won’t get these listings unless you prospect for them every day.
Remember when you started in the business? Did your phone ring the first day, with a buyer ready to buy, or a seller ready to sell? Probably not. Think of this as your first day in the business. What should you do to generate leads?
Fear is the #1 killer of successful sales careers. Fear of anything… Fear of rejection, fear of failure, fear of the unknown, even fear of success. Each of these can be overcome by a desire or need that is stronger than fear. That is up to you to decide what that is, but if you do, there is a lot of money to be made in this market.
