| I am sure this has happened to you: you make | | | | deal with this? |
| the same proposal to two people. One person | | | | |
| is indifferent no matter how well you present | | | | The answer to this is the fact that |
| the benefits. The other person finds that | | | | perception is reality. Focus on those clients |
| what you have to say makes sense to begin | | | | who correctly perceive that your services are |
| with, and gets into action. If you have been | | | | of great benefit to them. Even if immense |
| in the short sales business for any length of | | | | benefits exist, if the homeowner does not |
| time, by now you have already figured out | | | | perceive these benefits as such, nothing will |
| that no matter how much effort you put forth | | | | change their mind. In the foreclosure |
| in the former case, in the end it will be a | | | | business, especially with short sales, |
| waste of time. In the latter case, chances | | | | typically the benefit is that the homeowner |
| are, you will get full cooperation and come | | | | will be worse off without the real estate |
| up with a profit. Why is that? | | | | professional's help. In other words, the |
| | | | benefit is that things will be a lot more |
| I used to think that I had to convince people | | | | bearable. |
| about the benefits of my services. Then | | | | |
| someone told me: "Convincing is a waste of | | | | Based on this rationale, the real estate |
| time. Only work with people who are ready to | | | | professional's job is to reduce the pain. In |
| act." It took a while for that concept to | | | | this case, this means bringing urgent |
| sink in, but now I only work with clients | | | | financial and emotional relief. In real |
| that are already predisposed to appreciate | | | | estate, finances and emotions are always |
| what I have to offer them. In other words, I | | | | highly intertwined. For clarity's sake, I |
| only work with the motivated. | | | | will separate and simplify them. |
| | | | |
| Today, in my never-ending search for learning | | | | Financial Relief: |
| from the wise, I found a fitting quote from a | | | | |
| prominent man. With respect to motivating, | | | | Homeowners in foreclosure who have taken |
| Dwight Eisenhower said "Motivation is the art | | | | cash-out second mortgages are almost certain |
| of getting people to do what you want them to | | | | to face aggressive collection efforts if that |
| do because they want to do it." As a powerful | | | | second mortgage does not get paid off at the |
| general, and later a politician, he had the | | | | foreclosure sale. Usually, that is what |
| ability and prerogative to impose himself | | | | happens. These homeowners, especially if they |
| over his subordinates. To him, leadership was | | | | are employed, at this juncture, have no way |
| not about forcing people, because "you don't | | | | out of that debt. If the debt is large |
| lead by hitting people over the head - that's | | | | enough, collectors will attempt wage |
| assault, not leadership". | | | | garnishment. Since October 2005, filing for |
| | | | bankruptcy has become a lot more penalizing |
| The real estate lesson is: Work only with | | | | and difficult. Homeowners about to face this |
| motivated people because they want to do what | | | | situation will typically, and accurately, |
| you want them to do. The reason is simple. | | | | perceive that a short sale will eliminate or |
| They do things because they see a benefit, | | | | vastly reduce this impending hardship. The |
| not because they have been forced to do it. | | | | benefit of financial relief is the |
| So only work with motivated sellers. From the | | | | motivation. |
| beginning, they see a benefit in what you | | | | |
| have to offer. | | | | Emotional Relief: |
| | | | |
| The fact is that perception is reality. Let | | | | How pleasant is it to explain to oneself, |
| me ask you a question: If a homeowner does | | | | one's family and others, that the property |
| not want to sell a property at the price the | | | | was lost through foreclosure? If there is any |
| offers are coming at, because the homeowner | | | | pride, having to abandon a property in |
| perceives that the property is worth more, | | | | disgrace is very unpleasant indeed. Not only |
| what are the possibilities of that homeowner | | | | that, with that kind of tarnished credit, |
| consummating a transaction? In this | | | | even finding a rental property can be |
| situation, no buyer will purchase the | | | | difficult. What can be more emotionally |
| property. We live in a capitalist society. | | | | distressing to the homeowner than losing the |
| The real value of a property is dictated by | | | | property and now having difficulty finding a |
| the market, not the seller's perception. In | | | | place to live. This kind of pressure can |
| this example, the way the homeowner perceives | | | | break up a family. A short sale can provide a |
| reality does not match the market; therefore, | | | | golden bridge for the homeowner. The benefit |
| the homeowner is not motivated. As a real | | | | of an amiable sale that results in emotional |
| estate professional (agent or investor) this | | | | relief is the motivation. |
| is a losing proposition. If the homeowner | | | | |
| does not see a benefit, the homeowner will | | | | In short sales, it is imperative to work with |
| not be motivated. | | | | motivated people because they want to do it. |
| | | | It is incredible how much is possible when |
| In this present market, with the | | | | people want to do something. Motivated short |
| ever-increasing number of For Sale signs and | | | | sale clients have the accurate perception |
| negative real estate news in the media, | | | | that they will be better off than ending up |
| homeowners in default are usually already | | | | foreclosed. They want to do it. So when |
| pessimistic about the value of their | | | | selecting your clients, remember Eisenhower: |
| property. Typically, they have little or no | | | | "…people do what you want them to do |
| equity and feel that they do not have much to | | | | because they want to do it." |
| gain from a sale. They believe that they will | | | | |
| come out of the transaction with nothing. So, | | | | Written by Oscar Morante, of Advanced Real |
| as a real estate professional, how do you | | | | Estate Concepts, LLC. |