2007 sales volume: $400 million
2008 year-to-date (as of March) sales volume: $83 million
Original Interview http://www.toprealestatestrategies.com/issue4.php
In Touch Today: How have recent events in the mortgage and housing market affected your business?
Allan Domb: Cleary we're seeing the first-time homebuyer stepping back into the market. January through March, we started to see properties priced under $600,000 selling very well in our city ( Philadelphia, PA). That's mainly due to first-time homebuyers coming back into the market in the $300,000 and $400,000 range.
Housing has to be viewed as a ladder. The first rung of the ladder is the first-time homebuyer. When they step into the market and buy, the seller goes to the next step, and it just goes on up the ladder. The rungs on the ladder depend on your local market. In the Center City, the first-time homebuyers purchase homes from $250,000 to $400,000. The second time home buyer is generally purchasing in the price range of $400,000 to $600,000. And for the third timer, the price range could be $600,000 to 1 or 2 million. It trickles up. It may take six months to 18 months to go through the whole cycle.
By the way, the same sort of market we have now occurred when rates began to rise almost 2 1/2 years ago. It knocked off the first-time homebuyers, and it took awhile to trickle up the ladder. This is why the National Association of Realtors reported that the median home price had dropped 8%. It'd dropped 8% because most of the sales were to the first-time homebuyers market where prices are lower.
First-time homebuyers can afford more properties today because prices have adjusted, and sellers are more realistic. Interest rates are down. If they have good credit, they can obtain financing.
In Touch Today: Have you been approaching marketing or other methods of business generation differently given the current state of the market?
Allan: Telephone is key. We’ve been getting on the phone with people and sending a lot of email to follow up. There's nothing like a telephone call or personal appearance. I make a hundred phone calls a day.
Communication through Blackberry has been a big deal for me. I use the Blackberry extensively. It gives me the ability to communicate when I'm not in the office. It totally eliminates down time. I can be anywhere and keep working. I don't know if that's good, but that's the reality. In today’s market, you have to be more available to your clients and potential clients. They want instantaneous answers.
In Touch Today: What marketing/business approaches do you feel are still working for you?
Allan: A lot of things are back to basics. We try to work with people who are qualified. We try to work with sellers who are realistic. Success starts with the sellers. If you don't have a realistic seller, you're wasting your time in this market. This is not a marketplace to be handling what I call the “fisherman specials.” These are folks who believe that if they throw out a line, any line, someone will bite. This is a reality marketplace; unless you have real sellers, don't waste your time. You can't afford it time wise or financially. Realism in pricing is key.
In Touch Today: What advice would you give other real estate agents who may be struggling to keep or find new clients right now?
Allan: I hate to be blunt, but get a paying job. This is not the time to be struggling. 10% of the Realtor population is doing very well and the rest are going to have to find their way. This is no longer an order taker market. This is a professional sales market. Unless you have really good skills, this is not the market to be in. That was the market of the last seven or eight years. If they are struggling, and don’t want out completely, I would suggest that they team up with their local top producer and work with them to learn more during these times.
In Touch Today: What personally keeps you motivated in this market? Why have you decided to stay in the business?
Allan: It continues to be a pleasure to help people make one of the most important financial decisions of their life. I think if you enjoy that, it'll motivate you to stay in it. When you stop enjoying that, you have to get out. I still get a lot of satisfaction from running in to past clients who say to me, “I love my home. Thank you so much." It is very gratifying.
In Touch Today: Do you have a daily affirmation or inspirational quote that you'd like to share?
Allan: Just set your goals each morning, and meet them. Also outline your ten most dollar productive activities of the day and make sure they get done every day. Put them on your Blackberry or type them out and keep them with you. |
