Home sales down .6% in May - National numbers in - Time to Re-Think 4 Sales

Doing what we did in years past simply does not work in today's market. Are you frustrated with lower rates, lower home prices and slumping sales? In this market, sales should be UP! How to do it is the question.

Please keep in mind that the following is simply based on statistics alone. Nothing re: "sub-prime" borrowers that follows is meant to be negative towards "sub-prime" borrowers but statistical facts.

The straight forward approach that we all used when the market was going strong is simply not going to work today. Don't allow logic to come into the picture. If you understand what's going on in today's market, you know that logic plays a very small part. The time is now to re-think your marketing strategy.

It's estimated that the number of foreclosures that have occurred to date are, for the most part, borrowers who were statistically headed for foreclosure anyway. The 2nd wave of "bad" news is on the way. People with good credit and income are now facing the same fate. They do have options. Options that can be found outside the normal way of thinking.

The "2nd" wave of possible foreclosure bound borrowers are quite different from the "1st" round. These borrowers have good income and credit. They don't have a track record of missed payments and are statistically not coming out of a "sub-prime" mortgage. These borrowers can get help in more ways then most think.

The problem with the "2nd" round is, in many cases, more simple and controlable then those that came before them.

Again, this is not in any way intended to put any negative light on the "sub-prime" borrowers but rather identify the difference between the two and make some changes.

Statistically, many involved in the "2nd" round have taken a beating with current 401K's or investments. We can and have turned many of these "2nd" round borrowers into investors. When the numbers work, we have taken these borrowers and re-financed the current mortgage they have. We then either take out equity or money that has not been "working" for them and they have taken advantage of the much lower home prices that we all see today.

If you simply sell a home and buy another one, you are going to take a beating on the home you sell which makes the new pruchase "relative" and not that great of a deal. If you are simply buying a home without selling one, the benefit is far greater.

In a nut-shell (that's funny, this is a long nut-shell) if you spend more time on investor sales then on "new" sales, your numbers will go up. If a borrower has a home that they want to sell in this market and take a $50K hit, then buy another home that has taken a "hit" its not a great deal. If your client is only looking to buy and not sell, the costs savings are much better.

With home sale slightly up and new home sales down, its time to re-think and focus on the investor. We are doing this and when the numbers work, so does the deal.

You can do it on your own or we can do it together. Either way, best of luck and hope this helps in some way.