6 salesman "SECRETS" on selling anything...

                                                           Isn't This A Great First Impression!

With so many literature and personal opinions on how to sell for success, if you ask 10 salespeople they  probably will tell you 10 different things what has worked for them.  However, there are 6 irrefutable "secrets" that salesman would probably hold dear to on how they sell for success. 

Top 6 Countdown....

Number 6:  First Impression goes a long way!

Proper attire, proper store look, proper posture, a nice car are some (not all) key elements on how to sell anything. Imagine the product releases by Apple such as the Iphone and Ipad; doesn't the marketing advertisement, the store, the salesman, the atmophere, the excitement of each product release provide a key first impression on whether you will purchase what they offer the next time around?  With long lines on each product releases by Apple, I definitely believe many have fallen on the company's first impression.

Number 5:  "Product Over Price; No... PRICE over Product"

Now this may be a little controversial to some, but may not be for others.  Many salesman would like to believe that the service they render should validate the price they offer or the price offered by the company they work for.  But in reality, especially in this economy, most consumers are looking for a deal they can agree on or a deal their spouse can agree with.  A salesman's job is to bridge the gap between what the consumer wants and what his company needs. 

Number 4:  Option 1 is good, Option 2 is better, Option 3 is the best....

Most Salesman will not give you just 1 option when trying to sell you a product or service even though that is what you came in for to look at.  In most cases, a salesman's "secret" is to provide atleast 3 options to show you but no more than 5.  More than 5 options creates confusion.  What you will notice is that the option that he would steer you on is the option that may probably land him the most money.  Time is money; the less time a salesman work on a deal, the more money he can make. Again, not every salesman may do this, but please understand that salesman are there to work and try to earn the most money to bring home for himself, his family, and for his livelihood. 

Number 3:  A salesman will make sure you "Need" the product, not just "Want" it. 

A good salesman usually profile you by asking questions about your work, family, and activities.  Armed with that knowledge, a salesman would try to provide examples on how the product works or relate to the customers everyday life. 

Number 2 :  If you call a salesman's office about a product, he or she will make sure to have your personal contact information before you hang up.

Have you ever given your cell phone number, email address, or even your work number to a store and the salesman on the other end said they will check it and will get back to you on it?  This is one of the oldest trick in the book.  In any case, the salesman probably know the product you were looking for have been sold or they do not know what the status is of the product.  By asking your contact info, they can put you on their client list for other products they can offer you at that time.  They can even show their boss the accumulated contact info's they have to prove they have been working very hard for the company. 

Number 1:  A successful salesman #1 motto is "Honesty is the Best Policy"

Believe it or not, most successful salespeople have good hearts and honest on what they sell.  Now the term "successful" is what I am referring to here.  By my definition, these are the people that have stayed with the business for a number of years and have developed a good clientele. By being honest, referrals become easy to come by and product description doesn't change from one customer to another (promotes trust).  Now, is being Honest an actual "secret" or is it a trait?  The truth of the matter is, it is both.  If used wisely, the saying "Honesty is the Best Policy" maybe the greatest secret on selling anything.

More to come on the Psychology of Selling....

Strategic Default? Should You Do It?

I recently talked with a very good friend of mine who I listed a property almost 2 years ago. My friend and his wife are both top tier professionals who make a good living with great income.  Back then I remember how the wife was scared to lose her credit because the home will go through a short sale procedure. The husband urged his wife that this is a smart move financially they are planning to do. Right at their kitchen table I asked them for the reason of selling the property. Their response was that since the home has been underwater (loan greater than home value) for quite some time now, they would rather let it go now, save, rent, and then buy another home within the next few years. Sadly, they were my first Strategic Foreclosure clients.  Since then, many more individuals passed through my company with the thought of letting their home go now and buy another home later at a much lower price. 

My Question is, if you are a homeowner, should you do it too?

Now of course, everyone has different situations that will undoubtedly provide a different response to this question.  But as a Real Estate agent, let me shed some light on what I have seen to those who chose or not choose to do so. 

The Definitely-make-financial-sense-to-do-so indviduals:
I've had a few people that sold homes with me that fit this category.  Many of them are underwater by atleast $100,000 dollars of negative (this is Nevada you know!) equity and in their financial sense it is just plain smart to let go of something with no value.  The questions comes to being, "Why would I keep paying the bank for $300,000 when my home is only worth $150,000."  It is definitely hard to argue with this reasoning especially when you consider that most mortgage payments actually double in value once every payment is calculated.  The $300,000 loan amount after 30-years of payment is actually closer to $600,000 with interest, taxes, and insurance. It sure is hard to argue thier logic if we are plainly talking dollars and cents. 

The I-Love-Our-home-and-too-much-memory-on-this home-individuals:
Now, I believe that most people who jumped in to buy their home typically did not do it for investment purposes. Most of my clients decided that it was time for them to achieve the American Dream of owning a home.  Families, friends, kids, and memories are put into play for years on the home that people bought.  For good or for bad, I do know quite a few people in this category.  Many are emotionally attached with their home plus the promise and obligation to keep paying a debt in their belief is the right thing to do.  The thought of not paying or the thought of a foreclosure under their name seems too stressful and outright embarassing.  And again, the thought of losing a home that their daughter and sons grew up in is too much to bare.   

Now as I have said earlier, different circumstances give different results in a family's decision to do strategic foreclosure. I may never convince one or the other individual for merits of their decisions.  But i do want to share with you this; Strategic Foreclosure is definitely rising.

According to the Las Vegas Sun In Southern Nevada, The 2,591 sales of single-family homes in February were 3.3 percent higher than January and 8.4 percent higher than February 2010, the Greater Las Vegas Association of Realtors reported today. The median price of those homes was $128,000. While up 2.4 percent or $3,000 from January, the price fell 5.7 percent from February 2010.
That downward trend may not stop soon. The median price of new listings was $134,900 in February, up 1.4 percent from January but 10 percent below where it was in February 2010.


According to Reno Gazzette Journal, Washoe County reported 383 sales of existing single-family homes in February, up 6 percent from January and 13 percent from February 2010.

"February was the highest volume in unit sales for a month of February in the history of the MLS," RSAR president Sherrie Cartinella said in a statement.

Median sales price, however, continued its up-and-down trek toward bottom. Washoe County's median price for existing single-family homes was $161,000, up a percent from January but down 5 percent from February last year.

Of course the reason for these increase sales does not necessarily mean an increase in Strategic Foreclosure; but I definitely do feel it contributed to it.  2007 brought about the sub-prime mortgage mess that brought down the biggest banks and wall street institutions and almost totally crash the U.S. economy.  2011 is 5 years from 2007 that last saw the 5-year arm note. The problem I see in this is how would homeowners who have maturing 5-year arm note refinance with negative equity home values?  Most, if not all banks would probably not refinance homes with this situation in Nevada and anywhere else in the United States.  Guess what, many homes who took a 5-year Arm (again for Adjustable Rate Mortgages) will soon face increases in mortgage payments while looking at a bleak U.S. economy.  I know a few people who asked for extensions and have been denied by their loan servicing company.  A work-out for a loan modification was a choice, and many lost their credit score during the process.  With No credit score, an underwater home value, and an increase in mortgage payment, their choice now become to keep on paying, short sale, or do strategic foreclosure and save money until their home is taken by the bank.  A cycle of distress that no one should be in, in my opinion. 

In conclusion, I believe the reason why we still have a downward price trend in both northern and southern Nevada is because there are way too many bank owned forclosed homes entering the real estate market than those who are able to buy.  The shadow inventory (homes that are delinquent, in pre-foreclosure, auctioned, REO) are rapidly increasing which further decrease the price of homes when they are released.  And I bet 1,000.00 many of those homes were let go by teachers, businessmen, doctors, lawyers, retail store owners who decided that it is best to walk away now from the huge house debt and buy themselves the same type of home for a much lower price.

The scary thing is, if Strategic Foreclosure becomes a trend on why people walk away from their home, this could cause a second wave of financial disaster in the US.  Our leaders better find more ways to work with people in keeping their home to avoid a mass exodus of people opting for Strategic Foreclosure.  Lets not repeat the start of 2007. Only time will tell.