Marketing: Thinking outside the box. By Jerry Mueller.

Today's real estate market is totally different from the real estate market in 2005. Since January 2006 we have witnessed a downturn in the real estate market that continues to this day in 2008. The ability to adjust to the changing and challenging marketplace is the key to being a successful real estate practitioner. I have witnessed many real estate agents and sellers suffer the 5 stages of grief because of the downturn of the real estate market coupled with the mortgage crisis. Denial, Anger, Bargaining, Depression, and Acceptance. Not everyone goes through the 5 stages at the same time and many are still stuck getting through.

I have been in the real estate business since 1983 so like many of my piers we have seen the ups and downs of interest rates, inventories, and prices of real estate. I hope I can give my perspective to be able to help professional real estate practitioners think outside the box, and meet the challenges of today's real estate marketplace.

My history. When I first got into real estate interest rates were 16% and rising. Technology was 0 compared to today. My major obstacle was how to reach buyers and sellers in this second home marketplace. We would dig out the spec print big books and tediously try to contact sellers. Buyers you had one shot and that is when they walked though the door. Not really having the gift of gab like others I became frustrated. So I embarked on a mission that I still do today and that is to learn the art of selling. I sold everything from condos in ocean city to chicken farms in Salisbury and Delmar. I sold lots in ocean pines, and then sold homes to be built by builders on those lots. I sold townhouses and single family homes in Bethany and land and lots in Delaware and Maryland. I even sold a 28 unit section 8 apartment building in Tacoma Park Maryland that no other real estate agent could sell for over 5 years. I have sold ocean front, bay front and houses in the most western part of Sussex and Wicomico and Summerset Counties. You get the picture; I love to sell real estate. I often say to buyers I do not care what you buy, I just care that you buy. I strive to help buyers and sellers achieve their goals.

In 1991 our country faced another recession. It was worse in different parts of the country however it did affect real estate in our marketing area in Delaware and Maryland. It was at that time I got involved with Auction Method Marketing. It was a niche that helped me to increase my income, success and professionalism. In 1997 I suffered a setback when selling a restaurant in Bethany Beach. I got to close to the gray area, and due to other attacks on me from more powerful politically connected persons, my real estate license was suspended for 6 months. Talk about grief. I did the time and paid the fine, got my license back and started my own real estate firm and auction company. And I learned an important lesson. Stay out of the gray areas! From 1997 to the current time real estate has been on a roller coaster ride that has made many people wealthy and many devastated. And most have just taken the ride in stride and live their lives working hard and raising their families the best we can.

The purpose of this article is to address those who have been unfortunate when taking the roller coaster ride of the real estate market place and mortgage lending practices of the past 3 years. For many reasons including the real estate market down turn and the mortgage crisis our country is in the midst of yet another recession. The problem with recessions is the fear of uncertainty. Of how long, how deep and will the recession turn into a depression.

Although most Americans are on a solid foundation of home ownership, too many are facing foreclosure and many are facing pre-foreclosure, and others are really having a tough time because of the negative equity in their property and the current state of the economy. The number nationally is in the millions. Until we are able to resolve these issues the real estate market place will continue to slide down.

Ok enough with the bad now here comes the good news. Business is booming. It is a great time to buy. Those with wealth both nationally and internationally are poised to take advantage of the down market and buy real estate. The buyers are buzzing looking for the best deals that make sense to them and their goals. Investors wanting rental properties that yield a 6% return. Second home buyers, looking to get a dream home at an affordable price. And lest we not forget the baby boomers who want to relocate to a more retirement friendly location. As REALTORS we have to have the tools and professionalism to be able to help our customers and clients in this marketplace.

Once such tool is auction method marketing. I am always amused when I mention the word auction to both REALTORS and sellers; it reminds me of mixing oil and water. Sellers shutter at the word auction. To sellers the word auction represents foreclosure and an embarrassment that is to painful to think about. To REALTORS auction represents either no commission or a reduced commission that is demeaning to our profession. And there is good reason for these prevailing attitudes. The truth be told Auctioneers are the only group of persons that can legally sell real estate without a real estate license, that is with the exception of builders selling their own homes. Auctioneers can represent any seller and sell their property at auction with out a real estate license. Some auctioneers do cooperate with real estate agents however they have specific terms and conditions for registering prior to the auction and only pay 1% at the most 2%. The general public perceives real estate auctions as they relate to sheriff sales and foreclosure. So the water and oil effect.

The cure for the oil and water effect is two fold. One is to have a REALTOR friendly auction company to work with. Two is to educate both the public as to the features and benefits to auction method marketing and to educate REALTORS on how to make an auction method marketing presentation to sellers. And as you might have guessed I have such an auction company. At Jerry Mueller Real Estate we are all about real estate. We are in the process of launching our new and improved web site. It will be the Google for real estate. I am thinking about calling it roogle. (Only kidding). Our search capability will set the standard in the industry. Our web site will feature a Buyers Center, a Sellers Center, an Auction Center, a Rental Center, and a REALTOR Center. We will be using e-commerce in all centers for various products and services we are offering to all our Customers, Clients, Tenants, and REALTORS. We are also developing a new web site for our auction company which will be better than e-bay. Being all about real estate I have developed a program to help home owners in pre-foreclosure. It is comprehensive solving problems and helping these clients to solve their problems from soup to nuts. And it is REALTOR friendly.

The name of my Auction Company is the American Auction Marketing Association. AAMA is a full service Real Estate Auction Company that is totally REALTOR friendly. What do I mean by that? That means that any properties you have listed for sale and want to explore the auction method marketing system with your sellers you will continue to maintain the listing on the property. The program is set up for a 5% REALTOR listing fee with a co-broke of 2.5% to the listing side and 2.5% to the selling side. The listing is maintained by your employing broker, another words business as usual. Also REALTORS who have buyers do not have to jump though any hoops such as registering their buyers in advance. When the buyer registers at the Auction as long as they put the REALTOR as the selling agent they will get the commission. Of course it is advisable for the selling agent to attend the auction with the buyer to provide the professional services needed when buying at an auction.

The key component then remains education. As always education cost money. I already have an education curriculum in place that if approved by our board and the Delaware Real Estate Commission would be affordable and good for 3 credit hours. We also have advanced classes for those that are interested. Since the need is already here and immediate, I would be willing to meet with any REALTOR and their client to explain the auction method marketing system. Simply set the appointment and together we will visit with your client, it will be a learning experience for all. I will be able to show how this system can help pre-foreclosure clients as such somewhat of a distress situation. To non distress situations, simply using the auction method as a marketing tool to create excitement and get the desired results, Sold. In declining markets time is money in more ways than one. All of these facts and factors are presented at my classes. Including how to handle short sales. My program for short sales is the most innovative in the country, and is a win win for all involved.

Buyers today are looking for the best deal. To buyers the word auction is perceived as being able to get a real bargain. To be able to buy a property to get the best deal. So for all those REALTORS dealing with buyers wanting a great deal, nothing is better then having a list of properties going to Auction to show them, and being able to get your fair share of the selling commission.

I hope this stirs some interest and has a positive reaction among the real estate community. There is nothing like having another marketing system to be able to present to sellers seeking a tested exit strategy to get the desired results, Sold.

Creative Marketing, Creating Excitement and Delivering Results, that is what the American Auction Marketing Association is all about. We will be posting more information on our web site www.americanauctionworld.com and or www.americanauctionmarketing.com more to come, please feel free to contact me Jerry Mueller.