This week, Romero on Real Estate speaks with Thor Sorensen, who was the number one agent in CENTURY 21 Award’s Carlsbad office in 2008. Last year marked the seventh consecutive year Sorensen has earned Masters or Centurion recognition in the CENTURY 21 System. Even in a transitioned market, Sorensen has kept his sense of optimism and purpose and is having another fantastic year. RORE: HOW’S THE CARLSBAD MARKET?
SORENSEN: That’s interesting – I get asked that question all the time. If you read what’s in the press, you would think it’s nothing but foreclosures and short sales. But Carlsbad isn’t like other markets. We haven’t gone down by 50%, like some places. We haven’t had as many job losses as other areas, and this is an area where people still really want to live.
RORE: HOW WOULD YOU DESCRIBE 2009, SO FAR…
SORENSEN: It’s been more of a challenge, for certain. In some ways, with so many buyers, it feels like 2003 or 2004 all over again. There’s low inventory, low interest rates and the affordability index is higher than it has been in a long time. When you put it all together, in many areas it feels like a feeding frenzy.
RORE: SO IF THERE AREN’T AS MANY FORECLOSURES IN CARLSBAD, IS IT FAIR TO SAY THE COMPETITION FOR THOSE THAT DO COME ONLINE IS FAIRLY INTENSE?
SORENSEN: A lot of people think that working with banks on foreclosures is hard. I don’t find that to be difficult at all. The hard part is actually getting the offers accepted. The banks are slow to respond and there is so much competition. You can’t have buyers expecting to write offers $100,000 below list price and get anywhere. That approach is not going to work. You have to invest some time working with your buyers to help them understand the market and what it’s going to take to be successful, because a lot of people don’t understand this market.
RORE: WHAT ADJUSTMENTS HAVE YOU BEEN MAKING TO YOUR BUSINESS PLAN?
SORENSEN: I have been sending something out in the mail to my sphere every month for the past six years, so they are all used to hearing from me. But the big thing this year has been to focus on creating more personal contact. I’m scheduling additional pop-bys, carrying Padres schedules in my car, having lunch with past clients whenever I can fit it in. A personal meeting is seven times more effective than a phone call, and a phone call is seven times more effective than a mailer. So I’m meeting with people face to face two to three times a week and I’m asking them, “How can I add value to your business or your life?”
RORE: WHERE ARE YOU GETTING YOUR BUYER LEADS?
SORENSEN: I have become so much more aware of the need to ASK for referrals – from past clients, centers of influence, anyone I know or meet. I’ve learned from Joe Stumpf that the best opportunity to ask for a referral is during a transaction, not weeks or months later. So I’m asking people for referrals, but I’m also asking questions like “who do you know that’s been looking for a home but isn’t getting the results they want?”
RORE: WHAT ADVICE WOULD YOU GIVE TO A NEWER AGENT ATTEMPTING TO GET ESTABLISHED IN THIS MARKET?
SORENSEN: Start with the basics. When I started in this business seven years ago, I used to order 1,000 business cards every 90 days and my goal was to distribute 21 of them each day. If you can take that approach, and stay with it consistently, it’s going to lead to something. Real estate is a full contact sport.
RORE: SOUNDS LIKE GOOD ADVICE FOR SEASONED AGENTS AS WELL!
SORENSEN: Even though we’re all working hard to put deals together, you cannot lose sight of the fact that we are in sales. That means we must be in direct contact with other people every day, not just when we feel like it. If you aren’t devoting time each day to talking directly with people and generating new business, the best you can hope for is riding the roller coaster, where your business is going up and down and you’re never really making progress.
RORE: HOW DO YOU STAY POSITIVE WHEN SO MANY NEGATIVE THINGS ARE BEING SAID ABOUT REAL ESTATE AND THE ECONOMY?
SORENSEN: For one, I’ve stopped taking the paper and I don’t watch the news. When it rains, people are surprised when I’m caught off guard. I’m just not paying attention to negative messages.
RORE: SO WHAT IS TAKING THE PLACE OF THE NEWS?
SORENSEN: Over the first few months of this year I have really been focusing on the good things in life, as well as the good things in my business. I read Randy Pausch’s “Last Lecture”, and it really caused me to appreciate the good things in life. A lot of people are allowing negative news to influence them without even realizing it. If you can surround yourself with positive news and positive influences, you’re going to be a better person and you’re going to perform at a higher level.
SORENSEN: That’s interesting – I get asked that question all the time. If you read what’s in the press, you would think it’s nothing but foreclosures and short sales. But Carlsbad isn’t like other markets. We haven’t gone down by 50%, like some places. We haven’t had as many job losses as other areas, and this is an area where people still really want to live.
RORE: HOW WOULD YOU DESCRIBE 2009, SO FAR…
SORENSEN: It’s been more of a challenge, for certain. In some ways, with so many buyers, it feels like 2003 or 2004 all over again. There’s low inventory, low interest rates and the affordability index is higher than it has been in a long time. When you put it all together, in many areas it feels like a feeding frenzy.
RORE: SO IF THERE AREN’T AS MANY FORECLOSURES IN CARLSBAD, IS IT FAIR TO SAY THE COMPETITION FOR THOSE THAT DO COME ONLINE IS FAIRLY INTENSE?
SORENSEN: A lot of people think that working with banks on foreclosures is hard. I don’t find that to be difficult at all. The hard part is actually getting the offers accepted. The banks are slow to respond and there is so much competition. You can’t have buyers expecting to write offers $100,000 below list price and get anywhere. That approach is not going to work. You have to invest some time working with your buyers to help them understand the market and what it’s going to take to be successful, because a lot of people don’t understand this market.
RORE: WHAT ADJUSTMENTS HAVE YOU BEEN MAKING TO YOUR BUSINESS PLAN?
SORENSEN: I have been sending something out in the mail to my sphere every month for the past six years, so they are all used to hearing from me. But the big thing this year has been to focus on creating more personal contact. I’m scheduling additional pop-bys, carrying Padres schedules in my car, having lunch with past clients whenever I can fit it in. A personal meeting is seven times more effective than a phone call, and a phone call is seven times more effective than a mailer. So I’m meeting with people face to face two to three times a week and I’m asking them, “How can I add value to your business or your life?”
RORE: WHERE ARE YOU GETTING YOUR BUYER LEADS?
SORENSEN: I have become so much more aware of the need to ASK for referrals – from past clients, centers of influence, anyone I know or meet. I’ve learned from Joe Stumpf that the best opportunity to ask for a referral is during a transaction, not weeks or months later. So I’m asking people for referrals, but I’m also asking questions like “who do you know that’s been looking for a home but isn’t getting the results they want?”
RORE: WHAT ADVICE WOULD YOU GIVE TO A NEWER AGENT ATTEMPTING TO GET ESTABLISHED IN THIS MARKET?
SORENSEN: Start with the basics. When I started in this business seven years ago, I used to order 1,000 business cards every 90 days and my goal was to distribute 21 of them each day. If you can take that approach, and stay with it consistently, it’s going to lead to something. Real estate is a full contact sport.
RORE: SOUNDS LIKE GOOD ADVICE FOR SEASONED AGENTS AS WELL!
SORENSEN: Even though we’re all working hard to put deals together, you cannot lose sight of the fact that we are in sales. That means we must be in direct contact with other people every day, not just when we feel like it. If you aren’t devoting time each day to talking directly with people and generating new business, the best you can hope for is riding the roller coaster, where your business is going up and down and you’re never really making progress.
RORE: HOW DO YOU STAY POSITIVE WHEN SO MANY NEGATIVE THINGS ARE BEING SAID ABOUT REAL ESTATE AND THE ECONOMY?
SORENSEN: For one, I’ve stopped taking the paper and I don’t watch the news. When it rains, people are surprised when I’m caught off guard. I’m just not paying attention to negative messages.
RORE: SO WHAT IS TAKING THE PLACE OF THE NEWS?
SORENSEN: Over the first few months of this year I have really been focusing on the good things in life, as well as the good things in my business. I read Randy Pausch’s “Last Lecture”, and it really caused me to appreciate the good things in life. A lot of people are allowing negative news to influence them without even realizing it. If you can surround yourself with positive news and positive influences, you’re going to be a better person and you’re going to perform at a higher level.
