It's Time!

It is time, to take the time, to analyze, reassess and reenergize yourself and your team. What are you saying to clients? What are your team members saying to their contacts? Where is your attitude? What is your team’s attitude? Where are you spending your time? Where are your teammates spending their time? Is everyone effective? Are they utilizing their strengths? Are you maximizing yours? What needs to be altered to get the results you want or need? Take the time – today – to answer these questions and develop a plan to adapt to your recent activity and mindset to get to where you want to go.

Over the last few weeks, I have been part of CEO groups and involved in an executive networking groups and the atmosphere has been: Flat is where it’s at – we are doing good but not great – things are better for us than our competition so we are happy. Complacency is not a good attribute in my opinion. When I hear this, it makes me wonder what the culture is in the office. Is the negative news they are hearing creeping into their conversations around the water cooler, in interoffice emails, at staff meetings, etc. These areas of communication need to be evaluated and adjusted. If you are the best of the best, there is no excuse. You need to work harder – on your attitude, your efforts, your communication and the message conveyed. There are opportunities in every market – good, bad and flat. Again, what are your people saying, doing, and working on to improve themselves. We all know the saying. “When the going gets tough, the tough get going.”

We don’t want to be flat and happy about it. We don’t just want to be better than the others in the business, and just flat lining because of the economy and media says the economy is bad. We want to improve ourselves and not compare ourselves to anyone but ourselves. We want to be better than we were the year before, and the year before that, and so on. We need to be better than we were previously. We need to look at our personal efforts and those around us and ask the tough questions I asked above.

As the market has been adjusting, we find ourselves doing more. We are making more phone calls, attending more networking sessions, speaking with more people about their business as well as ours, spending more money than our competitors to convey our message, participating in more educational events and attending more functions to learn more about others and their businesses.

Our message is positive, we speak about results and refer to numbers to convey our message and we ask how we can help others and their business. As a result, we are receiving more business. Focus on your activities, your message, your attitude, and your servant mentality and you will get business. Get it? Got it? Good!

We're moving on up!

It is true! The housing market is making its comeback. Last week we reported sales of existing homes rose 3 consecutive months and that new home sales were up in June over 3%. Well, guess what? New home sales were up 11% in July! This is more great news for us to “build” upon moving into the dog days of summer.

What is the reason for this growth? There are several factors in my opinion: low rates, the right price point, multiple offers on existing homes, the tax credit and the market conditions. As we all know, rates have been low for an extended period of time and according to Ben Bernanke in his economic update, they are going to remain low as a strategy to aid in our economy’s recovery. Builders, banks and home owners alike have been reducing prices to encourage offers – well, it appears that the sale of the century for housing has worked and buyers are coming out of the woodwork. As these buyers are making offers on resale properties and losing out to other buyers, the frustration has lead them to new homes – no multiple offers on to be builts! As the tax credit has aided in getting first time buyers off the fence, it has also spurred activity in the move up market which is resulting in the increase in new home sales as well. And lastly, the market has been decreasing for over 4 years – June or July of 2005 is when we earmarked the down turn in housing. Additionally, as we all know, what goes up must come down and vice versa so it was about time for the market to change. You can’t keep a good thing down.

The housing recovery is critical in so many ways to the general economy’s recovery – let’s keep the momentum moving in a positive direction by spreading the word. Get it? Got it? Good!

What do Clients want?

In today’s environment, clients are looking for information, communication, service, and results. It is our job to ask the right questions to determine their expectations so you can meet or exceed them. Let’s examine each area to help you improve in these areas.

In today’s day and age, the consumer has become more educated on just about every subject that is important to them. It is information overload if you let it become that way. If you go to a bookstore you will see virtually every subject covered from knitting to financing to buying or selling houses to how to raise kids and it starts with “insert subject here” for dummies to expert advice from “insert authors name here”. Additionally, the internet has given more access to more information on nearly every subject as well. It is your job to help disseminate this information for your clients and provide them with accurate, up-to-date information on our market, financing options, pricing trends, appraisals, and what differentiates our market and their neighborhood from what they are reading about which is typically more National or global in nature . This information must be factual, logical and understandable so you can have a positive impact on their decision to buy or sell. Stay current by keeping yourself educated! Think like a consumer – become an information junkie. Learn all you can about our business – starting with the contract and what each part means, reading blogs, attending seminars and trainings as well as reading trade publications, and by being active in your Realtor associations.

It is also imperative to know how your clients want to be communicated with on a regular basis. Technology that is available today allows us more options to communicate with others. Simple ways are the phone – but which one? The cell phone, home phone, or work phone. By email - work or home? Texting - again, which device? Face to face meetings are an all time favorite but very time consuming. Faxing messages, scanning and emailing may work with many clients as well. The point is, find out how and how often and do it.

Service – say what you are going to do and then do it. Call, email, text, get feedback, find out the answer, deliver brochures, put up signs, be on time, schedule inspections, whatever it is – just do it! Provide them service as if they are the only client you have and you will reap the rewards!

Results are the ultimate goal for your client. Get them their house, sell their house, rent them a house or lease it out. Quick, efficient, and professional service is what clients demand and should receive. One of the fastest ways to the top is to determine what your client wants and needs then deliver it. Get it? Got it? Good!

Now, go sell something!

Broken Record

At times I feel like a broken record – our market is different, we aren’t impacted like the rest of the country, we are seeing houses sell, etc. Well, it looks like other areas are beginning to experience what we are experiencing here in Northern Virginia. In a recent article on MSNBC it has been reported that existing home sales are up 3 months in a row – check it out here: http://www.msnbc.msn.com/id/32104105/ns/business-real_estate/from/ET - thanks for sharing Kendall Bennett. I am not sure if they are experience the number of multiple contract situations we are facing in the lower and upper price ranges like we are, but we will find out. However, I am sure they are having challenges with HVCC as it is a nationwide problem and they will experience the same problems we will have with H.E.R.A. as well – thanks Mindy Littleton. Please be sure to review the H.E.R.A. rules to give our clients the right advice with timing on closings with the new rules being implemented July 30.

In addition to the great news on existing home sales, new home starts were revised and reported to be up 3.6% in June over May 2009 numbers to an annualized rate of 562,000 – check it out even though it is a negative in regards to numbers “anticipated” last year: http://www.census.gov/const/newresconst.pdf. It is our hopes – even though hope isn’t a strategy – that with more good news like this, the media will start to report “our story” of success!

The advice for the day is to continue staying positive, find the good in each situation and keep the ball moving down field and you will get the results you are looking to achieve. Get it? Got it? Good!

Now, go sell something!

New Legislation- H.E.R.A.

Just when you thought you knew the business and what is happening in the business, a new regulation gets implemented that very few agents are aware of and that will impact our business. The Housing and Economic Recovery Act (H.E.R.A.) requires that lenders provide the borrower with a Truth-in-Lending statement (nothing new) and that the borrower has 3 days to review it and no fees (other than credit report) can be collected from the borrower until the review period is over. Assuming the lender sends this out immediately, 3 days are allowed for mail and 3 days are allowed for review, then the lender can receive payment for the appraisal. Under the HVCC – appraisals can’t be ordered until payment for the appraisal is received – hooray! This is up to a 7 day delay in ordering appraisals up front. So be sure to make a special note of this scenario.

The next potential delay that can occur is closer to settlement. If the Truth-in-Lending form changes by more than an 1/8 tolerance of accuracy (used to be a ¼) a new Truth-in-Lending form needs to be reissued and, once again, the buyer needs 3 days to review after receiving it by mail, 3 days later for a potential additional 7 day delay. It is necessary to get your purchasers locked in early to avoid any delays or penalties for delays in closing. Also, you must do your due diligence to ensure the buyers of your listings are locked in well in advance of settlement. This scenario is very likely to happen on short sales and when we have delays in foreclosure settlements as a result of title problems.

If you have any additional questions about this OVER legislation of our industry, contact your lender.

Another area of concern is the sales price changes – increase price to cover closing costs – decrease price as a result of home inspection items – changing settlement dates – and even more…stay on top of your transactions so you don’t get crushed by them! Get it? Got it? Good!

Social Media

As many of you have read and are experiencing. Social Media is a growing part of our industry. As I mentioned to Bryan Felder yesterday, it is a spoke in your marketing wheel and it definitely needs to be there but should not overwhelm you. Many people spend an inordinate amount of time with Social Media so you need to be cautioned on how much time and resources you are spending on this part of your business. You need to have exposure on LinkedIn, Facebook, Twitter and post blogs at a minimum to get your real estate business to Web 2.0.

We are trying to keep you abreast of what to do in our efforts to keep you informed in this arena. Our wonderful Great Falls Office Coordinator, Kendall Bennett, is teaching Social Media classes on a monthly basis and is available to speak with you about what she has learned, what she is experiencing and what her thoughts are on this latest real estate tool. Here is a quiz she sent me yesterday – see how you do. http://www.realtor.org/RMOQuiz2.nsf/SocialNetworking?OpenForm.

Here is another article I came across that we need to pass to keep our business moving along in a positive direction. http://www.inman.com/news/2009/07/21/bill-would-extend-higher-loan-limits. Spread the word! Get it? Got it? Good!

Now, go sell something!

The market is heating up and so are tempers!

You are not going to believe the first part of this story but the second part you will. This weekend, one of our RE/MAX Gateway agents placed a townhouse on the market for sale in Centreville, VA for $250,000. If you have been reading my previous blogs at www.scottymacsblog.com you would know that this segment of the market is extremely competitive with upwards of 15 contracts on houses that are in good condition. Well, this property fits this description and we received 7 contracts which are what our sellers were prepared for but what happened on Saturday was completely unexpected. As you can imagine, to receive 7 contracts, you need to have a lot of activity to produce these results. An agent, who was showing the property, had removed the key from the lockbox, locked the door and proceeded to show the house. Another agent arrived to show the house shortly thereafter, knocked on the door, opened the lockbox, found it empty and proceeded to ring the doorbell. The first agent opened a second floor window and told the second agent they would have to wait until they finished showing the property to see it. When the first agent opened the door, the second agent attempted to walk into the house. As the second agent walked into the house, the first agent grabbed the second agent by the throat, lifted them up, slammed them twice against the wall, threw them to the floor and proceeded to kick them out of the door while slamming the door against their legs. Luckily, for the second agent, a third agent pulled up and proceeded to call 911 as well as the owner of the property to inform them of the situation. Shortly thereafter, the owner got home, saw an ambulance driving away and two police cars in front of their townhouse. We are awaiting the results of this assault and will keep you posted. By the way, agent number one is male, agent number two is female. Unbelievable but true.

The second story is also true but is more believable, our market is going strong. Inventory levels continue to decline, demand is on the rise, we have multiple offers in virtually every price range and we are experiencing appraisal issues. This is adding to frustration levels of agents in our area. However, it does not mean we need to resort to violence. We as agents need to respect other agents, and protect the public. We need to be courteous, professional, and keep our emotions in check. By controlling our emotions and giving the right advice and acting responsibly we will raise the standards of agents in our industry. Get it? Got it? Good.

Summertime fun!

It has been typical to see this time of year slow down in real estate. Families take vacations, agents take breaks to spend time with their families as kids are out of school, and it is golf season and so many other reasons. Well, this year is different. We are busy! Houses are selling! The new home market is also on fire.

This week, I had the opportunity to speak with several different builders. It was refreshing to hear that their sales have been above expectations and they have met or exceeded business plans for the month and some, even the year. Some builders are even talking about hiring construction workers as new housing starts up 3.6% in June! Additionally, in speaking with our friends in the title business, they continue to post strong numbers. Mortgage rates remain low so as a result – lenders are staying busy. It is a great time for those who work hard and take the time to educate themselves and their clients to produce results. We continue to see first time buyers enter the market as the $8,000 tax credit, low rates and low prices help boost sales. Investors are seeing opportunities as well so they continue to enter the market and contribute to our sales numbers.

Are there challenges? Absolutely. We are experiencing issues with appraisals, short sales and lack of inventory. The question is, when will these issues get resolved? The HVCC – home value code of conduct – needs to be dissolved. Appraisers shouldn’t be placed in an Ivory Tower, not held accountable for their actions, and communication between the lender and appraisers should be restored – it is bad policy. Short sales need to have a streamlined, standard process to get them approved. If all qualifications for a short sale are met – especially true hardship – they should get approved quickly with no last minute hitches. As more short sales come on the market, we see longer approval times and/or last minute foreclosures as communication between loss mitigation and REO departments are minimal or nonexistent. And lastly, people who are considering selling, should do so now to bolster inventory levels. We are currently at May 2005 levels. We are seeing multiple contracts across all price points, rates are low, the tax credit is only in effect for limited time, and we don’t know if prices will continue to decline with the HVCC, continued foreclosures and short sales and if demand will continue to be so strong. Today is a great time to sell and move up!

Call us today to learn more! We are here to help!

Agent Market Updates

Market Update

Valuable information from today’s training

Appraisal issues

• Coming in low in all price ranges
• Too long to complete
• Appraisers and lenders can’t communicate which is causing delays in settlement dates
• Appraisers are coming from outside market areas – in some case close to 100 miles away
• Maintenance issues are listed as safety issues – in one instance a carpet stain was listed as a potential mold hazard
• Low appraisals on FHA loans are not being submitted to HUD
• Why are FHA appraisals good for 6 months when appraisers and lenders are only going back 90 days?

Short sale issues today
• Banks are inundated with too many cases and not enough “trained” staff to handle processing
• Short sales are taking longer to complete
• Some banks are asking defaulting borrowers to repay a portion of their loans through signature loans – no interest – 5 to 8 year terms
• Some banks are countering ratified contracts with higher prices
• Be sure to not have home warranties or seller paid termite inspections as these are getting “kicked” out at the last minute
• Cases are being closed with no notice given to parties for “technical” issues of missing suffixes after a long period of negotiations
• Still no standard procedure in place to streamline the process – even within same bank
• Be sure to check listing agent’s success with getting short sales approved


Motivate sellers and build your inventory
• Lack of supply today is an opportunity for sellers today
• Increased demand
• Multiple contracts in all price points below $400,000 and above $1,000,000 in certain locations
• $8,000 tax credit for first time buyers is only in place through the end of November 2009
• Will HVCC continue to erode home equity - $1.7 Trillion already lost since its implementation
• Rates are great today but where will they be next year
• Will short sales turn into foreclosures and reduce prices further?
Now, go sell something!

Your Reputation

The great leader and coach John Wooden once said, “Your reputation takes years to develop and only a minute to destroy”. Do the right thing every time and your reputation will lead you in a positive direction and it will also leave an indelible impression upon others which will carry you to success in all areas of you life. There are many factors that go into building a quality reputation – here are just a few - integrity, character, hard work, follow through, and results. It is imperative to not be known as unethical, unprofessional, unresponsive or that you walk the integrity line – if you do, you will only have temporary success if any at all.

In my opinion, it starts with integrity which includes your word. Do what you say you are going to do. If you tell someone that you or your client is going to do something – stay with it –make your clients perform to what they committed to verbally. Telling people one thing yet doing another is the fastest way to ruin your reputation. You lose trust in those you speak with and in the end get no respect and your actions are indefensible. Your word is your bond – don’t stray from this premise. If people take you at your word and you follow through you will be known as dependable, reliable and a person of honor – all quality characteristics. Having a reputation as being a storyteller, liar, undependable, untrustworthy are all problematic qualities and won’t get you far in any endeavor for any length of time.

Character is described as doing the right thing when no one is looking. Your character is developed over time and is a result of your actions and follow through on tasks you undertake. You want to be a person of character and not a character – again do what you say you are going to do and your reputation will grow as will your bottom line.

The reputation of being a hard worker who is effective will get you more responsibility, more business, and more referrals. Winston Churchill said, “If you want something done, give it to a busy man”. Getting in early and staying late – doing just a little more than the next person will reap big rewards. Water boils at 212 degrees at 211 degrees it is just very hot water – one degree makes all the difference. The horse who wins the race by a nose wins hundreds of thousands of dollars more than the horse that loses by a nose. Keep in mind; it is the little extra effort that pays off. Be known as an effective, efficient, and hard worker.
Follow up and follow through are cornerstones of a solid reputation. If you say you are going to email, call, send additional information, show up, and be on time – do it. If people need to follow up with you, success will be difficult for you to attain. If you are always late, don’t return calls, don’t answer your phone you will get the reputation as being unreliable – don’t fall into this category. It is a reputation killer!

All of this being said – you need to get results. You need to get people what they want through honesty, integrity and effectiveness. Tell people what they need to hear, not what they want to hear. Do what you say you are going to do. Know the process to help you get results and guide people through the process. If you don’t get results, you won’t build a solid reputation – you will only be known as a talker and not a doer.

Be known as reliable, dependable, results oriented, helper, leader, teacher, mentor and success will be yours. Get it? Got it? Good!
Now, go sell something!

Topic of the Day – Mold

This week we had Roland Jarrett in from Nexters Restoration in to speak about the process of testing and remediating mold from residential properties.

To have Nexters Restoration analyze and determine if something is potentially mold, there is no charge. Estimates to remediate mold are also free. However, if a swab test is required, there is a $150 lab fee. If levels are rare – no treatment is required. Low levels in basement require remediation but not always on upper levels. Medium and higher levels always require remediation no matter where these levels are recorded.
If mold is present, the first objective is to remove the source of moisture as that is what attracts mold and encourages its’ growth. If the source of the moisture isn’t removed – the mold will come back.

The typical process is to remove drywall, insulation, wipe down walls to sterilize them – in some cases blasting is required, apply kilz or drylock paint to walls and replace everything that was removed. Using dehumidifiers to reduce relative humidity levels below 40% is also recommended.

Unconventional approaches include replacing sump pumps, water proofing walls from the exterior, and adding French drain systems.

Depending upon the type and quantity of mold, air duct cleaning, and complete cleaning of HVAC is required to mitigate mold levels.

The Tyranny of the Status Quo

What is the status quo? As Webster’s dictionary defines it, it is - the existing state of affairs (at a particular time). What is wrong with the status quo in real estate? The market is in a constant state of flux. Interest rates change, inventory levels change, the market shifts between a buyer’s market to seller’s market regularly, housing prices fluxuate between areas & neighborhoods, attitudes of buyers, sellers and agents alter within the market, and as we know now, the appraisal portion of our transaction has also adjusted. The internet has brought more information to more people more quickly so it is imperative that we as agents adapt to change.

Let’s analyze where we need to make adjustments in our business to maintain a competitive edge. First, our conversations with clients, other agents, lenders and appraisers must change. We have seen inventory levels steadily decline, demand steadily increase, we see multiple contracts throughout our area and across different price points and we are definitely in a seller’s market. Let people know how the market really is and not what the media says it is. As an example, The Washington Post wrote about Short Sales and strategic defaults on mortgages this past weekend. We have been dealing with these issues for several months now.
Our marketing efforts must be a reflection of how to attract what is “working” in our marketplace. Today we are seeing investor and first time buyer purchasers buying a majority of houses in Northern Virginia. Prices are down, interest rates remain low, the rental market is hot, and the $8,000 tax credit are making it ideal for buyers in both categories to enter the market. Hold home buying seminars geared towards first time buyers and investors. Now is also a fantastic time for move up buyers to take advantage of the market and “switch” equity positions. Call past clients and tell them how the market really is, build inventory and sales will follow.

Our education – as previously mentioned in the internet comment in the first paragraph – CDPE, winning multiple contract situations, Green Designation are what we need to direct our attention to in today’s market. Determine the next trend and pursue your education in that arena. The more you know, the more you will grow and your bank account will follow.

Our networking efforts need to be increased. You need to get in front of people to get your message out. Now is not the time to sit on the sidelines. Make the effort and see the results. Networking opportunities are everywhere – informal places like the gas station, grocery store, schools, games, swim meets, swimming pools, etc to formal ones like chamber events, BNI’s, etc. Also, network with lenders, builders, title companies and other Realtors to gather information on our market for you to share with others you meet to show your expertise.

Our prospecting efforts need to be more intentional. Be direct in regards to past clients, sphere of influence, and adding new people to our databases. Your prospecting efforts need to be continuous, consistent, as well as meaningful to the recipient. Send the right message and get sent referrals. Your prospecting must be done on a daily basis – not on occasion.

What should stay the status quo – diligence in which you pursue your personal and business growth – persistence in your prospecting efforts to expand your database and your business as well as consistency in your communication with your sphere in regards to the number, type and message delivered to the people in your database. Your pursuit for success is reflected in all of your endeavors you undertake in your daily routine.

Get busy getting busy. Get it? Got it? Good. Now, go sell something.

Expert Opinions on Our Market

Each month for over 4 years, we have gathered top real estate agents to discuss the market, trends and future of our business. Here is what we discussed this week:
Unprofessional agents are controlling a lot of the business out their today. Lack of returned phone calls, delays in presentations, incorrect information listed in MLS, and general lack of respect for fellow Realtors.

The short sale process is taking even longer as banks appear to be more disorganized than the previous several months. Paperwork isn’t being logged, lost or is being asked to be resent for verification. In some instances, short sales have been lost to foreclosure as there is no communication within the bank. In one scenario, the seller’s suffix wasn’t at the end of their name on some paperwork so the lender closed the file without notifying any of the parties in the transaction – just reported no updates at this time for 3 weeks before realizing they had actually closed the case. There is no end in sight as more short sales continue to come on the market. A uniform process should be implemented by banks to streamline the process and allow more short sales to go through.

Appraisals are still a leading concern. The HVCC process is extremely disorganized and has many flaws. Here are some examples: An appraiser was assigned to do an appraisal in Alexandria VA and the appraiser was from Aberdeen MD – nearly 100 miles away. An appraiser was assigned an appraisal in Oakton VA and they were from Waldorf MD – over 75 miles away. Two appraisals were done on a property in Piedmont – one was $550,000 the other $635,000 on a sales price of $600,000 – the underwriter said both were flawed and said the house was only worth $590,000 – they were in OKLAHOMA! How can they say what a property is worth when they aren’t familiar with our market and more importantly – never saw the house and based their opinion on 2 flawed appraisals? Many of the appraisers aren’t following through on their commitments and add to delays in approvals by taking 10 to 14 days to get their appraisals in to the lender. Values are being surpressed by unprofessional, uneducated, and inexperienced appraisers who are the low bidders for appraisals through Appraisal Management Companies.

Average sales prices are down for everyone in the group – more first time buyers, fewer move up buyers, and investor purchasing low priced homes for investment opportunities.
We continue to have pent up demand for housing. The market is on fire below $450,000 with multiple contracts on virtually every home that is in good condition, shows well and is priced right. With many properties experiencing multiple contract situations, agents are starting to look at new homes as an option. There are tons of calls coming in from buyers – many have a huge back log of buyers but no inventory to sell them.

We still are not seeing foreclosures flood the market as has been discussed for nearly 9 months. Our inventory levels are down to May 2005 levels and if they were to come on the market, we could absorb the inventory with the pent up demand we have in our marketplace.

The agents were encouraged to remain optimistic, to be proactive in reaching out to move up buyers, educate the public on the opportunities available and to go sell something!

Care

A question posed to me recently is, “Do you care more about your people’s success than they care about their own success”? After some deliberation, my answer was yes – at times I believe that we need to provide more to our agents to help them get over the hump or get them on their way to a successful career in real estate and that they should seek more counsel from us to become more successful. In understanding that everyone defines success differently, it is still imperative to understand what success means to each of our agents.

So, what was learned from this exercise? I need to ease up – let the agents take advantage of what we have to offer – stay current, but don’t add more to our plate or theirs by offering more programs – and encourage them to apply what they have been taught to their business to facilitate their success as well as take advantage of what programs we currently have in place. Will we still care? Yes, of course, and here is how we plan on accomplishing our goal – the acronym CARE:

C – Commitment- we are committed to ensuring our agents are the most educated, professional, top producing agents in our marketplace by providing them with training opportunities, real estate exchanges, mastermind groups, blogs, and up to date information for them to share with the clients, sphere of influence and those they encounter on a daily basis.

A – Attitude – We will be a positive, upbeat and energetic force in their environment that will provide constructive feedback to enhance their business.

R – Responsibility – We will encourage our agents to be responsible for their careers by providing an encouraging environment, the right tools for success, a supportive staff eager to assist our agents, and the time to assist them with their efforts. We will also be responsible to them to by providing constructive feedback and by helping them in their endeavors to be successful in real estate.

E – Education – We will continue to keep our agents educated through our current training schedule, one on ones, quarterly meetings and our business specific summits so they can help buyers and sellers make the right decisions when buying and selling properties, grow their teams and build their business so they can achieve the success they want out of their business.

We will always care and we will continue to inspire our agents to greatness and will only seek to control what we can control and not care more than they do about their success. You control your destiny, take advantage of what is available to you, learn, earn, grow and succeed. We are here for you. Get it? Got it? Good! Now, go sell something!

Should you sell FSBO?

In a conversation I had today with one of my agents, I was asked why would someone list their home FSBO (For Sale By Owner)?

This was my response…

Nationally, the average FSBO gets 29% less for their comparable property than a home listed by a Realtor and make up for only 7% of all recorded sales nationally. In a report published by the National Association of Realtors in February of 2009, the median selling price of an open market FSBO home was $150,100, while the median price for agent-assisted sales was $211,000, as most home owners are unaware of how to properly price the property based upon current market conditions.

FSBO’s tend to have a longer time frame on the market due to…
• less exposure due to no MLS publicity
• limited website distribution
• limited market research to advertise to potential buyers
• no word of mouth advertising between Realtors
• owners miss out on the vast exposure through media outlets Realtors have access to through social media marketing, blogs, etc.
• limited availability of showings and feedback due to no lockbox
• limited or no access to forms
• purchasers want to negotiate more because of no Realtor involvement
• owners are not aware of the showing, prequalification and settlement process

Pitfalls to avoid…
• HOA guidelines, rules and regulations
• Pre-qualifying or approving potential buyers
• Reputation of other parties involved – other Realtor (if applicable), lender or loan broker, title company
• Price or points – what’s better?
• Appraisal (meeting, providing comps, discussing market trends, etc.)
• Home inspection rules and regulations
• Time frames and hurdles to jump over to get to closing and what happens if they are missed
• Who orders what? When?

In the long run, it pays to hire a professional, full-time Realtor to help guide you to a successful sale and settlement. Call us today – Results Realty Group – (703) 652-5777.

Pieces of the Puzzle

Pieces of the puzzle that lead you to success – what are they? In today’s market, one of the most important pieces is knowledge. You need to know the numbers. How many houses are available for sale? How many months supply do we have today? What are prices doing - going up, down or remaining stable? What are the average days on market? What are interest rates? With these numbers and others you need to know how they compare to where they were last week. Last month? Last year? Additionally, you need to know what markets are “hot”. What price ranges are selling and which are not and why. You need to know what is happening in the industry – underwriting guidelines, appraisal rules and regulations, loan programs and guidelines, and what is going to change that will affect our industry. You have to know the contract and all addendums and be able to communicate what they say and mean to your clients.

Prospecting is also a very large piece of the puzzle. All of the knowledge in the world is useless without someone to share it with. Your efforts need to be intentional, focused and proactive. When speaking with people, tell them what you are going to tell them, tell them and then let them know what you told them. If you are looking to help people in distress, let them know. If you are looking for buyers, let them know. If you want to work with clients not in distress, let them know. Be specific, be direct and be positive in your approach and you will reap the rewards.

Another puzzle piece is time management. Setting a schedule, following it and incorporating the following areas of into will help lead you to success. Find time to work on your business, schedule working in your business – showings, listing appointments, writing contracts and closings, make time for your family commitments and friends. Also make sure to include community involvement, to get involved in your association, and work time for charities into your schedule. As you have heard, the more you help others, the more help you will receive.

You must also work on sharpening your skills regularly. Rehearse your presentations, attend trainings, read sales books, take courses on selling. Learn to network better by having your elevator speech prepared and be able to communicate it at any time. In real estate, we are always “on” so practice to be prepared.
Your attitude also needs to fill in one of the holes in your puzzle. A positive, upbeat and optimistic attitude will give you energy, focus and determination when times get challenging. Remember, helping people and being solution oriented will produce huge rewards for you in life and in business.

Work on you delegation. Only work what adds to your bottom line. By only doing what creates revenue and delegating the rest makes you an asset to your team. Give up control of paperwork, mailings, brochure creation, feedback calls, MLS input, etc – review it but don’t do it. Get busy getting in front of people and your bank account will grow!

Tools are another piece of the puzzle. You need to know what works and why and how it can help you and your business. Know how to work on social media sites effectively and efficiently and don’t let them be a distraction. Use them to enhance your marketing and to develop and grow your sphere. Also, know which devices are most effective for your business and invest in your business. In today’s market, you need at a minimum a lap top with wireless capabilities, portable printer & scanner, PDA/IPhone/Blackberry, video capabilities through a flip video or camera, and a digital camera. Also, you need to know what software programs will help make you more productive, efficient and effective.

Put your puzzle together today and your success will follow. Get it? Got it? Good! Now, go sell something!

Agent Market Updates

Lorrie Hunter's view of the market...

Agent Market Updates

How are our agents seeing the market and what are they hearing? Watch this short clip to find out!

Work on your Business

At the AT&T National golf tournament yesterday, we watched Vijay Singh hit balls at the driving range. He had obviously been there prior to our arrival as he had already worked up a sweat. We watched him hit balls with precision for close to a half an hour and he was still on the range when we went in to watch others play in the tournament. He was doing all of this prior to his 18 hole round in the tournament. Then, as we were leaving, he was back at the range hitting balls. As many of you know, Vijay is at the top of his profession.

So, you ask, what does this mean? In my opinion, if you want to be at the top of your game like Vijay is at the top of the golf game, you need to be work on your business as much as if not more as you do in your business. To stay on top of the real estate game – learn all you can about the business as often as you can. Start a mastermind group and discuss trends in the market, read blogs and subscribe through RSS feeds of writers you like, speak with industry leaders – not just locally but nationally as well and ask what they are experiencing in the market, read books on real estate, attend conventions, seminars, and trainings. The more you know, the more you can communicate your value to others, the more referrals you will get and the more your business will grow.

In addition, have a business plan with a course of action to help you attain your goals. Start with short term goals, set mid range goals then lastly have strategic long term goals. Everyone at the top of their game has goals – on paper. Learn and mimic top professionals in other industries to grow your business. Get a mentor, coach or entrust a successful person to share your ideas with, to hold you accountable and to provide you with the right feedback to help you succeed.
It is easy to get caught up in your business – showing houses, breaking your schedule to meet with a new client, putting out “fires” that pop up, not delegating enough lower revenue generating tasks, etc. instead of working on your business. Working on your business takes time, diligence and discipline but it is critical to your success. Differentiate yourself from others in the industry and start working on your business today.

Get it? Got it? Good! Now, go sell something!

Stress

Recently the key word in real estate has been stress. Stress because of the other agent’s lack of professionalism, stress of short sales and the process, stress because of appraisers, stress over underwriters, stress because of unrealistic buyers and stubborn sellers –it is mind boggling. Experienced agents and managers who have been in the business over 15 years haven’t seen or been through anything like it in their careers. It has brought some to the point of taking a hiatus, others are thinking about changing careers, and others are looking for ways to beat it. The bigger question is when will it change and how.

No one has a crystal ball so we can’t answer when others will change but you can change yourself. As we know, it is how you respond versus react to a situation that determines your outlook on the business. If everything is construed as a problem, a hassle, or an inconvenience – it will be. If you look at each situation as an opportunity to help others solve a problem, help them make the right decisions, or give them an opportunity to learn about the business, the contract or the process, your stress level will go down as you see yourself as a solution oriented –not as every situation is a problem.

Next, consider taking a vacation from the business. In the movie What about Bob, Dr Leo Marvin (Richard Dreyfus) told Bob Wiley (Bill Murray) to take a vacation from his problems. So, if your business is your problem, enjoy a mental health day or two or even more if you can with no phones, emails or ties to the business. You should come back refreshed and ready to tackle your daily real estate challenges.
Also, try listening to motivational tapes or watch inspirational videos. We have all seen them before but revisiting them can only help – not hurt! As Zig Ziglar says, “Motivation speeches don’t last and either does a bath so take one every day”. Again, have an open mind and just try it!

Reach out to your peers and ask their advice about how they handle their stress levels when they reach their tipping point. What are their sources for relieving stress? Sometimes just talking about it helps relieve it.

Many others exercise, garden or read to release their stress levels and some even write about it. Start a journal to let it out on paper. Blog about it and how you relieve your stress to help others – it can help – I assure you. The thing to recognize is what works best for you and do it!
Get it? Got it? Good! Now, go sell something!

Real Estate Information Exchange Update

Our Monthly Real Estate Information Exchange at the Market Street Grill was once again filled with lively conversation, outstanding & relevant real estate information and great networking opportunities. We covered topics such as short sales and recent bank changes. We are hearing more about banks asking for mortgagees to hold a reduced note, interest free for up to 7 years to offset the mortgagors losses and the impact it is having on getting short sales through. The conversation also went on to discuss reporting MRIS violations on listing agents who do not properly change the status on listings with contracts in our multiple listing service. We also discussed which areas are “emerging” as hot markets and where we are seeing more multiple contract situations occur. More frustration was discussed about how we are having increasing difficulty with cooperating agents and getting responses from them in a timely fashion and how to handle them through Professional Standards to “police” our own. We also covered our recent involvement in Top 5 in Real Estate and how it will help us differentiate us from others in the industry as well as help us promote ourselves more professionally to the public. On the mortgage side we reviewed how ARMs are a great alternative to fixed rates as fixed rates continue to rise. FHA 5/1 ARMS are currently at 3.5% with caps of 1 and 5 – a very viable option for many buyers in our market today! Conventional 5/1 ARMs are at just 3.625% - very attractive as well! We also heard that NVR had acquired WCI’s land holdings in Northern Virginia out of bankruptcy court on Tuesday by outbidding several other National Builders.