Month: July 2009

It’s Time!

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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!

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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?

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Clients

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 Records

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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.

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Home

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

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Fb Li Twitter

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!

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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!

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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!

Valuable information from today’s training

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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 Reptuation

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Wooden 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!