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!

RE/MAX International Regional Quarterly conference call

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–          RE/MAX has formed a strategic alliance with Integrated Asset Management and will distribute leads to RE/MAX agents who are CDPE certified only.  IAM is affiliated with many big banks nationally.  If you are not yet certified, please get certified to enhance your business.  If you have taken the course, please update your profile on RE/MAX Maintenance.

–          Keller Williams and RE/MAX difference – we are your business partner and don’t force you to recruit.  KW market center needs about 40 agents to reach profitability and are required to increase agent count by 10 agents per month – have to do this through recruiting any type of agent.  It takes an average of 5 years for an office to reach profitability and then you have to vest for 3 years before you get profit sharing – an average of 8 years prior to receiving profit sharing.  Profit sharing went from an average of $692 per year to $412 per year – a decrease of 40%.  No national advertising budget versus RE/MAX is extensive TV, billboard, newspaper and magazine advertising.  Top agents are encouraged to be involved the office politics through their agent advisory council are required to teach and as previously mentioned, are required to recruit.  We encourage you to do more business and grow your business

 

Now, go sell something!

 

 

Topic of the Day: Mold

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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

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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

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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

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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?

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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

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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!