Online Real Estate School

MARKET REALITIES

2009-07-04T20:16:00.000-07:00

Baris is fully aware of the state of the economy and that people have lost equity and are losing their jobs, and for them buying right now is simply not an option.

" But there are still a vast number of people who can buy' he emphasizes. "Every Realtor should be out there appealing to first-time home buyers.

"We should be talking to renters. We shouId be telling them that for the price of renting, often times they can own and that doesn't even count the tax advantages of ownership. Many renters who can come up with a 3 to 5% down payment can qualify for FHA financing.

'This is a conversation that needs to be going on right now but it's not a message that we're hearing out there. We (Realtors) need to be doing that all over the country’

Tax Appeal Parties

2009-07-04T20:13:00.000-07:00

Maybe it's a question of going with the flow. Or maybe it's a question of seizing an opportunity to be visible in a positive way.

Or maybe it's just a good old-fashioned idea to help your neighbors when they need it most.

Whatever it is, Ken Baris says, "I came up with the idea to create Tax Appeal Parties· and they are a great way to help people, build goodwill, generate referrals and keep your name in front of potential clients by building tremendous mindshare.

"All across the country property values have dropped," says Baris. "This is an opportunity for people to appeal their property taxes and save money, if they know how to do it.

"This is especially important now as so many people need a financial break. Baris says sales associates are in a particularly good position to help others understand how taxes are assessed and what current values are. With a little training, they also can help their neighbors win tax appeal cases.

For instance, in New Jersey where he lives, property taxes can be appealed whenever the fair market value assessment is more than 15 percent over true value.

There are 81 homes in my neighborhood, and I realized every one could have significant savings, he said. So he emailed and sent letters to everyone inviting them to a wine, cheese and tax assessment party at his house. People were told that everything they would need would be at the party including their tax assessments, comparable sales, forms and instructions.

We had owners from 35 homes attend. We set up a laptop computer and a 24·inch monitor and we went over what it takes to win a tax appeal. And I pointed out how lower taxes could raise our property values. I helped people fill out the appeals forms.

The party was a great success.

"It gave everyone a chance to meet everyone else. But l also ended up meeting with more neighbors the next week. In the end, we helped about 50 neighbors with appeals - with no cost or obligation to them." And the feedback was tremendous.

"The day after the party, we took a listing as a direct result of the party and two more people say they will be listing with us soon. I had not met two of the three before - and would not have been thought of for the listings if it hadn't been for the party. I've also received referrals."

Baris took the idea to his office and a sates associate, who lives in a condo building, decided to try it.

"There are 415 people living in his complex. He contacted them all, and got a huge response for meetings. He is going to take listings as a direct result as well.

Meet Ken Baris

2009-07-04T20:10:00.000-07:00

Kenneth B, Baris, CRB, CRS who holds a bachelor's degree in Communication from Rutgers University, is the President of Northern N.J. based Jordan Baris, Inc., Realtors· and the son of Jordan Baris, the firm's founder.

Among his many achievements, he and a partner developed and licensed Top Presenter to Top Producer Systems, which was awarded the best software product of the year by the National Association of Realtors.

A founding member of the Zillow Advisory Board, he is also on the Executive Committee of elumindata, Inc., a business analytics software company. He is a founder and serves as a Director of First State Bank of NJ.

An accomplished speaker, Ken has been featured at numerous national conferences and has been seen on CNBC and NBC National Nightly News and is frequently quoted in USA Today, The New York Times, The Wall Street Journal, CNBC.com, and Bloomberg.com.

Jordan Baris, Inc., Realtors Established in 1952, Jordan Baris, Inc., Realtors· is one of the oldest and most respected full-service real estate brokerages in New Jersey and the New York metropolitan area. The firm operates offices in W. Orange and S. Orange and has a team of close to 200. A member of leading Real Estate Companies of the World, the firm provides national relocation services and is renowned for both superior customer service and leading edge technology.

Jordan Baris, Inc., Realtors·
50 Mt. Pleasant Avenue
West Orange, New Jersey 07052
T. 973-736·1600 F. 973-736·51 59
www.jordanbaris.com . kenbaris@jordanbaris.com

Watching The Bottom Line

2009-07-04T20:05:00.001-07:00

Baris urges his sales associates to work smarter and take advantage of the exploding number of free outlets to make contact with potential buyers and sellers.

''There are free Web networking sites like Facebook where you can reach lots of people. Twitter is another excellent choice for brokers. There are social networking Web sites that are fantastic for Getting your information up where people can see it, and the price is right.

"You can use-mail blasts. Offer your services to speak at local organizations. Create opportunity for yourself. Host Home-buyer seminars al the local library.
"

Speaking engagements and free seminars, he says, are no different from holding an open house.

"Sellers think open houses are for only Them, but they really serve many purposes.

Agents make contact with potential buyers and sellers. Home-buying seminars do the same thing. You may have 50 'home buyers' come to your seminar, but you end up with a couple of listings from people who need to sell their current homes first."

Baris believes the public has lost its perspective on real estate and that it's up to real estate professionals to bring it back.

"Everybody has heard the story about John D. Rockefeller who stopped to get his shoes shined on the way to work and heard the kid shining his shoes giving stock tips. That' s when he sold his stock because he knew the market was about to crash. He knew that when everybody thinks they're an expert they have no basis for investing.

"The same thing happened in real estate. Everybody thought they were an expert and started jumping in. And the same thing happened. The market crashed.

Rockefeller went back in and bought up good companies for pennies on the dollar while everyone else was afraid. That's where we are now. People are afraid."

OPPOSING THE NAYSAYERS

2009-07-04T19:16:00.000-07:00

"When I go to cocktail parties some body will ask me. 'What do you do?' I say I 'Ill a Realtor, and the response I get is, 'Gee, l ' m sorry.'

I tell people, 'You're saying that because values are down right now. But what you should be thinking is that there is tremendous buying opportunity out there. You should be looking to get into a more expensive property."When properties do start going back up in value, the more expensive ones are going to go up even faster. This is the time you should be buying the most expensive properly you can comfortably afford."

And he dismisses the notion that the home seller could be taking a beating.

"Sure, you're selling for less – but you're also buying for less. I f you had a house that had a value once of$600,OO0 and it's now worth $450,000, you think you're losing $ 1 50,000 in equity. But you need to remember that the house that once had a $ 1 million value is now selling for $750,000. You make a net gain by moving up."

And the very next sentence he wants buyers to hear is: "People who are buying real estate today are going to be thought of as geniuses in 10 years."

He concedes prices may still drop over the next 12 months or longer, but over the next 10 years real estate will appreciate.

"History repeals itself," he says. "In 10 years or less values will be fantastic compared to what they are today."

To Thrive In The Current Market ..Be Positive. Be Innovative. Be Visible

2009-06-29T03:41:00.002-07:00

Ken Baris is beyond positive about real estate. You could even say he's excited. When he talks, it's like 2004 or 2005. There's a cascade of words like "opportunity," "fantastic" and " tremendous'".

"Buy Now'," he says. "Take (advantage of this unique opportuity" Either Baris hasn"t read a newspaper in a few years, or he has a unique understanding of where this market is going.

" Why isn't the message getting out thal right now is a tremendous buying opportunity wonders” Baris, president of Jordan Baris lnc. Realtors, based in West Orange, New Jersey.

"We ought to be putting up billboards that say, 'Attention bargain shoppers! Real estate on sale now 25 percent off peak prices!'

“It is not a time to be timed. Nor is it a time to back off. Nor, clearly, is it a time to be pessimistic or cynical.

"Furthermore, interest rates are in credibly low! The savings on interest alone arc huge!". Baris stated. "What we've launched at Jordan Baris is a 'Thought Leadership Campaign.'

He says, "The message we need to get out is that now is the time to buy real estate and, if you do few years from now people are going 10 say you' re a genius."

Real estate agents in top stressfull jobs

2009-06-29T03:41:00.001-07:00

(CARLSBAD, California)- The employment Website Careercast.com has named "real estate agent" as one of the top five most stressful jobs in the country, but not as stressful as being a surgeon or an airline pilot.

Among the least stressful jobs were actuary and dietitian.

The site, which lists 200 jobs. said the top five most stressful were: surgeon, airline pilot, photo journalist. Advertising account executive and real estate agents.

The least most stressful were: actuary, dietitian, Computer system analyst, Statistician and astronomer.

Florida considers mandatory registration of empty homes

2009-06-29T03:40:00.001-07:00

(TALLAHASSEE. Florida) - The State or Florida is considering legislation that would require property owners to identity empty homes so that State and local officials can watch them to make sure they do not become the targets of vandals and house squatters.

The bill requires that property owners pay a fee to place vacant, abandoned and pre-fore closure homes on a Web site. The site would be monitored by both state and local officials to make sure homes are kept in good repair.

The purpose of the biII is to stabiIize housing markets in areas hard hit by foreclosures, said sponsor Representative Ari Abraham Porth, D-Coral Springs. He said deteriorating homes harm housing values for properties around them.

City says owners must register foreclosed properties

2009-06-29T03:39:00.002-07:00

(MEDFORD. Massachusetts)-City Officials, worried about the rising tide Off or eclosures and the deterioration of vacant properties, have adopted an or finance requiring property owners to advise the city when a home is empty.

The ordinance is designed to make sure local officials know what homes are vacant so that city departments can monitor their upkeep.

In the past, the only way the city would know if home was empty was when neighbors would call and complain about vandals or such things as the smell of gas.

Housing starts down, Mortgage applications up

2009-06-29T03:39:00.001-07:00

(WASHINGTON D.C.) - In what can be interpreted as "good news" for sales associates, the Mortgage Bankers Association reports mortgage applications are up and the Commerce Department reports new housing starts are down.

The combination of the two shouId help drain off inventory of unsold homes. The MBA said applications increased 45.7 percent from the week before and are 5,2 percent up from this time last year.

The average contract interest rate for 30-year fixed rate mortgages was 4.99 percent. compared to 5.1 9 percent the week before.

The Commerce Department said new-home starts dropped loan annual rate of 466,000 units in January. Permits for new housing construction fell to rate of 521,000 units. Both are record lows.

Monte Carlo world's most expensive real estate market

2009-06-29T03:38:00.000-07:00

(MAKATI CITY, The Philippines)Global Property Guide's 2009 1isl of the world's most expensive real estate markets shows that Monte Carlo is No. 1 at $45.000 per square meter (a square meter equals .836 1 of a square yard). Following Monte Carlo were:

Central Moscow, $20,853 per square meter
London, $20,756
Tokyo, $ 1 7.998
Hong Kong, $ 1 6, 125
New York, $ 14,898
Paris, $ 1 2, 1 22
Singapore, $9.701
Rome $9, 166
Mumbai, India, $9, 163

For more information, you can visit: www.globllipropertyguide.com

SentriLock launches "Lockbox Live"

2009-06-29T03:37:00.002-07:00

(CINCINNATI. Ohio) – SentriLock, leading provider of electronic lockboxes to the real estate industry, recently launched "Lockbox Live:' a virtual presentation that allows Boards. Associations and individual real estate professionals to gain keen insights into the numerous high-tech benefits of electronic lockboxes.

" With Lockbox Live. we've listened to our customers and developed an innovative, next-generation tool hat they can access at their convenience to gain additional information on the numerous benefits of electronic lock boxes, " said .John Heithaus, Senior Vice President of sales, marketing and alliances for SentriLock.

SentriLock LLC. founded in 2003, is majority owned by the National Association of Realtors and is the official lockbox solution of NAR's REALTOR Benefits Program.

Trulia sees surge in consumer real estate interest

2009-06-29T03:37:00.001-07:00

(SAN FRANCISCO. California) The online real estate information site Trulia.com reported recently a surge in the numberof consumers doing property searches on the site and a substantial increase in consumer networking, as well.

The company said page visits were up 40 percent in January- compared to a year ago -and that activity on its blogs. And queslion and answer sections was up by 115 percent.

Trulia co-founder Pete Flint said. "In Reality, consumers were engaged more than ever and we believe the dramatic increased engagement in January is a good indication that consumer optimism is on the risk." (http://www.trulia.com).

"Buy a house, we'll give you a job"

2009-06-29T03:36:00.003-07:00

(SHANGHAI, China) -A real estate company is making a novel, if risky, offer to young homebuyers: Buy a condo. And we' 11 gi ve you a job to pay for it.

Shanghai Sanxiang Co., .. a Iarge developer in the city, says so far it has hired eight of its buyers.

As unemployment goes up in the overbuilt city, millions of young people who were drawn to Shanghai during the boom are now returning to their homes in rural pans of the country.

Sanxiang says it believes the market will turn by the end or the year and will need the additional trained staff.

Top relocation destinations

2009-06-29T03:36:00.001-07:00

(CHICAGO. lllinois) -Allied Van Lines has released its annual survey of top relocation destinations. and for the fourth year in a row Texas tops the list.

The company said the number of inbound relocations to Texas exceeded the number of outbound moves by a net of 1 .903.

North Carolina was second with a net Of 800 inbound moves and Virginia was third with a gain of398.

The largest net relocation losses were Michigan. Pennsylvania, New Jersey and Illinois.

Gloria Nilson GMAC Real Estate

2009-06-29T03:34:00.002-07:00

(RED BANK. New Jersey) –Gloria Nilson GMAC Real Estate, one of New Jersey's largest and best-known real estate Finns with 16 offices and more than 700 sales associates, has been purchased by SCS Realty Investment Group LLC, a firm led by 40-year real estate veteran Dick Schlott.

As part of t he agreement. Gloria Nil son GMAC Real Estate wilt continue 10 operate under that name and will become a franchisee of GMAC Real Estate. owned by Brookfield Residential Properly Services. The Schlott name Gloria Nilson GMAC Real Estate firm will now be the largest GMAC Real Estate franchise in the Northeast "The Schlott name is synonymous with New Jersey real estate and we are absolutely thrilled Dick has chosen to purchase these offices and in turn become a franchise of our company." said John Dearden. Presideut and CEO of GMAC Real Estate.

Donovan told HUD must be more active

2009-06-29T03:34:00.001-07:00

(WASHINGTON, D.C)- HUDSecrctary Shaun Donovun agreed at his Senate confirmation hearings that the government could do more to ease the mortgage crisis and promote affordable housing. Senators criticized HUD' s role in the Hush administration as being lackluster and said HUD's new leadership needed 10 be more aggressive in addressing the mortgage crisis.

Among those participating in the hearings was Senator Mel Martinez, RFlorida, who served as H U D secretary during the Bush administration before resigning to run for office.

Martinez suggested Donovan reel in Fannie Mae and Freddie Mac with tighter regulation and demand that the GSEs become more transparent in the way they operate.

RE/MAX celebrates 36 years of service

2009-06-29T03:33:00.001-07:00

(DENVER. Colorado)- RE/MAX International Inc, one of the most recognized real estate networks in the world marked its 36th Anniversary. or "Founder's Day:' on January 30th. The Denver-based real estate franchisor celebrated another year of major milestones with the company's original founders. Dave and Gail Liniger, Still at the helm.

" Westarted REIMAX i n 1973 with an agent-centric business model designed to foster the entrepreneurial spirit," said Dave Liniger, Co-Founder and Chairman of RFlMAX International who with his wife Gail Liniger, still oversees the company's daily operations. and travels the world speaking to RF.JMAX Affiliates. " We continue to be successful because of our commitment to the founding principles of the company to provide outstanding customer service and build franchise network of the most experienced real estate professionals.

This focus has given us the experience and know-how to anticipate and adapt to changing markets." In 2008 RE/MAX sold more than 700 franchises worldwide and now has nearly 7.000 offices i n more than 70 countries lind territories. An international presence greater than any of its competitors.

RE/MAX LeadStreet· delivered five million leads to RE/MAX Associates after making its debut only two and a half years ago. In addition to its many milestones, www.remax.com is frequently ranked as the most visited web site of all the real estate brokerage brands.

RE/MAX also leads the industry in education and training. with RE/MAX Universily offering training in classrooms, online and through satellite broadcasts via the award-winning RF/MAX Satellite Network (RSN). Visit www.remax.com or www.joinremax.com.

NAR launches real estate radio show

2009-06-29T03:32:00.002-07:00

(CHICAGO, Illinois) - The National Association or Realtors has announced it launched a consumer-radio show. " Real Estate Today" on Saturday. Feb. 14.

Accoruing to N A R . ''Today' s consumers are faced with myriad questions and concerns about their own home and mortgage. how housing trends are affecting their immediate community. And whether they should buy or sell a home in the current marketplace.

Real Estate Today" will provide a forum where listeners can learn about real estate news; get comprehensive information about buying, selling and (maintaining the value of their home; and ask questions of real estate experts from across the country." N A R stated.

Realtors Support Aid To Troubled Homeowners

2009-06-29T03:32:00.001-07:00

(WASHINGTON, D.C.) February 18,2009- Preventing Fore closures is critical for the nation's economic recovery and the National Association of Realtors commends the Obama administration's plan to help millions of homeowners who are at risk of losing their homes.

"When people lose homes to foreclosure, our communities, the housing market and our economy all suffer." said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. "The administration's proposed plan, combined with provisions Iike the $8.000 first-time home buyer tax credit in the just-enacted American recovery and Reinvestment Act. with help minimize foreclosures. shrink housing inventory_ stabilize home values and move the country closer to an economic recovery."

President Obama' s $75 billion Homeowner Affordability and Stability Plan would help struggling homeowners by providing incentives to lenders, servicers, mortgage holders and borrowers to help modify mortgage loans. The U.S. Treasury Department will be issuing uniform guidelines in two weeks. Consistent with NAR ' s recommendations, financial institutions receiving assistance must agree to follow the guidelines.

Under another element of the program. Fannie Mae and Freddie Mac will help make monthly payments more affordable For 4 to 5 million homeowners by refinancing mortgages with loans that these entities own or guarantee. Finally. The plan provides more support for Fannie Maeand Freddie Mac. which will in turn help keep mortgage rates low for all buyers and could lead to even lower rates.

NA R called for improved foreclosure intimation as pan of its overall housing recovery plan in late 2008 and welcomes this initiative. The association supports the administration' s goals to reduce mortgage payments for millions of Americans. avoiding financial crises for families and communities.
"Realtors· build communities, and in today’s challenging Environment helping neighbors in need is what we all need to do. A renewed, revitalized and robust housing market is essential to generating commerce and helping families buiId wealth and stability and we are eager to see these measures implemented,” said McMillan.

Housing Stimulus And Stabilization Will Help Economic Recovery

2009-06-29T03:31:00.001-07:00

(WASHINGTON. D.C.) February 12.2009-·'The Amerian
Recovery and Reinvestment Act is important for the
U.S. economy and contains some important housing provisions.

Eliminating the repayment provision in the $7.500 first time home buyer tax credit will help bring buyers to the market and reduce housing inventory. NAR has been advocating that this provision be improved -the change will stimulate more than 200.000 additional home sales. which will help stabilize home values.

"Reinstating the higher loan limits for FHA, Fannie Mae and Freddie Mac for mortgages in high-cost areas is also important ,and will help reduce inventory and improve liquidity in the overall mortgage market. The allocation of resources for neighborhood stabilization efforts to help communities purchase and rehabiIitate foreclosed and vacant properties is also very promising for the housing market. This funding will help protect communities across the country and preserve home values from further decline.

"As the leading advocate for homeowners and the real estate industry. NAR will continue to address issues facing Americans who are trying to purchase a home, protect their current home or preserve investment opportunities in residential and commercial properties. N AR recognizes the efforts of the members of Congress who understand that without a housing recovery, an overall economic recovery is impossible.

"NAR believes that positive steps are being taken 10 improve the housing market and will continue to work with President Obama. Congress and regulators to make housing stabilization a key component of any federal recovery plan.”

The Real World

2009-06-29T03:30:00.000-07:00

Charles Darwin described a theaterof reality which will appeal only to those of your prospects willing to face facts that are sometimes painful but always inescapable.

P.T. Barnum his accidental look alike espoused a Big Top comprising fantasy and temporary escape from the real world.

As a professional. it befalls you to seek out the Darwinists (as described in our metaphor). however few they might be in today's real estate climate. and profit by serving their needs.

The hesitant and wishful thinking “Barnumisls” should be encouraged to "step right up" before the big tent of opportunity folds and the show leaves town.

You have no way of knowing when that will happen. nor any reason to doubt that it will.

Meanwhile. if you are "fit to be tried" by present conditions. A bright future awaits you beyond the storm clouds. Been there and done that folks. So you can take my words forit!

FACTS TO DEAL WITH

2009-06-29T03:29:00.001-07:00

Those "things" are facts of brokerage life that can't be ignored or waited out, but must be identified and dealt with by anyone contemplating a future in real estate. They are - but are not limited to the following:

• The law of supply and demand is still on the books and will never be revoked.

• Demand is measured by the present availability of ready, willing and able buyers.

• Those able to buy arc not in the equation unless they are ready and willing to do so.

• Their wants and needs must jibe with what is now available in the marketplace.

• Prospective sellers must be willing to trigger buyer response with attractive terms.

• Prospective buyers must be willing to act on the most attractive terms available.

Only those buyers and sellers who meet (or can be persuaded to meet) those criteria are worthy of the attention of real estate processionals and all others should be avoided like carriers of the pox.

The bright side of all this is that there are always bona fide Buyers and Seller. however scarce, fearful. uncertain and misinformed they might be.

Those ready willing and able buyers who are sitting on the sidelines and waiting for the "best time" to make a move may be ignoring the opportunities that may never come again –genuine bargains and great financing terms on the buyers' side and little competition for those willing 10 take the plunge.

Those prospective seIlers unwiIIing to accept the best offer obtainable from the best buyer available are failing to recognize that such an offer is the true (and highest) present market value of their properly. regardless of how unpalatable it may appear.

SURVIVAL OF THE FITTEST

2009-06-29T03:28:00.000-07:00

Similarly, in the business world in general (and real estate brokerage in particular). survival of the fittest implies deselection a euphemism for professional genocide - of those unfit or unwilling to cope with changes in market conditions.

Fortunately for us, we are not doomed to the fate of the dinosaurs, who were left with no choice except to provide us. Eventually, with fuel for our oil-driven modern society.

However, those who are just waiting for "things" to get better. without adjusting their modusoperandi, are flirting with ;L1most instant "de-selection" by the market.

That is to say - and to say most emphatically -that, while an eventual business turnaround is as certain as tomorrow's sunrise. The interim period will be survived only by those who recognize "things" as they are and conduct themselves accordingly.

SURVIVAL OF THE FITTEST

2009-06-29T03:27:00.000-07:00

Similarly. in the business world in general (and real estate brokerage in particular). survival of the fittest implies deselection a euphemism for professional genocide - of those unfit or unwilling to cope with changes in market conditions.

Fortunately for us, we are not doomed to the fate of the dinosaurs, who were left with no choice except to provide us. Eventually, with fuel for our oil-driven modern society.

However. those who are just waiting for "things" to get better. without adjusting their modusoperandi, are flirting with ;L1most instant "de-selection" by the market.

That is to say - and to say most emphatically -that, while an eventual business turnaround is as certain as tomorrow's sunrise. The interim period will be survived only by those who recognize "things" as they are and conduct themselves accordingly.

Natural De-Selection And How to Avoid It

2009-06-29T03:05:00.000-07:00

The phrase " survival of the fittest" was popularized in the mid-1880s by naturalist Charles Darwin, best remembered and frequently decried for his theory that modern humans evolved from prehistoric apes.

Interesting aside: photographs of him and contemporary circus impresario P. T. Barnum suggest that they could have been identical twins (we'll get back to that in a bit).

Mind you. my personal preference and religious upbringing steer me away from this aspect of Darwin’• s teaching. Although certain specimens on the TV screen promoting Wrestlemania give me moments of doubt.

I find it easy, though. to relate his observations of "natural selection" to the evolutions I've witnessed in real estate brokerage over the past six decades in America.

In extensive studies of birds in the Galapagos Islands. of all creatures and places. Darwin noted that although individual species might otherwise have almost identical physical characteristics. those with physical assets most compatible with the current environment tended to survive and reproduce, while the others stumbled. slid or were driven toward extinction. Mother Nature. it seems. tends to favor those of her creatures who are willing and able to adapt 10 changes in their surroundings.

Thus it is that the spectacular creatures appearing in Jurassic Park. although patterned after animals that once abounded on this troubled planet, now exist only in fantasy. History, and/or museum exhibits.

Business Planning For The Owners, Managers And Team Builders (Book Review)

2009-05-18T04:50:00.000-07:00

As the title indicates, this planning tutorial is aimed at brokerage owners, managers and team builders. Here's the brief synopsis of the product from the Cross web site: "Do you have a business plan that protects you from shifting markets? If not, or if your current plan just isn't working, you need one now! Carla Cross, CRB, MA, created this planning system from over two decades of work with owners like you.

In fact, it is the only planning system endorsed by the Managers Council of the National Association or Realtors (CRB). The package consists of a 188-page resource guide as well as three audio CDs and a Document CD. You can get extensive information on the entire product by visiting the website. When you do, you will need to click the Products link and then to the title of this specific product. I don't completely agree with the adage "any plan is better than no plan", but I did recently came across an old saying that does relate well to these two products: "They didn't plan to fail, They
failed to plan."

The Business Planning System For The Real Estate Professional (Book Review)

2009-05-18T04:49:00.000-07:00

In good times and bad the failure rate among real estate professionals is discouragingly high. That's particularly true among newly licensed agents. Statistics vary from state to state and from time to time, but frequently well over fifty percent of licensees fail to renew their initial license. There are a number of reasons for this distressing fact of real estate career life.

Several years ago, in doing research for my real estate career book, I did a survey of managing brokers around the country. The purpose of the survey was to get their opinion on why the failure rate of new agents was so high. Near the top of the list of reasons they identified was: "inability to plan and to manage time." To oversimplify a very complex issue, many folks who enter our profession simply do not realize that, no matter how supportive the real estate brokerage with which they affiliate is, they are, in fact, a one person business operation.

Success or failure will depend almost entirely on their realization of that fact and their ability to adapt. This educational package by Carla Cross is aimed directly at real estate professionals operating in the trenches. You'll recognize Carla as a long time contributing columnist to the Real Estate Professional. You can get detailed information about this product and many others at www.carlacross.com.

Here's a brief description of this package from her web site: "In a more challenging, competitive market, you've got to have a plan! But, here's much more than just forms to fill in. This is a comprehensive strategic planning system, suitable for the multimillion dollar producer as well as the agent with one year in the business.

Carla Cross, CRB, MA, gives you a complete 'tutorial' on 2 audio CDs on how to make a business plan to reach your real estate goals. Who better to advise you? After all, she wrote the only internationally published book on planning, wrote the CRB (Certified Real Estate Broker) course to teach managers how to coach agents in their plan and taught Strategic Planning for CRB for 12 years. As I was reviewing and interacting with this product I put myself in the place of a real estate professional attempting to get a handle on how to plan my career to achieve long term success. I was very positively impressed.

Suceeding (2nd Ed.) - How T Choose The Right Goals And Increase Your Chances Of Achieving Them (Book Review)

2009-05-18T04:47:00.000-07:00

If you've followed our Book Review Column over the years you'll recognize the name of the author of this book, John T. Reed. He is a prolific author, mainly of books that relate to real estate investing. He also produces the extremely informative Real Estate Investor's Monthly Newsletter, to which I've subscribed for several years. You can get detailed information on all of his products, including this book, by visiting his website at www.johntreed.com.

You'll also get access t a variety of free articles relating mostly to real estate. One of my favorites is his "B.S. Artist Detection Checklist - 55 Ways to Detect a B.S. Artist." That's not to imply that we have any of those artists in the real estate profession, of course. As I was reading this book I kept thinking that an appropriate title might also be "How To Succeed In Life By Really Trying".

Reed covers just about every challenge an individual is likely to face in life, along with down to earth (sometimes earthy) guidance on how to attain success. While it's not specific to challenges we face in the real estate profession, it's clear that if an individual cannot set life enhancing goals and establish effective means of accomplishing them, it really doesn't make that much difference what the person's occupation might be.

It would be useful up front to describe in brief Reed's credentials, since one is not likely to take very seriously an author on this topic who has not faced an array of personal and economic challenges. For example, while I admire many of her traits, I doubt I would recommend a book on this subject written by Paris Hilton. Here is just a portion of the book's "About the Author" summary.

He was a real estate investor for 23 years. He also worked as a bartender, property manager, real estate salesman, banker, football coach, baseball coach, and volleyball
coach. He has been married since 1975 and has three sons. He was an Army officer in the U.S. and in Vietnam and graduated from Army Airborne (paratrooper) and Ranger schools. Mr. Reed holds a Bachelor of Science degree from West Point and a Master of Business Administration degree from Harvard Business School.

Country singer legend, the late Hank Williams, is quoted as saying: "You've got to have smelt a lot of horse manure to be able ro sing like a hillbilly." I think you'll agree that Reed meets that qualification for writing a book on this topic. I'II mention just two examples of the type of guidance Reed offers. In his chapter "Saving", the advice is the common sense "live beneath your means." Common sense, yes. Commonly done? No. It requires discipline and long term commitment.

In his chapter "Sobriety", his message is, as you might suspect, "don't drink, smoke, or use drugs". Early in my Air Force career I was the "Adjutant" of a small Air Force unit. One of my jobs was to counsel enlisted troops who were in trouble. The root cause in most of the cases was related to the use of alcohol or drugs. While I highly recommend this book for readers of all ages, if I were leaching a high school freshman class in any subject, I would make it a mandatory text. Their final exam would likely come much later in life.

Can He Do It?

2009-05-18T04:44:00.000-07:00

We are embarking on a significant period of American history. The election of Barack Obama has accomplished three major things:

• America has its first African-American president
• The psychological depression that increasingly gripped the country during the Bush administration is over
• A new feeling of confidence and the dawn of a new era is palpable

Now comes the hard part. Obama comes into office facing worldwide recession and a badly broken financial system. It is as daunting a task that has faced any president since John Kennedy faced an increasingly militant and bellicose Soviet Union. And while Americans seem to expect great things from an Obama administration, the question still looms: Will he succeed in solving these crises?

FACTS OF THE CASE

Before I give my opinions here, let' s be clear on the facts of the case. First of all, we are not facing a rerun of the Great Depression. Rather, we are in the midst of a pretty average recession. During this one, we should reach an unemployment rate of about 8.5 percent and GOP will probably contract by 3-4 percent. These numbers track the average recession undergone by the United States economy since World War II.

This one feels worse because the last two recessions we had in 1990 and 2000, were short and mild. If you look back at 1982 however, you can see a much worse recession. So, in a sense, this recession is terra in cognita for most of us and the unknown is always more scary than the known. Like all recessions, this one will run its course and shouldn't last more than a year.

Second, the bigger problem is the financial sector: it's broken. It is clear that the cowboys of finance have been playing fast and loose with other people's money, creating and trading extremely risky financial instruments that evaded the regulatory net. Using a booming housing sector as collateral, they shattered fortunes large and small, and more importantly destroyed the confidence of the American people. Yet, here, too, there is a precedent. In the late Eighties, the collapse of the thrift sector followed pretty much the same pattern, although at about one-tenth the scale. We lived through that one.

NO, HE CAN'T

The biggest roadblock to the success of the Obama administration in solving these problems lies in the fact that the president is not Commander-in-Chief of the economy. Daily marketplace decisions made by thousands of individuals and companies, none of which is under the control of the president, shape the course of events and create booms and busts. Even in the area of economic policy, the president must rely on the Congress to implement his ideas.

I think we all realize how shortsighted and irresponsible the Congress has been; just look at the pork that was added to the bailout bill. Moreover, everyone now believes that Federal handouts are a right. In the case of the auto makers, to cite one example, this belief has seemingly relieved them of any responsibility to run their businesses in a rational manner.

Finally, we already have such a large budget deficit, it will be difficult to fund the programs needed to cure the recession. For all these reasons, one can conclude that this administration will fail in its attempt to right the economy and rebuild the financial system.

YES, HE CAN

But, this is no ordinary president. He has shown over the past two years his skill as a businessman. During that time, he has been CEO of a multi-million dollar company that achieved its strategic goals and gained the majority of market share. He has also assembled a strong and intelligent economic team and has shown the ability to channel talent to achieve his goals.

Above all this is the simultaneous short and long term focus of his policy ideas. If the Obama administration had been in office last winter, the stimulus package that provided small checks to taxpayers would have been cast as a grants program to state and local governments to rebuild infrastructure. It would have had a far more powerful and direct impact on job creation and would have been an investment in the future.

This type of thinking in a politician is impressive. I think you will sec from the Obama administration an aggressive, well thought out, long term policy that will do everything possible to revive the economy and heal the financial sector. For real estate, this will be a good thing, since jobs lead to commercial occupancy and home sales and an efficient financial system reduces financing costs. So, can he do it? Yes, he can.

"Slow Start Realty" May Not Be Optimum For You

2009-05-18T04:42:00.000-07:00

No real estate company would create a "slow start" model on purpose. Yet, they predictably and routinely take actions or positions that almost guarantee they have low producers and high turnover. Let's contrast how Slow Start Realty and Fast Start Realty treat their new agents. Of the hundreds of agents I've interviewed over my two decades as a manager, I can't remember when an agent said he wanted to start slow.

The vast majority want to make a sale in a month (See the survey in Become Tomorrow 's Mega-Agent Today... 49% of the hundreds of new agents surveyed expected to make their first sale in their first month in the business!) Unfortunately though, most agents start their careers slowly. No wonder there's a huge drop-out rate! How would you feel if you didn't make a sale for months? Deflated, demotivated, and disillusioned about the business.

HOW SLOW START REALTY GETS AGENTS STARTED NICE AND SLOW

• No preview in the interview of what successful start-up looks like.
• No urgency or expectations of early success.
• No business-producing actions required or monitored.

I. ) NO PREVIEW
In the interview, Slow Start Realty doesn't, provide a preview of their startup plan (they probably don't even use a start-up plan). Why no preview? Slow Start wants everyone to join. They're afraid that if they are honest about the work it takes to make a sale "early", agents won' t join. After all, they want to give everyone a chance - to fail.

From Slow to Fast Start:
Introduce your start-up plan in the interview and get a written commitment to start the plan.

2.) NO URGENCY
Even though the new agent (or transferred agent) at Slow Start wants to make a sale fast, Slow Start believes that it takes months or years for agents to get sales. So, they don't put the agent to work that first week. In fact, it could be months (or never) when the slow start agent is introduced to a start-up plan.

From Slow to Fast Start:
Put the agents to work in that startup plan their first week in the business, so they have a fighting chance to get that first sale in a month.

3.) NO ACTION
Slow Start believes that, if an agent has lots of training, the agent will do well. So, Slow Start doesn't coach the agent into business-producing actions immediately. Instead, they let the agent immerse themselves in training course after training course. Agents conclude that sitting in class for days or even weeks is how you start a business. Slow Start doesn't realize that they are enabling failure.

From Slow to Fast Start:
Stop letting the agent off the hook by offering training with no actions required. Make your focus on business producing actions and use training only to provide the agent what the agent needs to know or be able to do, to complete that action.

SLOW START REALTY BELIEVES IT'S AN ACCIDENTAL BUSINESS

At Slow Start Realty, sales happen as accidents. Well, they did happen quite often in an "on fire" market. However, now that the market is not as giving. those sales accidents just aren't happening. Slow Start is stymied. Their business model is stuck in neutral. They're hoping that the market will catch fire soon, and take them out of their predicament.

THE DIFFERENT MODEL AT FAST START REALTY

We just finished our Up and Running Small Group Coaching program with our three scholarship winners (See my website at www.carlacrosscoaching.com for more results and information). We carefully screened our scholarship winners, all in the business less than one year. We gave them an accurate preview of the program and got a commitment to do the work. We provided urgency through coaching them weekly to an aggressive start-up plan. We got them into action the first week of the program. Result; Each of the three winners averaged eight transactions during the 90-day program and listed an average of 6.33 properties.

A FAST START RECRUITMENT STRATEGY

Do you think any agent who wants to do well would want to go to Slow Start Realty or Fast Start Realty? The Slow Start model predicts failure or, at best success by accident. The Fast Start model predicts fast success on purpose. Think of what a fast start strategy would do for your recruiting and retention, and retool your model to coach future Olympians of sales, not amateur accidental agents.

Real Estate Company Caters To Client With New Office Design

2009-05-18T03:22:00.000-07:00

RE/MAX Crossroads Properties owner, Dennis Steed, like all real estate professionals and business owners, always looked for ways to develop his business, increase sales, develop a clientele and increase the overall effectiveness of his sales approach. Just as Steed saw the economy changing, he also saw a change in his clients' tastes, needs and expectations, which he believed presented an opportunity for a new approach.

With the growing popularity of open air shopping centers and recent developments in the suburban Cleveland area surrounding his business. Steed could see that comfort, convenience and a certain high-quality, customer experience were the sales techniques local retail businesses were implementing and making work.

With a changing market, Steed, ABR, CRB, GRI, knew he hold to change his approach and cater to that new set of ideals in order to maintain a competitive edge. However, he realized his current offices in Westlake, Ohio, would not accommodate the convenient, yet trendy, at-home environment for which he was aiming. Although Steed knew any drastic change had a potential risk, he stuck with the most important objective, providing his clientele and agents with a convenient space that did not feel like a real estate office.

Looking for an easily accessible, higher profile location that could meet his needs, Steed came upon an open retail space in a new development. Located in the affluent community of Rocky River, Ohio, not far from his current offices, Beachcliff Market Square was an upscale, trendy shopping center. Upon viewing the space, Steed already could see that the shopping center was the perfect space to meet the new expectations of his clientele, who were seeking a relaxed, comfortable space in which to do business.

But finding the retail storefront was only half the battle. Steed knew when he needed to make his business work, but wasn't sure how to bring his idea to fruition and create an office space that fit into the surrounding retail environment, all
on a set budget.

ARCHITECTS, DESIGNERS

With this in mind. he reached out to Vocon, a leading architecture and interior design firm based in Cleveland. Working with designer Michelle Thompson, Steed explained his need for a high-profile location in the new retail space that was easy for both clients and agents to access. After learning about his vision, Thompson knew
exactly the look and feel that he desired.

Thompsonm, was then faced with a challenge of her own. The space was a storefront within a shopping square instead of a standalone location and hold limited access to natural light. The space was also extremely long and narrow, creating restrictions for space planning and design implementation. Although Steed' s plan was well-thought-out, it did not take into consideration how the layout and design of the space would merge to meet his clients' needs.

Therefore, Thompson and her Vocon team were tasked with creating a bright, well-lit office space with a modern high end feel and an open gathering area, such as coffee shop or cafe, under the current conditions and within a limited budget. Thompson remedied these challenges by keeping the tall and narrow store-front an open space and allowing natural light from the window to transmit throughout the interior, which opened up the space.

Instead of a small kitchen toward the back of the offices, Thompson used Steed's coffee-shop vision to create a combined kitchen and coffee bar in one. This not only opened up the space, but created the relaxed public area Steed was looking for. Thompson and Vocon chose the option of built-in custom millwork to eliminate the need for furniture. This created continuity throughout the office space, from the architectural finishes to the furniture finishes that would have otherwise been mismatched with existing furniture.

With the lobby and kitchen up front, Steed and Thompson opted to have the tech center and work stations toward the back of the space, to provide agents with privacy and easy access to designated parking areas. Keeping RE/MAX's corporate colors of red, white and blue, Thompson kept the space bright in color while choosing finishes that were clean and contemporary in style, in tune with
Steed's overall objective.

Although Steed knew of the potential risk with this unique approach, he continues to see the success of his approach combined with Vocon's design. Clients and employees are more comfortable and relaxed in the new space, while his business continues to grow steadily even with the challenges of the real estate market.

Increasing Sales Production Through The Quality Of Your Prospects

2009-05-18T02:40:00.000-07:00

When you break a real estate agent's business down, there are only four ways to increase production; four proven avenues toward increased gross revenue. They are:

• Number of contacts
• Method of contacts
• Quality of the prospect
• Quality of the presentation

In this article, we'll focus on the quality of the prospect. When you begin working on any one of these, you have taken the step to becoming a Champion Agent. Once you have raised your level of the performance in each of these areas, you can call yourself a Champion!

QUALITY OF THE PROSPECT

The quality of the prospect is an area that really separates non-champion performers from Champion Performers. Our ability to separate the wheat from the chaff will lead to a dramatic increase of our value per hour, gross income, low frustration level, better clients and more and better referrals. The natural tendency for most sales people is to work with leads, rather than prospect for new leads. Most sales people, in real estate especially, do primarily lead follow-up, rather than prospecting or lead creation. The problem with that approach is what happens if your leads aren't any good. Most agents have a group of bad leads they are trying to convince to be good leads, so they don't have to prospect.

Let me give you a hint; you can be the greatest salesperson in the world, and you will rarely convince a bad lead to convert to a good lead. You are far better off investing your time to find better leads. We hold onto these marginal or bad leads, so we can avoid prospecting. We know that if we don't have enough leads, we will be forced to prospect. It also takes less effort, time, emotion, and frustration to convert and serve high quality leads.

MOTIVATION FACTOR

The question is how do we determine whether the prospect we just created is a high quality lead? I frequently ask agents that question. I get a variety of answers including asking prospects qualifying questions. evaluating the source of the lead, and many others. The Champion's technique is to ask them for a face-to-face appointment. By asking them for an appointment, you cut through the smoke to see if they are real.

The last place on earth a low-motivation prospect wants to be is in front of a salesperson. If you didn't have a reasonable level of motivation to purchase a car, what is the last place you would want to be? Correct, at a car dealership, getting "hot boxed" by a salesperson and their sales manager. The same is true with a real estate prospect. The best way to determine quality and motivation of the lead is to ask for an appointment.

What I just described will be the choke point for your buyers agents. Their ability to drive prospects to face-to-face presentations will be the biggest determining factor of their success. The buyer's agents who do that will sell three to four homes a month or more. The ones who are ineffective will sell one or two homes a month. There will be an increase of 100% in sales when using the same quality of leads.

There are many prospects whose sales resistance goes up in direct proportion to the length of your litany of pre-qualifying questions goes up. Questions, even well scripted and directed ones, can lead to sales resistance problems. I am not saying don't ask questions; we need to use them to keep the discussion flowing, so you can ask for an appointment again in a minute or two. The most efficient way to determine the viability of the prospect is their willingness to meet with you.

THE 80/20 RULE

There is an age-old rule that governs success and people. This rule was created in 1895 by a man in Italy named Wilfred Pareto. He observed, at that time, that most people had little influence, power or money in the marketplace. He called this group of people the "trivial many". He decided that these people made up about 80% of the population. He then theorized that the remaining 20% had all of the influence, power and capital of society.

He called them the "vital few". He created the 80/20 Rule that has governed success for more than 100 years. The 80/20 Rule applies to your prospects, as well. 80% of the prospects you work with will create 20% of your income. The amount of time, effort, and energy is disproportionately not in your favor. The odds of becoming a Champion Agent when working with this group are long indeed. The devastating part of working with this group is that you spend 80% of your time, capital, effort, energy and emotion to create a 20% return on investment.

The numbers are not in line with a successful business. A Champion works with the elite 20% of the population that creates an 80% return on investment because they gain an added return or unequal return on their investment. This elite 20% doesn't mean that you have to work only with those who would be defined as the upper crust of society. Although, working with high priced buyers and sellers certainly can have a positive effect on your income.

In evaluating the quality of the prospect, we determine their level of motivation, financial capacity, ease to work with, realistic expectations of service and what they can purchase. I have met high priced buyers and sellers who were also high maintenance; I fairly placed them in the 80% category, not the 20% category. The question you must wrestle with quickly is does this prospect fit into the 80% or the 20%?

RESOURCES TO INVEST

You have limited resources to invest in terms of your time, effort, energy, emotions and dollars spent. Our objective is to select clients who utilize low levels of resources with high levels of return. That is what a 20% prospect allows us to do. The common school of thought in real estate sales is that sales is a volume game; if we raise the volume of production, we raise the income.

I believe that school of thought is poorly conceived and simplistic thinking for a sales-oriented business. One of my competitors, who is a "magic marketing" guy, has a saying; "You can't go broke making money"· He is absolutely wrong. Many successful companies and real estate agents have gone broke making money. Gross sales volume-increase has merit but not at the expense of cost of sale and net profit.

FOCUS ON SALES MARGINS

What we must focus on is the sales margins, not just the sales volume. Our objective is to enhance or expand the margin between the resources we expend and the return we get. When working with a team, your expenses are higher. You might create more sales, but those sales have a higher cost because you'll have to pay the buyer's agents to create them.

One way to influence the margins is by selecting better prospects to serve. We must reduce the resources of our time, effort, energy, emotion, and dollars we invest against the return of money, job satisfaction and future revenue in the form of referrals and repeat business. Better prospects create better margins. Don't be fooled by the sales volume game. The margins in business and life are what really count. The quality of the prospect dramatically influences your margins in your business.

Use The Power Magic Showing Moment

2009-05-18T01:21:00.000-07:00

Recently, I had an "Aha! Moment" - one of those times when the light bulb flashed and my understanding of something clicked to a new level. Here's what happened. A ballroom full of luxury real estate professionals had gathered at The Institute for Luxury Horne Marketing's Leaders in Luxury meeting to hear one of our speakers - the wonderfully outrageous South Florida home builder, Frank McKinney.

Just to set the stage for you... McKinney's personality is as big as the 60,000 + square foot mansions he builds. He bills himself as a real estate artist, and there is no doubt that he is the force beh nd some of the world's most interesting mansions. Currently he is nearing completion of two "green" homes.
Acqua Liana ($29 million) and Crysralil1a ($30 million) Another McKinney project is a $135 million spec home, The Manalapan Residence.

McKinney, who designs his homes in a tree house office, is a master of creativity. On each property home page, you'll find a countdown-to-completion clock ticking away. His new homes have theatrical "unveilings" (rather than grand openings) and draw hundreds of invitees who pay to preview the properties.

POWERFUL SELLING EXPERIENCE

Here's the light bulb that went on for me. We all know the importance of effective staging. But McKinney's marketing approach moves past staging and aims at creating a desire to live in the home from the time the prospect pulls up in front. He works to take staging and showing and turn it into a powerful selling experience. First, he considers when and how the prospect will arrive at the house.

He tries to schedule showings at a time when the home will show to best advantage. If sunset is spectacular from the poolside terraces, he wants the prospects to experience those views. Then, with the use of strategically placed cones, he influences exactly where the prospect and agent will park. He blocks the drive so they are forced to approach the home in the most desirable way.

The prospect sees the full expanse of the front yard, takes in the dramatic architecture, sees the guest house which appears to be floating in a lagoon, smells the freshly cut grass and feels the marble pavers underfoot. Anticipation heightens with the approach. When the door opens, a memorable front door experience begins. While McKinney builds-in many of his front door WOWS (including Acqua Liana's first ever glass "waterfloor" that curves into an arched aquarium wet bar with exotic fish overhead), with some creativity, you can stage your own memorable front door openings.

It's the concept that's important. McKinney carefully furnishes and stages the home so there is a pleasant surprise or positive feature around every corner. He appeals to multiple senses using music and scent. He has chocolate and champagne waiting. Prospects are qualified in advance, so McKinney has even been known to hand them the keys and suggest they spend the evening at the house (giving new meaning to the old puppy dog close!). His goal is to open "the window of desire" for the home and close the deal. What's sitting by the front door on departure? A contract.

TURBO-CHARGED STAGING

McKinney's sales track record would indicate that this works. He tells the story of meeting buyers after closing to walk them though their new multi-million home and demonstrate all the features. His buyers asked: "Can we see the upstairs now, Frank?" They had purchased based on only seeing the main floor.

In short, McKinney's showings are designed to be memorable experiences that result in sales. How can you do that with your listings? Your homes don't have to be mu lti-million dollar extravaganzas for you and your sellers to make every showing a memorable experience. This is turbo-charged staging. Think about the questions McKinney must ask himself with every property.

What times of day does the home show best? How can I take advantage of that? What approach to the house is most favorable? How can I enhance that approach? Where should prospects park? Can you create a WOW the moment the front door opens? How can you keep the positive impressions happening? What about sound and scent? How can you stage to best highlight the lifestyle(s) the home represents? Then, there's the question of how you get the buy-in and cooperation of your seller.

The reality of today' s market is that some homes are selling. Successful sales are generally the homes at the very top of the inventory based on three things -proper pricing, effective staging and creative marketing. If your seller understands this and you can create magic showing moments, the probability of sales success rises.

Although McKinney builds new dream mansions, he lives with his family in an historic 3000 square foot home, offices in a 150 sq. ft. tree house and is committed to his Caring House Project Foundation, a non-profit organization dedicated to creating self-sufficiency by providing housing, food, water, medical support and opportunity for the desperately poor and homeless around the world.

A Timely Designation For Today's Market

2009-05-18T00:26:00.000-07:00

Ask the average real estate agent today. "How is your business?" You may find these common answers: "Could be better", "Tough", "Business is not good" and on and on. Then ask a top producing real estate agent how their business is and you may hear them respond with: "Business is great", "Fantastic", "Although the market is down, my business is up", I am certain we can agree that we would all like to be in the second category.

If we probe these top producing agents further and inquire why it is that they are so successful in this and any market, several responses will be given. We may hear these agents telling us that they focus on past clients, their database and working on obtaining referrals. They may respond by telling us that they are constantly farming and prospecting in their marketplace. Additionally, we may find out that they are consistently focused on continued education, business development and obtaining professional designations.

INDUSTRY DESIGNATIONS

Perhaps one of the most powerful ways in which an agent can achieve peak performance is by obtaining and maintaining professional designations. Such industry designations assist agents in targeting niche markets, providing the best possible service by implementing what they've learned and earning superior commissions and income. According to the National Association of Realtors, over 428.000 members holds at last one professional designation.

This is more than one third of its overall membership and an increase of over 21,000 from the past year. According to a recent survey commissioned by the New Jersey Association of Realtors, Realtors who have obtained a professional designation have increased by 8% from the previous year. These recent statistics are staggering, especially considering the decline in business that the real estate industry has seen over the past few years.

It should certainly be a telling sign of the positive direction that agents are taking for personal and professional development. With that in mind, we'd like to introduce you to one of the most exciting, powerful and value packed designations available today. Multi-FamiIy Specialist (MFS) is a professional real estate designation offered by the Council of Investment Specialists. This independent designation course trains agents on all aspects of multi-family properties.

In this constantly changing and volatile real estate market, agents are yearning for a niche that will set them apart and increase their business and productivity. These agents are turning to Multi-Family Specialist for the necessary training in this expanding field. Surveyed agents indicated that 95% of their business is that of single Family residential sales, with many targeting condo and townhouse sales.

Multi-Family Specialist trains agents on how to expand their market penetration to include multi-family properties as a means of offsetting their recent decreased sales, while also increasing their potential for growth by learning a new industry field. A key fact is that when the overall real estate market is down, residential rental prices increase. This is important because in most cases the prices of multi-family properties are predicated on the rental income.

As rents increase so do values for multi-family properties. This means that agents can tap into a marketplace that is virtually unaffected by the trends of the downturn in the overall marketplace.

CONVENIENCE TO AGENTS

Unlike most professional designations, agents can earn the MFS designation online from the comfort of their home or office. To cam this powerful designation, agents simply log onto www.MFSpecialist.com and click "Earn the MFS Designation". At their own pace, agents will be guided through the course curriculum. Unique to MFS, agents will follow along with a corresponding video for each section of the course. The course is designed with agents (and their often hectic schedules) in mind. The course allows agents to view and review any segment with video before taking the online exam at the conclusion.

CORE FOCUS OF MFS

Multi-Family Specialist is a dynamic and unique real estate professional designation that can be earned by real estate agents. This designation propels agents as the premier real estate professionals in their community, specializing in the market of multi-family properties. Different from any commercial real estate professional designation, MFS targets only multi-family properties ranging from two family homes to large apartment buildings

Choosing to earn this powerful designation is a smart decision. Our agents utilize this designation as a great tool to educate their investor clients regarding many topics. These top-producing and well-educated agents are able to intelligently represent both buyers and sellers of multifamily properties, while differentiating themselves from their competition. Additionally, a Multi-Family Specialist will create a powerful marketing plan to sell their multi-family properties or work aggressively with a multi-family buyer to find them a profitable property.

MFS COURSE CURRICULUM

Agents who earn the MFS designation will enjoy the variety of course subjects. The extensive "Topics of Expertise" that are covered will educate agents on all aspects of multi-family properties. Over 30 informative sections are covered in this important designation training. Several of these include:

1.) Determining for yourself and your clients if a property is truly profitable.
2.) Learning the key investment calculations to make sense of a multi-family investment property.
3.) How to read and create a strong and informative profit and loss statement.
4.)The steps to take in order to build the value of a multi-family property.
5.)The basic steps of a 1031 Tax Deferred Exchange.

BENEFITS OF EARNING AND MAINTAINING THE MFS DESIGNATION

Agents who earn the MFS designation and maintain their annual member renewal will find that there are many benefits to our membership. An important feature for our members is that they can upload their multi-family listings and their agent profile to the www.MFSpeeialist.com website at no additional cost to them. Here is just a sample of benefits to MFS designees:

1.) Distinguish yourself as the expert in your marketplace for all multi-family investment properties.
2.) Gain private access to the agent log-in area of the MFS website.
3.) Website benefits include the ability to:

a.) Upload up to 10 multi-family properties (per agent) to include:
- 3 properly photos
- Up to 2 documents (PDF,Word, Excel...) such as a survey, site map, profit and loss statement, and so forth.
- Give a description of the property to include up to 1,000 characters with a template design for each listing to include:
a. Price
b. MLS number(if applicable)
c. State
d. County
e. N umber of un its in property
f. Gross Income of the property
g. Gross Expenses on property
h. Net Operating Income of the property
i. Capitalization rate

b.) Agent contact information with a template to include:
• Agent name
• Agency name
• Office phone
• Cellular phone
• Email
• Website
c. Modify or delete listings
d. Search through the database of available properties from all MFS members
e. Participate in the member -'Forum" to share information within the MFS network
f. Utilize the "Key Calculations" tab where agents can simply enter the subject property financial information into the appropriate corresponding fields and the computer will calculate the results for them.
g. Access the "Document Search " tub to find customizable forms. newspaper articles and multi-family property tools

4.) As a MFS· designation holder. you can advertise the designation on all materials such as business cards, web sites, newspapers and mailings, thus empowering you as the multi-family expert in your marketplace.

DIFFERENTIATING FACTORS

Multi-Family Specialist- designees have the ability to differentiate themselves in this very competitive market. This is due to the fact that agents who previously only focused on single family sales can now confidently approach and target multi-family property owners and display the array of knowledge that they have in this specialized field. Additionally, MFS members can effectively demonstrate to investor purchasers their ability to translate facts and figures from an investment property to determine the true appeal of the subject property.

Only until the introduction of this informative designation, many agents have avoided the multi-family. By earning MFS designation adding this additional niche to their sales portfolio, agents are increasing their income dramatically. Earn the MFS designation by logging onto www.MFSpecialist.com and begin to tackle this untapped market today!

What To Do Until The Rebound Comes

2009-05-16T22:21:00.000-07:00

I can't trace the source of the following quote, which I encountered in the earliest stages of my real estate career (yes kiddies, when the earth was still cooling), and have used often ever since: "Find a need and fill it and you can make a living, but find a problem and solve it and you can make a fortune!" Like all good formulas for success, it rings true in good times or bad and, like the best of them, it requires some modification.

For example, practice does, indeed, make perfect, but only if one practices perfect habits: otherwise, practice merely makes consistent. Thus it is that doing things right is only effective if one is doing the right things. In today's market, you're either meeting your goals or you're not. If you're doing so, you need to read on only to make a good situation better. If you're not, however, hitting your marks and moving ahead, the following thoughts may lead you down a more progressive path.

Be fore warned though, that you will probably learn nothing new. Chances are that, at Column's end, you'll mutter, "heck (or something stronger). I knew all that!" But only if you can also say that you do all that should you have stopped reading a few lines ago.

BOLD STEPS NEEDED

Encountering needs in today's real estate market is slightly less difficult than falling out of bed, so merely finding them is not necessarily a bold first step
toward success. To be useful to you, those needs must be presently unmet. Aside: No human need is more critical than breathable air, but because it is generally free and abundant, you can only make a buck by selling it to specialty users, such as scuba divers.

Even if an identified need is unmet in your business environment, the reasons why must be known and you must provide workable solutions in order to pursue that fortune. Truth to tell, many of the unmet needs in today's real estate world are simply not "meetable" and therefore, do not figure into your formula for success. Most prominent in this category are so-called buyers and sellers who are unable to act by reason of the insurmountable obstacles they confront.

While the hopelessness of their situations is obvious, their desperate hopes consume far too much of the time and talent of real estate professionals, as well as souring the statistical scene in the marketplace. Those whose needs simply can't be met and whose problems can't be solved deserve nothing more than your sympathy and an absolute minimum of your attention until their circumstances change and/or the market rebounds (i.e. returns to normalcy) which it will do, as it always has in the past.

THE "COULD-HE'S" LURK

Just as damaging to your time management are those who are able to buy or sell, but are either unready or unwilling to do so. Only those prospects who really want to buy and who are both willing and able to pay what they have to pay to get what they want are really buyers: only they are deserving of your services. This automatically excludes bottom feeders who see a bottomless market, regardless of the upside potential of the bargains at hand.

They see opportunities as being merely gateways to even bigger "steals" and have an abiding fear of not milking each downtum to its historical limit. Evidence is mounting that for them, these trying limes will prove to be the "good old days" of the future, but they have no place in your present. Similarly, only would-be sellers who could be sellers belong in your work plan.

Those "could-be's" must be both willing and able to accept the best price obtainable from the best buyer available in the current market, however shy that prospect might be of the owner's ideal. Eliminating from the market those "pseudo-sellers" who don't fit that narrow definition would almost instantly convert today's surplus of listings to a near shortage. (Suggestion: Check www.joeklock.com for in-depth information on "The Facts Of Life For Home Sellers.")

ANOTHER PITHY PRINCIPLE

I'm at a loss to remember the author of yet another pithy principle: "The difference between success and failure in business is often an inability to distinguish between the difficult and the unattainable." Never has this been a more useful guideline for real estate professionals than right now. Finding those with "meetable" needs and solvable problems is difficult, as is getting them to acknowledge their status and bite the necessary bullets.

However, distinguishing between the difficult and unattainable solutions that swirl around you daily is, in fact, the difference between success and failure - and between making a living or making a fortune. You knew all that, of course ... but will you do all that as well?

Growth Leader: Innovative Tool Helps Prospects From Contact To Close

2009-05-16T21:57:00.000-07:00

The real estate marketing and technology company Market Leader Inc. has introduced an innovative new tool for real estate brokers and agents that allows them to see at a glance what's going on with all of their online prospects and help them decide what
needs to be done next to tum those prospects into clients. While the technology is fascinating and pervasive, what's best about the system is that it's easy to understand and use.

Intuitively, the Growth Leader product can even offer insights into whether a prospect has changed his preferences about his future home. The product was introduced at the NAR Annual Conference and Trade Show in Orlando and already has proven to be a leap forward in what technology can do to help build an individual
broker's or agent's business.

While the typical agent Web site may convert only a few visitors into registered
users, Growth Leader is converting around 10 percent of its visitors - visitors
who are willing to register at the agent's site. Once that registration is received, the real estate professional is able to bring into play an array of helpful tools that will guide the prospect toward a home purchase and help that real estate professional get a competitive edge in earning their business.

HOW IT WORKS

According to John Gallagher. Market Leader's senior director of marketing, the company employs its national advertising buying power and years of expertise to help real estate agents generate a steady stream of prospects. The company also has business relationships with the major search engines, including Google. Yahoo and others, to make sure its customers come up high in consumer searches.

"We don't sell leads to real estate brokers and agents:' Gallagher said, "Instead we advertise them in a way that enables them to generate visitors to their own site. And we give them the tools they need to convert these prospects into clients. That's what Growth Leader is all about". From there, Growth Leader tracks the prospect every time they return to the site. "The system knows that the prospect has looked at 18 houses and has saved 6 as favorites."

Gallagher said: "The system identifies for the agent the average price of those homes and the amenities, all of which helps the broker or agent focus on what that potential buyer is looking at." The system knows when the prospect comes back to the agent's site - whether it's a few days later or a few months. It will note whether the prospect is starting to look at more properties and spending longer looking at each one - an indication that the buyer's search is intensifying.

The system even picks up on when the prospect's preferences change. "Let's say the buyer has been looking for condos in the city, but suddenly starts looking at houses in the suburbs. The system notes that change and tells the broker or agent so he or she can follow up with a phone call or email to the prospect," Gallagher said.

The system also maintains e-mails sent between agents and prospects and provides a space for agents to take personal notes on conversations - such as the prospect comments on specific listings. And because most agents are out and about working with clients, the system can be accessed via mobile phones as well.

ANALYSIS

The Growth Leader system can analyze the homes the prospect has looked at and identify other listings that the prospect hasn't seen but might be interested in. Those additional listings, however, are not pushed to the prospect - but are sent to the agent to filter before being forwarded to the consumer. The system is intuitive, much like Amazon.com's automated analysis of how book buyers use that site.

(A consumer looking for Harlen Coben's latest mystery thriller "Hold Tight" not only sees that book, but also gels a recommendation to take a look at David Balducci's " Whole Truth.") "The difference is that the alternative homes aren't sent to the prospect directly, they are shown to the agent," Gallagher said. "Then the agent decides which ones to forward to the prospect. That way the contact is personal and positions the agent as the neighborhood expert."

All of these features are designed to give Growth Leader customers a competitive edge in keeping prospects engaged. and in converting them into new clients.

PRICING

The Growth Leader system is priced at $175 per month on a month-to-month basis but can be as low a $99 per month when purchased with an annual subscription. When agents first sign up for the system, a Growth Leader associate will discuss the agent's objectives, figure out how many prospects they would like to generate each month, and then decide how much additional advertising they would like Market Leader to do on their behalf.

While the cost of driving prospects to a broker or agent's site varies area to area, Market Leader is able to help agents attract new clients at rates far lower than they could do on their own because of their volume relationships and decade of buying expertise. "We encourage brokers and agents to buy advertising - it can be really cost effective, we can pass savings on to agents," said Gallagher.

Gallagher freely admits that Growth Leader is geared to the broker and agent who is working with buyers. but says it also is a good listing tool. "The agent is able to show sellers the kind of technology that is available to him and the kind of interest that can be generated in a property. It's a powerful listing tool," he said.
For information on Growth Leader, go to www.MarketLeader.com or ca1l 877-732-9521.

How You Can Identify And Avoid Mortgage Fraud

2009-05-15T23:48:00.000-07:00

On February 6. 2004. CNN reported that the FBI warned that mortgage fraud was becoming so rampant that the resulting " epidemic" of fraud could trigger a massive financial crisis. Mortgage fraud has now become so prevalent that the United States Department of Justice and the Federal Bureau of investigation have been forced to create an entirely new category for tracking these cases.

According to a CBS news report, the number of FBI agents assigned to mortgage related crimes increased by 50 percent from 2007 to 2008. Prosecutors and investigators on both the state and local levels are also feverishly organizing task forces and creating real estate fraud departments to counter this burgeoning wave of crime.

CRIME AND PUNISHMENT

The primary focus of these investigators appears to be on borrowers, investors, mortgage brokers, appraisers and real estate agents. Some of the charges levied against these perpetrators have included making false statements on loan applications, bank fraud, mail fraud, wire fraud, conspiracy to launder funds and a number of applicable state laws.

However, the primary legal vehicle implemented by federal prosecutors has been section 1014 of Title 18 of the United States Code which declares mortgage fraud as a federal crime encompassing anyone who willfully overvalues any land or property, or knowingly makes any false statement, for the purpose of influencing a financial institution upon a loan application, purchase agreement or other related documents.

A violation of the federal mortgage fraud law (18 U.S.C. §1014) alone is punishable by up to thirty years imprisonment and a one million dollar fine.

MORTGAGE FRAUD SCHEMES

The most effective way to avoid prosecution for mortgage fraud is to identify mortgage fraud schemes prior to any actual involvement. Most mortgage fraud offenses fall into one of two general categories: "fraud for housing" and "fraud for profit". Fraud for housing often involves fraudulent acts committed by a borrower, often coached by his or her mortgage broker or real estate agent, to obtain a loan for the ultimate goal of acquiring a home.

These fraudulent facts generally pertain to the falsification of facts and documents during the loan application process to enable the borrower to obtain financing that he or she would otherwise not be qualified to receive. Conversely, fraud for profit typically involves a more concerted plan to abuse the entire real estate transactional process for pecuniary gain.

FRAUD FOR HOUSING

Income Fraud - This occurs when a borrower inflates his or her amount of income to qualify for a loan or a larger loan amount. Although recent reductions in the use of "stated income" or "no-doc liar loans" has somewhat curbed income fraud, daring borrowers are increasingly generating more fraudulent documents to falsify income. Information technology and photocopy equipment have become so advanced that very convincing documentation, such as income Statements, savings accounts and tax returns, can be produced on demand.

Employment Fraud - In order to justify overstated income in a loan application, borrowers will claim self-employment in a non-existent company or represent having a higher position in a company than the borrower actually holds.

Failure to Disclose Liabilities - The debt-to-income ratio is an important part of the loan underwriting criteria used to determine a borrower's eligibility for mortgage loans. Consequently, borrowers will conceal financial obligations like newly acquired credit card debt, other mortgages, and private loans to artificially reduce their debt-to-income ratios.

Occupancy Fraud - This generally occurs when a borrower states on a loan application that he or she intends to occupy a property as a primary residence to secure a lower interest rate when the borrower actually intends to obtain the loan to acquire an investment properly.

FRAUD FOR PROFIT

Equity Skimming and Cash-Back Schemes - A straw buyer is typically implemented as the buyer of the property due to his or her credit worthiness and resulting ability to obtain favorable financing. Unknowing straw buyers can be manipulated by mortgage brokers and real estate agents to purchase a property as a primary residence with the broker or agent later serving as a property manager to collect anticipated rental income.

After the escrow closes and the mortgage and real estate brokers collect their commissions, they proceed to collect rental income and fail to make the mortgage payments. Complex schemes can involve a knowing straw buyer, an appraiser who intentionally overstates the property's value, a dishonest seller who intentionally inflates the selling price, and a dishonest settlement officer who makes undisclosed disbursements from the loan proceeds. All of these conspirators collaborate to collect portions of the proceeds of an inappropriately large loan before eventually letting it go into default.

Appraisal Fraud or Price Inflation - This fraud occurs when a dishonest appraiser intentionally overstates the value of a property or when an existing appraisal is altered to reflect a higher value. When a home is overvalued, more money can be obtained by the seller in a purchase transaction or by the borrower in a cash-out refinance.

The New Appraisal Fraud: Price Deflation - When done legitimately, a short sale occurs when a borrower who owes more than his or her property is worth sells the property below market value and the lender agrees to accept the lower repayment amount and forgive the difference.

A new hybrid of fraud has emerged where an appraiser or a real estate agent drastically devalues the property in an appraisal or broker' s price opinion (BPO) so that the home will sell with ease at a price well below market value. Of course the new buyer is in collaboration with the seller, agent and appraiser, so all of the conspirators proceed to sell the home at a higher price for a big profit.

Identity Theft Identity theft fraud occurs when a victim's identity is assumed by another to obtain a mortgage without ever intending to make any payments on the loan. The perpetrators often abscond with a portion of the loan proceeds and sometimes are daring enough to lease the property and collect some deposits and rental income before disappearing.

The Buy and Bail - This completely new scheme is perpetrated by a homeowner who cannot sell the home because more is owed on the property than it's worth. Because no lender will provide the owner a loan for a second primary residence, the owner tells the lender that he or she plans to rent out the current home despite having no intention of doing so. Sometimes a falsified rental agreement is used to further support the falsehood. Once the second home is purchased. the owner "bails" on the original home and fails to make any further mortgage payments.

AVOIDING AND PREVENTING FRAUD

Mortgage fraud frequently emanates from groups that complete an abnormal
amount of similar transactions or churn out many offers to purchase at once. These outfits may appear disorganized or unprofessional due to the large amount of transactions they are attempting to manage. It is also no coincidence that mortgage fraud has significantly increased as housing values have decreased since most fraud schemes involve a financially distressed or otherwise vulnerable seller.

It is equally important to remember that agents owe a very strict fiduciary
duty to act in their clients' best interests. So before reporting a client to your local authorities, you need to speak with legal counsel or your state real estate licensing department to ensure that your proposed actions don't constitute a breach of your fiduciary duty to your client.

Real estate agents are in a unique position that enables them to identify and even prevent the occurrence or fraud by recognizing the red flags, asking appropriate questions, and giving the principals in their transactions the full picture of what consequences are associated with participating in mortgage fraud. While a lot of damage has been done in the real estate market, we can prevent more of the same from occurring in the future.

How To Re-Energize Home Sales

2009-05-15T04:37:00.000-07:00

Long ago I was a part owner of a company that produced dual-fuel vehicles -they could run on either gasoline or propane with the flip of a switch. We did a lot of fleet conversions and we even supplied fuel for a number of apartment buildings. I also used to write about energy and have been lucky enough to visit an underground uranium mine in New Mexico, live on an off-shore oil production platform south of Louisiana, see coal mining sites in Kansas and Colorado, visit a nuclear fuel fabrication plant in California, see shale oil in Colorado, look at experimental nuclear reactors (they're sort of like deep hot tubs), and so forth.

ENERGY PRODUCING PROPERTIES

I bring up this history for a simple reason: We need to re-start the American
economy. One step among many would be to make every house, apartment, building and office structure not just energy efficient, but energy producing. The technology is out there today to do just that. Instead of massive projects, think smaller and in terms of millions of installations.

We could employ a lot of people in every state and in every community. At the same time we could also increase the value of our housing stock, do a lot of good for the economy and also cut our dependence on foreign oil - a dependence which drains our bank accounts and demolishes our political independence.

WHAT CAN BE DONE

Newer homes - and retro-filled older ones-give some sense for what can be done. As one example, our 40-year-old furnace finally gave out. The new sytem will cut our healing and air conditioning bill by about a third. No less important, it's better. We now have a programmable thermostat. The temperature moves up and down during the day as our needs change.

When the temperature in the house needs to be adjusted the system doesn't just go full blast, it instead selects the most energy efficient approach to get the job done. Add in better insulation, modern windows and doors, fuel-efficient appliances and more efficient toilets and you not only cut energy bills and water usage, you reduce the need to build new power plants.

Saving energy ought t0 be encouraged but it's only half the equation. The other half is this: Every home, apartment building and office complex should be seen as a source of energy production. We already have a number of homes where owners have installed various devices which allow them to lower electric usage and in some cases to feed energy back to the power grid.

We need to go further and make these pioneering efforts commonplace. A smart example of what can be done comes from Brookfield Homes. It has properties available right now, today, that benefit from solar, geothermal and wind energy. (See: http://www.
brookfieldblue.com ). Heat from the sun can be used to heat water (a huge energy cost) and also to convert it into electricity. Geothermal power to heat and cool a property can be extracted from the ground.

A simple and small turbine can produce electricity from wind. No less important, the time has come to recognize that vast homes with more square footage than a polo field are out. Times change. No one is making cars with fins. TVs with tubes or telephones with dials.

With better designs and more efficiency, smaller homes, say 1,200 to 1,600 square feet, can make great sense, especially since they're most likely to comply with Miller's First Rule of Real Estate: Never buy a home you don't want to clean.

It costs money to install or retro-lit energy generation systems, but it also costs money if you don't. As our newly elected President says, we need new ways of doing business and that includes real estate.

BROKER SUPPORT

Brokers ought to support the move not just to green homes, but to energy generating homes. The reason? Better inventory to sell. A new reason to stoke demand.

• Homes which are objectively better for the country.
• Homes which will lower gas prices by reducing overall energy demand.
• Homes which sell because they're cool, sexy, in, green and politically correct.

Look toward the future and think about the new generation of cars being produced. Some experimental models are now getting 100 MPG. That's done by combining gasoline engines with electric generators and batteries. We'll be using gasoline for decades because the distribution infrastructure is already in place. But so is the distribution infrastructure for electricity. A car that gets 100 miles per gallon is great, a car that gets 100 miles per gallon and uses free fuel from home is a technology that's long overdue.

MONEY WELL SPENT

While few of us have the ability to dig an oil well in our backyard, it's a fairly simple matter to hook up a small wind turbine or to add a few solar cells. Given the benefits, it's money well spent.

Tax Time Looms And You Have The Power To File With Ease

2009-05-15T03:41:00.000-07:00

This article will focus on how to prepare your business and personal tax returns once tax time actually arrives. Issues discussed will include how to efficiently file your tax returns, how to avoid audit triggers and important filing issues. If you stayed organized throughout the year, tax time should be a breeze. Do not panic if you were less than diligent with your record keeping and organization: just make it a point to change your habits this year.

Make sure you have all of your documents

Gather all relevant information including reporting documents, bank/brokerage statements and available deductions. Review your prior year tax returns to make sure you have all of the documents that you had in the past and may have overlooked. This step is important to save time and to ensure that you do not have to file an amended return with information you forgot the first time. A complimentary checklist of common items you need to include on your tax return is available on our website: www.bergersontax.com, under the Income Tax Organizer tab.

Separate your expenses into categories

As a real estate professional you assuredly have many expenses from operating your business. It is very important that you do not lump all of your expenses together. but rather separate them into different categories. If you use accounting software you will be able to print out a statement that has your expenses broken down into different categories already. You will find if you have folders for each category of expense and separate and ledger your receipts throughout the year, you will save yourself time when you go to file your taxes.

If you just threw all of your receipts in a box, you will need to categorize your
expenses now. As an example of how to categorize your expenses, look at the chart titled "Deductible Business Expense Worksheet". By having your expenses separated into different categories you can easily transpose your numbers onto the tax return. If you hire a tax professional you will make his or her job easier and save money on tax preparation fees.

File on time

No matter what type of business return you are required to file, make sure to file by the appropriate deadline. April 15th is the deadline for filling your individual income tax return, unless it is pushed back a day or two as it has been in recent years. Your return is considered filed timely if the envelope is properly addressed and postmarked no later than April 15. If you use a fiscal year (which is a year ending on the last day of any month other than December), your return is due on or before the 15th day of the fourth month after the close of your fiscal year.

If you cannot file by the due date of your return, then you can request an extension of time to rile. However, an extension of time to file is not an extension of time to pay. You will owe interest on any past-due tax and you may be subject to a late-payment penalty if payment is not made timely. To receive an automatic 6-month extension of time to file your return, file Form 4868 by the due date of your rerum.

Do not include items on your tax return that will raise RED FLAGS

When preparing your tax return it is important to avoid including any items that might draw extra attention to your return. Below are a few items I have found attract extra attention from the IRS. A complete list of audit triggers can be found in The Audit Angel 2009: Income Tax Organizer and Mileage log available at www.bergersontax.com.

Unusually high itemized deductions

If you claim large deductions for someone in your income category the IRS might decide to examine your return. Do not be afraid to claim all of your deductions if they are legitimate, just be able to validate them. If you are interested, take a look at the IRS statistics from Income Bulletin, Spring 2008 News Release IR·2008-720of average deductions claimed for income categories. Compare your itemized deductions with the national average to see if your deductions would be considered high.

Losses from self-employment

As a real estate professional you most likely are considered self-employed and have to file a tax return for your business. The IRS audit rates are already higher for taxpayers who are self-employed, but the item that really raises RED FLAGS is if an individual claims losses from their self-employment year after year. When claiming losses every year the IRS wonders if you have a legitimate business and are making a real attempt to make a profit or if you are participating as a hobby.

Under the "hobby loss" rules you can deduct expenses only to the extent of income from the activity. In my experience, I have generally found the IRS starts questioning if a profit is not achieved between three to five years. As a self-employed individual myself, I know how difficult it is to achieve a profit, especially in the first several years of business.

If you do not earn a profit for many years, make sure you can show you are attempting to have a successful business and have a legitimate motive to make a profit. Things you can do to demonstrate that include: having a business plan, setting up a business account at a bank or having a business credit card, having a registered name, produce marketing materials and having a completed mileage log with appointments or meetings.

Do not report all round numbers

You might laugh at this one, but I assure you individuals do it all the time. Although you are required to round off your income and deductions to the nearest dollar. do not report everything rounded to the nearest zero. When all of your deductions are $50, $100, $1,000, it appears to the IRS that you are guesstimating your figures and not reporting the actual amounts. Actually several years back I had a client bring me his Deductible Business Expenses Worksheet filled out with all numbers rounded to the nearest hundred. Needless to say, I sent him back home to find the exact figures and thus solved him an unpleasant meeting with the IRS.

Get good advice

It is very important that you have a tax professional to consult throughout the year and to help you complete your income tax return at year end. Keep in mind when I say a tax professional I mean someone who is qualified, has ample experience, and is willing to speak with you personally to explore your individual tax situation to best maximize your deductions. The main reason to hire a tax professional is that chances are you do not keep up with current tax law.

Congress is constantly passing new laws, the IRS comes out with new rulings and judges make new decisions all the time, all of which directly affect your tax situation. How many of you have the ability to read about all these decisions in the newspaper as well as research them thoroughly to see how they affect your individual tax situation? Tax professionals subscribe to newsletters, press release and alert services that keep them abreast of every changing tax law. In addition, tax professionals attend tax education courses throughout the year and learn about changes from IRS agents and state officials.

Keep tax returns and records for at least three years

Your tax return and records should be kept for at least three years: since the IRS generally has three years from the date your return is filed to audit your return. Keep in mind, however, the IRS can go back as far as six years to question a return where income has not been reported or indefinitely where fraud is suspected. Records of transaction relating to the basis of property should be kept for as long as they are important in figuring the basis of the original or replacement property.

An example would be keeping records of the purchase of rental property or capital improvements to that property for as long as you own the property. The keys to a smooth income tax filing are to make sure you have all the correct documents, categorize your expenses, avoid audit triggers, file on time, and get good advice. If you follow the steps in this article and prepare properly throughout the year, your income tax preparation experience should be painless.

If you have not been very organized in the past, make it your New Year's resolution to start keeping detailed records of your business expenses. You will likely find that you have more deductions than you thought and you will also be protected in the case of an audit. The more organized you stay throughout the year the easier tax time will be.

REBAC's Exciting Entrance Into 2009

2009-05-15T03:06:00.000-07:00

I understand that today's market presents unique challenges for all of us, which only strengthens my commitment developing new REBAC member benefits and reaching out to consumers looking to buy. Normally, I take the time in this Column to write about general topics, and not promote REBAC per se.

But I thought I would be remiss if I didn't share with you how strong Our organization is and how it benefits you. If you are a member of REBAC, thank you and please enjoy this overview. If you are not a member, I want to invite you to become a part of the largest member organization dedicated to representing buyer-clients in the residential real estate transaction.

In 2009, you won't see the REBAC staff slowing down or lessening our member support. You have my word that we are working tirelessly to increase your benefits, help you find clients and raise consumer awareness. So, please permit me to share with you what we have done and what we plan for members of REBAC and those that have earned the Accredited Buyer's Representative Designation.

YOUR WEB SITE: REBAC.NET

After conducting focus group research with members and consumers alike, we revamped www.rcbac.net. The site is as easy to navigate and has excellent tools for our members. Knowing that knowledge is power we placed these tools in the password protected "for members" section of the site.

o View all past issues of Today's Buyer's Rep online in the members section of
www.REBAC.net. many of which also include articles that will be valuable to consumers. Feel free to use these issues to brush up on your skills, share with your clients or use for prospecting tools. Just make sure you aren't violating copyright protections when you reproduce content from another source. If you want to use any REBAC materials, simply drop us a note at REBAC@realtors.org. We'll walk you through our simple process for securing reprint permission.

o Save time and money by using the REBAC Print Shop where we've developed professionally designed postcards and flyers that you can customize, geared toward first-time homebuyers, in addition to several other audiences, such as growing families, relocating buyers, vacation homeowners, move-up buyers, retirees and more. All you need to do is check your personal contact information and, if you like, add your photo. You can even upload your mailing list and let the Print Shop send your postcards for you.

o I strongly encourage members with real estate questions to try our new "Ask an Expert" feature, Here you can submit questions for a real estate lawyer, a mortgage broker, another buyer's rep or other real estate professionals. Your questions, as well as all answers, will be posted on the site, so all members can benefit from this expert advice. Don't worry about asking a question that seems too basic, we won't list names on the site.

o In addition to hiring the quantity and quality of online member benefits, the new web site is loaded with valuable information for homebuyers, including many great tips and insights into the importance of working with an ABR. That information, coupled with a stepped-up online advertising campaign, should result in strong traffic from consumers to generate even more referrals for REBAC members.

LEARNlNG AND EDUCATION

On more than one occasion, members have asked me why REBAC doesn't have a continuing education requirement for members. My reply is simple-we provide such a wealth of on-going information that members receive education all the time. Members get this fine magazine, weekly email updates and our monthly newsletter - Today 's Buyer Rep. Also, we will continue our REBAC Connection webinar covering a wide range of topics of particular interest to buyer's reps.

The introductory sessions have received very high marks from the members who have participated in to them. There is no charge for these webinar; - it's part of your member benefits package. These are just some of the things that REBAC is doing for its members. Don't forget that we have other incredible tools for you such as REBAC's online guide to Successful Homebuyer Seminars, which walks you through each step in the process and offers numerous helpful shortcuts.

Also REBAC's Homebuyer's Toolkit; an excellent resource you can provide to prospective buyers for a comprehensive quick-reference guide to buying a home. And in 2009 we will be going full-force into creating social media outlets for you to network with peers, find prospects and continue to learn. While the media and others are painting complete gloom and doom, I firmly believe that REBAC members, and especially those who have already earned their ABR designation, are uniquely positioned for greater success this coming year than other real estate professionals.

Also, we've witnessed an ongoing trend over the years, in terms of buyers becoming increasingly informed about the many different purchasing decisions they make. This trend has been fueled in large part by easy access to information over the Internet. I say this is great! The more educated the buyers are, the more they will see the benefit in using someone with additional training and accreditation as it relates to the buy-side of the residential transaction.

Now, more than ever, homebuyers want to make sure they're making smart choices, both in terms of the homes they buy and in terms of who they will work with to complete their transaction. As buyers sort through their options -including learning about the benefits of buyer representation -it will undoubtedly become clear to them that their interests are best served when they're served by an Accredited Buyer's Representative.

It's About Time

2009-05-15T02:29:00.000-07:00

Let's face it - the real estate industry had a tough year in 2008. The mortgage crisis, declining prices, lower buyer confidence, slower sales rates and myriad other factors contributed to a year many of us are glad to be done with. But although most experts agree that any rebound in 2009 will be slow and
deliberate rather than sudden and extreme, the new year, along with a new administration and outlook, provides each of us with a fresh start of sorts-and some time to think about the industry and our place within it.

TIME FOR STIMULUS

The housing industry is the primary focus in any discussion of getting the U.S. economy back on track. In fact, by the time you read this, one of several stimulus packages might already have been adopted. The act of making housing a national priority and implementing a plan is a vital step in the recovery process. The move should aim to increase demand (through means such as tax incentives and/or interest
rate buydowns), curb foreclosures, eliminate problematic mortgages, assist homeowners and restore consumer confidence.

And while no one forecasts a smooth residential ride this year, some local markets are already showing signs of turnaround while others seem capable of doing so with the proper stimulus. Buyers are out there, despite considerable challenges in terms of oversupply and general economic turmoil, the combination of attractive interest rates, sound lending practices and attractive prices should bring people back into the market.

TIME FOR GREEN

While the economy and the election rightfully dominated headlines over the past year, another transformative social shift also will have a vast impact on our industry. "Goinggreen" is far from a new concept, but the scope to which it has grown shouldn't be underestimated. The days of $4 gasoline may have disappeared for now, but the national focus on energy efficiency has not.

For real estate agents, this requires a deeper understanding of the green paradigm.
Are you able, for instance, to articulate to your clients the significance of LEED. Energy Star and other rating systems? Are you properly versed in sustainable communities, smart growth, new urbanism and the latest trends in conservation? Are you prepared to deliver professional advice on the green merits or lack thereof - of a particular property?

Fortunately, there are excellent ways to learn. The new Green Designation program unveiled at the National Association of Realtors Convention in November, for example, can provide you with a solid foundation of skills, knowledge and credibility. The curriculum consists of a two-day core course and one of three one-day electives. This might be the ideal time to complete the training and add the designation to your toolbox.

TIME FOR TECHNOLOGY

In Denver, where I live, we're on the verge of losing the city' s oldest newspaper, The Rocky Mountain News, which was first published in 1859. Other venerable newspapers, from the Miami Herald to the Chicago Tribune, also face troubling situations. These longtime media giants are struggling for a variety of reasons, but the tidal shift in classified advertising is cause No. 1. Quite simply, more and more readers now use the Web to find things - such as home listings - that they used to see in the newspaper.

Paraphrasing an old saying, the best time for a real estate professional to fully engage online advertising and lead generation is five years ago. The second-best time is today. If you aren't, on the first or second page of results when someone Googles real estate in your city; if you haven't investigated which Search Engine Optimization techniques will drive traffic to you; if you haven't explored the many venues that can promote your listings and generate leads for free or at little cost; if you're unclear about podcasts, virtual tours, blogs or digital photos: or if you' re reluctant to network with colleagues and/or consumers on any number of social media sites, then the time for you to make a shift in your online approach to business is right now.

TIME FOR ACTION

Under any conditions, we all remain empowered to approach each day with the energy and motivation required of successful people. No matter what sort or trouble brews, the age-old adage still holds true: Nothing beats hard work. In sales, that translates to maximizing the time you spend on activities resulting in business. It's vital to have systems that cultivate leads, process contacts and serve clients in the most efficient manner possible.

Whether through team members or automation or other means, you need to deftly complete the day-to-day tasks that connect you with prospects and transform them into clients and customers. Then you must deliver the type of expert service that creates advocates and additional referrals. There' s simply no substitute for this. It's easy to forget that promotion, reputation, visibility, efficiency, knowledge, skill and sheer professionalism are permanent cornerstones in the success of the very best real estate agents. But make no mistake: Strength in those areas will see you through - even in the hardest of times.

I’m Mad As Hell, And I Won’t Take It Any More!

2009-04-09T03:39:00.000-07:00

My apologies to the readers, but the title is the famous tag line from the prophetic movie, “Network” that thirty plus years ago foresaw the explosion of news-as-entertainment, 24-hour surveillance of everybody, and content-free “reality” television. Go back and look at it if you want to be really scared. But, the line also describes the way I’m feeling as the Congress bumbles through the current problems of the real estate sector.

LET ME COUNT THE VILLAINS

So, who am I mad at? Let me count the villains.

1.) Whiners and selfseeking opportunists.

The poster children here are home builders. They were a major cause of the housing downturn as they built subdivision after subdivision in response to demand that wasn’t there. The net result was that inventory piled up as new homes went unsold or speculators tossed their keys back to the builders. This depressed the price of all homes on the market.

Why did they do this? They did it to keep their stock prices up and thus safeguard the windfall they received from going public. And when the market collapsed around them, they had the nerve to ask Congress to allow them to carry current losses back against past profits for tax purposes (they almost got it, and still may—the Congress hasn’t finished fouling things up yet.) The builders are like the kid who shoots both his parents and then begs the court for mercy because he’s an orphan.

2.) The financial sector.

Like the guy with a hammer who thinks every problem is a nail, the financial sector, having had risk land on their heads, portray themselves as the center of the universe. Surely if some financial firms fail, then the planet will break free of the sun’s gravity and spin off into the void of space. Don’t believe it.

The financial sector is in the business of accepting large scale risk so that commerce can be done. It is paid handsomely for its efforts, as well it should be. But when deals don’t work out, or when the price placed on the risks is too low, losses will occur and this is part of the business. To whine (see number one above) to the Fed when things don’t work out is breaking the rules of the game.

3.) The Fed.

Yes, this is the institution charged with maintaining the stability of the financial system. But in this case, the Fed has gone overboard in its actions. For example, arranging for the sale of Bear Stearns to Morgan for $2 a share was entirely appropriate in defense of the system.

Responding to the complaints of Bear executives and raising the price to $10 stepped over the line.As you know from my last column, the actions of the Fed will result in the outbreak of inflation next year, unless those actions are reversed before the end of this year.

4.) The Congress and the Administration.

Here again, the “no pain” culture that seems to have gripped America is in full flower. No homeowner who has been foreclosed should suffer the loss of his home. Sorry, but failure to pay should have consequences. I’m not a hardhearted person, but the way in which Congress and the Administration are approaching the solution to the housing sector problems fails to distinguish between the sheep and the goats, rewarding the guilty as much as saving the innocent.

This is bad public policy. Both the Fed and the Congress have now created an expectation that no misjudgment will ever land on the head of its perpetrator. This is a precedent that will only encourage more reckless behavior in the future.

5.) Realtors® and mortgage bankers.

I don’t believe that the finger of blame can only be pointed outward. During the frenzy, point-of-sale professionals did all they could to get people into houses, since this is what generates revenue. Scant attention in many cases was paid to whether this was the right house or the right mortgage or whether the buyer could sustain the payments on the mortgage. To the extent that this happened, the industry bears part of the blame.

THE VILLAIN NOT COUNTED

Notice the villain I left out. Many in the real estate world have blamed the media for fomenting the crisis. To some extent this is true, but not to the degree most real estate professionals believe. I think the media got lucky.

They kept preaching about a housing bubble because this was the type of story that brought by-line credit. Meanwhile, there was an untenable market growing that eventually broke. Well, I guess even the blind chicken finds an occasional piece of corn.

SELL WITH SOUL - Book Review

2009-04-09T03:36:00.000-07:00

In basic real estate licensing classes, one of the first topics covered is the real estate licensee’s duty to his clients and to his customers. The academic definition of client is the person whom you represent in an agency agreement while the customer is a represented or unrepresented third party in the transaction. The simplest example would be if you had a listing you would enter into an agency relationship with the seller, who would be your client.

A buyer, whether represented or not, would be a customer. While there’s a whole list of duties to your client, the most fundamental is that you put the client’s interests first. Most assuredly before your own. Your duty to the customer is to deal fairly and honestly. In most situations, real estate agents get paid when the transaction closes.

That could mean that there might be an occasional situation where it could be tempting to pursue a course of action that might not be in the best interests of the client. There are those who maintain that the reason real estate agents typically rate so low on the public respect surveys is that too often the client’s (and customer’s) interests become secondary.

The very basic message in this book by Jennifer Allan is that in every circumstance you should put your client’s interests first, and that agents should strive to be competent real estate advisors and not employ traditional sales techniques. One may wonder how an author could fill 233 pages simply addressing that issue, but since the book is aimed primarily at new agents, there is almost an endless variety of topics that can be addressed.

Her writing style is not only informative, it’s highly entertaining. Allan began her real estate career in 1996 in Denver and quickly became one of the top producers in the market area. In 2004 she founded her own New Precedent Real Estate company in Denver. She is also a trainer and speaker. You can check out her activities and more details about this book and others she has written at her web site: www.SellWith Soul.com.

You can check out her writing style and message by visiting Realty Times, where she is a columnist (http://realtytimes.com/rtpages/jennifer_allan.htm), this book would be a mandatory read for all my agents.

POWER TEAMS - Book Review

2009-04-09T03:33:00.000-07:00

I like the title of this book, since it describes exactly the authors’ objective in writing it. It’s intended to be a complete guide to establishing and operating a successful real estate team. It accomplishes the mission extremely well. Co-author John Featherston is the founder of RISMedia, which is promoted as “the residential real estate industry’s premier source for news and information to the residential real estate, relocation, and home services industries.”

Visit the home page of the web site and you’ll get a good overview of services and products. I’m confident you’ll recognize the name of the other co-author of this book, Ralph Roberts, the President and CEO of Ralph Roberts Realty in Warren, Michigan. You can check out his brokerage web site at www.RalphRoberts .com. If you would like to sample his writing you can visit the web site of Realty Times (http://realtytimes. com/rtpages/ralphroberts.htm) where he has been a columnist since 1999.

You can access a long list of his articles. A feature of this book that makes it particularly credible is that the primary authors have secured input from 26 real estate professionals who are involved with teams. A brief biography of each contributor is included as an appendix to the book. I’ll site just a couple to give you an overview. Brandon Fairbanks (www.mymaderacountyrealestate.com)

Brandon is the President and CEO of Montecino & Associates Real Estate Company in Coarsegold, California. In the book he offers guidance on how to properly train and equip team members with the tools they need to succeed. Interestingly, Brandon’s mother Patty is a member of his team. Kandra Hamric (www.kandrahamric.com)

Kandra is a professional virtual assistant, and CEO of her own virtual assistant company. She also has practical experience in the real estate profession. In the book she offers her guidance on how to communicate effectively in the digital world.

REAL ESTATE SOUL MUSIC

Just as the real estate team concept has evolved over the years, so has the general sales philosophy in the profession. A couple of decades or so ago, when I embarked upon my real estate career after retiring from the Air Force, I attended just about every sales seminar within driving distance. The dominant theme of most focused on closing techniques.

The word “manipulative” frequently crossed my mind. Two of the most articulate sources of information on an evolving sales philosophy are the following extremely worthwhile books.

THE CHAMPION REAL ESTATE TEAM - Book Review

2009-04-09T03:32:00.000-07:00

We’ve reviewed several of author Dirk Zeller’s previous real estate books in this section. Dirk is the President and CEO of Real Estate Champions, a prominent coaching company in the real estate industry based in Bend, Oregon. Here are the stated objectives of the book:

• Determine the ideal team structure and size for you;

• Select, train, position, coach, and manage to get the best performance out of each team member;

• Create a culture of consistent prospecting, learning and development;

• Work with buyer’s and listing specialists, field and marketing coordinators, Internet marketing specialists, and more.

For a complete description of the book, and other Zeller products and programs, visit www.RealEstateChampions.com. Click the Real Estate Training Books link. When you visit the web site, I believe you’ll agree with me that you’ve rarely encountered a more professional and impressive presentation.

TEAMWORK IN THE REAL ESTATE PROFESSION

2009-04-09T03:31:00.000-07:00

Those of us who have been engaged in the real estate profession for a few (OK, quite a few) years have seen many changes in how business is conducted. One that is still evolving is the concept of real estate teams. If a person is engaged in “professional real estate activity” (which basically means you expect to get paid for your services) then a real estate license is required by the state.

The fact of the matter is that there are an incredible number of duties that must be completed in any real estate transaction which are essential, but do not require a license. Top performers began to bring on others to do those things, which freed them to accomplish the essential tasks. The team concept has now evolved considerably.

For example, I have several of my former students from my real estate license classes who now operate on teams as exclusive buyer’s agents, exclusive seller’s agents, and transaction managers. They are all licensed. In researching this topic I’ve come up with two excellent information resources. If you’re an agent considering forming a team, or an agent considering joining one, I highly recommend both of these books.

YOU ARE NOT A HOUSE - Book Review

2009-04-09T03:28:00.000-07:00

If author Dr. Bill Fisher came up with his book title to grab the attention of potential readers, he succeeded with me. Try as I might I couldn’t figure out how the phrase “You Are Not A House” could possibly relate to the subtitle “How to Build Your Real Estate Career With Passion And Authenticity.”

Since I’m guessing you might be facing the same challenge, here’s how the book’s promotional literature explains it. “How does a real estate agent build a rich, satisfying career? For decades, real estate professionals have thought of the classified ad as the standard for all their advertising and marketing.

Use punchy words, leave out information that readers will call to find out about, tease the reader all the way to the phone. This may help sell a house, but it does very little to build your career and motivate people to call on you, not an advertised house, for help with real estate matters. You are not a house.”

The book is written around a series of “Service Oriented Marketing Principles.” Number one on the list sets the tone for the remainder: “Design all your marketing and prospecting with your clients’ needs in mind. Not your own needs.” The point is elaborated on with this: “The central error people commit is thinking from the vantage point of their own professional needs, rather than from the vantage point of their client’s and prospective client’s personal needs.”

Dr. Bill, as he refers to himself, is a former highly-successful real estate practitioner in California who now specializes in providing marketing information through a variety of personalized newsletters. Check out his blog at youarenotahouse.blogspot.com. His e-mail address is wedwrap@comcast.net. Just remember. You are not a house.

When teaching my real estate licensing classes I role play that I am the managing broker and the students are agents in my company. The company name: “Golden Rule Realty.” No theological implications, just good business. Both of these books would be prominently displayed in our office.

Some Helpful Tips For Achieving Logo Nirvana

2009-04-09T03:20:00.000-07:00

A logo serves as the personality and opening statement made to the public by an organization. Logos can be seen on business cards, billboards, in print, online and everywhere in between. Many well-known organizations have memorable logos — think the bulls eye for Target, swoosh for Nike and the Apple for Apple computer. All are memorable as the symbol of the company they represent, and with just a symbol, we can associate a company and brand promise without ever seeing a written description or company name.

It is important to realize the power of a unique and effective logo and what it can accomplish for an organization’s identity. No matter the size of the organization, a logo is the symbol of an organization and an effective one is a visual icon that reinforces a company’s mission and identity.

YOUR LOGO DESIGN

The following tips will explain how to design a logo that will remain constant on the mind of its viewers.

Express Your Organization’s Personality

Your logo can not sing and dance but it can express the personality, purpose and promise of your organization. In fact, it is vital for a potential customer to learn something about your organization just by looking at its logo. It can also provide a clear and consistent image of the company. Believe it or not, the colors that make up your logo are an important component in helping to accomplish this goal. Consider implementing blue into your color scheme as blue communicates trust.

Pop Goes the Logo!

The most effective logos are ones that come alive and jump off the page or wherever they are displayed. Make sure your logo is bold, memorable and pops. Ensure that your logo design makes sense for your business and don’t be afraid to test it with existing and/or potential customers to see what their feedback is. What you think works might not resonate with your customers.

Keep it Simple

Don’t over-think your logo design and keep it simple and clean. Attempting to do too much with your logo will only confuse your target audience and blur your message. A confusing logo is forgettable and useless. Sometimes less is more.

Make Sure Your Logo is Flexible

A logo must work well across all channels as it can be displayed in numerous places online and in print. Legibility is key and your logo should be able to work in both black and white and color as it may be on documents that will be faxed or photocopied. A logo that cannot be viewed clearly is not effective. Keep in mind that your logo may be viewed on a small object like a business card or on a larger item such as a presentation folder.

Make a Statement

Many logos also include a tagline, which is a statement of the products or services you provide and separates your organization from others. Like the design of the logo, a tagline should be short and to the point but memorable — think of Subway’s “Eat Fresh,” John Deere’s “Nothing Runs Like a Deere” or Nike’s “Just Do It.” As you design your logo, incorporating a tagline can be an effective marketing tool and it is one best developed in conjunction with the logo.

Research Your Logo

While your logo might symbolize something positive in the United States, it might stand for something entirely different in other cultures. Research the meaning behind your logo before you finalize it as it may convey a negative message to those from other cultures. Many organizations do business with individuals and organizations from other countries/cultures which make it vital to create an internationallyfriendly logo. And, of course, make sure another organization is not using the same or a similar logo design, especially if they are a competitor.

Use it!

Now that you have a logo, it is time to use it everywhere both online and in print. Put it on all of your marketing materials including business cards, letterhead and even envelopes. Include it in your email signature, on your web site and use it in all correspondence to reinforce your company and encourage repeat customers and referrals. Once you have a solid logo that makes an impact, it should be synonymous with your company name.

Protect Your Logo

Give clear, specific guidelines to anyone who will be working with your logo and insist on approvals for any use of it. Be clear as to how the logo should be used, in what form and on what media. Let them know not to distort the mark and ensure they use enough clear space. If it is used incorrectly, fix it immediately. Your logo is the symbol of your company and it needs to be consistent.

Be Consistent

A logo is not something that should change regularly. It takes a lot of work to come up with a logo and it takes an even greater amount of time for customers and prospects to remember it and associate it with your brand. Changing a logo regularly will confuse your target market and cause more harm than good.

Spend the time to develop a stellar logo and associated tagline now to reap the benefits in the future. No matter your budget, design resources or the size of your business, these tips will enable you to create a logo that will represent your organization proudly and effectively.

Is Finding Balance In Your Life A Pipe Dream? It Need Not Be.

2009-04-09T03:12:00.000-07:00

Balance has been such a popular subject in the last five years that it’s almost become passé. But that hasn’t stopped many of us from continuing to pursue it. The world has gotten smaller as it’s gone more global, and the pressure to do more, faster, with fewer resources hasn’t abated.

Most people are juggling the demands of two-income households while trying to keep current with all the chores, tasks, details, and information necessary to make informed and wise decisions, not to mention time for family, hobbies, volunteer activities, exercise, socializing, self-improvement ... the list seems endless! And overwhelming.

We seek balance because we’re stressed. We gravitate toward balance when our activities are not closely enough aligned with our values, or are too taxing to be healthy over the long haul.

WASTED EFFORT?

But trying to find perfect balance is a pipe dream and wasted effort. There seems to be more pressure to be successful — in the cultural sense — than ever before. While doing the job of two or three people at work, we’re expected to be exemplary parents, and also have a life in which we actively enjoy our avocations and hobbies, and take superb care of our bodies, spirits and minds.

If you think balance needs to be a daily practice, think again. While it’s a wonderful goal, it’s not realistic for most folks. Balance becomes another to-do on an ever-expanding and guilt-inducing list. What if the balance we’re looking for in our lives was more like the balance that nutritionists suggest as a diet? For instance, we don’t need to eat all the proper numbers of servings from the five food groups each and every day, but if we get a good balance over a month, that’s still quite healthy.

THE BIGGER PICTURE

Translating that to the bigger picture, that might mean that there are times when we need to work more than usual, and other times when we can take more time off; times when we focus more intently on our hobbies and passions, and other times when they go a bit neglected because there are other current important priorities.

There may be times when we take really good care of ourselves, and other times when that slips a bit; times where we devote a lot of attention to our family, and other times when there is less energy and daily time to focus on them. And that’s OK — it is as it needs to be. The aim of balance is to live a wellrounded life, and to renew and refresh your productive and creative energies on a regular basis so you can contribute to the best of your potential.

REALISTIC BALANCE

Here are some useful tips to help you achieve a realistic balance.

Get Mindless.

The other side of work isn’t only time or a simple hot bath, sports, meditation, fishing, taking a walk, sitting in your yard and watching the birds in the trees or the clouds in the sky. This “mindless” time is critical to restoring your mental prowess, as well as your physical stamina. It also creates space for spontaneous creativity and problem solving. Don’t force it, though. The aim is to relax and enjoy that relaxation fully.

Employ your calendar.

Remember to schedule those activities into your calendar for specific days and times. If you need to contact others to set things up, schedule that into your calendar, too. Seeing the activity in your calendar engenders more of an emotional commitment to it, and it sets aside time for it, automatically making it more of a priority.

Reduce family performance stress.

Quality time with your loved ones needn’t be complex or difficult to pull off. You don’t need to schedule special activities or spend a bunch of money to spend rewarding, memorable moments with your family and friends. Unstructured time and spontaneous activities are often more fun and are remembered longer. Some ideas include going for a bike ride, sharing an interesting craft project, baking or cooking a meal, going for a hike in a local park, or taking a car ride.

Be gentle with yourself.

If you start a new habit that soon gets pushed to the side in the onrush of regular life, understand that it’s completely normal. You haven’t failed, you’re just experiencing the same breakthrough bumps everyone else goes through, too. It’s unrealistic for you to decide to take up a positive new practice and always follow through on it forever more. We know this, we just forget to be more compassionate with ourselves. Ask yourself if the habit was worthwhile when you did it, and if it was, work it back into your schedule. If it wasn’t, pick something new to play with.

Make it sustainable.

If it’s not already part of your daily schedule, creating an expectation that you’ll practice silence, or meditation, or journaling, or some other activity every day just isn’t realistic. Once or twice a week, or even once or twice each month may be enough for some balance activities, at least to start with. After all, that’s 100-200 percent better than before you started, and that’s great progress.

Make it yours.

Don’t get caught up in trendy balance activities if they don’t fit your tastes or preferences. Since cultivating our best selves is one of the reasons we seek balance, spend time doing the things you really love to do, no matter what anyone else thinks of them. These are, after all, the pursuits that will truly reenergize and gratify you.

Look for balance between your values and your financial constraints versus a satisfying lifestyle, so that you’re living a life that doesn’t wear you out too quickly; one that satisfies and engages your potential over months and years rather than daily or weekly. It’s a much more forgiving intention, more reasonable and sustainable, allowing you to be productive and effective while not overloading you with expectations that just add unnecessary pressure.

If the pursuit of balance is putting you off balance, remember that while it’s a worthy pursuit in moderation, its purpose is to reduce your stress and overwhelm, not add to it. Have fun with it, enjoy it and let it be as “do nothing” as you’d like it, and need it, to be.

A Hidden Nightmare In Payment Options Loans

2009-04-09T03:07:00.000-07:00

A past client calls you, totally in shock. She just received a letter from her mortgage company regarding changes to her payment option loan. It states that since her mortgage amount has increased due to negative amortization, she must now pay the fully-amortized payment.

In other words, the payment option loan is being stripped of its payment options! She took this loan out to have monthly payment flexibility; but now she’ll be saddled paying more than twice what she’s been paying. She tells you this new payment is financially impossible for her and ends the conversation with the question, “How can the mortgage company change rules midstream?”

THE RIGHTS OF THE LENDER TO CHANGE THE PAYMENT

The mortgage company can and does exercise changes to a mortgage payment during the life of the loan due to the language used in the mortgage papers your client signed at closing. This little-known payment change clause is currently affecting tens of thousands of homeowners nationwide and, unfortunately, is bound to breed a whole new rash of delinquent loans and foreclosures.

Here’s some background. The payment option mortgage is a type of mortgage (usually with an adjustable rate) that allows the borrower to choose one of four payments each month. For example, you can choose from a payment: 1) amortized for thirty-years (normal payment); 2) amortized for fifteen years (accelerated pay-off payment); 3) of interest only (no principal is paid); or 4) of less than interest- only (termed “minimum payment) where the shortfall/negative amortization is added back onto the principal balance.

Most payment option loans are for brief periods of three, five, or seven years in order to keep the principal balance from growing too large if only the minimum payment is made. While that sounded plausible in mortgage theory when these loans were birthed approximately five years ago, the application and subsequent outcome has morphed into a nightmare in the current mortgage environment.

LITTLE-KNOWN CLAUSE THAT BLINDSIDES CONSUMERS

A little-known clause in the documents for the payment option mortgage allows the lender to cease offering the monthly payment options for that loan once the principal balance reaches a certain high point, typically 110% of the original mortgage amount. Let’s say that your client’s original loan amount three years ago was $233,000 and she paid only the minimum payment each month since that time.

With the monthly payment shortfall/ negative amortization accruing over thirty-six months, she now owes $256,000, or 110% of the original loan. The lender’s position is that this extreme financial leverage could put her in a more likely position to lose her home to foreclosure. Moreover, the lender wants to protect their position against the borrower walking away from the loan due to low/ no equity.

The lender’s remedy is to require your client to stop the equity bleed and begin building equity in the property by paying the fully-amortizing, regular payment. In other words, the minimum payment of $871 on this loan now escalates to $1,797 per month…more than doubling her monthly principal and interest payment!

In a stance for self-protection, lenders across the country are mailing out payment increase letters by the thousands, giving little thought that a majority of borrowers choosing payment option mortgages did so because the fully-amortizing was financially out of reach. Unless a family takes on a second or third job or wins the lottery, this move will create additional insult to injury for homeowners in the already precarious market.

WAYS TO HELP YOUR CLIENT

There are several steps you can take to assist your client. First, recommend that she immediately call her mortgage servicer at the number listed on the notice she received. Ask what alternatives are available to her. For example, they might be willing to re-cast the loan at today’s current fixed-rate provided she qualified for that loan amount and provided full documentation (verification of income, debts,
and the like).

Since many payment option mortgages have fairly steep pre-payment penalties totaling thousands of dollars that would need to be paid as well. If re-casting the loan is not financially feasible, suggest that she negotiate with the loan servicer to at least reduce the full payment to interest-only. This is sometimes provided to a borrower who has a flawless mortgage payment record in an effort to at least keep the loan from growing in principal through negative amortization.

While it will save only a few hundred dollars a month in payments, that might make the critical difference of keeping the mortgage current or going into default. This latest coffin nail in the already precarious mortgage market is one more reason for consumers to understand each and every clause in the mortgage documents before they sign them and to request a viable worst-case scenario when any type of option or adjustment product is considered.

If your clients have a payment option mortgage, it may be in their best interest to get their financial house in order and move to a fixed-rate mortgage as quickly as possible.

Putting Video To Work For You On Your Website

2009-04-08T04:42:00.000-07:00

Real estate professionals have long understood the power and effectiveness of video in selling property. Virtual walkthroughs and video tours immerse the buyer in the experience of the property, and result in shorter sales cycles, higher conversion rates, and better qualified prospects. Yet despite its effectiveness, the cost, complexity, and availability of video solutions has meant that very few properties ever benefit from the power of video.

In an era when many real estate professionals host their own websites to showcase properties, and where buyers and sellers alike are highly attuned to the online consumption of video, cost and technical complexity have been the major hurdles to the effective use of this emerging medium. But two important developments — video-enabled digital cameras and plug-and-play video service providers — are now putting cost-effective video solutions within the reach of all real estate professionals.

USING YOUR DIGITAL CAMERA

Whereas, even a year ago, capturing video meant engaging a professional production team to the tune of thousands or even tens of thousands of dollars, today any individual with a digital camera can capture highly-effective professional- looking video footage, provided they follow a few simple rules.

Shoot with lots of light - Video is much more sensitive to light than still images, and the more light you have when shooting, the clearer, smoother, and crisper your final video will be. Daylight is best, but if you have to shoot in artificial light, make sure to work in conditions that are as brightly lit as possible.

Don’t zoom or pan - Zooming in or panning (moving the camera from side to side) tend to be very hard on the eye. If a horizontal pan is important to your shot, move very slowly and keep the camera as still as possible.

Keep the camera steady - Whenever possible, use a tripod or set the camera on a desk or counter. If you must hold the camera, lean against a doorway or brace your elbows to keep movement to a minimum.

Fill the frame - Try to fill the entire frame with the subject. Online video tends to be shown at sizes that are much smaller than the average television, so for maximum impact, get as close as possible to the subject matter.

Keep it short - Videos with a duration of two minutes or less tend to have much higher viewership and completion rates and tend to be more impactful than videos with longer durations.

GETTING IT ON THE WEB

Once videos have been created, getting them onto a website is the next important step. Agents should avoid using consumer sites like YouTube that have poor quality and encourage visitors to leave a site by clicking away. Instead, take advantage of cost-effective professional solutions like Fliqz (www.fliqz.com) that allow site owners to easily upload, manage and integrate videos while providing a highquality user experience.

Uploading videos is as easy as uploading a photo. Simply browse to the video of choice, and click the ‘submit’ or ‘upload’ button. It will take a few moments for the video to upload, and then a delay of a few minutes while the video is encoded to Flash, a video standard that allows videos to be seen by all users, without downloading, regardless of platform (Mac or PC) or browser (Internet Explorer, Firefox, or Safari).

Once a video is available, including it in a site is simply a matter of cutting and pasting a short snippet of HTML, referred to as an embed code. Once pasted into a web page, this code will insert a video player which will, in turn, stream the video selected. Some solutions will also enable you to customize the look and feel of a video player, by selecting skins, adding watermarks, or uploading start or end screens to display before the video starts or after it has completed.

ATTRACTING TRAFFIC

Getting video onto a site is only the first part of a successful video strategy. Like any online marketing technique, there are three critical aspects to success: attracting traffic, maximizing engagement, and driving conversion. Following a few simple guidelines will help to ensure the maximum return on a video investment. The first goal sites should consider is traffic — attracting more buyers and sellers.

Video can be a powerful tool here, and offers two different possibilities for success: Search Engine Optimization (SEO) and viral propagation. SEO has historically meant tuning text and adding meta-data to improve the likelihood that a search engine’s crawler will create a high score for a given page, raising the site’s rank in natural search. Search engine results now also include thumbnails of videos that click through to the site hosting the video.

Since few videos have been indexed to date, a site with video which has been indexed by a search engine has a high likelihood of getting a prominent listing. Due to an inability to parse Flash tags, however, search engines are unsuccessful at indexing videos using their crawlers. As a result, the only videos that make it into the listings are videos that have been submitted via MRSS.

Therefore, any site including video in their mix should create an MRSS feed and submit it to Google, Yahoo!, and the other major search engines. Many video providers offer this as part of their services bundle. Another traffic strategy, viral propagation, provides the opportunity for sites to disseminate their message into other sites, blogs, wikis, and forums to which they would otherwise never gain access, thereby creating hundreds, and potentially thousands, of new marketing opportunities and new points of entry to their site.

To execute a viral strategy, your site gives visitors the ability to repost videos they like elsewhere on the web. This is accomplished by providing a snippet of HTML code to the visitor (called an embed code) which allows them to paste the snippet, and hence the video, into any other HTML page. Successful viral strategies can account for up to 15 percent of a site’s overall traffic and thus bear serious consideration as part of any web video strategy.

IMPORTANCE OF BRANDING

Keep in mind that branding is critical in any viral strategy. Getting your video onto other sites and blogs is only effective if it both promotes your brand and links back to your site or displays your playlist within the player. The best video solutions (again, Fliqz is a leading provider) give total control over the look and feel of your player, as well as its associated behavior, guaranteeing that the brand is front and center at all times.

Beyond creating increased traffic, the next goal should be to increase interactivity for more effective buyer experiences. A video on the home page will attract as much as 80 percent of the overall activity on that page. Buyers who experience a video walkthrough tend to be better qualified and more likely to act.

CHOOSING A VIDEO PROVIDER

There are number of things to consider when choosing a video provider. The primary consideration for many individuals will be cost. Consumer video sites offer free solutions, but these should be avoided unless there is no other alternative. The quality offered is often poor, your site won’t benefit from search engine traffic, and you’ll be driving traffic away from your destination and to the hosting site instead.

Compatibility is critical, so you’ll want to make sure your provider offers in-browser streaming, does not require the end user to download any software, and is compatible with all major browsers and operating systems. Typically, this means a Flash solution, although Microsoft’s Silverlight is emerging as a standard as well. You’ll also want a solution that allows you to centrally manage your video assets, and that tracks plays, shares, and other analytics so that you can see where you’re being effective in your video strategy.

Other features to consider include MRSS syndication, email sharing, and player branding and customization. Be sure to understand the number of uploads and streams included, and the amount of storage you’re allowed. Fliqz offers solutions for as little as $50 - $100 a month, and offers you a standard of quality and range of features that are well worth the spend.

FROM LOOKERS TO BUYERS

At the end of the day, the defining measurement is conversion, turning prospects into buyers. For real estate, this is where video really shines. Not only is video a more immersive and compelling form on content when selling the experience of a property, but it is far more effective in driving actual conversion. Real estate sites using video report that buyers exposed to video are up to four times more likely to act than those presented with words and images alone.

Online video tells a story far more compelling than words and photos. Given its low cost, ease of use, and widespread adoption, video is a powerful tool that is changing the way both buyers and agents are experiencing property. Decreasing cost and complexity, combined with widespread adoption by consumers means that this is a tool that should be in the arsenal of every real estate professional today.

From Lamb To Lion: Courageous Leadership For Tough Times

2009-04-08T04:19:00.000-07:00

In this challenging market, I’ve been working with companies to turn their bottom lines from “in the red” back to six figure profits. Because of my work, I’ve seen some oft-repeated patterns that are not only disturbing, they’re actually directly causing that red bottom line!

I think these fatal mistakes are caused by the managers’ lack of courage. I call these managers “lambs.” They are unwittingly letting themselves be lead to….. You know what I mean. This “lamb” management style may have worked in markets that drove success, but this style isn’t working now.

THREE FATAL MISTAKES “LAMBS” MAKE

1.) Keeping non-producers.
2.) Hiring with “wimpy” expectations (or none).
3.) Allowing gaps in “agent development.”

Mistake #1: Keeping Non-Producers

A few years ago, I started managing an office that was literally known as the “office where agents went who didn’t want to work.” What a great recruiting slogan! The previous manager had hired just anybody and kept just anybody. Your hiring and retention strategies absolutely create your image, and you can’t escape it. Oh, I know. They’re “all nice people” and “they’re trying.”

Sure they are. How do you know they are trying? You don’t. You just want to think that. Why are you keeping those non-producers? What do they do for you? What would a producer do for you? If you don’t want to be known as the same “recruiting slogan” I inherited, then stop retaining those non-producers and get the courage to terminate them.

You’ll never recruit producers with more than 10% non-producers hanging on and determining your image. Lack of courage: The non-producers are running your office. Courage: You are setting the standards as a “lion” leader. Part of your standard is to terminate those who aren’t contributing sufficiently to your business.

Mistake #2: Hiring With “Wimpy” Expectations

We all think we do a “mutual expectations” talk during the interview. Unfortunately, it’s too “wimpy” a conversation. Recently, a manager said to me, “I hire with expectations. I expect them to come to meetings and educational opportunities, and to be a “team player.” All right. Pretend you’re sitting in the candidate’s chair.

What did you hear was most important to the manager? What did you hear you have to do to be a “part” of that company? What do you think assures success? If you do the “wimpy” or lamb’s version of the mutual expectations, stop it right now! Do you want them to produce? Do you expect them to start your start-up plan in the first week?

Do you have a start-up plan? If you expect productivity and you have a plan to get the agent to productivity fast, say that! Build excitement for your plan for success, and ask for a firm commitment directly. Future good-to-great producers will jump at the chance to work with you. Non-committed, future poor producers need not apply.

When I give this presentation to management teams or associations, I include three specific critical mutual expectations dialogues, to model the behavior I need to change the paradigm from “lamb” selection processes to “lion” leadership processes. Lack of courage: Expect little and get wimpy or no agreement. Courage:Get agreement on the critical components for success.

Mistake #3: Allowing Gaps in “Agent Development”

I’ve stopped thinking in terms of selecting, training, and coaching. Instead, I think in terms of “agent development.” What’s your plan for developing that agent from the time of that selection interview, through orientation, through implementing the startup plan, through training? Where are your “gaps”?

One of the most common gaps is that time between orientation and training. The agent sits around and gets bad habits—sometimes for months until training starts. By that time, the agent is de-motivated—out of steam. Don’t let that first week go by without an implemented plan to get the agent into the stream of business— lead generating.

Lack of courage: Not putting that agent to work in the first week so he/she can have success. Courage: Starting that start-up plan and holding that agent accountable to his/her success (they expect it in 30 days, you know!)

DEVELOPING THE LION MENTALITY

Have you been acting like a “lamb” or a “lion”? Stepping up to courageous lion leadership will solve any and all of your recruiting and retention challenges. To make the “switch”: Get the needed “how to” systems to guide you, and hire the best management coach you can find, so you get support for your desired “lion” strategies. Start now.

Environmental Due Diligence – For Your Buyers

2009-04-08T03:48:00.000-07:00

Most everyone today knows that environmental problems pose health risks. That’s why issues found inside the home, like mold and lead-based paint, are routinely evaluated during home inspections. But did you know that pollution that originates elsewhere in the neighborhood, such as an oil spill from a leaking underground storage tank, can travel through the soil, groundwater or air and impact nearby homes as well?

Unsuspecting residents who live in close proximity to a polluter can feel the effects of residual contamination both in their well-being and in their wallet. Although high-profile cases regularly make headlines, homebuyers rarely screen potential neighborhoods for environmental risks. This is a mistake. Recent statistics show 551,368 identified leaking underground storage tanks nationwide, and more than 1,000,000 specific locations at which discharges of hazardous substances have been reported.

As a real estate agent competing in the current do-it-yourself Internet culture, you know that successful agents differentiate themselves by becoming a trusted resource on a variety of issues. Guiding buyers through a tailored due diligence process makes sense, and suggesting professional resources to help buyers screen for neighborhood environmental risks is one way you can help buyers make a sound investment.

HOW NEIGHBORHOOD POLLUTION AFFECTS HOMEOWNERS

Pollutants from current or former industrial activity, solvents from dry cleaning operations, oil from leaking underground storage tanks, and even chemicals from illegal drug manufacturing or “meth” houses can seep into soil and groundwater, where it can create unhealthy living conditions. Likewise, chemicals in the ground can travel through the soil as vapors and enter homes through foundation cracks and gaps around utility lines, negatively impacting indoor air quality.

Besides its negative impact on human health, contamination can drive down property values and stigmatize neighborhoods, especially if news of the pollution makes headlines. For obvious reasons, tainted properties are difficult, if not impossible, to sell. In extreme cases, homebuyers have even been held liable for cleanup costs, which can cost thousands of dollars.

LACK OF ROUTINE SCREENING

Commercial properties are routinely screened prior to purchase with a Phase I environmental site assessment. But there is no such provision in residential settings, and lender requirements for Phase I ESAs at home transactions don’t exist. “I sometimes see homes next to industrial properties and wonder who let that happen,” says Elizabeth Krol, an environmental professional with Shaw Environmental in Hopkinton, MA.

“And I once worked on an industrial property in New Jersey where a developer had built very expensive homes next to the site, just past the railroad tracks. The home owners later complained incessantly to the manufacturing facility regarding noise, odors and truck traffic. Didn’t they notice the train or the vent stacks
at the factory?” Understandably, the financial and emotional burden associated with residential contamination can be great.

Increasing pre-purchase environmental due diligence is a smart move, especially in a down market, when homes can become devalued. The effort pays off, because if a home is “clean,” the owner has peace of mind; and if it’s not, problems can be addressed up front. “Just looking at what’s in the neighborhood could save a lot of headaches down the road,” says Krol. “Buyers need to be aware of environmental issues at residential properties, and real estate agents can help drive that awareness.”

DUE DILIGENCE

In the case of potential environmental contamination, due diligence is key. A pre-purchase neighborhood environmental screen reduces the risk that an unsuspecting buyer will hold devalued property caused by previously unknown environmental concerns. While homeowners who discover pollution after the deal closes have little or no recourse, those who do so early in the deal have several options at their disposal.

For example, they can use the environmental issue as a bargaining tool to negotiate a lower price, evaluate available alternatives that would mitigate the impact of the pollution, such as connecting to a municipal water supply or installing a vapor intrusion mitigation system, or drop the home from consideration altogether. To protect themselves, potential homebuyers and their real estate agents should consider the potential for contamination when a home is located:

• On or near an existing or former industrial area;
• On or near a brownfield area;
• Near an existing gas station;
• Near an existing dry cleaner;
• On or near a well-developed, commercial main street, where there may have been former gas stations on the corners or former dry cleaners in nearby shopping centers;
• On a historic urban fill area — cities across the country, from New York and Boston to Los Angeles and Portland, have areas that were filled in with material containing naphthalene and polycyclic aromatic hydrocarbons, both known pollutants; and
• On or near a contaminated plume from a known release.

You can get a general feel for potential environmental problems by driving around the neighborhood looking for the presence of current or abandoned gas stations, dry cleaners, industries and the like, and noting their proximity to the home. Another way to determine whether environmental problems may impact the neighborhood is by calling the appropriate state agency, such as the Department of Environmental Protection, to ask about known problems in the area.

For example, if there is a sizable contaminant plume, that information is likely a matter of public record. Make the contact information for such local agencies available for your buyers, but let them do the investigating. Never assume responsibility for evaluating whether environmental conditions may be a problem.

Advise your buyers when you see warning signals, but let the decision as to whether
to test or how to test up to your buyers.You don’t need to take on that liability. For homes in newer developments, buyers can check with the developer, who should have performed environmental due diligence before acquiring and developing the property and will be able to provide relevant information.

PURCHASE AN ENVIRONMENTAL REPORT

Alternately, homebuyers can purchase a neighborhood environmental report — a quick and simple screen of reported environmental contamination within a specific radius around the home. These reports, which can be ordered through most home inspectors,
identify known environmental concerns such as leaking gas station tanks, landfills,
hazardous waste sites and other environmental problems that have been reported to federal, state, local or tribal agencies.

The reports are inexpensive (typically less than $100), can be prepared within a day or two, and are easily understandable by a layperson. Best ordered around the time of the home inspection to ensure that information is current and problems can be sufficiently addressed before purchase, the report should, at a minimum, contain a search of the following databases:

• Federal Superfund sites
• Proposed Superfund sites
• Leaking underground storage tanks
• Hazardous waste sites
• Landfills
• Illegal drug labs.

If the state Department of Environmental Protection (or its equivalent), the neighborhood environmental report or a drive-by investigation indicates that there might be contamination in the area, it’s a good idea to contact an environmental professional, who can help interpret the likelihood of an environmental condition at the home.

CONSUMERS WANT TO KNOW

Today’s homebuyer is more aware than ever of environmental issues and the problems they can pose to human health. Consumers pay more to eat organic foods, drive energy-efficient cars and otherwise live a “green” life, even in a slowing economy. It makes sense that they’ll want their home to be as safe as possible, too. As a real estate agent, you can offer added value by being able to offer some suggestions about available screening resources.

But be careful not to become part of the decision-making process. It is up to your buyer to have the testing done and to interpret the results. You need to stay out of the liability loop. Recommend testing. Provide lists of resources. But don’t get involved in deciding whether or not to have the property screened. That is totally up to the buyer.

If you suspect environmental problems and recommend testing and the buyer decides against it, it would be good to have your recommendations in writing and have the buyer sign a statement acknowledging them. That may cause the buyer to back away from the property. But that’s better than having the buyer push the sale through and then complain later that no one told them about the problem.

The Compassionate Edge

2009-04-08T03:42:00.000-07:00

Empathy: “Direct identification with, understanding of, and vicarious experience of another person’s situation, feelings and motives.” Does empathy help you grow your business? Upon first glance, it would appear that being able to relate to another person’s experience is a key strategic advantage. For a broker, it would seem to be a useful component in the arsenal of tools for recruiting, training and coaching of potential and existing agents.

Empathy has been touted as the most powerful ingredient for successfully helping others, particularly in servicebased professions. Here is the truth. Empathy is a drain. Vicariously living another person’s pain and suffering does nothing but create pain and suffering. Taking on someone else’s negative feelings about anything in order to relate to them more effectively has us delving into the depths of their despair right along side them and does nothing good for them and certainly does nothing good for us.

EMPATHY/COMPASSION

So how can we feel and understand what our agents are experiencing without taking
their suffering upon our shoulders? We can accompany them on their journey, validate their experience, share our common stories and circumstances and travel past their misery allowing them to move forward. The only thing that empathy does is to allow them to remain stuck. If we are to step into our preferred role as their mentor, guide, confidante and leader, then we must eliminate the idea of empathy and replace it with compassion.

Compassion: “Acceptance of another person’s circumstances while accessing a vision of them in a better state.” By definition, the biggest and most important distinction between empathy and compassion is viewing “them in a better state” and holding that vision clearly in mind.

The last thing that agents need is our empathy; they need to know we understand and care and that we have an unfailing belief in their ability to succeed, regardless of current circumstances.They need us to lead them, guide them and direct their energy toward achieving their goals and dreams.

PUT TO THE TEST

I’d like to share an amazing story about Maggie Mouscardy, a real estate agent in California and one of our coaching clients. Her story exemplifies the distinction between empathy and compassion. When we act from a place of compassion rather than from a place of empathy great things come our way; her story is a lesson for us all. She took in a homeless woman, and together they have given each other the gift of living each day with gratitude, hope and joy.

It was this spring, a couple of weeks before the Armory in Santa Ana, California, closed its doors to its Homeless program for the summer hiatus, that Maggie Mouscardy heard about the work they were doing and was moved to go out and help serve dinner. When she arrived at the Armory that first night something changed forever inside of Maggie. She was drawn to a young woman who was sitting on her
mat eating dinner.

Her name was Raquel, and there was just some quality about her that drew Maggie towards her, a goodness and sense of gratitude that made her stand out from all the others. Once they had met, Maggie heard a voice from within her say, “You can’t leave her.” Responding to the calling, Maggie reached out to Raquel offering to give her shelter in her home, and helping her find a job and a place to live.

Maggie says that she “never felt so sure of what she was doing in her life, feeling incredibly compassionate, warm and glowing inside.” Raquel had come from an abusive marriage that resulted in social services taking away her 9 month old daughter, and placing Maggie in a Psychiatric Institution. She has lived on the streets for the 3 years since her release.

The metamorphosis of Raquel has been amazing. Within a few weeks of living with Maggie, Raquel secured a job at a flower shop which also provided her with a room. She left a “tremendously beautiful” bouquet in her room for Maggie when she left. The story, although still happy, did not have a fairy tale ending. Within two weeks it turned out that the flower shop owner wanted more than flower arranging in exchange for her room, and Raquel left, returning to live with Maggie and is already engaged in another job.

GIVE AND TAKE

Maggie and Raquel have learned much from each other. Maggie had been experiencing a very difficult time in her life, feeling financially stretched with the real estate market conditions and emotionally drained as well. Since Raquel has come into her life, business has been coming her way. She feels as if God is rewarding her for her kindness, although she didn’t do it for reward.

When Maggie saw what life was like at the Armoury she was, “filled with gratitude and felt privileged that she could help feed the homeless.” And as for Raquel, she prayed that someone would come and help her. Maggie has encouraged Raquel to keep
her daughter in her heart, write her letters, and birthday cards and keep them all. “Life” she says, “has a funny way of bringing back to us what is really ours.”

Maggie gave Raquel the most incredible gift. Through Maggie’s compassion, Raquel was able to see herself differently, to step into her own shoes and, with self confidence and an inner strength walk independently. Isn’t this what we want our agents to do? What does help us grow our business? As brokers, when our actions are motivated from a place of compassion, we are able help agents to reach their goals and dreams and when we do that we are giving ourselves the most wonderful gift as well. “Life has a funny way of bringing back to us what is really ours.”

Ten Common Characteristics Of Successful Real Estate Professionals

2009-04-08T02:58:00.000-07:00

There is a TV show on CNBC called “The Big Idea” hosted by Donny Deutsch, a Madison Avenue marketing genius and a self-made millionaire. From time to time, Donny invites well known successful people from many walks of life to talk about how they achieved their lot in life. One night Donny Deutsch asked special guest Donald Trump about his views on the secrets to success in business.

To my surprise, Trump replied that not everyone can be successful in business, and some people just have to accept that. What? What do you mean not everyone can be successful? Trump was making a powerful statement and he had my attention. He went on to say that we (business leaders, managers, authors, speakers, coaches, and so forth) have done a disservice to the American businessperson. We have led people to believe that anyone can be successful in business. Anyone.

It’s simply not true, Trump explained. Not everyone can be successful. No matter how hard you work or how long you stick it out, some will simply be marginal, average at what they do, or won’t make it. Success in business takes more than attitude, passion and nose-to-the-grindstone work. The formula for success is more complex than that.

THERE IS A FORMULA

Trump is right. Success in business is reserved for a special group of individuals who are willing to do more and give more so that they can get more. It’s a fact of life, and it is a fact about real estate salespeople as well. So why do some real estate salespeople rise to the top while others sink to the bottom or bob somewhere inbetween? Success isn’t simple.

There is far more than one thing it takes to be highly successful in this business. Success is a formula, a recipe. It’s complex. If it were not, everyone would be successful and there would be no such thing as a “top performer.”

COMMON CHARACTERISTICS

Let me identify ten common characteristics of successful salespeople in the real estate business. Spend a day or a week with a top producer and you’ll see these traits and characteristics evident. Spend some time with an agent doing poorly or struggling, and you will see the same things lacking.

1.) Top performers are in it for the long run. Unlike other real estate salespeople who are trying the business on for size and waiting to see if it fits, or are using their current occupation as a job gap until they find something else, top performers are committed to their career in real estate until retirement. This longterm focus and obligation means they will invest more in their careers every day than others are willing to invest. That’s why they succeed at the level that they do. They are in it for life.

2.) Top performers take risks. They are willing to try new things, experiment, change habits and go after big targets. Although they may fail at these endeavors as much as anyone else, because they are continually taking risks and trying new things, they succeed more as well. This risk-taking mindset moves their business forward and creates listings and sales others will never have. That’s why you’ll see top performers run ads and sponsor events. That’s why you’ll see top performers working with the best clients and properties in town. They take the risk, they go after the big opportunities, and that’s how they get them.

3.) Top performers invest in their businesses. Top performers are okay with spending some of their own money to do things. They purchase gifts for their clients and partners. They buy books and training CDs to learn new things. They pay to attend seminars and subscribe to industry magazines and Internet services. They spend thousands of dollars each year to market to their lead sources and databases. This is their business, and they know that they must spend a little money to make a lot more.

4.) Top performers align with top clients. They know it is hard, if not impossible, to become a success in this business if you don’t work with successful people. That’s why they are picky about the clients and partners they align with. They want to be the best; and to be the best, you have to have the best vendors and customers. Many real estate agents are content to work with just about anybody that will talk to them. They saddle themselves with lesser caliber, low quality prospects and partners. In the business of selling, your clients and partners are your business. Top performers get that. It’s a people business, and to be the best you must work with the best people.

5.) Top performers have systems that work. How do top producers generate so much business? It’s because they have built ironclad systems, procedures and checkpoints that can run a high volume of sales and listings through the process with amazing accuracy. They have client management systems, follow up systems, status review systems, marketing systems and systems to measure and track their leads, loans and sources of referrals.

6.) Top performers are stingy with their time. They know that their time is worth money; a lot of money! Top performers are particular about what they do with their time every day and invest the bulk of their time in activities and clients that are likely to have the highest payoff. They delegate. They stay busy. They get stuff done. Many average performers who aspire to be top performers will never reach the level of success they want because of their inability or unwillingness to manage their time properly. They spend too much time with marginal opportunities, too much time doing administrative tasks, and too much time hanging around the office waiting for the phone to ring or for something good to just “happen.”

7.) Top performers are in control. Unlike some real estate salespeople that let others tell them what to do, where to be and how to behave, top performers are their own masters. They make the call. They decide their schedule and agenda for the day. They choose whom to work with and how. This level of focus and personal control not only makes them extremely productive, it also sends the signal to others that they are confident professionals in control of their businesses and their lives. Watch a top performer move through her day. No jumping around, no emergency fire-fighting, no flying off the handle. She’s in control. She has a plan for the day, it is written down, and it is followed. Period.

8.) Top performers know their profession. Because they are willing to invest time in learning new things, reading industry periodicals, reviewing market changes and sharing ideas with others, top performing real estate salespeople build a knowledge base that allows them to sell from a level of expertise few others have. They know their market, what’s happening in the industry and what economic changes are coming down the road. Clients see this advantage, and gravitate toward working with these people because they trust their knowledge and confidence to help them find the right solutions to their needs.

9.) Top performers like to sell. While many real estate salespeople shy away from various sales activities, top performers actually enjoy selling. They enjoy the client conversations, conducting home-buyer seminars, delivering listing presentations and meeting new prospects. They don’t like sitting in meetings or spending a lot of time on conference calls. They do not enjoy hanging around the office talking about sports, movies or somebody’s kid’s problems. Frankly, they’d rather be out meeting people, making contacts and writing contracts. That’s what they enjoy because that is what they do best. When you spend a lot of time doing what you like to be doing, and getting paid well for it, it ceases to become “work.”

10.) Top performers are “can-do” people. Some real estate salespeople are making excuses instead of making results. They have all sorts of reasons why something can’t be done. “I can’t sell that house because the price is too high,” they say. “I can’t get to work on time because of the traffic. I can’t make more sales calls because I have e-mails to read.” This is how can’t do people work. Top performers, by contrast, are can-do people. This is reflected in their initiative, their approach to problem solving and their openness to new ideas. They look for ways to make things happen, not excuses why things aren’t happening. This allows them to change, grow, adapt and out-perform the competition and their peers month after month and year after year.

IN SUMMARY

We need to dispel the myths about selling that exist today. We must realize that success is special — a special thing for special people willing to do more and give more in order to get more of what they want. Perhaps, as Donald Trump says, not everyone can be successful in business. But that means that some can be successful — incredibly successful. Maybe that includes you. Maybe you are at a place in your life and career where you are fed up with “average” performance. Perhaps you are ready to push past complacency and are prepared to step up to the opportunity to become a top performer.

Helping Parents Investigate Schools While Shopping For A New Home

2009-04-08T02:43:00.000-07:00

As a real estate agent, you’re probably bombarded with questions about the performance of schools in the neighborhoods where you sell homes. Parents naturally want to make sure they are choosing the right school for their child. Fortunately, you can help potential homebuyers take the burden out of this daunting, pressure-filled task. Good resources are available online, and many are free.

SchoolMatters.com , an online database of public schools, is a website where real estate agents and parents can easily find pertinent school information. Below are the ABCs of school research. These helpful hints can help your clients make an informed decision.

A IS FOR ACHIEVEMENT

The first thing to research is how well students in a school perform. Every state has its own assessment, and scores can be found online. When looking at school performance, parents should look closely at the numbers. For example, are lowincome students performing as well as other students? Are minority students performing as well? What about those learning to speak English?

The best schools are able to provide all students a great education. Test data is often available in various formats. At SchoolMatters.com, scores are broken down into three categories.

1.) The first is key data. It gives parents a quick snapshot of scores by showing the percentage of students schoolwide who are meeting reading and math proficiency as determined by state assessments.

2.) The second category breaks down those scores by student groups: male versus female, ethnicities, and income levels.

3.) The third category shows test data by grade level and over time. This helps parents see growth or declines that may impact their decision of where to send their child to school.

B IS FOR BALANCE

Because school is about more than learning to read and write, it’s important to review elements of a school outside of the classroom. For instance, what extracurricular activities does the school offer? Does the child excel in chess, but the school doesn’t offer a club? What if the student is a star athlete and the school doesn’t offer sports, or requires parents to pay for participation?

A good way to find out about a school is by reading what other parents have to say about it. At SchoolMatters.com, parents can rate their child’s school as well as write in-depth reviews. This resource allows parents new to the community to learn from those who have actually experienced time in the school. And, it’s an opportunity for parents to share their own experiences with others.

For example, one Nashville parent of a 5th grade student reported, “Although we were concerned with our son attending a public school in such a large city, I think it has turned out to be a positive experience. The school administration seems to be positively influenced and sincere in their hopes and dreams for their student body. The school offers advanced classes even in the 5th grade, so I’m grateful for that.

Our son is very competitive (at everything) so being surrounded with advanced students certainly helps him.” This type of open and honest feedback is the best endorsement a parent can hope to find. The classroom environment is also one of the most important qualities in a good school, which means it’s always wise for parents to visit a school before making a final decision.

Most schools generally welcome prospective family visits. Parents should call the school, make an appointment with the principal and see first-hand how students, teachers and administrators interact. A better understanding of all activities and services a school has to offer will ensure the child receives a well balanced education that takes care of not only his or her mind, but also body and spirit.

C IS FOR COMPARISON

Another step in choosing the best school for children is to make schoolto- school comparisons. Here’s an example. Let’s say you wanted to review two local high schools. Using the compare function on SchoolMatters.com, you could see a side-by-side comparison. Make sure to probe top choices by clicking on school links to see parent reviews, extracurricular activities, district finances, and even direct links to the school website.

Parents can also take advantage of the district’s opportunities like open enrollment and school vouchers. By understanding the differences between schools, parents are able to pick the one that feels right for their child. And, they’ll appreciate the extra effort you made in helping them through their decision.

The Mortgage As A Wealth-Building Tool

2009-04-08T02:37:00.000-07:00

While the media is focusing on the negative aspects of today’s real estate marketplace, and particularly the mounting problems with foreclosures, we as real estate professionals need to keep our focus on the positive side: the ability to create wealth through real estate. Despite what you may be hearing, home ownership is still the best vehicle that the average person has to create wealth.

IMPACT OF THE MORTGAGE

Most people know that the definition of the “American Dream” is homeownership. However, few stop to think about the impact their mortgage has on their ability to create wealth. The vast majority of homeowners have no clue how their goal for financial independence is directly affected by the type of mortgage they choose. Current market conditions bear testimony to this fact.

If more real estate professionals and borrowers had taken the time to understand financing and the impact it could have on the borrower’s financial goals we may not have as many foreclosures. Keep in mind that this is not to place the blame for foreclosures on real estate professionals and their buyers. Economic conditions and the huge job layoffs have also had a big impact on the current foreclosure situation.

However, a better understanding of how to use a mortgage to create wealth and to make sure you have access to your equity when you need it can be a great defense against foreclosure. Unfortunately, real estate agents have long been cautioned to “leave the financing to the lender.” We are told that financing is not our job, we are to simply list and sell real estate and keep our nose out of the financing.

Financing the homes we sell is none of our business and the client does not want us to know their financial information anyway. To top it all off we are told that it is a “conflict of interest” and “too much of a liability” for the real estate professional to understand financing. Hmmm, do you think this has anything to do with the fact that it is easier for the lender to overcharge and take advantage of a borrower if the real estate professional is not in a position to understand the process and protect their client?

The good news is that there is a trend for real estate and mortgage professionals to look beyond a quick closing and take the time to provide finance counseling to consumers. As a matter of fact, there is even a designation program, the Residential Finance Specialist (RFS), that’s focused on providing both real estate and mortgage professionals the knowledge and tools they need to provide finance counseling to consumers and to protect them from predatory business practices.

MORTGAGE PLANNING

Just as there is “retirement planning” and “estate planning,” many are now referring to finance counseling as “mortgage planning.” Rather than viewing a mortgage simply as a debt, mortgage planning offers a wealth-building perspective that positions the home and its mortgage into the borrower’s financial planso their equity is safe, accessible and productive. Mortgage planning focuses on using the mortgage as a leverage to create wealth, both on a short-term and a longterm basis.

The premise is to use the equity in the home wisely and invest it, preferably with the help of a professional money manager. Did you know, by the way, that 82 percent of the millionaires in the United States have built their fortune through real estate? Most people usually focus on the sales price, rates and fees and fail to consider the impact real estate and mortgages have on the bigger-picture issues like the borrower’s overall financial goals, asset-producing investments, retirement, planning for college and overall savings.

Real estate and mortgage professionals who will take the time to learn how to provide finance counseling that educates a consumer on the impact the mortgage has on their ability to create wealth will have a considerable edge over their competition.

IT TAKES TEAMWORK

The key to providing these services to consumers is to build a power team that will help educate you and your clients on all the aspects involved in buying and selling real estate. This includes the financial impact real estate and mortgages have on building wealth. Your role as the leader of the team is to hold the team accountable for working in the best interest of your clients.

That means you have to be knowledgeable about each role your team plays and be able to identify predatory business practices so that you and your clients do not become victims. We’ve all heard the slogan, “When banks compete, you win.” I’d like to suggest a bit of a twist on that, “When concerned professionals cooperate, everyone wins.” If everyone involved in the real estate transaction is committed to high standards of excellence, the American Dream will not turn into a nightmare.

Bridging The Gap Between The Builder And The Sales Agent

2009-04-08T02:26:00.000-07:00

Although there are many different profiles of homebuilders, for the purpose of this article we will consider two major sub-categories or classifications: national/regional homebuilders and local “spec” builders. These two categories have been selected since these builders own the land and the home as opposed to custom builders or builders for hire who are selling a service, homes built on your lot.

1.) Large Homebuilders - The large national or even regional homebuilders tend to have in-house sales teams made up of paid employees whose only focus is selling the homes within that specific builder’s projects. Real estate agents tend to interact with these builders only on the buyer’s side (not including large land parcel specialists), and this interaction is usually limited to bringing potential buyers and registering them into the sales process. Many of these builders do not allow their own sales staff to sell anything but their own product so there is no real competition with the independent retail agent.

2.) Local Homebuilders - The next category of builder is the local builder who builds homes on their own lots (often referred to as spec building). This type of builder will often use a real estate agent on the listing side. The majority of the problems that crop up in dealing with this category come from competing interests and a lack of communication or understanding of each other’s business.

One common complaint of real estate agents is that builders expect a very low commission structure due to their perception that they are giving the agents listing volume. This presents a challenge for the agents, as their commission structure is already based on doing a volume of business. The simple fact of multiple listings with one party does not significantly reduce the broker’s or agent’s operating
costs and overhead.

This problem is compounded if the volume that the builder is providing is scattered across multiple sites. In that case, the actual economy of scale is suspect, at best. You need to help builders understand that.

TWO VIEWPOINTS

Communications between real estate agents and builders can be somewhat difficult, as each has a different perspective. Agents often have a hard time negotiating with builders on behalf of their own buyers as they become the voice that is suggesting a lower return on the builder’s investment. Experienced agents
can often lead the builder to see that an offer is simply what a particular buyer is offering to pay; it may be a negotiating ploy but not an indication of true value.

As builders, we often hear agents say “this is what it is worth.” But with the large sums of money we have invested, and the enormous risk involved, this can be hard to accept. It is important to understand that the causes of builders’ perception of the value of their homes are complicated and multiple. Basically builders tend to overvalue items that are not often seen by buyers (ie: better quality lumber or shingles) and they often surround themselves with “yes men.”

If they are not getting insightful and good guidance when they enter a project, and their pricing is not in tune with the marketplace, the real estate agent has to overcome these factors when presenting an offer. As a builder, I am most placated by low offers when the agent attempts to maintain impartiality and can present comps to support the offer.

That’s when we have the best chance to negotiate a successful outcome since there is a basis for discussion. Perhaps a comp that was considered is invalid, or perhaps I reached too high on price and now see the offer is closer to being reasonable. After all, if I push for a higher price it may not reach that point with the appraisal. No point in getting a contract at a high number if it can’t appraise out.

LEARN THE BUSINESS

One of the most effective ways for sales agents to convert builders into easier clients and cooperative partners is by learning about the particulars of the new home market—both the sales side and the actual construction basics. Many trade associations and community colleges offer basic introductory courses that will help real estate brokers and agents with these goals.

This knowledge will also help real estate professionals show potential buyers that they are well informed. Builders often discuss in private a perceived lack of knowledge about construction in many markets. This can create unrealistic expectations that the builder must overcome during walk-throughs and in the warranty period. Education will help the sales agent build a closer and stronger relationship with the builder community.

COMMON MISPERCEPTIONS

One of the most fundamental challenges that real estate brokers and agents must overcome to gain the cooperation of builders is the way that builders perceive them. One of the most common misperceptions by builders is that the agents have no risk. Because homebuilding is so capitalintensive, many builders do not recognize that other businesses are fraught with comparable risk. For example, even the newest agent knows the amount of work and money that goes into marketing and touring with potential buyers.

All of this is done without any guarantee of making a sale. Furthermore the listing could expire without a sale, in which case that advertising investment and open house time is totally lost. Builders don’t have to worry about that—they cannot lose the listing! Of course they have other concerns, but their perception of the real estate agent as having nothing at risk must be recognized and overcome. A direct attack on this perception may be difficult, but the best chance for success comes from a two pronged approach.

First professionalism is key. If your dress and knowledge is consistently top notch,
builders—and prospective buyers—will respect you as a person of authority. The proper attire for new home sales does not necessarily mean fancy clothes and expensive shoes but rather whatever is appropriate. Jeans should be avoided at
all cost, but always have some boots or sturdy shoes available.

Builders perceive agents who are not dressed for jobsites as unqualified for new home sales. The second strategy involves simply being aware of the builders’ misperceptions about agents. This awareness can be used to help establish better communications and avoid major pitfalls. If you are aware of the builder’s negative perceptions and preconceived notions you will be more likely to create a positive perception of yourself.

A young agent who had a listing for one of our homes had done a great job finding a buyer and helping us to get them into contract. The buyer asked me to meet them to allow their painter access to provide an estimate for work that would be done after closing. When I arrived at the home I found it unlocked! I knew that the sales agent had shown it to another party the night before. When I called her, I said I was quite upset that she had failed to lock the door.

She naively said, “Pete, relax! It’s not like there is anything of value there. The house is unoccupied.” As you can imagine, this did not create a positive impression upon me. It occurred to me that she was so used to resales what she was unable to perceive the amount of money we had spent nor the risk of losing the deal if the house was significantly vandalized.

While I understand what she was getting at — there are no personal valuables that can be easily removed — for a builder, a finished home ready to close with a buyer is a major value!

WHAT WE WANT TO HEAR

Now that you understand the misperceptions that builders hold and some of the common pitfalls in dealing with builders, let me tell you what is important to builders as a group. We don’t want to hear a long-winded pitch on your marketing plan. You should definitely have one, but boil it down to a succinct summary. Bullet points are often a good format. We want to be assured that you really understand the new home market and current local sales conditions.

Your years of experience is also important, as is your commitment to learning about the individual builder and their offerings. We also want to be assured that either you will be handling the showings yourself or that you will be assisted by someone you supervise and control, and that they are equally knowledgeable. Never forget that working in an environment that is filled with aggressive, assertive males, builders often respect people with concrete ideas and who can articulate those ideas clearly and succinctly. We are equally impressed with consistent follow-through.

What Went Around Then Has Stayed Around Today

2009-04-08T01:56:00.000-07:00

My first by-lined article in this publication appeared exactly twenty years ago this month, at which point in time I had devoted twothirds of my then 62 years on the planet to a career in real estate. This odyssey was first as a salesman, then as a broker, trainer, writer, course designer, entrepreneur, corporate executive, globe-trotting professional speaker and, finally, an enthusiastic participant in the active retirement which continues to this very moment.

A couple of years prior to my debut in The REAL ESTATE PROFESSIONAL “Columny,” its then-and-now Editor/Publisher, Ed DesRoches, biographed my first four decades in the field, with emphasis on the progress of The Klock Company, Realtors®, from (as he aptly put it) “the brink to the bank.” I was, at the time, a battle-scarred survivor of rookie jitters, dumb decisions, bad breaks, inflations, deflations, stagflations, financing crises and the hardships of “kinetic solvency,” the scary science of staying barely beyond wolfbite when “things” got tough.

Ed’s profile, a generous five-page spread, had a happy ending, with the acquisition of the company by Coldwell Banker, then a subsidiary of Sears, and my gradual retreat from active management responsibilities. That trek has led me to my personal variation of existentialism (“I write, therefore I am”), which is where you find me today.

CRITERIA FOR SUCCESS

This column, however, is not about me or my past life. Rather, its focus is on a sidebar in that 1986 article, listing my “Criteria For Success,” which are presented here exactly as written then:

1.) Everything else must rank as a poor second in importance to the reputations of the company and the individuals in it.

2.) The company must never be a “body shop” or a repository for parttime dabblers.

3.) Education must begin on “day one” and never end, for both newcomers and veterans.

4.) There must always be room for personal growth and self-betterment.

5.) Full recognition must be given for individual and group accomplishments.

6.) Compensation must have built-in incentives to reward superior achievement.

7.) There must be no “special deals”; policies and pay scales must apply equally from the president to the newest trainee.

8.) Scrupulous fairness in dealings among all members of the staff must prevail, without exception.

9.) Extensive feedback from the field (ideally through some advisory council vehicle).

Elsewhere, the article recounted our company’s birth pains in 1974, which we euphemistically described as “just about the worst boom year on the record” in Florida. We quickly concluded and subsequently proved that it was (still is, incidentally) a lot less expensive and a lot more effective to train new people from the ground up than to hire away from the competition seasoned practitioners who had grown accustomed to easy pickings in earlier years.

Also, we learned, out of stark necessity, how to cut expenses to (and into, if need be) the bone and to prepare budgets for both the best and worst case scenarios — this last strategy enabling us to both survive a brutal downturn and capitalize on the rebound that eventually followed. As a matter of frightening fact, our “doomsday deficit” projections came within a pittance of reality before the financial tide turned in our favor and we began a welcome sprint, as aforementioned from the brink to the bank.

Ultimately, it proved to be a steady pathway from the gut-wrenching grip of an economic downturn to domination in a highly competitive market. The point to be made here is not that I am some sort of oracle or that I became, as one friendly wag once put it, “a legend in my own mind.”

CERTAIN ABIDING TRUTHS

It is to observe that, while there have been both evolutionary and revolutionary changes in our industry during my lifetime, there are certain abiding truths which stand the test of time and can be, as herein, restated verbatim a generation and more after they are first cited. Among them are the “Criteria For Success” noted above and the lessons we learned during, before and after that “disappointing boom” in the mid-seventies.

All of them, with some necessary massaging, can be applied to today’s conditions, tending to support the notion that what goes around comes around and what went around often comes back to stay. A suggestion from the sidelines: Reread this opusette and apply whatever you can to the situation in which you find yourself today— either as a leader or as a follower — then do what you can to make “things” break your way.

This final thought: You and your people can’t do better than they know how, so don’t skimp on training when you’re trimming the expense budget; it’s the goose that will lay the golden eggs of your future. As a familiar saying reminds us, “The more things change, the more they stay the same.”

The Perils Of Looking Toward The Future

2009-04-08T01:47:00.000-07:00

I write for a hundred and some odd newspapers and as a result get a ton of questions from both consumers and brokers. Among the most popular inquiries are queries which go something like this: “So tell me, when will the market begin to go up, when will home prices stop falling and is now the time to buy.” I would dearly love to answer such questions with great specificity but there are two problems.

First, I have no idea where markets are headed. Second, neither does anyone else. The first point should be fairly obvious. Honest, I have no clue. I can’t tell you the future prices of homes on my block, much less the value of homes anywhere else. But the second point is not so clear.

Wall Street, for example, repeatedly tells us that past performance does not guarantee future results — and then proceeds to issue forecast after forecast explaining in great detail why one stock or another will reach a specific price by a specific date. Surely if there can be no guarantee of future results, then making financial decisions on the basis of forecasts from analysts hardly seems like a strategy to be encouraged. Just ask all those happy Enron investors.

NO GUARANTEES

Alas, crystal ball gazing is not confined to Wall Street. In real estate we also have our share of prognostications. In 2005, for example, when the real estate market was booming, the chief economists from Fannie Mae, Freddie Mac, the National Association of Realtors ®, the National Association of Home Builders and the Independent Community Bankers of America jointly wrote a study which said “home price appreciation should average around 5 percent per year from 2004- 2013, but could be above 6 percent if supply constraints continue to tighten.”

(See: “America’s Home Forecast: The Next Decade for Housing and Mortgage Finance”) How come? Our five economic insiders explained that “a stable relationship between income and house prices over time argues against any nationwide “housing bubble.” With the national unemployment rate below 6 percent (and falling), extremely low mortgage rates and economic growth accelerating, the likelihood of a decline in home prices at the national level is quite remote.

Even at a local level, demand-supply conditions today are such that there are few, if any, markets that exhibit bubble characteristics.”

THE THINKERS SPEAK

The 2005 paper follows a long tradition of eminent thinkers with an interest in housing trends. In 1988, for example, economists N. Gregory Mankiw and David N. Weil said “it appears that the real price of housing will fall about 3 percent a year.” (See: “The Baby Boom, The Baby Bust, and the Housing Market”) “The entry of the Baby Boom generation into its house-buying years,” said our two economists, “is found to be the major cause of the increase in real housing prices in the 1970s.

Since the Baby Bust generation is now entering its house-buying years, housing demand will grow more slowly in the l990s than in any time in the past forty years. If the historical relation between housing demand and housing prices continues into the future, real housing prices will fall substantially over the next two decades.” Dr. Mankiw, of course, went on to become chairman of the Council of Economic Advisers under President Bush in 2003.

PREDICTIONS ABOUND

When it comes to real estate predictions it would be difficult to beat 2007. A truly vintage year, we had the chairman of the Federal Reserve, Ben Bernanke, informing us in May that “given the fundamental factors in place that should support the demand for housing, we believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system,”.

Not to be outdone, the then-chairman of the Mortgage Bankers Association, John Robbins, told the National Press Club that worries about the mortgage meltdown were plainly off base: “As we can clearly see, this is not a macroeconomic event. No seismic financial occurrence is about to overwhelm the U.S. economy.” Not all predictions, of course, have elicited much public attention.

In 2005 the Financial Accounting Standards Board (FASB) looked at the toxic mortgages then being popularized and modestly pointed out that the huge payment increases associated with option ARMs, negative amortizing, deferred interest and interest-only loans “could affect a borrower’s ability to repay the loan and lead to increased defaults and losses.” (See: FASB Staff Position Paper, SOP 94-6-1)

NO-ONE’S LISTENING

Alas, as my father — a CPA until almost age 90 — could have explained, no one listens to accountants when revenues are rising. So, if you really want to know where home values are headed and when the present market will turn, don’t ask me. I don’t have a clue — and I’m not alone.

EcoBroker® Provides New Standard Of Care For Real Estate Community

2009-04-08T01:34:00.000-07:00

With the real estate market facing challenging economic times, real estate professionals are looking to gain a well-deserved competitive edge in the marketplace. The key to gaining this advantage is providing unmatched customer service that sets you apart from the rest of the brokerage community.

EcoBroker International trains its Realtor® membership to do just that, by teaching them how to provide a new standard of care for real estate consumers and investors. Through an innovative curriculum centered on lowering energy costs, creating cleaner water and improving air quality, EcoBroker is making the real estate professional an invaluable resource to his/her clients by helping improve overall quality of life.

THE LANGUAGE OF GREEN

EcoBroker training is truly comprehensive. Unlike introductory programs, EcoBroker provides a three-day set of classes that teaches the fundamental language of green. Moreover, Eco-Broker provides impeccable coaching and on-going communication and education to its membership on a monthly basis through e-newsletters, continuing education classes, membership services, and annual conferences that discuss the hottest topics in the green real estate industry.

EcoBroker is the first and largest provider of green training for real estate professionals. Through Eco- Broker’s unique energy and environmental designation curriculum, which emphasizes everything from energy efficiency to solar energy to indoor air quality and green financing, real estate professionals acquire the knowledge and resources to become EcoBroker Certified®, assisting real estate consumers and communities in their pursuit of green properties that provide more affordability, better comfort and healthier environments.

BUILDING A BRIDGE

As Realtors® and green building scientists, we founded EcoBroker in 2002 to meet the demand we saw in the real estate industry for green education and to build a resource-oriented bridge between the real estate industry and the blossoming green buildings industry. There simply wasn’t anything that taught real estate agents how to address the new energy and environmental features that are found in 5 to 10 percent of all new homes or to help consumers incorporate green features into existing homes.

According to the National Association of Realtors®, 46 percent of American homeowners claim they would be eager to incorporate green principles into their homes (NAR, 2007). Real estate professionals recognize the quality service and benefit they can provide by helping consumers incorporate money-saving green features
into homes, and communicate their benefits when selling a home.

Since its inception in 2002, EcoBroker has grown substantially. To date, EcoBroker has over 3750 members in 47 states, five Canadian provinces, the Caribbean, and New Zealand. And the numbers grow every day, as Realtors® look for genuine training to create genuine competitive advantages.

GREEN DESIGNATION

“I achieved my EcoBroker designation because I have always been greenminded and wanted to educate and help others become more eco-friendly,” said Christopher Welch of Keller Williams Front Range Properties LLC in Boulder, CO. And Chris is but one of now thousands of examples of Realtors® providing that additional standard of care to buyers and sellers.

EcoBroker is not only the first and largest provider of green training but also the most trusted by the consumer and brokerage communities. The EcoBroker designation offers agents a competitive advantage. When building their client base, our membership finds more and more consumers are looking for real estate professionals with green expertise when buying, selling or retrofitting a home.

In a recent membership survey (with an amazing 35 percent response rate), 20 percent of EcoBroker respondents reported working with a client to complete a major cost effective retrofit that helped them significantly reduce their energy bills. Moreover, nearly 100 percent of respondents indicated they had encouraged their clients to undertake similar projects or smaller green upgrades as well.

These projects spanned across all regions of the U.S. and beyond, and benefited consumers in virtually every demographic. “I can attribute nearly half of my business directly to referrals based on just my EcoBroker and E-Pro designations,”
said Diane Sherry, EcoBroker with RE/MAX Alliance in Fort Collins, Colorado.

We love these kinds of stories, and we know that Diane is really helping people (making everything we do for the membership worth every bit).

GREEN BUSINESS PRACTICES

With national surveys indicating that 80 percent of consumers consider themselves “green-minded,” green business practices are becoming more common in all industries. A trend toward green building practices has emerged to mitigate the environmental impact of home building and remodeling and address consumer and investor demand.

Green building techniques are increasingly more a part of the standard practices. Builders are finding that utilizing green building and remodeling techniques reduce
call backs, improve customer satisfaction, and enhance overall profitability. According to GreenBiz.com, the market for green homes is expected to rise from $2 billion to $20 billion over the next ten years (GreenBiz.com,2007).

With this growth comes misinformation and the need for education. EcoBroker fills this niche in the green real estate space by offering licensed real estate professionals the only comprehensive green educational curriculum available, with a healthy dose of the need for proper representation and caution about greenwash.

CURRICULUM REQUIREMENTS

In order to earn the EcoBroker Designation®, licensed real estate professionals must fulfill a straight-forward set of requirements that center on an energy, environmental, and marketing training program. They actually have homework, take tests, and update their training each year. The curriculum is $395, and includes three day-long interactive classes complete with quizzes, homework, activities, and a final exam.

Unlike other programs, every EcoBroker member is required to renew their certification on an annual basis through the program’s four-hour annual update course. The curriculum is designed to help real estate professionals address a variety of topics that impact the environment and consumer life, including: green home certification programs such as Energy Star® Qualified Homes, energy- efficiency, environmentally sensitive design, health issues in properties, mold, radon, and indoor air quality.

Affordability is also of key concern, and we provide real estate professionals information to help improve the efficiency and comfort of homes. When our members’ work then leads to cost savings on utility bills, consumers in all real estate price-points win and so does the environment. For the real estate professional looking to improve his/her overall standard of care, the EcoBroker designation is an ideal way to provide invaluable professionalism.

Be Careful Out There

2009-04-08T01:23:00.000-07:00

Tragic events in recent months serve as stark reminders of the importance of agent safety. In British Columbia in February, a 24-year-old female agent was found dead in a vacant home after apparently being lured there by a mysterious caller earlier in the day. No arrests have been made.

Just six weeks later, in Wisconsin, a 71-year-old agent — a mother of six and grandmother of 16 — was also killed at an empty listing. An ex-convict, who called for a hasty showing after seeing the agent’s number on a for-sale sign, was arrested and charged with her murder. Unfortunately, these extremely sad stories of violence are just two of many in our industry. We must learn from them.

STAYING SAFE

Real estate is a high-risk profession. Every day, agents are placed in unfamiliar locations or unoccupied properties, often alone with clients. But by honing their instincts, watching for warning signs and understanding how to avoid or disarm potentially harmful situations, agents can greatly improve their odds of staying safe.

In 2003, my network developed the RE/MAX Safety Awareness for Every Realtor® (S.A.F.E.R.) program in the hopes of helping them do that. We conducted seminars, created print and online tools, and added safety programming to our satellite TV network. Our agents embraced the concept, and the material remains as relevant as ever. A sampling of tips:

• Have new clients meet you at the
office. In your initial conversations,
explain that safety, both yours and
theirs, is a major consideration during
the process.

• Photocopy their driver’s licenses
and write down vehicle information. Add
this to their client file. And introduce
them to others in the office so that you’re
not the only one who’s met them.

• Give someone your client files and
schedule for the day, outlining where you
will be at what time. Check in regularly.

• Develop code words that would let
someone at the office know you’re in
trouble.

• Drive yourself to showings — don’t
ride in your clients’ car. Have them follow
you if they can’t ride in yours.

• At showings, find out where the
exits are. And unless you know the clients
well, don’t go into bedrooms or
the basement with them. It’s much better
to stand at the stairs or in the hallway.

• If possible, put the home’s garagedoor
opener in your pocket. If you feel
threatened or in danger, discreetly open
the garage and say the owners must be
returning.

• Note the location of phones throughout
the house. If something goes wrong,
use a house phone — rather than your
cell phone — to call 911. But have 911
programmed in your cell phone’s speed
dial, just in case.

• At open houses, put kitchen knives
and other potential weapons away before
allowing people inside. Ask guests to
sign in, and watch for any reluctance to
do so. If possible, work open houses
with an assistant or another agent.

FRONT-LINE ADVICE

Here are a few more tips shared by agents themselves via RE/MAX Mainstreet, our members-only extranet:

• “Your car keys might be your best
protection when confronted with a dangerous
situation. Keep them in your hand
at all times while showing properties. If
you feel like you’re in danger, push the
panic button, setting off your car alarm.”

• “Leave your list of showings with
your front desk, another colleague and
at home with your family.”

• “I never park my car in the driveway,
because that allows the client to park
behind me, blocking a quick escape.”

• “I hold open houses almost every weekend.
My boyfriend goes with me every time and
stands around or plays on his laptop.
Safety never becomes an issue, because as
soon as someone walks in the door, I point
over and say, ‘Please don’t mind him, he’s
just my security guard!’”

BE AWARE

There’s a wealth of safety material out there. Agents can find all sorts of articles, tips and advice at the realtor.org Web site. The National Association of Realtors®’ Field Guide to Realtor®Safety, for example, is worthy reading for any practitioner. A common theme flows through almost everything I’ve seen: Be aware of your surroundings and situation at all times, and work in a way that keeps you in control.

Thus, when you’re showing a home, let your clients enter rooms ahead of you. When you’re previewing a vacant property, go with someone and be prepared for the possibility that an intruder or vagrant might be inside. When you encounter a person who somehow alarms or frightens you, trust your gut and walk away. We’re all looking for ways to maximize our business, and when we find someone seemingly interested in buying, it’s difficult to make demands of them (“Come to my office and we’ll talk
there first”).

But as a friend in law enforcement once told me, being too nice can get you hurt or killed. It’s fine to accommodate your clients and provide the service they expect, but do so on terms that let you return home safely once the job is done.

REBAC To Sponsor Exciting Sessions At NAR Convention

2009-04-07T04:55:00.000-07:00

As I have written about over the course of the past year, meeting the challenges of today’s market requires mapping out a solid plan for success— spotting opportunities, avoiding setbacks, and laying a foundation that builds a business for life. I have challenged you to think about your business practices, review what you are doing, and try different approaches. I also have posed many questions to get your creative and business mind thinking. But, as one reader told me, I have not always offered solutions or answers to these questions. It is time that I try.

THE ANSWERS ARE HERE

Every year, the Real Estate Buyer’s Agent Council (REBAC) sponsors a full day of sessions at the Annual Conference and Expo of the National Association of Realtors®. This year is no exception, and on November 7, 2008 you will have the opportunity to learn from three phenomenal speakers who will fill your mind with information that should increase your business, broaden your horizons, and leave you energized and excited about working with buyer-clients.

Additionally, attending NAR’s Annual Conference and Expo gives you the opportunity to choose from nearly 200 more sessions devoted to providing you with solutions and ideas for success as a real estate professional. The annual conference also allows you to preview and test drive technology tools created specifically for our industry and for you to stay ahead of your competition. What excites me most about NAR’s Annual Conference and Expo is that over the course of four days, there are opportunities to interact and network with 25,000 other real estate professionals, all looking to increase their referral network.

REBAC-SPONSORED SESSIONS

The first session that REBAC is sponsoring focuses solely on International Buyers. This session, led by David Wyant, ABR®—an international executive and real estate practitioner based in the Daytona Beach area of Florida — will provide key insights on building your business with international buyers. With the changing value of the U.S. dollar, international buyers are actively purchasing U.S. real estate. And these opportunities may be closer than you think—in fact, international buyers may be right outside your back door.

The key is knowing how to connect with them and how to work with them. David will spend two hours helping you determine how best to gain and represent clients in what is probably one of the most important areas of opportunity for today’s buyer’s representatives.

FREDDIE MAC ON “FRAUD”

I am very excited about the second session which will take place on November 7 at 11am. REBAC is working with Freddie Mac to create a session focusing on mortgage fraud that you absolutely shouldn’t miss. According to the FBI, mortgage fraud is pervasive and growing. It typically involves the collusion of “industry insiders” and can run the gamut from one or two accomplices to dozens of participants.

Come hear Jenny Brawley, a fraud investigator for Freddie Mac, discuss current schemes and red flags that might help you identify questionable activity and prevent you from being an unwitting participant to one of these arrangements. Learn how to ask the right questions and contact appropriate authorities if you suspect some aspect of a transaction is not legitimate. This is the first time that REBAC and Freddie Mac have worked together to educate real estate professionals, and specifically those that work with buyer clients, and I could think of no better time for this session.

Our final session should leave you feeling energized and ready to take on the world as Zan Monroe, ABR®, leads a session entitled “Building a Business for Life.” Zan is an inspirational and entertaining speaker who will keep you laughing while sharing business-building tips from the most successful agents in the country. Zan will guide you on a journey to build a real estate business for the rest of your life by basing your decisions on the latest research and best practices available today.

He will examine and share current successful real estate business tips for getting and staying focused. At the end of this session, you’ll be ready to tackle your business challenges with fresh ideas and renewed enthusiasm!

AWARDS RECEPTION

The last event of this very full day is REBAC’s very own Networking & Awards Reception, which takes place from 6:15–8:15 in the evening. Over cocktails and appetizers, you have the opportunity to socialize and network in an informal environment with REBAC members and others interested in buyer representation. Additionally, we will induct the newest members of the Hall of Fame and celebrate their successes. I promise to be at this fabulous event and will make you a deal —if you introduce yourself to me and mention this Column, I will buy you a drink! I hope that you will choose to attend NAR’s Annual Conference and Expo and the REBAC Day events. After being a part of this conference you will leave Orlando with new tools and greater knowledge that will further your success as a real estate professional.

You will also leave with new friends and contacts to help your referral business and network. I look forward to seeing you in Orlando this November. To register for the National Association of Realtors® Annual Conference and Expo visit www.realtor.org/convention. If you are a REBAC member, be sure to indicate that on your registration form. See you in Orlando!