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 You have seen the numbers, you have read the press — is there any way to make a living out there?
Of course there is! I was reviewing information on our market recently and found that we are selling the same amount of homes as we were 10 years ago. The only difference is 10 years ago there were just over 2,000 REALTORS® in our market whereas today there are 10,000 agents. That is 10,000 agents sharing 1,000 home sales a month in our area. The odds seem stacked against me.
Well I can continue to talk about it and be a worry wart or Debbie Downer (pardon the "Saturday Night Live" reference). "Sniff, Sniff." But that doesn't achieve a thing.
What happens when we are focused on getting? We start to fret about the market, we start to fret if we are going to be in business, and what happens when we fret? Here's what Websters.com says the definition of fret is: to wear away or consume by gnawing, friction, rust, corrosives, etc.
How can I receive anything good when I'm constantly being worn away? You can't! When you fret about things and your business, you end up wearing your business out! So what's the
Continue reading "Stop Your Worrying!" »
 For many years, open houses were looked at as a necessary part of marketing a home. But are open houses quickly becoming a thing of the past?
Maybe not quite yet — like any product or service that is on the decline, open houses will likely be around for a while, even if it is just to appease home owners. For some reason, agents believe that they must show home owners that they are trying to sell their home, and do so with perhaps the most ineffective marketing tool in the agent arsenal.
But who really benefits from the open house?
Seller’s may believe that open houses are a necessity because it is tangible to them. But what most sellers don’t realize is that the agent is the one with the most to gain, as they use open houses to find buyers to work with.
Usually, the seller will leave the house excited about the possibility of finding a buyer in the 2-3 hours that they will be gone, only to come home and find that few, if any, people came to view the home. Ultimately, disappointment sets in, and eventually frustration.
There was a time when open houses were successful. During a seller’s market, it is possible to have a number of buyers visit the home in their attempt to be the one that gets the house.
Buyers in the current market no longer have that mindset. Most of them are perfectly happy to continue to see as much available inventory as possible. Without a sense of urgency, the agent
Continue reading "Open Houses: Are They Worth It?" »
In this crazy market of foreclosures, investment purchasing, and economic shakiness, I have experienced that lending institutions are sometimes risking losing good, qualified buyers in their fear and sometimes downright inaction.
I have had two escrows within the last three months that have gone longer than the typical 30 days it usually takes for getting an escrow closed, based entirely on the lenders.
In one escrow, I had an extremely well-qualified buyer who was purchasing a residential full-time home, but we kept hitting snags. The lender was located in a different state — which I've learned to now insist on a buyer having an in-state local lender due to such extreme differences in markets and the difficulty in not having face-to-face interaction.
When I called to check on the status of the loan on day 18, the lender had not ordered the appraisal. So I called the buyer's agent to let him know that the lender was not staying on top of things, and I then left it in his newly licensed hands (which I didn't know until the end of escrow).
I continued to call the lender each day to make sure things were moving along and I kept getting the same answer, "Everything is moving along, we're moving forward" — which really translates to "something's come up and I'm not going to tell you about it" or "I have a tee time at 2 and will get to this file tomorrow."
A few more checkup phone calls later and the lender became upset at my frequent calls and
Continue reading "The Lending Fallout from the Trenches" »
 As a real estate professional in the current market you are bound to run into your share of expired listings. Whether it is your listing that has expired, or a competitors, here are four major areas to address with the seller to get the listing back and get it sold.
1. Strong communication. Teamwork and communication between the seller and agent is key to know how to alter a marketing plan for success. Inattention to a listing can be a factor, but rarely is it the core issue. Make sure you let your sellers know that you want any feedback they can provide and that you will offer the same to them. The seller is the key source for information regarding changes in the neighborhood and property condition that affect the property’s salability. The more you work together, the faster a sale will be closed.
2. Price is right. This is the obvious and most common culprit for the lack of a sale. An incorrectly priced home attracts the wrong buyers or worse, none at all. When working with a previously expired listing be sure to prepare an up-to-date competitive market analysis, the market conditions have probably changed since it was initially listed. Activity without offers often indicates overpricing. Remember, any home, no matter what the condition is, will sell for the right price.
3. Good condition. A home that is in like-new condition sells faster and gets the best price because it outshines the competition. Make sure your sellers fix all the little squeaks and drips, paint neutral colors where needed, and brighten up and concentrate on outside curb appeal. I
Continue reading "The 4 Major Factors That Sell an Expired Listing" »
 I have received a lot of positive feedback on my blog entries because readers, family, and friends, say it comes from the heart and I don’t hold back. This one will be no different as I have made a huge career change and want to vent to my readers.
You always hear the saying “business is business” from people in the corporate world. Recently I have had an experience that proves that true and false simultaneously.
I started in commercial real estate under my now former mentor Jim Hodur at Coldwell Banker Commercial NRT. But just recently I was offered a job opportunity with a very successful person in the real estate world that I could not pass up. It all happened so fast.
My mentor Jim had taught me a lot and he had the feeling that I was on the verge of stardom in the industry. Everything was looking up — we had gone from $45 million to probably more than $55 million in listings with leases as well as having some buyers we were working with.
I have always had the utmost respect for Jim for taking the time to teach me and entrusting me with some of his clients. So when I was presented with this new offer the hardest thing to get
Continue reading "'Business is Business' When it Comes to a Job Change" »
Working with other real estate practitioners in a market that has a glut of REO listings isn't always pretty. Or nice. Or even cordial. In fact I have noticed — and experienced — that it can be downright mean, dirty, and condescending.
Up here on the mountain (I live in Crestline, Calif.), there are a few real estate practitioners who have a thriving REO business. I have dealt with many of them, since the mountain is a target for investors looking to snag one of these deals right now. These agents have been overwhelmed with the foreclosures, but they still have the decency to call me back and provide information that I've requested, since we all know that we'll be doing business together again at some point in the future.
So I was surprised when a recent REO dealing didn't go smoothly. I had been working with an
Continue reading "Surviving the Winding Trail of REOs" »
 In a market where homes are not selling as fast and foreclosures are rising, your chances of showing a vacant home is increasing.
This March, a Wisconsin REALTOR® was killed during home showing, and it made national headline news. A 34-year-old ex-con admitted to becoming so angry with his real estate agent, Ann B. Nelson, during a showing of several properties that he attacked her by hitting her on the head with a long metal object, then leaving her in the house and setting the house on fire.
Unfortunately, this isn’t the first time I have ever heard of a real estate professional falling victim to such a horrifying event — but this incident was outrageous and unfortunate and it could’ve happened to any one of us. It was just the wrong time, with the wrong person. This sad story
Continue reading "How Safe Are We?" »
 Do they hate you too? Here’s my deal ... I was in a meeting the other week with my peers (other managers in my market place) and because I am young enough to be their son, and have had somewhat of a successful run here at my office, I have somehow become a target of scorn and resentment.
In fact, let’s just call me Mr. Target of scorn and resentment.
I swear — some of them like seriously hate me. Now, am I arrogant? I don’t think confidence is arrogance, so let’s say no. Have I had some public successes? Some, but I have always tried to show my more humble side. Are they jealous? Most likely, YES!
My point is, it’s no fun being the target, if you know what I mean. It takes energy to
Continue reading "When You've Had a Bad Day" »
An interesting article to pass along that appeared in Sunday’s Boston Globe (“Brokers Taking on Younger Look”) about the need for the industry to attract young brokers who often tend to better understand how to reach the growing demographic of young, tech-savvy home buyers. Coupled with that, a study last year revealed that the real estate industry – which has a median
Continue reading "Wanted: Young Brokers" »
 When is the right time to let a client go? As real estate practitioners, sometimes we have to make the choice to let a bad client go. But it’s never an easy decision since we feel like we are letting a potential paycheck fly out the window.
The truth of the matter is we are running a business and we have to make educated choices for the best interest of our business. When a listing or buyer ceases to be an investment with return, we have to step up to the plate and knock them out of the park.
Recently, I had to make this tough decision. Once it was done, I felt like a weight had been lifted off my slumping shoulders. The client had refused to listen to advice, continued to cut calls short, and just wouldn’t enter into reality about the market changes. Come on, why did you hire me in the first place? I mean, I know I have a great smile and I am fun (ha ha, just kidding!).
For me, I realized it was a waste of my time and money — especially with the rising cost of gas and everything else these days. To be honest, I have better ways to spend time and money.
So take a close look at your current business. Are there customers and clients that seem to be
Continue reading "Sometimes You Need to Cut Ties" »
 “I don't measure a man's success by how high he climbs but how high he bounces when he hits bottom.”
— General George S. Patton
I wanted to start with this quote because I feel as if everyone in the real estate world is either staying down when they get hit to the ground or is flying high when they just take a leap.
For about 7 months I have been working under my mentor, Jim Hodur, and basically have been working pro bono. Jim, being generous, has helped me out with a few checks here and there if I go on a showing or on a follow up, which is greatly appreciated. A few months ago I remember a time when I asked myself: “Is this what the industry is? Someone works so hard for nothing?”
Finally, I am noticing a few things change. People say the market is bad and that’s all you hear in the news. Well I’ve got a news flash for you, the commercial market is moving and moving fast in some markets. In the last 3-4 weeks the team I am a part of has gone from $18 million in listings to somewhere around $45 million, and our buyers swarm in on the phones.
Of course, all of this can depend on the individual. You or I can sit around and wait for someone
Continue reading "Success or Failure? It’s Up to You" »
 This is a list of the top five mistakes I have seen sellers make in the current market. I make a point to go over this list with all of my sellers when they list with me.
Mistake #1: Overpricing
Everyone knows the right price sells a home faster than any other factor. When you list a home at more than 5-10 percent over market value, the price will discourage potential buyers that think they can’t afford to look. Buyers that do see your overpriced listing know they can get more for their money elsewhere.
Mistake #2: Fixer upper/as-is
Today’s market is very competitive and most buyers do not even want to consider a home that needs multiple improvements. Buyers want a home that is neutral, clean, and in move-in condition. Even when a buyer decides he can tackle the fix-ups, they automatically subtract the cost they think it will cost them from the price they’re going to offer. Either way sellers save nothing and likely delay the sale.
Mistake #3: Dark dated colors
The best dollar-for-dollar investment sellers can make is fresh paint. Fresh neutral paint makes a big difference in the feel of the home. Also, carpet is on the way out — replacing it because of condition or color can really help the sale price. If your sellers do not want to spend the money
Continue reading "5 Mistakes We Can’t Let Sellers Make" »
 The market in St. Louis, like much of the country, has slowed and is a “buyer’s market.” Because of this slowdown I’ve concentrated on working with buyers in order to generate commissions. Many of these buyers are mistakenly under the impression that they are entitled to massive discounts because they are bombarded by doom and gloom real estate reports in the media. Some may ask what’s the harm in asking for an extremely low price on a home?
There are two major downfalls to this practice. One is it can make an agent look unreasonable and unprofessional in the eyes of the other agent. Two, the client can lose out on a great deal.
Many agents in this market are slashing asking prices to very attractive rates. I’ve had clients ask for an additional 20 percent to 30 percent off of prices that are already 10 percent to 20 percent below market. Also, in some case the client wants to offer these types of reduced prices on properties that are newly listed or reduced.
So what can an agent do? I think the best way to handle it is to educate the client about
Continue reading "Educating Buyer’s About a Buyer’s Market" »
 That is a question that has been plaguing me for quite some time. I have been trying to find a way to screen my leads so that I end up with great clients. Recently I have been bombarded with clients who want me to make the decisions for them. I know it is our job to educate and inform our clients to make a good decision. However, I feel that it is not our job to pick and choose the home they should buy.
For example, I have had clients who besides asking you for mortgage lenders and inspectors, ask for your advice on what you think of the home and if you like it. I always respond the same way: “In the end you are the one(s) who will be living in the home.”
But I follow up by asking them questions about the specific qualities of the home to help them make their decision. If they have more likes than dislikes about the home, I ask them if they could live with the things they dislike. If they can’t, I tell them that we have plenty more homes to look at and choose from.
Besides the indecisive clients, there are the clients who are “sitting on the fence.” These are
Continue reading "How do you Deal With Picky Clients?" »
 When I first moved to the mountains in Crestline, Calif., and hung my license, my broker told me a few of the ins and outs of living and working in such a small community. Basically, a lot of the older and long time resident-agents of our town liked things to stay the same, were nearly adverse to change, and, overall, it’s usually much slower than real estate down the hill. In other words, some may not take well to younger agents who cut into their business.
I just recently turned 30, and I definitely was not prepared for finding out I was the youngest real estate practitioner in my market!
My first escrow was with an agent who very rarely answered her cell phone. A few other mountain deals under my belt and I found out other agents didn’t even HAVE cell phones. They had their home phones and office numbers. Some agents were unreachable until the next business day or the next time they happened to come into the office.
I called an office to get the fax number for an offer and was told to put it in the run, since their broker had to have all originals for EVERY document in the escrow. Huh? I can’t just fax this offer over to get it going? Sure, but it wasn’t viable until they had the originals.
I was absolutely flabbergasted, for lack of any better word, that any brokerage nowadays would require original signatures on documents when faxed documents and electronic signatures are the norm. In this day and age where speed and timely response can be everything to a deal, we
Continue reading "Being the Youngest Agent in my Market" »
 With national real estate markets becoming more competitive for buyers and sellers, many real estate agents are beginning to think about expanding the services they offer and diversifying their areas of expertise. Is this a good or bad decision?
Based on personal experience I can answer this question without doubt. Diversification is not the answer for real estate practitioners in any market, especially not a slow or declining one. Unfortunately the opportunities to branch out of our area of expertise only seem to be expanding.
Today I can choose to be a home stager, retailer of electricity service providers, limited service brokerage, home inspector, appraiser, Web page developer, or, heaven forbid, combine real estate with mortgage services. (YES, in some states this is actually legal!)
What happens in any of these equations is that you become distracted with your primary purpose of selling real estate. Having a home staging designation is terrific but it doesn’t mean you get out there and start staging homes that are not your listings.
Selling secondary or complementary real estate goods will never help you hit the closed transaction numbers you are seeking.
So what is the answer to hitting your numbers, delivering unparallel customer satisfaction, and
Continue reading "Are There Too Many Distractions?" »
 The average REALTOR® is involved in 10 sides per year, according to the 2007 National Association of REALTORS® Profile. And for “young” agents it would be expected that the numbers would be well below that.
It is easy to see why the “big lights” of the national brokerages would draw many young agents into their mix. But for many, those bright lights don’t equal happiness and success. Therefore, an independent brokerage may be the answer.
However, not all brokerages are created equal, so when you consider an independent brokerage do some research.
- Experience doesn’t equal knowledge. Lots of brokerages will claim we have “x” years of experience average per agent. In an industry where 70 percent don’t last three years, it is impressive. But make sure that the brokerage’s agents are willing and able to share information — and that this brokerage is not a “retirement brokerage.”
Everyone who works for a living will get discouraged at least once throughout their career — that's a guarantee. With being so young and new
to the business I have already had my fair share of these letdowns.
Take, for example, the time I accidentally set off a house alarm at a showing and then had a police officer arrive in the middle of the showing to write me a ticket for a false alarm. Not exactly the best impression to make in front of a buyer! Then, at a very important building tour, my car got towed from the parking lot — I'm going to assume that wasn't exactly a great first impression either.
Despite these unlucky events, I am lucky enough to keep an open mind about everything. And I challenge you to do the same.
Granted, I'm fortunate to have a great mentor in the business, Jim Hodur, to guide me along the way. He has experienced all of the ups and downs in the business and has achieved a lot of success in the business. He has shown me how to right my wrongs and learn from my mistakes.
For example, awhile back when the commercial market was going through its nine-month downfall, I started to question if there were any positives to this business. Jim was there to get
Continue reading "Learn From the Bumps in the Road" »
 As I interviewed an agent a few weeks ago, I was taken aback by one of her questions.
She bluntly asked me: “How old are you?”
At first, I was surprised at her boldness and tone. Age is hardly an appropriate question to ask someone who is interviewing you!
But after a second of rationalization, I figured that the question wasn’t really about me, but about her personal reservations in entrusting her career to someone who appeared youthful.
In her mind’s eye, youth may mean inexperience, which in turn could lead to lost time and money amidst a challenging market.
My old sales mentor had taught me the risk we take when we make assumptions and he taught me the virtue of clarifying objections with good questions.
Therefore, I smiled politely, thanked her for her question, and asked her to expand her original question so that it included a possible benefit to her.
She looked puzzled. But after a few moments she asked: “How does having a younger manager give me an advantage in a struggling market?”
At that point, I quickly pointed out the tech and marketing know-how that agents I coach use to consistently sell and list homes.
Amazingly, just like that, the objection dissolved and we moved on to talk about other pertinent issues.
In my opinion, younger professionals need to create, practice, and deliver a dialogue that addresses experience questions. Sellers and buyers demand that the real estate practitioner they choose to hire have the professional maturity to cope with today’s competitive marketplace.
Moreover, be careful with assumptions and take some time to delve deeper to the objection. You may find that it’s not only an opportunity to gain some insight on the person you’re speaking with but also a chance to use this knowledge to develop a client!
Hugo Torres, e-PRO, is an agent coach, mentor, and guide to real estate practitioners at Century 21 Adams & Barnes in Monrovia, Calif.
“When do you think the market will turn around?”
This is a question I consistently hear from my clients.
In answering this question I think it’s very important that we do not pretend to know the future. I believe that the current slump is temporary and given the lower prices, favorable interest rates, and pent up demand it is a great time to buy.
But obviously I cannot predict the future — even if doing so will help reassure a buyer and close a deal. I am not a lawyer, building inspector, appraiser, and certainly not a clairvoyant.
It is sufficiently emphasized in real estate training and publications that giving professional advice outside the scope of our expertise is unwise. Is making predictions about the future of the real estate market outside our expertise? After all, our job is to know the market inside and out.
The key is to provide the client with a well-informed opinion, while expressing that it is an opinion, and also providing relevant information as support.
The National Association of REALTORS®, local real estate associations, and the media provide reliable statistics and predictions about the market that we can pass on to our clients.
For example, I can say definitively that current interest rates are very attractive compared to historical rates. I can provide hard data that points to a favorable market, and explain the data clearly and concisely to my clients. Also, it is extremely important to be honest and encourage clients to view real estate as a long-term investment.
In other words, I make sure my clients have an informed opinion about the market, without telling them what will happen in the future.
Howard McAuliffe is a licensed agent for Premier Realty Exclusive in St. Louis and is pursuing a master’s degree in Urban Planning and Real Estate Development at St. Louis University.
 "I have shoes older than you,” the woman real estate practitioner announced.
It was a year ago, and within the first five minutes of being introduced to my new office as the branch vice president, the practitioner had stood up and declared that I couldn’t possibly know how to run an office. Why? Because I was 32? Because I had only been in the business for 4.5 years? Because when she sold my grandmother’s house in 1987 I had just finished my Bar Mitzvah?
Well, yes — I guess for all these reasons people hesitated to consider my value.
From that moment I understood what I was there to do. The powers that be did not hire me to be a yesterday’s manager — a legal dictionary of real estate wonder, sitting behind a desk all day to field every piece of minutia the associates could throw at me.
Rather, I was placed in the Chevy Chase office to create an atmosphere and culture of profitability where none existed before. I was hired to be a marketing expert and business partner to every single associate in my office, so they, using their creativity and talent, could learn how to run successful businesses.
Simply, we are no longer a cottage industry. We are innovative, marketing experts dealing in a multi-billion dollar business. If you don’t look at yourself that way, then this is perhaps no longer what you should be doing.
Did it take time for people to adapt? Absolutely. Did some decide that this was not the right place for them because of the new standard of accountability? Yes. But running a business from the perspective of fear is not leadership — that's about knowing the goal and striving toward it regardless of condition, hesitation, or fear.
So, how did I answer that morning, in front of everyone, when she so delicately told me that her Ferragamos had existed longer than I?
“Buy new shoes.”
Darrin Friedman is the branch vice president of Coldwell Banker Residential Brokerage Chevy Chase, Md.
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