Adjustments Are Not Just For Backs

Posted at 7:45 AM, Nov. 9, 2009

 Like so many others on Monday morning, I’m caught in the stupor of awakening to a new week to fire up the engines and make things happen. Trouble with 2009 though, is much of the vim and vigor has all but disappeared from the real estate front. 

Sure, prices may have hit—or are close to bottom and the homebuyer tax credit has been extended. More escrows are closing and it seems the consumer needs a Realtor® more than ever. Still, should you sit in the middle of a group of agents, it is a quiet and apprehensive environment, at best.

Not talking about the REO agents, short sale experts, niche top producers, Internet savvy folks or the Realtors® who make a point to keep relationships going and work their data base. No, no, rather it is the rest of you. Those who still wait for “something” to happen. After all, those aforementioned folks had strokes of luck. Many are enjoying their best year ever. If only some of that would rub off on you, right?

I’ll keep it short and sweet, my friends. It’s not that hard to figure out. In the summer, we dress in light clothing and as the weather cools, a sweater may be due. Once winter is in full bloom (unless you are one of those lucky Maui types), you bundle up and spend more time indoors. That’s called adjustment.

It is winter in the real estate business and it will be a long one. In fact, we may be in the Arctic and the frost is permanent. Time we realize that and dress warmly, bring in more firewood and learn how to ski.

Metaphor after metaphor, but the bottom line is this—If you plan to remain in the business, it is time to own up to the changed landscape. Short sales, REO’s, equity strapped sellers, well-informed consumers and the Internet rule the land. Understand that, learn it, specialize in a portion of it and adjust.

Do not delay, lest you will freeze.

Weekend

Posted at 7:45 AM, Jun. 5, 2009

 Sometimes Friday is akin to that childhood dinner plate. You've eaten the chicken, devoured the roll and butter, finished most of your mashed potatoes and now all that remain are the mushy cooled off peas. Mom says no dessert till my plate is clean—even if it takes all night. Will I get my dessert (weekend) this day?

EXCUSES ARE LIKE...

Posted at 8:02 AM, Mar. 27, 2009

 What’s your excuse?

For not making your calls today?

For not going on the MLS tour this week?

For not following through with that professional certification?

For not intensely learning how to sell distressed properties?

For not reading that book?

For not asking your broker how to better yourself?

For not reading real estate and financial news every day?

For not putting that data base together?

For not asking for that referral?

For not producing a business plan this year?

For making a plan, but ignoring it till your broker asks you about it?

So, how many homes have you sold this past 12 months? If the answer is few or none, find someone who has sold a lot of homes. Ask her, what’s your excuse?

Let me know what you come up with, okay?

CAN STARBUCKS SAVE REAL ESTATE?

Posted at 9:00 AM, Mar. 14, 2009

Have you read any of the articles, blogs or thinly disguised ads that tout the emerging trend of “virtual agents?”

Seems your office is no longer necessary, since we have Blackberry phones, laptops, and online file management. One can execute an entire contract with nary a sheet of paper, via electronic signatures. According to the pundits, gone are the brick and mortar buildings that once housed Solitaire playing agents. Gone too, are those “profit-sucking” receptionists who answer the main office line, only to transfer the client to voice mail. Floor time? Um…isn’t that like, uh—Pine Sol and a mop?

Now that the world is so engaged in technology, agents can simply direct their clients to Realtor.com or even their own web site. There you will find virtual tours and sometimes a video of the property. Why bother to mess with a drive to the house and then waste a fine sunny day, while you check out cabinets and room sizes? Should you still have questions, you can text a virtual assistant and she will e-mail a link to more information. After all, don’t we buy computers, books and shampoo on the Internet?

Okay, there may be a few crazy people left who prefer live contact. No problem, say the proponents of this movement. Heck, if you need to meet clients, there are plenty of Starbuck coffee shops around.

What?

I’m sorry, I just can’t let that one go. Meet clients at Starbucks? Is that  the best we can come up with?

Let’s say Joe and Mary Buyer want to purchase their first home, and let’s also assume they are one of those “rare” folks who actually want to make eye contact during this single biggest purchase of their lives. “Let’s meet at Starbucks,” you say.

“Good golly, really?” asks Joe excitedly. “Can I get a double tall skinny Latte and one of those frosted scones? I’m so jazzed that I can discuss my personal finance information with you, while sitting on the couch near the entrance door. Oh, can we go to the west side Starbucks? They have a fireplace, and the goatee wearing poetry readers like to gather there. I’d like to provide them inspiration for the Tuesday night readings. And did I mention Mary really loves to huddle around a tiny table, so we can preview the MLS listings on your Blackberry Storm? Oh, Little Martha and Joe Jr. prefer whipped cream on their hot chocolate.”

As a broker and an owner, I concede that we cannot continue this impossible brick and mortar business model. Much, if not most of our business can be conducted away from the brokerage office. Unless you work at Starbucks though, please stop insulting us with that option.

IS IT REAL OR IS IT FACEBOOK

Posted at 8:18 AM, Mar. 10, 2009

 I knew the day would come. We've become a nation of Blackberry carryin', e-mail checkin, Facebook obsessed texters. 

What happened?

I suppose in our quest for instant gratification, we caught a side effect--namely self imposed obsessive compulsive behavior. I mean, who isn't flattered when a perfect stranger walks up to your virtual doorway and asks to be your friend? And isn't is just a little curious why so many people have this voyeuristic notion to peek at what you've been writing, or better yet, what others write about you?

The best part is that you can create yourself to be anything you want. Post the glamour photos, rather than bed-head at the campground, then copy and paste someone else's quotes from that Google search. Don't you think that will make you appear clever, soulful and deep? They'll never know, right?

I recently made a pact to only check my Facebook messages 30 minutes in the morning and 30 minutes before bed time. That's enough. Though I now own a Blackberry Storm, I've vowed to use it only for business. Enough is enough.

Gotta go now. Just got beeped. I think my friend Mack commented on my new photo.

SCARED?

Posted at 8:30 AM, Mar. 4, 2009

Did you see the headline about our economic state this morning?

"EVEN DR. DOOM IS SCARED."

Gotta love that journalistic spin on things, eh? I suppose I understand the concept of active writing to lure in the reader and I certainly appreciate that it will sell more ads. Of course, if I were an advertiser, I may freak out as well, and pull my bucks out of the media. After all, if we are in such dire straits, I mustn't spend more money, right?

No doubt the country is struggling in a historic way. It is tough, tragic and sometimes depressing. I ask though, where the hell are the cheerleaders? Other than our president and a few trade associations (including CAR and NAR), all I hear is news of imminent destruction. Okay, I get it! On the other hand, if we are to win this one, we need to get fired up to go at it harder.

TAKE SOME OFF THE TOP?

Posted at 5:42 PM, Feb. 24, 2009

I've come to accept that the world is a great big classroom, so long as you open the door.

Last Saturday, I ventured to the local Supercuts® to receive my bi-monthly haircut. Nothing fancy, just my usual, "Trim the sides and take a little off the top."

Simple, eh?

Typically, the stylist on duty will fine tune my request and determine whether I want my ears touched by hair and then inquire about sideburn preferences. She then puts me in front of the mirror and holds between two fingers; that amount of hair she proposes to remove, after which I typically say, "Sure, looks fine to me."

That's what I like about this place--they ask the right questions, determine my needs and get it done.

This time though, was different. It began just fine. The brow ring endowed receptionist removed the I-Pod cord from her ear and promptly greeted me in a friendly, scripted manner. "Haircut today sir?"

"Yup."

"Shampoo?"

"No thanks."

"It should only be about five to ten minutes. Please take a seat."

Okay, so far, so good.

I was about two pages deep into an article about the pending showdown between Jen Aniston and Angelina Jolie when I was called.

"Mike? Is Mike here?"

I raised my hand and ambled over to the designated chair. This is where my lesson began. "How would you like your hair cut today sir?" asked the gum smacking gal. "Oh yeah, I'm Amy and I'll be your stylist today."

"Uh, hi Amy. I'm Mike. Just trim it a little and take some off the top please."

Amy's subsequent eye roll could give my 12-year-old daughter a run for her money. "You'll have to be more specific," she said. "I'll get you a book and you can tell me which style you like."

Before I had a chance to respond, Amy whisked away to grab a hardcover book, which she then opened and plopped in my hands. Then she stepped back and waited for me to flip through the pages. "What could it hurt?" I thought. I'll work with her.

There were so many choices, mostly versions of hair much longer than mine, modeled by Jonas Brother look-alikes. The oldest of the models could easily be my kid, with plenty of years to spare. Just for kicks, I pointed to a nautical themed photo, which contained a Fabio inspired, sailor-suited man-boy with frosted hair past his shoulders and a spiked, mullet inspired top. "Can you make me look like that?" I asked with a grin.

Just then, it became very cold in the room. "His hair is much longer than yours sir. You'll have to keep looking."

In the words of a certain cartoon character, I'd had all I could stands and I could stands no more. I gently closed the book. "Amy," I said "Can you please just give me a trim? I come in here all the time and that's where I start. The gal will ask me the right questions until she figures out just what I seek. My hair gets cut, I leave a good tip and we're all happy."

Her sudden scowl made me squirm and was eerily reminiscent of the comedic movie, "Waiting," when the disgruntled customer sends an undercooked steak back to the kitchen, and the angry and mischievous cooks gleefully insert unmentionable human byproducts in her food, before delivery back to the table. If I wanted a haircut today, I knew I'd better make amends. So I put on my best dad face, complimented her audacity and started at the beginning...

Well, Amy finally cut my hair and we parted with smiles. As a self proclaimed typical guy, I know that when it's time to go to Supercuts® I just want to get in quickly and leave with approximately the same style as I've had most of my adult life. Since I've never figured out the specs (typical, remember?), I appreciate when a professional asks good questions to lead me to the right decisions. That puts me at ease and lends a certain confidence in her ability to do the job well. 

So, if that's so important with a simple haircut, don't you think that a homebuyer, when considering the most important financial decision of her life would like that too? Ask yourself; are you skilled at this powerful tool? 

Really?

ALL YOU NEED TO KNOW ABOUT LOCATION

Posted at 8:41 AM, Feb. 16, 2009

 How many coffee fueled bloggers have started to write, only to be caught off track by an incredible snow scene outside? The stress of falling house prices, frozen credit and the “who really cares anyway” issue of California’s statewide MLS simply fades away. All that matters right now is that oft battered phrase, “Location, location, location.”

As I type, my location happens to be my butt parked on a big soft pillow, right in front of a cozy fireplace, as I ponder the snow glazed redwoods. There are no thoughts of, “How will that add or detract from my property value?” or “Am I close enough to the schools?” In fact, I’m not selling at all; rather all thoughts are absorbed to the beauty of this corner of the world.

Earlier this morning, while I gathered an armful of firewood, I took a moment to look up at the magnificent old trees. I was taken aback. Not unlike the seasoned city dweller who walks to his San Francisco office in the financial center and never looks up at the skyscrapers. On that rare occasion that he is not too busy or absorbed, he takes the time, tilts his head back and feels small and wondrous again.

Right in my own backyard are living behemoths, which would give Jack’s beanstalk a run for its money. Residing in these natural wonders is not a group of neighbors that slam doors, rev car engines late at night, or have teenagers who practice drums at all hours. Instead, my neighbors build nests in the branches and quietly teach their babies to fly. Others will gather nuts and acorns from the nearby oaks and store them in their pantry. Occasionally I’ll catch one of the bird families staring through my window, but I don’t even care.

Most days, it is easy to forget what home is all about. In our business, we seem to hyper focus on the business side and it causes many a lost hour of sleep and I’ll bet you could pin a couple of those little wrinkles on that stress. When it gets right down to it though, we sell something that is truly intangible. It’s a feeling, such as security, peace, warmth, and a place to break bread with the kids. Your perfect location may be in a downtown condo or the third house down in the 1500 unit subdivision or even close to the barking sea lions at the coast. It doesn’t matter, as long as it is home.

Sans investors, that is what people buy. That’s what we sell. Do the math.

WHAT IS IMPORTANT?

Posted at 9:54 AM, Feb. 1, 2009

I like sentimental as much as the next Joe, though two to three minutes is my "guy" default limit. With that borderline ADD figure in mind, I'll share a quick tale.

About two years ago, I hired Linda Gorman to sell real estate for my brokerage. She had spent one year as an agent for a smaller firm, so she was hoping we could provide  some tools for success. I had known her on and off for several years through sales transactions with her and her husband, so there was already some type of connection.

I hired her, and we proceeded to spend the next several months with hours and hours of intense training. Prospecting, relationship building, self confidence, contract training, scripts and dialogues--you name it. Meanwhile, she sold a couple of houses. The day arrived though, when she plopped down in my office to say, "I don't want to be a top producer. I just want to enjoy myself and make a little money."

Though my well-conditioned attitude couldn't quite grasp the concept, I eventually accepted the concession and allowed her to remain as an agent ,and work the business at her own pace. She proceeded to sell another house, which on the surface appeared to be a full time counseling session with the buyer. They spent hours talking about the neighborhood, addressing concerns and generally shooting the breeze. Yes, that went against my grain and I teased her about it, but I had given my word to allow her to sell as a free spirit, save a strict adherence to proper contractual actions and ethics. No problem there.

After that sale, Linda took a leave of absence, in order to spend more time with her family. I respected that and told her to contact me when she was ready to come back. We shared an occasional E-mail, a phone call or two and she came in once to turn in a piece of paperwork. Her infectious smile and great attitude warmed me and though I really didn't need a low producer on staff, I would always repeat my invitation to come back when she was ready.

Just yesterday, I learned more about Linda. For almost two hours, I discovered that she was a long time "child of the wind." If there ever were a classic VW Bus driving, flower in the hair, whimsical speaking gal, she was it. I also learned that her kids and grandkids were bonded to her in an almost cult-like fashion. Sort of a modern era Waltons kind of way. Her priorities were trips to the beach, bagging rays and hanging out with her church buddies.

"No wonder she couldn't sell a lick of real estate," I thought.

While sitting at this gathering of  I like sentimental as much as the next Joe, though two to three minutes is my "guy" default limit. With that borderline ADD figure in mind, I'll share a quick tale.

About two years ago, I hired Linda Gorman to sell real estate for my brokerage. She had spent one year as an agent for a smaller firm, so she was hoping to gain a few tools for success. I'd known her on and off for several years through sales transactions with her and her husband, so there was already some sort of connection.

I hired her, and we proceeded to spend the next several months with hours and hours of intense training. Prospecting, relationship building, self confidence, contract training, scripts and dialogues--you name it. Meanwhile, she sold a couple of houses. The day arrived though, when she plopped down in my office to say, "I don't want to be a top producer. I just want to enjoy myself and make a little money."

Though my well-conditioned attitude couldn't quite grasp the concept, I eventually accepted the concession and allowed her to remain as an agent ,and work the business at her own pace. She proceeded to sell another house, which on the surface appeared to be a full time counseling session with the buyer. They spent hours talking about the neighborhood, addressing concerns and generally shooting the breeze. Yes, that went against my grain and I teased her about it, but I had given my word to allow her to sell as a free spirit, save a strict adherence to proper contractual actions and ethics. No problem there.

After that sale, Linda took a leave of absence, in order to spend more time with her family. I respected that and told her to contact me when she was ready to come back. We shared an occasional E-mail, a phone call or two and she came in once to turn in a piece of paperwork. Her infectious smile and great attitude warmed me and though I really didn't need a low producer on staff, I would always repeat my invitation to come back when she was ready.

Just yesterday, I learned more about Linda. For almost two hours, I discovered that she was a long time "child of the wind." If there ever were a classic VW Bus driving, flower in the hair, whimsical speaking gal, she was it. I also learned that her kids and grandkids were bonded to her in an almost cult-like fashion. Sort of a modern era Waltons kind of way. Her priorities were trips to the beach, bagging rays and hanging out with her church buddies.

"No wonder she couldn't sell a lick of real estate," I thought.

While sitting at this gathering of friends and family, I pondered why I was invited to this special occasion. I can barely get through Thanksgiving dinner with my own family, without drifting to the pending NFL games. I'm just her broker--not much connection beyond that. All this family and friend banter--not once has real estate been mentioned. Seems it's all about things unrelated to business success or making money. How grueling to endure this endless barrage of family devotion, meaningful friends, acts of kindness and discussion of her favorite foods.

So what's my point here?

Linda passed away last week. That get-together was a celebration of her life, which by all accounts was full and blessed. Nary a word about making money, spending more time at work or even prospecting that sphere of influence.

Does that mean something has clicked and I will sever all business ties in order to discover my "true self" and spend 24-7 with the kids?

Of course not. I made a promise though, that I will be wise enough to separate the priorities of my life and recognize an appreciate the difference. Thanks for that Linda.

MOVIE SCREEN MOMENT

Posted at 8:18 AM, Jan. 27, 2009

 Remember the scene in 'Titanic,' where Leonardo DiCaprio stands at the bow of the ship and shouts excitedly, "I'm the king of the world!"

Though it ranks high on the cheesiest movie lines of all time (rivaled only by, "You had me at hello."), should you put it in perspective, that dialogue, spoken in that movie, could very well be a "Recent History of American Real Estate," if you squint really hard, skip the popcorn and put yourself in an analogous state of mind. 

Think about it, we launched with excitement and promise of new adventure, we were pompous and felt indestructible, partied like there was no tomorrow and then, in the middle of the night, we slammed in to an iceberg, which sank us all too quickly. Many perished, while others were lucky enough to find room on a lifeboat. Some of the bravest and most honorable souls sank with the ship and certainly there were survivors who gained entry through shady means.

As DiCaprio shivered in the water, dying of hypothermia, he spoke an eloquent speech, albeit in a shivering voice. Then he fell in the depths of the sea, never to be forgotten by an ever so hot Kate Winslett (Sorry, couldn't resist). 

The real estate profession struck a huge iceberg, right smack in the middle of the party of the century. It was a shock and we ambled our way to the rafts, wearing designer clothes and hoarding bottles of champagne. Ultimately the ship sank like a rock. In short order too.

Now, all we have left are the survivors. That would be you and me. We must not forget some basic lessons of navigation. Have a chart and sail by it, watch out for icebergs and other ships, be prepared to act in the face of disaster and if you are struck, don't panic. Should you be one of the survivors in the lifeboats, think long and hard about getting back on board another ship. If it is in your blood and you are destined to sail, by all means jump in the fray. Otherwise, a road trip to Disney-something or other may be best for you.

HABITS ARE NOT JUST FOR NUNS ANYMORE

Posted at 9:48 AM, Jan. 17, 2009

 Admit it. If you are amongst the "other" 50% of humanity, you've already blown off that New Year's resolution. If carrot sticks are still your snack of choice, or you continue to pop that nico-gum, then congratulations. There is only an 80% chance that you too, will drop off that well-intentioned, yet doomed to fail list of 2009 resolvers.

I can hear it now, "What a negative way to start a blog, Mike. Give it a rest."

Okay, fair enough. I'll get to the point. If 2008 was the time for rebuilding and redefining our real estate business, 2009 is the year of reckoning. "Work harder!" or "Work smarter," "Make a plan," or "Hold yourself accountable."

Does any of that sound familiar? As you read those phrases, do you get a shiver of inspiration up your spine? Are you ready to walk away from that computer and jump in the fray with both feet? Yes?

Of course not. I suppose if you were trying to make first string quarterback for the Packers or there was a Marine Corp drill sergeant spitting the words at your terrified face, then maybe something would click. Last time I checked in though, real estate agents are a lonely and sometimes quite docile breed. We arrive to work when we so desire, call our sphere when the mood strikes, attend public functions for a tasty plate of undercooked tri-tip  and woefully complain about how the foreclosure sales are killing the business. 

Wah, wah, wah!

"It's too hard," I've heard. "I can't find the time. My nail appointment gets in the way, or I need to spend quality time with my cat."

Alright, I don't hear that so much, but I have a good set of eyes. Some of you have developed bad habits that need to be broken. Equally important, you have not worked on starting good productive habits that will keep you and the kids fed. I don't know if he coined the phrase, but Michael Gerber, who wrote the E-Myth books says, "The difference between successful people and unsuccessful people is successful people  do the things unsuccessful people don't want to do."

Do the top producers in real estate love to jump out of that warm bed and make prospecting calls two hours a day? Do they tingle at the thought of weekly seller calls to discuss the pricing and explain why the house still hasn't sold after seven months? How about that data base? Does the daunting task of meticulous management for hundreds, or perhaps thousands of names cause them to take a long, loving look at their computerized address book and think, "You complete me?" 

It's been said (arguably) that it takes about 28 days to form a new habit and longer to break a bad one. 

I break that down to buy-in and time commitment. If you believe that daily calls to SOI, past clients and other new business sources will make a difference in your income this year, half of your battle is over. The next part is to accept the realization that you cannot  start calling one day and expect to keep it up over the long run. I have never seen that work. Ever.

Instead, view it like an exersize program or the need to lose weight. You must sit down and make a testimonial to yourself (written is the only way), and schedule the process. If you haphazardly go to the gym without any direction, you will keep that disturbingly dangerous heart rate. If you don't count calories or stick to a set food regimen, you shall remain flabby and perhaps become more so. 

It's time to look at the health of your business. Break down those activities that you must perform on a regular basis to make money and grow your real estate business. Block the time on a recurring basis and set that goal to never, ever miss. Should you slip up and skip a phone session or sleep in for a couple of days, don't stay off the wagon. Jump back  and work for that 28 days. Once you've made it, give yourself a treat. Maybe a half day off or a movie with popcorn. Immediately get started on the next 28 days. Repeat.

Unfortunately, it is not so simple as to read these words and all will be well. I strongly recommend you partner up with someone who will be tough on you and you could do the same for him/her. You may discover, that once you put your mind to this, that daily prospecting habit may be just as addicting as the cheddar potato chips or American Idol.

VERY PRIVATE LETTER EXPOSED HERE

Posted at 8:27 AM, Jan. 9, 2009

 I just received an e-mail from a good friend of mine, who happens to be in the real estate training business. She is based in Canada and the economic environment is headed in a southerly direction there also. She has always been very upbeat and positive, but this time I noted a slight bit of pessimism with her tone.

Well, her and I have enjoyed a mutual support relationship over the years, so I responded with something different than,"Hope you are well, keep on plugging away, hey, how are the kids, etc." 

Luckily (and that is an arguable word) I had just gulped a nice cup of Joe and felt inspired to pen a deeper reply. At the risk of getting thumped on the head by said friend, I thought it timely to reprint the mail in my blog, with hopes it can add perspective to a reader or two in real estate cyber land. Here it is, grammar flaws and all:

Hi Deb,

I've found that three years after the beginning of the worst real estate environment in history,  there are a lot of really tough agents, brokers and others out there. I am amazed how so many have stuck this out. It seems  each day brings a new foreclosure notice for some realtor/homeowner that I know, but still they persist. I conducted my annual "Kick them in the ass and roll forward or move aside" talk yesterday.

The "yawner" in the group was fixed on me--even my top producer seemed engaged. I had their undivided attention. If ever there were a time for re-energizing these people, this was it.

The way I see it Deb, 2009 brings in a whole new way to conduct a real estate business. With all of the price drops, foreclosures, short sales and other distressing situations, the agents have to put aside their preconceived notions of how to operate, and need to  learn the new tools. Not just those tired old Star Power scripts, outdated Craig Proctor methods or even some of the self serving programs that our big franchises offer (for a fee, of course).

I think it is much more than that. We need  to put aside our own fears and learn the human side of the buyers and sellers and also learn how the lenders work differently now. The agent of 2009 has to read the news, especially that which relates to housing, finance and social trends. This information needs to be packaged in a format that can be conveyed to clients, thus keeping them informed and also demonstrating the expertise of the agent. Communication skills need to be highly refined, not just "good enough," or "I know how to talk to my people." No that is not going to cut it this year. Agents have to be good speakers, have the ability to draft an intelligent e-mail and commit to a program of quick and personal responses, versus irritating auto reply messages that fool no one. Most importantly, those agents have to understand their own local marketplace, which include relevant statistics and their relationship to regional and national activity. The successful agent needs to get out there and talk. I mean, really get out there.Speak to as many people as possible. Talk about real estate, weather, the price of coffee, whatever. Just make sure that a card is handed out and a good professional (and calm) impression is made.

There will be a lot of property bought and sold this year, no matter how bad it gets. Lead generation is still crucial, but the old methods may need to be tweaked. Consumers are smarter by leaps and bounds. That is good--helps us out when we finally make contact. The problem is, we, as a combined group have not progressed so much. We don't understand many of the tools that are right in front of us. Your husband is a tradesman, right? If a new tool is introduced by his company and he is advised to learn how to use it in order to keep working, do you think he would put it aside and instead browse the internet or spend hours designing a worthless post card or "prospecting letter?"

Heck no. He knows that is his bread and butter and would hungrily pounce on the manual and become an expert.

Well, realtors are tradesmen too. The problem is, they don't take it so seriously. That is a tragic mistake, I find, at this economic juncture. Those who have the attitude of your husband have continued to make money and some have well exceeded their goals. They took a naturally good work ethic, smartened themselves up and jumped in head first. Seems to me, that is what we need to teach. "Change your attitude" first. The rest will follow.

You are great at teaching Deb, as well as a charismatic leader. If I were to offer any feedback for your current training agenda, it would be to teach the attitude. Start at the top (managers) and get them to set the example and teach it to their people. In the U.S. market, this crisis began in late 2005. At that time, my company owned a local market share of 26% and was the clear leader. As of year end 2008, we claim a 41.5% market share and sell more property than the # 2, 3, 4  and 5 ranked offices combined. I attribute that solely to the attitude of our agents. And it  starts at the top.

Don't mean to be so wordy this morning, but I'm in a reflective mood and just finished a nice cup of fresh brewed Starbucks. I hope you are staying warm and safe. I hope too, that you understand how much leverage you possess. There is nothing more important to your company than your training department. Nothing. Without that, they will suffer greatly. If they are the wise business people you say, I'm sure it's realized.

Have a great New Years Deb. Get out of bed though. :-)

Love ya'

--mike

P.S. I hate to say this, but I'm headed to the coast this weekend. It's supposed to be in the mid 60's and sunny.

CAN YAHOO SAVE US?

Posted at 8:09 AM, Jan. 5, 2009

 On this morning's Yahoo news headlines, there appeared an article, which read, "Hope For Home Buyers and Sellers in 2009." Within the clip were four or five reasons why it would be a good time to buy soon. Nothing that you and I haven't heard before--interest rates are good, inventory will drop, prices are plummeting, be-de-be-de-be-de, and so on. In fact, it appears the facts were lifted from one of the umpteen publications that are produced within our own trade.

IS THIS AN AWKWARD WEEK OR WHAT?

Posted at 7:51 AM, Dec. 29, 2008

 It's that tweener time of year. Yes, the obligatory week between Christmas and New Years. At this stage of the real estate game, almost everyone is in a struggle to make a living. Combine that with the once liberating life of self employment, and it can be downright scary at times.

In years past, the agents seemed to be in a state of focus during this week. Either focused away from the business and towards their families and the holidays or focused inwards to their business plan, which they excitedly laid out for my review. 

Not so much this year. Though, many in my office have had quite successful years, even those lucky folks look at 2009 with anguished concern, at best. Sure, there are some with great retirement incomes that sell real estate for supplemental income--those people may miss a Hawaii trip or new car this coming year. And of course, there are the eternal optimists, those select folks who have memorized much of 'The Secret' DVD or replay it constantly in their car CD player. According to them, if you think you will be successful, then you will. Maybe so, but the only thing I know for sure is that Rhonda Byrne and a host of other folks in the corporate world of 'The Secret' organization have made bank.

This blog has stated repeatedly that my office is full of doers and great business people who follow a plan and practice the habits which procure great results in this challenging market place. That is still true and I will state again that I am proud of my group.

But, let's also acknowledge and then confront the fear and uncertainty that exists. Here is the challenge--put on the planner hat. Take off the stressed out, gotta put bread on the table cap and get to work on your success map for the new year. This is a perfect week to do so. If you are bonding with your family right now, I will bow to that, but get to work next week. Do not delay, as  others will.  You want to be two or three steps ahead. It is well known that when an industry shrinks, so does its manpower. Usually the sales drop much quicker and this era is no exception. 

I urge you to be the one that makes a difference with your business and get to work. If you are unsure where to start, link to the following article--simple as one two three, with a bit of adage in there for good measure. success article  

"Come on Mike, I don't need a cheerleader, I need some business," you may say. "Give me something to work with."

There is the real secret. Work. Not awkward, tweener, gaze at the computer and wonder what to do next work, but smart planning, work ON your business, then show up every day early to execute, damn the negative downer people type of labor. 

I plan to be one of the group that remains and comes out of this stronger than before. What about you?

WHAT DOES ELVIS HAVE TO DO WITH REAL ESTATE?

Posted at 8:25 AM, Dec. 20, 2008

 Elvis could sing. Tiger Woods swings a mean 9-iron. No doubt, Mr. Obama can deliver a stirring speech. And if you are a Brit named Joanne (J.K.) Rowling, you can sure scribble a good story.

What is the common thread here?

Each of these high profile people started out as a crying, projectile vomiting newborn, then transited to a wobbly toddler, insecure teen and finally an over achieving success. 

So what happened? How did they get to where they are today?

If I was a gel-haired, man-scaped motivational speaker, with a cloudy goal of peddling my books, leather monogrammed day planners and canned inspirational wisdom, I’d tell you it was their fire and fury that was stirred. I would mention that each received coaching (which of course, I could sell to you), and they were called to action by some key person in their life (like me, right?) and sign here—don’t forget your credit card expiration date—Ka-ching! Ka-ching! Ka-ching!

No, no, no. As Marcus Buckingham and Donald Clifton discuss in their best seller, “Now, Discover Your Strengths,” (For the record I do not profit from that book), high achievers recognize something in themselves and then act on it. Over and over.

What do they recognize?

Talent.

“But Mike,” you say. “I don’t have that kind of talent. I can’t sink a 25-foot putt or croon “Love Me Tender. And I can barely get an e-mail off, let alone draft a best seller.”

Don’t miss the point. Each of us has a number of talents. Are you a good organizer? Do you have the gift of gab? Are you the person that ends up writing the family newsletter each year? Do you often find yourself in charge of the annual summer BBQ?

Who gets all the phone calls from distressed family members and friends? Is it you? Is it because you are a good listener?

Each of those examples describes an important strength that is common in successful realtors. Organizer, leader, good communicator, empathetic.

I doubt that Elvis Presley was born with a microphone in his hand or that Tiger cut his teeth on a putter. Yes, others likely encouraged them early on, as their respective talents were so obvious. On the other hand, there are a number of business people, artists and yes, even real estate salespeople who have figured out, at a later age, just what they are really good at and how to apply it to their business. These are the top producers whom I know. They do not dwell on their weak areas—in fact they figure out quickly, just how to manage around them. Often times their strengths overshadow those areas that are not so easy to overcome. A great verbal presentation can surely overcome the lack of wordy seller handbooks or Power Point slide shows.

What are you good at? How can you work that in to your business?

SEE THE DIFFERENCE?

Posted at 8:13 AM, Dec. 19, 2008

 Yesterday, I opened two Christmas cards. Both were from vendors. 

The first came from a local title company, which we do much business with. Pasted on the bulk-stamped envelope was a standard mailing label with my name and the brokerage typed in standard Arial font. The card was emblazoned with "HAPPY HOLIDAYS" and a Santa picture. I opened it to see a crooked stamp image of said company's logo and a quickly scribbled signature from each of the employees that were lucky enough to still have a job there. I put the card in my assistant's "IN" box and he knew to pin it to the bulletin board with the rest of the vendor cards.

The other card was sent by a home warranty rep, and looked somewhat different. The envelope was hand written and addressed to me. There was a real stamp for postage. The card was a simple, yet inviting snow scene. I opened it up and there was no preprinted message. Only a short penned note that said, Mike, it has been a pleasure to know you and I wish you much happiness and success for 2009. Hope you and your children are well this Christmas. Warm regards, ___________

Now I'm not such a sentimental guy, but I re-read the card. This woman must have written hundreds of these notes, as she works with many brokers and agents in our market area. It must have taken many hours and lots of hand cramps to finish. I wonder, after she completed the final mailing--does she think it was worth the effort?

Well, I am the managing broker for the # 1 office (by closed sides) in the county. I placed the card upright on my desk, where it sits positioned between the other personal cards I have received this year. Besides, the bulletin board is full.

Get the point?

WHY BLOG?

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 Recently at lunch, a friend asked why I bother to write a blog. After a short volley of debate that began with the advantages of Google rankings and then ended with, "So, has it made you  money?" I started to question it myself. As my friend pointed out, many of the "bloggers" on Active Rain and other sites simply copy and paste other people's material, post up canned market reports or even slap on MLS listings in an attempt to show their sellers how much "reach" they have. 

"What's your point?" I finally asked, in an exasperated attempt to get back to my sandwich.

"Well Mike, you actually write the thing yourself. Doesn't that take a lot of time? And for what? So  a few people from New Jersey or Idaho can write a 25 point comment and stroke your ego?"

OK, not only was I famished, now I was getting irritated. The real estate profession finally has a great online site where professionals with similar goals and interests can safely network and share great information. If I feel down about the market in Paradise, California, I can write my contact in Paradise, Florida, so we can share anguish. How great is that?

The tirade did not impress my friend. If I was to finish lunch, I needed a new strategy. So I let her talk a bit, while I quickly gobbled my food. Soon the subjects changed to the weather, Christmas shopping, running a busy brokerage and my inept ability at dating. Blah, blah, blah.

Finally I finished the last bite and swigged my final gulp of diet cola. I waited for my lunch date to finish her story about those nine years as a football widow and how she will never again serve nachos in her white carpeted living room and who do us men think we are, anyhow? 

Finally, a pause. I made eye contact and waited a few seconds. I wanted to be sure we were engaged in two way conversation.

"Denise (not her real name), you don't get it. I wake up in the morning and my brain is whirring about the upcoming day. I think about the market, my new agents, the budget, the pesky franchise report which is due and the disappointing lack of enthusiasm that is creeping in to our agent population. I also ponder all of the rich opportunities that lie before us and the exciting changes that are happening right now. It's a really great time to be in this business."

"About once a week, I take the time to write down my feelings. I then post them on several sites, including Broker Agent Social, Active Rain and Facebook. Sure, it feels good to get feedback, but mainly I have an outlet to release my feelings and get on with the week. Sometimes, in the process of writing my blog, I will have a new idea or revelation. I'd like to say that you and I could have lunch and conversation to make the same thing happen, but we're both too close to it. In short, this is my weekly real estate counseling session. Doesn't cost me a dime."

"Hey, if it works for you," was the reply, as we pushed back our chairs and stood up to leave.

I think I'll eat by myself tomorrow.

LEAN, MEAN BROKERAGE MACHINE

Posted at 6:55 AM, Dec. 19, 2008

 2008 has brought the traditional brokerage models to their knees. I'm not just speaking of the long timers like C21, Coldwell Banker and Prudential. Included in the group are those pseudo-modern "agent friendly" systems like Remax, Realty Executives and Keller Williams. WIth rare exceptions, each of these offices have had the challenge of lower and lower revenues coming through and higher and higher expectations on the part of the agents who are obviously the lifeblood. 

If you have ever been recruited (who hasn't been, right?), you have met under the cloak of secrecy at the cross town Starbucks, or if you are a top producer, there may have been a meal thrown in at The Olive Garden or such. That meeting was the culmination in a nonstop barrage of e-post cards, voice messages and secret notes passed during the MLS meeting. "We have the goods!" you may have heard.

Better training, better splits, sexier reception areas, very cool national website. We'll teach you the secrets of success, coach you to the path of the millionaire lifestyle, send you (at your expense--woops, I forgot to mention...) to annual events that feature awards, motivational speakers and a BBQ--all under the guise of our real estate "family."

I don't put any of that down. After all, I recruit heavily and certainly will point out the reasons that you should work for my brokerage. And yes, I've had plenty of House Blend coffee, (leave room for cream), and franchise restaurant pasta during those efforts. Certainly we have signed on some excellent agents in the process.

So now what? Volume is down, agents are struggling and their big brown eyes look at me for that guidance which I promised. "Just get to work," "Show up." and "Let's get back to basics," will only carry so many sales meetings. This is serious--what to do?

Fortunately for our profession, there are a lot of smart Joes and Jills out there. Most sit right under our noses, as does the answer to the crisis that lies before us. 

Many of these thinkers have never sold a lick of property in their lives. In fact, they don't work in the real estate business at all. They do however, preach a common message. "It's all about the customer. Base your operations around that person's needs, dreams and emotions. Every piece of marketing, every single conversation, each contact should give back something of value, whether it be knowledge, enlightenment or a means to help them with their problem."

What about the concept of great splits and the agent friendly environment or the quarterly agent breakfast shindigs? 

Recently I spent some alone time to analyze each of the roles of a responsible brokerage. The list included all functions of the general office, as well as my own actions. Out of the hundred or so concrete items, there were only a few that I felt really made a difference to the success or failure of a real estate agent. Those picks are (1) relevant training, (2) coaching and accountability, (3) assistance with an individualized business plan, (4) my availability on a daily basis--whether it be for negotiation advice or dealing with a client situation, (5) the strength of our local and national brand. That is it and it is in that order that I prioritize their importance. Nowhere on the list were items like "provide floor time to agents that simply wait for the business to arrive," or "spend oodles of time with agents that are junkies of technology, yet are terrified to actually pick up the phone to talk to a real person," or to waste more time trying to turn an orange in to an apple. It is time to recognize ability and motivation (or the lack thereof) and deal with it. Clients expect no less.

Yes agents, you can expect the average brokerage will do it's best to maintain and improve those agent services that will make a difference. After all, your success is mine. On the other hand, it is time to reconsider irrelevant or outdated procedures and perks. In these tough times, the toughest companies get tougher. Each agent is her own company and most have made adjustments to become more efficient and must focus on the one and only person that will make or break your business. The client. 

If you think you know a lot about the business, learn more. You will never understand enough about the marketplace, staging, pricing, negotiation and marketing a home. Demonstrate that thirst for knowledge as a benefit to your future customer. It is no longer all about you. Just as your success directly impacts mine, so does the client(s) to you.

It's a whole new atmosphere out there, which frankly I find refreshing.

TASTY WORDS FOR THE HUNGRY AGENT

Posted at 6:55 AM, Dec. 19, 2008

 This season of meal planning and food gorging has not only created a perma-hunger in my belly, but also brings light to our work patterns. Let me explain.

Recently I published a blog on the art of prospecting, or lack thereof. “Blah, blah, blah,” but often times it is so easy to get distracted by more fun, yet non-productive activities that coincidentally use the same tools which we prospect with. Notably the computer.

It is so easy to stray away from our database—into the world of Twitter, Facebook or even Active Rain. Sometimes that turn is for good—after all, to keep up with that Internet community is a good thing, right? We make valuable contacts, learn and share ideas, etc. No argument there.

So, it is 10:30 A.M. You started your day at 8:15. You have not gotten past those great threads on the Internet. You know, the ones that express opinions and comments on all-important subjects like politics, holiday travel and Sarah Palin’s return to private life.

One of the comments received on my afore mentioned blog said, “Hey Mike I just finished my "Dialing for Dollars" prospecting for the day. I force myself not to get into the rain till it's done. I so look forward to playing in the rain so it like a bonus for me.”

Reminds me of a line spoken by Sean Connery in the movie, Finding Forrester. Connery was a legendary author, working to produce his last novel. He said, that he reads the New York Times for dinner, but reads the National Enquirer for dessert.

Brilliant food analogy. Fitting for the season and the issue.

Most of our mamas told us that we must finish dinner, or no dessert. Sugar to a ten-year-old is mighty important, so I always tried to comply. A couple of sessions watching my younger brothers munching peach cobbler, while I moped on the couch, eying my unfinished peas did not sit well. I soon learned to make the super-human effort to choke down those last few bites of mushy greens.

I wanted that dessert.

Eventually I began to approach the meal with a plan. Eat the veggies first to get them out of the way. Next move on to the potatoes and rotate bites with the chicken or pot roast. Worked like a charm.

Phone calls, hand written cards, well written e-mails and getting out there to make live contacts with your SOI can be akin to those overcooked vegetables. You may not want to carry through, but once it is done, you feel better and you will definitely have a healthier business.

Active rain and all of those other sites are wonderful and important, but they are really just dessert. At this moment I am enjoying my sweets immensely. It allows me to feel good that dinner is out of the way and I have filled my business with the good stuff that makes it strong and vibrant. If you are reading this, I would ask…Did you finish your veggies?

But of course, there is the concept of the backwards dinner—dessert first. Once in a while that’s OK too.

OUR REPUTATION

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 House cleaners, receptionists, waitresses and even car washers. Nothing wrong with making your living that way, but those are all positions held by formerly successful real estate agents I know. These are tough times to eke out a living and though people like me will always say to cowboy up and get to work, sometimes the commissions don't come.

That is not my point today though. The problems I see are the part time agents that still take business in spite of their second jobs. While I don't begrdge anyone for the opportunity to make money in this economy, the result to our industry is devastating. If we didn't have enough image problems, now there are a great deal of buyers and sellers that think we are part timers and this is not a "real job." Though the viewpoint is likely only shared by the clients of those afore mentioned part timers, it is my opinion that such meek performance that is sometimes produced by these on again, off again agents further puts us in a bad light.

Don't get me wrong, there are also some stellar examples of part timers who show up the old pros--especially those "pros" that have been in the business one year, 25 times over (Old expression, but appropriate). I am hopeful however, that one of the very few positives in this market is to purify the profession and keep the strong standing and send the unqualified agents to a field that better suits their talent. Unfortunately that has not been the case just yet. Meantime, I say cowboy up and start talking to people about real estate.