The perfect place to come to ask questions about real estate education or if looking at improving you skills in order to survive and thrive in your market.
I have had a slew of interesting questions coming to me from people taking my continuing education
corrrespondence courses this past month. By far the most asked question coming from relatively new Realtors is
basically..."I didn't have to know this material when I got in my license X(years or months, you put in the number but make it less than 2 years) so why do I have to learn it now? Will
this help me to start making sales again?"
Reality is many who got their real estate license over the past couple of years did not have to learn the
skills that many of us learned in the beginning. Now in a tightening marketplace the newcomers are starting to understand
that in order to be successful in the current marketplace, they must upgrade their knowledge and skills.
What do you believe are some of the skills that you need to be successful in your marketplace?
It's baacck! That's right, walking your neighborhood "farm" area is back and just as successful as
it was in the past! You may have thought that fancy brochures or e-mail campaigns or refusing to practice the art of
farming (that is; choosing a neighborhood and working to develop a rapport with those that live within that area by
walking through the area and knocking on the doors of those who live there and introducing yourself and letting them know
that you are the expert in that area so if they know of anyone who wants to buy or sell in that are you are the one to
call...whew, more on the "how tos" in the next post) was dead, or a thing of the past. We were all
wrong!
As "high tech" as we are in this business, it is the "high touch" aspect that keeps us successful in the
practice of real estate. More and more REALTORS are finding out in order to be competitive in today's marketplace -- no
matter what your market may be -- they must adopt new (or old) techniques to connect with people who want to buy or sell
real estate; high touch techniques.
Next time we'll talk about how to set up and cultivate "farms" to insure that they will be
successful.
Are you happy with what you are doing? Do you want to make more money? Do you want less stress? Do you want
to improve your day-to-day organization in real estate?
It is possible. It will take a little time; maybe a lot. It will take some money; maybe more than a little.
It will mean a commitment of time and energy on your part - and most probably lots of it. More importantly it will mean
you will have to make changes in the way you do business.
With that last statement I may have lost you. Not a single person likes that word; change (or it is the
rare person who says they like it, but I don't know if I trust that they really like change).Why?
Because change never means just one minor small change. Change usually means lots of changes; small, medium, and large and
a lot of effort to break old habits.
If by some miracle you are still with me, I want you to sit down and write what you sincerely enjoy about
what you do on the left hand side of a piece of paper. Be honest. Take your time.
On the right hand side I want you to write what you don't like, what you have trouble with, what you need
help with, what you want to improve on.
Next you need to find someone who can help you. In real estate that can mean many things from sitting down
with your broker and asking them for their help and advise, asking a more experienced and successful agent for their help,
to hiring a "personal coach." But moving forward and working on getting that "right hand side" of the list changed so
that they move to the "left hand side" of the list, is a must if you want to start enjoying real estate and making the
money your efforts deserve.
If you are still with me; congratulations! Go ahead. Try changing. You just may like the results.
I believe that it is vital that we help buyers find a responsible mortgage lender with a mortgage product that fits their wants and needs, prior to looking for a home. No, we are not mortgage experts, however we can make sure they they get off on the right foot. Here's how.
First, ask them to put together a realistic budget. Both yearly and monthly. What are the expenses they have today? For utilities, car payments, student loans, credit cards, savings etc? Ask them to put down everything that they spend or are anticipating to spend each month and throughout the coming year.
Have them look at how much cash they have readily available for a down payment and for closing costs? How much extra cash might they have for moving expenses, for the expenses that a new home or property may cost (interior painting, new drapes, carpet cleaning, new appliances etc)
What are they currently paying for a monthly house payment or rental payment? Is it comfortable? What can they realistically budget for a house payment and still be able to pay their other bills, including the different house costs that they will have for the new property (utility costs etc)
OK. Now they are ready to start shopping. Give them a generic mortgage application and ask them to fill it out in preparation for their visits; ask them to make a copy for each lender. Have them visit no less than three companies which offer mortgages in your area. Make sure that if they visit an Internet lender, that they also visit at least 2 “brick and motor” lenders in your area!
Have them ask these questions and have them get whatever they are told in writing! a) What types of loans are available? b) Considering their monthly income and monthly debts, what is the anticipated monthly payment that they can afford per the lender’s criteria under the various loan types for which they are qualified? What does your monthly payment include (principle, interest, taxes and mortgage insurance)? c) How long does the entire process take from application through closing? d) Do these loans have an adjustable rate or a fixed rate? If adjustable, how much can they adjust over what period of time? Can the adjustable rate be changed to a fixed rate; if so when and how and what will it cost? Make sure they obtain a “Good Faith Estimate” on each of the loans for which the lender says they are qualified!
Have them go back home and look over the information that they have been given. Look at the monthly payments, the cash required for down payments, and closing costs and compare that to the budget they put together earlier.
Working with you, make sure that they understand the current market conditions and who is typically paying for which closing costs; as well as the entire process from viewing properties to making an offer to and through closing.
We are the experts in real estate. Buyers are tyring to find their way through this crazy market. Be there to help them and they will be clients for life.
Grrrrrr every time I see or hear a story on the media that trashes mortgage lenders as a whole and completely exonerates the people who got themselves into crazy loans, I want to scream! I grant you some lenders do prey upon unsuspecting home buyers who could not buy a home other than through predatory lending practices; however, by far the majority of homeowners who are feeling squeezed got themselves into home loans that did not realistically meet their family's budget.
So...what should they do now:
Get on a realistic budget
Look to refinance to a more conventional fixed rate loan
Sell the house if you can't afford it.
Now, those folks that are preying on unsuspecting home buyers? String them up by their toes (in a manner of speaking!) Understand; I believe that it is our moral responsibility to assist home buyers by explaining the various of financing options and help them understand when looking at a mortgage and the payment, that they must consider it in light of their realistic monthly budget.
Interest rates are a heck of lot less today, than I went into the business in 1982 -- they were over 16% at that time. Housing prices have skyrocketed for most of the US. Interest rates on home loans are comparatively reasonable and choices for housing must be made with a reasoned discussion of all the facts.
We know that real estate is a long term investment in their family and their family's future. Please help home buyers and sellers to see the reality again.
I was just interviewed for a segment of a program that will appear tomorrow (08/12/07) morning on FOX News Fox and Friends; the subject, helping home owners who find themselves upside down in regards to their home loan. I was able fairly quickly to go through some basic must dos with the reporter-- the reason? It was not that long ago (mid 1980's) when I was helping clients find ways to get on the right track, when our market went upside down.
It is time we all brush off our skills from the time the market was not as healthy as it has been, or get the skills necessary to help counsel home owners on their options when they start to run into trouble making payments.
Here are the basics I relayed to the reporter:
First - start some serious budgeting…RIGHT NOW. Look at what you spend and where it goes on a monthly basis; everything from the monthly payment to heat and lights, to other utilities and taxes, groceries, education, car payments, incidentals, discretionary purchases etc. What are your balances on your credit cards? Cut back or reduce expenses now. Get rid of credit cards! Banks, mortgage companies, credit card companies not only look at if payments are made on time (on the due date, not within the month they are due); they also note every single time a payment is late (not paid on the date due).
If you are in other than a fixed rate mortgage, find an institution to refinance your mortgage NOW. It is possible if you have high balances on your credit cards that the bank/mortgage companies will want to pay off those balances or at least somehow consolidate them. Fine – credit cards are too easy of a way to get yourself extended – fewer cards are better.
If you cannot dramatically adjust your budget and/or cannot refinance with a mortgage payment that you can live with within your new budget, then you should sell the home and move into another home where you are going to have to rent until you repair your credit rating and obtain enough money for a reasonable down payment for the future. At this point the current and future financial health of the family might only be saved if you get out from under this loan.
If you cannot sell your home after refinancing it, can you rent it out and then move into a smaller property you rent until you are either able to move back into your home or sell it?
From now on: live within the budget, buy only things that you can afford, pay bills on the date due. Pay by cash, not credit cards. Put aside at least 10% of your gross income every month into a savings account that you do not touch! It is time to get a grip on your financial situation and do what needs to be done to help nurse your finances into good health.
In the middle of putting the finishing touches on a couple of continuing education courses I will be giving soon...it hit me...no one "teaches" new (or old) REALTORS® how to responsibly, professionally counsel buyers, sellers, tenants, or landlords about how to achieve their real estate goals, and your role in helping to achieve those goals! Amazing!
I was lucky enough to learn from the very first moment I when to work with my Broker, how and why to ask questions in order to really understand my customer's or my client's wants and needs, and how they wanted me to help them meet their goals in real estate.
I know from experience how important counselling is to being successful.
Do you enjoy using tehcnologly? Such as a smart phone or a lap top, transaction management systems or single property websites, to meet the needs of your customers or clients? Have you thought about whether or not a Blog may be right for you, but are unsure how it will get you more business? You might want to consider attending one of the RE Connect Conferences by Inman; there are two a year, one in New York City in the early spring, and the other usually in late July or early August in San Francisco.
I just came back from the San Francisco Conference, which I attended on behalf of the National Association of REALTORS®. This was my first time attending; should not have been as I am one of those crazy people who is close to the "bleeding edge "when it comes to tech stuff. I can assure you now, this will not be the only time I attend this Conference.
For more information on the Conference, go to http://inman.com. There you will be able to find out more about the RE Connect Conferences and maybe you will get excited about going to the one nearest you!
More on what I saw and learned in later posts!
What types of technology (software or hardware are you most curious about, maybe afraid to try or unwilling to spend the money on something just yet? Let me know!
I am proud to say that I have been a REALTOR for a very long time. I have worked through seller's markets and buyer's markets and everything in between. I truly believe that no matter what market you are in, the public needs professional REALTORS to help them achieve their goals; whether buying, selling, leasing or managing.
Real estate has become more complicated, not just paper intensive, since I first went into the business. No matter what the market, these are 3 of the skills you must bring to the table to be successful:
You must truly want to help people, not just yourself, obtain their real estate goals. If you keep your eye on helping people achieve their goals, magically you will achieve yours.
You must bring value to the transaction! Sit for 5 minutes, and off the top of your head, write down what you truly believe you bring to the transaction that matters! If you can't write at least 5 things that add value to what the person is trying to achieve, then it is time for you to evaluate why you are in the business and what you need to change or do to become successful.
You must be obsessed with becoming better educated to be more valuable to your clients.
Communication is a key to success! Early and often and then even more often, must be your mantra!
Take a moment to assess your skills to determine what you need to improve to be more valuable to your clients and customers which will ultimately make you more successful and happier in your chosen profession.
What can you do to get that great listing? There is more competition (both in property for sale and in REALTORS) than in the past couple of years, there are lots of fancy presentations everyone is going to show those sellers. But, what is really going to get you that listing? The answer is, before you whip out your laptop and fancy presentation or tell them what they need to do to sell their house or, tell them the price that they need to put on their house.... make sure you ask the right questions up front! Prepare the seller and prepare yourself for a successful relationship by starting with these questions of the seller!
How many homes have you bought and sold before? What was that selling experience like? When was it? Please, walk me though that process from beginning to end.
How did that work for you? (You want to know the goods and the bads!)
Do you know how it works in this market? (Explain concentrating on what they have told you about their past experiences. If they have never sold a home before, make sure that you go through the process, from beginning to end in a complete, but simplified format)
What do you want to accomplish in the sale of this property? (It is never just about the price!)
Seemingly simple questions? Maybe; but the answers will reveal to you what sellers want and need from you in the sale of this property and what you need to coach them on to get the listing and more importantly to get that property sold!!
Try them and see if they don't improve your success rate as well as start your relationship with the seller out on the right foot!
If you have been in residential real estate for a while (or you are new to the business), you assume that you know what questions to ask a buyer you are working with for the first time. Right? Not necessarily so!
Many buyers that I have interviewed, tell me that the agent (licensee) when they first started working with them by-passed the questions they thought they should be asked first, and went straight into showing them homes!
Let me give you some of the questions they all said that they expected and wanted to be asked!
Do you own a home now? Or, have you ever owned a home? If so how many?
If you have owned a home/s, what was the process like? (aks them questions o you can understand it from beginning to the end)
How did that work for you? (You want to know the goods and the bads!)
Do you know how it works here? (Explain concentrating on what they have told you about their past experiences. If they have never owned a home before, make sure that you go through the process, from beginning to end in a complete, but simplified format)
Do you know what our current market is like? (Be through, but don't speak jargon!)
Sometimes we need to remember that the basics are a good place to start when we are first working with a buyer.
Add these questions to those you may already be asking and see if they help you and the buyer/s, to work together better and more effectively.
Lenders and mortgage brokers cannot be forgotten when it comes to education.
Responsible lending that allows a lender or mortgage broker to increase income and personal effectiveness is important as is education of the consumer.
Responsible lenders play a vital role in helping families achieve homeownership, but consumers need to make sure they are not dealing with a predatory lender.
REALTORS and lenders alike have to avoid predatory lending through education of the consumers and those within our industries.
The world of real estate is moving fast and furiously. There are people who want to get into the business and be successful. There are people who are in the business and need and want to learn the habits and skills to improve their business. This is the perfect place to start.
If you are working on passing your real estate exam, working on post or continuing education, or working on upgrading your license, and you have questions, please ask! Or, if you are looking for the skills to help you be a success in real estate's changing market, this is also the place to ask questions and get information!
We are here to provide you with the information and assistance that you need to be a success in real estate!
Let us know what questions you have on the Blog, or e-mail us at peggyann@gci.net.
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