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Real Estate, financial education and much more.
Blog by PeggyAnn McConnochie
Juneau, Alaska
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Real Estate, financial education and much more.May 2008
May. 26, 2008
Categorized in: Welcome to my Blog!
Tagged with: improving skills
Happy Memorial Day!
The old saying “you never get a second chance to make a first impression” is especially true when you meet a potential new client. It is more than the tenor of your voice, how you dress, what type of car you drive, or how your office is decorated. Those things are important to various degrees depending on where you work and the type of real estate you practice; but what is the first thing that you do? Do you tell them about you and your company? Do you launch into a description of the property they called on? Or, do you ask them about what they want and what they need out of your relationship – that is what someone who wants to be the “trusted advisor” would choose.
Asking the right questions and listening carefully to their answers is how you make a great first impression.
If you are going to show a potential client that you are not the average agent, start with letting them know, that you first want to meet them at your office. No; every buyer is not going to say “if you won’t show us the property, then we are going to find another agent.” Most will simply say OK and then you set the appointment.
Prior to coming into the office let’s get a couple of things organized:
· Your office space, desk area, and desk top needs to be clear and clean with a comfortable place for the potential client to sit.
· It needs to be a place that if you move to confidential questions, the client can feel their privacy is protected
· You need to make sure that during the meeting your phone, cell phone etc is turned off. If your computer is on, the volume needs to be off as well. The potential client needs to see that they are the focus of your attention and they are not competing for you with the phone, cell phone or computer.
· Make sure that the receptionist knows that when the potential client gets there, you are not to be disturbed.
· Gather the printed materials you might need, such as applicable company and personal brochures, your business cards, agency and/or property disclosure forms, buyer contracts, listing information packets etc.
· Have a file folder with note pad ready for taking notes and filing applicable paper.
I like to suggest that REALTORS® think back to the first time they met their lawyer or CPA; professions who are often looked at as “trusted advisors.”
Now, when they come into the office go to greet them as appropriate and bring them to your office space. Offer them a seat, maybe a cup of coffee, tea or water. Thank them for coming in, and now you are ready to start.
I have written in another post the questions to ask a seller and the questions to ask a buyer; but here they are again:
For the potential 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!)
For the potential buyer:
· 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? (ask 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!)
After you have carefully asked these questions, and asked additional questions based on previous answers, and listened with care; it is time for you to tell them what you will do for them in light of the answers they have just given. (Don’t forget your required agency disclosures!)
It is time for you to use what you came up with from last week’s post; let them know what meaning and value you provide to your clients. Give them the specifics of what you do for your clients; give them why they should use you as their REALTOR®. Talk about your role as their “trusted advisor” and how that benefits them (keeping in mind the answers to the questions you just asked).
This needs to be in writing as well as verbal.
I let them know during our conversation that the decision rights go to them; not me. And I am accountable to them as my client. Most people do not understand what the “client relationship” is all about. I help them to understand my role and how I meet and exceed all requirements in my efforts to be their ‘trusted advisor.”
Next week...proving you have a great reputation!
May. 19, 2008
Categorized in: Welcome to my Blog!
The National Association of REALTORS® (NAR) researches many aspects of real estate. One of the areas they monitor is the ever changing needs and wants of the public when it comes to what they look for in a REALTOR®. Since the beginning of 2008, the public has reordered what they want from us. They have now told NAR loud and clear that they want to work with those that have a 1) professional reputation, and a 2) deep knowledge of the marketplace. Little wonder with all the negative news in the press and elsewhere about the “softening economy,” the problems in many housing markets, foreclosures, and corporate scandals to name just a few.
The long term trends from that research also tell NAR that all generations, both in the US and international clients, want everything about real estate now, immediately. Of course how they want to receive that information may vary depending on their generation and cultural background.
Many in our industry already know that depending on the generation and cultural background of the client, depending on the use of technology by that client, and depending on their personal wants and needs, the answer to the question on how they want to receive information can vary widely. That is why you need to look at the market or markets in which you want to operate and decide how and if you can meet their wants and needs.
Everyone has easy access today to a flood of information on real estate and the economy; from the Internet, from the mail, from all news sources, from magazines, from HGTV, from Blogs, from social networking sites, from their friends at back yard BBQs, and from their neighbors at the grocery store to name just a few. They know the information they receive is not all correct. What and who can they believe when they have a real estate question?
The answer is…their “trusted advisor.”
So…how do you establish yourself as “the trusted advisor?”
Start with defining the specifics of what you do and what separates you from the rest of the pack. Take some quiet time and really think it through. This has to become your “raison d’être,” your reason for being, your cause. Clients want to know what is your “value proposition” – what do you bring to the table?
You can look at it as fixing something that is wrong i.e. someone wants to successfully sell their home and they can’t, or someone wants to successfully buy a home but they are confused, or someone wants to maximize the income for a property they own and want managed in a slow rental market. Or you can look at your career as something you do because you believe in the right to own, use, and transfer real property. You might consider it “service above self;” Rotary’s slogan. (Please say more than - it is a great way to meet people make money.)
Whatever you identify, it must give your career meaning and value; for you and for your clients.
There are new trends we might use to interact with clients, both new and old; 1) e-mail; 2) websites; 3) individual property websites; 4) Newsletters both paper and/or electronic; 5) Blogs; 6) Social networking sites, to name just a few. However, just because you have a website or an e-mail address or even a Blog, does that mean that someone will trust what you say? No.
It is more how your clients use various methods of communication coupled with how you use the various means communication that makes the difference.
It is also about what you are willing to do to become the knowledgeable expert within your marketplace. You need to go out and get the facts and information that makes you the expert. And then you need to keep current on that information.
Does it take time and mean that you have to do some research? Absolutely; but it is worth it.
For example: What has sold or leased each quarter in each category in each of the past 5 years? How does that compare to the sales price or listed lease price? How many properties are on the market for sale or lease today? What is the average marketing time today for each category of property and how does that compare to properties on the market the last 5 years?
What is your economy based on? What are the trends in the unemployment rate? Are people moving in, or out, or is it stable? What has your economy been like for the past 5 years; year over year? What is it like today? What is happening today that may influence it in the coming years? These are not all the questions you need to have answers to; but it is a start.
You not only have to be educated on the market, you need to continue to educate yourself by taking advantage of the professional REALTOR® courses given within your area and on-line. Start with GRI, the “college level” REALTOR® courses that will be the base for your career and don’t stop: move to the e-PRO courses, and then to CRS, CRB, ABR, SRES, IREM, CCIM and on and on or wherever your career goals and interests take you.
That is enough for today. Sit and think about the answers to these questions. Next week we move to defining your role, the keys to establishing a great reputation, and adopting the habits and skills of the “trusted real estate advisor.”
Take care!
The National Association of REALTORS® (NAR) researches many aspects of real estate. One of the areas they monitor is the ever changing needs and wants of the public when it comes to what they look for in a REALTOR®. Since the beginning of 2008, the public has reordered what they want from us. They have now told NAR loud and clear that they want to work with those that have a 1) professional reputation, and a 2) deep knowledge of the marketplace. Little wonder with all the negative news in the press and elsewhere about the “softening economy,” the problems in many housing markets, foreclosures, and corporate scandals to name just a few.
The long term trends from that research also tell NAR that all generations, both in the US and international clients, want everything about real estate now, immediately. Of course how they want to receive that information may vary depending on their generation and cultural background.
Many in our industry already know that depending on the generation and cultural background of the client, depending on the use of technology by that client, and depending on their personal wants and needs, the answer to the question on how they want to receive information can vary widely. That is why you need to look at the market or markets in which you want to operate and decide how and if you can meet their wants and needs.
Everyone has easy access today to a flood of information on real estate and the economy; from the Internet, from the mail, from all news sources, from magazines, from HGTV, from Blogs, from social networking sites, from their friends at back yard BBQs, and from their neighbors at the grocery store to name just a few. They know the information they receive is not all correct. What and who can they believe when they have a real estate question?
The answer is…their “trusted advisor.”
So…how do you establish yourself as “the trusted advisor?”
Start with defining the specifics of what you do and what separates you from the rest of the pack. Take some quiet time and really think it through. This has to become your “raison d’être,” your reason for being, your cause. Clients want to know what is your “value proposition” – what do you bring to the table?
You can look at it as fixing something that is wrong i.e. someone wants to successfully sell their home and they can’t, or someone wants to successfully buy a home but they are confused, or someone wants to maximize the income for a property they own and want managed in a slow rental market. Or you can look at your career as something you do because you believe in the right to own, use, and transfer real property. You might consider it “service above self;” Rotary’s slogan. (Please say more than - it is a great way to meet people make money.)
Whatever you identify, it must give your career meaning and value; for you and for your clients.
There are new trends we might use to interact with clients, both new and old; 1) e-mail; 2) websites; 3) individual property websites; 4) Newsletters both paper and/or electronic; 5) Blogs; 6) Social networking sites, to name just a few. However, just because you have a website or an e-mail address or even a Blog, does that mean that someone will trust what you say? No.
It is more how your clients use various methods of communication coupled with how you use the various means communication that makes the difference.
It is also about what you are willing to do to become the knowledgeable expert within your marketplace. You need to go out and get the facts and information that makes you the expert. And then you need to keep current on that information.
Does it take time and mean that you have to do some research? Absolutely; but it is worth it.
For example: What has sold or leased each quarter in each category in each of the past 5 years? How does that compare to the sales price or listed lease price? How many properties are on the market for sale or lease today? What is the average marketing time today for each category of property and how does that compare to properties on the market the last 5 years?
What is your economy based on? What are the trends in the unemployment rate? Are people moving in, or out, or is it stable? What has your economy been like for the past 5 years; year over year? What is it like today? What is happening today that may influence it in the coming years? These are not all the questions you need to have answers to; but it is a start.
You not only have to be educated on the market, you need to continue to educate yourself by taking advantage of the professional REALTOR® courses given within your area and on-line. Start with GRI, the “college level” REALTOR® courses that will be the base for your career and don’t stop: move to the e-PRO courses, and then to CRS, CRB, ABR, SRES, IREM, CCIM and on and on or wherever your career goals and interests take you.
That is enough for today. Sit and think about the answers to these questions. Next week we move to defining your role, the keys to establishing a great reputation, and adopting the habits and skills of the “trusted real estate advisor.”
Take care!
May. 11, 2008
Categorized in: Welcome to my Blog!
A recent post by Donna Yates, a Georgia REALTOR® was right on! She understands that another element of putting a potential (and that is the key word, potential) buyer into your car not only wastes your valuable time as a business person (and that is what we should be), it also wastes gas which is an expense. Thank you Donna for checking in!
The first thing you need to do, if you want a long and successful career, is to understand and set yourself up as a business and then run your career as a business.
Let’s take a look at the benefits of putting together and executing a business plan, versus the disadvantages from my perspective.
Benefits:
1. Gives you a specific plan to focus your energy and resources on a yearly, quarterly, monthly, weekly and yes daily basis; not only for this year but for the next 3, 5, or however long you anticipate a career in real estate. Once your plan has been written you need to be committed to keep it updated by reviewing it on a quarterly basis.
2. Reduces waste of precious resources and helps you to gauge better where to spend your valuable time and money; i.e. identifying activities or tasks that help you to make money and save you time.
3. A business plan that is followed helps to insure that you stay away from time wasting activities; activities that are not income producing
4. Identifies what you want to make ($) or need to make as income and your expenses; not just on an annual basis but also on a quarterly and monthly basis. You put together a yearly budget that helps you better decide where you are going to spend your money and more importantly identifies the key activities and habits that will bring you the income to pay expenses including taxes; and of course brings you a profit.
5. Planning helps to even out your income stream; many people in this business complain about the ups and downs of their income. When you have a plan that you follow, you can avoid the lows and increase the highs. Following your business plan helps you reduce those lean times and forces to you to keep focused on income producing activities for the near and long term.
6. Includes putting together a comprehensive marketing plan on a yearly/quarterly/monthly basis that not only helps to design “your brand,” (distinguishing you from the rest of the people in your area with a license) but identifies where and when you are going to spend your hard earned dollars in marketing you, and advertising your clients’ properties
7. Gives you control over your money, career, and more importantly your life. (Wouldn’t that be nice?)
8. Insures that you are working for your long term success; read here insuring that you are working with clients today that will be clients for the long term.
9. Helps you put together and work an exit plan that includes retirement planning; something that is sorely lacking in the real estate business
10.Plans for growth in your business career whether you intend to expand with the hiring of a licensed assistant or two or three, or to put together a team of other like-minded REALTORS®.
Disadvantages:
1. Takes time to set up right
2. You have to work the plan to make it work for you; a plan that sits on the shelf is no good to anyone;
3. Gives you what you need to do on a daily through yearly basis (Wait; that might be a benefit! J)
That should give you something to think about for the week!
Next week we move on to practices of the REALTOR® business person and how to establish yourself as the trusted advisor for your clients!
Take care!
May. 6, 2008
Categorized in: Welcome to my Blog!
A new buyer calls you about a property for sale, and they want to go see it, now. What do you do?
 Before you answer; think for a minute. Your answer will tell me whether you are a “chauffeur,” or a REALTOR® whose interest is to become for your clients, their trusted advisor in real estate. (In Alaska we talk about sled dogs and who is the leader of the team. Versus the back of the pack.) Not in my world! First, ask yourself these questions (and please be honest): · What percentage of the time that you stopped everything and met someone at the property, did they buy that property? · What percentage of the time that you stopped everything and met someone at the property, did they buy any property from you? · What percentage of the time that you stopped everything and met someone at the property, did you find out they were working with another agent? · How often by taking someone out did you miss or were delayed on important deadline for a client? OK. I may concede that there are times when it works out just fine; initially. However, my world of real estate is based on me earning and fulfilling the position as the “trusted advisor” for my real estate clients; which means that I earn their trust and business and that of their friends, neighbors, business associates and acquaintances, for a lifetime. How do I define “trusted advisor”? I define “trusted” as a relationship of reliance and “advisor” as a professional who helps clients deal with various real estate issues or an expert. Now, you starting to understand the difference between a REALTOR® who is the trusted advisor for their clients, versus the agent who drives people around to look at properties for sale. In the coming weeks, I will discuss the differences in the practices for each, giving you tips and advice on how to change the way you work, to benefit from becoming a real estate trusted advisor. Stay tuned!
May. 1, 2008
Categorized in: Welcome to my Blog!
Sometime in January I received an e-mail from Norn Flynn, past president of the National Association of REALTORS® asking me if I might be interested in traveling to Eastern Europe to give a real estate seminar on behalf of (and paid by) the International Real Property Foundation. (The IRPF was established by Norm in the late 1990s.) I responded that I would love to; it just depended on the timing for travel. After some back and forth we established the time frame, what types of courses they wanted, and which countries I would travel to: Georgia and Azerbaijan.
I was given a basic outline and I set about designing a course schedule with 2 days of brokerage management and one day of sales training per their request. With reservations made; my passport at the ready and with one small suitcase plus my computer packed, I was set to go. Friday 3/22/08 My adventure starts. First to Seattle to stay overnight to catch the early plane down to LA for the trip half way around the world. Smooth flight. So far I am calm. Saturday 3/23/08. I get to the airport in Seattle 3 hours early for my flights – with all the flying I have done I know that it helps to get there early to make sure that the international flights are squared away. My journey today will take me from Seattle to LA to Heathrow to Tbilisi, Georgia. Overall the journey takes about 18 hours in the air; then add in the time waiting in airports and my total trip time will be somewhere around 30 hours. Monday 2/25/08 I am finally about to land in Tbilisi! It is around 6 am and I am unbelievably actually “on” their time zone; they are 13 hours ahead of us. Quite a change! Upon arriving in Tbilisi, Lela Shatirishvili, the translator for this part of the journey, meets me at the airport and takes me to the Marriott Hotel where I will be staying. (By the by Tbilisi is pronounced ti-bli-si with no accents on any syllables. Lela tells me that the Georgian language does not have accents on any syllables. It is originally from the Samarian language which may be the oldest language in the world). The hotel is gorgeous – very old world European. At first glance it looks in excellent condition for a building that is over 200 years old. It is only when you spend the time looking around that you start to see some of its faults. But it is beautiful and I am in need of a shower and some food. After I eat breakfast I work through the day on my courses making sure that I added notes where reasonable for a non-English speaking audience. Lela has the only title company in Georgia – now don’t get excited they are just getting started understanding how important it is to have a chain of title and the need for a title policy when transferring ownership. Lela is familiar with many aspects of real estate in the US but I know that there will be many questions for me at the courses and I want to be ready. Figure 1 View of Tbilisi Wednesday 2/27/08 Lela picks me up at 8:30 to make sure that we are there early enough to get the room set up. (By the by she does not drive. Although women have been allowed to drive for 25 years in Georgia, few women do. Most hire a driver. Interesting – I can see that driving would be an interesting adventure). We get the LCD projector and my computer ready, and then set up the chairs for the participants: about 25 people. Lela has prepared books and name tags for everyone. About 9:45 most of the people are there so we start. Day 1 starts off well; however from the questions they are asking I quickly figure out that the participants have no idea how REALTORS® work in the U.S. I spend the next hour explaining what a real estate license is, how they get it, and that each state in the US has different pre-licensing education standards; and that then they have to take a test, and then they have to work for a broker for a set period of time before they can take the education, pass another test and go off and work on their own. I also explain the 3 levels of licensure in the US in general; as well as what an independent contractor is. I go back to the program, and then stop to explain how we in the real estate industry use contracts and what they are: listing, buyer agency, earnest money agreements, addendums etc. I then need to explain the different types of listing contracts (with an emphasis of the importance of the exclusive right to sell agreements). This leads me into an explanation of the MLS system. We also discuss the differences between working with someone as a client versus a customer. I go back to my program and I am impressed by the number and variety of questions that they ask. Next I stop to explain what property management in both residential and commercial real estate is and how each state has special laws that outline how the tenant and landlords of residential property must act. Plus I explain how we use contracts in these areas. Lunch and breaks occur with many people coming to me to get more questions answered. We end that day about 6:30 pm Figure 2 Participants in Tbilisi with Lela in front Friday 2/29/08 Lela picks me up again about 9 and we head to the seminar. Lela anticipates possibly a different group of people coming which we indeed did have 5 or 6 different people today. Because new people are there, I go ahead and explain some of the basics of being a REALTOR® in the US: from licensing through to brokerage. It is a good thing that I did as several of the people who were there from before thanked me for helping to explain again what they see as a very different way of doing real estate. Day 3 once again goes well with lots of questions. This time there are people there who are very interested in property management so I tailor my presentation to insure that I help them to understand how this is done. Lunch and breaks go as planned. Good questions at all the breaks and at the end of the day. I head back around 7. Saturday 3/1/8 It is time to say Madloba (thank you) and Nakhvamdis (good bye) to Lela and the group and head to Baku, Azerbaijan. It is only about a one and half hour flight from Tbilisi and I am looking forward to a bit of a change. After arriving in the Ambassador Hotel, Nargiz (the coordinator for Baku) calls and we arrange to meet that evening. We meet about 9 pm and she introduces me to the translator, Farman Imamguliyev. He and I arrange to meet at 8:30 the following morning. Figure 3 Farman - Translator in Baku Monday 3/3/8 Farman and I meet at 9. I am told that some people will be in and out. We actually start just about on time today. As I go through the program I again get many questions, and for those that are new I go over some of the basics of becoming a US real estate licensee. This group cannot believe that people who sign contracts in the US actually honor them. First they do not have any contracts. Second if they did they say no one would honor them. We have a morning break and a lunch break. Day 2 also is very interesting with good questions. They decide to skip the afternoon break and end up breaking at 5:00. I stay to answer questions until 6:00. Many of the questions are about the differences between a customer and client and how and more importantly why we disclose this. I am also asked to visit the Real Estate Registration Project after the last class. I agree. Figure 4 Farman and a representative from the RE Registration Project Figure 5 Some of the participants in Baku Tuesday 3/4/8 Farman and I meet at 9. The handouts are on the tables. We have closer to 40 people today although I am told that once again they are going to be floating in and out. We go through the materials for Day 3 with many questions; many questions on back to the basics of how we work, the independent contractor relationship, property management, client versus customers and the exclusive right to sell contracts. A couple of the attendees corner me to discuss more about how to set databases to track customers and clients. We end about 5:30. I am asked to write an article on Alaska real estate for their local magazine. I agree to do that upon my return. After the course, Farman and I go with Shahin Panahov, the Project Manager for the Real Estate Registration Project, to visit his office and to meet with Gulhusseyn Kazimov, Head of Staff for the State Service for Registration of Real Estate. Their interest is to find out what we think of their progress towards title registration (in the very early stages) and their mapping of properties (very early stages). They also want to know what we think of their real estate professionals and to ask what they can do to improve what they do. I am very careful in my comments to commend them for their hard work and to encourage them to continue towards title registration and forming legal descriptions for all properties. Sagolun (pronounced sa-oul which means thank you and goodbye) everyone. Thursday 3/5/08 A day of rest before I pack and start the two day journey home. Some thoughts that I am pondering: the IRPF and in turn NAR are trying so hard to provide people in other countries education on the real estate profession, however in trying to be respectful of their experience we sometimes forget their point of reference is far different from ours. They still want to understand the very basic way our real estate industry is regulated; from licensees, to title, to land/legal descriptions, to appraisal, to the mortgage and banking industries. Next we need to help them understand the uniqueness of our profession; from our independent contractor status to our payments structures (in general of course), supervision; plus the importance of the use of standard contracts throughout the industry. Real estate people throughout the world are really very similar -- they all have a burning desire to find out how to “do “real estate better and more efficiently; and they want to know how to create loyalty between themselves and the people and companies they help. They are addicted to their phones (although in Georgia and Azerbaijan are more addicted to texting than most of the REALTORS® in the US) as they are to their cigarettes. And if you are thinking about traveling to either country: Georgia’s food: is “interesting” (bring your own food for dinner); wines are rough but drinkable. Azerbaijan’s food: is better; Ka-Bobs are very popular (but do not eat the chicken as this country has problems with the “bird flu” which is supposedly carried by chickens); by all means try the wine – especially the cabernets – they are wonderful. These real estate professionals in both countries are wonderful. I have learned so much from them. I feel lucky to have gained so many new friends who also love the real estate profession. This was an amazing experience and I thank the IRPF for choosing me for this adventure. I look forward to other opportunities to travel to other countries to give seminars on real estate and to share some of our experiences with those who, like us, have chosen real estate as their profession. |
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