I read a blog written by my social media consultant Jon Dupree of Calibrate Marketing.  We had both attended a wonderful seminar hosted by theBrookfield Chamber of Commerce  on this topic. I tend to get really busy and leave some of the "low hanging fruit" on the tree.  Once you spend the time and money to get the prospect it is imperative that you have systems in place to make sure that they eventually do business with you.  The panel, consisting of Susan Merlo of Next Level iMedia, Tara Alemany of Aleweb Social and Rick Schwarts of The Sales Addict spoke about how we loose opportunities by not having systems in place for follow up processes before, during and especially after the sale.

  1- Not Following Up With a Prospect: The Prospect my not be ready to buy or to take advantage of your services at that moment of initial contact but there was a reason that they contacted you.  When they are ready to step off the ledge will they have remembered you and be able to find you?  Once someone approaches you or shows an interest in your product or service what do you do next?  With a bit of personal tweaking it should be the same each and every time.  Take some time and formalize the steps you take for the 2-6 different ways you meet people.  You should have a technique for Internet leads: open house leads: referrals: people you meet at networking events; etc.  Mine basically consists of; a handwritten thank you note, putting them into my database for monthly newsletters; putting them on a drip email campaign; signing them up for a Listing Book Account (offered through our MLS), adding them to my mass email list for monthly informational eblasts and putting into Outlook.  In Outlook I schedule a NEXT STEP.  It is an appointment. That "Next Step" could be a phone call, a lunch or coffee, a peice of information etc.  Without it being on my Outlook it tends not to happen.

2- Approaching the Prospect with the Wrong Mindset: Instead of the thought "When or what can I sell them" the mindset should "How Can I HELP Them".  The prospect will not do business with you if you have not made them feel that you CARE about them.  Friend them on Facebook, set up a meeting with someone who can help them in some way, send them an article or book, remember their interests, hobbies, family.  Become a trusted advisor and resource for your Prospect.

3- Not Keepong in Touch AFTER the Sale:At McCaffrey Realty we have an informal system called 1-7-30-6-12.  How many of you have gotten a call from a service person the day AFTER the service to see if everything went well?  When that happens I become a RAVING FAN and your clients will too.  Call the day after the transaction, a week after, a month after, 6 months, and on the anniversary.  This is how you not only get repeat business but also those extremely important referrals.  Put the dates into your Outlook as  appointments.

4- Mis-Judging the Prospect:Some people believe that you follow up with a prospect until they DIE.  It is the old fashioned ABC (always Be Closing) mentality.  Prospecting is the sowing of seeds that you later harvest as closed sales.  Periodically you need to tend your gardens and pull out the weeds.  You need to determine the BANT of the Prospect. (Budget, Authority, Need, Time Frame).  If the prospect does not have the money, the authority to make the decision, have a need for your solution or a defined time frame, then they a C prospects and should not take time away from your A prospects.  We have a saying "Stop Watering Deed Plants."   Tend to you garden (your Prospects) and re-categorize the dead leads.

5- Using only one methed of communication.  You should have a half a dozen methods to communicate to your prospects.  Absolutely pick up the telephone.  We are getting lazy with emails and social media.  We are not using the phone as we should.  Also use print newsletters, emails, blogs, networking groups, client appreciation events, postcards, sponsorships.  You need to be visible and be there when the prospect is ready.  You need to MARKET to your prospect but also NETWORK with you Prospect.  The Networking piece is the piece that lets them know that you care and cements the relationship.

It comes down to CARING and being VISIBLE.  Multiple touches, questioning, being a resource will be the catalysts to being the company, person or service chosen when the prospect is ready to commit.

The Business Plan of New Agent Kevin.

It is 2011 and where does a a first  year rookie Realtor start with a plan?  First,  I needed to identify my ideal client.  I sent out a letter to limited people(about 100) that I am a full time Realtor.  The theme of letter was "I am your home counselor".  My philosophy in serving a client's needs is from a hyper local perspective.  It is about knowing and being able to establish value based on local conditions and knowledge.  I will give advice to homeowners based on the local factors that impact the value of a home so the price can be selected and together we can develop the best marketing strategy to get it to sell to the Right buyer at the Highest price possible. My ideal client is local and may actually stay local.  That will include move up, move down, first time buyers and divorce situations as well as local people who are having financial difficulties.

I defined my USP (Unique Selling Proposition) or what are reasons a home buyer or seller would feel comfortable with me. I am an honest, caring and positive person. I negotiate from knowledge (about the market and about the parties involved) and with an attitude of win-win. I am part of the fabric of our communities. I am good listener and put the client's goals ahead of my own. Lastly, I am loyal and faithful like a Golden Retriever.

Now I need a road map, my business plan for this year. Sales come from contacts. My wife, Linda, has two thousand contacts. My list is at 150. You need activities that have positives and gives people  a chance to get know you.  I have targeted five groups;   giving back to kids/schools, golf, cancer (since I am a Cancer survivor), town politics (behind the scenes) and Chamber of Commerce.  Next, I need to develop my data base around these groups with new contacts and map out quarterly goals and informational campaigns for each group.  Some people farm geographic areas.  I decided to farm interest groups.

In the realm of schools/kids, I have gotten involved with a group trying to raise funds for a building on the High School Athletic Fields.  I am on a committee to create a "brick walk" where parents will buy engraved bricks for their children.

I am starting a McCaffrey Golf League and am looking forward to an excuse to play more golf this year (if the snow ever melts).

I have volunteered to help with support groups at the local Cancer Volunteer Center.

I will meet the new and existing  Brookfield Chamber Members to  develop  them into referral venders. I will find other people that they need to meet and provide them with any resources I might know of to help grow their businesses.  I will also take advantage of chamber seminars on improving prospecting methods.

As a member of the Republican Town Committee I will expand my involvement in the political process by attending meetings and providing ideas and support in order to make Brookfield a better place. 

In addition, I will continue to use social media tools to expand my contact base. I will also need to improve my basic computer skills by taking classes.  Other skills I need to improve this year are  sales techniques and processes and using social media effectively. My personal development also needs to be addressed and I will execute a physical workout plan and define family goals.  I will formalize this by working out 5 days, golf weekly, a quarterly sales training event, social media daily and family calls to kids weekly and wife events every 24 hours. (Linda wants to know what that means)

Networking needs to be part of my being and my daily plan.

The 2011 plan will be formalized and in writing by this week as I have my meeting with my Boss (Linda) on wednesday.

I have to admit, as a comuting, corporate person for 40 years,  that I have enjoyed the people I have met and getting involved in the community these past several months since I "took the plunge" into Real Estate.  I like the feeling of participation and contribution on the local level.  I can make a real difference in the lives of those around me.  Being a Realtor is about more than selling houses.

How is Your Realtor Rated??

Just like restaurants and hotels, Zillow.com has begun rating real estate agents.  Now consumers who have accounts on Zillow can not only find the "zestimate" of their homes but research the consumer feedback on agents in their areas and also post a review of an agent that they may have worked with in the past.  More valuable than the testimonials posted to agent websites, these reviews are unedited by the Realtor.  Quoted in a related article in The Commercial Record, Connecticut's monthly business magazine,  McCaffrey Agent Dana Voelzke is quoted as saying, ‘This is already the same thing that happens among neighbors,.  They call each other and they share the dish about agents they worked with and who did a good job and who didn't.  It's just happening online for the world to see now."

The reception of this technology from agents nationally has been very cool.  Agents at McCaffrey are encouraging their clients to post reviews at Zillow.com.  Ms. Voelzke, who was the 2009 Top Producing Agent at McCaffrey Realty also sees the 1-5 star rating system as a positive step.  "I'm sure agents are going to complain about this- anyone can have a bad experience with a client," said Dana Voelzke. "Putting all that out in the open and allowing other consumers to be made aware of the experience,  I'm quite sure there's going to be some negative reaction.  Ultimately, however, the ratings feature may have a positive impact in helping to sort good agents from bad."

When Ms. Voelzke first started using Zillow she did it because, "it was essentially free advertising for my listings.  Over time I started answering consumers' questions on the site and I think that the rating system is the natural next step.  Now, rather than seeing a smiling picture and here are my listings, consumers can actually see how you work with people.  To the extent it brings more transparency to the real estate market, I think it is a good thing.  Consumers should have the ability to know what they are getting up front."

"Not all Realtors provide the same level of service, experience or knowledge, stated Linda McCaffrey owner of McCaffrey Realty. " Through both the consumer questions that are answered by the Realtor on Zillow as well as the rating system, consumers will finally be able to judge for themselves the differences and choose the professional best suited to their individual situation."

ARE YOU MOVING FORWARD OR IN A CIRCLE?

Yesterday I listened to a webinar by Richard Flint which made me pause.  It is half way through January.  Most of us have made our resolutions or created our business plans.  His point was that the New Year is a time to start over; to start ANEW.  I, for one, realized that you cannot do that until you confront the struggles from the previous year.  If you don't do this, you will not be moving forward you will be moving in a continuous circle of failed promises to yourself.  There are four questions that need to be answered if you want to leap forward:

•1-     What do I REALLY want my life to be this year?

•2-     Why do I REALLY want to invest my time in this vision?

•3-     What behaviors do I need to improve not to sabotage my journey?

•4-     Am I REALLY willing to pay the price to get there?

I hear people hoping that this year will bring them everything they hope for. BUT...

 "It is not about what the year will bring to you.  It is what are you willing to bring to this year."

The first question defines your VISION.  It is your direction and sets your internal compass for the year.  Without setting this FIRST you have no chance of achieving your desired outcome.  It is like going on a trip without the directions. You need to see this for business, family, health, relationships.  Setting one without the others will be like sitting on a stool with legs that are uneven. Another way of saying this is- Where your FOCUS goes your ENERGY flows.

The second question addresses the MOTIVATION.  Why do you want this life??  It needs to by YOUR reason; no one else's'.  It defines and reinforces your COMMITTMENT to stay on the path towards the vision above.

The third is where the tires hit the road. It is recognizing the BEHAVIORS that need to change in order to change your direction.  Behaviors do not lie.  Behaviors are driven by DISCAPLINE. They are also identified by self reflection.  Sometimes routines need to be interrupted.  Sometimes it is not " I need to START" but "I need to STOP" or "I am BECOMING".  I like the later as it is more positive and puts your focus on the correct behavior.

Finally you must recognize that there is a price to pay for change.  Change is hard.  Change is uncomfortable.  Change gets you outside of your comfort zone. Is your vision worth the price? If it isn't then don't start the journey.

Sometimes we face our resolutions or our business plans like a to-do list.  Maybe some of you will relate more to this technique. I will tell you that it is not easy to answer these questions.  You need to get away from the noise of your life and sit and reflect. If you would like to hear a more in depth discussion on this topic I have attached the link to the recording of the webinar.

Everyone Should Have a Real Estate License.

Blasphemous words coming from a full time professional Realtor.  My colleagues would string me up by my shoelaces (if I had laces).  Hear me out on this one.  Each of us knows 200+ people pretty well.  Of those 200 about 10 will move next year.  You have a couple of choices:

 •1-     Don't get involved.  It is their business who they do business with.

•2-     Refer them to your favorite Realtor.  You want to help out your Realtor but also you know that he/she will do a great job for your friend,  You want you friend to have a good experience.  Your friend will be grateful. Your Realtor will be grateful.  Your Realtor will also send you a thank you card and a small token gift.  She may even take you out to lunch.  That is ALL he/she can do by law.

•3-     You have a license and you refer them to your favorite Realtor for the reason above except NOW you can ask for a referral fee of between 10-25%!!  On an average house, after the spit with the company that hlods your license, that means a check to you of about $1500 just for giving your favorite Realtor your friends' name.  Oh yeah, and also saying lots of great stuff to your friend about your Realtor.

To Become a Referral Agent:

To get your real estate license you need to take "Principles and Practices".  It is a 60 hour course and costs around $400.  When you pass the test for the class you take your state licensing test and pay for your license $293/year in Connecticut.  You will need to take 4- 3 hour classes every 2 years. That's it. So let's review.

•1-     An initial time investment of 60 hours and an initial financial investment of $693.00

•2-     Ongoing time investment of 6 hours of continuing education each year and an annual expense of $293 for your license and about $70 for the 2 classes.

 New Class Starts Monday

The main reason that I am posting this at this time is that our Northern Fairfield Country Association of Realtors is sponsoring a real estate licensing class (Principles and Practices) and it starts MONDAY!!  It will meet Monday and Wednesday evenings 6:00-9:00PM.  The cost is $399.  There is still space available in the class.  You can sign up over the phone on Monday by calling 203 744-7255.  The class is being held at their office at 15 Stony Hill Road (route 6) in Bethel CT.

 Need More Information

At McCaffrey Realty Professionals, we hold monthly career seminars to explain all of the levels of "Realtordom" from referral agent to full time producer.  We talk about time commitment, training options, potential earnings and answer all of your questions.  For the next scheduled seminar call Linda McCaffrey at 203 775-3634 ext 102.

The McCaffrey Report - a Look Back at the Market in 2010

2010 was a year where the statistics do not tell the whole story of what has been happening in our local real estate market.  Although the numbers show a slight upward trend in pricing, this is due, in large part, to a greater number of sales of higher priced homes. The percentage of sales over $500k in 2009 was 27% because of job market uncertainty and rose to 30% sales in 2010, skewing the average price upward. In actuality, prices continued to fall, driven by the abundance of short sales and foreclosures. 15% of the closed sales in 2010 were distressed properties, versus 9% in 2009. This is far below the national level where on average one third of all sales were distressed. We believe this will continue for the foreseeable future.  We expect further price depreciation as the pace of buyer demand slowly rises, but not enough to absorb the inventory of retirees and distressed sellers in our area.  Most economists predict a further price decline of 10% nationally.

Interestingly the volume of homes sold has already begun to improve locally from historic lows of 2009. In 2010 we saw a solid increase of 10.8% whereas the numbers nationwide recorded an all time low of 4.4million homes sold. Buyers are returning to the market as they realize that between the historic low interest rates and the market adjustments to pricing, affordability is the most favorable since statistics have been kept. The number shows that the volume of homes sold in the nine town market are off 49.8% from the BEST year in 1998!!  We are still 40% below a more average year such 2001, showing much room for further improvement. 

Although we don't think that the recovery is yet underway, we do see some early positive signs.  With the advice of many local economists, it appears that the real estate market is in for a slow leveling off with true recovery beginning in 12-18 months with modest but steady price increases. At McCaffrey we will continue to monitor and evaluate.

I Became a Realtor by Accident

The New Year is a time for new beginnings.  It is a time to begin something new, something you have been thinking about.  I would like to have you think about pursuing a vocation that helps people through happy AND stressful times in their live. Obviously coming from me, I am talking about becoming a Realtor.

I became a Realtor by accident.  It was not what I went to school for.  It was not my passion.  It was time for me to re enter the work force after my 3 children were in school full time.  At that point I didn't know what I wanted to do that didn't require going back to school and that would provide enough money to help with the growing financial demands of our family.  Kelley rode horses- expensive. Ryan played tennis- expensive.  Devon just liked clothes- expensive. Then there were the bills that would be facing us in the future, drivers education, car insurance and college costs- expensive, expensive, expensive.

I taught at a private Kindergarten at the time, low pay but at least my children got free pre- school. I sold Tupperware to supplement that income.  From Tupperware I learned that I really liked people and can find things in common with anyone.  One of my Kindergarten parents mentioned that they thought I would be great at selling real estate.  I took the class, passed the test and- fast forward- 26 years later own McCaffrey Realty Professionals.  I have also helped hundred of individuals and families.  I do NOT sell houses. I help people solve their lifestyle problems.  Is the house too small?  Should I sell now?  My spouse died what should I do?  I lost my job. How can I keep my house?  I am getting divorced. Where can I go?  My basement is flooding.  Who do I call? This is what I do.

If this hits a chord for you I have a New Years offer.  I will be facilitating  3 seminars the first week in January.  The timing is to take advantage of the beginning of the next course (Principles and Practices) that will be starting locally on January 11^th.  This is the class you need before you sit for your licensing exam.  The seminars are to explore careers in real estate and will answer for you the following questions:

•·        How do I become a Realtor?  What is the process?

•·        How much does it cost?

•·        What skill sets do successful Realtors share?

•·        How much time will I need to devote to real estate?

•·        What does a day in the life of a Realtor look like?

•·        Can I do this part time?

•·        How much should I expect to earn?

Seminars are scheduled for Tuesday January 4^th 7:00-8:30 PM, Thursday January 6^th 10:00-11:30 AM and Saturday January 8^th 10:00-11:30AM.  Please call to reserve your seat as space is limited.  203 775-3634.  It is FREE.  Come and ask your questions.

New Agent Kevin- The Silent NO

The Silent NO

Well, it finally happened.  My first first office duty produces my first lead.  Was it a lead from a friend? No. Was it phone call? No. Was lead from my wife? No.  It was from one of the 15 search engines that drive McCaffrey listings.  It was from Tulia.  A search engine lists the property/email address/phone.  It was person sending a note from his work email about a home in Danbury for $190,000 that needed major construction work. My sales strategy would be to send him specific housing information along with calls every three days for two weeks. The cycle would be Day 1 Call, Day 2 Email, Day 3 Wait- Repeat.

I called back the person after I had talked with Realtor with the listing.  I spoke with him and gave him the full information and he confirmed he wanted a fixer upper and said he would call me the next day to see the home. On Monday morning, I had no call or email about the house. At this point, I started my system by calling him and leaving a message.

On Tuesday, the next day, I sent him additional information on fixer upper homes.  At the end of day still no word. On Wednesday, I had no message from him either email or phone call.  Next day I called. No call back.

I continued my cycle of phone call one day then next email information and then third day no contact. I kept this cycle up for next 9 days. It got frustrating to me on the ninth day without any response. I can accept rejection but no acknowledgement period is the pits.  I accepted this process as a chess game for the final six days which took me to end of my 15 day social media plan. I finally accepted this as a NO and cheered  myself on and waited for my next internet lead.

It only took three hours. The search engine, Zillow sent a name with email address and phone number. It was a person looking for a $200,000 house in Danbury, Connecticut. I decided to adjusted my response plan to this lead. My new approach was straight 20 days of contact either by email or phone calls.  I immediately sent an email with complete information on the house and indicated that I would call later to confirm he had received it.  The follow-up call was made four hours later and to my surprise the number was wrong.    I called Zillow and could not get any help on the number.  I sent an email confirming that I needed his telephone number and was available to show the home the next day.  The next morning, Saturday, I sent more information on other homes in the area from $225,000 and under. At the end of Sunday, I sent an email back with some information on the latest sales of homes in this price range. Now, I took this NO response as a challenge to get him to want to working with Best Realtor, me. The following 17 days I sent sales data each day by town, information on tax rates, info on local colleges, financing rates for first home buyers(guessing on this), sent hot sheet homes new to market, Connecticut Lotto winning numbers, latest foreclosures and information on recreation areas. At the end on day twenty, I accepted getting a NO and actually laughing as I sent a nice note back to him thanking him for giving me chance to work with him. I had finally figured out what was going on in the sales process. This was nothing personal. I am just learning now how many silent No's I need to get to make a sale from the search engines. Wow, my day finally ended with a smile on my face and desire to work with another search  engine lead

Snapshot of the Brookfield CT Real Estate Market

McCaffrey Realty Professionals keeps careful track of what is happening in the communities in which we do business.  Here is a snapshot of what is happening to the Real Estate Market.  Many of these statistics were compiled by top agent, Dana Voelzke.

Looking for real estate statistics on Brookfield, CT? You've come to the right place. Here is the market snapshot for the month of October 2010. Our average home price is around $440,000, but starter homes begin around $250,000 and we also have fabulous luxury homes and estates.. In recent months our average home price has shown statistical appreciation simply because more higher priced homes have been selling this year as compared to last year.

Brookfield sold 13 homes last month, about in line with our average for the past year, and the number of pending sales expected to close in the next 45 days is about the same. The inventory of homes on the market is 11.4 months overall, down from its peak, but still a buyer's market, although the inventory in homes priced under $350,000 AND homes in the middle at $450,000 to $550,000 is lower at "only" 8 months (a balanced market is 6 months). The average market time of the homes that sold in the past year was 105 days, but only about one third of the homes that are put on the market sell at all. Two third of the homes expire after their listing contract without selling.

In the last year the first time home buyers dominated the market with the first time home buyer tax credit, but this month we see that the number of pending sales in the $700,000+ highest end of the market is greater than the number of pending sales in the starter home segment. Buyers have been conservative but those with jobs at this point feel that they are "safe" and are moving forward with home purchases. Interest rates continue to be at historical lows below 5% which makes home ownership, for those who are secure about their jobs and their futures, the most affordable time in recent history to buy.  Buyers must remember that you LIVE in the payment not the purchase price and between the 20+% decline in prices and these interest rates the PAYMENT is the number to watch and NOW is the time to consider that move..

Tags: Brookfield CT, home values in Brookfield CT, real estate in Brookfield CT

The Question of Commission

The Question of Commission-    I am almost always asked what the real estate commission will be.  It is a fair question as the commissions are not set by the industry but are fully negotiable between the Realtor and the Seller based on many factors.  The question should be reframed as "What will you do to EARN your professional service fee?"  Please listen to the the video below for my opinion on how to address this touchy subject with the Realtors you are interviewing to represent you in the sale of your home. 

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