Edward's Blog

Ecobroker® Course - Lesson's learned

Edward McCaffrey, GRI, e-PRO (Page Taft GMAC ) — Fri, 27 Jun 2008 20:49:22 -0500

Now that I've earned my EcoBroker® designation, now what? There's a lot to learn from the Ecobroker® course, but one thing you don't learn is to be an expert on the environment or an expert on energy efficient windows, or what heating system to use for maximum efficiency, or how to best insulate your home, etc. etc. Here's my top 5 lessons learned:

1. Study and be able to help clients consider and understand payback periods and life cycle costs of energy saving products. An additional $1000 up front cost (for an energy saving feature) that has a payback period of 2 years could provide cash benefits for years. Isn't this how to sell benefits?

2. There are many government and utility incentives available to help consumers purchase more energy-efficient products - knowing what is available in your local area gives you a big advantage over your competitors.

3. Be aware of misperceptions of commonly overused and misused terms like "environmentally friendly". No one verifies this label. Be more specific by saying something like, "this home was constructed with windows having low-e coatings and has been upgraded with Energy Star appliances".

4. The best way to sell anything is by using "real life" examples. Promoting energy saving features is no different. For example, help consumers calculate life-cycle costs. If you see a solar panel on someone's home, stop by and talk to the owner; ask if you could bring clients to visit (provide a gift certificate and you might just get a referral!) and learn first hand how the system has saved energy and operating costs.

5. Homeowners place high value on cost savings, the environment, comfort and health. Of these four, comfort and dollar savings are the most tangible benefits for them. Focusing on these four areas can make you a "socially responsible" real estate agent and help you stand apart from others that have not had the Ecobroker® training.

Has anyone else earned the Ecobroker® designation? Any comments? The web site is www.ecobroker.com

It's Race Time

Edward McCaffrey, GRI, e-PRO (Page Taft GMAC ) — Mon, 19 May 2008 18:55:15 -0500

First Race of the Season! Every year I can't wait for some warm weather so that I can start running OUTSIDE without leg warmers, gloves, ski hat and a jacket. Over the last 3-4 years, I've stayed inside during the winter and used the treadmill at the gym to keep in shape. Now that I've been running outside 2-3 times a week, for the last month, I decided it's time for a RACE! It happened this past Sunday at 9:00am at Jacob's Beach in Guilford, CT! Since there were only about 200 runners, I expected to do well in my age group - boy was I wrong! I came in 9^th of 12 and the winner (in my age group) ran the 4 mile race in less than 7 minutes a mile! I can't complain, however, since I averaged 8:45/mile, about the same as last year.

How does this relate to real estate? Well, for me, a lot! About 3 years ago, I attended a Hobbs-Herder course in Washington, D.C. and learned the importance of branding - starting with a personal brochure. After writing several drafts of different themes, I decided to use running. We first had a brainstorming session with my running group and one of my friends said, how about "Ahead of the Pack" and so it stuck - my tag line- I've used this in my brochure, postcards and other advertisements.

To quote from my brochure, "Having a regular running activity and a group to inspire him brings a great deal of insight into Ed's successful career as a real estate professional. Self-motivation and determination are traits that are necessary to maintain a steady exercising regiment. Ed works the same way in real estate."

So my question to you is "what interest or hobby can you use to create interest and tell a story about the type of person you are?" This is not a hard sell approach that may agents use but a personal story that a prospective client may think "Now that's an interesting person that I'd like to meet someday" So change what you're writing and try creating something personal - it might just work for you.

Should You Be an "EcoBroker"?

Edward McCaffrey, GRI, e-PRO (Page Taft GMAC ) — Mon, 25 Feb 2008 19:02:08 -0600

When I started collecting articles a year or so about green homes, I never imagined that there would be such a huge growth in consumer interest in this subject. Now, just about every other week, there's an article in our local paper or magazine about ways to make your existing home more energy efficient or builders that are building green homes.

Then I visited the web site http://www.ecobroker.com/ which is a product of EcoBroker International. The web site describes an on-line course that agents can take to be "ecobroker certified". But wait, NAR and our CT Association of Realtors has not "endorsed" the program, and no CE credits are given - they currently don't offer anything like it.

So the question is, should you sign up and pay the $399.00 or wait until NAR or CAR or your state organization offers an eco broker type course? For me, I decided to go ahead and have started taking the course - it's in three sections (abbreviated from their trademarked names):

1. Environment 2. Energy 3. Green Market

What do I think so far? It's a lot like the e-Pro course - a lesson with field trips, a quiz and homework. Very well done, so far.

What do I expect? I'd like to find more about the energy area and how a house gets a "LEED" rating; how can you demonstrate the advantages of a solar hot water heater ($ saved compared to non-solar), etc. etc.

In the meantime, check out the 57 page "Your 2008 CT Energy Guide" made available on http://www.conservationeducation.org/. It's possible that other states have a similar publication. The course is loaded with similar links that can be saved for reference. I found out that my town even has an organization with a web site on the subject: http://www.essexcitizensforcleanenergy.com/

I'd be interested if anyone else has taken the EcoBroker course and their comments.

A Hubbard is a Hubbard is a Hubbard

Edward McCaffrey, GRI, e-PRO (Page Taft GMAC ) — Sun, 17 Feb 2008 19:51:24 -0600

I recently had a buyer who was interested in purchasing a house but needed to sell their house before they could buy (a Hubbard Contingency). Sure, they could get a home equity loan or bridge loan but didn't want to risk being stuck with owning two houses.

In this buyer's market, sellers are more willing to accept this contingency but watch out for a "domino" effect: many contracts do not limit the progression of Hubbard contingencies!

In the case of my buyer (#1), they had a Hubbard on the house that they wanted to buy. Within a short time period, a buyer (#2) came along and made an offer to buy their house with a Hubbard contingency on the offer!

Then buyer #3 came along about a month later to purchase buyer #2's house without a house to sell (finally).

Talk about a tense situation! As the date of the Hubbard contingency approached for buyer #1, inspections on buyer #2's house were not yet resolved.

Three homes were dependent upon one inspection resolution!

Fortunately the inspection issues were resolved, the mortgage contingency met and both houses were sold so that buyer #1 could then go ahead and buy their dream house (a total of 3 houses in the chain of events).

Sound complicated? You bet.

What to do? Consider asking your seller, who signs a Hubbard contingency, to include a clause in the contract to say that they will accept the contingency IF THE BUYER WILL AGREE TO ACCEPTING OFFERS ON THEIR HOUSE WITH ONLY INSPECTION AND MORTGAGE CONTINGENCIES!!

If you don't stop at the FIRST Hubbard contingency, you could find yourself in a situation with 2 or possibly 3 back to back and several homes dependent upon the home at the end of the chain to sell.

You don't want your sellers to sit on pins and needles all this time - moving is stressful enough without a "Double" or "Triple" Hubbard Contingency.

Eagles In Connecticut? It's an Annual Event!

Edward McCaffrey, GRI, e-PRO (Page Taft GMAC ) — Sun, 10 Feb 2008 21:22:24 -0600

We are pleased to have the Eagle Festival again this year in Essex, sponsored by the Connecticut Audubon Society. Yes, you heard right, the Eagle Festival with real, live, wild American Eagles, within view of the naked eye (but better with binoculars or spotting scopes). For more details go to: www.ctaudubon.org/about/eaglefestival.htm

The weekend is filled with seminars, bird carving, live bird demonstrations, art exhibits, horse and buggy rides, and talks on conservation. It's a great way to brush away the winter doldrums and learn something new. Even if you're not a birder, you can enjoy many of the fun filled activities. Celebrities? You bet, Phil Donahue and Faith Middleton ( a local TV personality) are the honorary co-chairs.

Bring the kids - there are story times, photos with a live raptor, and a model train show.

But what about the weather? Sure, it's cold this time of year in Connecticut (the last two years, it was in the 20's) but never fear, they have heated tents for the talks and demonstrations and you can stop in the stores and the Connecticut River Museum to get warm.

When? It's this weekend, February 16th and 17^th, 2008. So bundle up, clean your camera and binocular lenses and head for Essex for a great time! To learn more about Essex, "The Best Small Town In America", visit: http://www.essexct.com/

And don't forget to stop by the welcome center at Page Taft GMAC Real Estate on 35 Main Street and say hello!

I'm Making A Six Figure Income (I wish)

Edward McCaffrey, GRI, e-PRO (Page Taft GMAC ) — Thu, 17 Jan 2008 20:12:50 -0600

Years ago, in a former career, I made weekly trips with co-workers making sales calls on our major customers in the Midwest. My job was to offer technical support to the sales force. We often would propose questions to each other to stimulate our minds and pass the time as we were driving 100 or so miles each day.

On one of these trips, one of our salesman said to me, if you had $1,000,000, what would you do? Would you continue working? Would you change to another kind of work? Would you quit work and do charitable work?

Then we both decided that we would continue working on the jobs we had because we liked what we did and liked the company. Then we asked, "Would our job behavior change?" We both concluded YES, our behavior would change, and for the better; we both would be better employees! Why: because we would be doing what we believe is the right thing to do!! So then, the salesman said to me, what if we ACT as though we have one million dollars!!

So what does all this mean to the real estate business? Just this: If we ACT as if we are making a SIX FIGURE income, what would we change? And would we be more successful? Here are some suggestions:

IF I WAS MAKING A SIX FIGUE INCOME, I WOULD:

1. Not take every listing that came along, just because you need the money. Everyone knows what I mean, the listing that you don't want because its 40 miles from your office and the owner insists that you be present on all showings and you're spending a fortune on gas! And it's a referral and the fee is 35% and so on and so on.

2. Dress like a top producer - for me, I'd probably wear a sports jacket more often; for women, maybe a fashionable dress rather than a casual look.

3. Keep my office and car looking sharp. Ever notice that top producers drive cars that are always "car wash" clean all the time?

4. Work with buyers that agree to work with you (in our area, sign a buyer agreement) and drop the others and don't take buyers who want to look at property 60 miles from your office.

5. Spend more time having breakfasts and lunches with old friends, past, current and potential clients. The same for business partners, mortgage brokers, home inspectors, attorneys. What if you did something unusual like buy them lunch? Don't you think they would tell their friends, hey, Ed's doing well; he just picked up the tab for lunch? What do we do now? Oh, we don't' have the money to buy lunch two or three times a week.

I could go on and on but my conclusion is that if we act like we're top producers - it's possible that we'll be much more productive, more efficient and before long, earning that six figure income.

Procastinators: 20 Minute Business Plan Using Excel

Edward McCaffrey, GRI, e-PRO (Page Taft GMAC ) — Sat, 05 Jan 2008 19:44:31 -0600

Remember Excel? Many have Microsoft's Excel and find it useful for keeping a database (setting up a mailing list) and number crunching.

I'm suggesting an easy Excel spreadsheet that can be used on a weekly basis to let you know what you need to do "short term" to reach your yearly financial goals.

By now, you've probably submitted your 2008 business plan to your company and are all set to charge ahead for the New Year. Please note that I'm not trying to minimize the use of a detailed plan that you may already have.

I've developed a SIMPLE one page business plan (again, not a substitute for a full size one) that you might consider, particularly because it uses the "what if" features of Excel. Let's face it, your year end profit all comes down to the number of buyers and sellers you convert to sales. To keep it simple, you need to estimate the following variables:

1. Average transaction sale price.

2. Conversion rate for buyers and sellers leads.

3. Conversion rate for buyers and sellers appointments

4. Commission split percentage.

5. Estimated Expenses as a % of your total commission.

Since there is a conversion percentage for each type of client, making an educated guess on this and the average sale price and you can easily find out how many appointments you need to make on a monthly basis to generate a certain commission.

Oh I know, it's not all that simple. But I've found that most real estate agents complain that they can't predict their sales volume because it might not be a good year or there's too much negative news so it's a throw of the dice. Well, here is a simple plan that gives you a clear picture of the number of buyer/seller appointments you need to get the get the sales you need. Once you have set up the spreadsheet, all you need to do is to put in the number of appointments each month and watch the numbers crank out the final amounts. I'm assuming that you already know simple Excel formulas to calculate the necessary numbers in the spreadsheet below:

	Listing Appt	Buyer Appt	TOTAL QTR	TOTAL YR

MONTHLY	1	1
QUARTERLY	3	3	6	24
Conversion Rates (%)	80	65
Signed Agreements	2.4	1.95	4.35	17.4
Conversion Rates (%)	65	80
Completed Sales	1.56	1.56	3.12	12.48
Ave Sale Price	$ 350,000	$ 350,000
Sales Volume	$ 546,000	$ 546,000	$ 1,092,000	$ 4,368,000
Avg Commission %
Gross Commission $
Agent Split %
Net Commission $

Est % Expenses				8
Yearly Expenses				$ -
YEARLY NET				$ -

Why not give it a try - it should only take about 20 minutes (or less) to set up the spreadsheet and you've got a plan for the coming year!

At Holiday Parties, Practice Your Handshake!

Edward McCaffrey, GRI, e-PRO (Page Taft GMAC ) — Thu, 20 Dec 2007 19:19:14 -0600

I don't know why this subject has been on my mind lately, but I suspect it's because of all the Holiday Parties and all the handshakes we make with people we meet for the first time and those we know. It's been my experience that guys give handshakes at parties almost 100% of the time with both men and women but women may or may not shake hands.

My father always told me that you need a "firm" handshake to give a good impression. He especially disliked what he called a "fish" handshake, or one that feels like a "dead" fish. Is a firm handshake intimidating to someone that gives a weak one? I've always had the intension to give a firm one but if the other side is weak, I'll back off to make the encounter more comfortable. The one I dislike is where someone grabs your fingers - it doesn't feel right - it makes you feel that your hand may be smaller or that you made a mistake and closed your had too quickly.

Body language seems to be a popular topic these days, especially on shows like Bill O'Reilly where Tonya Reiman analyzes everyone from movie stars to politicians. I just purchased her book, "The Power of Body Language" and recommend it for understanding more about the subject. In fact, she devotes 3 and ½ pages just to the handshake! She details what she calls the 12 wrong ways to shake hands but most of what she talks about is just common sense.

So what's this got to do with real estate? When we meet clients, we all know that it's important to be aware of making a good first impression - after a phone call or e-mail, a face to face meeting starts with a handshake. At the same time, you mention your name and the client his name; sometimes a friend or spouse is along and you shake hands with them also. What a great time to concentrate on their name while shaking their hand!

So when you are meeting new and old friends at this festive time, pay attention to how you shake hands - I'll bet the firmest grips are either politicians or successful real estate agents!