one month on AR.

It reminds me of being back in high school.

I remember those couples that would celebrate such a small amount of time together as if it were a great accomplishment.

I feel that way today. 

I had heard of blogging a couple of years ago. Blogging was a foreign word which I didn't comprehend. It became a recent goal of mine to find out what exactly it was and why people did it. I must admit that it wasn't until I took the plunge on August 3rd, that I began to realize the profound effect it would have on me.

I absolutely love it here.

I have "met" some great people.

I have found other Realtors that I would refer to in a heartbeat.

I learn something new every day.

The members here are so generous to gladly share their tips and ideas.

I have pretty good self control to avoid becoming addicted, but I will say that time passes quickly while I'm on.

I am touched by those who share their stories of loss, tragedy, and soon to be triumph.

I am even more affected by the heartfelt comments of support from fellow AR members.

Active Rain is a great place to be. I am proud to be a part of this growing community.

There are many AR members that have been here far longer than me.  It amazes me to think of the number of Realtors out there that have yet to jump on board. Today there are 46,015 members. What will it grow to tomorrow?

          Happy Labor Day!

B.O.B. is the acronym for book of business. This is a concept I had learned about during a Floyd Wickman seminar I took last year. A great idea that made so much sense.

I spend a good amount of time and money on my clients after the closing. They receive a housewarming gift, bi-monthly magazine subscription, postcards, newsletters, holiday cards, and follow-up with an occasional lunch date. I have worked hard on developing my relationships into long-term referral sources.

Why wouldn't this be valuable if I ever decided to leave the business? Of course there would be someone out there who would love to take over my loyal clients. What about when I die? Wouldn't my B.O.B. still be valuable to another Realtor. I would love the opportunity to take over another Realtors business if they decided to bow out gracefully. So why do so many Realtors just stop selling, leaving their orphaned past clients behind?

This book must be carefully prepared. It does take work, but the payoff can be worth it. Here are some steps to help you begin to prepare yours:

1. Create a list of people you know . This list can be composed your family, friends, acquaintances, your accountant, your mailman, your hair stylist, etc. Anyone that you think could possibly refer you more business.
2. Contact them. The best way to do this is either by phone or in person. This does not include contacting them by mail.  Don't worry that you haven't talked to them since the closing 2 years ago.  Apologize and continue with the conversation.
3. Ask them if they would be willing to refer business to you.  Of course this will be uncomfortable to ask someone you haven't contacted for 2 years.  Again, apologize and promise to keep in touch from this point on.  Of course you're going to keep your promise.  If you aren't, then don't bother attempting this.
4. Ask them if it would be ok to keep in touch with them.You can offer them something of value at this point. (eg. mailing them your monthly newsletter filled with valuable tips, contest, coupons, whatever)
5. Create a profile form. Record the date that you contact them, how you contacted them (phone, in person, mail). Include their address, contact number, e-mail addresses, etc.
6. List their hobbies/interests. This is great to know because you can mail them items/info pertaining to their hobby. You can also strike up a conversation about their hobby the next time you call.
7. Write as much information about the person. This will be beneficial when you decide to sell your book. The more information provided, the easier it will be for the next person to take over.
8. Stay in touch. The worst thing you can do is start building your book only to lose interest a month later. It is not only time wasted, it lets down the prospective referral source you initially contacted.
9. Record referrals received.  This will allow you to track who is more valuable to you in your book.
10. Make it 200.  Floyd recommends that your book consists of 200 contacts. 
11. Categorize.  Place those that give you the most referrals in the front of your book.  Then create sub groups based on the business you receive from the remaining contacts.  You can take away and add new contacts as time passes. 

When you decide to sell your B.O.B., you can determine the value based on the quality of the relationships you have formed.  You can sell your book for a flat fee or incorporate a percentage to be paid to you for every closed deal obtained by the purchaser of your book.  You can then introduce the purchaser to your B.O.B. through a letter or phone call to each person in your book.  

You could also leave your book to your estate to be sold after your death with specific instructions and (not trying to be funny) an introduction letter signed by you for the purchaser of your book to mail.

I searched "book of business" under blogs on AR, so that I could reference some previous posts regarding this topic. I was disappointed to find only two posts which had identical content.

In 1992, Michigan passed a law requiring licensed real estate agents to disclose to potential buyers what type of agency relationship they have with the buyer.

If you are looking to purchase a home in Michigan, before you disclose confidential information to a real estate agent, you must be aware of whom the agent is representing. If the real estate agent is the listing agent of the property you are interested in viewing, understand that the agent is representing the sellers. Unless you have signed an agency relationship agreement with that agent specifically stating that they are representing you, do not disclose any confidential information.

The duties of a buyer's agent include:

• Promoting your best interest.
• Disclosing all facts to you that might influence your decision to make an offer
• Keeping your motive confidential
• Present and negotiate on your behalf
• Disclose to you any information obtained regarding the seller's motivation and willingness to take a lesser price

When you enter into a buyer's agency relationship with your agent, you will also sign an Exclusive Buyer's Agency Contract. This contract will include the term of the contract and how the agent will be compensated. Typically, the agent is compensated by the seller if the property is listed by a real estate agent. It will also state the services that will be provided to you.

Having a buyer's agent working in your best interest is a wise decision when purchasing a home.  This representation also applies to properties listed for sale by the owner and new construction.  If you have a Realtor working in your best interest, he/she can provide you with a list of comparable properties that have sold.  This will assist you with making an informed decision on the best price to offer.

Deborah Johnson works as a Buyer's Agent