Jim's Blog

Realtor Communications - Are they Really Communicating

2008-07-25T15:35:56Z

Every course I have taken since being a Realtor, whether it be for an accreditation or for fun has involved math to some degree. Every instructor has told us that when we say we can't do the math, ask an agent what their commission will be (and we get it to the penny). I bring this up because many Realtors, not all, are driven by money. I get the Realtor Communication emails and never say, don't send me anymore as I like to see what is out there as well as how agents present themselves and advertise their properties.

I got one today that screamed inefficiency! Here it is. The names have been changed to protect the guilty...

Motivated Seller 4% Commission!!!!

Highlights

• Hardwood Floors

• Upgraded Cabinets

• Stainless Appliances

• Upgraded Countertops

• Spacious Rooms

• Formal Living & Dining

• Corner Lot

• Huge Screened Lanai

• Garden Master Bath

1301 Craftsman, Orlando 32835
List Price: $725,000
MLS # S0000000

4% Commission paid upon successful closing of contract written by August 31, 2008. Don't miss this opportunity to sell this gorgeous home!

First, the header is all about the money that an agent can make, not about the house. 2nd, for the life of me, I couldn't seem to find any information on square footage or numbers of beds and baths. This is information that I need. Sure, I could go to the MLS number provided but this defeats the purpose of sending out a targeted flyer to spur interest and that the agent PAID for! It struck me as being a huge waste of time for this agent to send this.

Gated Communities...Keeping you In or Out?

2008-07-23T09:16:59Z

Here in Central Florida, we have mostly subdivisions. Many people love to say they live in this one or that one. Many of the subdivisions are gated. The most expensive subdivisions are manned 24 hours a day while others have a key card and code box.

The manned communities vary in their level of security. There are a few that you can easily talk your way into while others you need a blood sample and fingerprints to get in.

The gated ones without a guard allow for cars to fly through one after another. As a resident of one of these communities, I am sure that the owners don't love seeing cars waiting until they open the gate and then scooting in behind them.

There are other subdivisions that have an entrance and a wall around them but have no gate whatsoever.

Are the gated communities a false sense of security?

If a Realtor Falls in the Forest and no one is there to hear them, do they still make a sound?

2008-07-23T08:43:11Z

Ok, a long title just to talk about sound. We bought our house at the end of 2003 and it is a great piece of land except that it backs up to the turnpike. Having an unscreened pool in the backyard has caused us to talk over the highway. In the last year, the turnpike authority decided to widen the lanes by 2 in both directions. The study concluded that a sound wall needed to be erected. This took a long time but we now have the sound wall. It is a sky colored wall so when you first look out, you think it is a cloudy day.

Here's the question...do you think a sound wall adds or detracts from the value of a home?

Does Your Car Reflect Your Personality?

2008-07-21T13:51:57Z

When you see a Pink Cadillac driving down the street, we all get an image of an Mary Kay Lady who done good! Does your car reflect your personality? They say that people look like their dogs...what about our cars? Do you find yourself dressing in the same pattern as your upholstery? My girlfriend's mom got a Yellow Mini Cooper and she is 80!

I used to commute to work (before Real Estate) and drove a sensible Honda (32 MPG). When I started in Real Estate, the Broker asked me what kind of car I had? I told her a Honda Civic and she actually said That I might have to get a different car. Isn't this automotive discrimination? I did eventually get a Lexus SUV so I could get the higher price listings...still waiting! ha ha. Does your car make you or do you make your car?

Million Dollar Agent, you say?

2008-07-10T09:02:32Z

For agents that have been in the business a while, we know what it means to sell a million dollars of real estate...nothing. So when we see an outdated business card that says "Million Dollar Club", we know that either that agent doesn't do very much business or they updated that slogan the same time they last updated that, er um, 1950's photo of themselves.

The next generation says "Multi Million Dollar Producer". This could be 2 million or 20. The same goes for agent of the month, quarter or year. The last place I worked, this criteria meant that the Broker sat in a room and basically said, This agent is doing a good job, let's give it to them!

I recently saw a sign on a board that congratulated the top lister and top sales for the month. All this means is that they had at least 1 more than everyone else. The top lister award could be won with 1 listing!

Food for thought the next time we see awards and accolades given. Our MLS holds 6 years of data. We will check on the MLS when interviewing new agents to see if the claims hold true.

When it comes to Referral Fees, Which side are you on?

2008-07-07T11:08:34Z

I am currently teaching a 15 year old to drive. He has his permit for a year and the phrase of "Can I drive?" I bring this up because as someone who has been driving since age 16, if i get behind a student driver or someone who is driving very slowly, I don't always have the patience. What does this have to do with referrals? It all depends on which side of the fence you are on. If you have a car load of breakables or you happen to be driving with your Grandmother and someone starts honking and getting frustrated with you, you can become irritated. You know why you are driving slow but they don't!

I have recently gotten more involved in property management. To show someone a rental from the MLS, it is fun to see what referral fees are being offered. Of course, it is matching up the customer with the right property but it is nice when someone offers a nice referral fee. On the listing side, the more that is offered, the less goes into the kitty for your company. The funny thing is that is is totally a subjective figure. There may be a big room somewhere where agents get together and decide on how much they will offer property by property.

It isn't too much different than buying homes. The game is still to slowly uncover the commission percentage to see if you have a winner. The only difference is that with a listing, the seller decides how much total commission they will pay where a rental has the agent picking this number randomly.

No, it's not Tourettes Syndrome

2008-06-20T12:39:06Z

I am speaking about the epidemic we are having out there with the "Head Shake" In the old days, you would hear people saying Tisk Tisk. I see it all the time when I am driving. A driver does something wrong or holds up others or even just a line of traffic and in my rear view mirror, the head starts shaking. It is usually a left to right motion but can sometimes have variations.

I must confess that I do it too! I am not a horn honker. If someone cuts me off or does something bad on the road, my head could very well start it's motion! I am the opposite of Road Rage. I purposely don't meet someone's eye when they are honking or aggravated at me (not that I have ever done anything wrong on the road).

What does this have to do with Real Estate? Nothing actually. Oh, I could try to wrap it around to sellers today and how they have to deal with the current market situation and it makes their head shake...but not only would that be a stretch, it would cause some to read this and shake their head!

Introverts in Real Estate

2008-06-19T11:32:50Z

We all know people who are extroverted. We may also know some that are introverted. Do Introverts have a place in Real Estate? If Introverted Realtors are working with Introverted customers, it could work. Do you think the majority of the public are introverts or extroverts? I suppose it depends on your circle of influence, your family, etc.

We often think of certain careers as being intro or extroverted ones. Accountants are thought to be Introverts but there are always exceptions. Realtors are usually an extroverted bunch as it is our role to communicate with the public. If an Introverted Realtor meets an extroverted customer, it could be like crossing the beams in Ghostbusters!

Do Introverts have a place in Real Estate?

We Take a Licking and...

2008-06-10T08:07:38Z

As Realtors, we set appointments with people to see a house or houses. They tell us that they will meet us at the house. You get there at the prescribed time and? No Customer. How long do you wait for a customer? At what point do you call them to see if they are coming? If they do show up late, do you give them a piece of your mind? How late would they have to be for them to be really late? I had a recent experience where I drove across town, even confirmed with the woman and then she no showed. I called her 15 minutes after the set time and it just went to the machine. What are your stories?

Which one are You?

2008-06-04T07:27:05Z

Agents work on Commission. We work hard to get our customers to closing and then are rewarded with a commission check (minus fees, taxes and shipping and handling fees). Now we have a chunk of money and what do we do? Are you the kind of agent that puts it away, pays some bills and look for the next deal or are you the type that spends like a drunken sailor. "Hey lunch is on me office, I had a closing!"

I think this notion also is affected by life outside of the business. Are you single, carefree and free spirited or do you have a family with kids, significant other?

Also, I think there are people that are savers and some are spenders. I have always been a spender. Moving from the corporate world of steady paychecks to the Real Estate world of a chunk here...nothing..a chunk there...nothing requires a great deal of discipline.

Which type are you?

Are Bumper Stickers the Best Way to Communicate?

2008-05-27T14:37:32Z

As Bloggers, we of course feel that this is a great way to get our thoughts and messages across to others. Do people that plaster bumper stickers on their cars feel the same way? We all see them everyday. In fact, we are guilty of pulling up closer to read the fine print. I saw one the other day that said, "I Love my Wife." Did he put it on his car with his own free will or did his wife tell him to put that on. Don't get me wrong...It is very nice that he feels this way but hey, does it change the way that I feel about him...or her?

People have political stickers on their car and sometimes forget to take them off. (I hope Ross Perot wins the election). Lots of funny ones, dirty ones and even ones that tell us what we can do with our horns!

Along with this conversation goes the magnets that we love to have on our cars. There have been success stories when agents are at a light or in a parking lot and a customer approaches them. The first thing I thought about was that I had to watch how I drove, if I had my name on my car. The nametag took some getting used to, especially when people call you by your name and you think they know you.

Do you "Have a Guy?"

2008-05-23T15:28:48Z

When I worked for the Ritz-Carlton in Philadelphia, we had a guest who called to ask how to get to the hotel from the airport. We told him about various transportation options including taking a taxi...which he did. He had the ride from hell and when he got to the hotel, he was steaming mad. He went off on the bellman, he went off on the Front Desk clerk and he wrote a letter to the General Manager stating his experience "with our transportation company". This was a Philadelphia Cab Driver!

The point of this story is that, as agents, we often find repair people, home inspectors and mortgage companies that we like to do business with. If we have a customer call them and only them, are they perceived to be "our guy?" We have been taught as Transaction Brokers that our role is to manage the transaction. I work with agents who say, they want a job done right and know that their lender or their inspector will do a good job. He also said that he had hired this person to work for him on 2 occasions so he actually could say that it was "his guy!" And if an office uses a certain Title Company, is this the same thing?

Thoughts?

Are you Bugged?

2008-05-20T07:11:08Z

Termite Inspections. WDO (Wood Destroying Organisms). Most lenders require a clean report before they lend their money. Be honest. Haven't you watched countless WDO inspections and thought, I could do that! Poke a stick at some wood, shine a flashlight. Walk a Ladder. It does look surprisingly easy.

Of course, everything looks easy when you know how. It is very easy looking in from the outside. A quick story. I worked in the hotel business for about 10 years. There was a member of the Bellman staff whose sole responsibility was riding up and down the freight elevator. The hotel wanted to test a new method of not having any luggage through the main lobby. All luggage was to be sent to the rooms via the freight elevator. 85-90% of the time, other employees would look at this guy, sitting in a chair, reading the paper, shooting the bull with people and many commented, "Boy, I would love to have that job."...Until the day that there was 200 check-ins. This normally composed man was now sweating, frantic and standing next to an elevator filled from floor to ceiling with luggage. It didn't look so easy then.

Back to Pests...Like any other profession, there are those who are good at their jobs and those who aren't. There are times when you witness a WDO inspection and wonder, Could I do that?

They call them Bandit Signs...

2008-05-19T14:55:21Z

You see them everwhere...

"We'll buy your house for cash!"

"Amazing New Face Cream that will take years off of your life"

"Get 100 T-shirts for $10.00. Limited time offer."

These small cardboard signs sit on a little wire frame and are used by countless numbers of people and professions. Realtors use them for open houses as they are much easier to put up and take down with regards to weight and portability. Only 1 small issue.

Cities, Counties and Towns have waged an all out war on these bandit signs. They have employees who drive around with their hazards on and pick up and discard of all of these signs. What happened to free commerce? If we as Realtors have an open house, in our minds those signs will only be up for a few hours and then will be removed. WE are not like everyone else, right?

I was driving home through a suburb of Orlando the other day. This is a neighborhood that is famous for picking up every sign they see. I had to laugh because the Homeowners Association had these signs all over the neighborhood telling all of the residents about an upcoming meeting. I actually thought it would be funny to pick them up and discard them (If it weren't for the fear of being arrested...)

These signs are a communication device. I agree that some of them are obnoxious but so were the political signs. During our Primary, I would see about 50 signs all lined up on corner after corner. OK, we get it!

If there could be some compromise when it comes to allowing these signs during certain hours of a day, it would be a great relief.

The 5 Hour Home Inspection

2008-05-16T11:51:55Z

It started on a balmy morning at 8:30am. At 1:30pm, we were locking up and heading out the door. 5 hours AND it was a vacant house. It almost doesn't seem possible (if I hadn't been there standing the entire time). 5 hours for $400.00. That's $80 bucks per hour..oh yea and you get a handy dandy report emailed to you.

Can one be too thorough for a home inspection? Did I mention that the house was being sold as-is? Of course, proper protocol says that the Agent should be there with their customer. If I had left, I could have driven from Orlando to Tampa and back...twice! I could have gone to the library and knocked out a few chapters of War and Peace or maybe gone to a fine dining restaurant (I know, for breakfast) and had a nice sit down 5 - course meal and probably time for dessert!

In any inspection you usually have the agents crossing their fingers and showing a poker face while the list is being read. ("Please, make it minor stuff, make it minor")

When you leave a 5 Hour Home Inspection and you feel like you need a shower, you know it went on too long!

Ok - Quick Poll on Blogging

2008-05-16T06:55:00Z

Do you blog the same time every day? every week? Are you a blogger that perfroms a ritual as in doing it the same way everytime? Where do you get your blog ideas from? Do you blog on weekends? Would love to hear about it.

I find myself blogging early morning, based on the day. I seldom blog on weekends although I do get responses to my blogs and comments on my cell phone so I sometimes respond. I try to blog 1-2 times a week. My blog ideas come from real life happenings or things I witness. I send myself an email with my blog ideas and could have 2 or 3 in an email.

How about you?

Overheard at the Gas Station

2008-05-15T11:03:15Z

There I was, pumping gas and minding my own business. The lady at the next pump was talking to the gas station attendant and when they finished their conversation, she said, "Don't work too hard"

What a concept! Don't work too hard. How hard is too hard? Is this becoming a way of life for some? Not to work too hard? I have always prided myself on being a hard worker. Having tasks and goals that, upon completion, give me a sense of satisfaction. If we tell someone not to work too hard, does it become a self fulfilling prophecy?

What if someone said, Work as hard as you can until you drop? Both are extremes and a work ethic is something, I believe cannot be taught. You either have it or you don't. I love it when blog ideas come from everyday life. When i heard this today, I kept playing over and over in my head.

Does the worker who was told not to work too hard finish her day and say, mission accomplished?

Does the lady who said this to her feel that she has done her duty?

When reading this blog, don't think too hard!

New Home Construction and Commissions

2008-05-13T10:24:27Z

During the Boom, there was a certain builder in our market, who decided that commissions would be a fixed amount of $3,000. Whether you sold a $200,000 or $800,000 home, you got $3,000. Realtors throughout the land griped and grumbled. We planned our revenge and many decided that they would not educate their customers about this builder's homes. Agents knew that they were not ethically able to do this but with a little tweak here and there, who would notice?

We all know that the market took a turn...a sharp turn. This same builder not only went back to 3% commission but often offered bonuses and incentives for agents to sell their homes.

Realtors have short memories...especially when it comes to commissions. I won't go as far as saying that agents are only out for the money but if it can be done with a bonus on top of it...all the better!

Most agents would not turn down a customer who wanted to buy a home with a builder, even if we don't especially care for their business practices. Would you?

You want Fries with That?

2008-05-06T12:08:33Z

There has been a great deal written on agents leaving the business as sales have taken a down turn. My question is about the agents who have been able to stay in the business while supplementing their income in some way...even Real Estate Related. I will tell a personal story. I got an email from a company out of Syracuse, NY that was looking for photographers. I almost deleted it but something about it caught my eye. I responded and they were looking for people to take pictures of houses from the street for aide in valuating them. They would pay a photographer $10.00 per house. I signed up and have been taking pictures for the last 8 months or so. it is not always consistent. There are many days with no assignments but sometimes you get a chunk of houses.

The point is that there are things out there that agents can do that don't take them away from the business completely. If they get a part/full time job at Macy's, then they are there for their entire shift and don't have the opportunity to perform any of the the functions of Real Estate.

I am curious if anyone is or knows of someone making some side money while still very much staying in the business.

The Fence Sitters

2008-05-06T08:03:41Z

Even in this market a buyer that is sitting on the fence can be pushed over with a little down home sales skills. Agents have a bevy of tools at their disposal to turn a potential buyer into a closing. Of course, there are many seminars that you can attend which has everything from psychological warfare to innovative tips on how to show property to even Psychology 101. What works for you basically depends on you and the individual customer.

There is still a very strong competitive spirit in people. The customer that utters the dreaded, "If it is meant to be, it will happen" makes most of us cringe when we hear it. That translates to the popular term used by millions of kids today..."Whatever".

Moving a buyer that is in the looky loo stage to an actual contract takes some tact, some psychology and the ability to say it like it is. It is not always going to be a home run every time but when it does work, I personally believe, that confidence builds and a momentum is created!

Is it Me or Is it Them, It's Them, Right?

2008-04-30T14:45:29Z

I don't know what has changed recently but I have received 3 calls in the past few days from people claiming they saw me as an active member of Active Rain and then proceed to give me their sales pitch. From Lenders, to Title, to fancy gadgets that help get us more customers, it is as if we need a do not call opt out for blogging!

I have always felt that as a Realtor, it is important to be accessible for anyone who calls. I never was bothered by putting my number out there or by excessive spam mail because the delete button is easy to hit...many times.

I wonder if anyone else is experiencing an increase in "sales" calls from your association with Active Rain?

Functional Obsolescence...How Far is Too Far?

2008-04-30T10:55:28Z

Functional Obsolescence is one of my favorite terms in Real Estate. Landlord.com describes it as:

Functional Obsolescence: Functional obsolescence occurs when a property loses value due to its architectural design, building style, size, outdated amenities, local economic conditions and changing technology.

The question is if someone is living in a house that is functionally obsolete, How Much is too much when it comes to making changes. In a Sellers market, a sellers point of view would be that it is the buyers problem. as long as we can sell it, the buyer can do anything they want to it...even tear it down. In our current buyers market, we may need to see more creativity on the part of a seller.

If removing a wall in the house opens up the entire space, is it worth it? If changes could be made for let's say, $10,000, isn't that a figure that most likely would be taken off of the sales price anyway?

Clearly we are talking in generalities as every house and floor plan comes with its own set of challenges but isn't it worth taking a look? We know that cosmetic changes affect the appeal of a property both at the curb and inside so if a seller takes that to the next level, wouldn't it make good business sense?

Stood Up at the Altar

2008-04-29T16:19:57Z

No, it has not happened to me. I am in a great 8 year relationship but have never been married. If anyone has ever been stood up at the altar, my sympathy. If it was anything like the scene last year from Grey's Anatomy, then I feel for you. But this post is not about being stood up at the altar, just stood up!

In this ever changing market, where buyers are supposed to be Gold, someone has told all of them yet about a simple thing called Etiquette. Here was the scenario last weekend...Saturday was a yard day, worked hard moving piles of this and that and hauling stuff here and there and then got showered changed and into my Realtor costume for a showing across town. It was actually 2 homes with people I had only spoken to once on the phone and had been communicating heavily through emails. Listings were flying and comments being made. When I got in the car, the GPS said it was 25 miles to my destination. After stopping for gas 2 times on the way (kidding, just seeing if you are paying attention), I arrived about 10 minutes early to the 1st house. As I pulled up, the phone rang and it was the husband, whom i had never had any contact with, telling me that they were not going to be able to make it due to a whole series of circumstances. He ended with, "I wish you good luck."

This is when you hang up the phone and stare at it for a minute asking yourself what just happened. I turned around and packed a lunch for the 25 mile trek back home. I was not happy but quickly got over it remembering a cute saying I had heard throughout my Real Estate career that went something like, "Buyers are like tires...they roll over you and then do it again to see if you are ok" Ok, so maybe I made that one up.

I got back to the office and took the automated listings off for the buyers and figured that they were done. I was mistaken. The wife sent me an email the next day apologizing and then asking to change her criteria. I responded by asking her if she had contacted the list of lenders I had sent her.

Almost afraid to ask but What would you have done?

Creating a Mystique...ooh...ahh

2008-04-21T15:29:06Z

When I first heard the word, "Mystique", it was while working at The Ritz-Carlton Hotel Company. For those of you that have stayed at a Ritz-Carlton, you know that their level of service is tops in the industry. The word mystique has a different meaning for all of us. I take it to mean a sense of the unknown. Almost like what is around the next corner.

I grew up in Philadelphia and along Walnut Street in Center City, it is nicknamed Restaurant Row because some of the best Restaurants in the country reside there. Back in the 90's, a new restaurant opened up on Walnut Street and as I drove by, I saw that there were people lined up outside. I thought, wow, that place must be popular! We finally got around to going for happy hour and we took our place in the line. A Bouncer type was outside with a walkie talkie, speaking with someone on the inside. The inside man would tell the bouncer type when he could let another few people in. We finally got to the front and when we got inside, the place was half empty. Mystique!

The restaurant did a great job of creating a mystique and wonderment of what was inside. There was only one problem. They got us there under the spell of mystique but funny enough, we never went back. Not that it was a bad place but the spell was broken. They couldn't get us again with the line routine.

The point is that mystique can be a great thing but there has to be something behind the mystique to keep a lasting relationship. In Real Estate, Follow-up, great service and a great attitude keep people coming back to you again and again!

Does the Term "Free" Denote Value?

2008-04-18T09:17:15Z

I used to work for The Ritz-Carlton Hotel Company. My Gold Standard was set very high with all of the high levels of products and services offered. One of my roles was in Human Resources. We were there for the Associates to handle all of their working experience. One of the perks of employment was that during an 8 hour shift, they were entitled to a free meal in the Employee Dining Room. It wasn't called a cafeteria, it was Employee Dining.

There was a designated chef thats sole duty was to cook for the associates. On a daily basis, there was a hot entree or two, many side dishes, hot dogs, often hamburgers, a full fresh salad bar, coffee, a soda dispenser and usually some form of dessert. The other perk was that on the days that there was a Sunday Brunch or event in the hotel, the leftovers would often work their way downstairs. You could be eating Shrimp Cocktail or Coquil St. Jacque on any given day.

This benefit was FREE to the associates. It never failed, that associates would complain about the food on a given day. We often talked about charging .50 cents per meal so that there would be a value given to the food.

I see this relating to Real Estate by all of the marketing perks that agents are offering their customers or potential customers. Call Jim and I will give you a FREE Home Warranty (valued at $395). If you call before Midnight Tonight, I will supply you with a FREE Market Analysis on your home. Send me an email to receive your FREE list of what Not to do when selling your home.

Come on. The general public is not that naive, are they? All they have to do is pick up a magazine on Real Estate and quickly learn that everyone is offering something for free.

What if we rocked the boat and placed a small price on a Market Analysis? For $25.00, I will give you a comprehensive report, not only on your neighborhood but also on the demographics and psychographics of a potential buyer. I will also analyze your home with my REAnalyzer system which gives you the optimum selling price.

Wouldn't this be an interesting experiment? Call right now and you will get a FREE Ginsu Knife!