I doubt I am the only REALTOR®  who creates their own narrative every time they show a home, especially a foreclosure or short sale property. As I approach the house I observe the attention to detail reflected in the maintenance or lack of maintenance visible from a distance. As I fumble with the lockbox I notice the little things, the polished doorknob or the broken screen on the front of the house.

Opening the door I am immediately hit with an assault on my olfactory sense and find the musty smell of mold a tell-tale sign that the former owners reached a point of desperation before moving out and either deliberately or inadvertently allowed the commodes to overflow or the shower to overspray onto the bathroom floor and soak through the floor and into the drywall ceiling below.

As I lead the wary buyers down the stairs to the partially finished basement I am overwhelmed by the stack of building materials waiting for the owners to finish what they have started and I realize that they had good intentions. They had dreams of a home for their family when they realized that the sky really was falling and they would be forced to retreat to a small decrepit rental unit or single-wide perhaps never to dare dreaming again.

As I share the excitement of the young first-time buyers who tell me how they are going to finish the basement, mitigate the mold, trim the lawn and create their own American Dream, I can't help shedding a tear for the family that a year or so earlier had similar dreams.

Our business is not about numbers and square feet and interest rates and short sales. It is about people, about families, about dreams and shattered dreams. Unless you are willing to let the narratives of the families you serve connect with your emotional inner being, you will miss the greatest reward of being a REALTOR®.  If we are afraid of being hurt when we share the broken dreams of one family, we will not have the joy of sharing the budding dreams of another.

It has been more than half a century since I was an undergraduate in Opal Cole's Speech Class in which she required everyone in her class to prepare and present a speech on the same topic: Your Attitude Determines Your Altitude! I don't remember what I said but I will never forget the topic. There is no doubt in my mind that our attitudes are a major determinant of our success.

Of course skill and knowledge are essential if we are to perform well but competence alone is insufficient as a springboard for successful sustained performance. And the more challenging the business environment becomes, the greater the importance of attitude becomes. Listening to some agents talk, you would think that there is no alternative but for all of us to throw in the towel and close up shop. 

Why would anyone want to do business with a REALTOR® who exudes pessimism and defeatism?  How's the Real Estate Business? Terrible! Sound familiar? If that is our attitude we have already lost the battle. Are some niches and markets for real estate in shambles. Of course they are. But that does not mean that all niches and markets are in shambles.

With record low interest rates and real estate prices the lowest in recent memory, this may be the best opportunity first-time home buyers will  every see. Add to the mix, an $8,000 tax credit and what is a surprise to me is that there is not a stampede among eligible buyers to take advantage of these highly favorable conditions. How's the real estate market? It has never been better! There are some incredible opportunities in the market! Those are the messages we should be sending in these troubled times.

Yes, our attitude may well determine our altitude! 

Whether the present programs intended to help embattled home owners get control of mortgage payments and keep their homes go far enough is debatable. What is not debatable is that millions of Americans are still facing difficult odds with more expenses than income. And one of the biggest, in most cases THE biggest, expense items is the monthly mortgage payment.

Hearing the good news that programs are in place to assist you with loan modification, i.e., restructuring your mortgage so as to bring your payments down to where you can more easily pay them without neglecting other bills or daily expenses, may sound enticingly simple. But the reality is that there is still a distance between the promise and the reality. It is not a simple matter to qualify for and achieve modification of your mortgage. It is possible, but it will take some determination and patience. The demand clearly exceeds the human capacity of the system to respond in a timely fashion.

One of the first places to look for him is a special government website found at <http://www.makinghomeaffordable.gov> . Be sure to follow the links on this site. There is a wealth of useful information here.

Additional help can be found by reading the Bankrate.com article, Tips for Buyers: Mortgage Application 101. This article provides help for homeowners and/or buyers whose first attempt at a mortgage loan has been rejected. You can read this article by clicking on this link:


As I have previously noted, if you or someone you know, are among those who are concerned about the possibility of losing your home, take advantage of the above sources. If you need additional help, give me a call at 913-709-4423 or send me an email. I can't guarantee that I can help, but I will be glad to help whenever and wherever I can.


 
   John

John E Cleek, Ph.D., e-PRO,
Realtor® and Marketing Consultant
The CrownPlatinum Team
Crown Realty of Kansas
Miami County - Linn County - Johnson County
1005 W. Amity • Louisburg, KS 66053
Licensed in Kansas and Missouri
johncleek@crownplatinum.com
www.crownplatinum.com
Pho: 913-709-4423 • Fax: 913-837-2549               
Finding the RIGHT REALTOR . . . Priceless!

The answer depends on your reason for selling and your expectations for the sale. If you have already decided to move, taken a job elsewhere, have purchased another home, or are facing mortgage payments you cannot afford any longer, then the answer is definitely, Yes. If the kids no longer living at home or you're planning to retire in the next year or so, then the answer is most likely Yes.

But, whatever your reason is for selling your home, it is more important now than ever to do your homework before you put your home on the market. There are four key elements that go into a successful home sale -- at any time -- and failure to pay attention to any of these can result in a home that stays on the market for a long time or results in a sale price below the market. Read More >>>

During the current presidential campaign the tax proposals of the candidates have come in for considerable discussion but I have not heard a strong defense of the danger concentration of wealth at the top poses for our society and the economic well-being of everyone.

Robert Reich, former Secretary of Labor in the Clinton administration and a leading economist, in an op-ed piece in today's New York Times reported on an alarming trend,

The top 1 percent now takes home about 20 percent of total national income. As recently as 1980, it took home 8 percent. Although the economy has grown considerably since 1980, the middle class’s share has shrunk. That’s a problem not just because it strikes so many as being unfair, but also because it’s starting to limit the capacity of most Americans to buy the goods and services we produce without going deep into debt. The last time the top 1 percent took home 20 percent of national income, not incidentally, was 1928.

These are difficult times for real estate professionals. If people don't have stable income and access to down payment funds they are not going to buy the houses we list. But what is true for us as realtors® is also true for virtually every sector of our economy. A healthy economy is impossible without a strong middle class.

For most of us, saving has become extremely difficult as it seems to take everything we earn to pay the bills, the mortgage, our kids college expenses, medical expenses, high gasoline and utility costs, etc., etc. However for those in the top 1 percent who now receive 20 percent of our total national income, this is not the case. Thus if we want business to be good, housing to recover, and our economy to thrive we have to find ways to direct a more reasonable portion of our national income to the other 99 percent, especially to those in the middle. They are the ones who will spend it and contribute the most to recovery.

As realtors® we need more middle class homebuyers with income and wealth sufficient to buy homes and pay their mortgages. That is why it is a matter of enlightened self-interest for those in the more affluent upper income range to do everything they can to see to it that  the middle class to flourishes.

I think it was Tom Peters who first used this phrase. What he was saying was that continuing to do things the way we've always done them is not going to guarantee success in the future. Even though, or especially though, the way we've been doing things has produced success in the past.

Maybe it was also Tom Peters who said that one of the hardest things in the world to do is to stop doing things that were successful in getting us where we are today. But the truth is that where we are today is not where we were yesterday or the day before. And, if you are waiting for things "to get back to normal", I've got news for you: Things are not going to get back to normal, if by normal you mean the way they used to be.

It would be easy to blame the tough times in real estate today on the economic conditions we are all confronting. But it is only coincidental that the worst economic conditions since the Great Depression have developed at the same time that the impact of technology has changed the real estate industry forever. Sure, there are plenty of highly successful agents who have a huge referral network that will continue to work for them and insulate them from the reality that new agents have to deal with every day. New agents without an established referral network will either acquire and use the tools that didn't exist a half dozen years ago or they will have to find another way to make a living.

I know successful agents who refuse to use e-mail much less market their services on the Internet. I also know a lot of agents who are struggling trying to replicate the success of experienced agents. It is not necessary to spend a fortune on technology, be a computer nerd, or hire expensive consultants to succeed in the new world of real estate. It is necessary however to be open to what technology has to offer and develop a plan for using those tools that are suited to your style and, more importantly, to the style of the clients you seek to serve.

I don't think it is a purely academic question to ask whether "listing agent" or "listing broker" is the best way to refer to the agent representing the Seller. The clear implication is that the primary task of this agent is to "list the seller's property on MLS." Sure that is an important reason why sellers come to us -- they want us to list their property for sale by other agents in the network. But the agent representing the seller cannot earn their commission simply by listing the property for sale.

A recent blog posted by Bryant Tutas Broker/REALTOR(R),Tutas Towne Realty, Inc, Poinciana, FL made some very important points regarding the role of the agent representing the seller. My first reaction to his blog was the way he uses the term "marketing". He wrote, "In this day, of disintermediation and transparency, I truly believe that it is the intangibles that will make or break us. There is no doubt that Sellers can find everything they need, to sell their property on their own, online. Heck, they can even get their property placed in the MLS for just a few hundred bucks. And the reality is MOST properties, by far, sell through the MLS. I think the figure is about 85%." Okay so far, but then he says, "They do not need me to "market" their property and that's a fact."

My problem is that this is not what marketing means to me. Marketing is not the listing of property on the Internet -- at best, that is a part of selling, not marketing. Marketing is the total process involving the "product, price, placement, and promotion."  It involves doing whatever it takes to help our clients sell their property at the highest price, in the shortest possible time, with the least amount of inconvenience and stress on their part.

Broker/Realtor® Tutas pushed my hot button again when he continued, "So why pay me x% to market their property? They shouldn't. If all they needed me for was marketing their property then I agree completely they are wasting their money. Hire a marketing company like "For Sale by Owner" and have at it." No, no, no! Companies like "For Sale by Owner" are not "marketing companies." They are companies that sell services to homeowners that assist them in attempting to do their own marketing. There is a world of difference between companies that do this and professional realtors® who engage in the total marketing function on behalf of their clients.

But before I had time to react further I read on, and realized that my differences with Tutas were more a matter of semantics than substance. I totally agreed with him when he said that if the owner wants to handle their own marketing they should …

Be prepared to pay them [companies that offer "For Sale by Owner" tools] upfront.
Be prepared to arrive at your own pricing.
Be prepared to arrange all of you own showings.
Be prepared to screen potential Buyers.
Be prepared to negotiate your own deal.
Be prepared to complete all contracts and disclosures required by law.
Be prepared to deal with inspection issues.
Be prepared to deal with unscrupulous REALTORS®, lenders and Buyers.
Be prepared to deal with your own emotional issues with no one to turn to for advice and comfort.
Be prepared to dispute a bad appraisal.
Be prepared to find another Buyer when yours decides to walk at the last minute because you lost your temper with them over a $100 washing machine.

Yes, yes, yes! That's what I'm talking about. Marketing is to total process involving pricing to market; making sure the property is market ready; preparing a special website to promote the product (the property) effectively; making sure that agents who may represent buyers who are looking for properties like this one know it is on the market; negotiating a contract that is a good deal for both parties; following the transaction to closing making sure that a good deal doesn't go south before closing; etc., etc., etc.

Although Tutas and I may continue to differ over semantics, we have no disagreement when it comes to substance. As the listing agent/marketing agent it is my responsibility to provide total marketing service to my clients. If I do this well, you won't hear them asking, "How do you justify your commission?" Instead, they will lavish praise to the point of embarrassment sometimes because of the way you have helped them accomplish their goals. And they will do this even when their property sells the first weekend it is listed!

While none of us are in the real estate business as a public service, if we are the professionals we should be our goal will always be to put our clients interests first.

In today's housing market a lot of clients are confused, frightened, threatened, and in real trouble. They got into trouble with a lot of help from realtors who helped them buy houses they shouldn't have bought with money they shouldn't have borrowed and now they need our help in finding a way out of the mess they are in.

Yes, there is plenty of blame to go around, but the issue today is not so much "Who screwed up?" but "What went wrong?" 

The numbers of troubled loans still in the pipeline is staggering. We can wring our hands and proclaim, "Ain't  it awful," but there are thousands of homeowners who need more than a sympathetic listener. They need proactive realtors who help them understand that the time to deal with a problem is before it becomes so overwhelming that there are no reasonable solutions.

These homeowners facing foreclosure and the loss of their home within the next six to 12 months need to know that we may be able to help them before they lose their home. Each of us should educate ourselves on the process of "loss mitigation" and make ourselves available. Not only is it something we should do as professionals; it is something we can do which will benefit us at the same time it is benefiting others.

In real estate as in other areas of our social interaction, there is little likelihood that any two observers will draw identical conclusions from the same set of "facts". Sometimes it is selective memory, wishful thinking, divergent backgrounds, etc.

But the issue is not why two people draw divergent conclusions from the same set of "facts". The issue I want to highlight is that regardless of the "facts" involved, the perception of an individual is the only reality that matters.

If we apply this to the current real estate meltdown facing some regions of the country, it is clear that although the use and abuse of sub-prime loans has varied widely from region to region, the barrage of national headlines regarding foreclosure rates, housing prices, etc. has impacted Realtors, lenders, home buyers and sellers in all regions.

Whether or not a real crisis exists in a given local area, if the buyers and sellers [ibelieve there is a crisis, their buying habits will be impacted. In other words, their perceptioin shapes their reality -- and then creates a new reality for everyone around.

What do you think?

Recently I got out of my car to greet a client and assist them in evaluating a property they were considering.  Almost the first thing the client said as he took my hand was, "Over the past month we have called at least a half dozen agents inquiring about property, but YOU ARE THE ONLY ONE WHO RETURNED OUR CALLS!

His question was very direct, "Why don't agents return calls?" I had no explanation to give. I simply don't understand why anyone would offer their service to the public as a realtor® and then fail to return prospect calls. Are some of them a waste of time? Perhaps.  But  the only way  to  find  the ones that are  going to produce a sale is to RETURN ALL CALLS!

I have a longstanding policy, one that I followed when I owned and operated an international trading company 25 years ago and  have never wavered in my  commitment to it. Every call will be returned the same day it is received! Even if the only response I can provide is, "Thank you for your call, I will gather information and get back to you tomorrow (or another date certain). I follow this policy whether the inquiry is received via voice mail, text message, email, or snail  mail.

For me, the name of the game is SERVICE TO CUSTOMERS and I want to be known to my customers as being responsive to their needs. This policy defines who I am and what I believe about business. I want my clients to tell all of their friends, Call John Cleek, he will answer your call!