Yesterday's housing bill is today's housing law. Among the highlights, first-time home buyers will receive a tax credit of 10% of the purchase price of their home, up to $7,500. If you are wondering how Congress defines a first-time home buyer, it's someone who hasn't owned a house in the past three years. The validity and efficacy of the credit has to be questioned, because it's really not a credit; it must be repaid in equal installments over the subsequent 15 years.
Another highlight helps people who have fallen behind on their mortgages and who owe more than their houses are worth. In such situations, refinancing is difficult, if not impossible. The law seeks to resolve this dilemma by encouraging lenders to forgive delinquent borrowers' debt down to 87% of the property's current appraised value. At that point the homeowner can than refinance under an FHA plan (though he or she will be expected to pay higher FHA insurance premiums).
The new law imposes few changes on Fannie Mae and Freddie Mac. Both institutions are a mess, yet the law oddly imposes no changes in management or business approach and no penalties on shareholders. Taxpayers instead are given two dubious protections: The first is that the treasury secretary will have the right to dictate terms if the government has to stump up equity capital for the firms. The second is the creation of a new regulator, whose effectiveness one must question, considering the effectiveness of past regulators.
Outside of the housing market, general economic health is waning. U.S. second-quarter gross domestic product came in below expectations, rising 1.9% versus expectations for a 2.2% rise. Slowing GDP, in turn, is impacting employment, and not in a good way. On Friday, the employment situation showed that payrolls declined by 51,000, pushing the unemployment rate up to 5.7%.
Without a doubt, the most fascinating aspect of a career in real estate is watching how people handle stress. How sellers deal with a soft market. How buyers cope with the loss of a property that they love, to a higher bidder.
Some clients seem to subscribe to the philosophy that we should love people and use things. Others have the cliché turned around. It's sad to see a seller grovel over a few thousand dollars. Or, an executor waste a year of the heir's time by playing real estate agent, appraiser, and stubborn psychic.
Conversely, it's admirable to meet a seller who 'walks the talk'. Who is as friendly as their refrigerator magnets suggest. Who is as kind as their first impression or smile. Who actually glances at their WWJD bracelet before making a counter-offer.
I currently represent a seller whose home has a myriad of religious pictures, artifacts, and statues. They even have a Saint Joseph statue buried in the yard. Their words are demeaning, sarcastic, and cruel. Dracula would feel at home with this couple. Recently, I looked up hypocrite in the dictionary. It was no surprise to see a small picture of them next to the definition.
My greatest challenge is to sow what I expect to reap. To be patient with buyers. To be understanding and compassionate with sellers. At times, agents need to be a crucible that can contain the heated personalities. Susan Scott in her excellent book Fierce Conversations suggests picturing a placid lake, and allowing your waters to remain calm during troubled times.
For an Italian from back east, staying calm as an unrippled lake is very challenging.
Biting my tongue, counting to ten, practicing what I preach, and putting the golden rule into play is easier said than done. I love seeing how people handle stress. It's almost as enjoyable as seeing myself reflected in the behavior of others.
When you hear people talking about Internet security on the news or around the office, do you find yourself nodding along as people throw out words you've never heard of? Do you ever ask yourself, "What is a botnet, anyway?" Here's a quick-and-dirty, plain-English rundown on some key cyber security terms and concepts.
Antivirus: Software that detects malicious programs hidden on your computer and prevents more such programs from installing themselves, often by running scans on your hard drive and reviewing emails for possible threats. Botnet: A collection of computers that have all been set up to do the same thing-usually something bad, like forwarding spam or infecting other computers with viruses. It's called a "botnet" because it is, basically, a network of hijacked "robots." Encryption: Encryption protects your data while it's in transit by turning it into a code that's unreadable unless you have a key. It's then deciphered on the other side. Firewall: A firewall stands between your computer or your private network and the rest of the world. It's an essential line of defense that monitors what comes into your system. Hotspot: A physical location where you can access the Internet wirelessly through a portable computer. You can find hotspots at many coffee shops, hotels, airports, and libraries. Social Networking: Web sites such as Facebook, MySpace, and LinkedIn all enable social networking-they give users a way to find people with similar interests. But because they're based on the sharing of personal information, they should be approached with some caution. Spyware: Another malicious form of software that downloads itself to your computer and literally spies on your activities, sending back information to its host. Virus: Just like biological viruses that invade the human body, replicate themselves, and spread, computer viruses do the same thing. They're malicious programs that are often spread through email, downloaded files, or CDs.
I was talking recently with a friend of mine and we both agreed that what we really wanted in life was to feel special. We wanted someone in our world to look at us and tell us how important we were to them, how we had impacted their life, how they couldn't imagine life without us. Being single currently, we both had the idea that having a significant other would be the optimal way to accomplish this goal. However, for me, it's not the only way.
The Universe Provides In Many Ways You see, I have a lot of friends, and my friends are VERY good at appreciating me. And then there are my clients, who very often send me loving messages of appreciation for something I wrote in an article or my book or for a product I designed to help them with their business. In short, there are many ways I can find to feel special.
There's Always Room for More But I have engineered my life to provide this. I have surrounded myself with appreciative people. I have spoken openly about my feelings to my clients, so my clients feel like they can do the same with me. I appreciate others regularly, so they tend to respond in kind. And yet, even with all of this positive reinforcement, there are times when I'm feeling blue and would like to feel just a little more special.
Everyone Wants to Feel Special The last sentence made me a little nervous to write because I'm sitting here thinking what a great life I have and I'm wanting to feel even MORE special? How ungrateful is that!??! But it's not ungrateful - I am grateful for each and every moment in which I am feeling special. And I love the feeling, so I want more. It doesn't make me a bad person, it makes me human.
Your Clients Are Human Too It's utterly human to want to feel special. And many people don't have ANYONE in their lives to make them feel that way. If you take a few minutes out of your day to recognize someone, to take their feelings into account, to show them that they really DO matter to you, then you have found the secret to creating the ultimate referral machine for your business.
Why People Refer Business
Because the people who refer business to you are the ones who are passionate about you. And the way people become passionate about you is if you can create an experience that they can connect to on a positive emotional level. Making someone feel special and valued or even loved is a great way to create that positive emotional experience.
Find A Way To Create That Feeling So, as usual, I'm going to encourage you to start right now. Turn to the first person you see after reading this article and do something that makes them feel appreciated or special in some way. Watch their face light up as they realize the joys of being valued.
Build a System
Then, take a look at your business and see how you can build in some systems to help your clients feel valued. Remember that sincere words of appreciation often go further than a gift certificate and a hug can convey emotions that could never be said in a business context. It doesn't have to cost you money to be effective, you just have to mean it.
My Appreciation
Sometimes it feels as though my words go out into the ethers and disappear. So the emails that I receive are always gratefully received. It's nice to know that someone is listening and getting value from what I'm offering. Thanks for reading.
Housing Market National average mortgage rates increased slightly to 6.37% in the latest Primary Mortgage Market Survey released weekly by Freddie Mac on July 10th. Rates have now posted weekly increases in six out of the past seven weeks. In the week ending July 4th, the MBA's seasonally-adjusted Purchase Index increased to 365.8 from 342.8 in the previous week. This is the second straight week that purchase applications have increased while reaching their highest levels in a month. The latest figure reflects a 6.71 percent increase from last week but a 19.41 percent drop from the same period last year.
New and existing home sales moved in opposite directions again in May but it was the existing home market that showed improvement while new home sales faltered. New home sales declined in May after posting its first monthly gain since October 2007 last month. Sales fell 2.5% in May to a seasonally-adjusted 512,000 homes, down from a revised April figure of 525,000. At the current sales pace, there are 10.9 months of new homes supply on the market. New home inventory declined to 450,000 which is the lowest it has been since May 2005. In May, median new home prices fell back to their lowest levels since March to $231,000 after posting a strong rebound in the previous month. Lower prices helped to increase the new home affordability ratio to 48.8% in May.
Annualized sales of total existing homes in May increased for the first time since February, rising 2.0% from April levels to 4,990,000 units. Sales of existing homes are still down 15.9% from the 5.93 million units in May 2007. Median existing home prices in May increased for the third straight month to $208,600 from a revised $201,200 in April. This is the highest median existing home prices have been since November 2007. The number of existing homes for sale declined 1.4% to 4.485 million units in May. At the current sales pace, there are 10.8 months of existing homes supply on the market. Existing home affordability declined for the third straight month due to increases in both mortgage rates and existing home prices in May.
While there have been concerns for months about the size of losses at Fannie Mae and Freddie Mac due to the credit crisis, the troubles at the two firms increased significantly during the week. Monday, a report from an investment bank suggested that the two firms would have to raise enormous amounts of capital to comply with revised accounting rules. Thursday, Former Fed member Poole claimed that the two firms are insolvent under standard accounting rules and warned that a government bailout might be needed in the future. Friday morning, there was speculation that the government was considering a takeover of the two firms.
The response from government officials was swift. The director of OFHEO, Fannie and Freddie's regulator, reported that they both remained "well capitalized" based on their charters. On Thursday, Fed Chief Bernanke and Treasury Secretary Paulson attempted to reassure investors that the financial system was sound. Since Fannie and Freddie are government-sponsored enterprises, and together account for about 70% of mortgage originations and hold $5.3 trillion in home-loan debt, most investors believe that the government would step in to prevent the collapse of the firms. Friday, Treasury Secretary Paulson stated that he sees no bailout on the horizon for Fannie and Freddie and that the government is working to support them to carry out their "important mission" in their "current form".
Bottom line, despite the negative headlines, comments from OFHEO, the Fed, and the Treasury eased investor concerns. While the stock prices of Fannie and Freddie plunged during the week, investors apparently were comfortable that the firms' guarantees of the mortgage loans were not at risk, and mortgage rates ended the week moderately lower.
How to deal with natural disasters By: Tim Sullivan, Club Member
Imagine that your home was ravaged by a hurricane or tornado, that floodwaters from a nearby river poured into your finished basement, or that a giant tree crashed through your roof during an ice storm. You scan the destruction and wonder, "Where do I begin?"
Standing knee-deep in sewage-tainted floodwaters or reeling from a near-death experience compromises your ability to think clearly. It's no time to begin dealing with a natural disaster; no matter how remote the prospect may seem, you should prepare for it now. Understanding the steps and the common pitfalls of disaster response puts you in a much better position to cope in the event of an actual emergency. So grab your insurance policy and start planning.
Process, players and pace
Disaster response is a process with specific stages, timing and players, some less obvious but no less important than others. Here are the basic steps:
1. Report the loss to your insurance carrier and arrange a time to meet with an adjuster, who will inspect the scene and appraise the property damage. 2. Take reasonable measures to prevent additional losses. 3. Document your losses and expenses (structural, personal property, temporary expenses, etc.). 4. Screen contractors and obtain competitive bids. 5. Assist the adjuster with the inspection and appraisal. 6. Evaluate the settlement offer and obtain a partial "actual cash value" payment. 7. Schedule and complete repairs and replace damaged possessions. 8. Submit receipts for additional expenses to draw against the hold-back amount from the settlement. 9. Be prepared to complete and close the claim within the one-year statute of limitations.
Read the policy, right now Insurance policies vary by carrier and state, so begin preparations today by reading your homeowner's policy - all 15 to 30 pages of it. That includes the addendums at the end that state, "This endorsement changes the policy. Please read it carefully." This will help you to understand what losses are specifically excluded, the payment limits on what is covered and aspects such as deductibles and adjustments for depreciation that can reduce the payout.
Don't be surprised to discover that some scenarios are not covered, and expect to have questions. After all, insurance lawyers write policies and the terms aren't negotiable, so you can assume that the carriers have made every effort to protect themselves. For example, mold has become a huge litigation issue, so many policies impose a ceiling (such as $5,000) on mitigation costs. Most important, familiarize yourself with what the policy specifically expects of you in the event of a claim. To avoid misunderstandings, contact your insurance agent and ask simple "what if" questions to find gaps in your coverage and to learn what deductible or depreciation would apply and whether damages would be capped in certain circumstances.
An insurance policy is a contract. Although passages are subject to different legal interpretations, they should guide your basic expectations. What matters most is not what the contractor quotes in his bid; it's whether the policy says something is covered and what the adjuster's appraisal tool says it is worth. It's better to have realistic expectations now than to discover after a loss that your supposed safety net has some gaping holes. For instance, ordinary homeowner's policies do not cover water damage caused by flooding, surface water or waves, even if water is driven by wind. You need a separate flood-insurance policy for this type of protection. Considering that a quarter of floods occur outside of officially designated high-risk flood plains, many homes lack this protection.
STEP 1: Shout out After a natural disaster, immediately notify your insurance carrier that you suffered a loss, and let the company know if damages are so severe that you need temporary housing. Most policies will pay for two weeks of reasonably priced temporary housing if you are unable to remain in your home, and they may even pay for boarding your pets.
If you have a mortgage, notify the mortgage holder as well. The company has a stake in restoring the value of the property or, in the event of a total loss, applying the insurance proceeds to the mortgage. So ask about procedures for endorsing insurance checks.
Work with the insurance carrier to schedule an inspection by a qualified adjuster. Request a copy of your insurance policy if you can't find your original documents. Expect your insurer to contact you to arrange an inspection within three business days. To expedite your claim, be sure to provide a mobile or temporary phone number where you can be reached.
STEP 2: Cut your losses (and theirs) Policy holders are required to take reasonable steps to prevent further losses as soon as it is safely possible. That means securing the building envelope against weather or theft, usually with tarps or plywood. If possible, restore temporary power to run essentials such as heating and refrigeration, and begin removing debris to reduce hazards and allow repairs to begin.
Failing to take the right steps to control losses can jeopardize the amount of your claim. Don't wait until the adjuster arrives; hire professionals to secure your home and to quickly tackle cleanup jobs that are beyond your ability. If you're not accustomed to climbing up on the roof or operating a chain saw, this is a lousy time to learn.
STEP 3: Document everything After the disaster, you'll need to document your losses with photos and written descriptions and try to salvage old photos and receipts that show what you owned, how much it cost and its age and condition. (To aid in proving losses in the event of a disaster, go through each room of your home today with a camera and take "before" snapshots or video of everything you own, and keep the images in a secure place such as a safety-deposit box). The more evidence you collect, the better. Insurance companies often provide forms that will help you organize your list room by room. Try to include brand names, model numbers, how much you paid and when and where you bought items.
Also be prepared to document your activities and post-disaster expenses by collecting receipts for any money you spend after the loss and by maintaining a journal of meetings, correspondence and calls. The receipts will help you claim the costs, and the journal will demonstrate that you took reasonable care to prevent additional losses and to obtain reasonable prices for goods and services. Be honest and reasonable. If you need to move your family to a hotel for a couple of weeks, don't choose the priciest place in town. Similarly, choose average-price restaurants for family meals.
STEP 4: Be well-adjusted The insurance adjuster who assesses damages will have three objectives: to develop a list of items that are damaged or lost, to confirm that the losses are a direct result of the natural disaster and to assign a value to those losses after applying appropriate deductibles and depreciation factors based on the terms of your policy. For small claims under $5,000, the insurance company typically will award a check for the full amount. For larger claims, expect to get an initial check for less than half of the total amount to get started. Then you will need to submit actual receipts to be reimbursed for additional expenses up to the full amount of the settlement.
When a natural disaster strikes, people understandably want their homes fully restored in the shortest time and with the lowest out-of-pocket cost. The adjuster's goal is to get the homeowner to accept a final settlement and release of liability as soon as possible and at the lowest cost to the insurance carrier, says Florida attorney Alan Garfinkel (www.askthefirm.com ), who specializes in representing homeowners' associations in insurance claims following natural disasters. Although people may be satisfied with their settlements and the prompt service they receive from their insurance carrier and contractors, many could legitimately do much better if they were better-informed and sought professional counsel, Garfinkel says.
"Your home is your biggest investment, and insurance contracts are complex legal documents. This is not the time to ‘do it yourself,'" he says.
The adjuster will count and measure everything, and a computer software program will assign values. If anything is missed, it will have no value. Although these software tools account for regional cost differences for labor and materials, they're not foolproof: Extraordinary demand following a large natural disaster can boost prices, despite government regulations that outlaw price gouging. Get actual bids as soon as possible to verify that the assigned values are reasonable before you settle. If you have worked with a good contractor, ask him to join you when the adjuster visits for a reality check and to guard against missing less obvious costs.
Here's an example of how you can go wrong: Imagine that after a hailstorm, a large section of shingles is missing from your roof and many of the remaining shingles are damaged. Your insurance company agrees to fund a new roof (minus the $1,000 deductible). Within three days you have chosen a reliable contractor who expects to start the job in two weeks. However, you could wind up with out-of-pocket expenses if you fail to ask the right questions. For example, did the adjuster check the attic to ensure that water didn't get in and soak the insulation? If the lighting and fan motors in ceiling fixtures got wet, could they rust or malfunction later? Did the contractor temporarily protect the exposed roof with a tarp to prevent further damage?
Policies vary from state to state and from carrier to carrier. If a hailstorm destroys your roof, you are entitled to a new one that satisfies current building codes, regardless of the old roof's age. However, you could have trouble collecting payment if you have 30 years of wear on a roof that was warranted for just 25. Unless you have "all risks" coverage for personal property, your policy will deduct depreciation before it puts a price on a 10-year-old couch that was ruined.
Garfinkel says homeowners need to understand the rules. For example, if more than 25 percent of the roof is damaged, in most cases the homeowner is entitled to a whole new roof. (You don't have to settle for a patch with shingles that don't match.) If a skylight breaks and water drenches the room below, you should be entitled to new carpeting, not just carpet cleaning. If mold begins to grow, you have a right to professional mitigation - not just cleaning -- to prevent the fungi's return. If walls are damaged, compensation should include replacing trim moldings, not just hanging new drywall. And painting estimates should include the cost of moving furniture.
If you disagree with an insurance adjuster's appraisal or your insurance carrier's offer, your policy may outline specific remedies. For instance, you can hire your own adjuster and present the two appraisals to an impartial mediator for a nonbinding settlement recommendation. You also can retain legal counsel and file suit against the insurance carrier after satisfying the provisions of the contract.
STEP 5: Dealing with a contractor When disaster strikes a large area, transient or unlicensed contractors may go door-to-door offering quick response and low prices. But you're better off seeking bids from local contractors who have established reputations. "It's almost never a good idea to hire the contractor who drives down the street after a storm, particularly if he is from out of town." Garfinkel says.
Reputable contractors will have identification, proof of licensing and insurance, a physical address (not just a post office box) and marked trucks. They seldom will demand money before the work begins, and they will be prepared to specify work, materials and warranties in writing. To be safe, contact your local building inspector, building supply company, Better Business Bureau and recent customers for references. Beware of the high-pressure contractor who arrives in an unmarked truck and offers the fastest or cheapest job if you take out the permits and pay for materials in advance. Often the result is poor craftsmanship, substandard materials or incomplete work.
It's common for a contractor to place a mechanic's lien on your home for the amount of the job pending payment. That's fine, but you should obtain a lien waiver for whatever you pay for so a subcontractor or supplier can't place a claim on your property if the general contractor fails to pay him or her. You also can offer to pay the supplier or subcontractor directly.
A proper bid should include the contractor's name, address, phone number, state licensing number and proof of insurance. It should specify the amount and quality of materials to be used and any warranties. In addition, the bid should state that the contractor will obtain permits and schedule appropriate building inspections, and it should spell out payment and estimated start and completion dates.
Try to find out who will be in charge of the job and what, if any, role the person who prepared the bid will play. Also inquire about whether the contractor expects to use your driveway to deliver materials or park a dumpster. A large boom truck delivering roof shingles or a large roll-off trash container can easily crush or crack a residential driveway.
Advice for DIYers Active do-it-yourselfers may be tempted to do their own post-disaster repairs and keep some of the insurance settlement for themselves. Because the insurance company will only reimburse actual expenses and payments, it only makes sense to do some of the work if the settlement falls short of the actual cost. However, the mortgage holder may specify that the work must be done professionally. This is another case where preparation pays off - examine all possible scenarios before a storm hits so you'll know your rights and your limitations in the aftermath.
Without question, the vast majority of new leads come from the Internet. And given today's challenging market conditions, you want to treat these inquiries like they were precious new-born babes. Here are the online communication "Best Practices" you can easily implement to make sure each has the highest possibility of turning into a full-grown transaction...
BEST PRACTICE: How to Respond to Online Leads
The answer to this is simple, unless the inquiry explicitly asks you to call (which is different than just giving you their phone number), then you respond in the way they contacted you. If their initial contact is via email, you respond in kind -ideally, using the "Critical First Response" email script covered in my March, 2008 column. Likewise, if a prospect texts you, then you simply text them back. By the way, you will see more initial online inquiries via text messages as the "Thumb Generation" reaches the age where they are considering purchasing their first home.
So, when is it appropriate to call an online prospect as your reply to their online inquiry? Here are the guidelines that will give you the greatest chances of converting them to serious clients:
· They explicitly ask you to call - if in their inquiry they provide their phone number AND ask you to call, then by all means do so;
· The inquiry comes from your highly targeted Website - if it is clear that the source of the lead is from your highly targeted Website and they offer their phone number voluntarily (i.e. they were not forced to reveal it), then it is generally safe to call them right away. The reason why the source of the inquiry (in this case, your highly targeted Website) is so important is because it determines whether or not they already started trusting you. As mentioned in many of my previous articles, a highly targeted Website is the most powerful online tool you have to start a relationship with the online consumer before they even contact you. Whereas most inquiries from third-party lead generation services or generic "one size fits all" agent sites are actually quite cold.
In any other situation you do NOT call them first. To do so you risk driving them away because in all probability they just wanted information, not some salesperson trying to set up an appointment. Most human beings feel vulnerable and defensive when they are on the phone with a salesperson with whom they don't have a relationship. That is why the Internet is such a safe place for them to do their "information gathering" before they are ready to speak to a real estate professional. If you receive an online inquiry that does not meet the above criteria (for phoning immediately), then use the modified "Critical First Response" email covered in the March 2008 column that essentially has you ask permission to call. By taking that approach you have a much better chance of having a fruitful initial phone conversation, and of course conversion to business.
One last thing about your email response to online prospects -always include your signature. An email signature is an information block (usually at the end of your message) that includes your complete contact information. In addition to being professional, it is a required disclosure by some real estate regulatory jurisdictions. Once you have established a solid and ongoing client relationship with the prospect, then including your signature in each email message is no longer necessary.
BEST PRACTICE: When to Respond to Online Leads
When it comes to online leads, there is no such thing as "too fast". Online consumers are a very impatient bunch (remember, the Internet connects people around the world in just milliseconds). They expect a very fast response to their inquiries. Ideally, you respond to email inquiries in just minutes of receiving them. This presents a logistics problem however, when you are out showing property, taking a listing or in the middle of a heated negotiation (or on vacation, shopping, playing golf, etc.)
So how do you manage to be responsive without having to sit in front of your computer all day? The most practical answer is to us a Virtual Assistant (VA) who specializes in online lead management. VAs do sit in front of their computer all day and therefore are in a position to respond immediately on your behalf. As mentioned in numerous earlier articles, the best place to find a VA with specific real estate sales support skills like these is REVA Network. In addition to acting as your online proxy by providing immediate response to online inquiries, they can also help you stay in touch with those online leads who are not quite ready to move just yet (see below).
Should an inquiry arrive via text message, you at least will be in a better position to respond to it in a timely fashion since it arrives on your cell phone. Once again however, you could re-direct these messages to your VA to handle them as well.
BEST PRACTICE: Staying In Touch With Online Leads
It is well known that 19 out 20 valid online real estate related inquiries are in the "information gathering stage" and can be 3 - 18 or more months out from taking action. This means if you want to have any chance at all of doing business with this massive 95% segment of online leads, you need a way to stay in touch that doesn't drive them away.
Drip marketing is a proven strategy to turn these latent leads into closed transactions, IF you follow these guidelines:
· Give them value - each and every message of your drip campaigns needs to be perceived as highly valuable by the recipient. If you know the prospect is part of your specific target market, put them into a campaign that addresses needs and wants specific to them. If all you know about them is their interest in a particular property (typical for most third-party lead generation services), then provide them with ongoing, up-to-date information about the properties and neighborhoods in the general area of their interest. Remember, you want your prospect looking forward to your next message, not dreading it.
· Stay in touch, don't overwhelm - you want to stay your prospects to remember you for the right reasons. Avoid having your campaign contact them more than once a week. Any more frequently than that and you will likely push them away. On the other hand, make sure your campaign keeps in touch with them no less than once a month.
· Make it easy for them to say "no thanks" - at the bottom of each message (assuming an email campaign), include easy "on-click" opt-out instructions should they choose to no longer receive your messages. Online consumers do not like to feel they are trapped into receiving something they don't want. Also, since most email drip campaign systems track opt-out requests, you can see whether your campaign is do its job or not.
Online Consumers Are Human Beings Too
There is nothing magic about working effectively with online consumers. They are human beings just like you and me. The key is understanding human behavior in the online context, then leveraging that understanding into practical communication strategies that result in the highest likelihood of converting casual inquiries into closed transactions. That is the whole purpose of defining "Best Practices" -so you can see "Best Results".
Is it just me, or do we spend more time worrying about the safety of our computers these days than the safety of our own homes? You've got firewalls and virus protection for your CPU, but have you changed your door locks since you moved into your house? Do you have ladders, tools, and other things lying around your yard that a burglar could use to break a window and access your home? Do you have an alarm system you never arm? Windows you leave open? Doors left unlocked? When was the last time you walked around your house and, thinking like a burglar, considered just how easy it would be to break in? Yeah, that's what I thought.
Let's take a look at some smart security tips that can help make your home safer for you and your family. And guess what? Most of them are easier to implement than the security software loaded on your computer.
First off, remember that in general burglars will avoid occupied houses. That doesn't mean your family is always safe when they're home, however. There always exceptions to the rule, and you shouldn't assume that nothing can ever happen just because someone is there. If a burglar breaks in while you're not there, your belongings are at risk. If a burglar breaks in when your family is home, your family is at risk as well.
Now that I've got you thinking, let's look at some measures you can follow in order to minimize the risk of being targeted.
Keys: Don't hand out keys to friends, even if they're trustworthy. Make sure you know the location of all your house keys all the time. Never use hide-a-keys or leave the key under the doormat, above the door, in a flowerpot, or anywhere outside the house. You may think you're being clever, but guess what? Burglars know all the tricks. It's their job to (however despicable). Also, it's a good idea to keep your car keys and house keys on a different ring if you ever use valet parking or leave your keys with parking lot attendants or even at a repair garage.
Don't let strangers in the house: Adults have no problem telling this rule to their kids, but they don't realize it should apply to them too! Home security means being cautious. Even before you open the front door to accept a package, you should ask for photo identification. This goes for anyone you don't recognize. Don't assume someone is "legit" just because they are wearing a uniform or driving some company's truck (these things can be stolen). If somebody comes to your door and asks to make a phone call, offer to make it for them, but don't let them some inside. If someone looks like they're injured, call 911, but don't open the door. When you walk away to make that call, lock the door behind you; you don't want to leave the door unlocked and unmanned. A chain on the door helps insure people can't force their way in while you're home.
Locks: Keep your doors and windows locked, even if you're at home. Get your children into this habit, too. It's too easy to forget an open window when you leave the house, and that provides an easy way in for burglars. Don't assume a second story window is out of reach for a thief. They're good at finding ways in.
Don't be predictable: If you always leave home at the same time every day and return at the same time, thieves can easily memorize your routine to take advantage of the times you're not at home. Work is work, and you probably can't change those hours, but if you always go to a class or the grocery store at the same time, try to make yourself less predictable. You can also consider automatic timers for your lights and electronics, to make it seem when someone is home, even when they're not.
Valuables shouldn't be on display: I know you want to show off your hard-won plasma TV, but if somebody can look in your window and see your wallet, credit cards, purse, jewelry, or fancy electronics in open sight, they're going to be tempted. A computer or television placed in front of a ground-floor window may make an easy target. Likewise, electronics placed across from a window are easily visible, too. In a similar vein, don't leave your garage doors open for the world to see all the cool stuff you have in storage. Lightweight items could be snatched away quickly and easily.
Be mindful of your trash: Just bought a new entertainment system? There's no need to tell the world about it. A bunch of empty boxes out by the curb is an open invitation to would-be burglars. Instead of putting boxes out in plain sight, cut them down, and stuff them in trash bags. Also be wary of identity theft. Never put personal identification information in your trash until it's been shredded.
Be alert: Try to be aware of your surroundings on a day-to-day basis, even in your own neighborhood. This doesn't mean walking around like a crazy paranoid person; just get in the habit of watching for suspicious activity.
Paying attention to the simple things can make you and your family much less of a target. Burglar alarms and home security systems are great investments, but common sense prevention is the best way to stay safe.
"The Internet doesn't work for me." That odious phrase is all too common among agents and brokers. NAR echoed those sentiments for 90+% of all agents when they stated that less than 10% of agents with websites were pleased with the production from them. On the other hand, NAR also tells us that over 84% of all residential real estate sales involve the Internet. How can so much business go to such a small percentage of agents?
Contrary to what you may expect, the answer has less to do with money spent than on poor technique. The most beautiful website in the world is of no value to an agent if it doesn't produce leads on a regular and consistent basis.
I don't mean to say that effective Internet marketing for Realtors® and real estate professionals is not without cost. It costs money to bring buyers to your website. First, you must build the website and hope they'll come. They usually don't. Second, you must subscribe to organic SEO (Search Engine Optimization) or Pay per Click (PPC) and then they start coming because they can FIND your site. Now what? How do you get them to be more than a blip on an analytics tool and turn them into a living, breathing lead? Traffic is not the panacea, either-a strategy is required to succeed.
This is the real issue in online marketing for Realtors® and for everyone else, too; traffic means nothing but that people are finding your website. Being found is just the first step to succeeding online. Page views and unique visitor data are of value, but the ratio of conversion from visitor to lead is what matters, and you won't ever get enough leads from your visitors until you wise up to the best kept secret in internet marketing: you've got to offer them something to get them to sign in to your site.
How many unique visitors do you need to make your site produce?
Most agents who receive 300 or less unique visitors a month do just fine - the most successful have a conversion rate of 10-15%; that is, 10 to 15% of their unique visitors sign in to the site and are added to the prospect list for drip emails and regular contact. With 300+ unique visitors for an average agent each month - they should receive enough leads to make a living; as more unique visitors come, the agents income should rise accordingly. On the other hand there are those who receive thousands of unique visitors each month and sell little. What explains this?
Not using lead capture is like going fishing with great bait, but no fishing pole
The biggest factor in your site becoming a valuable tool (after optimization and design) is lead capture. Those using effective lead capture have good results with realistic visitor totals; those not using lead capture rarely get any results at all. To visualize this, please close your eyes and imagine yourself going fishing on a pretty summer day: Just toss the bait in the water and the fish will come to it. After the bait is gone, so are the fish, leaving you empty handed if you left your pole at home. But, bring your pole and you could end up catching your limit. Internet prospecting is much the same: a good site and enabling it to be found serves as all the bait you need to succeed, but if you can't capture the lead, it's like you forgot to bring your fishing pole with you-- lots of fish in the water, but none caught.
What exactly is lead capture?
Lead capture can be defined as the practice of converting people who window shop into people who you can communicate with, identify and farm/prospect/cultivate. Hard lead capture is the practice of requiring a visitor to sign in before allowing them to view information, like MLS listings. Soft lead capture is the practice of offering a premium or incentive to incent the visitor to sign in and join your information network. Hard is bad, soft is good; hard makes most visitors exit your site, soft makes them want what you offer them and creates feelings of good will. Lead capture seeks to ‘capture' simple information from a visitor; name, email address and phone number are really all you need to communicate on the most important levels: email and telephone.
What does hard lead capture look like and where should I put this?
Any site requiring a log in is death for lead generation. A few visitors may docilely give you their personal information, most will not. You should not employ this technique. (Now that DOJ and NAR have settled, perhaps the MLS in certain areas will drop this kind of requirement to view properties-a good thing for clients and a good thing for agents and brokers!) If your site does use this mandatory sign in, my advice is to contact your webmaster right now and have it changed.
What kind of premium should I offer to attract visitors' sign-ins?
How about a map of the town? How about the town fact sheet as furnished by the town government? How about anything interesting about where you sell homes? Lacking that, your newsletter or a relocation kit is good. Where I grew up, agents gave away lots of Town calendars, booklets, ice scrapers and thermometers, hot plates and oven mitts; those still work, too-as long as they have your name and website address on them. Best is some kind of promo that gives good information about where the visitor is looking to come to. One successful agent I know made a list of all restaurants in town and another of all important local phone numbers. She put her smiling face in the center, laminated it, and Viola! Another successful premium was created. Use your imagination-- this isn't rocket science.
No matter what certain agent marketing programs claim, the Internet is where the action is today.
Every time I see that marketing ad that claims that only 11% of sales come from the Internet, I shudder. Look, your own affinity group, NAR, says that 84% of all residential real estate sales begin on the Internet and that 74% of Internet buyers find their agent through a search engine. You absolutely need an Internet presence if you want to stay in this business.
Employ good lead capture today and sell houses tomorrow
It takes only moments to implement this recommendation into YOUR website. Provided it can be found by Internet buyers looking for homes online, this simple change can make the difference between a billboard in space and a real lead generation device. If your site can't be found, however, all the lead capture in the world won't help. You must be one of the sites that come up on the first page of the major search engines when your town is being shopped online; once you are there, implementation of good lead capture will work wonders for you. You wouldn't go fishing without a fishing pole, don't go Internet prospecting without good lead capture!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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