Judy's Blog

Market Recap for Week Ending August 8, 2008

Judy Jackson (Rocky Mountain Realty) — Tue, 05 Aug 2008 10:20:46 -0500

MARKET RECAP

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%.

What I Love About Real Estate

Judy Jackson (Rocky Mountain Realty) — Thu, 24 Jul 2008 18:50:05 -0500

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.

CYBERAPACE SECURITY

Judy Jackson (Rocky Mountain Realty) — Tue, 22 Jul 2008 15:31:52 -0500

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.

The Secret to Getting More Referrals

Judy Jackson (Rocky Mountain Realty) — Thu, 17 Jul 2008 12:46:49 -0500

Feeling Special

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 Indicators for the Future

Judy Jackson (Rocky Mountain Realty) — Mon, 14 Jul 2008 13:50:38 -0500

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.

Fannie and Freddie in the Spotlight

Judy Jackson (Rocky Mountain Realty) — Fri, 11 Jul 2008 15:05:21 -0500

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.

Before and After Storms

Judy Jackson (Rocky Mountain Realty) — Thu, 10 Jul 2008 09:31:16 -0500

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.

Online Communications - Best Practices

Judy Jackson (Rocky Mountain Realty) — Wed, 09 Jul 2008 12:24:38 -0500

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".

Common Sense Home Security Tips for You

Judy Jackson (Rocky Mountain Realty) — Tue, 08 Jul 2008 12:40:52 -0500

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.

Why You Miss Most Internet Buyers

Judy Jackson (Rocky Mountain Realty) — Tue, 01 Jul 2008 18:20:53 -0500

"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!

Top 7 New Home Buying Incentives

Judy Jackson (Rocky Mountain Realty) — Tue, 01 Jul 2008 13:05:01 -0500

After the real estate market hit a steady decline in mid 2006, home builders turned to incentives as a way to attract home buyers to their communities and to help differentiate themselves from the competition. When you start looking for a new home be sure to compare builder incentives as much as the communities themselves.

To help you choose, I have created a list of the top 7 new home buying incentives you should look out for:

Military or Civil Service Incentive - As a thank you to the individuals who serve in the military or are veterans of the military in addition to firefighters, police officers, EMTs and hospital staff, national home builder K. Hovnanian is offering $5,000 off the asking price of their homes, for a limited time, to people in these fields. Other large builders also offer similar incentives to teachers and civil service positions.

Lower Asking Price on "Spec Homes" - Depending on your moving situation, this is the golden egg of builder incentives. Most new home builders will construct a set number of homes in their community as "spec" homes or homes built on speculation that people will purchase the homes and move in quickly.

Once these homes are finished the builder won't want to sit on a large inventory of homes so they will offer spec homes with predetermined upgrades included at a lower asking price than if you were to build the home from scratch and add those upgrades.

Incentives Tied to Builder's Mortgage Company - Builders and on-site sales representatives enjoy working with their established banking relationships because they feel it will make the mortgage process easier and less stressful for everyone than if you were to use an outside lender. In this scenario I've seen builders offer to pay closing costs and up to one year of Homeowner's Association fees for buyers who purchase using their mortgage company.

Lot Premium Reductions - Like a rare platinum ring, highly desirable lots tend to come with a premium attached. Builders often place premiums ranging from a few thousand to nearly $100,000 on the most desirable lots in the community. Lot premiums are not set in stone and under the right circumstances can be negotiated much like everything else.

Reduced Option Prices - With the average new home buyer spending about 10% of their purchase price on upgrades you should look to get the most bang for your buck with the limited budget you have set for options. When evaluating the standard features list for a community, check into the cost for all of the options you would want in the home and see if the builder is providing special pricing on select options.

Standard Features... and then some! - To make homes more appealing than the standard features list will allow, builders are now including previously optional home upgrades like granite countertops, expanded suites, swimming pools and sun rooms as an incentive to buy in their community.

"Free Gifts" with Home Purchase - Sometimes it takes more than granite countertops and hardwood floors to make a home stand out. Some builders are going the extra mile and including in-home luxuries like plasma screen tvs and offering car leases to draw in prospective buyers. For soon to be commuters, a two year lease on a new car might be the perfect way to help ease into life in the suburbs.

When you are ready to start looking for a new home your best bet is to get in touch with a real estate agent who specializes in new home communities. This agent should help you cross shop communities and serve as a third party to help advise on the best deals and the potential pitfalls of incentives. Because incentives vary greatly, you will need to weigh the pros and cons of each community before making a final decision on the home that's right for you.

Housing Market Key Indicator Alert 6/29/08

Judy Jackson (Rocky Mountain Realty) — Sat, 28 Jun 2008 13:49:22 -0500

Latest Data Remains Lackluster
Housing starts and building permits continued to pull back in May. Housing starts fell to their lowest levels since March 1991 while building permits declined 1.3% from the previous month. Sluggish conditions in the housing markets also caused builder confidence to fall to all-time lows with the NAHB Housing Market Index (HMI) dropping a single point to 18 which ties the lowest reading ever recorded in the index's 22-year history.

The same negative catalysts that have plagued equity markets in the past several months were at work again last week. Negative housing news, concerns of possible collapses in the financial sector, and rising crude prices dragged the Dow Jones Industrial Average down to its lowest levels since mid-March. The broader S&P 500 index also closed trading at around its lowest levels since March 19. Crude prices ended Monday's trading session higher as violence in Nigeria continues to cause declines in production. Crude ended the trading session today up about 1% to $136.74/barrel.

This week will be full of housing and economic reports that will give us a better gauge on the current conditions in the market. Reports on May new and existing home sales will show whether the spring home-buying season this year showed any promise for a rebound in housing while final GDP estimates gives a clearer picture on economic growth domestically. The Federal Reserve will also be meeting this week and is widely expected to keep rates unchanged. The Fed is struggling to find a balance between increasing inflationary pressures and a fragile economy.

The Economy
Housing starts fell 3.3% to a seasonally adjusted annual rate of 975,00 in May which is the lowest pace since March 1991. Total permit issuances also dropped 1.3% from April levels with single-family issuances declining 4.0% from the previous month. The number of multi-family (5+) building permits jumped 6.4% to 314,000 in May.

Leading economic indicators posted slight gains suggesting that the worst of the economic downturn may be behind us. Leading indicators in May posted a 0.10 point increase for the third straight month. The leading index now stands at 102.10, up from an April figure of 102.00. The index is down 0.70 points from its levels six months ago when it was 102.80. Only four out of the ten components posted a monthly increase.

Price data in May also showed slight signs of rising inflationary pressure with increases in both consumer and producer prices. Higher food and energy prices caused the consumer price index to jump 0.6% on a seasonally-adjusted basis while core prices increased 0.2% on a seasonally-adjusted basis from the previous month. On an unadjusted basis, headline CPI increased 4.2% from its year ago levels while core CPI increased 2.3% year-over-year in May.

Housing Market
National average mortgage rates increased to 6.42% in the latest Primary Mortgage Market Survey released weekly by Freddie Mac on June 19th. This is the fourth straight week that rates have increased and the highest rates have been since September 2007. In the week ending June 18th, the MBA's seasonally-adjusted Purchase Index declined to 360.2 from 376.2 in the previous week. Purchase applications have declined in two out of the past three weeks. The latest figure reflects a 4.25 percent decrease from last week and a 20.12 percent drop from the same period last year.

New and existing home sales moved in opposite directions in April. New home sales posted a rare 3.3% increase in April to a seasonally-adjusted 526,000 homes, up from a revised March figure of 509,000. This is the first time since October 2007 in which seasonally-adjusted annualized sales have posted a monthly increase. Sales for the previous three months, however, were revised lower by 30,000 units. At the current sales pace, there are 10.6 months of new homes supply on the market. The number of new homes for sale continued to decline as builders continue to scale back production. New home inventory declined to 454,000 which is the lowest it has been since May 2005. In April, median new home prices rebounded from its lowest levels since September 2006 in March to $246,100 in April. It was also the first time since November that median new home prices recorded a year-over-year gain.

Annualized sales of total existing homes declined 1.0% in April to 4.89 million units. Sales of existing homes are down 17.5% from the 5.93 million units in April 2007. Median existing home prices in April increased for the second straight month to $202,300 from a revised $200,100 in March. The number of existing homes for sale increased jumped 10.5% to 4.552 million units in April. At the current sales pace, there are 11.2 months of existing homes supply on the market. Existing home affordability declined slightly in March due to the increase in median existing home prices..

Passing The Curb Appeal Test

Judy Jackson (Rocky Mountain Realty) — Fri, 27 Jun 2008 09:48:51 -0500

As a Listing Agent, one of the first rules of real estate is that you have to get prospective buyers and other Agents into the house. They won't buy - or advise others to buy - it if they don't step inside to see it. Real Estate Investors provide the only exception to this rule. They'll buy sight-unseen, but most sellers don't want to settle for the price a shrewd investor wants to pay. To get top dollar, you must win the curb appeal game.

As an Agent, nothing is more discouraging than giving up your Saturday or Sunday afternoon to host an open house, only to watch cars drive by without stopping all afternoon. The culprit is almost always a lack of curb appeal - a lack of first-glance pizzazz.

Few people have the gift to see what a home could look like. My wife, Joan, has that gift. She can look at a listing that I know isn't quite right and tell me in short order exactly what to suggest to the seller. The following provides similar advice for you to follow.

Landscaping

Landscaping recommendations depend largely on the age of the home you're getting ready to show. Newer homes are frequently so under-landscaped that they look remarkably like the surface of the moon. Meanwhile, older homes are surrounded by such overgrown yards that they look like the Amazonian jungles in Brazil. Know the age of the home you're listing and, more often than not, you'll know what kind of tool your sellers need to use to ready their property for showing: A machete or a shovel.

The most frequent curb-appeal obstacle comes from too much landscaping, which needs to be attacked with the following steps:

Trim and limb trees to create openness in the yard area. Large fir or evergreen trees can make a yard look smaller than its actual size, particularly if expansive branches hang close to the ground. Advise the seller to limb large trees up 12 to 15 feet.
Use the space opened by tree trimming to plant colorful annuals to brighten up the yard.
If the seller's yard features grass, make sure it's healthy and green. Recommend a little over-seeding or sod replacement in troubled spots if necessary to achieve a look that's more like a golf course than a motocross course. There is nothing more inviting to kids than a nice patch of grass where they can run and play, and when kids are happy, parents are usually happy, too.
Add landscape dimension to otherwise flat lots with plants, berms, or rocks. Don't overdo it, but do add a little height and depth to break what otherwise might look like a dull lot.
Also create dimension through color. Especially if you are presenting a home in a season other than spring, the landscaping can look pretty monochromatic. Colorful plants go a long way toward adding visual interest and strengthening curb appeal.

Exterior paint condition and color

In a split-second, the color and condition of a home's exterior paint can either attract or repel a prospective buyer.

Color: Recommend that sellers think long and hard about pastel colors like robin's egg blue or pink, or color schemes that resemble the uniforms of their college or university team. Just as with hard surfaces on the inside, the exterior of a home for sale should be painted in classic, muted tones.

The architecture of the home can contribute to the decision regarding what colors are appropriate for the home. For example, white paint on a colonial-style home can enhance the property's visual impression from the curb, evoking the image of great, stately homes such as the White House or President Washington's Mt. Vernon home. The same white paint on a 1950's or 1960's ranch home might result in a house that looks like a plain little box with no character. The more a home looks like thousands of other personality-free homes, the lower the chance that buyers will make a strong offer in hopes of calling it their own.
Paint Condition: It doesn't take long for sellers to cross off homes in need of new paint from their lists, whether the chipped paint is on the body or trim of the home or on fences or railings.

The worst outcome is a non-stop drive by, but even if a prospective buyer stops more trouble likely lurks. If the exterior paint condition is poor and buyers consider the home anyway, you might wish they hadn't, and here's why.

Once buyers notice that paint is peeling, cracking, chipping, or stripped down to bare wood, they go into high-scrutiny mode and begin to pick the home apart. Rather than looking for wonderful things about the home, they fixate on what they think is wrong. They assume that if something as obvious as the paint is in poor condition, there must be worse things to discover.

A buyer determined to find faults will succeed. No home can withstand a microscopic faultfinding inspection.

Even if the home passes the inaugural buyer examination, the sellers aren't out of the woods. If the buyer decides to make an offer, almost certainly it will be accompanied by an extensive repair list and the request that every minor offense be rectified before the closing. Then a home inspector will enter the picture, providing a more extensive report and the chance for the buyer to hit the seller up all over again. All this from a little chipping paint that could, and should, have been fixed before buyers ever drove by to view the home in the first place.

Three Levels of a Real Estate Agent's Career

Judy Jackson (Rocky Mountain Realty) — Thu, 26 Jun 2008 08:09:39 -0500

As real estate agents, we all want to succeed. That's a given. But often we're so close to the daily grind of our work that we don't know where we are in our careers.

Over the years, I've seen too many agents trying to move up a level in their career without being ready for it. They hadn't internalized the lessons necessary for success. On the other hand, I've seen too many agents stuck at a level of their business for much too long-not knowing that they were ready to move up.

I've identified three levels of a real estate agent's career-

Level One: Discovery

This is the exciting-and frustrating-part of your career where you're learning and discovering -- figuring out who you are and what you want out of this business.

You're also learning your capabilities-what you do well and what you're absolutely terrible at. This can be tough, because none of us wants to admit we're not good at everything. But successful people learn to embrace their limitations. Only then can you shine, because embracing your limitations allows you to focus on your strengths.

In this stage, there are months you impress yourself. Excitement empowers you. Then, there are also months you wonder when-or if-you'll see your next commission check. Frustration starts to weigh you down.

It can be tough. But once you get through it, it's never quite as dire again. As you move up the levels, you look back on this time as your hard-won battle. The fear and self-doubt you felt will become distant memories.

The Discovery stage is also the time you learn your work habits, both good and bad. I like to work with agents in this phase to stop bad habits from forming. It's easier than trying to change the habits of a more experienced agent who clings to old ways of doing things because "that's the way I've always done it".

You also learn here exactly how much money you need in your business-as well as the necessity of spending money to make money. If you're too frugal in your marketing efforts, you don't get the results you should be getting. This causes many agents (wrongly) to say, "Marketing doesn't work. I tried that and I got no response."

The problem wasn't that marketing doesn't work. It's that the agent didn't spend the money to create and implement a marketing campaign that was carefully crafted, perfectly planned, and exceptionally executed. This one marketing lesson, learned in the Discovery stage, is the building block for success in all future stages.

Level Two: The Climb

Okay, your feet are wet. You've been doing this for a while now and you're starting to feel really good about yourself. You may start to get a little cocky here and believe that it's going to be easier than Level One.

But Level Two is the most frustrating level of all. Because it feels like you should be getting more out of your business than you're putting in. You're burning the candle at both ends and you're working-and working-and working.

One of two things happens here. You either:

a) start to burn out

or-

b) learn to automate

The frustration inherent in Level Two comes from the fact that you're busier. You're no longer struggling to find clients. Now, you're struggling to manage the clients you already have.

This is where automation comes in. The skilled Level Two real estate agent begins to set up processes for everything. By ‘process', I mean a rote series of actions you take for everything you do. If the phone rings and a client asks you how their listing is going, you go to your computer and-click!-you have an instant report for them. You created the template for this report months ago. All you do is fill in the details for the client and this task is taken care of in seconds or minutes-not hours or days (or not at all!).

This is just one example of automation. Everything you do should become automatic in Level Two. I have dozens of processes I teach in my seminars and courses-many of which can free up hours from your day.

The Climb is also the time in your career when you take basic marketing and turn it up a notch with consistent follow-up and consistent lead generation. Failing to master these two tasks is why many agents stay stuck in the Climb and never move up to Level Three.

Level Three: Balance

This is the level we all strive for. We no longer worry about money. Leads arrive consistently. Transactions happen regularly. We are happy with our income.

As we enter this stage, we're usually working too much. This is where we begin to let go and delegate some of our work to others.

Perhaps you hire an assistant. Perhaps you allow a company such as The Lones Group to handle your marketing. Perhaps you hire an outside consultant (like me) to do a business analysis and find out where you need to cut and where you need to paste.

You know you're at this level when you're able to say no to clients who are too demanding without feeling like you're losing out on anything. You say no to appointments that encroach on personal time.

This is the level of your business where you truly take time for yourself. You start to love your business for the simple reason that you're NOT burned out.

It doesn't matter what level you're in right now. Each one provides you with unique opportunities for growth. Level One allows you to prove to yourself that you can do it. Level Two challenges you to create the life you want. Level Three rewards you with wealth and the time to enjoy it.

Wherever you are in your business, don't be afraid to seek help. Whether it's a mentor or colleague or outside help like we provide at The Lones Group, you can move up to the next level faster by learning from others who have already been where you are. This could literally cut years off your growth curve.

So if you're not at Level Three, take heart. You're part of a dynamic growth industry and with the right determination, processes, and mentoring you will be living at Level Three sooner than you may think."

Why Interest Rates Change Daily

Judy Jackson (Rocky Mountain Realty) — Tue, 24 Jun 2008 13:04:50 -0500

Why Interest Rates Change Daily

Despite what some people believe, mortgage-backed

securities (MBS's) are the bonds that directly dictate

fixed rate mortgage interest rate pricing. The supply

and demand for MBS's is the final determiner of how

fixed rate pricing is set. Just like stocks, MBS's trade

throughout the day. Large volumes of buying or selling

can cause extreme fluctuations in the rate and point

structure of loans available to borrowers.

Major market participants, just like individual investors,

are constantly searching investment opportunities that

will provide the greatest return with the least amount of

acceptable risk. Investment products inherently all

possess some sort of risk. For example, one risk

associated with mortgage-backed securities, the bonds

that directly dictate fixed rate mortgage pricing, is a fear

of pre-payment. A homeowner obtains a loan for a

certain duration of time at a certain interest rate. As

interest rates fall, homeowners tend to refinance their

homes, which leads to the early payoff of the first loan

and the origination of a new loan at a lower interest

rate. Investors are cognizant of this scenario and factor

this risk into their demand for mortgage-backed

securities.

If the demand for MBS's is strong, the

prices of MBS's increase leading to lower mortgage

interest rates. However, if the demand for MBS's

weakens, mortgage interest rates rise. Continued gains

in the US stock market add to the competition for

investors' funds. In addition, Treasury securities also

provide competition and thus volatility.

Oftentimes stocks and bonds exhibit a general trading

pattern or direction. Last year, bonds steadily increased

pushing mortgage interest rates lower. Unfortunately,

the recent pattern has been an up and down motion

resulting in a general increase in mortgage interest rates.

Therefore a cautious approach to lock decisions is necessary

to protect against future volatility.

Could Your Self-Limiting Beliefs Be Holding You Back?

Judy Jackson (Rocky Mountain Realty) — Fri, 20 Jun 2008 13:16:14 -0500

Do you ever wonder what is holding you back? Do you ever wonder what is stopping you from having all the clients, all the money, and all the transactions that you desire?

Chances are that you have all the skills and knowledge you need.

Have you ever said to yourself, "I know what I should be doing, I'm just not doing it."?

That is a clear signal that you are being undermined by self limiting beliefs that may not even be conscious, such as:

"I'm not worthy of success",
"It's selfish to pray for money",
"Rich people are dishonest",
"I should just be happy with what I have and not want more",
"I am a failure and not worthy of money."

Let me give you an example from a client of mine:

Although his efforts to be successful were sincere, he had unknowingly been carrying around "anti-success" beliefs his whole life, such as:

"I don't have what it takes"
"I can't be successful like others"
"I have to settle for less"
"I have to struggle and sacrifice to make money"
"I'm not worthy of having money"

In our weekly sessions, it became clear that the origins of these self limiting beliefs went back quite a ways. A real breakthrough for him came during one of our sessions, when he recalled that as a child he tried extremely hard to get his parents approval.

Because his parents were not forthcoming with their approval, he concluded subconsciously that he was a "failure", and that he did not deserve success.

This resulted in him never achieving the level of success he wanted, not getting the transactions that he deserved, and beating himself up continually with self "put downs".

When he realized where all of this came from, he had the insight that his whole feeling of unworthiness was false. He further realized that it was not his fault that his parents did not approve of him, as they were withholding people.

He began to install Empowered beliefs such as:

"I am successful"
"I am worthy"
"I am generous with my approval for myself"

His assignment was to practice giving himself a generous amount of positive self talk everyday. In fact if he caught himself putting himself down, he resolved to intervene, interrupt the process and put in a positive new thought in its place, such as "I can do anything I set my mind to do."

Once he began practicing his Empowered Beliefs, he could practice the Law of Attraction without the interference of counter intentions. Not surprisingly, his energy increased, as well as his clients and income.

His story illustrates the importance of identifying and reprogramming self limiting beliefs.

Why You Miss Most Internet Buyers

Judy Jackson (Rocky Mountain Realty) — Tue, 17 Jun 2008 12:16:45 -0500

This was such a good article I wanted to share it. Judy

By: Mike Parker

How many unique visitors do you need to make your site produce?

Not using lead capture is like going fishing with great bait, but no fishing pole

What exactly is lead capture?

What does hard lead capture look like and where should I put this?

"Log In (Not a Member? Sign Up Now"

What kind of premium should I offer to attract visitors' sign-ins?

No matter what certain agent marketing programs claim, the Internet is where the action is today.

Employ good lead capture today and sell houses tomorrow

OPEC Minister's message to America on Oil

Judy Jackson (Rocky Mountain Realty) — Mon, 16 Jun 2008 14:54:24 -0500

Some day the OPEC minister will look you in the eyes and say:

We are at war with you infidels. Have been since the embargo in the 1970s. You are so arrogant you haven't even recognized it. You have more missiles, bombs, and technology, so we are fighting with the best weapon we have and extracting on a net basis about $700 billion per year out of your economy. We will destroy you! Death to the infidels!

While I am here I would like to thank you for the following:

Not developing your 250- 300-year supply of oil shale and tar sands. We know if you did this, it would create millions of jobs for US citizens, expand your engineering abilities, and keep the wealth in the US instead of sending it to us to finance our war against you bastards.

Thanks for limiting defense department purchases of oil sands from your neighbors to the north. We love it when you confuse your allies.

Thanks for over-regulating every segment of your economy and thus delaying by decades the development of alternate fuel technologies.

Thanks for limiting drilling off your coasts in Alaska and anywhere there is a bug, bird, fish, or plant that might be inconvenienced. Better that your people suffer! Glad to see our lobbying efforts have been so effective.

Corn-based Ethanol. Praise Allah for this sham program! Perhaps you will destroy yourself from the inside with these types of policies. This is a gift from Allah. Praise his name! We never would have thought of this one! This is better than when you pay your farmers NOT TO GROW FOOD. Have them use more energy to create less energy, and simultaneously drive food prices through the roof.

And finally, we appreciate your letting us fleece you without end. You will be glad to know we have been accumulating shares in your banks, real estate, and publicly held companies. We also finance a good portion of your debt and now manipulate your markets, currency, and economies to our benefit.

Please, in November elect Senator Obama. You really need to be led by a true Arab American!

THANK YOU, AMERICA!

Not so funny, is it????

Sound Advice For Dads Online Safety

Judy Jackson (Rocky Mountain Realty) — Mon, 16 Jun 2008 14:28:28 -0500

Forget about another set of power tools or golf clubs. This Father's Day, give Dad the gift of online security! The fact is, a lot of people-particularly people who don't use the Internet frequently-still need some basic skills in safely surfing the Web. If the husband, dad, or granddad in your life is the type who clicks on any ad that says "Click here" and thinks that spam is just another word for processed meats, here are some tips to keep them safe.

1. If an ad flashes or makes noise, it's best to avoid clicking
on it.

2. If you get an email telling you to forward the message to ten of your closest friends-don't. Spammers and list harvesters often use chain emails as a way to build their mailing lists or confirm that their existing addresses are up to date.

3. If you're shopping online, don't enter your credit card number until you've checked the bottom of your browser for the padlock icon or confirmed that the URL starts with https (not just http). Both of those indications show that the site is secure.

4. Stick to well-known sites with .com, .org, or .gov addresses, at least when you're starting out. A number of virus and spam sites are hosted overseas and have addresses that end in .hu or .ru.

5. Invest in decent antivirus, antispam, and antispyware software so that if you do make a slip-up, you'll still be protected.

You Are One In A Million

Judy Jackson (Rocky Mountain Realty) — Fri, 13 Jun 2008 21:22:41 -0500

There are about 2 million licensed agents. If you are one of them, you may often feel lost in the crowd. So how do you get ahead and succeed, in arguably one of the most competitive and entrepreneurial industries today.

Some agents may be dummies, others part-timers, but make no mistake some of your competitors are well qualified and experienced professionals that are equipped to help the consumer with every fact of their home buying or selling needs.

If that doesn't give you pause, consider this: customers today have access to more information than ever before and many of them are becoming very knowledgeable about the real estate transaction. This of course now requires you to be one step ahead and know more.

You're no longer a sales agent.

You are a facilitator, an interpreter, a negotiator and above all a trusted advisor. So, get your act together and become the true real estate professional that the consumer wants and needs. Here are a few suggestions to get you going:

Introspection

· Start with an objective evaluation of your personal strengths and weaknesses. Not just in terms of the mechanics of how you practice real estate but also in the so-called soft skills.

· Consider the feedback trusted friends, colleagues and mentors might offer alongside that from assessments such as DISC or Myers-Briggs.

Roadmap

· You won't get there is you don't know where there is. Write up not you're your goals but your plan on how you are going to get there.

· Aviators have a phrase: Plan your Flight and Fly the Plan. The importance of planning and tracking your progress cannot be stressed enough. Periodically compare your progress against the original business plan.

Portfolio

· Prospective clients are increasingly being coached through the media and other venues to secure client references, check credentials, secure proof of certifications and professional ratings before deciding on an agent. Prioritize the credentials important for your business and schedule these in your business plan.

· You've always known client testimonials are good to have. Now consider them a necessity. If you've been shy about asking for them before, develop the language and processes to ask for testimonials and referrals during the relationship - not at the end.

Expert

· Whatever your personality, target key training programs to improve the respective skills that need improvement.

· Pick a niche whether property type, geographical, age, etc. and become the expert...the #1 person in that filed/market.

Support

There is no reason you have to walk the road alone or go where no agent has gone before.

Shadow a top agent in your company, subscribe to an online mentoring or get a personal coach. Help is readily available and comes in all shapes and price ranges.

One in a million, right.

Well don't do what some estimate one million to do every year and that's to partake in no transactions. None. Zero. Zip. Nada. That's awful. Don't be one that million.

Be one of the other million, the successful million. Be one of the new Web 2.0 ones. Be one of the new trusted advisors.

To be profitable in a down market means being knowledgeable about the

trends that create opportunities...

Nancy Pelosi Wants To Put A Windfall Tax on Our Retirement Income

Judy Jackson (Rocky Mountain Realty) — Fri, 06 Jun 2008 19:33:12 -0500

Have you heard the latest proposal from Nancy Pelosi to mess with our retirement income to help illegal immigrants and equalize income? THIS IS A MUST READ...IF IT DOESN'T MAKE YOU AS MAD AS IT DID ME I'LL BE VERY SURPRISED.
Adding a tax to your retirement is simply another way of saying to the American people, you're so darn stupid that we're going to keep doing this until we drain every cent from you. That's what the Speaker of the House is saying. Read below...............

Nancy Pelosi wants a Windfall Tax on Retirement Income. In other words tax what you have made by investing toward your retirement. This woman is a nut case! You aren't going to believe this.

Madam speaker Nancy Pelosi wants to put a Windfall Tax on all stock market profits including Retirement fund, 401K and Mutual Funds! Alas, it is true - all to help the 12 Million Illegal Immigrants and other unemployed Minorities!

This woman is frightening. She quotes...' We need to work toward the goal of equalizing income, (didn't Marx say something like this), in our country and at the same time limiting the amount the rich can invest.' ( I am not rich, are you)

When asked how these new tax dollars would be spent, she replied:
'We need to raise the standard of living of our poor, unemployed and minorities. For example, we have an estimated 12 million illegal immigrants in our country who need our help along with millions of unemployed minorities. Stock market windfall profits taxes could go a long way to guarantee t hese people the standard! of l iving they would like to have as 'Americans'.'

( Read that quote again and again and let it sink in. Lower your retirement, give it to others who have not worked as you have for it.

Send it on to your friends. I just did!! This lady is out of her mind= Please Comment on this Bog as it is very important to all of us.

Federal Chief Bernanke Stirs up Inflation Fears

Judy Jackson (Rocky Mountain Realty) — Fri, 06 Jun 2008 19:24:45 -0500

Usually the monthly Employment report is the main event of the week, but Fed Chief Bernanke stole the show. Following the theme of other Fed officials in recent weeks, Bernanke focused on inflation risks in multiple speeches, and his comments were unexpectedly direct. According to him, inflation expectations are a "significant concern." He explained that the decline in the value of the dollar and the increase in the cost of energy were adding to inflationary pressures. Inflation is negative for mortgage investors, and mortgage rates rose for the fourth straight week due to increased concern.

At the end of a volatile week, investors were closely watching Friday's important Employment report. The headline number came in right on target, with a loss of -49K jobs in May. The big surprise came from the change in the Unemployment Rate. Expected to rise slightly to 5.1% from 5.0% in April, it instead jumped to 5.5%, the highest level since October 2004. Economists attributed the spike to an unusually large influx of young adults entering the labor force to find summer jobs, so the reaction in the mortgage market was modest.

Inflation Fears Hit Mortgage Rates

Judy Jackson (Rocky Mountain Realty) — Sat, 31 May 2008 10:52:38 -0500

Investors' outlook for inflation worsened during the week, and mortgage rates moved higher. While the economy remains relatively weak and the recent inflation data has held steady, many signs point to higher levels of inflation down the road. The Fed's Fisher summarized it well, saying that inflation expectations continue to worsen "even in the face of an anemic (economy)." Higher energy prices are behind the inflation fears. Dow Chemical announced this week that it will boost the price of its products by as much as 20% due to its higher energy costs. Until now, manufacturers have mostly absorbed higher production costs, rather than raising the price of their goods. The action by Dow Chemical and several other major suppliers may be an indication that companies are beginning to aggressively pass along their rising costs.

Adding to the concerns of investors, Fed officials have been consistently warning about the risks of higher inflation, and the next move from the Fed is expected to be a rate hike later in the year. The most recent inflation data showed that the overall April PCE price index, the Fed's preferred inflation indicator, rose at a 3.2% annual rate. The Core PCE price index, which excludes the food and energy components, increased at a significantly lower 2.1% annual rate, although this level still would have to decline below 2.0% to fall within the Fed's "comfort zone." Investors fear that the opposite outcome is more likely, however, and that future readings will be higher.

In the housing sector, April New Home Sales rose modestly from March. Inventories of unsold new homes fell slightly, and median prices were higher. Separately, the S&P/Case-Shiller home price index showed that first quarter prices for existing homes declined 14% from one year earlier. Bigger picture, though, the data indicated that home prices are still 60% higher than at the start of the decade.

Vital Big Changes Announced by Freddie Mac on Refinancing Current Loans

Judy Jackson (Rocky Mountain Realty) — Tue, 27 May 2008 12:11:54 -0500

Freddie Mac announced a few days ago that they will no longer refinance any property that has been in an LLC for the past 6 months. This includes single family up to 4-plexes.

Freddie Mac and Fannie Mae, both government agencies, own 90% of all loans, both conforming and non-conforming.

May 16, 2008, The New York Times reported an article by Chris Wallen that Freddie Mac had announced huge losses for the past quarter of $1.3 Billion dollars. They are using accounting methods to minimize the losses and effects. Fannie Mae also announced $151 million loss for the first quarter.

They plan to borrow $5.5 billion and that they will both be solvent by the end of the year. Investors are buying into this idea because they believe the federal government will bail out their own lenders so they will remain solvent to prevent a further slump in the housing market.

Freddie Mac also announced that they expect to see a $7.5 billion loss from bad loans over the next 2 years, so we have not seen the full extent of the effect of these losses yet.

Fannie Mae will be following the same guidelines regarding refinancing their loans in the near future.

This will greatly impact investors who plan to refinance to leverage their money in their investment properties.

There is a new strategy called the Sandwich Trust which involves 3 steps:

1. Putting your property in a Living Trust, to avoid probate

2. Then putting it into an LLC in your name where the value and net worth is in the LLC

3. Then putting it into another Living Trust for asset protection

This method is accepted in all 50 states and completely protects you against probate and protects your assets as well.

There is a lot of paperwork, notices, recordings, etc. which you could do yourself after some studying on the specifics, and an attorney versed in this method could be of considerable help.

This information came through an email this morning from Diane Kennedy.

The Two Magic Components to Sales Success

Judy Jackson (Rocky Mountain Realty) — Mon, 26 May 2008 12:45:19 -0500

There are two disciplines that will yield amazing results when applied daily. They will help you overcome any obstacles or challenges that are put in your path. If you can master these two disciplines, there is nothing you can't accomplish.

The first is the development of faith in yourself, which can produce staggering results. I am talking about the faith and the determination never to quit. Have the faith to repeat the right disciplines and actions long enough, and with enough intensity, to win.

Your self-image is housed in your subconscious mind. Your subconscious doesn't evaluate the information you put in it. It only tries to create reality out of what you put into it. If you are allowing the negative to enter your subconscious mind unfiltered, you will begin to focus your self-image on the negative that you allow into your subconscious mind.

To create a strong self-image or self-faith you must work diligently to feed your subconscious mind with positive thoughts, ideas, and goals to achieve. You can do this through books, audiocassettes, experiences, coaching, affirmations, and seminars. The world will gladly fill your mental make-up with negatives. Work to combat the negatives by placing positive thoughts and images in your mind every day.

As Zig Ziglar says, "Let's do a ‘check up from the neck up.'" How often are you reading great books? Are you listening to audiocassettes in the car daily? Do you have affirmations that you are pounding into your subconscious mind daily? Do you have a real estate or personal success coach? If you aren't doing these activities regularly, you are probably not reaching your peak performance.

To increase your belief in yourself, you need to fill your subconscious mind with the positive thoughts and experiences of success. You can't neglect to do this even for one day, or you will fall behind. Don't put yourself in the position to play catch-up with your self-confidence.

The second is development of focus. Focus is one of the most powerful tools a person can possess. Even if you have a positive faith in yourself you must have focus to achieve greatness and success.

Al Ries wrote a great book, simply called Focus. Al used a laser beam as one of his examples. The amount of energy a laser beam has is very small. Most laser beams only have a few watts of energy. It is the process of focusing those few watts onto a very small area, which generates the power. It is because the energy is condensed to the size of the head of a pin that amazing things can happen, such as eye surgery without making incisions, the removal of cancer cells, and cutting through metal.

You can be like that laser through focus. You can accomplish more in less time by staying in the moment and being completely focused on the task at hand. Here is a technique to improve your focus. Break your day into smaller increments of time. You may only be able to stay focused for 20 minutes now. So break your day into 20-minute increments, with five to ten minutes in between. Do the activities in the outline in 20-minute increments of time.

Don't allow distractions to creep into those 20-minute increments. Only do the activities outlined in those increments of time. Think only of the moment and work to focus in on the moment and the specific activity you are to do in that moment. Don't allow anyone to distract you during your 20 minutes of focused time.

As you get better, and more skilled, at focusing you will be able to increase the focus time and decrease the break time. When most people evaluate their time, there is very little of an eight-hour workday that is focused time. The lack of focus time is why Agents often work seven days a week. It is because there is little focus time invested daily.

By having a positive faith in yourself you will be able to climb the mountains of life. Being highly skilled at focusing will enable you to do it with efficiency. If you learn to focus on what is most important to you, you will create the abundant life you desire and deserve.