Mollie's Blog

Lack of Transparency Befuddles Today's Consumer...

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Tue, 18 Aug 2009 10:05:42 -0500

...whether they are dealing with Health Care or Real Estate Services.

I was chatting with a friend of mine last week when he admitted that he had been without health insurance since he got out of college. Given that he's a real estate agent, that's not so surprising: as an independent contractor he's on his own regarding health insurance and many in our industry have simply taken their chances, especially when they are young and healthy like my friend Jack.

But as part of the approximately 15% of Americans who are uninsured, Jack has a window on a phenomenon that few of the rest of us ever see: what health services actually cost. You see, Jack was playing softball one Saturday a couple of weeks ago and sprained his ankle. As luck would have it, a member of the team was a physician and offered to take a look at the ankle at his office. After his ankle was wrapped up, Jack offered to pay him.

But here's the interesting phenomenon: the doctor-teammate didn't have a clue as to what to charge him because he had no clue as to what his services were worth! As any doctor today will tell you: their charges are handled by insurance. And the truth is that if the good doctor had not been playing softball with him, Jack's lack of insurance would have dictated that he wouldn't be going to a doctor's office at all - rather he would have to go to the ER if he wanted his ankle looked at and the cost of his care at the ER would have been absorbed by the insured.

Meanwhile, most of us who have health insurance never ask a doctor what they charge because we don't pay for the lion's share of our care - insurance does, so we have been quietly oblivious until the last few years.

So, what does this have to do with real estate?

Continue Reading Lack of Transparency Befuddles Today's Consumer...

When a Model No Longer Works, it's Time to Adapt

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Tue, 04 Aug 2009 07:16:35 -0500

As I write this, the US government is embroiled in wrangling over how to overhaul our health care system. It seems to me that the system is not so much broken as it is hopelessly dated because as times changed, it never adapted. Our health care system was designed in years past, when you would hold a job for a lifetime. In that world, it made perfect sense to have your health care as a benefit of that job. But how many of us today stay in one job for our entire lives? And what about the growing legions of independent contractors and self employed entrepreneurs who have no access to a "company" plan? Health care tied to one's employment makes about as much sense in today's world as using a typewriter to write a letter.

Likewise, in the real estate industry, we continue to practice in a way that is not so much broken but hopelessly outdated. The traditional sales model was conceived in years past when we, as real estate practitioners had a very different role. If you think about it, real estate as a sales profession, paid by commission, made total sense when the agent's only job was to "move the merchandise". But in the 1990's our national and state associations expanded our role - it was no longer enough to simply sell the product, we now were asked to act as fiduciaries: working in the best interest of our client and putting their needs above all others, including, and most especially our own. In fact, our responsibilities as a fiduciary became a part of the NAR's (National Association of Realtors®) code of ethics that we are obliged to adhere to.

Continue Reading When a Model No Longer Works, it's Time to Adapt

ACRE made Inman News Today

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Thu, 30 Jul 2009 09:05:33 -0500

I was pleased to see that ACRE made Inman News today: Timing the Real Estate Transaction http://tinyurl.com/lttej5.

The World Wide Rave...Outstanding Book on Social Networking

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Sun, 14 Jun 2009 21:44:11 -0500

I just got through reading World Wide Rave by David Meerman Scott. What an amazing book! I've been struggling over the last few months trying to figure out the best way to get my book, Ripping the Roof off Real Estate, as well as the ACRE Course and Coaching Program, more notice. Especially on a budget, since I don't thousands in venture capital : >.

After reading this book, I feel like I have a new lease on life and work. I'm not in the book review business and if you know me at all, you know I don't swoon over much, but this book is amazing. The best book on using social networks that I've come across, bar none.

Now, if I could just start implementing everything I read...

Mollie

Want to Re-Build Consumer Trust? Then Stop Ignoring Human Nature!

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Wed, 07 Jan 2009 10:50:12 -0600

Year after year, polls show real estate agents at the bottom of the consumer's "trust list". But given the inherent conflict of interest in the way we traditionally practice real estate, is it any wonder?

This morning I posted a link in AR to a new article I wrote for The Consulting Times entitled Want-to-Re-Build-Consumer-Trust-Then-Stop-Ignoring-Human-Nature! If any of you from this group have time to read the article, I'd be very interested in your thoughts.

Hope everyone is having a great day,

Mollie Wasserman

Founder: The Accredited Consultant in Real Estate® (ACRE) Program

In the Age of the Internet, Where is our Value?

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Fri, 11 Jul 2008 11:18:48 -0500

Recently on the ACRE® Coaching Exchange, our coaching platform for ACRE® graduates, we had a very interesting discussion about where our value today lies as agents. It seems that in the tough market that we are working in, many agents are competing for listings by charging less than the competition and requiring less commitment in the way of an exclusive agency contracts with buyers.

This is so sad because you can never compete on price and stay in business. No matter how low you go, there will always be some desperate soul who will charge less. And when you don't require a commitment from those you work with, you only underscore that your time, experience, and expertise has no value.

In my book Ripping the Roof off Real Estate, I talk about the difference between a commodity, which can and should be shopped by price and a service where the quality, level of expertise, talent or experience makes a big difference in the outcome. When an agent or brokerage competes on price, they reinforce the perception by the public that agents are all the same, a commodity, and therefore they should be shopped by price. However, when a real estate professional understands and articulates their value, the consumer will beat a path to their door and the competition will be left in the dust.

ACRE® Wynne Achatz made a very astute comment about our value:

"WOW let's go back to 1996 - That is when my consulting really began full strength. I was bedridden for 3 months. Took 126 listings and negotiated 32 transactions. How? Clients wanted my help (consultation). They took their own pictures with my camera, measured their own homes, we looked at options, discussed what was needed to get the property ready for sale, action was taken, seller listed and put up their own signs...never minced about the fees. What it all boils down to is that when you have something of value, folks will feel compelled to want it. The "I have to have it" syndrome.

Be confident in yourself. By the way: I am now charging $195 up front, non-refundable to take a listing or go under contract with a buyer. This is not considered part of a commission either. I have gotten more than a standard commission by listening to what the consumer wants and then getting paid for it! WE never had it so good. Mollie, Merv and all the ACRE® Coaches, thanks, thanks and more thanks for the opportunity for such a great sharing experience with ACRE®."

Michigan Wynne

Many of you may have heard of or know Wynne Achatz, but for those who don't, she is one of the smartest professionals out there. Let me underline what Wynne said: when she was laid up, clients were obviously not paying her to run around doing functionary administrative type tasks...THEY did them! Her value was that of a fiduciary: negotiating, interpreting, troubleshooting. She was sought after for her expertise, not her busy work. Read the rest of the article...

Getting Back to the Basics When the Basics have Changed

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Wed, 04 Jun 2008 07:07:48 -0500

If you are out in the market trying to make a living in real estate, I don't need to tell you that our industry continues to go through tremendous changes that are challenging our most basic of real estate practices and assumptions:

Revolutionary growth in technology which continues to transform our industry.

A huge consumer backlash that, contrary to conventional wisdom, is not just challenging our commissions but challenging our very value as professionals.

A growing bewilderment by both the consumer and ourselves over what exactly our role as real estate professionals today is supposed to be.

Yet, in the midst of all of this, when we clearly need some new direction, it seems like all we're getting is the same old advice from the same pundits that have been around forever saying the same things like:

"It's time to get back to basics."

"The market will recover and be like it was."

"Just use the market downtime to sharpen your traditional sales skills and when the market comes back, you'll be ready."

Deep down we know that this traditional advice just doesn't fit our current realities anymore. But, let's be honest. We like hearing it. It's comforting. It's familiar. It's sort of like a broken-in pair of shoes - when we put them on, our feet can just naturally settle in to where they are comfortable. Unfortunately, those shoes won't get us to where we need to be today! Now, it is true that real estate works in cycles, the housing market will come back as will business, but it will increasingly be a very different type of business. And this business will be going only to those practitioners who are trained and ready.

It's time to take our industry back. And as difficult as it is to stretch our comfort zone, it's time to break in a new pair of shoes. In our business, that new pair of shoes is Real Estate Consulting. Read the rest of the article...

What Politics in 2008 can teach our Industry about Confronting Change

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Thu, 07 Feb 2008 15:27:41 -0600

The Republican primary in the state of Michigan was held this past January and the way that the two leading candidates approached this primary provides a fascinating primer on how real estate will fare in the next few years, depending on our reaction to the systemic changes that confront us.

Like much of the real estate industry, Michigan is in the doldrums, to put it mildly. In fact, many economists have describes Michigan as having been caught in a "one state recession" for quite some time now. Leading up to the primary, the two leading candidates took very different approaches in campaigning for votes.

Candidate #1 campaigned as the savior of the traditional auto industry while being critical of new fuel efficiency standards signed into law: "If you vote for me, when I get to Washington I'll make sure that the auto industry is not broken by these new standards but rather is provided the funding to get their jobs back".

Candidate #2 took a much different tack, confronting the systemic changes facing the auto industry head-on by telling voters the truth: "My friends, I regret to tell you that your old jobs are not coming back. The global economy is here to stay. But if we prepare, we can bring new and much better jobs to Michigan and to the rest of America. But know this: we will not thrive continuing the same-old, same-old. To compete successfully in the new order, we must prepare workers to seize the new opportunities." Read the rest of the article...

When Times are Tough We Look for the Newest Quick Fix

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Thu, 29 Nov 2007 08:04:41 -0600

I've noticed that during the last few months of every year, agent list-serves and forums begin popping with posts regarding the newest and greatest software, tools, and must-have cool gadgets to buy for their businesses. This crazy rush to purchase the newest and greatest is in full swing by the NAR® (National Association of Realtors®) Convention in November and only seems to slow down when the realities of holiday shopping hit home - usually when the bills begin arriving in January.

And even this year, despite the slow market in much of the country, there seems to be no slowdown in our quest to obtain the newest and greatest. Let's face it - a lot of us are trade-show and gadget junkies. Think about it: how many of the 1,119,000 iPhones sold in the US as of October, 2007 were bought by people who REALLY needed a new phone? Or did we convince ourselves that the iPhone and other cool tools and gadgets would really bring us the new business that we so desperately need. After all, you have to spend money to make money, right?

May I suggest that our problem might be that we're always looking for the quick fix? With our business purchases, don't we tend to go "a mile wide (as in the quantity of what we purchase) but only an inch deep (as in what we actually utilize)?" We go to NAR® and get all excited about a nifty new piece of software or a set of glossy postcards that we saw demonstrated. They look fantastic. And we buy and buy, because when times are slow and business is tough to come by, the more we search for the magic bullet. Read the Rest of the Story...

In the Evolving Role of the Real Estate Professional in the Internet Age, LESS IS MORE

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Thu, 27 Sep 2007 05:47:36 -0500

Last week, in "Broker proposes new real estate marketing platform: Universal MLS", Inman News Writer Glenn Roberts discussed a "Universal MLS" that is the brainchild of Colorado real estate broker Creed Smith, a specialist in bank-owned foreclosure properties. A real estate broker since 1987 who has a master's degree in marketing, Smith said his vision for a new breed of MLS is based on his belief that real estate agents and brokers will inevitably play a lesser role in real estate transactions as Web-based services become increasingly popular with consumers.

Smith is quoted as saying "I'm absolutely sure that the way we sell real estate is going to change," Smith said. "I foresee that there's going to be a division between what brokers do and what the Internet can do for buyers and sellers. I think the Internet is going to be the central marketing tool in creating specialized services for buyers and sellers. I think they're going to be able to find each other without a broker." He went on to say that he expects that real estate professionals of the future will focus more on handling the paperwork related to the transaction, such as purchase offers and disclosure documents.

I am amazed that Mr. Smith could have such an interesting concept in theory, yet present it in such a way to make most in our industry recoil in horror. It's not that I disagree with his premise that major changes are afoot in real estate: the MLS, as we know it, is terminal. Whether you believe that our MLS's sold us out or it's just the natural consequence of the free flow of information in the Internet age, the MLS, as THE place for property information is ending. As much as traditionalists may dislike the thought, there is simply no question that buyers and sellers, armed with information that they got WITHOUT going through an agent, will find each other more and more. Many sellers who have time will do their own marketing activities and buyers will do more of their own house hunting without us.

My problem with Smith is how he frames his argument and his apparent lack of understanding of what the Internet CANNOT do. He not only does a disservice to agents in cheapening their role, but, in pitching the wonders of the Internet as a matchmaking device without any acknowledgement of the importance of fiduciary counsel and care, he leaves the consumer increasingly vulnerable. A home is, to most people, their greatest financial asset. Buying or selling a home is not the same as selling clothes at a yard sale and without expert assistance, consumers "going it alone" more often than not, fail in their attempts to buy or sell for the greatest value. Read the full article...

Think Real Estate Consulting is Just a Fancy Name for Discounting?

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Sat, 08 Sep 2007 11:39:08 -0500

Or Just "Fee-For-Service"? Think Again.

A few years back when I was teaching "Introduction to Real Estate Consulting" at boards and associations, it was common for agents, brokers, and managers who didn't understand consulting to dismiss it as "discounting". This type of comment was always amusing to me because in fact, I developed my consulting model as an anecdote to discounting.

Commissions are, by their design, built on "high risk-high reward". In fact, the reason that commissions are a relatively expensive way for consumers to pay for real estate services is that the lion's share of what the consumer is paying for is risk mitigation. Discounting has nothing to do with what percentage is being charged (there is no such thing as a set commission). Rather, discounting is when an agent or brokerage agrees to continue to carry all the risks inherent in being paid on contingency, but simply agrees to less reward. That lower reward means that they have no cushion to cover them when other transactions don't happen. That's why I believe that discounting is a bad deal for our industry.

Consulting on the other hand, takes a very different approach: it offers transparent choices to the consumer in the services they can receive and how they can pay for them. A real estate consultant can lay out the cost of their various services and give the consumer a choice in paying for the services themselves (the way we pay most service providers) or pay for the risk mitigation that a traditional commission provides, but they MUST understand that they will pay a premium for that "insurance policy".

More recently, we sometimes hear from our colleagues that consulting is just "fee-for-service". Certainly, practicing real estate from a consulting model does entail offering fee options, but the consulting model encompasses so much more that. If you think of consulting as simply providing "fee-for-service" options to sellers, you're missing the boat on what consulting is all about. You're also missing out on a whole lot of extra income!

Consulting is a whole new approach to your business. It's having the "tools in your toolbox" to offer the consumer quality choices that pay you fairly for the expertise and years of experience that you bring to the table. It's knowing your value and having the confidence to walk away from clients who will sap your energy and not provide a good return on your investment. Consulting is about knowing what you are worth and settling for nothing less. Read the full article...

Are Real Estate Agents Commodities OR Professionals Whose Expertise and Experience Makes All the Difference?

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Sun, 26 Aug 2007 10:07:35 -0500

In the 1995 movie, The American President, there is a scene where President Andrew Shepherd, played by Michael Douglas, is in a heated discussion with his domestic policy advisor, Lewis Rothschild, played by Michael J. Fox, about the President's falling poll numbers.

In this scene Rothschild pleads: "People want leadership, Mr. President, and in the absence of genuine leadership, they'll listen to anyone who steps up to the microphone. They want leadership. They're so thirsty for it they'll crawl through the desert toward a mirage, and when they discover there's no water, they'll drink the sand."

To which President Shepherd responds: "People don't drink the sand because they're thirsty, Lewis. They drink the sand because they don't know the difference."

Let me rephrase this exchange as it applies to today's real estate consumer:

Today's consumer clearly wants choices in the real estate services they can receive and how they can pay for them. They are so hungry for choices that in their absence from professionals, they will listen to anyone who says that they offer the same services for less. But when they find out that the "same services for less" promise is just a mirage, it only serves to harden their belief that agents are all the same and not worth much at that.

In an environment where online portals are popping up almost daily, promising something for almost nothing, and Internet-savvy consumers who often believe that the Internet can replace an agent, real estate services with little or no professional guidance attached are increasingly being purchased. But overwhelmingly, consumers aren't buying these pared-down services because they want cheaper. They're buying these services because they don't know the difference. To Read More, Click Here.

Technology Versus Hands-On Care

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Tue, 24 Jul 2007 06:18:26 -0500

WHY CAN'T THE CONSUMER HAVE BOTH?

In a recent article in RIS Magazine, Brian Buffini, founder and chairman of Buffini & Company made a very interesting observation: despite the fact that 80-90% of real estate buyers start their home search online, how many, when browsing homes online and finding one that they like, would actually go to the next step and click "Add to Shopping Cart?"

I have been a long time coaching client of Brian Buffini's Referral System. Brian teaches that instead of spending huge bucks marketing to strangers, to put your money into those who already know you and the referrals they send your way. His system has been extraordinarily successful for me; for the last five years, my personal business has been 100% by referral.

At the same time, I originally built my business online and have long been an early adopter of technology. Known as the "tech queen" I have long been in favor of using technology to do functionary tasks better, faster, and cheaper.

The problem is that in the current environment, there seems to be no middle ground! To Read The Full Article, Click Here.

Bleeding Is Not Good for Your Business’ Health

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Tue, 17 Jul 2007 12:31:09 -0500

In real estate today, large numbers of agents are competing for a shrinking market. With unlimited real estate information available online and multitudes of sites competing with, and seeking to replace the agent, the public increasingly looks at the agent (and brokerage), who only offers the traditional full-service package payable only by commission, as a commodity to be shopped by price. Limiting themselves to the traditional commission model, agents and brokerages are indeed swimming in a bloody red ocean of cutthroat competition.

By contrast, real estate consulting, which provides the consumer responsible choices in the services they can obtain and how they can pay for them, while paying the professional fairly for their time, experience, and expertise, creates an "uncontested market space, ripe for growth that makes the competition irrelevant." To Read The Full Article, Click Here.

Living A Double Business Life

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Sun, 08 Jul 2007 13:31:29 -0500

In the article, "Discount Brokerages Band Together", Matt Carter of Inman News wrote that Virginia-based RebateReps.com helps agents who want to dabble in discounting without alienating full-commission customers, or work for a discount broker full time. "Most Realtors® don't want to advertise themselves as rebate agents because it cannibalizes their other business," said RebateReps founder and owner Daniel Rubén Odio-Páez. "RebateReps connects buyers to local agents who are willing to rebate part of their commission but don't necessarily want to advertise that fact." Odio said. "RebateReps allows agents to have their full-service brokerage and to service our (discount commission) leads."

I find it fascinating that these discount and rebate firms can find agents, willing to cut their contingent commissions (while continuing to take all the risk, I might add), as long as they can "do it on the sly". But, I'm wondering how long these agents can keep their double life going. To read the full article, CLICK HERE.

Pricing Your Home to Sell in a Softer Market

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Thu, 13 Jul 2006 15:01:07 -0500

"CAN I SELL NOW?" (What’s The Market Saying?)

"What Price Can I Get? "

"How Long Will It Take? "

"Who Determines Price Anyway?"

In Other Words... "I NEED THE STRAIGHT SCOOP ON PRICING!"
Here in Massachusetts, as in other parts of the country, the market for sellers is clearly not what it was last year. Many consumers (and agents who haven't been in the business very long) are saying that it's a bad market for sellers.

I disagree. It's a normal market. It's just that what we've had over the last five years is what was not normal!

It's not normal for a home to have 5 competing offers the first day on the market. It's also not normal sell a home you bought only one year ago and walk away with a 40% profit.

What we're seeing right now is a moderation in housing prices and more reasonable Days On Market figures. Unfortunately, many sellers have not caught on that this is not the same market that their neighbors experienced last year and will put their homes on the market clearly overpriced. And their homes will sit.

To get a refresher course on pricing, check out Pricing Your Home To Sell.

How Does Fee-For-Service Work?

Mollie Wasserman (Accredited Consultant in Real Estate™ LLC) — Sun, 09 Jul 2006 14:52:15 -0500

Fee-For-Service is one of the most talked about trends in real estate today. It is also one of the most misunderstood! There are many companies, both online and off, that call what they do "fee-for-service", when they are in fact, discounters, who provide shoddy service, no representation or advocacy, and in the end, simply waste your money.

If you've read any of my writings, you know that I believe that in real estate, quality is essential for keeping the most money in your pocket when you close. But should that mean that you're locked into paying by commission in order to get that quality? Absolutely not!

Of course, in the end, based on your needs and comfort level, a traditional commission may be the best choice. But you should make that choice because it's the BEST option, not because it's the ONLY option.

This above is an excerpt from our Consulting Site: MyREConsultants. If you'd like more information about the consulting model and alternative ways to pay for quality real estate services, please come visit.