Technology for Real Estate Professionals Blog

Strategy: See what you missed at Inman Connect?

Frank Jewett (tech4REpros) — Thu, 24 Jul 2008 20:41:23 -0500

Today, Inman Connect held a workshop on blogging. Highlights can be found by clicking here.

For those who couldn't make it or decided to spend $800 (plus hotel and travel) on something else, here are links to six posts on the tech4REpros blog covering many of the same issues.

Strategy: Objectives Of Real Estate Blogging

Strategy: Choosing Effective Blogging Topics

Strategy: Whatever happened to Real Estate Blogging?

Strategy: Is Anyone Reading Your Real Estate Blog?

Strategy: Sell Your Neighborhood!

Strategy: Choosing Real Estate Blogging Topics

In brief, blogging is a new publishing model. Real estate blogging is like drip marketing, the goal is to attract and retain clients and prospects by providing value to them on their terms. Because real estate blogging doesn't require printing and postage, you can communicate with clients and prospects more often. Frequent updates encourage frequent visits which increases retention.

You'll notice that "other agents" did not appear anywhere in the preceding paragraph. Would you send your newsletter or market update to other agents? No? Well then you shouldn't be blogging for them, either. Treat real estate blogging like the watercooler at the office and you will get sympathy. Treat real estate blogging like networking with your neighbors and you will get deals. What would you rather get out of real estate blogging, sympathy or deals?

Thanks for reading!

Frank Jewett

Software: Microsoft Outlook Digest

Frank Jewett (tech4REpros) — Sun, 13 Jul 2008 01:49:43 -0500

This is a digest of Microsoft Outlook posts here at the Technology for Real Estate Professionals blog. If you would like more information about an Excel feature I have not yet discussed, please click comments and post your questions or suggestions here or contact me.

Thanks for reading!

Frank Jewett

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Microsoft Outlook Digest

Software: Microsoft Outlook - An overview of the components of Microsoft Outlook.

Software: Using Outlook To Read Webmail - Links to instuctions on how to setup Outlook to read from a webmail account.

Software: Organize Incoming Mail With Outlook - Instructions on how to create Outlook rules to automatically sort incoming mail into subfolders.

Software: Importing Contacts From Excel Into Outlook - Instructions for importing contacts from Excel into Outlook to avoid the dreaded "no named ranges" error message.

Software: Outlook Contact Folders And E-Mail Merging - An overview of how to organize Outlook contacts to support e-mail merging from Microsoft Word.

Software: Managing Client Relationships with Outlook 2007 - How to use Outlook as a client relationship manager and how to show the contact linking button on all forms in Outlook 2007.

Localism 3.0 - Three Ways To Make More Money From Localism

Frank Jewett (tech4REpros) — Sat, 12 Jul 2008 04:04:02 -0500

LocalisMLM

Members can sponsor neighborhoods for just $15.00, then sell sponsorships within that neighborhood for $15.00 to generate an additional revenue stream. 50% of monthly sponsorship fees will be paid out in commissions to upline sponsors. If you missed out on Quixstar and VMDirect, this is your chance!

LocalismEX

Members can purchase the right to sponsor a neighborhood for $7.50 per month in perpetuity. These rights are fully transferable in the new LocalismExchange aftermarket, subject to a $5 administrative fee. Buy sponsorships in the path of progress today and build a retirement portfolio for tomorrow.

Localism.org

All we need are you and 97,454 other members to click the breast cancer banner, then we can get back to displaying your localism blogs. While we wait, here's Rich Jacobson to show us the thank you gifts for contributions at the $50, $100, and $500 levels, including a one-year subscription to Trulia Pro.

Web: Localism Redux

Frank Jewett (tech4REpros) — Thu, 10 Jul 2008 18:18:38 -0500

On Wednesday, July 9th, ActiveRain unveiled a new version of Localism, their consumer facing real estate blogging platform. It didn't take long for the screaming to start.

Realtors Blogging For Realtors

Almost 100,000 real estate professionals have signed up for free accounts with ActiveRain. Most of them didn't last long, though the same can be said for all forms of real estate marketing. For those that did stay, the challenge was reaching consumers in network that fostered mainly peer-to-peer discussions. ActiveRain's answer was Localism, a platform that organized content by state, county, city, and neighborhood.

What Happened To Localism 1.0?

Members flocked to Localism, flooding it with listings, commercials, and even a few good articles about local areas and events. ActiveRain tried to raise the value of Localism to consumers by creating a meritocracy where posts would be ranked by the membership so that posts could be displayed in order of value.

Unfortunately members began creating straw man accounts and reciprocal agreements to inflate their ratings. ActiveRain took over the ratings system, but the problems continued as perfectly useful posts about upcoming Easter Egg hunts lingered at the top of the page well past Halloween. Localism 1.0 was hopelessly broken.

Why revisit the past when a new day is dawning for Localism 2.0? Spanish philosopher George Santayana once wrote "Those who cannot remember the past are condemned to repeat it." It's important to look at the reasons why Localism 1.0 failed so that we can understand the challenges that Localism 2.0 will have to overcome to succeed.

Quality Content

Consumers want quality content, not a steady stream of ungraded information. Previous attempts to use a "self-policing" system failed, so Localism 2.0 will employ editors to weed out low value posts in an attempt to maintain the level of value needed to attract consumers.

Scarce Resources

Hiring editors to oversee content costs money. ActiveRain has had difficulty monetizing their platform to generate the revenue needed to expand their network and provide much needed oversight. It has been a chicken-and-egg situation. They need to spend money to raise the value of the platform to make it attractive enough to generate revenue from sponsors.

Agent Ambition

ActiveRain and subsidiary ventures like Localism were organized as communities, but when it comes to real estate marketing, most agents want to be #1. Localism 2.0 is attempting to solve the issue of scarce resources and agent ambition by selling neighborhood sponsorships.

That's when the screaming began.

Panic In The Rain

Agents who spent months or even years building up the value of ActiveRain and Localism 1.0 weren't pleased to discover that ActiveRain would be licensing that value to their competitors through neighborhood sponsorships on Localism 2.0. The RE.net blogosphere lit up like a Christmas Tree with a mixture of angry complaints, well wishes, and "I told you so" posts. You can find them by searching for "Localism and ActiveRain" on Google.

Perspective

Did you ever wonder why Google is larger and more successful than all of the content providers it covers? Clearly internet consumers believe that the best way to find quality information is to use search engines, particularly Google, rather than relying on individual websites to deliver consistent quality. This raises an interesting point regarding Localism 2.0 sponsorships.

Sponsors appear on community pages at the state, city, and neighborhood level, but they don't appear on any blog posts other than their own. The only way sponsorships will pay off is if consumers decide to browse Localism by using the community pages. If consumers rely on search engines, they will click straight through to the member's post without ever seeing the sponsor. In that sense, Localism 2.0 still offers as much free Google juice to members as ActiveRain and Localism 1.0 did. Whether it offers value to sponsors remains to be seen.

Ambition 2.0

Did I mention that agents are ambitious? Localism 2.0 is counting on that. They are staging a sponsorship selloff which they are comparing to the famous "Land Rush" where the government gave away former native american land to settlers on a first come, first served basis. It's a slogan with an uncomfortable double meaning given the feelings of many bloggers who helped create the communities that are now being put on sale.

Stay Tuned

Will the "Land Rush" scheme generate a windfall that allows ActiveRain to fund Localism 2.0? Perhaps. The more important question is whether the sponsors will receive any return on their investment. For all the complaints about disintermediation, aggregators, and lead generation models, the real problem has been that most of them didn't deliver results, because most agents would gladly pay if they could effectively outsource some of the burden of marketing.

Thanks for reading!

Frank Jewett

Software: Microsoft Excel Digest

Frank Jewett (tech4REpros) — Tue, 08 Jul 2008 14:34:50 -0500

This is a digest of Microsoft Excel posts on my Technology for Real Estate Professionals blog. If you would like more information about an Excel feature I have not yet discussed, please contact me.

Thanks for reading!

Frank Jewett

==========

Excel Digest

Templates: FREE Microsoft Excel Templates for Real Estate - Where to find free Excel templates from Microsoft for closing costs, loan calculators, and expense reports.

Software: Importing Contacts From Excel Into Outlook - How to convert Excel data into CSV (comma separated values) format prior to make it easier to upload into other programs.

Software: How to freeze panes in Microsoft Excel - How to get the headings at the top or left of your spreadsheet to stay on the screen as you scroll.

Software: Merging Cells in Excel - How to merge two or more cells so that you no longer have to struggle to try to center titles on your Excel documents.

Software: Combining Text In Excel - How to combine text from two different cells in a third cell using Excel's concatenation operator.

Software: Using AVERAGE and MEDIAN functions in Excel - How to use Excel's average and median functions to calculate those values for a CMA.

Industry: July Real Estate Calendar

Frank Jewett (tech4REpros) — Mon, 07 Jul 2008 23:07:29 -0500

SCCAOR and tech4REpros are offering several helpful technology classes in San Jose in July. Here are the dates and times for those classes, along with other important Santa Clara County real estate events that you may want to add to your calendar.

Wednesday, July 9th - Richard Calhoun's monthly market update at Old Republic Title at 1:30 PM

Thursday, July 10th - SCCAOR's Annual Membership BBQ and Whistle Stop Rally

Wednesday, July 16th - Microsoft Excel for Real Estate Professionals at SCCAOR from 9:00 AM to 10:30 AM

Wednesday, July 23rd - IREBN monthly meeting at Old Republic Title at 9:00 AM

Tuesday, July 29th - Microsoft Publisher for Real Estate Professionals at SCCAOR from 9:00 AM to 10:30 PM

Thanks for reading!

Frank Jewett

Industry: Real Estate Is A Numbers Game For Brokers, Too

Frank Jewett (tech4REpros) — Sun, 08 Jun 2008 17:23:10 -0500

If you are still visiting ActiveRain, I'm going to assume that you've decided to commit to another year in real estate. Otherwise there isn't much point in sticking around through the slow fall and winter seasons only to leave at the start of 2009, before the next spring bounce. With respect to the bubble bloggers, many of whom I read on a daily basis, there is always a spring bounce relative to the rest of the year, even in a dismal market. If you have decided to stick around, you'd better have a marketing plan, because this year is going to be different.

Since 2005, brokers have adapted to the slowing market by playing the numbers game. Just as agents need contacts to generate prospects to generate clients, brokers need agents to generate clients to generate commission checks. When agent productivity started to fall, many brokers responded by bringing in more agents. Recruiting is always important for brokers and sales managers, but over the past few years there has been a higher premium on recruiting. Even unproductive agents were being offered generous splits in a desperate attempt to increase revenues to cover overhead.

We're going to see a change over the next few months as brokers recognize the need to adapt their business model and reduce their overhead. We're going to see more accountability programs as the number of available desks and the amount of available overhead for agent expenses shrinks to fit the decreased number of available transactions. In some cases this may be due to office closures or downsizing, but in other cases brokers will simply come to the realization that taking a "lean and mean" approach is more practical than the "panning for gold" volume approach of recent years.

This means that agents will have to have a marketing plan, not just a license or a track record. How many people are in your database? How are you engaging the people in your database? How are you adding new people to your database? How do you present yourself to your clients and prospects? What is your competitive advantage? I've known veteran agents who had less than 100 people in their database and were adding only one or two new names per month. That's not going to be good enough to make it through the next year or two, even if you have your own broker's license.

This is the year brokers start running out of patience, money, or both. This is the year recruiting standards rise above the level of having a current license and being able to fog up a mirror. This is the year that if you don't have a marketing plan, you'd better start working on one, because pretty soon you're going to have to compete for desk space. I'll be discussing a variety of marketing plans this week in my local blog.

Thanks for reading!

Frank Jewett

Strategy: Underwater Farming in California?

Frank Jewett (tech4REpros) — Sun, 18 May 2008 03:37:10 -0500

I was sitting at my desk, trying to think of what a real estate agent could offer clients, when my eyes fell on my IRA statement from Smith Barney. That's when it hit me.

Wouldn't past real estate clients like to receive an annual statement (CMA) letting them know the value of what is likely the largest investment in their portfolio, their home?

Of course this year's statement might not evoke positive feelings toward the real estate agent, especially if this large investment had depreciated and the client was underwater.

That's when it hit me again. That client probably hasn't heard from the real estate agent asking for referrals. In fact, the agent might not even be returning that client's phone calls.

Why not make that client your client? Why not earn that client's loyalty and future referrals by reaching out with the perfect item of value for the underwater homeowner?

Let that client know that it is possible to appeal to have their property tax assessment reduced to reflect current market conditions. Click here for more information (PDF).

Personally I'd rather get that information from my previous agent than from another agent, but if my previous agent hadn't kept in touch, I'd be ready to find a new agent.

Thanks for reading!

Frank Jewett

Strategy: Something Of Value For Less Than A Dollar?

Frank Jewett (tech4REpros) — Sun, 11 May 2008 02:32:56 -0500

On Monday, May 12th, the cost of first class postage will increase by one cent.

Last time the post office raised their rates, a local broker gave me a card to remind me about the increase. Inside the card, he had placed a strip of 10 one cent stamps. I held on to those stamps and every time I used one, I thought of him.

Brian Buffini suggests periodically giving your clients something of value to let them know that you're thinking of them so that they will keep thinking of you. I can't think of a more efficient item of value than that strip of 10 one cent stamps.

If you're planning to meet with clients next week, pop by the post office first and buy a few sheets of one cent stamps. You can remind your clients about the increase and save them a trip to the post office. Ten impressions for ten cents.

Thanks!

Frank Jewett

Info: Santa Clara County Secured Property Tax Search

Frank Jewett (tech4REpros) — Sat, 10 May 2008 19:48:18 -0500

Whether representing the sellers or the buyers, a real estate professional should always try to get as much reliable information as possible. Here in Santa Clara County, we have the luxury of being able to research secured property taxes online through the Santa Clara County website.

Click the Santa Clara County Tax Collector - Secured Taxes link under the Government Resources links on the right side of the tech4REpros blog.

Enter the APN (Assessor's Parcel Number) or property address and click Search. If a matching address is found, the system will display a summary of secured tax payments for the current year.

The summary report will display the amount of each tax payment and the current status, along with any applicable penalties. It's important to discuss any outstanding property taxes as soon as possible to avoid unpleasant surprises that could derail your transaction.

Thanks!

Frank Jewett

Strategy: The Tao of Real Estate

Frank Jewett (tech4REpros) — Sun, 04 May 2008 22:03:42 -0500

Your real estate business is a duality comprised of two aspects, a technical aspect and a marketing aspect. The technical aspect consists of various activities that are performed between the listing and the closing, from filling out contracts to ordering inspections to handling negotiations. The marketing aspect consists of the various activities that are performed to generate listings and buyer clients.

Like Yin and Yang, these aspects can oppose each other. For example, time spent learning to use online forms software is also time taken away from marketing. But, these aspects can also compliment each other, as in the example yesterday where learning to use a TMS platform to manage the technical aspect of a transaction created an opportunity for stronger marketing. These aspects also wax and wane. Agents spend more time on the technical aspect during a transaction and more time on the marketing aspect between transactions.

Is balance the key to happiness? Not exactly.

Certainly it is helpful to look for ways that technical knowledge can compliment marketing. The most important part of selling yourself is believing in your advantages and being able to communicate those advantages to your prospects. Acquiring technical knowledge is a way to build your confidence if you don't have a lot of experience or if you've been in a slump, but ultimately it is the marketing aspect, not the technical aspect, that will determine your success in real estate.

On the technical side you can get plenty of help from your broker, your transaction coordinator, your assistant, and in some cases your escrow officer and the other side. If you haven't submitted a necessary form, someone connected to the transaction will probably remind you. On the marketing side you are mostly on your own. True, some offices generate referrals and pass leads to agents, but you are responsible for marketing yourself and generating most of your business.

The key to happiness is leverage. Take advantage of opportunities to get help with the technical aspect so that you don't lose focus on the marketing aspect when you are managing several transactions. If you do invest time and money in software or hardware related to the technical aspect of real estate, such as buying a tablet PC to collect digital signatures, leverage that investment by marketing the benefits of your use of that technology to your clients and prospects.

Focus on complimentary relationships between the technical aspect of the business and the marketing aspect of the business and remember to always tend to the marketing aspect so that your real estate business will keep thriving.

Thanks!

Frank Jewett

Strategy: Are You Marketing Your TMS Platform?

Frank Jewett (tech4REpros) — Sat, 03 May 2008 21:51:59 -0500

Is your office currently using a transaction management system like RELAY, SureClose, or Transaction Point to provide online escrow coordination? Have you made your use of a TMS platform part of your listing presentation?

There are a number of advantages you can claim over agents who are not using a TMS platform.

Online Disclosures
Visitor Tracking

You and your transaction team can save trees by using your TMS to post disclosures online. Disclosures are available 24/7 to all agents and buyers who are interested in the property. To access those disclosures, agents and buyers must provide their name and e-mail address. The TMS platform captures that information, giving you an opportunity to follow up with interested parties to collect feedback on the condition of the property and the price.

Online Contracts
Activity Tracking

All of the contracts will be posted online, so it will be easy to make them accessible to your client's advisers, such as attorneys and accountants, without having to pay for shipping or wait for the contracts to be scanned. TMS platforms track document access, providing proof that documents were accessed by various parties to the transaction. TMS platforms also provide an opportunity to track the activities needed to successfully complete the transaction.

24/7 Transaction Status
Check Online Or "Call Me"

Clients can monitor their transaction online or they can call you and you will be able to provide an update without having to wait until office hours. The key to keeping that promise is learning how to log in and check your own transactions on your TMS platform. Your transaction coordination team may take care of all the details, but you need to learn how to access your TMS platform so that you can respond quickly to your clients.

Transaction CD With All Contracts

Clients will receive a CD after closing that contains all of the contracts they need. Having all of the contracts on a CD is a lot more convenient than having to keep a phone book sized file of hard copy documents. A transaction CD is also a great branding opportunity because clients are more likely to retain this CD than anything else you could give them.

If your office is using a transaction management system, it's time to start telling clients and prospects how your use of that system allows you to provide better service than your competition. It's also time to learn how to access your TMS yourself so that you can take advantage of 24/7 online access to take your client care to the next level.

Thanks!

Frank Jewett

Strategy: Recycling And Repackaging Blog Posts

Frank Jewett (tech4REpros) — Sat, 26 Apr 2008 23:39:07 -0500

Another strategy for consistent blogging is recycling good posts from the past that are still relevant. This week, I taught a workshop on real estate blogging. Since I had directed my students to my blog, I decided to recycle a pair of posts discussing the objectives of real estate blogging and tips for maintaining consistency. These posts reinforced our workshop discussion and also tied in to my recent posts about common real estate blogging mistakes.

Brokers and agents can also recycle old posts. Buyer and seller tips are always relevant, but they could easily be missed in the archive. Once you've written them, you can simply cycle back through them occasionally to make sure that new visitors and subscribers don't miss them. Seasonal homeowners tips should be recycled every year as reminders.

You can recycle posts in Blogger simply by clicking Post Options and changing the posting date from the original date to the current date. This does not change the "permalink" URL, so links from other posts and blogs still work. In ActiveRain you actually need to repost the material and you may get docked 200 points for trying to "game the system", though if you're still blogging for ActiveRain points, you're missing the real value of both real estate blogging and ActiveRain's peer-to-peer discussions.

An alternative to recycling is to create a "digest" post which contains links to all of your posts on a particular subject, organized in some logical fashion with brief summaries. Every time you make a new post on that subject, add another link to your digest. You could also promote the digest in the new post so that people who find that subject via search engine won't miss your other posts.

An example of a digest post is my WINForms® Digest, which is permanently linked in the right side of my blog under the profile. Click here to read my WINForms® Digest. Brokers and agents could create digest posts for real estate tips and also for entire neighborhoods. Each neighborhood digest post would link to blog posts about shopping, dining, and events in that neighborhood.

Thanks for reading!

Frank Jewett

EDIT: I've posted my own example of a neighborhood digest and added a link on the right.

Strategy: Are You Still Blogging For Other Agents?

Frank Jewett (tech4REpros) — Tue, 22 Apr 2008 17:53:49 -0500

There are some things that are worse than copying and pasting jokes from chain letters into your real estate blog. One of them is devoting precious consumer facing blog space to writing for and about your real estate blogging buddies, otherwise known as "the blogosphere", especially when they are fighting.

When you see a pie fight forming, don't reach for a pie.

Earlier today, a conflagration sprung up when an agent made fun of Redfin and a Redfin agent responded. Naturally most in the industry sided against Redfin. That's all well and good on peer-to-peer blogs, though most of the participants who thought they were covering themselves in glory were actually covering themselves in pie. Is this any way for professionals to behave?

There is no "right side" for a professional in a pie fight.

What's worse is the spillover effect where many agents began commenting on this pie fight in their consumer facing blogs. Before someone responds to accuse me of hypocrisy, this blog is written for the benefit of brokers and agents, not to attract buyers and sellers. That said, I'm not going to waste your time trying to enhance my reputation with the blogosphere, the group of "celebrity" bloggers whose names you've probably seen on flyers for seminars you haven't attended. The people I respect are focused on their clients, not their internet clubhouse.

I point out this incident to remind my readers to focus on what is really important.

Once again, here is my golden rule for determining if a post is worthy of space in my blog.

Would I pay to print this post and mail it to my clients and prospects or proudly hand it to them at a meeting?

Would you proudly hand out a blog post ridiculing your competion to your clients and prospects? Of course not. You'd look unprofessional.

Would you proudly hand out a blog post discussing how stupid other people's blogs are to your clients and prospects? Of course not. You'd look unprofessional.

Don't write your blog for your real estate blogging buddies. Write your blog for your clients and prospects by focusing on topics that matter to them. They are the community you should be trying to build through blogging.

Thanks!

Frank Jewett

Strategy: Are You Still Blogging For Points?

Frank Jewett (tech4REpros) — Sun, 20 Apr 2008 22:57:22 -0500

There are a variety of reasons for writing a blog post. Most blog posts fall into one the following categories.

A) Advertising myself or my listing

B) Attracting readers in my target audience

C) Establishing my professional expertise to my target audience

D) Sharing my values and perspective with my target audience

E) Communicating with my peers to exchange information

F) Collecting 200 points

Category A is clearly business related. Categories B, C, and D are also business related. Real estate bloggers should attempt to attract the right audience, establish their own expertise, and share their values and perspective to establish trust. Blogging is drip marketing without the cost of printing and postage.

Category E is also business related, though in most cases it won't help pay your bills. ActiveRain is a great source of free advice, information, and feedback. ActiveRain is also a great source of bad stream of consciousness posts written mainly to collect 200 points. I won't point any fingers, but a lot of posts could start with the phrases "Dear Diary...", "Since this is free...", or "I just thought of another excuse to collect 200 points..."

Imagine if you were actually successful at attracting a repeat visitor with a post about interest rates and the next post they read was about taking your dog to the vet or the problems you are having with your Blackberry or the joke you just copied and pasted from a chain letter. That clicking sound is your reader heading for the exit.

Unless ActiveRain starts awarding steak knives for 50,000 points*, it doesn't make sense to put posting "whatever" for points ahead of posting content designed to attract and retain an audience. Peer-to-peer communication is also a valid objective, but it won't pay your bills. Ask yourself how many of your last ten posts were simply written to collect points. Accountability is great, but only if the activity leads to a meaningful objective. Achieving AR points goals is not a meaningful objective. Collecting 50,000 points will not generate leads. Achieving reader loyalty and the business that flows from it is a meaningful objective. What you write about can generate leads... or it can drive readers away.

Here is a simple guideline I apply to my posts:

Would I pay to print this post and mail it to my clients and prospects or proudly hand it to them at a meeting?

I'm Frank Jewett, and I believe this post was worth my time to write and your time to read.

Thanks!

Frank Jewett

Strategy: Do Photos On Flyers Help Sell Listings?

Frank Jewett (tech4REpros) — Fri, 18 Apr 2008 04:49:40 -0500

The other day I stopped in at a local office that I used to call on when I worked for the title company. I had an appointment, but I wasn't charging for my time. The purpose of this meeting was to exchange information and maintain my relationship with that office. I've never been a broker or an agent, so I learn by listening.

I asked an assistant about listing flyers to see if they used corporate resources, free templates, or local talent. The answer, much to my surprise, was that they did their own black and white flyers in Microsoft Word with no photos.

"Why no pictures?", I asked.

"He says he doesn't want to give it all away", the assistant replied.

Is that an excuse or a clever strategy to get people to come and see the property for themselves?

Before you answer, I should let you know that this broker personally closed almost 20 transactions in 2007. I verified it with an outside tracking service. That number puts him in the top 1% in Santa Clara County.

It would be unpardonably arrogant of me to dismiss sales tips from a veteran broker who consistently delivers strong numbers even during a down market. I have to be open to the possibility that he's on to something.

Do any of you avoid "giving away" photos on your listing flyers?

Frank Jewett

Strategy: Happy Birthday to Me!

Frank Jewett (tech4REpros) — Fri, 18 Apr 2008 00:41:28 -0500

It's my birthday. Hold on, I'm not fishing for well wishes. I've already received plenty today.

I got a birthday card from Southwest Airlines. I got a birthday card from the dealer who sold me my Charger. I got a birthday card from the auto broker who sold me and my wife her Buick. He also left a phone message. I even got a birthday card from the Buick dealer forty miles away who we've never actually met.

I couldn't tell you what any of the cards said. I didn't keep them, but they did make an impression. I remember who sent them to me.

Are you letting your previous clients know that you remember them? Better yet, are you taking the opportunity to remind them that you're still out there at a time when so many agents are leaving the business?

Please don't wish me a Happy Birthday. Save it for your clients. It doesn't matter what the card says. The point is that you remember them and you're still there if they need you.

Don't overthink it. Just do it!

Frank Jewett

Industry: Are Short Sales The New Low Hanging Fruit?

Frank Jewett (tech4REpros) — Thu, 17 Apr 2008 03:59:48 -0500

When I worked at the title company in 2006, there was one agent who would always sidle up to my desk, lower his voice, and ask if I could get him a copy of the Blue Sheet. The Blue Sheet is an NOD newsletter here in Santa Clara County. Every month the agent would ask me and every month I would give him the address so that he could order a subscription. At that time, he was one of the few agents who expressed an interest in short sales.

By the middle of 2007, short sales had become the rage. Agents in some areas no longer needed a Blue Sheet because short sale listings were easy to find. On top of that, many conventional listings became short sales as the sellers followed the market down after trying to turn a profit with their original listing price. Now I hear that some ambitious agents have picked up 20, 50, or even 100 short sale listings.

Is it possible to properly service 50 listings? Are these agents buying more short sale raffle tickets because the odds of winning are so low? I've spoken to several agents who have been through short sales and their experiences have not been positive, yet it seems like more and more agents describe themselves as short sale specialists. Are short sales the new low hanging fruit, or are they more like fruit that is already on the ground?

Does anyone really prefer working short sales?

Thanks!

Frank Jewett

Strategy: Who Wants To Get Paid In May?

Frank Jewett (tech4REpros) — Tue, 08 Apr 2008 16:51:19 -0500

Last year, I spoke with an agent who cashed twelve commission checks in 2007. Six came from listings and six came from working with buyers. He got his listings through geographic farming. He'd been farming the same area for more than two years and he was having his best year ever in a slow market. If he didn't have a listing, he would prospect for buyers by showing open houses for other agents in his office.

How can you duplicate his success? Well, if you haven't been farming, it's time to get started. Unfortunately it may take six months to a year to start generating business from your farm. You might get your first listing in October and with the market slowing down over the holidays, you might not sell that listing until 2009.

What can you do today if you want to get paid in May? Start working with buyers.

Many agents don't like working with buyers because they are afraid they will end up wasting time and money locating and showing homes to people who aren't serious about buying. It's a common problem, but you can overcome this problem by choosing to work only with buyers who are "ready, willing, and able" to buy property.

Buyers are "ready" if they are planning to close escrow within three to six months. Having that desire to buy is merely the starting point for qualification. Buyers are "willing" if they are willing to hire you to represent them. This means that they are willing to sign an agreement to have you represent them exclusively. Buyers are "able" to buy if they have been prequalified for financing. Knowing how much your buyers can afford will help you show them properties that they can afford to buy rather than wasting time on fantasies.

Let's review our objectives for qualifying buyer clients.

1. Serious about buying in the near future
2. Signed exclusive representation agreement
3. Prequalified for financing

How can we get there from here? Let's start by focusing on what is important to our buyer prospects: saving money. If we're going to sell property in a buyer's market, our focus should be on bargain hunting. If our buyers want bargains, they need to act quickly because attractive, well priced homes are still selling quickly, as shown by the relatively low median days on market for properties that have sold.

This need to act quickly makes it more important than ever to prequalify so that our buyers will know what they can afford and can write a strong offer showing that they have the ability to get financing. Delays could mean losing the property to another buyer or getting into a multiple offer bidding war, so buyers who want bargains need to take control of their part of the process by getting prequalified for financing.

How about the exclusive representation agreement? Many agents seem to be afraid to ask their buyer prospects to make a commitment for fear of chasing them away, yet I constantly hear "horror stories" about agents getting calls from buyer prospects who stopped at an open house on their own, liked it, and ended up getting double sided by the listing agent. That's another reason many agents prefer to avoid buyers.

You pride yourself on the service you provide to your clients. Providing that level of service takes time and money. You can't provide the same level of service if you are working with dozens of clients, so you need to be selective. That's why you insist that clients "hire" you by signing an exclusive representation agreement. This also avoids the possibility of them getting blindsided by the listing agent.

We've addressed the last two objectives on our list, but what about that first objective? How do we know if our buyers are serious about buying in the near future?

Ask buyer prospects to prequalify with yourself, your in-house lender, or your lender partner and charge them a nominal fee for this process. A $50 charge for prequalification should be insignificant if a buyer is serious about spending $500,000 or more to purchase a home. Remind the buyer that prequalification is essential for writing strong offers quickly to try to avoid multiple offer situations.

How much time and money are you going to spend helping a buyer prospect find the right home? Put a dollar value on your efforts and use that to remind yourself why it is important to screen buyer prospects. Of course you could choose to ignore buyers completely, as many agents did during the boom, but then you are faced with the prospect of waiting a lot longer before you cash your next commission check.

Someone is going to get paid for selling homes over the next thirty days. Shouldn't it be you?

Thanks!

Frank Jewett

Strategy: Are You Lost Or Found On The Internet, Again?

Frank Jewett (tech4REpros) — Sat, 05 Apr 2008 18:07:47 -0500

Real estate professionals don't stay with one office forever. They tend to move around, particularly when the market is slow and they are looking to kickstart their business. They often move during the slow season at the end of the year. Can any of you see where I'm going with this?

I've noticed a growing number of agents and even brokers whose internet information is out of date. Remember when ActiveRain sounded like a good idea so you decided to try it for a week or two? The leads didn't start flooding in and you got busy with other things, so you never got back to it. Your ActiveRain profile page is still out there, but it's directing people who remember your name to your previous office. Is that office going to pass those leads on to you?

Have you updated your social networking profiles at Facebook, LinkedIn, and MySpace? Unlike the yellow pages, those listings never expire, so you can't afford to forget about them. If you haven't done so lately, go to Google and search for your name and the words "real estate" to see if you are being lost or found on the internet.

I have also seen another problem. When Google first discovers a web page, it creates a title based on the title of the page. For example, your title might have been "JOHN SMITH - INTERO." Unfortunately it appears that Google's database does not update these titles when the page changes. I know some brokers and agents whose Google page titles show information that is years out of date, even though the link points to a page with their current information. I haven't found a solution.

If this seems too complicated, I have a suggestion to make it simple. Get your own domain, like johnsmith4re.com. When you set up your home page, use a generic title like "JOHN SMITH - REAL ESTATE." Most domains provide at least one POP3 e-mail account, so set up John@JohnSmith4re.com and use that as your primary account. Use johnsmith4re.com as your primary web page, even if all it does is auto-forward visitors to your page on your current brokerage website. Using this approach will help retain leads as you move from office to office.

Thanks!

Frank Jewett

Industry: The REALTOR and the hairdresser

Frank Jewett (tech4REpros) — Wed, 02 Apr 2008 02:43:05 -0500

A REALTOR walked into a salon and asked a hairdresser "How's business?" "Terrible", replied the hairdresser, "I'm getting half as many bookings as last year." "That is terrible", said the REALTOR, "Maybe you should think about lowering your prices."

A hairdresser walked into a brokerage and asked a REALTOR "How's business?" "Pretty good", replied the REALTOR, "despite what you read in the papers." "Really?", countered the hairdresser, "I thought I read that you were only selling half as many homes as last year?" "Technically that's true", said the REALTOR, "but home prices have remained pretty consistent. WE HAVE NO IDEA WHY MORE PEOPLE AREN'T BUYING HOMES."

Why is it that organized real estate, which understands economics in the real world, can't understand the obvious economics at work in their own industry?

Frank Jewett

Industry: By The Time I Get To Phoenix...

Frank Jewett (tech4REpros) — Mon, 31 Mar 2008 13:52:19 -0500

I've picked up two phrases from ActiveRain mainstay Bill Roberts: "Highest and best use" and "path of progress."

What is the "highest and best use" for a 3,500 sq ft structure that is more than an hour away from the "path of progress?" I'm thinking boarding house or multi-unit rental. Heck, I live pretty close to the path of progress in Willow Glen, California. I live fifteen minutes from Google, e-Bay, and Adobe, yet I already see extra cars sprouting like weeds as my neighbors rent out extra rooms to try to make ends meet.

The homes in my neighborhood aren't boarding houses, they are 2000 sq ft ranch style homes and duplexes, yet the sublease phenomenon continues to grow despite our attractive location. I can only imagine the pressure to generate rental income in areas further from the path of progress. Sooner or later, many of those McMansions will house several families, even if they aren't formally divided into separate units.

That brings me to Phoenix, Arizona.

The thought of three families renting units in a McMansion won't excite any single family McMansion owners living nearby, but it beats having the property stand vacant. Las Vegas may recover due to their relatively unique ability to sell vice, but what happens to Phoenix? Will Phoenix legalize gambling and prostitution to bolster their economy? Would anyone bypass Vegas (or their local Indian Casino) to go to Phoenix?

There are currently 65,000 listings in Maricopa and Pinal Counties. That's you and over 200,000 of your friends and family members deciding to relocate to Phoenix because you want to own there. Can you imagine 65,000 families who can currently afford to buy a home packing their bags and relocating to Phoenix? We're staring at a gaping hole in that market that simply isn't going to be filled any time soon.

What's going to happen to the outlying subdivisions? Will they become slums or ghost towns?

Frank

Strategy: Are You Farming Your Listing?

Frank Jewett (tech4REpros) — Mon, 17 Mar 2008 22:30:30 -0500

Did you have poor turnout at your open house this weekend? There's nothing more frustrating than giving up your weekend to hold an open house and having very few people show up. Have you farmed your listing in the surrounding neighborhood?

Santa Clara County is a seller pay county. This means that the seller usually pays many of the closing costs, including title and escrow fees. Because the seller pays those fees, the seller, often relying on advice from the listing agent, chooses the title company.

When you get a listing in Santa Clara County, you should contact that title company and open a title and escrow order. You probably know that already, but you may not know that's just the first step.

Title and escrow fees are paid at closing. If your listing doesn't sell, the title company that opened the order loses money on the time and effort they have invested, just like you do, so obviously it's in their best interest to help you sell the listing.

RESPA limits the way title companies can help you, for example they can't pay for advertising or print flyers, but they are allowed to help by providing you with a radius farm, a list of owners and renters surrounding your new listing.

One way to promote your open house is to send out invitations to everyone in your radius farm. Many of them will show up out of curiousity, but some may have relatives or friends who are looking to relocate to the area. The increased foot traffic may cause interested buyers to act faster and write better offers because they think others are also interested in buying the property.

If you don't have much money in your marketing budget, walk your radius farm and pass out the invitations a few days before the first open house. Ask the residents what they like about their neighborhood. They'll probably be more anxious to share information than they would be to hear a sales pitch. Whether you are talking or listening, you've started a dialog.

Looking to take your radius farming to the next level? Pass out an invitation that promotes your listing and pass out a market update tailored to that neighborhood. You've already pulled comparable sales and listings to do the CMA. You can use the same information to provide something of value to the people in your radius farm.

Getting a market update on their neighborhood will mean a lot more to the people in your radius farm than getting a "brag sheet" claiming that you are a "#1 Agent" in their neighborhood, especially if your website touts you as the "#1 Agent" in a neighborhood several miles away.

As for the title company, there are more ways they can help, from the preliminary report to online disclosures. Talk to your title rep and escrow officer for more information. Remember, they don't get paid unless your listing sells, so they're anxious to help you and your clients.

Thanks!

Frank Jewett

Strategy: How's my market?

Frank Jewett (tech4REpros) — Sun, 16 Mar 2008 21:50:00 -0500

A few days ago, I mentioned that "How's the market?" is the most common question I get regarding real estate. I have a simple format I use to assemble my response based on recent data from the area in question. Simply complete these statements by inserting the location and choosing the most appropriate word.

Here in (*insert location*), we are currently in a (seller's, buyer's, balanced, normal, mixed) market.

Inventory is (high, normal, low) and sales have been (high, normal, low), so the median price has been (increasing, remaining stable, decreasing).

In a sluggish market, an accurate response may seem discouraging, but you can usually find a silver lining to generate some interest. I like to use an actual market statistic to show that I'm not simply making up my answer.

However, initiated sales increased more than 30% from January to February.

I also like to show that I have some insight into why things are happening.

The number of sales and the median price typically increase from now through the end of May.

Given the negativity surrounding the general market in my area, I've replaced my usual closing question with a new closing statement and question designed to refocus on the positives and continue the conversation.

But that's over the entire county. All real estate is local and some areas and sectors are very hot. Were you interested in a particular city or price range?

Let's fill in the blanks in the first couple of general statements and assemble the rest of my response so that we can see it as a single comment on market conditions.

Here in Santa Clara County, we are currently in a buyer's market. Inventory is high and sales have been low, so the median price has been decreasing. However, initiated sales increased more than 30% from January to February. The number of sales and the median price typically increase from now through the end of May. But that's over the entire county. All real estate is local and some areas and sectors are very hot. Were you interested in a particular city or price range?

That's my answer to "How's your market?" for March. In less than thirty seconds I've provided an accurate overview of current conditions, a hopeful sign, a little analysis, and a couple of questions designed to advance the conversation, if the other person is interested. That last part is the key. Designing your comments to end with a question will prevent you from rambling on and losing the other person's attention.

Sure beats "Lousy!", "Don't ask!", and "Despite what you read in the papers, this is basically a normal market. Newspapers always print bad news because that's what sells..."

So... how's your market? Are you ready to answer the most common real estate question?

Thanks!

Frank Jewett

Strategy: Practice Makes Better

Frank Jewett (tech4REpros) — Fri, 14 Mar 2008 21:10:14 -0500

Here are four ideas to get your office motivated and moving forward in 2008.

1. Five Questions

Randomly call on agents at office meetings to answer the five questions that every agent needs to be able to answer anytime, anywhere. Have the other agents provide helpful feedback.

2. Book Club

Assign teams to read real estate marketing books and report back at weekly office meetings. We can all learn more by pooling our study time and sharing our findings.

3. Farm Club

Have every agent who isn't swamped with business start a geographic farm of 200-400 homes. At the first meeting, that agent should describe his or her farm. At subsequent meetings, that agent should provide a brief summary of sales, price reductions, and new listings. This is good practice for being a real area expert.

4. CMA Club

Assign an agent to produce and present a CMA on a home within his or her farm to other agents in the club. Have the other agents provide helpful feedback.

In 2008, we need to pull together to work on improving the way we interact with clients and prospects. We have to be ready to answer the basic questions and we need to sharpen our skills, not just technical skills related to contracts, but skills related to the process of marketing, farming, and presenting to prospects.

Thanks!

Frank Jewett