I have a new agent approach me with the ultimate new agent question, "How do I market myslef when I dont have any money?"  I remember being in his shoes and can really empathise with him because most agents who are doing ok are not doing what they used to do...money being tossed after ad after ad after ad...its gotta make money before its going to be used is the new mantra for advertising (not really...its just what the market dictates).

My first response is always talke to 4 new people every day for starters...if your decent and you exchange information on all 4, you will have little time to think about marketing because you are so busy.  Also, money wouldn't be an issue.

My second response is the same as most, BLOG.  Get your name on the internet.  Get a free web site, and write about your abilities and beliefs.

My third response is get a listing and if not one of your own, ask another agent if you can use theirs for a just listed brochure to talk to the neighbors about.  100 knock for a reason will often suprise you...His surpise was 2 new listings and a buyer.

Why do we always make it difficult?  Because we have to be better than we really are in our own eyes?  Ego is very expensive.  When you can do business without the Ego, you are making the right decisions then.

Good Luck!

This is the most simple thing you can do.  As a matter of fact, most agents dont do it!  My favorite questions to ask every new agent is, "What separates you from the other 700 agents in this market place that have more experience than you?  Also, without sounding cheesy, or saying something that every buyer/seller hears and reads from every other agents website, business card or other marketing material form, how would you convey that idea to your client?"....Big question.  What I am trying to do with this question is to point out that all agents promote this "honesty, experience, I work for you, professional, "run of the mill standard everyday, THOUGHTLESS response that agents give is meaningless.

Now one would think that a resume (and I have a really impressive one) with a brag book is strong.  I agree, but only AFTER you are infront of this person and in a more formal setting to converse or if your brag book is online, then sent and hopefully read.  BUT what about when you are in that first conversation?  What about when you see that couple picking up the magazine for homes as you are walking by them in the grocery store?  How about when your other client even referrs someone to you and they ask you why they should use you over the phone?...it happens alot.  And the standard response is NOT EVEN WORTH GIVING in most cases...they've heard it before and expect you to sound the same.

On the other hand, there are a few intelligent "GREEN PEAS" out there that I have learned from.  One gentleman that doesn't even look as if he's graduated high school answers with a sincere, "Mr and Mrs Jones, without saying what everyone else would say, I can tell you that I specifically talk with and exchange information with 4 new people everyday about real estate.  This, among the ads, my character, and the incredible support that I have from my entire office, is more than you get from 98% of the other agents in this valley...Im physically looking for your buyer (or seller) and not waiting on them to find me!"

And I thought I was good.  Wow.  Disarming and incredibly simple, but overwhelmingly effictive.  Also, he's right.  We promote the 4 new exchanges per day venue and those that even try it are amazed at how much business (not "busyness") they get.  Its staggering.  4 NEW contacts with exchanged information, that does not include follow-ups of course, or the 4 people you met yesterday.  AND there has to be and exchange of information for it to count.

How much business do you have?  are you waiting for it do come to you or are you going after it.  Remember, keep it simple and ejoy this business.

I've been in marketing for real estate in one form or another for just over 12 years now and I am amazed at how Real Estate marketing remains the same.  Usually the better ads have a "Cuteness" or "Amuzement" factor attached which is good...a good start.  Buts lets take a simple non complex look at Advertising what it is supposed to do:

Why do you advertise?  To get business and recongnition for the business I do. 

What do you advertise?  I advertise my product and the benefits of the product and why those recieving my advertising should use me to purchase the product from me.

Does it work?  Sometimes.  Always.  Never.  Randomly.  Lets look at what we should be doing.

1.  IF the market is not shopping for your product, why do you do "Brand Style" marketing?  It is long term but monetarily ineffective...Look at your newspaper costs to return (ROI) as well as your real estate homes guides.  Gotten a bit more expensive with less return huh? 

2.  If the market is not responding to you, you are not talking to the right market!  Im not saying post cards work either.  Targeting with a specific message to a specific type of client is the basis of pin point marketing.  News papers are canvas style.  If you understand pin point, do it.  If not, lets look at how to make it work.

All advertising requires these 4 things: A.  Obvious product, B.  Obvious benefit, C.  URGENCY.  D. the ability to feel comfortable contacting you for assistance.

URGENCY?  Yes, the difference between Active and reactive marketing.  Active is where you are advertising.  Reactive is where the advertising to creating a response...more to the pointe, a specific response.

Case in point:  An office is printing their own magazine for homes.  They consult a marketing person and the marketing person says center page list all the area's foreclosures with how many have been sold to show that the homes are being sold...because that is what is making up the market place.  You either have foreclosure listings or you have buyers or you have both and if not then nothing, but it is the marketplace.  However, the office neglects to mention on the BLAND cover ANYTHING about the foreclosures.  The response to the magazine is great!  The people that pick it up, call.  It does very well...However, there are still LOTS of magzines that have not been picked up.  Other office does the same thing, however on the COVER it says, "Limited complete foreclosure list inside.  All offers must be made through this office no later than XX/XX/XXXX".  That office went through 5 times the magazines and recieved 3 times the calls per same bulk of picked up magazines.  AND the calls were made up of people that were asking about making offers on foreclosures!  URGENCY with an understanding of your market.

Another example:  Agent A is printing up 1000 postcards and they are funny!  Right picture to capture the attention of anyone who sees it with an offer for a free CMA and a Home warranty for anyone who buys from her.  she gets 3 appointments and 2 listings.  Good deal!  Agent B is printing 100 cards and is targetting Out of State non-owner occupieds.  The post card is placed in envelope with hand written address and return.  The card simply states that there are new developments in investment properties that make their homes suseptable to investor losses.  New Tax information and situational annalysis had been done on their property and to ensure that all is well, they must call."  100 post cards, 33 calls, 5 listings and 3 buyer agreements for 1031 exchanges and 1 buyer that wants to take advantage of his equity to purchase 2 more homes.  Now what was the difference?  Active or Reactive.  URGENCY!

WHAT is your URGENCY?

Pace Yourself

My mom gave me great advice when things were really rough (and this last year could've been for me and was for alot of people I trust and love in this industry), "No matter what, 'THEY' can't eat you and so long as your more positive than they are, they will be confounded enough to do business with you when they CAN."

didnt mean much for a long time, and then here I have been using it with my staff...funny.  Even funnier when I am seeing what she meant by negative talkers being confounded by our enthusiasm enough that as soon as they COULD do business with us, they DID!  Yes, Im talking about they people that were quoting dataquick.com information along with CNNmoney and Forbes to us everyday for the last bunch of months while we were talking about how great it is that we are in our "protected market while others are suffering".  We have been able to survive the Real Estate Downturn...and we only had to be possitive.

OH, I know...better then you I suspect...how hard it is to be possitive when some one is hauling your car off or your first short sale listing in the office was YOUR house.  We have had that in our office too.  But it amazes me how much more business we did than some of the BIG offices...and our agents...did more than some of the TOP agents.  To what is that attributed to?

Take a Deep Breath

Someone is going to be making and is making alot of money as the market flattens and turns.  Im going to be recieving my share.  My agents are definately going to be getting their slice of the pie...are they going to get your slice too?  They may.  What are you going to do...quit?  Most agents that know what they are doing are hoping you will.  I will even venture to say that Real Estate is, by nature, a business where success is strictly made by attrition.  Meaning, the longer you are in it and active, they more money and opportunity you will have as time goes by.  On the other hand, I've been running into agents that have been arround for a while, but do not know what they are doing...especially in this Market...which means, you may know more than you think you do...think about it.

Introduction to Bulk Purchases and Sales

This product is truely only going to be a real market for the next year and hopefully just a little longer.  I am not licensed to sell investments and this is not a solicitation to sell securities or investments.  Any suggestions taken from here must be reviewed by legal councel or your broker.  Now, did that scare you?  LOL...this is serious stuff...lets get started.

I have to immediately admit that I am not one of the "Big Boys" on a national level, I work regionally and I am specific to my State so I can provide the best information and servicing to my buyers and sellers as possible.  Also, it's important for you to know that what you are about to read comes from walking the walk (experience specifically).  The only way one is going to learn how to work in this atmosphere is to work it and lose his/her butt several times before figuring it out or getting blown out.  Economics and understanding what is truly going on in the market also makes a tremendous difference.  The one true saving grace for me is that I understand that money does not disappear, it just changes form.  When one person is losing, someone else is gaining and there really is no other way around it.  We are the ones that help lube the wheels of major investors and knowing what to ask and who to talk to is very important in this industry of Real Estate.  I hope that over the next several weeks we will cover this well with you.  There are a couple of quick notes that will help you understand what's real and what's not real about this type of transaction to begin with.  Before all, if you embelish in any way...stop here and leave well enough alone. 

First, you cannot be a control freak and be successful, it just will not work.  Second, there is a level of trust that will end up reverting back to the first point when dealing with your buyer of seller as well as with communicating with any Daisy Chains.  Thirdly, you cannot ignore Daisy Chains...you will have them, however when representing your buyer or seller, they don't want to deal that way, so you have to create the atmosphere to conduct the transaction and do it Tabletop...all money on the table.  Finally, Buyer and Seller will communicate with each other with and WITHOUT you.  This determines how much additional business you will get from one or the other, as there is always MORE to be had.

One other point.  Money does funny things to people, expect it. 

I have enjoyed the short curve of reactions to Bulk buying and selling recently and the "Swamping" of the "Market" of agents and wana-be investors.  This has created a dynamic that is quite fun if not totally annoying...almost like going back to elementary school.  This thing used to be easy...simple conversation along the lines of, "I have X property at xx% LTV"...and I have a buyer that has a Letter of Intent that is looking for X property at XX% LTV that is proofed up and ready to close in 30 days with 5-7 days review".  You introduce buyer to seller and close the deal.  Now, with "BUBBA the Realtor" involved, you have a bunch of people saying they have XX property at XX% LTV and they don't.  Also, you have "Sellers" out there that do not have property they claim to have and Investors are fed up with shopping for the elusive and have created the schoolyard atmosphere.  When it comes down to nuts and bolts, believe me when I say you are much better off acknowledging that you are new to the industry but have X contact with X moneys etc.  At the end of the day, the only value you have is your word and people being able to trust that what you say is what the situation is specifically...no shady or iffy BS.  Your word is good or not, if its good, you will get business over and over again and again.  Otherwise, don't read any further...if you are ready further, here some examples of the schoolyard activity I mentioned earlier:

These phrases are VERY indicative of a Bulk Transaction or School yard Bully...you decide.

1. I'll show you mine if you show me yours. VS/ You prove you have the list and I'll prove I have the money.
2. My mommy is better than yours.  I can prove it!  VS/ My buyer is able to perform better than the others...I can prove it!
3. I can hit a home run if you pick me.  VS/ My LTVs are more current and better rated.
4. I'm better than you are.  VS/ I'm better than you are.  Oooops...LOL

All of which is complete BS.  Treat this like a 8000 piece puzzle...If you have a space and there is a piece that fits, introduce the piece to the spot and let it do its job of completing the picture.  Dont try to force what you dont have.

I can say I've watched 120MM in transactions this year alone disappear because the seller did not like the buyer's attitude or visa versa...Next.

Let's look at the Terms used to communicate with our buyer and seller:

• LTV- Loan to Value.  What the home is CURRENTLY worth in the ACTIVE marketplace. (Current value and active are important...not 2005 values against sold units have been in the last 2 years...be careful here.)
• "Proof up"-  This is in referencing that a buyer has to prove that he/she/it is capable of getting, has gotten, is getting X dollars and can close in X days.  Verification is done in several ways, from Bankers and Lawyers conversing, Bank statements, Teller verification, all the way to a letter from the banker or Lawyer stating it is so...funny huh.
• LOI- is the Letter of Intent.  I will purchase 400MM in new construction housing at 81% LTV with 0% occupancy in the areas of XXXXX with a 30 day close in cash with 100MM deposit upon acceptance of Tape, remainder at close.
• Tape-  This is the list of homes, businesses, properties, etc that are for sale by the seller with descriptions, addresses, costs, LTVs, and other information depending upon the involvement of the developer.
• Direct Only- This is where the buyer or seller will only talk to BUYER or SELLER, not you...you may be lucky to introduce one to the other, but that is it.
• EGO- This is what you need to leave at the door and what you have to deal with for the most part from one or the other buyer or seller.
• Daisy Chain- Where there is more than one broker representing buyer or seller in any transaction which requires split of commissions from one side or the other or both sides.

Next Blog will be What buyers can expect and how to move to make the best situation for yourself and your investments when working with sellers (sellers agents, lawyers, bankers, etc.)  Email me with your questions so I can be sure to cover your needs.

"When the going gets tough, the tough get going", "The ladder is always broken on the way to the top, its only the ones who know how to hold it together who get to the top", "perseverance, perseverance, perseverance!".  These are the chanting calls of most office sales managers and Brokers right now.

The truth is, all this market needs are agents that actually work.  No, not just show up (which is still a chore), but actually work and take action.  I hear most of the other agents complaining about wanting to "do something different", but what I find funny is they are mostly looking for an easy way to make money...I mean, what is truely easier than going out and meeting people (new people) everyday and talking about real estate?  Is there a magic THING that going to make getting business like it was?  NOOOOoooooo.  The magic is getting of the BUM and getting to it.  This is what your broker is saying (if your talking to a caring working broker).

It surprises me how spoiled alot of agents are...almost as spoiled as the home owners alot of them complain about.  But the truth is, the owners have a right to complain...they feel their home is worth more.  They have put work into making it better.  They have worried and lost sleep over their home...they do wake up and go to bed in their home.  Unless you are putting as much work, concern, and intensity into your business, what right do you have to complain?  None.

This Blog is seeming more like a rant than anything for a reason...its become very apparent that alot of agents are just not getting it...they are waiting for business and then complaining about the lack off, or they are getting the one client by default and dont put in the work to get more clients so they can take care of business.  Its hurry up and wait when it should be take action, be consistent, be assertive, and be doing business not "busyness".

Yeah, Yeah, Yeah...I've heard it before...what are you trying to prove.  Me?  Right now?  Nothing.  All Im looking for is a couple of people that I can stand toe to toe with that will push me as much as I push them to do what I am saying I am going to do...and make fun of me if I dont.

BUT WHY???  Simple.  I know how I am.  Do you?  I know that if there are a couple of us out there that are calling each other saying, "Hey! What are you going to do today to generate new business and meet X number of new potential buyers/sellers?"...And I say "BLAHBLAHBLAHBLAHBLAHBLAH"...I know that I am more likely to THINK about what I am going to do and then actually follow through with it knowing that someone else is going to be doing the same thing...Why?  Because I am competitive.  As much as you see me smiling at you when we are talking and not doing business...well, I'm deep down waiting to get to it so I can show you that I own YOU!

After reading that last line, do you want to play with me?  Do you feel challenged?  Does it "tick" you off?  If it does, then you can understand how this sort of thing can really be a serious boost to your bottom line...imagine, you actually meeting and talking to x NEW people per day.  You actually stop at 3-5 Expireds and FSBOs per week.  You knock on 50 doors this week.  You hand out 200 Just listed/sold cards/fliers for that new listing yesterday.  How much business WOULD you actually get from that?

My guess is that you will get enough to make you quit talking about a negative market?

So...do you want to play?  Comment and lets get the ball rolling.  Or are you scared you'll get your lunch eaten because you would rather be broke and full of excuses?

Im talking to you.

Yeah, Yeah, Yeah...I've heard it before...what are you trying to prove.  Me?  Right now?  Nothing.  All Im looking for is a couple of people that I can stand toe to toe with that will push me as much as I push them to do what I am saying I am going to do...and make fun of me if I dont.

BUT WHY???  Simple.  I know how I am.  Do you?  I know that if there are a couple of us out there that are calling each other saying, "Hey! What are you going to do today to generate new business and meet X number of new potential buyers/sellers?"...And I say "BLAHBLAHBLAHBLAHBLAHBLAH"...I know that I am more likely to THINK about what I am going to do and then actually follow through with it knowing that someone else is going to be doing the same thing...Why?  Because I am competitive.  As much as you see me smiling at you when we are talking and not doing business...well, I'm deep down waiting to get to it so I can show you that I own YOU!

After reading that last line, do you want to play with me?  Do you feel challenged?  Does it "tick" you off?  If it does, then you can understand how this sort of thing can really be a serious boost to your bottom line...imagine, you actually meeting and talking to x NEW people per day.  You actually stop at 3-5 Expireds and FSBOs per week.  You knock on 50 doors this week.  You hand out 200 Just listed/sold cards/fliers for that new listing yesterday.  How much business WOULD you actually get from that?

My guess is that you will get enough to make you quit talking about a negative market?

So...do you want to play?  Comment and lets get the ball rolling.  Or are you scared you'll get your lunch eaten because you would rather be broke and full of excuses?

Im talking to you.

Office dynamics.  Those 2 words alone make any HR department break sweat.  When it comes to a real estate office, setting the standards early and holding your ground is VERY difficult...at least until you have established a strong core group.  Without spending much time on myself as to why you should read this with an open mind and with a good bit of understanding that I know what I am talking about, you need to know a couple of things:  1.  I've owned businesses where I was the ONLY manager/owner/say so person with 100 commissioned agents.  I've also had whole corporate divisions where I was responsible for nearly 800 individuals that were commission driven.  I've made mistakes that blew out whole offices.  I've made communicate errors that cost me a couple of years of work and effort to just be flushed down the toilet.  I have done stupid management things...very well...and a lot.

That being said, I have also had some extremely great successes!  So what can you get from me to make your office work well?  Let's look at some simple rules that make hard decisions easy:

1. Cut any and all staff that are rumor oriented and not on board TOTALLY with your Office Theme.  If you hold on to staff because you want volume now, you are never going to have the serious volume you would otherwise have.
2. You are responsible for your office.  If your office is out of "flux" or it is unstable, look in the mirror.  When you do this ask yourself these questions:
1. "What have I allowed to make my office/team/staff unstable"
2. "Who is in more control of my situation than I am"
3. "How can I resolve the situation so that everyone wins"
4. "Have you communicated your situation to who you are looking to let go of with enough time and effort to allow that person to meet your expectations realistically?"  Did they step up? Or did they step out?
3. It really is not easier to start over again so running away from issues instead of confronting them immediately is bad business.
4. If you don't want anyone to know about something, don't do it.
5. Know what your line is (and communicate it) when it comes to how much you will put up with from those that are producing.  In other words, you know that producers give a hard time because they know they can get away with it.  Be sure that they know what your line is and if they cross it, be consistent and non-withholding to commit to changing the situation.
6. When all else fails, help them find somewhere else to take their business.
7. When even that fails, help a competitor recruit your unnecessary or unwanted staff members.  It could accomplish more that one goal.
8. Do the right thing.  Character is more important that next months or even next years production.  (I love the arguments I get on this one...)
9. We are only as good as our production is a LIE.  The real statement is that we are only as good as our Name.  A good name makes good profit; a great name makes great profit.
10. Consistency pays the bills, performance above consistency pays for the toys.  Consistently raise the level of consistency consistently.

Im sure some of you are saying "I don't have an office", good agents will eventually be offered the opportunity to lead...good leaders are not born, but have in some way(s) been prepared for leadership.  The choice is yours.

Agents!  Get nervous...we're about to talk to our customers about COMMISSIONS and little about pricing.  Hey client!  What is there about commissions that you want to know...most likely how you can pay less.  Right?

So here we are, agents want more commissions and the people that are selling their houses want to pay less...this tug of war is really funny when it comes down to nuts and bolts because money is involved.  Money, the root of all evil, the stuff that does not make people happy, it does not grow on trees, it makes the world go round, it pays my bills...money.  Let's look at these points of view and even though there are some really strong statistics, I am not going to use them.  Why (the real estate agents of the world ask)?  Because even though numbers don't lie, this is a somewhat EMOTIONALLY charged issue when it comes up...not always, but regardless, when emotions are in play, facts and figures are usually ignored.  Agents, sellers...think of it like this: "There is a Win-Win-Win" Lets look over the ASSUMED points of view (note: this is not the way everyone thinks, but they are great representatives on our emotions initially.):

Seller Point of View:

Hi, I am the seller.  I want to and NEED to sell my house for $XXX's.  I know my house is worth it because I personally stroked that check for the pouring of concrete last month for my back porch extension, upgraded the water heater, put in new insulation, yada, yada, yada...  AND I have to have $XX's down for the down payment on my new home that I want and to pay off my car and get that new washer and dryer set.  (With Determination) I cannot sell my home for less!

Agent Point of View:

I need to sell this house quickly!  If I can get this couple to price their house just below market value we can get a bunch of people to look at it and get some offers quickly!  Especially if we can get the house commission set above average!  The owners can get it sold and I can get it done and "WoooHoooo!  I just hope the sellers are willing to do this.

Reality:

Seller, Agents, I have bad news for both of you.  We don't determine how much a house is going to sell for.  Sellers, you hire agents, Realtors, FSBO companies etc to work for you.  You determine what your home is going to be offered at, BUT there are a few ugly truths that you need to KNOW.  Don't take my word for it, if you don't grasp these concepts, It could be said that you are in an incredible market...a.k.a.  The Land of Oz.

Truth Number 1:  Greed is an incredible motivator.  Example; and this is for real.  The way most agents work is they look for homes that match what their client is looking for.  Bubba and Bubbett are looking for a 3 bed 2 bath with a kitchen...well, there are a couple of hundred in your MLS...then the agent looks for specifics like 2 car garage, hardwood floors etc.  Now the list is narrowed down to 40-60 homes.  What next?  Commission percentages.  Now there are 40 homes (or even 3 homes that match or semi match) all of them are standard 3% except for one which is at 3.5% and it is not exactly what the client has said they want and the other 2-3 are exactly what they like...which home is this agent going to show to his clients with the MOST excitement?

Truth number 2:  No matter what your market, getting people in the house to look is the NUMBER 1 way to move the house for the most money!  If your house is priced above the comps, you will not be looked at unless there is something that is OVERTLY different and the agents are excited about it (like higher commissions you think?).  If not the commission, then the pricing of the home needs to at worst, compete.

Truth number 3:  Curb appeal comparisons are no joke.  I've shown great houses at great prices with great commissions that were DEAD before the car came to a stop on the curb.  Then again, I and many other agents have been very surprised at showing homes that we had our own opinions on, but the curb appeal set the stage that obviously blinded the clients from the interior...and they bought.

There is a balance and it takes a minute to just slow down and present your thoughts to your agent and agent, the same goes for you...listen to your seller, there are realities that we may be blind to, but to ignore them when you client is trying to show you is rough.  Sellers, your agent does this everyday (you hope) and their job is to sell that home...listen to them and communicate.  There is always a win-win-win.  Know your market.