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We've Been Profiled

You,me and ALL other Real Estate Professionals have been profiled by many consumers as people that are overpaid, undertrusted, equity stealing creatures that lurk in the night and should get lined up for a profiling in the morning after being out all night stealing candy from children (or equity from adults.)

Those that get into the business think it's going to be a "quick and easy buck!"

I'm here to tell you that you need to go above and beyond the call of duty if you are to be successful in the business. Leaving yourself available 24/7 for clients to call you with questions,concerns and comments. If you get into the business with such a notion, you will quickly find out that you are wrong or you will pay the price over a year period before you finally figure it out.

Those that employ you want to pay the least amount of commission possible for your services, while expecting the world from you! And if you don't do it, the next person will. Friends...As they would say in the mafia movies, "forget about it!" I sat down with potential clients the other day that were recommended by a long-time friend of theirs that is a Realtor. They wanted to see if they should sell their home or rent it out with the ability to afford another home if rented out. One of the topics that came up was not wanting to pay even a 5% commission to the agents to procure a buyer. Again...A LONG TIME FRIEND! When you start mixing money and friendship with some, things get funky.

When a person reads your profile and blogs on Active Rain, sees your advertising in the local market and so on, they don't want to hear why you are better than the next person. The tune is old and overplayed.

So, what can you do to set yourself apart from the bunch and make yourself stick out?

It's simple, offer clients what they want!

What they want online, in the newspaper and elsewhere is the information that they seek YESTERDAY!

Not today or tomorrow....YESTERDAY!

Seek to find out the information they want and what value you can bring to the table for potential clients. Then, provide it to them in a simple format to digest. Remember the Keep It Simple Stupid formula. This will help you stick out from the bunch and not be profiled with the rest of the profiled costumes, trying to look different but all in the same lineup.

Scott Gormley
Broker/Owner
Oak Valley Mortgage
2006 Chico Assoc. of Realtors Affiliate Chairman
Direct: 530.592.8362
Fax: 530.267.5555
Website: http://www.CALoan.com

Blog: http://www.CARealEstateBlog.com

"You find the perfect home, we'll find the perfect loan!"

Posted by Scott Gormley on 03/12/2007 02:20 PM

Comments (64)

real estate professionals, realtors, real estate agents, mortgage brokers, california real estate, california loans, homebuyers, homeowners, sellers

This post has been included in California Information
Post is included in group: All About Mortgages/Mortgage Networking
Post is included in group: Realtor Affiliates

64 Comments on We've Been Profiled

MAR

2007

Let's hear it Active Rainers :)

Happy Sunday to you!

Scott

Interesting analogy with the "Profiling" Scott.

What I would say is that the people who as you put it are "Those that get into the business think it's going to be a "quick and easy buck!" ...are the ones who are the problem.

Not all of us have the same motivation or are looking for the 'quick fix', and I guess that's what each of us has to ask themselves, and to communicate to their clients: "I'm here to offer you my help with your real estate needs because it's what I really want and love to do, not because it's the career flavor-of-the-month or because I think it will be 'easy'. I'm not just here today, I'm here tomorrow, too."

I agree with that philosophy on the business Beth. I think it's a good position to take :)

Scott

Scott - interesting post. I don't agree at all with 'leaving yourself available 24/7.' And I've not lost a single client or sale because of that. I'm a professional, and I do what needs to be done to get the job done, and done very well, and I'm not available around the clock.

Perhaps the general stereotype may have us all profiled like that, but many consumers as individuals wouldn't profile us that way at all. NAR has a video out right now that has someone questioning random people on the street about their opinions on REALTORS in general, and then asks those people to describe their own REALTOR - very different descriptions when they talk about their own agent versus agents in general.

Beth - I agree with what needs to be communicated to potential clients....staying power. Find out what their needs are, help them with those needs, and set expectations.

Ann

Scott, I'm, happy to say that we have a lot of clients who appreciate who we are, what we do, and what we know. They don't expect us to be available 24/7, and are grateful for our help. Thanks, but I'll leave your profilers for someone else.

I have to chime in on the 24/7 thing too. I do think some people would like us to be, but it simply is not practical for most of as independant contractors, and placing that expectation on ourselves (or allowing it) is a recipie for burnout (been there, done that).

If we want to contintue to love our jobs-and be effective in them, we have to respect our own right to some private time/downtime, and when we expect our clients to understand that, most will respect us in return. Those that don't are probably not people I want to work with.

We do owe them our best efforts. Just not 24/7.

The old school thought in the mortgage business is to keep control of the client information. This way they will ahve to come to you. No. This way they will leave. Our role is not to control the information, but to organize it to aid the client in making sense of the mess they are in.

You are dead right. The value you add is providing the information they seek in a format that is understandable and thus useful. This will build trust and earn you a client.

MAR

2007

I'm with you on giving clients information that is easily understandable, but not on the 24/7 thing. I think that's a big mistake -- we have lives too! And if that's what you think about profiling realtors, I'd hate to see what you think about profiling loan officers :)

Or Priests. :^)

Scott, I just forget about the profilers who are looking for a 24/7 agent with huge expectations. They are not worth it. They'll suck out all of your energy and still not be happy. I happily send them on their way to my competitors.

Fortuanately, there are many very nice and appreciative customers out there. I like to visualize these nice people and have them be attracted to me. In the whole scheme of things, I really don't need to attract that many to make a nice living.

I was one of the young "hot shot" types when I first became a loan officer. I was sure I'd be filthy rich in about a month or two. That was 5 years and a couple of "black eyes" ago. You have to pay your dues by offering excellent service and it seems this fact is not emphasized by some. Could this be one of the reasons we are seen as overpaid by some comsumers?

Scott you have zeroed in on the changes that are happening as we speak. The internet is a great tool and real estate agents have made wide use of it..now we have to go forward with some different thinking then in the past. There are so many sites on the internet that we have to figure out ways to make ME different from THEM.. People want information.. not just numbers but real information on what is happening in the marketplace.

Scott.... excellent post...and very creative. I liked the picture. These are the types of posts that I miss. I just did one on 'Is Real estate a sport?' It's good to be serious, but to interject some humor.

Overall, what you mentioned is so true. We have been labeled and profiled.....we need to educate the consumer. I will disagree with one notion though. You said, they don't want to hear why you are better than the next person. I think they still want to know why I am better than the next person. What makes me different. This is just my opinion. .... unless I am reading incorrectly what the meaning you are trying to get across.

Isn't giving them information being better than the next? I can't tell you how many loan officer's just give the client what they ask for and doesn't supply a debate of some sort... possibly showing what might be better for them. Why should be succumb to what they want as a client. If they truly knew, they wouldn't be coming to us, but doing this on their own, per se.

In regards to giving them information that they understand.... I agree to a point. Sometimes it will be overbearing and confusing. I see loan officer's shy away from the truth and or what is right, because too much detail. Why give them the easy way out with just simplistic information. And as Tonisha mentioned... I think labeling yourself as 24/7 is just asking for trouble in many different ways. You are now playing into the clients hands, aren't you? Just my .02..... good post. ...thought provoking.

jeff belonger

It's definitely true that you have to distinguish yourself from the rest. This industry is very saturated with people solely concerned with making a quick buck. In the long run those of us who are genuine in what we do will continue to succeed through good old fashined service.

"It is incumbent upon brokers and salespeople to completely detail the terms of these loans both in their advertising and when consulting with consumers and discussing different loan options. That includes an explanation of the rates at which interest can accrue and the effects of deferred interest. Licensees who sell these programs based on their benefits (i.e., low payment options), must also explain the risks involved and help their clients determine if such a program is right for them or not. Payment option, interest only and other such ARM (adjustable-rate) loan products may not be right for everyone, especially first-time buyers and those who are trying to afford a home for which they may not otherwise qualify. An agent or broker representing a buyer should be aware of the type of loan being used to finance the purchase. If the buyer has been offered a payment option ARM or similar loan product, the licensee should confirm that all of the terms and possible effects (both positive and negative) have been explained by the mortgage broker or lender. The terms of these loans are laid out in the adjustable rate note, addendums and disclosures. While it is incumbent on all buyers to read and understand these documents, the details can be daunting. There are many variations of these loans on the market today. It is the fiduciary duty of each licensee to completely explain the terms and discuss the relative merits and risks of these loan products well before the point of signing loan documents."

http://www.dre.cahwnet.gov/pdf_docs/rebSpring07.pdf

I wonder what Real Estate Agents think of this note by the Department of RE here in California.

I've had several friends approach me about getting into real estate or mortgage as they think it's so easy. One was my own brother wanting to do mortgages. I was like, Dude, you're bad with math. How are you going to explain numbers to anyone?!

Another is a good friend who's a teacher. She asked me about real estate so she could get away from the whiney parents. I told her real estate was not the place to go to get away from whining people! She changed schools and loves her job again.

Another friend got into mortgages saying he was told he could easily do 12-14 deals a month and wanted to refer me all those people. I was like, if you could just refer me a couple of those people a month, that would be great! He was out in less than 2 months with no closings...

The real estate industry, no matter what part you're part of, is not meant for everyone!!

I agree with Nick. Good old fashioned customer service never goes out of style. I'm not going to lower my commission just because a customer wants me to. I am, however going to justify why I am worth every penny of my commission. If you want me to lower my commission, what service do you not want me to perform for you?

There becomes a delicate balancing act between what information do we provide to attract the clients without giving so much that the Client devalues our service.

This is a business with an enormous amount of competitions! About the only way to succeed is to provide service with value or you'll just be one in the crowd.

The nice thing about this profiling is that it shouldn't be that hard to stand out like a sore thumb.

Scott..First of all the graphic is FAB! It states the point of our article instant.

Possibly here is the clue to finding the public image that accurately portrays us...
especially it pertains to setting boundaries and expectations,
and even more especially when it comes to 24/7 availability. (<<-NOT)

You have inspired me to go out looking for an illustration representative of the value-added services we provide. One that helps the "profilers" better to understand what it is we do.

Look at Norman Rockwell's Family Doctor illustrations, for example. Who could look at the Good Doctor with his stethoscope draped over his noble shoulder, as he bend downs to care for the knee of his young patient while his dog stands guard overseeing th entire operation....

who could look at this and NOT fall in love with this guy?

I'm off on a treasure hunt...thanks for inspiring it.

Burning the candle at both ends satisfies neither the client nor the real estate lender or consultant. To do a good job for our client requires that we take care of ourselves. I am frequently selected by the people I work for because of what I know and how I convey that knowledge. Differentiaton happens in how I disseminate what I know and also how I treat my clients.

Scott,

Good post!! I love the picture of the lineup. I sometimes feel like the Mummy all wrapped up and no place to go. And sometimes I feel like a Pumkin head as well. So as Adam Sandler said on SNL. I'm a crazy man with a pickle for a moustache!! Now Give me some damn Candy!!

Good Day!!

www.duayneweir.com

Hey Scott, Here's a comment I received on one of my posts recently. I thought it would be very fitting here, to bring home your point, about the consumer's perspective of folks in out industry. I get these all the time on my blog. The commenters name is "Truth" It's a beauty!!!!!

NOT EDITED IN ANY WAY

Realtors, why should a buyer pay for overinflated prices by you vampires? YOu overvalue the market, just to make yourselves richer anyways! THe real estate prices have tripled and why should buyers be screwed, just because the "market" says the property is prices just "right"? When I say triple, that is 300,000 dollars, not just 15,000 dollars! Who in their right minds can afford that??? YOu must think every buyer is a moron, especially if you think they will buy ANYTHING, when real estate prices are at the highest prices ever. I won't be a sucker, just because you say its right to buy! You will say anything just to make a sale. Guess what, foreclosures are tripling also, so prices will fall! You vampires can't keep sucking the life out of buyers forever. I hope prices drop like a rock and go back to when they were affordable, back in 2001. That is when all you real estate agents bought, probably anyways, so you need to keep your tidy little investment profits in your greedy little pockets. It does not pay to be too GREEDY!

Yes, 'profiling' does exist. And its justified based on various lousy agents. True, some good agents make lots of money. When someone is buying a $500,000 home (or selling), I would think they'd want an experienced person on their side, however....

What fascinates me is finding that, after moving from California to North Carolina, the types of profiling are quite regional. We get a lot of clients here relocating from the Northeast, Midwest and Florida and each has their own story to tell about how they were treated by their previous Realtor. It's scarry but also reasurring to know that I am on the right side of the profile:)

And, regarding 24/7...I agree with those who are able to turn off their phones and computers.

I think that one must establish oneself as a professional and set reasonable expectations and boundaries. There are just some consumers that are looking for someone to work for the lowest dollar and those are consumers that are not a good fit for me. I go over the needs, wants and motivations of the prospect -- and show them what I can bring to the table. I let them know that my services are a fit for everyone, but if they are looking for a higher level of service, then they have come to the right place. It is important to look at what the consumer's needs are wants are -- ask them questions that may make them think - and realize they really don't have a clue what they are doing or what they need. I give them a questionnaire and questions to ask other agents - to compare me with them -- it is very effective.

There seems to be an area of confusion, we are ALL working 24/7 for our clients. The MLS data is available anytime, we can use automatic email to send specific listings to ourselves and forward them to clients in the morning or right to them if you prefer. We all have voicemail, fax numbers & email... leave a message anytime.... 24/7.... When I am working I will see it.

To make yourself available 24/7 is no way to handle being a Professional. That will, in fact, cause a salesperson to burn out and they will do so within months. I hope new salespeople realize that. You have to cut off your phone, shut down your computer and take one day a week off. Hell, even Lee Iacocca knows that. In our business it's extremely important to have balance. If you spend all your time working where's your balance? When we hold ourselves up as being available 24/7 where's our Professionalism? As far as being profiled goes, it's pretty much old news to me. Being old news to me is probably the result of the consumers that leave those comments on real estate blogs. That's been going on for a long long virtual time :)

TLW...ROAR!

I'm enjoying the comments on this blog so far! Thank you all to those that have left comments :)

As always, it's great to feel the breeze upon my face in the rain! It helps to establish clarity and direction in our daily affairs!

Scott

Bryant Tutas, wow, that is a powerful reply you have there. Some customers have been wronged and are angry at the whole industry. The person writing this will probably be the same person who will want top dollar when they sell their own property. Who wouldn't? Realtors don't price the market. The market does it to itself.

wow, isnt that the truth. Wanting 100% service with a 2% cost.

The photo accompanying the blog is priceless!

ouch Bryant, that post made my blood boil!

Scott,

Thanks for the post. I have found over the last 20+ years in this business, that clients need parameters within which to work. Often times you the professional, must provide for the boundaries. Everyone knows their responsibility and the limits of each.

MAR

2007

Scott great blog. i really enjoyed reading your post. If you would like I would like to invite you to join my new group

KENTUCKY PROFESSIONALS

I am looking for people with your talent, thanks in advance

Ben

Love the picture. How did you manage to get me in there. I look horrible when I first wake up with all my bandages a mess. Look at the bright side, you never need to buy a halloween costume. Just slap on your name badge and have cards in hand....LOL

I completely agree. We do get branded and stereotyped. They are definitely hard to break, but we can one client at a time.

The 24 hours a day 7 days a week is a bit excessive. I think giving out your cell phone number is good enough. Customers always call at reasonable times anyways............

The Stereotypes are just obstacles that are overcome by great and honest service.

Eddy

MAR

2007

Your right Scott. Being unique in your field is required, not just being good. The more we can stand out from others, in a good way, the better known we will become. We just have to remember to keep our service outstanding.

APR

2007

I really enjoyed the message you put together here. It was well spoken and hit some very, very key points!

Thanks for sharing and reinforcing some great points.

Good stuff. I will try to take some kernels of inspiration from it.

Thanks for the great ideas.

APR

2007

I have to say that I don't really agree with you.

The more you try and make yourself stand out the more people thing your a fraud. Work with your investors to get credible. Our CEO just got on the advisory board of Fannie Mae and that has given us a tone of crediblity with the first time home buyer market.

Don't try so hard to get out of the box. Instead become the best the box has to offer.

My humble opinion.

I don't agree with the 24/7 idea at all. If you don't think what you offer has value, neither will prospective customers. And being available 24/7 just says you haven't anything better to do with your time. We've had better luck by actually personally answering our cell phones all the time during business hours, but letting clients (and potential clients) know that we are busy and not able to drop everything, any time, on the spur of the moment.

APR

2007

Even though I did marketing bef. I got into real estate services i still tell people, instead of paying your marketing consultant keep that money to better service your costumer, the word of mouth is 10 times more affective and cheaper than any ad you will ever advertise.

MAY

2007

Scott-This is not a job that is quick and easy and I am glad you pointed that out.

Great post. we indeed have been profiled by the public

Days of the quick and easy buck are numbered!!

MAY

2007

I believe the best way to set yourself apart from the rest is to transform yourself from a transactional sales person to an advisor. If you take a consultative approach not only will you change the minds of the prospects you meet, but you create a greater level of confidence and trust. When you have this everything else become easier. The client will become a raving fan. What better way to get referrals with out even having to ask for them.

MAY

2007

I'm guilty! I have not read Scott's complete blog and comments but I do know this! Scott "advertised" his number on the net and I called it! Scott was just putting his baby to bed and he took the time to speak to me, ad nauseum, regarding the differences between the Michigan and the California market.

What a great guy to take time for little ole me!

Scott, Thank you...Unfortunately(for you), you don't know my office number!!!

Seriously, you have added so much to my career -- thank you! from the bottom of my (greeen) heart!

JUN

2007

Scott,

You are so right! I have found that asking people early on what they are looking for in a mortgage and want they want to accomplish with a refi answers a lot of questions. For instance, if they want to refi and you ask them what they want to accomplish, their answer might be a lower rate. That leads into what rate they have now. So now you know that you want to get lower than what they currently have. With a purchase, they might say they want to pay under $2,000 a month total, now you know what you're working with. Using these two open ended questions helps answer a lot of questions right from the start.

Amanda

JUN

2007

If you are not available 24/7 It will look as if you are more busy. If you are busy,there must be a reason. Keep up the good work.

Scott - you are 100% right about going above, and beyond, however the one thing that I have learned from the real successful people is that you have to set your boundaries with clients. If they know that they can reach you 24/7 they will abuse that privilege, and take you for granite. If you set your boundaries with them they respect you, and your time more.

What does everyone else think?

Scott - You got it. Being open and who you are is the best policy. Giving information it the best thing we can do to give ourselves credibility and set us apart from others.

JUN

2007

Scott-

You certainly hit the nail on the head!

The bad people in our business drag it down for everyone - until you get a great reputation in your area / field, you just have to prove yourself and rise above the stereotypes.

I agree anyone who thinks you will make a quick buck it wrong. It is expensive to be in this business and by time you pay all your expenses, just like any business what you end up with is only a small portion of what you started out with. The best thing is have a business plan and treat it like a business and be the professional you should be. Don't do anything to reinforce the bad press we get.

JUN

2007

Scott - interesting post.

Did they decide to sell or rent? Would you take the listing for less than 5%? Personally speaking...My time is worth more than that! I have heard from folks that say Agents don't do anything for the commission that they earn! What a CROCK! Let them walk in our shoes for a day!

GREAT POST

AUG

2007

Hi Scott,

The consumers may be right. I have seen more greedy brokers kill consumer confidence over the past 5 years than in my 20+ year career. Short sited brokers are looking for one big commission and forgetting the relationship and referral process.

Shame.

SEP

2007

I am not a mortgage broker like you, but the same applies to Notary Signing Agents such as myself! When I was at the NNA convention, it seemed like a recurring theme, 'I'm new to this, but I'm making no money' as if they expected a lot of money right up front! It does take time and LOTS of effort to be considered the best!

SEP

2007

I find it interesting that customers treat "us" the way that they do. Some of it, in my opinion, is the cut-throating that has gone on the past several years with mortgage brokers / loan officers. People would undercut a deal by an eighth, just to get the numbers. Just churning the barrel to get the deal done.

If you add value and expertise, people will view you as an asset and not a necessary annoyance. Although you can't make every customer happy. If you work and try to do your best for them each time. You will succeed more than you fail.

I get asked on every transaction for some of my commission. It happened today on a double ender.

Hey, it isn't October yet.................

It is a shame that the first thing a listing prospect usually asks is, "What is your fee?" It almost seems as though your qualifications are unimportant. They plan to sell what, for most, is their most valuable investment and price is paramount. However, that does give me an opportunity to respond better since I know where they're coming from.

SEP

2007

Great post! I couldn't agree more.

SEP

2007

This is a great reminder to all AR members to effectively use Localism to disiminate local information!

Broker Disclosure to Customers

Here's what I owe the client according to Wisconsin law. If I do this I'll never lose a client and have clients and referrals for life.

The broker owes you, the customer, the following duties:

The duty to provide brokerage services to you fairly and honestly.

The duty to exercise reasonable skill and care in providing brokerage services to you.

The duty to provide you with accurate information about market conditions within a reasonable time if you request it, unless disclosure of the information is prohibited by law.

The duty to disclose to you in writing certain material adverse facts about a property, unless disclosure of the information is prohibited by law.

The duty to protect your confidentiality. Unless the law requires it, the broker will not disclose your confidential information or the confidential information of other parties.

The duty to safeguard trust funds and other property the broker holds.

The duty, when negotiating, to present contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals.

Broker Disclosure to Clients

Because you have entered into an agency agreement with a broker, you are the broker's client. A broker owes additional duties to a client.

The broker will provide, at your request, information and advice on real estate matters that affect your transaction, unless you release the broker from this duty. The broker must provide you with all material facts affecting the transaction, not just adverse facts.

The broker will fulfill the broker's obligations under the agency agreement and fulfill your lawful requests that are within the scope of the agency agreement.

The broker will negotiate for you, unless you release the broker from this duty.

The broker will not place the broker's interests ahead of your interests. The broker will not, unless required by law, give information or advice to other parties who are not the broker's clients, if giving the information or advice is contrary to your interests.

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