Jan O'Brien - Real Estate Coach

Take Action - Support NAR's Four-Point Housing Stimulus Plan

NAR recently issued this Call To Action - I urge you to Take Action Now to support this plan.  We need ALL members to support NAR's efforts to have the NAR Four-Point Housing Stimulus Plan included in any future stimulus bill.

As REALTORS®, we know that at its core, the current economic crisis is the result of problems in our nation's housing and mortgage markets.  With Congress considering a return to Washington this month for another economic stimulus effort, NAR has put forth a Four-Point Plan that must be included in any stimulus effort in order to boost the economy and calm jittery real estate markets.

Housing has always lifted our economy out of past economic downturns. Immediate action is imperative to foster a housing recovery that historically leads any overall economic recovery.

Stabilizing real estate markets must be the core of any additional economic stimulus bill. As REALTORS, we must all come together and make our voice of experience heard on Capitol Hill. Please contact Congress today.

Contact Congress today and ask them to include  NAR's Four-Points in the next stimulus package. 
 
The Four Point Plan

The most recent economic stimulus bill, the Emergency Economic Stabilization Act, was a good first step towards stabilizing our nation’s economy.  Unfortunately, a number of the Act’s provisions have not proven to be as useful at stabilizing the nation’s housing markets as was first thought.

Congress may consider second economic stimulus bill this month.  If they do, there are a number of changes that could help to provide more stability to the nation’s real estate markets which most agree is a necessary step towards recovery.

NAR has urged Congress to include the following provisions in any future legislation:

• Make the $7500 tax credit available to all purchasers and eliminate the repayment requirement.  The credit’s limited availability and required repayment terms have severely limited the credit’s appeal to potential homebuyers.  As a result, the credit has not been widely used or proven effective at stimulating sales.

• Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent.  New rules for 2009 would significantly reduce the FHA, Fannie Mae and Freddie Mac loan limit from their 2008 levels. Now is not the time to limit the availability of affordable mortgages.

• Get the Emergency Treasury bank relief program back on track by targeting more funds to mortgage relief efforts and increasing efforts to mitigate foreclosures.  Don't just give the banks unrestricted cash. Make the program work to improve mortgage and housing markets as it was originally intended.

• Permanently bar banks and banking conglomerates from engaging in real estate brokerage and management.  The banks have proven they have enough to do to simply properly manage their current lines of business.  Do we really want them to manage on the home buying process?  Imagine what could have been the situation now if they already had the added ability to engage in real estate sales.

Making Money with Effective Open Houses

Open Houses...You either love 'em or you hate 'em.  And depending on your attitude as a real estate agent - they either work for you or they don't. 

In my experience, open houses are the single, easiest, most cost effective way to make money in the real estate business.

Let's consider the benefits:

• Marketing exposure for your sellers and your active, saleable listing inventory.  There have been offers written and accepted on the actuall property an agent is holding open!
• Opportunity to meet and work with buyers and sellers and make additional sales.
• The real investment is your time!  Open houses can be the most cost effective prospecting activity if done properly.
• Worst case scenario - if no one shows up - you can catch up on admin tasks, follow-up calls, mailers and other "busy" work at the open house.  Preparation and planning is required! 

Attitude is Everything!
o Know  that the open house is going to be productive
o Plan, Prepare and Know the Property and the Market
o Ask, Believe, Receive!

Selecting the property
o Location (choose a listing that has great traffic; cross streets)
o Condition, price, terms (How does the property show? Is it priced to sell?)
o Your own listings – leverage success through

• Invest in Personalized Yard and Open House Signs
• Hold open houses on listings in your farm areas

o Research office/company listings and coordinate with the listing agent to hold them open
o Vacant vs. Occupied properties
o Open houses work any day of the week!!

Business & Life Lessons from a Marathon Runner

Steve Matthews is a Las Vegas Real Estate Agent, entrepreneur, business-owner, dedicated family man and a marathoner!  Last year, at the age of 54, he ran and finished his first marathon in Chicago after only 3 1/2 months of training.  He has since completed several marathons and running events. 

Steve has an excellent blog entitled A Runners Rant where he writes about his running experience and how it relates to life and business. 

His first post:  Everything I Need to Know in Life I Learned from Running outlines 45 lessons that he expands on in his individual blog posts.  Steve's writing style is very descriptive and real.  I love how he weaves his experiences with running into excellent life tips and useful business ideas and principles.   

Steve also has a business that provides virtual tours and a very unique service called VirtualAgent.  Check out this cutting-edge technology for your website or blog at : VirtualTourStore.com.

Top 12 Real Estate Marketing & Industry Blogs

This is my current list of  the best blogs covering the real estate industry, blogging, marketing, technology and news... in no particular order - they are all great!

1. Transparent Real Estate  - Pat Kitano blogs on real estate industry and technology issues.
2. The Real Estate Tomato - Jim Cronin's blog is packed with blogging tips, advice and strategies.  RE Tomato also builds custom real estate blogs.
3. The Future of Real Estate Marketing - Joel Burslem and contributors blog on real estate web 2.0 and marketing.
4. Bloodhound Blog - Greg Swann leads the way with this popular, collaborative, cutting-edge blog on the real estate industry and more.
5. Inman News - Brad Inman and the Inman Team provide real estate industry news, an informative blog, and network of real estate bloggers and professionals.
6. Real Blogging - Another collaborative blog and real estate community with posts on key real estate topics.
7. RSS Pieces - Real estate blog training, tips and another solution for a real estate blog platform.
8. My Tech Opinion - Technology for Real Estate - A blog on all things techie as they relate to the real estate business.
9. RISMedia - Articles on real estate news, industry, business development, technology and issues.
10. The Future of Real Estate Technology - A blog focused on technology and real estate
11. Real Estate Marketing Blog - A blog about real estate online marketing and blogging.
12. Carnival of Real Estate - from the Zillow Blog Team - a real estate carnival is "a weekly summary of the best blogging posts on a given subject that appeared in someone’s blog during the previous week. A different blog hosts the carnival each week."

Share your favorites.  Post a comment to continue the conversation and the list...

The Eleven Things Everyone Must Know About Earnest Money Deposits - Real Estate Agent Tips

Welcome Back to Guest Contributor:
Steven Kitnick

Earnest money is the deposit paid by a prospective Buyer as evidence of their "good-faith" intentions to complete the real estate transaction.  The Buyer is promising to be diligent in their efforts to fulfill the terms of the Residential Purchase Agreement ("RPA").  Additionally, if the Buyer and Seller agree, the earnest money deposit ("EMD") may also serve as a source of payment, and act as the Seller's sole legal recourse, as "liquidated damages," should the Buyer default, that is, fail to perform in accordance with the terms of the "RPA".

Earnest money deposits are not required for the creation of a valid and binding "RPA".  However, it is rare that a "RPA" does not include an "EMD".  The reason for this is that an "EMD" demonstrates to the Seller that the Buyer is serious about his/her offer. Although the amount of the earnest money deposit varies, it is usually enough to motivate the Buyer to take whatever steps that are necessary to perform as outlined in the "RPA" in the time-frame specified.

The general rule with respect to "EMD" is that the Buyer is entitled to a return of the "EMD" if the transaction does not close through no fault of the Buyer. Conversely, the Seller is entitled to the "EMD" if the Buyer breaches the "RPA".  However, when a real estate transaction fails, both the Buyer and Seller may claim a right to the "EMD". 

When a dispute arises here are The Eleven Things Everyone Must Know About Earnest Money Deposits (Nevada Law)

1.  The "EMD" may be deposited with an escrow/title company handling the transaction.  They are a neutral third party that follows the Buyer and Seller joint written instructions.

2.  The real estate brokers and their agents have no authority over the escrow/title company.  Thus, they have no authority to direct the payment of the "EMD" to either the Buyer or Seller.

3.  If the transaction is cancelled, the right to the "EMD" will depend on whether there was a default under the terms of the contract, and if so, who is the party in default.

4.  The "RPA" contains a default provision that everyone should be familiar with because it will dictate what happens in the event the Buyer or Seller defaults.

5.  Neither the escrow/title company nor the brokers or agents have the authority to decide who defaulted under the terms of the contract. Only a court of law can make that decision.

Las Vegas Real Estate Market Update - March 2008

In December I wrote a post entitled Understanding the Las Vegas Real Estate Market.  I listed a variety of recommended resources to educate yourself and ultimately your clients about current market conditions and trends.

Here are a couple more resources to bring you up to date on the Las Vegas Real Estate Market as of March 2008:

• Equity Title recently produced a graph that defines past peaks and valleys in terms of pendings and contingents. The graph suggests the market is entering a time of great potential for those who are prepared. Pending and Contingent graph
• Forrest Barbee’s Blog - Our Corporate Broker, Forrest Barbee, maintains a blog on Education, Training and Career Development. He posts a very informative monthly market update - Check out Las Vegas Market Update March 2008.
• Here's the very informative Market Condition Report for March 2008 from Equity Title:

  Download MCR_MAR_2008.pdf

The Power of Previewing and Knowing the Inventory - Real Estate Career Success Tip

It's a basic yet often overlooked ingredient for success in the real estate business...previewing and knowing the inventory.  In this fast-paced, immediate gratification world, many real estate agents have simply gotten away from previewing available listings and really knowing what's happening in the market.

Excuses abound, "There's not enough time in the day"; "It's not the best use of my time"; "Isn't that what MLXchange, pictures and Virtual Tours are for?"  The bottom line is you can't afford to not know the inventory.  It is after all the product you are selling - take the time to be the expert in your niche market, farm area, price range, and/or geographical area of town you choose to work.

Major benefits to previewing and knowing what's available right now:

• You convey confidence, knowledge and expertise with prospective clients when you can talk about properties you have recently shown or previewed.
• You will be able to convert more ad and sign calls when you can discuss the details of a property the prospect called about and elaborate on other properties that may fit their needs better.
• It is the quickest way to learn a new target market or become an expert in an area you intend to farm.

Make Previewing an Ongoing Success Tactic- Try These Ideas:

• When holding an open house, preview all the available listings in the neighborhood
• Schedule at least an hour a week to preview listings, new homes, high-rise projects of interest
• Prior to a listing appointment, take the time to preview the competition
• Attend broker Open Houses and support office caravans or car tours

Interested in a Las Vegas Real Estate Career?  Considering a change to a leading brokerage?  Visit LVRealEstateCareer.com for more information.

THE Key to Real Estate Success...Always be Prospecting!

A majority of your time in this business will be spent prospecting...that is if your goal is to succeed.  ABP (Always be Prospecting) It is the most basic, critical element of success. It is imperative you develop and follow a plan. Build your plan around annual, monthly, weekly and daily prospecting activities. Demand of yourself a weekly minimum number of prospecting contacts. If you are new to the real estate business, 90-95% of your time should be spent asking for business. Do not let pending contracts or any other activity take you out of the business of prospecting every day. Prioritize your prospects, track your results and maintain a simple follow up plan. No other task in the real estate business can be performed until you have a person who is ready, willing, and able to buy or sell.

Regardless of what prospecting method you use, the goal is the same!  The main objective is to establish rapport, put the client at ease, minimize their perception of the threat you represent and always direct your dialogue towards their needs. Your goal is to turn a prospective lead into an appointment with a motivated buyer or seller.

When qualifying a prospect you must ask a lot of questions to help you determine their needs and whether pursuing them is the best use of your time.  Remember:  Questions Attract...Statements Repel. Listen carefully to the answers, take notes and show concern and a willingness to help solve any problems or needs that you uncover.  The answers you receive are not only the client’s needs, but also tell you what methods to use to meet those needs.  These answers will also help you personalize your proposal to secure the client.

You may get objections. Do not be afraid. Objections are a good thing. Objections are simply another form of a question or concern or an indication that you have not totally gained their total rapport. It can simply mean a prospect has not made a decision. Always remember, for every no you are one step closer to a yes. When you have determined that the client is motivated to make a move in the foreseeable future, close.

Real Estate Affirmations for a Successful Career

Here are some real esate affirmations to consider adopting or adapting as desired and applicable for you individually:

1. Success Keys: I must think successful and act successful to be successful!

2. Professional Value: The real estate commissions I receive are not just a reward for having a real estate license; they are payment for providing valuable professional services.

3. Real Work: I do not avoid difficult tasks and uncomfortable situations. I get paid well for doing the things that unsuccessful people won’t do or can’t do.

4. Enthusiasm and Confidence: I do not think, talk or act negatively about the real estate business. I know that my atti­tude affects my level of success and I always show enthusiasm and confidence to my customers, clients and fellow associates. I believe in my personal value and the value of my office and company.

5. Consistent Prospecting: I do not wait for prospects to come to me. I actively seek‑out qualified prospects.

6. Selling Situation: I do not allow myself to become bogged‑down in “busy work.” I assure my success by consistently getting into actual selling situations. I maximize my probability for success by working proven real estate systems.

7. Reasonable Probability: I do not depend on luck and gamble on unrealistic possibilities. I only work on properties and with prospects where there is a reasonable probability of success.

8. Worthy Clients: I don’t waste my time, energy, or money on unqualified clients. The clients and custom­ers I work with are worthy of my valuable professional services.

9. Working Hours: I do not work the same hours as a salaried employee. I know that I must be available when prospects are available. I do not allow other people to interfere with my work schedule. I carefully guard my working hours.

10. Concern, Responsibility and Control: I do not accept responsibility for situations which are beyond my control. I show concern for all situations, but I only accept responsibility for controllable circumstances.

11. Honesty and Benefits: I do not disguise reality by telling people only what they hope to hear. I tell my custom­ers and clients the truth and sell them on the benefits.

12. Persuasion: I do not argue with customers or clients or run from problems. I successfully persuade people with patience and benefits.

13. Loose Ends: I do not rush through transactions leaving unsolved problems that I hope will disappear. I answer questions and concerns assuring future satisfaction.

14. Personal Responsibility: My level of success is not dependent upon uncontrollable circumstances. I fully ac­knowledge that ...     If it is to be, it’s up to me.

15. Specialization: I do not try to work with every prospect or on every property. I specialize on properties and with prospects where I have professional competency value and reasonable ability for success. I also have the personal desire to work with them in a professional man­ner.

16. I Believe: I have the right to be successful. I have the ability to be successful. I am personally responsible for my level of success. I create my success through my thoughts and my actions!

3 Steps to Creating a Real Estate Business Plan

It's that time again - time to manifest your success for a Great Year!  It all starts by writing your goals or desired outcomes, creating a written business plan and updating/revising your business budget then measuring and tracking your results.

All of the business plan and goal setting forms I will discuss can be downloaded at www.CareerRealty.com.  You will also find a more detailed Real Estate Business Plan and Budgets in Excel format - on the Business Plan downloads page at CareerRealty.com.

Step 1 - Set Your Goals (Outcomes). For a review of how to set powerful goals - here are three blog posts from earlier in 2007:

• How to Write Powerful Goals, Part 1
• How to Write Powerful Goals, Part 2
• 5 Principles of Success

Now, download this document and start writing your outcomes/goals:

• Download Keys-to-an-Achievable-Outcome.pdf

Step 2 - Create Your Business Plan.  Documents to download for writing your Business Plan:

• Download a_review_of_your_business.pdf  Start by analyzing your previous year's business - this form will help you gather and calculate key factors for your specific business.  Everything from sources of business to average days on market and listing to sale ratios.  Before you launch into your 2008 plan, it's critical to review what worked last year and to know your basic numbers.

• Download basic_real_estate_business_plan.pdf  This is a 2-page easy-to-use, basic real estate business plan.  Just follow the step-by step formula to turn your desired income goal into the number of listings, sales, contacts and appointments required to obtain it.

• Download allocating_time_to_build_your_business.pdf  An eye-opener exercise about the value of your time.

• Download DailyWorkPlan.pdf  A simple daily planner page that also helps you track productive activity.

• Download Attitude-Affirmations-TimeMgmt.pdf  A good review of what you already know!

Step 3 - Measure and Track Your Results.   You can’t improve what you don’t measure.   An excellent tracking system will allow you to make necessary course corrections and adjustments as well as gage your overall success.

• Download income_statement.pdf

• Some excellent tools to track and measure your performance and results - Performance Dashboard, Commission Tracking and Budgets -  can be downloaded at this Business Plan downloads page

Why Goal Setting is Important - Which group do you choose...

"In a fabled Harvard University study only three percent of Harvard students asked set and wrote goals on a regular basis. The stunning revelation of this study is that 30 years later, 50 percent of the total net worth of the group was held by just three percent of the group. You guessed it! They were the three percent that had a habit of setting and writing goals as students, then continued to write goals and review them regularly."

Source: How to Set and Attain Goals for Success