Things I Don't Understand

New Direction & Confusion #1

2008-03-22T13:09:00.000-07:00

Some friends encouraged me to change directions with this blog. I have several work related blogs for residential real estate and there is no point in having this one sit here outdated. Although somewhat reluctantly, I'll just spew my thoughts out here from now on.

I start a lot of sentences, when talking to close friends, with "I don't understand..." so I'll post some of those confusions here.

#1

I don't understand how an individual can be both unhappy and void of action. I know people who are not happy in their dating relationship, but stay because it is better than nothing. I know people who absolutely hate their jobs, but stay because of one lame excuse or another. I know many many people who are unhappy with their financial results, yet continue to give the same effort.

Why in the world would someone expect any different result if they simply continue the same level of effort in the same area or field without changing any of the variables. If you work 40 hours each week selling shoes in the mall and you can't make enough money to live, why would you keep showing up and putting in the same hours at the same place? This is mind blowing to me.

Try a new time of day, try different shoes, try a new location, change your marketing, but for what reason on earth would you keep doing the same thing?

I think it is because our culture has given everyone 10 people or things to blame their misfortune on. If you can't sell enough shoes, it's because the cost of rubber has gone up. The mall owner built that new cookie stand in the way of your entrance. The "big" shoe companies released a low priced version of their top seller and you can't compete.

It is no one else's fault, you have to do something different for yourself.

I just don't understand the inactivity of so many dissatisfied people.

Testimonials I can't Post

2007-08-16T14:20:00.000-07:00

Lately our office has been receiving some really great feedback from other REALTORS. The problem is that it has all been verbal and I would love to post it on our website and my blogs. Since we are a flat fee brokerage and most folks in the industry aren't comfortable with our model yet they might not appreciate us publicising their comments. Am I crazy not to go ahead and make it known that even the other real estate professionals love our service?

Check back at www.4DallasHomes.com regularly and we'll post some if we get permission.

"Holy Bathtubs!"

2007-08-09T08:00:00.000-07:00

A few months ago I was showing a property to a great referral client that was sent to me from on of my preferred lenders. We walked into the master bath and found the biggest fiberglass bathtub that I have ever seen. It literally took up 70% of the floor space in the room. As we inspected the awkward space for potential redesign ideas, an agent who had just joined our team, and was shadowing me for the month, walked in and energetically said "holy bathtub." I bought him lunch for having the quote of the week.

As ugly as that bathtub was, our buyer could see the potential in the property and we were able to eventually get better than a 10% discount on the property for him. And it was well priced already.

He learned a valuable lesson that any buyer should take to heart. One man's crummy bathtub is another mans great deal.

He removed the giant tub and has remodeled a few other things to make the home a very nice place. He will certainly do well when he sells.

Renting Sucks

2007-08-07T08:00:00.000-07:00

Do you have dreams? I'm not talking about the ones where you're flying, or where you are in your underwear at your grandparents house with all of you college buddies preparing to fix the time machine in order to go back to the future to fix the ozone layer so that Major League Baseball can play more day games. I'm talking about life goals. Do you?

If so, what are you doing to achieve them. Are you renting a home, or do you own your own home? If you are renting, are you planning and saving to soon own a home? Take a minute or two to close your eyes and picture your life with your dreams achieved. Maybe you are on a boat in the islands somewhere, or maybe you are in a hammock at a cabin in the mountains, maybe you are backpacking through Europe, or maybe you are teaching. Whatever it is, let it really sink in.

Now, what are you doing to get there?

Do you know what your landlord's dreams are?

As a renter, you have to ask yourself a question. And be honest. Who's dreams are you contributing to; yours or your landlords?

Real Estate Agents are Idiots II

2007-08-06T08:00:00.000-07:00

One of my agents just left my office. He was telling me how he just spoke with an agent from another company that won't stop telling him how amazing his team is. We operate as a team where each individual's strengths are maximized and his or her weaknesses are compensated for. (I'll discuss that in a later blog, so stay tuned.) He thinks it is funny that other people don't do business this way. Me too.

As promised, here are a few of the ways consumers are getting great value when working with a real estate professionals.

It has becoming more and more popular for home sellers to advertise their own home and find willing buyers. They then hire a real estate consultant to handle the transactional details such as contracts, amendments, dealing with lenders, appraisers, inspectors, insurance companies, title companies and other related items. Assist 2 Sell for example will provide this service for just $1,995 regardless of the price of the home.

As the Internet has become the primary venue for buyers to search for homes, additional alternatives to the Multiple Listing Services have been created to advertise homes . Some savvy professionals are offering home sellers the benefits of these effective marketing tools and others in order to save sellers the expense of paying two agents' commissions. A listing agent can often adequately advertise a home in a good market without the use of the MLS and the seller gets exactly what they want. The home gets sold and they pay a much lower and more affordable fee since there is no second agent. Assist 2 Sell offers this program for a low flat fee based on the price of the home. As low as $2,995 paid at closing.

Volume is the key to meeting consumer demand in the current and future real estate market. As some companies take a different approach to the traditional model of real estate, consumers (home sellers and home buyers) benefit again. The typical agent in the USA does fewer than 10 deals each year and charges around 6% for each transaction. Offices like Assist 2 Sell are offering a more reasonable fee which benefits sellers even when another agent is involved. When an Assist 2 Sell agent lists a home for sale, the flat fee is set up front, but not paid until closing when the home is sold. When an Assist 2 Sell agent sells the home himself, the seller saves the full commission that would normally be paid to a buyers' agent, plus the difference in the A2S agent's fee and a typical listing commission.

Consumers have many choices when it comes to real estate professionals. When choosing who to work with on the purchase or sale of your next home, make sure you find someone who will consult with you throughout the transaction, who is knowledgeable in your area, and who offers great service at a fair value.

Don't be an idiot like some of those agents.

Real Estate Agents are Idiots

2007-08-03T10:41:00.000-07:00

You might or might not be surprised how many times I've had a new client refer to his or her previous real estate "professional" as an idiot. More than I can count, and I count pretty well. I've heard moron, jerk, loser, liar, scum, swindler and jack... well you get the point. The sad thing is that in most cases, my clients are right.

Most so called professionals in real estate got into the business to make an easy buck. They are either on their second or third career, part time, doing it "on the side," or totally lacking in commitment, professionalism, education and direction. I frequently talk to my agents about the HUGE opportunity that we have with clients.

When an entire segment of consumers are used to being under served and overcharged, it shouldn't be that hard to meet their demands. Why don't more agents provide real value to clients and put client needs before commission needs. It is a far better long term business model. It seems the folks that got in to real estate for the quick money want to make the quick money on each deal individually instead of trying to understand the long term needs of a true client relationship. It is just like the old saying goes, "You can take a man's equity once, and then he'll call your competitor."

Home buyers and home sellers are demanding more fitting service packages and more reasonable fees. Many companies are trying to meet these needs.

Check back in for "Real Estate Agents are Idiots II" to find out which companies are meeting the consumer demand well.