Whether you are looking to list your home, buy a home, or even start a career with a real estate company...you have choices. Recently I heard a debate about the merits of a small company over a large one. Here is how it went (the names have been changed to protect the innocent):
Agent Napoleon: We have hands on training and management. That means our clients get PROFESSIONAL service.
Agent Rasputin: But we have more tools and resources. That means our clients get MORE services.
They both were right...So why not get both? If you search hard enough you can find real estate companies that provide the high touch service of a small company PLUS the resources of a large international one. Here are a few factors to identify:
1. Find out how much high level training is done on site. Not just prelicensing and contract review, but hard core business development and skill sharpening. The higher level training is what separates the good from great. Keep in mind, even Tiger Woods has a coach.
2. Where are the broker/owners? Are they available? Active? Ask to speak with them. It can be easy for a leader to make decisions when they are isolated from the results. Many onsite owner companies are held to a higher standard of accountability because they are more accessible.
3. Last but not least, what is the power of their brand. Some of the franchise companies offer international exposure as well as aggressive local marketing. Many clients are coming from outside of the local area and may not be familiar with the local brands.
Monday, July 14, 2008
Tuesday, June 17, 2008
Do You Spend Money Advertising Your Listing? Attraction Vs Satisfaction
Why are you doing it? Sounds like an obvious question, but if you don't understand your true purpose you are likely to spend money foolishly. Spending money to cause a property to sell has a very small chance of success. As a rule, you should never spend money to cause a property to sell! You can't compel a market response. There are however value reasons to advertise a property. The two most effective are attraction and satisfaction. Are you advertising to attract potential buyers and new listings to your business? Are you advertising to satisfy your seller's expectations? If the purpose is lead generation, it should be pre-planned, tracked and the response measured over time. Know your return on investment on every 'attraction' dollar you spend. Satisfying your seller's expectations should also produce leads for your business, if it doesn't it is money poorly spent. Your advertising budget should be set in advance.When a seller calls to ask "what are you doing to get my property sold?" running another ad is not a proper response because it will not compel a market response. Always stick to your marketing plan, it worked for all your other clients right? A seller's motivation may change and their patience with the process will often become short, explore the changes in motivation and take the appropriate professional response to create a successful result for your client and your business. Take charge of the situation! Take charge of your career.
Monday, April 21, 2008
I have solved the National Foreclosure Issue-Pres. Bush please call me.
Currently we have many folks who are facing short sale/foreclosure who want to keep their homes but can no longer afford the new payments, so they come on the market as short sales/foreclosures. With each one of these cases coming onto the market, the overall situation only gets worse for the person selling after them and in the big picture, the national economy which will have to "clean up" the mess. So what do we do...
First, do the homeowners want to stay in their homes? If yes, then we need to find out what can they afford monthly payment wise under an FHA program. That will be the new loan amount. (Let me stop and explain a little more) They owe $400k, we refinance them to a new FHA loan amount which they can afford, $300k. (The new loan amount would have to be a minimum of 70% of the previous balance.)
So now what do we do with the $100k short fall? Instead of having a foreclosure to sell or a large short, the bank will be able to write the "bad debt" off their books and hold a $100k note. When the people go to sell the home a later date they will still owe that $100k back to the bank. Time will help the process. Currently, it is a race to foreclosure.
So the banks get to clear non-performing loans out of their portfolio, the real estate market will be much more stable with 1/3 to 1/2 less homes on the market that are foreclosures or priced for foreclosures, and the tax payers do not have to pick up a huge tab on a loan bailout.
First, do the homeowners want to stay in their homes? If yes, then we need to find out what can they afford monthly payment wise under an FHA program. That will be the new loan amount. (Let me stop and explain a little more) They owe $400k, we refinance them to a new FHA loan amount which they can afford, $300k. (The new loan amount would have to be a minimum of 70% of the previous balance.)
So now what do we do with the $100k short fall? Instead of having a foreclosure to sell or a large short, the bank will be able to write the "bad debt" off their books and hold a $100k note. When the people go to sell the home a later date they will still owe that $100k back to the bank. Time will help the process. Currently, it is a race to foreclosure.
So the banks get to clear non-performing loans out of their portfolio, the real estate market will be much more stable with 1/3 to 1/2 less homes on the market that are foreclosures or priced for foreclosures, and the tax payers do not have to pick up a huge tab on a loan bailout.
Friday, March 21, 2008
Don't Read This Blog If You are Buying a Home Right Now!!
Why?
Because you are one of the many people who are taking advantage of one of the best real estate markets in recent times and you don't need any of the advice I have.
WHAT!!
That's right. Interest rates are at historic lows, home prices have dropped, and the number of homes to chose from is at a historic high. Econ 101, when is a good time to buy? When everyone is selling.
TRUE.
This is not a market for everyone. However if you are a first time buyer, move up buyer or an investor, take a look at the marketplace objectively.
First time homebuyers have "nothing to lose". Rents are increasing, while home values have come down considerably. Many loan programs have become restrictive, however the once in a lifetime interest rates are an awesome incentive.
Move UP buyers are those who are selling in a lower price range and buying into a higher price range. First you must understand that your current home value has probably dropped about 10% in the last 12 months. However, the home you want to purchase has probably gone through the same depreciation. For example, your $400k home dropped $40k in value. Your dream home at $900k dropped $90k. So the move up buyer just added $50k in equity.
Investors...Remember, Its a Wonderful Life. Mr. Potter bought while everyone was panicking. Sure we don't strive to be Potter-esque, but he was a smart enough to understand when there were great market opportunities.
Because you are one of the many people who are taking advantage of one of the best real estate markets in recent times and you don't need any of the advice I have.
WHAT!!
That's right. Interest rates are at historic lows, home prices have dropped, and the number of homes to chose from is at a historic high. Econ 101, when is a good time to buy? When everyone is selling.
TRUE.
This is not a market for everyone. However if you are a first time buyer, move up buyer or an investor, take a look at the marketplace objectively.
First time homebuyers have "nothing to lose". Rents are increasing, while home values have come down considerably. Many loan programs have become restrictive, however the once in a lifetime interest rates are an awesome incentive.
Move UP buyers are those who are selling in a lower price range and buying into a higher price range. First you must understand that your current home value has probably dropped about 10% in the last 12 months. However, the home you want to purchase has probably gone through the same depreciation. For example, your $400k home dropped $40k in value. Your dream home at $900k dropped $90k. So the move up buyer just added $50k in equity.
Investors...Remember, Its a Wonderful Life. Mr. Potter bought while everyone was panicking. Sure we don't strive to be Potter-esque, but he was a smart enough to understand when there were great market opportunities.
Subscribe to:
Posts (Atom)