"Mind over Matter", "Be a thermostat not a thermometer", "Act don't react". These are all a few of my favorite quotes. And they revolve around the mind's ability to make our body do things that other folk's bodies cant', won't, shouldn't, couldn't...
Sir Roger Bannister is immortalized in history as the man who broke the 4 minute mile barrier. It was such an amazing accomplishment at the time. Within 3 years of breaking the record, 16 other atheletes did it as well. What Sir Bannister did was free people's mind. No longer could people say, "Sub 4 min. IMPOSSIBLE".
In the real estate business I see the exact same thing. Our industry, economy, and society constantly create obstacles to the way business has been done. Conversely, the industry, economy and society constantly create opportunities. So what are we going to focus on? What can't be done or what CAN be done?
Friday, April 23, 2010
Wednesday, January 27, 2010
Competition is good but Competence is better
There are some debates out there about raising the bar for real estate professionals. I run a successful real estate brokerage with very professional agents who are good at what they do. Furthermore, my business model relies on my ability to grow and attract talent to our company. So the more agents who can get their license, the better off I will be. Right? WRONG!!! But the more agents consumers can choose from, the better off they will be. Right? WRONG!!!
Between 2002-2006 our industry went through a major growth spurt. Real estate became a very attractive profession for some very unprofessional individuals. Some will argue that the easier it is to obtain a real estate license, the more competition their will be in the marketplace. Therefore, the consumer will get the best price for service and everything else will be fine.
Here is what really happen: Due to massive competition some buyers and sellers were able to save on real estate commissions upfront. However, many of these buyers and sellers are feeling the pain of a massive long term financial mistake. This is what we call penny wise and pound foolish.
Yes competition is a great thing. However, many consumers trust that the local licensing boards have set the bar high enough that any real estate licensee they choose, will be a good one. The current market situation is showing everyone that not all real estate licensee are experienced and equipped to represent their clients properly.
So lets correct the assumptions: The more COMPETENT agents consumers can choose from, the better off they will be. Right? Absolutely
Between 2002-2006 our industry went through a major growth spurt. Real estate became a very attractive profession for some very unprofessional individuals. Some will argue that the easier it is to obtain a real estate license, the more competition their will be in the marketplace. Therefore, the consumer will get the best price for service and everything else will be fine.
Here is what really happen: Due to massive competition some buyers and sellers were able to save on real estate commissions upfront. However, many of these buyers and sellers are feeling the pain of a massive long term financial mistake. This is what we call penny wise and pound foolish.
Yes competition is a great thing. However, many consumers trust that the local licensing boards have set the bar high enough that any real estate licensee they choose, will be a good one. The current market situation is showing everyone that not all real estate licensee are experienced and equipped to represent their clients properly.
So lets correct the assumptions: The more COMPETENT agents consumers can choose from, the better off they will be. Right? Absolutely
Friday, September 11, 2009
Gettysburg Address
A good friend forwarded me the Gettysburg address just after 9/11. It was written during a seminal period in US history when the existence of our country was in peril. Again on 9/11 our existence was called into question. Abraham Lincoln summed up why it was important to persevere in the face of tragedy.
"Four score and seven years ago our fathers brought forth on this continent, a new nation, conceived in Liberty, and dedicated to the proposition that all men are created equal.
Now we are engaged in a great civil war, testing whether that nation, or any nation so conceived and so dedicated, can long endure. We are met on a great battle-field of that war. We have come to dedicate a portion of that field, as a final resting place for those who here gave their lives that that nation might live. It is altogether fitting and proper that we should do this.
But, in a larger sense, we can not dedicate -- we can not consecrate -- we can not hallow -- this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note, nor long remember what we say here, but it can never forget what they did here. It is for us the living, rather, to be dedicated here to the unfinished work which they who fought here have thus far so nobly advanced. It is rather for us to be here dedicated to the great task remaining before us -- that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion -- that we here highly resolve that these dead shall not have died in vain -- that this nation, under God, shall have a new birth of freedom -- and that government of the people, by the people, for the people, shall not perish from the earth."
Abraham Lincoln
"Four score and seven years ago our fathers brought forth on this continent, a new nation, conceived in Liberty, and dedicated to the proposition that all men are created equal.
Now we are engaged in a great civil war, testing whether that nation, or any nation so conceived and so dedicated, can long endure. We are met on a great battle-field of that war. We have come to dedicate a portion of that field, as a final resting place for those who here gave their lives that that nation might live. It is altogether fitting and proper that we should do this.
But, in a larger sense, we can not dedicate -- we can not consecrate -- we can not hallow -- this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note, nor long remember what we say here, but it can never forget what they did here. It is for us the living, rather, to be dedicated here to the unfinished work which they who fought here have thus far so nobly advanced. It is rather for us to be here dedicated to the great task remaining before us -- that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion -- that we here highly resolve that these dead shall not have died in vain -- that this nation, under God, shall have a new birth of freedom -- and that government of the people, by the people, for the people, shall not perish from the earth."
Abraham Lincoln
Thursday, April 30, 2009
Don't Call it a Seminar...Its a Give Away
Every year I somehow catch the "world famous" Bride Dash at Filene's. For those of you who may not know, this is when Filene's department store in Boston discounts their bride's dresses to the ridiculous for one day. Brides and their entourage storm the racks grabbing whatever they can carry. It is a spectacle. However, the pure relief of a bride who just saved $4000 on a dress comes right through the TV.
With that in mind, lets switch gears. The real estate world is going through a similar type of situation. Rates are ridiculously low, there is an $8000 credit for 1st time homebuyers (or those who haven't owned a home in the last 3 years), and the inventory of homes is deeply discounted. But like all sales, this too will come to an end.
If you ever considered purchasing real estate, now might be the right time. We have held 2 home buyer seminars at our office. We had about 35 attendees the first event and 25 folks last night. Come out to RE/MAX Realty Centre on June 3 from 7-9 if you would like to find out if now is the right time.
With that in mind, lets switch gears. The real estate world is going through a similar type of situation. Rates are ridiculously low, there is an $8000 credit for 1st time homebuyers (or those who haven't owned a home in the last 3 years), and the inventory of homes is deeply discounted. But like all sales, this too will come to an end.
If you ever considered purchasing real estate, now might be the right time. We have held 2 home buyer seminars at our office. We had about 35 attendees the first event and 25 folks last night. Come out to RE/MAX Realty Centre on June 3 from 7-9 if you would like to find out if now is the right time.
Monday, October 27, 2008
Waiting for the Bottom and Other Stupid Ideas...A True Story
I hear over and over again from agents, clients and customers that they are "waiting for the bottom" of the real estate market before they decide on one of their largest long term financial decisions, the purchase of a home. Here is a true story of "waiting for the bottom"...
I have been working with clients for many years now trying to find the "right" property. They know exactly what they want and that is a very good thing (Clients Who Know What They Want and Why I Love Them is a blog for another day...I digress). This spring we started honing in on a couple properties that met every criteria we have been searching for. They had been saving money at a feverish pace and had built a large nest egg close to $200k. However, a little birdy told them that the real estate market had not hit bottom yet and it was not a good time to buy. "Wait till the market hits rock bottom and you can get a real deal". They heard this mantra over and over again at church, work, in print, on line, and on TV. All of these "experts" must be right, they thought to themselves.
So they put their $200k of hard earned money into a "sure thing"...the stock market. The "experts" at church, work, in print, on line, and on TV said nothing negative about the stock market because their field of expertise only extended to real estate. It was settled, "Hold off on purchasing a home that we would live in for 10-15 years to "wait for the bottom" and put all of our hard earned cash in the stock market to gain value."
I got a call last night. The $200k is now $110k. The first words out of his mouth was, "if I had put that money in a house, I would have AT LEAST had SOMETHING to show for it." They have outgrown their 3 bedroom house, they no longer care about "the bottom", but they can no longer qualify for their next home.
They thought of their long term asset (real estate) like a short term asset. Waiting for the bottom is a great strategy when you are trying to buy something to sell tomorrow. With a long term investment, purchasing at the bottom isn't as critical as picking the time to sell at the top.
So all the experts who cautioned my clients on "waiting for the bottom" but did not give such counseling when it came to the stock market...Shame on you.
I hear over and over again from agents, clients and customers that they are "waiting for the bottom" of the real estate market before they decide on one of their largest long term financial decisions, the purchase of a home. Here is a true story of "waiting for the bottom"...
I have been working with clients for many years now trying to find the "right" property. They know exactly what they want and that is a very good thing (Clients Who Know What They Want and Why I Love Them is a blog for another day...I digress). This spring we started honing in on a couple properties that met every criteria we have been searching for. They had been saving money at a feverish pace and had built a large nest egg close to $200k. However, a little birdy told them that the real estate market had not hit bottom yet and it was not a good time to buy. "Wait till the market hits rock bottom and you can get a real deal". They heard this mantra over and over again at church, work, in print, on line, and on TV. All of these "experts" must be right, they thought to themselves.
So they put their $200k of hard earned money into a "sure thing"...the stock market. The "experts" at church, work, in print, on line, and on TV said nothing negative about the stock market because their field of expertise only extended to real estate. It was settled, "Hold off on purchasing a home that we would live in for 10-15 years to "wait for the bottom" and put all of our hard earned cash in the stock market to gain value."
I got a call last night. The $200k is now $110k. The first words out of his mouth was, "if I had put that money in a house, I would have AT LEAST had SOMETHING to show for it." They have outgrown their 3 bedroom house, they no longer care about "the bottom", but they can no longer qualify for their next home.
They thought of their long term asset (real estate) like a short term asset. Waiting for the bottom is a great strategy when you are trying to buy something to sell tomorrow. With a long term investment, purchasing at the bottom isn't as critical as picking the time to sell at the top.
So all the experts who cautioned my clients on "waiting for the bottom" but did not give such counseling when it came to the stock market...Shame on you.
Monday, September 15, 2008
A Real Estate Analogy...
So I'm watching the mountain bike finals for the Olympics a couple weekends ago. The TV commentator says, "When dealing with a technical course, one where passing is almost impossible because of the narrowness of the trail, you must ride with the fast riders. If you get caught with a slower pack of riders you will never be able to catch up. The fast riders keep pushing each other while the slower groups keep getting in each others way."
It is along the same lines as, "you play better golf with better golfers.", but most agents don't realize that the opposite is also true, "you play worse golf with bad golfers". I talk to a lot of agents everyday about the companies they work for and the agents around them. Most successful agents succeed in spite of their companies and the agents around them. However, are they reaching their true potential? In a market place where the margin of error is so very slim, you need all the support you can get. Who are the pace setters in your business?
It is along the same lines as, "you play better golf with better golfers.", but most agents don't realize that the opposite is also true, "you play worse golf with bad golfers". I talk to a lot of agents everyday about the companies they work for and the agents around them. Most successful agents succeed in spite of their companies and the agents around them. However, are they reaching their true potential? In a market place where the margin of error is so very slim, you need all the support you can get. Who are the pace setters in your business?
Tuesday, August 19, 2008
Lessons We Can Learn from Michael Phelps
There are 3 (and only 3) keys to success and they all start with the letter A. Aptitude, amplitude, and (most important) attitude. Sports creates so many great analogies because the results can be so clear and concise.
Aptitude- Michael Phelps had the god given ability to swim fast...No question about that. However, there are many other good swimmers who have better physical traits, but they are not great. Why?
Amplitude-No matter how much god given talent Phelps has, he had to jump in the pool every day and train. Showing up seems like the easiest part of the success, but consistency is vital to greatness. But even showing up doesn't guarantee greatness. Why?
Attitude-Above all this is the most significant key to success. Phelps had to dream that he would be able to set the record. Without that goal, getting out of bed at 5am to swim in the same boring pool, every morning, would have been near impossible. Consider this, Phelps had the worlds largest bull's eye on him. Phelps could have caved in mentally with all the pressure the media and competition placed on his shoulders, but he didn't. Why? Because he dreamed that he would win.
Aptitude- Michael Phelps had the god given ability to swim fast...No question about that. However, there are many other good swimmers who have better physical traits, but they are not great. Why?
Amplitude-No matter how much god given talent Phelps has, he had to jump in the pool every day and train. Showing up seems like the easiest part of the success, but consistency is vital to greatness. But even showing up doesn't guarantee greatness. Why?
Attitude-Above all this is the most significant key to success. Phelps had to dream that he would be able to set the record. Without that goal, getting out of bed at 5am to swim in the same boring pool, every morning, would have been near impossible. Consider this, Phelps had the worlds largest bull's eye on him. Phelps could have caved in mentally with all the pressure the media and competition placed on his shoulders, but he didn't. Why? Because he dreamed that he would win.
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