I've got a secret

“Within the first six months, these [doctors] wrote six million prescriptions for more than fifty million of these happy blue pills, ” noted Alex Wipperfurth in Brand Hijack. Of  course, the happy blue pill that he was referring to was Viagra, which came out in 1998.

Shouldn’t this country be happier?

I had lunch with an agent from another office the other day. We had a nice time talking, and the sandwiches at the Longhorn were good. She said something that I thought was interesting, something I had thought about often myself. She asked if we all shouldn’t help each other out (she was referring to real estate agents) regardless of office affiliation.

Suppose your office has a recipe for success- a “secret sauce,” I guess. Should you share that with others? Will that make the entire industry stronger, or make your own (and your office’s) position weaker?

Suppose your office had a recipe for the Viagra that would counteract a flat market.

This is what I think. I think that we all need to help one another- those of us that are left. I think that my friend Maya, by teaching social media to the members of her Delaware board, will not be affecting her market share. I think when @RealtyMan presented about Facebook at REBarCamp Boston that he wasn’t giving anyone the skill sets to take him down.

So, like everyone else in RE.net, I will share my general knowledge. Specific application of that knowledge set has been promised to Towne & Country- that is the promise that I have made to the company in regards to the Central MA area. But do I think you need a blog? YES! Where can you get one? You can set up a free one on WordPress.com or blogger, or you can get one of your very own using the WordPress platform (godaddy has an easy set-up).

Should you buy into every social media or new media thing that comes along? Gerry and I are kind of spread out everywhere but that is because we have to for Towne & Country. In fact, Gerry does a lot of beta testing for real estate platforms, helping to evaluate them for the developers. As an agent, though, I think you want get involved in a few things that you can really dig deeply into and extend your personality. And I am cheap as all get out- if it is going to cost me something, I don’t do it. The cost to me is time: sweat-equity, if you prefer.

Bottom line: I want you all to succeed. I want the exceptional agents to stay in the business- you may end up sitting across the table from me as a cobroke, or in the same position with one of  the Towne & Country team, or actually being a member of our team someday. Who knows?

And the agent I spoke with the other day is dead on- we all have to have each others’ backs. That makes the industry better for the consumer, and customer service is what it is all about.

Want to have lunch and bat ideas around? I promise not to mention Viagra. diane@realtyman.com

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for choosing me as one of 7 winners of the Carnival of Real Estate, edition #172. I feel really honored! Here’s the link so you can check out the others, and the honorable mentions: http://www.7dsassociates.com/7ds-blog/2010/1/25/extra-extra-read-all-about-it-the-carnival-of-real-estate-ed.html

Again, thank you!

carnival ride

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Is it 4:44?

“Make a wish!! It’s 4:44!!”

A couple of times a day, Jenny notices the magic numbers lining up, and reminds me that if there is any time to petition the universe for something it is NOW. It doesn’t give you a lot of time to come up with something, maybe 20 or 30 seconds tops. Chances are what you wish for is already top of mind.

Which brings me to this post, in a sort of convoluted way. There has been conversation recently about a “Raise the Bar” grassroots initiative for the real estate industry, tagged #rtb. We opened up the discussion on our show TQ Radio yesterday- you can listen to the archives here.

The sparks that heated the discussion are two-fold. First, consumer opinion of real estate sales agents have consistently placed agents as members of the top 10 least respected professions, right there with car salesmen. Second, anecdotally there is a quantity of agent-to-agent information that would appear to back up at least some of what consumers feel. Even in the chat room of our show, sharing about the “agent that had to be carried through the transaction” was commonplace. And this show was not closed to the real estate profession- anyone could listen and join in.

So everyone has the same opinion of the real estate industry, including many of its members. I don’t believe if change is going to come it will be legislated at a national level, since the states have autonomy over this sector.

Agent to agent is one thing. Here’s the thing- I have known some agents that needed coaxing and prodding, yet their clients LOVED them, and referred them constantly to their friends. These agents were just plain nice, and developed a following that way. They probably would not have gotten the best price in negotiating, and I don’t care what support staff you paired them with, they would have forgotten something during a transaction. But they did well, and in some cases very well.

Everyone has heard a million times that real estate is a relation business. It would be easier to assess and “fix” were this not true, but it is. I heard this over and over again at Inman. So think about this.

Maybe it is not the agent who makes grievous mistakes in the transaction who is the one that the consumer is calling out. These agents will likely be taken care of over time, or the transaction will be moved along by the agent co-broking. Maybe the consumer is sick of this kind of behavior: the other day on twitter, I saw a comment,”Yes, I said I am selling my house. But why did all of these agents contact me here? What makes you think I need your help?”

I think this kind of behavior- which is taught over and over at brokerages, and may very well BE the best way to make money- takes the sheen of professionalism from us. It cheapens our true value to the consumer. The question is this: CAN we exist without this type of prospecting and make any type of real money? If every agent shifts to social media/pull advertising, will this space get cluttered to the point where people can’t string together the words “buy” and “house” for fear of showing up in 20 agents’ Tweetdeck search columns?

I think we are dealing with two specific and very different image problems here. And, 11:11!, I wish there was an easy solution.

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Sightseeing in NYC at Inman Connect

This was started 3 days ago:

I love New York. Every time I have visited it has been for exchange of ideas, which is honestly what I live for.

The first time I came to the city, it was for REBarCamp NYC and Inman Connect last January. I came down really not knowing what to expect- “Bar Camp? What IS that?”- and went away with a different perception of what changes were going to be coming in the real estate industry, but not only that. There was a strong validation factor of what I was already doing.

The next time I visited was when I went to a Lucky Strike Social Media Club meeting, and frankly if I could go to more I would. The people are brilliant, and the discussion about video was just awesome.

And then I am back now. Every time I go to a session without paper and pen, I find myself scrambling for scraps of paper to write down the name of a new app or jot down a new twist on an old idea.

And today I am home…

trying to organize my thoughts and plan out exactly HOW I am going to implement the things I have learned. And, you know, it really isn’t that I heard anything truly earth-shattering. It is more that I have heard over and over again that what Gerry and I are doing in social media for Towne & Country – and the new ideas that we want to implement- WORK. I think we have brought home more than enough excitement to last the year.

The beauty of these things is you see people putting systems in place that appear to be overwhelming- HOW will I have time to do all of that work? But the beauty of it is that once the systems are in place and running, everything is- well, run by that system. It can be done.

The face of Real Estate is changing.

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The Next Big Thing for Real Estate- Retirement?

Heading to NYC- being around all of that intelligence- always triggers a shift to big-picture thinking. At the last Connect that I went to, the question bandied about was, “What will the next big thing in Real Estate be?’ The problem with that question is that the next big thing is going to leap in and sideswipe us, probably sneaking in as simply as the online MLS, and 20 years we wake up to an entirely different industry. No one realized all of the implications, or without a doubt there would have been a lot more dragging of feet.

My guess is that the Next Big Thing is already here, and is either waiting for someone to apply it differently (think twitter) or we just don’t realize the effect it will have (think business blogging).

What struck me today, thinking larger, is Real Estate retirement plans. The best in the industry speak about selling their “Books of Business,” and I wonder how often that happens and how effective it even is. We, as an industry, sell ourselves not on our professionalism, but on personal relationships. I NEVER have seen an agent pointing out their average listed days on market as opposed to local industry averages, or initial list price or sales price compared to the same industry standard. Why not?

I DO hear about sales agents being invited to past clients’ weddings, and sending baby gifts. And this is really nice, this blurring of the personal and professional. But this means that you can’t sell this Book of Business (even if there was someone to buy it) because it is, in reality, a book of friendships. It only works when you yourself are actively involved in maintaining the relationships, and transitioning an entire group is near impossible.

I looked at the retirement plan that is being promoted by one national real estate franchise. It might be somewhat workable if you devoted a large amount of time bringing in agents that are much younger than you are, instead of selling. But really. How many agents has the average sales agent brought on board to his or her company? For the average agent- or the above average one, for that matter- is it honest to suggest that this is any kind of retirement plan?

So, what is the average retirement plan for a real estate sales agent? Not retiring? Alternate income stream, and if so, what? The average age of a real estate agent is 51, according to the Wall Street Journal- and this was written in 2008. What is that- 15 years until retirement?

And there’s this from the same article:

The Globe points out that Gen X and Gen Y buyers don’t want the hand-holding of the typical agent/home-buyer relationship. Many of these consumers prefer to do their own house hunting and research online, and some are skipping buyer agents all together to complete the entire home search and home purchase on their own.

I think that because of informational transitions, there has to be a change in the way that real estate agents conduct business. In other words: it will have to be treated more as a business. I had asked a question online the other day, and Debbie Kirkland mentioned (and I am paraphrasing) that she sees brokerages becoming training grounds for new agents only, and that experienced sales agents will get their broker’s license and work independently. I think this is a trend that we will continue to see, with the small broker being less of a General practitioner and more of a Specialist, and being made up of not only the broker, but also a team of support and specialized sales people. It would actually be easier to sell a practice like this than to try to sell a nebulous Book of Relationships.

Agents- what about you? What is your retirement plan?

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Posted via web from heyamaretto’s posterous

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Realtor.org stats

Interesting information. Not just applicable to buyers’ agents, but to agents as a whole, but it makes you wonder. The conclusion was this: 66% would use the same agent again and refer them to a friend who was moving.

2/3 is a large number, particularly if they will refer, because it opens up an agent’s business hugely.

Here is something interesting that I was thinking of, though. Yesterday, I had wanted to email a friend of mine who was working at a different brokerage. I Googled her name in combination with her brokerage: found NOTHING. I looked on Facebook and twitter, although I didn’t expect to find her there and I was right. I finally found her on LinkedIn without a profile, so to speak- although her email address was there.

So I will be able to get in touch with her, and I will. The question is this: would I have spent that much effort, as a consumer, to reach this agent? Even if I really liked the job that she did if I had not found her right off the bat I would have assumed that she was no longer in business and not bothered looking.

It is important to run your name through Google, Yahoo, and Bing searches. For the fun of it, I checked a misspelling of my name, because the last name difficult. I really feel like changing it to Diane RealEstate or something, but I am active enough in the social space so that even with a misspelling, Google autocorrected and found me in ActiveRain and on the community that I cofounded- the TwitterQueens:

Diane "Geurcio"

I know as long as they have some sort of idea what my name is- or my social media nickname HeyAmaretto- people can find me. In fact, if you search “Diane Amaretto,” which some people call me, the first result on Google is this blog’s address, with my name and the correct spelling right there.

Diane Amaretto

So this is kind of funny- but what does it mean to you? Whether you want to be known in the social media world or in the three-dimensional world around you, you have to make a plan and be there. And track where your leads come from so if you notice a drop-off, you can address the issue.

The point is: if the 2/3 or 3/4 of the clients that you have done business with can’t find you, it makes no difference how much they love you. They won’t use you again, and they can’t refer you. Let your past clients help you build your business.

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a house unoccupied...

“Here is an article we thought you would be interested in.

BOA Implements Equator (REOTrans) Platform, as Short Sales Gain Ground

10/22/2009 By: Carrie Bay, reporter for DS News

California-based Equator (formerly known as REOTrans) says it has launched the industry’s first-ever short sale module for a large national lender.

Although Equator declined to name the lender, the San Francisco Chronicle has reported that Bank of America is the company in question. A representative from BofA recently told the paper that they were using the Equator platform to manage the short sale process.  ”This is the first time that short sales have been handled through an electronic platform,” said Equator CEO Chris Saitta. “With our new system, everyone works together in real time, dramatically improving communication and approval timelines for our client, its borrowers, vendors, and real estate agents.”

Short sales, in which a lender and borrower reach an agreement to dispose of a property threatened by foreclosure at a price that is “short” of the amount owed on the mortgage, have become more popular among lenders lately as a viable method for dealing with distressed properties. According to Equator, the number of successful short sales has increased spectacularly across the country in the wake of the foreclosure crisis.

Kevin Kieffer, a Realtor with Keller Williams Realty in Danville, California, told the Chronicle, “A year ago I wouldn’t touch a short sale. It would be random prices banks wouldn’t agree to, you would be tied up six months hoping to get a property sold. But now we’re seeing banks up front negotiating prices and giving us criteria. They’re getting creative to make things move.”

Equator says the keys to a successful short sale are accessibility, responsiveness, communication, and fulfillment. By adopting its short sale platform, the company says large lenders, such as the unnamed Bank of America, can ensure troubled borrowers have 24/7 access to a portal through which they can provide the necessary information to process a short sale and receive real-time status updates electronically.

“Short sales can be a daunting, complicated, frustrating task for everyone involved,” Saitta said. “This fresh approach using our sophisticated platform makes it fast and efficient for all parties involved.”

Equator’s short sale module also automates decisioning for the lender, handles approvals for faster turnaround, provides quick fulfillment, and assures full compliance with government programs, Saitta said.”

This was emailed to me in a non-confidential message from REOTrans. I have had extensive experience with the platform, and have had little problem with the platform itself. Bank-owned property was my niche.

The issue was with the banks using it, and the fact that often times the decision-making regarding sale of the property appeared not to make sense in the real world of real estate.

These are the facts. We are in a mess right now, and while we will recover from it, everyone is going to take a hit. Period. Banks are going to lose money on top of the money they have already lost, and they can do everything they can to staunch the flow of blood, but here is the truth. It is to your benefit to sell the property as quickly as you can. If you can expedite the sale of the property while it is still occupied, so much the better. Forget about that arbitrary 17% short sale spread (list price to offer price)- and this is why. Maybe on paper this makes sense, but I see that once you have cash-for-keyed the occupants, you stand the chance of vandalism and acts-of-god that no one cares to stop. We have had copper stripped out of homes, ceilings cave in because of unnoticed leaks, wire stolen, and one of our properties was actually burned to the ground. And in a market driven by bank-owned property, regular resale owners are hard-pressed to sell their homes at close to a reasonable price- the property won’t comp out. Property that has made it to the bank-owned level feeds the bank-owned monster.

Homeowners are going to take a hit. I don’t know if I even need to detail the many ways this is happening, and I don’t feel that it is reassuring that it is happening across the boards.

Banks have to “get creative to make things move.” This means firing attorneys that do not do their jobs and taking it seriously when people report agents to them that do not present offers that match the bank’s criteria.

Will following a short sale transaction electronically help with the process? Possibly, if there are enough personnel assigned to handle the job to start out with, and we all realize that we are bearing the pain of what we are going through together.

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