From RealSource... Glenn's Blog

Introspective Time! 

We discuss in our sales, operations and strategy meetings the power of fear that limits people (us, our clients, potential clients, vendors, etc.)   

Particularly fear of failure.  Even if it is not a gripping fear, it limits us in our daily activities, including work. 

Fear of hearing a "no", fear of losing a deal, fear of not being liked, fear of public speaking, fear of mistakes, fear of talking about money, fear of... well, you get the point.

Now, I'm not one that subscribes to the theory that sales or business is war.  However, I do like some of the concepts presented by various military figures in history.  This one in particular...

"Can you imagine what I would do if I could do all I can?"  

       Sun Tzu, Chinese General and Author, b.500 BC

Do you do all that you can?   

If not, why not?  Do you even know?

We cannot move forward as well with our lives, our work and our goals if we do not understand what limits us. I encourage you to think about what about yourself limits you!  

EXERCISE: Ask others you trust what you do to limit yourself.  And tell them you really want to know and won't be upset if they trust you enough to share!  And don't be upset no matter what they say.  Don't defend yourself.  Take their comments and consider them for a few days.  You might find something useful if you can accept and sort through the comments honestly.

Unlike other people or the market, our own self-limiting behaviors and beliefs are something we can have control over!  Have a great day!

MONEY

So many people don't like to talk about it. 

They dance around it, they don't want to suggest a price first, they don't want to bring it up until the end of a discussion.

Depending on where you grew up (I grew up in a very conservative culture but in a house that was not as conservative), there may be words and topics you don't bring up.... money.... sex... cancer.... prison.... death.

Before I turn into a strange version of Carlin with my own "Five Words You Can't Say in the South", let me get back to MONEY.

My personal belief is that many people are inflexible in discussion of listing price or their offers because they are emotionally uncomfortable with money discussions.  So they just want to get a number and move on to other topics and let it be the agents problem.

I also believe most people do not understand money.  Oh, they know they need money, they know what they earn and they know prices.  But if they really understood money, they would not be in such a debt crisis, would have saved more for a down payment and would not live paycheck-to-paycheck.  (You can tell me I'm wrong on this.)

So, how can you help your clients talk about money? 

1) Be more comfortable talking about money.   Practice talking about money.  If you are not comfortable with the subject, those around you will not be either.

2) Before you talk about money with clients, softly and calmly say, "I want to talk about money now.  Is that okay?"... and wait for them to say "yes".  This lets them agree to the topic and, for some reason, makes it easier.  If they don't say yes, don't talk about it.  They are not ready and your discussion will not be fruitful.

3) Talk about money in other terms to give them something the do understand.  For instance, "If your house is on the market another two months, you'll spend enough on additional mortgage payments that you could have spent two weeks in the carribean or bought three new High-Def flat panel TVs."

4) _______________________________________ (please comment and add your ideas!)

The Real Estate Market is just that... a market in a free enterprise, capitalistic society.  Money is the metric and mechanism for that.  And that, my friends, is okay.  Really.

Are you a salespreson or a project manager?  Or both? 

More importantly, are you a great salesperson or a great project manager?   Or great at both?

I believe that by nature, right brain vs left brain, we tend to be better at one or the other.  Naturally, training and practice can improve the other.  And we all know somebody that is just great at both, whether inherently or through work. 

My observations are that most (but not all) Realtors and lenders that are very successful are great salespeople, but not always great project managers.  Some have assistants, some get help from service providers (closing folks, title insurers, etc) because of their high volume and some just bully through the project management side in a chaotic but forceful way that gets the deal finally closed. 

Occasionally, we'lll see someone that does so many deals, they can't manage their contracts well and unfortunatly are apathetic to the deals they screw up.  Their "cup runneth over" so they care less about the spillage (even if that spillage is a client's loss).

I sometimes surprise people when I ask about the project management side of the job.  I guess since there is so much training on sales and marketing that these areas become the focus. 

And clearly without sales, the management of the deals is irrelevant.  But management of the deals can be what people remember.  

"We got our house sold but what a circus it was getting to closing... no one knew what was going on"

"They made the process so easy... found a buyer, walked us through the steps to closing, arranged everything to make it easy for us."

The other challenge can be which aspect we personally enjoy... the selling or the smooth deal.  Again, human nature can steer us toward the activities we enjoy the most or for which we are most skilled. 

I personally was bad at both sales and project management when I started my professional career.  But I've worked hard to be better at both and to know they are not the same... but success in each can help fuel success in the other.

Do you see yourself as a project manager as well as a salesperson?

While there was a bump up in the real estate market numbers this Spring, that was just that.  A bump.  And many attribute that temporary rise to the number of forclosed properties that hit the market and tended to move faster than they typical house.

More Properties to Hit Market

I have heard from various parties we deal with that it is very likely the banks will try to get properties off their books by the end of year, creating a larger wave of inventory.  Who knows, some banks may anticipate this and begin their push earlier than the 4th quarter.

PMI Company Problems

Making fewer headlines are the BIG problems with the PMI folks.  This mortgage insurance was what allowed so many people to buy homes with small (or zero) down payments.  As these companies experience sky-rocketing claims, their stability is now in question as well. 

Together, these two factors seem to be ignored by those that repeat they think the market is turning the corner and use this Spring's slight rise in sales as their evidence.

Of course, deals will continue.  And one thing that is not slowing down in the growth of our population that, over time, will continue to need more an more housing.  But that is a long-term picture.

Finding Success

We are seeing the more successful realtors and mortgage brokers moving to find ways to be more efficient, so they can move faster with less risk from over-staffing with assistants, office space, etc.   They also seem to be working to position themselves to absorb market share as less successful competitors "call it a day" and go on to some type of work that has a more predictable paycheck (even if smaller).

This makes for an interesting economics lesson for all as the market is actually doing what free markets do... expand and contract.. expand and contract. 

The question that is one of the more interesting to watch will be what the survivors do to remain successful.  In most cases, it won't be what got them here.  But there will be success, even with the challenges still to come.

Referrals... often the hot lead that is ours to not screw up.  We all want them, so what is one of the best ways to get them?

Refer to others.  

Think about it.  It is human nature to reciprocate. 

For example, suppose you need to refer to someone for another service (survey, appraisal, loan, gift basket, whatever...).  You have two people in mind that offer a comparable level of serivce.  Would you refer to the one that sent you two leads last month or the one you just know through softball games at the park? 

I bet it would be the one that is helping you build your business and has shown it through the confidence to lend their name to your business.

And guess what?  It works the other way too.  People you send referrals too, provide you do a great job, will send you business too.  Maybe not today, maybe not next week.  But one day.  And when they do, do a great job so they will do it again!

Naturally, your referrals need to be credible and of value, else you could damage your own name/brand by having given "bad advice" to someone that may later consider doing business with you.

But if you become a person of value to others, you will be valued... and that, my friends, leads to referrals and business!