Chickenhawk Scratchings

Teams are formed and teams fall apart, and often real estate teams shift in terms of their personnel.  In 2006, I was starting on the upslope of what I felt was going to be a dramatic rise in my team's production.  At the time, I had two part time buyer's agents, and an admin assistant.  I was generating a ton of buyer leads, so I felt it was time to bring on some full time help.

I hired two full time buyers agents, and my business disintegrated.

Not all of it was because of the hiring of those agents.  I had some other issues to deal with, but I will say that none of the issues involved the market (that's what a lot of people will instinctively think as they read this).  The bad hires were probably the worst thing in the mix.  I spent a lot of time training and working out my systems, a lot of money on new tools and lead generation, and together, in several months, they produced THREE closings.  Total.  Three.

Now, a year and a half after I consolidated my team down to an admin assistant and one part time buyer's agent, I am back to the point of generating a ton of buyer leads.  I've been referring them out to agents in my office, but they aren't getting converted, because I don't have the time to train every referral agent in the methods for my lead followup (the leads aren't quite your average lead, but they are easier to follow up, once you understand the concepts involved). 

I'm tired of always referring.  It's time to bring a buyer's agent on board... AGAIN.

After reading the first part of the blog, you can probably understand why I am really reluctant to do this.  I already have decided that I am going to grow SLOWLY in terms of staff.  I'm going to hire only as needed, not just because I see someone who MIGHT be good. 

I am trying to figure out if I should hire from within my office, if the talent emerges, or look at agents outside the office.  Agents already at our company understand our culture, and I know how they have been trained (I'm in charge of training, so I know who goes to what classes and how they're doing).  Outside agents can bring a lot to the table as well.  There might be some great talent just waiting for me to find them.

What advice do you have for hiring buyers agents?  Did you have problems like I did, or huge successes?  Perhaps I want to hear that I'm not the only one out there! *GRIN*

If you've read my blog for long, you know that I'm crazy about Active Rain. I am convinced that this is one of the greatest tools that I have ever decided to utilize, and I'm constantly glad that I jumped into blogging with both feet back in August of 2007.

I have been tweaking my listing presentation lately, and I'm trying to decide how to add my Active Rain association and blog to it.

I can see some obvious benefits for my sellers, in the fact that I have a referral network well over 100,000 people strong.  I can also advertise their listings on AR, which gives one more place to expose them to potential buyers.

What other benefits can you think of?  Are any of you using AR in your listing presentations?  What ideas might you have for me and the rest of the Active Rain community who would like to incorporate our great tool more?

Thanks in advance for your advice and tips!

This safety tip may be one of the simplest for you to implement, but as I drive around at night, I see that many people don't.

Statistics say that houses with lights turned on are much less likely to be burglarized.  Those same statistics also say that cars are less likely to be broken in (in the driveways or out front), and outbuildings are less likely to be broken into.

Motion lights are one great item to have on your home. I have a motion light on each corner of my home, so that if anyone approaches, they get illuminated.  They are great tools to have to discourage a would-be burglar.

The front porch light is the easiest light to turn on.  Motion lights can be fooled if the area of the motion detector can be determined, but keeping the front porch light on at night is a great way to reduce the chance of crime occurring at your residence.  The cost is minimal compared to the security it offers.

Don't just do it yourself. Talk to your neighbors too!  Light up the whole street at night, and send the criminals elsewhere. 

Many agents are tempted to slash their commissions when they are confronted by a seller who objects to paying all but the barest of fees.  These agents are often so attached to the outcome of gaining a listing that they forget or fail to learn how to convey their true value to their clients.

Consumers and many agents alike need to consider that in markets that are predominately buyer's markets, sellers truly need full service agents who are creative and well versed in technology to sell their homes.  Consider the fact that there are generally multiple properties for each qualified buyer in the market, so the seller who wants their property to sell for a reasonable price and in a reasonable time needs that above average agent.

I am a firm believer in providing value to my clients, and I am also a firm believer that someone who does above average work should be compensated for it.  If you want to buy kitchen cabinets, you can drive down to Lowe's or Home Depot for them and pay one price, or you can get custom cabinets made exactly to your desires for a higher price.

If an agent embraces technology, utilizes creative marketing, and focuses on getting their properties sold rather than just waiting for someone else to sell them, they can command a higher fee.  This is set off by the fact that these agents also generally sell their properties for HIGHER amounts.  For example, my local MLS averages show that properties usually sell for 97% of their asking price, but the last statistics I pulled for my team showed that our properties sold for an average of about 99% of asking price. 

Agents - if you can justify your value, DON'T cut your paycheck!  You deserve it for your hard and knowledgeable work.

Sellers - Don't just willingly pay someone a large amount of money for selling your largest asset - but once they show you that they are the ones with the highest value proposition, pay them what they're worth, and pay them gladly.  Your bottom line will reflect your good choice in the end.

I have been a faithful member of Active Rain for over a year now, and have absolutely enjoyed it.  I have gained knowledge, friends, and even commission dollars from my blog and the associations I have created in our family.  Joining Active Rain has been one of the greatest decisions I ever made in my career.

Because of everything I have gained and learned from this community, I have invited many people to join.  When I encounter a new agent, I encourage them to try their hand at blogging.  When I describe the benefits they can gain, they inevitably join.  What discourages me a bit is that many of them join, but never blog much more than their "introduction" blog.

To help my new invitees along, I wrote a couple of blogs to give them a little insight on how Active Rain points work, and what the benefits of blogging are.  I have started sending it to many of the new agents on Active Rain, but I want to do more.

How can we help new 'Rainers along?  How can we guide them into the big, scary blogosphere, and hold their hands until they lose their training wheels and embrace blogging?

I think that we should take interest in the people we invite, and we should support them as much as possible.  It is a measure of our cohesiveness as a community that many people here reach out.  I was impressed immediately by the people who helped me understand the ins and outs of Active Rain, and I hope that we can continue to do that for the newbies among us!

Real estate is a dinosaur.  Don't be one!

This has nothing to do with your age.  It has EVERYTHING to do with your paradigm.  Paradigm is defined by Webster.com as a philosophical or theoretical framework of any kind.  Your paradigm is the way you process information - it's the way that you operate, the way you do things.

Here's the issue.  Many agents have a paradigm that is based in the twentieth century.  Which PART of the twentieth century varies, but the ideas usually flow from certain general idioms.  This often is frighteningly clear with marketing.  For example, typical agents all over the country run ads with big pictures of themselves smiling, with statements like "Work with me, I'm Number One!"  I hate to break it to you, but consumers don't respond to that. 

Why?  They've seen a thousand number ones.  They're so skeptical, that the only reason they're going to call you is if they happen to read about a house that they're interested in, and they really don't want to talk to an agent anyway!

What is a twenty first century paradigm?  I would propose that the twenty first century agent is up to date on what really works in marketing, and they need to know how prospects think.  Those agents who are reading this blog right now have embraced at least one component of it (I'll wait a moment so you can pat yourself on the back).

The twenty first century agent KNOWS that clients are more savy than they've been in the past.  They also UNDERSTAND that prospects are going to be gathering a lot more information for themselves before they ever contact an agent to help them.  Finally, they are COMFORTABLE with the fact that they are NO LONGER the gateway to real estate information!

I once had a fellow agent tell me that they were intimidated by clients who did a lot of research on the net.  They felt that the clients might know more about the houses they were looking for than the agent.  This is quite possible.  Even though you can be an expert in your area, and you may do a thorough needs analysis, your prospect is still MUCH MORE of an expert on what THEY want.  I told this agent to stop fearing it, and start embracing it.  When I get a well-informed prospect, I jump for joy!  That's MUCH LESS work for me!

How do you look at that situation?  You have to concede that our job is no longer to be the gateway to real estate information.  Our job is to be PROFESSIONALS whose knowledge and skills are beneficial to the individual wishing to conduct a real estate transaction.

I love the internet.  I embrace the internet.  I am comfortable enough in my REALTOR(R)-hood to give up tight reins on the information.  If clients have already researched, my job is half over.  Now it's time to bring in the professional to narrow down the last choices, find the right fit, and negotiate the best terms.

Another paradigm shift - when it comes to your marketing, give up the traditional print ads.  If your ad doesn't have some sort of call to action, or an opportunity for a prospect to get information from you in a non-threatening way, then don't waste your money running the ad.  Utilize tools such as direct response marketing.  I'll tell you right now that I HIGHLY ENDORSE Craig Proctor's training for this.  His systems and methods are light years ahead of other things out there, but I especially like his direct response marketing systems. 

Terms such as call capture, IVR, and stealth web sites should be second nature to you.  The twenty first century agent understands that the majority of prospects work with the FIRST real estate agent they speak to, and the best agents use methods to identify those prospects earlier in the game.

Change your paradigm.  Change it now.  The real estate dinosaurs are going extinct - don't join them!

If you don't list, you don't last.  This concept is driven into our skulls by real estate trainers year after year, but I would like to go one step further and make the argument that if you don't generate leads, you don't list, and therefore you don't last.  Now this may sound quite simple to most of you, and I am quite willing to concede that it doesn't take a doctorate in Realestateology to figure it out.  Unfortunately, the big, ugly truth is that even though 100% of you may understand this, we have an 80% failure rate in real estate! 

So what is the underlying problem in the quest for making a real estate career work?  I often find that it is a lack of understanding the basics of lead generation, and even more prevalent is a lack of DOING some sort of lead generation activity.  I can sit here and quote the conversion rates for mailing to people you haven't met (1:50), or lead generating to groups of people who know you, like you and trust you (2:12), but if you don't actually DO something, the only number that will mean anything is the 80% failure rate. 

What keeps many people from lead generating is fear.  Fear can take many forms, such as fear of rejection, fear of saying the wrong thing, and so on.  We cannot allow fear to run our career, because our career will run into the ground.  Understand that the only person who is going to really care if you are rejected, or stumble through your script, is YOU.  You might not get an appointment, or a listing, or a buyer, but that shouldn't stop you from going onto the next prospect and TRYING AGAIN!

Here are some very simple tips to get your lead generation kicked off.  First, don't reinvent the wheel!  There are several great lead generation programs out there, so use one!  For instance, read The Millionaire Real Estate Agent (Keller/Jenks).  There are some very simple lead generation systems that will get your business flying. Go see a national trainer and use some of their programs.  Talk to your peers who are successful, and see if they will give you some pointers.  Just DO SOMETHING and do it CONSISTENTLY!

Second, pick up the phone and keep in touch with people that you know.  Make sure that everyone knows you are in real estate, and remind them in a subtle way whenever you talk.  Mention a closing you are about to have, or a trend in the market.  After all, the question we always get when someone knows we're in real estate is "How's the market?"  Know how to answer them in a way other than, "Doing as well as ever."  People want to do business with those that they know, like and trust, so keep in touch with those you already know!

Consistency and repetition.  Consistency and repetition.  Consistency and repetition.  Even if you are doing something small, it will yield some sort of result, if you keep doing it, and doing it the same way.  The only person who will get bored by your lead generation activities is you!  Now, get out there, and get some leads!  After all, I want you to stay in the other 20%!

At some point in an agent's life, they will deal with a couple who is getting divorced and must sell a home.  These are not the easiest situations to deal with, and should be handled with some care.  Emotions can run high, and many times husband and wife have different agendas.

For example, June lives in the house, and Joe has moved elsewhere.  Joe is the primary wage earner, and the house payments are still in his name.  Who's motivated to sell?  Joe wants the house sold, because he doesn't want to make those payments.  June may not be so motivated to sell, because when (IF) the house sells, she will be forced to move.  If there are kids involved, the motivations may be even further apart.  I've seen the roles reversed. 

If one party doesn't want to sell the home, and they live in it, they may not keep it in showing condition.  Perhaps they cancel appointments without good reason.  It can be a headache.

What's the best way to deal with divorce situations?   Here are a couple ideas, and I'd love to see yours as well.

1)  Meet with each party individually.  This allows them to tell you their own needs and values without putting up defenses caused by their ex-spouses. 

2) Get the names and numbers of each party's attorney. There may come a time when it's better to go through their attorneys for signatures, especially when it's time to work out purchase contracts.

3) Care.  Make sure that you use some tact and compassion.  There are often hurt feelings and high emotions.

4) Remember that the negative emotions you may observe are probably not directed at you.  The client may vent, but probably not AT you.  It may be at the situation, but probably not AT you.

Give me your ideas!  Or, share your horror stories so we may learn!

Many agents fail to lead generate because they feel daunted by the task.  Lead generation instructors tell them that they need two or three hours per day MINIMUM if they want to succeed.  While this number is preferable, I think it's more important to establish the habit of actually DOING lead generation first. 

When I coach a new agent, I try a slightly different approach.  My recommendation is to set aside six to eight hours per week for lead generation and follow-ups.  Why six to eight? This number is a manageable amount of time for a new agent to wrap their minds around.  If they do an hour or two each day, it makes the task seem to be  lot easier.

Once an agent establishes a regular routine of lead generating, it is easy to increase the number of hours per week.  At the same time, the agent should be making successes, which build confidence.  It's a winning proposition!