I want to be an astronautI didn’t mean to be a real estate agent. It just seemed to happen to me. Here’s my version of the story.
In first grade at Thrasher Elementary in the 70s, I had three occupation choices, 1. Policeman, 2. Fireman, or 3. Astronaut. My decision at the time was Astronaut. I remember watching Neil Armstrong step on the moon in 1969. We are at my grand parents house. Wow, just think, travel to outer space and drink unlimited Tang drinks! Our principal, Mr. Wheeler, did his level best to encourage us to consider the Navy. I must admit it was never a temptation. There was not much water around our home. Tennessee has plenty of trees. Acorns make great ammunition in yard battles – if Military I was going Army. (funny how future events unfold)
Going through school, I changed my aspiration from Astronaut to fighter pilot. Not only was that really cool, it seemed a bit more practical. Dad encouraged me to get a military scholarship. I did win a scholarship, but alas my near sightedness was a handicap for flying, so I chose the Army. (Acorn experience comes in handy).
I took the Army scholarship to Vanderbilt University in Nashville, TN. By this time I was thinking businessman or preacher. I decided to take the technical business route believing that God needed Christians in the computer field.
I wrestled a computer science degree from Vandy’s Engineering School. When I finished in 1986, I was faced with a choice. I could choose the Army Reserves for 8 years or infantry for 4. God lead me to Ernst & Young in the manufacturing systems consulting business.
In 1990 Desert Storm and a new born son (my wife was 8 months pregnant when my commander called me to active duty) snapped me to attention. I was a new Father and realized that a traveling job was not good for my family. I decided to move back to Chattanooga and jump into the family real estate business.
This was the beginning of my journey to becoming a Realtor. I wanted to be an astronaut. I didn’t mean to a real estate agent.
Give a Realtor a personal referral and with social media he will sell the world. Play on the Archimedes quote “Give me a place to stand on, and I will move the Earth”. Archimedes was talking about a lever. The new leverage today is social media standing on the internet. Facebook, Twitter and Google+ give everyone long levers. Sales are won with relationship and trust. Communication and relationship are facilitated by social media. The price of admission is time, consistency, and a little money (when you figure out who you are looking for and how to advertise).
Experienced real estate agents operate on past customer relationships. Trusted referrals will always be the most powerful force for buying behavior. When was the last time you asked about a restaurant or movie? Probably not long ago. How was your experience with that car repair place? Before you spend your money you get references.
Some date nights at home, call for a movie at Redbox. Before I spend a couple of bucks and more importantly an hour or two of my life, I check a few movie rating app sites for other opinions. Once you trust a source you keep going back to that well.
I placed a picture of a home on Pinterest. The details intrigued a person who called me and eventually purchased for $340,000. The only cost of the Pinterest post was my time. Was it worth the effort? Was it a lightning strike never to happen again? While you keep asking “what is Return on Investment”, I will keep posting pictures on Pinterest. (or for the lightning strike analogy, I will keep dancing in storms with a golf club above my head)
Social Media is a product of our desire to connect. Reaching out to care about your customers in relationship is the very essence of real estate. It is the perfect lever in your hands. Social media is a powerful tool to move people and homes, while standing on the internet using email and blogs. Give a Realtor a personal referral and with social media he will sell the world.
Chattanooga real estate reflects national trends. Chattanooga is like many mid-western tertiary markets. We do not see the big booms or the steep falls that coastal or some primary markets tend to experience. Chattanooga is a mirror of the national economy. Chattanooga home sales under $100,000 fell in 2013. The national first time home owner market is down. Chattanooga home sales over $200,000 is up. The U.S. luxury home market is doing well. I noticed late summer Chattanooga home sales slowing. Two weeks later I am reading a National Association of Realtors report that U.S. sales are slowing.
Real estate franchises reflect the same. I grew up in a real estate family. My Dad was an agent in the 70s. Both of my parents are brokers and have owned a company since the early 80s. I have observed closely the real estate franchises of Century 21, Better Homes and Gardens, GMAC, and Prudential. Keller Williams is a brokerage model that has been on the rise nationally over the last 5 years. It has been that way in Chattanooga as well. Real estate may be “local”, but overall national trends seem to play out in Chattanooga.
Another trend I see is independent real estate firms sprouting. They are growing alongside the wave of technology changes. As I drive down the road I notice more Facebook business window ads. Creative entrepreneurs are serving customers with less overhead. Technology is allowing them to be more direct.
The change in trends reflects a shift in how we “package” and “market” trust. As an example, the franchise Better Homes and Gardens conveys a message of trust because of its well established magazine and cookbook. Keller Williams (is not a well known household name brand) but it packages bits of ownership to its member agents. It is a way of conveying “trust” to its teammates. I believe technology changes are a result of people demanding more honest and trustworthy personal interaction. Brokerage firms will follow because agents and customers demand it. People are creating new forces to mold the real estate business. The Scenic City is not immune. Chattanooga real estate reflects national trends.
Brian Kelly BloggingWhy God asked me to blog about real estate 45 days straight. To Change me. He is changing my heart and wringing out future “orders”(for the military minded) or business plan (for the entrepreneurs). This is day 35 and the vision is coming into focus. The focus is my heart surgery. It’s all about me. (Keep reading… it may not be what you think) My Maker is asking me to respond. The broken pieces needing attention are the following:
1. Relationship: The primary being the one with my Maker. I trust Him alone. Like King David, I have proven I cannot trust my own heart. He will always encourage me, heal me, discipline me, love me. Who doesn’t need that Papa in their life? My response is a constant race running to Him.
2. Responsibility: It’s all about me! No blame on anyone else. It is my deal.
3. Becoming trustworthy: Three things here are A.) walking the talk, B.) demonstrating care through connectedness, and C.)dependability.
4. Using gifts: My gifts are quickly initiating action and research. Those gifts need to be used inside a framework of…
5. Diligence: Words are critical. Jesus is the Word! Reading Isaiah 30 this morning “Words streaming from his mouth, searing indicting words! A torrent of words, a flash flood of words sweeping everyone into the vortex of his words.” Words are powerful. Putting them into universe filtered through hearts is his pleasure. So every day, I search for them and blog.
There was once an selfish leader who focused on business for business sake. Being number one was a focus regardless of the cost, personal and human. “Business is business”, was his worn phrase applying to recruiting, hiring and firing. He listened to some who promoted positional power and fear to cover personal weaknesses. Sadly and regrettably that flawed man was me.
Graciously my Maker did not give up. Neither did a few encouragers in my life. So my response? Watch and see, why God asked me to blog real estate 45 days straight.
Real Estate Brokerage Must Deliver Service and TrustReal estate brokerage model will change to accommodate trust and service. Serving home buyers and sellers with trustworthy service will be a generous business for years to come. How Realtors and brokerage firms get paid will most likely change. Change is being driven by the human need for honest communication and is being facilitated by technology. Here are four observations to make the point.
One: Ebay and AirBnB. Models that are built on trust. They work because of stamps or stars of trust conveyed by stories of other people.
Two: Google took inventory of all real property and Zillow Make Me Move is a system that is begging for trust. Ebay and AirBnB proved their models. I hear grown Realtors calling Zillow and Trulia the porn sites of real estate. What? Give me a break – what that tells me is that they are gaining traction and weak agents are becoming fearful. Do not even come back with poor data integrity, etc. (Granted…buyers miss some deals because Zillow updates run slower than MLS) The services still provide value.
Three: Real estate brokerages can charge much less money if everything they did was compensated. 40-50% of all listings, energy , advertising is wasted on properties where the seller does not have sufficient motivation or ability to sell for the market demand. Sellers would sell “if” they get their price (to buy the next place or simply pay off the lender) Home shoppers not buyers: real estate agents may spend lots of time and gas showing houses to someone that does not “have to” buy a home. There is room for creative agreements with sellers and buyers and their brokerage firms if motivation and non-payment risks are reduced.
Four: Social Media will push Brokerages to adapt “systems” because buyers and sellers will “connect” more frequently. (Pushing on the door of reducing the costs of finding the “Willing” party) Which will demand a service of transaction liability coordinator. Some title companies may niche and grow what some will see as a growing FSBO (For Sale By Owners) market. On the brokerage side, I can see a DIY brick and mortar model where the seller and buyer pay for a menu of services complementing Zillow. (Similar to local Ebay stores that handle the sale of an item for you for a fee). Agency law, fiduciary responsibility, and liability insurance will need to cover the scope of services rendered.
[** Learning moment for agent compensation: The local Chattanooga MLS reports that there has been 5,144 homes sold year to date with total volume of $872,600,261. Multiply that number by 5% or 6% and you get roughly $34-$53 Million dollars of commissions. Divide that by 1,500 real estate agents and they average $35,000 each. Multiply $35,000 by 70% split that is nearly $25,000 a piece gross before gas, taxes, advertising , healthcare, etc. Agents are paid 1099 not W-2. You can see the model is pretty efficient, especially when a high percentage of activity is NEVER compensated. Imagine your boss walking in on payroll day and saying let’s roll the dice to see if you are worthy of being paid today!]
The bottom line is that technology is changing how we serve people in real estate. I used my smart phone to check the level of a door jam, shine a light into a crawl space, check a HUD for closing, and text a message to another customer (All during one home showing). My buyers are calling me with information from Zillow, and Trulia on their phones. They are demanding a response. Please understand, that I am NOT predicting that smart phones will replace real estate agents. Nor, I am predicting a sharp reduction in the “cost” of sale of your home. Ebay does not seem to be making large dents in retail malls, and AirBnb has not toppled Marriott.
Home buyers and sellers will pay for great service and trust. People will demand it. They may actually pay more than a “typical” commission to sort out all the “noise”. Tech is changing real estate; therefore, the real estate brokerage model will change to accommodate trust and service.
New Realtor On JobFive easy steps for new real estate agent success.
1. Surrender the process to God, pray, choose a leader and a tribe that shares your values and demonstrates care and success in building warriors. Follow people with a credible track record. One of my teacher/mentors was a good For Sale By Owner or FSBO prospector. He shared stories and would dialog with us to help overcome known objections. Experience is a great teacher. If you can learn from someone else’s failures, you do not have to repeat them.
2. Make a simple written plan with a mentor. The plan will include dates, specific measurable goals, and your signature. Do not under estimate the power of this exercise. Plan time with God and family first, Then schedule your business. I allowed business to trump my family time (Huge Mistake!) If you have ever kept a journal or diary you know the written word will re-wire your brain.
3. Prospect, diligently, daily, no exceptions, building trust. The Only thing you have in this business is your reputation and how you handle relationships. Trust is made up of 4 components: Your ability, Your believability, Your connectivity, Your dependability. You will gain ability over time and more quickly than you realize. (ask for help, tell the truth, Don’t “Fake It till You Make It”) Believability is presenting who you advertise. If your high school picture is on your website, your credibility instantly diminishes when the customer meets a different looking person. Your connectivity is crucial. Follow up is the devil for most agents. You start serving the out of state couple on a three day tour and it is difficult to remember the email you told your friend you would send a week ago. Frequently “touching” the circle of people that care about you is powerful.
4. Promise little, listen, deliver more – Just listen. Listen with your eyes and observe body language and not just the words. Listen to gain understanding of desires and wants. The emotional expression from spoken desires translates into fulfilling them if you can pick up on them.
5. Weekly track with your mentor, coach or leader – Celebrate incremental successes of prospecting goals met, etc. Your loved ones want to see commission checks, but early in your career you need cheerleaders that celebrate the smaller victories that lead to big checks later. I am thankful to have written over 32 consecutive daily blog posts. Give, give, give, consistent daily good things will pay huge dividends later.
Do what others are not willing to do on a daily basis. Be consistently planning, prospecting, serving, learning and celebrating. Five easy steps for new real estate agent success.
Chattanooga TN Home BuyersWhat are home buyers in Chattanooga TN looking for? Home shoppers I am serving have unique stories. There are similar themes across the board. The buyer clients are looking for the following:
1. Saving time – less commute, more family time
2. Preserve capital – Conservative purchase, not “house poor”
3. Newer and updated – (One exception category)
Saving Time – Several clients bought to cut the drive time. The primary motivation is not to cut the car gas bill. It was to have more time at home. Patterns of school and work shift with age. Time is the most precious commodity to many. Amenities and square footage are starting to diminish. Location to work, and community amenities is gaining momentum. One North Shore is a perfect example of this.
Preserving Capital – Chattanooga real estate from 1990-2006 (for the most part) performed a steady 3%-4% value increase year to year. The last 7 years proved that is not always the case. Real estate buyers want a “good deal”. Even young buyers are being careful not to max out their loan capability. My experience is that Chattanooga home buyers are thinking about paying loans quicker and paying more cash down. Several buyers paid all cash for smaller homes to be debt free.
Newer and Updated – Strong buyers want to purchase new or already updated decors. The one exception to this is younger purchasers. I served three first time home buyers that purchased distressed properties and spent significant sweat equity and remodel money. All three bought to live as owners. All three bought well under retail value and made wise purchases.
My experience and market analysis shows that if you are a patient Chattanooga, TN home buyer, then you can do well, especially if you are looking at $325,000 and above.
If you are a Chattanooga, TN house seller, in a property older than 6-8 years old, please consider paint, carpet and a few cosmetic upgrades. You will be much better positioned for today’s buyer.
What are home buyers in Chattanooga TN looking for? My buyers are looking to save time, money and weekends free of home makeovers.
Palm Pilot Wind ChimePeople connection drives real estate technology change. The devices are faster, brighter, and upgrades rain down faster than a summer shower. All the rain is washing into creeks of social media, tablets, smartphones, and laptops. The river of technology is wide and moving pretty quickly. All of the waters of tech flow straight into the open mouths of people insatiable in their thirst to connect. The demand to tell their story, connect with their tribe, family, loved ones, and express themselves in visual art, music, words, and dance.
The picture of the Palm Pilot reminded me of a cool tool that I used to own. A creative artist is using an old Palm Pilot as a wind chime. I took the picture for the benefit of a friend that actually has a working Palm Pilot. In her defense she uses it as a device to open Supra Lock Boxes for her real estate business. Real estate is all about people and properties. The Palm Pilot held an amazing amount of people and could sync your email contacts with your database. A portable private phone book. I loved my ability to carry thousands of people with me. (metaphorically of course)
Fast forward to 2013. I showed a home this afternoon. Parents are walking around holding an iPhone and Face Time showing their daughter the view. Giving a limited experience to their loved one who was 2 states away. Connection..
Last night we were eating dinner and someone remembered the cartoon dog character named Smedley. Some could not recall the character. My daughter had no frame of reference. Smartphone to the rescue. A few seconds later we were all watching a clip from Chilly Willy on Youtube. ( I would not necessarily recommend taking the time to watch it. Muttley has a better dog laugh)… We connected a memory and brought a story from the past into the present connecting generational stories.
If you are on Facebook, how many “friends” have you connected with that you have not seen in years. Perhaps decades! Connection… We crave it, we need it. We simply need to encourage, reach out, tell stories, laugh, cry and inspire.
Real estate needs connection. It demands it. We can share the experience of looking at a new home. We watch videos, listen to stories and read the words.
Real property has a place. The axiom is Location, Location, Location. So true. People have connection. The real estate business is about connection, connection, connection.
People connection drives real estate technology change.
Smart Phones Changing Real Estate BusinessSmart phones are changing what real estate agents do. What do real estate agents do? I hear and read about the comparisons of how technology will change real estate like it did with travel industry. I cannot see the future, but I do know that what I do as a Realtor in 2013 is different than what I did in 1995. Last decade, real estate agents, doctors and other “important” people had pagers. Remember those? Large belt buckled black with text and you could send messages to each other at lightning speed. Prior to pagers it was cell phones. Before cell phones it was car radio phones. I remember my parents installing a thermal paper printer with electronic message capability. We could print out the days “hot sheet” with the device.
Does that mean that real estate is an early adopter of technology? Yes. Does it change what agents do? Yes… to a degree. Let me tell you a story.
Early in my real estate career, my Dad taught me the phrase “See the people”. People are the real estate business. Real property and technology are merely along for the ride.
The relationships we have with others and the trust we build is the real estate business… period. My observation about people in 2013 is that we “trust” our smart phone more than humans. After I finish this blog post I will go to my bedroom and place my iPhone on my bed stand. (Where is your phone now?) Sometimes I check to make sure that Dee is charging hers overnight. Why? Because I want to connect with my wife during the day tomorrow. I check the weather, the ball game score, use my flash light to see in crawl spaces, bubble level on crooked floors, … on and on it goes. Regardless of all the apps we use. I have a relationship with this tool and it is a constant companion. If I want to talk with my daughter most of the time I am connecting through her device. When she asks me about going on a walk or traveling, I ask her to take her phone. Life360 will at the minimum give me the device location.
We have a relationship with our technology and it can tell stories with sound, and video that far surpasses the ability of fax and pager. The literal “gatekeeper” to a person is this device. Real estate agents will learn how to connect with customers through this personal technology, because the real estate brokerage business is All about relationships. The relationship with our smartphone forces us to change how we relate to others.
Smart Phones Are Changing What Real Estate Agents Do.
Picture of First Page of TN Home DisclosureChattanooga TN home sales require full seller disclosure. Full disclosure of defects and known problems is Tennessee law and applies to anyone selling residential property. This became law April 8, 1998. An outline provided by the state is located at this link. Most laws have exceptions. One of the most commonly used exceptions to this law is a absentee owner or builder. The spirit of the law is that you must have been living in the dwelling recently to be able to disclose “known” issues.
This law helps keep sellers more honest in their dealings, but there are gray areas that cause pain. One of the gray areas pertains to repairs of problems. Technically, you do not need to list a defect if you repaired the issue. The problem becomes when the “repaired” problem not listed on the disclosure becomes a problem after the sale. Common issues in Chattanooga area are wet basements, and faulty septic systems. Owners may have the problems supposedly repaired in good faith. The new buyer finds out a year later that the issue has returned. Tempers may flare over perceived deception and cover up.
The best way to avoid problems is to disclose the repairs and provide receipts of the work done to correct problems. That way the seller is not only fully disclosing the issue but also providing contact information about the contractor providing services. This advice was given to me from an attorney who represents clients regarding waste water problems.
Ask your Realtor about exceptions to the disclosure. If you are exempt it is best to sign a document explaining how and why you are exempt from providing full disclosure. The spirit of the law is to protect consumers purchasing and selling a home.
The form is several pages in length and covers many areas of your property. Every residential property in Tennessee is covered. Chattanooga TN Home Sales Require Full Seller Disclosure.
