Tag: Real estate agent

  • I am a Realtor Server not a Born Salesman

    I am a Realtor Server not a Born SalesmanI am a Realtor server not a born salesman. My first cut at sales was at Thrasher Elementary school on Signal Mountain, TN. Each year the students sold chocolate bars. We raised money for classroom window air conditioners. I still remember the first house in Skyline Drive subdivision I walked up to. The older lady came to the door, and with my best pitch “I stammered, ‘You don’t want to buy any chocolate bars do you?’” Turns out she didn’t. I don’t remember getting any award prizes for most sales. Funny, I don’t remember selling many, but I do recall the chocolate was pretty good with almonds.

    Fast forward, to my junior high days and a desire for a Schwinn ten speed. The stakes were higher for personal gratification and a need for travel. Instead of buying a bike, my parents bought boxes of commercial grade freezer bags. They said. “Sell these and with the money you raise we will match funds to buy a bike”. Brilliant idea on my parents part. I like to quickly get things done, so I loaded most all the cardboard boxes onto hand trucks. After all there are only 10 sets of bags each box and 4 boxes, how long should this take? One half mile later the only thing I had attracted was a thunderstorm, and zero sales. Lack of first day success did not deter me. I wanted a 10 speed. It took much longer than I first thought, and many more doors, but I did sell all the bags. I learned to help demonstrate how special the bags were, what a great deal they were and the story of why I was doing this. Funny thing was, looking back, I had folks calling me a year or two later asking if I was still “selling” them.

    Being a Realtor “sales” person was no easier for me. I worked in the family real estate biz. First I worked for Mom in relocation. That was fun. We set up a room for counselors to help parents understand the schools, get acquainted with the city, etc. Next on my list was setting up tech stuff. Being a nerd, I became the first I/T guy. I set up telephone and computer systems. Being on salary bored me, so I got my license to sell homes. At the time we belonged to a Better Homes and Gardens franchise. My first sales event was an Open House. My first “salesy” thing to do was call people (this was before the “Do Not Call Laws”) that lived in the neighborhood and “invite” them to visit the Open House. I was very nervous. The first lady answered and listened to my invitation. I nervously asked her to the big event, and she starts scolding me for not doing a good job with her landscaping. I do not think she ever believed me that Better Homes and Gardens sold homes and yards instead of maintaining them. When I realized that people need help not a salesman, I felt more at ease.

    How can I serve my clients and customers to help them is my job. I am very comfortable with that role. God gave me skills to quickly jump into helping and researching. That comes naturally. So the more experience I gained and understanding, I realized I am a Realtor server not a born salesman.

  • I Didn't Mean To Be A Real Estate Agent

    I Didn't Mean To Be A Real Estate Agent
    I want to be an astronaut
    I 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.

  • Real Estate Brokerage Model Will Change To Accommodate Trust and Service

    Real Estate Brokerage Model Will Change To Accommodate Trust and Service
    Real Estate Brokerage Must Deliver Service and Trust
    Real 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.

  • How To Sell Your House Yourself

    How To Save Money and DIY
    How To Save Money and DIY
    How do you sell your house on your own?

    Confession (1) I can only guess, because I have never done it. I am a real estate agent, a Realtor. I have owned 4 homes. I hired someone else to sell 3 of them.

    Confession (2) I have not slept in a Holiday Inn Express lately.

    Confession (3) I have been in the real estate industry full time over 22 years helping sellers and their agents get properties sold. (So I do have a few thoughts on the subject).

    So… why would I help someone who is bent on not hiring me?

    (1) I respect the effort. I like saving money like anyone. I recently purchased a bunch of parts for my toilet at Home Depot. Perhaps there is a little bit of pride involved. I can show my wife that I am man enough to fix a small plumbing repair and save a house call. But based on the time and money I spent on this simple project, I am not throwing away my plumbers business card yet.

    (2) I believe in giving value. When you give and give, the universe retaliates. I believe you receive more in return.

    (3) I hope that you will respect the true professionals in the real estate industry after your effort. We tend to paint an industry with a broad brush when someone has a negative experience. I have met many property owners who choose to stay away from real estate agents because “all” of “them” must be not trustworthy based on a past experience.

    (4) Home Depot and Lowe’s have not put builders out of business. For Sale By Owners (FSBOs) and smart phone apps will not do away with professional real estate agents. (They will affect our business, but that is another story)

    Let’s get started. Take some notes. I like bullet points.

    The most impressive For Sale By Owner I met lately did many of the following:

    1.) Study the market to understand value. Ask Realtors and perhaps pay for an appraisal. Take a look at houses you are competing against. Find out how many homes like yours sell each month and how many are on the market. Months of inventory is important.
    2.) Pay for a home inspection. Your buyer will get one anyway. Know your issues up front. I made $10,000 as an investor from a botched for sale by owner transaction over an inspection issue that blew up a sale.
    3.) Fill out a disclosure about all that is wrong with the property. (In Tennessee it is a state law)
    4.) Place good simple signage on property with clear numbers. (You would be surprised at what is really out there),
    5.) Advertise. Zillow “make me move” is the most effective at the moment. Zillow is the most downloaded app for buyers driving around. Craigslist. Next best thing: put flyers in a box outside and keep it stocked daily.
    6.) Set a deadline to break down and pay for a Flat Fee Listing Service. This accomplishes a contractual agreement with other agents that you will agree to pay them if they bring a buyer, and grants you more internet exposure through Multiple Listing Service and Realtor.com.
    7.) Hold Open Houses. Wait for real estate agents who are holding an Open House down the road and put out signs that direct traffic to your house with helium balloons. The people who come to your Open House may not purchase but someone who looked at the house last week may take action because of your activity and “fear of loss”.
    8.) Put a combination lockbox on your house. They are about $35.00 at Lowes. Allow “known” real estate agents to show your house without you being there. Turn on all the lights inside before you leave.
    9.) Stage well. Clean, clean, clean some more. Remove clutter and take away personal pictures. (Huge Tip: Buyers need to be able to “imagine” themselves living there. Not being reminded that you are there….) which leads me to
    10.) Be quiet… listen. If you must be present for a showing realize the goal is for the buyer to emotionally see themselves living there. Their reasons for choosing this house may be very different from yours. Explaining “why” you painted the spare bedroom pink will not help the buyer. Real estate agents ask the sellers to leave during showings. Do not leave your home if you do not know the buyer. Security is a real issue when dealing with the public. Oh, almost forgot… buyers may tell you one thing and do another… “they do not want to hurt your feelings” (especially in the South)
    11.) Find out your local closing practice by talking with a title attorney. Some states require an attorney be present. Your best protection is to have the buyer place earnest money with the title agency’s escrow account. Have the closing agent or attorney draft a proposed HUD-1 closing statement. This way you will know your fees to close.
    12.) Have an attorney review any agreement you make.

    You can sell your house yourself. These 12 tips are a decent start on how to do that. Let me know of your successes and things I should add to the list. Godspeed!