Take a Walk!
Get out of your seat. Push away from your desk. Put down the phone and...yes, stop hitting those keys on your phone or your computer. I know. It is comfortable behind all that technology. It is all too easy to just send communications out and see where it lands later. It is easy to just leave a message either via text, email or via a phone message. It is easy to research, compile statistics and send reports via the internet often on deaf ears. Agents respond to email inquiries with text messages. Brokers send attachments to their agents blackberries giving them a pep-talk and sales statistics.
Success, especially today, depends on face-to-face interaction between human beings. Trust is built by our relationships. And, relationships are built upon communications. True communications is a complex interaction of the spoken word, non-verbal cues of expression, active listening and a true exchange of ideas. Often, it takes many face-to-face interactions in order for the basis of communications and understanding to take place. Often, people do not say or write what they mean. Not because they are trying to hide their wants or needs...it is because they may not know what they want or they may not understand what they really need. Agents may not have scratched the surface of understanding of what the buyer or seller objectives really are.
In the 1940's, Dave Packard of Hewlett Packard, coined a management technique called, "management by walking around or mbwa." Ahead of it's time, this technique encourage executives to get out of their offices and cubicles into the workplace environment. This easy to do technique enable face-to-face communications including active listening, personal involvement and setting the organization goals --- together --- which ultimately ended up with business success. This personal involvement shed titles and managment levels, walls were literally removed from offices and true two way employee engagement took hold.
What does this mean for real estate brokers and agents?
1. Visit as many listings as possible.
It means you need to get out of your home or office. You need to interact with the marketplace in order to succeed. You need to see as many homes for sale as you possibly can --- not view the pictures on the net. You should see them up front, inside and outside. Towns differ, streets differ and homes differ. You need to experience the differences in order to communicate them to your buyers and you need to understand what is on the market in order to list homes effectively. Brokers and office managers so they can look beyond the statistics.
2. Brokers need to get in the trenches.
Brokers and managers should answer the phones when people call. What are people reading in the ads that are placed? Are the ads and media vehicles effective? Brokers and managers need to sit amongst the agents to understand --- what their real point of view may be. Brokers and managers need to visit homes and tour homes for sale. They should go on listing presentations from time to time.
3. Agents need to meet with their buyers and sellers regularly.
This is beyond the weekly call report or email. This should be a regularly scheduled meeting --- so that agents can hear, first hand, what the sellers needs are. In the case of a buyer --- if you are not with a buyer in person on a regular basis. They are not an "A" buyer and they may be visiting other agents and/or brokers.
4. Reduce Office Meetings.
This seems to fly in the face of the MBWA principle but...if you look at the format, weekly staff meetings are not effective. Management talking at agents with managements agenda --- is not particularly engaging. Weekly meetings should be in small groups with a specific goal or agenda in mind. They should be targeted at the level of the agent --- top producer vs new agent, for example. Group staff meetings could be held monthly to bring everyone together BUT even these meetings should have an agenda driven my the participants, not the other way around.
5. Walk the Walk.
Brokers and managers need to get in and around their agents. They should have an open door policy and they should, on a regular basis, sit where the agents sit. They should walk where the agents walk. Leading by example is by far the most powerful tool a leader has in her toolkit. Understanding where the calls are coming from by actually answering the phone --- give remarkable insight to the market.
6. TALK
Believe it or not... I am a technology fan but.... we have lost sight of personal, face-to-face talk time. It has become far to easy to just send out one way communications in the form of texts and emails --- without taking the time to talk with another person AND more importantly --- to LISTEN. Take time out. Make that call. Visit --- in person. Your business will take a remarkable turn for the better.
Let's take a look at some of the headlines this week. We will hear a lot of the woulda, coulda, shoulda's next year when people wonder why they did not lock into that rate or buy that GREAT home in 2009.
I have recently witnessed multiple offer situations in the Bergen County area --- Oakland, for example --- on homes priced below $450,000. In Mahwah, several million dollar plus homes have gone into attorney review in the past 7 days. ( now we know a lot can happen between now and the closing date but that is a lot of activity in seven days. ) A set of buyers I am working with have lost out on 4 homes that they absolutely LOVED and could afford because they wanted to wait...and think about it.
If you are interested in buying --- Now is the time to do it. Rates are at 20 year lows. Prices are down. And, tax laws have changed to help first time buyers. So...what are you waiting for?
We have to read and understand the NEWS --- to understand that the market has changed --- AGAIN!
1. Mortgage RATES DOWN - Again --- The lowest in 20 YEARS!
U.S. mortgage applications jumped last week as record low interest rates spurred a surge in demand for home refinancing loans, data from an industry group showed on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32.2 percent to 1,159.4 for the week ended March 20.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.63 percent, down 0.26 percentage point from the previous week, reaching a record low, the MBA said. http://www.cnbc.com/id/29873758
2. Durable Goods UPSIDE SURPRISE
New orders for long-lasting manufactured goods unexpectedly rebounded in February, rising for the first time in seven months, according to a government report on Wednesday that could bring some cheer to an economy mired in recession. The Commerce Department said durable goods orders rose 3.4 percent to $165.6 billion in February, the biggest increase since December 2007, after a revised 7.3 percent plunge the prior month, previously reported as a 4.5 percent decline. http://www.cnbc.com/id/29874481
3. Sales of existing homes are UP!
Existing-home sales increased in February, reversing losses in January. Even so, sales activity remains relatively soft, reflecting additional layoffs and buyers waiting for housing provisions in the economic stimulus package to take effect, according to the National Association of Realtors®.
4. Stock Market RALLY has momentum!
The long-awaited U.S. government plan to rid banks of money-losing assets has injected some desperately needed optimism into Wall Street after stocks hit 12-year lows earlier this month. Judging by the 20 percent run-up in the benchmark S&P 500 index since its March 9 bear-market closing low, there appears to be a burgeoning consensus that some confidence maybe returning to the marketplace.
http://www.reuters.com/article/newsOne/idUSTRE52N7OJ20090325
5. Renters become BUYERS as homes become more affordable
In some U.S. markets, prices appear to have fallen enough to make buying cheaper than renting. Mix that with mortgage rates that are near record lows and renters who want to become buyers are rejoicing.
"The U.S. government is helping bail out those who bought at the top, but I got my own personal stimulus package through falling home prices and low interest rates on mortgages," said Wilusz, who works at Ameriprise Financial.
http://www.reuters.com/article/newsOne/idUSTRE52M3MS20090325
Real Estate is local --- so you should call an agent who know the local market, knows price opportunities and who KNOWS how to market and SELL your home in this climate. Don't use a crystal ball to predict the bottom. Understand your finances and get the best rates & prices --- particularly in Bergen County, NJ.
Call 201.675.1618 cell or email me at CupaT@aol.com. I am happy to help.
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Warren Buffet tells CNBC's Becky Quick --- " I wish I was 21 again! because the opportunity to make money is NOW. Yes, the economy is 'gummed up' currently but once the stimulas takes hold and the bank's are sured up --- people will make money. The opportunity is now. "
As I listen to his commentary in a televised interview with Rebecca Quick he answers questions sent in by viewers, I will try to capture some key points that will have a direct impact on buying and selling stocks and ultimately will help bolster consumer confidence.
He tells Becky, "Swift action was necessary last September because we were going over Niagra Falls. The government did do and continues to do the right thing. It is understandable that the general public does not understand and we need better communications to re-assure them --- but very smart people are paying very close attention to the situation. I can understand their fear, however, there is no immediate solution. The solutions will come and results will be seen but it is not an overnight fix.
That said, we need the banking system. It is not us and them --- we are all interconnected. Once the banking system continues to be stablized and that is underway now the people who have done the right thing may have to help those who did not do the right thing ( isn't that the American way?) --- stability will return to the market. Confidence will return. The power of the United States means everything will be all right. We have the greatest economic machine in history. AND, the right people --- which by the way --- are very smart & articulate are in place to do everything that needs to be done. " ( referring to the President and the current administration.)
I am telling you once more, that I wish I was in my twenties instead of the seventies because --- there is money to be made at this time. "
He seems so down to earth yet so knowledgable. He is frank and to the point when he emphasized that just because corporations are having trouble does not mean that they are bad companies or bad investments. You have to recognize and trust good investment opportunities. The same is true for real estate. Last year we were on the edge but now it has past and there are very good opportunites that will not be here --- ever again.
Dig deeper than the scary headlines --- because they are designed to be sound bites, like shock and awe. Read and arm yourself with information. Ask your investment advisor before you jump in willy nilly into the market and if you are considering real estate use your realtor for advice and council --- each person is different and so is your investment scenario and tolerance.
And, I wish I was in my 20's armed with the knowledge and experience that I have now. My wish list is way different today than when I was in my twenties ( now it is family, health, security and I would not change that for anything), however, I agree with Mr. Buffet --- I wish I was in my twenties again.
http://www.cnbc.com/id/29592831
Believe it or not --- there is alot to be happy about in the real estate market.
First, real estate is local and in our area --- prices have adjusted and we are beginning to see signs of activity. Showings have increased over the same time last year. Second, interest rates are at an all time LOW. Buyer's that have good credit ( and I am working with a few ) are getting a terrific rate and they are getting loans. Next, first time home buyers can be happy about the newly crafted TAX CREDIT. With the help of our local mls board, I have tried to outline the details below:
About the Tax Credit - Two Stages
On July 30, 2008, the Federal Government passed the Housing and Economic RecoveryAct (H.R. 3221). That legislation contains a provision that enables any individual or household that hasn't owned a home for at least three years to take up to a $7,500 tax credit if they purchased their home after April 9, 2008 and before December 31, 2008.
On February 17, 2009, President Barack Obama signed into law H.R. 1, the American Recovery and Reinvestment Act of 2009. Included in that legislation are modifications to the Homebuyer Tax Credit passed in July. First-time homebuyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009 can now take up to an $8,000 tax credit, reducing their income tax liability.
Who is Eligible
Any individual or household that hasn't owned a home for at least three years is eligible.The home must be a single-family unit (house, condo, co-op), a primary residence and be located in the United States. Income limits are $75,000 for individuals and $150,000 for households. Individuals whose income exceeds the $75,000 limit but isn't more than $95,000 can still take the credit, but on a reduced basis. The same applies to households earning up to $150,000.
How it Works - 2008 First-Time Buyers
The actual credit amount is equal to 10 percent of the home purchase amount, up to a maximum of $7,500. First-time buyers who meet the above criteria and who purchased their home on or after April 9, 2008 are eligible for the deduction on their 2008 tax return. First-time buyers who purchase their home in 2009 can claim the deduction on their 2009 tax return, provided the purchase is made prior to July 1, 2009. Authorization for the credit expires on July 1, 2009.
Paying it Back
To help keep the program cost-effective for taxpayers, the federal government requires the tax credit to be paid back in small, 6.67 percent increments over 15 years. For that reason, some analysts have likened the credit to a 15-year, interest free loan to help make home buying more affordable.
How it Works - 2009 First-Time Buyers
The actual credit amount is equal to 10 percent of the home purchase amount, up to a maximum of $8,000. First-time buyers who meet the above criteria and who purchased their home on or after January 1, 2009 are eligible for the deduction on their 2009 tax return, provided the purchase is made prior to December 1, 2009. Authorization for the credit expires on December 1, 2009. The new legislation does not require first-time buyers to pay the credit back. However, the full credit amount is recovered at the time sale if the home is sold within 3 years.
Now it is best to check with your real estate attorney, your accountant and your real estate agent --- to make sure that you qualify and to keep up with the changing laws. These changes will enable buyers to get more for their money both from reduced interest rates, reduced home prices AND the new tax credit. First time home buyers have a lot to be happy about!
For more information see:
Or contact me at CupaT@aol.com or 201.675.1618 for more local information and assistance.
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