Kevin Byrd

The close of the year often begs a retrospective approach to the events that took place-good, bad or otherwise. The sharp edges are often dulled in hindsight, motivated by the desire to put it all behind us and move on to the fresh promise of a new year. For those of us in the real estate business, however, the look-back at 2008 is not quite so sentimental. Faced with varying degrees of challenge and crisis, real estate professionals from all walks of life have suffered the wounds of a thorny year.

But many forged ahead and will continue to do so; some lucky few are even expecting business to pick up in '09. But, then again, it really has nothing to do with luck. It has to do with understanding and adopting the paradigm shifts swiftly taking root in our industry. The game has changed for good and you'd better have the new rulebook.

As we enter 2009, let's take a look at the industry's most significant paradigm shifts. Don't mistake these for trends; these are long-term, if not permanent, foundational changes to the way real estate will be conducted in 2009 -- and well beyond. If you haven't embraced these shifts yet, start now. They are critical to your survival and bounce-back in the real estate business.

1. Accepting Economic Reality

While maybe, deep down, we naively hoped that writing a $700-billion plus check would instantly infuse new life into our failing economy, it's important to realize that overall economic health is far down the road. And, according to most real estate pundits, the boom years of the early 2000s will probably never be seen again.

Why? For starters, unbridled price appreciation is most likely gone for good. Blamed, in fact, for many of the ills of the housing market and, in turn, the economic mess, skyrocketing housing prices, combined with pernicious loans, led to most of the problems we are feeling today as homeowners, real estate professionals and American consumers in general.

Sure, it's tough; but it's not over. Success in this business will only come with a full acceptance of the current state of the economy -- a state likely to stick around for a while -- and learning how to operate within the new business model it presents.

To stimulate sales, brokers and agents have to restore consumer confidence in the housing industry. Know your local numbers, he says, not just by zip code or city and state; drill the numbers down by price, property type and neighborhood, and share the numbers with sales associates on a weekly basis.

2. Waning Consumer Confidence

With all the talk about consumers "sitting on the sidelines," unfortunately, there are many who've now moved from the "sidelines" to the parking lot. The economic meltdown that began in late September has left many consumers less worried about selling their homes, and more worried about keeping their jobs and paying their bills.

"We have this mindset across the U.S. that I call, 'recession, depression, obsession'," explains Ron Peltier, chairman and CEO, HomeServices of America. "With all of the negative media, consumer confidence is at an all-time low. In business, in general, 70 percent of the GDP (gross domestic product) is driven by consumers. We are in for an extended recession, perhaps even depression, if you talk to some people. And, if we continue to obsess over that, people will hold tight.

"Our job is to make consumers understand why real estate is still a smart investment," he continues. "We need to take the proper initiative in each market to get to the news media and talk about the very things we know ourselves-yes, the market corrected and yes, values have dropped, but over a five-year horizon, real estate is still a great investment and very safe. If consumers embrace that, we believe that there will be buyers."

3. The New Lending Landscape

While industry professionals continue to examine the bailout bill and its possible effects on the housing industry and America at large, many lending institutions are taking the problem into their own hands and offering programs and support systems to families across America. "We will work with families who want to save their homes but are struggling to make their payments," says Charlie Scharf, CEO of Retail Financial Services at Chase, one company that's being proactive in today's uncertain market.

With the lending landscape continuously changing, institutions are modifying their practices to best suit the needs of homeowners. In fact, for the first time in 30 years, HUD revised its RESPA rules in order to restore trust in the housing market. "The new RESPA rules seek to bring more clarity and certainty to the real estate market," says Steve Preston, HUD secretary.

In addition, the government bailout that was approved in October was recently revised. Regulators were given the power to change the plan, hoping to gain the support of all Americans.

Whatever the outcome, agents and brokers must step into the role of financial adviser to guide clients through the new lending waters. Make sure your knowledge of the latest bills, restrictions and credit guidelines is encyclopedic.

4. Creative Cost Control

When the going gets tough, budgets get slashed. It's a basic business fact of life. But for the successful broker and agent, cost cutting is not random, but rather, a highly creative and refined process. Rashly cutting your marketing budget, for example, can diminish your presence in your respective marketplace, stem the flow of leads and give your competitors a chance to step up and reclaim market share.

Look to more creative cost-cutting ideas instead. Look to those areas that will save you money without reducing your prowess and reputation. Chad Ochsner, president of RE/MAX Alliance in Denver, for example, devised a clever way for his agents to save money while also giving an important nod to the environment. This past summer, in the face of dramatically escalating gas prices, Ochsner's agents asked clients to narrow down their home choices online in order to streamline driving time during showings. Agents then charged clients a gas surcharge for any above-and-beyond time spent driving to scope out homes.

Gino Blefari, president and founder of San Francisco-based Intero Real Estate, recently told the audience at RISMedia's 13th Annual Power Broker Forum that he managed to cut $1 million from his budget. Among the laundry list were seemingly insignificant items, like getting rid of the "exotic coffee machines" and becoming a green operation. If you're of the mind that the little things don't matter, remember that every item contributed to Blefari's $1 million savings -- a savings, by the way, that's allowing him to grow his franchise and open new offices.

5. Seeing Real Estate Clearly

The wealth of information online is experiencing exponential growth on a daily basis, taking transparency to a whole new level. Consumers want more information-and they want it fast. Real estate verticals such as Realtor.com, Zillow, Trulia and Point2 have become mainstays by offering the ability to view millions of listings and their photos.

"The bottom line for an agent with a listing is that you want that property viewed by as many people as possible," says Kaira Sturdivant Rouda, president of Ohio-based Real Living. "Partnering with listing sites is the way to do it. Listing data today is ubiquitous. The more credible places your listing appears, the better."

Another sign of transparency: collaboration. From Realtor.com's recent agreement to list FSBOs from forsalebyowner.com to RISMedia's own partnership with Realtown.com, real estate's top players realize that working together will deliver even more to consumers.

To that end, companies such as Yahoo! Real Estate, Trulia and Zillow have even adopted a new standard data format for the distribution of real estate listings online. With this standard, listing providers will be able to distribute their listings data to several of the leading real estate sites in one common format, making it easier to get critical information to consumers faster and more efficiently.

6. Differentiation That's Actually Different

Agents have long touted their differentiation in their respective marketplaces. But the reality is, claims of offering the "best service" are prevalent and getting old, especially in a down marketplace where consumers are seeking serious financial advice. Truth be told, most consumers view all real estate agents as more or less the same, and for the most part, not very favorably. According to a 2006 Harris poll, in fact, real estate agents ranked last out of 23 professions in terms of prestige!

To truly stand out in today's real estate marketplace and dispel poor perceptions, agents need to increase their professionalism by becoming an expert resource and provider of consumer-relevant information. RISMedia's recently launched Top 5 in Real Estate Network®, for example, offers agents a way to promote their differentiation and elevated status to consumers by providing consumers with the high-level information they crave. While we all love a good recipe, these are serious times that demand serious information.

7. Bye-Bye, 'Back to Basics'-Hello, 'New Deal'

Disclaimer: Mastery of real estate fundamentals is, of course, very important. That said, it's not nearly enough to hang your hat on. Real estate professionals who wish to be around for the long-term must embrace new ways of doing business, starting with the messaging they are sending out in their local markets.

"In 25 years, I can't recall a marketplace like this," explains Allan Dalton, president, RISMedia's Top 5 in Real Estate Network®. "In my travels, I hear, 'We've got to get back to basics,' but no one describes what that means. We have to be cautious before being that nostalgic. The problems we have are far more pervasive. We don't need to get back to basics. We need a 'New Deal.'"

According to Dalton, agents have to change the way they market themselves as an industry. "We have to change the messaging. Never before have consumers been in greater need of being persuaded and never before have so many not been persuading them," he says. "Our job is to inspire the consumer. We have to put a tourniquet on the bleeding on where the market is going."

8. Real Estate's New Face

If you're among the few who view the multicultural market as a trend, you're missing the boat-and a wealth of real opportunity.

"Growing your business in the midst of a major economic correction is not the first thing that comes to mind for most organizations, but the customer segment that the industry has traditionally overlooked may now be our economic lifeboat," says Oscar Gonzales, founder of the Gonzales Group. "Since 2000, we have seen a significant shift in the profile of consumers as the multicultural consumer has grown both in population size and buying power."

In a real estate market that has us all on our toes, a comprehensive understanding of the rapidly growing multicultural market can only help. Real estate professionals can capitalize on this market segment if they take the time to learn about and understand these cultures.

"What's been eroded in this industry is trust," says Robb Heering, founder and CEO of Casa Latino Franchise Corp. "Multicultural consumers need to be educated on how the home-buying system works as well as on the value of credit and banking."

9. Targeted Technology

It goes without saying that technology is an invaluable tool for today's real estate professional.

Today's successful real estate companies have made it their mission to equip real estate professionals with the tools they need to reach consumers. Listing homes online isn't enough anymore, and VuVista is one example of a technology company offering more in today's market. "Our new iVuZoom technology allows us to take the virtual tour concept one step further and deliver an immersive and interactive virtual tour," says Steve Marques, president and COO, VuVista. "For the first time, you can have a 360- or 180-degree panorama, stop the picture and zoom in to see precise details."

Also, as cell phones continuously infiltrate the real estate industry, the mobile search concept has taken off and changed the way agents and consumers share information with one another.

Not only are technology companies targeting the Internet, but BlackBerries and iPhones have become a common information-sharing avenue as well. By: Maria Patterson, Stephanie Andre, and Paige Tepping, www.rismedia.com

Kevin W Byrd
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Renters in Fannie Mae-Owned Foreclosed Properties Eligible to Stay in Their Homes

Fannie Mae (FNM/NYSE) today announced the establishment of a new National Real Estate Owned (REO) Rental Policy that will allow qualified renters in Fannie Mae-owned foreclosed properties to stay in their homes. The company currently has an eviction suspension in place through the end of January which will allow for the new policy to be fully operationalized prior to the suspension concluding.

"Renters in foreclosed properties have often been a casualty of the foreclosure crisis the country is facing," said Michael Williams, chief operating officer of Fannie Mae. "This policy will allow qualified renters to remain in Fannie Mae-owned properties should they choose to do so, mitigate the disruption of personal lives that foreclosures can cause, and help bring a measure of stability to communities impacted by high foreclosure rates."

The new policy applies to renters occupying foreclosed properties at the time Fannie Mae acquires the property. Renters occupying any type of single-family property will be eligible including residents of two- to four-unit properties, condos, co-ops, single-family detached homes and manufactured housing. Eligible renters will be offered a new month-to-month lease with Fannie Mae or financial assistance for their transition to new housing should they choose to vacate the property. The properties must meet state laws and local code requirements for a rental property.

While the company markets the properties for sale, Fannie Mae will manage the properties through a real estate broker or a property management company. The company will not require security deposits to be posted in connection with this program.

Renters in the foreclosed properties will be asked to pay market rate rent under the new leases. Rates may be determined by reviewing local comparable rents, conducting a neighborhood survey, or through other relevant indicators. Rates will also be subject to any legal rent control restrictions. The company will review each instance where the market rate may require a tenant to pay additional rent and will work to reach an equitable resolution.

On behalf of the company, property managers are contacting renters in Fannie Mae-owned foreclosed properties to notify them of their options. For more information, please review the policy FAQs at fanniemae.com.

Kevin W Byrd
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Recent research uncovered almost eighty reasons yes, your read right -- why customers dislike salespeople. Here are just the top seven. With the New Year upon us, it's a great time to review our actions as salespeople to make sure we're not guilty of these.

1. Not listening. This was the most cited reason customers dislike salespeople. Too many salespeople neglect to listen to what their customers or prospects say, which means they fail to address the key issues that their customer has emphasized. I remember one interaction I had with a couple of salespeople a few years ago. One of them asked some great questions to learn more about my particular situation. However, his counterpart did not listen to my responses. A as a result, his solution did not address my business challenges and buying requirements. In fact, his presentation was so far off base, I abruptly called an end to the meeting. Time is a precious commodity for people, and when you don't listen you disrespect your prospect.

2. Talking too much. It still amazes me how many salespeople think that telling is selling. I see this in virtually every type of sales environment. My personal belief is that your prospect or customer should do most of the talking in a sales conversation. Salespeople react to this idea with, "But if they're doing all the talking, how can I sell my product?" The key is to let your customer do enough talking so that you can properly present a solution to their problem or situation.

3. Lack of knowledge. In today's information-rich world, there is no reason for a salesperson to lack knowledge about the products and services they sell. I was recently impressed by the person who gave us an estimate on a new roof for our house. He knew his products and was able to speak intelligently about them. I know that the life-cycles of many products are very short and that many companies introduce new products at an alarming rate; however, if you don't know enough about your products, you are going to lose your customer's respect -- and, in all likelihood, the sale. Do yourself a favor, and invest the necessary time learning about your products and services.

4. Lack of follow-up. Many sales people say they will do something then fail to follow through. This ranges from promising to get information to taking care of a problem or concern. Many people use this as a barometer before they make a final buying decision. Here's how:

A potential customer asks for a particular piece of information and the sales person promises to deliver it by a certain date. The deadline passes and the prospect has to call and remind the salesperson. Because the sale has not been finalized, warning signals sound in the customer's mind. After all, if the sales person is this slow to respond before the sale is made (the courting stage), how long will it take him to respond after the sale?

Lack of follow up results in lost sales. A person contacts two or three companies about a particular product or service. All three initially respond, but only one makes the effort to follow up. Who is more likely going to get the sale?

5. Lying. "I don't care about the customer, and I'll tell them anything I have to in order to get the sale." Believe it or not, I heard this comment from a participant in one of my sales training workshops. Unfortunately, the number of salespeople who lie or intentionally mislead their customers is staggering. This behavior includes overstating the capabilities of your product, stretching the truth or giving people the wrong information. Almost everyone has bought a product from someone who was less than truthful, and, as a result, has become more skeptical with their buying decisions.

6. Failing to understand their needs. This is an extension of the first two reasons customers dislike salespeople. When a sales rep talks too much and listens too little, they don't get a full understanding of their prospect's situation. I have worked and interacted with thousands of salespeople over the years, both as a trainer and a buyer. I can state without hesitation that a mere 20% of them actually take the time to understand their customer's needs, situation, concerns, etc. And it's this group of individuals who are the most successful.

7. Refusal to take "no" for an answer. Almost everyone in sales knows the importance of persistence and answering objections. However, there is a fine line between persistence and stalking. While you shouldn't drop your efforts after the first "no," it is critical to recognize that you won't gain anything by pressuring people. In many cases, the reason someone declines your offer is because they don't see the value in your product/service, or because they are not a highly-qualified prospect to begin with.

Let's all avoid these negative sales actions in 2009. By: Kelley Robertson, www.salesandmarketing.com

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Kevin W Byrd
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