Austin Smith - Goomzee.com

Windermere Sales Professionals Braving the Cold in Missoula, MT.

Today closes a very profitable week for Goomzee. Among other happenings, we delivered Realty Connect to our hometown Windermere office, and had them up and running within two hours!! Happy Selling from Missoula's Goomzee!!

For more detailed information on the rollout, check out our company's blog, here. Don't worry, it's not your normal rigid, stuffy corporate blog. In fact, it looks alot like this one...

Happy mid-January, from Sunny San Diego! Unfortunately, the Inland Empire's falling median home price is a harsh antithesis to the joyous sunshine that is causing the glare on my computer screen. A major headline in NBC-LA's evening newscast last night, DataQuick statistics highlight a 35% drop in SoCal home prices since December of last year. The San Diego-based research company reported an MHP (Median Home Price) of $278,000 last month for the six-county region of Southern California. This figure contrasts harshly with December, 2007's MHP, a dazzling $425,000.

Thankfully, there is a somewhat positive flipside to this cruel coin. According to this morning's Press-Enterprise, San Bernardino County observed the highest number of closed escrows for ‘any December since 2005'. I say somewhat because roughly 70% of these sales were homes that were repossessed when the owners failed to keep up with their mortgage.

Also from The PE: "last month's new home sales were the fewest for a December in Riverside County since 1995..."

In review, while home sales may be up, foreclosure rates are chugging steadily along and MHPs nationwide are falling like ripe avocados. I can't decide whether this is good news or bad news. Home values are decreasing, roundhouse-kicking homeowner equity to the moon and directly affecting America's MHP. But, homes are still selling.

I'm leaning towards good news. We have all been aware since last fall that the RE market was headed for a rough stretch. Inherent in the economic downslide was a drastic plummet of the nationwide MHP, as well as an increase in the rate of foreclosure. OK. Old News. We all saw it coming. It is my belief that in order to breathe life back into the market, we as a nation need to put this sort of bad news behind us and look to what we can do in the future. This is a good place to start. Sure the majority of SoCal homes sold were foreclosures, but at least somebody bought them, right? Am I na�ve in assuming that people buying houses is good for the housing market? What's wrong with people buying foreclosures? Buyers get a good deal, the bank unloads a headache, and everybody's happy. True, foreclosures sold at a lower price serve to worsen the area's MHP. But the MHP is only an average of the price these homes were sold at, not an average projection of the value of your home. Correct me if I'm wrong, but the MHP seems to me to be more of a report of something in the past rather than what can happen in the future.

So what do you think..? Is it just another weapon the mass media wields to keep us scared? Or does the MHP have enough relevance that we should all be stocking up on canned goods and retreating to our bomb shelters?

Half-empty or half-full? Ethereal vengeance or a blessing in disguise? Whatever your view of the industry’s recession, know this: Those who can, will. Those who can’t will cease to be. And simply put, those who can are the agents who are most effective at self- and time-management. Economic duress will weed out the sun-dried agents in your office that aren’t producing, leaving more on the plate for those of you who are hungry and harbor a willingness to manage your time effectively.

The average full time worker, according to Salary.com, wastes 2.09 hours on any given 8-hour day, not including sanctioned lunch or break times. This sort of lax work ethic reportedly costs employers $759 billion a year on salaries for which real, profitable work is projected but not delivered. So how do you keep yourself from becoming just another time-wasting statistic? Follow these steps to become a modern-day Chronos, the mythological figure responsible for turning the Zodiac Wheel and thus, time.

Step back, pump fake…analyze. Just like when making a monetary budget, the first step to time management is to dissect both your ‘spending’ and your ‘income’. How much time are you physically in your office? And of that time, how many hours are spent surfing the web, how many spent reading emails, and how many are spent on the phone? By visually breaking down your typical day you will be able to honestly self-analyze your productivity hour by hour. It will become glaringly obvious that you spend too much time on the Drudge Report and not enough in your MLS database. Doing this will help you to…

…set time limits and plan out your day, the right way. Take the self-dissection one step further and break down what exactly you’re doing on the internet/phone/laptop/Wii. Are you spending your internet time playing flash games and searching for dinner recipes, or are you researching SEO and keeping up to date on the industry? There’s nothing wrong with internet usage, but there is a definite difference between productivity and foolishness. For example: FullTiltPoker = Foolishness. Inman.com’s Daily Headlines = Productive and Informative. If you have one area where you seem to be throwing your time away by the bucket-load, set yourself a designated time-slot or hour-limit and restrict yourself to staying on-task within the specified parameters. For example, as task queues allow, I set aside the 8 a.m. hour and read all incoming emails and new, daily headlines. By the time 9 o’clock rolls around, I’m up to speed on my associates’ happenings as well as the latest and greatest news of the industry. Doing so provides me with a confident base to make sales calls from for the rest of the day and does loads for my mental organization.

Once you have some time slots set aside, it is easier to commence planning out your day. Set blocks of time apart for each individual task; be it how long you will spend in your inbox, what time of the day will be spent on the phone following up with messages, and how many hours will be logged working to better each listing. My father, for example, sets aside several hours at the beginning of every winter week to shovel the sidewalks in front of each of his listings. If he did not purposely allot time for this, it would never get done. But he makes a point of it, and it has worked well to improve his standing with the neighbors, homeowners, and developers around town.

Speaking of being organized…it’s always a good idea to take a minute and organize the spit right out of your computer. My ‘Bookmarks’ tab is as organized as the National Library of Congress, and the same can be said for my ‘Documents’.

Most of the agents I know don’t stop at owning one computer. They have the office desktop, the home desktop, and the portable laptop so the office can join them on vacation. So how do you maintain continuity between home and work? Some tricks: make an effort to set up your folders in a mirrored fashion. Since most of the files will be the same, the only variable is the way you categorize. Set up folders to look exactly the same on all your hard drives. Speaking of hard drives, if you have issues with transporting files, consider investing in an external hard drive. These are basically jumbo versions of the common 2GB flash drive, and are available anywhere from $50 - $200.

Another trick: don’t underestimate the power of a ‘New Folder’. When you begin compiling files and end up with two or more of like-mindedness, put ‘em in a folder. And then put that folder in a folder. And then…you get the idea. My Documents are set up to contain one master, constantly changing folder entitled ‘Ongoing Projects’ surrounded by multiple broad storage folders, ranging from ‘Blogging’ to organization-specific folders containing organization-specific documents. As soon as I finish a task or project, all pertinent documents kindly remove themselves from my ‘Ongoing’ folder and distribute to a surrounding storage container. This helps me to find documents very quickly, both old and new, and I encourage you all to take some time and organize every last file on your hard drive. If nothing else, at least you’ll look busy…

Do work. Lastly, but possibly most important, it is imperative that you leave your personal life exactly where it belongs: at home. Remember your first job, where you weren’t quite sure what was expected of you, but still had the good sense to know what not to do? For example, no one had to tell you that you weren’t to use the office computer to check your MySpace or play games, or that you weren’t to be using your cell phone in view of customers, let alone the boss. And, of course, no napping! A good rule of thumb for the office: if you wouldn’t do it when the boss is around, don’t be doing it at all.

“But Austin,” you may say, “I am my own boss! How can I be kept accountable?”

The answer is simple. If you truly want to ‘make it’ in this day and age; if you sincerely hold the desire to work hard and close listings; if you are serious about being a profitable real estate agent; then you are the type of person who will know when you aren’t helping yourself. Plan your day like you would want a hypothetical employee to plan their day. Industry experts say this: Success for tomorrow starts today. Take the 4-5 p.m. hour to plan out exactly what you want to accomplish when you come back the next morning. Doing so will not only assist your next-day productivity, but the ‘cool-down’ period will ensure that you leave the office at the office, and are better capable of picking up the reins at home when you set down your briefcase.

In 2007, Forbes Magazine published a list of the 9 most commonly aroused fears. Included on the list were spiders, snakes and bats (oh my!), confined spaces, heights, and public transportation. Surprisingly, there is something else that most people fear more than death: public speaking. Apparently, many out there are afraid of embarrassing themselves in front of large groups, especially in a business setting. Who knew?

Well, don your backpack and grab that Batman lunchbox, ‘cause we’re going to speech school!

In any public speaking setting, it is important to accurately identify your audience. Some may say ‘target’ audience, but there is a definite difference between the ‘target’ audience that you’re trying to reach and the physical audience that is actually listening to you. While this may seem like a no-brainer, improper interpretation of your audience’s viewpoint will lead to one or both of the Two B’s: Boos and Blank Stares. Especially when presenting to investors, you have to place yourself in their shoes and attempt to determine what they are looking to get out of your presentation. Let’s run with the ‘investor example’.

When evaluating a new startup or investment opportunity, investors are simply wondering if the product being offered for review is compelling enough to warrant a funds transfer. That said, the whole process should be looked at less like a shakedown for cash, and more like the presentation of a valuable idea to those who have the ability to make it a reality. If you’ve created something that truly is of value, you’re doing your audience a favor by asking them to invest. Keeping this in mind, here are some tips to help you knock your next presentation out of the park.

Q: What is my business model? A: Investor Kryptonite. Fact of life: Business models are not made of concrete. They change, and change often. For this reason alone, refrain from making the meat of your presentation the same cut as your business plan. Potential investors could care less about how you speculate you will be making money in the coming years. Instead, narrow down one problem you are actively and successfully working to solve, and base your presentation around that. The boardroom will look at you like a much smarter person when you show them the steps taken to solve important industry issues. Besides being a waste of precious presentation minutes, business plans are nothing more than assumptions; if you have a particularly shoddy one investors will walk away thinking of you as “the company with the terrible business plan” rather than “the guys who are solving important problems”.

Those kids and their PowerPoint… Another surefire way to sabotage an investor presentation is to drop the ball when it comes to slideshows. This is most likely due to an ill-founded viewpoint of the actual role held by PowerPoint presentations. To set the record straight, the slideshow is a supplement to your presentation; it is not your entire presentation. Rule Number One: DO NOT Recite your slides. Rule Number Two: 20 words per slide, no more. Since Homo sapiens speak in sentence form, the easiest way to follow Rule Number One is to craft your slides to contain bullet points of no more than, you guessed it, 20 words per slide. This way, you can maintain eye contact with the audience while the slideshow advances behind you, augmenting your sentences with hyphenated detail. A minimal amount of pictures is a safe bet as well, reducing the clutter and amount of distractions. The audience is supposed to be reading you not the wall, after all.

Vite, vite! Lui l'arrêt! “Quick, quick! Make it stop!” Experts on the subject say you should aim to finish within 20 minutes, but will be interrupted so often that most of the time a presentation will stretch to 40 minutes. Regardless, most will agree that investors will judge your performance/business within the first 30-60 seconds, and if you don’t perform in that time frame, no mas cash. It is also considered best practice to progress rapidly to a product demonstration. Demos explain better than words, which is especially helpful in solicitation situations where people who are bad at explaining are presenting to people who are bad at understanding. Incidentally, this describes most investor presentation scenarios.

Fundraising is selling, not storytelling. Truer words were never spoken. When presenting, you must effectively sell not only your idea, but yourself and your management team. At this point, real estate agents have an advantage due to their independence. Investors want to know if you have the ability within the ranks of your personnel to put their monies to good use, so in this way it is easier on the presenter if they are only selling themselves. In the case of a team, touch on each member’s experience and how this relates to your team’s collective ability to ‘execute’. While it is certainly more productive to have only one member of the team actually speak during the presentation, if somebody happens to be highly specialized in a specific area a one- to two-minute interjection might be in order.

In order to effectively sell yourself, you must project mass amounts of confidence and poise. Nobody likes to give money to an apologetic ‘sob’ who doesn’t know his product well enough to stand tall and present with confidence. In order to be confident (and in turn project confidence) one must be familiar with every intricacy of their product or idea. If you happen to be presenting an opportunity rather than a startup, perhaps a condominium development still in its pre-development stage or something of that nature, take some time to anticipate and prepare answers for any questions you think will be raised. Do a bit of research on zoning regulations and estimated development costs, as these will have an effect on the way the buildings will be constructed and will enable you to offer the most complete and custom tailored quote to potential investors. Make projections of the time it will take until the property will be placed back on the market, or on the specific amount of money they will have to invest until they realize a worthwhile return.

Beyond the actual content you present, of equal importance are the techniques you employ when speaking to a group of people. Since public speaking is an unavoidable part of life, and since most people are more afraid of speaking than they are of death, I thought I might share some tips on the art of speech itself. Every presenter, nervous or otherwise, should, upon taking the stage, locate the red-glowing ‘EXIT’ sign that will be inevitably perched somewhere near the rear of the room. When times get tough, the EXIT sign can be your greatest friend. You will maintain a sort of eye contact with the audience, but without actually looking them in the eye. The EXIT sign will also serve as a non-distracting anchor point, so when you happen to be making a particularly complex point or you are simply having trouble remembering your content, fix your peepers on the red letters and let your thoughts flow uninhibited. This little trick can help prevent that embarrassing situation where you forget what to say next and the audience’s expectant collective face is doing nothing but providing you with a healthy case of speaker’s-block. Speaking of the audience, make sure you keep some form of eye contact at all times, however painful it may be, and always aim to speak to the back row. You will unconsciously speak in a louder tone, ensuring that no one is straining to hear your words. Also, it is important to speak slowly and enunciate every word, or the people in front of you will be dropping like flies. The acting community has a saying when reciting lines: “If you feel you are speaking too slowly, you are at the correct pace.”

Always remember that your main goal is not to educate investors on every minute aspect of your idea, but instead to simply sell yourself, convincing them that you are worth talking too again. If your product, startup, or empty lot is worth your time, then is it not also worth the time of the potential investors? That said, go into the meeting with the mindset that you are doing them a favor by presenting. You’re not looking for money, you’re looking to progress your business. Explicitly highlight how the other side of the table will benefit from a partnership. Create a sense of urgency by plotting a timeline for an increase of value, rather than plotting out all the reasons you need the money (e.g. Rent, Payroll, New Software, etc…). And remember, you are there to sell, not to story-tell.

When I began plotting out this week’s post, the topic I had in my sights was a how-to on home staging. But then I remembered, “Hey, it’s Christmas tomorrow. Nobody wants to hear about something that might resemble work.” Sadly, by the time I had this realization an hour of research had been logged and I had a full page sitting before me of transcribed brainstorming. Well, “waste not, want not,” Mom used to say. Since I can’t disregard my mother, today we will make use of all we have learned about home staging and apply it to our lives, together creating something of a New Year’s Resolution grab-bag.

The first and possibly most important thing about home/life staging is this: Clear the Clutter. These pictures, posted by Michelle Minch, illustrate just how important cleaning up your living space is. Whether you’re trying to sell a house or just get dressed in the morning, everything comes together rather painlessly if you are organized and making the most of the space around you. This could be as simple as buying a bigger hamper or a Rubbermaid that fits under your bed. Or you might make a circuit around your house and/or office with a black trash bag, tossing out anything you’re sick of or whatever happens to get in your way. The goal is to get your possessions whittled down to a point where they each have their own place and aren’t overflowing into other possessions’ air space. Doing this will eliminate the “Where’s Waldo?” method most people employ when looking for a pair of socks or a can opener. Being organized and knowing where things are will reduce daily stress exponentially, in turn affecting the way you interact with clients and even the way you look at your day.

Another important facet of staging is the way you Put Your Color Scheme to Work. In a living room, this might mean matching a throw rug with a new roll of wallpaper, or applying a fresh coat of paint to accentuate the warm breath coming off a hardwood floor. As far as life goes, this concept doesn’t mean so much that we should match our overcoat with our car’s paint job, but instead that we should strive to achieve a harmonious living environment. A wristwatch will cease to tick if a cog is misplaced, and the same holds true for our day to day. Strive to keep every facet of your life working in congruency rather than competition. This could mean seeking membership at a gym located between your office and your kid’s school, minimizing your commute. Or maybe you could begin keeping a coffee maker on your desk so you have one less thing to worry about when leaving the house in the morning. Taking small steps like these to hurdle the logistical barriers in your daily itinerary will help make things seem less overwhelming and soon the halting progress of your daily grind will become more like a purring, well-oiled machine that just won’t stop.

I recently read a story of an agent in the midst of staging a home who removed a picture from its mount, only to reveal a before unseen set of windows providing an uninhibited view of the property’s most valuable asset: a pool-touting, fully landscaped backyard paradise. You might ask, “Why would the homeowner want to cover up a set of windows?” Well don’t ask because I don’t know. I do know that windows are one of the most important parts of our lives. Why? Well, why does the caged bird sing? I’ll tell you: the caged bird sings so that he can forget for a few moments the cruel reality of not being outside. When we are ‘caged’ in our homes, windows to the outside world remind us of the people in our lives, the places we go, the things we have seen. Windows let us travel through our memories, thinking back on bygone days spent looking out windows in much the same way you are now; the only difference being what’s on the other side. Alright, alright, what does all this have to do with my life, especially after New Year’s? In truth, windows have as much to do with New Year’s as the Easter Bunny, but the point I’m trying to make here is that the memories and opportunities provided by windows are the reasons we should sing. Why does the caged bird fall asleep when you cover him in a blanket? Well, because you just took away his only inspiration for song.

True, the Christmas Spirit has been known to turn even the burliest of men into sentimental sobs whose eyes water at the sight of puppies and babies and anything wearing antlers. But is that necessarily a bad thing? After all, sentimentality is just an enzyme in the brain sparked by whatever happens to be on the other side of the window. Is it so bad to be labeled a sob for one day out of the year? No! You go girl, fawn over those puppies! This holiday season, don’t be afraid to get caught up in it all. Find joy in giving the gift that makes your friend smile; don’t stifle the urge to enjoy cheesy Christmas specials with your kids; and don’t forget to take a good, long look out your window tonight. We will never be able to get Christmas Eve, 2008 back, and some of the people that are standing with us around the window might not be here next year to enjoy the view. I don’t say that to discourage, but instead with the hope that you all will take the time to cherish the inside of your ‘cage’, step back, sing a song, and hopefully realize that the meaning of life is just that: living.