Bonnie Cox Real Estate Musings

Most people don't like change.  It means having to re-adjust routine, change habits and throw your order of process into upheaval.  You are leaving your comfort zone.  Most people don't want to do this, so those people fail.  Even when that change could mean something GOOD people balk.

 

Real estate is no different.  You're used to a sellers market, bidding wars and offers that ascend from the list price.  Well gone are the days you could just punch a for sale sign in the yard and have several offers on the table in front of your customer in a week.

 

I keep hearing the old saying over and over again in my head:

 

If you keep doing what you're doing . . . you're going to keep getting what you're getting.

 

When my income, my open house activity and my listings hit a plateau and I wasn't at my goal, I knew I had to do something different.  I totally believed in what I was doing, I enjoyed it, but it became routine.  When that happens a complacency takes effect and it's picked up in your presentations, your follow ups, and even phone communication with your customers.

 

Somehow, you realize that you have gotten away from your purpose, but you are doing everything you know to do, and nothing new and exciting is happening.  This also happens when you TRY to do something different, but slide back into the same habits and routines because they are COMFORTABLE.  Even seasoned agents run into these roadblocks.

 

When I began working in real estate, I was excited.  It wasn't because I saw all this potential money in it, because it really wasn't about income.  The subject matter of that site was something I was passionate about because its focus was on helping people find that perfect home . . . something I really never had. 

 

I jumped right in with just my passion alone and not much substance (knowledge) and I was getting lost.  I had to stop and take a step back to see where I was going.  Sometimes when your nose is to the grindstone, you can't see the goal in the distance.

 

I was always used to working alone in everything.  Even with my marketing business five years ago, I did everything alone.  I tried partnering up with an old pro in my office.  That gave me a whole new perspective and fresh look at how things are done.

 

That's when I felt it.  And that's when I began re-animating!  I took the focus off myself and trying to accomplish 2001 sales in a 2009 market and instead focused on helping the very people that this  market victimized.  I began going about my business with a consultative point-of-view, not from a sales point of view.  Then I realized something!

 

I REALLY DID want to help people!  I had been there!  These people weren't looking for the same huge prices they used to be able to command.  They wanted someone to understand!  They wanted out from under and they wanted help.

 

I have seen agents who weren't used to working as hard, who got into the business during the bull market of real estate, freeze up.  Some have left the business.  Those who saw the underbelly of what was really going on stuck around.  The agents that really wanted to help people.

 

Now even though this is a rather extreme example of fear of change, but it was an eye-opener and a wake-up call.

 

Give a little something.  You don't want to just take money from people, there's no fulfillment in that.  You want people coming back because they believe you.  They trust you.  Make them feel good about hiring you, recommending you.  The more you give, the more you will get in return and the more fulfillment your real estate business will give you.

I was surprised to see how many open houses there were listed in MRIS today.  I am not holding one myself, but I will be attending a couple of them.

Memorial Day weekend is a great time to hold open houses, have yard sales, etc.  A number of our agents here expect a huge turn out.

Remember, not every Open House is going to yeild a contract on your house.  We've seen less and less of this today on our local market here.  But it certainly is a great way to drum up some leads and get your cards in people's hands.  Almost everyone that comes in that door is either looking to buy now or in the future, or knows someone that is in the market to buy or sell.

I have been torn on the idea of holding anything on Memorial Day weekend because I think the holiday has been commercialized just as much as any other holiday.  However, holding that open on the Sunday before the holiday keeps me from feeling that I'm treading on the memories of our soldiers.

It's also a time when family from out of town is visiting.  If they are thinking of relocating, there couldn't be a better time to go see some houses in the area, since they are already there.  I have seen a trend lately of family wanting to get together in these tough, economic times, for support of each other and being close enough to help out if needed. 

Retireing moms and dads moving closer to their children, who have children of their own that may need babysitting, families getting bigger homes so their parents can live with them, siblings just entering the workforce who purchase together because they otherwise couldn't afford to do so.

Don't be afraid to hold opens on holidays.  I've met two people during our last open house that both purchased their previous homes on Mothers day! 

In Harford County, on the 26th of May, the county council will be voting to raise property taxes in an economy where the private sector has lost jobs left and right, homes are losing value, people are getting foreclosed on, and amazingly, the only people that are asked to tighten their belts are the very people that are suffering from financial malnutrition in the first place!

I know there have been quite a few counties in Maryland coming up for council meetings that are voting on this same issue (whether or not to raise propety taxes).  You not only need to be out in force for your own interests, but for the interests of your customers as real estate agents.

A great way to build rapport and keep your names in your customers minds is to keep them on top of what is happening with property owners rights in your local area, your state and federally.  Let them know what is about to happen to their taxes, their property and income.  You can accomplish this without appearing partisan politically, but partisan for your customers interests.

Stay vigilant and keep your customers informed.  They need you now more than ever!

 

 

 

Everyone has heard of the staple books in positive thinking, like "The Power of Positive Thinking", "Think and Grow Rich" and  "Hung by the Tongue".  Anyone affiliated with any type of marketing has been told to "Just go and get these books".  Little is understood of the power of the concepts within these books.

 

It's not just your attitude . . . it's your actions.  How you put your thoughts into words matters when people are coming to your office to decide if they are going to use your services . . . or not.

 

What am I talking about?

 

Let us assume that everyone knows that people are more likely to make purchases when they are in a good mood.  One would assume that if you can make people feel good, then you are more likely to get them to buy from you.

 

Is that a safe assumption?

 

Now, in real estate, how do we do that?

 

Take a look at these two examples:

 

Agent 1

 

"I'm tired of seeing people get ripped off  by using THAT broker . . ."

 

Or

 

"That agent isn't doing you any favors, why don't you let me sell it for you."

 

Be honest with yourself and tell me that hearing how bad another company's products or services are doesn't turn you off.

 

It surprises me how many people use competition bashing to sell their own product.  The LAST THING you want to do is remind people that they can get ripped off real estate.  It's a very unprofessional, amateur method of asking for a sale.

 

Studies have show that people respond to positive reinforcement.  This is evident in just about every means of communication.  It is no different when reading information on a website or talking to a customer while on a listing appointment.  If you are using any other methods of marketing, like a newsletter, special reports, follow up emails, or text ads, you want to remember this simple principle when creating your copy:

 

Positive Sells!

 

 

Here are some other examples of different web site copy I picked up off the internet:

 

Website from agent 1

 

"I am a multi-million dollar producer. 

 

Website from agent 2

 

"You want to command a premium price for your home.  Let me walk you through a few steps to improve curb appeal"

 

Which agent would you feel more inclined to purchase from?

 

Did you notice the positive approach of Website 2?  The "I's" are replaced with "you" or the customer.  They don't care what you know.  They don't care how much you have accomplished.  They called you so they more than likely already know. 

 

They want to know how you are going to help them.  What can you do for them.  Mention your accomplishments on your website by all means, but the focus should be on your customer.  Write your copy as if you are speaking directly to them.

 

Here's another, more subtle example:

 

Agent 1

 

"Many will lose their chance to cash in on that $8,000 credit if they don't go to settlement by November 30th.  Don't you be one of them!  While others are racing ahead of you, you will be sitting out in the cold, wondering where it went!"

 

Agent 2

  

"You are smart in starting this early enough to take advantage of that $8,000 tax credit."

 

It's the same "limited time offer" technique with a completely different focus.  Agent 1 tells the person what they will lose whereas agent 2 congratulates the customer in taking the initiative and focusing on what they will gain.

 

Injecting positive words, positive motivation and positive outcomes gives Agent 2 more credibility and makes the person reading it feel good about themselves, like they've already accomplished something.

 

People don't like being turned off.  They don't want to hear about the bad things that can happen to them; especially in this market where many are facing enough bad things happening. 

 

What you want to do is empower people when you are consulting with them, writing your ad copy or web site copy.  Put them in the position of seeing their success.  Congratulate them on the time they spent researching realtors before deciding on you. You want them to want to be around you.  More importantly you want them to recommend you! 

 

Internet marketing, once you get good at it and gain a little recognition, is a heady, seductive high.  This is what I did for a living before I ventured into real estate.

In the eleven years or so that I've been on the internet, I can proudly say that I have been the Empress of Email, and I have also seen exile.  With the first few deals I put together online, I was on my way to internet fame.  I became good at wheeling and dealing, I was persuasive.  I was courted by network marketing companies, sales team leaders and affiliate managers alike to train their sales people, sell their goods, or write a testimonial.

From 1999 through 2005, I either assisted, partnered with, or created myself:

A 1500 person sales team in one affiliate marketing company

Launched one lead generation and management company from $0 to over $2 million in revenue in less than a year.

Partnered with another to launch another lead generation company.

Was a leading revenue producing advertiser for five different companies.

Launched my own lead generation affiliate program

Published two newsletters and an e-course on internet marketing

Owned my own advertising company and developed international and fortune 500 customers.

Was invited to speak or train at conferences, launches and seminars

 Stop!

 

Yes it did.  It all came to a stop.  It was painful and it was costly.

The reason my services took off in the beginning of my "Hooked-on-Marketing" chapter of my life in the first place, was because I went out of my way to help people.  I enjoyed the interaction, the camaraderie, the successes I felt that I helped others in creating.  People whose faces I never saw became like family.  I was making money hand-over-fist and I felt good about myself and what I did.  I felt useful!  So what happened?  Why did it all come to a stop?

Money.  The number one reason anybody does anything stupid. 

I did two things wrong.

1. I began making decisions based solely on money. 

2. I did not prepare for growth.

I couldn't delegate tasks.  I wanted to handle it all.  I wanted responsibility for it all.  I wanted to be the boss.  I wanted to be in total control.  (looks really stupid when it's written down, doesn't it?)

One by one, things started falling apart.  The same thing can happen in real estate.

New people getting in (hello!  wave, wave!) wanting no part in sharing a deal because of money, pride . . .whatever else you want to throw in there.  More experienced real estate agents that get so busy that details of deals fall through the cracks or their customers feel as if they are waiting on hold with Comcast and there seems to be no personal interest from the person that's getting 3% of their proceeds from the sale.

If service is going to suffer because you become successful, consider hiring an assistant or better yet, teaming up with another agent.  It doesn't have to be permenant.  You can even do this on a couple of deals just to get through a busy period.  Regardless of how busy you become, you make sure your customers get the best possible service, or they will go elsewhere.

This is a tough market.  There are hungry agents out there that are more than willing to help you or better yet, take over for a customer that cancels a contract because they are not happy.

Leave your ego at the poker table.  Don't sacrifice smaller, yet more loyal customers to go after the business of one big sale that may not even sign with you.  Your reputation is everything.  There is no deal out there big enough to replace your reputation.

The morale of this story, which is most probably not only mine, is this.

Remember the purpose in which you set out to do something in the first place, and remember it as offers are flying at you.  You do what is right, what is ethical and what is in the BEST interest of your customers, and the money will come.

 

Real Estate Agents Who Care

 

This has been a real heart breaking year for me as a real estate agent.  Never once did I think I would be faced with trying to sell a house for a friend that was in the process of losing it (foreclosure).

I want to remind everyone out there, that your customers should not be treated any differently than you would your best friend when they are getting foreclosed on.

You may grumble about short sales, or gasp when you find one of your listing prospects wasn't completely upfront with  you about the status of the abode they want you to sell.  Even though there are many out there in this predicament, your customers have been dealt not only a blow to their pride.  They are losing the place they chose to lay down roots.  It hurts!

Please, for the love of humanity, handle them with some empathy and sensitivity.  Don't treat your customers like they just increased your workload by 50%. 

Do what you can to find them the perfect buyer, just as you would a normal sale.  It may take two months longer than a normal closing, if it closes at all.  They are still going to have to find a place to live and they are going to want your help and support.  Your customers know people who are going to want to buy or sell in the future.  I'm sure they will want to send them an agent who was their friend, and not their source of stress.

There are many people going through this, folks.  Let's see how many of them we can help.

Media Mayhem in the Real Estate Market

 

"The real estate market is dead!" " We're in a depression!  This is horrible!"  " You may as well hang up your open house signs and pop your balloons because recovery is futile!"  "Things have never been this bad!"

Every time I turn on CNN, CBS or ABC News (Yes FOX, you are guilty too), you hear this mantra being repeated.  Not only is the real estate market writhing in its death throes, it is pulling the rest of the economy down with it.  The sky is falling, okay?  Now take your Prozac and get over it.  Since the rest of the world depends on your real estate market, I guess you've got some work to do.

Sane real estate professionals pour through their monthly and year to date statistics on their local market and see falling numbers:

Harford County, Maryland has dropped 9.82% in their average sold price compared to April of last year.  Median sold price dropped 7.05%.  Total Units sold dropped 30.10% from April of last year.  However, average days on the market decreased from 125 from last year, to 121 this year.  That is a 3.20% improvement.

Baltimore County saw less of a decrease percentage on home prices between April 2008 and 2009, however the average D.O.M. increased by about 4%.  That is something to think about if you are considering purchasing a home in Baltimore County.   It may be easier for you to find better deals than if you purchase in Harford.

This tells me that average prices of homes are still coming down (good thing for buyers).  Units sold, while 30% less than last year, could also mean that fewer homes are going up for sale.  You wouldn't know it to look at my neighborhood, but I look at this as a market correction.  This is what you should be explaining to your home owners who are on the fence about lowering the price of their homes.

The best indication that will tell you if your market is improving is that average D.O.M. (days on market).  If it is decreasing, that is a good thing.  This is the number I would keep an eye on.

Keep in mind that the freak of nature we saw in the early 2000's, with prices of homes increasing in value 10% or more every year was just that . . . a freak of nature.  It was not the norm.  Home owners and investors expecting to take from the market are not going to have to give back a little. 

This isn't dooms-day.  This isn't the sky falling and CNN analysts don't know everything.  Fear-mongering abounds on the evening news.  These people should be writing fiction and giving Stephen King a run for his money.  The facts are in the numbers, not the beet-red face of Lou Dobbs sputtering beat-box economic fire and brimstone like Baptist Minister (get your umbrellas).

The facts are what goes up must come down.  The faster and higher prices rise, is how fast and hard they will crash.  This is not the worst economy we've ever had.  This is not the worst recession we've ever had.  You can wallow in self-pity or you can keep on going like we are headed for a "normal" market, which we are.

The correction has been swift.  Painful, but swift.  Take advantage of the new tools this correction has given you.  You have little window of opportunity to have first-time buyers take advantage of the $8,000 tax rebate, the 4.75-4.85% interest rates and home prices down around 2004 levels.  There IS no better market to buy!

So go out there and spread the good news.  The sooner we take the initiative to correct our own market, the sooner the rest of the economy will recover.  There are buyers out there!  Who are YOU going to give them to?

Bonnie Cox

 

If you were in the market for a peach, would you pick the one sitting in the bin that had the outer skin torn, was discolored or had bits of "other" green stuff stuck to it?

Or would you choose the peach that was ripe but firm, with skin intact and clean? 

That's what I thought you'd say . . . So why would you assume that home buyers would look for anything less aesthetically pleasing than that perfect peach?

When your listing agent goes over the checklist with you (and they should have one for you), you may be overwhelmed at first.  Don't be.  Most if this is typical maintenance you would usually do for yourself to make your home look nice.  I like the old adage, "Keep it Simple" and it's easier than you think.

One of the first things your listing agent will want to do is take pictures of the outside of your house.  Inside pictures (If they're motivated) will also be taken and they are just as important.

Your agent is probably also going to want to schedule an open house or two as soon as your listing hits MRIS and Realtor.com.  Here are some quick pointers:

Outside:

Make sure your landscaping is as clean and trimmed as possible.  Bushes and shrubs around the house, clean plants and flower beds, edge sidewalks and seed/repair any bare spots in the grass.  Sidewalk cracks?  Repair them.

Your home exterior  should look welcoming.  Peeling paint on the door and rusty or tarnished door fixtures should be rectified.  Paint the front door, trim and make sure house numbers are visible.  If there is a front porch, add a hanging potted plant or two, but don't over do it.  You're going for balance, color and warmth.

The same attention should be paid to garage doors and trim, repair cracked or crumbled driveways.  Driveways can be big selling points in a home.  Organize the outside and the inside as much as possible.  Put tools away or hung neatly on the walls.  Get storage bins for any errant fishing poles, pool toys or yard equipment.

Mow the grass regularly (I shouldn't have to tell you this) and make sure all outside lamps and walkway lights are in working order.

If time is not on your side (you're not independently wealthy and have to go to work), ask your agent if they know of a thorough, inexpensive handyman or contractor service like D.J. Wright Contracting to do minor repairs or replacements you may not be skilled on.  Remember, you have a lot of competition out there right now.  The best light you can place on your home, the faster the bites will come.

I can't stress enough the importance of clean windows and storm doors.  I know agents that have panic-cleaned glass on the front of a home right before their scheduled open house.  Yes, it does make a difference.  Clean glass adds so much more polish to a home!  You wouldn't think it would go noticed, but believe me!  It does!

Inside:

•-          Glass . . . I'm not kidding.  Clean glass brightens a room and the home.

•-          Bathrooms:  The shinier the fixtures, the better.  And if you don't flush, your customers will . . .and they will walk.

•-          Mirrors:  Treat like glass.  Clean.  No toothpaste spatters . . .no stray whiskers.

•-          Unclutter that vanity sink.  You don't need to impress your visitors with how many different varieties of blow dryers and curling irons you have.

•-          Kitchens:  People get into trouble here.  Clean floors, I would even invest in Counter Magic or similar product to really make your counter tops look immaculate.  Shine steel and appliances and declutter the counter tops.

•-          Carpeting and floors:  Carpet cleaning is the most effective in minimizing trapped odors.  It is unbelievable the difference this makes.  Plug-in Air Fresheners are fantastic of not over done.

I can't say enough about the care taken inside to make the home look like the family that lived their cared.  Look at it this way.  Your home is going on blind dates and it wants to make the best impression possible.  Just think if one stained T-shirt is left hanging over a chair, or shoes stick to the floor as you walk in the kitchen (I've had an open house like this).  Not only are potential buyers going to be turned off, they may even stigmatize the neighborhood based on what they see in your home.

In this market, where the average days on the market for an average home is around 160 days, you don't want to be giving buyers away to the competition.

Bonnie Cox, Realtor

Prudential Carruthers

http://bonnie.cox.pcragent.com

bonnie.cox@prudentialcarruthers.com

The Jobs with BRAC Relocations Haven't Made Dent in Real Estate Inventories

 

The good news is, despite the hoop-la-la over the BRAC Relocations, much here has not changed in the real estate market.

Harford County, Maryland couldn't be a better location for people moving from Fort Dix/McGuire to Aberdeen and Andrews AFB.

Harford County borders Baltimore County, Cecil County and the Chesapeake.  Although it encompasses Aberdeen Proving Grounds and is less than a 30 minute drive to Baltimore, Harford County is still considered a primarily rural county.

Home prices, because of the inventor and average length of time on the market, are back down to 2003-2004 levels.  They are still falling, but the decent has slowed quite a bit as we have seen a slight upturn in activity.

The best time to buy a home is now.  It has been over 30 years since we have seen interest rates at this level.  Analysts expect to see 30-year fixed interest rates to remain at the 4.75  - 4.85% levels for the next couple of months.  This is definately a buyers market.  Credit availability, although tightened, is still being granted.  We have not really had a problem with obtaining financing for our clients, even though the amount of request has lowered considerably.  FHA is still loaning to credit scores in the 620's and 3% down.  First time home buyers have been awakening with the fear of loss of the $8,000 tax credit by November 30th.

Many involved in the BRAC moves will probably not be first time home buyers, but the interest rates and home prices have definately contributed to the appeal of having to delve into the home buying market.

Aberdeen, Bel Air, Elkton, Forest Hill, Jarrettsville, Baldwin, Belcamp, Street, Darlington and other towns in Harford County sit amoung lush, green hills and a stones throw from fox hunting country.  There is plenty of shopping in town, Rocks State Park, Ma & Pa Hiking and Bike trails, quite a few fitness clubs to choose from, horse back riding, swimming, golf, Harford Community College, Havre de Grace's waterside park and much more!  You are less than 45 minutes away from the State line of Pennsylvania from anywhere in Harford County and close to Delaware and tax-free shopping.

Harford County offers the beauty and calm of country living with the economic benefits of Baltimore, Aberdeen Proving Grounds and D.C. in less than two hours.

If you are anticipating a move to Maryland because of BRAC or any other reason, visit http://www.bonnie.cox.pcragent.com .  Just register by filling out the information on the type and location of home you are looking for and you will get free updates daily on the new listings fitting your criteria.

Have questions about Harford County Real Estate or need help finding a home?  email me at bonnie.cox@prudentialcarruthers.com or call me, Bonnie Cox at 410-879-3880 or direct at 301-785-5368.

And finally?  Enjoy the great weather.  We've earned it!

 

Bonnie Cox, Realtor

Prudential Carruthers