Bonnie Cox Real Estate Musings: May 2009

As most of you well know, it gets a little depressing when you read in the news and on blog posts that there is a "second wave" of foreclosures coming.  Yeah, yeah . . . just cut to the chase and give me the bad news.

It is even more depressing when customer after customer is putting their home on the market, not because they feel like selling, but because they HAVE to.

How am I, as a real estate agent, looked upon as someone who is going to answer their prayers of profit and bring them back to the 2003 boom, going to tell them, "sorry kid . . . the bank has to approve this sale.  Thanks for the granite counter tops and the Jen Aire range but you are still short $43,000"?

Another listing, another short sale potential and I know these people.  I am fighting, fighting, fighting to make sure they can have this sale quickly at the price that will afford them at least enough for a 1st month and security deposit.

Where are the bailouts for these people?  These people did not buy a house they couldn't afford.  These people had their businesses wiped out from under them when the construction industry dredged creek bottom.  They USED to HAVE an income!

Before people start getting angry and start heading to washington with pitchforks and torches, let me tell you how these people are handling this.

There are some people that are dealing with one of the most crushing blows of their lives, as a chance for a fresh start.

Some people are looking at this as "maybe we are putting too much importance in material things."  They are looking at this a a chance to step back, take a deep breath and get back to who they are and why they are here.  They have faith that although disapointing, an answer is coming.  They were supposed to have been "somewhere else."

I am going to work my tail off to find these people a qualified, motivated buyer while at the same time hoping that something happens where they can withdrawl their home off the market.  There are more important things in live then a nice house in the woods with a 20' x 40' deck.   There are more important things in life than getting another commission on another potential ship wreck.

To undersand why I love Harford County, Maryland so much, one would have to understand where I came from.  I was born just outside of Philadelphia, lived most of my childhood in Delaware and most of my children's childhoods in upstate Pennsylvania (The Endless Mountain Region).

I moved to Maryland because my husband had roots in Maryland.  Jobs were scarce in Pennsylvania.  When the boys finished high school, we moved to the "land of plenty".

We decided to rent to get to know the area before we committed to purchase.  The first area we moved to was Jarrettsville.  I remember the name scared me.  It sounded like a town I would find in the Ozarks.  However, our backyard was almost an acre and over the fence was a horse farm I could view from my kitchen window.  In the spring and fall, when the weather permitted open windows, You could hear the horses whinney from inside the house while eating your breakfast.  I was in HEAVEN!

After a year and a half, we decided on a more modern house in Forest Hill.  By October of 2006, I was getting quite comfortable with my surroundings and the culture shock had long worn off.

It didn't take me long to realize that you really could not find a better place to live.  You are surrounded by rolling hills and farms no matter what part of Harford County you are in.  You have upscale neighborhoods, you have first time home buyer neighborhoods, you have new homes and traditional.

You can drive to Bel Air and find everything you need from a good doctor to your choice of mattress stores.  You have Walmart, Target and Macy's in one town!  And if you want to see  a change of shopping scenery, WhiteMarsh is 20 minutes away, Baltimore is 30 minutes away.

People in Harford County commute to APG (Aberdeen Proving Grounds), Bel Air and Abingdon, Baltimore and D.C. to work.  Many commute using Light Rail and MARC trains to connect to the METRO.  I have taken them many times to D.C.   It's easy to plan a Saturday in D.C. using http://www.mtamaryland.com and http://www.wmata.com .  It really takes a lot of stress off your trip.

If you would like to leave the metropolis behind and move in the other direction, try a drive through the hills of Monkton, Street, Whiteford.  Get lost on some of those back roads that wind in and around Rocks State Park or Gunpowder.  If you are into fox hunting country, the back end of Jarrettsville, Monkton and across the county border into Hunt Valley, Long Green Valley and Worthington Valley, home of baseball great Cal Ripken.  Here you will see beautiful horse estates, white-fenced pastures and state of the art stables where the horses live in style.

Back home in Harford County, you too can live fit with any number of health and swim clubs that dot our county.  We probably have more health clubs per capita than any other county in Maryland.  (I could be off, but it sure seems like it).

We also hav the Ma and Pa trails, Anne's Playground which is a huge playground donated by the community of Fallston to commemorate a little girl who was killed by a drunk driver.  This playground is in honor of her and other children who were taken too soon from their parents in tragedies.  You can read more about this here http://www.anniesplayground.net/

We also have the Farm Fair every year at the Harford County Parks and Recreation, located on Tolgate Road in Bel Air, right next to the Harford Equestrian Center.  This is a week of fun for everyone.  If you own a business you can rent tables or tents and get to know some of your future customers.  You can also just bring the kids, ride some animals and eat some great food.

Most important, I think, is the people I have met here in Harford County.  After only being here five years, I feel like a native.  People here are friendly, open and eager to help each other.

Anyone contemplating moving to Harford County will feel at home quickly.   And if you are in need of a neighborly agent to make that happen for you, I know one!

 

 

This Memorial Day was just an awesome day.  Lazy . . . yes.  Food?  Yes.  Muggy-but-not-to-hot weather with some moisture laden clouds here and there with a rumble of thunder.  Some sun streaking through the clouds heating things up, then cloud cover again.

We had done our celebrating yesterday and Saturday.  We had a picnic at our church and during service on Sunday, our Pastor had everyone who served in some capacity in the military stand up.  I was in proud company even though I was a weekend warrior from '82 - '86.  We each were given time to state the branch of service, years served and where while we were honored with a round of applause. (I could no longer fit into my dress greens because I have gained 40 pounds from the time I wore the uniform).

Today as we were fixing some lunch at the house, my step son's mother called on her way back from Bel Air to tell us that there were military helocopters flying over our house.  We ran outside onto the back porch and looked up.

Four Black Hawk helocopters from Aberdeen Proving Grounds were flying directly over our house.  They were doing a flyover of Bel Air, Edgewood, Forest Hill, Aberdeen, Belcamp, Jarrettsville, Fallston, Baldwin, Darlington and Abingdon. 

Is there anyone here that made it to Aberdeen today for Memorial Day?

Just as we went out the back door, the sound of these beautiful beasts tore through the peacful day.  They were flying in two-by-two formation and they were close enough to the ground you could see the outline around the bay doors.  My stepson was in awe!  (He's 15 years old and loves military history).

It is really humbling to realize the sacrifices these men and women in uniform give to be of service to their country.  I would really like to see our leaders not take them for granted. 

God Bless each and every one of these men and women who much more than a mention and a prayer on a weekend in May every year.  They are your sons, daughters, mothers, fathers, aunts and uncles, grandfathers and grandmothers, brothers and sisters.

They are your family.

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