3 Keys to a Successful Business Plan

It’s that time of year again.  As 2009 heads toward its close, it’s time to put together your 2010 business plan.

Not so fast.

First, let’s talk about what makes a successful business plan.  I’ve identified three essential keys that are absolutely necessary to write and implement a plan that works.  I came up with these three keys because I had seen too many business plans that looked great on paper but just didn’t work in the real world.

Most agents make the same mistake.  They sit down with last year’s business plan.  They analyze what they did this year.  Then, they rewrite the same business plan with a little more flowery language.  They make elaborate (but empty) New Year’s resolutions to “try harder”, to “work longer” and “put in more effort”.

That’s not the way to do it.  A business plan is not simply a document you work on once at the beginning of the year.  It’s a living and breathing plan of action that stays with you every day of the year.

Let’s talk about the three keys to a successful business plan:

Key #1: Fully describe your exact vision of what your business should be.

Before writing your actual business plan, you need a clear mental snapshot of what you want for your business.  The only way to craft this vision into a crystal-clear picture is to ask yourself some critical questions.  Here’s some of what I ask agents when we sit down together to write a plan:

• What is your vision for your business?
• What do you want your business to look like?
• What systems do you want in your business?
• What kind of time off do you want?
• What do you want your collateral to look like?
• Is there someone else’s business you’re inspired by and would like to emulate?
• What do you want to be known for?
• What kind of client care do you want to give?
• What sets you apart from everyone else?

Only by answering these questions in depth will you discover what your true vision for your business is.  Without a clear-cut vision, a business plan means nothing.

Key #2: Identify what’s currently missing from your business.

This is imperative.  It’s a very different task than creating your vision.  It requires you to get face-to-face with your weaknesses.  You need to confront what’s lacking in your business head on.  Without doing so, you won’t even be able to see what you need to change.

Here are some of the questions I ask agents about the current negatives of their business:

• What’s missing from your business?
• What are you not satisfied with?
• What bogs you down?
• What frustrates you?
• What is your biggest time-losing activity?
• What do you struggle with the most?

This can be a very difficult task, but it’s necessary.  Before you can get to what’s right about your business, you have to face down what’s wrong.

Once you start, though, it becomes liberating.  Agents get really honest with their faults and frailties once we begin.  Once they let loose, then we can address these issues by creating new action tasks for each of them.

Key #3: Break your business plan down into specific action tasks and put them on a year-long calendar.

This is the most important step.  Once you’ve painted a clear picture of your vision for your business AND you’ve addressed what’s missing from your business, it’s time to create actionable tasks and put them on your calendar.

For example, let’s say one of your lacking items is a really good follow-up program for past clients.  You would break it down into tiny tasks and put it on your year-long calendar, filling in the times you will work on your new follow-up program in segments from January through December.

Then, do the same for all your plans for the year.  Put follow-up for current and potential clients on the calendar.  Put lead generation on the calendar.  And definitely put time off on the calendar.

By being so detailed about your time, you will always know where you stand in your business.  Your business plan becomes much more than a list of New Year’s resolutions, and more of an action plan.

That’s what you need for your business—something that will be with you every day so that you always know what you need to work on.

By Denise Lones CSP, M.I.R.M., CDEI

How to Prepare for the Upcoming Tax Credit Frenzy

Wow!  What a week.

Lots of changes have happened.  Unless you were hiding under a rock, you certainly heard that the government has extended the First-Time Home Buyer Tax Credit.  Not only is it extended, but it now includes a $6,500 credit for homeowners who have been in their homes for five of the last eight years.

I am excited.  This is amazing news for the real estate industry.  The $6,500 is going to give a huge boost to sales.  It will allow the middle part of the market to finally break apart.  This middle part is the segment of potential buyers that has been frozen and stagnant.  When it breaks apart from its frozen state, it will wash over us in a frenzy of sales.  This “frenzy period” should last until contracts are finalized on April 30, 2010.

Not only will we have first-time home buyers jumping into the marketplace, we will also see other new activity.  First move-up buyers and second move-up buyers will be galvanized into action.  Investors will be snapping up second homes.

I am confident that this “frenzy period” will be one of the most exciting times in real estate in the last fifty years.  I can’t wait to be a part of helping agents through this historic time.

With higher activity, though, comes a warning.  This frenzy is going to require to you change the way you’ve been doing business.

You’ve been in low gear for about two years now.  2008 and 2009 represented a very different market than the one into which we have just been catapulted.  This new market is going to move FAST.  It’s going to force you to stay sharp and be at the top of your game.  No more low gear.  It’s time for super high gear.

It’s time to get ready.  Get on the phone right now to every buyer you know and get them educated.  Let them know what this new tax credit extension means for them.  Most people aren’t aware of the program and it’s up to you to teach them how they can take advantage of the credit and put some cash in their pockets.

If a seller tells you that they want to wait until March to put their home on the market, tell them to forget it.  NOW is the time, not March.  You’ve got to make it clear to them that waiting means losing out.  Get them on the market now.

We are all used to the spring market beginning in March and lasting though May.  Well, here’s a newsflash: The spring market starts in January this year, meaning that you have to start TODAY to get into gear.  This year, winter will be our spring season.

It’s going to be intense.  It’s going to be exhausting.  But the best part—it’s going to be profitable.

While this is great news, there will be some challenges.

First and foremost, competition is going to get tough out there.  You’d better be giving your clients the most amazing five-star customer service and client care that makes their heads spin.  If you don’t, then you risk losing them to another agent who IS willing to go the extra mile for them.

Be prepared.  Now is the time to get your business in order.  Get all your tools ready.  Put all your systems in place.  Make sure any and all forms you need are right there at your fingertips.  During the frenzy, you don’t want to lose a minute looking for paperwork.

Make sure your follow-up is impeccable.  Don’t let anyone slip past you and into the welcoming arms of another agent.  Be on top of your emails and calls.  Send out relevant and informative real estate information like clockwork.

Also, be prepared for buyers who are out shopping deals.  They know the market is going to get fiercely competitive so they’re on the lookout for an agent who can negotiate aggressively for them.

If you’re not the best negotiator, now is the time to sharpen those skills.  You’re going to need them.  Being a powerful negotiator is a huge selling point for you and your services.

The holiday season is usually the time of year we kick back and relax a bit.  Not this year!  I can’t emphasize enough the importance of starting right now—as in TODAY—to get your business in order to prepare for the coming frenzy.

And I want to say—

I’m proud of you.

You have weathered this extreme two-year storm.  You’ve stood strong as times got tough.  You’ve been a rock in a sea of trouble.

Now is the time for you to be rewarded.  The next few months will remind you of why you love this business so much.  It’s going to be fun.

For so long, we were searching for the light at the end of the tunnel.  Well, it’s here.  And it’s bright.

So, buckle up.  It’s going to be a wild ride.

By Denise Lones CSP, M.I.R.M., CDEI

Incredible News!

Finally, finally our voices have been heard.  Thank you to each and every one of you who has supported the extension and expansion of the first time home buyer tax credit.

Our voices have been heard and today we can celebrate what will prove to be a very historic time in real estate and a very important move forward for real estate.

Yesterday afternoon Senate unanimously voted 98-0 to extend the first time home buyer tax credit. It passed overwhelmingly in the House today 403-12, and the White House reports President Obama will sign the bill on Friday.  Not only was the first time home buyer tax credit extended, a NEW $6,500 tax credit for existing homeowners who have lived in their homes for at least five of the last eight years was added to the bill.

Senator Johnny Isakson (a co-sponsor of the measure) said “this bill will help us boost what is the REAL problem in the U.S housing market today and that is what is called the move-up market.”  Johnny hit the nail right on the head.  The move-up market has been stalled and even though the first time home buyer market was helped along with the initial tax credit it was not enough to move the “middle” market.  This “middle” market desperately needed a jump start.  And, we got it today.

These tax credits will be available through June 30th of 2010; however, buyers who qualify for either of these credits MUST enter a binding contract before April 30, 2010.   The bill also increases the income cap to $125,000 for a single person and $250,000 for a couple.  And the credit is available for all homes purchased for $800,000 or less.  This is ideal, as it will break up the middle part of the market that is currently stalled.

Today is a VERY, VERY happy day for the real estate industry because this new and SUPER IMPROVED tax credit bill WILL boost the market.  Get ready agents – the buyers are coming!!!!

To make things even sweeter, the bill also provides the jobless with up to 20 weeks in additional unemployment benefits.  Thank goodness for the help, since the construction industry was hit very hard by this economic downturn.  Thanks really need to go to people like Judy Conti of the National Employment Law Project who blasted Senate and said it was “shameful” that the Senate procrastinated on the unemployment extension issue.  Conti said “this bill would provide a lifeline for those who are desperate, who are unemployed for no fault of their own”.  With a current unemployment rate of 9.8% this extension comes at the perfect time.

And it gets even better!!!  The 24 billion dollar bill will also provide help to struggling businesses that had losses in 2008 and 2009.  They would now be able to seek refunds for taxes paid on profits over the past 5 years.

So is it official yet?  Almost – we are in the home stretch. The bill is expected to be sent to President Barack Obama for his signature on Friday, November 6th.

I am excited for another reason – our 2010 EVOLVE group is almost completely sold out.  I am absolutely thrilled with the agents who have made the commitment to improve their business next year.  We have already started custom branding process for these agents.  They are going to begin their 2010 with a whole new “brand” and set of customized tools to help them stand apart in this business. I cannot wait to sit down with this group of agents in January, give them more tools, improve their business systems, and help them develop strategies that will bring them increased business for years to come.

How about you? Are you ready to greet this reenergized real estate market with tools, energy, and enthusiasm?  When the move-up buyers begin to poke their heads up next week after this bill passes, do you have the tools and research to wow them? Do you have a stack of Buyer Packages that clearly delineate what makes you a stand out agent? Do you have your Buyer Intake packages ready to go? Are you ready to wow buyers on tour? Are you ready with a pending-to-closing system and post-closing follow-up?

Are you ready to go talk to each one of your sellers (or would-be sellers) with information on how this new bill affects them and what they need to do RIGHT NOW to take advantage of it?

You need to be ready because the winter and spring of 2010 is going to be UN-BE-LIEVABLE!

NOW is the time, agents. Now is the time to get serious about your business. We need to STOP hiding out at home. We need to stop blaming the market for our woes.  We need to brush off our contracts and head into the office.

If you have been thinking of joining a coaching program to get your “mojo” back, you have to call me or email me NOW. We are providing our 2010 EVOLVE agents with tools and systems to help them take advantage of this exciting time, and I don’t want you to miss out. If the financial obligation of EVOLVE is holding you back, then you have to contact me – because I have some predictions for next year that will knock your socks off.

Don’t wait!  Give me a call at 360-527-8904 – or email me directly at denise@thelonesgroup.com.

By Denise Lones CSP, M.I.R.M., CDEI

How to do More Work in Less Time

Every successful business has one thing in common. Every failing business probably lacks the very same thing.

I’m talking about systems. Systems are standardized procedures and plans that run, for the most part, automatically. They free you from the tasks of your business so you can concentrate on providing five-star service.

Systems are the engine that powers a business. Without them, a business can run for a while. Eventually, however, the burden of starting from scratch with each transaction will slow things down to a crawl.

This is the situation in which most agents who don’t implement systems find themselves. The amount of business grows—which is a good thing—but it becomes overwhelming to take care of the minute details of each transaction. This can lead to burnout.

The surefire method of avoiding this trap is to put systems to use in every area of your business. The top areas to include are:

1. Lead generation systems.

Very few agents have learned how to implement a lead generation system. The ones who do tell me, “Denise, I wish I had done this sooner! I’m amazed at how this brings in a steady stream of clients.”A lead generation system is actually a “moneymaking system”. It’s there for you as a regular drip of business—whether it’s boom time or bust time.The problem most agents face with implementing lead generation systems is doing it when desperate. Lead generation done every once in a while can produce results, but when it’s done regularly—instead of desperately—it produces amazing results.

A desperate mode never feels good to your clients. If you feel everything hinging on one sale too heavily, the client will feel pressured. Not a good feeling.

But when you have a consistent lead generation system in place, you never have to worry about this happening because there’s always another prospect in the pipeline.

2. Follow-up.

Another neglected area for most agents, this is something you need to do regularly. You should be following up consistently with your past clients, present clients, and potential clients.Ask yourself, “What do each of these databases get from me consistently that a) reminds them that I’m still their local real estate expert and b) provides them with helpful information?”You need to remind people that you’re still out there. By providing timely and relevant information, you’re doing so in a non-threatening manner that keeps you in the back of their minds for the day they need you.

If you’re not in contact with your databases an absolute minimum of once per month, then you simply will not remain in their minds. It is critical that you keep this system running like clockwork.

3. Client care systems.

Do you have a system for when you list a home? I mean a series of 18-20 steps that you do automatically each and every time you list a property.

How about when you pend a property? Do you send out a letter congratulating your client? Do you send out a pending-to-close calendar so they know everything that’s going to happen every step of the way?

By having client care systems in place all ready to go, you show your clients that you are a true professional. There’s no “winging it”. You let them know that you’ve got the entire plan covered in detail. Plus, little touches like the congratulation letter make a powerful impact in their minds.

4. Paper management systems.

Many—if not most—agents are good with people but not-so-good with paper. Quite often I visit an agent’s office to find paperwork strewn everywhere. Files in disarray. Everything out of order.

What system do you have in your business to keep paperwork as simple as possible? It’s so important to keep this area under control because I guarantee that eventually something will fall through the cracks. Legally, this could present problems for a real estate agent.

You don’t want this to happen to you. Paperwork is a pain, but it’s something for which we all need a system.

These are just the tip of the iceberg. I coach agents to implement 12 different systems in their businesses. Would you like to learn more about systems?

If so, then I highly recommend you contact me about becoming a member of my EVOLVE group for 2010. EVOLVE is my elite training program in which I take 20 agents and work with them for ONE FULL YEAR to completely overhaul their businesses from top to bottom.

Together, we implement every system you could ever need in your business. At the end of the year, you’ll be equipped with tools to guarantee a lifetime of success.

The best part about EVOLVE is the one-on-one time you get with me and the other agents. I will be honest and truthful with you. Throughout the year, I will personally show you how to take your business to a level you may have never imagined before.

If you think you’d like to be a part of this powerful program, then email me personally at denise@thelonesgroup.com. We’ll set up a one-on-one call to see if you have what it takes to get into the EVOLVE program.

Truth is, not everyone is cut out to be an EVOLVE agent. You need to:

1. Have a strong desire to take your business to a level you haven’t been able to reach on your own.
2. Be 100% committed to doing the work to get you there.
3. Be willing to work with a group of 19 other people on an ongoing basis because part of becoming successful is sharing problems and solutions with others. You will learn from each other.

EVOLVE is not only business-changing, it’s life-changing. But you have to hurry. It’s already half sold out for 2010, so now is your opportunity to get in on this amazing experience.

Email me today at denise@thelonesgroup.com and let’s talk about getting started.

By Denise Lones CSP, M.I.R.M.

The Power of a “Wow!” Experience

Have you ever been “wowed?” When was the last time you had a business experience that made you want to get on the phone and call everyone you know to tell them about it?

I had such an experience recently. I had just finished teaching a class in Yakima. My associate and I faced a long trek home. We were tired and hungry.

We decided to find a place to eat in Ellensburg, which was on the way home. Both of us had a hankering for Thai food, but figured there probably wasn’t a Thai restaurant in Ellensburg.

With curiosity, I took out my trusty iPhone and typed in “Thai Food Ellensburg” into Google.

Indeed, there was a place listed as “Sugar Thai Food” in Ellensburg. We pulled off the highway and found it.

Truth is, I wasn’t expecting much. My hopes were not high. If we had found mildly satisfactory Thai food that didn’t taste like it came from a mall food court, I would have been happy.

But was I ever in for a surprise!

From the outside, Sugar Thai looked like nothing special. Just an average restaurant in its exterior appearance.

But from the moment we stepped in the door, we felt magically transported to Thailand itself. The décor brought to life the sense of another part of the world in vivid detail—without overdoing it.

A young lady greeted us at the door. She was wearing a traditional Thai off-the-shoulder gown, shimmering in beautiful gold metallic fabric.

I immediately thought of how I am constantly telling agents to create a memorable experience right from the first interaction with a client. So far, this tiny and unpretentious Thai restaurant had done the very same thing with me. I was “wowed” from the first step through the door.

But that was just the beginning…

As we sat down and glanced over the menu, we were amazed at the number of choices. The options were endless, as if it would take a year to eat one’s way through the entire menu. As an added bonus, there was a mouthwatering picture of each dish next to its description. Visually stunning, they made us very hungry. Another point scored.

We ordered an appetizer and entrees. When the appetizer arrived, I could have sworn I was on one of those Food Network shows where people react to a gorgeous dish. I looked around for a camera, but couldn’t find one.

This appetizer looked like a sculpture—a true work of art. Even the carrots that decorated the edges of the plate were carved into tiny little flowers—many of them. Culinary beauty at its finest.

Then, we dug in. Unbelievable taste. With each bite, we fell more and more in love with the food and the restaurant. The experience was duplicated with the entrees when they arrived.

On top of all this, the manager personally visited our table to make sure everything was perfect. He was gracious and genuinely concerned. I watched him as he walked around his tiny little kingdom with an obsessive determination to make all his guests happy. Now that’s what I call a restaurant manager!

Overall, I was blown away. So much so that I highly recommend you visit Sugar Thai Food in Ellensburg whenever you’re in the area. They are located at 306 North Pine Street. Their phone number is (509) 933-4224.

Now… on to business. What does all this have to do with real estate?

Everything!

What I experienced from walking in the door of Sugar Thai Food to getting in my car to drive home is the same feeling you should be generating with your clients.

The power of a “Wow Experience” will keep clients running back to you—as well as get them to tell everyone they know about you. Whether it’s the service you give or the marketing you present, everything you do comes back to what kind of experience you are creating for your clients.

With the artful Thai appetizer in mind, think about your buyers and sellers packages. Do they stun with their beauty and detail? Do they shout professionalism? Do they answer all the most common questions that buyers and sellers ask? They should cover all these bases and more.

How about when you take a client out in your car? Do you have beverages and snacks with you to offer them? Such a tiny (and inexpensive) little detail often creates a “Wow moment” that can truly cement the relationship between you and your client.

What kind of experience are you providing for your buyers? For your sellers? Is it five-star concierge-class service? If it’s not, then this should be your starting point for change as of today. It is only by looking at your business through the eyes and ears of your clients that you will be able to see what you need to do.

Just like Sugar Thai Food restaurant did with me, create a “Wow Experience” for your clients and they will wow you with repeat business and referrals.

By Denise Lones CSP, M.I.R.M.

Now Is The Time To Plan Your Client Appreciation Event

It’s October. The leaves are falling. Before you know it, the holiday season will be here.

That’s why now is the time you should be thinking about your December client appreciation event.

Don’t underestimate the power of client appreciation events. When done right, this one tool can be a huge shot in the arm for your business—and a great dose of good will for your clients.

The idea behind a client appreciation event is to create a short but fun time for your clients. You can invite past clients, present clients, and even new clients. Ultimately, this is one of the best ways to stay in front of their faces.

However, there are some very important things you need to know to have a successful client appreciation event.

Here are some tips to make yours one to remember:

1. Choose the right type of event.

First, events that involve children are fantastic. Clients love to bring their kids to events like a Breakfast with Santa.

In fact, I recommend the Breakfast with Santa variation of the client appreciation event over anything else you can do. I can tell you from experience that I have never once heard of any of my clients having an unsuccessful Breakfast with Santa.

Summer barbecue events are another great idea. Wide open spaces with lots of outdoor fun and games for kids can be a big hit. The only problem may be that the summertime is so busy that you find it more difficult to plan the event.

Another successful event is a stop by open house client appreciation event. Clients like this because they can drop by and say hi but are not compelled to stay for a luncheon or dinner. How do you spice up your drop by open house to make it an event? Be creative. For example, one client of mine once did a “Cakes of the World” party inside at her open house. She had cakes from Greece, Italy, France, Asia, Mexico, and Hawaii. It was very interesting and unique. She had people try the cakes and vote on their favorite. This gave her a great excuse to contact them after the open house to let them know which cake won.

Besides being amazingly inventive, the event didn’t cost her hardly anything at all. She had mortgage companies and title companies sponsor a cake from each of the countries. Simply brilliant.

Some client appreciation events look great on paper, but don’t work when made real. A good example of this is a dinner cruise. Sounds like a good idea, right? A fun night on the water.

More often than not, however, the dinner cruise backfires. There is so much complication getting on and off a boat—not to mention ensuring that you’ve thought of everything before you set sail. Then, if the weather doesn’t cooperate it can ruin the event.

2. Get people to your event.

It’s extremely important to pack your event with people. There’s nothing worse than a client appreciation event where nobody shows up.

To make sure this happens, send out a “Save the Date” card approximately 60-90 days before the event. Then, 60 days before the event, send out an invitation asking for RSVP’s. Then, 30 days before the event, call people to confirm that they will attend. Then, 2 weeks before the event send out a notice that reminds them that there are only 14 days left before the event. Include driving directions.

This type of diligence is critical in order to fill your event with people. When people first get an invitation, they may not be thinking that far in advance so they put it off to one side. Then, they may forget about it. It’s your responsibility to provide them with timely reminders so that your event becomes a reality that they can plan for.

3. Free yourself up.

During the event, you need to be freed up to be the “social butterfly” of the event. You shouldn’t be worried about where people are going to be sitting, handing out name tags, etc.

Get the help of title or mortgage companies to help you do that. Have somebody there specifically to handle the administrative tasks of the event so that you can be the social star.

4. Diarize the event.

Make sure somebody is there to take pictures of the event. Once it’s over, post those photographs on a “Clients Only” area on your website. People love to see pictures of themselves. Send them a link so they can look at the photos (and add their own if they want!).

You should also create a “Thank You” that has a collage of photos from the event with a brief note telling them how their presence made the event special. For the people who didn’t attend, send them a photo collage as well. Include a note stating how much you missed them being there and how much you look forward to their coming next year. This gives them a visual of what the event looked and felt like.

So, start thinking about your event now. If you’re going to do a Breakfast with Santa, this is the time to find the venue and start making plans.

You won’t be sorry. A Client Appreciation Event pays off handsomely in the long term. Your image is strengthened. Your reputation is secured. Your business grows.

By Denise Lones CSP, M.I.R.M.

The Next 60 Days Could Be The Most Important 60 Days Of The Year

The clock is ticking. The time for homebuyers to take advantage of the 2009 First-Time Home Buyer Tax Credit has a shelf life that is getting ready to expire.

There is much speculation that the tax credit will be extended, but all indicators point to the fact that the end is near. If we’re surprised with an extension, then great. But we must toil on with the assumption that the credit will expire as originally planned.

Why would it not be extended? Because simply put, the economy is showing enough signs of improvement. Many government officials are skittish about continuing a program which was designed solely to help lift us out of last year’s economic collapse.

Even Federal Reserve Chairman Ben Bernanke recently said that the recession is “very likely over.” There is much debate over this viewpoint, but the very fact that it was said at all is a promising enough sign that may keep an extension for the tax credit off the table.

This means that the next 60 days is a huge opportunity for you. There is a market of people out there who can benefit from the 2009 First-Time Home Buyer Tax Credit who may not even know about it. This is your golden opportunity to educate them—and by doing so, put some numbers on the books before the winter season arrives.

Think about it. December 1, 2009 is the expiration date for taking advantage of the tax credit. That’s not a very long way away. Which is why it’s so important to get cracking right now so that the next 60 days are fruitful for both you and your clients. Heck, the looming expiration may actually motivate enough people that the next 60 days become the busiest 60 days of your entire year. It could happen.

But it’s up to you.

Here are some ideas to help you take advantage of this opportunity:

1. Send a letter to each and every client.

It is your duty as a real estate agent to keep your clients informed. Sending them information that is timely and relevant is a welcome piece of mail, not a nuisance. If anything, people are starved for information and all they get from agents are ads and flyers that have no relevance to what’s going on in the market right now.

Sending a well-crafted letter informing your clients that time is running out and they only have 60 days to save $8,000 will get you a few “thank-you”’s. I’m willing to bet there are quite a few people out there who aren’t aware of the 2009 First-Time Home Buyer Tax Credit. Not only that, but among those who do know about it, I’m willing to bet that some of that group don’t even know it has an expiration date.

Don’t worry about the fact that some of your clients aren’t first-time home buyers. They surely know people who are. Your letter may spark a dinner discussion with their children, grandchildren, friends, or other relatives. This, in turn, could lead to a phone call to you asking about how to get in on this deal before it’s over.

2. Locate a building full of potential first-time home buyers.

Find a building in your area full of renters who may be considering a property purchase. With a little digging, you will find buildings like this everywhere. There may be one right around the corner from you. You’re probably so accustomed to walking past it every day without thinking about who might be living there.

Send a postcard to every resident of that building informing them about the tax credit. Be short, sweet, and simple. Don’t oversell. Provide information and a way for them to contact you if they want more. That’s it.

Throw in a few advantages of owning over renting. Tie these into the current economy and highlight the fact that now is a fantastic time to make the leap to owning—especially in the next 60 days.

3. Hold a seminar for first-time home buyers.

Promote a seminar in your local newspaper. You can title it “$8,000 First-Time Home Buyer Tax Credit Is About To Expire—How To Get In On This Deal Before It’s Too Late” or something similar.

4. Hold a teleconference.

You can do this in place of a seminar or alongside it. Some people who would never show up at a seminar might like the anonymity of being on a teleconference call without being seen or having to shake hands with a group of people.

Whatever your clients’ preferences, make it easy for them to get the information.

5. Get to Open Houses and have information with you.

Open Houses are a great place to disseminate information, regardless of whether or not you make a sale from the Open House itself. Start thinking about Open Houses as a self-promotional tool rather than a deal closer. When you do, you will be seen as an informative expert rather than a pushy salesperson.

People will love the fact that you took the time to put together information on a way for them to save $8,000. Use the advantage of having them in your presence to remind them of the fact that this money could be theirs—but only if they act fast.

You need to be where buyers are right now. You need to be doing whatever you can do to get the word out that you are here to help people save as much money as possible in the purchase of a new home. You need to remind people that time is of the essence.

So, get out there and start making the next 60 days the most productive 60 days of your year!

By Denise Lones CSP, M.I.R.M.

The Appraisal Nightmare

Agents, unite!

We have a problem that we need to stand up against—and we need to do it together. It’s something that affects each and every one of us.

As real estate agents, we all need appraisers. Many appraisers are top-notch professionals as well as wonderful people. I am great friends with many of them. But the appraisal industry is being forced to take a turn that is becoming a thorn in the side of the entire real estate industry.

Case in point: A client of mine called me last week.

“Denise, I’m so upset,” she said. “I represent a seller and we had a deal that was about to close. Then, the appraisal came in extremely low—from an appraiser who has an office a couple of counties away from the home that they appraised, in fact the appraiser didn’t even know how to get to the property and had to ask me for directions. The buyers then responded to the appraisal by demanding that we lower the price of our house by over $50,000. My seller is overwhelmed and can’t reduce the price by $50,000 and the deal is going to collapse because of this ridiculous appraisal.”

Actually, this isn’t the only phone call like this I’ve had recently. In the past two months, I’ve had at least thirty such complaints from agents who have to deal with out-of-town appraisers who sour deals by coming in with low—and totally inaccurate—home prices.

The problem is that appraisers are allowed to take on clients many miles outside their area of expertise. Funny thing that agents are expected to have direct market knowledge and encouraged not to sell homes or help people buy homes in areas they are not familiar with….and for good reason. I think it is essential that agents work in an area that they are familiar. So why are appraisers doing work in other counties that they may not be familiar with? I guess I still believe that the appraisal on any home depends as much on the location of the home as the actual sticks and stones of the home. In other words an appraiser needs to be familiar with the community and the neighborhood.

There’s a very bad precedent being set here. It’s high time that we speak up and put an end to this madness before it gets completely out of hand.

Local appraisers should be the only people allowed to appraise properties in a particular area. There is so much that goes into an appraisal. An out-of-towner just isn’t equipped with enough information to make a valid assessment of a property’s value.

When a local appraiser examines a property, it’s more than just numbers and photographs of similar homes. Local appraisers have the bonus of deep knowledge about the area—from experience having done many other nearby appraisals. Personal experience has taught this appraiser exactly what to look for in the neighborhoods of his or her area.

They know the particular problems that any particular area has suffered over the course of a period of years. They know the perceived value of living in a certain neighborhood—because they have probably appraised in that neighborhood before. They have the benefit of seeing first-hand market changes in their area of expertise over time.

None of this knowledge is available to an outside appraiser because to know an area is to live and work in it every day. That’s the value of a local appraiser—who more often than not, gets the price right by virtue of just being a part of the area.

Anyone from the outside can come in, snap a few pictures, and make a judgment based on appearances alone. But does he or she know about local selling trends—such as little “pockets” of homes that sell faster because the surrounding neighborhood has a huge public appeal? This is knowledge that only a local appraiser would know.

The big question here is: Why are appraisers allowed to practice outside of their area of expertise? The question I have is this: Is this in the best interest of our buyers and sellers? I would emphatically say NO!!!

Appraisers can come in from two counties away, make a quick appraisal, and get away fast. Is this fair? No. Is this reasonable? No. Is this something we’re going to let slide? NO!

It is time that we get together and unite against this unfair practice that affects our livelihoods. We are at the mercy of inaccurate pricing that directly determines our bottom line. It is our duty to our businesses, our industry, and our own self-respect to stand up for our rights and fight this practice.

If we don’t, we will lose many more transactions to this unprofessional behavior. An out-of-town appraiser just can’t make an accurate assessment of a property in an afternoon of research. I believe it’s impossible.

Do you believe it’s impossible too? Then I want to hear from you.

I want to hear your own experiences with this problem. Email your appraisal experiences and then let’s unite and send this information to the State and National Association of Realtors and the Department of Licensing. This is a big issue that needs our attention. We need to work together on this. I look forward to hearing from you.

Agents, unite!

By Denise Lones CSP, M.I.R.M.

Contrarian Selling: The Key To Big Money In Real Estate

Most people are conformists, not contrarians. When we’re children, society drills it into our heads to “fit in,” “follow the crowd,” and “avoid making waves.”

This may work when you’re in grammar school, but when it comes to selling real estate the opposite is true. Being a contrarian is your key to big money because it helps you to stand out from the crowd, which is much more important than fitting in.

This is also true in all areas of life. The truly successful people in all businesses have learned to carve out special services they provide that NOBODY else does. This is the essence of a contrarian—a true leader, not a follower.

You too can be a contrarian—a big moneymaker—in your business. All you have to do is follow a few steps to get started.

First, analyze not only what everyone is doing—but also how they’re doing it. Sit down with a pen and paper and make a list of your competition. Write down everything you see them doing in your community.

Then, put yourself in the mind of the consumer and ask yourself, “What kind of experience would be ten times better than what’s being offered? How can I take what’s currently being done and add to it like nobody else is doing?”

Next, take a good hard look at your own business. This is an extremely important step. In real estate, there are so many activities that can so easily be defined and analyzed for improvement. Yet, most agents don’t take the time to analyze the flaws in their own business.

Let’s take Open Houses as an example. How could you be a contrarian at Open Houses? Well, most agents put out three or so signs, hold the Open House for two or so hours, and say the same things over and over again to everyone who visits.

As a contrarian, you could do more. You could provide drinks and food. You could provide an area map showing the house in relation to the area—with recent sales figures written in. You could provide a neighborhood analysis. You could provide a five-year appreciation analysis of the area. All of these items are contrarian activities because very few agents provide this level of service at Open Houses.

How about your marketing? This is a great area to highlight your contrarian methods. You could become custom-branded. You could implement a custom follow-up system with communication items tailored to you and your personality. You could place ads that are fundamentally different than all the other ads in your local paper.

Most agents use the generic materials and ads provided to them by their company. But being a contrarian is all about being non-generic. You want to stand out, so stop relying on the generic ways of conducting business.

How about working with buyers? When you take a buyer on a buyer’s tour, do you aimlessly drive them around all day? As a contrarian, you could give them a detailed package of everything they’re going to see. You could give them a clipboard with paper to write on. You could have a cooler in the back of your vehicle so that when they get thirsty or hungry, there’s something there for them. You could provide a photo tour package that you send out later to remind them of everything they saw that day.

If you’re not doing these contrarian procedures, then you need to start right now. When you do, you will be amazed at the impact you have on your clients. They will see you in an entirely different light than your competition.

You may have heard the phrase in your life “It’s the little things that count.” This is exceptionally true when it comes to contrarian selling. All these little add-on services that you do will make you stand out from the “same-old-same-old” boring crowd. They make you unforgettable in the minds of your clients.

What happens when you become unforgettable in the minds of your clients? They talk about you! This is what you want. You want a word-of-mouth army out there singing your praises to the entire community.

So, make sure that you’re giving people something to talk about. Trust me, people will NOT talk about you if you just put a sign on their lawn. They will NOT talk about you if you just create a flyer for them. That’s what everyone else does. Stop doing what everyone else does.

Think about it. What are the special things you do when you list a home? Do you do custom photography? Do you hold “agent only” luncheons? Are your brochures full-color? Are they four to eight pages?

In today’s competitive marketplace, it is more important than ever to be a contrarian. It truly is the way to stand out, get referrals, and make the big money in real estate.

By Denise Lones CSP, M.I.R.M.

Agents, Wake Up and Find Your Market

You may not have noticed it, but the real estate market is on the mend. We have had six straight months of consistently increasing pending numbers.

This is a sure sign that people are becoming confident about buying real estate again. Not only that, but recovery is on the way for the higher-end market as well.

The higher-end market was definitely hit the hardest by the recession. Now that the lower-end market is recovering so strongly, it’s going to do what it always does—create a positive trickle-up effect.

This is why it’s so important for you to know your facts. I cannot tell you how many agents I talk to weekly who moan and groan and whine about the market. I always tell them the same thing:

Get up. Get to your office. Get on the MLS. Do your research. FIND the market.

The truth is that there are many markets that are extremely active.

Maybe you have to stop thinking about selling something different than what you’re used to selling. Maybe you need to sit at an Open House at a lower price range. Maybe you need to find the most active price points, styles, or locations.

With market recovery comes opportunity. You need to be ready for that opportunity. It’s time for you to be out there finding new and creative ways to be a real estate agent—not just the “same-old-same-old” of placing boring ads and waiting for the phone to ring. That strategy doesn’t work anymore.

You need to wake up, get out there, and figure it out. The answer for you is going to be a different answer than for another agent. There is no “one size fits all” solution.

Don’t believe the market is recovering? Then, consider the truth about short sales. They’re on the decline. That’s a sure sign that the overall market is on the mend.

It’s very simple math. When short sales go up, that means the market is going down. When short sales go down, that means the market is going up.

People stop doing short sales because they see the light at the end of the tunnel. They can sense the market is returning and their confidence grows. This is a very good sign of recovery—and it’s happening now.

Remember the rules. When pendings are up, buyers are buying. When short sales are down, there is more consumer confidence. All of this points to one very important fact:

The real estate market is back!

So get back in the game.

Get out there.

Find your market.

By Denise Lones CSP, M.I.R.M.