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.

FANNIE MAE FINALLY GETS IT RIGHT FOR REAL ESTATE AGENTS WITH SHORT SALE TRANSACTIONS

It’s about time that somebody figured out that real estate agents have been fighting an uphill battle when it comes to short sales.  After months of nightmare scenarios coming to life, Fannie Mae has finally done something about the problem.

With new rules in place effective as of March 1, real estate agents will have an easier time getting short sales closed—and getting paid for their efforts.

Any real estate agent who has ever been involved in a short sale transaction knows too well what I’m talking about.  The situation has played itself over and over again—too many times.

Here’s what happens:

The agent works overtime to put together a fast transaction to get a property sold.  Everything progresses swimmingly.

Then, right before closing, the lender calls and says, “Everything is all set.  We agree on all terms—oh, except for the real estate commission.  You’re going to have to lower that.”

Nothing infuriates me more when I hear this—and I hear it way too often from too many agents.  It’s reaching epidemic proportion.

After all your hard work—performed at triple speed to satisfy the demands of a short sale—suddenly you’re held over a barrel by an unscrupulous lender.  The demand to cut your commission lands on you like a load of bricks, burying you in its insensitivity to your efforts.

Short sales have enough emotion surrounding them.  Now, the lender takes this snake-like final step, sending you through the roof with anger.

In short sales, the real estate agent is the hero who swoops in to make the transaction a reality.  Then, somebody has the nerve to say in effect, “Thanks for everything.  You’ve done a great job.  But we’re not going to pay you.”

Talk about a slap in the face!  It makes me so angry just writing the words.

It’s not just the audacity of expecting work for very little or nothing.  It’s the fact that by taking this low road, the lender puts the real estate agent in a horrific position.

If the agent doesn’t agree to take a reduced commission, he or she looks like the bad guy.  The lender goes to the client—your client—and says, “We just couldn’t put the deal together because your real estate agent is so inflexible.”

No agent in his or her right mind wants to see their client get treated this way, especially considering all the emotion already present with a short sale.

But now—thank heaven!—somebody has recognized this problem and is taking the first step to doing something about it.  It’s not the biggest step in the world, but it’s one heading in the right direction.

According to the exact words from Fannie Mae (Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers):

Effective March 1, 2009, closing of preforeclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in aggregate.  Servicers are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with preforeclosure sales.

Great news.  Fantastic news.  I almost leapt for joy when I read it.

Because somebody out there “gets it”.  Somebody out there knows that real estate agents have been getting the short straw on this for a long time.

Yes, the rule is tiny in comparison to the wide-ranging short sale nightmares now commonplace in the industry. 

But this is a good start. 

Yes, I’d like to see this apply to more than just Fannie Mae and not just to loans in default (which is the case with this new rule).  But at least somebody—somewhere—heard our complaints.

Sample Before and After Images for Marketing Makeovers by Denise Lones

Here are a few samples of ‘Before and After,’ images that we have done for some of our past clients. Feel free to click on each image to enlarge it to see the images in more detail!

Before Image

After Image

Let’s look at another sample! 

Before Image

 

After Image

Here is one more sample!

Before Image

After Image

To take your real estate marketing to the next level and receive more information on our marketing makeover give us a call today (360) 527-8904 or go to our website: www.thelonesgroup.com

The Lones Group

Our Marketing Makeover Programs Explained by Denise Lones

More often than not your materials are seen long before you are! Remember the old adage “You only get one chance to make a first impression?” In any business your marketing pieces or ‘materials’ ARE your first impression. What do your current business marketing materials say about you and your business? Are they consistent and dynamic? Or are they sporadic, and unprofessional?

Marketing Makeovers are a standout and effective solution that not only helps agents simplify their business processes in order to maximize their potential, but a system designed to increase income and maximize quality of life. With a Marketing Makeover, you won’t just get a collection of attention-getting marketing materials; you will receive an integrated branding, follow-up, and client care service, coupled with powerful property marketing collateral.

As Denise Lones says during her packed Safari Club classes, “Combine a strong, consistent marketing message on a unique and memorable marketing piece and watch the business flow in!”

Marketing Makeover by The Lones Group

The Signature Makeover Program  (view now)

• Custom design, theme, fonts, colors, the works
• Work directly with our design artist professionals
• Marketing customized to you, your market, your goals

The Instant Image Makeover  (view now)

• Fast turn-around lets you quickly begin your marketing campaign
• Largest online Real Estate design gallery complete with follow-up and business building tools
• Ability to retire a design of your choice

Take a look at our next blog that shows you actual ‘Sample Before and After Images,’ of some of our past marketing makeover clients.

The Lones Group