Gabrielle's Blog

Denise Lones, founder of The Lones Group sends out a little newsletter every Friday called The Zebra Report. I've come to value these, as she's typically "spot on" in her assessments of the current real estate market, tasks and practices of effective and successful agents.

Almost immediately after whining a bit in my blog entry yesterday about needing to "reset" myself and get back in high gear, The Zebra Report arrived in my Inbox and, once again, Denise must've read my mind. Here came her advice and thoughts for the week, which were, as usual, exactly what I needed. I'm gonna start with #3!

I touched base with Denise to be sure I could post her thoughts here and with her usual good grace, she said sure! Just be sure they know who wrote it.

So, with that out of the way and much thanks to Denise, below is her great "coaching" tip for the week. I don't coach with Denise, but I love her approach and tips. You can find more of her information at www.thelonesgroup.com.

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

There is one skill that will make you all the money you want.  It is an elusive skill that 95% of the world neglects every day-especially real estate agents.

I can't tell you how many times I've visited an agent's office and the first thing I noticed was a lack of this one skill.  What is it?

Consistency.

Consistency is the one beast that when tamed, gives you everything you want out of life-not just in real estate.  However, it seems that real estate agents have a notoriously hard time with it.

Most agents are very talented at what I call the "Stop-and-Start Syndrome".  This is the disease of stopping projects and then starting new ones. 

When the new project doesn't produce results fast enough, the agent stops and starts something else.  It becomes a vicious cycle.

Consistency is the answer to putting structure on your business-and your income.  I'm constantly being asked by agents, "Denise, is there a way to transform real estate from a feast-or-famine business to a steady income business?"

The answer is yes.  But it starts with consistency.

Here are the four areas in which all agents need to take more consistent actions:

1.  Follow-up.

If you ask the clients of any one hundred agents what kind of consistent follow-up they receive, I can safely predict that over 90% will say they receive nothing consistently.  It may be a flyer here, a letter there, maybe an occasional phone call-but nothing regular.

My definition of a consistent follow-up plan is that you are in regular contact with your clients over an extended period of time.  That might be a monthly mailer about real estate.  It might be a weekly email.  It might be a phone call every three weeks.

But it's something that's scheduled and checked off your to-do list.  Without consistent follow-up in place (for potential, current, and past clients!), there is no way you will ever have a consistent income.

2.  Lead generation.

Lead generation is the area in which real estate agents are the weakest in terms of consistency.  Most agents start a lead generation campaign when they desperately need the money. 

This is the worst time to decide to start one.  The agent is stressed out, not at the top of his or her game, and not in the best frame of mind to begin looking for new clients.

This is why it's so critically important to start a lead generation campaign before you need one.  By the time you need one, you'll already have one in place. 

Something else I often see when an agent starts to do well is that they slack off on their lead generation.  Big mistake!  Lead generation needs to continue in good times or bad.

3.  Taking time off.

I still haven't gotten this point across to many of you, so I'll keep repeating it until I do.  The more regular time off you fit into your schedule, the more money you make as a real estate agent.

Yes, it sounds silly, but I guarantee you that the agents I know who make the most money also take the most vacations.  They are more productive because they are well-rested, recharged, and always at the top of their game.

4.  Paperwork and organization.

I visit many agents whose desks are covered in piles of papers.  I tell them to get rid of the piles.  Then, at our next meeting I notice that not only were the piles not taken away, they're higher.

This is bad.  All agents need to schedule-and when I say schedule, I mean DEVOTE-30 minutes a day to organizing papers and files.  If you're one of the agents with the piles, then maybe you need to spend more time than that on this task.

But you have to do it-because like it or not, paperwork is a necessary evil when you run a business.  Very few agents I know sit down and organize their papers consistently.  These agents tend to do the paperwork the very moment it's needed-instead of having it ready to go at a moment's notice.

When I was an agent, I had systems in place so that if I needed a form it was always clearly labeled and ready to grab.  When you implement similar systems in your business, you'll be amazed at how much new time you have for other tasks.

Consistency in any field equals success.  Finding out what it takes to be successful-and then DOING those things consistently is the key to success in real estate.

Or anything, for that matter.

________________________________________________________________________________

Sigh, it's happened yet again. Somehow no matter how much counseling, another Buyer's forgotten one of the golden rules of buying a house: If you spend money on credit cards, buy a new major appliance on credit, buy a new car, decided to furnish your new home before closing ... you run the risk of not qualifying for your loan. Even if you qualified before you ever started shopping.

There's nothing more disheartening to find the home of your dreams, go through all the steps ... qualify and be preapproved for your loan, inspection, title searches, negotiations, etc., ... and then find out just before closing that, yes, the underwriter reviewed that last credit report only to find an additional new monthly payments

OH NO! There's a new credit line that blows the debt to income ratios totally apart.

Yes, sometimes life gets in the way of judicious decisious during the period of time between making application for a home loan and closing. And some Buyers have sufficient income and are shopping far enough below their top qualifying number to sustain an extra monthly payment, but typically not.

Not only are your credit scores, credit history, and monthly debts examined at the time application is made, they're checked again right before closing to be sure no significant changes have occurred. Qualifying for a mortgage is difficult right now. Hang on just a few more weeks. Wait until after closing.

"Tubby" is a well-loved member of our family that, obviously, lives up to his name. Shortly after this photo was taken, he did gain a bit more room, thanks to his move to the country with the rest of the family.

For help with your next move, call Tubby's "mom." I'm always delighted to be of help for your own growing pains.

I have the most special hubby! A while ago, he brought home this gorgeous bouquet of roses ... just for me!

I love working in the garden and would be thrilled to grow a bush of these beauties. Yes, these are hothouse grown, I'm sure. (Of course here in Auburn, Washington we're definitely in a hot house at the moment!)

So ... have you ever seen a bush like this? Of course, if I can find this, then hubby wouldn't be on the hook to bring them home to me now and then! Hmmmm, this could be a problem ......

Farmers markets are the best place to stock up on fresh fruits, veggies, flowers ... and kettle corn! That's definitely the case at the Auburn International Farmers Market, held every Sunday from June 14th into September or so.

In addition to the food goodies, there's typically a guest chef cooking up farm fresh goodies, along with kids activities such as face painting and the Auburn Library storytelling time.

Held at the Auburn Sounder Train Station, 23 A Street SW, from 11am to 3pm, you'll want to stop in and stock up for the week!

Want to exhibit or sell at the market or just need more information? Visit the official Auburn International Farmers Market site.

One of the stickiest questions on a seller disclosure form asks whether permits were obtained for any remodels that were done ...

Yikes!

Without a doubt, that question and all others on the Disclosure must be answered honestly. But it's a sticking point with some Buyers and I have to wonder how this is being treated by appraisers. After all, every jurisdiction has its level of necessary permits. Some list a permit necessary to install a fence, reroof a house, even move a light fixture. Sigh. There are fees involved and time!

With the prevalence of all the DIY shows, big box hardware stores, books and books and books of easy instructions, etc., homeowners are readily attempting ... and succeeding very well! ... at "do it yourself" projects around the house. Adding light fixtures. Adding a shower stall. Replacing roofs, Sprinkler systems, hot water heaters. Converting garages into rec rooms. You name it. It happens everywhere.

Even in my own household. I live with "Mr. FixIt." And he's daggone good at what he does. He's removed ceilings to expose gorgeous beams. Added recessed lights. Wired surround sound speakers. Replaced toilets. Laid tiles.

Should we have permitted these DIY projects? Maybe .. Probably. But ... hanging my head here ... we didn't. And I know we're not alone by the remotest stretch.

What impact will these "within the house, diy projecs" have on resales and appraisals? With the prevalence of FHA & VA loans right now ... and the more sticky appraisal processes in place, what do you think? Are we all going to be "tarred and feathered" at the time of sale?

Making an offer to purchase a home in Washington state is complex. It's not unusual for a Buyer's eyes to glaze over a bit when faced with the stack of 20 pages or so that comprise a typical offer on a new(er) home built in a subdivision or city. Add to that "typical" stack unique properties of homes with septic systems or private wells ... or any of what seems like a bazillion unique features ... and the stack of pages just seems to grow exponentially.

When working with a buyer for the first time, I like to provide them with a couple of the most commonly used forms so that they're prepared a wee bit for the onslaught still to come. Here are arguably the most common forms used, along with a very brief summary of their purpose. Remember that every agent has their own list of favorites ... and forms vary hugely in different areas.

• Purchase and Sale Agreement This five page form specifies the overall terms of the offer, along with identifying any other addenda that is attached and made part of the offer. Not only does it clearly identify the property plus what is included in the sale, but it identifies the purchase price and "who will do what and when." 
• Financing Addendum Another two pages, this addendum identifies the type of financing the buyer will use, the amount of their down payment, any closing cost contribution to be made by the Seller, when and how the Seller can request confirmation of a lender's commitment to close on the sale, along with appraisal issues.
• Optional Clauses Addendum (2 more pages!) This form is commonly used to identify (or not) the type of title insurance requested by the Buyer, what types of utilities the property may be connected to, obligations to maintain the property during the course of the transactions, along with builder statements regarding insulation, identification of any leased property, homeowner association issues, and a list of items that may be excluded from the sale.
• Lead Paint Disclosure and Identification of Utilities Lead Paint Disclosures are mandatory for homes built before 1978 (one page) ... and Identification of Utilities (one page) by the Seller, generally for use by an Escrow Officer when paying the last, lienable utility bills.
• Title Addendum (one page) asks a Seller to provide a copy of the property's title to the Buyer for review ... and identifies a Buyer's responsibilities during the review.
• Inspection Addendum (two pages)  This form sets out the various conditions surrounding an inspection (basically who must reply to whom and by when). In combination with a property inspection, this form allows a Buyer a time period to check out the neighborhood.

Okay, that's 14 pages so far ... Then there are some others

• Well Addendum (1 page)
• Septic Addendum (1 page)
• County Addendum for Septics & Wells (1-2 pages each)
• Short Sale Addendum (1 page)
• Contingency Sale (for Buyer's existing property) (2 pages)
• Blank Addendum (1 page) ... This one is added to many contracts, maybe most. It's a blank form that allows a Buyer and/or Seller to set out terms that aren't included in any other standard form

When you consider that over 70 forms exist for Purchasing property in Washington, it's not surprising that a contract is easily 15 pages or waaaay more!

No wonder a Buyer's eyes glaze over when they sit down to prepare an offer! That's a lot of pages!

Everyday maintenance aside, I am constantly taken aback by the appearance and condition of homes while touring short sale and bank owned properties. Such an event occurred this week. I'm still shaking my head at the fact that while touring "starter" homes with potential Buyers, 2/3rds of them were completely unliveable. I'm not talking about just messes ... I'm talking about "hold your nose" and tiptoe.

What happened to taking pride in the American dream? When did it become acceptable to write on the walls with markers, splash paint on carpets, urinate on the floors, smash holes in the doors? I mean even if some of this is from pets ... good grief!

Thousands of homeowners are in great difficulty with their homes right now -- no new news here. And I've been privileged to help a few of them sell their homes and salvage a bit of pride. While experiencing a great deal of sadness and frustration, they kept their homes up to the best of their financial ability. At least they kept them clean. Indeed at the time the change of ownership occurred, they moved out with dignity and left behind a home that had vacuumed floors, flushed toilets, clean counters.

Why does that feel more and more like an oddity rather than the norm?

I'm not talking about kids and crayons, although that can definitely be a problem too. I'm talking about destruction, pure and simple.

Where did we go wrong? What happened to taking pride in owning a home? One has to wonder whether the reason the homeowner couldn't successfully sell the home was because the place was trashed. Did this occur after the homeowner moved out and left the place vacant? Maybe ... sometimes ... but I don't think so ... ick ...