Five Principles Of Home Staging

Home staging is economical and a well-proven benefit to Realtors and home owners alike. Here are some basic staging principles every home seller can use.


Become a Seller, Not a Dweller
Homeowners must make the mental shift necessary to become Sellers, not Dwellers. It is only then sellers are able to realize they own a commodity to be sold and no longer their home. The way we live in our homes is different than the way we sell our homes. With this mental shift in place, the next step in the process may begin.


Clean and De-clutter
De-cluttering is the first principle used in home staging. Clutter is defined as those items in a room that are not necessary for its function or beauty. Clutter can be too many books, knickknacks, or accessories. With staging, only key accessories and furniture remain. The property will immediately appear more spacious and well cared for.


Here are some tips to keep in mind as it applies to de-cluttering:
1.A buyer wants to purchase a move-in ready home. A house that is not clean implies deferred maintenance.2.A buyer is purchasing square footage. Clear the clutter to create the impression of more space.3.Let the light in; buyers are drawn to open, airy spaces.

Appeal to the Masses
With the de-cluttering process accomplished, the next phase is depersonalizing. The buyer will want to mentally personalize it and imagine living in the house when it becomes theirs. This includes using neutral tones throughout as well as general updates which will appeal to the largest segment of potential buyers.


Realtors no longer have the almost impossible task of telling homeowners their faux finished pink bathroom really needs a neutral tone of paint (put in before and after of pink bathroom) or their beloved collection of gargoyles will turn off potential buyers.


If You Can't See It, You Can't Sell It.
Curb appeal is everything. It's the first impression a potential buyer gets of the home. Remember, if you can’t see it you can’t sell it. The easiest and best way to determine what needs to be done to the outside of the home and the lawn is to walk across the street. Look objectively at what the home looks like from that vantage point. Then, take the following curb appeal test:


1. Are the gutters clean and in good repair?
2. How does the driveway look?
3. Do the shrubs need pruning?
4. Do the trees need trimming?
5. How do the flower beds look?
6. Is the walkway leading to the house inviting?
7. Does the lawn look clean and neat?
8. Are the house numbers clearly visible?
9. Does the entryway and front door make a great first impression?
10. Are toys, tools, hoses and any other distracting items put away?


Amie Hebert Chaney, a Home Staging Expert (HSE), says Home Staging is the art of preparing a home for market to give the best possible first impression to potential buyers, resulting in a quicker sale and higher profit. The intent behind home staging is for potential buyers to be able to see the home as theirs. www.homestagingbyamie.com.

All The Right Moves

“Your body is a hologram of your being; a three-dimensional movie that is constantly on, showing others how you feel about yourself and the world.”
Roman Polanski, film producer
Airports are a great place to people watch! You can learn a lot about an individual as well as yourself, if you just sit back and observe the body language, clothing, conversations and the actions of others.

Imagine the following scenarios and jot down what your first impression and assumptions are:

1. A man wearing a suit and tie, with a suitcase rolling behind him is running through the terminal toward the exit. He shoots as he runs, “to your right, your right.”
2. A man who is balding, parts his hair just above his right ear and combs several long strands of hair across the top of his head toward his left ear.
3. An attractive young woman wearing a short-skirt, sits gazing at a handsome gentleman across the boarding area. She licks her lips and winks.
4. A woman is pounding the counter with one hand, pointing her finger at the customer service attendant behind the counter and speaking in a very loud voice.
5. A passenger sits waiting for the call to board the plane. She alternates between biting her fingernails, wringing their hands and rubbing her face.

Let’s see if your first impressions matched those of others:

1. He is probably a businessman, based on his clothing. His plane was late and now he is rushing to catch another plane, meet someone or catch street transportation for his final destination. He is assertive about his needs to move quickly by shouting his path to individuals who might be in his way.
2. The man is either frustrated that he is balding, is trying to look younger then he really is, or is self-conscious about his appearance.
3. The young woman is giving sexual indications she is attracted to the handsome gentleman. She may or may not know him.
4. The passenger is obviously upset and is using very forceful body language to express her anger or try to obtain what she wants.
5. More than likely, this individual is either nervous about the flight or upset about something that has or is about to happen.

We never get a second chance to create a positive first impression. Whether we like it or not, people will usually make a sub-conscious judgment about us instantaneously when we first meet, or they observe us from a distance. We only have two to seven seconds to make a positive first impression.
Observations by others occur in numerous places: the airport, the office, at network functions, parties, weddings, church events and even PTA meetings. Additionally, we never know when a first impression may or may not lead to future business. Let’s examine actions, appearance and body language that can either help or hinder your ability to create a positive first impression in any setting or situation.

Leave the limp handshake at home. Besides being offensive to most people, a limp handshake may indicate you are either insecure or insincere. A firm handshake shows you are confident, open, sincere, probably a leader and a caring individual. Be careful to avoid the bone crusher effect however, which will tell everyone you want to be in charge and just might be insensitive.
Avoid too much jewelry. The old saying “less is more” is certainly the secret with regards jewelry. Men who wear more then a watch and ring are sometimes viewed as arrogant. Others may tend to think they are trying to impress people with their wealth verses their intelligence or personality. Women likewise do just fine with only earrings, one ring per hand and a watch or bracelet. Long and loose necklaces may catch on tables, desks or even doorknobs. Bracelets may make noise on desks, tables or interrupt meetings to
the dissatisfaction of everyone there.
Honor the comfort zone. Americans like personal space! The more room they have, the better. A good rule to follow in a social or business setting is to keep three feet from the individual you are conversing with.
Primping in public is a no-no. It’s tempting to comb your hair or touch up your make-up just before entering a meeting or right after lunch. It is however, a definite no-no! Primping in public shows arrogance and a lack of consideration for others (who knows where your hair might fall). Find a private place or retire to the restroom to do your physical touch-ups.
The eyes say a lot. When someone avoids eye contact, it typically means they are embarrassed or possibly shy. Heavy bags under the eyes can indicate a lack of sleep or to much alcohol or possible drug use. Eyes wide open indicate fear or surprise. Show confidence and respect, by looking someone in the eye while talking with them.
It’s not what you say, it’s how you say it. A loud voice makes you appear overbearing and self-important. The manner in which you speak and the vocabulary you use is also an indication of your education level. Voice tone gives clues to your emotions or whether you are trying to control the conversation. Some women for example use a high-pitched little girl voice to help manipulate others. Rapid speech indicates fear, excitement, impatience or anxiety.
Are you bored? Was that you glancing away from the speaker for the fifth time in less then a minute? Did a yawn slip out too? Are you constantly looking at your watch? All of these are indications you are either bored with the conversation, the event or the individual. If you find yourself reacting with any of these behaviors, excuse yourself politely and leave before you do irreparable damage to your reputation or image.
Shoes reflect your image. So many people forget their shoes are an important projection of their appearance and habits. It is important your shoes are well maintained and polished at all times. If heals are worn down, replace them. Women’s heals higher then two inches in a business environment are not appropriate. Anything higher can be mistaken as sexually suggestive.
Walk with confidence. Stand erect, walk deliberately, hold your back and shoulders straight and walk with determination. Project you are a leader. Leaders come in all shapes and sizes. Some are extroverted while others may be quiet and reserved. Regardless of their inclination, most leaders tend to dress conservatively and wear attire that is appropriate for the occasion. Leaders make good eye contact with everyone they encounter.

Keep in mind:
Traditionally their haircut and make-up are conservative.

Be attentive and remain open.

Maintain eye contact with the person you are conversing with and face them fully.

Follow the conversation and provide feedback…a simple nod of the head will do.

Express warmth and concern with a smile.

It is only human nature to notice a person’s physical appearance and body language before we tend to view anything else about them. Like it or not, we are inclined to judge others based on that initial presentation of what we see before us. While we can choose our clothing, hairstyle and even our physical appearance to a certain degree, for the most part we have no control over our body language.
It truly projects how we are feeling about our surroundings, others and ourselves. As an observer it is your responsibility to understand the various physical reactions or the body language that is typical of certain emotions. For example, an individual with poor eye contact might be indicating they are nervous around you, telling a lie, are bored with the current situation or are embarrassed.

It is your task to assess the outward appearance combined with the body language to comfortably identify what the individual has indicated. When you have had the opportunity to meet someone more then once, it is helpful to look for consistencies in their appearance and projections. It is usually easy to dress the part we choose to project, remember however seldom does our body lie

4 Easy Ways to Cultivate First-Time Home Buyers

RISMEDIA, July 1, 2009-This article is about cultivating your first-time home-buying clientele after they are snuggled in nicely. The average home turnover is about 11 years, with a range of six to 16 years, depending upon your state. You definitely want to build relationships with your younger clients, knowing they could move again in just a few years.

Remember, generally, the first home is purchased to end renting and to build some equity. The desire for a second home usually begins when the family starts to grow. The third home is usually the dream home. If you like repeat business and referrals, targeted and consistent communication to this young group is key.

Since they average around 32 years of age, these clients will crave and need information about caring for their biggest investment. Here are some easy ways you can get started fulfilling their needs:

-Take note of what they focus on upgrading in the home. Send an e-mail or give them a call with a trusted vendor of yours for the project. Or, just send them vendors on a timely basis. A good example is HVAC vendors before heating and air-conditioning seasons.

-If you feel it’s appropriate, invite them to join you on your favorite social network. This is a great way to get to know them better and get referrals, too.

-E-mail them when a larger home in their neighborhood lists or has sold. They will be interested, and you may spark a discussion about moving up.

-Invite them to subscribe to your blog or news articles on your website, which discuss new homeownership, maintenance, remodeling or other related topics. Or, send them links to your articles or others that may be of
interest.

We could come up with enough tactics to fill this magazine, but the point is for you to develop your own and adjust them as necessary. Keep meticulous notes on each family because the more you personalize your communications, the more effective they will be for you. RE

Chris Kaucnik is marketing director for Home Warranty of America, Inc.

For more information, visit www.hwahomewarranty.com.

The Skills And Scripts Of Effective Lead Conversion

The Skills And Scripts Of Effective Lead Conversion


Definition
Lead conversion is the set of communication skills and verbiage that turns your contact with leads into buyer and seller appointments.
What Gets Measured Gets Done
When we discussed the first two elements of Lead Management, Lead Generation and Lead Contact, we gave you a measure for their success. That measure was that you generate and contact enough leads to reach your exceptional goals. You can enormously reduce the number of leads necessary by developing strong lead conversion skills.
The measure for this third element of your Lead Management system, Lead Conversion, is that you turn the highest possible percentage of leads into buyer and seller appointments; and that you list or sell more than half of the leads that you convert. This latter measure is more important than the former. It is more important to have quality appointments that turn into listings and sales than it is to have a larger number of appointments.
To accomplish these measures you must focus on two important goals.
1.The lead wants to meet with you.2.Determining whether or not you want to meet with them.To measure your effectiveness with these goals we want you to do what our coaches lead our clients to do. Each week record every new initial appointment. Include the name, source of that appointment and whether you anticipate that appointment to turn into a closed sale or listing sold. By recording the appointments in this way you are able to measure whether you are on track for your goals in the simplest and most effective way.
The Skills
Some of the more prolific sources of leads that create opportunities for you are; when you get a call from a friend that they are thinking about selling or they are referring you to someone that they know is thinking of buying; when you get a call on an ad or one of your signs; when people walk into your open house; when your web site notifies you of the e-mail addresses of people viewing your listings.
The skills you need to turn these opportunities into listings and sales are largely communication skills. The goal of your communication with these people is to qualify them for three things.
1.Their financial ability to make the desired move.2.Their motivation to make the move.3.Their urgency. In order to qualify the lead as above requires the following five communication skills.
1.Active listening, this means listening in a way that makes the other person feel like they are being heard and understood. You accomplish this in person with eye contact, nodding your head, making understanding sounds or comments like, “mm hmm,” I understand.” “That makes sense.” Appropriate laughter is greatly appreciated. On the phone you do this with the verbal responses. On the web you actively listen by confirming your understanding as you respond with the next thought. 2.The ability to ask questions. This requires that you both ask the right questions, ask them in a sequence and with a tone that makes the person comfortable even eager to answer them. On an ad call or Internet lead you begin by answering their questions about the property. Then following your answer with a relevant question. “The home you called on is priced at $289,900. Is that the price range you are looking for or would you prefer something higher or lower than that?” 3.If it is a referral ask about their plans and their move before you ask about their property. In other words take an interest in them as well as in the business they may offer you. “Hilary suggested I call. She may have told you that I was able to get them into that really nice two-story home in Brighton. May I ask what you guys are thinking of doing?” 4.The ability to judge whether to make an immediate appointment, to send the person to a lender for financial qualification, or choose not to ask for an appointment. This includes your knowledge and understanding of Fair Housing Laws so your decisions are legal and not based even unconsciously on your impression of the client’s being of protected classes.5.The ability to share the value of meeting with you. On a listing appointment what do you do that helps them accomplish their goals? Do you give them a thorough market analysis, your strategies for marketing and attracting buyers, your ability to encourage an offer and negotiate the best price, and then your ability to follow up and get the transaction closed on time? 6.With a buyer do you go through the entire buying process including what professionals, attorneys, appraisers, and inspectors they will need or want? Do you review a copy of the contracts and paperwork they will encounter? Do you help them sort through the financing options? 7.The ability to ask for an appointment to meet with them and provide all the value of the items above.8.Your lead conversion skills and scripts have a great deal to do with your ease and enjoyment of your career in Real Estate in addition to contributing significantly to your success. We include many scripts and tips for all the above situations in our 250 page Coaching Manual. Many of them you’ll be able to access online. Our coaches work extensively with you to create a system for your best lead conversion style




Author Information
Adele Scheele
Dr. Adele Scheele, career expert for NBC's "Today Show" and bestselling author of Skills For Success, is hailed by the business world, professional associations, colleges and universities as an original, articulate voice for both men and women. She motivates her audiences to take more courageous risks in their personal and professional lives, as well as their organizations, communities and families. Dr. Scheel equips them with a practical step-by-step process for success. Copyright© 2000, Dr. Adele Scheele. For information about Dr. Scheele's keynote presentations contact the FrogPond at

Why Buyers Love To Delay Buying

Yes, there are times when a buyer legitimately can't make a decision. Many times, though, the delay is nothing more than a tactic on the part of the buyer to get a better deal. This is especially true of professional buyers, who see numerous salespeople on a regular basis. Why should anyone make a decision quickly if they don't have to? More often than not, the buyers believe that by waiting, they will get a better deal. The salesperson will get scared and will think the only way to secure the sale is to offer a discount. Buyers believe this because experience has shown them that it works!

Salespeople by nature are scared. Don't take offense to my observation, because I include myself in this profession as well. We, unfortunately, can view things too quickly in a negative manner. For most salespeople, the way out of a situation like this is to immediately offer the buyer a price reduction. This is exactly what the buyer wants! They are looking for the salesperson to show some fear and some sense that the sale may not happen at all. Once the buyer smells fear, they know a better deal is about to appear.

This is also a key reason why many professional buyers love to ignore phone calls, emails and all other forms of communication from salespeople. Nothing can make a salesperson more scared than a buyer who doesn't communicate with them. If you're a buyer, it's hard to find any activities that can result in a higher return on investment than ignoring a salesperson or holding off on making a decision. These tactics usually result in saving money.

Now let's look at this challenge from a salesperson's perspective. Salespeople love to close sales and they also love to close sales quickly, preferably with as little effort as possible. But effort - particularly mental effort - can make the difference. This is the ability to understand and rationalize objectively what is happening and what is not happening. This means understanding why the buyer does need to buy from you and how what you're selling will allow them to achieve their needs and objectives. The more you can build this kind of objective thinking into your attitude, the better equipped you are to keep negativity at bay. Negative thinking is the culprit that takes the biggest toll on a salesperson's level of success.

As soon as the salesperson begins viewing the situation negatively and how the sale may not occur, it's only natural for them to think the solution is to lower the price or offer something extra in the form of service. When the salesperson does this, two things happen.
• First, it confirms in the buyer's mind why the smart thing to do is to slow down the decision-making process.
• Second, it destroys profit margin for the salesperson.

While there are several techniques to counter these outcomes, there really is only one that is foundationally most important - the confidence of the salesperson. If the salesperson is not confident, then every other tactic or strategy is useless and will have little effect. Everything starts with the salesperson.

Confidence begins with the total belief in your own skill set as a salesperson and total belief in your ability to help the buyer fill the needs they have. If you don't believe in both of these, then there is nothing else you can do to prevent the buyer from taking advantage of you by delaying their decision. Buyers, especially professional buyers, can discern very quickly how confident a salesperson is. If they sense the salesperson is not confident, then they'll delay their decision. They have nothing to lose and everything to gain by doing so.

On the other hand, if you as the salesperson are determined to regularly and intentionally strengthen your own resolve and your own confidence, your natural reaction to stalling buyers will not be to cave under the pressure. Your reflex will be to wholeheartedly believe in your product, your price and your potential to help the customer achieve their goals.

Are you going to let fear or confidence determine your future? The choice is yours, so choose wisely. And profitably.

Activity Breeds Productivity

Some call it an aura, others call it a success attitude or the law of attraction. Call it what you like—I simply believe that when you are consciously and productively engaged in doing activities that generate business, you radiate a feeling of success, and when that happens success begins to follow you.


Agents who have little or no business and are stuck in “analysis paralysis” give off a sense of desperation and neediness. Without knowing it, the “I’m desperate, please list with me” feeling is communicated without words. In order to be successful today, we need to change the non-verbal message we are sending to the people around us. The easiest way to do that comes from being engaged in activities that produce results! If you are struggling today, maybe it’s not just that the market is bad. Oh, sure, that’s still a relevant factor—no question about it. But if you’re still doing business like it is 1995 –then those strategies just flat won’t work. If you haven’t made the necessary changes to compete and to grow you’re going to be left behind. I see so many agents who have taken classes on short sales, even receiving certifications and special designations, but haven’t yet implemented any new behaviors. Today, you must change, adapt, learn and every day go after that business with an attitude of success!


Creating a successful disposition is not difficult but it does require you to start doing things different every day. Here are a few activities that will help you breed the productivity that you truly desire and attract new business to you:


Get up every day and dress for success. The way you feel about yourself and how you look matters. Getting dressed to meet with clients will begin to prepare you for the clients you have not even met yet.


Talk positively to yourself and others. Use phrases like “I am going to get a new listing today”, or “I am the best agent on the planet and I will prospect until I find 2 new clients this morning.” Phrases like these, when spoken out loud and with enthusiasm, begin to have an effect on you and people around you. After awhile you begin to believe that positive self talk! Conversely, negative self talk will have the opposite result. For example, if you whine and complain about why you don’t have any business, you will start to doubt yourself AND as you project that aura of doubt, others will doubt your ability just as you do. Positive self talk is critical in creating a success aura.


Visualize your success. This is different than just talking to yourself and saying “I am a winner.” The process of visualization is closing your eyes and actually seeing yourself with that success. Imagine how you will feel, what kind of clients you will work with, what kind of new car you will drive, how you will look when you achieve that success. The more specific your visualization is the greater your chance of success.


Last night while watching the Winter X Games I noticed the gold medal winner prior to his run on the “Big Air” snowboarding ramp. He had his goggles on, but was completely tuned out to everything going on around him as he prepared for his jump. I could see him twisting his body, bending his knees over and over again mimicking his motions and moves that he was about to make in the air. Without a doubt he was visualizing his success, seeing his landing and celebrating winning the gold medal before he even started down the ramp. Seconds later he took off doing double flips and amazing acrobatics in the air and received a perfect score of 50, winning the gold medal. This practice of visualization has been used by professional athletes and professional business people for years and continues to be a critical component of success.


Prospect every day. However, you can’t just visualize your success, you must take action and practice getting business. If you are struggling and business is poor, your time each day should be spent doing activities that will produce real business. I strongly suggest prospecting for a minimum of 3 hours a day. This will require you to get out of your comfort zone and do things that you don’t love to do, activities that you find really hard to do. If it were easy, every agent would prospect! This is your opportunity to shine and start doing something most agents are not willing to do. By doing focused prospecting every day, you will begin to generate business and your financial situation will begin to change, making it easier for you to continue.


I challenge you to follow these four steps and watch what begins to happen in your life and business. You will attract motivated people and your disposition will change. Business will find you and it may not even be as a direct result of the prospecting activities you are doing. When you get engaged in income producing activities, you will generate more income.
Remember to get up and dress for success, say something positive to yourself, visualize becoming a top producer and closing more business, and then get to work to make it happen. These activities will create productivity and you will succeed at a level you have never experienced before.


Author Information
Verl Workman
Verl Workman is the national technology speaker/trainer that stands out as #1 when it comes to showing companies and their sales associates how to make money using today’s technology. For information contact the FrogPond at

Top 10 Negotiating Rules For REALTORS®

(Some of these rules refer to the situation where you are presenting and negotiation directly versus through the other Agent.)

Rule #1: Do not go back and forth between the Buyer and Seller more than twice or you make them crazy. At and after the third round your chance of making the sale drops dramatically.

• In the first round the buyer and seller are thinking about buying and selling the home.
• In the second round the buyer and seller stop thinking about buying and selling the home and start thinking about the money.
• At and after the third round they begin to resent each other. Both Buyer and Seller lose site of the home and money. They begin to make it personal and focus on the other party.

Your buyers and sellers are not experienced negotiators. In fact most have only experienced the often negative negotiations when buying cars. So, they are predisposed to fear and discomfort in a negotiation. Others get caught up in the fight and just want to win no matter the cost or loss. Either way these predispositions make it a lot harder for you. And you can avoid it if you shorten the negotiation.

Rule #2: Don’t let the buyers and sellers come to dislike each other.
You take responsibility for what you convey to all parties. The most frequent reason buyers and sellers come to dislike each other is because the Agent talks about one party to the other. So if you hear your client or yourself beginning to disparage the other client intercede and suggest that whatever the reasons for the Client’s behavior might be, let’s focus on putting together the sale and getting the move complete.

Rule #3: Stay focused on the goal of completing the sale.
Never let interruptions, the other party’s emotions, emotional outburst, personality, position or anything else distract you from the issues and the concessions that lead to completing the sale.
Stay calm. Listen. Empathize. Do not get involved in conversations about the party’s personalities. Do not get emotionally hooked by the emotions of the client. Be a professional. Whether your clients know it or not, they want and need that kind of focused objectivity from you.


Rule #4: People believe what is in writing.
So, support your position in writing. If a comparative market analysis supports your position, prepare it. If certain comparables support your position, provide them. If a report supports your position, copy that portion and use it.
And most of all put your offer in writing. Don’t negotiate verbally. I realize that it can work many times. I realize that some Agents will insist on it and there is little you can do at those times. Please for your sake and for your Client’s sake make those times rare. Verbal negotiations are fraught with potential problems, misunderstandings, misinterpretations, omissions, as well as simple changing of minds. Put every step of the negotiation in writing.

Rule #5: When you give a concession, ask for something in return.
You may not get anything in return but asking dampens the motivation to ask for more. The seller wants another three thousand dollars in price and the buyer says if I accept that I want the kitchen appliances. The seller says ok and so the buyer says we have been thinking about it and we want the washer and dryer too. The seller says ok. So the buyer then asks for…. You get the idea. If the seller says no the first time, even if they ultimately end up giving up the kitchen appliances to make the deal, asking for something in return dampens the buyer’s motivation to ask for more.

Then at the structural inspection or at the pre-closing inspection the earlier dampening of the buyer’s motivation carries forward and dampens the buyer’s motivation to ask for too much later.

Rule #6: Never take the first offer too quickly or easily.
It sends a message that may make your job more difficult later. When you have an offer accepted quickly wait a few hours to call the Buyer. Then don’t emphasize that it was easy.

On this same topic, don’t tell the buyer they have bought the house or the seller they have sold the house just because they have an accepted offer…. because they haven’t. The house isn’t sold until there are attorney’s approvals, approved inspections, a mortgage commitment and all other contingencies are removed. Instead of saying congratulations you got it. Say, “Congratulations you are on your way. We want to get the attorney’s blessing, get through the structural inspection and get through the bank process. I don’t expect any problems so I think you have a great home.”

Rule #7: Never gloat.
I remember earlier in my career walking into a seller’s house with a full price offer, all cash, and only attorney’s approval as a contingency. It had the closing date the seller wanted, no personal property. I was proud and pleased. This one was going to be easy.

So I strutted in with swagger and a smile. I said, “You guys are gonna love this offer.”

Well, as you might expect. They questioned me and challenged me about everything from the legitimacy of my buyer to where their cash was coming from, all because I didn’t have the good sense and sensitivity to realize these people are moving their lives. I treated it like a game and they quickly reminded me of its importance to them.

The next time I had the situation. I talked about how hard I worked to get them as much of what they wanted as I could. I couldn’t get it all but I hoped we were close enough to come to an agreement. They looked at the great offer and said, “Rich, you did great. We can accept this as it is.” Lesson learned.

Rule #8: When you hit an impasse settle everything else first and return to it.

As you present the offer to the seller and you reach an item they don’t accept, make a note to come back to it and get agreement on everything else first. Then, once you are through the offer completely, you will have isolated all the items, if there is more than one that requires negotiation. You will find that at that point the negotiation goes easier. There is nothing else on their mind and they know that this item or these items will complete the transaction. By doing this you create a momentum that carries you to success more easily.

Rule #9: Get the other party to negotiate with themselves. Never negotiate with yourself.

This is a more aggressive rule. Above, in Rule # 4 I said to always get your negotiations in writing. This is the exception that proves the rule.

Watch. I am sitting with the seller reviewing a Buyer’s Agent’s offer. The seller is willing to accept it and doesn’t want to lose the buyer or the sale. I say to them, “Let’s see what I can do without risking the sale.”

I call the other Agent (Agent is another one we capitalize) and ask if the Agent can reach their buyer. They say yes. I tell them that the sellers are in the room and they are really close to accepting the offer. If we could get another $1,500 it’s a done deal. Could they check with the buyers and see if they would move at all? And if they will, I want to get it wrapped up tonight while everyone is in agreement.

Ten minutes later the Agent calls to tell me they’ll do it or they’ll do $500 or $1,000 or nothing. A vast majority of the time I’ll get more and make the seller very happy with me. If the Buyers won’t move I call the Buyer’s Agent back in five minutes and to tell them that their offer was accepted as is and compliment them on their smart negotiation.

You may or may not approve of this methodology. I am not condoning or condemning it. I am just using it as an example of, “Get the other party to negotiate with themselves. Never negotiate with yourself.

Rule #10: Do not use these rules and approaches carelessly.

When these rules are applied or are done awkwardly or carelessly they cause your clients to distrust you. Be careful.

Done with care and confidence (and practice) you are going to have a lot more fun, be a lot more productive, preserve more time, and get the admiration and referrals from your clients because you will make them more comfortable in addition to getting them more money with your negotiating skills.


Author Information
Rich Levin
Rich Levin is one of the most successful Real Estate coaches in the nation by virtue of the measurable results of his clients and creator of the Real Estate Hierarchy of Success, a working model for understanding and planning your business. For information about Rich's Coaching programs, contact the FrogPond at 800.704.FROG(3764) or email susie@FrogPond.com

Mortgage rates break 5%

NEW YORK (CNNMoney) -- It's time to say hello to 5% loans.

The national average interest for a 30-year, fixed-rate mortgage surpassed 5% for the first time since May 2010, according to Freddie Mac's Primary Mortgage Market Survey.



During the week ending Feb. 11, rates averaged 5.05%. That factors in an average of 0.8 points in fees that the average borrower paid to lower his or her rate.

And rates quoted by Bankrate.com -- which look at loans not backed by mortgage giants Fannie Mae or Freddie Mac -- spiked to nearly 5.25% in the past week. (This index has been popping under and over 5% since early December.)

"That's a pretty appreciable increase and the pressure is upward at the moment," said Keith Gumbinger of HSH Associates, whose own barometer of mortgage rates has been rising quickly as well.

These rising rates will most impact those trying to refinance, rather than those trying to buy. Homebuyers tend to focus on other aspects of the purchase, according to Gumbinger, like whether they like the home and, especially, home prices.

Housing markets: Best recovery bets
"The interest rate is not the key issue for buyers," he said. "Increases do not produce a huge deterrent."

For one thing, prices tend to decline a bit in response to higher rates, which offsets some of the increase. For another, most buyers could absorb the additional $29 per month that the recent interest rate jump would produce.

The rising rates can give a temporary boost to home sales because waffling buyers to get off the fence thinking it may cost them more to delay.

This week's rate bump comes in a time of uncertainty surrounding the future of mortgage lending. Washington is mulling over the future of two government-backed mortgage giants. The two companies, plus the FHA, support the vast bulk of all mortgage lending.

"If you're thinking of buying a house, you're probably better off buying in this reasonably certain lending environment than in the rather uncertain environment that's coming," said Gumbinger


http://money.cnn.com/2011/02/10/real_estate/mortgages_break_barrier/

Shortsale up 49% In South Florida In 2010

From Condo Vultures

Shortsale Transactions Spike 49% In South Florida In 2010
Created on 1/3/2011 10:36:04 PM


The number of residential shortsale transactions in the tricounty South Florida region jumped by 49 percent on a year-over-year basis in 2010, according to a new report from CondoVultures.com.

Buyers purchased nearly 16,800 residential properties in Miami-Dade, Broward, and Palm Beach counties in 2010 at prices below - or short of - the outstanding loan amount owed by sellers. In 2009, buyers purchased nearly 11,300 properties short of the financing amount due, according to an analysis by the licensed Florida sell-side brokerage CVR Realty™.

"All indications are that shortsales will increasingly be the primary focus of buyers searching for properties in the South Florida market," said Hernan Osorio, the director of sales for CVR Realty™. "With the federal government's loan modification program having a minimal effect and the economy failing to create enough jobs to jumpstart the South Florida housing market, more homeowners are being faced with the prospect of losing their residences, either through foreclosure or shortsales. Luckily for sellers who do want out but are mindful of their credit, several lenders are beginning to view shortsales as a viable alternative to the foreclosure process."

Lenders sold 19,800 residences in South Florida in 2010, down six percent from 2009 when 21,050 bank-owned properties were transacted, according to the report based Florida Association of Realtors data.

Buyers are still anxious to acquire bank-owned properties but lenders have grown more hesitant to unload these repossessions given the economics involved.

Prior to the real estate crash, lenders generally expected the foreclosure process to take about six months to complete at a cost of about $40,000 in loss of debt service, unpaid taxes, damage, court fees, and attorney costs.

With nearly 265,000 notices of default filed against borrowers since 2007, the South Florida court system has been overwhelmed with foreclosure actions. In South Florida today, lenders now plan for an 18-month repossession process with a cost of about $100,000 per property, industry watchers said.

In the end, bank-owned properties offered on the open market generate a lower average price than properties that are sold as shortsales.

In 2010, the average shortsale price was $173,700 per residence compared to an average of $110,900 for a bank-owned property.

Another factor hurting the sale of bank repossessions are the allegations of administrative irregularities - also known as Robo-Signing - tied to the foreclosure process that may create title issues in the future for new owners.

The biggest obstacle buyers and sellers face in completing a shortsale is the amount of time and paperwork necessary to complete a transaction given all of the requirements of the banks.

The federal government has instituted measures to accelerate the process but the results have been mixed, industry watchers said.

In South Florida, the average shortsale was on the market in 2010 for 195 days before selling. Last year's figure is down from an average of 203 days in 2009.

Compare this to bank-owned properties that were on the market in 2010 for an average of 44 days, down from 64 days in 2009.

The overall average for all South Florida residential resales in 2010 was 121 days, down from 129 days in 2009.

"Lenders have reduced the shortsale approval time," Osorio said. "It is still not quick but it is faster. We expect the average amount of time necessary for a shortsale to transact to get short and shorter as the lenders embrace the approach."
Condo Vultures® LLC is a real estate consultancy and marketing company based at 1005 Kane Concourse, Suite 205a, Bal Harbour, Florida, 33154. You can reach Condo Vultures® LL


http://www.condovultures.com/Archives/View/tabid/111/ArticleId/11339/Shortsale-Transactions-Spike-49-In-South-Florida-In-2010.aspx

Short Sale? What is That?

Given the state of the economy, short sales are becoming more and more common. On average, more than 50 percent of the current listings and sales of property that I analyze are short sales, as compared to a traditional sale or foreclosure. The term 'short sale' gets thrown around a lot, and I want to make sure that people understand the short sale process in detail.

More importantly, should you need to 'short sell' your own property, you must be in a position of knowledge and power. So few are, and so many pay the price for this lack of knowledge.

First, a short sale in real estate is where the mortgage holder (presumably the bank) will accept an amount less than what is owed.

If you are concerned that you may need to proceed with a short sale, the first thing you need to do is find a real estate professional that knows how to properly negotiate and get a short sale approved from the bank. In order to do this, they have to know the right questions to ask you, know how to properly value your property, and know who to contact at the bank to get the short sale approved.

So many of the listings that I see on the MLS, or Multiple Listing Service, note the property as a short sale, but few include the word "approved" after it. Guess what happens frequently to short sale listings that are worked by agents that don't understand them? They become foreclosures.

As a homeowner, this is among the most important information that you need to have ready and available:

1. Know EXACTLY what you owe for your property. This includes first mortgages, second mortgages, liens, etc. If you have any question as to what you owe, have your attorney or real estate agent help you get title on your property. Your title will show who has an interest on your property. This step is the most important of all.

2. Find, but do not necessarily retain, an attorney that specializes in short sale and foreclosure real estate transactions and closings. Be prepared to retain them if you are asked to sign documentation you do not understand.

3. Interview real estate agents that will list your house as a short sale. Ask them for references on short sale transactions that they have closed. Ask them to explain to you how they get short sales approved.

4. Be realistic on the value of your home. Don't let a real estate agent sell you on how they will get more money for your property than anybody else. Most of the time agents use that baloney to get you to list with them, and then give you the "bad" news on your home value after you locked into them for six months or a year.

5. Give your agent no more than 90 days on a listing, with a right to renew. If they insist on a longer listing, move onto the next agent. There are plenty out there that will gladly take a 90 day listing.

6. Prepare a letter of authorization to each mortgage and/or lien holder that allows your real estate agent to discuss your account.

7. Allow access to your home for showings, appraisers, and valuation professionals at all times.

8. Establish a plan for moving quickly in the event you have an offer accepted and can close in 30 days.

9. Be sure the bank explains the tax ramifications and liabilities to you. Are you going to be taxed on or responsible for the deficiency balance? (This is the difference between what you currently owe the bank less what the bank accepted.)

There is no doubt that a short sale is a traumatic event for a family. This pain often makes people shut down and not be completely engaged or honest. I urge you to work through this pain and difficulty. The more open and up front you are in the beginning will reduce your long term stress. If properly executed with the right professionals involved, you will succeed in the short sale of your property. Your family, your credit, and your blood pressure will thank you for it.

Estimated 1.76 Million Mortgages Modified Last Year

RISMEDIA, February 5, 2011—(MCT)—Mortgage loan servicers negotiated 1.76 million permanent loan modifications for homeowners last year, but more than two-thirds of them were completed in-house and not as part of the federal government’s Home Affordable Modification Program.
A year-end report from Hope Now, a private-sector group of mortgage servicers, investors, insurers and nonprofit counselors showed that mortgage servicers arranged 1.24 million proprietary permanent modifications, compared to the 512,712 modifications begun under the government’s more rigorous HAMP program. In 2009, more than half of the total number of loan modifications made were through HAMP.

It’s unclear how many of those permanent in-house modifications received during 2010 are still current. The Treasury Department recently said one in five homeowners who received a permanent HAMP modification during 2009’s final quarter was at least 60 days delinquent on their mortgage payments at the end of 2010.

In an indication of the serious difficulties that lie ahead for consumers and the housing market this year, the number of consumers who were at least 60 days behind on their mortgage totaled 2.87 million in December. Still, 60-day loan delinquencies are 30% lower than they were at the end of December 2009.

Hope Now’s data also showed a significant fourth-quarter drop in foreclosure starts and sales, compared with the third-quarter, but that is largely the result of mortgage servicers temporarily suspending foreclosure actions while they and states investigated their back-office procedures.

© 2011, Chicago Tribune.

Distributed by McClatchy-Tribune Information Services.

Posted By susanne On February 5, 2011 @ 12:02 am In Consumer News and Advice,Mortgage Rates,Real Estate,Real Estate Information,Real Estate News,Real Estate Trends,Today's Marketplace | Comments Disabled

Tell a home’s story to stand out

PHOENIX – Feb. 2, 2011 – In markets where numerous homes are up for sale, agents should uncover the story of their listings, researching the house’s unique history and using it along with lifestyle features to capture the attention of buyers and make the listing stand out.

Agents should interview the current owners to find out what they love about the property and how they use the home, which could shine a light on unique architectural features or uses. Another option is to request old photos of the home in order to show buyers how the property has evolved – a strategy that works best for older dwellings.

Agents also may brand the property, selecting a name and writing a property description to attract a certain kind of buyer. For instance, a home near Camelback Mountain in Phoenix was called “Camelhead Camelot,” and the property description called it an “entertainer’s heaven,” with room for hundreds of guests.

It’s important for agents to know the target audience and tailor the home’s story accordingly.

Source: Realtor (02/11) Vol. 44, No. 2, P. 30; Sieger, Maggie

© Copyright 2011 INFORMATION, INC. Bethesda, MD (301) 215-4688

What Makes a Virtual Tour a Virtual Tour?

RISMEDIA, February 2, 2011—It is well known that virtual tours [1] have been around a long time, as well as many virtual tour providers who offer everything from very basic tours with still images to full-service virtual tours including photography. Some services even offer 360-degree panoramas and full-featured, customizable “Do-It-Yourself” virtual tour services. So, what is it that really qualifies it as a “virtual tour [2]“?

Some real estate professionals say in order to be called a virtual tour, it must include at least one 360-degree panorama image. Others say any slide-show of still images that presents the house in a virtual format (online), qualifies as a virtual tour. I have heard many arguments on both sides of this discussion and feel we should discuss the “purpose” of a virtual tour before we get too bogged down by dictionary definitions.

As a real estate agent, why do you even need a virtual tour? After all, in this economy, who really wants to spend more money on marketing? Here are a number of reasons an agent might create a virtual tour:

-To increase exposure and sell the property faster
-To attract long distance buyers
-To demonstrate your real estate marketing skills
-To improve your company branding efforts
-To give the potential buyer a better view of the property, surroundings, or floor-plan
-To satisfy the seller
-To impress the seller
-In reality, it is probably some combination of these reasons.

None of these reasons require a 360-degree panorama; however, the buyer may get a better sense of the property and especially the neighborhood or yard with a panoramic image that gives the feeling of looking in a complete 360-degree view. Some homes and larger rooms show better with a panorama while some are probably better displayed with a wide-angle (28mm) lens.

While reading the definition below, keep in mind your own objectives. Real estate marketing is about representing the seller’s best interest and at the same time, positioning you as the online marketing expert. The online Wikipedia definition of Virtual Tour states:

“A virtual tour is a simulation of an existing location, usually composed of a sequence of video images. They also may use other multimedia elements such as sound effects, music, narration, and text. The phrase “virtual tour” is often used to describe a variety of video and photographic-based media…the phrases “panoramic tour” and “virtual tour” have mostly been associated with virtual tours created using still cameras. Such virtual tours are made up of a number of shots taken from a single vantage point.”

So, what all this boils down to is “options.” A virtual tour, whether done professionally or a “Do-It-Yourself” service, should offer options to include still images in a slide-show format with good quality music, pleasing transitions, full and partial panoramas (optional), floor plans (optional), and even YouTube-style videos. More buyers and sellers are searching YouTube for homes for sale, yes homes that are for sale. YouTube is now the second largest search site online, not far behind Google who, owns YouTube.

Other features that have not been discussed include: social media, syndication, branding, website links, downloadable e-flyers, mobile-friendly, and high-definition images. So, look for a virtual tour provider that offers options that promote the listing, promote you, and is automated and easy to use with great support. If it isn’t easy to use and cost-effective, why take the time to do it anyway, right?

Tim Denbo is president/CEO of VirtualTourCafe, LLC. VirtualTourCafe LLC is based in Dublin, California and was co-founded by Timothy Denbo and Hannele Rinta-Tuuri. The business is operated as a limited liability company and has an advisory board made up of professionals in the real estate, technology, and marketing fields.

Posted By susanne On February 1, 2011 @ 5:06 pm In REALTOR Marketing,Real Estate,Real Estate Consultants,Real Estate Information,Real Estate News,Real Estate Technology,Real Estate Trends,Today's Marketplace |