BloodhoundBlog

There’s always something to howl about.

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Internet leads, Distrust Mountain and Scaling the Face – Base Camp

In one of my last posts I wrote about converting internet leads or as I called it, successfully navigating “Distrust Mountain“. I received a ton of response to that post via email and the number one question was “What is the answer, what are the tactics?” to this statement in my original post:

The ability to climb that first, nearly insurmountable, face of defense on Distrust Mountain is what separates the good loan officer from the average one who is struggling to earn a paycheck. I call it scaling the face. Scaling the face requires all sorts of special talents including building rapport, telling a compelling story, having a unique selling proposition, displaying excellence and professionalism, building on small commitments, and numerous others. The tactics for doing so is a topic for another post, but needless to say, that wall is there and needs to be scaled.

I’m sorry to disappoint, but I have no magic bullet. I am sure that you all suspected that to be the case; for there truly is no such thing – if there was we would have all seen the infomercial. There are no gimmies in the sales world (thank you for listening, choir). With that disclaimer out of the way I’ll do my best to outline the best practices THAT I HAVE FOUND help successfully close internet leads. Unfortunately it’s a long process and I’ll need to break it in to a handful of posts over the next week to keep your eyes from falling out of your head; but I will get through it — bear with me.

I think our approach works pretty well; I also know that there is room for continual improvement. I don’t purport this to be the best or only way to convert internet leads; but it is our way. Our un-audited results indicate that we receive a return of about 5 to 1 on our investment in internet leads; and we’re pretty happy with that. If you want greater ROI, you’ll need to do a better job than Read more

On the NORDSTROM Analogy

Apropos of pretty much nothing: my two daughters — for whom I live — drove down from Seattle last weekend and threw me a surprise birthday party. The appropriate aphorism: “A good time was had by all.” I just found two party hats in the freezer.

Which provides a seriously imperfect segue into: Nordstrom. Since the time I spent there informs nearly everything I’ve done in business the last thirty years; because what we do as full service agents has been rightfully compared to the Nordstrom model; and because I’ll reference them often, it might be worthwhile to give some background:

I was there when they were just breaking into the California market, before the Department of Labor made them shut down any employee off clock hours — which means a concerned Nordy personally delivering a prom dress to a hormonally anxious deb is considered illegal — and before any organized gangs began using their return policy as a profit center. The employee manual read in its entirety “Use your own best judgment at all times”, twenty five year old buyers were given multi-million dollar budgets with the single instruction “Buy what the customer wants…”, and every employee was given the imprimatur to say only one thing: “Yes.”

In the early seventies one billboard on I-5 leading out of Seattle read “Will the last person leaving please turn out the lights?”, but leading in to the city was another billboard that read simply “We understand there’s a recession. We’ve elected not to participate.” and signed Bruce Nordstrom. When the same Bruce Nordstrom — “Mr. Bruce” in the vernacular — was asked in a meeting why it was necessary to give money back to people who didn’t seem to deserve it, after an eternal icy silence he said: “That’s my money. You’ll give it back until I tell you differently.”

Everyone has probably heard the (true) anecdote of the radial tires returned for a full refund at the first San Francisco store. What everyone doesn’t know is that, while most department stores at the time funded their advertising at 4% of sales, we budgeted 2%. Read more

SparkNotes – Mutiple Offers (the Ghost of Christmas Past)

It’s a strange real estate world we live in. Some markets, such as Manhattan and San Francisco reportedly thrive, while others such as Southern California have been more than mildly affected by declining home prices and slower sales. And then within each region there are micro-markets. In my own San Diego, it is the tale of two cities.

It is the best of times, it is the worst of times. There are two distinct buyer psychologies at play. One segment is looking for a deal; the other is looking for an upgraded, turnkey opportunity. There are similarly two demographics at work. One wants (needs) the lower-end, entry-level product (in San Diego, these prices start with a “4”), while the other is less affected by trivialities like mortgage rates, economic indicators or general market trends (in other words, money is no object). Mediocrity, whether it be price or condition, is just not being rewarded. It’s enough to scare the Dickens out of a seller.

“Ms. Blogging Person, have you actually read A Tale of Two Cities?”, you ask. Heck no. I, for one, detest Dickens. Given the choice of being subjected to one more reprisal of A Christmas Carol and bamboo shoots under my fingernails, I will opt for the root canal every time. That’s what SparkNotes are for.

And, Multiple Offers are alive and well. Having been involved in several during the past month, it has become painfully clear that newer agents who may have missed the wacky knock-down-the-sign-installer-to-be-the-first-offer-in-the-door antics of the late ’90’s and early 2000’s may be unfamiliar with the intricacies of multiple offer situations. It has also become clear to me that many veteran agents just don’t get it. Thus, I generously offer a few tips to the buyer’s agent who may find himself in a competing offer position. If you missed the book, here is the cheat-sheet.

  1. “Multiple” means “more than one”. Fancy yourself the expert negotiator? Well, Mr. Kissinger, good luck with that. You are not the only offer on the table, and your “look at me – I have a Buyer!” position of strength has been compromised. You need Read more

Watermark play: Ten samples for proof

Using PicMark for the Macintosh, I built a watermark that satisfies my objective: To put a proprietary mark on photos that does not destroy the beauty of the image. I also wanted to satisfy Thomas Johnson’s goal, to put a web address on each photo.

The ten examples below show the watermark I built. It’s not perfect — there is one photo where I can’t find the semi-invisible mark. But if we presume any thieves are likely to steal more than one picture, we have an excellent chance of catching them. Moreover, being so obviously marked, it’s seems at least plausible that they won’t steal our photos at all.


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Extreme Transparency in Lending

Mortgage brokers have been under assault by the extreme transparency advocates these last few years. Very smart people have embraced technology as the catalyst of change. They proclaim that technology will change how the American public compensates mortgage brokers. I think their advocacy has some merit.

Most consumers just don’t care about extreme transparency in lending.

Oh, sure. The engineers who read Milton Friedman and St. Augustine may actually adopt a moral position about the evil greed that permeates our industry. They might vent about the immoral nature of the “secret profits” earned by originators who do business the “traditional” way. These consumers, a very minor subset of the population, are predestined to mistrust anything that smacks of traditionalism. Last decade, full-service securities brokerage firms advised people that their high commissions were actually more effective to get investors to buy and hold rather than to trade incessantly. Still, the engineers distrusted the establishment while they day-traded their retirement accounts away on high-flying internet IPOs through ScottTrade.

This decade’s real estate boom brought out these “efficiency experts” again. They looked at the transaction costs in lending and proclaimed, “Something is awry!” This breed of consumer, is never, I repeat, NEVER going to trust a an originator no matter how inexpensive the service offering is. A mortgage originator can point to the value a trained advisor brings until she is blue in the face and this crew will run to Lending Tree faster than you can say free pocket protectors. This tiny portion of the population is not going to do business with me or you or your cousin Angela. Ever.

Most consumers just don’t care about extreme transparency in lending.

I sent out an e-newsletter to 300 past clients, highlighting a few articles, all dealing with extreme transparency in lending. These were the responses I received:

1- One nuclear engineer e-mailed me proclaiming that he would be processing his own files in the future and insisted that I waive the $495 processing fee. In exchange for the fee waiver, he would order his Read more

Faking It

Smarmy Fluffy FakeI just wanted everyone to know that I am the “Top Blogger.” I also host the “Fastest Growing Blog” in America. I have the “Highest Reader Satisfaction On The Web,” and I was voted the “Best Wife In The World.” There, I said it.

What’s that you say? How can you disagree with my claims? I put them in print, they must be true! Alas, some of these may not be true, much like blatant imaginative statements made on Real Estate websites and business cards worldwide. Is this the stuff your marketing is made of? As most of you know, I’m not a Realtor, but I am a consumer (okay, a self-acclaimed consumer/shopping pro) who works for a Realtor firm and is hyper-exposed to Real Estate at least 70 hours a week. That said, I give you my Top 5 Offensive (and often false) Claims:

CLAIM #1- Top Realtor in The City/Nation/World
This is a personal favorite- simply Google “Top [insert your city here] Realtor” and the results are endless. How is it possible that hundreds of people are ALSO the “Top Realtor” in your city? This claim is frequently used because it is subjective, but when everyone claims this ranking, it falls on deaf ears! So, what does your claim mean? Are you the top highest producing, the top recruiting broker in the city, or do you claim the top closing ratio? All of us here know that fluff is abundant on websites and canned material still rules the day, but if you have to fake itit ain’t that good.

CLAIM #2- Your Neighborhood Specialist
There are many specialists out there, and several Realtors can specialize in the same subdivision, but don’t close your eyes, point at a map and pick a spot to farm, thus claiming your “specialty.” That would be like ME saying that I am THE Scripps Ranch, CA specialist (yet I’ve never been there and besides, the Bergs have it on lockdown). I got a flyer on the door the other day. This Realtor claimed to be my neighborhood’s specialist and “Top Realtor.” Strange- I have never seen a Read more

The Way of the Rain Dogs: Peeing on your pictures to mark your Zestifarm — and to avoid becoming an unpuppy

This is from mail from Thomas Johnson of ERA Houston, which, among other things, coins the terms “Zestifarm” and “Zestifarming” for the various ways one can pee on the tree in Zillow:

I love the marking your farm analogy. I walk my dog, Sophie, every evening and I have noticed that she marks everything that is of higher than average height: a clump of grass, a twig, a lump of Spanish moss, whatever. I liken that to canine text messaging a quick sniff, squirt and move on. When we get to the mailboxes, it is different. That is much more interesting. There is lots of sniffing and squirting. I guess we could call that pee mail. My takeaway is that there are so many little repetitions that we can use to mark our Zestifarms. And, the price is right.

Less like pee mail, more like Twitter. Even so, I just quoted that part to make the girls squeal. But: Nothing focuses the mind like an apposite metaphor. One theory says that dogs mark their territory so they can find their way home if they get lost. Hence the poor, lost Rain Dogs.

Dog owners know better: Dogs mark to cover the scent left by other dogs. To have your pee peed on is to become an unpuppy:

I spent the night tossing and turning thinking about “marking my farm”. I think that an agent could take over the cyber neighborhood before the entrenched legacy agent/broker even knew what was happening. A while ago, I bought a cheap little program called “watermark it”. It enables you to digitally watermark photos. I bought it to protect my MLS photos, but it was banned by policy. My 4 AM revelation was to watermark my Zestifarm photos with a small web address. It would not hyperlink, but “Kilroy was here”.

This is something that I’ve been thinking about, but I hadn’t done anything about it until I got this mail. As I mentioned before, there is an even better “pee on the tree strategy” than listing homes for sale:

Instead of announcing homes for sale, walk the neighborhoods you farm, taking Read more

Like a Virgin

So I’ve spent the last hour trying to navigate Word Press — I’m going to bet it’s much easier than I’m making it — have written a terribly serious post on the allegorical link between Nordstrom and real estate, and decided that’s a really inelegant way to introduce myself.

Yes, thirteen years with Nordstrom in the late sixties and seventies, the perfect business education. Twenty five years as a manufacturer’s rep, until getting on planes and traveling salesman jokes simply got to be overwhelmingly dull. I got my real estate license nearly three years ago, and immediately wished that I’d done it years before.

Which means most here probably know more about real estate than I do. The reason I came to Bloodhound Blog in the first place was to learn.

What I do know is people. Why they buy, their motivations and reactions. I know that the Arizona Board of Appraisal is thoroughly nuts for thinking it can shut down Zillow, or even trying. I have a pretty good notion Redfin will be out of business in two years. Sixty Minutes is an anachronism.

And I’m certain the real estate business is changing. Much of the status quo is antithetical to anything I learned at Nordstrom: the industry gets much of its incentive from what’s best for the industry, not what’s best for the people we serve. I’ll never understand the first seminar I went to after I was licensed, where the instructor said good agents spend 90% of their time prospecting for new clients. 90%. If I spend that much time selling myself, what, exactly, am I selling?

Phil Knight said: “Nike is a marketing company, but our product is our number one marketing tool.” What I do for buyers and sellers is my product, and my interest is in being as good at that as I can be.

That’s why I’m here; I really, really look forward to it.

Thanks, Greg; I’m honored!

Watch Your Ankles- Here I Come!

Lani Anglin- Ankle BiterGreg mentioned in an email an “overture” and I thought he meant that he wanted to share the link love. It wasn’t in Latin, so I grazed right over it- I completely missed that he was inviting me to be a Bloodhound Blogger! My first response was telling my husband that Greg was making fun of me and using words that I should know (umm, I do have a B.A. in English, but I haven’t practiced in a while, so my fluency is fading…).

Upon realizing the gravity of the situation, I had to return ad fontes (as DuBellay would put it) to the other Bloodhound Bloggers’ first posts. That messed me up even more- I feel obligated to be intellectual (Greg Swann), comical (my hero- Kris Berg) and be able to tell a great story (Teri Lussier). Instead, I will carefully select a dog I most relate to; that seems logical, right? First, I had to wonder if I would relate to my American Eskimo, but I don’t shed quite as much as he does, and I don’t feel the need to constantly walk behind my Person with my nose on their back leg at all times (I mean all the time, never ever never ever stopping, even if my nose is wet). Instead, after further consideration, I’ve decided I’m a French bulldog.

I appointed myself as a French bulldog because I am small, I think I’m funny, I am playful and I make a great companion. My drawbacks are my big ears (not literally) and that I dig a lot. I really do dig- I am constantly absorbing hundreds of blogs, websites, newspapers, business journals and Fox News simultaneously- it’s a problem… I’m working on it. But, I’m potty trained, I don’t usually drink from the toilet, and I learn new tricks every day- I might just be the fresh addition BHB needs!

I am (purposely) not a licensed Real Estate Agent, nor am I a Realtor, but the only thing I’ve ever known is Real Estate. I confidently address issues and news in our Read more

Posts You May Have Missed & Staying Under The Radar

Some developers apparently didn’t get the memo

The end of a nearly decade long march to the stratosphere of real estate prices has brought out the media predictions of all that is dire and painful. Though I said it another way in today’s post on my own blog, here’s what I think of this particular market correction. Compared to the early-mid ’90’s S & L crisis meltdown, this market is like the sudden realization that you’ve left the house wearing two different colored socks. Apparently there are some developers in Boise (Eagle to be exact.) who haven’t got the word. Yesterday, In a post written by Phil Hoover, he talks about an article in the local paper about the plans for — you can’t make this stuff up — 20,000 new homes in Eagle, Idaho. That would literally double Eagle’s current population. Don’t those builders know these projects are doomed to failure? Have they not heard of the doom that is real estate as we know it? Don’t they read the papers?

Buyers with stealthy agendas

Even though it was last week, I fear too many readers missed Kris Berg’s post “You hate me, don’t you?”. It’s the perfect illustration of the old saying, “You can’t make this #%$& up!” There is a new level of chutzpah on display in her story, that makes you wonder what new form of dope is being hawked these days. Kris makes Mother Theresa look like a hack. 🙂

Thinking of one special word

Going into the weekend the guys at Duct Tape Marketing published a very interesting piece wondering what ONE word describes what you do well. I still haven’t come up with just one word. Is that even possible? It must be because they did it for their own company. It opened my eyes as to how people reduce what we do best to a single thought. That could be incredibly cool, or a disaster.

A meeting in Paradise

Seems there’s a meeting in Del Mar, California the first Monday of June. Brian Brady is running the show, and has invited some local celebrities. He’s calling it Read more

If lenders divorce the commissions, they’ll be divorced

Jim Duncan issues a battle cry for divorced commissions:

As a profession, we need to rid ourselves of Cooperative Compensation and the practice of the listing broker paying the Buyer’s Agent.

Cooperation between Brokers need not go away. In fact, without cooperative compensation, the practice of real estate representation will be enhanced, as the perceived collusion between Realtors will be mitigated significantly. What needs to disappear is the inherent conflict of interest that comes from the Listing Broker paying the Buyer’s Agent.

Jim argues for legislative changes, but my thinking is that lenders could effect this change overnight, without new laws.

How?

By refusing to honor the terms of the Listing Agreement.

If mortage underwriters disallow any commission over 3% or 3.5% from the seller, with all of that going to the Listing Broker, while simultaneously allowing a commission of up to 3% or 3.5% from the buyer, with all of that going to the Buyer’s Broker — what will happen? The brokers will immediately rewrite their employment agreements. We are always changing language to get it past the underwriter — and the smart ones among us write the language their way from then on.

The simple fact is, except for all-cash sales, we’re going to do what the lender tells us to do. No loan, no transaction. If lenders decide to divorce the commissions, they’re going to be divorced.

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Shuffling the pack: Two new Bloodhounds on the trail

We’re adding two new contributors today:

Lani Anglin is the Texas-proud provocateuse at the spunky Realtor Wives weblog. By day, she works as a rainmaker for Single Pointe Realty. With two kids, three cats, a dog and her husband, she finds a way to stay busy.

Jeff Kempe knows a thing or two about Nordstrom service, having sold for them and to them for many years. Jeff has been selling real estate in Lake Oswego, Oregon, a suburb of Portland, for the last three years.

Norma Newgent hasn’t had the time to give to BloodhoundBlog lately, so I’ve moved her off of the main rotation for now.

We’re heavy on Realtors, and I think this is a great strength. But we are necessarily at the mercy of the vicissitudes of the real estate market. When the market turns hard, we’re going to need a tire iron to pry extra hours out of the day.

In any case, Lani and Jeff are both very interesting writers, and I know they’ll bring new insights to us. Lani’s in a tough spot, though. Lexically, she lands above Kris Berg on the list of contributors, but my bet is that no one can eclipse Kris in the weblogger’s art.

When will BloodhoundBlog stop growing? When we run out of things to howl about…

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I Still Want to Know Who Pays You, Bruce

I received the following via email and also as a comment to a post on BloodhoundBlog. It is from Bruce Hahn. Bruce claims to represent 75,000,000 people – and I think that at least 74,999,000 of those people have never even heard of him. He and his wife (along with some other unnamed person) are the American Homeowners Grassroots Alliance.

Bruce HahnBruce has a background as a lobbyist and has written several books. These days he seems to spend most of his time letting various government divisions (with loads of emphasis on the federal government) know “what is good for consumers”. He has a big heart, he just wants to help. He is quite secretive on who pays him. But he has come right out and said it is NOT Bank of America – so my guess on that is obviously wrong. I really don’t expect him to be forthcoming now – whoever does pay him doesn’t want anyone to know who they are.

Here are some links I found telling you more about this endlessly polite and highly articulate and prolific man who seems to have dedicated his life to making sure consumers aren’t taken advantage of by Realtors (or anyone else).

http://www.inmanwiki.com/Real-Estate/Bruce_Hahn

http://waysandmeans.house.gov/hearings.asp?formmode=view&id=4047

http://www.theamericanconsumer.org/Bruce.htm

http://realtytimes.com/rtapages/20070221_grassroots.htm

http://justice.gov/atr/public/workshops/rewcom/212268.htm

http://realtytimes.com/rtapages/20041001_agencyerosion.htm

http://www.washingtontechnology.com/print/12_21/13695-1.html

http://www.usdoj.gov/atr/public/workshops/rewcom/212268a.htm

_____

Russell

Thanks for the link to our website!

If you would have read some of our recent congressional testimony on subprime lending (which is on our web site and is very critical of the banking sector), you would understand why we are not getting any funding from Bank of America or other banks. And if you had gone back in our history to see some of our past Congressional testimony against the banking sector for its legislative efforts to hamstring Freddie and Fannie, you would have no doubts at all. We are opposed to “Rotarian Socialism”, as Gregg Swann so aptly described it in his outstanding February 13 Bloodhound post. In it he wisely noted that NAR’s “on-going legislative campaign against banks competing for real estate transactions is just more of the same: “Protecting” mediocrities from fair competition.” Our aforementioned testimony opposing banking practices in the mortgage lending sector simply reflects our opposition to Read more