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Dave Liniger: The Power of Selling a Dream . . .

This is an excerpt from Everybody Wins: The Story and Lessons Behind RE/MAX by Phil Harkins and Keith Hollihan. Jeff Brown and I were talking about this on the phone the other day, and I thought I’d share it. Don’t read this as an unlimited endorsement of the book. It’s a fun read, but it’s full of bogus charts that are imputed to mean something, but don’t. Even so, it’s a nice retelling of the RE/MAX legend.

The Power of Selling a Dream

If not for the price of a $20 ticket, that might have been the end of the story. But in the telling of any fairy tale or epic adventure, there are always those key moments when the naive hero stumbles across a piece of good luck. Jack, of Jack and the Beanstalk fame, for instance, came home with three magic beans for which he had traded the family’s last asset, a cow. His mother, crushed and beaten by Jack’s foolishness, tossed the three beans into the garden, and that should have been the end of it. But the beans were actually magic, and a giant beanstalk grew. Jack climbed the beanstalk, discovered a kingdom filled with riches, killed the giant who ruled the kingdom, and came home to a hero’s welcome, making his poor old mom proud of him after all.

In Dave Liniger’s case, a $20 ticket to see a real estate motivational speaker amounted to his handful of magic beans.

He went to the talk because he had already paid and, well, . . . what the hell. The magic speaker was a man by the name of Dave Stone. Hearing him talk at the Mountain Shadow Country Club in Phoenix was the turning point in Dave Liniger’s life. He sat in the first row, mesmerized. Stone was a brilliant real estate man who loved to teach, the predecessor of all great real estate instructors; and his words penetrated Liniger’s brain like none he had ever heard before. At the break, Liniger ran up to Stone and introduced himself. They talked until the speech started up again. Liniger watched Read more

Ask the Broker: Are new build prices negotiable?

When purchasing a home or condo in a new development are the prices quoted firm or can the buyer negotiate the selling price with the broker? Are the costs of “upgrade options” negotiable.

The definitive answer: Maybe.

New home sales is a retail business. The builder has to move current inventory to finance the future inventory, just as Sears has to clear out all the Fall and Winter goods to make way — and pay — for the Spring line.

Sometimes builders have more business than they need — and in consequence nothing is negotiable.

Sometimes — like now — builders need to move inventory, and they are willing to Make Deals, as they say down at the new car lot.

Even then, the deals may be set by higher ups, with the on-site sales staff authorized to smile and say the same things over and over again.

But what is that classic car dealer’s line: “What’s it going to take to get you into a Cadillac today?”

If a salesperson says something like, “If the only thing standing between us were the carpet upgrade, would that make a difference?” — that is a closing question, but it’s also a hint about flexibility. Even then the salesperson may not be able to make concessions, but the hint is that concessions are possible.

If you’re truly interested in the home and if you can be persuaded by a better deal, now is the time to sit down and dicker. Even if you have to leave the deal on the table for referral back to the main office, you may have won.

As with cars, upgrades are where the profit margins are highest. If you can arrange for and pay for your own granite countertops, don’t buy theirs unless it’s free or deeply discounted. Seven-inch stainless steel sinks are crap, buy you can buy a top-quality sink at Lowe’s for much less than that same sink at the builder’s design center.

There can be exceptions, though. For example, right now in Arizona, a great deal of spec home inventory is being sold at huge discounts. People bought new homes contingent on the sale Read more

Ask the Broker: Giving the bum the bum’s rush . . .

What do you do when the dual owner of a house refuses to leave or cooperate after signing the purchase and sale and a document to agree to sell the house? This is a nasty divorce situation. The divorce court’s finding was to sell the house and split the proceeds. He is occupying the house now and the closing is in 15 days.

The answer to this question is: I am not an attorney. You have to take this up with your divorce lawyer to see what can be done lawfully and without resort to the long arm of Colonel Colt.

It happens that I have a sale going on right now with a very similar situation. She’s gone, he remains, and he managed to kill two prior contracts with his recalcitrance. I represent the buyer on the third contract, but we got lucky: The divorce judge has ordered that the soon-to-be-ex-wife is solely authorized to negotiate and sign for both parties, with the proceeds to be split according to the judge’s orders.

I don’t know if this could work for you, but it is at least possible to resolve a conflict like this. I wish you good fortune…

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Use full appraisal to correctly assess house’s true value

This is me from today’s Arizona Republic (permanent link):

Use full appraisal to correctly assess house’s true value

Who can best judge what a piece of real property will sell for?

We all know the answer to that. The best estimate of the value of real estate will come from an experienced real estate appraiser.

After that, a Broker’s Price Opinion will come second. In certain very homogenous neighborhoods, a Price Opinion may be just as accurate as a full appraisal.

Third place belongs to an experienced agent’s Comparative Market Analysis. This can be very accurate in homogenous neighborhoods, substantially less so where homes or lots differ significantly.

Last place goes to the results produced by an Automated Valuation Method, such as Zillow.com or Eppraisal.com. An AVM does not evaluate houses, but rather provides statistics and records about houses. It cannot, for an extreme example, tell you whether the house is still there at the time of the evaluation.

It is fairly common to hear people say that AVMs will get more accurate in time. In fact, there is a finite limit to how much they can be improved.

A CMA is essentially an all-paper calculation. But a CMA is produced by an agent who has a great deal of on-the-ground experience, most of which will never be encoded into an AVM’s software. Amenities such as landscaping, decor, orientation or views cannot be accounted for by an AVM.

But the other end of this question is need vs. costs. If you want to know what your supervisor’s house is worth, use Zillow.com. It costs nothing, and close enough is good enough.

If you need to know what to offer on a house you want to buy, you need a CMA at the least. The good news is, your agent will probably provide it free.

The same is probably true for a Broker’s Price Opinion, which you will want if you are planning to sell a home.

But if you need to know the value of a piece of real property to a very high degree of accuracy — for instance, to qualify for a mortgage — you’re going to pay $300 or Read more

Real estate links and how to enact a Hollywood Western . . .

Teresa Boardman guest blogs at The Real Estate Tomato with some excellent advice on honing our technology skills.

Free The Drones has more on the Google Sandbox.

Bonnie Erickson at Real Estate Snippets is raising a stink about smelly houses. This may be the perfect answer to the question, “Why preview?”

More counter-intuitive rising-home-value news from Hot Property at BusinessWeek. If there were as many different ways to count groceries, you’d never make it home with a dozen eggs.

Back home in San Diego, Kris Berg has an excellent cautionary tale on the peril of ignoring the preliminary title report.

Two words: Galen Ward. The man is a poet.

Geri Sonkin at All About Long Island has thoughts on discounting. My preliminary conclusion is still that buyers don’t care very much, but I’m still playing with the idea. Three of the houses I have closing in December I would not have had without the flat fee buyer’s agent’s commission, so that’s a counter-argument.

In a Hollywood Western, about a half-hour after the second-act gun-battle, a seeming rout for the bad guys, the respectable townsfolk start poking their heads out to see if it’s safe to come outdoors. Then they gather in the town square and cluck about how much they abhor violence. This is done as comic relief and to set up the expectation of peace, to be spectacularly defeated by the third-act gun-battle. (Can you imagine what fun it is to sit through a movie or a play with me while I pick it apart line by line?) Today some of the townspeople of the RE.net have decided my brief war with Keith at Housing Panic was unseemly. Oh well. Kris Berg brought home a nice post on Realtor bashing, and, of course, Jay Thompson was a combatant. Other remarks suggest that — alike unto the comments of the BubbleHeads — people still don’t understand the issue: When someone tries to extort away your right to say what you choose, that is when I will be eager to engage in a discussion of what is ugly or a waste of time. At the OK Corral, Wyatt Earp Read more

Coming Up For Air…

sick.jpgMy best friend said it best.

“You’d better quit burning that candle at both ends!”

His wife, a nurse, agrees. “Get some rest, Doug!”

Perhaps it’s a good recommendation for all of us, every now and then. To take the time to allow our bodies, minds, and souls to rejuvenate… to become anew.

For now, it’s more than a recommendation to me, as I have no choice. But with the rest will come wellness… and in wellness I will once again take my turn at bat.

Meanwhile, please accept my thanks for extending me the honor.

Strong coffee

Marketing is as much a way of thinking as it is doing. Thinking about your customers and their motivations. Thinking about your lawn signs and listings and your picture on your card.** Thinking about where you can find ideas and inspirations that will cause buyers to come to you instead of the other guy.

From time to time, I’ll introduce you to people from my world who have influenced my thinking so they can work their magic for you, too, in your world. This is Denny Hatch. He’s strong coffee, but sometimes exactly what’s needed to kick start the day.

__

** Kris, a little unsolicited professional marketing advice? Keep the picture. It’s working for you.

Play nice, and NO COMMENTS!

Forgive the absence of links, although I may have to throw in a couple of unreferenced quotes for effect, but my intent is not to fuel a ridiculous “debate”, for lack of a better word (although there are many better words). Anyone who cares about the catalyst for my comments will have to do their own research.

“Antagonize” was a word my children learned at a very young age, as in “Stop antagonizing your sister.” It really is time to stop all of the silliness, and quit antagonizing one another. Like any good mother, there comes a time when you have to ground the children. Greg – Go to your room for using the “M” word. (And like any good mother, I will laugh hysterically when you leave the room, because I really found your wordplay raucously funny). Keith and all of your Housing Panic friends, I am sending you home for behaving badly as well. The term RealtWhore, while considered by you and your friends to be quite clever, is clearly a derogatory remark and very childish. We will do it again when everyone can play nice.

Obviously, what we have here are some very divergent opinions on the real estate market trends. What bothers me the most at this moment, however, is what seems to be the underlying theme: The utter lack of respect many (most) people seem to hold for our profession. And in a perhaps unprecedented blogging moment, I insist that you DO NOT COMMENT ON THIS POST. It’s not that I know and fear that many will disagree with my remarks, but only that I am not looking to pick another playground fight. Consider it my therapy session.

I am truly tired of the sport of Realtor bashing. Here are the promised, unreferenced remarks, all unfortunately real and recent quotes:

(Realtors have a) lack of class, lack of education, lack of intelligence.

I find (the) ‘profession’ and business vile and disgusting in that it pretends to act as a fiduciary for home buyers and is nothing of the sort.

Why do you put your picture on your Blog comments/business cards/bill boards (if Read more

And now we are nine . . .

Most men have bound their eyes with one or another handkerchief, and attached themselves to some one of these communities of opinion. This conformity makes them not false in a few particulars, authors of a few lies, but false in all particulars. Their every truth is not quite true. Their two is not the real two, their four not the real four; so that every word they say chagrins us, and we know not where to begin to set them right. Meantime nature is not slow to equip us in the prison-uniform of the party to which we adhere. We come to wear one cut of face and figure, and acquire by degrees the gentlest asinine expression. — Ralph Waldo Emerson, Self Reliance

We’re adding another contributor this morning, Doug Quance of Broker’s First Realty in Atlanta:

Doug Quance is an Atlanta-based Realtor and Associate Broker. Backed by his team, Doug is in the vanguard of the Realtor 2.0 movement toward hi-tech, full-service real estate.

Doug managed to get good and sick over Thanksgiving, so it’s a particularly cruel injustice to do this to him today, but he insisted we proceed as planned.

Athol Kay at The Real Estate Guide calls us The Borghound Blog, which was a lot of fun. This much is true: We’re doing our best to recruit the very best real estate webloggers. But the last thing we want is that “one cut of face and figure,” “the prison-uniform” of some uniform school of thought. To the contrary. Our diversity is our strength. (Didn’t I get a badge from the NAR that says that?)

In any case, while we are not The Borg, today we are a nonet to be contended with…

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The Millionaire Real Estate Agent

If I have seen further it is by standing on the shoulders of giants.

– Isaac Newton

First things first – WOW, what a fantastic collection of writers and contributers this blog has! I came to Blodhoundblog to quickly see what had already been written before I started to write my post. I wound up spending over 90 minutes reading every single post, going to each of the links (thank you SO much, Richard for http://www.psychotactics.com/). I am so pleased with Greg’s decision to change the direction of Bloodhoundblog – and I was already happy before the changes. I may not post everyday but I sure will read it every day.

What follows in this post may seem to some like Earl Nightingale meets Buddha – and maybe it is – but I think you are going to like it.

Last week Matt wrote:

I might have missed something in the post, but to say that all listings for the discounter were $299 is probably not correct. “58 X 299 = $17,342.”I see a lot of “Discounters” using low selling price as a tool to get people in the door, or on phone. $299 is usually a no support price…and then they tack on a-la-carte items to raise that price up. True, it will never be full commission, but I doubt all 58 sold for only $299. How would he still be in business only making $17K per quarter?Russell, How hard was it to get to the level you are at today? Many realtors never get to this level, because it is very, very hard. I would bet that it is a lot easier to throw up a bunch of ads, that say you will sell a home for $299, and get a ton on people in your office. It can’t be that hard…

I don’t know how much selling up occurs at his site. But assume he only sells half of the listings he takes and gets paid on twice as many as he closes and manages to up sell every possible option he has – I still don’t like the numbers. I Read more

So what’s your problem? (Or a 10-minute makeover on how to make your listing copy more attention getting, more interesting, and most of all, more effective.)

A fundamental difference between general advertising (image, awareness, brand-building ads–the stuff Century 21 and ReMax does nationally) and direct response advertising (the targeted, measurable results-driven stuff YOU and frontliners like the Bergs–and welcome Kris! what a good get Greg–do locally) is that the former tries to change the way customers think over time and the latter works to change the way customers act right now.

Since direct response advertising can measure results,** it creates opportunities to test and account for the value and effectiveness of things. Like headlines.*** Copy. Pictures. Or even blog posts.

Which is what I am doing now.

I want to see why BloodhoundBlog Post 703 is drawing so few responses (okay, none right now). Is it because it’s just boring and uninteresting to readers? Or perhaps all it needs is a much better headline to get you to take a look and benefit from all its great advice on how to write compelling listings copy. I want to test the supposition “You can lead a real estate agent to a blog, but you can’t make him think.”****

Vote with your mouse.

Charmed, I’m sure.

or

A 10-minute makeover on how to make your listing copy more attention getting, more interesting, and most of all, more effective.

__________

** When should you use general advertising and when should you use direct response advertising? Well, first determine who’s paying for it. Then decide.

*** For those of you who care to get under the hood of your marketing, John Caples was the godfather of Tested Advertising Methods. It’s a classic text. (Okay, it’s really, really old, and “They’ll laugh when you order it at Amazon, but OH! when you begin to put his ideas to work…”)

**** Just kidding. Greg urged me, originally, to use the “makeover how-to” headline. I resisted. I even thought of titling this post “You lookin’ at me?” but I checked and the actual line is “You talking to me?” So I guess the real supposition I’m testing is “You can give a guru good advice, but you can’t account for his ego.”

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I’m Invited!

When my girls were in their diaper days, their favorite bedtime ritual involved reading Go Dog Go!. For those unfamiliar (under 40), this is an epic tale involving big dogs, little dogs, red dogs and white dogs… you get the picture. This exciting fantasy ramped up to climactic moment when the dogs arrived at The Tree (“to the tree, to the tree”) where they encountered a Big Dog Party! My daughters’ yesteryear squeals of delight could never equal my unbridled exuberance of today when I was invited to Greg’s Dog Party. Well, perhaps I exaggerate, but I am honored nonetheless.

It is no cyber-secret that I have been a huge fan of the Bloodhound Blog from the start, but I met the word of my induction into the dog pound with both enthusiasm and trepidation. I have been blogging for the better part of a year now under my own comfy security blanket. My all-too frequent typos, lapses in posting, and even the occasional absence of discernable meaningful content (too many human-interest installments) have been largely forgiven by my small audience. My tombstone will read “She used and misused too many commas, hyphens and parentheses, and don’t even get us started on those semicolons”! Greg, on the other hand, has created a superior site over a much shorter period of time. Even his trolls are better! I am the first to admit that I am lucky to truly understand half of what he writes, let alone able to allocate enough time to read it all. The man is a machine, and the need for the online dictionary link in my Favorites folder is entirely his doing. That’s the trepidation part.

On the other hand, I am thrilled to be included among his hand-picked group of real estate junkies who, like myself, have a passion for the business. One can only admire their willingness to evaluate, reevaluate and even question our industry and our industry practices in such an honest and unfiltered way. So, consider this my RSVP; I am looking forward to attending the party. Forgive me for being fashionably late with my Read more

The sight, the scent, the touch of rich, luxurious, full-bodied . . . real estate commentary . . .

Today, Jeff Brown is a thorn among roses. We’re adding a new contributor, San Diego Realtor and super-blogger Kris Berg. With Cathleen Collins below the BawldGuy and Kris above, the median quantity of hair approaches the statistical mean.

But rich, luxurious, full-bodied hair — or none at all — is no measure of the prowess of a BloodhoundBlog weblogger. And, of course, no one can be encapsulated by a capsule biography, but it falls to me to write one anyway:

Kris Berg is a San Diego Realtor and Associate Broker who is avidly building a business with her husband, Steve, while raising a family, maintaining a home and writing cleverly original real estate commentary.

If you haven’t read Kris at The San Diego Home Blog, you’re missing out on one of the great treats of the RE.net. She writes pertinent real estate commentary with a style all her own — sometimes raucously funny, always precisely on target. I can’t wait to see what she’ll write here…

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Foghorn Leghorn strikes out: What if they gave a war — and nothing happened . . . ?

Well.

That was underwhelming.

First, I make a brutally funny, completely accurate joke about that risible demagogue, Keith at Housing Panic.

Then Keith offers to sell out his weblog and his entire constituency of mouth-breathing morons to escape the ridicule that is his just desserts, his one indisputable claim on the wonders of the universe.

His “offer” is essentially extortionate. The “or else”?:

A war with the thousands of HP’ers so harsh and loud your practice and reputation in Arizona likely wouldn’t survive (beyond the damage you’re doing yourself)

Now anyone who is paying any attention here — a company that excludes Generalissimo Foghorn Leghorn — could have predicted with perfect precision what I would do in the face of something like this: Make it public, of course, in spades.

So: Keith puts on a predictable pantomime of outsized outrage, heavy on the high-moral dudgeon. And the mouth-breathing morons zoom in to BloodhoundBlog to poke around at random and issue inane comments — heavy on the profanity, light on the grammar.

This much is a big yawn. There are thoughtful, intelligent people among the BubbleHeads, but I can’t imagine that any of them is so lacking in self-respect that he would take “orders” from a detestable thug like Generalissimo Leghorn.

That’s as may be. The thuglets who do shake a leg the Leghorn way gave another perfect demonstration of why I have referred to them as Brown Shirts and Flying Monkeys. One Junior G-Man dug up and published my address (ahem — it’s on our web site) here and on Housing Panic. An amazingly drunk man in Connecticut left 23 very long incoherent voicemails on my cell phone. A cadre of relatively literate BubbleHeads tried to figure our how to censor me by means of Arizona Association of Realtors or Arizona Department of Real Estate complaints. It might occur to you to wonder if they have not heard of the First Amendment to the United States Constitution — but of course they have. Thuggery and principle are moral opposites, never doubt it.

There’s more, but it’s all nothing. I told Keith in advance that it would come to nothing. The original Read more