i’m not one to be a pollyanna, nor am i mr. gloom and doom. i’m a glass half-empty, glass half-full kinda guy, depending on what day of the week you catch me. guess that makes me “fair and balanced.” well, maybe balanced. in an imbalanced sort of way.

but lately i’m driven to the point of madness with all the conflicting news reports and industry prognostications that are at odds with one another from one day to the next. purchase mortgage applications are up, pending home sales are down, showings are stagnant and closed transactions are off from a year ago. gdp estimates from earlier in the year are revised, showing economic growth much less than thought. new home sales are up.  oops, we meant down.  no wait. they’re flat.

latin anyone?

latin is a dead language. everyone knows that. but its reincarnation has come by way of statistical speak. very little of the statistics churned out make sense anymore, at least not to the average homeowner. and those statistics and revised statistics become mumbo jumbo to the real estate professional.  too much conflicting information. strike that. too much information. period. so what do we do? what can we rely on?

become a scout

native american scouts used to place an ear to the ground to feel the vibrations of riders often miles away. prior to the telegraph, railroad workers would touch the rails to see if a train was moving on the tracks.

it’s time we turned off the tv, folded up the newspaper, stopped listening to the radio and started listening to the street. placing an ear to the ground in our local markets and avoiding the macro malaise churned out by the media.   limit the input from the talking heads that are analyzing statistical reports that have very little to do with our markets.

real estate after all is local, not national. the national information helps to identify trends that affect the industry, but local conditions and events drive the local market.  how else can you explain areas of the country that defy the trends with price appreciation and single digit days-on-market statistics? guess they weren’t watching the news in that market…

put your head on the tracks

time to tune in to the local market, feel the vibrations and understand our individual market statistics intimately. and if it’s a train coming down those tracks, it might be best to step aside and let it go on through.

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oh yeah?

it all started with a comment from one well intentioned realtor to an agent that had been posting listings on facebook without using the state required information for real estate advertising (brokerage name, etc.). the well intentioned realtor pointed out, nicely, that the posting agent should consider adding that information so as not to run afoul of the authorities. the response back from the posting agent was less than polite, spurring other agents to jump in and respond in agreement with said well intentioned realtor. after some discussion (public, no less, on each party’s wall), the final response from the posting agent to one of the commenters amounted to a very public insult, likely a violation of a standard of practice from the realtor’s code of ethics.

if you can’t say something nice about someone…

my mother always told me, “if you can’t say something nice about someone, at least wait until they leave the room.” well, social networking sites like facebook are big rooms, and even though we may think we’re talking directly to someone there, we need to remember that other ears may be listening. conversations or posts placed on walls and through status updates are very public, and can be used against us if we’re not careful about what we say. to air a personal beef in such a public forum not only tarnishes the image of the person hurling epithets, but brings the rest of us down to that level, lumping us all into the back-biting, opportunist, i’d-step-over-your-body-to-close-a-sale image that many in the public have for our profession.

leave me outta this

i’d just as soon not be categorized into that group, thank you very much, so for those of you engaged in this type of “smackdown engagement,” please stop showing your lunacy and childish behaviour in public.  take your disagreements and petty arguments offline.  pick up the phone and yell at someone in private if you must, just don’t malign the rest of us with your antics.  we’ve already got enough of an uphill battle to convince the consumer we’re not crazy.

and sometimes that’s not an easy task.

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alphabet soup

but it would appear we’re headed overboard in our pursuit of designations in the real estate industry. some agents have taken to fold-out cards to accomodate all their designations, and there are new designations being marketed each month to an insatiable market of letter hungry real estate practitioners. when is enough enough?

‘splain please

i know.  sounds funny coming from a guy that’s got enough letters behind his name to ensure a win at scrabble, but seriously – do we really need all those designations?  sure, the education’s worthwhile, but after you’ve got 3 or 4 under your belt, is it necessary to promote the other 3 or 4?  who’s going to care?  or even know what they mean?

i’ve had my crs designation for 15 years now, and although the council of residential specialists does the best job at promoting their designation to the general public, i still find myself explaining to clients what those 3 letters behind my name mean.  now add abr, crb, gri and e-pro, and you can see how i’m spending even more time explaining what those letters mean.  still, i find value in the designations and the education i received in achieving them, but i’m not too wild about taking more courses just to get some more letters behind my name.  in fact, i’m currently working on other designation courses, but will likely choose not to promote those designations for fear of needing aforementioned fold-out card.

i don’t know. is it just me, or is this crazy?

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but when you’re closing transactions that require 6 pounds of paper to fulfill every party’s legal and business requirements in order to make the file “complete,” doesn’t it seem like we’re missing something?  the focus to this point in nar’s green programs has been primarily on green building, sustainable living, energy-saving appliances and reducing the carbon footprint of buyer, seller and realtor (don’t drive buyers all over town without qualifying properties).  it would seem to me that we should be highlighting the tremendous waste and inefficiency of our transactions first, reducing the number of trees we grind into pulp from three to less than one for the paperwork required for each closing.

how far does this go?

i used to teach classes to realtors in california on how to work with first time home buyers.  one of the early sections of the course dealt with the angst first time purchasers felt with the process and the paperwork.  to illustrate how daunting it seemed to the uninitiated, i taped, end-to-end, each of the required documents (only those required to write the purchase contract with the realtor, not the required documents from title, lender, etc.), and unrolled the result down the center of the classroom.  it unfurled about 25 feet.

it was a great learning tool to illustrate the number of documents required to initiate the purchase.  it didn’t take into account the fact that these forms were produced in triplicate (if not more!), and didn’t address how many of these documents would be faxed and copied for distribution to other parties, increasing the amount of paper needed to ensure a successful (closed) transaction.  looking back, i think if i would’ve added the lender’s docs and title company’s forms to that roll, i would’ve had a paper trail that would’ve encircled the building!  now that would’ve scared some first time buyers, and it likely would’ve caused some of those newly licensed realtors to reconsider their new vocation.

in a recent transaction, i had to print each document out in hard copy, fax it into the transaction management system provided by my office (does anyone else think this is wrong?), then forward it on to the listing agent.  she in turn emailed a copy to her client, who then had to print it out, sign it, scan it and return it to her agent.  the listing agent would then forward back to me, and both of us would print the document out and place it in a file folder.  if you lost count, that’s four documents reproduced from one.  multiply that by several necessary forms, many with multiple pages, and you can see how a transaction file can go from a thin folder to the size of the denver phone book in short order.

now, to be fair, shame on us for being enablers.  but when it’s acceptable practice, and the offices, agents, title companies and lenders are not equipped to perform in the digital age, the transaction will flow like water – taking the path of least resistance.  in this case, pulping three trees into paper.

a novel concept

why not implement some new ideas that might get us moving more quickly into a more environmentally friendly transaction?  borrowing a page from the compliance market, let’s implement a similar program to the carbon offset approach, in which companies (and now individuals in the voluntary market) can mitigate their own greenhouse gas emissions by purchasing offsets.  it’s kind of like, “i know i’m going to be bad, so let me pay for being bad.”  not that we’ll change our “bad” behavior, but we’ll have our penance.  and salvage our conscience.

an even easier plan would be to provide a disincentive for paper use to all parties involved in a transaction.  for every pound of paper produced, the closing company will assess each of the offending parties for their overindulgence in paper.  realtor – three pounds of paperwork will cost you $300.  title company – your hit is $600.  problem solved.

now we’ll have to get the state’s department of weights and measurements involved.  i smell a new tax.  crazy.

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Flickr image by Sparticus007

vacationing muse returns

after wading through 46 comments posted to the blog from escort companies in kiev, i’m ready to throw some blog spaghetti at the wall and see what sticks.  and no, i didn’t abandon the blog – i was waiting for just the right moment for my muse to reappear and whisper in my ear.

that whispering became an ear-splitting shriek in recent weeks as i’ve talked with brokers from around the country and come to the realization that our industry could be headed for more trouble.  the reason?  the use of social media by agents and the complete disregard or lack of education in how to use these tools properly.

it’s all fun and games until somebody puts an eye out

i’m stoked more real estate professionals are jumping on board the social media bandwagon. they’re starting to recognize how blogs and social networks can impact their business positively by enlarging their marketing influence, reducing their advertising expenses and providing communication with their spheres.  but i’m also nervous that many of them are treating these new tools as if there were new (or no) rules, and not considering how some of the things they say and do in the social spaces can actually harm them.  and their companies.

which “o” are you?

what’s more surprising and more frightening is that brokers and managers have not stepped up to address the possible risks involved with their agents’ use of social media.  i’m seeing posts on facebook that clearly violate most states’ advertising requirements, and tweets that would cause ambulance chasing attorneys to salivate over the chance to sue an agent and company over their breach of fiduciary duty.  not to mention all the possible violations of article 12 of the realtor code of ethics. it’s crazy to say the least.

but what i can’t figure out is why we in management are not doing anything about it. is it because we’re overwhelmed?  the market is tough, deals are harder to come by and make stick, and we’ve got got to nurture and support our agents as they struggle through a difficult market.  surely we’ve got more important things to attend to than to worry about monitoring an agents blog?

or does the problem lie in the fact that we’re oblivious to what’s going on out there? not tuned in to the fact that thousands of agents are rushing to the social media party because it’s the happenin’ place?  sure, we’ve heard of facebook, myspace, twitter and the like – it’s all over the media.  but aren’t these sites for people who have too much time on their hands?  sharing inappropriate photos and talking about what they had for breakfast?  who’d use these networks for business?

the other, more dangerous possibility is that we’re aware of these risks, but we’re choosing to ignore them.  placing our head in the sand like the proverbial ostrich (yeah, i know – they don’t really do this, but it’s a metaphor).  hoping social media goes away, or that our agents will ignore these diversions.  unfortunately, neither is going to happen.  social networking and blogging are not fads, and are not going to go away.  and our sales associates are not going to ignore them, when millions of consumers are using these sites to connect and communicate.  not to mention that agents recognize these sites are a great way to market and prospect.  for free.  not bad in this market

time to face the music

regardless of the reasoning or cause (which “o” are you?), we in management are going to have to accept that these tools can be used effectively for our business, as long as we’ve set some ground rules.  so, if you’ve identified which “o” you are, here are some simple steps to get working on those ground rules:

• overwhelmed – get help.  pure and simple.  this business isn’t going to get any easier, and my experience has shown that it gets more challenging every year.  gear up.
• oblivious – get educated.  the world is changing ever so rapidly around us, and if we’re not in tune with those changes, we won’t be able to adapt.  and if evolution has taught us anything, it’s that those that can’t adapt become extinct.
• ostrich – pull your head out of…um…the sand. thinking social media will go away if we ignore it is on par with thinking computerized mls information was a fad.

call me crazy, but that’s the way i see it.

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while i was sitting in class, mind wandering to all the emails, phone calls and work that i needed to attend to, it struck me that in order to grow i needed to push myself.  and i was pushing myself: little sleep, added stress and less time to do my normal workload.  all for the opportunity to learn. but the realization came that if i wanted to better myself – to become a better broker, instructor, coach and mentor – i’d need to devote time and stretch my abilities.  if i wanted to become better, there was no magic pill, no short cut, no silver bullet, to get me to that level.

i’ve found in these challenging markets most of us face that there are a lot of people looking for that magic formula – the one gizmo, gadget or whirlygig that will bring us success.  maybe the key phrase that’ll turn lookers to buyers, or the prop that will get us every listing we set out after.  we’re looking for the quick fix, the magic elixir that we can drink with the promise it will deliver a deal tomorrow or next week.  but it ain’t out there. there ain’t no magic potion, and there ain’t no silver bullet.

in times like these, there’s only the realization that we have to expand our thinking and try new things.  ‘cuz the old things ain’t working.  as soon as we recognize that and stop chasing the quick fix for our business, we’ll be ready to move forward.

and if we’re not going to move forward, we’re gonna take a bullet.

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albert einstein is credited with the quote defining insanity as “…doing the same thing over and over again and expecting different results.”  a lot of people refer to the real estate business as “insane,” but most are referring to the dramatic cycles of the market and the frenetic pace at which business is conducted when making that reference.  personally i’m wondering if the use of that term in explaining the real estate industry isn’t an apt use of einstein’s definition.

Photo from www.istockphoto.com

i’m not suggesting that the real estate industry is rife with lunatics, but i’m often perplexed why so many agents (and companies) in real estate cling to old, unproductive methods in plying their trade, especially in light of the market in most parts of the country.  yet so many agents, brokers, lenders and other service providers continue to do business the same way it’s been done for many years – same methods of prospecting, same methods of marketing, same manner of dealing with transactions.  and somehow, many of those same individuals and companies expect they’re going to see different results from those efforts.

insane to think consumers will continue to respond to the same old marketing tactics. crazy to ignore what consumers want or how their buying behaviors have changed. demented to think that, in the new world order of doing business in a streamlined, efficient fashion, the byzantine and plodding real estate transaction as it’s now carried out will continue without challenge by consumers.

it can’t continue.  the real estate industry has got to move beyond the old methods and embrace the new, paying particular attention to what consumers want, where they congregate, what messages are relevant to them.  stopping the madness of the property flyers stuffed in real estate agents’ mailboxes, submitting a property to the mls and praying that it will sell, using web 1.0 to market in a web 2.0 world.

unless there’s a change in the thought process, the methods of interacting with consumers, and a willingness to engage consumers through blogging, social networking and the other tools of social media, many in the real estate industry will slowly go mad, doing the same thing over and over again expecting different results.

if you’re in the real estate industry and reading this, my hope is that you are not one being fitted for a long shirt with sleeves that tie in the back.

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