steve's White Mountain Blog

Don’t wait to be dealt better cards – show them you’re an Ace right off.

 Damon Runyon used to tell this story on how he got his first newspaper job. It happened in Denver. He sat in the outer office patiently waiting while an office boy carried his request to be seen by the busy editor.

  In about ten minutes the boy came back and said “He wants you to send in a card.” Runyon had no card but being resourceful; he reached into his pocket and pulled out a deck of cards. From the deck he carefully extracted an ace and said,”Give him this.”…..He got in and he got the job.

I was told by a potential New Hampshire property seller; he was going to have three opinions of value and one professional appraisal…before deciding who to list with.

I finished my opinion of value with in an hour of the request. The following day I asked about the other values, the seller said “No one has completed the work but you.” Well I said “I can tell you what they will come up with.” Interested in my response and my reasoning he asked me to analyze the other opinions. I told him the appraiser will come in 10% below my estimate and the other agents will come in 10-20% above my estimates. The appraiser is getting paid to show you the simple facts of the data and the other agents will try to entice you to list with them – thinking a bigger dollar value will secure the listing. As for me I want the job, and can get it done for the price I suggested. The appraiser is playing it safe – the agents will only make you sorry later. I am the one you want to market the property….I got the job.

Show your ace upfront the truth wins more hands than a good bluff.

E- Commerce – For Dummies

Eighty percent of all people consider themselves to be above average.

Enough research will tend to support your theory.

Error is often more earnest than truth.

Even if the grass is greener on the other side: they still have to cut it.

Even paranoids have enemies.

Every silver lining has a cloud around it.

Every solution breeds new problems.

Everyone has a scheme for getting rich that will not work.

Everyone hits a brick wall now and then; the trick is not to do it with your head.

Everything happens at the same time with nothing in between.

Everything in moderation, including moderation.

Everything should be made as simple as possible, but no simpler.

Everything takes longer than you think.

Everything tastes more or less like chicken.

Everything worthwhile is mandatory, prohibited, or taxed.

Everything you know is wrong, but you can be straightened out.

Exceptions always outnumber “the  rules”.

                                     ** Last Question, nothing to do with business.

Everyone with a teenager...how bad were we really at their age?

Here are few signs that will make sense when building your 2011 business plan,

   new "paper" advertising campaigns...try it why not...It could work?

Additional revenue sources for agents willing to go the extra mile.

 Lowering employment qualification for new agents...plastic Lucas characters welcome.

 If Tom Sawyer lived in a snow belt...this would have been his fence painting alternative.

   Striving for truth in advertising...telling it like it is.

   Home of the veteran agent.

    Networking is a requirement of your success.

  Is the grass really greener on the other side of the fence...switching agencies?

   A signed agency agreement has to be a priority...lock them in before the slip away.

plan your open house spread carefully...they are coming for the free food - not to see the house.

 Getting on board with social networking...the old ways of connecting are dead...bring on the new

I want you to buy this house, but children hanging out at a real estate office...is inappropriate.

Business got you down: call a friend and get it off your chest and it may be time for a new phone system

Thinking about billboard advertising?...Bring a ladder and it's free!

   be a great contract negotiator...and close more deals

Get it in writing...and hold all the parties to the contract.

P.R. Publicly announce when a successful deal comes together...nothing breeds success like success..

   We all have fear of Dangerous waters...but we are all swimming in the same pond...I'm here to help!

How do you convince buyers and sellers you are the one agent they can trust to get the job done. A year in review has been a great way to show your metal, and the statistics are easy facts to put down on paper.

Closed sales so far…and 4 scheduled with no conditions prior to years end will be the basis of my numbers. The year 2010 will once again go out with a bang not a whimper…ski area sales often wrap up just prior to the Christmas school vacation schedule.

The numbers from my MLS system…show me to be the #1 agent in the Lincoln – Woodstock (Loon Mountain) area again this year. Listing and selling sides of closed sales 23 Transactions…gross dollar Volume $6,078,500 for the year ($264,000 /transaction). When acting as the listing agent for my clients my selling price to asking price ratio 95.6% when acting as a buyer agent the selling price to asking price ratio is 92.1%. In my humble opinion I got the most for my sellers’ that the current market would allow…and got the best deals for my buyers’ when acting on their behalf (I don’t practice dual agency – I represent one or the other but not both in a transaction).

These may not be great numbers everywhere in the country, but in the second home business related to seasonal recreation these are stand out figures. If you are looking to buy or sell in the White mountains of New Hampshire, you honestly don’t care what is happening in New York, Florida, California, Texas or Indiana…you want to be confident in your decision here. As the saying goes every market is local and I’m on top of my market.

Do the year end numbers in your Market, you may find you are the top of land, condo or home sales, you may find your listing to sales ratio is the best in the region…or maybe your gross sales doubled over last year, the number of sales is up 30% from 2008. The numbers can provide an outstanding performance in some (if not all) categories you can show to future clients.

View all area Listings -click on the MLS button on the bottom of this post and see all grafton county 44- towns by price property type or location regardless of who has it listed.

Pocket Listings Vs. Exclusive Agency…with held from MLS.

What is the difference and when should you choose to represent either one?

Here is the dilemma we will all face at one time or another in our agency forms, requirements, and the ethical decisions we will make related to our clients and the other local Realtors we engage in our market place.

Choosing an Exclusive agency over an Exclusive listing agreement.

Giving up the possibility to collect on your hard work and efforts to market a property, when the seller retains the right to sell to a party self generated. No one likes this agreement and will avoid entering into one like the plague. But from time to time a seller will say he/she has given a family member or an abutter the right to purchase if ever the property comes to market (not a recorded first right of refusal..a hand shake).

If you don’t place this listing in the MLS, your colleagues will accuse you of taking a pocket listing and keeping it for yourself. But if you publish the property and everyone wants to show it…get disclosures…deeds…right of ways…review zoning laws…check the title or any number of things, and then the seller’s inside guy steps up, you are an S.O.B. The up side of publishing the listing is it creates activity…and defines the fee being offered.  Our fiduciary duty to the client is to produce the highest and best offer; competition will clearly offer a higher likelihood of better offers. And in my experience produce a price that even after commissions will be a higher net that the sellers hand shake among family members. But what of the promise to sell to Cousin Connie or Auntie Anna too bad so sad not enough cash? Does more money trump the abutter that purchased his site from you years ago and expected to own it all when you were ready? Or the relative that would other wise have no shot at ownership without the family discount?

I will come up with my market value, and ask the seller for the names of those (few) that will be considered “procured through the sellers sole efforts”, and make it known anyone outside of this list no matter the relationship…will be fair game.

Options:

1)     Take the E.A. agreement…and keep it off MLS

2)    Take the E.A. agreement …and put it on MLS

3)     Refuse the listing agreement, due to the possibility of work with little pay.

4)    Insist on an Exclusive right agreement and make all buyers equal no matter if they are friend or foe to the seller.

Not an option taking the listing and having the private sale comes with no compensation for my firm. In past agreements, we have done the paperwork for the sellers “procured customer” for a significantly reduced fee, and acted as a buyer facilitator to ensure the proper paper work was done, as protection for the seller.

1.Take the listing?

2.Do the CMA so the seller can use you?

3.Expect all sellers to be honorable in their intentions? 

4.Pocket the listing?

5.Put it in MLS and let the chips fall where they may?

________________________________________________________________________________________________

          One last questions...does it matter if the property was a unique waterfront piece?

             Who Would be interested in a pocked listing...with no published commission split?

Diary of a Veteran Agent...I say experienced, and you may say old.

I'm beginning to show a little white on the top...but only my hair dresser knows for sure!

I love the sound of running Water...but it makes me have to pee.

Some of the new Real Estate Buzz words: Transparent and Authentic

When speaking of a Veteran Realtor of 25+ years...this translates to; You can see right through me and I've begun to rust.

They don't make them like they used too; In the old days there were always a few extra parts after your bridge was built, now it means you didn't follow the instructions and a catastrophic failure is likely. The best bridge builders aren't always the ones that posses the newest technologies, they are often the ones that have been building bridges the longest. Some of us have a little snow on top, are a bit rusty when it comes to the newest gadgets...and have to take a bathroom break once in a while, but we have been building bridges since you were in diapers. Ask me for advice or help and I'll gladly offer you a hand.

How many times does the seller disregard the first offers as being the newness of the listing?

How many times does the seller think it's only been on a short time, we'll get better offers?

How many times does the seller suggest...that offer is too low to even make a counter- proposal?

Way …Way …too many times!!!

The first offer made on the property in this market has a very good chance of being your buyer. The buyer has seen other properties, maybe they missed a few deals for not moving quick enough, maybe they are being coached to start low. If they are interested, this deal can and should be negotiated, and stands a very good chance of meeting the needs for both sides. Sellers and sellers agents put aside the notion that a deal starting too low is doomed to failure. A conversation must start somewhere, you will have the opportunity to highlight the features of the property again. You will have the chance to add value to the sale by finding out about the buyers needs, and enhancing the deal with small repairs or a dinning room table that could be left behind (or other items the seller doesn't wish to move).

These buyers have pent up demand to buy, they started low because they were told by some so called expert that is how it's done. Show the property is price correctly, give them comps with the counter...this is your chance to complete the sale without endless showings, second guessing, and seller regret.

           Before you call the first deal dead work it hard, revisit the wish list and find a common ground.

How many times has a seller said we would have been far better off if we had taken the first deal month later?

Way …Way …too many times!!!

Steve Loynd, your White Mountain real estate expert

  Toll Free 800-926-5653  /  Cell 603-381-7898

Email: steve@alpinelakes.com web www.alpinelakes.com

Affordability  vs. Accountability

I was reminded about the not so subtle differences this morning.

In years past when my car was going in for repairs I never asked for an estimate before the work was started...hey it needed to be done, and it was going to cost what it cost. Or was it that I didn’t want my mechanic to think maybe I couldn’t afford the work. One of the things that life’s experiences have taught me is know what you are getting into before you undertake the task. Now it’s about accountability, give me the quote and don’t try to pad it, because I can afford to go elsewhere.

What does this have to do with real estate?

I learned a lesson many years ago, the $700/month rental sitting in front of you is more important than the $500,000 showing you are working on for next weekend. How could that be you may ask? The person in front of you is here and now, they have selected you to help with their housing needs and they are your future buyer client. Next weekends appointment could turn into a pipe dream...a flake or a no-show.

We are Accountable to all that seek us out for help…not just the ones that want us to believe they have deep pockets. It’s been my experience the guys driving Mercedes are leasing them the Guys driving pick-up trucks, own them, have cash in the bank and often own hundreds of acres somewhere.

Clients looking for Affordable property will eventually sell, buy move up property, appreciate the helping hand, and reward that appreciation with loyalty and referrals.

Sell the $500,000 showing, but don’t ignore the $700/month renter to do it.

When I hear agents say I don’t have time from rentals, or I don’t do rentals, tell them you'll take the customer. I do winter ski season rentals at Loon Mountain in Lincoln New Hampshire. Many of these tenants turned into buyers…and loyalty starts with those that care about the little deals.

Last thought…the number of agencies going out of business and Realtors letting their license expire is alarming. If you intend to be in business servicing your loyal clients, what better way is there to pick up other agents clients…than to have a reputation for quality service and accountability?

Steve Loynd, White Mountain Real Estate expert.

Web site: www.alpinelakes.com

Email: steve@alpinelakes.com

Phone # 800-926-5653 /cell: 603-381-7898

Two ways to make a sale more attractive without sacrificing price.

 Many Agents and Mortgage brokers are making their sellers aware of an attractive solution to qualifying buyers and offering a tangible incentive that helps make a sale. And make the sale with out eroding price as the only method. With the current fixed rates at their all time lowest how can you make them even lower, have your seller buy down the rate for the buyer. This is one method that works well and allows the selling broker to differentiate this property from others being offered on the same street, same building, in the same price range.

For a point or two paid from the seller proceeds at closing you can arrange: this example a rate starting at 3.5% fixed for year 1, increased to a 4.5% fixed loan for year 2, and becoming permanently fixed at 5.5% for the balance of the 30 years. This is not something new, but with current inventory swelling it may be enough to attract a buyer to your seller's home and complete the sale.

Bulk Buy down, or block money set aside for a project can also be a great tool: If you are a developer and have several properties for sale in one project, you can't chase the market down in price without loosing your shirt. And one discounted property in a project leads to the next and an appraisal that will see a declining shift that will not allow price recovery. But if the developer buys some pre-approved lenders funds to make his sales very attractive (by offering discounted mortgages) he can hold price. This will allow him to sell at least some of the inventory without further discounting, and perhaps stem the tide for the final sales in the project at an increased price.

If you are a seller or developer ask your current mortgage holder about these options. Your bank will have some incentive to help make the sale, especially in the case of the developer.It is far better to have multiple mortgage holders for smaller amounts, and dilute their liability away from one big player.

For those that think I am advocating a return to making bad loans I'm not suggesting the bank give the money away. The Buyers will have to meet all the current qualifications, but will be able to see lower initial payments due to the sellers paid incentives.

I have a client who retired from the Automobile dealership business, we were talking about the bail out and I made the comment if I failed in my business I would go out of business..end of story.

But we don't manufacturer anything: Realtor provide a service to sell other peoples products, we don't actually produce this product we are the middle man and are paid a commission for competing the transaction.

The Big Three Produce a product: My friend went on to say, if two of the three American car companies go out of business the third would HAVE TO FILE BANKRUPTCY TOO!. Why is that, well lets take the dashboard of a car as an example, the company that makes dashboards (make 80%of all dashboards) makes them for all three of the big Auto companies. If two go out the dashboard manufacturer would have to go out of business so the last remaining car company would have no place to buy dashboards and even the healthiest auto company would have to file bankruptcy soon after the other two. Now Add auto glass, Seats, starter motors,Etc...

Real estate is not the same: If the big three real estate chains filed for bankruptcy the independent contractors (agents) could go to work for any other firm who would be glad to take up the slack or start their own firm. This move would not hurt the local sellers of property that are relying on our services, but in the Auto business the local employees and area businesses will be negatively impacted for a long time maybe never recovering.

  What do you think the Government should do?