New Jersey Estates/Weichert Realtors/ NJ Luxury Real Estate/ New Homes: May 2008

Remodeling? Get Advice Online

Remodeling? Get Advice Online

Have you ever wanted to step inside other people's homes so that you could steal some decorating and design ideas? Of course, you can spend days, even weeks, traveling around neighborhoods and attending open houses just to see how other people set up their homes or you can visit Radcribs HomeTour online at hometour.radcribs.com.

"The idea behind it is to provide a website where anybody can showcase their home," says, founder Howard Yen.

Whether it's remodeling, redecorating, or showing off fancy architecture, HomeTour gives visitors the opportunity to see what others throughout the world are doing to creatively make their homes comfortable.

"Visitors can go to the site and log on and discuss their ideas with others," says Yen.

Social networking on the Internet is growing tremendously. Radcribs HomeTour capitalizes on the popular elements -- uploading videos and photos -- that have made websites such as Facebook, YouTube, and Flickr Internet community gathering spots.

"On television you can watch all kinds of shows that talk about remodeling and that sort of thing and I thought it would be good to have it online as well so that it's more interactive," says Yen.

"Traditionally, when you want to remodel, you go buy a magazine and then flip through the pages to get ideas," says Yen. He says one of the major benefits is to be able to communicate to others through the social networking aspect so that you can have a better idea if you really want to begin your project. "Now, it's going to be millions of users and you can see what they're doing. You'll be able to get more ideas, share ideas, and talk to others about your project," says Yen.

The HomeTour portion of the website launched earlier this month, so some categories on the site are still a little sparse. However, the architecture site is very interesting and features some fun-to-view and funky-looking homes.

Yen first launched Radcribs.com in 2005. "It's an online real estate research site so you can get title records, foreclosure records, and that sort of thing," he says.

You can view, without signing up, the categories in HomeTour which include architecture, baby nurseries, laundry/mud rooms, pools, floor plans, media rooms, and even dorm rooms (but as of the writing of this column, no photos were uploaded). To post photos and videos, you are required to sign up but it's free.

Certainly looking through magazines, watching remodeling TV shows, and visiting websites such as Radcribs HomeTour will give you a little more peace of mind before you begin a major and often costly project. If you're planning to remodel or redecorate keep in mind that browsing is only part of the necessary work. The National Association of the Remodeling Industry offers these important tips.

Take time to pre-plan your project. Put your ideas about the type of remodel and the outcome you're hoping for in writing. Make a list of things you like and the things you don't like.

Know what features of amenities are on the wish list and which ones are on the must-have list. Also, have an idea who is going to use the new space that's being created and in what capacity.

Hire the right team of professionals. Without this critical step, the whole project can flop. Also, make sure you secure financing for your remodel, which can sometimes take months to do. Also, seek out professionals ahead of schedule as often they are booked well in advance and might not be able to start your project right away.

Don't put down a large deposit. After securing your final remodel plans and signing a contract, you should only put down a small percentage of the total amount. Then be sure you're completely satisfied before you pay-in full.


Written by Phoebe Chongchua
May 30, 2008 

Washington Report: Uniform Downpayment Minimums

Washington's two mortgage behemoths -- Fannie Mae and Freddie Mac -- both have just scrapped their controversial practices of requiring five percent higher downpayments in hundreds of so-called "declining" local real estate markets.

As of June 1, Fannie and Freddie will switch to uniform downpayment minimums nationwide.

Under Fannie's new policy, home buyers anywhere - whether they're in hard-hit Riverside-San Bernadino, California or Austin, Texas, where property values are steadily rising -- will qualify for minimum three percent downpayment programs if they are underwritten and approved through the company's automated system online.

If applicants require a "manual" underwiting, they may still qualify for a five percent downpayment minimum, no matter where their property is located.

Both companies will continue to look hard at appraisals, local market conditions and borrower capacity to handle mortgage payments.

Fannie's top underwriting official, senior vice president Marianne Sullivan, said the abrupt change was made possible by improvements to the company's online Desktop Underwriter system, enabling it to spot "risk-layering" in applications that are associated with defaults and foreclosures.

But political pressure clearly played a role as well. Both Fannie and Freddie were reacting in part to a barrage of criticism leveled at them by real estate, ethnic and consumer group leaders. In the past month, groups including the National Association of Hispanic Real Estate Professionals, the National Community Reinvestment Coalition, the Asian Real Estate Association, and the National Association of Realtors blasted congressionally-chartered Fannie and Freddie.

The groups said that by designating entire geographic areas as "declining" -- and penalizing home buyers with higher downpayments -- Fannie and Freddie were fostering downward spirals in those areas and were blocking any potential for recovery.

Though the two companies' revised standards were welcomed by critics, they may not be the end of the problem in hundreds of ZIP codes around the country that are still stigmatized as "depressed" or "declining" by private mortgage insurers.

Fannie and Freddie both require mortgage insurance protection on all loans they buy with downpayments below 20 percent.

But if private insurers won't touch loans with downpayments below five percent in areas they label declining, the practical effect of Fannie and Freddie's changes may be limited.

Asked if MGIC, the largest insurer, might relax its policies in light of Fannie's and Freddie's announcements, senior vice president Michael J. Zimmerman said in effect: No way!

"We're not contemplating any changes," he said.

So what should buyers in soft markets who need the smallest possible downpayment minimums do?

There's really only one ballgame in town left for them: FHA ... . with its three percent down loans -- everywhere.


Written by Kenneth R. Harney
May 26, 2008 

Real Estate Outlook: Worst is Over

Don't break out the champagne glasses quite yet, but there are more economic signs this week that the worst is over for the three year real estate correction cycle.

One of the country's most prestigious groups of market forecasters, the National Association of Business Economists, says housing and consumer credit conditions will stabilize and begin improving as the year moves on. Equally important, said Ellen Hughes-Cromwick, chief economist at Ford Motor and president of the association: The entire U.S. economy will "slowly return to health" this year.

The housing market offered some immediate hints of that recovery with new home starts up by 8.2 percent last month and building permits up by 5 percent. Even in hard-hit southern California, home sales in April were up 22 percent compared to March, according to DataQuick Information Systems.

The mortgage sector continued to cooperate: Rates fell again for the third straight week. Thirty year fixed rate conventional mortgages averaged 5.8 percent, down from 5.8 percent the week before, according to the Mortgage Bankers Association of America. Fifteen year rates also dropped, averaging 5.5 percent.

Any time we're quoting mortgage rates in the fives, that's GOT to be positive news for home buyers with reasonably good credit.

Why the continuing decline in rates? One reason is that inflation is not a major worry for capital markets investors at the moment -- even if gas and food prices are over the top for most of us. The latest Consumer Price Index report -- that's the federal government's measure of inflation -- came in at just zero point two percent (0.2%) for April, which is very low. Year over year, inflation is still only around 2.3 percent.

Despite these positive signs, the fact is that consumers are still worried about the overall direction of the U.S. economy. The University of Michigan's bellwether Consumer Sentiment Index registered a 3.1 percent decline last month, continuing a steady downward trend.

That's not helpful for home sales for sure -- and that negative mindset will certainly keep some buyers on the sidelines in the months ahead.

Which is a shame if you look at conditions in most markets objectively. Most of the current numbers add up to an excellent buying opportunity.

Prices are more affordable they've been in several years. There's a bumper crop of houses to choose from. And mortgage money is cheap and getting cheaper.

Maybe the message is just taking a little time to get out there.


Written by Kenneth R. Harney
May 22, 2008 

How to Make a Success of Short Sales

Short sales are a lot of work but, if you are like me, you get a lot of satisfaction from helping people who otherwise would end up in foreclosure. Even when you have a negotiator handle the bulk of the paperwork and phone calls, an unqualified or worse yet an unwilling seller can squash your work, your wallet and your closing.

If you are in a declining market (who isn't) you should probably begin adding a qualifier into your normal list presentation right now. I know a lot of Realtors who find out in the 11th hour that Joe and Jane seller have not made a mortgage payment in three months and that the auction is looming. This throws your entire system out of whack. You now have to rev up you marketing, get with the lender, drop the price and call everyone you know to try and get an offer at the last minute. Chances are that without an offer on the table, the lender will not stop the sheriff sale. All your time, money and efforts are now wasted because you just didn't know.

So, what can be done to help these people in distress. The seller probably didn't tell you because they were embarrassed to tell a stranger their financial woes. In this current market, they need to spill their guts. Its not easy or comfortable to come right out and ask them if they are making their mortgage payments. That is why you need to know the qualifier questions that will lead them into the answers that will help you, to help them.

Start by asking questions that are not personal but opens up the seller to what needs to be said. Simple questions like "why do want to sell" can lead the conversation into where they are and what motivates them. "What do you think your house is worth" and "would you consider reducing the price to sell" are questions that will get you some interesting perspectives on what they perceive the market to be in your area. The great qualifier is "how quickly do you NEED to sell"? When the eyes shoot to ground or defense mechanisms come into play you know its time to dig in and find out if they've lost their job and they are prolonging the inevitable.

Another problem that I see a lot is that the seller calls the Realtor to list the property a week before the auction or, in redemption states after the auction has taken place! These are the sellers that you need to be very careful with. They waited until the last minute to sell their house and more times than not it is out of shear desperation. These people are the ones that can drain every bit of energy from you and walk away from the house without a care in the world.

First of all, why didn't they call you when they were only a month or two behind? There are some legitimate reasons. Maybe they thought that they would be back to work or, they knew that their house was not worth what they owe so why bother trying to sell it. These are the ones that you may be able to help.

The other ones ... . Desperate people do desperate things and when you get caught in the middle of their indecisive behavior, you are asking for trouble. These are the people who care a whole lot today and not at all tomorrow. You will work 10 times harder for them and probably will not close the deal.

Common traits of these wishful sellers are:

 

• 1. They rarely return your phone calls and when they do it is when they believe that they will get your voice mail.

   

• 2. Troubles getting buyers into the home. I.E. No return phone call,

   

• 3. You get only portions of the paperwork needed to properly perform the short sale. There are many documents that the seller needs for the lender and if they don't have the initiative to do something as simple as write a hardship letter. Expect not to sell this house.

   

• 4. Overall bad attitude. Who needs it! You are trying to help them and if they can't get that through their thick skulls then you will not be appreciated enough to get it sold.

   

• 5. Misinformation- how someone forgot that they just got out of bankruptcy is beyond me? What? You didn't know that you had a tax lien on your home? I guess the IRS forgot to call them?

   

• 6. They vanish! That's right. I've seen many of these people just up and leave and take your sign with them. There's nothing worse then getting an offer and you excitedly call the seller who suddenly has disappeared with no forwarding number or address. (this happens far more often than you think).

Fortunately there are some ways that you can qualify these sellers. Now that you know some of the questions to ask, make them come to you. Nothing extraordinary but, asking them to bring some paperwork to your office is a simple request and it may weed out the unmotivated.

My reasoning is that if they want your help, they will do a little extra to ensure the successful sale of their home. If they are resistant to simple requests, it is a red flag that you need to take seriously. Otherwise, you may find yourself going the extra mile for someone who has plans on leaving their worries behind, and that includes you!

Most people do not know that there are options open to them. Many lenders now offer workout deals for homeowners who are able to re-adjust their mortgage into a manageable rate. Some of these people may just need to refinance out of an ARM in order to save their home. There is no reason that you, their agent should not lay all of the options out for them. A short sale is the last option before foreclosure and there is no sense in marketing a home that should not be sold. Pre-qualifying your seller will save you lots of time, money and headaches.


Written by Rob Jacobs
May 21, 2008 

Website Tips for Real Estate Professionals

Here's a common question: "Denise, do I need a website?" DEFINITELY!

Why? Because the world is now online, and people turn to the Internet first for information gathering. The trend is only going to increase.

BUT... The key question is what do want to achieve with your website? Do you want to focus on customer service? Then, you may not need a site with fully loaded keywords and meta-tags. This makes for better SEO (Search Engine Optimization). I know many agents who don't worry about this at all because they promote their site solely with offline promotion that they do themselves.

On the other hand, if you want to use your site as a lead generation tool, then you need to get very technically savvy and understand how to drive customers to your site directly from a search engine. This requires an expert. Don't do it yourself. I repeat ... don't do it yourself! You don't have the time nor the expertise.

Ultimately, we're all heading toward custom sites. While it may not be as important if you're just using your site for customer service, the trend for customization is not going away. And it's not just trendy. It makes sense to have a custom site -- with your personality, design, and expertise on full display.

When you hire somebody to design your site, make sure the person clearly understands real estate. Real estate websites are different from other websites. What may work for the financial services industry is not going to attract potential home buyers or sellers. You need visual impact, relevant real estate information, and your unique spin on what you do.

A strong real estate website will have the following:

1. Search capability.

Nobody is going to look at your website if they can't search for homes.

2. Mortgage calculator.

People need a way to easily calculate mortgage payments.

3. List of your services compared to your competition.

Clearly articulate what you do better than everybody else.

4. Area links and resources.

Make sure you have every piece of information about your area available to your clients. They must know that you are the source for every fact about your neighborhood.

5. Your area of expertise.

Beyond what you do better than your competition, you need to highlight your "niche"-be it condos, luxury homes, investment homes, vacation homes, whatever. Be an expert on something and shout it from the rooftops on your site.

6. Meta tags.

Make sure these clearly relate to everything on this list. You may want to even consider hiring a writer with SEO (Search Engine Optimization) experience to craft your sales message and insert proper keywords where it counts. Again, let the experts handle this. That's what they're there for.

7. Design.

Design design design! I can't emphasize the importance of this enough for real estate professionals. This is a very competitive business and if you don't look great, nobody will think you're great. You've got to look good to be good.

8. Navigation.

Your client needs to get around your site quickly and simply. No confusing links. No thinking. Again, a web design professional (who has done this a thousand times) is your best bet.

9. Easy contact forms.

There's nothing more annoying than requiring too much information from visitors to your site. Make your contact form simple. First name and e-mail is often enough. Sometimes even just an e-mail. Asking for too much information up front can seem predatory. You don't want a predatory "vibe" on your site.

10. Less Flash.

Designers love Flash animation. It's nice, but keep it to a minimum. It's the icing on the cake. It's not absolutely necessary, and can distract from your content.

11. Content-rich.

Articles, research, links to resources. You need to be your client's ONE-STOP for "all things real estate". Whether it's mortgage information, government regulations, local trends, or basic purchase facts -- have it on your site so they don't have to go anywhere else.

12. Statistics and research.

People love statistics and research and shouldn't have to go somewhere else to get them. Again, think ONE-STOP.

13. Photography.

Hire a professional. Do NOT use any photo that may be a copyright infringement. Every picture on your site should be licensed for your use. And every one should be vibrant, exciting, and colorful -- fitting in perfectly with your unique design.

14. A welcoming feel.

No hard sell. You want people to want to be on your site. Nothing scares them away more than high pressure. Be personable. Be a human being who is talking directly to them-just as you would to your best friend.

15. Regular updates!

At least once a month, add something or update something. Preferably weekly or daily if you can. People need to know you're in business NOW. If the most recent article on your site is dated "April 2005", it looks like you've gone out of business.

Whatever kind of website you use, the best feedback is going to come from your clients. Don't be afraid to contact them to ask for an opinion. Say, "Tell me from your perspective what would make it a better site for you. Have I missed something? What did you like best about it? What did you like least?"

Follow these tips, hire a professional, and you'll have a real estate website that gets results and makes you STAND OUT.


Written by Denise Lones
May 20, 2008 

Be Effective In Sales By Understanding People

To be an effective salesperson, you have to understand people. You have to understand that people buy and sell for a set of reasons. They also make decisions on whom they do that with based on their reasons, not ours. Being able to read people and ask the right questions is essential to success. Let me share the rules of reading people.

1. People are egocentric: This means they are self-focused. They are clearly fixated on what's in it for them. If we don't know what they want and link that with the benefits of doing business with us, we will stumble in sales. We all look at the world based on how a given situation or opportunity relates to us personally. When we fail to connect the dots personally with our customers, we are rendered less effective.

2. People make decisions emotionally: Most of us decide quickly. Some of us gather our facts and information previous to making a decision. Once we gather the necessary data, we move to the decision. Even the most analytical person will make decisions based on a feeling, need, or emotion. These people's sales cycles are longer than others. Your job is to identify the longer sales cycles and be there at the appropriate time. We must also send all the data beforehand to be digested by the customer before they meet with us.

3. People will justify their decisions with reasons: As salespeople, we have to give the prospect sufficient reason to do business with us. This frees them to move forward in the purchase based on the emotional impulse they feel. They want to move forward but are looking for a little security to justify their decision. We must provide a compelling reason for their movement forward now!

4. People delay making decisions: The longer the customer postpones making the decision, the lower probability the decision will ever be made. As salespeople, our objective is to provide the customer with enough reasons to get them to attach benefit to our service. Our other objective is to encourage them and direct them to act on it now once they have the information. The sooner we can provoke a decision by the customer, the higher the probability that it will be in our favor. The longer the time between when you make your presentation and when the customer decides, the lower the probability of success. We must focus to shorten our sales cycles.

5. People fear losing something: The fear of loss is one of the most powerful motivators for action. People will move more quickly to a decision if they stand to lose something than if they are positioned to gain something. As salespeople, we need to put our compelling reasons for action now in terms of potential losses to our clients. There are two types of fear of loss.

A. Losing something you have

B. Losing the chance to have something you want

Both of these are forefront in your customer's thoughts.

To be effective in sales, we really need to master understanding people and what makes them tick. We have to use a full complement of techniques to help our prospects and clients make the right decisions for their success.


Written by Dirk Zeller
May 19, 2008 

May Cybertips

Trick #1: Get Briefed in 100 Words

Try to picture how Readers Digest often takes very lengthy books and condenses them way down for quick and easy reading? Or maybe your Grandpa remembers Classic Comics from his high school days - where the kids could read Hamlet in 10 minutes. The folks who deliver this service have come up with a big time saver for you. They condense lengthy articles from hundreds of major publishers down to 100 words. These articles cover just about any category you can imagine. For example you can check out the dozens of broad topic such as: business, politics, sports, science, technology, arts, entertainment, style, health, food, travel, home, business or sports.

Just a few of the publications covered include: The Atlantic, Barron's, Business Week, Conde Nast Traveler, Forbes, Harvard Business Review, The New York Times, Sports Illustrated, The Washington Post and Fortune Magazine-plus many, many others.

They take the long-form content and summarize it down to 100 words and then review and rate the material to make it easy for you to choose what to read, listen or watch.

Great time saver. And the cost is right - it's on the house.

Trick #2: Get Your Money Back

You've seen the many stores that offer price protection policies. When the price drops on an item you've purchased, they'll refund you the difference. But here's the gotcha -- it's up to you to catch the price change.

These folks make it easy to keep track of your purchases and get your money back. It's as simple as entering the URL for the product from the retailer's web site. From there on out this service monitors the product's price for you and notifies you by e-mail the moment you are entitled to a refund.

And, guess what? There's no cost for this great service.

Great Place #1: Type Like a Wizard

We'll bet that there is someone in your family who is still huntin' and peckin' on the keyboard. This great place can help move them from the Society of Typing Laggards to the Society of Typing Wiz's in no time - and it can even help the Wiz's too. This great place has an online typing tutor for "Qwerty" keyboards (the one most of us are familiar with) plus Dvorak - the US alternative ANSI standard keyboard.

You'll find most of the features here that you'd expect in a costly typing program - but completely complementary. You can learn hand positioning as you train with timed exercises and typing games.

And pretty quickly you'll be a wiz -- without breaking the bank.

Great Place #2: New Floor Plan in Your Future?

Big events in life include rearranging the way we live. This certainly includes buying a new home, rearranging an existing room or moving into a new office. Here's a great place where you can save time and have fun laying out your ideas ahead of the momentous occasion.

These folks give you the online tools to quickly and easily create and share good looking interactive floor plans. With their point-and-click, drag-and-drop tools, you can make your new floor plan in minutes, and then rearrange it as often as you want. Then you can save, send, and print your designs to share them, or place them on your own website.

It's easy - no downloads -- no heavy lifting -- and no cost.


Written by Jack Peckham
May 16, 2008 

Paul S & Pat C ,
Luxury Custom New &
Pre-Owned Homes
E-mail: njestates@earthlink.net
Web: http://www.newjerseyestates.net
908-561-5492 (Paul S) 908-310-1358 (Cell)908-561-6499 (Pat C) 908-578-0890 (Cell)

Real Estate Outlook: Encouraging News

Despite all the grim news about gas prices and recession, there are more than a few encouraging signs popping up in the national economy that aren't getting a lot of attention.

Take worker productivity in the U.S., for example. It jumped by 2.2 percent in the latest quarter -- and that was on top of a 1.8 percent gain the quarter before.

Why's that significant for housing and real estate? Because rising productivity generally points to lower inflation ... and lower inflation fears help keep interest rates low. Just ask the Federal Reserve, which keeps an eagle eye on productivity.

And in fact we continue to see mortgage rates hovering near record lows. Thirty year fixed rate loans dropped again last week -- the second week in a row -- and went under the six percent mark to 5.9 percent, according to the Mortgage Bankers Association of America. Fifteen year rates slid to 5.5 percent.

Equally important, the number of consumers applying for mortgages to purchase homes took a healthy jump last week -- up 12.1 percent, according to the Mortgage Bankers. Applications for FHA mortgages -- the hottest product in the home purchase space right now -- were up by 13.2 percent.

The surge in loan applications is important because it points to potentially higher home sales in the months ahead. Lower home prices in major markets, plus the arrival of the long-awaited "jumbo" loans in high cost areas, are definitely pushing applications.

But despite these positive signs for the housing economy, there are some troubling developments as well. Last week's Senior Loan Officer Opinion Survey -- a poll of bankers across the country conducted by the Federal Reserve Board -- found that "tightened lending standards" are major impediments keeping home buyers on the sidelines.

Toughened underwriting restrictions that began a year ago with subprime loans have now "spilled over into the overall mortgage market including prime," according to the Fed survey. 62 percent of all banks reported imposing more restrictive loan standards during the first quarter of this year compared with last year.

What the Fed report documents, in effect, is that large numbers of home sales that might otherwise be occurring -- helping to pull us out of the real estate slump -- are being prevented by lenders' narrowing or closing of their mortgage windows.

Until they start loosening up, it will be tough to move to a full real estate recovery.

We'll keep monitoring that part of the lending market equation for you, and we'll let you know when we see some positive signs of change.


Written by Kenneth R. Harney
May 15, 2008 

The Lessons for 2008

Let's get right to it. Here are my Top Ten Lessons for 2008:

1. Get out of your "Comfort Zone."

Whatever it is, smash out of your bubble. Maybe your "Comfort Zone" is crunching numbers and shuffling papers. If so, get out of the office and join a networking group. Force yourself to get out there and meet people.

Maybe your "Comfort Zone" is talking to people, but your organization skills need improvement. If so, schedule some "hard time" with your record books and a large cup of coffee. Shut off your cell phone and return no calls until a good chunk is organized. Hey, maybe you even need to bite the bullet and get a part-time assistant who will make your business shine while you're out selling away.

2. Find a mentor.

This may be the one most important step you ever take in your career. Every successful agent I know has had a mentor relationship with someone who they admired and respected.

Think of someone you'd be proud to say, "I learned everything I know from. Who would it be? Are you afraid to ask them to be your mentor? You'd be surprised how many people would be flattered to be asked. And if there's one thing successful people love to talk about, it's how they got where they are.

Mentoring, as such, is truly a win/win relationship. The mentor gains the sense of fulfillment that comes from handing down personal philosophies onto others. The student gains one-to-one knowledge of what it takes to be successful.

But even more importantly, such a relationship helps you to be accountable. When you commit to another person, you find ways of doing things that you would have skirted away from if nobody was looking. A mentor will hold you to your promises just by listening to you make them. There is no better way of getting things done.

And, at the same time, think about of someone you could mentor. The energy you give out to your own "student" will come back to you in many positive ways. Make a commitment in 2007 to both find a mentor and to be a mentor.

3. Do something different in your marketing.

(Well, you really didn't think I was going to leave out this one, did you?)

There is nothing more powerful than giving yourself a new image. Maybe your marketing lacks continuity. Maybe you need more tools. Maybe you don't STAND OUT from your competition.

Bottom line: If your marketing isn't working, holding onto it for a "little while longer" is only going to bite you in the neck. I know you want to save. I know you're conscious of every penny that goes out of your checkbook. But at some point, you know you must commit yourself to your business, even if it means outlaying the cash to get things done right.

It's a hard thing to admit that your marketing is lousy, especially when you thought it was so brilliant. I can't tell you how many agents I've known who have "fallen in love" with their marketing. But it didn't work! No new business equals bad marketing, no matter how wonderful YOU think it is.

Sorry to sound a bit harsh here, but when it comes to marketing you have to go with what works. So take some time to look at what's NOT working in your marketing and make plans to get rid of it by replacing it with proven strategies that work over and over and over again.

4. Appreciate!

A big lesson for me in 2007 was seeing how many agents don't stop to appreciate what's good in their business. We're often good at appreciating others, but terrible at appreciating ourselves.

Stop getting so down on yourself about everything that goes wrong. Appreciate the fact that this is a tough business, but that's why you're in it-you love the challenge of using your true potential to help people. Sure, things go wrong. And they always will! But even in the midst of chaos and misery, we struggle, we survive, and we rise to the occasion!

Appreciate all the hard work you've done. Appreciate your staff. Appreciate the rewards of this business. And, most of all, appreciate the opportunity you've been given.

5. Get competitive.

Let's put this fear of competition to sleep once and for all. Competition is good. It's a measuring stick for our abilities and achievements. Without it countries would not be forged, industries would not be built, and very little would get done. It's the competitive spirit that drives progress-and it's better to accept this truth than to sit back and expect the world to "cut you a break."

Everything worth doing is a competition of sorts. It's an eternal vigilant battle against laziness, low self-worth, and negative thoughts.

If you were one of six agents asked to appear before a panel of judges hired by someone who wants a real estate agent, what would you say about yourself that would win you the business? This is a great brain-stimulating exercise that you can use everyday to tweak and refine your competitive edge.

If you don't know what your competitive edge is, then make sure you figure it out in 2008. One of the best ways to find out is to ask your previous clients, "What was the best part about working with me?" and "What was your least favorite aspect of working with me?"

Ouch. That last question stings a bit, doesn't it? It should. We all have negatives -- each and every one of us. And our negatives need to be seen, dragged out into the light, and eliminated as best we can. How else can we become better if we don't eliminate the aspects of our businesses and personalities that may be sending business to our competition? Have the guts to hear the truth. The truth will always catapult you to the next level.

6. Get educated.

Real estate education is often equated with the insidious phrase "clock hours." That's not the education I'm talking about.

To me, the word "education" ignites that yearning to get to that class because it's a topic that you're almost obsessed with. If you're not obsessed with being the best you can be and living the lifestyle you want, then maybe you should be working a 9-to-5 job sitting in a cubicle staring at a computer screen, letting your boss make all your decisions for you.

But that's not you. That's not why you're here. You want to be in charge of your destiny and you know that to get there, you need to be as educated as you can possibly be.

7. Don't listen to the media.

8. Do your own research. Become an expert who knows more than any reporter. Be able to shoot down their argument without even thinking. Your clients will love the fact you are so knowledgeable.

9. Pick a niche.

Agents are so afraid of specializing in a tiny market segment (or "niche") because they think that they're alienating the bigger population of potential clients. I cannot tell you how wrong this thinking is.

When you adopt a small market segment and become the #1 expert in it, you will have more business than you can handle.

For example, most of the world (and I'm talking the planet!) runs on Microsoft Windows-based PC's. So you'd think Apple would stop selling Macs or go out of business, right? But no. Apple markets their computers to creative and artistic professionals -- because their product works better for that "niche." If Apple hadn't realized this early on, they would have gone the way of Atari and Prodigy.

A more local example is the carpet cleaner who uses all-natural nontoxic cleaning equipment. He's not trying to be all things to all people. He can charge higher prices than the fancy steam rug cleaners with the big trucks and hoses because he's providing a "niche" service-and stays busy all year round with a much smaller clientele than the big guys.

That's the power of niche marketing. Think about it. What would you like to be an expert in? How about condos? Waterfront property? Second homes? Retirement homes? If you send out 12 articles a year on your specialty, you will be amazed at the effect it will have on your business. The people who need you will find you because you'll be known as the "Go-To" person for your niche. (And you'll make more money than being a "generalist.")

10. Know your market.

Real estate agents are guilty of not doing enough research on their market. When I ask, "How's your market?" and I get the response "Good" or "Not so good," I know immediately they don't know what they're talking about.

Markets change daily. They change by price, by area, by neighborhood, and by supply-and-demand inventory. Do you really know how your market is doing?

If someone asks me "How is the market doing?," I always say "It depends. Which one? The rambler market? The acreage market? The million-dollar market? The half-million-dollar market? Yesterday's market? Today's market? This hour's market?"

Do your research. Know your market.

11. Commit yourself to QUALITY OF LIFE.

This is the BIG ONE. This is why we're here. This is life. You need to be enjoying your life in order to have one.

When I start to get tired or burnt out from working too hard, that's the moment I realize I need to put everything down and go home to my husband and kids. Balance is everything.

And if I'm not putting my family first, then I'm not living. I'm not in business to spend every waking moment at work chasing money. I'm in business to use the money I make to create a happy home life. If you're not spending enough time at home, then commit to figuring out in 2008 how to streamline your business with processes and systems that provide you with more free time.

And, get away! You must schedule a vacation in 2008. And I mean a real vacation! (I'm thinking about making it mandatory for all my students.) No phone calls, no e-mails, no clients. If you don't have time to get away, then you need to plan it. It may be the one most important thing you do for your business all year.

Implement even one of these things and you will surely see an increase in your business.


Written by Denise Lones
May 13, 2008