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Op/Ed

6 lessons from failed transactions that will save your next deal

(BUSINESS) Failed transactions can be a tremendous source of learning for any level of real estate professional.

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The late Maya Angelou was known to have said, “I’ve learned that you can tell a lot about a person by the way (s)he handles these three things: a rainy day, lost luggage, and tangled Christmas tree lights.”

And while I believe that this humorous quote is quite true, you can also learn a lot about a real estate professional when the going gets tough. That is, when a real estate transaction begins to face challenges or when there are signs that the transaction itself is going to fall through, you can learn a lot about an agent by his or her behavior in the face of adversity.

Having assisted agents in closing thousands of transactions, here are the six largest lessons that I’ve learned about real estate from these failed transactions.

  1. Never oversell your services. Don’t promise the moon if you cannot even deliver the stars. That is, don’t offer up marketing programs that you cannot deliver. Don’t promise your client that the property will be on page one of Google if it will not. And, never promise that you can save a client from foreclosure or negotiate a sale for top dollar. It’s not generally a good idea to guarantee that you can sell a property—especially at a price that does not align with current market value. When you cannot deliver on your promises, clients get angry. This anger will result in bad reviews, no referrals, and possibly even a cancellation of contract.
  2. Don’t be pushy. If a client is on the fence about making an offer or listing the property for sale, never be too pushy. It is generally a good idea to document pros and cons in order to help a client make a more informed decision. However, if you push clients to list their home as a short sale when they are still considering a loan modification or when you push buyers to make an offer on a property they don’t really like, your behavior will come back to bite you in the butt. Help clients make informed decisions in their own best interest—not yours.
  3. Always read the preliminary title report. If you are listing a property for sale or if you represent a buyer on a purchase, one of the first things that you must do is review the title report. If there are a significant number of unpaid liens, the seller will need to pay those off at closing. Often, this can be difficult or there may not be enough funds to close and cover the seller’s obligations. So, don’t put your buyers into a situation like this and don’t take a listing if you are not going to be able to get it closed.
  4. Always check proof of funds. If the buyer is an investor buying on behalf of a corporation, limited liability company, trust, or partnership, make sure that the buyer has the authority to sign on behalf of the entity prior to moving forward. Obtain proof of funds monthly if you have an ongoing relationship with the buyer in order to confirm that the entity has the necessary buying power.
  5. Have the lender update the pre-qualification letter monthly. Since lending guidelines are constantly in a state of flux, it’s a good idea to ask your buyer’s lender to provide you with a new pre-qualification or pre-approval letter monthly. With the fluctuation of interest rates and the risk of a buyer purchasing a big-ticket item on credit, you’ll always want to be certain that the buyer will qualify for a loan before moving forward and making an offer.
  6. Don’t waste time on anyone with irrational expectations. Perhaps you are working with an investor buyer that wants to purchase a home to flip for 50 cents on the dollar. Or… perhaps you are working with a seller that wants to sell his home for $300k over market value. It doesn’t matter how hard you try; this individual may be a waste of time. Consider how many money-making opportunities you’ve lost while spending time showing countless properties and making lowball offers. Instead, focus on lead generation and money-making activities for individuals and transactions that will actually close.

You can avoid panic mode in your next real estate transaction if you heed this advice. The greatest benefit from a failed transaction is what you actually learn and how you can apply it. You don’t want the same stinking stuff to happen to you over and over again. With that advice in mind, I wonder why it is that the Christmas lights are always tangled.

Melissa is an in-demand business success speaker and author, as well as a real estate broker with thousands of short sale transactions under her belt. She leverages her experience as a short sale insider to motivate thousands of business professionals to plan their careers better, execute more effectively on their plan, and earn more because of it.

Op/Ed

10 small things you can do for your business while Netflixing

We know the holidays are a time to relax, but before normal working hours have returned, you can still do things for your business in between episodes on Netflix. Here’s 10 simple things that won’t cut into your holiday.

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For many real estate agents, the holidays can slow business down. It’s time for some #ProductivityAndChill.

Instead of spending all day binge-watching Hulu or Netflix, in between every episode take 10 to 15 minutes to do something for your business. Here are some great ideas for things that don’t take long, but provide some long-lasting benefits.

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Productivity and chill

1. Get inspired by your favorite websites. Where do you like to shop or get your news information? Browse through their site with one purpose in mind, to see why it draws you in and how you can implement their methods into your own business.

2. Catch up on the news. Read some articles here or at The American Genius that you might have overlooked or passed by because you thought they didn’t pertain to you. Keeping up with various industries can benefit you.

3. Use your social media tools to set up posts on Twitter or Facebook.

4. Improve your webpages by writing new product descriptions or to optimize images for SEO.

5. Go through the App Store to find new apps which can help make your life easier.

6. Learn to use a new social media platform to reach out to new customers.

7. Go through your social media feed. See what people are talking about and what’s trending. Make notes when you get inspiration.

8. Clean up the documents in your laptop. Organize them more effectively so you can always find what you need.

9. Clean up your email. Unsubscribe from newsletters that you don’t ever look at. Delete messages that are old. Set up folders to save information that you may need at a later date.

10. Customize your email. Set it up to pre-sort emails into different folders to allow you to work more productively when you get back to work after the New Year.

These little tasks can eat away at your time when you’re busy trying to get things done, but when you’re relaxed and just want to feel more productive, take a few minutes to do something that won’t overtask your brain, but needs to be done to keep you more organized throughout your week.

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Op/Ed

How calendars can stop your procrastination, boost productivity

(PRODUCTIVITY) As the old method of pen-to-paper planning comes back in style, see how its use can help with time management.

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My favorite part of writing for this publication, by far, is the fact that it always has me keeping my eyes and ears open for inspiration. The simplest comment from a friend can snowball into an idea that becomes beneficial to others.

Such was the case this past weekend when my best friend, Haley, stopped by to help me unpack my new house. Haley is a graduate student, pursuing a master’s in interpersonal communication, and is a much smarter version of myself.

We got to talking about what was on tap for Haley’s final semester and she told me about a workshop she’s creating for the graduate school on the topic of how using planners/calendars helps with time management. The girl has an affinity for pen-to-paper planners, and has created an organizational structure for her daily life through their use.

Naturally, I thought, “hey, sometimes I attempt to give people advice on time management and planning, let’s bounce some ideas off of each other.” Haley then gave me a rundown of the bullet points she’s planning on covering for her interactive workshop.

1) Take everything as it comes. As a new task pops up, put it down on your calendar (whether paper or electronic) so that you don’t forget to do it later.

2) With these tasks, schedule deadlines for yourself. It can be tough to be self-motivate and have tasks completed by your own assignment. However, putting them down in writing will help you stick to them.

Only work on something if you’re being productive. If you stop being productive, you should take a step back and work on something else for a while,” says Haley. “This is why my personal deadlines help because it makes me work harder but I still have my own time.”

3) Schedule out your week starting with events that you cannot change. Start by writing down your work schedule, then appointments, meetings, etc. Then schedule in tasks that have more flexibility in time.

4) After doing this, take all of these tasks and prioritize what must be completed first and assess how much time each task will take. Be sure to give yourself an appropriate amount of time for each task.

5) For bigger projects, considering breaking them down a bit. “For bigger projects I break it down into steps, normally using a concept map to understand the core aspects of my task and what needs to be accomplished within each of those to make it more digestible,” says Haley. “Once I have the pieces, I place the pieces into my weekly schedule of events I cannot change.”

All of the pieces of this puzzle come together to create a calendar that will help you juggle every aspect of your life and boost your productivity. By implementing these ideas in my own planning, it has definitely helped me to become more of a self-starter.

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Op/Ed

5 reasons teaching your kid magic could inspire them to become a Realtor

(EDITORIAL) Teaching your child could inspire their career track, perhaps even inviting them to follow in your footsteps!

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There’s nothing quite like a good magic trick. You know there must be a solution, an easy explanation, but putting your finger on exactly what sleight of hand just happened can prove difficult with a seasoned magician. If you are the magician, you know it takes a great deal of practice, confidence, and persistence to keep an audience engaged in your magical wonders.

As captivating as magical skills are, many of the same skills that make a great magician, also make for a great Realtor®!

Here are five amazing ways learning magic as a child (or adult) can actually help someone become a successful real estate professional:

1. Build confidence

To skillfully and successfully pull off any feat of magic, you must have confidence in what you’re doing. No sleight of hand or magical illusion will be effective without the confidence of the magician. By practicing magic, you are in fact, practicing and reinforcing confidence both within yourself and your audience. A confident magician will create a confident audience – an audience that believes the magician is capable of impossible illusions, magical machinations, and captivating concealments.

This same skill set can be applied to real estate. You must have confidence in your ability to find the right home for your client. The ability to foster your clients’ trust is essential, or they will likely go elsewhere because let’s face it, the competition in the real estate world is nothing short of fierce. Starting your children out early in something like magic, builds confidence and having confidence in any industry they choose to venture into is always a good thing.

2. Hone social skills

Again, look at the audience – a good magician will have an audience practically mesmerized. The audience will be so transfixed on what the magician is doing or saying, they miss the sleight of hand. A good magician can read their audience. They know what the audience expects and will deliver appropriately. Many magicians also become well-versed in the art of nonverbal communication as well; reading people’s body language and social cues are an important part of an effective magic illusion.

Not surprising, these skills are also part of being an effective salesperson. A good Realtor will know and understand their clients’ requirements for a home, their budget, and how to effectively get them to their end goal with the fewest obstacles. Interacting with an audience is much the same as interacting with clients daily; be personable, be confident, and know your stuff.

3. Develop an eye for detail

Along with improved dexterity from manipulating cards and coins, magic routines can help improve hand eye coordination, timing, reflexes, as well as develop an eye for details. As new tricks are mastered, the eye becomes more sensitive to details of the objects being used and the magician’s surroundings. The same keen eye can readily be applied to real estate.

An attention to detail can help when staging homes, gauging your clients’ reactions to their surroundings, minimizing errors on contracts, and ensuring your safety when entering a new area. Attention to details means less errors, which in turn means happier clients and more sales completed – a win-win recipe.

4. Research

One area that you may be surprised to learn that magic can help you improve upon is research. Magicians are constantly researching new tricks to add to their routines or watching other magicians perform to see if they can implement any of their gestures or tactics to their own routines. After all, we wouldn’t remember Houdini as the greatest of all time if current magicians weren’t constantly reinventing and revisiting his tricks.

In real estate, you may be researching what your fiercest competitor is doing differently that you might be able to adapt. Are they using a different marketing platform? Are they networking in a different manner? Is there something they’re doing (or not doing) that might make a difference in your sales figures? The ability to research an adapt is another great tool to have in your box of skills.

5. Self-discipline and an ability to take criticism

When you’re first learning any new hobby, you typically “practice” on your family. They give you constructive criticism and you take that criticism and use it to improve. The more you practice, the better you get. After a bit of practice, you’re ready to give another practice run. Through continually trying to improve your skills, you’re learning self-discipline as well as the ability to accept and implement constructive criticism.

These are both skills that are necessary to excel in the professional world. You must continually hone your craft if you want to continue to excel. Continuing education, professional seminars, and workshops all exist so professionals can receive criticism on what they’re currently doing and learn what they might do better to improve themselves and their business. While you’re never too old to learn, beginning to lay the foundation for these skills in your youth with a simple hobby like magic, could be giving you more than just a way to entertain friends and family.

The takeaway:

Magic isn’t just for children; it’s never too late to have another hobby. If you’ve never dabbled in magic before, you might find you really enjoy it. If nothing else, you may find that magic teaches you and/or your children some patience, coordination, or at least a few good laughs. If magic teaches you nothing else, remember what Rumpelstiltskin said, “all magic comes with a price” and so does real estate – so hone your skills with some magical fun; you never know when it’ll come in handy!

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