Tag Archives: Marketing / Communication

Life in the Pressure Cooker–Some Suggestions for Extracting Ourselves from Ensuing Difficulties

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As real estate professionals, we are more or less used to the stress level which exists within our clientele. I am a Massachusetts real estate attorney with more than 40 years of experience. I have bought, and sold, five and four homes, respectively. In not one situation was I calm and relaxed throughout the process. it seemed that there were a million things to do, and I did not have the time, or the patience, to tackle all of them. Sometimes the lender created problems with requests for information I was sure I had already submitted. Sometimes, the walk-through did not go particularly well. In one situation I had a flooded kitchen between the time of Purchase and Sale and the closing. That caused its own set of problems.

Looking back on my own situations, and the many others I have handled for others, I have developed a few tried and true approaches to the real estate “pressure cooker”, which I would like to share with all of you, whatever part in the process you are assuming:

     1. Try to Stay Calm. Problems are going to arise, and almost always when we least expect them. Acccept the fact that there can be problems. Think about your customer first. What can you say or do to assuage the issue. I have found that the last minute inspection problem, or the lender delay, or any number of other things which can delay a closing, or worse, are best addressed by calmness. Do not let yourself get emotional about the problems. Speak with the other professionals. Try not to relay bad news to a customer without suggested approaches to a solution. Think positive thoughts; convey your sense of confidence to your customer through your calm mien.

     2. Do Not Point Fingers. Many times the approach which appears simplest to effect is to blame another person or entity for what has happened, and step away. I used to do this, because lawyers are very fat targets when there is a problem, and I wanted to stress that I had done nothing wrong, but Mr, Jones or Ms. Smith, was the true culprit. I no longer take this approach. Rarely do real estate disputes actually result in litigation. More often than not there is a solution out there which everyone can live with. If I have been solution, rather than blame, oriented, I can preserve my relationships with the professionals I will have to work with at other times, and in other places. Furthermore, I have found that coming up with a solution in a difficult situation is the thng that a lot of people remember about me, and my firm, when the smoke clears.

     3. Do Not be Afraid to Call a “Time-out”. In our profession, no one really gets paid unless and until the deal closes. Sometimes, that colors our behavior. We all have lost deals, and spent time on matters that do not produce revenue for us. On the other hand, sometimes a deal just cannot work, no matter how hard we try to push it forward. Sometimes, it can work, but the financing must be re-tooled to fit the specific situation of the Borrower. My experience has been that it is better to call a “spade a spade” early in the game than to labor relentlessy on a project where there is little, ot no, hope of success. Call “Time Out”, regroup, and go a different path.

     4. Never Sacrifice Your Integrity to Make a Transaction take place. New financing rules have severely hampered the ability of the Borrower to exaggerate assets or income, or even lie about them. In a way, that has taken some pressure off the rest of us. There are still situations which arise, however, where a half-truth or a lack of disclosure may let a deal go forward. I suggest to each of you that you do not want to be a part of any effort which involves ANY deceit or subterfuge. I mentioned above that real estate matters rarely become litigations. If they do, however, and you are called upon to testify, you want to make sure that your behavior in the matter, from an ethical standpoint, is above reproach. Deals come and deals go. Your reputation is forever.

More Networking 101–Become the “Catalyst” who puts people, and deals, together

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Like most of you, I have a relatively small group of real “friends”. Because I am a Massachusetts title attorney trying to grow my practice at every opportunity, I have developed a rather large network of contacts and acquaintances. We all know the risks involved in representing, and working with, true friends. Our objectivity is often skewed, and we make decisions for them which are not always logical or positive. That doesn’t mean we cannot work with friends. It just means we need to establish a more disciplined set of rules when friends are involved.

This post is designed to comment about the real potential we possess in our sphere of contacts and acquaintances. it is meant to encourage each of you to utilize these sources to build your business, and reputations.  By becoming the catalyst for contacts to broaden their own spheres, you can very often improve other people’s business or, even personal, relationships.

What I am driving at is that every one of our contacts or acquaintanenaces would probably be happy to meet someone, or come into contact with someone, who can advance their situation. We, as real estate professionals, are in contact with people from all walks of life each and every day. We not only deal with Buyers and Sellers. We deal with appraisers, contractors and home inspectors as part of what we do. Our goal, with any connection like this, is to help people come into contact with others whose skills or connections may benefit them.

I try to do this work as a catalyst as seamlessly as possible. I probe, connect and then step out of the picture. It is enough for me to be part of the process. I feel no need to be the “star”; I am just helping out. My thinking is that if I “help out” enough, someone, somewhere will start to view me as a positive and want to be involved with me professionally. This has not happened overnight, and, in fact, it never happens in some instances. But to be perfectly honest, I feel good about putting two people I like and respect together. It has been enough for me to do this even though real financial benefit may NEVER come from it.

There is one constant in our profession. Our reputation is all we really have to sell. You can enhance yours by working as a catalyst for the benefit of others. That is one thing I am sure of.

How to find your “T Spot”—Building Your Business By Building Trust

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My 20 year old daughter has already told me she will be mortified if I use a vaguely suggestive title to draw people to this post. The bottom line is that we are all in the marketing business, and I write to reach the broadest section of AR Nation that I can, so, perhaps,  prudes need not read further.

Of course the “T Spot” refers to engendering trust from those you work for, and with. Once trust is established, everything gets easier. In Massachusetts, where I practice real estate law, attorneys are responsible for the mortgage loan closing. The typical Borrower comes into my office ready to distrust, and dislike, me and my firm. There is no question that we are only involved to take advantage of them in some way or other.

To combat this generalized notion, I try to prepare for the closing. I look at the Form 1003 to see if there is some common ground between me and the Borrower. “Oh, you are a nurse; you know, my sister-in-law is a nurse”. “Oh, you have kids in college; so do I. Can you believe how much college costs?” I need some door opener to convince the Borrower that I have the same kinds of hopes, dreams and concerns that they have. I need to make myself into a human, not a robot who is going to make it difficult for them to own their new home.

It is hard to say when the moment of trust will occur. Sometimes, I can go deep into the closing before I feel the pendulum swing, and the Borrower starts to loosen up and enjoy the process. Sometimes, it never happens, and I can chalk one up to experience.

The point of this post is to articulate how important it is for all of us to gain our client’s or customer’s trust. We do this by being friendly and congenial. We do this by working at our trade, so we really do have most of the answers. We also do this by having enough humility to tell the customer that we don’t know the answer but we will try to find it and get back.

Working Unusual Hours–Turn Your Idiosyncracies Into a Marketing Plus

Customer Service, Marketing / Communication,

A while back, I noticed a clip in an online legal service I subscribe to which indicated that a real estate customer was suing her realtor for harassment because the realtor sent this client emails in the middle of the night. I never found out what the outcome of this litigation turned out to be. My only thought was that this suit was a perfect example of how deeply enmeshed our country is in litigating anything and everything. It is my fervent hope that this customer did not prevail in this lawsuit.

Like many Rainers, I work strange hours. I don’t sleep much, and when I wake up in the middle of the night, I am just as likely as not to go to my computer and fire off a few emails as to return to bed. I have some thoughts and solutions for some of my clients. Why shouldn’t I write them down and get them in front of the people I am trying to serve?

To me, the beauty of email is just what I described. I can write an email any time I please. My client can read it any time he or she pleases. For me, email has cut down my phone conversations considerably. More than that, it has permitted me to put down in writing often complicated solutions to questions, in print, so that my clients have a better chance of understanding what I mean because they see it in words rather than hearing it from me, and perhaps, not quite understanding everything I have said.

My clients often say to me “Don’t you ever sleep? What are you doing sending me an email at 3:45 AM? I usually respond that I was thinking about a solution for their situation, and I thought it made sense t get it down in writing so they could have an opportunity to review what I was thinking. My sense is that, deep down, there is recognition of effort and commitment on my part, and these two qualities can only enhance my standing with clients.

I can’t really control how much I sleep. Fortunately, none of my clients have sued me for sending emails in the middle of the night. My sense is that my sleep deprivation syndrome may be a marketing plus. I would be interested in hearing your reaction to this analysis, and whether, you, too, use middle of the night emails.

The $8,000 First Time Home Buyer Credit–If Your Clients Have Already Closed on their Purchase, They Can Get the Credit Back from Uncle Sam Right Away

Marketing / Communication, Uncategorized,

For all of you who have clients who qualify for the First Time Home Buyer Credit, there is great news from the IRS. According to IRS Commissioner Doug Shulman, “this special tax feature can put money in their  (the “Buyers”) pockets right now rather than waiting another year to claim the tax credit. This important change gives qualifying homeowners cash they do not have to pay back.”

The amount of the credit will “phase out” to taxpayers whose adjusted gross income is more than $75,000 or $150,000 for joint filers. This still leaves a large universe of eligible people who can get cash back as soon as their amended 2008 return is processed.

For those readers of this post in Massachusetts, please be aware that I have located a reliable Massachusetts-based tax accountant who will prepare an amended 2008 Tax retrurn for eligible individuals on favorable payment terms. Contact me if you wish, and I will put you in touch.

This immediate opportunity for your Buyers to get cash right away seems like a great chance for you to re-connect and give your Buyers the good news. We always say we will do this, but this is a golden opportunity that should not be overlooked.

Perfecting Your Persona–Being Different Is Not Enough

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While acting as a real estate professional, working on purchase and sale agreements, leases, real estate closings and the like, has been interesting, I must admit that nothing in my over 40 years of practicing has been elevated to the status of “earth-shattering” or even unique. What I do every day is generally routine; many other people are able to do the same things that I do. There is no question about that.

So, sometimes I ask myself why is it that I have been able to achieve a fair level of success here, while some others have failed. I have reached the following conclusions:

1. You must do something in your profession that makes people remember you. It sounds simple enough, and most times it is. In the past few years, I have taken to wearing bow ties. It is not that I look particularly good in bow ties. It is just that I am becoming known as the lawyer “who wears a bow tie.” That small thing sets me apart from other attorneys, which, essentially, has been my plan. I know a mortgage originator who brings a pie, which she has freshly baked, to every real estate closing in which she is involved. She has, naturally, started to be known as the “pie lady.” The connotation is positive; she brings sweet things to her Buyers. Another person I work with always wears a special hat to her closings. Gradually, she gets herself noticed, and commented about, when she changes hat, and it is a discussion item.

2. Once people remember you, you need to be “good“. Obviously, something that makes people remember you is what drives new business to your door. But, now, comes the important part. You need to make that initial reaction have some substance. If you are a practicing attorney, you need to be the one who returns “every” phone call, who schedules closings not for his or her convenience, but for the convenience of the client. You need to always be the person who stays calm when others are frazzled, who always offers solutions when none seem apparent, who never gives up until the deal is closed and the deed on record. If you are a loan officer, you need to be the person who always looks for alternative ways of structuring the deal, who shows up at the closing in case there are last minute glitches, who is always positive and never “kills” a deal that can be rescued. If you are a realtor, you need to have a reputation as being a “deal maker” not a “deal breaker”. You need to work ceaselessly to find solutions when there is an impasse. In certain circumstances, you need to be willing to make concessions on your own fee to make the deal happen. You need to be totally loyal to your client.

As I have said, if you can combine the “persona” you have established with a reputation that is postive, you will set yourself above the rest. People will seek you out, and just you.It is great to be on the first page of Google; it is even greater to have a flock of “raving fans” who go out of their way to refer business to you. Your “positve persona” is the key to success; we all can improve ours through hard work and creative thinking.

Vendor Inclusive Marketing (“VIM”)–Using your tested referral sources to explode your business

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Vendor Inclusive Marketing (“VIM”) is probably not new to most of you. You are probably using many elements of VIM in your everyday practice. Because you are a cutting age professional, you understand the worth of knowing the very best electrician in your market. The guy who will show ip promptly at a customer’s home, do an effective diagnosis of the problem,  provide a reasonable estimate for the work to be done and then deliver his services, on time, at the price which was quoted.

Knowing who this person is elevates you in your customer’s eyes, and, realistically, provides a ready source of referrals for you the next listing, next legal engagement or next mortgage application which comes before that artisan. It is just common sense that the person to whom you have given solid, quality referrals will think of you the next time work in your line of business is available. Who knows, your VIM person may go out of his way to promote your services without even being asked.

Given the effectiveness of VIM as a marketing concept, I am making a view suggestions here which cannot help but increase your VIM score and drive business to your door:

     1. Assemble a VIM List of reliable vendors. Your professional experience may have you pretty far along the way on this list already. What you need now is to organize your referrals and get them in a document, or on your Web Page, so you can easily reference them.

    2. Deliver the “VIM List” at what you consider the appropriate time. Because my time to perform is at residential real estate closings, I deliver my VIM List in conjunction with the Notebook given to every Buyer at a closing I conduct (See my post “The Closing Table–An opportunity for marketing”). I put a plastic page for business cards in the last section of my Notebook. I tell my Buyers that the people who are in my book are tested sources. I, and my clients, have used them and they are solid.

    3. See if you can get your VIM List people to give discount certificates you can give to the Buyer. In these days of required penny-pinching, f you can give solid referrasl, at discounted prices, to your Buyer, you are doing something. Not only will your VIM List people do everything possible to give you referrals, the Buyesr will, as well.

In prior posts, you have commented on my ideas and given me new ideas to build my marketing efforts upon. For instance,one of you suggested that I place a 2010 Calendar, with my firm’s name on it, in the ever-present Notebook. I got my printer to prepare same for free,and he puts his information on the reverse of te calendard, which I place in the insert infron of the Notebook. Win-win for both of us, and a tool to keep our firm’s name in front of the client.  “Drop” marketing,if you will. Please share any of these enhancements with me. We are all working together to develop a better mousetrap. TOGETHER WE CAN!!!!!! (Sound familiar).

System “5/25”—A Proven Way to stay in touch with your Players

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Over the years, it has become more and more apparent to me that sales involves connecting with people who know, and appreciate, what I have to offer, not at my convenience, but, realistically, at theirs. One way I have found to stay in touch with these important contacts is to utilize the “5/25 System” on a consistent basis.

The System is simple. Pick out your 5 most important clients, or customers, and put them on a schedule. Then, analyze the rest of the important people in your business and pare that list down to 25 people. Obviously, the list of 30, as I call it, can change on a dime. The best way for it to change is for some new player to arrive on the scene to supplant someone else, who is marginal. The worst way your list can change is for a “favored 30” player and you to have a falling out, or disagreement, which makes continued contact with that person difficult, or maybe even impossible. If the latter happens, be decisive!!!! Excise that person from the list and find an acceptable substitute.

     1. The “Favored Five”.  You need to get yourself in front of the favored five at least once a week. Since these people are so important, it probably makes sense to vary your contact. Some weeks it may be a long email or a meeting for a cup of coffee. Other weeks you might invite them to a play or ball game. Whatever the excuse, you MUST be in front of these five people every week, without fail. At some point, your “Favored Five” are going to see what you are doing. None of mine have every held against me my elevating them to this favored status. Most understand that I am making a commitment to ============-][frequent communication with them so I can acknowledge how important they are to me practice.

     2. The “Terrific Twenty-five”.  These people are very important to me, but they have not achieved “Favored Five” status. In time, they may reach that level. For the time being, the “Terrific Twenty-five” need to be contacted at least once a month. Obviously, you can get with them more than that, but under no circumstances, should you let a month go by without an email, telephone call, visit at their office, or other contact. You need to stay on the “Terrific Twenty-five” radar screen. You do not need to make them a weekly contact, but they need to know that you are “around” and you care.

The results of this rathered structured approach have been impressive for me. My “Favored Five” people have generally been the ones who respond to new initiatives and proposals. When I am in front of them, they “remember” things which they wanted to discuss with me and thus new opportunities arise. The “Terrific Twenty-five” are in a slightly different category. They have not lost touch with me, but I am not a constant part of their business life, in most circumstances. That can sometimes be a good thing. Sometimes, the “Terrifics” want to change their role. Many times this is justified. The group of thirty is not static; you will see changes evolve as you move ahead.

There is nothing mystical about the 5 and 25 numerical selections. What is important is that you identify your “real players” and your “might be real players” as soon as possible, and then make sure you find ways to have continuing interaction with them. For me, this has been an incredible “practice builder” and also a way for me to develop lifetime friendships. What is better than those two results?

The Resource Triangle–“Three” who can make it Happen

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As I have evolved from an attorney who sat in my office and waited for the phone to ring into a realist who started to understand that marketing is an essential part of doing business, one thing became clearer and clearer. My best efforts involved finding motivated and talented realtors and mortgage originators with whom I could work on a regular basis.

This “Resource Triangle”, as I like to call it, makes perfect sense. All three professionals involved have one goal in mind, the successful closing of a residential real estate closing. All three have something else in common: if the transaction does not close, none of us gets paid. So if a realtor in one of my Triangles calls me up late on a Saturday afternoon and tells me she or he has a Buyer who is leaving town this evening, can I come by and introduce myself, I need to appear even if it means my Saturday night plans are delayed, or even cancelled. The same availability is required from the mortgage professional. If we are going to be “Resources” and part of the Triangle, we need to be there, any time, any place.

Once the Triangle is established, it can work to everyone’s advantage. The reliability component is huge. When I tell my realtor-partner, I can turn the Purchaser and Sale around in no longer than 48 hours, and I DELIVER on my promise, he or she knows that the chances of the deal coming together are increasing at a rapid pace, and what may have looked like “bragging” was only describing a standard that he or she knew could be achieved. When the mortgage originator promises a full-blown mortgage commitment in fourteen (14) business days, AND DELIVERS, comfort and credibility abound. When I promise a client who owns a home, and is buying another, that my realtor-partner can get their present residence sold in less than a month, AND DELIVERS, I look good, my realtor-partner looks good, and the magic word “closing” is that much closer.

I have been fortunate in that I have developed several unique Triangles in my practice, the difference in make up and composition being a function of the clients I am working with and geographic compatibility. The networking groups I am involved with, such as BNI, are a natural source for Triangles.

Most of the people reading this post are Triangle-eligible. They fit into one of the three (3) categories described.  I urge each and every one of you to get your Triangles in motion at the earliest possible opprotunity. The confidence in referring your most trusted clients and customers to people who have time and again DELIVERED can make all the difference for you. You will no longer be a face in the crowd. You will be the one person who can make the deal happen

Marketing 101–The Notebook

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At residential real estate closings which I conduct, my main goal is always to gain the trust of the people buying their home or condominium unit. I generally do this by spending as much time as the purchaser wishes going over the HUD-1 Settlement Statement and the accompanying closing documents, like the mortgage promissory note and the mortgage, itself. There is usually a point where the purchasers start to believe that I am a decent guy who is not trying to do anything but help them buy the home they have searched for, and wanted, for a long, long time. They are prepared to listen to me, as the closing attorney, for advice for the future.  

You, as the real estate professional, are almost always in attendance at the closing, if you are thinking correctly, because not only is this a time to receive your well-earned commission, it is also a time to participate with your customer in a positive experience with the thought that you will have earned the chance to work for the purchaser, and perhaps friends and relatives of the purchaser, in future real estate experiences. Together, you and I (if I am fortunate enough to be working with you on this transaction) can make suggestions to the buyer which will put real estate professionals, but more importantly, you, in an extremely favorable position. 

Some realtors make gifts to the buyers of a bottle of wine, or a door knocker, or a framed picture of the home they have purchased. May I respectfully suggest a different approach? May I suggest that you deliver a large three (3) ring binder, with your name and pertinent contact information included therein, and perhaps the property address placed on the outside thereof?  

This gift, you inform the purchaser, is for them to create a working history of their home. I provide the first document, an 8 and one-half by 11 reduction of their fully signed HUD-1 Settlement Statement. I suggest that they take the original HUD-1 and place it in their safe deposit box. I then advise them to copy the Owner’s Policy of Title Insurance which I will be sending them and place that document in the binder as well. 

You can then suggest that the purchasers make a copy of every invoice related to their new home and insert the copy in the binder. This includes purchases of new appliances or fixtures, and also expenses of plumbers, electricians and other artisans who have done work on the new home. A few of my creative realtors have included tabs in the binder to provide information on local contractors whom the realtor has found reliable. In effect, they have developed their own “Angie’s List” for their customer, no doubt endearing themselves to the contractors who are getting new customers because you have included them in the binder. There may even be the possibility of having these contractors furnish money-saving “coupons” which you can include in the binder. 

If the purchasers take seriously the suggestions we have made, and use the loose leaf binder you have presented, the following positive results will almost surely follow: 

  •  
    1. Future Marketing of the Home

 At some point, your purchaser will become a seller. The completed loose-leaf binder becomes a powerful marketing tool for you when you list, and show, the home. You do not have to tell the prospective buyer that the washer and dryer are new. You have the actual invoice for the purchase. You can demonstrate when the floors were sanded, and by whom. You can also deliver any existing warranties for work on the home or fixtures and appliances. Your presentation is “buttoned-up” and it will be impressive.

  •      2.  Tax Implications.

    • In the current tax picture, it is not important to have good basis information for a residential home that is being sold. Given the uncertain economic climate we are in at present, this could change. The information in the binder permits the purchasers to collective complete basis information which can be given to their tax accountant or used by themselves (if they prepare their own taxes) when they sell their home. 

    3.  Retrieval of Important Information.

    The invoices and statements in the binder contain information which can be useful in the future. Perhaps, owners want to redo their floors after three or four years. The archived invoice will provide information as to how to contact the contractor who did the work. If any vital information is missing on the invoice, the owner can include same before inserting it into the binder. 

    4. Emotional Benefit

    As all of you know, a home is more than brick and mortar. It becomes a personal statement for the owners as to the owner’s creativity and responsibility. Having a complete loose-leaf binder demonstrates to the owners that they have really made the home better. There is a feeling of achievement about their home which becomes a source of pride. You can convey that positive spin when you market the home on the owners’ behalf. 

    As I have indicated, I have been suggesting, and using, this technique for many of the more than 40 years I have been practicing real estate law. I am convinced that it works. On the other hand, even good ideas can be improved. I would welcome comments from you as to how the loose-leaf binder approach could be improved or amplified Email me at etopkins@topbev.com if you wish to begin a personal dialogue. Please visit my blog at http://realtorsresourceblog.com/