Returning customers and referals....

If you thought you were wasting your time keeping in touch with former clients, you may want to take a fresh look at that point of view. According to a study released just last month by the National Association of Realtors®, more than half the people who bought or sold property selected their agent or broker either through a referral or as the result of a previous client relationship. The 2005 National Association of Realtors® Profile of Home Buyers and Sellers, based on more than 7,800 responses to a national questionnaire, revealed some interesting patterns in consumer behavior.

Specifically, it was shown that 44% of buyers chose their agent or broker on the basis of a referral by a friend, neighbor, or relative; and 11% used an agent from a previous transaction. From a marketing standpoint, it's also relevant to note that 7% of the respondents found an agent on the Internet, 7% met at an open house, and 6% followed up on contact information displayed on a 'for sale' sign. So while it makes sense to have a strong presence on the Internet and to continue holding open houses, casting a wider net for referrals may be one of the best ways to increase your sales.

Personal Recognition May Be the Missing Ingredient

As you experiment with different techniques to stay in touch with past and prospective clients, the key element in making a good impression is personalization. If people feel like they're being treated like 'just another name' on your mailing list, then your letters and greeting cards will often be perceived as junk mail. For that reason, sending out a generic birthday or anniversary card with only a signature and no personal note is usually a waste of time, paper, and postage. People want to know that you actually remember them and have taken a couple minutes to think of them, rather than delegating the task to the office secretary, for example. (Perception is all that matters.) And if you can remember something specific about the client or prospect, and comment on it, then they'll definitely sit up and take notice. Something as simple as "Hope you're getting more sleep now that the baby is older!" or "How did the remodeling project go?" can add a much-needed personal touch to your communications!

Consistently monitoring the local newspaper for civic awards, job promotions, wedding announcements, sports team victories, and other milestones is a habit that can help you personalize messages and cement relationships with clients. Not only can you send them a congratulatory note, but you can also enclose a clipping of the announcement as an added gesture. The fact that you've taken a moment to recognize their accomplishment or special occasion will definitely help you win points. And, since you never know when they're going to need your services again or when they'll be asked if they can recommend a good real estate agent, you need to periodically keep your name in front of them as a reminder of your interest, enthusiasm, and availability.

Another approach to staying in touch is through a quarterly newsletter. (Issuing it monthly would be too time-consuming for most agents and brokers.) Bulletins that you write and localize yourself would tend to generate more interest than a generic pre-written version, but perhaps in the interest of time management, a combination of the two might be the ideal solution. As an alternative (or a supplement) you might also consider producing a permission-based email newsletter, an online e-zine, a blog, or simply a regularly updated web site. Regardless of how you approach it, keeping the lines of communication open between you and your existing and prospective clients can translate into repeat business, lucrative referrals, and more bottom-line sales profits.

Maintain your commission and your integrity

You don't ever have to reduce your commission to get a listing. That's right! And the key to getting the listing every time (with your full commission) may surprise you. Realize that there is no "trick" to earning what you're worth. In fact it's the complete opposite of a trick: be ethical and honest with all clients, at all times, and you will get the listing and your full commission every time .

You probably know a few agents who will say and do just about anything to get a listing, including slashing their commission. These people aren't being honest with themselves or with their clients, and in real estate, as in all aspects of life, what comes around goes around. The less ethical you are, the more potential buyers and sellers will begin to see you as a "game player" who'll do anything for the listing. But the more ethical and upfront you are, the more people will see the value you offer as an agent and your concern for their needs, so they will naturally pick you, no matter what commission you charge.

Following are some guidelines that will help you position yourself as the agent of choice:

1. Don't give into client objections.

Stop negotiating! When you negotiate your commission, you're not only negotiating money. You're also showing that you're not worth your fee. The bottom line is that you must set your standards and then stick with them. Most clients will ultimately respect this and appreciate what it means for them. For example, explain to clients reluctant to pay your full fee what they receive for the price of your commission and what the value of that is for them. Also, ask them to consider whether they believe an agent who is not willing to hold fast on something like a commission fee is someone they would want negotiating on their behalf.

2. Always price honestly.

It may make you uncomfortable to tell the whole truth 100% of the time, but you must do it. Some clients even seem to make being honest difficult; they want you to tell them what they want to hear, rather than what they really need to hear, which is always the truth. But the truth is so easy. For example, if a client who must move quickly to take a job in another state tells you she believes her home is worth $550,000 when you know it's only worth $425,000, you might be tempted to be dishonest, to agree to list at that price, knowing that she's in a hurry to sell and will be forced to reduce in a couple of weeks to $425,000, which is what you know it to be worth in the first place.

But the ethical response is this: "I understand that you believe your property is worth $550,000. Is that what you need to sell? Well, I honestly don't believe you're going to get that. Do you want me to tell you what you want to hear, or do you want me to tell you the truth?" And then explain what the real estate market is like. Let the client make the decision about whether or not to list. That's how you lay a solid foundation that leads to repeat business and many referrals.

3. Treat everyone with integrity and dignity in pricing.

If you were a client, would you want to pay more than someone else for the same level of service? No! So why should a nice elderly woman with no negotiating experience pay full commission while a shrewd businessperson gets a discount? No matter what size your market, people will talk. If you're willing to compromise your ethics, word will travel fast and your reputation will be ruined. The best way to keep your ethics, integrity, and honesty in check is to always detach from the outcome of your current situation. Stop thinking about what you're going to get out of the deal and focus on what the client wants. The more you focus on the client, and the less on the outcome, the more you'll get what you want. Yes, you're in real estate to make money. And when you're strapped for cash, it can be tough not to think about that commission. But when you help others get what they want, you'll naturally get what you want.

4. Earn, don't buy, business.

One way to help ensure you always get your full commission and the listing is to set your competition up for failure. Tell prospects who are trying to get you to reduce your commission that most of your competitors in your market will reduce their commission, but you won't, because the way they reduce commission fees is by buying business, as opposed to earning it. Say, "Buying business is when an agent lists high and works for a reduced fee, so he or she appears to be negotiating in a way that's favorable to you, but it's really not. It's a kind of shell game, and I don't work that way." Then explain how you do work so the client sees the true value in what you offer.

5. Pre-qualify the listing appointment every time .

Ninety percent of the time, the questions you don't ask in a pre-qualifying conversation hold the keys to why you didn't get a listing. So, to get the listing and your full commission, you need to ask those tough questions: "What do you think your home is worth in our market?" "How soon do you plan to sell?" "Are you interviewing more than one agent?" "Are you considering the possibility of selling the home yourself?? ?Are you getting pricing for the purpose of re-financing?" "Have you already met with a lender?" All of these questions and more are necessary to help you determine the potential client's motivation before you go out on the appointment.

Also, you must ask these questions before you go on the listing appointment. Realize that some people simply want you to go to their house so they can learn the value of their home. They have absolutely no intention of selling. So by asking these pre-qualifying questions prior to the listing appointment, you save yourself and your prospect a lot of time. Additionally, you increase the likelihood that you'll get the listings you want and the full commission you deserve.

6. Confidence sells.

When you lack confidence, people look right past you. They see you as weak, timid, and not capable of delivering quality service. Realize that price, experience, company name, etc. have little to do with the prospect's decision to hire you. When you meet with potential listing clients, they will choose you if you're more confident than the other agents they have met with. Ninety percent of the time, if you appear confident and competent, clients won't even ask you to reduce your commission. So even if you're fairly new to real estate, learn to "fake it 'til you make it"; be prepared and know your presentation inside out. All successful real estate agents project a strong sense of self-worth, self-reliance, and self-respect. Most people are willing to pay to work with someone who can get the job done. When you have confidence, people are drawn to you because you speak with authority and appear firmly grounded.

More Listings are in Your Future

To be a truly successful agent, you must not seek to win at any cost, including your reputation. Instead you must consistently value your personal integrity above any commission or choice listing. You must be truly interested in meeting your clients' needs in buying or selling a home, and you must always tell your prospects what they need to know, not what they want to hear. Don't forget: when you help others get what they want, you'll naturally get what you want. Write that phrase down and post it in your office, on your bathroom mirror, in your car...anywhere you'll see it every day. Live by that phrase and you will have success.

Commission Myth

How many times has the following happened to you? You arrange to meet with a For Sale by Owner prospect in the hope of getting him to list with you. But after 30 minutes of hearing why real estate agents are irrelevant, you make a hasty retreat with your tail between your legs.

Or you're well into a listing presentation with a seller and you reach the part you've been dreading. The seller is about to ask how much you charge, and the question hangs in the air like the Goodyear blimp. You're starting to sweat, knowing that, once again, you must defend your fee.

If any of this sounds familiar, it's probably because you've long since bought into what I refer to as the Commission Myth. Simply stated, the Commission Myth says that the less a seller pays in commission, the more money he'll put in his pocket : a false assumption that sellers - and even many real estate agents - believe to be gospel. This myth is the fuel that drives FSBOs, emboldens sellers to ask you to discount your fee, and puts most agents on the defensive.

Do you want to compete for listings and convert FSBOs who believe they're better off without you? If so, it's critical that you not only understand the false assumptions the Commission Myth are built upon, but that you learn how to articulate them with competence and confidence.

Deconstructing the Commission Myth

The very first thing you need to do to overcome the Commission Myth is to learn the difference between the fee you charge and your total cost to sell a home. They really aren't the same thing. As a real estate agent, your total cost to any home seller is the combination of the fee you charge and your average markdown percentage .

What's your average markdown percentage? It's the difference between your average list price and your average sold price. For example, if your average list price to sold price is 98%, then your average markdown percentage is 2%: 100% minus 98%. Add your markdown percentage to the fee you charge and you'll have your total cost to the seller.

Now imagine that you're competing with someone in your marketplace who charges a lower fee than you do. After exhaustive research, you discover that he has a substantially higher average markdown than you do. Your calculations prove that even though he may charge a lower fee than you, his total cost is actually higher than yours.

At this point, you can confidently ask your seller, "If you knew for a fact that I cost less to sell your home than the other company costs, even though my fee may be slightly higher, would you hire him or me?" You will need to back up your assertions with some selective research, but this information is readily available from your local MLS.

Focus on Your Seller's Needs

Understanding how to articulate the difference between what you charge and what you cost to sell a home will have a dramatic impact on your ability to get listings. Your advantage will be this: whereas most real estate pros spend time trying to justify their fees to prospective sellers, you'll be providing solid evidence that YOU actually COST LESS than any of your competitors.

We know intuitively that just because something has a lower price tag doesn't mean it's a better deal. Take shopping for new tires for your car as an example: you could consider either buying the "El-cheapo" tires that are guaranteed to last 20,000 miles, after which they simply disintegrate, or you could go with the more reputable long-lasting brand, which has a slightly higher price tag but is guaranteed to last 50,000 miles.

Spending more doesn't really cost more, does it? Don't let your prospective sellers confuse the price they pay to get their homes sold with the total cost of getting their homes sold. Your job is to enlighten your prospects that in spite of the fee you charge to get their houses sold, you actually cost less than your competitors.

The Commission Myth and FSBOs

But what about FSBOs? Aren't they still going to come out ahead by doing it all on their own? FSBOs present a special challenge to listing agents because they're the most ardent believers in the Commission Myth. Their thinking goes something like this: "If I pay nothing in commission, or maybe offer a 2% co-op fee if an agent brings me a buyer, then I'll walk away with more money in my pocket. All I need to do is to place a couple of ads in the paper, set up a Web page, stick a sign in the yard, and voilá, the phone will ring off the hook."

FSBOs don't realize - and this is what you must articulate to them - that the kind of people who typically buy from FSBOs do so only because they're looking for a bargain. Most FSBO offers from potential buyers tend to be "lowball" offers.

According to a recent NAR study, the average markdown of sellers who do all the work themselves, without any assistance from a real estate agent, is 15.4%. (A separate USA Today study came up with an even higher figure.) They may be paying ZERO dollars in commission, but the total cost of getting their homes sold will far exceed any fee charged by you or any other agent. They just need a little enlightenment. That's where you come in.

Help Sellers Make Informed Decisions

Do yourself a favor: don't let the Commission Myth stand between you and your next listing. Spend a little time doing your research so you can clearly explain the difference between the fee you charge and your total cost for getting a home sold. Then take this newfound knowledge and educate your prospective sellers so they can make a more informed decision. And make sure they know that the right decision is to hire you!

Healthy Roof = Healthy Sale

When guiding a homeowner through the sale process, helping him or her gain the highest valuation possible is top of mind for everyone. Knowing the condition of the home and advising the homeowner on the most effective pre-sale repairs and improvements can be a realtor's greatest asset, and the client's greatest benefit.

Similarly, realtors know that a common concern among homebuyers is when the roof will need to be replaced. This is because replacing a roof can be one of the most expensive house maintenances new buyers may be confronted with. After buying a home, this financial burden could be quite devastating to a new home owner caught unaware.

It's important for realtors to know if the roof is sound, as they're certain to be asked that question. Before the time of sale, the realtor should know from the homeowner when the roof was last inspected and when problem areas were fixed. This type of counsel will also ease the mind of the buyer and assist in developing a buyer's confidence in all the information that the realtor is giving to him/her through the selling process of the home. If the roof has recently been repaired or replaced it would serve your client well to ask for the receipts and for the possibility of the transfer of any outstanding warranties.

Roof problems, like leaks and moisture can occur at any time and may be difficult to find and the cause of significant structural damage. Potential homebuyers need to be advised on ways to ensure that problem areas are detected early on.

Most asphalt/fiberglass shingles are made to last about fifteen years, but expect some problems when a roof reaches the age of eight to ten years. Learning how to identify these problems is essential to healthy roof maintenance. There are several sources that contribute to leaks/moisture. The following sources should be easily recognized:

Rain/Wind ? Some roof problems occur when wind forces the rain under the edges of the roof or shingles. Two factors contributing to this problem is an improperly sloped roof or failure to use roofing cement to adhere the asphalt/fiberglass shingle tabs in high wind areas.

Ice Dam ? This is an accumulation of ice at the lower edge of a sloped roof. Ice dams form when there is a layer of snow on the roof, which melts due to heat loss from the house into the attic. The water refreezes at the eave because it extends past the warm interior of the house and the backup of water seeps underneath the roof covering.

Moss ? Wood and built-up roofs are more prone to moss deterioration because they more easily retain moisture, and its root system may penetrate the roof surface. If you have a wood roof, inspect the roof more often in order to control moss growth. It doesn't have to become a problem.

Water Vapor ? Thermal and vapor barriers are now required when building homes. However, you should still look for signs of water vapor. Exfiltration of warm moist air to drier colder air results in condensation (frost in the winter), mold and mildew and wood decay. Seal well around ceiling fixtures, plumbing pieces, exhaust pipes and other obstructions running through the ceiling.

If a home has an attic, know the signs of attic leaks and moisture in order to explain to buyers how to avoid further roof damage. These signs are:

Structural sagging; a wavy roof frame and sheathing.

Damaged, worn or missing shingles; moss growth
Corroded flashing (around chimney, dormer, vents and in valley)
Raised shingles along the bottom of the roof
Icicles hanging from the gutter in the winter (evidence of potential ice dams)
Stained/Discolored or delaminating sheathing (when viewed from the attic hatch)
Rusted nails and rusted stains on the sheathing (when viewed from the attic hatch)
Damp or discolored insulation (when viewed from the attic hatch)
Water spots of black marks on the ceiling or at the junction between the ceiling and wall
Water marks around the ceiling fixtures
As the home ages, homeowners should be advised to schedule a home inspection in order to be informed about problems that only professionals can spot. Knowing how to fix them before they get worse can save a tremendous amount of money and assist in making more money at the time of sale.

By being thoroughly educated on the condition of a home, realtors can assist homeowners in quickly selling their home by becoming a resource to the new home buyers. Realtors may consider counseling buyers on how to avoid/prepare for common problems that occur over time will ease their sense of worry and develop their confidence in your knowledge of the home. Owning a home and maintaining a roof should not be a worry for new buyers.