Gary White FlexIt Realty~Real Estate & Updates, Grand Rapids & West Michigan

Lots of articles have been written on "how to select a Real Estate Agent".  Most of the articles focus on the key elements of the past.  Yes past things that are already over, gone, kaput.

Here is a novel thought, what has the agent done this year? 

1. Do they have listings? 
2. Do they work with buyers only and you are a seller and buyer? 
3. Have they met their education requirements?  Realtors are required to have a minimum of 6 hours of continuing education each year or a total of 18 hours in 3 years.  You would be shocked at how many put that off until the last minute.
4. Have they filed bankruptcy?  You would be surprised how many agents are in debt up to their eyeballs.  That means they are going to think more about the commission and how it is going to help them than your best interests.
5. Do they have a written marketing plan or do they wing it.  It's your money they are winging!  If your home does not sell the best advice is to lower the price.  Did you know that if your home does not sell in the first 30 days it is likely it won't sell at the current price or at all during the listing contract!
6. What type of market exposure to buyers is you property going to receive?  A yard sign? An MLS listing, a color brochure, an Internet listing, maybe even posted to some relocation company you never heard of?  The bottom line is you have to market to buyers and they have to be interested in your home.
7. Have you read about curb appeal.....what type of impression your home leaves on a buyers mind as they drive up to your home?  Can they help you with this?
8. Do you know about staging your home so it shows all the features and benefits to it's best advantage.  Does the agent think staging is important?
9. Will the agent give you market updates after you list so you know what is happening to competitive homes being marketed around you?
10. Do you know what happens if the buyers wants you to pay for repairs as a condition of purchase?  Will the agent be able to negotiate and hold these costs to a minimum?
11. Will your agent tell you to wait until you get an offer and hope the buyers won't notice a few things you have been putting off?
12. Why do some listings sell and others linger on the market?  Does your potential agent know the neighborhood and your school system.
13. Will you want open houses or is it a waste of time according to your agent.
14. Will you know when advertising is going to happen and how often?
15. What will you do if your home does not sell?  Stay, move anyway?

You can ask questions, you can try to make a great decision as we all do but choosing your representation is more than getting along or a smiling face.  This is most likely your most valuable asset so trust the agent who is trained and is selling in todays market.  If the agent hasn't sold a property in the last 3 or 6 months why do you think they can sell yours?

If you are thinking of listing your home contact an agent who closes, that sells in all markets.  Your sale depends on your choice of agent.  So training, education and experience count but what have they done lately?

The Grand Rapids Press had a very nice article in today's Sunday paper.  It was worth the read to see the history of the bridge.  I did not know many of the facts concerning the bridge.  I was 10 years old when the bridge was completed and remember the big stir it caused at the time.

I remembered the Yugo being blown off the bridge during a high wind event.  I was shocked at the time that a car, even a Yugo could be blown off the bridge.  I also remember the worker painting the bridge in 1997 falling to his death.  I did not know it was 60 feet.  I thought it was higher for some reason but the result was the same. 

I did not remember the toll was $2.50 to cross the bridge....but that is each way...so $5.00 is the real toll and it is better than swimming.  Today 50 swimmers swam the straights to celebrate....I have been in that water....it is COLD! The current is pretty strong at times under the bridge too.  I have sailed the Chicago to Mackinaw sailboat race a few times and seen the bridge from underneath.  It is truly a massive structure.

The other fact I did not know was that I-75 only has tolls in two places....the Mackinaw bridge being one of them...the other is in Florida.

So happy birthday to the bridge....just think on busy days when the cars used to be ferried back and forth the fleet of ferries would carry 9000 cars in a day.  That is an unbelievable number.

In step one we learned about the power of voice mail.  I mention in step 1 that direct mail has very little return, the direct mail association says less than 2% of direct mail creates a response unless you incorporate a twist.

I asked you to create a mailing list....including birthdays, pet names etc.  Every agent mails new listings and sold cards to neighborhoods and clients.  So how do you make an impact when others are getting no response. 

How will you separate your mailings from other agents mailings?  This is the trick and it is a great one once you know how.

I use direct mail and I get responses but I don't mail the typical just listed or sold card.  I use pictures that surprise and stun people.  Here is one of my marketing techniques that sells homes and increases you awareness in the community.  It also creates anticipation as to your next marketing creation.

Here is one of my photos that gets mailed...I call it gorilla marketing....it creates wonder and open house traffic.  This example does not show my photo but it does on my mailing.  If you notice this is a 3 story gorilla.  It is standing in front of a listing before an open house.  This is a full sized 3 bedroom ranch.  PD usually has the open house time on his chest with a banner between his hands that says open house.  PD stops traffic, he creates a traffic jam literally.  I have to notify the police when I use PD (short for "Pretty Darn Quick") it does not take over 20 minute to set up.  The use of PD does require a permit and it is worth every penny.  Can you see how to be innovative and create a reason for people to open your your mailings. 

This is just one of the methods I use to get people to respond.  I use open house mailers, I use sold cards too but they aren't like everyone else's and they create anticipation by clients to see what zany thing is next.  I get listings because they know I am going to do everything to sell their home.

Today I received a call from one that got away....they didn't sell.  The agent bought the listing....telling the client his home was worth more than it is in todays market.  They called me and are ready to list using my marketing techniques.

Do you have a unique way to generate business....let us know.

How do you get people to respond your direct mail?

Why are blog so valuable and here to stay.....content, content about anything and everything and I mean everything.  I just started treasure hunting as a hobby, why not somebody has to find it....  I get to go to some great mosquito infested places, I get to think about anything but what I do for a profession. I get to be lost and no one notices, I don' t even hear we should have turned there.  I get to talk to myself without having everyone stare at me.  Besides my treasure hunting is very specific and if I find anything it will be a miracle since the items I am looking for were lost in 1715!  Yes there is a blog on this treasure too.  Yes some of the blogs are useless words, but others are very instrumental.

I started analyzing my blogs, reading dozens of others blogs and found a common thread and some un-common threads.

Blogs have to be useful to someone even if it is just yourself.  If you have a professional blog with personal information, useful advice and communicate to the public data that can be useful to their lives they will come back to see what is new on your blog.

Some blogs are specific for hobbies, cooking, babies, home repair even airplanes.  If you can imagine a subject it is a good chance someone had a blog about the subject.  Now if the content is good or bad is for the reader to decide.  If you like ramblings you can find that too!

Profession service blogs aimed at attracting and creating clients now that is what we have, with side branches from the main blog to fill the needs of specific and more defined specialty area within real estate.

• We have to provide good content, usable information and reasonable responses to questions and/or comments. How you handle abuses to your blog is an individual matter. 
• I have had advertising placed on my blog, which I deleted and blocked the sender for future posts. 
• I have had poor language used a few times which I responded to the sender and asked that it not happen again and so far it hasn't and they have not been back.....poor sports. 
• I have had photos dropped in that were in poor taste, anyway I considered them poor taste for my clients...they had an add for pharmacy products with the photos......I deleted them too!
• I have been spammed by travel companies, other professional that know better in our industry too.
• I have had very good questions which I answered directly and even send a separate email to make sure I provided adequate information to meet their needs.
• I have had some comments that were very helpful and added a real contrast to my posts which I appreciated.

People come back to blogs that offer something they want.  It is no different than going to a website that is slow loading or offers little content.  No traffic, no browser positions and no clients.  The legal issues aside with the amount of copyright materials that are lifted from websites, books, transcripts, magazine articles, newspapers all republished as though the material was from the new author.  This will take care of itself....one way or another.  Usually the culprit does not have the ability to provide the knowledge or service that was presented and the prospect moves on to a truthful, caring professional.

So what is the purpose of my blog or blogs that I read....."content".  Content that is usable and provides what I need when I need it, plain and simple.  I hope to offer half of the great content I find on AR back to my clients and readers because they deserve it.  I try to make sure the information is accurate and worth reading.  That is what I am looking for what are you looking for?

Are you just hitching a ride?

I have seen many things as a Realtor and one of the most surprising is the condition sellers leave homes for the buyers.  I have seen trash bags stacked to the ceiling in the garage.  I know at least they were in bags and in the garage, wrong.....the buyers are trying to move in too!  So where is the staging area for most buyers....yes the garage.  So not only does it take time to move someone else's trash out of the way, the buyer has to pay for it to be hauled away too, in most cases.  I do a pre-close walk through and this has helped eliminate this problem for the most part.  I still get a call once in a while.

Do you wipe down the cupboards and broom sweep clean?  Clean out the refrigerator and wipe down?  Do you clean the stove get the crumbs and the burned on casserole off?  I know buyers really appreciate a home that can be moved into without a two day hose down and cleaning.  Most of us clean anyway....that is true but you are cleaning to get rid of germs not food, mold covered fruit or packages of four year old burgers in the freezer.

Do you vacuum the carpets and wipe down the floors or do you leave them "as is" after the furniture is moved out and day long foot traffic of moving?  Do you ever have the carpets cleaned if you have had pet and spills that kids being kids will do?  Going the extra mile will be a pleasant surprise.....wouldn't you smile if it happened to you?

Do you put all the appliance books on the counter for the stove, microwave and refrigerator? How about the  central vac, alarm system instructions, sprinkler directions, sound sound music tuning guides we have so many appliance guides now and without the book good luck figuring it out!  I have the garage door openers brought to close along with the access keys.  That is one thing I remind the selling agent to do...along with the instruction guides.  I wished I had a dollar for every-time I had a buyer call me concerning some appliance that they can not figure out how to operate and the seller kept the directions.  The seller eventually gets the direction back to the buyer.....why take them?

Do you remove shelves, leave holes where you have had a 100 family photos lining the halls, take things that you forgot to put on the reserved list thinking no one will notice until later?  I have had calls where bushes were removed.  The seller said I planted them!  OK, but they aren't yours anymore.

I have had work benches removed, unscrewed or nails removed and it's gone!  No one said it was not part of the deal...it was clearly attached.  I have had light bulbs removed, yes and at night it is dark in a house without lights.  Why, simple they were "special" low wattage bulbs.  The seller said, "we paid extra for those".  OK, they do not belong to you anymore.

Do you mow the yard or is it a hay field...so the buyer has to move and mow so they make a good impression on their new neighbors!  Think of the impression you made when you left!  How many things do you leave behind that are worn out...and you wanted to replace....lets will it to the buyers.  If it didn't work for you don't give them your junk....it is still junk!  I stopped by to see my buyers and they said, "here want a kid's wagon"?  I don't have any children at home anymore....but maybe Goodwill I suggested, silly me..  They turned it so I could get a better view....THREE wheels, nice.  I have seen where shovels and lawn care products have been discussed and left behind for the new buyers.  Very acceptable if discussed in advance.

If you are thinking of leaving any treasures for the new buyers take a moment and ask them first.   They may want to swap some treasures with you!

I would say that 70% of the sellers leave homes in very good shape that leaves 30% that just don't make the grade. 

You may laugh at some of the ridiculous things people do, but the sellers don't laugh they call the Realtor!

One of the nice touches is to leave the number for your favorite pizza parlor or restaurants in the area, companies to stay away from, your forwarding phone number for questions.  I hope this has given you a smile and a new way of looking at how to leave a home for buyers. 

We all hear commentary everyday concerning the stock market, housing market and job outlook. 

Here are some thoughts that you won't hear.  Hopefully they make sense so you can make the best decision possible for you and your families future.

• Are you happy where you live? 
• Is your job stable?
• Do your children like the school system, do you? 

If you really like your neighborhood and school system why not remodel and stay?  The consideration is will you overprice the home for the neighborhood?  If you are going to overprice the home you must be prepared to stay a long time, since you will not be able to get your money out of your investment.  On the other hand if you are one of the lowest priced homes in the neighborhood this could be an easy decision.

If the answer is no, the decision is made for you.  You will have to move.  So now your consideration is do you move now or wait for the market to change?  This is another one of those crossroad decisions.  Do you want to be settled before fall?  Do you need to have the kids enrolled in another school district?  Is the move being forced because of job transfer or worse termination?  All these factors enter into your considerations.  If you are retiring are you going to stay or move to a warmer climate near grandchildren?  Maybe you have lost your spouse and the property is just to much to keep up. 

If you are moving for a better school systemcan your children commute for a time while you market your home?  Based on current market conditions how aggressively you price your home will impact how long it is on the market.  Marketing will also impact the days on market. 

 If you have lost your job and are selling to save your credit before it is to late....let me congratulate a smart but very gut wrenching decision.  Most people wait to long to list or sell when they have lost employment and can not meet bills.  Taking action early can save your credit.  You can always buy another home with good credit.  Once foreclosed you are in higher interest rates and the dance to find a lender is no waltz!

If you are moving to find work again this is a tough spot but necessary for your family.  This too will mean selling fast and keeping the family together.  Price and marketing will be key issues. 

If you are retiring or downsizing this too requires some unique considerations.  The first decision is can you afford to move?  Your taxes will be at your new purchase price.  You may be paying a much lower average monthly costs, this is something to take a keen look at before making any final decision.  Most likely you have been in your home awhile and accumulated a mass of personal belongings.  Which ones to give up is sometimes a hard decision when they have been passed down through the family or given to you by a loved one.  The lifestyle change is also a huge consideration.  Are you thinking smaller yard?  Are you considering condo?  Are you relocating out of state and require movers and packers....what is the time frame?  If you do not have a time table you may really not want to leave.  When I hear, "oh whenever it happens I'll move", is not a plan.  This is a lack of a plan.  I have learned that nothing happens when we want it too!  So it will happen....at the wrong time.  That is "Murphy's Law" alive and well!

If you have lost your job and will not be able to pay the mortgage face the reality earlier than late!  Most people ruin their credit because they wait to late to face the gut wrenching realization they are going to lose their home.

You probably didn't cause the loss, you have every good intention but the fact that you can not make the mortgage payment, pay the taxes and keep the lights on, feed your family and run the car, pay car insurance all add up to hurting your credit.  Most lenders will work with you if you contact them immediately.  There also may be some assistance to help pay some of your bills.  This may not be what you want to do but the old saying is "you have to do what you have to do" when you are in a spot.  You may never have faced these challenges in your life and think of them as a black mark on your integrity or pride, get over that!  You are not alone! 1.2 million American's right now are facing bankruptcy and the number is climbing. 

You have to act fast to save your credit, rather than have your home repossessed find out your options from you lender first.  Look at refinancing...this is a long shot without a income.  Look at paying interest only....this could be a short term option.  Find out how long you can go the interest only option, if available, all good things come to an end.  Just don't wait until it is to late and call someone like me to help you and expect a miracle.  Career Realtors like myself have seen these situations before and can give you positive council to sell your property, but time is necessary to make the sale happen.  Remember this is when you are the most vulnerable and you will find all kinds of scams to help you....some will let you live in the house and you can make payments to them and if you sign over the deed they will take care of the bank!  Wrong they keep your rent money and make no payments to the bank and you go into foreclosure faster and permanent!  The vultures circle when people are in trouble so make sure you are considering your moves carefully and with people you can trust.

I hope this has helped you understand some of the decision processes and given you some options to think about.

I hear about all these wonderful marketing plans, I even have one, but the truth is if you do not know who is going to buy your home you may not be advertising in the right places!

Think about this and then consider who are the buyers for your home or property.

The buyer for a two story may not be the same buyer for a ranch. 

• Some buyers can not handle the stairs so a two story in not in consideration unless it has a main floor master, then the upper bedrooms are guest rooms.  Most parents do not want to be separated from children in case of emergency like fire, storms and other events.  So this limits them to certain types of homes. 
• Some people want seclusion so a sub-division is probably not for them. 
• Some buyers are looking for low maintenance and minimal lawn care because of a busy lifestyle, a condo may be their thing. 
• Some buyers want pools or associations features like pools, tennis courts and golf and the list goes on.
• Some have large families and need 4 or 5 bedrooms....others only use bedroom for visitors.

The choices are endless and buyers look for properties in certain publications, search on the Internet with key words and buyers agents do the same thing with the MLS.  Buyers agents review layouts, lifestyle options that meet their client needs. Buyers look for features and benefits the either create or change their current life style for the better. 

So how do you attract buyers to your property? 

• Your photos have to show visually the key feature of your home and property. 
• Your written copy has to be descriptive painting an inviting picture for your target buyer. 
• You advertising has to be placed in publications that the target buyer will use to find his ideal property.  I would not look in at condo ads if I wanted elbow room and property. 
• Internet listings with virtual tours, property descriptions and locations are also key. 

Most high performance agents will offer many listing options to market your property but the agent that will sell your property already knows who is going to buy your property they just don't know their name!

Your best bet to sell is to do the research and make sure you are willing to handle the liability that comes with selling your home or interview agents that have proven backgrounds in marketing properties to sell.  I hope this has given you some insight into selling your property.

Income property can be a blessing or a cursedepending on how you manage your investment.  Tenants are the key to your success.  If you have tenants that pay on time and maintain the property like it is theirs you are blessed or maybe you just know how to interview tenants before the destroy your investment.

Recently I have been showing a potential buyer duplexes and quads.  We have seen everything you can imagine within the same price range.  Some should be condemned others are over crowed and nothing is to code.  We have found that most investors are buying renting and using the life out of the properties.  We did find one gem however.  This was after review 30+ properties on the MLS and looking a ten of them.  The gem was priced in the mid range of the market.

The key....tenants!  The tenants had maintained the inside of their units like it was their home, which it is!  The units were clean, well kept and the rent rolls showed payment history to match the upkeep of the property.  Never to miss an opportunity, I asked the renters how they liked the property and the landlord.  They all commented that whenever they called the landlord always responded and fixed whatever needed fixing. Another key to getting and keeping good tenants.  As buyers of income property we like it hear good comments, the tenants went on to say, we want to stay.  We like it here, music to a buyers ears.

Owners that suck the life out of properties and then discard them are fine if you are paying the discarded price and bring the property back.  The price has to reflect current condition.  It takes more than ROI, but cash flow is king "always" and so are tenants that help you maintain your investment.

Good tenants are not accidents nor is it luck although you can get lucky.  Pre-screening tenants before they are in your property is key.  Occupancy rates will impact cash flow no doubt about it, but poor tenants will impact your cash flow and property!  If you keep your property in clean up to date condition you can create a waiting list.  You can pre-screen your waiting list before a vacancy comes up and be ready to fill your rental with tenants that care as much as you do.  You can even charge a application fee to cover the background check, credit report etc.

I do a cash flow analysis for my investment property clients.  Commercial investments can be tricky if you do not know some of the tax issues and income considerations but tenants can make or break your investment.  I recommend you consult your CPA or accountant before you make an investment.  Cash flow and delayed maintenance issues that were not foreseen at the time of purchase can cripple the potential of an investment.  You can do everything right including inspections and inherit poor tenants and spend months getting your investment profitable again.   Most agents that deal with income properties will be able to identify money pits from real investments with potential.  So make sure your investment is a blessing and not a curse!

Do you know key real estate statistics, the ones that matter?

I took the time to look up some statistics from the National Association of Realtors site (NAR).  For each set of informational data I will give you the source so you can find the rest of the information for yourself if you want more information.  Google under real estate statistics or click this link www.realtor.org/libweb.nsf/pages/fg006

Source: 2005 NAR member profile

1. What are the average hours worked by all Realtors?   46 per week....if this is the average some of us are not working very much!
2. Gross personal income generated based on 40 hours?  $62,300.00 now deduct your expenses and the rest is yours!  This is averaged.
3. Percent of business generated by personal website?  You will like this...0 for 25% of Realtors and only 12% for the next 25% that responded....they rest didn't or wouldn't say....so what's the number?
4. Real estate experience of all Realtors? (median) 9 years.
5. Realtors by gender....heres one I thought would be much different.  46% Male; 54% Female.  I thought the ladies would be higher than 54 %.
6. Formal Education of Realtors: 45% have some college or associates degree; 26% have a Bachelor's degree; 9% High School graduate; 11% Graduate degree or above; Graduate study: 9%

Professional Designations also comes from 2006 NAR member profiles

• CRB  2%    GRI  18%   RAA  *    LTG  *   ALC  *   CRE  *   SIOR  *   E-PRO  8%   CCIM  *
• CIPS  *   CPM  *   GAA  *   RCE  *   CRS  9%   ABR  11%

          * = less than 1%   This give you where emphasis is in the designations by members.

Now here is something you will want to know....if you do not already know this.  What resources do you think buyers and sellers use the most for home searches? 

Source: 2006 NAR Profile of Home Buyers and Sellers

1. Real Estate agent  85%
2. Internet  80%
3. Yard Sign  63%
4. Newspaper  55%
5. Open House 47%
6. Home book/magazine ad  34%
7. Builders  26%
8. Television/Cable  11%
9. Relocation Company  5%
10. Number of weeks searched for a home? 8
11. Number of homes viewed, average?  9
12. Method of purchase?  Agent/Broker  81%
13. Direct from Builder?  10%
14. Direct from previous owner?  5%
15. Definitely would use same agent again?  66%   Does that mean to keep in touch?
16. Actions taken as a direct result of using the Internet site? Drove by/ viewed a home 74%
17. Walked through the home viewed on line?  61%  Does this mean you may want to follow those Internet calls?
18. Found agent used to search/buy home 23%   The buyer found the agent themselves!
19. Owned previous residence 49%
20. Rented an apartment or house 38%
21. Lived with parents, relatives or friends 9%

These number have changed a bit since the 2006 study.  Agents and the Internet are a near tie.  Yard signs has dropped a bit.  This still gives you a clear picture of where to put your dollars to attract buyers.  Did you notice open houses?  What you may not know is less than 3% of the buyers actually buy the house they see at an open house.  There is a huge amount of information on the NAR site take advantage of the link above.  Use the statistics to make your business a success!  Let me know how you were surprised at what you seen in the numbers.

Personal Security....something you can not forget as part of your daily routine.

Unfortunately today's world of handshake transactions is long gone.  You can walk out of your home and your car most likely has air bags in a specific configuration to protect you.  The glass around you is likely to be tempered to minimize injuries and resist breakage at low impact.  Your tires, even pens are designed for safety.  Ink is now available so it won't wash off checks to protect against alterations and identify theft.      

So what are you doing to protect yourself?  Here is a thought...use a schedule that some else knows.  That means you have to plan ahead a bit more and have to write your schedule down too!  If you are single and have no one to leave your schedule with give a copy to your office secretary (if you have no one else).  Tell him or her you will call at the end of the day (if your schedule is that long) and if you do not plan to come back to the office.  This is one security method.  Start a security circle, enlist friends, clients (more leads) to actively use personal security.  They will be more than happy to do this with you and for you.  If you do not call them they are to call you using a security code.  Why a code, simple most agents don't answer their phones if they are showing homes.  Some don't even carry their phone into the showing.  I carry mine, I look at mine when it rings, I have caller ID, if it is important I will excuse myself for a moment and cut my conversation short but my clients at least know I am in demand.  I am not rude but professional.

The code, ring once and hand-up then ring immediately call back, ring once and hang-up again.  Then call back and wait for an answer.  Why this style of code?  Simple if someone calls a wrong number what do they do?  The caller quickly hangs up.  So why not make a code that works for you, even a special ring tone will work, anything that you can use and recognize.

Protect yourself from calls to show homes in remote areas that are sign calls.  These calls can be some of the most dangerous especially for female agents.  Don't be excited that you finally got a call on that place out in no man's land.  Interview the caller, find out who they are, write down their name.  Make a reason to call them back so you can confirm a phone number.   The reason can be simply to adjust your schedule....you have to clear a couple of previous non-showing appointments.  If they do not have a phone numbers have them meet you at the office first.  If they are not willing to meet you at the office, they are not very interested and may be dangerous.   No verifiable name, no phone number and will not meet in a public place........ hummmm!

If you can get another agent to go with you for a remote showing all the better!  Team work for safety is one of the best methods of preventative defenses.   The likelihood of an attach drops by over 90% according to national association of police officials.

Lock your valuable in your trunk during showings also when you stop for food.  Why tempt someone?  The old saying is windows and locks are to keep honest people honest!  I can not imagine losing my cell phone or laptop or other critical tools of my business so I protect them with proper security methods.  I certainly do no want to lose my most valuable asset either....ME!

There are many more ways including pepper spray and other items to protect yourself.  Law enforcement has found that people who do not practice with self protection items usually just make the attacker mad.....and more injuries results.  If you are car-jacked get out as fast and quickly as you can.....for get everything but yourself.  If you are held up give up the whatever the thief wants....and get away a quickly as possible.  Nothing is worth injury or your life.

You can add to your own personal security list.  Many AR people have probably had some of these very things happen to them.   I hope this helps you work safely.  These safety methods can be used for all types of businesses and companies not just real estate.