Category: Management

Resolution Solution

We have been talking about planning lately.  Specifically: planning for business growth in 2012.  I am urging you to keep it short and sweet, define your goals with a razor focus, write them down in bullets, not paragraphs.  I’m also urging you to create action plans for a shorter period:  say,  90 days.   Create your annual bullseye but plan your activity only for the next 3 months.  The short term action plan keeps you focused on the NOW and more open to opportunity as it appears.  It also enables you to take new information into account when you create your next set of action plans in 90 days.

The bulleted list of goals and action plans ought to fit on one page and ought to be in front of you every day.  Treat them like affirmations:  those simple one sentence phrases that, when carefully constructed and consistently considered are proven to create positive personal change.  Attacking 2012 with this kind of laser focus will keep you moving forward and doing what we all want to do:  MORE.

I have a slip of paper I keep tucked away in my keep-sake file.  It is about 4 inches wide and 10 inches tall.  It’s just a scrap, really.  But in 1987 I wrote half a dozen bullets on it.  They were things I wanted to achieve, big things.  I put the paper away and didn’t see it again for a couple of years . . . and you know what?   I had achieved every single thing I’d written.  Getting clear on your bullets, then committing them to writing is powerful.

This is also the time of year that we tend to make ‘resolutions.’  These are promises we make to ourselves to be better or happier or healthier or wealthier.   I don’t really see the need for a separation; I mean:  why can’t a good resolution or two be part of your annual business plan/quarterly action plan?  The last thing any of us wants to do is to stop becoming, whether as human beings or as businesses.

Dr. Maya Bailey, a business coach, has an article on Inman News today about resolutions that’s pretty good.  She lays out 5 steps.  Step 1 is to define what you want and be very specific:  what does success mean to you?  It’s different for different people.  Step 2 is to recognize your blocks and obstacles.  Interesting:  here are some of the most common limiting beliefs she finds in her clients:

  • ‘I don’t have what it takes to succeed in today’s market’
  • ‘I’m not assertive enough to market myself’
  • ‘I’m not educated enough to be successful’
  • ‘Who am I to have abundance and prosperity?’

My own Rx for that kind of thinking is Toastmasters.  Even if you never plan to speak in public, I know of no better way to build a little brass and to understand how much you have to offer.  It’s also a great way to network and expand your CI list.  Hmmm . . . Maybe Toastmasters ought to be on your resolution/business plan bulleted list?

Step 3 is to zero in on the areas you need to develop, which has a lot to do with being honest about your limitations and weak areas.  For example, consider that first limiting belief:  ‘I don’t have what it takes to be successful in today’s market.’  I can’t tell you how many REALTORS I know who feel this way, largely about technology.  They are wonderful salespeople who see the business becoming ever more tech oriented and they feel lost.  Frankly, I don’t get it.  Why would you pine away about your lack of tech understanding when you could hire someone for $15 an hour to handle it for you?  And if that’s too much to pay, why not go to your local college and find an intern, possibly for free?  Oops . . . could this be yet another item on your plan for the year?

4  is to have a timeline and a plan.  We all need to be held accountable and most of us would like to believe we do a good job of that on our own.  That’s where self-imposed deadlines and timelines come in.  Unfortunately many of us discover that we don’t do a good job of holding our own feet to the fire.  This is not awful; it’s not even a failing; it’s just an indication that a good mentor, accountability buddy or coach is needed.  Could that be another resolution/business plan item for 2012?

Step 5 is to visualize the end result.  I’ve urged you to set big, annual, numeric production goals.  But what will your life look like when you achieve them? That’s what you want to visualize.  See yourself behaving as you will behave when you have achieved all the additional production you’ve planned . . . and then start acting as if you’ve already achieved it.

And above all:  find a way to be happy.  It’s a decision, you know.  None of this stuff works at all if you’re not operating from a place of general happiness.  Happiness precedes success.  In fact I’d assert that happiness is a pre-requisite for success.  Plain and simple:  Money loves Happy. Success seeks out happy people.  Get happy and watch all of your plans, your resolutions, your affirmations come to pass.

Planning for 2012

Gather the following information about your 2011 production:

  • Number of new listings taken
  • Number of seller sides closed
  • Number of buyer sides closed
  • Average gross commission per closed side (all closed sides)
  • Average gross commission per closed seller side
  • Average gross commission per closed buyer side
  • Average listing price
  • Average sale price
  • Average sale price as a % of average listing price
  • Average days on market
  • % of sales occurring ‘in-house’

Inquiries generated by category:

  • Web
  • Signs
  • Print
  • Mailing
  • Referral
  • etc.

Set big numeric goals for 2012:

  • Increase production by 25% (or whatever % you choose).  Take new listings and closed sides and multiply each by 125%; if you took 100 listings in 2011, your goal for 2012 is 125 new listings, etc.
  • Look at the mix of closed seller sides to closed buyer sides in 2011.  Your goal should most likely be a 50/50 mix.  If you see it way off from that – say a 70/30 mix of buyer sides to seller sides, you’ll need to set specific short range goals to tackle the problem.
  • Look at your average gross commission per closed side.  How might you increase that?  Go after more expensive property?  Sell more buyer side transactions?  Increase your set fee?

Now, get real.

Truth is, the annual goal is just mile marker set way on down the road.  What’s important is what you’re going to do today, tomorrow and next week.  Think of your annual plan as a road trip across country.  You probably know where you want to end up and may even know some of the places you want to visit on the way, but by and large, you’ll invent your route as you go, responding to current conditions and opportunities in the moment.  As long as you’re moving toward your final destination, you’re on track.  So, for this exercise, consider the first quarter of 2012, January – March.  What are you going to do in the coming 90 days to move you closer to that distant mile marker?

  • If you took 24 listings in this period in 2011 and are planning for a 25% increase, what are you going to do to ensure you get 30 by the end of the quarter?
  • If you closed 28 sides between January and March of 2011, what are you going to do NOW to ensure you will close 35 by March 31?
  • If you are getting, on average, 95% of list price as a sale price, what are you going to do to ensure that you’ll increase that to , say, 97%?
  • If your average days on market is 110, what are you going to do to reduce that to,say, 100?
    • (By the way, the previous two items usually have most to do with how you price property at the time of listing)
  • Look at your percentage of in-house closed sides.  What can you do to increase that?  Is it time to polish up your seller participation dialogues?  Are you ready to rethink the notion that every listing must go into the MLS?

Compare what you did in 2010 against the MLS

  • If your average sale price as a percentage of list price is 95%, what is it for the MLS?  You’ll most likely discover that their number is worse than yours – say, 93% compared to your 95%.  If this is so, how might you use this information in marketing and in seller consultations?
  • If your average days on market is 110, but the MLS is 123, do you have something worth crowing about?

And then consider the number of inquiries you generated by category:

  • How many ended up as contactable entries in the Buyer Pool Book?
  • How many converted to listings or sales?
  • What can you do (over and above taking more listings) to increase the number of inquiries?
  • What can you do to improve your conversion rates of inquiries to clients?

By the way, the Inquiry category is very important AND many will be unable to examine results and set goals for inquiries because they don’t keep track of them, or do so inadequately.  If this is YOU, make one of your first goals for 2012 to become obsessive about leads tracking, inquiry capture and conversion.  Next year, when you do this exercise, you want to have the numbers at your fingertips.

Please, o please:  do not create a ten page carefully crafted Business Plan for the year unless you want to go to the bank to borrow money.  Other than in that specific instance, those plans usually end up as dead documents in a drawer that are never  seen again.  Instead, put your annual and quarterly goals in a bulleted format – preferably on one page – that you can get to quickly.  Your goals and action plans for the immediate future should function almost as a set of affirmations that you look at every day.  Reminding yourself constantly that you need to have 30 new listings by the end of March is a giant step toward making it happen.

 

The ABC Tool

There is a new piece of agent tech out that intrigues me.  It’s call the ABC Tool and it is an online client and transaction management tool.  It puts the agent at the center of the myriad of details that must be coordinated and provides an efficient platform for agents and their clients to communicate and move together toward a successful closing.

The tool is in BETA testing right now and pricing has not been established.  However, you can go to the website and sign up for a 30 day free account.  I’ve asked a couple of Help-U-Sell brokers to take a look and tell me what they think and will report back, but if you’re curious, take a look:

www.TheAbcTool.com

I stumbled on this in an Inman News article and was struck by the comments by ABC’s founder, Michele Serro.  Here’s how she describes the homebuying experience:

  • Homebuyers range from wanting low- to high-touch experiences with their agents. Some homebuyers want complete autonomy, choosing to look at listings and homes by themselves; others want an agent to merely function as a sounding board; while yet others expect high-touch service from their agent, seeking accompaniment to showings and someone to run the deal.
  • The real estate agent is the sun around which all other planets, and parties, revolve. As a central figure in the homebuying scenario, the agent needs are currently underserved by the market as well — from generating leads, prequalifying homebuyers, managing documents, and managing the expectations of clients.
  • The process feels opaque, decentralized and out of control to most homebuyers. Homebuyers are seeking a single, centralized resource and repository to increase transparency around the process and communications between all stakeholders involved.
  • Homebuyers seek validation and support throughout the process. Many homebuyers turn to friends and family members to provide both administrative and emotional support throughout the process, or are advised by other trusted service providers in the process.
  • Document collection, management and sharing is a serious bottleneck. For all service providers involved in the buying or selling experience, document management is a critical, and often painful, part of the process. Missed milestones (often due to missed deadlines in document filing) can have lasting domino effects, ultimately impacting a homebuyer’s closing date.
  • The complexity of buying a home today is exponentially greater than it was a few years ago. The housing market crash has resulted in fewer leads for agents, increased rigor, due diligence and regulation around financials, and extended timelines for those looking to buy.

And here is how she describes the ABC Tool:

Our tools and features coordinate agents and homebuyers seamlessly together, recasting the agents as the indispensable experts they are and supporting them in operating efficiently in an increasingly inefficient business environment and broken system.

(ABC Tool) takes care of much of the administration, so agents can focus on sharing their expertise of a certain area and putting best practices to good use — rather than filling out paperwork.

We also coordinate all the other players, like attorneys, inspectors and even lenders, and clearly spell out their roles and responsibilities along the way.

At first glance, I think this might be something that will improve efficiency, minimize errors and missed items, and above all, build agent value in the transaction process.  Check it out and please, report back!

 

 

Intern-alization

Tight budgets mean lean operations.

Is that Haiku?  Or something Confucius said?

Hardly; it’s just reality.  In a difficult market, you do lots of cutting.  You cut marketing, you cut facility expense, you cut personnel and you get to work covering as much as you can by yourself.

Now there is light at the end of the tunnel  and we know we have to gear back up to meet the oncoming demand . . . but the dollars are still tight.  How do you start getting done what you used to hire people to do?

Here’s an idea for you:  why not investigate bringing in a college intern to handle a few focused tasks?  You know:  the ones that are keeping you tethered to a desk and not out in the field meeting the people who will drive your business through the upturn.

Many colleges and universities have internship programs where pre and post graduate students, usually in their final semesters before graduation, take on tasks in the real world to apply some of what they’ve learned and gain experience.  Often the cost to an employer is minimal and sometimes free.

In most cases, the task(s) must be well defined with a beginning and an end and ‘grunt’ work – things like running errands and photocopying – is frowned upon.  But think about what an intern might be able to do for you:

  • Optimize your web presence.  You have a magnificent tool in the Help-U-Sell website.  It blows the pants off anything else that’s out there.  But it requires your attention.  It must be optimized, localized, keyword-ized and continually refreshed to be most effective.  Plus there’s everything else you do to be visible online:  Facebook, Twitter, LinkedIn, Zillow, Trulia, blogs and on and on.  Who better to take this task on than a 21 year old marketing major who’s grown up at a computer?
  • Do marketplace intelligence.  Our markets are turning rapidly now.  Everything’s shifting.  It’s a great time to do a thorough analysis of your market to determine the opportunities that are emerging.  Where are the high turnover areas?  What properties are most in need of a short sale expert?  Who’s facing foreclosure?  What’s happening to the demographics?  Gathering this valuable information is something none of us have time for, but a motivated business major could handle with ease.
  • Competitor research.  Who’s doing what?  What programs are working and which ones are not?  What are the numbers?  Marketshare? Price ranges? Again, a business or marketing major would be ideal for this.

And that’s just three.

So how do you find programs in your area?  The same way you find anything else:  Google.  Try search strings like:  ‘Birmingham college university internship’ or ‘internship opportunities in Orlando’ or ‘Boise State intern program’ You’ll be amazed at how many programs you will uncover.  Learn all that you can;  then, before you go through the proper channels, fill out all the paperwork, submit and wait, wait, wait . . .

Call the business/marketing/IT schools directly.  Ask for the person in charge of intern programs for that department.  Pick their brain a bit:  what does a good intern opportunity look like?  How have interns helped small business owners like yourself in the past?  Offer to meet with this key person and present to students.  Becoming involved will not only increase your chances of success with an internship, but will expand you circle of contacts.  Once you’ve put a personal spin on it, then go back and do the paperwork.

We were talking about this on the Roundtable Call yesterday and Ron McCoy mentioned that he frequently teaches real estate pre-licensing classes at his local college.  He said that he – and everyone else who teaches these courses – is always looking for brokers to come in and present their programs to the class.  What a wonderful opportunity for Help-U-Sell!  And, if you’re looking for an intern, maybe someone in that class will help you navigate the academic bureaucracy to get it done quickly.

If you run with this idea, I want to know how you do.  Tell me how you found your program, what you had to do to get it started, what was difficult and what worked well.  Good Luck!

Top Producers at the Help-U-Sell Success Summit

Four of our top five Brokers were in attendance at the Summit, Nov 14-16 in Anaheim this year.  I asked Jack Bailey to facilitate a panel discussion around what they’re doing to grow their businesses in this market.  Here are:

  • Patrick Wood – Help-U-Sell Prestige Properties – Chino Hills, CA
  • Richard Cricchio – Help-U-Sell Honolulu Properties – Honolulu, HI
  • Karen Detwiler – Help-U-Sell Detwiler Realty – Carlisle, PA
  • John Powell – Help-U-Sell Galleria Realty – Tucson, AZ

Because of time limitations on YouTube, there are four videos here, ranging in length from 12 – 14 minutes.  Sound improves about half way through the first segment, when we miked the group.

Part 1

Part 2

Part 3

Part 4

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