Flashback Friday: Charging Less, Making More

The ability to go into the marketplace with a financially attractive offer for consumers AND walk away from the transaction with more dollars than your more traditional counterparts is at the heart of Help-U-Sell’s appeal to brokers.

Think like an ordinary broker for a moment:

  • The success of the office is built on one thing:  your ability to attract and retain productive agents.
  • Your primary tool in accomplishing this is commission split — you know to be successful you need agents and to get them, you’ll need to pay well.
  • Unfortunately, the health of your bottom line is dependent on how many commission dollars you retain after splitting with your agents.

Put all of that in a hat and shake it up and you’ve got  . . . a mess!  Your formula for success is at war with itself! No wonder ordinary real estate offices suffer from embarrassingly low profitability if they make a profit at all (despite the fact that consumers think they’re paid way too much!).

Help-U-Sell takes dynamite to all of that nonsense.  First thing we do is demystify the listing process.  We toss out the notion that personality is what sellers buy when they list their property for sale.  Bunk! we say.  Listing is a logical thing.  If you present a system with a track record of success for a fee that is reasonable, most people jump at it.  Instead of two hour marathons where traditional agents warble on about how wonderful they are, listing presentations become simple, short and matter-of-fact:  here’s what we do, here’s what you do and this is what it costs.  Listing is so easy in Help-U-Sell that, well . . . even a Broker could do it.  That’s why we take the listing side of the business out of the agents’ hands.

We believe the listing side of the business belongs to the company, and the broker or an assistant (that’s different than an agent) takes all listings.  The agent’s role is on the buyer side, where we can afford to split commissions.  But, since we create all the leads for our buyer agents through our large number of listings and the power of our well-conceived marketing, we don’t have to give away the farm to get and keep salespeople.  We’re not asking them to call on FSBOS or Expireds, to knock doors or make cold calls to find listings.  We’re not asking them to master a slick listing presentation or memorize responses to two dozen common seller objections.  We just want them to take the prospects we’ve created and find them a property.   Good agents thrive at Help-U-Sell.

Back to the listing side;  here’s how the dollars break down:

Here’s where the ‘yeah-buts’ start to echo from the mouths of ordinary agents:

Yeah-but, with no listing agent the seller is getting less than full service!

Says who?  Full service is getting the property sold for the greatest walk-away dollars in the right time frame — and we do that every day.

Yeah-but, you get what you pay for!  When you list with me I’m going to actively market your property until it’s sold!

Um, let’s see . . . ‘actively market‘ . . . I guess that means put a sign in yard and a listing in the MLS, which then syndicates to a couple dozen Internet sites, right?  In my experience that’s what ordinary agents do when they get a listing.  In my Help-U-Sell office, we have a comprehensive marketing plan (that includes all of that and much more), orchestrated, monitored and constantly improved by . . . ME.  It’s not just a bunch of agents running around willy-nilly, making it up as they go along on every listing they take.

I could go on with the ‘yeah-buts,‘ but we try to keep these posts to a ten minute read or less.

We are a very proud group, and rightfully so.  We’ve taken the fluff and snake oil out of selling real estate and converted the process to logical systems that get results.  We’ve done it in a way that saves consumers thousands of dollars and makes our brokers a nice profit.  Who could ask for anything more?

How Long Must I Wait to Buy After a Short Sale?

Homeowners are breathing a little easier today.  Point your ear out your front door and listen: you may hear a sigh of relief!  Prices are rising – like crazy in some places – and fewer homeowners are upside down on their mortgages.  Today’s real estate market is no longer about ‘how much am I losing?’ but rather about ‘how much equity am I building?’  Almost anyone who bought a home in the past year is probably grinning from ear to ear!

But what about those who didn’t make it through the downturn?  What about those who lost their equity, found themselves upside down and, suddenly, needing to sell?  They pretty much had four options:

  • Move and let the  home go to Foreclosure
  • Negotiate a Short Sale with the lender
  • Forget about selling and rent the house
  • Sell and write a check at closing to the lender for the shortfall

Thankfully, not too many people opted for that last option – though it did happen in situations where the shortfall was small and the need to sell great.  And those who successfully rented their property are probably enjoying a nice increase in value now.  People who chose Short Sale or went to Foreclosure, however, have the same question:  how long before I can buy again?

First, understand that the answer is a moving target:  it has shifted over time and probably will continue to shift.  There are also no hard and fast answers as different lenders have different policies and some lenders will bend a bit if interest rates and discount points are high enough.  However, today, the following is typical:

To get a Conventional Loan after a Short Sale:

  • Two-year wait with a 20 percent down payment
  • Four-year wait with a 10 percent down payment
  • Seven-year wait with less than 10 percent down payment
  • Conventional lenders usually look for a FICO score in the 680 range after a Short Sale

To get an FHA Loan after a Short Sale:

  • Three-year waiting period from the Short Sale closing date
  • Home buyers can get a mortgage with as little as 3.5 percent down

Eligible Veterans can get a VA Loan after a Short Sale:

  • Two -year wait from the Short Sale closing date
  • Can still get in with no money down

There is one snafu that seems to be occurring regularly as former Short Sale-rs apply for new mortgages.  Sometimes the Short Sale lender reports the sale incorrectly to the credit bureaus as a Foreclosure.  This can be a big problem as most borrowers with a Foreclosure on their credit reports must wait seven years before becoming eligible for Conventional Mortgages.

If your last sale was a Short Sale, it is important to keep all of your paperwork from that transaction handy in case you have to prove that it wasn’t a Foreclosure.  It’s also not a bad idea to access your credit report before you begin the buying process to see how the Short Sale was reported.

August 19 Update:  FHA just announced new guidelines that will enable some borrowers with a short sale on their credit history to get back into the market in as little as 12 months.  The new rule requires documentation of an economic event precipitating the short sale – something like loss of a job – and demonstration of significant recovery from the event, i.e. 12 months of clean credit history.   Those with a foreclosure (instead of a short sale) must wait 3 years before obtaining and FHA insured mortgage.  

Flashback Friday: Equity In The Name

(This is from early 2010, though I changed a date reference in the 5th paragraph because, hey!  What was true then is just as true today!  Consumers seek us out because our offer is superior, because they will get great service and save thousands.  They stick with us because we are good people and we get the job done.  In the ordinary real estate world, where everybody pretty much has the same consumer offer, the only differentiator is personality:  who is most likable and magnetic.  That’s fine, but if you build a business on that you don’t have much to sell when it’s time to move on.) 

New Help-U-Sell brokers sometimes stew way too much about their DBA.  They want to come up with the perfect name, the one that expresses who they are;  the one that will kick their marketing effectiveness up another notch.  Is Help-U-Sell Superior Homes better than Help-U-Sell Apex Properties?

Truth is:  the consumer could not care less.

And that’s one of the fundamental strengths of the Help-U-Sell system.  Think about it:

An ordinary broker, running an ordinary agent-oriented office, is building . . . very little, really.  His business is driven by the personalities of his agents and the relationships they develop.  There is no unique consumer offering that draws people to the company.

In 2013, very few people call ABC Realty and say, ‘Hey, ABC, come list my house.’  No.  They call up Sally who happens to work at ABC and say, ‘Hey, Sally, come list my house.’  And you know what?  When Sally goes down the street to go to work for XYZ, they’ll call her there too.

So when that ordinary broker decides it’s time to cash in and move on, when he attempts to employ his Exit Strategy, he finds he has little to sell.  The value of his company is a gamble at best.  All a buyer gets is the chance to keep the agents who have done the business and the chance to keep the listings and clientele they have amassed.  And it’s a fair bet that at least some of those agents will not like the change and take the opportunity to move on down the line.

It’s so different at Help-U-Sell.   We have a business model and a consumer offering that people seek out.  Every day, people call Help-U-Sell and say, ‘Come list my house.’   When the Help-U-Sell broker decides it’s time to move on, he has a business to sell that can continue to function after he is gone.  The buyer is getting an established enterprise and the transition from one owner to the other will likely be invisible to the consumer.  The DBA becomes irrelevant:  it’s Help-U-Sell that matters.

But, ‘Oh!’ you say, ‘Real Estate has always been a business built on personal relationships!  People want to work with . . . people, not systems!’

That’s absolutely true.  But most people are also interested in saving money and they will often investigate their alternatives before even working with a pal.  That’s when they discover that we’re people too! Yup, underneath the neat system that gets results and saves money is a group of really good, competent, likable people.

That’s why so many of our established brokers enjoy great repeat and referral business.  Oh, the savings remains a driving factor, but it’s the personal relationship that turns satisfied customers into raving fans and keeps them coming back again and again.

I’m not seriously suggesting this, but I really don’t think it would make one whit of difference if you chose ‘Umm’ as your DBA:  Help-U-Sell Umm Realty.  Or maybe Help-U-Sell Acme, Ace or ABBA.  What matters is that first part, the part that consumers recognize as leading to savings.

How Help-U-Sell Works, Plain & Simple

Real estate sales commissions are high because they are designed to compensate four people: the listing agent, the listing agent’s broker – the selling agent (the one who brings in the buyer) and the selling agent’s broker.

Most real estate commissions are a percentage  of the sales price that you pay whether outside brokers and agents are involved or not. Because they are a percentage, the more expensive your home, the more you will pay.

At Help-U-Sell, we ‘un-bundle’ commissions and services. Our home sellers may choose to offer their property for sale through outside brokers and agents – or not. They may choose to go into the local MLS – or not.

Regardless which services the home sellers selects at the time of listing, however, the final fee is based on how the home actually sells. If there is no outside office or agent involved in the transaction, all the seller pays is the Help-U-Sell Set Fee.

That’s another difference: instead of a percentage based commission, our sellers pay a low Set Fee to market their homes through Help-U-Sell. And while there are minor variations based on specific market niches, generally the seller with the $400,000 home who lists with Help-U-Sell will pay the same Set Fee as the seller with the $350,000 home.

We are a full service real estate company. We do what ordinary brokers do and more, including:

  • Consulting with you on pre-sale preparation and pricing
  • Calculating your estimated net proceeds
  • Marketing you home using the most up-to-date and effective methods
  • Helping you evaluate every offer that is received
  • Looking out for your best interest through the transaction
  • Communicating what’s going on every step of the way
  • Handling problems as they arise
  • Coordinating inspections and transaction deadlines
  • Reviewing closing documents with you

Plus – we will save you thousands over what you’d pay most ordinary real estate brokers!

Flashback Friday: U R Reality TV

(Another oldie-moldie, dusted off from the distant past of January, 2010. I keep thinking about that editor, the one that keeps the action interesting . . . an important job!)

I got home last night with a handful of things to do.  Television is rarely a distraction for me (though I do admit a minor addiction to Survivor and old black and white movies), but last night, dinner was ready just at 8 and I flipped on the mush-box for no good reason as I ate.  What glimmered on the tube was a whole new season of The Biggest Loser.

I’ve seen bits and pieces before and have been surprised at how noble and human all of that exercising seems to be.  Last night, five minutes after I sat down,  as I shovelled a pasta/chicken dish and Brussels sprouts into my mouth, I began to blubber like a little girl.  I finished dinner and reached for a Kleenex.  Next thing I knew it was two hours later and my eyes were all red and puffy.  Is that stupid or what?

Not really.  It’s a tribute to the power of production, direction and editing.  I think it is amazing how this kind of television can elicit such a strong emotional response from viewers.  And it’s accomplished very cleverly.  They do it by being very clear about the objective – which is to get that strong response, get it quickly and sustain it;  by arranging situations where the drama can unfold;  and then by editing, editing, editing until it all comes together in a big sob-fest.

Here’s what I’m thinking today:  Your life is a Reality Show.  There will be a winner at the end of it and at each little challenge that comes along.  Most of us are so busy participating in the action that we ignore the aspects that bring power to the experience.  Put plainly, are you producing, directing and editing your own reality show to get the response you expect and the result you want?

Production occurs at the 30,000 foot level.  It’s where the producer gets clear about what he or she wants to do and maps out a grand schema to get it done.  Producers are rarely involved in the day to day creation of the show:  they define the bulls-eye and delegate the doing to competent others.  If they become involved in the day-t0-day it’s to make the call when decisions are tough.  You are the producer of your show (actually, I’d argue that you share production credits with God, who probably deserves the title, ‘Executive Producer’).  Are you clear about what you’re trying to accomplish?  Have you thought about what you want to see when you flip on the tube to watch the story of your life?  When the tough stuff comes, do you withdraw to 30,000 feet to consult with your Executive Producer about which decision fits best with what you’re trying to accomplish?

Directors craft the look, feel, plot, drama and orchestrate the desired response.  The director tells everyone what to do and how to do it so the producer’s vision can be achieved.  Funny about movies and television:  They almost never put anything on the screen that’s not important in moving the plot forward or creating the desired response.  Are you doing the same?  Are you so clear in your vision that everything that makes it into the movie of your life is relevant? Or are you running in ten directions at once, trying to do a passable job at dozens of things rather than a great job at one or two?   Is there a (self-disciplined) director sitting in the back of your head, guiding you to your goal?

I knew a top producing agent some years ago in Northern California.  He was about 27 and grossed about $300,000 in commissions the previous year (this was 1989 — and that was a lot).  I asked him about getting started so young and if he had to overcome credibility issues at age 22. He said he did for a short period of time.  I asked what he did to overcome that.  ‘I had to make changes in the way I saw myself,’ he answered.  ‘I’d been in college and I was a daring rogue, partying too much and taking stupid risks.  I saw myself as a pirate.  I realized if I wanted to be successful — and I did — I needed people to see me differently.  Nobody wants to buy real estate from a pirate!  So I cleaned up my act.  Got a haircut, started shaving every day and bought some professional looking clothes.  Then I started listening to some good teachers:  Tony Robbins, Tom Hopkins, Danielle Kennedy.’  In essence, what this young man was saying was that the director of his show stepped in and had him adjust his performance.  Smart move.

Finally, there are the editors — who I’d say are the real stars of shows like The Biggest Loser.  They take raw and probably very boring footage and slice it up so that it depicts exactly what the director wants to depict.  It’s like what the cartoon character, Jessica Rabbit said in Who Framed Roger Rabbit:  ‘I’m not really bad — I’m just drawn that way.’  Maybe Survivor’s Russell wasn’t really evil– he was just edited that way.  You have to become your own editor, too.

A couple of years ago I was interviewing people for a job.  One of my candidates was qualified, but she talked more about the trauma of her recent messy divorce than she did about her goals, aspirations, joys and abilities.  Of course I didn’t hire her.  But  it turns out the woman I eventally did hire — bright, energetic, capable — was also embroiled in a nasty divorce.  Nobody had any idea for weeks, and when it finally came out it was nothing she wanted to spend any energy on at work.  Later, after we’d become friends, I asked her about it.

‘You know, I had no idea you were going through a divorce, and certainly not one this messy, when you came in for your interview,’ I said.

‘That’s because I keep that tucked in,’ she replied.  I gave her a questioning look.  ‘I don’t want my life to be about my divorce, so I keep it to myself when I’m doing other things.  You weren’t hiring a soap opera, so I left that part of my life at the kitchen table that day, just as I do every day when I come to work.’

Editors sometimes get Emmys and Oscars . . . and they deserve them.

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