Looking Back, Looking Forward

2009 was a pivotal year for Help-U-Sell.  New ownership took over in the week between Christmas and New Years, 2008.  The company, with assets and information in Southern California and Colorado was boxed up and shipped to its new home in Sarasota, Florida.  Simultaneously, a search for competent, credible leadership was undertaken;  and it didn’t take long to identify John Powell as the logical choice.

John had been a very successful Help-U-Sell franchisee in the 90’s, sold that office and went on to be a successful Regional Director.  When Regions were abolished in 2008, John did the one thing he knew he could do to generate an income:  he opened another Help-U-Sell office in his home town, Tucson.  Now, that was a gutsy move.  In the middle of the worst real estate market in history, John opens a Help-U-Sell office.  Yet, from a dead zero start, he and his wife, Maria, took that office into the black in five months.  I work for John now and he is the ultimate antidote for ‘It-can’t-be-done-itis.’  Anytime I hear that the market is impossible or that nobody can make it in this mess, all I have to do is point to him. 

About 450 of the nearly 800 existing Help-U-Sell franchises were assumed by the new owner, Infinium Realty Group.  Many of these franchisees were alive and well and fighting their way through the tough market.   Some were hanging on by their toenails.  A few were just waiting for someone to close their eyes and pull the sheet up over their heads.  Everyone had scaled back, cutting expenses wherever they could.  Job one for the new company was to simply sift through the assumed franchises to see who was still up and open, who needed immediate help and who had the heart and determination to continue. 

At the same time, the new team started looking for ways to improve the brand offering, to kick it up a notch and to create tools and alliances that would mean more business for the franchisees.  Immediately, Robert Stevens was given the mandate he’d been seeking for a year:  to build a killer website for the company from the ground up, paying careful attention to all the tools and tricks that make a website attractive to search engines.  Finally, we were going to own our technology, we weren’t going to be at the mercy of an outside vendor.   The new Corporate site went live mid-year and since then, development has shifted to the creation of companion websites for each of our franchise offices.  These broker sites will start to come online after the first of the year. 

John Powell began talking with Bank of America about developing a real alliance — one that would benefit both organizations.   The result is a concierge service that preserves leads that come to Bank of America via Help-U-Sell websites and returns them to the originating party.  The new relationship empowers B of A Mortgage Loan Officers to negotiate space rental agreements with Help-U-Sell brokers and to participate in co-branded marketing.  Five months into it, I have been impressed with how many positive stories I’ve heard about the relationship and how few negative.  Personally, I’ve been wowed by the depth of knowledge and experience of the MLOs I’ve met. 

Maurine Grisso was tapped to deliver quality training on topics of immediate interest every Thursday and to build valuable content for the rally series that kicked of mid year.  Her up-to-date, real-world experience helped everyone do a better job of navigating short sales and working with REOs as well as simply moving forward in a very tough market.  Ron McCoy and Jack Bailey worked with her to develop a coaching program for Help-U-Sell brokers that will become the backbone of how the Brand and the brokers work together to maximize production and profit. 

I came on in June after a call from John and a meeting in Sarasota with him and Infinium principal, Ron Westman.  It was a no-brainer for me.  Though I’d worked for most of the national franchisors at one time or another, usually as a contractor on a variety of projects, Help-U-Sell was the one company that captured my heart.  It was love at first sight between the Help-U-Sell business model and myself when we spotted each other across the room at Help-U-Sell University in 2002.  The three years I spent after leaving in 2005 were laced with a longing for the sense of mission and the determination we all have in this company.  When I determined that the new leadership was committed to doing what was necessary to breathe new life into the company, to bring it through the difficult market and to make it thrive going forward, my decision was easy:  YES

I believe the best yardstick we have for measuring the health of the Help-U-Sell family in 2009 is the series of rallies we held around the country:  24 of them and counting.  We hit many locations twice over the past six months and that’s where I get my perspective.   Every one of those first rallies began the same:  angry and disengaged brokers coming into the room with arms crossed across their chests, looking as much for a reason not to believe as for a reason to move forward.  Usually, half an hour into John’s corporate update, people would begin to relax.  An hour later they were smiling and by the end of the meetings they were laughing, sharing and rediscovering the energy any meeting with Help-U-Sell members creates.  The second round was completely different.  People showed up excited. They were anxious to reconnect with each other and to plot and scheme their next incursions into the marketplace of 2009.  Seeing that shift told me we were on the right track, that we were going to come through this stronger and better than we’d ever been.

Today we’re looking forward to 2010 and making plans to capitalize on the improving market.  We recently added Tami Patzer to the team as Communication Resource.  She’s already done and excellent job communicating who we are and what we’re doing in a variety of outlets, notably our monthly newsletter, Help-U-Sell Connect.  She’s putting the finishing touches on the December edition today.  I’m planning and calendaring the next round of rallies.  We want these to be bigger and better attended than the ’09 offering, so expect to be nagged about going to the one closest to you. After all, I know of nothing better for getting your attitude and energy up than getting together with other members of the Help-U-Sell family.    

John has a number of other initiatives boiling in the cauldron right now and I expect we’ll have some remarkable news when rally time rolls around.  You will certainly be hearing more about the new broker websites coming online and how to easily tweak them to produce the largest number of leads for your office.  

Our team in the field is a scrappy bunch.  These are the fighters, the ones who don’t go down often; and on the rare occasions they do fall, they’re quick to get up and get at it again.  It’s an honor and a privilege to work with this group as we march toward the coming year.  I believe, if 2009 was pivotal for Help-U-Sell, 2010 will be remarkable.  To quote that renowned American poet and philosopher, Huey Lewis: 

‘The future’s so bright I gotta wear shades!’   

It’s Time to Start Marketing Again

I can’t say it any more clearly than that.  And I’m only echoing what Jack Bailey said in his video interview a couple of days ago.

We’re going to have a Spring Selling Season this year, but — thanks to the Tax Credit and a number of other factors — it’s going to come early.  To be in the game you’ve got to have listings and the time to get them is RIGHT NOW!

The new Tax Credit program requires buyers to be under contract to purchase by April 30 and for the transaction to close by June 30.*    If average time on market for a listing in your area is 90 days, then these properties will probably go under contract in January.  That’s just a couple of weeks away. 

Many of us have cut back on nearly everything.  It’s OK:  the tough market of ’08 and ’09 dictated some serious changes.  But since the Fall, the market has been stirring — and it’s not just first timers attracted by the $8,000 Tax Credit that came to an end in November (though they became a much bigger factor than ever before).  Now it seems everybody — even sellers with equity — are starting to dip their toes in the market again, intrigued by the possibility of moving up for less.  It’s time to give the market engine a little gas:  kick it into gear with some marketing.

Certainly, the place to start is with past customers and clients.  They need to know about the new Tax Credit program and you can probably let them know inexpensively:  through phone calls and personal notes. 

Obviously, it’s time to really put some energy into your FSBO and Expired campaigns.  Again, this does not have to be expensive.

The place to spend a little money is in targeted marketing.  Start by breaking your marketplace down to the smallest geographical areas you can — usually that’s Carrier Routes, and you can use Melissa Data to get the numbers.  Look at each small segment:  where is the turnover the greatest?  Go one step further:  which Carrier Routes include homes appropriate for first time buyers?  Listings in these areas may produce two parties motivated by the Tax Credit:  the first time buyer and the move up seller. 

Now choose an approach.  Like Jack Bailey, I’m a believer in post cards.  They are relatively inexpensive and deliver the message even when they are not carefully read.  If you choose this method, don’t shoot your entire budget on the first mailing.  Hold some funds in reserve so that you can go back to the same households with another mailing in 3 – 4 weeks and another after that. 

And remember:  you can do target marketing even without spending money on marketing pieces.  You can spend time and energy instead.  You can pick up the phone and make targeted calls — ordinary brokers call them ‘cold calls’ — into the areas where you want your listings to be.  Trust me:  the first one you make will be the hardest and by the time you complete call number 3 it will be easy. 

And, oh by the way:  if the phone is not exactly your thing, there’s nothing wrong with going door to door handing out a flyer with information about the Tax Credit on one side and information about you on the other! 

Bottom line:  this is not the December to take off and be reflective.  I know:  that’s what we real estate folk usually do.  This year, let’s leave that up to our competitors.  This year, let’s get busy like never before.  Let’s get our signs out in the marketplace so we’re ready for the big kick-off in January.  This is going to be the Super Bowl of real estate.

*Qualified members of the military, foreign service and intelligence communities receive a one year extension on the April/June deadlines.  Go HERE to learn more. 

whitehouse

I’m Concerned: FHA . . .

12/10:  Matt Kellam, Help-U-Sell Keystone Realty, Chambersburg, PA, was on our Broker Roundtable teleconference yesterday and raised a red flag of warning.  He said changes in FHA guidelines were in the works and they could greatly impact the number of borrowers who might qualify for FHA insured mortgages. 

I spent this afternoon trying to track down the truth.  I Googled everything and talked at length with a Bank of America MLO — a fellow who really knows his stuff — and didn’t learn anything much beyond new Condominium guidelines (which will basically be favorable to our industry) and something called  ‘The FHA Taxpayer Protection Act of 2009’ that’s stuck in Committee in the House. 

But then our Communication Resource, Tami Patzer, sent me a copy of Secretary Shaun Donovan’s remarks to the Senate last week.  You can read the full piece by clicking here, but this is the section that concerns me the most:

. . . . we are committed to a series of additional steps to increase the quality of our business going forward.
 
An initial measure is to reduce the maximum permissible seller concession from its current 6 percent level to 3 percent, which is in line with industry norms, and we will continue to consider additional reductions.  The current level exposes the FHA to excess risk by creating incentives to inflate appraised value.

Secondly, to protect the fund from the riskiest borrowers, we will for the time being also raise the minimum FICO score for new FHA borrowers.

We are currently analyzing what this floor should be, including the relationship between FICO scores and downpayments to determine whether we should increase FICO minimums in combination with changes to other underwriting criteria for lower downpayment loans.

Third, we have made the decision to exercise our authority to increase the up-front cash that a borrower has to bring to the table in an FHA-backed loan – to make sure that FHA borrowers have more “skin in the game” and a stronger equity position in their loans.  There are several ways to accomplish this, and so we are currently analyzing various options to determine which is the most effective and consistent with our mission.
 
Finally, we are examining our mortgage insurance premium structure to determine whether an increase is needed and, if so, whether it should be the up-front premium, the annual premium or both. Our current up-front premium of 1.75 percent is below the statutory cap of 3 percent, while the annual premium is currently at the statutory maximum.  To protect against future uncertainty in market conditions, we are requesting authority from Congress to raise annual premiums, as this is one of the most effective means of raising capital for the fund with the least impact per borrower.

In the opening section, he says they are ‘committed to’ the following changes.  I normally take that to mean they are considering them.  However, as you read further, it seems clear that these changes have already been mandated.  

If this, in fact, is the case, the impact on FHA buyers — wh0 are fueling the real estate recovery — will be big.  It saddens me to see this on the heels of the extension of the home buyer tax credit and I can only hope that the language is not what it seems.  I will continue to search for confirmation (and hope for the opposite) — and if you hear anything, please let me know.

Update:  12/10 – Inman News says the changes will be announced to lenders in January and likely won’t go into effect for 60 days.  Usually, new guidelines don’t affect loans already in process, so it’s likely anything pending before March will fall under the current rules.

Jack Bailey Speaks! (We Listen)

Jack Bailey is a treasure.  A successful Help-U-Sell broker for more than 20 years, Jack has always been happy to share his considerable wisdom, advice and his infectious positive attitude.  I sat down with him the other day to talk about a couple of things:  first, his use of Listingbook, the tool that enables brokers and agents to maintain quality contact with buyers and sellers while giving them access to the best information available today, and then: marketing and what he’s planning for the next several months. 

Listingbook started in Jack’s hometown of Greensboro, North Carolina about 9 years ago and he was onboard with them from the beginning.  Over the last few years, the company has been expanding into Multiple Listing Services across the country.  A list of MLS’s currently featuring Listingbook is at the end of this post. 

Click Here to watch Jack’s interview about Listingbook

From all indications, it looks like our Spring selling season may be back next year, and it may arrive early.  Jack shares his thoughts on this and has some advice on what to do TODAY to be ready for it.

Click Here to watch Jack’s interview about Marketing

MLS’s currently featuring Listingbook:

  • Triad (Greensboro, Winston Salem, High Point)
  • MiRealSource – E. Detroit (Monroe, Down River, Jackson, Lenawee)
  • Pinellas & West Pasco (St Pete, Clearwater, Pt Rich)
  • Fort Myers FL
  • SoCal MLS (Orange Co, SF Valley, S Cal))
  • RMLS Minnesota (Minneapolis-St. P)
  • MRED (Chicago Land))
  • Cape Coral (add-on to Fort Myers)
  • MLSLI (Long Island)
  • CMLS Connecticutt
  • NE Florida MLS (Jacksonville)
  • MRMLS (Gr South Bay, Pasadena to Pomona)
  • Westchester-Putnam NY
  • CLAW   (West LA, Beverly Hills)
  • Sandicor (San Diego)
  • MLSPIN (Boston & most of Mass)
  • Bonita-Estero FL (Add-on to Ft. M)
  • RMLS Florida (Boca-West Palm)
  • Naples (Add-on to Bonita)
  • Intermountain MLS (Boise, Idaho)
  • MRIS (Wash DC, VA, MD)
  • MARIS (Metro St. Louis)
  • N. Nevada Reg MLS –  (Greater Reno)
  • MLS Listings, Inc (N Cal, San Jose)

 Listingbook is coming soon to:

  • Monmouth NJ
  • ARMLS (Metro Phoenix)
  • Miami & The Beaches (addon to RMLS FL)
  • Western Mountain Resort Alliance (13 ski asns UT,CO,NV,WY,ID,CAN)
  • GTAR (Greater Tampa)
  • i-Tech MLS (Glendale, Pasadena CA)
  • Staten Island
  • Madison, WI

Learn more about Listingbook here:  LBk

Expectations

You get what you expect.

It’s one of the Great Truths that’s so true that it has become a cliche.  Think about it:  a few years back an Australian woman made millions of dollars producing a DVD and Book that said, essentially, the same thing.  Remember ‘The Secret?’  Of course, that phenomenon went into manifesting your expectations through affirmations and visualization. 

We REALTOR-types have been talking about expectations and actually using them for . . . well, forever.  We set goals, we have minimum standards and so on.   But there’s something I noticed in recent years —  during the downturn — when finding and converting business became so difficult.  Many of us adjusted our expectations down.

That’s ok.  Given the market at the time, it made sense. You have to be realistic.

But today, by all accounts, there is a big shift beginning.  Buyers are waking up and becoming so active that in places inventory is in short supply.  Sellers with equity, motivated by the prospect of getting a much nicer home for a good price are starting to show up.  Put it all together and shake it up . . . and it looks like a good market could be just a few weeks or months away. 

It’s time to re-examine your expectations, for yourself, your company and your staff.  Maybe you’ve been grateful to be closing 1 or 2 deals a month.  Maybe you’ve been ok with that agent who only manages to get one every 5 or 6 weeks.  Put that past reality on hold for a minute and think:  what would be acceptable in a reasonably good market?  Do you expect to do 10 or 20 sides a month?  More?  And your staff:  is it time to expect more from them?  Is it time to decide that a minimum of two transactions per buyer agent per month is acceptable? 

The point is this:  you can’t expect to get more than you expect to get.  Don’t let your down market expectations limit what you  get as the market improves.

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