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Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
Brokerage Book - Champions School of RE
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Brokerage Book - Champions School of RE

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  • 1. Do you knowthe qualityschool youare attending?Champions School of Real Estate’s Awards2009 National PaceSetter Award, RealtyU 2000 National Chairman’s Award, RealtyU2008 National PaceSetter Award, RealtyU 2002 WCR Texas Chapter Champions School of Real Estate2007 National Pinnacle Award, RealtyU A liate of the Year e National Pinnacle Award is givenin recognition of the school that provides Champions School of Real Estate had athe highest performance and lasting Top 10 Finalist in Every Season of thecontribution to real estate education. Real Estate Apprentice Program™2006 National Pinnacle Award, RealtyU 2008 Texas WCR Business Woman of the Year Rita Santamaria2005 National Pinnacle Award, RealtyU 2003 NAR REBAC Realtor® Hall of Fame2004 National PaceSetter Award, RealtyU Rita Santamaria2003 National Chairman’s Award, RealtyU 2007 John Branch RealtyU, Instructor of the Year2002 National PaceSetter Award, RealtyU 2002 and 2004 Sue Ikeler2001 National PaceSetter Award, RealtyU REBAC, RealtyU, Instructor of the Year 063010 BRKGE
  • 2. BrokerageHow To Grow and Becomea Successful Brokera Successful Managera Successful Agenta Successful Teama Successful Entrepreneura Successful O cea Successful Individuala Successful Leaderin Today’s Diverse WorldWritten ByRita D. SantamariaRita is the Owner and Founder of Champions School of Real Estate®. She has campus locations inAustin, Coppell, Dallas, Houston FM 1960, Houston Galleria, Houston West, San Antonio as wellas an Online Campus. Rita was nationally recognized by Active Rain.com in October 2008 andwas named “Top 25 Most In uential Women in Real Estate.” She was presented the TexasWomen’s Council of Realtors Statewide Business Woman of the Year Award in 2007 and wasinducted into the 2004 NAR® REBAC Realtor® Hall of Fame. Rita is a nationally recognizedspeaker, trainer, and entrepreneur. She has written many books on real estate related topics.All rights reserved. No part of this publication may be produced in any form or by any means withoutthe permission of Champions School of Real Estate™. Copyright© 2009
  • 3. BrokerageTable of ContentsChapter 1 – Planning and Organization _____________________________________7 e Business Model Plan _______________________________________8 Pro t and Loss Blank Statement and Balance Sheet ________________12 What Does it Take to be Your Own Boss and the Entrepreneur You Have Chosen to Become? ________________14 Success Factors from CEO’s ________________________________17 Personal Performance Management _____________________________18Chapter 2 – Organizing the O ce for Maximum Return ________________________23 Staging the O ce ______________________________________________24 Today’s Agent Needs to Know and the O ce Environment Needs to Demonstrate the Current Trends in Building and Design _____________27 What’s in a Name? _____________________________________________33 Have a Million Dollar Day Everyday _______________________________34 e 7 S’s of Setting Up a Dynamic O ce Environment ________________35 How to Public Speak in a Nutshell _________________________________36 Color Coding Your Core Motivation _______________________________39 Building Rapport with Your Visual, Auditory, Kinesthetic Abilities ________40 All Good Performance Starts with Clear Goals _______________________42 Goal Setting for Life! ___________________________________________43 Time Management – Are You Time E cient? _______________________44 Do You Know How Much Your Time is Worth? ______________________46 e Common Denominator of Success __________________________47 Sharpen Your Saw with Top Producer Secrets ________________________48 Being Your Own Boss Has its Rewards _____________________________50Chapter 3 – Systems and Training ________________________________________51 O ce Systems ______________________________________________52 What’s in a Title? ____________________________________________54 Expansion of a Company Can Be Vertical or Horizontal _____________55 Excellence in Training ________________________________________56 Recruiting and Retaining Agents________________________________60 Desk Costs Explained ________________________________________62 Independent Contractor Status _________________________________64 What You Should Know About Change __________________________65 Developing Partners in the Brokerage O ce ______________________65 “At a Glance” O ce Procedures for Training ______________________66 When You are New to the Real Estate Business ____________________69 How to Choose a Farm Territory _______________________________71 Typical Interviewing Questions You Can Expect from Sellers and Buyers _________________________________72 Simple Strategies for a Successful Good Start when Meeting and Greeting ________________________________73 Tips on Gender Communication – Yes, ere is a Di erence _________74 Are you a Middle or Bottom of the Ladder Sales Performer?__________75 Open-Ended Discussion Points for Manager and Agent Review _______77 Tips for Hiring a Professional Assistant __________________________78 Let’s Strive for Utopia in our Business ___________________________79
  • 4. Chapter 4 – You Have to Spend Money to Make Money ______________________83 How Do I Acquire More Clients? _______________________________84 Advertising by Choosing Words that Sell _________________________85 Marketing Tips for Major Impact _______________________________88 Current Real Estate Creative Ideas ______________________________90 Technology – Love it or Hate it, But You Must Update it ____________92 Tools to Remargin Your Business _______________________________92Chapter 5 – Liability Quagmires and Record Keeping ________________________95 Totally Outrageous Customer Service ____________________________96 What is Agency? ____________________________________________98 What is Ethics? ____________________________________________100 Identity eft ______________________________________________101 Mortgage Fraud Schemes ____________________________________105 Cultural Diversity in our World Today __________________________108 Being Your Own Boss Has its Rewards __________________________112Homework _________________________________________________________113
  • 5. Introduction“It is in the moments of decision that your destiny is shaped.” ree decisions that you make every moment of your life control your destiny. ese three deci-sions determine what you will notice, how you will feel, what you will do, and ultimately what youwill contribute and who you become. If you don’t control these three decisions, you simply aren’t incontrol of your life. When you do control them, you begin to sculpt your experience.–Anthony Robbins, Awaken the Giant Within 1. Your decision about what to focus on. 2. Your decision about what things mean to you. 3. Your decision about what to do to create the results you desire.You see, it’s not what’s happening to you now or what has happened in your past that determineswho you become. Rather, it’s your decisions about what to focus on, what things mean to you, andwhat you’re going to do about them that will determine your ultimate destiny.“I know of no more encouraging fact than the unquestionable ability of man to elevate his life by aconscious endeavor.”–Henry David oreauHow to create lasting Change: • Raise your standards • Change your limiting beliefs • Change your strategy – in life, lots of people know what to do, but few people actually do what they know. Knowing is not enough…you must take action.In our e ort to constantly improve our quality and customer oriented services, I am always happy toreceive your suggestions and comments. You may write me at our corporate o ce address: Champions School of Real Estate 5627 FM 1960 West, Suite 100 Houston, TX 77069-4200We love to hear about your successes. Please keep us posted!Sincerely,Rita D. SantamariaOwner and PresidentChampions School of Real Estate Ltd.
  • 6. Chapter 1 Planning and OrganizationChampions School of Real Estate www.ChampionsSchool.com
  • 7. Chapter 1: Planning and Organization The Business Model Plan Guide In basic terms a business plan is a set of instructions to guide you down the road to success in your business by making better decisions. e following is an example of what goes into your plan. You need to rst make an assessment of your current situation, a clear de nition of your objectives and then a list of your action steps that you will utilize to achieve your goals. By examining your company’s strengths and weaknesses you can review your vision and focus and then set your objectives accordingly. Real estate agents are not just “salespeople” but are small businesses. All small business people have two areas of consideration for “top of mind thinking” daily: Revenue and Expenses. Speci cally, if you follow the plan below and get a handle on how much revenue you need to cover your expenses and meet your personal income goals you will have vision and ultimately a successful business. e business plan is part of our regular business planning process. It can be revised regularly based on new objectives. Objectives and Goals is summarizes your market opportunity and the solution to a problem that your business o ers. Mission StatementChapter 1 • What does our company stand for?Planning andOrganization Keys to Success • What are they? Company Summary/Company Ownership • Who are we? • Why is it important? Company Locations and Facilities • What are they comprised of ? • Where are they? Products and Services • What do we sell? • We make sure our customers have what they need to buy a property. • We sell information. Management Team • No entrepreneur is an island. e entrepreneur that can attract the right people are the ones that ultimately succeed. • Do we have any gaps? • What additions are needed to the team? • A good management team also attracts good employees. 8 Copyright© 2009 Champions School of Real Estate™
  • 8. Market • What is the size of our potential market?Industry • Who are our customers? • Is our industry in a growth mode?Market Opportunity • e best business opportunities are based on the most compelling needs of the marketplace. • What are some needs of the marketplace our business can solve?Solution • How does our product bene t the marketplace? • How is our solution unique from others? e Marketing Plan • What unique marketing advantages do we have? • How are we going to continue to attract customers? • What important alliances can we develop?Financial Projections • Revenues and Expenses: the most useful projections are developed around a meaningful unit of measurement. • What is our unit of measurements? • What is our customers worth in lifetime revenue? Chapter 1 • How many customers do we need to break even per year? Planning and OrganizationProjected Pro t and Loss • Projected cash ow • Balance sheetCompetition • Who are they? • Are they formidable?Sales Literature • Does it sell our company/business? • Does it sell our products/services?Service Providers/Vendors • Do we have a good referral base for our needed services? • Where do we nd their contact information?Technology • Are we keeping up with the pace? • Where can we improve? • What about the integration of technologies? 9Copyright© 2009 Champions School of Real Estate™
  • 9. Pricing Strategy • Are we charging appropriately for our service and products? • How can we track this? • Are we tracking this? • What areas do we need to track? Promotional Strategy • All advertising has to emphasize the selling of the company, not the product. • Why? • How can we do that? • Sell service and ongoing support after selling the company. • How do we do that? Personnel Organization • Do we have systems for hiring and ring? • Why have systems? • What systems do we have in place? e E-Plan is designed to help all users of the business plan, but mainly the entrepreneur to streamline his digestion of his personal executive summary. Years past, an extensive business plan left no rock unturned but today a plan needs to be in a form that can be revisited and revised according to the fast changes in the marketplace.Chapter 1Planning and e main audience for your plan is you. e E-Plan or (Easy Plan) is a way of capturing yourOrganization vision and putting it in a format for execution. e next audience for your plan is your employees, teammates, vendors, and service providers that are part of your team. A good business plan can show them that your business is alive and you have given it your time and thoughtful attention. e SWOT Analysis is another resource for your company plan. Involving your team members in the analysis is another way of receiving a clear vision of how others see your business. Here is how it works. S – Strengths. A strength is something your company is good at doing. is could be good company ethics, unique advertising, strong market place branding, good return on e-commerce, strong product sales records, talented employees, great customer service. W – Weaknesses. is is something the company does poorly compared to the competition. Having no clear strategic direction is one example. Technology tools that are obsolete. More debt than revenue is a weakness for sure. O – Opportunities. Expanding into new revenue streams or geographical areas. Using the internet to increase e-commerce and to take an advantage over the competition to increase market share is another example. T – reats. Certain factors in the external environment can pose threats to competitive edge. Rise in interest rates, increase in the competitors marketing programs, a new program the competition launches, or governmental factors can shift your business position. 10 Copyright© 2009 Champions School of Real Estate™
  • 10. Revenue is gross earnings before expenses and taxes are taken out or removed. Expenses tend tobe the area that sales people do not track as accurately as necessary. Expenses are identi ed by twotypes, xed and variable. In xed expenses you have your overhead costs that typically don’t changesuch as payroll, rent, dues and license fees, car payments, and such. Variable expenses are thoseexpenses that can change based on the transaction such as advertising expenses, printing, signs, etc.Expenses must be tracked to know where you will end up at the end of the month, and year. Tohave pro t at the end of the year you must have more revenue than expenses. How do you increasethis? More closed transactions. Disposable income is what is left after paying your xed and variableexpenses. Disposable income is what allows you to go Las Vegas and gamble…with disposableincome. You can dispose of this money and it has no impact on your budget or expenses.In real estate sales what are some examples of xed expenses?In real estate sales what are some examples of variable expenses?You are now on your way to planning for the success of your company. Start your business o on theroad to success today. Use this outline as a guide for discussion with your team and team members.It will get everyone thinking about their new role as an entrepreneur. Chapter 1 Planning andYou will be a better manager. You will be a better agent. You will be a better team. OrganizationYou must know who you are and where you are going. 11Copyright© 2009 Champions School of Real Estate™
  • 11. Profit and Loss Statement Income vs. Expense 11/30/2008 INCOME DESCRIPTION INCOME Wages (take home) - partner 1 $5,100 Sales 0.00 Wages (take home) - partner 2 $4,000 Other Income 0.00 Interest and dividends $100 TOTAL INCOME 0.00 Miscellaneous $50 COST OF GOODS SOLD 0.00 TOTAL INCOME $9,250 GROSS PROFIT 0.00 EXPENSE DESCRIPTION Auto expense $397 EXPENSE Auto insurance $190 Advertising Auto payment $900 Equipment Rental Beauty shop and barber $150 Meals Cable TV $50 Membership Dues Charity $0 Office Expenses Child care $800 Payroll Expenses Clothing $400 Postage & Shipping Expense Credit card payments $250 Rent Dues and subscriptions $30 Taxes Electricity $250 Telephone Expense Entertainment and recreation $200 Travel Expense Gas company $65 Utilities Gifts $50 TOTAL EXPENSE 0.00 Groceries and outside meals $600Chapter 1 Health insurance $200Planning and Home repairs $60Organization NET INCOME 0.00 Household $100 Income tax (additional) $100 Laundry and dry cleaning $50 Summary Balance Sheet Life insurance $100 11/30/2008 Medical and dental $40 Miscellaneous $500 ASSETS Mortgage payment $2,300 Current Assets 0.00 Other debt payments $50 Checking/Savings 0.00 Rent $0 Other Current Assets 0.00 School expenses $50 Total Current Assets 0.00 Telephone bill $100 Tuition $0 Fixed Assets 0.00 Vacations $200 TOTAL ASSETS 0.00 Water/trash pickup $40 Babysitter $100 LIABILITIES & EQUITY Cleaning service $400 Liabilities Taxes (already taken from check) Current Liabilities Other Current Liabilities 0.00 TOTAL EXPENSES $8722 Total Current Liabilities 0.00 TOTAL INCOME $9250 Total Liabilities 0.00 PROFIT FOR THE MONTH $528 Equity 0.00 TOTAL LIABILITIES & EQUITY 0.00 12 Copyright© 2009 Champions School of Real Estate™
  • 12. Gross Revenue or Commission Dollars (–) Fixed Expenses (–) Variable Expenses Disposable Income Fixed Variable Chapter 1 Planning and Organization Approximate Expenses for New Sales Associate State Application Fee $100 Evaluation Fee $30 State Exam Fee $60 Fingerprinting $44 Typical Company Expenses* Business Cards (per 1000 cards) $100 Signs (each) $60 Technology Fee $50/mo Association of Realtors Membership Fees* Membership Dues $230 Application Fee $100 Lockbox Key Pad $100 Lockbox $50 Misc $200 *These are only approximate expenses 13Copyright© 2009 Champions School of Real Estate™
  • 13. What Does it Take to Be Your Own Boss and The Entrepreneur You Have Chosen to Become? • You must have e ciency in business planning. • is means from the very rst day you have license in hand you must be systems oriented for success. • You must have a driving desire to achieve. • You must be willing to o er and ful ll outstanding service to your clients. • You must have within yourself a willingness to learn from others. • You must have curiosity about the real estate world around you. e Plan Must Be in Place e plan is your goal setting plan. is plan consists of nancial and personal goals. You must Work the plan. Daily Plan Your daily plan consists of: Must Do: prospecting/taking a listing/showing a buyer property Should Do: distribute a ier about new listing/take pictures of new listing for MLS Could Do: prepare a networking topic for discussion/update my e-mail addresses Prepare yourself for the next day the evening before the next day begins. Start with the Must Do’s rst thing in the morning. At the end of the day what does not get accomplished moves up theChapter 1 ladder to the next level until eventually the Could Do’s are at the Must Do level.Planning andOrganization ink in terms of “Target Rich” prospecting. Working your centers of in uence (people who are already sold on your performance) involves a smaller circle of prospects but the payo is greater since these people already know you and expect that you are the “expert” in real estate. Always make time on your calendar for personal contact with these target rich resources for business. Calculate Your Hourly Worth. is truly helps to keep you focused on prioritizing your day. Take your annual desired income divided by how many days per year you plan to work; then multiply hours per day you will work and now you know how many hours per year you will work. Do the division and you will know what your time is worth. For example: $80000/2400 hours = $33 per hour Simply Never Give Up! “ oughts held in mind produce after their kind.” Remember, Lower to Mid Price Ranges are Your Bread and Butter. Higher priced property listings are your vacations or “icing on the cake”. Team Building for the next level of production involves the following facts. You are the Hunter. Your team members are the skinners. Your team should start growing only 5-10 months after you begin your career. First, look for a buyer’s agent to assist you with showing business. Next person on your team is a licensed assistant. Your marketing specialist could be you or your assistant with the proper direction and plan in place. Your assistant will be a primary player for escrow/closing activities. If you 14 don’t have an assistant, you are one! So do the job timely, accurately and professionally. You will want your “team” image on everything and always have pictures on all marketing materials. Copyright© 2009 Champions School of Real Estate™
  • 14. e consistency of your marketing materials you hand out will work better for you. Find a lookon your direct mail pieces that you like and use it as your pattern or shell for all that you send toclients. You are creating an image with this consistency. You are “branding” your name.Consistent mailings establish continuity. Homeowners and centers of in uence begin noticing yourimage everywhere they look. ey come to expect excellence from you and are happy to refer theirfriends to you.You reinforce the image by taking good care of their referrals. Send a note and/or thank you gift tothe center of in uence that referred their friend to you. Be sure to ask for more business.Questions to ask yourself: 1. Do you have what it takes to dominate a market? 2. Do you have the desire to do what it takes? 3. Is it worth your time to get your career on target so you can dominate a market?Food for thought: How you think today is what you will be tomorrow.10 Biggest Myths Between You and Limitless Success. 1. You can’t go out on your own. You will sink and drown in debt. 2. Top Producers dislike each other. 3. Agents do not want anymore new people in their o ce. 4. You can’t be a top producer in your rst year. Chapter 1 5. You can’t have much business in a small market. (Niche market, or small town) Planning and 6. You can’t do it if you don’t have a good sales background. Organization 7. You’re too young. No one will take you seriously. 8. You’re too old. You’re out of touch with the generation x’ers. 9. You must have a luxury vehicle. Your car should be clean, comfortable and in good reliable working condition. 10. You must be techno savvy to be successful in today’s real estate. Real estate is still a service industry relying on high touch more than high tech.Getting out of your own way is your biggest barrier to success. e following are barriers to sustained success: • riving on recognition – being #1. Instead: look at bottom line net revenue instead of recognition • Don’t get trapped by listening to how other people de ne success. Instead: be yourself and decide what success means to you • Listening and believing what others consider as barriers to success. Instead: records are broken in every area all the time – the only barrier to success is the one that is self-in icted. oughts placed in mind produce after their kind. • at won’t work in this market. Instead: How can I make this work in my market. 15Copyright© 2009 Champions School of Real Estate™
  • 15. How To Stay Ahead of Industry Trends. • Go to educational seminars to know what others are doing. • Look at technology as an ally and just another tool in our industry. It is not the beginning of success or the end to success. It is just another tool. • Have systems in place and use the systems. • Practice every thing you do before the actual presentation. • Sell: Yourself rst Company secondly Product thirdly ere Are Only 4 ings We Are Supposed To Do Daily: 1. Prospect 2. List 3. Sell 4. Negotiate ings You Need to Know and Remind Yourself of Regularly: • You don’t have to take every listing. What are some examples of a listing you would not want to take? • It is better to buy real estate than sell it. Part of your plan is to invest in real estate for yourself.Chapter 1 • You can’t be selling it if you don’t own it. You aren’t believable if you don’t own real estatePlanning and yourself.Organization • Treat real estate sales like a business. You are in business for yourself. • Sometimes your job is to tell them what they need to know not what they want to hear. • Have balance in your life. Real Estate is not a 24-hour, 7 day a week career. • Have an exit plan before you hire people or go into a partnership. • It doesn’t have to be perfect to go out. Just get it out! • Get out of town and network. Take classes out of town to meet potential referring agents. • Choose a partner that allows you to grow and be the best person you can be. • Approach every idea with an open mind. Don’t let naysayer’s rain on your parade. • Listening to others ideas and acting on their good ideas. • Hire people who share your values. • Be the person your dog thinks you are. • e Platinum Rule: “Do unto others as how others want to be treated.” 16 Copyright© 2009 Champions School of Real Estate™
  • 16. Success Factors From CEO’sWhat are the successful characteristics you see in your company that would compare to these multi-millionaire CEO’s?Sam Walton: “ ere is only one boss, the customer. And he can re everybody in the company fromthe chairman on down, simply by spending his money somewhere else.”Sam Walton, CEO Walmart and Herb Kelleher, CEO Southwest Airlines, both had a single plan to“foster a community-like structure between the company and customer” for success.How can we do that within our company? 1. 2. 3. 4.GE’s former CEO Jack Welch said that the best leaders are those who can articulate a vision and getothers to execute it. His 4 E’s of leadership which he felt were the keys to e ective leadership are: 1. Energy 2. Energize others 3. Edge 4. Execute Chapter 1 Planning and OrganizationHe adds these others to his list: • A good communicator • A team builder • Infectious enthusiasm • Has fun doing their jobJack Welch: “Business is simple and there is great power in informality.”Andy Grove, CEO of Intel, who was brought in to turn Intel around…“ e most important role of managers is to create an environment in which people are passionatelydedicated to winning in the marketplace.”Michael Dell of Dell Computers: “Our culture is very simple: Results oriented.”“If you don’t perform at Dell, you go someplace else.”Defensiveness is not something that works well within an o ce culture, or any culture. It doesn’tmatter who gets the credit. With the correct attitude the team gets the credit. Everyone makes upthe team including the manager. Anytime someone gets wrapped up in who gets the credit theirfocus is o the correct target which is “making pro t for the whole of the company”. 17Copyright© 2009 Champions School of Real Estate™
  • 17. Personal Performance Management e following is a self analysis about you, the manager or agent. is activity is good at any time where you believe it might be time for a “check up” on performance, attitude, or team building. is is also good to use for an o ce seminar or used for individual conferences between the manager and sales associate. Building a New You: Describe the person you want to be in writing What kind of preparation do you need to become the ideal self ? What are your strengths?Chapter 1Planning andOrganization What can you do today to take yourself a little closer to doing what you want to do? Reinterpret the past so that things that have been a burden actually empower you. Courage: ink about the things you could do if you had the courage to do them. We must act on life. “If I had the courage I would____________________.” However, this is what always stops me: _____________________. 18 Copyright© 2009 Champions School of Real Estate™
  • 18. Check Up List • Check your attitude toward yourself: Do you feel good about yourself ? Do you feel you are deserving of good things? • My mental attitude toward myself is: __________________________________________ • Check your attitude toward life. Do you see life as drudgery or an adventure? • My mental attitude toward life is: _____________________________________________ • Check your home and work environment: Are they well organized or they are a mess? Are they desirable places to be? • Describe how you feel about your work and daily living environments: • Check your career status. If you were the boss, would you consider you a valuable employee? • Are you stimulated and working toward career development or just putting in your time? • Check your relationships: Are they nourishing or toxic? Do they drain you or build you up? ink of those closest to you and evaluate the Chapter 1 relationship you have with each of them. Planning and Organization • Check your use of time: Do you go home and watch things that don’t even interest you on TV? How often do you read an inspirational book? • Write down your nightly routine and study how you might improve it to make it more pro table for your career and personal development. • Write down bad habits and faults and mistakes that have eaten away at you over the years, everything that has nagged at you over the years, maybe a missed opportunity or a bad relationship. Now shred the paper and throw it into the trash. Forgive yourself of those faults.Discover e Winner in You. Believe in e Greatness Within You.Recognize yourself as YOU Inc. What are your assets and your liabilities? 19Copyright© 2009 Champions School of Real Estate™
  • 19. What can you do to build on your assets and reduce your liabilities? We all need guides on our journey through life. Seek advisors, role models, and mentors. Establish relationships that make you a better person. Organizations and professional organizations exist to encourage networking and information exchange. People looking for positive sources of support and information. Dream a little dream, live a big life… Allow yourself to dream by completing these sentences. If I had my life to live over, I would: My life would be more ful lling if:Chapter 1Planning andOrganization One person I highly respect is: One goal I really want is: I am happiest when: One area I need to improve in my life is: 20 Copyright© 2009 Champions School of Real Estate™
  • 20. I am most proud of: ree things I would like said about me at the end of my life: 1. 2. 3.Seek ExcellenceService is the key to a continuing business based on referrals. Energy and creativity are betteremployed by seeking high standards in our product and services. No one wins the race bylooking over their shoulder berating the competition. e competition never catches up if you areconsistently working with the attitude, “if it’s not perfect, keep working on it.” Chapter 1 Planning andWe are a customer service driven economy and we must take the attitude that our goal is to OrganizationAMAZE people with our service.Tell yourself that your dream is attainable and then over come all inconveniences and take a runningleap through the obstacles to achieve that dream.Go after what you want as if your life depended on it, because it does!“When life knocks you down, you should always try to land on your back – because if you can lookup, you can get up!”-motivator, Les Brown 21Copyright© 2009 Champions School of Real Estate™
  • 21. Nine Principles of Life Enrichment: 1. I can achieve far beyond my horizons 2. I possess a basic goodness, which is the foundation for the greatness I can ultimately achieve. 3. I must take responsibility for my actions, my well-being and the attainment of my potential. 4. I must seek self-awareness, self-approval, and self-commitment to attain self-ful llment. 5. I must commit myself to building relationships that are critical to the social development of the community and family. 6. Mutual respect is the fundamental element of all relationships. 7. If I help others heighten their life I will have heightened mine. 8. I will work toward my goals by planning, executing, and measuring my progress. 9. I will make commitments with care and honor them with integrity. -Author unknownChapter 1Planning andOrganization 22 Copyright© 2009 Champions School of Real Estate™
  • 22. Chapter 2 Organizing the Office for Maximum ReturnChampions School of Real Estate www.ChampionsSchool.com
  • 23. Chapter 2: Organizing the Office for Maximum Return Staging the Office Staged Homes Sell Faster When you show a home that has been properly staged, you have 100% con dence that the rst impression a buyer gets is a good and lasting one. Proper staging showcases the bene ts of the house in the best possible light. It makes the house look like a model home allowing potential buyers to easily visualize themselves living there. See our CHMS home staging certi cation class schedule. e Psychology of Home Staging Psychology experts have proven that people react based on emotion and then seek logic to back up the feeling. From a real estate prospective, a buyer will make an initial reaction in less than a minute whether they like your listing or not. en, after the potential buyer’s initial decision has been made, they will either con rm that decision or rescind it to the next 6 to 20 minutes as they tour the property. is is why staging is critical for any listing. Move-in Ready Sells Faster A properly staged house appears to the buyer to be “move in ready” condition. Staging a house for sales means that every component of the house is as close as possible to the buyers just moving in and “enjoying their new home”. Sometimes they will pay a premium for this.Chapter 2 ImageOrganizing Staged homes project an image of being well maintained and cared for. e underlyingthe Office forMaximum psychological message is sent to the potential buyers is that it is worth more. It also gives theReturn message they will not have to move in and spend additional cash to bring the home up to their personal expectations. It removes the psychological image of the home being in disarray. Comparable Property Sales When the agent shows the buyer comparable properties based on the buyer’s price range and the staged home is creating a look of move in condition, the buyer believes they have instant value and it appears the staged home is a better deal. What is Home Staging? Many techniques are used to stage a property. De-cluttering, de-personalizing, updating old or unattractive xtures, painting, furniture rearrangement, and accessorizing are just part of the psychology for making a home more inviting to potential buyers. It has been statistically proven using rental furniture and accessorizing vacant home helps it sell faster. Another name for Home Staging is “Repurposing”. Repurpose simply means giving something a new purpose or use. It adds potential to a piece of furniture or an accessory and could add e ciencies that had not been thought of for prior use. It can also add potential money to your client’s bottom line. For example, moving a sofa table from behind a couch to the front entry can serve two purposes for “repurposing a room”. It will open up more space in the living area while giving a more welcome look in the entry hall of the house when the table has a bouquet of owers or tray of cookies on it. Live green plants give an instant lift. Faux owers are de nitely last year. Spaciousness and Light 24 Spaciousness and light determine the success of a staged home. e larger a room appears, the better it will seem to homebuyers. Non-essential items should be removed to minimize crowding and clutter. Copyright© 2009 Champions School of Real Estate™
  • 24. Tips for Sellers e seller’s participation is the key. Suggestions and tips costing mostly the time and labor of theseller can include the following: • Let the Light in • Windows Should Sparkle • Detail Clean Doors and Woodwork • Attend to the Yard – remove weeds in ower beds; trim and edge grass; add new color to the yard with annual plants or if it is winter, add evergreen color to the front walk or porch • De-Clutter and De-Personalize • Deep Clean the Kitchen and Bathroom • Remove all non vital items from the kitchen cabinets for a non-cluttered look • Appliances should sparkle as though they were brand new • Beautiful, shiny oors are a huge drawing card • Fresh Paint always gives a new home look. It is a cost-e ective way to change the look and feel of a room. • Remove at least one-third of all books and accessories from bookcases and built-in cabinets so it looks more spacious. • Remove 25% of clothing from rods in closet to give the closet a more spacious look • Remove furniture or rearrange furniture • Accessorize and decorate – use the “cantaloupe rule”: remove all items around the home that are smaller than a cantaloupe. • Fix and Repair • Get Rid of All Odors – Please remove cat litter boxes from site Chapter 2 • Animals are a distraction to the showing process. Place animals in kennel or arrange for o Organizing site pet care during this time. Water bowls, animal food bowls should all be put away and the Office for out of site after use. Maximum ReturnSet the ScenePrior to the buyers arriving at the owner’s home set the music to classical, or spa type soft music.Eliminate odors with a neutral air freshener or the oil type bamboo stick air fresheners. Candlesare not a good choice since many people nd candle smoke a ects allergies. Open all curtains andblinds and let the sunshine in. Lamps turned on in strategic locations also set the scene for a warmwelcome to buyers. e Elements of Good DesignAttila Lawrence, head of the interior design architecture program at the University of Nevada, LasVegas recommends the four fundamentals of a good design, staging or repositioning. 1. Balance Balance means using furniture and other objects to make each part of an arrangement equal in visual weight so that one area harmoniously complements the other. e balancing of a room appeals to more buyers on the whole. is means one side of a room exactly matches the other. 2. Harmony An easy way to create harmony is through repetition. Repetitions in color, texture, or shape. Repetition does not mean duplication. For example, a green sofa may replicate itself in a shade of green in the draperies or green pillows on a chair. Don’t go overboard, but the majority of buyers are more “peaceful” when viewing a room if the colors are repetitive. 25Copyright© 2009 Champions School of Real Estate™
  • 25. 3. Emphasis Every room needs a focal point. Often the focal point is the replace. On a large wall, a framed powerful picture, which draws the eye to the space, is a suggested tip. Without a focal point there is no place for the eye to rest and the room is uninteresting. 4. Functionality Everything in a given space should be appropriate to and support the experience of what will take place there. A room where children will play and the family gathers to relax needs a layout with space for blocks, or homework and relaxed furniture styles. Maintenance Must-Do’s Although buyers do not often get down on their hands and knees to inspect certain interior and exterior functionality, if an engineer, Mr. Handyman, Mr. Fix-it, were to be the potential buyer here are some suggestions for the not so visible staging of the home. e following are good suggestions for every homeowner: Inside: • Change your furnace lters monthly. Clogged lters decrease e ciency and can cause breakdowns. • Drain your water heater at least once a year. Sediment will drain out along with the water from the water tank. is will prolong the heater’s useful life. • Clean coils. Clean dust whenever you see it accumulating.Chapter 2 • Check circuit breakers. Test the performance of the circuit breakers in your electrical circuit box twice a year by ipping them o and back on. If you have a circuit that consistentlyOrganizingthe Office for shuts o , call an electrician. It could be faulty wiring within your walls.Maximum • Check under sinks for water dripping leaks or water stains. Catching a small problem earlyReturn can save you money from major water damage in the future. • Replace key components. Water heaters, furnaces, and roofs should be replaced before they fail, based on their average life span in years. *For example: Exterior painting: approximately 5-10 years Furnace: approximately 15-50 years Roof: approximately 13-15 years Water heater: approximately 7-15 years Wood decking staining: approximately 4-7 years Outside: • Water issues: Keep the water out by checking ashing. Flashing is the metal pieces used to seal the areas between the roof and chimney and around doors and windows. Loose ashing can let water seep under a roof or inside walls, which in turn can cause mold. • Home’s foundation: Check for cracks or gaps in the foundation, which can allow pests, animals and water to come into your home. • Chimneys: Visually check them each year for damage, loose mortar, missing bricks. Chimneys should be cleaned every two to three years if used for wood burning res. • Roof: Check for missing shingles or dangling gutters. Gutters should also be cleaned to rid the gutters of debris. 26 -Lou Manfredini, Ace hardware’s home improvement specialist Copyright© 2009 Champions School of Real Estate™
  • 26. e purpose of staging is to help the seller sell his home more quickly and for more money. ehouse should sell more quickly if properly staged and time is money. ere is a new designationcourse, CHMS, Certi ed Home Marketing Specialist. is is an up to date and comprehensivecourse focusing on 100% staging and staging process. Ask a career counselor for upcoming dates.O ce StagingUse of these principles will allow for a warmer, friendlier feel in the o ce when incorporated intothe build out or renovation of the o ce environment.Today’s Agent Needs to Know the Current Trends in Building andDesign. Today’s Office Environment Needs to Demonstrate theCurrent Trends in Building and Design.In the sale of homes, three factors have always played leading roles in making one house moredesirable than another: location, price and condition. But new trends are always emerging tocaptivate buyer’s interest and enthusiasm.Today’s buyer has a wealth of choices ranging from special use rooms to green constructionmaterials. How the agent markets these trends depends on the buyer’s interests, tastes and incomequali cations. Chapter 2 Organizing the Office forTrends in Interiors MaximumMcMansions are still very popular with buyers. Many buyers still view bigger as better. Buyers Returnhave the option in many areas of Texas and the country to have the following nishes in their newhomes.Lighting options: Homeowners can control lighting through strategically placed keypadsthroughout the home to improve safety, have mood lighting at their ngertips with one push of thekeypad most importantly, to decrease energy use. (www.squaredlightingcontrol.com)Technological advances are also being shown with windows, doors, illumination that is energy-e cient and can be controlled from a computer of phone that is away from the home itself.Structured wiring is in. Coaxial TV cable, category 5E voice and data lines and remote camerasecurity are wired into the home network center.Stone, clay and mixing materials for a more imaginative look is the interior and exterior trend.Granite is very trendy and now there is a process for using granite without unsightly grout lines.Color matched poly resins fuse together granite or marble tiles for one consistent look. is alsohelps with maintenance and minimizes stains.Stones in a mix of sizes can separate one area from another. Floors are as visually appealing aswalls. Porcelain tiles, marble, and ceramic tile give a warm look to a room and are being used forthe interesting visual appeal, but help to eliminate allergy issues connected with carpet. Mixingmaterials for a concrete-tiled wall, clay mixed with paint, and polished glass tiles placed aroundother tiles give an interesting look to an otherwise painted wall or tiled bathroom enclosure.(www.artistictile.com) 27Copyright© 2009 Champions School of Real Estate™
  • 27. Kitchen Updates: Glazing on cabinets can add an updated look to wood. Glazing colors that resemble ancient Italian villas to mother of pearl glazing shades can be found nationwide. Copper is making a welcome comeback for various reasons. Copper is a healthy choice. It is antimicrobial and requires less energy to mine while also being 100% recyclable. It makes a room look warm and cozy and is now found in kitchen sinks, replace hoods. (www.copper.org) Stainless steel refrigerators and appliances are a fading trend. Buyers have felt this is a cold look and the use of warmer colors in the kitchen is being used again. Bathrooms are using above counter bowl inspired sinks. e use of footed legs on the bathroom cabinetry to give the furniture look is used in new homes. Brushed nickel, and pewter’s are in and antiqued brass and bronze are popular xture nishes. Trends with Space – Specialty Rooms e management room is a new concept where families can track schedules, school papers and homework assignments while mom and dad are able to organize library books, hobbies and have more storage. Often the former utility room is the room for this new trend. Expanding the utility room to include workspace for wrapping paper, desk and message center, computer tabletops along side the washer, dryer, and ironing board is putting e ciency into the oor plan. Other contenders include the meditation room or snoring room. e meditation room is used for a private getaway from others in the family when one needs inner peace. It can also be used as theChapter 2 additional sleeping room when a spouse with a snoring problem keeps the family awake.Organizingthe Office for Outdoor living space is now designed with a screened in porch, couches, heated oor, replace, atMaximum screen TVs and outdoor cooking facilities.Return Pocket libraries are utilizing space in hallways, nooks that otherwise might see a potted plant. Today, trendy homeowners are utilizing a cozy, warm, place to curl up with a book in just a comfy chair and lamp. e landing area on a stairway is often a perfect location for this pocket library. Organizing the garage into segmented rooms such as an area for hobbies, an area for sporting goods, and an area for lawn maintenance tools. is can be accomplished with walls separating the rooms for privacy. Today’s garage owners want them decked out with cabinetry, air conditioning and heating, and mini refrigerators. Outdoor living has taken on a whole new approach with features such as outdoor kitchens with at screen TVs. e top end Jacuzzi tub includes low energy LED lighting, a waterfall, ltration system, connection to a at screen TV, and audio features including an iPod docking station. Outdoor lighting for conservative minded homeowners may include solar energy panels, solar tubular skylights, solar water and air heating systems, and rain water collection systems. (www.altenergystore.com) Green Homes – Trends in Healthier Homes Green building isn’t just for Al Gore. Designers and manufacturers are introducing products and systems to keep our environments healthier. e product and services market for green building is expected to exceed $12 billion this year according to the US Green Building Council (www.usgbc.org). LEED standards, Leadership in Energy and Environmental Design, include 28 Copyright© 2009 Champions School of Real Estate™
  • 28. using green roofs to capture storm water run o and specifying local vendors to cut transportationcosts to a construction site.Green building is the practice of increasing the e ciency with which buildings use resources such asenergy, water and materials while reducing building impacts on human health and the environment,through better siting, design, construction, operation, maintenance, and removal. is is thecomplete building cycle. (Wikipedia de nition) e concepts of sustainable development that are integral to green building are: 1. Reduced operating costs by increasing productivity and using less energy and water 2. Improved pubic and occupant health due to improved indoor air quality 3. Reduced environmental impacts by lessoning storm water runo and heat island e ect.Practitioners of green building seek to achieve ecological and aesthetic harmony between structureand its surrounding natural and built environment.In the United States buildings account for: 40-49% of total energy use 25% of total water consumption 70% of total electricity consumption 38% of total carbon dioxide emissions Chapter 2Many countries have established their own standards of energy e ciency for buildings. OrganizingGreen Globe, www.greenglobes.com, USA, Canada the Office for Maximum ReturnLEEDS, Leadership in Energy and Environmental Design, USA and multiple countries. e United States Environmental Protection Agency’s Energy Star program rates commercialbuildings for energy e ciency and provides the EnergyStar quali cations for new homes that meetits standards for energy e cient building design. (www.epa.gov/greenbuilding.com)LEED, a product of the US Green Building Council, provides the framework for assessing or rating abuilding’s performance within the following categories: Sustainable Sites, Water E ciency, Energy andAtmosphere, Materials and Resources, Indoor Environmental Quality, and Innovation and Design.Based on a point system with 4 levels of criteria, a registered project can attain a Certi ed, Silver,Gold or Platinum rating. Platinum being the greatest points achieved, then Gold, Silver and thenCerti ed being the lesser points achieved.Within the home green choices are plentiful. Construction trends with the eco-friendly house caninclude a greywater tank that stores ltered and chlorinated shower water, lters it, chlorinates itand then sends used shower water back to a home owner’s toilets for ushing. e process savesabout 30% of the owner’s water and sewer expenses. (www.bracsystems.com) Engineered hardwoodis an environmental alternative to solid hardwood, o ering ve to six points towards LEEDcerti cation. (www. oorworks.ca) e use of interior products, paint, and carpet adhesives thathave little or no volatile organic compounds that can trigger allergies is available right now throughCherokee Investment Partners. 29Copyright© 2009 Champions School of Real Estate™
  • 29. Landscaping that includes native plants that are basically edible is another trend. Rainwater run o that can be collected in storage tanks that allow the water to gradually be used for soil and landscaping is another consideration. Green roofs are literally rooftops that have been turned into gardens. Green roofs help preserve green space, control storm water runo , reduce a building’s energy costs, and provide beauty. (www.greenroofplants.com) Construction trends stealing the spotlight consist of log homes that are hand peeled before they arrive at the building site. Adobe homes have been keeping houses warm or cold depending on the season for centuries. A new product that is hurricane resistant to withstand winds up to 242 miles an hour is being introduced in Florida. e product is waterproof ber rock board made from recycled materials. (www.E-Wall.info) Steel has become another popular product in residential building because of its consistency, quality, ease of handling, and declining cost. (www.steelframing.org) Products and Systems that Help Keep our Environment Green • Vinyl Windows and Low E2 Glass: Windows with Vinyl framed Low E2 reject much more of the Texas sun. Windows are a huge energy drain. e primary function is to reduceChapter 2 heat gain in the summer and heat loss in the winter.Organizing • Radiant Barrier Decking: Radiant barriers reject solar radiation making attics cooler. A hotthe Office for attic means less e cient HVAC system. e low emissive attic decking reduces summerMaximum heat gain and reduces cooling energy usage.Return • R-Value Ceiling Insulation: Higher the number = less outside heat coming into your home. • R-Value Wall System: Higher number = less outside heat coming into your home. • Air conditioning lters: Higher number indicates more e cient ltering of the air in your home. e higher the number is the better. • Mold Resistant Shower and Tub Walls: Cement Hardi Board and Anti Fracture Coatings are being used for this. No sheetrock or greenboard are allowed in wet areas. • Fresh Air Systems: Homes being tighter today make the air staler. With these systems it allows fresh air to ltrate your home for a healthier environment. An electronic system connected to the HVAC that brings in ltered outside air on a timed basis. • Draft Elimination: e amount of air that leaks through your walls, doors, and ceiling on an hourly basis can be calculated. Lower number is better. • Formaldehyde Free Insulation: Di cult to nd but healthier. • SEER Rating on HVAC System: e higher the number means more e ciency and fewer dollars out of your pocket for energy expenses. Green Terminology • ACH: Air Changes per Hour. e lower the number is the more e cient. is is testing to determine how much air leaks through the walls and ceilings. • ASHRAE: American Society of Heating, Refrigerating and Air-Conditioning Engineers. e primary organization used in the US for the design standards in our HVAC systems. 30 Copyright© 2009 Champions School of Real Estate™
  • 30. • Energy Star: Department of Energy program mandating a minimum 15% more energy e cient home than one built in 2004. • HVAC: Heating, Ventilation and Air Conditioning. • IAQ: Indoor Air Quality • IRC: International Residential Code. e IRC is the Building Code for the State of Texas. • Jump Duct: A exible, short, u-shaped duct that connects a room to a common space as a pressure balancing mechanism. • LEEDS: Leadership in Energy and Environmental Design • Low E2: Low emissive. Glass is coated with a metallic oxide layer that improves thermal performance. • Manual J: e ASHRAE method for calculating residential home cooling loads and the sizing of the system. • MERV: Minimum E ciency Reporting Value: e ASHRAE standard for lter e ciency. e higher the rating the better is the energy e ciency. • Pressure Balancing: To equalize air pressures between rooms in a house by adjusting air ow Chapter 2 in supply and return ducts. Organizing the Office for • R-410a: Environmentally friendly refrigerant used in our HVAC systems. Maximum Return • R-Value: Resistance – Value. e resistance a material has to heat ow. e higher the R value the greater the resistance. • SEER: Seasonal Energy E ciency Rating. It measures the e ciency of the air conditioner once it is up and running. Higher the number is better e ciency rating. • SHGC: Solar Heat Gain co-e cient. e solar radiation entering a home through the windows is what this measures. e lower the number, the better the window is at blocking heat. • ermal Envelope or Enclosure: e exterior shell of a home. is includes the walls, foundation, oors, ceiling, windows, doors and roof. • U-Value: A measure of heat transmissions due to the air temperature di erence from inside to outside…the lower the U-Value, the better. • USGBC: US Green Building Council: www.usgbc.org • VOC – Volatile Organic Compounds. e term covers a wide range of chemical compounds, some of which can be harmful. 31Copyright© 2009 Champions School of Real Estate™
  • 31. e National Association of Home Builders has prepared its new “green” certi cation program for home builders. (www.nahb.org/courses) Champions School of Real Estate now o ers the Green Veri er certi cation course. EDR, Environmental Data Resources provides environmental risk information through its EDR Neighborhood Environmental Report. e reports include information on things such as a leaking underground storage tanks, hazardous waste sites or spills, illegal drug houses, and Superfund sites. (www.edrnet.com/residential) www.GreenBuilding.com – a digitally interactive website for discussing green building alternatives and suggestions in each room or area of a property. e Texas Association of Realtors® has TAR-1506 General Information and Notice to a Buyer form. e information on this form may assist a buyer during the purchase period with certain Environmental Concerns listed. See form in Addenda A. Resources ASHRAE Green Guide: (www.ashrae.org) Addresses architectural design, engineering designs, and energy systemsChapter 2 Green Built Homes: (www.greenbuilthomes.org) Reviews and certi es new homesOrganizingthe Office for Greening Federal Facilities: (www.eere.energy.gov) A resource guide for federal facility andMaximum energy managers, designers, and planners.Return Green Globes: (www.greenglobes.com) Green globes identify a building’s environmental strengths and weaknesses. Green Guide for Health Care: (www/gghc.org) A best practices guide for healthy and sustainable building design and construction. Whole Building Design Guide: (www.wbdg.org) e goal of Whole Building Design is to create a high performance building by applying integrated design approaches during the planning and programming stage of development. If your company is in the process of building a new o ce or renovating these ideas can be very helpful. For the agent showing buyers property this discussion on Green Living and Current Trends will help them while showing property. 32 Copyright© 2009 Champions School of Real Estate™
  • 32. What’s in a Name? 1. Responsibility is in a name – everyone is involved in this standards driven company. “Productivity Standards” for each agent is a must in a company. 2. Ethics are in a name – when was the last time you saw a top producer red in your company because of acting unethically? “Agents are de-motivated if they feel they are not on a level playing eld.”Participatory LeadershipVast majority of agents do not feel it is “their company”, they don’t feel empowered, andconsequently, they are not loyal if they do not have participative leadership. is attitude, concept, theory will all re ect in the name of your company when your name orcompany name is seen in print or heard by others.Accountability is in a Name • If there is a mistake, the agent/company take responsibility for xing the mistake • If expectations from goals and productivity standards are not met, the “team” takes ownership to bring the standards up to the expected goals. Chapter 2 • Pride in belonging to a particular company will be demonstrated by the agent and to the Organizing community. the Office for Maximum ReturnPositioning Yourself Means: • Expand your prospecting e orts – you always need more listings • Pricing is key – take charge by feeling con dent in your market knowledge • Marketing has to be daily and using three keys: direct mail, e-mail and personal contact • Keep in communication at least monthly with past clients.Choosing Your Company NameUnless you have a name that everyone recognizes in your community, use a strong, productive, easyto remember name. You will be using this on all signs, products, and marketing materials.For example:Champions School of Real Estate tells what we do and what we sell. Champions also brings tomind “Winners”! 33Copyright© 2009 Champions School of Real Estate™
  • 33. Have a Million$$ Dollar Day Everyday In today’s world of casualness that has taken over all aspects of our business, home and personal decisions, the following is a proven method of always being professionally correct. Whether you are doing business in a small town or large city it works for all. If you tell yourself otherwise, you are missing some key clients which of course equates to missing commission dollars. e Successful O ce: Exudes the qualities of the middle to upper class of society. It is spacious, uncrowded and tasteful. It is kept clean. People are as concerned today about the cleanliness of the bathrooms as they are the front reception o ce. Your o ce has conference rooms for privacy and comfort. e o ce should have a welcome, warm atmosphere. Use a decorator’s idea for paint colors. All white o ce walls tend to be cold. You need the most prestigious address you can a ord for the area you are serving. If you have a certain niche market, you consider decorating your o ce/conference room for the niche you are servicing to make them feel comfortable and at home. For example, water walls, bamboo plants, an activity area for the children are what is seen in o ces today. Check with your team members or magazines to validate you are up to date in how your o ce appeals to Generation X and Generation Y. A few accessories and wall hangings can do an update for little investment. It also gives the associates a feeling of well being that you are in the know of keeping current.Chapter 2 e Desk:Organizing A clean, neat, uncluttered desk is an essential. Even though you have a lot of papers around you, keepthe Office for them led, work one le at a time then put it away in a le drawer. If you must, keep them stacked onMaximum a credenza or table near you...but o your desktop. An uncluttered desk is impressive, and gives theReturn impression you are organized, and have yourself “together”. ere is no exception to this rule of rst impressions. It is true that a cluttered desk gives the impression of a cluttered mind. e Car: Yes, you have a sentimental attachment to the 2002 Lexus that was a trophy for a personal accomplishment. But, you are giving the impression this is the best you can a ord. No matter what your vehicle make or model have gasoline in the tank, have a clean and pleasant smelling car. e car is a window into your personal way of life. It’s not who you see, it’s who sees you. It’s a fact. Over 95% of the successful important people in this country dress in conservative, upper- middle class clothing. In today’s society our clothing is more casual but the sales agent must dress better than the client he/she is serving. Even in the heat of summer an agent must not forget he is always “making a rst impression” and it better be positive. One of the primary determinants of intelligence in the eyes of the beholder is dress. You may not consider this fact seriously, but you are then working against a serious handicap. Why do it? Dress appropriately. If you are not sure what appropriate dress/attire is for your area, ask your owner/manager what they prefer you wear. In our diverse culture we are sometimes o ending certain nationalities if we do not dress as the professional they expect you to be, based on their culture. Don’t take the chance of stepping over dollars because you just didn’t feel like looking your best today. 34 Copyright© 2009 Champions School of Real Estate™
  • 34. e Guest:How a company’s guests (customers/clients) are treated are in the hands of the salespeople andemployees. is is a huge responsibility for the success of the entire team and business.Success comes to those who are obsessed with looking after their customers. A person walking intoyour o ce or calling on the phone must always be welcomed with a smile and helpful attitude…outstanding customer service is mandatory in today’s world. ere are too many people ready andable to take your place if you drop the ball in that arena. ese are easy steps for getting your new agent on track with your expectations as they come onboard. e experienced agent can use a reminder if you see that your o ce is getting too lax. Oftenthe written word handed out in this form can get the point across better than the informal verbaldiscussion. is is a small foundation for sales success but possibly one of the most important right aftertraining. Clients expect the agent to be trained. What they tend to remember and discuss with theirneighbors is how attractive the o ce was, or not. ey mention how clean and safe the agent’s carwas, or not. How professionally dressed and well mannered the agent’s demeanor was, or not.It all adds up to a Million Dollar Day…or not.The 7 S’s for Setting Up a Dynamic Office Environment Chapter 2 Organizing 1. Structure: the Office for Maximum How tasks are divided and coordinated Return 2. Strategy: A coherent set of actions aimed at gaining a sustainable advantage in the marketplace 3. Systems: e processes and work ows both formal and informal, that determine how things get done day by day. 4. Style: e way management behaves; therefore, indicating what it considers important and acceptable. 5. Sta : e company demographics – the age of people, the ratio of men to women, the experience level, the level of diversity within the organization. 6. Skills: e capabilities that are possessed by the rm as a whole as opposed to the skills of individuals. “Core Competencies” 7. Shared Values: e values that the top management team wants to di use throughout the organization. e fundamental ideals of a company – its shared goals 35Copyright© 2009 Champions School of Real Estate™
  • 35. Here are Ideals I believe are Core Values for a Dynamic O ce Environment: • We manage by positive reinforcement – never by fear, never by threatening, never by public embarrassment • We lead by example what we expect from our team members – show up on time, answer the phone, be appropriate in demeanor and dress • We believe the customer is #1 • We believe our sales teams are capable, kind, intelligent people – our individual members never humiliate, be undependable, or be dishonest with anyone • We believe the sta and teams all work for the improvement of the company. • We believe everyone wants a happy work environment – nice surroundings, a company to be proud of, an owner to be proud of, a manager to be proud of and everyone desires to be acknowledged for doing a good job. • We believe everyone has the same opportunity to advance forward in skills, attitude and general contribution to themselves and the company. • We expect all sta including managers to contribute their skills equally since their salaries are from all team member’s contributions. • We believe everyone wants to make as much money as is possible. How to Public Speak in a Nutshell Guaranteed to work every time you speak!Chapter 2Organizing Managers and agents are consistently in front of the public speaking at a sales meeting, a listingthe Office for presentation, home buyer’s seminar, a homeowner’s meeting. Public speaking is the #1 Fear of theMaximum general public. With just a few pointers you can reduce your fear and speak with con dence.Return RELAX Anybody can do it. All you have to do is be at ease and let your mind and your mouth do what comes naturally. It’s just plain talking. You talk all the time. Take three deep breaths to calm and relax your nerves. EASE Put your audience at ease immediately. Pretend you are not in the spotlight. Make yourself feel better by pretending they are friends sitting around your kitchen table. It’s not about YOU. It is about the AUDIENCE!! Once you become too pre-occupied with your talk and forget about your audience you have lost them. ey have drifted away from you and are ready for you to leave center stage. PREPARATION Anyone, who thinks, much less states they will just stand up and talk impromptu are doomed for failure. You have to prepare. Not worry but prepare. e more prepared you are the less worried you will be. DON’T READ Do not read your talk, speak your talk. If you are giving a talk – talk. 36 Copyright© 2009 Champions School of Real Estate™
  • 36. MAKE NOTESWrite only your key points on your notecards and then talk from your longer prepared talk.ORGANIZEKnow your opening and your closing by heart. Everything in between will come from your notes.What is your POINT?What do you want your audience to come away with from your talk? Do you want them to feel orthink a certain way? You have to know what your goal is from your talk.SIMPLEKeep it simple. e more di cult your subject the more di cult it will be to keep it straight in yourmind.TWELVE MINUTE RULEHow long should my talk last? Always err on the side of shorter than longer. What else is on theprogram? e standard length of a vaudeville act was twelve minutes. It was the belief of “showmen”that no act could sustain interest for longer than twelve minutes.BE THEREKnow who your audience will be prior to putting your talk together. No matter where you are…bethere. A talk for one group may not come across as well at another group.Personal Experiences WORK Chapter 2 e rst person is a powerful way to relate to your audience. Go ahead and tell them about an Organizingexperience you had. Share it with them. Make them feel as you did. the Office for Maximum ReturnDo Not ASSUMEDo not assume your audience already knows about the subject. Don’t use specialized language orknowledge about your subject. You will lose them.PAUSEWhen you make a point give it time to sink in. Pause, and let them know you just gave them a gem.Tell em, Tell em, TELL THEM AGAINTell them what you are going to tell them. (Your introduction) Tell them. (Your core talk) en tellthem what you told them. (Your ending)SAY SomethingDon’t be afraid to say something. Be direct and get your point across. Don’t be too moderate, tooambiguous.QUESTIONSUse questions that hang in the air. You really don’t expect an answer. is involves the audience evenif it involves them in their own thought processes.Take NAMESAlways get the names of at least 3 or 4 people in the audience and use them during your speech.By using the names during your talk you are personalizing yourself as being one of them. Alwaysremember the name of the person who introduces you. 37Copyright© 2009 Champions School of Real Estate™
  • 37. HUMOR Use humor within the context of your talk. Unless you are a professional comedian don’t worry about telling jokes. Don’t. Use humor that arises from the context of who you are, where you are, and what you are talking about. Again, it personalizes you with the group. NUMBERS Keep numbers out of your speech. When speakers use a lot of numbers they lose their audience. Never OFFEND Never make fun of any ethnic, religious, political group while public speaking. Chances are you just o ended and lost 10% – 50% of your audience who now are not pulling for you, but against you. e ENDING End with a restatement that you started your speech with or end on a positive statement. Ending with “I want to thank our host and his lovely wife” is a worn out phrase that makes for a dull ending to your talk. Getting the audience involved at the end can give you the ending you desire. “How many of you are leaving this luncheon and have at least one new idea to make a di erence in your sales this week?” (Show of hands) “Super, thank you for allowing me to help you today.” Sit down. e applause will happen. Other Important KEYS to Success • Get a good night’s sleep the night before you speak.Chapter 2 • Use the restroom prior to entering the banquet room.Organizing • When entering ask for the person that invited you. You want to make sure you are in thethe Office for right place.Maximum • Meet people in the room whose names you can use to personalize your talk.Return • Be aware that people are watching you prior to your speaking. ey are making a rst impression already. Look happy and interested in what is happening in this room. • Only glance at your opening prior to speaking. e rest will come to you because of your prior preparation. • When speaking it helps to hold onto the podium to gain balance if you are feeling nervous. Don’t ever put your hands in your pockets if you are nervous. Hold your hands behind your back if not onto the podium. Remember, these are only people. You are only speaking. You do that every day. 38 Copyright© 2009 Champions School of Real Estate™
  • 38. Color Coding Your Core Motivations is is a quick and easy way of discovering what typical overriding personality style you use asa manager. It can be given to the agent to help them discover their core style when dealing withassociates and clients. It is also an o ce meeting discussion topic.First of all out of the following group which is your favorite?Yellow, Blue, RedOf this group, which is your favorite?Green, Purple, OrangeNow you are prepared to nd out some interesting facts about your style, personality and the wayyou manage yourself.Yellow/Green – You are the CaretakerYou have a realistic perspective on life that creates a comfortable environment for those in yourpresence. You are diplomatic and listen to other people’s point of view. Problem: You want to xeverything for everyone so they are happy. Sometimes you need to step back and let other’s learnfrom their mistakes.Yellow/Orange – You are the Technical inker Chapter 2You are inventive and encourage others to be creative with their thought processes. You like systems Organizingto be in place as well. Allow your customers to express their ideas even if you personally believe the the Office for Maximumideas are not so good. Your systematic approach to leading them to draw their own conclusion will Returnallow for a better decision from the customer. ey will not have a tendency to have cold feet afterthe fact because you systematically lead them to make up their own mind logically.Yellow/Purple – You are the CatalystsYou are an active listener who expresses your feelings about situations. You also make use of yourintuitive powers. You have a constant need for change. is can sometimes make you di cult topen down and understand. Your enthusiasm makes your customers want to ask loads of questionsabout the situation at hand. You might want to be more careful about expressing your feelings aboutproperties since you may be confusing the prospect. e prospect might not want to tell you thetruth about their feelings for fear of being counter your opinion.Blue/Green – You are the AnchorYou are very supportive of your client. You have lots of time for their questions and demands. Yousee the dreams of your client and are sensitive to their needs. You give them self con dence to makea decision. You might be losing track of productive time if you are not more aware of the extra timespent anchoring instead of taking charge. Give your clients the time they need with you and thenmove them into making a closing decision.Blue/Purple – You are the inkerYou teach people how to think. You have a personal need to know “why things are” as they are.Understanding why things are as they are allows for questions concerning change. Don’t allowunrealistic expectations slow you down. Keep yourself grounded by not starting too many questionswith your clients. Give yourself some time to get to understand their needs and wants before you 39Copyright© 2009 Champions School of Real Estate™
  • 39. begin any “why’s”. Once they have made up their mind to purchase make yourself stop selling and just get their signature. Blue/Orange – You are the Builder You are innovative in your thinking process. You are constantly remembering smart ideas from past sales or situations that enhance the negotiation of the current situation. People enjoy being with you because you are just fun. Red/Green – You are the Resource Manager You are practical and nurturing with your clients or sta . No one fools you either. You have a dynamic personality. You have a knack for knowing what is important to complete the task at hand. Others see you as the rule imposer; therefore, ask others their opinion rst before giving them yours. Make a rule to always tell others your concern before you give them your opinion on how to x the problem. is will allow them to believe that even though you may come across as bossy, you are looking out for their best interests. is evaluation system is just another way of helping you understand yourself so that you have a better relationship with your associates and clients. Building Rapport with Your Visual, Auditory, Kinesthetic AbilitiesChapter 2 We know that the verbal language is a small part of how we communicate with others. WeOrganizing communicate more often and most e ectively through non-verbal communication. e followingthe Office for information on body language will help when communicating with clients.MaximumReturn is is a great topic to use as a reminder when researching a topic for your o ce meeting. Visual Personality • Sees – words are important • Gestures – upward and outward • Voice – loud and fast paced • Breathing – upward ( uses upper torso) • Motions - very animated – makes pictures with words Auditory Personality • Speaks Words. Hears Words – Has internal dialogue • Gestures – side to side • Voice – rhythmic, melodic; volume is average and speech is paced • Breathing – middle torso • Motions – graceful, side to side • Less animated – medium speed with motions 40 Copyright© 2009 Champions School of Real Estate™
  • 40. Kinesthetic Personality • Feels words rst • Voice – monotone, slow paced, low volume • Breathing – lower torso, diaphragmatic • Moves at a slower pace, very consistent • Gestures – downwardMeeting and Greeting Other People Using the VAKV – Visual (a showing working with buyer clients)A – Auditory (a listing appointment with the sellers)K – Kinesthetic (a negotiated o er is turned down by the other party and you are delivering thenews to your client.)Visual = working with buyersSales people use the Visual 50 – 60% of the time. It should be used regularly with buyers.Auditory = Working with sellersSales people use the Auditory 10 – 30% of the time. is is a more thought provoking dialogue.Slowing down and being speci c is very important here.Inspection reports being reported by inspector to the client would be another example of auditory.Kinesthetic = delivering a rejected o er to a seller; sending news that the appraisal did not come Chapter 2through at sales price; telling the o ce manager you are moving to another rm. is is used 3% - Organizing10% by sales people. the Office for Maximum ReturnWhat In uences Human Behavior?Words = 10%Voice Qualities = 40%Physiology = 50%Question: What does this tell you about how you present yourself as a professional?Answer: People have already made an impression of you either positive or negative before you everopen your mouth. at impression has more impact than the words you are planning to give them!We are also in uenced by Olfactory senses – that of smell. Having the seller light scented candles,or bake a pie or cookies prior to the showing is to have buyers react to the Olfactory senses. is canbe good or bad. Dog and cat odors, ethnic-cooking odors in a house can be the kiss of death for asale. e agent has to tell the sellers these problems early on in the listing period.Gustatory senses is another factor in our decision making process. is is a sense of taste thatdetermines our decision making process. We tend not to have a use for this one in selling real estate! 41Copyright© 2009 Champions School of Real Estate™
  • 41. All Good Performance Starts With Clear Goals Sometimes we all need a little motivational “two second time out”. Salespeople in particular must stay up at all times. e following quick quotes are your power nap for staying at the top of your game. I rmly believe that providing feedback is the most cost e ective strategy for improving performance and instilling satisfaction. It can be done quickly, it costs nothing, and it can turn people around fast. Feedback From your Team Members Is the Breakfast of Champions. -Rita Santamaria When people are not dealt with truthfully, they lose respect for their organization and pride in their work. at’s why it is essential for an e ective organization to provide ongoing feedback. We all want to know how well we are doing. No One Can Make You Feel Inferior Without Your Permission -Eleanor Roosevelt I choose to feel good about myself. is way I am more open to learning. If people give me negative criticism, I don’t interpret what they are saying as meaning that I am a “bad” person. e belief that I control my own self-esteem permits me to listen to and hear their feedback in a non defensive wayChapter 2 – looking to see if there is something I can learn.Organizingthe Office for When You Stop Learning, You Stop GrowingMaximumReturn Take What You Do Seriously But Yourself Lightly To avoid the rat race and stay on course, we must honor our inner selves. e only way to do that is to seek out times of solitude when we can be alone with the voice that says, “You are a loved and valuable person”. e Trouble With Being in a Rat Race Is at Even if You Win the Race, You’re Still a Rat -Lily Tomlin ink Big! Act Big! Be Big! Be your own best friend and believe in yourself. Don’t wait for someone to do it for you. Cheer yourself on. Write your own pep talk. It works. All Good Performance Starts with Clear GOALS! Goals are simply a roadmap showing clearly where you want to go. We know our goals… We achieve our goals through learning, good communication, believing in ourselves, and taking ourselves lightly. 42 Copyright© 2009 Champions School of Real Estate™
  • 42. Quotable Quotes to Motivate the Team “Knowing Where You Are Going Is the First Step To Getting ere.” “Your Game Is Only As good As Your Practice” -Don Shula “It’s Surprising How Much You Can Accomplish If You Don’t Care Who Gets the Credit.” -Abraham Lincoln “You Get From People What you Expect.” “Eagles Flourish When ey Are Free to Fly.” “Goals = Dreams” “It must be borne in mind that the tragedy of life does not lie in not reaching our goals; the tragedy lies in not having any goals to reach. It isn’t a calamity to die with dreams unful lled, but it is a calamity not to dream. It is not a disaster to be unable to capture your ideals, but it is a disaster to have no ideals to capture. It is not a disgrace not to reach the stars, but it is a disgrace to have no stars to reach.” -Dr. Benjamin Isaiah Mays Chapter 2 OrganizingGoal Setting for Life! the Office for Maximum ReturnGoal setting involves these 3 areas: 1. Personal 2. Business 3. Mental - Spiritual3-Legged Stool eoryYour life must have balance to be a whole and successful person. • Give the best to your family rst • Give the best to your work environment • Give the best to yourself Everything else will fall into placeGoals are simply a dream with a deadline! • Goals must be personal • Goals must be realistic but don’t be afraid to dream big • Goals must be written and executed to your top of mind thinking everyday • Goals must be implemented • Goals must be measurable • Goals must be reevaluated regularly 43What are the road blocks to achieving your goals?Copyright© 2009 Champions School of Real Estate™
  • 43. You Can Do It…Help Prospects With eir Dreams! • Everyday when people walk into your o ces they are in the midst of change. • ey have as a goal to purchase or sell a house, rent an o ce building, lease a property, sell a ranch, nd investment property • Remember, you are part of their dream… Time Management – Are You Time Efficient? How fortunate are we to experience work? I recently heard an immigrant express it this way…I won the lottery, I live in the United States of America. How lucky are we? What are you doing to get your share of the business? We must have e ciency in our business planning. We have to be organized and manage our time. ere must be a driving desire to achieve and a willingness to learn from others. Your daily plan must be in place and must consist of: Must Do’s: prospecting, showing a property, taking a listing Should Do’s: write advertising for your listing, make iers, take pictures, pre-view properties Could Do’s: update my e-mail list, my mailing list, get car washedChapter 2 Prepare your must do list the evening before the start of your fresh day.Organizing Start with your Must Do list until completion. At the end of the day what does not get accomplishedthe Office for moves up the ladder to the next level until eventually the Could Do’s are on the Must Do level.MaximumReturn ere are 3 things an agent has to do everyday: Prospect, Show, Close (means Sell). If your activities are other than these, at some time in the near future your business is going to su er. Practice everything you do before the actual presentation. In the realm of selling remember to do the selling below in this exact order: 1. Sell yourself rst 2. Sell your company second 3. Sell your product third Start your plan of managing your time by calculating your hourly worth. is truly keeps you focused on prioritizing your day and time. For example: $80,000/2400 hours = $33/hr. ( is is based on number of days per year and number of hours per day you estimate you will work.) Food for thought: How you think today is what you will be tomorrow. Is it worth your time to get your career on target so you can dominate a market region? Here are some basic criteria of a good time management plan: • You must write down your daily plan. You can’t carry it around in your head. • Be speci c – your directives must contain a speci c activity e plan must be positive in nature when working towards a particular goal. 44 Copyright© 2009 Champions School of Real Estate™
  • 44. • See what you have accomplished by measuring it. ( e check o list is what works best.) It gives you a personal sense of achievement. • Be realistic about your plan for the day, week, or month. If you can’t do it, it is useless. • Prioritize to get it done e ciently. Must do, Should do, Could do ese 3 categories of Time have to be used when putting your time management system together. 1. Income generating activities – listing and selling, prospecting, qualifying, marketing your listing 2. Support activities – following through on transactions with arranging nancing, title company communications, attending seminars, educational programs to improve your skills and increase your self con dence and credibility 3. Personal time – family, hobbies, vacation, resting, readingNow here are the speci c steps to a time management daily program. 1. State your goal for the day. 2. Relate your activities directly to your goal. 3. Prioritize your activities. 4. Schedule the activities you’ve prioritized. 5. Keep focused on your daily list. 6. Review around midday or lunchtime to see where you are with succeeding with your daily goal plan.Every one has the same number of hours in a day. Why does it appear some people just accomplishmore during the day? If you are looking for some extra “found” hours in your day or week here are a Chapter 2few suggestions. Organizing the Office for • Limit television viewing by 30 minutes per day. You just added 3.5 hours to your week for Maximum working on speci c goals. Return • Spend less time reading the newspaper. You can catch it on the evening news instead. (You will also start your day o with a more positive attitude.) • Cut back on sleep by 30 minutes per night. You have added another 3.5 hours to your week for speci c goals. • Do not read e-mails all day long. Read your e-mails in the morning, lunchtime and late afternoon. E-mails must be opened, reviewed and taken care of but do not allow them to distract you from your speci c plan. • Touch paper one time and either respond, throw away or le. Don’t let it stack up to be a distraction to your brain. • Be assertive to discourage interruptions to your important projects. Do it in a business like, friendly manner. • e telephone and computer do not control me. I control my time with these tools. • Learn to say no to activities that take away or distract you from your daily or yearly goal plan. • Planning (in writing) brings direction to the day and keeps me from wasting time. • Planning brings order out of confusion.Positive self talk about time management and implementing a time management daily routine creates a moreenjoyable, peaceful and successful life. Why doesn’t everyone do it? It’s a commitment to yourself to start.Time Management = Planning = ClarityClarity = PowerPower eventually = Pro ts 45Copyright© 2009 Champions School of Real Estate™
  • 45. Do You Know How Much Your Time is Worth? If you intend to make $80,000 this year, do the following: I plan to work 50 weeks this year. I plan to work 5 days per week. I plan to work 8 hours per day. Now do the following: 50 weeks x 5 days x 8 hours = 2,000 hours of work for the year $80,000 / 2,000 hours = $40 per hour is what your time is worth. erefore, each day every hour you are worth $40 every hour. If you intend to make $_____________ this year, do the following: I plan to work ___________ weeks this year. I plan to work ___________ hours per day.Chapter 2 ___________ weeks x ___________ days x ___________ hours = hour of work for the year.Organizingthe Office forMaximum $ ___________ / ___________ hours = $ ___________ per hour is what your time is worth.Return erefore, each day, every hour, I am worth $ ___________. Am I making good time decisions with my hours? Do You Know How to Goal Set for Revenue? If your goal was to have a $1,000,000 month in production or approximately $15,000 in sales commission for the month, do you know how many houses in your price range you must close for the month? If the medium price in your area is $165,000 and you generally co-op with another company and your estimated commission is around $2,475 from each sale, then take $15,000 / $2,475 = 6 houses must be sold whether you are the listing agent or selling agent. If you receive both sides of the commission because you sold your own listing, then you would need to only sell 3 houses. 46 Copyright© 2009 Champions School of Real Estate™
  • 46. The Common Denominator of Success e question comes up from new agents in the business – what makes some agents Super Stars?Is there a common factor of speci cs the new person must do in order to become Successful? Onewould think all commission sales people would want to become as successful as possible. Manypeople are not willing to do all the basic steps to take the road to success. Here is a list of mustdo’s to insure success at some level. When these steps are practiced over and over again, the successgrows faster and production becomes greater. Practice does make perfect. • Success lies not only in what men do but also in what made them do it. • e Successful person forms the habit of doing things that failures don’t like to do. • Reluctance to follow a de nite prospecting program or to use prepared sales talk or to organize your time will harm your success. If you need help with this, purchase my book, 30 Days to Success by Rita Santamaria. See below. • By doing things that others do not want to do you accomplish things they want to accomplish but don’t. • Every single quali cation for success is acquired through habit. Form good habits so you don’t form bad ones. • Habits form futures. Chapter 2 Organizing ese steps are intended for the new residential or commercial real estate agent who wants to form the Office for Maximuma successful career in real estate. It is also for the agent who desires to go “to the next level” in their Returnproduction. 47Copyright© 2009 Champions School of Real Estate™
  • 47. Sharpen Your Saw With Top Producer Secrets e 9 Principles to Becoming a Top Producer: Top Producers: 1. Are Focused 2. Are Goal Setters 3. Delegate 4. Have Integrity 5. Are Knowledgeable 6. Have a Great Attitude 7. Look Like a Successful Person 8. Personally Invest in Real Estate 9. Are Open to Change Focused You must have a Business Plan. e Plan must incorporate income and expense information for your business. You must have your arms around what it takes to operate a “successful company”. You must have a System in place. You must refer to the system regularly to analyze how your system is working.Chapter 2 Goal SettingOrganizing Mapping your goals out as though you are on a walk through your life will allow you to hit the large,the Office for awesome dreams you hope to attain.MaximumReturn For example if your goal was to have a $1million month in production or approximately $15,000 in sales commission for the month. Do you know how many houses in your price range you must you close for the month? How are you going to get there? Delegating Who is your team of professionals? What brings in the revenue for your company. ese are the income producing activities. e Top Producer is not the one doing the support activities. Integrity You can’t really describe integrity. You know when someone has it by their actions and words. When in doubt do the right thing. Knowledgeable e more you learn, the more you earn because Knowledge = Power ose with a broker’s license make approximately $22,000 more per year than one without one. NAR® member study from 2003 shows an agent with a designation earns about $83,000 more than an agent without one. 48 Copyright© 2009 Champions School of Real Estate™
  • 48. #1 NAR® most popular designation course is the Accredited Buyer’s Representative course.#2 Start the course work to attain your broker’s license. It is the only designation the general publicrecognizes.Let’s add these two factors to the average agent’s income of $45,000 + $83,000(designation) +$22,000(broker’s license) = $150,000/year vs. $45,000/year per.AttitudeA good attitude mixed with a good aptitude is the Top Producer’s recipe for success.Appearance of a Successful PersonTop Producers look like successful people. Always check current magazines to verify what you’rewearing, carrying, and driving is current style.Personally Invest in Real EstateTop Producers buy real estate.Personally investing also adds credibility to what your career specialty is, real estate.Be Open to ChangeWhen the market changes they are not adversely a ected because they believe in their ability to dobusiness. Top producers change with the market.Di cult Principles? Absolutely not! Chapter 2Attainable? Absolutely yes! OrganizingIt is strictly up to you to be the most successful person you want to be. the Office for Maximum Return 49Copyright© 2009 Champions School of Real Estate™
  • 49. Being Your Own Boss Has Its Rewards What Makes Real Estate Rewarding? e people you work with and the clients you service. e freedom to be on your own schedule, you make your own hours, the boss doesn’t set them. ere is nothing more energetic than the highs of a sale having closed. It’s even stimulating to hang around adults who have the same interests as you. e people we do business with have a mission…to buy property. e people in our o ces are all on the same page with their mission…to list or sell property. We have a lot in common with our business associates. We actually understand each other. How to Have More Enjoyment During Your Day: Be Happy – Have Joy – Have a Sense of Humor e secret of happiness is freedom and the secret of freedom is courage. Courage lives at the core of success.Chapter 2 Courage: to be self-employed, take the next risk, know the next month will bring more closings…Organizingthe Office for “It is not what you have lost BUT what you have in the pipeline that counts”MaximumReturn Live in the Present – Most people live in the Past or the Future on the “Someday Isle” – Enjoy the Present Work family activities around business o ce hours, we have to be “whole persons”. Make sure you choose an o ce that is a family friendly work world. Remember the 3 legged foot stool. Your life is very similar. e three legs consist of business, personal, mental. If any of the legs are o balance, the stool will tip over. Any desire you plant deeply into the mind will at some point seek expression in the physical world. What thoughts are you telling yourself regularly? I hope winning, positive thoughts: Wouldn’t it be nice to have a “Master Key” that could unlock everything? e doors to success, relationships, wealth, health, wisdom and an answer to every problem you ever encountered? You have a gold key…it is your brain. e thoughts you experience every minute is the BIG BRASS KEY… ink good things and good things happen. Work the plan and you have all the business you desire. Keep the footstool even and you achieve success in all three areas of your life. Enjoy laughing and people will want to be around you. 50 Copyright© 2009 Champions School of Real Estate™
  • 50. Chapter 3 Systems and TrainingChampions School of Real Estate www.ChampionsSchool.com
  • 51. Chapter 3: Systems and Training Office Systems Outline Answering the Phones – How To’s Client Calls – “ ank you for calling Friendly Realty, this is John. How may I help you?” en give the call to the agent requested or take a phone number and e-mail the message to the requested agent. Agent Calls – “ ank you for calling Friendly Realty, this is John. How may I help you?” Greeting Customers Walk-ins – “Good morning, how may I assist you?” If the walk-in asks for an agent, then get in touch with the agent right away. Phone Calls – Do not put the person on hold unless you must. en, pick up to show you know they are on hold if you must keep the person on hold for any amount of time. A person sitting in front of you or standing in front of you takes priority over a phone call. At the least, say “excuse me” to the person sitting in your presence if you must take a phone call. en keep the conversation short.Chapter 3Systems and Registering the ClientTraining O ce – ere should be a guest book in the o ce or the agent meeting the client will take the necessary contact information. Builder’s Development Site – Builders and builder’s representatives have a form to ll out that allows the agent to sign in their name, company and client the agent is representing. Do not leave a visited site with your buyer until you have registered that buyer with the new home sales representative. Ask for a copy of the registration. Be sure the form is dated. If you allow your buyer to go to new home communities without you, their agent, it is only fair to the builder representative to believe the buyer is not represented by anyone. If the agent can not possibly go with their buyer to the builder’s community but the buyer wants the agent’s representation, the agent should give the buyer their business card and tell the builder this is the agent representing me. Fees Give the estimate of o ce fees, franchise fees, transaction fees, etc Association dues – Give the new agent the local association dues amount Other fees – co ee fund, copier fee, marketing fee, sta fee, yard sign fees any and all additional expenses should be listed on the independent contract agreement. 52 Copyright© 2009 Champions School of Real Estate™
  • 52. Marketing Yourself – is is your number 1 marketing program that must be consistent and ongoing. In other pages of this book there are many suggestions for personal marketing. It is up to you to market yourself. Product – e homeowner expects you are going to market their home with brochures, internet marketing, open houses, networking plans. e homeowner, or building owner will expect the agent to show and demonstrate how the agent will sell the product, “their home or o ce building” to the buyer. Have examples of marketing materials with your listing package. Company – e agent is always selling the company after selling himself. e company you work for should have company marketing brochures which give a background of who they are, why they are in a certain market, what they have to o er the sellers and buyers that make this company unique.Training New agent training – ere must be a consistent, planned, annual training schedule. On-going training – Agents must have an ongoing training plan for the year. Mentoring – New agents need an experienced agent to shadow, help, watch and learn from.Controlled Business Arrangements Chapter 3 Systems and 1. Homeowner’s insurance Training 2. Mortgage company 3. Title company ese 3 are examples of commonly owned other companies where the brokerage has an interest or percentage in the pro ts of these companies. ese companies sometimes reside in the same brokerage o ce of the real estate company. e agents must disclose the relationship between the brokerage and the other businesses when referring a buyer or seller to these other entities. e brokerage should have a letter stating such.Liability Issues Con dentiality forms, policies and procedures manuals with signatures verifying the agent received and read the manual, and contract law training are covered in this training. Paper trails and les – everything must be in writing to protect the agent and broker Disclosures: these should all be discussed and followed up with the agent by the broker or manager • Identity theft • Agency theft • Agency disclosures • Contract law 53 • Personal liability insuranceCopyright© 2009 Champions School of Real Estate™
  • 53. Reviews Agent hiring interview – interview everyone who has an interest Agent review – must be on a regular basis. Even if nothing has changed, people want to be heard. Sta employee reviews – must be on a regular basis. Reviews can happen while “managing by walking around” as well as formal reviews. “Keep It Simple Stupid” works best for managers and agents. Once the System gets too involved and the task list too minute, people get bogged down and often the most important task just gets left aside. Have your agents show you their “Systems” for business accountability, client accountability, com- pany accountability, and state agency accountability. What’s in a Title? Is it important that employees have titles? Here are the titles we use in the Real Estate O ceChapter 3Systems and • New Home SpecialistTraining • Marketing Development Specialist • Technology and On-line Specialist • Buyer’s Agent • Condominium Specialist • Broker of Record, Broker Associate • First Time Homebuyer’s Specialist • Relocation Specialist • Pre-Owned Specialist • Transaction Coordinator Specialist An Organization Works Like is Owner/Broker of Record Branch Managers Personal Assistant Sales Associates Team Leaders In-House Accountant Teams Operation Transaction Specialist Broker Associates Management Team 54 Copyright© 2009 Champions School of Real Estate™
  • 54. Specialty of Niche Market Divisions Residential Commercial Farm & Ranch Property Management Apartment Locator • Screen Agents • Career Developer • Set Goals for • Hire Agents • Transaction Coordinator Annual/Monthly Sales • Training • Sta Support • Supervise Salaried Employees • Performance Reviews • Tech Support & • Production Analysis • Ongoing Training Internet Team • Pro t & Loss Systems • Policies & Procedures ManualAdditional Notes on How an Organizational Plan is Implemented • Have monthly manager and team leader meetings including our marketing specialist person • Manager takes a smaller version of the all day meeting back to their o ce for a monthly 1-hour o ce meeting with all agents. (Generally a breakfast meeting) • Annual retreat for all leadership team. is includes team building, information updates, production increase goal setting and fun for the weekend. It is always away from the o ces. Chapter 3 Systems and TrainingExpansion of a Company Can be Vertical or Horizontal ere are two types of expansion for the aggressive broker and owner. One type of expansion isvertical. is is the type in the organization chart which allows for di erent departments or nichesin the market place. Perhaps the o ce wants to bring in a property management or commercialspecialty. is would be expanding vertically. When the o ce adds other sta people for executivepositions to the o ce or company, this is also vertical expansion. e other type of expansion is more ambitious and requires more capital. When the owner decidesto enlarge the company by adding branch o ces, this is known as horizontal expansion. e ownerneeds money for start up costs. is is known as venture capital. ere are many questions to askyou as the owner prior to expanding by adding branch o ces. e list below is a short sampling ofthe most typical questions prior to horizontal expansion. • Do I have the available capital to justify an expansion? • Do I have a manager in the wings that can grow and build the company’s reputation in this area? • Is there enough potential business to justify an expansion? Have I done proper research? • Do I have agents who would locate to this new branch o ce? • Is there a set method for communication? • How will the sta be compensated? • Can this manager recruit, train and retain agents? • Does the lease have provisions for renewal? 55Copyright© 2009 Champions School of Real Estate™
  • 55. • What budget do I have for xtures, furniture, salaries? • What systems and controls do I need to have in place for branch o ces to run smoothly? • How many agents do I need for start up to cover desk costs? Expansion through Franchises e most common reason real estate owners choose to join a franchise is name recognition. e boutique or smaller real estate o ce gets the additional bene t of national marketing campaigns, advertising through television, radio, billboards. ese forms of advertising may be too cost prohibi- tive to the small company otherwise. Often the franchisor has a well de ned training program. Many brokers choose a particular fran- chise based on its referral program that is already in place and working e ciently. A national refer- ral program allows the o ce to get relocation buyers and sellers from around the world with this built-in referral program. e downside to franchised o ces is the cost. ere is a cost to join which is approximately between $25,000- $35,000. en the franchisee must pay a monthly and franchise fee which gener- ally consists of a per cent age of sales or gross production. ere is often an advertising fee that is required as well. When making the decision to join a franchise or not, doing the calculations based on exact pro t and loss information from the franchisor will be most necessary. Prior to choosing a franchise consider choosing one that you would be proud putting your working capital and good name into.Chapter 3Systems andTraining Excellence in Training Why ask a question? • Questions engage people • ey cause re ective thinking • Questions make people more co-accountable for learning Go From Speaking to Teaching or Training by Asking Questions Use the parking lot – put it on a post-it and signature of the person asking the question. It is now parked. e student is assured that you will get back to them with the answer. In a rut with your training style? Choose your rut carefully – you’ll be in for the next 20 years or as long as you are teaching Change is Good – Remember? Personality types – Pushing Back • Don’t give attention to those who do not contribute positively. 56 Copyright© 2009 Champions School of Real Estate™
  • 56. Never say “we have to do …”Use: • Choose to (We choose to abide by the state licensing rules as agents.) • Like to (I would like for you to turn to page 43.) • Love it (I would love it if everyone liked to cold call as much as I do but there are some other areas that hit each person’s speci c interest di erently so you will nd an area that you just “love” in sales.) • Want to (I want us to nish up by the designated time at 4:45pm so we need to move for ward with our material.)End of the presentation ALWAYS recap:Revisit learning objectives such as:What did you promise for that day or that training module?What did you provide?Objective – Content – SummaryCan be used daily as well as the end of the course.Tie Down the “Take Away Value” - At the end of the course you are summarizing what theylearned from you, their leader, for the last 10+ hours and the time they spent.Scotomas – new word for the dayDe nition: We have blind spots everywhere. Where are some of yours? Chapter 3We get what we expect. Systems andOn your drive to your sales meeting use positive statements such as: Training • I am prepared for today’s meeting. • ey are going to love the lling out of the contract forms. • e clients are going to love me today! e extra handout I prepared will work well for explaining Agency law.Start with the desired end in mind.Agents in our training classrooms are on the average 45+ years old. • is is their 2 or 3 career. Career, not job. • ey plan to carry out this new career until retirement and during retirement. • ey come into the real estate career with lots of life experiences, expectations of their new career and insecurities about going back to school, training, selling, commission sales and a new career.How the mind works: Creative subconscious. 1. Sanction from yourself and students: Self belief 2. Change the way you think – change your life. 3. 50000 thoughts per day and 80% are negative 4. “We can be successful in all aspects of our lives. What made us successful in one area can make us successful in all areas.” 57Copyright© 2009 Champions School of Real Estate™
  • 57. Here are some speci cs to keep in mind: • Recognize individuals who said a certain thing. Use their name regularly. • Don’t ever bring down an agent in front of their peers – the other agents will always side with the agent, not the manager. • An agent mentions something way out there – instead of saying “that will never happen”, or “how weird”, you can say “isn’t that interesting and move on”. Con dence – is the face of your competence Competence – preparedness, research before meeting presentation Empathy – thinking how the agent is relating Use eye contact with group – instead of individuals Use Fun, Humor, Smile Take your temperature: Are you Joyful, Enthusiastic, Have Control of the group? Establish the Ground Rules Early and people will not think you are picking on them. Facilitation (Teaching or Training) Is a Skill and an ArtChapter 3Systems and Create the Learning Environment: How?Training Put the Why before the How Example: We are going to learn the steps of a listing presentation so you can understand the entire package of forms. en you can go back to the o ce and input the listing into MLS. To Train or Facilitate Skillfully – ink of a great learning experience you might have had that you can remember? “Have you thought about this?” Keys to e ective communication are R.F.V. R – Relaxation (Make them comfortable with you) F – Fascination (People need to be engaged in the discussion) Use gestures, posture, professionalism of trainer in speech, dress, decorum) V – Visualization (Distraction free environment, using large lettering, good print and lots of examples both verbal descriptions and in print material.) Start with Impact – How do you want to be perceived? Begin with the end in mind. Fine tune the rst 5 minutes of your opening. 58 Copyright© 2009 Champions School of Real Estate™
  • 58. Never say, “ is is my rst training class.”Never say, “I have never trained before.”No matter what you do, half of the class is ready to bail out on you. ey believe they are alreadysmarter than you!Emotional rhythm – • Move around the room • Do not read word for word! Your agents can do this on their own. Discuss the material you have prepared. Only relate back to the material as to where you are and what page your discussion is coming from. • Voice level should change to various levels. • Take regular breaks but timely breaks. Too many breaks make you less credible. It will appear as though your trainer has run out of material, etc.Time and Agenda ManagementCo-accountability is good – keep us posted as to the break times.Find “tag up” points in the training material outline where you go faster or slow down to hit thecompletion on schedule.Agents want to be taught the entire material not just your favorite sections.Always say, “we are right on target”. Never say “we are behind”…they are now distracted andannoyed at you, “it is your fault, you know. You should have kept us on track” is their thinking aboutthe trainer/manager. Chapter 3Energy Management Systems andMake training look e ortless. TrainingRead your audience for signs of needing a change in format.Vary the presentation. (Rut?)Use breaks and humor re ection for a change.Closing the Sale – What value did you receive today, this week?Agents will brain storm on what they learned.You write it on the board or overhead projector.“ ank you for being here today.” 59Copyright© 2009 Champions School of Real Estate™
  • 59. Recruiting and Retaining Agents What an Agent Wants • Mentoring/training • Technology tools • Professional development • Internet marketing strategies • General marketing guidance What a New Agent Looks For • Training and hand holding from the start • On-going hand holding and mentoring A Business Plan is a Must! • Help the agent develop a plan • Include nancial planning, budgeting • Develop an exit plan from day 1 Agent Advertising Expectations • Branding imageChapter 3 • Value added services in his/her o ceSystems and • Web site development provided by the companyTraining • Consistent advertising in various medias Existing Agent Wants: • Mentoring program for senior executive agents • Direct mail campaigns organized by the company • Consistent advertising by the company • Updated tools for technology success and ongoing training • How to use those tools Contemporary Work Environment • “Not your mother’s work environment” • Visionary guidance by mentors/managers – new ideas! • To be part of the “solution” (team management) Facts on When to do Speci c Actions • Add rst assistant • Add rst buyer’s agent • How to build a team 60 Copyright© 2009 Champions School of Real Estate™
  • 60. Help with Methods of Paying Assistants and Buyer’s Agents • Independent contractor vs. salary employee status • Bene ts • Taxes • Incentive bonuses • General list of what activities the assistant can do for the agentCommunication from Management • What is new in the industry • Risk reduction guidance • Lead and prospecting ideas • Support when the agent’s client calls the company • Permission to have a personal life • Humor in the workplace – this is morale boostingHow to Recruit New Agents • Use your agents – remind them “we are always looking for ne, new people like them”. • Sponsored lunches at CSREAdvertise on all Media Types that you are “Looking for New Agents” • Yard signs and billboards (company sponsored) Chapter 3 • Newsletters, newspapers Systems and • Internet TrainingSponsor a Lunch/Breakfast/Break at Champions School of Real Estate • What to say • Always be positive!!!!!!!!!! e student is a 52 year old going back to school, nervous, stressed and embarking on a new career Now is not the time to do the “real world talk”. Wait until you have them in your o ce and you are doing your personal screening.Get Rid of “Old” Adages Like • “20% of the agents do 80% of the business”…says who and when? • “80%, 90% of the agents do not make it past the rst year”… TREC 2005 annual report: 75.6% of rst year licensees renew for year 2! • Over 85.8% of those that renew year 1 make it to their year 2 renewal!Never Say in an O ce Meeting “What we don’t need any more of are real estate agents.” “Twenty percent of the agents are doing eighty percent of the business.” 61 “Half of you will not make it through the year.”Copyright© 2009 Champions School of Real Estate™
  • 61. Recruiting New Agents • Be forward thinking with your company hiring and training program • Remember Gen X’ers and Gen Y’ers bring a lot of new ideas to the company. Review your programs and advertising to make sure you are inviting generational inquiries. • Bring Gen X into your management/mentoring program Begin With the End in Mind • Know the Business of Your Business • Know how many agents you must consistently train to have the team you need for your company • Know how many new people you must interview daily, weekly to have the new agents you desire • Take care of your existing agents so you have your senior executive team as your base for operations Desk Costs Explained e cost for each associate is known as “desk cost”. When budgeting for monthly expenses the cost of each agent’s existence in the o ce is calculated to understand what each associate is costing the company.Chapter 3Systems and If the budget calls for $300,000 in expenses for the year and there are fteen agents in the o ceTraining then each agent’s desk cost is $20,000. erefore, each agent must make for the company at least an amount over $20,000 to have made any money for the owner/broker. When you have agents who don’t produce, the best solution is train, train, and continue to train. If this does not work, then an owner must let that agent leave the brokerage since they would not be covering their desk costs. A new person into the business is not expected to cover desk costs right away. e broker recognizes this. A good question for a new agent to ask is, “what is the desk cost you are expecting me to cover?” And the question, “in what time period do you think I will start covering my desk cost to the company?” Commission Splits If an agent gets 100% of the commission then it would be expected the agent is paying a monthly fee to the broker called “desk cost or desk fee”. is agreement would be in writing. e agent still is representing the broker and the broker’s name is on all legal documents. If the agent receives 50% of a commission and the sales price were $400,000 and the broker received a 6% commission, the agent made $12,000. An agent would need only 2 sales like this to pay his desk cost if it were the $20,000 desk cost in the paragraph above. Most properties are co-brokered. is means one brokerage rm lists the property by an associate and another company provided the buyer who was represented by the selling associate. In this example, if the sales price were $400000 and the commission 6% and the sale were co-brokered, each agent would receive $6,000. In the $20,000 desk cost discussion, the agent would need to sell 4 properties at this sales price and commission split to cover his company’s desk cost. 62 Copyright© 2009 Champions School of Real Estate™
  • 62. Commission splits, commission fees are all negotiated amounts determined by the broker of record.A new agent interviewing with a brokerage rm would want to ask: • What is the commission split for a new agent? • What commission does the broker require from the seller? • At what point does the commission split change to the advantage of the sales associate? • What is the desk cost that I am expected to cover? • How long do you expect it will take me to achieve that desk cost?How a Company Increases Pro ts 1. Productive agents who exceed desk costs in their annual production 2. Adding more associates 3. Reduce expenses 4. Replace non-productive agents 5. Expand horizontally with branch o ces or niche marketing specialties 6. Increase commission Chapter 3From the list of 1-6 above: Systems and TrainingWhich one do you think is the most realistic method of increasing pro ts?Which number do you think is the least realistic method of increasing pro ts?Encourage Your New Agents to Continue eir Education • Get their ABR, CRS, ARS, ALHS, PMN, SHS, SRES, CHMS and certi ed Green designations – why? A more educated agent is a more limited liability agent to you, the company. • Become a Broker-Associate – why? It is “the only designation the general public, the client, recognizes.” Agents get their broker’s license, not to open their own shop but to add credibility and self-con dence to themselves. And, an educated agent is an agent who should o er lesser liability for your company. 63Copyright© 2009 Champions School of Real Estate™
  • 63. Independent Contactor Status e following are some reasons why agents choose to go into the real estate profession as an inde- pendent contractor. • e agent is not required to have or keep speci c o ce hours. • e agent does not have to attend o ce meetings. • e agent pays their own income tax to the IRS. • e agent makes his own hours. • e agent decides when and if he will hold a house open to the public. • e agent decides when and how often to go on vacation. • e agent dictates his own personal time. • e agent determines what educational courses he will take and pay for. • e agent decides if he wants to take oor time, opportunity time. • e agent uses all related real estate expenses as a deduction on his income tax return.. • e agent determines his own “raise in income” based on his personal performance. If the agent is an employee, here are some activities the manager, employer can require: • Attend o ce meetings • Must take oor time • Must hold an open house for a seller on a particular day and time • Must take a particular training courseChapter 3 • Must have performance reviews and be subject to being red.Systems andTraining e advantage of employee-employer relationships are generally summarized as: • Taxes deducted from salary • Health insurance bene ts • 401K retirement plans • Regularly scheduled pay check e advantages of independent contractor status: • Be your own boss • Find a group health plan through local association or board • Plan for your retirement through investigating your own plan • At the end of the month or year, you know you were the one who succeeded in attaining your personal goals that you set for yourself, your family, and your business. 64 Copyright© 2009 Champions School of Real Estate™
  • 64. What You Should Know About ChangeAn organization must implement changes from time to time. People on the whole have di culty withchange. ose who are analytical by personality type tend to have the tendency to be the most adverse tochange. Change is good if it serves a purpose that makes for the betterment of the whole group.Prior to instituting CHANGE you need to consider your team and sell the change to one of theteam members prior to presenting the change to the rest of the team. is allows you to rest assuredyou will have at least one person supporting your change when it is being presented to the group asa whole.Here is a short list of basics the manager needs to remember when considering the changing of apolicy, procedure or routine. 1. Change is perceived by employees as a gain or loss from the status quo. 2. People attach great importance to consistency and to great lengths to preserve the status quo. 3. Employees are likely to consider change to be a violation of their psychological contract with their employer. 4. Communication is critical to successful change. A compelling vision must be followed by consistent communication. 5. Employees commit to changes when the change re ects or a rms closely held values. 6. Employee perceptions of fairness in decisions regarding a change in uence trust in leadership. 7. Signi cant organizational change takes time. 8. Leadership can become a lightning rod for those opposing change. Chapter 3An e ective leader must have integrity, a willingness to initiate action, a humble orientation toward Systems andserving others, and a resolute con dence in the aspirations and direction of the organization. When Trainingthese factors come together then most employees will accept the change with con dence.Developing Partners in the Brokerage OfficeCreating a Well-Developed and Informed Team e Following Will Serve as a Checklist for the Manager’s To Do List. • New Agent Orientation • Site Orientation • Auditing the o ce meeting in advance of joining the o ce team. Mentoring another seasoned agent • Coaching, based on observed evaluation and manager/coach instant feedback • Goal Setting between manager/coach and Agent • Performance Reviews – Ongoing feedback • Development Meetings, Training Workshops • Encouraging Designation Classes – become a Specialist in Something • Additional development: attending seminars and outside training sessions – ask for ongoing schedule of attendance at educational opportunities 65Copyright© 2009 Champions School of Real Estate™
  • 65. What Do We Look For? 1. Seasoned Professionals: they bring a rich background of experiences to the o ce 2. Self-directed individuals who are themselves open to learning 3. Goal oriented people 4. Agents who expect your o ce to be up to date and technology current 5. e agent who will bring their expertise and good, positive attitude to the o ce 6. Agents who are practical but have a sense of humor 7. Agents who want to be respected by colleagues and clients All of what we do works toward an end goal of creating a partnership with our sta . ey are one of our greatest assets! e Seven Spiritual Laws of Success* 1. e Law of Pure Potentiality 2. e Law of Giving 3. e Law of “Karma” or Cause and E ect 4. e Law of Intention and Desire 5. e Law of Detachment 6. e Law of Purpose in Life 7. “You are what your deep, driving desire is. As your desire is, so is your will. As your will is, so is your deed.Chapter 3 As your deed is, so is your destiny.”Systems and *Depock ChopraTraining “At a Glance” Office Procedures for Training In the spirit of Keep it Simple…here are the basics of training a new person. is is also a good fol- low up for agents that need a reminder. Telephone Techniques • e phone should be picked up at the rst ring. People hang up after the 3rd ring. • Have a smile on your face. • We are never in such a hurry that we are not polite and cheery on the phone. • “ ank you for calling XYZ Real Estate. is is ______________.” Asking for the Business • “How soon are you ready to move?” • “How long have you been looking at houses in our area?” • “Are you working with another agent?” • “Why did you call me?” • “Have you been pre-approved or pre-quali ed?” • “When can I meet with you?” • “ ank you for calling XYZ Real Estate.” 66 Copyright© 2009 Champions School of Real Estate™
  • 66. Write phone numbers down from every call. Have a system for keeping all phone inquiries, clientcontact list. Microsoft Outlook® is a great source for this.If you need to Intercom someone to pick up the call on a certain line…wait until they pick up andtell them who is on the phone. “Kim, line one is Kelly.”It is in everyone’s best interest to: • Keep good notes and messages • Call in for messages regularly. • Keep a great attitude on the phone, in person, and with each associate in the o ce. • Attend o ce meetings. • Stay current and educated on the latest trends and strategies for sales success. e best way to do this is through designation courses.Every agent needs • Training • Ongoing training • Tools to do the work to become successful • On-going feedback from the manager • e feeling that what they contribute is helping themselves and the team.Systems ese are not in order of importance. ey are all important! Chapter 3 Systems and • Daily Planner of whatever source works for you – there is no particular plan that has worked Training better than another. A day timer, PDA, Outlook, whatever it is, it has to be used. • Client les • IRS les • Expense vs. Income les • Marketing les • Professional assistant systems • Buyer’s Agent systems • Prospect les • Vendor les • Personal les • Communication les • Planning • A liate list of preferred professionals who are a part of your extended team • Centers of In uenceE-mail must be returned at least 3 times per day. First thing in the morning at a time you wouldexpect anyone would begin their day, after lunch time, and before you leave your o ce at the end ofthe day. Some agents who have assistants check it hourly. Do not sit and wait for an e-mail inquiryto come over your desktop. While waiting, you could be generating additional prospect leads onyour own. E-mail must be checked regularly but do not allow e-mail to dictate your daily schedule. 67Copyright© 2009 Champions School of Real Estate™
  • 67. • Send out a personal direct mail marketing piece at least one time per month. • Send out an e-mail marketing piece weekly to those clients and COI’s who know you. • Follow up any inquiry with a phone call. Ask an e-mail inquirer which they prefer, e-mail or phone call. • Attend any and all community groups, clubs, meetings where business is waiting for you. Wear your nametag. • Have business cards. Con rm appointments before arriving. is will save you time, gasoline, frustration. People some- times change their minds. Keep any and all negative thoughts and expressions to yourself or share them with your o ce manager. No o ce manager should have negative comments about other agents, the company, the clients, the properties, or the economic conditions in the marketplace. Agents look to you as a moti- vator, mentor, trainer, and leader. Associates spend more hours during the day with o ce families than their home families. Make it a warm, safe environment that breeds successful agents. e o ce and company must give the im- pression to colleagues and clients that everything is under control and smooth. We are professionals. Appointment con rmation is also what professionals do.Chapter 3 O ce ProceduresSystems andTraining First person in: • Keep door locked until such time that the o ce is open • Lights on • Copier on • Computers on • Co ee on • Alarm o Last person out: • Lights o in o ces • Check to secure or lock reception door and or o ce doors • All checks, cash taken to safe or locked in desk drawer • Check conference rooms for any left behind personal contract, form etc. that needs to be put away for security or identity reasons • Set alarm code • Check your surroundings in the parking lot for anything suspicious A well lit parking lot is a must since many agents work after dark at the o ce 68 Copyright© 2009 Champions School of Real Estate™
  • 68. When You Are New to the Real Estate BusinessWhat do you have a lot of ? TIMEWhat do you have less of ? MONEYGetting Started with FREE Activities: • Always wear your name badge. • Magnetic car signs with your name, company name and phone number is great advertising. • Handing out your business cards to everyone. 1. Send out 15 – 30 letters per day introducing yourself to your friends and centers of in uence. ( is is the Impersonal approach also called Indirect approach.) 2. Follow-up with phone calls. (Personal approach also called Direct approach.) 3. Every two weeks follow-up with a call or a mail piece with your name, picture, phone number and e-mail address on the piece. e correct approach is: 2 Directs for every Indirect Direct – Personal Indirect – Impersonal Direct – Personal • Floor Time – Property Time From day one you need to put a note in every agent’s o ce mailbox and volunteer to take any oor time they can not take. Your rst two years can be very busy by taking as much oor duty as possible. If you do this consistently, as much as 50% of your business can come Chapter 3 from oor duty. Systems and Training • Open Houses – Volunteer to hold an open house for the homeowner for any agent who needs help. You would prefer to hold one open if it is in a “high tra c” area so that open house signs you put out on the day of the open house can be easily followed without going through a long drive into the neighborhood. (Your goal here is to nd prospects.) You would want to hold an open house for a property that is priced to sell. A property that is priced below the market or at least within the market price and shows like a model home. (Your goal here is to literally nd a buyer for this house and/or nd more prospects.) Send iers out to the neighbors in the surrounding homes close to the house where you will have the open house. (A rubber band wrapped around the ier and attaching it to the front door knob works ne.) Open house signs on the day of the open house directing tra c to the subject house is most important. Tying balloons to the signs for extra attention also works well. Be prepared with information about the house, the approximate principal and interest payment for this house based on di erent down payment programs. Basic closing cost information is also helpful. Certainly have a positive attitude and bring contract forms. Refreshments such as cookies and soft drinks are optional. Ask the homeowner about their preference concerning refreshments. Try to hold open houses on Saturdays and/or Sundays. A good time for the open house is from 9 am – 4 pm on Saturdays or 1 pm – 5 pm on Sundays. 69Copyright© 2009 Champions School of Real Estate™
  • 69. Always have a guest book available for prospects to sign in and for you to use for follow- up with your prospects. It also shows the homeowner how many people came through the house. What’s most important? Proper promotion before the open house. • Send out letters to top producers in your o ce volunteering to do free work for them. is allows you to get to know the business while being mentored by an experienced agent. It also opens the door for you if they have a buyer they can’t show due to a con ict in appoint- ments. e two of you will work out the commission fee due to you if this buyer you are showing decides to buy a house from you. • E-mail marketing to people who have given you their e-mail address. Be sure it is infor- mation they would want to know and not junk mail. An example of good information is targeting the median price of homes selling in their community. Homeowners like to know average “DOM”, days on market, for homes selling in their neighborhood. Tip: Whenever e-mailing use blind copy – BCC – so that you do not show all the string of e-mail addresses of your group when doing an e-mail blast. It looks more personal and targeted. • Volunteering to help out the local fundraising project in the community, such as United Way or Race for the Cure. ese types of projects help the community and will get your name in front of many people. All you need to do is wear your name badge and have your business cards handy. You can always wear a golf shirt with you company name on the shirtChapter 3 to give an indirect advertising focus to yourself and company.Systems andTraining • Joining at least 2 – 3 networking groups right away is very necessary and very free. e local papers and chamber of commerce will have notices of meetings. Sometimes you have to ask people in the community or your o ce about networking groups to nd one with a t for you. Many agents put their own together. (An example of a typical networking group is composed of a real estate professional, a personal banker, loan o cer, insurance agent, local business owners such as furniture dealer or shop owners.) You can start with as few as 2 -3 people and then invite others into your group. e focus is that each member helps support the business of the other. Networking groups generally meet rst thing in the morning for co ee and doesn’t last more than 1 to 1.5 hours. e meeting is focused on “how to get more business” or “how to be a better business person”. • Using your newly formed “Team”. Remember you have title personnel, lenders, inspectors, repair persons, and insurance agents that want your business. ese individuals could be your rst partners to put together for one networking group. ey are truly part of your “team” just as your soon to be personal assistant and buyer’s agent will be part of your team. Utilize these people for referrals and relationship building. 70 Copyright© 2009 Champions School of Real Estate™
  • 70. How to Choose a Farm TerritoryIf you need additional income, move into a new neighborhood or territory and become the special-ist in that new farm.How Do You Choose a New Territory?Consider these 7 Steps toward making the right decision: 1. Do you feel comfortable in this territory? Could you be just like one of these homeowners? Do you t in? You have to be able to interact with these people and if you don’t match up style-wise it probably won’t be a good match. Remember that you will need to have lots of interaction in this neighborhood and with these property owners. 2. Niche marketing, or specializing in serving a unique market segment based on a common trait may be the answer. Finding an area where the homeowners share common interests and where you identify with the commonalties in that community. For example: golf community, boating community, rst time homebuyer community, Hispanic community, Asian community, condominium community, and farm and ranch community. 3. To achieve this “special agent” status think about yourself, your family, and your past and current interests such as geography you prefer, lifestyle, hobbies, ethnicity, etc. Overlapping in any area could be a possible market niche for you. e more you and your clients have in common the greater the chances for successful business experience. 4. Look at the competition. A fragmented market is a better market than one that already has Chapter 3 an agent with their name associated with that neighborhood. In a market that does not have Systems and the market share pre-determined by your competition you could plant, harvest, and reap the Training rewards of your hard work faster. 5. Turnover Rate is very important. Be sure to choose a market area that is large enough to support you. e neighborhood may have only a few properties turnover each year because of the location of the area, age of the residents, increasing property values and such. is is not the neighborhood or geographic area that will feed your requirements as a business owner. Basically, if homes aren’t selling, this is not your farm area. You are looking for a minimum of 5% turnover annually. 5 – 10% annual turnover is healthy. If your turnover rate is 5% in the neighborhood, then you would need to have 2000 homes in your direct mail, marketing campaign to achieve the results you are desiring. is would be 100 homes per year that sold through you. If you have only 200 – 300 homes in your farm, your chance for listings goes down to 10 – 15 sales from listings per year. If you nd a neighborhood with a high turnover rate, be careful to check out any negative e ects that may be causing this. Or, it could be your jackpot farm area such as a rst time homebuyer neighborhood consisting of primarily production homes where the homeowners are consis- tently transitioning upward to a larger home in a custom community. 6. Is the farm within reasonable commuting distance? e care of your farm is ongoing with lots of marketing time involved for growing this new territory. Be sure you don’t spend too much travel time. Every farm needs fertilizing, watering, and nurturing all along the way. You can not expect a good harvest by “crash cropping”. is means waking up one day and mailing every home in the area and not doing any regular personal follow up thereafter. It 71 doesn’t work.Copyright© 2009 Champions School of Real Estate™
  • 71. 7. Farming has to be regular work. Being in touch with your homeowners at least once per month. As you grow your business stronger, keeping in touch with your farm should take on twice per month attention. If you are using labeling from a mailing list, information can be obtained from database companies and over the Internet. You will want to personally address each piece of mail never put to “resident” or “occupant” on the mail piece. Keep in mind the best form of contact in your farm is personal contact so plan your activities for the year so that you have personal contact regularly. Typical Interviewing Questions From Sellers and Buyers e very rst question a seller or buyer should ask their agent is “are you a full-time or part-time agent?” e answer should be full time if you are a seller wanting to list your home for sale. It takes a complete marketing plan and the agent’s full time attention to get the job accomplished. If you are a buyer wanting an agent to help you nd a property, you will want someone who keeps up with the market values. e agent should know where the new home communities are located and the reputations of the developers and experience of the builders in those communities. e listing agent is the name of the agent making the agreement with the seller to put their house on the market. e agent should always provide the seller with a comparative market analysis toChapter 3 help the seller know the sold prices of homes similar to the seller’s that have sold in the last 6Systems and months. e listing agent will also give information to the seller that has been taken from multipleTraining listing statistics. Information like number of days on the market for a “priced right” house to sell. Ask the seller’s agent to show you his plans for marketing your property. Ask if he will be the only contact or if there is an assistant who will be communicating with the seller. Asking the number of years an agent has been in business is not an important question. Some agents who have been holding a license for 10+ years may not be active in real estate. Someone who has recently been licensed may have the time and devotion to concentrate on your real estate needs and do it very e ectively. If you are the kind of person who really needs lots of interviewing questions prior to hiring an agent, then the following questions should be considered. • Do you live in this neighborhood, or why do you feel like you can do a good job selling our house in this neighborhood? • How many houses have you sold in the last two years, or how many buyers have you helped in the last two years? • Approximately how many hours do you work in real estate per week? • Why did you, the agent, choose the company you are associated with? • Do you have past clients I might call to inquire about their experience with you and your rm? • Agents who are con dent in their ability will gladly welcome an opportunity to answer these questions. It allows them through an outside referral validate that you are choosing the right person for your real estate need. 72 Copyright© 2009 Champions School of Real Estate™
  • 72. Simple Strategies for a Successful Good Start When Meeting and GreetingIt is sometimes challenging to walk into a group of new people, walk into a seller’s home, sit downat a landlord’s conference table and know how to greet and meet. ese steps will make it simpleand easy to have a plan to use every time that works successfully.Stand up when you meet someone.By remaining seated it gives the impression they do not matter enough for you to make the e ort tostand up. If you can not stand up because of where you are located, o er an apology for why you cannot get up. “My chair can not go back far enough to stand up, please excuse me.”Smile.Put a smile on your face for the person who is standing. Look as if you are pleased to meet the otherperson no matter what is on your mind.Make eye contact.If you are staring o , it appears you are looking for better company. By looking at people you aretalking to it makes them feel you are interested in them. It makes them feel they are important toyou and what they have to say is important enough for your attention.Introduce yourself immediately.You wouldn’t wait for someone else to make introductions. As soon as you meet someone introduceyourself and extend your hand for a handshake. Everyone in business shakes hands with everyone else.Neither bone breaking grasps nor wimpy shakes are appropriate. Just a good con dent handshake. Chapter 3Introduce yourself with a statement of who you are and what you do. Systems and is opens up the opportunity for conversation. It is not always enough to say, “Hello, I am Rita TrainingSantamaria.” “Hello, I am Rita Santamaria. I work at Champions School of Real Estate.”Introducing someone to another personIf you are introducing someone to another person the lesser important person is introduced to the moreimportant person. For example, introduce your o ce manager to your more important client. “RhondaJames, I would like for you to meet the buyers I am working with, Briana and Henry Walker.”Upon leaving the introductionUpon leaving the introduction and conversation with whomever you recently conversed, be sure toalways exit with, “How very pleased I am to have met you.” is is another opportunity for a fare-well handshake and smile while focusing on that person.When you are con dent with of the rules for those important initial encounters, you will have a solid startfor long term relationships. 73Copyright© 2009 Champions School of Real Estate™
  • 73. Tips on Gender Communication Yes, ere is a Di erence Whether in an o ce meeting, negotiating a transaction, or having a conversation with the sig- ni cant other, the following information on communication is intended to enhance the outcome of that conversation. ere is no right way or wrong way with the following tips. ese tips are to make us more aware of the other gender’s innate responses during the ow of communication. 1. Men tend to interrupt women more than they interrupt men or than women interrupt either women or men. If during the female’s presentation a man interrupts you, women shouldn’t take it personally. Men are predisposed to doing so. e woman should just take action to regain the oor. 2. Women tend to go into more detail…the supporting evidence. If too much detail, the male tends to lose focus or tune out the conversation. Men tend to want “just the facts, ma’am”. 3. A woman may be talking about a “problem” to build rapport, A Man sees a “problem” as something to x. e woman may feel he isn’t listening; she just wants the male to listen to her. Men should add comments during the discussion so she knows you are listening. Words like: “Oh, Really, I understand, No way, Hoo-hah… 4. Women seek intimacy and rapport through verbal conversations. At work they tend toChapter 3 “Ask opinions” and look for consensus. is can be interpreted by men as being “indecisive,Systems and uncertain,” and this diminishes the females perceived authority by the male.Training 5. Men have a conversational style called “banter” and opposition when talking with other men. Women are inhibited by this style. It’s like teasing to them. ey tend to clam up and not say much. Men sometimes have an attitude of “I’m taking the opposite position just to banter with you”. It is generally “not e ective” with women. 6. Women tend to downplay their authority. While this works well with other women they make themselves “vulnerable to men challenging them and taking some of their authority away.” Women need to assess in what situation they need to assert their authority. 7. Men are more task oriented: What is everyone going to do? Women are more mainte- nance/relationship oriented:“Does everyone feel good about the meeting?” 8. Men perceive that asking questions diminishes their intelligence. ey sometimes act without all the information. So, a woman asking questions may be judged by a male as not being as intelligent as she is. 9. A Man feels more comfortable taking the oor and stating his ideas. Women need to jump into the discussion early on and make several statements to increase their presence and visibility. 10. Men use loudness to emphasize points. Women tend to use a softer voice. is can be misinterpreted as their being intimidated or unsure of what their opinion is. 74 Copyright© 2009 Champions School of Real Estate™
  • 74. 11. Men disclose less personal information about themselves. Women haven’t gotten to know you unless they have disclosed some personal information. 12. Women more than men use indirect communication. “Why didn’t you call me about the problem?” It sounds like indirect accusations. Men on the other hand say directly, “You didn’t call”. ey say they don’t “beat around the bush” like females do. 13. Men who use conversational styles of women are considered not behaving according to cultural expectations. “Women call it being in touch with their feminine side…warm, charming, sensitive…And women using conversational rituals of men are perceived as “aggressive or bossy”.To Review and Sum Up:Female: “Let me see if I’ve got it”.Male: “To summarize for you, #1…#11”Are you a Top, Middle, or Bottom of the Ladder Sales Performer?National franchises place these breakdowns on performance categories: 1. Top performers make up 10% of the sales force in an o ce. Chapter 3 2. Middle of the chart performers consists of 55% of the o ce sales force. Systems and Training 3. Bottom of the chart performers consists of 35% of the o ce sales force. e following is a breakdown of each performance category.Top Performers = 10% ey run their daily sales activities like a business. ey run every day by high levels of activity. enumber of sales calls, appointments made and leads generated are monitored daily for performanceevaluations. is high level of activity is consistent year after year but began early on their new com-mission sales career. ey are “back to the basics” thinkers or fundamentalists in their business procedures. ey havelearned the basic skills of selling and have re ned those skills by practicing, preparation, drilling andrehearsing. Since they are trained in the basics of doing business they don’t get o focus by “newgadgets”. ey stay current with marketing technology but always rely on the basics for assessingthe needs of their clients and being able to respond with solutions so that the client can and willtake action.Once they have ne tuned their skills and knowledge they move into higher end markets anduse the same fundamental practices in these markets with decision makers who help build up theagent’s clientele with direct referrals to their agent.Top sales people use initiative, preparation, and control. Top performers do not wait to be shownwhat to do. ey seek out best practices and processes and then institute them. eir initiative setsthem apart from others. 75Copyright© 2009 Champions School of Real Estate™
  • 75. Middle Performers on the Sales Ladder = 55% Remember these sales people perform above the minimum; however, they are below the maximum performance level. ese performers pay for their desk space, cover their own expenses often including assistant’s sup- port and fringe bene ts as well. ey are doing ne. Only, they are inconsistent with their control and initiative. eir days have spurts of activity. ey may start with a jump but then subside as the day continues. ey don’t consistently work as if “they were running their own business”. is group has wider swings in year to year production. Even they can not gure out why the swings occur. ey need more preparation with their basic skills training. ey need more management time and supervision than top performers. is group tends to be more attracted to the “end of year” awards in the o ce than the net bottom line pro t margin. Solution: Go back to basic training as if you were a neophyte sales agent. Glean everything you can from the education and then prepare, practice, and institute new techniques into your old practice. Become knowledgeable on operating your business as a business. Take a course on small business management. Bottom Step on the Ladder = 35% eir results do not cover their expenses. ey could be here because they are brand new to theChapter 3 business. Just wait with good basic drilling their performance level will shoot up within a short timeSystems and period.Training If you are not a new rookie and you have been in the business for at least 3 years then the following are what has been discovered about you and your performance model. • You generated poor activity from the beginning of your real estate career. • You blame your lack of activity on “the market”, “lack of marketing support from your company”, “the competition has all the right tools and we are lacking”. Complaining about the economy, others, and competition seems easier than looking at your personal track record. • Do you take courses to sharpen your skills or complain how expensive they are? • Do you watch the activity level of top producers and match that level each day with good basic prospecting and follow up? • Do you ask your manager or other good agents in your o ce what they think you might need help with? • Do you take constructive criticism? • Do you truly care enough about your non-performance to do anything about it? If you do care enough and want to move “up the ladder”, then take training again. Pay for a good course. Be accountable for yourself in the course and give yourself a report card on how you have been but now give yourself a new plan for where you are going…Onwards and Upwards. Let your manager/broker know that you are “dissatis ed” with your own performance and to please let you know what they see that needs improvement. Not just for this one day but for the next few months until you both can see an upward change. 76 Copyright© 2009 Champions School of Real Estate™
  • 76. Ask top producers for any tips on how you might better plan your activities. Ask them how theyprepare and initiate their daily activities to be the success they are.“Old dogs can be taught new tricks…if the reward is worth the e ort.”Are you open to Change? Will the reward be worth the e ort?You can do it…start today!Open-Ended Discussion Points for Manager and Agent Review • Are you inspired by your position and what you are doing? Is it challenging? • What do you want to do di erently? • Interaction with colleagues – any di erence this year vs. last year? • Are you pleased with your production this year? • Interaction with clients and prospects– any di erence this year vs. last year? • What inspires you? • What demotivates you? Chapter 3 • How do you succeed at the following on a scale of 1-5 with 5 being the best? Systems and Training Knowing when and what to say to other team members ______ Treating team members equally ______ Planning and executing team meetings ______ Documenting potential liability issues ______ Appropriate training and duties for a new hire ______ Ongoing training for experienced agents ______ Understand current changes in the marketplace, rules, regulations, company policies ______ Recruiting new people ______ Visibility in the community ______ Credibility in the o ce ______ ese are common management challenges: • What position(s) do you want to hire for in the immediate future? • Who are your strongest agents in order of production: • Who are your strongest agents in order of leadership: (Note: ese are the ones you need to have on your side when you implement change.) 77Copyright© 2009 Champions School of Real Estate™
  • 77. Tips for Hiring a Professional Assistant Hiring a professional assistant can be tricky. e experienced agent doing the hiring is wanting someone to help out with the workload in order to increase the agent’s business. However, there are some de nite do’s and don’ts the assistant must adhere to in order to keep their employer’s real estate license safe. e following should be a general guideline for training: Unlicensed Assistants May Not: e laws and regulations of each state govern the activities of an unlicensed real estate assistant. ey are also determined by o ce policy. As a general rule in most states an unlicensed sales agent may not: • Show properties to buyers and answer real estate related questions about: 1. Listings 2. Closings 3. Financing 4. Title Issues 5. Market Conditions 6. Market Values • Host Open Houses and discuss the above information with a prospect • Negotiate, write or amend any transaction • Receive a commission or percentage of a commission based on a real estate transaction.Chapter 3 ey can receive an incentive bonus plus their salary.Systems andTraining Unlicensed Salespersons Can: • Answer phone calls • Register the prospect • Greet Prospects and Give General Information About the Area • Type letters • Schedule appointments • Assemble Closing Documents • Input any and all information for MLS Personal Assistant and Buyer’s Agent Salary Options Paying an assistant You may want to start out with a part time assistant for nancial purposes then go to a full time assistant. It has been shown that an agent’s income increases signi cantly once an assistant moves onto their payroll. Instead of missing the income you are spending on an assistant, agents report they produce not only enough to cover the assistant but have an ongoing increase in their personal production. Most agents pay an assistant hourly plus a bonus on each property after it closes. (Minimum $10 per hour to $? per hour based on prior experience and whether or not the assistant is licensed or not licensed.) 78 Copyright© 2009 Champions School of Real Estate™
  • 78. Some agents pay a salary. e hiring agent needs to consider whether they will pay health insurance,vacation days, and/or sick days prior to the initial interview.An incentive bonus is also a possibility with a salaried assistant. A at fee for a pre-determinedproduction gure that is reached is one method of giving a bonus to the assistant.Buyer’s AgentsBuyer’s agents are very commonplace as the next step in developing your team. Taking the ABR®,Accredited Buyer’s Representative course is a must when deciding to bring your rst buyer’s agenton board to help you produce. e buyer’s agent could be an agent that does not want to work withsellers; it could be a new person who is eager to learn from you, the experienced agent. Utilizing abuyer’s agent frees up the appointment calendar so that your “team” can work multiple businessopportunities (buyers and sellers) at the same time. See our schedule of ABR course o erings.Paying a buyer’s agent is as diversi ed as the agents who desire to be only a buyer’s agent. eexperience and skill of the individual will help determine their compensation. One example is thebuyer’s agent is an employee of the team leader. e agent could be paid a salary as an employee.Another method of compensation for the buyer’s agent is the agent could be paid a referral fee ofthe total commission of the buying side of the transaction. All fees would be negotiated. ere are some agents who receive a 30% referral fee for the rst closing on a referred buyer and alesser referral fee on any future business from that referred buyer. Another arrangement is on the rst referral of a month the fee is 25% to the buyer’s agent, the next referral is 30% and the next is Chapter 350%. Each month it starts over again. e incentive is for the buyer’s agent to continue to be moti- Systems andvated for each new referral. Training ere should always be a written agreement that the prospect or client belongs to the team leader or“Rainmaker”. All terms and conditions of hiring should always be in writing and signed by all parties.Let’s Strive for Utopia in Our BusinessWho has more business than they can handle?You never have enough business…you hire a new agent to train and be your buyer’s agent. You geta large % of what they make. ey are working while you are working and you make approximately1.5x what you would make if it were you alone.Commission sales people are the only business professionals who go to work for free!How much did you get paid when you rst started out? $0, just like everyone else!It has been proven when you hire an assistant you actually triple your production!Let’s strive for Utopia in our business. Utopia being a place where fear, negativism, discouragement,economic stagnation and ceilings on income do not exist. 79Copyright© 2009 Champions School of Real Estate™
  • 79. Broker Agent™ news had an article recently about a New York broker who was on national televi- sion discussing real estate. Her earthshaking message to real estate agents was: “If you are not being rejected, you are not in real estate”. is is the #1 fear of real estate agents or anyone in commission sales. Questions to contemplate: • Do I fear rejection? • Are the people around me damaging my determination to succeed? • What damage is being done to my career by hearing people complain about the unfair system in the o ce, or with leads, etc.? • What percentage of my day is wasted on distractions like stopping o to shop, too much chit chat in the o ce? Success begins with a dream of wanting more. Question to self: “Will I be happy at the end of my career knowing I never really tested my career to see how great I could be?” Figure out how to become more valuable to yourself. Question to self: “Can I expand vertically with more leases, commercial sales, professional assistant, buyer’s agents, and/or adding designations to my name to add credibility and knowledge to myChapter 3 business?”Systems andTraining e exciting dream of a career in real estate is popular since it is not based on the amount of formal education. It is based on persistence, drive and personal motivation to do your best. You are only competing with yourself when you are self-employed. I have the privilege of hearing the stories of thousands of new people coming into our business. One person who comes to mind is our student who slept in his car, and had a health club member- ship (so he had a place to shower and dress for work). at man is now an assistant manager of a large franchise. Has a family of 3 and lives in a 3,000 sq. foot home. is is an example of personal Motivation and Drive… “ oughts Held in Mind Produce After eir Kind.” Remember ese Success Activities at Work: • Geographical or niche marketing – don’t just join – work for service clubs • Handwritten and personal notes of thank you and congratulations • Pep talks when people need it – managers should be doing this all day long • Be on the side of the consumer – this always works and pays o • Set goals – stick to them • Create a business plan with nancial planning for yourself, you are the entrepreneur of your own business • Create systems – keep focused on your systems • Evaluate yourself for e ectiveness 80 Copyright© 2009 Champions School of Real Estate™
  • 80. Take Control of Your Personal Success and Career.Everyday of an agent’s life consists of ONLY 3 Goals for the Day.Put these to memory: 1. Prospect 2. Show 3. CloseMentoring Will Improve e Company’s Overall PerformanceMentoring is about one person helping another to achieve something. More speci cally, somethingthat is important to them. It is about giving help and support in a non-threatening way, in a man-ner that the recipient will appreciate and value and that will empower them to move forward withcon dence towards what they want to achieve.If you are having a large dropout problem after initial hiring, then you have a strong case for a men-toring program. e O ce Manager and CEO must be the enthusiastic Champion – Unless there is a strong, cred-ible person at the helm, the initiative will feel like an additional task to an agent who knows theyalready have a full schedule. e mentor program must be lead by a believer in the program andone with true know how. ( is may not be the manager but the manager has to be fully behind theprogram.)Design a program that ts your culture – e seasoned person helps them understand the culture Chapter 3and can make introductions and the other mentor can help them with making presentations and Systems andother work related activities. A Generation X or Y agent would be perfect for the hands on training. Training ese two mentors even attend their mentee’s performance review.Focus on real issues, challenges, and speci c areas of development – If the program is simply a “feelgood” program, there is less likelihood it will be taken seriously. Mentees and mentors completepro les and then are matched by the manager or HR person. e goal is to match the mentee’sspeci c developmental need with that of the mentor who is skilled in that area.Provide on-going training and other resources for both mentees and mentors – Provide trainingsessions for mentors in order for them to understand their role and e ectively manage the relation-ship. Provide training for mentees to help them make the most of the mentoring experience. is program will be more successful if it is connected to ongoing planning, and performancereviews by mentees and mentors, feedback procedures, and challenging assignments. Provide allagents with the opportunity to become in the mentoring program once you have set your activitieslist and quali cations in place.Spell out the roles and responsibilities of the participants – Mentors should not get between men-tees and their managers or get overly involved in the detail of the mentee’s work. Mentees need tounderstand that having a mentor doesn’t guarantee they will get unlimited access to their mentor.Make the mentor program end with a plan for the future with his/her ongoing training. 81Copyright© 2009 Champions School of Real Estate™
  • 81. GET YOUR CAREER ON TARGET...GET YOUR BROKER’S LICENSE The only designation the general public recognizes is Broker or Broker-Associate. Chapter 4 You Have to Spend Money to Make MoneyChampions School of Real Estate www.ChampionsSchool.com
  • 82. Chapter 4: You Have to Spend Money to Make Money How Do I Acquire More Clients? You must have a targeted plan of action. Your plan must consist of a target market based on neighborhood price range and turnover - age of neighborhood You must have a marketing contact plan that works… Multi-Channeling Marketing Works Best E-Mail: 0.05 % Direct Mail: 2% Personal Call: 6% E-mail, then Direct Mail, follow up with Personal Contact: 10% is is Multi-Channeling! • I know that if I send out 1,000 pieces of mail, I should get a 1% return minimum…or 10 responses. I know if I call those 10 responses, I should get a 50% return on appointments. If I call on 5 property owners, I should get 50% to list with me, or 2.5 houses listed.Chapter 4You Have toSpend Money You Must Become a Specialist in Something or Have a Nicheto MakeMoney • You specialize in the second home market • You specialize in raw land sales for development • You specialize in the Upscale Housing Market • You specialize in the Urban Neighborhoods • You specialize in Master Planned Communities You Tell People Your Specialty en…Act On It • You advertise in speci c magazines, brochures, that correspond with that niche • You get a designation that corresponds with that niche – you will also increase your annual income per NAR® • Your web site corresponds with that niche • You have data in a binder to present to the buyer or seller which shows you have done your research in advance to prove you are the “specialist” in that area of need it is the client is interviewing you for. Let’s add these two factors to the average agent’s income. $45,000 (average agent’s income) $45,000 (average agent’s income) + $83,000 (designation) vs. + $22,000 (broker’s license) _____________________________ _____________________________ = $45,000/yr = $150,000/yr 84 You choose -- More Money with More Education Copyright© 2009 Champions School of Real Estate™
  • 83. Analyze the Client’s Situation • Are they boomers or silents ready to buy the second/vacation home? • Are they gen x’ers planning on moving up? • Are they entry level buyers needing guidance on the entire process? • Are they retirees and or investors ready to put spendable income into investment property?You Must be the Pricing Expert • Price remains the single biggest factor in your success as an agent • You must use a market value analysis that shows what properties have currently sold for. is is the best market value assessment there is. What is price per sq. foot from the comps? • Be honest with the client as to what the CMA is showing.Stay in Touch • Clients for life is really simple…do they know how to nd you? If they have to nd you, you are not staying in touch. • Be involved in projects or volunteer in charities your clients are interested in. • Give them information even when they do not ask for it. Market conditions and data for their neighborhood is always great information your clients want to receive. Chapter 4Advertising by Choosing Words That Sell You Have to Spend Money to MakeWhen it comes to writing marketing pieces for promotion and advertising both you and your prop- Moneyerties there are some words that just do a better job of “call to action”. e Following Words Will Help You Do the Selling:You or Your – “You” is the most powerful word you can choose. It is more powerful than the wordmoney. So instead of writing for example, “my clients say working with me is the best thing thatever happened to them”. Write, “You will notice a huge di erence between my professional experi-ence and that of any agent you have worked with in the past”. “You are the most important part ofmy job. Keeping you happy is my goal.”Money – right after “you” is the word money. People love to save money, and earn money. erefore,using the words, “save you money” makes a huge statement in any advertising piece or campaign.Health/Healthy – people want products and services that help them retain good health or makethem healthier. Advertising the amenities of a neighborhood that have golf, tennis, jogging trails,bike paths, pools add to their desire to acquire that property. Using the phrase, “you will maintainyour healthy lifestyle by using the bike paths, jogging trails in the highlands subdivision…” wouldbe good use of wording in your ad.Guarantee – people want to feel like they have assurance with their purchases with as little risk aspossible. In real estate there are few times we could ever “guarantee” anything. However, if therewere a new roof or foundation repair that came with a guarantee for a period of time, with the guar-antee in writing, you could promote and advertise that guarantee. 85Copyright© 2009 Champions School of Real Estate™
  • 84. Easy – everyone has a hurried pace in today’s world. People want things and tasks to be easy. Using the word “easy” and phrases such as “your process from buying to closing is easy with the Villareal Team of specialists”. FREE – whether it is a free market analysis, free consultation, free estimate, free report try to put something free into your marketing materials. Yes – is one of the most pleasing words to the human ear. Use yes often with your clients. ey enjoy hearing they were right or, you are just agreeing with them, or yes, the work can be done. Quick/Quickly – at every turn people want things done quickly. Whether waiting for loan ap- proval, for an inspection, survey or appraisal to be delivered, clients want tasks done quickly. For example, “you can be assured that I will follow up to make sure all tasks are done quickly and we stick to our time table of 30 days to closing and funding”. Bene t – everyone wants to know “what’s in it for me?” e extra that is received by this selection needs to be presented. “ e bene t of buying in this neighborhood is there is a community pool at no extra charge in your homeowner’s fees.” “ e bene t of buying this house is the school bus stops right in front of your home.” Person’s name – people love to hear the sound of their own name. Use it often during your con- versation, “Marie, what do you think of the landscaping?” Always address marketing pieces to an individual’s name not “resident or occupant”.Chapter 4You Have to Other powerful words include:Spend Moneyto Make LoveMoney Results Safe/safety Proven Fun New Save Now When you advertise in a newspaper or magazine, remember to use the AIDA formula for best results. A = Attention Short vision-creating words that will entice the reader to go further. I = Interest Create interest in the next several words to motivate them to read the rest of the ad. D = Desire Now that you have their attention you have to deliver a bene t to create a need for them to own this property. Choose a major feature of the property for building desire. “ e perfect family room for gatherings by the replace on a cool night.” A = Action Now that you have the reader’s attention you must ask them to move or take action on their 86 feelings. “Call Tina today.” “Easy terms available, call now!” Copyright© 2009 Champions School of Real Estate™
  • 85. To maximize results from your property ads, follow these 10 Tips to E ective Advertising: 1. Collect as much information as you can about the property. Analyze the property to be advertised. 2. Determine the target audience for the ad. Don’t aim your ad for everyone. Who is the buyer prospect for this house or farm or o ce building? 3. Remember people buy bene ts not features. How will the buyer bene t from this house? 4. Every ad should have the location, price and the indication of size of the house. In a survey of what is most important to buyers, 99% stated they wanted to know the location of the property, 75% wanted to know the price and 66% of them wanted to know number of rooms in the house. 5. Never exaggerate. Avoid over used words like: beautiful, spacious, immaculate, nice, lovely. ey are the 5 most over used words in real estate advertising. Never use industry jargon or abbreviations. Always tell the truth. 6. e headline should be attention getting and eye-catching. “What’s in it for me?” 7. Write the ad as though you were having a face to face conversation with the buyer. 8. Close with a call to action. “Call Henry today” 9. After writing the ad review it and ask yourself, “does it inspire enthusiasm?” 10. Keep a copy of all your ads and make notes as to which ones work for you better than others do. Which one inspired the buyer to pick up the phone and call? is will help in the future for all of your ad writing.Will you use these ideas and techniques in marketing? Yes, because it’s easy! Are you going to lovethe results? Yes, because it is free and easy to do! Guaranteed! Chapter 4 You Have toStart today! Spend Money to Make10-minute Activity MoneyIdeas that have come to mind that I want to change and implement:1. ___________________________________ 9. ___________________________________2. ___________________________________ 10. ___________________________________3. ___________________________________ 11. ___________________________________4. ___________________________________ 12. ___________________________________5. ___________________________________ 13. ___________________________________6. ___________________________________ 14. ___________________________________7. ___________________________________ 15. ___________________________________8. ___________________________________ 16. ___________________________________ 87Copyright© 2009 Champions School of Real Estate™
  • 86. Marketing Tips For Major Impact “Basic Marketing Tools” e list of basic marketing tips and tools will get you started in the sales profession by getting your name, company name, and product out in the community. If you need additional income, go over the list and implement some tips you have forgotten to use. 1. Business cards with your picture on it – Quality look and feel 2. Flyers advertising your listings should have pictures showing the major asset of the property – ese yers should be in color. 3. Farming promotionals - Professionally printed and designed. 4. Group o ce pictures – Everyone wearing a single color such as black, white, red, khaki. ese colors are always considered professional power colors. 5. Satis ed customers – Testimonials with picture of customer 6. Billboards, benches, or grocery carts with your name and contact information. Remember to add your picture. 7. Newspaper ads, magazines, newcomer guides. (Do not only advertise in English language magazines, but also in various diverse cultural periodicals). 8. Plastic covering on newspapers or grocery bags with your name and contact information. 9. Write articles for newsletters, newspapers, and magazines - Have your picture included on the article page. 10. Your Web address and e-mail address on everything – Business cards, brochures, yers. Use an easy to remember e-mail address. Try to stay away from numbers in your e-mail address.Chapter 4 ese are too di cult to remember. e best suggestion is kaden@ChampionsSchool.comYou Have toSpend Money “Marketing Tips for Listings”to MakeMoney 1. Send a yer of your listing to Top Producers – Send to other Accredited Luxury Home Specialist (ALHS) members. 2. Open Houses for the general public. 3. Take a picture of the property you hope to list upon arrival and attach to your le (assumptive close) 4. Review the sales contract at the listing presentation - - - - -not if, but when we get an o er, this is what it would look like. 5. Keep a property book or separate contact le of all the properties in your farm for easy reference. 6. Set aside a timetable for weekly e-mails or phone calls with the homeowner for review and update. Use it - - - Do It! 7. Help the seller rearrange furniture to make home show in its best light. Obtain your CHMS Home Staging designation at CSRE. 8. Give the homeowner a list showing what they can expect from you – your “Personal Pledge of Performance.” e agent signs it in front of the homeowner to show commitment. 9. Give the homeowner a list of things they can do to make the property ready for showings. Obtain your CHMS Home Staging designation at CSRE. 10. Use tools of the trade that set you apart as a professional agent: - Financial calculator for loan amortization – Quali er Plus IIIx is great! - Daytimer and briefcase - Measure Mate - digital tape measure - Laptop, UBS cable or portable les, portable printer, memory stick 11. Car signs – yard signs 88 Copyright© 2009 Champions School of Real Estate™
  • 87. “Marketing Tips When Showing” 1. Take your digital camera (Use to help in the elimination process – another close.) 2. Video camera (Send a tape of the home they chose with them to show friends.) 3. Snap shot of the buyer and agent in front of the SOLD sign. is can be used in advertising later. (Get signed permission) 4. Send a “Welcome to Our Town” newcomer package. 5. Spiral notebook with your company and your name on front to be used by buyer for note taking while viewing properties. Use a centralized showing service for easy appointment access.“Marketing Tips in General” 1. Handwritten Notes (to everyone you have conversations with) – Write at least 5 per day. 2. Holidays in the Community – Use these ideas for marketing in your farm: • anksgiving - Pumpkin deliveries - Can Food Drive - Turkey Drawing contest in schools • Christmas - Adopt an Angel - Children’s Christmas Party with Santa - Open House for past and current clients • Valentines Chapter 4 - Heart magnets for refrigerator door with your name, phone number You Have to - A drawing for dinner for two at local restaurant Spend Money • April / May to Make - Spring ower seed packages with company name, your name, web address Money - Take pictures with Easter bunny for neighborhood kids. Put your name on back of picture with your contact information. - Your own creative recipe book to be distributed. • Memorial Day - Flags line the streets of your farm territory with your card attached. - Flags on mailboxes • 4th or July - Drawings for American Flags - Sponsor a bicycle parade or volunteer in your neighborhood. - Host a neighborhood block party. • September - Knocking on doors with back-to-school pencils, rulers, yardsticks, magnets – all with your name and contact information on the tools. - Sponsor a bicycle registration campaign • October - Halloween Pumpkin give-away - Pumpkin carving contest - Trick-or-Treat plastic bags with your name on bags - Halloween Party at the o ce or your home for kids • Sponsor neighborhood Newsletter for each month with your own newsworthy column, or notice of listings sold, use list to sales data, days on market, median sales price data. 89Copyright© 2009 Champions School of Real Estate™
  • 88. • Community Services for Marketing Exposure. Volunteer to work in charities, organizations where your clients volunteer: Chamber of Commerce Church Junior Service League Homeowner Associations Tennis Association Republican / Democratic Party Golf Association Country Clubs Civic Clubs Athletic Leagues or Booster Clubs Various Charity Groups (Heart Association, Cancer Association, Race for the Cure, Diabetes Association, Make a Wish, etc.) “Minor Tips for Major Impact” 1. Hire help! You can use “co-op students” from high schools. Hire a personal assistant – your additional income will more than pay for the assistance. 2. Learn to Delegate! So you can do what you do best. 3. Set up your Personal Marketing PlanChapter 4 - Implement your plan - Refer to your plan regularlyYou Have toSpend Money - Put your plan on a calendar that continually rotatesto Make - Track your resultsMoney - Constantly update and review your plan - Implement - Review - Implement - Review Current Real Estate Creative Ideas ere are always new ways of doing business. Some of the latest directions our industry is moving include the creative ideas listed below. ere are many that need to be considered for each agency and agent. Creative Marketing Ideas • Centralized Showing Companies – they make the showing appointments for you. • Internet accessed MLS for everyone • Contact management programs that sync with all technology • Niche Marketing – specializing in the generational marketing to boomers, Generation X and Generation Y, silents, ethnic markets, athletes, 90 Copyright© 2009 Champions School of Real Estate™
  • 89. • Real estate company’s new attitude of whatever you need, we can nd it for you! is includes temporary housing, permanent housing, dog kennels, etc. Another name is concierge service which includes everything from lawn mowing services to mortgage company services.Creative Ideas From Agents • Teams within an o ce • More Spousal teams than ever before • More middle age agents who intend to take their career straight through retirement which means they will not retire • Personal assistants and buyer’s agents • Di erent cars for showing – big boat caddies are replaced by big boat suburban – SUV’s with plenty of room and refreshments inside are common place • PDA’s – tapping on a screen with a piece of plastic to write down important pieces of information-it synchronizes with Hotsync technology to your desktop just as your inkPad does. is allows you to drive around in your SUV and HotSync with your PDA or Palm Pilot. • What’s new and di erent? A new language! And we use and understand it in real estate – who said we are the last to embrace technology – we just don’t have to hug it!Creative Ideas in Product Design • 3-3 1/2-3 plus lots of closet space (Niche marketing to whom? Retiring baby boomers) • Outdoor cooking centers – “Summer Kitchens” – bar-b-que on the patio Chapter 4 • Digital everything – cooktops, washers/dryers, lighting for indoors and outdoors You Have to • Networked new homes and now older homes are being networked for the family Spend Money convenience of talking to each other! to Make • Speaking of wireless and PDA’s – my brother-in-law in Denver had his new home 2 years Money ago wired so that when he left his home his car garage door opener could turn o all lights in the house or turn them on when he enters the house. • And what are those 3 controls doing on our car visor when you only have need for 1 or maybe 2 if you live in a gated entry? e car mfg. was thinking faster than the builder on what to do with your car! • By the way, a smart man just demonstrated to me how he could use a remote garage door opener to change the slides on my power point presentation! Technology just waiting for us to learn how to nd it and use it! Take Allan Hancock’s MCE Prospering with Trends and Strategies course to learn the latest about technology trends.Building Plans Have Changed – New Ideas Put to Use Here • Old World – Tuscany plans – Why do we enjoy eating in a restaurant or building our homes to look like a cave? • Feng-Shui friendly is new and in the marketplace. By placement of staircase in the home, relationship of front door to back door, placement of master bedroom, direction the homes face, etc. we have a better feel in our homes. Perhaps you are thinking this only for the niche marketing to an ethnic buyer, but commercial o ces across America are inviting space planners to come in and redesign their employees work area to become Feng-Shui friendly! • When will my SpellCheck on my computer catch up with new ideas and changes in this generation of technology? It still doesn’t recognize a word called “Internet, PDA, Hot sync” and de nitely not “Feng Shui!” 91Copyright© 2009 Champions School of Real Estate™
  • 90. Technology Love it or Hate it! We have to Update it! What we use in our o ces demonstrates our commitment to our agent’s success • Tech support for our agents and sta • Updated web site and SEO presence • T1 or High speed internet lines in our o ces and or a wireless environment We do not bundle our services. When cable is out, the fax, phone, internet is out, and consequently you are out of business! • Digital projectors for presentations • Up to date computers for the agents and sta • Internet bar for our clients and customers • Current software and training on the software • Refreshment bar or kitchen area • Up to date furnishings and nishes • Clean, up to date carpet • Furniture is fresh and comfortable • Privacy areas for agent’s conferencing with clients • High speed digital copier that connects to all computers • Signage on building that is readable, professional in design • Policies and Procedures Manual that is regularly updatedChapter 4 • Professionally dressed manager and sales teamsYou Have toSpend Moneyto MakeMoney Tools to Remargin Your Business We have been bedazzled with e-commerce, palm pilots, blackberries, m-life, t-mobile, blue tooth and more. But however overwhelming, real estate professionals must remember that e-business is nothing more than traditional business being done online. M-business in turn is little more than wireless e-business, v-business is basically voice-enabled m-business. So in the end, the new al- phabet soup is nothing more than traditional business restructured. erefore you must re-invent yourself to adapt to using these new repackaged tools. e rst technology wave brought us personal computers (PC’s), Local Area Networks (LANS), and advanced applications such as word processing, contact managers and network communication. e rst wave of communications did away with much of the paper and made it easier to save, le, retrieve and share information. e second wave was the Internet, which expanded the LAN to the public domain. Indeed this development is still a work in progress – with the Internet increasing in size, speed and e ciency almost daily. e third wave is the current deployment of cheaper and faster bandwidth (DSL, cable and T1), which enables the convergence of pre-existing technologies into integrated desktop and software 92 applications. Copyright© 2009 Champions School of Real Estate™
  • 91. e fourth wave, just now beginning is the deployment of wireless high-speed bandwidth thatmakes the desktop mobile. e primary drivers making this possible are low cost bandwidth to thehome and o ce in the form of cable, T1, and DSL and near DSL performance on wireless laptopand palmtop devices. e change in information processing may seem overwhelming and confusing. But real estate bro-kers need not be technologists. In fact, they shouldn’t be. Rather, technology is a tool and like anytool, can be used e ciently only if you know when to use it to accomplish your business goals.Your rst job is to determine what you want to accomplish. at means developing a business plan.Second, you need to choose the right tools to implement that plan. Fortunately there are vendorswho are putting together the tools you might need for success. ese tools can roughly be dividedinto three categories: 1. Communications 2. Informational management 3. Personal or business management1 Stefan Swanepoel & John Tuccillo, RealSure, Inc. Chapter 4 You Have to Spend Money to Make Money 93Copyright© 2009 Champions School of Real Estate™
  • 92. Chapter 5 Liability Quagmires and Record Keeping Quagmire: a difficult, perplexing, or trying situationChampions School of Real Estate www.ChampionsSchool.com
  • 93. Chapter 5: Liability Quagmires and Record Keeping Totally Outrageous Customer Service Service – de ned in Webster’s is something done for others. Something useful, desirable, in addition to goods purchased. ese are your at or after closing surprises. Outrageous – means unexpected and de nitely out of the ordinary! Some examples: 1. SW Airlines – “If the oxygen bags above your head fall down, put yours on rst and then the child’s, or anyone around you acting like a child!” We remember the presentation long after the instructions are over. 2. Macaroni Grill – While dining a waiter on occasion goes straight into opera song. is is de nitely memorable. Totally outrageous service is truly unexpected service delivered that becomes a memorable event. e service is so unusual customers tell others and the customer becomes your “client for life”. Where have we heard that catchy phrase before? I hope we are doing something to deserve it, or it’sChapter 5 not really lasting.LiabilityQuagmiresand Record Here is an example of an outstanding, unexpected service:Keeping At Champions School of Real Estate – this amazing school serves bagels and cream cheese for breakfast…we get many kudos…totally unexpected. What are some ideas you and your o ce are doing right now that are service ideas above and be- yond the ordinary? 1. 2. 3. More… Whether it is your company or more realistically, the individual agent, to have “client for life” service it must be positively amazing. Customer service is not an option, it’s a pre-requisite for survival. Develop an insurmountable ad- vantage over your competitors…with service. e customer wants Fast Service in today’s world. e e-mail inquiry the prospect sent you needs to be replied to right away. e CMA you promised the seller, needs to be there right away. e estimate of closing costs needs to be given to the client right away. 96 Copyright© 2009 Champions School of Real Estate™
  • 94. Part of customer service is asking for the customer’s opinion on your job performance.Ask the customer’s opinion – “How did I do?”Keep in mind if you get a complaint, it is the customer’s request to get it right, to keep your promise.Rules to Work By and Use em in is Exact Order with Your Clients or Agents: 3. *When in doubt – Apologize 4. *Waste no time explaining why things happened as they did. 5. *Apologize 6. *Make amends 7. *Explain what you will do to prevent future occurrences. 8. *Apologize again.Most attorneys say: all the planti wanted before the client plainti led a lawsuit was a simplestatement of apology. Had the defendant simply apologized for an unknowing mistake, in manycases, the unfortunate situation would have never resulted in a lawsuit. Practice saying “I am sorry”often and sincerely.Here Are Basic Principles of Customer Service 1. Remember the customer’s name…use it. 2. Show him he’s been missed if we haven’t seen him in awhile by saying so… “we haven’t heard from you in awhile. Welcome back!” Chapter 5 3. Remember the customer even when he is not buying. Liability 4. Support customer causes. Quagmires 5. Give outrageous or at least outstanding service. and Record Keeping e whole of business is nding a need and ful lling it. When the customer asks, the answer isalways “yes”, period. en we nd a way to ful ll it. Anyone can give away product…it takes brainsto sell it!“ e quality of the people in your business or o ce is the best competitive di erentiation!” 97Copyright© 2009 Champions School of Real Estate™
  • 95. What is Agency? If one person (the agent) acts for, or on behalf of another person (the principal) then we have an agency relationship. is relationship is a duciary relationship, that is, based on trust. While treat- ing all others fairly, the agent places the interests of his principal, or client, rst. e role of the agent can be small or large depending on the situation, but must always be for the bene t of his principal. Some common agency relationships involve actors, actresses, models, and athletes. All are usually represented by agents, who secure opportunities and bene ts for their cli- ents. Most people have insurance agents and many have used an attorney to represent them. In real estate transactions today, the use of an agent is a major consideration. Most consumers recog- nize the need for a professional, although few are aware of all of the bene ts an agent can provide. e parties to a real estate transaction play a variety of roles. e following terms will help you to understand agency relationships and the responsibilities of the parties involved.2 • Licensee – A person licensed by the State Agency to act as a broker or salesperson in a real estate transaction. • Agent – (1) A broker who represents a seller, landlord, buyer or tenant. (2) Salesperson or broker licensees who represent the broker with whom they are associated. • Subagent – A licensee not associated with the client’s broker but who is representing the client through a cooperative agreement with the client’s broker. Also called the other broker. • Salesperson Licensee – an agent of the sponsoring broker. ey may do business onlyChapter 5 through their sponsoring broker.Liability • Broker Associate – A broker associated with and conducting all or part of his or herQuagmires business as an agent of another broker.and Record • Sales Associate – A salesperson licensee associated with and conducting business as anKeeping agent of his or her sponsoring broker. • Seller’s Agent – A broker representing the seller in a real estate transaction. Also referred to as a Seller’s Broker, Listing Broker, or Listing Agent. • Buyer’s Agent – A broker representing the buyer in a real estate transaction. Also referred to as a Buyer’s Broker, Selling Broker, or Selling Agent. • Landlord’s Agent – A broker representing a landlord in a real estate transaction. • Tenant’s Agent – A broker representing a tenant in a real estate transaction. • Client – A person, sometimes called a principal, who engages the professional advice or services of another, called an agent, and whose interests are protected by the speci c duties and loyalties of an agency relationship. • Customer – A person who receives limited brokerage services without establishing an agency relationship. 2 Texas Real Estate Agency, ird Edition by Donna K. Peeples, Minor Peeples III, and John Reilly (Real Estate Education Company, 1998.) 98 Copyright© 2009 Champions School of Real Estate™
  • 96. To summarize, agency is the relationship between two parties, a principal, and an agent. eprincipal is one who hires an agent to represent him. He gives authority to the agent to work forhim. e agent is the one who represents or works for the principal. A simple way to remember thisis to say the principal gives the power and the agent acts.In real estate the principal can be the seller who lists his property for sale, a landlord who needs atenant, a buyer who wishes to purchase a property, or a tenant who is searching for a rental prop-erty. e principal may also be a property owner seeking professional management of his property. e agent protects the interests of one person (or group) in dealings with others. ere are two keypoints with respect to agency: 1. e principal will count on the agent for speci c professional advice. e agent is the “expert”. 2. e relationship almost always involves money or property. e agent must work in his client’s best nancial interests at all times. We de ne this as a duciary duty – one based on trust and we may refer to the agent as the duciary.Types of Agency ere are three categories or types of agency. ese are universal agency, general agency, andspecial agency. Largely the type of agency relationship he is involved in determines an agent’sresponsibilities and liabilities. Chapter 5Universal Agency Liability e universal agent has a broad range of authority to act for his principal. is agency relationship Quagmirescomes with a signi cant amount of responsibility. As a universal agent, an individual has the power and Recordto act for his principal in all transactions. Universal agency rarely exists in real estate. An example of Keepinguniversal agency would be the child who is given Power of Attorney to act for elderly parents andto carry out all nancial and business matters for them. His duties are many and varied and oftenextend to the limits of the law. (In other words, he is allowed to perform all actions that may belegally carried out by an agent.)General Agency e general agent has less authority than the universal agent does. As a general agent, an individualhas the right to represent his principal in a particular type of transaction or business. One commonexample of a general agent in real estate is the property manager. e property manager is respon-sible for preserving the value of an investment property while generating income as an agent for theowners. His duties may include such activities as: • Securing tenants • Collecting rents • Caring for the premises • Budgeting and controlling expenses • Hiring and supervising employees • Keeping proper accounts • Making periodic reports to the owner 99Copyright© 2009 Champions School of Real Estate™
  • 97. In addition to all of these duties, it is the responsibility of the property manager to be knowledge- able and competent regarding a~ the laws that may a ect or regulate his role. Because the property owner has invested his agent with so much authority, the property owner is liable and accountable for all the actions of his agent. Special Agency e special agency relationship is the most limited of all the agency relationships. It is even called a limited agency sometimes. Here, the agent may perform only limited duties for his principal. He is not able to bind his principal. He may not sign or accept any terms or conditions for his principal. He must do only what his principal tells him to do, nothing more, or less. In real estate, the listing agreement is the most common method of establishing a special agency relationship. A buyer’s representation, or tenant representation agreement will also create a special agency relationship. So, a seller’s agent, a buyer’s agent, a landlord’s agent, or a tenant’s agent is a special agent. What is Ethics? • Standards of behavior that tell us how human beings ought to actChapter 5 • What ETHICS is not:Liability • Ethics are not feelingsQuagmires • Ethics is not religionand Record • Ethics is not following the law – a good system of law does incorporate many ethicalKeeping standards Identifying Ethical Standards • Ethical action is the one that provides the most good or does the least harm for all who are a ected. • Ethical action is the one that best protects and respects the moral rights of those a ected. • Simply put: the right to be told the truth, and not to be injured Ethics = Virtues • Virtues are habits that enable us to act according to the potential of our character as persons who tell the truth, are honest, have courage and compassion, generosity, tolerance, integrity, fairness, self-control and prudence. When Contemplating Ethical Behavior • “What kind of person will I become if I do this?” • “Is this action consistent with my acting at my best?” • “What outcome will be derived by choosing this course of action?” Note: When in doubt discuss the action with another person you respect. 100 Copyright© 2009 Champions School of Real Estate™
  • 98. Step by Step Approach to Ethical Decisions 1. Recognize the Issue – “Could this decision I am about to make damage a person or company or community?” • What does it do to people who have dignity, rights, and hopes for a better life? 2. Get the Facts • What are the relevant facts? • What facts are unknown? • What are the options that I have for action? • If you showed your list of options to a person you respected, what would that person say? 3. Evaluate Alternative Actions • Which option will produce the most good and do the least harm? • e answer you should act on is the option that will produce the greatest balance of bene ts over harm. 4. Fairness or Justice • e Ethical action is the one that respects the rights of all a ected. • It treats people equally and fairly. • It helps all participants more fully in the life we share as a family, community, and society. • e Ethical action contributes to the achievement of a quality common life together. 5. Make a Decision and Test It Chapter 5 • If you told a person you respected, the option you chose, what would that person say? Liability • If you had to explain your decision on television, would you be comfortable doing so? Quagmires and Record 6. Act, en Re ect on the Decision Later Keeping • “How did it turn out for all concerned?” • “If you had it to do over again, would you do it di erently?” 7. We all have an image of our Better Selves • Imagine a community, o ce, organization that you can be proud to work for. • is is the image of everyone being at “their best”. It should be the goal of your company to make our society as a whole, ethical in the way it treats everyone. • Can you make a di erence?Identity Theft“Identity theft is one of the fastest growing crimes in the United States”, Attorney General GregAbbott said.Identity theft occurs when someone steals your personal information. is information includingyour name, social security number, driver’s license number, credit card numbers, passport, phonenumbers, birth dates, etc.Entities recently having databases broken into include the Department of Veteran’s A airs, Univer-sity of Texas School of Business. e common fear of the persons who had their data stolen is the 101Copyright© 2009 Champions School of Real Estate™
  • 99. thieves will use their personal data to access bank accounts, open new credit card accounts, obtain long distance calling accounts, and take out loans. In an e ort to help ght what have become as the fastest growing crime in the U.S. – identity theft- Congress added new sections to the federal Fair Credit Reporting Act, FCRA, when it passed the Fair and Accurate Credit Transactions Act of 2003. Privacy, limits on information sharing, consum- er rights to disclosure and accuracy are all addressed. An overview of FACTA: • Every consumer can get one free copy of their credit report each year at www.annualcreditreport.com or by calling 877-322-8228 • Businesses must leave o all but the nal ve digits of a credit card number on electronically printed store receipts as of December 1, 2006. • Employers must destroy all information obtained from a consumer credit report before discarding it. • Consumers who suspect that they are the victims of identity theft only need to notify one of the three credit reporting services to initiate a nationwide fraud alert. ose reporting agencies are Experian, TransUnion, Equifax.Chapter 5 • Mortgage lenders must provide the credit score they use to determine a loan’s interest rate,Liability regardless of whether the loan is approved or denied.Quagmiresand Record • FACTA is enforced by the Federal Trade Commission (FTC)Keeping Reasonable Measures of Destruction include: 1. Burning, shredding, pulverizing documents so they become impossible to put back together or read. 2. Erasing media les or electronic les that contain any consumer reports so they can not be recovered. 3. After reviewing company practices to ensure that they are reasonably designed to protect personal information, some are also hiring outside sources that specialize in destroying personal records. Penalties: • Civil liability. An employee can be entitled to recover actual damages sustained if their identity is stolen from an employer. Or an employer could be liable for statutory damages for up to $1,000 per employee. • Class action lawsuits. If a large number of employees are impacted, they may be able to bring class action suits and obtain punitive damages from employers. • Federal nes could cost an employer up to $2500 per each violation 102 Copyright© 2009 Champions School of Real Estate™
  • 100. is law applies to any business that collects personal information or consumer reports about cus-tomers or employees to make decisions within their business.According to the FTC, a reasonable plan for a company to use to safeguard personal informa-tion includes: • Designating an employee to coordinate and be responsible for the security program • Identifying material internal and external risks to the security of these personal data • Designing and implementing reasonable safeguards to control the risks identi ed in the risk assessment. • Continually evaluating and adjusting the security plan in light of the results of ongoing monitoring and testing of the program, material changes to business arrangements • Creating a mitigation plan. is mitigation plan should kick in when there is a privacy or security breach and there is a need to “repair it” immediately in the eyes of customers, government regulators, and management.Private individuals can take the following safeguard steps to protect their identity from theft: Chapter 5 1. Burn or shred any nancial papers, mail, or credit reports that contain personal information. Liability Never recycle that paper. Quagmires and Record Keeping 2. Call 1-888-5OPTOUT and request credit card companies to stop sending pre-approved credit card applications to your home or business. ese are ticking identity theft time bombs. 3. Also ask your credit card company to stop sending you “convenience checks” to your home or business. ese are identity time bombs. 4. Invest in a shredder that can cut credit cards, data CD’s, diskettes, and staples 5. Delete any e-mail that asks for personal information and instruct your employees and family members to do the same. 6. Hang up on any telemarketers who ask for your personal information. Instruct your family members to do the same. 7. Limit the number of credit cards you hold, both business and personal. Review your monthly statements, nancial records, bank statements as soon as they arrive. e sooner you report an incident the better.For additional information: www.ftc.gov or call toll free: 1-877-FTC-HELP 103Copyright© 2009 Champions School of Real Estate™
  • 101. Con dentiality Agreement is sample form is meant for example purposes only and is in no way complete. Please consult an attorney when developing your company’s Con dentiality Agreement. I agree that information received by me pertaining to _______________, its records of any kind, type are sensitive and con dential. ese records include, deposit reports, client les, client credit card information, data received in my hands based on the business of ________________. Although the complete list of records is not spelled out, the con dentiality of all records is inclusive with this con dentiality agreement by your signature below. e disclosure of con dential information could be damaging to the _____________ business and to its relationship with clients, customers, vendors, service providers and related state agencies. In the event serious damages or losses should occur concerning said described lack of con dentiality of information related to any and all records and ______________ reports of any kind due to my breach of con dentiality, I understand I may be held accountable. Accountability could include loss of independent contractor status, employment, damages by a state agency or court and or federal agency or federal court. I agree that all correspondence, inquiries, consultations, reports presented to me in the duty of myChapter 5 work, consultation, service providership and or position at ___________________ will remain con-Liability dential property of ____________________.Quagmiresand Record is Con dentiality Agreement remains in place forever even in the event an agent, employee, pro-Keeping vider, vendor, consultant is no longer associated with ______________________. Agent: ________________________ Broker:________________________ Date: ________________________ 104 Copyright© 2009 Champions School of Real Estate™
  • 102. Mortgage Fraud SchemesAccording to the FBI each Mortgage Fraud Scheme contains some type of “material misstatement,misrepresentation, or omission relating to the property or potential mortgage relied on by an under-writer or lender to fund, purchase or insure a loan.”Red ags that should be a tip o that might involve fraud are: • Paying an in ated price for the property. For example: List price is $215,000 and Sales Price is $280,000. In this case the seller agrees to accept the sales proceeds only up to the listed price. e excess sales price over the listing price will be paid to the buyers, another person, or another entity. (Often, the appraiser, mortgage loan o cer, and sometimes the real estate agent share in the excess. is is de nitely fraud.) • Last minute changes to the contract in ating the sales price • In ated appraisals • False nancial statements for a borrower • Contract or loan conditions that provide for future improvements to be made to the proper- ty. In these fraud cases the improvements are never made, and eventually the property ends up in foreclosure. Chapter 5 • False or in ated estimates from contractors for the cost of the improvements Liability Quagmires and Record • High fees required of the mortgage broker or to the real estate broker or both KeepingCommon Mortgage Fraud SchemesProperty Flipping: Property is purchased, falsely appraised at a higher value and then quickly sold.What makes this property exchange illegal is the appraisal is inaccurate. ere was a fraudulent ap-praisal involved.Silent Second: e buyer of a property borrows the down payment from the seller or other undis-closed party through the use of a non-disclosed second mortgage. e primary lender believes theborrower has invested his own money in the down payment when in fact it was borrowed. e second mortgage is often not recorded.Straw Buyers: e identity of the borrower is concealed through the use of the straw buyers creditand credit history to apply for the loan.A Fictitious or Stolen Identity: A stolen identity may be used on the loan application. e ap-plicant may be involved in an identity theft scheme. e use of the credit history, etc is actuallyanother’s identity records or history.Foreclosure Schemes: e fraudulent person identi es homeowners who are at risk of defaulting orwhose homes have already been posted for foreclosure. e perpetrator misleads the homeowner intobelieving they can save their homes in exchange for the transfer of the deed and up-front fees paid tothe perpetrator. e perpetrator or fraudulent person pro ts by re-mortgaging the property or pocket- 105ing the fees paid by the homeowner. Often the perpetrator never makes a payment to the lender.Copyright© 2009 Champions School of Real Estate™
  • 103. Equity Skimming: An investor may use a straw buyer buyer’s false credit reports, credit history, to obtain a mortgage loan in the straw buyer’s name. After the closing, the straw buyer signs the property over to the investor in a quit claim deed which relinquishes all rights to the property and provides no guaranty of title. e investor does not make any mortgage payments and rents the property until foreclosure takes place which is generally several months later. Air loan: is is a non-existent property loan where there is no collateral. An example would be where a mortgage broker or real estate broker invents borrowers and properties, establishes accounts for payments, and maintains accounts for escrow. e fraudulent party may set up phone banks where one is used as the employer, another phone line as the appraiser, credit agency is another phone, etc. all fraudulently verifying data. Chunking: e fraudster holds a seminar where unsuspecting attendees are convinced to become investors where they are sold overvalued properties with various promises and guarantees. HUD and FBI generally work together to go after fraudulent persons. HUD states they detect fraud through the following: 20% audits 30% through tips 50% by accident Avoiding Mortgage FraudChapter 5Liability 1. Pay attention: Read every document closelyQuagmires 2. Be thorough: Never sign anything you don’t understand or that isn’t true or accurate, andand Record don’t sign documents with blanksKeeping 3. Seek help: Ask an attorney for advice 4. Research the mortgage broker: go to www.sml.state.tx.us to check out complaint histories with mortgage brokers through the Texas Department of Savings and Mortgage Lending 5. Research the real estate agent you are co-operating and doing business with through www.trec.state.tx.us to make sure they are currently licensed. 6. Be skeptical: Be suspicious of promises of huge returns or pro ts in a short time. Be suspicious of unsolicited contacts from other people wanting to “get you involved in a really great deal”. If it looks like a duck, walks like a duck…it is a duck. Use good judgment and common sense. 7. Check the value: Do the comparable sales approach and verify the facts you are given by others. 8. Look at the History: Review the property’s history to make sure it hasn’t been sold multiple times in a short period to falsely in ate its value. 9. Get an independent appraisal of the property. 10. Move cautiously: Don’t feel pressured to sign documents in a hurry or make a quick decision about a property purchase or mortgage loan. When one is indicted and charged in a fraud case, the person is generally indicted on all the charges that deal with fraud. ese are listed below with the years in prison noted next to the act itself. • False statement: 5 years in prison • Mail/wire fraud: 5 years in prison • Identity fraud: 5 years in prison • Money laundering: 20 years in prison 106 • Bank fraud: 30 years in prison Copyright© 2009 Champions School of Real Estate™
  • 104. What to do if you suspect fraud? • Walk away from the o er or transaction • If you suspect fraud, tell your broker and seek their advice. If the broker does not get involved, and you still feel something fraudulent is transpiring, get in touch with the local FBI o ce or HUD o ce. • If approached by HUD or FBI, do not withhold information • Seek legal council if you are involved in a situation you suspect could be fraudulentSituation: Good credit can attract a bad dealJonathan Begood thought he got a good deal when a friend told him that with his help he couldbuy a townhouse and sell it for a pro t in six months.He promised to pay the monthly mortgage payments and rent out the uptown area home until theydecided to sell it, the friend told Jonathan.But the payments rarely were made and the home was not rented out Jonathan said. Instead ofpro ts from what he thought was a wise investment, the software consultant was left with a homethat cost him more than it was worth.Jonathan found himself entangled in a fraudulent deal to close on the property. He claims thescammer took advantage of his strong credit score, according to a lawsuit Jonathan later led.Mortgage frauds like this one is known as the “straw buyer” scheme. In such schemes, the scammer Chapter 5 nds people with good credit, persuades them to buy homes and promises to pay the notes and do Liabilityall the legwork. Quagmires and Record KeepingUnbeknown to the homebuyer, the crook, usually working with appraisers, mortgage brokers, theseller, or loan o cers, arranges for a bank loan higher than the value of the home and walks awayfrom the deal – leaving the home buyer with a bigger note than expected, an over valued propertycompared to other homes in the area and damaged credit if they fail to pay the note. e scam artist walks away with the di erence between the loan amount and the price paid for thehome when, at closing, he represents himself as a consultant, remodeler, or other service provider.Money is directed to him or thorough companies controlled by him. Sometimes a kickback comesunder the table to the seller. 107Copyright© 2009 Champions School of Real Estate™
  • 105. Cultural Diversity in Our World Today How diversity conscience are you? How important is it to have a culturally diverse o ce? e answer of course is “it is very important to have a diverse o ce”. e buying power increased for di erent ethnicities from 1990-1999 by the following: • African American 73% • Asian 102% • Hispanic 84% We can only imagine what we shall see as % increase between 2000-2010. It will be signi cant. To what degree are you involved in community activities that would allow minorities to notice you favorably? Let’s First Look at Where Cultures Vary with ese Universal Practices ese are suggested practices based on generally accepted rules of etiquette. • Conversational distances – Americans stand arm’s length apart. Most nationalities do not invade the other’s space except the Middle Eastern people. e Middle Easterners typically stand very close to the other person.Chapter 5 • Pointing – not appropriate in any cultureLiabilityQuagmires • Using rst name vs. family name – wait to be o ered the rst name by the other person.and RecordKeeping If not o ered, then, Mr. or Ms. Is appropriate for addressing others • Body contact – avoid body contact; however, Mexicans are friendly with their hugs and kisses upon rst greeting. Don’t be taken aback. • Voice level – keep it lower than usual for other cultures than US citizens. Americans are louder when talking with others than most other cultures. • Hand gestures – palms up shows openness and honesty in most cultures. Try to avoid hand gestures on the whole other than a right hand over your heart demonstrates honesty. • Body posture – try to keep your body size in proportion to your client. Sometimes it would be acceptable to sit down so a taller person would not over power a shorter client. • Personal appearance – always dress up; you will never o end anyone by dressing up. • Willingness to ask or answer questions personal questions – do not ask personal questions without asking if your list of questions are acceptable to ask. 108 Copyright© 2009 Champions School of Real Estate™
  • 106. Common Behavior to Avoid • Putting your hands in your pockets • Using rst names unless given permission to do so by the prospect • Crossing legs and showing the soles of your shoes when doing so • Invading other’s space (36” apart is a good distance) • Direct eye contact • Physical contact • Showing impatience • Telling jokes – just don’t do itNarrow the Cultural Gap with the Following Guidelines: • Use common words in their most common meaning. For example, a dog is an animal not a house in poor condition. • Show appreciation for other’s music, art and customs. • Never make judgments about other’s politics, or religion. • Show respect for those whom the client cares about, their children, pets, grandchildren, charities, church. • Minimize talk in general and parallel the pace of speech your client displays in their communication with you. • Validate the other’s beliefs and opinions.Pacing and Echoing Guidelines Chapter 5Be exible – time means many things to di erent cultures for example: Liability Quagmires • Being 10 min. late is acceptable in Japan but being “on time” is better. and Record • Italians nd being 2 hours late is acceptable. Keeping • In Latin America and Mexico you can be 1 hour late. • Mexico you should be at least 30 min. late out of respect to your host. • Germany and England accept 30 min. of tardiness as being on time. • Americans believe you must show up at exactly the decided time or you are late and maybe considered rude if one is tardy.Agents should be exible and try to match the behavior style of their prospect. e matching can bedisplayed through posture, body language as well as verbal.Keep in mind some clients will want to spend a lot of time talking to you and getting to know you,the agent, prior to getting down to business.Cultural Stereotypes about Americans • Too direct • Too honest • Too quick to show all they haveBy knowing these stereotypes are generally thought to be true, try not to display them. 109Copyright© 2009 Champions School of Real Estate™
  • 107. Some Other Techniques for the Agent to Consider. 1. Make yourself the equal size of your client by keeping arms to your sides and avoid open hand and arm gesturing; keep your personal space more closed when talking and gesturing. 2. Use a bow or head nod to indicate another person – try not to point Super cial Indications of an Individual’s Worth or Buying Power Include the Following: • Dress and appearance • Food and eating habits or manners • Decorum: personal vs. private behavior • Personal manner Stereotyping Exercises for you to Contemplate 1. An African American customer comes into your o ce. e person knows all about you and your business reputation. What do you think this person thinks of you by the o ce suroundings and your demeanor? a. You are inclusive in your work? * b. You are exclusive in your work? c. You need to get your act together?Chapter 5Liability 2. An Asian American walks into your o ce knowing nothing about you. What do you thinkQuagmires this person thinks of you?and RecordKeeping a. you just want to make money b. you will be helpful and responsive * c. you have a bad attitude 3. Fair Housing Issues to Contemplate Advertising only in a strategically limited geographic area that is populated by a particular ethnic group. a. is not a problem b. is a problem * 4. Limiting advertising to a particular religious groups’ newsletter. a. is not a problem b. is a problem * 5. Advertising your knowledge of a language other than English in an English language advertisement. a. is not a problem * b. is a problem 110 Copyright© 2009 Champions School of Real Estate™
  • 108. 6. Promoting a listing with an Hispanic seller only in an o ce that has a majority of Hispanic agents. a. is not a problem b. is a problem * 7. Responding to a buyer when asked about the racial composition of a neighborhood. a. is not a problem b. is a problem *Cultural Diversity in Your Brokerage O ceQuiz Yourself and Your Agents 1. Does your o ce have a diversity-oriented practice? 2. Do you feel comfortable showing property to someone who doesn’t share your ethnicity? Will you have the opportunity to do such? 3. Does the mix in your o ce re ect the mix of your community marketplace? 4. Does your o ce abide by the Federal Fair Housing Act? 5. Do you know that you can not discriminate against someone based on race, color, religion, Chapter 5 sex, marital status, family composition or handicapped persons? Liability Quagmires and Record Keeping 111Copyright© 2009 Champions School of Real Estate™
  • 109. Being Your Own Boss Has Its Rewards What Makes Real Estate Rewarding? e people you work with and the clients you service. e freedom to be on your own schedule, you make your own hours, the boss doesn’t set them. ere is nothing more energetic than the highs of a sale having closed. It’s even stimulating to hang around adults who have the same interests as you. e people we do business with have a mission…to buy property. e people in our o ces are all on the same page with their mission…to list or sell property. We have a lot in common with our business associates. We actually understand each other. How to Have More Enjoyment During Your Day: • Be Happy • Have Joy • Have a Sense of Humor Courage: to be self-employed, take the next risk, know the next month will bring more closings… “It is not what you have lost BUT what you have in the pipeline that counts”Chapter 5Liability Live in the Present – Most people live in the Past or the Future on the “Someday Isle” –Quagmires Enjoy the Presentand RecordKeeping Work family activities around business o ce hours, we have to be “whole persons”. Make sure you choose an o ce that is a family friendly work world. Remember the 3 legged foot stool. Your life is very similar. e three legs consist of business, personal, mental. If any of the legs are o balance, the stool will tip over. Remember the 3-Legged Stool eory e secret of happiness is freedom and the secret of freedom is courage. Courage lives at the core of success. 112 Copyright© 2009 Champions School of Real Estate™
  • 110. HomeworkChampions School of Real Estate www.ChampionsSchool.com
  • 111. Homework 1. A business plan includes: a. Products and services b. Objectives and goals c. Revenue and expense d. All of the above 2. e SWOT analysis stands for: a. Sweat, whine, opportunities, trends b. Sweat, wish, organize, teach c. Strengths, weaknesses, opportunities, threats d. All of these are true 3. Disposable income is that income: a. After paying xed and variable expenses b. After paying taxes c. Which is all income d. at we use to pay our mortgage payment 4. A good daily plan consists of: a. Exercise, nourishment, contemplationHomework b. Must do, could do, should do c. Team building, personal commitment talks d. Counseling with your manager 5. Some myths that might limit your success are: a. You must own a luxury vehicle b. You are too young for real estate c. You are too old for real estate d. All of these are myths 6. In sales the order generally recognized is: a. Sell yourself rst, company second and product third b. Sell company rst, then product then yourself c. Sell product, sell yourself, sell company last d. Sell yourself, sell yourself, sell yourself 7. e things that we must do each day include: a. Prospecting b. Listing c. Selling d. All of the above 11 Copyright© 2009 Champions School of Real Estate™
  • 112. 8. Defensiveness detracts from the goal of building a cohesive team. a. True b. False9. Staging includes: a. Repurposing b. De-cluttering c. Rearranging furniture d. All of the above are correct10. Which of the following are reasons to stage a property? a. ey tend to sell faster b. Move-in ready sells faster c. ere will appear more spaciousness and light when a property is staged d. All of these are true11. Which of the following are elements of design that help an o ce or property become more appealing? a. Balance, harmony, repositioning b. Balance, harmony and emphasizing a focal point as well as considering functionality c. Harmony, focus, architectural style d. All of these are true12. e building industry has a green certi cation known as: Homework a. Green certi cation b. Leed certi ed c. Us building council certi ed d. Us green ach certi ed13. When deciding on a company name which of the following should be considered? a. Ethics in a name b. Accountability in a name c. e name should expose what the company does or sells d. All of these should come to mind14. Systems means: a. e processes and work ows both formal and informal that determine how things get done day by day b. e HVAC system c. e way you divide tasks and coordinate them d. A coherent set of actions aimed at gaining sustainable advantage in the marketplace15. A dynamic o ce environment is fostered by: a. Leading by example b. Encouraging a happy work environment c. Management by positive reinforcement d. All of the above 11Copyright© 2009 Champions School of Real Estate™
  • 113. 16. A speaker is likely to hold the attention of the audience if the talk runs for no more than: a. 12 minutes b. 45 minutes c. 60 minutes d. 90 minutes 17. Communication can happen by which of the following? a. Visual personality b. Auditory personality c. Kinesthetic personality d. All of these are rapport building communication styles 18. Which of the following most in uences human behavior? a. Words spoken b. Voice quality c. Physiology d. Hearing or lack thereof 19. Goal setting involves the following three areas: a. Personal, business, mental/spiritual b. Financial, professional, personal c. Family, community, business d. Political, nancial, spiritualHomework 20. Goals must be: a. Evaluated b. Personal c. Implemented d. All of these are true about goal setting 21. Time management can be planned and implemented by calculating your hourly worth. a. True b. False 22. e majority of an agent’s time should be spent in a. Income generating activities b. Support activities c. Personal time d. Spiritual time 23. Planning gives clarity. Clarity gives power and power eventually equals which of the following? a. Variable income b. Fixed income c. Pro ts d. Net operating expenses 1 Copyright© 2009 Champions School of Real Estate™
  • 114. 24. Goal setting for revenue expectations is important. a. True b. False25. Which of the following should be part of the o ce systems? a. Answering the phone b. Registering a client c. Liability issues and how to resolve them d. All of these are part of the o ce systems26. Expansion of an o ce can consist of: a. Controlled business arrangements b. A commercial department c. A property management department d. All of these can be a real estate rm’s expansion27. Potential liability issues in an o ce can consist of: a. Paper trails b. Agency theft c. Contract law mistakes d. All of these are potential areas28. An organization in an o ce can consist of: a. Branch managers Homework b. Team leaders c. Transaction specialists d. All of these are part of the o ce29. In training sessions, why do we ask questions? a. Questions engage people into conversation b. Questions cause re ective thinking c. Questions make people more accountable d. All of these are reasons for asking questions30. What does an agent want from a company? a. Mentoring b. Technology tools c. Professional development d. An agent wants all of these31. When recruiting new agents: a. Be forward thinking b. Begin with the end in mind c. Know how many people you must interview daily, annually to keep your agent numbers in place d. All of these are important to consider 1Copyright© 2009 Champions School of Real Estate™
  • 115. 32. Change is perceived by employees as a: a. Gain in status quo b. Loss in status quo c. Violation of their psychological contract with their employer d. All of these are correct 33. Existing agents want: a. Consistent advertising by the company b. As many new people as possible in the o ce c. No control over direct mail advertising d. Not to be bothered by the manager 34. In marketing, the correct approach is: a. Direct or personal and then impersonal b. Indirect, impersonal, direct c. Direct, indirect, direct d. Indirect, indirect, indirect 35. Choosing a farm territory should consist of considering which of the following? a. e agent’s comfort level with the neighborhood b. Turnover rate c. Look at the competition in the area d. All of these should be consideredHomework 36. A farm territory can encompass a. Niche markets b. Geographic areas c. Urban, suburban and rural markets d. All of the above 37. When meeting new people you should a. Smile b. Stand up c. Make eye contact d. All of these are important 38. In communication style men tend to speak: a. About past experiences b. About the facts c. Less about their authority d. With many questions 39. Unlicensed assistants can: a. Take a listing with the seller b. Take a buyer out and show property c. Schedule appointments d. Discuss nancing with the clients 1 Copyright© 2009 Champions School of Real Estate™
  • 116. 40. ere are three activities an agent does daily. ese are: a. Prospect, show, close b. Prospect, list, sell c. Sell, close, prospect d. Show, sell, close41. Which of the following are advertising words that sell? a. You or your b. Money c. Quick or quickly d. All of these are selling words42. e last line in an ad should cause someone to move to: a. Attention b. Action c. Authority d. Amazement43. e rst technology wave brought us personal computers. e fourth (and current) technology wave is: a. e deployment of wireless high-speed bandwidth b. e fax machine c. e PDA d. e internet Homework44. e basic principles of customer service include: a. Support customer causes b. Remember the customer’s name c. Make him feel he was missed when he returns d. All of these are good principles for customer service45. Most unhappy plainti s state they would not have gone forward with a lawsuit had the defendant initially said: a. You are unethical b. I am sorry c. You are uninformed d. You are telling a lie46. A broker associate: a. Is working by himself b. Works with the broker of record (designated broker) c. Can work independently of the sponsoring broker d. Can sponsor other agents 1Copyright© 2009 Champions School of Real Estate™
  • 117. 47. A customer: a. Receives limited brokerage services b. Represents the buyer c. Is represented by the selling agent d. Must sign an agency agreement 48. An agent: a. Is a broker who represents a seller, landlord, buyer or tenant b. Is a salesperson or broker licensee who represent the broker with whom they are associated c. May represent buyers, sellers, landlords or tenants d. All of the above 49. A special agent has: a. A limited range of authority to act for his principal b. A broad range of authority to act for his principal c. No rights d. e authority to sign documents on behalf of the principal 50. Habits that enable us to act according to the potential of our character as persons who tell the truth, are honest, have courage and compassion, generosity, tolerance, integrity, fairness, self- control and prudence are known as a. Feelings b. EthicsHomework c. Religion d. Laws 51. Consumers who suspect they are a victim of identity theft should contact: a. eir Better Business Bureau b. e three credit reporting services c. eir state agency d. eir spouse 52. Safeguards for protecting clients from having their identity stolen include: a. Shred all credit reports b. File contracts in a locked and safe place c. Shred paper with personal information d. All of these are acceptable safeguards 53. Designating an employee to be in charge of a security program and to implement a security program is a good idea. a. True b. False 54. A manager should have all employees sign: a. A good neighbor policy b. A con dentiality agreement c. A notice of lis pendens 12 d. A lease contract Copyright© 2009 Champions School of Real Estate™
  • 118. 55. Which of the following are red ags that could be a tip o to mortgage fraud: a. Last minute changes to the contract in ating the sales price b. In ated appraisals c. False nancial statements for a borrower d. All of these are red ags56. Never sign anything you don’t understand or that isn’t true or accurate and don’t sign documents with blanks is a good business practice. a. True b. False57. Common behavior to avoid when working with clients would be: a. Putting your hands in your pockets b. Pointing c. Standing too close d. All of these are correct58. A guideline to follow when working in a culture di erent from yours is to: a. Use common words b. Show appreciation of others music or customs c. Show respect for elders in the family d. All of these59. Cultural stereotypes about Americans include: Homework a. Too direct b. Too dishonest c. Too slow to show what they own d. All of these are true60. Super cial indications of someone’s worth or buying power are: a. Dress and appearance b. Food and eating habits c. Personal manners d. All of these are super cial 12Copyright© 2009 Champions School of Real Estate™

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