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The Intelligent Price Reduction Strategy

If you’re a typical Real Estate agent, you’ve probably got about $100,000 worth of uncashed commission checks in your desk drawer, or as some people refer to them—your collection of over-priced listings. 

It’s kind of like that stamp collection you had when you were a kid.  You still have the stamps; you just never look at them anymore.

The only difference is your stamp collection is probably NOT worth $100,000.

Here is the standard list of excuses used for NOT fixing your problem, and NOT being $100,000 richer. Pick your favorite!

  1. You’re too busy (chasing after new business, rather than taking care of the business you already have)
  2. Your clients are stubborn and won’t listen to you
  3. You’re bad with confrontation
  4. You’ve got a showing booked for Friday, and you’re hoping for a miracle!
  5. The market is awful, so there’s nothing you can do
  6. You feel dumb for recommending the price in the first place
  7. (Insert your...
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The "Pocket Listing" Myth

The MLS System is BY FAR the most important tool we have in Real Estate.  Can you even imagine imagine how we would function today without it?

The old codgers around the office have some stories, I tell ya!  I guess when you got a new listing, you’d be on the phone all day with all your REALTOR® buddies:

"Hey Vern, I got a beauty coming on in Old Town.  She’s got everything!  Orange wall-to-wall, pink plumbin’ fixtures, electric oven, the works!  Puttin’ ’er on for $24,900!  Hop in the Studebaker and come have a look-see!"

Not to make fun of the old codgers in the office, but holy cow!  What a grind!

Folks, we’ve got it made compared to the old days.  Don’t forget it.

Here’s my question:

With an incredibly powerful tool like the MLS at our disposal, why would anyone ever try to sell a property and NOT use it?

This is like trying to sell your car by standing on a street corner with a...

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Calling for Calling's Sake

general real estate Jun 06, 2019

The other day, I ran across this post on a REALTOR® Facebook group (paraphrasing):

“I’ve got a large list of leads that another agent gave me, but they’re really old, and most haven’t been contacted in over a year.  Any advice on a script to use when I call them?”

There was a whole bunch of “helpful” suggestions from other agents, on what to say and how to approach the situation.

I was dumbstruck.  But here’s what I should have said:

Throw them in the garbage!

SURELY you have something better to do with your time, than chasing after stone cold “leads” (?).

Another similar situation came up with a coaching client.  This guy is good.  He works hard, and he’s disciplined.  But he’s following a program he learned from someone else, and he takes it a bit too literally.

The program states that you must contact a certain number of people in your COI daily.  Well, he doesn’t...

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You Were Right

If you’re a professional REALTOR®, you probably started your career full of enthusiasm, with high ideals that you were “going to make a difference” by providing outstanding service to your clients.  They were going to you and your business would flourish, as a result.

Then “reality” set in.  Some other REALTOR® broke the news to you, “That’s not how it works!  Here’s what you gotta do:

Call crappy Internet leads and FSBOs and Expireds all day, using scripts that were developed 50 years ago, “If they say THIS, you say THAT.

"Here’s your scripts; learn ‘em.  Here’s your prospect list; call ‘em.”

Doesn’t that sound dumb when you read it out loud?

If that’s not bad enough, now it’s all the rage to PAY for leads.

Hahahahaha!   PAY for leads?

Guess what?  Those leads are garbage, too.  You wanna PAY for garbage?

News Flash!  You...

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Good is the Enemy of Great

Jim Collins opened his book Good to Great with the statement, “Good is the enemy of great.”

He explains that this is one of the key reasons why we have so little that becomes great. We don't have great schools, principally because we have good schools. We don't have great government, principally because we have good government. Few people attain great lives, in large part because it is just so easy to settle for a good life.

One of the conclusions of Good to Great is this:

“Greatness is not a function of circumstance. Greatness, it turns out, is largely a matter of conscious choice, and discipline.”

If you want to be a great REALTOR®, you’ve got to stop settling for “good enough”. 

You’ve all encountered great REALTORS®, and I’m not talking about the “celebrity” agents; the ones who spend hundreds of thousands of dollars marketing themselves.

I’m talking about the quiet ones, who...

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The Truth About Real Estate Training

general real estate May 09, 2019

When it comes to choosing a REALTOR®, one of my core beliefs is that the public is best served by having direct communication with a knowledgeable, skilled, customer-service-focused individual agent (or partnership).

I was a top-performing individual agent for my entire career, earning between $590,000 and $865,000 from my second year–on.

When I first started in Real Estate, I realized right away that I was severely lacking in the level of knowledge and skills that I expected of myself, in order to feel like a true professional.

Let’s face it; it doesn’t take long to figure out that the stuff they teach you in “REALTOR® School” is woefully inadequate in the real world.

Compared to my previous business career – where I was regarded as an industry leader as the founder and president of a $50M company – when I first started in Real Estate, I felt like a fraud.

I mean, why should anyone trust ME – with such a minimal level of...

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How to Stop Making Misteaks

general real estate Feb 07, 2019

Remember before you became a REALTOR® and you thought about what a fun and rewarding life it was going to be?  You were going to spend all your time looking at amazing properties, socializing with the coolest people, and cashing fat commission checks!

LOLOLOLOL!

Little did you know the volume of blood, sweat, and tears, required for every single one of those commission checks, many of which are surprisingly gaunt, when compared to the effort expended.

Worse yet, if you’ve been a REALTOR® for any stretch of time, you have most certainly wasted gallons of blood, sweat, and tears over a period of months, with certain clients, and…

Poof!

Something went off the rails, and you now have NOTHING to show for all that time and effort.

The truth is that this business can be like a maze sometimes; it’s easy to make a simple mistake, forget where you are, turn the wrong way, and… Poof!

I’m guessing that you lost at least $50,000 in commissions last...

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The Big Box Team

There are many different business models in Real Estate.  Here is my analysis of a typical Big Box Team, of which there are numerous in every major market:

  1. There is one team leader and any number of “junior agents”. I use the word, “junior” loosely, understanding that not all team members are necessarily young and inexperienced.  But let’s be real; most of them are.  It’s a common path for brand new agents to join a big team, anticipating that they’ll be mentored by a seemingly successful “mega agent”.
  2. The team leader’s primary focus is to LIST as many properties as possible. The more “inventory”, they have, the better! 
  3. The listings are used to generate leads, which are doled out to the “junior” agents. Their primary responsibility is to chase those leads down and convert them to buyer clients;
  4. No inventory = no leads = no junior agents = no extra commission checks for the team...
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