jennifer allan’s blog

Just in the last week, I’ve run into three people who are walking away from their houses. As in… “Mr. Bank, here are the keys. I’m really sorry.”

All three are professionals in the real estate industry - two are mortgage brokers; one is a real estate agent. All three have the earning potential to carry the properties they’re letting go, but at a steep cost.

Walk-awayer #1 owns a trendy loft in downtown Denver. He owes around $600,000 on it, with a monthly payment of $3900 + a $485 HOA fee. The last comparable sale in the building was at $430,000.

Walk-awayer #2 owns a beautiful home on a golf course. She owes $750,000 on it, and a comparable home down the street has been on the market for almost a year at $650,000. She can no longer afford to pay the mortgage, as her own mortgage business has taken a real beating.

Walk-awayer#3 owns a rental property that is worth about $45,000 less than she owes on it. Her adjustable loan is coming due for adjustment which will add about $275/month to the existing payment of $1500. The property rents for around $1250/month. It’s located in a stable market; it’s not likely to depreciate, but neither is it likely to appreciate much.

All three of these walk-awayers have analyzed the situation and reached the same conclusion. It simply isn’t worth the brain damage to try to hold onto these properties and it’s not the financially responsible thing to do for their families. Of course, being in the biz, they are fully aware of the impact a foreclosure will have on their credit score, but have decided that the trade-off is worth it. Preserving the FICO score simply isn’t enough justification to risk financial ruin.

Sure, it’s a real drag for the bank who holds the mortgage and I won’t jump on the bandwagon of those saying that the “Banks Deserve it!!!” But neither will I criticize the decisions of my three friends by dismissing them as “irresponsible borrowers.”  Both sides will suffer, but when it comes down it, my friends need to protect themselves and their families first.

At least, that’s my opinion. What’s yours?

Do you ever do this… apologize, or even make excuses for something you SHOULD have done right… but it was kind of inconvenient, so you came up with an explanation? For example… you run out of toner in your printer while creating a CMA for a seller prospect… so you apologize for not bringing the CMA with you to your listing appointment? Or you’re feeling fat, so you wear your overalls to a coffee date and apologize for how you look? Or you don’t feel like washing your car… so you apologize to your new buyer for the condition of your automobile?

I’ve done all three of these in the last week alone. In fact, as I write this, I’m sitting at my computer in my overalls (okay, so they’re designer overalls, but still) trying to work up the energy to change* before a dinner date with my friend Lezlie.

There are all kinds of opportunities in this world to mess up or otherwise demonstrate to the people you know and the people you meet that you aren’t on top of your game. These opportunities present themselves on a pretty regular basis, often without warning, so I’m thinking that anytime I can actually control a potentially credibility-killing situation, I should take advantage of it. When I run out of toner… I should buck up and go pay $35 for a replacement cartridge at Office Max (as opposed to $3.84 at my favorite online toner store www.inkamerica.com). Similarly, if I run out of nice paper in the middle of preparing said CMA, I really should take that 20 minutes and go buy some more. And how long does it take to run your car through a car wash and vacuum out the inside?

We’ve all heard how You Only One Chance to Make a First Impression. Don’t let a little laziness (or feeling fatness) damage your next opportunity to make a great one…

 * Nope, I didn’t change. My laziness got the better of me…

Earlier this week, Janie Coffey hosted a teleconference for the participants of my Savvy Prospector program about the magic of niche marketing. I was spellbound by the material and it really made me think about how this business actually works…

Back to Janie in a sec.

We’re all looking for a magic bullet, myself included. While I know I’ll have a mortgage payment due NEXT October, I’m far more concerned with the one due in 25 days, the one due in 55 days and the one due in 85 days. 

But you know what? Next October will be here before you know it, and THIS October will be a distant memory. Where do you want to be next October? Do you intend to still be selling real estate? Or do you reckon you’ll be doing something else by then?

Of course, we all figure we’ll still be real estate gods and goddesses and we’re all optimistic that things will have turned around by then. Those of us who have stuck it out through these difficult times will be talking for years about how we survived the 2007-2008 real estate season and are now better agents for it.

So, if that’s the case - if you really wanna be selling some real estate in a year… in two years… and for many years after that, perhaps now would be a good time to start planning to do just that.

Okay, back to Janie. Janie has created a niche market for herself in South Florida as the Horse Realtor. She began her campaign to be the go-to agent for horsey people about a year and a half ago. Today she’s working with five developers across the country (the world actually) who want, heck NEED her expertise in horse properties. They’re coming after her!

But that didn’t happen overnight - nope, it took a year or so to build her reputation as someone who knows horse properties. A year ago, developers weren’t beating down her door, but I’ll bet if you ask her, she’ll say that these last 12 months have flown by and she’s thrilled with the long-term results of her efforts.

There are a gazillion things we can all be doing today to ensure a happy next year. And then be tickled with ourselves when next year rolls around and we’re enjoying the fruits of our labor.

Okay, Jennifer, Miss Smarty Pantz, what can we do today?

1.     Blog. Blogging is a long-term prospecting strategy. If you want to become a specialist in your market or in certain property types or certain client types, get blogging about them TODAY. In a year, you’ll be glad you did.

2.       Nurture your personal relationships. Especially if you’ve approached the people you know as a salesperson first and a friend second or third or fourth, you may have some repair work to do. Starting today - drop the sales pitch and start reconnecting with your SOI as a real person… who cares about them… who also happens to sell real estate.

3.       Take a little extra time with not-yet-ready-to-buy-or-sell prospects. Treat them respectfully and stay in touch. Never shuttle a potential future client out the door because they aren’t leading you to a paycheck within 60 days. They could very well bring you a paycheck in 180 days.

4.       Become a Master of Your Market. The only way to really know and understand your local market is to be out in it. Take three hours a week to preview homes. Visit open houses two Sundays a month. Go to every Broker Open you’re invited to. Read the neighborhood newspapers.

5.       Make your current clients your top priority (yep, ahead of your prospecting efforts). Go above and beyond for your sellers and buyers. Believe me, they’ll notice and they’ll remember. And will reward you for your efforts for years to come.

It’s possible that NONE of these five activities will result in a sale in 30 days or even 60. But if you’re in this for the long haul, I guarantee that in a year, you’ll be thrilled with the results.

Friday, September 5th, 2008

Okay, so my house went on the market at 5:30 am this morning. It’s now 7:51 am. Soon, the phones will be ringing off the hook (at my showing service anyway) to show my classic little Bungalow.

At least, that’s the plan.

I priced the house to sell, hopefully, but you always second guess yourself, especially in these first few hours/days of a new listing. Of course, like any other seller, I don’t want to “leave money on the table” by underpricing, even though I know that in a decent market (which mine is), that’s almost impossible. If it’s underpriced, the market will recognize it as such and adjust accordingly. But… still… it’s oh-so-tempting to tack on another $10,000, just in case… right?

However, I managed to restrain myself.

But now I sit and wait. What if… I get 25 showings today, which means I underpriced? What if… I get NO showings today which means… ? Well, who knows what it means - it’s only the first day! But I know I’ll be bummed if that happens.

It’s so easy to be cocky about price and condition before you’re out there in the world to be judged by the buyers and their agents. But the minute that MLS number goes live… suddenly you feel vulnerable. What if someone notices the sticky drawers in the built-in linen closet? What if they notice the noisy ceiling fan in the bedroom - shoot! I should have fixed it! What if they don’t like the somewhat amateurish dog-door installation in the back door? I should have replaced it! Oh, why didn’t I stage the basement bedroom?

It’s a veddy good experience for a real estate agent to be on the other side of fence every once in awhile…

VIRTUAL TOUR: http://www.cpgtours.com/1922

I posted a blog on Real Estate Radio USA (www.realestateradiousa.com) entitled “So, What is a “Good” Real Estate Agent?” I thought it was a fairly innocuous posting - and not worthy of argument, but apparently I underestimated the ability of the RERUSA crowd to argue!

Check out the blog and subsequent commentary below my bio… I’d love your thoughts!

http://www.realestateradiousa.com/blog/2008/08/15/what-is-a-good-real-estate-agent/

I’m hoping to get my sweet little 1927 Bungalow on the market next week! Prices keep going up, if you can believe it, but I’m not taking any chances. I always get my own properties pre-inspected before I list them, and then fix all the nickel & dime items that come up. And, of course, any Big Ticket items, although I’m not expecting any of those. Maybe a new roof on the garage.

I figure I’d rather control the repair process, rather than have a buyer tell me how to make the repairs, and by whom. For example, I have a fantastic handyman who can fix just about anything, but a buyer will always insist on a “licensed electrician” or “licensed plumber” to fix leaks under sinks or reverse polarity in outlets. So, nope! I’ll get it done myself ahead of time!

Hope it goes well… I’m also trying out a new inspector - my regular one is fabulous, but he’s on vacation… [insert sad face].

The Democratic National Convention is in Denver. Being the anti-politico/anti-news kinda gal I am, I’ve barely noticed, even though it’s all taking place within easy biking distance from my house (and yep, I tried to rent out my house for $500/night, but no takers - sigh). And besides, I’m not a Democrat, although I do have “lots of friends who are Democrats.”

One of these friends invited me to a DNC gathering on Tuesday night to listen to Hillary. The gathering was held at a sushi bar here in my ‘hood, so it seemed like a good idea to go (y’know, SOI-opportunity and all). Yikes. I probably should have known better.

From the minute I arrived, I felt like a fraud and realized I should probably sneak out at the first opportunity. But alas, I was hungry, and I love sushi, so I stayed. As the party ramped up, I realized that the point of the party was to organize the supporters’ efforts in canvassing the neighborhood with door-knocking and cold-calling campaigns. Oops.

I was approached half a dozen times by different organizers asking me what I was willing to do to spread the word thru my ‘hood. I felt like the atheist at church camp asked for her “testimony” of how she found her faith. Not only am I not a Democrat, there’s no way on God’s green earth I’m gonna knock on ANYONE’s door or make ANYONE’s phone ring to talk about ANYONE’s political beliefs.

Why? Cause I don’t like to be bothered at home! Not by Democrats, not by Republicans, not by Girl Scouts! The only people I want ringing my doorbell are Fed-Ex, UPS and that dude with the gazillion dollar sweepstakes check. I certainly am not open to strangers knocking on my door asking me who I’m voting for.

Okay, so back to the party. I bravely expressed my viewpoint on the topic - that I don’t like to be disrupted at home and therefore will not do it to others. Oops, again. That viewpoint was not welcomed in this crowd. I was lectured; even scolded for my “perspective” and I felt like a naughty little girl (but be assured, I did NOT change my tune).

But here was the funny part. A few weeks ago, a guy knocked on my door, with an Obama pamphlet in his hand and asked me who I planned to vote for. Hmmmmm… last time I checked, this was a private matter between me and my ballot. I don’t remember how I dodged the question, but I told this story to one of the women who was trying to get me to change my “perspective” on door-knocking - I said “a perfect stranger comes to my door and asks me I’m voting for - I think that’s obnoxious,” and she said “Well, didn’t he introduce himself first?” Uh, yeah, but since when does knowing someone’s name obligate me to share my voting record with them?

She also asserted that because we were both Democrats (shhhhh, don’t tell), I shouldn’t have been annoyed at the disruption, or mind calling other Democrats myself and disrupting them. As if belonging to the same political party changes my very basic belief that people, in general, don’t like to be bothered.

 ARghghghghhghg…. I guess I have some fun times to look forward to over the next two months - dodging the doorbell, screening the phone calls. Maybe I COULD volunteer to make the calls and if the person doesn’t want to talk politics, I could always toss in a “Oh, by the way, do you know anyone who wants to buy or sell real estate?”

My little NW Denver house is a beehive of activity - getting ready to go on the market. Painters, carpet dude, tile dude, plumbers… all are finally showing up and getting stuff DONE! Oh, and I’ve already had it staged - all the work being done right now is on the exterior and in the basement and the stager had a free day… so the upstairs looks fabulous and the downstairs is a disaster. But it’s gonna be cool!

Prices here in my ‘hood are still going up and houses are still selling… Amazing! Could I actually have great timing on a home sale???

A few days ago, one of my articles was featured at Realty Times. It was one I wrote for Ricardo Bueno’s Blog Project - “Building a Community Around Your Blog.”

The title of my article was “Successful Blogging for Real Estate Agents - Don’t be DORKY!” I was rather proud of it; thought it was well-written and clever and even a little insightful. Well, apparently, Realtor.org thought they could do better.

Here’s my version.

Here’s their version — that went out to many of you in the daily Realtor.org magazine. Lots of agents wrote to me “congratulating” me on the feature.

Well, I was tickled to learn that Russell Shaw at Agent Genuis (www.agentgenuis.com) picked it up and ran with it. He so GOT the irony of my advising agents not to be DORKY when they blog… summarized in an amazingly DORKY fashion by the editors at Realtor.org.

Check it out…

Last week, at 41, I had a “first time.” Well, sorta.  I did my first official live & in person training class for real estate agents. Oh, I’ve done lots of training classes for real estate agents… online and on the phone. I’ve also done lots of public speaking … about health insurance (my past life). I’ve even done live presentations to real estate agents… but they were short promos in conjunction with the release of my book.

I just hadn’t yet put it all together and done an honest-to-goodness-more-than-45-minute-interact-with-the-real-estate-agent-audience training session. And you know how something you haven’t done yet (but know you need to do) can scare you to death, especially the longer you don’t do it?

Oooooooh, all the things that can go wrong… maybe no one will show up and you’ll be speaking to an audience of one. Maybe you’ll get off to a bad start and alienate your audience before you even get warmed up. Maybe your two-hour presentation will be over in 45 minutes because you nervously spoke at three times your normal pace. Maybe no one will ask any questions during the Q&A breaks. Speaking of breaks, maybe no one will return after the mid-session 5-minuter… Oh, yes… so much that can go wrong.

Well, none, and I mean NONE of these things happened. Just the opposite, in fact. We had a standing-room-only crowd (not only did just about everyone show up; many brought friends!), my introduction went perfectly, we ended about 15 minutes late and everyone stayed even though I gave them permission to leave, I got lots of great questions and no one bailed at the break.

And I had FUN! I LOVED it! I didn’t want it to end, seriously! I coulda’ stayed on that stage all day long and happily come back for more after a dinner break.

This is huge for me. If I want to be a rich and famous writer, I need to be comfortable speaking to audiences (it’s part of the package - selling books alone is not a well-worn path to prosperity). But to tell you the truth, I’ve balked at the notion ever since Inna informed me last year I had to do it. Oh, I had all kinds of excuses… I’d have to pay for a dog-sitter while I was traveling, I have a real estate business to run, I’m not entertaining enough to keep anyone awake, I’m really bad at pre- and post-show small-talk…  but the truth was that I was scared of failing; of making a fool of myself. Of doing the wrong things with my hands or nervously swaying at the podium or saying “um” after every fifth word - all the things you read about in the “How to Wow Your Audience” self-help books.

I have at least a dozen invitations to speak to groups across the country that I’ve been subconsciously putting off because I wasn’t sure of my ability to deliver. But now… I can’t WAIT. I HAVE a message to share and I know I’m perfectly capable of sharing it in an entertaining, informative, don’t-worry-you-won’t-fall-asleep manner.

Bring on the dog-sitter!