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In This Issue   New Year, New Outlook
 

Redefining Hero - Carol Clark, Red Deer, AB

Planning Made Easy

Justin's Travels - Justin Rushdi, Halifax, NS

The Discount Myth, An Anthology of BS, by Sheldon Johnston, Edmonton, AB

Network News Poll, Click to vote:

What do you think will happen to the national real estate market in 2006?

Pop! There goes the bubble!

A correction, but nothing major.
About the same as '05.

Records, records and more records.
  
Free polls from Pollhost.com
     

It's been a while since we've done an issue of Network News...partly because I was busy getting licensed - yes, it's official, now you can send your referrals to me instead of Sheldon - and partly because of the busy holiday season (three provinces in two weeks). Oh, and you can add to that Sheldon is recovering from having surgery last week. Plus, it takes us a fair chunk of time to put this rag together and keep things current, so we hope you find something of value in it.

In this issue we're focusing on planning - planning your business for '06, and planning to beat those annoying discount/DIY companies that keep popping up. Did you know CanadaByOwner.com just launched and in 1 month has over 500 listings on their site? Yet another FSBO site that you can choose to hate, or embrace. There will always be companies out there trying to take a piece of the real estate pie. You can't change what anyone else does, so adapt yourself to this ever changing industry.

I say we use the FSBO sites to prospect for leads. Go to CanadaByOwner.com, click on Buyers, Listing Updates, and sign up to be notified automatically by e-mail whenever new listings come online in your area. Then do this for all the FSBO sites you can find, and systematically contact the FSBOs as soon as they "list" their properties for sale (our website through Point2Agent allows us to create customized e-mail campaigns to keep in touch with potential clients automatically). We all know that the vast majority of people who try to sell on their own end up using an agent, so why not be the first in line?

Speaking of web sites, our new Point2Agent site officially launched in December, and we are seeing fantastic results. Our leads have increased dramatically as our site is now picked up more and more by the search engines. Try it yourself, search for Edmonton real estate company on MSN and 3 of the top 4 listings go to our sites. We've stopped paying for search engine placement and now get twice the leads as when we were paying. All our leads are automatically contacted every 10 days by e-mail through completely customizable stay in touch campaigns included in the Point2 system. Don't forget, you can create your own free Point2 site today.

Thanks for reading, Sara.

 

Carol Clark
  Redefining Hero
 




Agent/Owner
Coldwell Banker ONTRACK Realty
Red Deer, Alberta


carol@ontrackreddeer.com

2004 Awards Designation Level: President's Elite

 


     

Every one of us has someone that has inspired us by their courage or actions. The Oxford Dictionary defines a hero as:

hero - noun ( pl. heroes) 1 a person, typically a man, who is admired for their courage or outstanding achievements. 2 the chief male character in a book, play, or film. 3 (in mythology and folklore) a person of superhuman qualities. ORIGIN Greek heros.

I cant for a second accept that definition when one of the first people I think of as a hero is a woman. Coldwell Banker Canada recognized her with the President’s Award of Honour in 2005. Carol Clark, agent/owner of Coldwell Banker ONTRACK Realty may at first appear as the anti-hero (see oxford definition here) but as you will see she is much more than a kickass agent. With over a decade of constant top performance, she has achieved so much, with many obstacles to overcome.

Since I have known her adversity has been a constant that Carol has lived with daily. She has two mentally challenged boys in a family of four, as well as custody of two of her young grandchildren. Carol currently cares for 5 children and if you were to ask her how she does it she probably couldn’t tell you. I asked her right-hand assistant Kelvin Kloss who says simply she works hard, 7 days a week.

Carol is perennially listed among the top performers in the country, even in a year when she had two hips replaced. During this time she also managed to grow her company to 55 agents, and move into a very nice new location. Previous to that Carol had driven of the road after working late one night, leaving her with a cracked back from which she was lucky to recover. Through all this adversity Carol always has a warm smile. Her clients love her, knowing that she will be there for them no matter what. When many agents would fold up shop and walk away, Carol reaches deeper, and goes well past the call of duty.

Her associates don’t just work at ONTRACK, they are a part of her extended family. She knows everyone of them personally and what’s going on in their lives. Carol is always ready to lend a hand, helping and encouraging her agents to achieve their goals. This Christmas the office presented her with a custom made, 14-carrot gold watch to show their appreciation.

It has been my privilege to get to know Carol over the past decade and to call her a friend. In the days of competing for the top 10 in Canada I was often a step ahead or behind her. I was determined to meet and introduce myself to this person who had unknowingly inspired me. That was the beginning of a beautiful friendship and shows the power of networking.

Of course I could go on with countless stories of her loyalty, courage and professionalism, but so could anyone who knows this very shy woman from Red Deer. Carol, you are one of my heroes.

Sheldon.

 

Planning Made Easy

 
New On The Blog
 

We all know we're supposed to do it, but so often in this industry we ignore the important planning and prospecting for the future in favour of what is right in front of us. Ask any coach, or mentor, or "industry expert" and they'll say, not having a plan is the first mistake unsuccessful real estate professionals make.

Unless you're that rare type of individual who really loves creating plans and finds it easy to stick to them, you should probably keep reading. Success in this business depends on many different factors, but remember that you define your own success based on your needs and desires. Trying to copy what the top agent in your office does only works if you have the same skill set, and the same goals.

So what is your goal? It should lie somewhere in that imaginary space between what you need to earn (to cover your basic living expenses) and what you'd like to earn and how much time you'd to spend earning it. How do you attain that goal? Well that's where it gets a little trickier. There are tons of articles, books, and systems with suggestions on how to plan your business, and they all share a basic philosophy:

  • Determine your goal
  • Figure out how many deals you need to do to meet that goal. This is the tough part - lots of math
  • Taking seasonality into affect, determine the number of deals you need to each month
  • Next, figure out how many leads you need to generate to those deals, and then how much prospecting you need to do to generate those leads.
  • Break that down to the amount of prospecting you need to do each day, so your daily goal, makes it easier to attain your annual goal. Oh, and don't forget to compare what you're supposed to be doing each day, with what you're actually doing.

Easy...right? Well, maybe not. I found two software applications that can make your planning easy - plug in your goals, expenses, commission split, seasonality etc., and the software keeps you on track day by day, week by week. Check out www.CreateAPlan.com which is an online tool created specifically for real estate agents, or Business Plan Pro at www.paloalto.com/ps/bp which is a generic business planning tool with real estate features. (I have not actually used either of these products, but have read good reviews of them). Now you just need a splash of willpower, dash of persistence, a little positive outlook and you're good to go.

                                  
Links Every Agent Should Have Bookmarked

Agents Blog for Success

Big Advertising on a Small Budget

Real Estate Law

And You Thought All You Needed Was a Website

A History of Real Estate - Humour

Realtors Need a Paradigm Shift

Marketing 101 - Humour

Designing Top-Notch Real Estate Web Sites

The Truth About Market Share

Real Estate Career in Edmonton, Alberta - 1 Opening Only

 

Justin's Travels  
Justin Rushdi
 

Justin Rushdi spent the month of September 2005 traveling through Iran with his 64 year old father. Why, in this unstable time would he choose to visit a country such as Iran? His answer is simple: “family and curiosity.” He’d never met many members of his family, and his uncle was ill, in his mind the timing was right.

He saw a lot of the country, including Tehran, Hamedon, Rashdt and Chaloose which are along the Caspian sea, Isfahan, and Mashad where most of his family lives (a map is available here). The climate changed from dry and hot with barely get any rain (we had 26 straight days of sun) to lush farm land with humidity “like nothing I’ve ever experienced.” Luckily Justin’s father is semi-fluent in Farsi, making traveling easier.

Real Estate in Iran is booming. Residences for the most part are more apartments or condos. People are doubling their investments in very short times in their current market. Land in the big city centers is extremely costly, and there are high rises going up everywhere. Builders take many years to finish one building as they are massive since there is very little room. “I saw a few big homes but they are gated and very private, the people who have lots of money, in comparison to the rest, really have lots of money.” There are brokers but the society is very social; word of mouth is definitely an advertising force, leading to a lot of FSBO’s.

Much like when Sheldon visits Ontario, Justin was advised not to talk about politics with the locals. He says: “There is a president of Iran who was elected by the people; however the clergy have their hands into every aspect of the government. There are copious amounts of corruption present. Things are tense because there is an aging religious population who are being replaced with a younger more liberal population of young adults. From what I saw and heard it seems that the clergy is losing their grip marginally but it would be more like decades then years before there is any real major change.”

The other major difference in everyday life that Justin mentioned was shopping – everything is negotiable, even in shopping malls that look much like what we have here. In a mall, if you’re looking for jewelry, there will be an entire hallway of jewelry stores next to each other so comparison shopping is easy. And if you’re curious, it costs $4 cdn to fill your tank with gas.

     


Buyer's Specialist
Coldwell Banker Supercity Realty

Halifax, NS

justin-rushdi@coldwellbanker.ca

Justin is an integral part of Mariana Cowan's Team. He recently handled a referral from us and got very positive reviews.



Click on any of Justin's photos to see a slide show of his travels. You may have to click the play button at the bottom right hand corner of the screen to start the slide show.

 

The Discount Myth, An Anthology of BS, by Sheldon Johnston
 

The following articles are not designed to give legal advice, or make sellers bow down and give you the listing just because you showed up and spoke. Sorry, this is no consumer column either - if that’s what you are looking for I have another periodical for you to read. If you like what you see let us know. If not let us know what you’d like to see more of. Our goal is provide you with the most current and relevant information on the issues facing us today.

This topic has been touched on in the past, and each time we’ve had people write in asking for more information. In this article I am going to look at the misconception (BS) perpetuated by FSBO companies that real estate agents are overpaid, and of course sellers can save money doing it themselves. It is the first of a few articles designed to assist you in developing strategies to deal with your customers and clients who may be contemplating, or who already have chosen a FSBO-assist company. These are companies that are popping up and offer assistance in marketing a home for sale, in which sellers generally pay a flat fee upfront.

Your success in competing with these companies, will depend on the truth of your statements, and the level of professionalism you exhibit in dealing with your clients misconceptions.

Real estate agents are over paid and you will save thousands of dollars selling on your own” - taken from local assist to sell advertisement.

On the face of it, it sounds logical to the seller, and these companies exploit that perception in the extreme. I believe the opposite is true however, and they are making a weak, uninformed decision, ignoring the security and liability issues that go along with selling on their own. They are going for the what they think is cheapest alternative with their most important investment. My guess however, is they wouldn’t use the cheapest babysitter they could find, so we obviously have to do a better job in justifying our value to the public.

In most cases these companies will use fixed, yes fixed, commission rates to make their point. When you are competing with people who have no legislative requirements, or ethical obligations, you are at a disadvantage to say the least.

So the unregulated real estate companies create the belief that a seller can save money selling their own home, and they’d be stupid not to. They use their creative mathematics to illustrate that thousands have saved already. It is however a complete misrepresentation (BS) that all of their clients have saved money let alone saved a fixed commission rate.

Facts to consider in developing your strategy:

  • Each company charges some sort of upfront fee for their “service.”
  • These companies then offer up-charges for special placement on their web site or magazine. (I thought their service was so good you don’t need to do additional marketing!)
  • They provide no protection to the seller for lawsuits because of errors and omissions, or instructions on how to deal with what they may or may not be liable for. In some cases they are referred to a lawyer - who generally kicks back money to the company - who will help do up the contract. By then it is too late, the representations, warranties and disclosures if any, have already been made.
  • Sellers often think preparing the home for the market is just getting it ready for showings. This is a huge misconception and it’s your job to educate your sellers what you can do for them.
  • Accessibility. The only way a seller can achieve full accessibility is if they are at home full time. This creates a security risk.
  • Security: The general public is not trained to qualify buyers. The “bad guys” know this - it seems logical that they would prey on the unsuspecting and the untrained before turning sights on an agent who is aware of the risks. Not only does one take a huge risk financially selling on their own, there is a significant security risk selling on your own or through one of these companies.
  • The majority of buyers deal with an agent, so the sellers limit themselves to a significantly smaller market. This of course, is not promoted by these companies.
  • The majority of these properties end up listing with an agent in the end and have incurred unnecessary additional costs.

The above items alone should have some value to the seller. In the next issue we will deal specifically with the mathematics of the transaction and charting the actual differences in costs. I will prove that the cost differential (if in fact one exists) is so small and so risky, that the choice to use a competent, professional real estate agent is completely obvious to them.

Not that you should require it but this is an excellent article posted by an agent in Florida that has some excellent information on this topic and others: http://www.skaffe.com/weblog/Alan/82/.

 

Sponsored By:   Final Note - Embroidered Logo, Web Award
 

Network News and Coldwell Banker Johnston Real Estate invite you to create your Point2Agent site today, for free.

     

Does anyone have a version of the Coldwell Banker logo for embroidery? There is a specific file format required to embroider a logo on fabric, and if anyone out there has the digital file (should end in .exp or .dst) then we could post it on the blog for all to use. It's not available from head office.

One more small pat on the back... Recently Results net awarded www.edmonton-homes.ca 5 out 5 stars for design and functionality. The Results-net Web Site Awards are awarded to those real estate related web sites that demonstrate excellence in design, usability and effectiveness, and show a commitment to using the Internet as a means of delivering information and providing service.We believe in quality presentation and quality service. If you'd like help marketing yourself online, contact me to discuss rates and options.