I Am Your Coach

If you help clients buy and sell real estate, you are a coach.

The problem. Likely you have never formally learned “how” to coach. Many aspects of real estate are “learning by doing”. And, those who can “do”, survive. “Doing” and “surviving” is not coaching. And, real estate is changing faster than ever. Trial by fire will not keep you at the top anymore.

Coaching is not training. I have taught hundreds of seminars. My first career was in biotech. My job was to teach nurses, doctors, dentists and surgeons how to use our products. It was technical. It was training. We had teams all over the world trained to conduct the surgery and place the implants. The only problem was there were no patients. Everyone had technical expertise, but none of these fine professionals could motivate patients to say “yes” to the procedure. Over time, the best surgical teams were those lead by doctors who could convince patients to say “yes” to treatment. Many of these teams never received “formal” training. Like the top producing agent, they had so many clients(patients), they figured out how to use the product because they had the need. Sound familiar?

Great players are not automatically great coaches. I am a good real estate agent. I have sold hundreds of homes and negotiated millions of dollars on behalf of clients. None of this qualifies me to be an “effective” real estate coach. I am certified my NORE and have completed coaches training. The NORE model (Nature Of Real Estate) is derived from CTI (Coaches Training Institute) and customized for the unique demands of real estate by Suze Cumming. I have experienced great success using this model as a student and coach. If you have tried coaching and didn’t feel the magic, perhaps it’s worth trying a new method and new coach?

Avoid paint by numbers. A friend started real estate in 2008 at the same time as me. He started at one of the best training brokerages in town. I chose a brokerage filled with old farts (and knowledge). I heard his managing broker speaking one day at a seminar. He had hundreds of “training” ideas. I still use some of his ideas to this day. My friend bombed out after 28 months, faithfully paid his office bill and struggled to do a few deals. My path was the opposite. I was able to selectively hone my tools to fit my values and skills. My coach helped me do this.

The Difference? There are thousands of great trainers out there who think they are coaches. Thousands of agent have training. Few become top producers. Find a good coach and you will understand the difference quickly.

What’s next?

Are you reaching your financial goals?

Are you waking each day focused and energized?

Do you feel like you are just a few steps away from a break thru?

Do you feel stalled or less focused?

Are you ready to kick some ass and hammer this profession?

Is the best of you yet to be harnessed?

I am here to help realtors. It’s my profession. We make peoples lives better. I coach realtors. 😀

One reason your real estate market will not crash!

Quickly scan the internet comment sections regarding housing prices and you will see a large number of folks commenting on the impending crash of prices and the fall of the capitalist system.

However, there is one simple calculation that will tell you if the sale price of houses is acceptable for the area. It’s not the only criteria but this method works well for most of the markets.

Remember back when I said there are 3 ways to value real estate? This method is based on the Income Method. It utilizes the relationship between the cost of ownership (principle, interest, taxes, maintenance, utilities) measured against the rental income.

This value is expressed as Net Operating Income and you will sometimes hear the term CAP Rate.

In simple terms, if the property can be rented out for an operating income which exceeds the expenses to own it (a net), the property is considered a good investment. How much net operating income varies based on the property. Older properties require higher CAP Rates because of maintenance and variable expenses. New properties can often sell for lower CAP Rates because of less maintenance.

At press time a variable rate mortgage is 3%. Buy a 4 bedroom house at $620,000 and put 20% down and your mortgage for $500k will be $2100 a month. Monthly Expenses? Taxes $300. Water $100. Insurance $150. Maintenance $200. Utilities are a wash as renters and owners both pay these. Total monthly cost is $2,750.

Three things to consider.

  1. About 40% of the mortgage payment pays down the principle so the entire mortgage is not an expense. About $800 a month in equity is building for the owner.
  2. A four bedroom house in my area rents between $2,500 and $3,500 a month. So, this house may be a good investment.
  3. Some people may create a 1 bedroom suite and rent it out for $800 to $1,100 in my area. Which, makes ownership of this home much less than rent!

Understanding Net Operating Income and CAP Rates will turn you into a savvy real estate investor in no time. In the short run ask your Realtor® for these stats and buy with confidence. Your home and investment are on solid financial footing.

3 Reasons to stay loyal to your listing agent…

Not every house sells in 90 days. And, if you ask top producers, the main reason is the price. Yet, real estate markets are not so simple. Many agents invest thousands of dollars in your listing. If it doesn’t sell, the risk and loss to the agent are high. Whether your house sells or not, is not a reason to let your agent go and try a new one. Here are my thoughts as to why you should stick with your agent.

One: Professional Marketing. Did the agent use professional HD photos? Was the listing posted on the top real estate sites? Were the listing details compelling and accurate? Did the property look good? Many agents cut corners to save money and these short cuts and omissions can reduce exposure and cost you money. Selling property requires good marketing. Your listing does not need to appear in every magazine in town (in fact, print is the last place I would post) but the marketing plan needs to look good and cover the bases.

Two: Regular Reports and Contact. Do you get the “stats” on your listing? How is it doing in regards to page views, internet hits and likes? How has the data changed since the listing start date? How is it tracking now? The best thing about internet marketing is 100% of it is traceable. All clicks lead back to the listing and the “data” does not lie. You NEED this information. It will help you understand if you are priced correctly and if there is buyer action in your area and so much more. You should also get feedback from showings. Some say feedback is not really helpful. The best feedback is an offer of course!

Three: Your agent is full time and active in the area. I live in a unique area. So do you. My neighbour listed their house with an agent from a different town about 30 miles away. Not a long distance but far enough that the agent does not show or sell in our area much, if ever. The house was listed slightly overpriced in a heat of the market last year. A minor adjustment in price and the house could have sold. Instead, more than a year later, it’s sitting there. While I don’t know the seller’s motivation, I see this often. Hiring the local expert and one who works at the profession full-time is always prudent.

Staying loyalty to your full-time agent is the best gift you can give. Working by contingency (getting paid if something happens) is a hard road and many people just can’t handle the ups and downs. Giving your agent an extension, price change or relist is a solid strategy. It shows them that you respect their advice and appreciate their work. At the same time, make sure you are getting the real service you deserve.

D.Desrosiers 2019

Showing Properties…Simple?

Have you ever called your real estate agent to book a showing? Here is what happens.

  1. Your agent contacts the listing agent to make sure the property is not sold.
  2. Your agent sends a formal request to show the property at a set date and time.
  3. The listing agent receives the message and makes a log entry, contacts the seller and waits for approval. If all is good, the showing is confirmed by the listing agent sending a confirmation message back to the buyer’s agent via email and text message.

You simply meet the agent at the listing and are quickly escorted throughout the home. Simple!

WAIT!

What if the seller cannot accommodate the showing as requested? What if there are tenants who do not respond timely to the listing agent’s request. What if the showing is cancelled or delayed by the seller or tenant? And, what happens when the buyer’s agent has lined up two or three showings and now has a gap in the schedule? What if there is a pending offer? What’s the status of the offer? Is the offer in negotiation? What’s the process now?

Booking a showing may seem simple but there is a lot that goes on behind the scenes. In most jurisdictions the timing of offers and showings comes under legal scrutiny should a conflict arise. Agents have specific legal and ethical rules that govern their conduct designed to benefit the public.

Often, these rules and ethics are not crystal clear and agents do their best behind the scenes to ensure fairness. This is one reason why top agents often say such great things about other top agents. A solid transaction always takes two talented agents!

Veteran full-time agents will agree:

  1. Negotiation starts when the showing is booked. Every comment, question and nuance is important should the buyer write an offer later on.
  2. Every showing is important to the seller and to the buyer. If it’s not, don’t book it. Be respectful. You are not buying every house you look at but someone took a lot of time out of their day to prepare the home. Respect.
  3. Feedback is appreciated. What did you like or dislike? This could help the seller in the future. And, more importantly, what did you purchase instead?
  4. Work with a full-time agent. You will notice the difference.

Viewing and screening properties is the most important element in real estate sales. It may seem like a simple appointment but it can lead to a great real estate purchase with the right advice.

D

 

Make it a great day!

My life changed when I finally realized that each day when I awake…

1. It’s a miracle to wake up. Not everyone gets to. I have my wits and my hands, feet and legs all seem to be working just fine. Exercising a grateful attitude rather than angst for the day ahead has helped to shape my mood. Not every day is fluffy and bright but I am truly excited for the day ahead.

2. My day will be filled with challenges. I have replaced, “why is this happening to me?”, with “alright, these are my cards, what’s the best hand I can play?”. I am also getting better with leaving past events in the past. It’s not easy to forget the mistakes, fumbles and times when things don’t go my way but waking up with a fresh slate each day is refreshing.

3. The type, quality and value of my challenges will define my life. Speaking with people who seem to be “stuck” in their lives, it’s often easy to see what they are stuck on is low-value issues. What problems am I helping with today? Am I at 30,000 feet or am I stuck in the weeds of anger, frustration with small issues. Is the work I am doing benefiting me and those people around me? When I am at ground level, am I approaching the work with gratitude?

My only task, therefore, becomes, choosing my challenges wisely.

 

Keeping busy by standing still

People that perform at a high level share the ability to solve “good” problems. Of course, problem solving is essential for getting things done. Few jobs or projects roll out without a hiccup or two. But ask yourself, what type of problems are you solving; self inflicted ones or those presented to you by others? You may feel that you are an excellent problem solver but if you are solving self-inflicted problems too often, your keeping busy by standing still.

The real estate secret

I remember a friend at a party stating “we found our last home by ourselves, the agent just booked the appointment and wrote the offer. What an easy job!”

Now, I don’t know the who’s, what’s or where for’s of their relationship, but there is a secret that we real estate agents keep to ourselves. It’s a big secret hiding in plain sight. We hide all the good listings on the MLS and realtor.ca.

What my friend failed to recognize and acknowledge was the numerous homes they previewed. He forgot to mention the agents comments, analysis and advice given during each showing. And, he completely missed the importance and skill utilized during the offer process. From writing the offer, including subjects for the buyer’s benefit, to assisting in completing the due diligence and ultimately closing the transaction with the help of their lawyer.

The entire process was simplified and “easy” because his agent was competent. There are houses for sale everywhere. Choosing the right one, making sure it’s a good one and locking it up with a solid offer may seem easy but there are a lot of moving parts. That’s why we are here.

D

 

 

 

Looking to purchase real estate? Step One…Step Two…

One: Find a real estate agent

Two: Find a Lender

One

Top three things to consider when choosing your agent.

1. Does this agent have experience and skill?

Can they protect me and cover the details of a complex transaction? Do they know the area? Can the agent show me how the house is valued?  Can they match my schedule and give me the service I need? Can they offer me service I don’t know that I need?

2. Does this agent have time for me?

Will they be able to meet me on short notice for showings? Will he or she have time to help me conduct the due diligence to make a good purchase? Will he or she help me analyze my purchase? Will he or she “chase the case” and work hard behind the scenes for me?

3) Will this agent allow me to say “no”?

Many agents often sell their clients to  a “yes” proposition house after house. Yet, screening properties well requires unbiased views and truly understanding the needs of the client. Acting as a fiduciary means coaching clients to what’s best for the client. Sometimes in hot markets, this means coaching a faster decision but in others, it means slowing down and offering quality advice. Which might mean the client says “no”.

Two

Lender: A person who is skilled at finding you the most amount of money possible for the best rate and most flexible terms…

Banks: Your bank will often employ Mortgage Specialists. Some are the busiest and most productive lenders in the area. If your credit and income are good, you will have little trouble but be wary of the posted rate and standard terms. Mortgage Specialists are limited to finding you products from their institution. Not a bad thing but it could hamper you if you need creativity.

Mortgage Broker: An independent & licensed professional. Mortgage brokers act like real estate agents. They hold their license at a “house” and can access money from multiple sources – often from your current bank. Mortgage Brokers only get paid if their succeed in getting you a mortgage. Many are focus on long-term business strategies and want your repeat business.

There are other options for borrowing and mortgages such a family, private lenders, the mafia etc. Even if you choose an alternate route, I would still consider having a mortgage broker guide you through the process.

 

 

Rookie real estate agent mistake #1

Can there really be a #1 mistake that a real estate agent can make? Mistakes are made everyday in any profession but in mine, there is a lot of money at stake.

I remember my first couple years. It felt as if I fumbled from one mistake to another. Nothing “big” thankfully and the support of my broker and mentors kept me on track. Mistakes are just part of the massive learning curve.

In choosing my number one you will need a little background. I believe that an agents roles is that of consultant and advice giver. Today, the legal definition has evolved to fiduciary. Interestingly, real estate agents are only paid when a deal completes. This can create a conflict.

If an agent needs a “sale” or commission, how likely is this to affect their ability to act as a true fiduciary?

Number one mistake agents make: “needing the money”.

Money is important. Zig Ziglar says “it ranks up there with air”. But needing the money is the problem.

Ask your agent, how are they financed? Do they have cash reserves if they do not do a deal for a month or two? Is their advice given without undue financial interest?

It might surprise you to know that most of us aren’t that busy.

 

 

Rarely first…

Rarely am I first to do things and rarely am I considered the best. I don’t need to be first or best but I do want to be significant. Meaningful. Helpful. I think most people have this desire. I do.

As kid I was tall, awkward and slow but I was clever. Multiple trips to the principals office was proof of my cleverness. I had the unique ability to see things a certain way and blurt out my feelings. This was not truly appreciated until I went into business where creativity, brashness and being memorable was important.

I also loved volleyball and sports.  Yet, most of my grade 9 and 10  season was spent sitting on the bench. I couldn’t keep up to the the smaller, faster and more skilled players on my team. My coach was supportive. He was a tall drink of water and always said, “it will come”.

One afternoon, it did. It was a regular season game near the end of my grade 10 year. We were losing but the game was close and it was my turn to be “rotated in”. As I approached the front of the net I could feel the stress of the “hitting” position coarse through my veins. The pass came to Alex and he made a decent set. Alex was a natural and the game came easy to him. The set was perfect. As the ball approached me, it seemed to slow down in the air. I made my jump and time seemed to slow down; both eyes on the ball and I swung.

Interestingly enough, the ball did not come back. Turns out it hit the ground straight away right through the blockers hands. The roar of the crowd and my team was earth shaking. It was an ace. My timing had come and I was gaining command of my body and the game. I couldn’t stop shaking. Ball after ball came to me and I simply jumped and swang away. Everything seemed to work. What a feeling.

What people most people miss about this story is that It took more than two years of work and practice to get me to this point. Tons of teasing from my team mates but an encouraging coach, Mr. Hardy and my commitment to show up for practice was all that was needed. My height certainly had helped but there were a number of boys taller than me who still could hit the ball.

I wasn’t first, but with practice I became good. How many times did I swing and miss? All I do know is that from that day forward, all those miss hits seemed to vanish. My dedication and commitment had paid off.

So, why are you here? You have found my corner of the web most likely because you already know me. You have seen my “social” and clicked your way to my blog. Thanks!

Certainly, its the not the first blog on the web about real estate but my promise is to keep swinging.

In the coming weeks and months I will do my best to populate this blog with some amazing stuff.. Drivel will be included, free of charge. My goal is to give you my best ideas, concepts, arguments, thoughts, feelings and perspectives.

My goal is for you to WIN. I want you to WIN by helping you make better real estate choices. Whether you are an agent, first time buyer, luxury home seller or just like me, someone trying to get the best out of real estate. I truly want you to make better choices, win when you can and have a great life.

Real estate is not a swing and a miss game. Miss hits are expensive. This is where experience and good old fashioned service can help.