It is a first…

…for this Realtor to serve on jury duty which put my skills to the test!

I was selected to serve my civic duty and be a juror on a criminal case in Hamilton County.   Before you get concerned about me telling you any details, please know the judge said once the verdict is read it is all public knowledge and we can share with anyone.  So why would I share the details with you regarding my juror duty experience?  Because it was Real Estate that made me the best juror I could be.  Because of Real Estate, I have learned how to compete with an agent on Tuesday and break bread or go to a closing on Friday.  I have learned to fight fiercely and compete with all my heart while never losing sight of the big picture and not making it personal.  I think as Realtors, we think all competitors get along and I learned in jury duty, we are different, and in my opinion, better competitors than some industries.  You may or may not be surprised to learn I was selected foreman for this jury, and I accepted the position and the responsibility of getting twelve people to agree on all seven felony counts.  This my friends is no easy task.  Over my 23 years, I have negotiated just shy of 1,000 home sales in central Indiana and I currently oversee one of the most successful group of agents that sell over 2,500 homes a year.  So I’m no stranger to the process of negotiating and compromising to get to a successful outcome.  Jury duty takes the act of negotiating and compromising to a whole new level.  I would say getting someone who feels a person is innocent to believe they are guilty or vias versa is like asking a cradle Colts fan to become a Patriots fan.  It just doesn’t happen without negotiations and compromise.  Every person on my jury was wonderful and passionate but they all had their individual lives and experiences that lead them to their individual conclusions based on the facts.  In the end, it was my job to get 12 people to see and believe the same decision should be made on 7 separate counts.  So now envision getting your Colts fan to become a Patriot fan and then convince him or her to become a Bears fan and then continue to get them to switch for a total of 7 times…yikes!  Well, that is exactly what we do every day as Realtors.  We get people to look at the facts, evaluate their personal opinion, and compromise where they need to, in order to get to the outcome they desire.  And we do it with a smile knowing we will be face to face with our competitor and in most cases sitting across the table at closing.  I  believe each and every Realtor is very qualified to serve on a jury and owes it to themselves and the Country to do so.  You are capable of seeing and negotiating when others see walls.  You are providers of solutions, not obstacles, and these traits are not within every person and underestimated by each and every Realtor as to their value.  In the first hour of deliberation, I had a couple jurors tell me it was going to be a hung jury and 7 hours into deliberation was the first unanimous  decision I was able to get.  Yes, it took 7 hours for 12 people to agree on guilty or not guilty on one count.  By now, many people were very tired and frustrated but it was my Realtor instincts that kept my 11 new friends on the task at hand and within the next hour we made 5 unanimous decisions.  With a start time of 6pm and the first decisions at 1 am and the next 5 between 1 and 2 am, we only have one final decision to make.  Please note, the jurors in my case were all awesome people who deeply cared about the outcome.  In fact, I was amazed at how passionate people were about guilty or not guilty in the case.   In many cases, it took on very personal feelings about friends or family members, so people were dead set on fighting for their belief.  At 2 am, we had made 6 of the 7 decisions we have to make, and many people of really running out of energy but I felt as thought I had just finished a large Red Bull.  I was full of energy and ready to go the distance to make sure the accused received our full commitment, and the tax payers did not bear the cost of a mistrial.  When the clock read 3 am, I thought we were close, so I called for a vote and but we were still one shy of a unanimous decision.  I would say this was my one regret.  I think I called for the vote too early and it forced the one person to fight longer.  After I called the votes, we would then go back over the facts and evidence.  We had to talk through the case and people would change their minds time and time again.  But the process seemed to work which reminds me of the process Realtors go through while negotiating a deal.  In the windowless room, the hours just go by since you don’t see natural light.  Time just goes away as does the fresh air.  So at 4 am, now 10 hours into this process, I call for another vote and finally 12 people could and did agree on all 7 counts, just like on the 7th counter when the buyer and seller finally agree.  Realtors are good at what we do, and our skills allow us to help in other ways and in other business.  On this day, I was proud of my service as a juror and my experience as a Realtor.

#realtos #negoiators #determination 

Bon appetit,  Jimmy

How do you plan for the future…

How do you plan for the future…Unless you are a savvy economist, I would suggest you find one that you enjoy learning from.  It is with that I share my favorite economist and his most recent opinions.  

First as a method of patting him on the back for his predictions, and me for be just smart enough to listen and act on said predictions, I will share with you my real live story.  The year is 2006 and it is spring time and my Economist said in his fall presentation, if you are going to sell your home do it in spring/summer of 2006.  Being the smart guy I am, I took his advice and put my personal home up for sale.  If sold, it would be a record setter price for my neighborhood and of course why wouldn’t it be?  After all I’m a smart Realtor with 2 decades of experience.  He was correct!  In 10 short days, I sold my home for more than twice what I paid for it.  Not bad right? 

His advice went on to say, don’t go out and buy right away, just rent and let the market continue to fall so you can get a great deal.  This after all, is the epitome of sell high and buy low!  Well, I deviated a bit from the plan that was shared with 300 business owners in the room, and I bought an investment property and fixed it up and lived in it of just shy of two years, with a slightly unhappy bride.  When we found a great opportunity, we jumped back in the market and bought a home and here is where this story gets really good.  I sold 5,000 sq ft, built in 1972 with a two car garage and eight foot ceilings on a .75 acre lot in east Carmel that I had updated to the umpteen degree.  But in the end, the wall locations were where they were and room sizes were dictated by that, regardless of how nice my wife Tamara and I made it look.  That was then but here is now…Over 7,000 sqft, 3 car garage, same .75 acre lot, daylight basement, 9 and 10 foot ceilings, 2 more bath rooms, built in 2001, swimming pool and surrounded by homes of equal value.  But the really AWESOME part is I paid less for the larger home than what I sold my original home for, and I bought an investment property in the middle.  I’m no genius.  Just ask anyone who knows me, but I will take credit for listening to people smarter than me.

So by now I’m sure you want to know what predictions have been made at this year's fall event, drum roll please!

2014-2015

·      Sluggish until mid 2015

·      Borrow money

·      Buy Real Estate, such as rental property in neighborhoods you would live in

·      Inflation will kick in for 15 coming years; 3% inflation in 2017, 2020’s will be a double digit inflation decade

·      Wages are going up, with slow increase in hiring

·      Invest in your business now, particularly efficiency and productivity enhancements as well as technology and training

·      Retail sales drop in June 2014 was steepest in years - weakening forecast

2016-mid 2018

·      Strong years

·      Interest rates will nudge up; mortgage rates to 7.5% by 2018

·      Create loyalty and team building with “A” customers

2018 or 2028

·      Best time to sell a business

2019

·      Significant recession, similar to 2001

·      2029 GREAT DEPRESSION

·      Be cash strong

·      Buy competitors who are not prepared

·      Teach millennials how to sell in a down market

If you are like me, all you can say is WOW!!!!! But if I were you, I would do more than say wow.  I would align your future with this information and plan for that future like I did.  

Since I’m sure you want to know who this person is I enjoy following, and since I have quoted his work which means I need to give him credit where credit is due, his name is Alan Beaulieu and he, along with his twin brother, work out of the east coast and provide what I consider to be some of the best advice around. They have also just written a book called Prosperity in the Age of Decline.  Check them out and get a plan with some expert insight to the world ahead.

Bon appetite,  Jimmy

Growing pains...

Many agents are feeling the winds of an improving Real Estate market and desiring growth of their team or growth into a team.  When should an agent consider becoming a team and when should a team add members?  Different questions but the same answer works just fine.  Let's start with what isn't the answer:

1. Everybody else is doing it so I should.

2. I want to make money on other people.

3. I need people to help in the office with admin tasks.

4. I know someone who is looking to be on a team.

5. I don't like helping others.

So why would a individual become a team or a team expand? Simple:

1. I have systems and lead sources that create more opportunities than I can work or more than my current team can handle.

So why do I feel this way?  I've seen people attempt to grow because others did, without the systems and leads the others had, only fail and lose time and money.  Agents tell me all the time that I want to make a "little bit" off of some team members.  Agents looking to join teams tell me they want to join a team because they "are great with clients" but they don't have enough of them to work with. Sometimes the thought is, I have too much paperwork slowing me down in the office but I don't want to hire an admin and pay a salary so I will hire a licensed team member that can sell and do my paperwork. Let's play this scenario out.  I'm a licensed agent and join your team and part of my job is to do your paperwork and part is to sell real estate.  Of course our goal is that I'm good at both, so what does this look like? I take calls, process paperwork, set up showings, negotiate inspections, complete paperwork, and get all of it turned into the office so we can close files.  I'm also showing homes, listing homes, and doing open houses now for two agents but I used to be a $1 million dollar producer on my own and it's all I know.  Now I'm doing all my work as well as my $7 milion dollar team leader's.  This can be a recipe for disaster and in the end it can lead to a revolving door of team members.  Btw it is real hard as a team leader to go sell real estate when you're stuck in the office training.  

Start with a plan including job descriptions, titles, team polices, and a written contract.  Then begin interviewing potential matches based on the job descriptions.  I would even suggest asking your office to help screen potential people so you only meet with the best candidates.  In the end this can very a very successful way to grow your business and make more money but without proper planning and intentions, it can also be a big waste of time and money!

bon appetite 

Jimmy

Do you Enhance...Or are you status quo?

Attending Inman News Connect conference in San Francisco, I had the

privilege of listening to Guy Kawasaki about Enhancement and his top 10

list.

1. Great Smile which can be clearly identified by crows feet around the

eyes!

2.  Always default to yes. Looking for ways to help others.

3.  Become a baker not a eater. Don't see other's gain as your loss.

4.  Accept others for what they are.

5. Agree on something... it will move you forward in the right direction.

Try to find that connection even off topic that you can agree on to

begin the connection.

6.  Remove speed bumps.  Go through the process as your client would to

see where the consumer will have a challenge and remove them.

7.  Enchant everyone because you never know who is the decision maker.

The barista at your local Starbucks could also be the daughter of one of

your best clients.

8.  Build a ecosystem of the parties in your transaction that help you

create this enchanting experience.  Step outside the traditional services

to all the services and needs the customer has that support your

enhancement.

9.  Reciprocate with others.  When people thank you for referral say "I

know you would do the same for me" it will help build a giving

relationship.

10. Get on your knees.  Let people know you care and you want the

opportunity.

In the end to create an enhancement relationship you need to be trusted,

likable, and deliver quality.

If you want more information, Guy Kawasaki has written many books and is

a national speaker.

The world is big but every day it becomes smaller...

The world is big but every day it becomes smaller...My thought, my concern, and my view today is all based on the Realtor on Facebook! Big world made smaller by social media. I think agents lose sight of the reality of their posts and what they say about you or your company. Let's face it everyone in every business has had a bad client or customer but it wasn't until social media that we were so quickly and affordably able to lash out. Good thing? I think not...It concerns me when our industry goes onto the world of social media and describes an event or set of events that lead to (in their opinion) not a good experience. I went through Facebook and took screenshots of posts from Realtors and others in the real estate business around the world. I planned on including them but elected not to include them in my blog. Here are the kind of things that concern me: talking about the quality, condition, or location of a listed home in a not so nice way. I don't think 20 years ago any Realtor would take out an ad in the local paper to bash a home for any reason. Now that social media exists and it is free, we as an industry commonly voice our derogatory opinion about people's homes and lifestyles. How about the posts where a Realtor is whining about the countless hours spent with a client who ultimately doesn't buy or buys a home with out them? Have you not heard of a buyer broker agreement provided by your state or local board where the client hires you and only you to represent them. Does it make sense to bash the buyer for not using you when in fact, you as an agent didn't take the time to explain or take the steps to insure your professional relationship? I don't think it belongs on Facebook. However, there are forums for persons of any profession to share and discuss success and challenges and if you're really mad, there is the dinner table conversation with your spouse or family. In any case or solution you choose to take, always eliminate the client's name or the address of the property. Any time you find yourself frustrated with an outcome professionally, step back for 24 hours prior to speaking out on social media.

Is It Time?

It is time... Time for what? Time for the real estate office to make a process all about the consumer. So, with over 150 agents at RE/MAX Ability Plus, I bet if you bought a home from each of them, each experience would be different. Heck, with over 16k agents in the state of Indiana, I bet you could have more than 15k different experiences ( I left 1k out thinking somehow a couple of the experiences would be the same). So what do I mean? The Real Estate industry has worked long and hard, for many years, to create the ultimate agent experience by offer tools and services to attract top agents. I'm as guilty as the next Broker on working to create the ultimate Realtors experience. But what do they really want? I'm guessing my agents (although more successful than the average firm) are no different than the average agent...they want to close the deal, help people and make money! As the broker, isn't that my job? Help them attract clients, close deals, help people and make money? If you agree with me and say yes then what better way than to create the ultimate client experience that attracts clients? I'm talking the kind of experience people tell their friends about. In past blogs I have written about the experiences that blew my mind and now I want to create the kind of experience that blows the consumer's minds. Imagine, buying a home with some kind of predictable experience if you worked with an agent from RE/MAX Ability Plus. The kind that had all the details laid out and created some predictability so you never wondered what is going on. How about knowing what was in front of you before it was in front of you. Clients have come to expect whatever comes their way, but what if they bought a home this year and sold it in 4 yrs and bought another one and they actually remember what you did at different points in the transaction so they were relaxed and at ease. I know this isn't a cookie-cutter business, and we zig and zag to make things happen, but I still believe the Real Estate company could creat standards that the consumer could come to expect and even require. Would you pay more for a service if it had predictability? Would you be more willing to do business with a firm who guaranteed their work? Did you ever order a pizza because Dominoes guaranteed it would be there in 30 minutes or it was free? I did. Have you ever purchased something from Nordstrom because of their awesome service and return policy? Why can't the consumer have that kind of experience and guarantee with a Real Estate company? The first challenge is the fact that every agent in our business thinks they do it best... as do the brokers. I admit right now, and commit right now, that I'm not the best. But I will be...and consumers will hire RE/MAX Ability Plus because of this admission. Well, actually, because I'm committed to providing the best customer experience, with predictability, and a guarantee they can bank on! bon appétit jimmy

Big Fish Little Pond, Or Big Pond Little Fish?

Big Fish Little Pond or Big Pond Little Fish?

As the leader of any business, you have to ask yourself this question frequently. This question applies to any business, but for now, I will focus on the Real Estate business, which I know and love. In Central Indiana, my agents are collectively the 5th most successful group of agents in terms of annual sales. They are far and away # 1 in many other categories, but for now I will focus on the common goal of any sales organization, and that is sales.

 So one could say they have it figured out. They know how to sell as evidenced by the fact that they have over 18 deals and over 3 million in sales per agent per year, this is including every licensed assistant in that average. Our agents averaged more than 100k per year in earned commissions, in a state and industry that the average agent sells 3 homes and earns a "whopping" 15k per year. So you can only guess that with 150 of these stallions in the RE/MAX Ability Plus offices we too are viewed as a very successful organization, and in return, I'm looked at as a successful leader of this organization and here locally.

 Then why would my agents go outside our local pond? Why would my staff go outside that same pond? Last of all, why would I? The answer is very simple. We, as agents, staff and as leadership, becoming bigger fish in the real estate waters of Central Indiana. Mind you, we are not the biggest "fish" today. That spot is currently held by the F. C. Tucker organization and its current owner Jim Litton. However, if you dig deeper, we are the fastest growing company reporting year over year growth in excess of 30% in 2010, 2011, 2012 and 2013 which means in just two years RE/MAX Ability Plus will hold the top spot in this pond!

 Why then would my agents spend their money and time to attend R4, the RE/MAX International Convention, and many other events that take them away from their businesses and families? Why would the team of staff attend these and other conventions? Why would I go to R4, return, then take two weeks off on spring break with my family only to return and pick up another bag and take off to T3 Summit, the Swanepoel's Trends Thoughts and Technology Summit?

 I will speak for myself and how I believe every agent, and staff member, feels here at RE/MAX Ability Plus. It is what we are driven to do as we accomplish more and more in the pond of Real Estate waters here in Indiana, we want more. We want to learn more. Try more. We want to do more. More sales, more support of our charities, and more interaction with the buyers and sellers of Real Estate in Central Indiana. And, who is better than us? I would argue NO ONE... my reason is that we are bringing together amazingly successful local experts and combining them with the International knowledge of RE/MAX in 97 countries.

 You might say "big deal." What's the big deal? Many offices attend their international convention, or local conventions, or maybe the NAR convention, and I would agree. What I don't see is the Broker Owners, managers, or other senior level members attending these meetings. Who knows why, only those who are in the position to decide know why they do or don't do things. Let me share why I do. I do because I become the little fish in a big pond! That's right. At T3, which was by invitation only, I went from being the # 5 most successful company in Indiana to # 187 Nationally out of 78,000. I went from the inner circle of real estate in Central Indiana, where I am involved in most of the higher level discussions, to the furthest outside ring in the national real estate picture. I mean, I was so far outside that if I didn't show up, no one would have noticed......and I love that and so does RE/MAX Ability Plus!

 Making yourself the little fish is challenging. It threatens your ego, your confidence and sometimes causes you to eat alone, because when you're the little fish no one is trying to find you.

 Go explore outside your waters! If you're the big fish, try being the little fish, and if you're the little fish, trying being the big fish. There is so much to learn in both ponds, and I guarantee to REALLY GROW you need some of both!

Bon Appetit

Jimmy