If you are breathing and you have a real estate license . . .

There are myriad Real Estate Firms that will “hire” you sight unseen just on the chance that you might sell a house or more.

Call me “old fashioned” but this disturbs me a bit.

I’m noticing a trend of Real Estate Firms and teams upping their recruiting games with job postings, cold-calling agents, and other “creative” strategies . . . Just about anything to increase the number of agents on their teams.

Don’t get me wrong here – I’m a Real Estate Principal Broker and owner who also desires to grow my company (Pareto Realty). I tested boosting a Facebook “Recruiting Post” which reportedly was seen many thousands of times resulting in a small hand full (less than 10) inquiries . . . 0 (ZERO) of those inquiries were from agents who met the “minimum requirements for hiring”, and I don’t think the bar is too high.

  • Must have a real estate license in the state of Tennessee
  • Must have sold a minimum of 6 houses in the past 12 months – OR
  • If newly licensed, must agree to a 90 day “Apprenticeship” – License can be released at any time during that 90 days
  • Commitment to being a FULL TIME Real Estate Sales Professional who sells a minimum of 1 house every month (We provide mentorship, coaching and training
  • Provide a Professional Resume
  • Complete the Tony Robbins DISC assessment at http://TonyRobbins.com/DISC
  • Email the results report of the assessment and the resume to me
  • 1:1 Mutual Interview with Principal Broker (To establish “Good Fit” or not)
  • Attend one Pareto Realty meeting (Team Meeting or Training session) As 2nd “Good Fit” test

I understand that many of the folks who read these requirements might think them to be daunting – over-kill. After all, the licensee can go to that other firm down the street that is BEGGING them to join THEIR firm TODAY (no questions asked if the license is in hand).

Here’s my take on this!

If the “prospect” doesn’t like the list of requirements, then we’re probably not a good fit.

I’d much rather grow slowly than compromise the good thing we’ve got here. I feel like the stakes are too high to risk hiring a bad egg . . . the culture of a firm is important for the agents who fit to perform at the level they need to live the quality of life they desire for themselves and their families . . . so there ya have it!

Where you work MATTERS!

The “why” of this post: There are many local and National Real estate firm brands who are very aggressively recruiting here in Middle TN. Some of their “promises” are far-fetched to say the least. Many feel like “Bait and switch” . . . and their tactics are disingenuous . . . Now resorting to telemarketing seemingly to the whole mass of licensees without any target other than to add licenses on their wall.

I say more about this in the video below – Many more videos are at http://BarrysDriveTime.com

We could get killed by bullet points

My “Open Space Friend” Paul Levy is brilliant.

He said the title of this post.

With great efficiency, his stream of consciousness thoughts go places most other minds cannot conceive.

He says cool stuff like: “Noticing all the versions of me.”

I feel refreshed after every conversation with Paul because he pretty much shreds the concept that everything must be ordered and intricately planned to be of use.

My Father Harrison Owen often chimes in with “The reality is that nothing of significant value happens according to the plan”, yet we all plan because we’ve been programmed to be planners.

Some folks make it their life pursuit to plan and seldom get around to actually DOING anything.

These are VERY smart people!

Their presentations are mesmerizing with their elaborately displayed bullet point lists of bullet points.

We’re impressed but not inspired.

Those things of significant value Dad mentions begin with inspiration . . . a passion for a creation or a change that’s important and relevant . . . and graduate from inspiration to invitation.

“Hey! I’ve got a GREAT idea! Who would you like to join me on this adventure of figuring out how to make it happen?”

Indubitably, the right people will show up with enthusiasm which can only be stifled by too much . . . planning.

Set it free, and see what happens.

Outsmarting Murphy

As I was walking out of the office to fetch something from the car this morning, I had a frightening thought.

The second I heard the office door latch behind me, I remembered that my keys were on my desk. I had departed from the usual routine because I’ve started doing 30 minutes of light exercise (calisthenics) to wake my body up each morning, and I had removed my keys from my pocket.

The frightening thought was: “What if when I return, the electronic lock fails to open?”

I know this may sound a bit OCD, but the truth is that the electronic lock DID malfunction last week (batteries), and I had my keys with me, so it wasn’t a problem. TODAY; though, the back up keys were on the other side of the door. I fetched that which I needed from the car, and the electronic WORKED.

To what degree do you implement counter-measures to protect yourself from Murphy’s shenanigans?

Or do you not think of this stuff at all and are mystified as to why I would even think these thoughts?

I think the Army did this to me . . . ALWAYS be prepared for Murphy!

Replicate systems!

Have a “Plan B” for EVERYTHING!

Know who to call!

Learn some “Survival skills”, so you can fix simpler things (Change a tire, reboot a computer, & etc)

Have the right tools on-hand WHEREVER you might need them.

Some examples:

Remember in grade school? Always have 2 (or 3) Sharpened pencils for the test (and a back-up calculator)

In your car – Jumper cables – A jack that you know how to use – An electric tire air pump – Tool kit

In the house – Flashlights and candles strategically placed – Storm shelter always prepared and uncluttered – Smoke/Fire/CO detectors – Tool kit

In the office – Back-up computer(s) – Paper for the printer – Tool kit

Back up keys in a locked/hidden place.

I think you got the picture, eh?

The Mission : Thwart Murphy!

The Traditional CMA Approach May Lead to Disappointment

The Real Estate Market in the past several years has lulled us into a comfortable state of complacency.

We REALTORS could pretty much have our way (and let our home Sellers have THEIR way) when it came to pricing homes . . . It was pretty easy . . . Do a cursory Comparative Market Analysis mostly because that’s what we’re s’posed to do so as to be able “justify our price to the market” in the event some pesky Buyers and their agents dared challenge it with the question: “Where did you get THAT price?”

Home sale values were climbing quickly enough that we could pull 3 months of “Historical” (CLOSED) data and identify the highest Price/Square Foot number and increase that by 3-5% and let that be the price. We could then sit back and collect multiple offers, many of which were higher than the already lofty listing price.

NaySaying Pundits would make noise to the tune of: “WELL! You might have it under contract at that price, but it’ll NEVER appraise for that!”

These pundits were, more often than not, proven to be wrong because . . . In the time between that initial CMA was created and the time when the appraiser showed up, there was a whole new set of “Comparable Properties” closed with enough data to justify the higher price.

Yes! Values WERE rising that quickly!

Well!

Things are achangin’!

This isn’t doom and gloom. It just is what it is. The real estate market in settling down. There are fewer multiple offer scenarios, more houses lingering on the market, Sellers having to reduce their prices, and Buyers able to negotiate for more favorable terms.

Some alarmists will squawk that the sky is falling because the NUMBER of sales has declined along with the rate of increasing values . . . No worries! That’s to be expected! It had to happen! What goes up must come down! Fact is, those years of madness were a market indicative of “Hyper-Drive” that is not duplicatable. This was a market that was pure octane infused Adrenalin high of epic proportions and scope. This was NOT a “Healthy” market, nor was it sane.

Don’t worry about the past!

Pay attention now to what the market is doing here and NOW.

There’s no need for alarm . . . House values are not plummeting. In most areas, they continue to rise . . . just not as rapidly as before.

The old CMA formula no longer “works” . . . It leads to overpricing the house and then “chasing the market down (by reducing the price)” until it finally sells at a price the seller would have received had he priced it right from the beginning.

We still look at the comparable, Historic Data with caution.

We pay more attention to the houses that are currently ON the market – The REAL Marketplace.

We compare the house we intend to sell to THOSE houses . . . our competition . . . and we build a pricing strategy that yields as many of the Sellers’ terms and conditions at the highest price possible

It occurs to me that there are many REALTORS in the marketplace who have never experienced anything other than a frenetic market. My advice to you? Hang with some of the “elders” in your office and get them telling stories about all the myriad market shifts they’ve endured . . . and how they survived when someone moved their cheese.

If you’re thinking about making a move, 2019 is a great year to do so (IMHO). As the Spring inventory builds, I think most Buyers will be pleased with their choices available . . . and most reasonable Sellers can and will sell within their time frame at a fair price.

I’d be remiss if I didn’t close with this this shameless plug for The Vital Few REALTORS of Pareto Realty.

I and the whole team are quintessentially prepared to protect and serve you throughout the process throughout Middle TN.

PS: If you are a REALTOR interested in “upping your game” in 2019 and not tickled pink with your current firm, Pareto Realty is growing – Connect with me directly, and let’s discover if we’re a good fit.

The client does NOT have Imputed Knowledge

Let’s start with a dictionary definition from USLegal.com:

Imputed knowledge means the knowledge attributed to a party because of his/her position, or his/her relationship with or responsibility for another party. Such knowledge is attributed for the reason that the facts in issue were open to discovery and it was that person’s duty to apprise him/her of such facts. For instance, if the stairway leading to a rental house is defective and if any person is injured on the stairway, the house owner cannot evade liability for such person’s injury by denying knowledge of the defect. Reason being that the house owner is subject to a duty to discover and rectify the defect in an area known to be used by the public. Hence, knowledge of the defect is imputed to the house owner.”

Real Estate Principal Brokers know this dynamic well. This is a heavy (perhaps the most heavy) burden because the Principal Broker, through imputed knowledge, is considered to know EVERYTHING about EVERY client represented by EVERY affiliate Sales Agent. That is scary, indeed. We do take some solace in the possibility of Designated Agency which significantly reduces liability (exposure), but not all. The “charge” of all Principals is to Educate and Supervise all affiliates sufficiently to meet the standard of care required through the creation of an agency relationship. (Client/Professional)

“Designated agency establishes an agency relationship between only one real estate licensee in the office (to the exclusion of everyone else in the office, including the managing broker) and a buyer or seller.”

That was a long (and necessary) preamble to a simple concept.

Woe be unto the Professional who assumes the client has imputed knowledge of the process . . . That’s NOT how this works . . . It’s reverse thinking . . . Gibberish . . . HERESY!

The professional MUST consider each and every client to be mentally devoid of the process of the transaction and follow this process consistently for all, thereby releasing the “distraction” of having to learn the steps of a process they only do once every several years.

Whenever there is a Client:Professional relationship, the client relies on the professional to protect him from any latent, procedural harm that may lurk. We trust that the professional knows what she’s doing and will lead us by the hand through every step of the process . . . We depend on her to “execute the process” according to a high standard of care. She knows the time deadlines and the appropriate forms and nuances of the transaction, and pay her well to keep us on track for successful, timely, and happy completion.

The responsibility of the client is simple:

  • Be attentive to the requests of the professional, and take appropriate action in a timely way.
  • Pay attention to the details and always ask for clarification needed for understanding
  • Focus on the important decisions and make them in good faith

As a Principal and owner of an active Real Estate Sales Firm Pareto Realty, These are the things that can “keep me up at night.” I, and most Principal Brokers, invest countless hours working with our Affiliate Broker Agents to be as certain as we can that all of our clients have the solid representation they deserve.

Do things right, and imputed knowledge is a lot less scary!

PS . . . This post applies to ALL Professionals (I just had a very frustrating experience with a Health Insurance Agent did not do all of the above well – Unnecessary aggravation and derailment of what was an otherwise smooth Friday . . . It took me about an hour and half to clean up the mess that never would have happened had that agent read this post before . . . Ah yes . . . So that makes all of this MY fault because I hadn’t published this post – Shame on me!