Giving Feedback

Giving feedback that is readily accepted, and then acted upon is a precious life skill. Any fool can build barriers by barking orders and attempting to command and control. Building better behavior takes a few time tested techniques.

Recently, a friend of mine was at a fast food restaurant with his teenage son. The counter person took his order without saying thank you or smiling. They slapped the change on the counter. When my friend got his order a few minutes later he gave the clerk “a few customer service tips”, and ‘a piece of his mind’. The clerk turned their back and walked away silently.

As my friend retold the story, he made a few comments about ‘kids today’. He was surprised that I suggested that it was he that had the communication problem. He asked if I were in that situation, what would I have done differently.

At most fast food establishments, workers have uniforms and name badges. I told my friend I would have used the person’s first name when addressing them. I would have then asked their permission to give them some feedback.

Toastmasters has a great feedback method called the sandwich. An evaluator is encouraged to say something positive, then give a few suggestions or constructive criticisms, and finally conclude with a few more positives. In other words, be lavish with your approbation, and effusive with your praise. It’s a great way to anesthetize any proposed changes.

My friend vented using ‘you’ statements. A more effective feedback strategy is to use an ‘I’ message. For example, “When you don’t smile, or say thank you, and slap the change on the counter, it makes me feel unwelcome, taken for granted, and disrespected.

Giving feedback is an art form. People may forget your message, but they will not forget how you make them feel.

Paul Pastore 7/26/2011

“I want to cancel my listing”

What is your personal policy when a seller says they want to cancel their listing? My listing agreement contains a sizable cancellation fee. Any seller may take the home off the market for free at any time. But, if they want to cancel due to a minor inconvenience, or impatience, the fee is applicable.

The fee is a litmus test to make sure a seller is ‘serious about selling’. It is also a disincentive if a friend or relative suddenly gets their real estate license. Or, if another agent has a conversation that suggests ‘the grass is greener on the other side of the fence’.

Recently, several friends and I drove to Utah to compete in the Bryce Canyon half marathon. We all made hotel reservations prior to arriving at the race location. On the day we arrived we discovered the motel was forty minutes from the 6 A.M. race starting line. We thought about cancelling and finding closer accommodations.

My hotel had no fee to cancel, so I did. My friend’s motel had a minor fee, and he cancelled. Another runner would have to forfeit a nights lodging, so he kept his initial reservation. In my opinion, the third hotel had the best policy. I’m sure if there were an emergency the manager might bend the rule, or offer a credit for another stay.

Some agents use a ‘cancel anytime for no fee’ as a unique selling proposition. In other words, “Fire me at any time if you are unhappy”. These same agents profess that very few sellers cancel. In my opinion, it is difficult to deliver happiness in a distressed market.

“I want to cancel my listing” is a sentence a seasoned agent may hear infrequently. But, it’s a good idea to have a policy in place before the potential problem arises.

Maricopa county Market Headlines June 2011

·         Supply continues to fall, though rather more slowly in the ranges between $200,000 and $800,000.
·         Demand very strong below $200,000 but showing seasonal weakness above $200,000.
·         Average sales price per sq. ft. is stable below $300,000 and increasing above $300,000.
·         A change in the sales mix could adversely affect overall market average prices and medians.
·         Foreclosure activity declining and active REO inventory is at the lowest level for several years.

Homes under $100,000
·         Demand remains strong while supply is still declining. Prices now stable for 7 months.
·         Demand normally falls off during the summer but the demand in this price range is dominated by intense buying by investors who are only slightly affected by the seasons.
·         Active listings are now 7.8% below this time last year.
·         This supply continues to gradually shift away from REOs (down 15.7% in the last month) towards short sales and pre-foreclosures.
 
Homes Between $100,000 and $200,000
·         Supply down and demand fading slightly. Pricing remains very stable.
·         Having peaked in October, supply has fallen another 6.8% in the past month and is down 23.4% when compared with March.
·         Demand has faded a little, but this is in line with normal seasonal patterns.
·         REOs dropped to 38% of monthly sales while normal listings also fell to 38%. Short sales and pre-foreclosures increased from 21% to 24% of sales.
 
Homes Between $200,000 and $400,000
·         Buying interest falters a little although supply continues to decline. Pricing remains very stable.
·         The supply of single family homes dropped by another 4.1% between May 26 and June 26, and is now down 17.0% over the last three months and 29.2% over the last year.
·         Over the last month REO supply actually rose by 2.4% reversing an 8 month trend, while short sales and pre-foreclosures fell by 3.0% and normal listings fell 5.5%.
 
Homes Between $400,000 and $800,000
·         Supply falling but demand continues to weaken. Nevertheless sales prices remain on an upward trend.
·         Single family homes between $400,000 and $800,000 have experienced a 6.4% fall in active listings in the last month.
·         The sales volume strengthened slightly in June, with monthly sales up 7.0%.
·         REO supply didn’t change during June at 84 homes, but this is down 10.6% over the last 3 months.
 
Homes over $800,000
·         Demand weakens for the summer months but supply is down again. Sales prices continue to climb.
·         We see the first sign of the spring season turning to summer as pending sales start to fade.
·         The good news is that the supply of homes above $800,000 fell 8.5% in one month, 18.9% over three months and 29.2% since June 2010.
·         Active REOs rose 18.4% from 38 to 45 over the last month but these represent only 2.9% of total active listings.

Say ‘hi’ to the F.B.I. this summer

This is a great summer to visit the F.B.I. Real estate agents can fly to Washington, D.C. and take a tour at the headquarters located at 935 Pennsylvania Avenue NW.

Another way is to commit loan fraud and have a local agent subpoena you.

In several areas, including Phoenix, there is an F.B.I. task force already in place working on loan fraud. Many of the agents wear gray clothing to symbolize the numerous gray areas that real estate agent should avoid.

One area of concern is called ‘buy & bail’. Your client decides to buy another property to take advantage of the great deals in this market. The problem is they are upside down on their current home. Their agent suggest a bogus lease letter to a fictitious buyer or close relative. Bingo, loan fraud.

Another example is if you are a real estate agent going through a short sale, you will not be allowed to receive a listing fee on your personal residence. But, a ‘creative agent’ may ask a friend to co-list the property & refer a portion of the commission to them after the deal closes.

A slogan for real estate agents should be, “If in doubt, don’t”. Don’t get involved with clients who are considering loan fraud. Don’t provide ideas, forms, ‘off the record’ suggestions, etc. Remember Forest Gump said, “Stupid is as stupid does”.

Some agents might claim they can’t force their client to do things by the book. Others might say they simply plan to ‘look the other way’. If you look up the word subpoena in the dictionary it might say, ‘to waste hours of your time and life answering an endless array of questions you could have avoided’.

Summertime is a great time to visit the seashore and the cool mountain lakes. The F.B.I. has other plans for wayward real estate agents.

Don’t rest on your laurels

One of the cardinal rules of real estate, selling, and life is: Thou shalt not rest on thy laurels. I need to confess this sin since I violated it today.

A client asked me to meet them at a local branch of Wells Fargo to sign a signature card on an account we have for a rental we jointly own. The young banker looked at me as we signed the paperwork and said, “Aren’t you in the real estate business”. I smiled and said yes. A little voice whispered to me, “Hey stupid, why didn’t you hand him a card. Why didn’t you ask him if he had any real estate needs”?

Reactive agents rest on their laurels. Real estate agents that rest on their laurels have skinny kids and part time jobs. A recession is a great time to be a proactive, prospecting, back to basics, referral mover and shaker.

My banker buddy said he was using my website to look for his first home. The good news is he now has a friend in the real estate business. The great news is he taught me a wonderful lesson about not being a ‘secret agent’.

Relaxing and resting on your laurels can become a way of life. Before I went to the bank, I had my oil changed. Did I ask the service manager who up-sold me on a brake & power steering flush about his real estate needs? Of course I didn’t.

Did I ask my client, whom I met at the bank if she had any friends with real estate needs? No, strike three. What a wasteful morning in the annals of real estate selling.

Each day every agent has a choice to be proactive and ask for business or reactive and rest on their laurels.

 
Paul Pastore
ReMax Infinity

The Second Commandment of Selling

The second commandment of selling is Thou shall not discuss listing a property without all the decision makers being present. I violated this rule this past week.

My selling assistant set the appointment with our new clients. I failed to ask if both the husband and wife planned to be present. I assumed they would be there, then I realized what happens when you make assumptions.

Mrs. Seller was present and seemed to have a ‘chip on her shoulder’ since the property did not sell with the first listing agent. She had dozens of showing, but no offers. She was unsure why the property didn’t sell! She was unclear where she would relocate. She was unaware of what she expected to net. She would not discuss her expectations about pricing.

This began to feel like an episode of the ‘Realty Twilight Zone’. I looked at my watch and two hours had elapsed. Time flies when you are having fun, or wasting time. It reminded me of the old joke with the punch line, “What’s time to a pig”.

I asked Mrs. Seller if I could speak to her husband on the phone and she reluctantly agreed. Within five minutes he shared his feelings about pricing, and the reason for selling. It’s amazing the amount of clarity that can be achieved when speaking directly to all the decision makers. 

Mrs. Seller wanted a detailed list of staging suggestions before she signed a listing agreement. I questioned her about smoking outside while the property was listed.

We both agreed that she would discuss matters with her husband and we would all meet again if they wanted to proceed.

Several days have past, and the seller has not called. If they do, the maximum list price is 600k. An appraisal will be required, in addition to an adequate listing length. And, most importantly, no more discussions without both decision makers present.