The Town Broker

Archive for March, 2010

Hiring Your Next Agent: “The Superhero Question”

Earlier today, I had the opportunity to attend what we call a Masterminds Session here at Keller Williams Realty. Facillitaed by Shaun Rawls, the Regional Director of our NY Tri-State Region, over 100 agents (most from Keller Williams, but many from other local companies) gathered to explore the common mistakes made by many agents today, and the things that we can do to be better as professional Realtors. It was during this session that Shaun shared something that really struck me.

He likened the real estate transaction to flying on a commercial airliner. “Any pilot can get you from place to place when things are going smoothly” he said. ” But when there’s a mid-air crisis, you need a pilot who can maintain their cool, project a calm confidence, and set in motion the proper set of actions that will get you home safely”. He acknowledged that we are in a very challenging and unusual real estate market, and told the room that ”people hire you for your ability to heroically solve their most unusual problems”.

The challenge is that the consumer has no real way of knowing what they need from an agent until things start getting complicated.

The Agent as Superhero

This got me thinking about Captain Chesley “Sully” Sullenberger. You remember him…”the miracle landing on the Hudson”? (Incidentally, Capt. Sullenberger retired just last week after an amazing career.)  His fateful flight inspired my very first blog post over a year ago. The take-away I had then remains just as true today:  Heroism is the outcome achieved by ordinary people when extraordinary preparation meets with extraordinary circumstance.

It’s All In The Preparation.

Whether a commercial airline pilot or a real estate broker, every professional has the responsibility to constantly work at becoming better and better at their craft. It’s the fiduciary responsibility known as reasonable care that I wrote about in a previous blog post, and it’s why I find Mastermind Sessions like today’s so useful.

Do you want a pilot who is prepared for anything? Or, are you OK with one who is banking on the fact that it “usually doesn’t get too turbulent up there?” If your answer is the former, then the next time you’re interviewing an agent, I suggest that you ask them what I’ll call “The Superhero Question.” It goes something like this:

• Describe a transaction that went horribly wrong. (They may squirm a little, but that’s OK…) What training did you have that prepared you for it, and what did you do to heroically solve your clients’ most unusual problem?

Now wouldn’t that be useful information to have when making your agent selection?

Tags: agent selection, mastermind, preparation, reasonable care, superhero, training

Is Your Agent Following The Law?

When I was 18, I bought my first set of wheels. It was a 1969 Rambler Sedan. My friends and I called it “The Midnight Rambler” in deference to the Rolling Stones song that came out in the same year. It was an old car when I got it…having been in our family for over 10 years. (I think I bought it from a cousin for about $350).  I think about that car often…not only because it was the only car I’ve ever owned that had a manual 3-speed shift on the steering column…but because being an old car, it helps me remember my fiduciary duties to my clients.

Fiduciary Duties and the Acronym Old Car.

As a real estate agent, we have specific legal responsibilities to our clients. These are known as  fiduciary duties. The acronym Old Car can be used to represent the 6 fiduciary responsibilities that all real estate agents owe to their clients. I’d like to outline them here. (And please understand that a client is someone who has entered into an agreement for representation by the agent, either as a buyer or a seller. The agreement is typically written, although there are some instances where it can be created orally. A customer is someone Read the rest of this entry »

Tags: agency, fiduciary duty, responsibilities to clients

Why Mortgage Rates Will Rise…Soon!

We all know that there is a direct relationship between your mortgage interest rate and how much house you can afford. The cheaper it is to borrow money, the more house you can squeeze into your budget. Ok…Duh! And unless you’ve been living in a cave somewhere, you’ve been bombarded with the news that mortgage interest rates are near their lowest levels in years, and that NOW is the right time to buy or refinance your home.

Well…I don’t have a clue as to whether or not NOW is the right time for you to do anything. But let me tell you why it it’s going to become much more expensive to borrow money…if you wait much longer.

The Fed Has Kept Rates Artificially Low

Since the end of 2008, the Federal Government has been the largest buyer of mortgage backed securities, with $1.25 TRILLION spent to date. This has kept interest rates artificially low (or lower than they would have remained without intervention). On March 31, 2010…a little over 3 weeks from now…this will stop. And rates will start going up.

How much? Hey…If I knew that I’d be sitting on some mountain top somewhere dispensing Read the rest of this entry »

Tags: home affordability, interest rates, mortgage

Westfield, NJ Market Report- February 2010

In Westfield NJ, the month of February closed with inventory levels coming down (at least vs. last February), and buyer demand on the rise. Here are the key numbers for the month.  Check out this video report for more detail and analysis.

Number of Active Listings: 152

Number of Closed Sales:    15

Average Days on Market:    55

Median Sale Price:     $756,000

Tags: market report, real estate statistics, Westfield

Why We Love Walkable Communities!

One of the things that makes the “in-town lifestyle” so much fun is the convenience of having so many things so nearby. ”Walkable communities” offer real benefits to those who live and work in them. Walking leads to better health,  reduces greenhouse emissions, and provides local businesses the foot traffic they need to thrive. 

We think that “walkability” is terrific, and many of our towns have it! Read the rest of this entry »

Tags: walk score, walkability, walkable communities