Friday, February 29, 2008

The Secrets to Real Estate Success

The Santa Cruz Sentinel published an article today featuring the testimonies of Santa Cruz's most successful Realtors.

Frank's secret? "I love helping people."


by Jondi Gumz, Santa Cruz Sentinel

Homebuyers are scarce. Sales are down 50 percent compared to the peak of 2005.Yet some real estate agents closed a deal a month -- or more -- last year, the slowest year of the past decade. How did they do it?

About 90 people showed up Wednesday at a luncheon organized by the local chapter of the Women's Council of Realtors to hear six top agents share their secrets.

Quipped moderator Robert Bailey, president of Bailey Properties, "This could be the new cast of 'Survivor.' "

When Sally Bookman started in real estate in 1974, she made it a habit to write notes to the prospective buyers she met at open houses. She didn't procrastinate; she started writing notes before the open house ended. Now she has a huge referral business.

Bookman, originally from London, bought a house while studying at UC Berkeley. She filled the house with students, then bought the lot next door, and then another house.

"I never lost at Monopoly," she said.

She said she uses her doctorate in social anthropology to figure out what clients want."If you drive that car and the way you dress, I know what kind of house you want," she said.

Frank Murphy made only one deal in 1998, his first year in real estate. He had expected his new career would mean lots of free time, but he worked 70-80 hours a week.

He uses his 15 years of experience as a building contractor to help buyers solve problems.

"I love helping people," he said.


Audrey Tennant, who's been in the business for 20 years, stays in touch with clients. She uses seasonal marketing campaigns. Working in human resources and marketing for a food and wine company over the hill, she learned patience during union negotiations.

Real estate, she said, is "a give and take business not a push and shove business."

Michael O'Boy initially didn't want to follow in the footsteps of his dad, who was a broker. He became a therapist instead. Then he traded that profession for real estate in 1995 when he decided he wanted to become a homeowner. He found his background as a therapist helpful."You listen more and say less," he said.

Lela Willet taught kindergarten until she had a second child. Then she left the classroom to work with her husband, a builder. She sets aside time once a week to call every one of her clients. She does it away from the office, so she doesn't get interrupted.

Being with 5-year-olds, she learned patience and listening, valuable skills in real estate.Pat Simmons made connections in construction working as a masonry contractor with his father."I can recommend folks I would use," he said.

He also can advise clients how much to offer when they tell him the kitchen has to be updated. One lesson he learned from his father: Ask yourself: "Are you proud to put your name on your work?" Ask that question every day.

So what do they all have in common?

It's not high-tech gadgets.

In fact, only Murphy and O'Boy like technology. All of the others outsource computer tasks.Experience counts, certainly, but that's not enough by itself.

For each of these agents, the key is helping people. It's finding out what their clients need and helping them get what they need.

As Simmons put it, "It's about success for the client, not you and the commission."

Well said.


Lessons from survivors

Audrey Tennant
Firm: David Lyng Real Estate
'07 escrows: 14
Started in: 1987
Was in: Human resources/marketing
Relaxes by: Spending time with grandchildren.
Quote: Look for opportunities. Remember buyers turn into sellers.

Frank Murphy
Firm: Keller Williams Realty
'07 Escrows: 19
Started in: 1998
Was: Building contractor
Relaxes by: Traveling
Quote: Instead of trying to make a buck, I have an opportunity to help people solve a problem.

Mike O'Boy
Firm: Coldwell Banker
'07 Escrows: 25
Started in: 1995
Was: Therapist at Dominican Hospital
Relaxes by: Coaching
Quote: Don't take for granted where your business will come from. An open house three years ago could result in a client. Return every phone call.

Monday, February 04, 2008

Proposal to Increase Lending Limits: What Do You Think?

Designed to "jump-start the ailing U.S. housing market," the current federal economic stimulus plan includes a proposal to increase the size limit on loans from mortgage financiers such as Fannie Mae and Freddie Mac. At the moment, the limit is set at $417,000. With this proposal, the loan limit would go up to $729,750.

According to this post at TheTruthAboutMortgage.com, "the hope is that the easing of the loan limits will allow homeowners in more expensive housing markets to obtain more favorable financing, which in turn should promote sales and uphold home prices."

However, not everyone is quite so optimistic. This article by Al Yoon of Reuters gives a more cynical view than the opinion over at TheTruthAboutMortgage. Yoon fears that raising the loan limit might unintentionally raise mortgage rates, since "increasing the eligible loans to $729,750 from $417,000 would change the characteristics of mortgage-backed securities, leading traders to exact a premium for increased interest-rate risk." Higher mortgage rates would in turn, of course, "make it even harder to unload already high housing inventories and existing homes on the market, delaying any housing recovery and potentially extending the U.S. economic slowdown."

We're curious what you think about the economic stimulus proposal and its hope to increase loan limits . Go ahead and read both articles (click on the links provided) and let us know your prediction!

How the New Rate Cuts Might Affect Your Mortgage

As most of us know, last Wednesday marked another .5% rate cut for the Federal Reserve, placing the current interest rate at a flat 3%.

Alan Heavens of the Chicago Tribune has written an insightful article about the way that short-term interest rate cuts affect the public's perception of mortgage rate. Click here to read about the rush for refinancing in the wake of the most recent rate cuts.