Real Estate Truths and Myths

Wade Webb on October 19, 2022

There are two kinds of people: Those who say, “I will believe it when I see it.” And those who say, “To see it, I know I must believe it.” ~ From The Secret ~

Recently I was away on a vacation and had time to dive into some great books. I just had to share with you some great nuggets from one of my good friends Richard Robbins. Richard personally sent me a copy of his new book “Deliver the Unexpected, a Business Fable and 6 Other New Truths for Business Success.” I cannot say enough about this book and would recommend anyone in real estate or business in general to take the time to really enjoy this great story. Without ruining the book for you I want to share the 7 powerful myths and the even more powerful 7 Truths for business success……

Truth # 1 – The Future Myth (The Challenge with Setting Goals) A great goal doesn’t motivate us from the outside in. it inspires us from the inside out. The problem is most people have been conditioned to define only the goal and not doing anything to move toward their goal. Example – Road Trip or Holiday. We research the route, buy a few maps, and get excited about the trip. Until you put in the mileage every day a goal is just that… A distant point that you never reach. You can’t drive from New York to LA without getting in the car and driving. Myth – Goals create success by telling us where to arrive tomorrow. Truth – Goals create success by telling us what to do today. Focus on the “DO” and the actions of your goals.

Truth #2 – The Knowledge Myth (Knowledge is Power) Example – A woman was held back because of not having a degree or diploma. Ironically, the knowledge that degree (piece of paper) represents is available for free in a library or online. You can have the degree and the knowledge and still not be successful. It isn’t the knowledge that matters but what you do with it that makes all the difference. People allow their lack of knowledge to hold them back, never reaching their potential. Robbins says get over the knowledge and get into the business of doing. Myth- Success comes from knowing what to do. Truth –Success comes from doing more of what we already know. Don’t worry about what you don’t know about not having a degree in real estate. Focus on doing more with what you already know.

Truth #3 –The Failure Myth (Fear of Failure) The fear of failure has its purpose, but it is not to reach success. The fear of failure will only take us so far and that is survival. There are so many things we can do in real estate that we don’t because we are afraid to fail or of being rejected and worried about not doing them perfectly. The key to getting comfortable and making progress is to fail more by trying more. This is how to gain the experience needed for success. Example – Oprah Winfrey was fired from her first job telling her she was not fit for television. Walt Disney was fired as a newspaper editor telling him he had no imagination. J.K Rowling author Harry Potter was on welfare and Seinfeld froze up and was booed off stage in his first year as a stand-up comedian. Myth – Failure is the opposite of success Truth – Failure is the path to achieve success

Truth #4 – The Abundance Myth (Giving vs. Having) What is your intention? Your intention with clients is not to get their business, land a listing, and make a sale. It is to serve people… to help others get what they need… help them achieve their goals. People implicitly trust you when they know you have their best interest at heart. That is how an abundance future is created. Example – What are some of the most affluent people doing with their money today? For example, Bill Gates, BONO from U2, Warren Buffet who are focusing on giving back not on what they have. Myth – Abundance is defined by what we have. Truth – Abundance is defined by what we give.

Truth #5 – The Value Myth (What do You Value?) Example – It’s Valentine’s Day. You buy your wife flowers. You bring home the flowers and she says “thank-you”… YAWN! Doing the same old thing once a year isn’t that original right? So how would you increase your value next Valentines? How about taking the time to order her favorite flower (TIP: you first need to find out what that flower is) and have them delivered with an anonymous note that says “Get dressed up tonight”… Then have a limo arrive to pick her up where you are waiting to wine and dine her. Think she will feel “valued” this year? Deliver the unexpected in your business as well. Myth – Value is delivering more of what people want. Truth – Value is created by delivering the unexpected.

Truth #6 – The Attraction Myth (Challenge Have-Do-Be Mindset) Example – We believe we need to have more time in order to exercise and to be healthy. Or we think when I earn more money, then I will save more and then I can be more financially responsible. But these beliefs are backwards…… If you begin to be financially responsible now then your intention and behavior changes and you will make your bill payments, save, and invest which will then change what you have financially. These actions change your beliefs about money and success which in turn will change what you “have”. BE – DO – HAVE Myth – We attract into our lives what we want to have. Truth – We attract into our lives who we are.

Truth #7 – The Happiness Myth (Have vs. Be) Being happy isn’t a myth but having happiness is. Everyone is striving for happiness like happiness is a thing, something you can buy or have… but it is not. Happiness is something we choose in any moment. You can’t have happiness; you can only be it. “Choosing to be happy is so difficult sometimes but at the same time is so liberating” ~ Missy Jenkins ~ (Missy is in a wheelchair for life after being shot in a high school shooting) Myth – You can have happiness Truth – You can’t have happiness. You can only be it.

Thank you Rich Robbins for sharing this great fable and these powerful Success principles… I hope they will impact you and your real estate success in 2023.

Strength and courage,
Wade

How To Qualify & Prepare A Buyer In 2021

Wade Webb on June 9, 2021

A mentor of mine always said that it was better to know to lose a buyer on Tuesday instead of them not buying and dragging you around and not buying on Saturday. In the buyer charged market the ability to qualify, educate and empower a buyer is a critical skill for the buyer agent and their buyers success. This week we want to look at the new and improved buyer qualifying process that will help you win and your buyer win in this crazy buyer market. Let’s assume we have converted our buyer to a meeting on zoom and here are the steps we can take next with our session.

Step 1 – The FORD technique– ask them about their Family, Occupation, Recreation and Dreams in order for you to build their trust, likability, connection and for you both to discover commonalities.

Step 2 – The Safe Island ( always let them know up front what will be talking about and what will happen before it happens to really make them relax.

Step 3 – Educate them on the market by showing them stats, graphs and of sales activity for buyers already purchased in their property search criteria so they are prepared and see others paying well over the asking prices and not just them.

Step 4 – Review the appropriate agency forms like DORTS, PRIVACY, FINTRAC, and provide them with a blank contract of purchase and sale to review on their own time in advance of making an offer.

Step 5 – Ask them pre planned open ended questions – Who, what, where, when, why, how (cash or credit) ? Then….Who? If they say credit.

Step 6 – Having our financial house in order to compete. Meaning we have a lender that is providing us with a physical approval letter. Willing to take a reference phone call on our behalf from seller or seller’s agent during presentation of offers. Give us the ability to make a cash offer. I then ask their permission to call my financial person and set appointment with them to ensure this all happens for them.

Step 7 – Conditional or Subject Free Offer conversation with the buyers and risk and reward for each situation.

Step 8 – Deposits discussion whether the deposit goes with the offer right up front and send a photo of the deposit to give you some leverage with your offers.

Step 9 – The appraisal dilemma and if the appraisal comes up lower than the purchase price and what would we do then.

Step 10 – Bully showing strategies on properties with tenants or sellers making it difficult to get in to viewing the property.

Step 11 – Bully or Pre-Emptive offer strategy and try to avoid the multiple offer situation and we keep re submitting offers until we get response from the seller and their agent or our budget runs out.

Step 12 – The Multiple Strategies you will be using to compete in the multiple offer situation and what are you willing to do to compete against the other bids.

Step 13 – Paying for the property inspection to be done during viewing appointment to avoid the contingency of a home inspection condition in the offer.

Step 14 – The Escalation, Preferential offer clause ( contractually not enforceable ) Starting purchase price included and add following term….“The purchase price is $10,000 above the price offered in the nearest competing bona fide offer acceptable to the seller. Upon acceptance of this offer, the seller will provide a copy of page 1 of the competing offer with the names struck out or removed for privacy purposes.” Contact listing agent and advise them of the term and ask them just to stroke out the above term and counter at the appropriate purchase price and give you and your buyer 5 minutes to respond to their counter offer price. We accept or decline and the seller returns quickly to the next highest offer.

Step 15 – You create and find versus sit and wait for a listing plan in place to find off market properties for the buyers.

Step 16 – Closing questions – Maybe this isn’t the right market for us? Maybe now is not the right time for you? How do we play the game? What would you be willing to do to buy in this market and compete?

Step 17 – You the agent sign off on your bully offer, multiple offer, finding off market property plan and escalation clause strategy and then ask them to sign off in return a buyers agreement.

So there you have it a step by step informative, strategic process to identify your quality of buyer and know what your chances of competing in this market will be for them and you. Then you make a decision whether to move forward or to wait until the market winds change. Feel free to share any steps or strategies that you may want to add to the process with myself and the rest of our readers!

Strength and courage,
Wade

Top 10 Reason’s Why You Buy & Sell Over The Winter – Debunking The Myth

kelowna on November 30, 2016

The #1 objection all agents are getting from real estate buyers and sellers is “we are waiting until spring.” So having the ability to change how the buyer and seller feels about waiting to buy or sell until the spring is imperative to your winter real estate success!! The fact of the matter is, the reasons and myths are endless so it’s our job as REALTORS® to be equipped with facts and a strong reality check to combat these reasons we hear every day. To help you through the winter season I put together some of the top reasons a client would want to choose this time of year to buy, sell and list a home.

Top Reasons to Sell Real Estate Over The Winter

#1 – Only Serious Buyers Looking

• Yes there are fewer buyers, but those buyers are usually very SERIOUS about making a purchase or many HAVE to make a purchase. Who else would want to look at buying during the winter?

#2 – Less Listing Competition

• Most sellers wait until the spring or summer to list, so your home will have far less competition
• Spring = Greater supply = Same Demand = Less Money

#3 – January is the Biggest Corporate Transfer Month

• More corporate relocation moves happen during January than any other time of the year.
• Catch the corporate relocation buyers while you can.

#4 – High Attentive Efficient Customer Service

• By putting the home on the market during the winter you experience better, personal and faster customer service from movers, lawyers, banks, insurance providers etc. Listing realtors have more time to better serve their sellers and get all the marketing strategies in place.

#5 – More Time to Get Top Dollar

• By starting to market your home early, you may be able to secure a higher price with more listing exposure time. This season allows a seller to not be in a rush to sell and allow for more market exposure time and ultimately generate a higher price than in the spring.

#6 – Time to Sell Now, Buy In The Spring

• If your home sells quickly, you will be able to shop for your next home during the winter, a great time to find a bargain!
• More time to look and not pressure to shop and beat the other buyers. Sell first and then buy in the spring when the inventory and selection begins to rise for you when you are the buyer.

#7 – Stand Out in a Smaller Crowd

• Most REALTORS® and offices have less inventory during the winter, enabling your home to stand out even more.
• Less marketing noise out there for the buyers and they see your home with ease now.

#8 – 20% of Homes Sold During the Winter

• Buyers and Sellers are usually quite motivated to get the transaction completed. We still have 20% of the business in the year occurring during the winter.
• This can mean less price haggling and fewer hassles during the process.

#9 – Non-Contingent (Subject to the sale) Buying

• By selling now, you may have an opportunity to be a non-contingent buyer during the spring, when more houses are on the market!
• Less “subject to the sale” offers from buyers and you are not one of them when you are buying your next home.

#10 – No Yard Work When It’s Snows

• Great time for a home that needs a yard make over to sell.
• No need to worry about your yard work. Snow makes it look fresh and white.

BONUS…..

#11 – Buyers Time Everything Too

• Buyers begin the search and purchase for spring moves in January, February.
• Busy move times are March Spring Break, April Easter, May long weekend and July long weekends

#13 – No Pricing Wars With Others

• Less choice for buyers means less sellers to play pricing against each other
• Buyers will often make more concession in their buying decision with less choice

#14 – Holiday Magic Show Time

• Property shows well, almost staged with holiday décor adding to the ambiance
• Tis the season for your home to shine!

#15 – Higher Quality Showings

• Little chance of quick showings and not being prepared to show your home
• Easier time of year to make appointments and give sellers advance notice.
• Higher quality showings

#16 – Right Buyer, Right Time

• The odds are the same for the right buyer looking at your home regardless of the season.
• Right buyer, right time, right home

Top 10 Reasons to Buy Over The Winter

#1 – Little Or No Competing Offers

• Little or no chance of multiple or competing offers for the buyer during this time of year

#2 – Buyers Receive Better Customer Service

• Better service from all service providers like the agents, banks, insurers etc. Not as busy now.

#3 – Seller Motivation Increases

• Sellers motivated at this time of year if still trying to sell from summer or fall.
· Sellers willing to negotiate, been on the market for some time now. Give and take.

#4 – Expired Listings Available Now

• Buyers can shop the expired listings market, which has the largest selection this time of the year.

#5 – Better Closing Options

• Good time of year to make an offer and do the due diligence, buyers can move quickly now or slower in the spring if not in a rush.

#6 – Alternative Housing Options

• Easier for sellers to find alternative housing, not as much pressure finding a rental vs. the really busy spring and summer season.

#7 – Subject to the Sale Acceptable

• Great time for buyers to make contingent “Subject to the Sale” offers and get them accepted and movement on the price.

#8 – Better Available Moving Services

• Easier time for a buyer to move and find help and services like movers, cleaners, storage.

#9 – Smoother Mistake Free Completions

• Better timing for buyers on completions with lawyers, banks land registry. Not that busy and time to attend to you now.

#10 – Buyer Competition Lower

• Less competition for the same property from other buyers on the deals that pop up this time of year.

Now that you’re equipped with ammo to overcome any objection, debunk the myths and go out there and list and sell some real estate this winter season

Strength and courage,
Wade

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People Don't Buy for Logical Reasons… They Buy for Emotional Reasons… What are Your Client's Reasons?

kelowna on January 23, 2013

What is Your Client’s Pain or Pleasure? Do You Have a Clue?

In order to have a client do what you want them to do you must first help them discover their inner pain or pleasure.
Joe Stumpf ~ My Mentor

There are only two emotions that trigger someone to act and those are “pain” and
“pleasure”.

In the real estate business I find so many agents do not recognize the importance of discovering what their buyer or seller’s true driving motivation is.

Is your client running from “pain”?

Are they running to “pleasure”?

Knowing the answer to those questions is only the tip of the iceberg and to truly help them alleviate their “pain” or realize their “pleasure it is critical as a real estate agent you spend the time to dig down to the root or source of what your clients desires or fears truly are.

How much time do you spend with your clients to discover what they really fear or desire?

Most agents ask “level one” questions to their buyers (and sellers) whereas
the key to truly serving your client is to dig deeper and get to seventh level
questions.

Asking a minimum of seven questions, called the “5-6-7 technique” will help you and
your client discover what their hot button truly is.

For example…

[ez_box title=”5-6-7 Go Deep…” color=”blue”]

Level 1… “Why do you want to buy?” you ask
“We want to upgrade” they reply

Level 2… “Ok great” you reply… “Why is this important to you?”
“Well the kids are growing up and we could use more room” is their reply.

Level 3… “Oh yah… and why is that important to you?”
“As the kids grow up they are becoming more independent and want to spread their wings a bit more”

Level 4… “That is great… can you tell me a bit more about that”?
“Well Johnny is really into drums and could use a room in the basement to “hammer away” and Suzie
loves to sew and it would be great if we had an extra bedroom she could set up “shop” in… and of course Diane and
I love our outdoor living space so a bigger yard would give us more opportunity to putter”

Level 5… “Very cool… I don’t want to be nosy but can you tell me why all of this is important to you?”
“Well a person only lives once and time flies by so if a person isn’t diligent about capturing their dreams time
just seems to go by”

Level 6… “Oh yah… I hear you… this is so interesting… tell me more please”
“Ever since I was first married it has been my passion to raise a family where we
all help each other live happy, fun and fulfilling lives.”

Level 7… “That is such a great goal… how do you feel when you focus on these passions?”
“Are you kidding me? It makes me excited… I feel alive and it makes all the hassles and trials of
life completely worth it.”

[/ez_box]

Can you see the power of this?

Once you get to Level 7 then you summarize…

So it really isn’t about upgrading is it?

It’s about spending time with your wife and children who are the most important people
in your life and being able to grow together as a family helping each other realize their dreams.

At this point they are revved up and hanging on your every word.

And you ask them… “In order to realize this goal”

What do you think you need to do differently?
What do you think you should do next?
What are you waiting for?
Why aren’t you doing it?

The best way you can serve your client is to help firmly etch in their minds and emotions
exactly what it is they are running from or what they are running to.

Use the 5-6-7 method to remind them of their pain and pleasure and help them create the
results in real estate they are looking for.

Strength and courage,

Wade