Ask Dr Ken Edwards

Ask Dr. Real Estate
Is There Such A Thing As A Bad Listing?
by Dr. Kenneth W. Edwards GRI

QUESTION:

I was fortunate to get a couple of listings quickly during my first few months in the business. Unfortunately, neither has sold, and there's not been a whole lot of action on either one of them. Although I'm learning a lot, I'm beginning to wonder if I took overpriced listings. Any guidance on how to get people to list at realistic prices?

ANSWER:

Father Flanagan, the founder of Nebraska's famed Boys Town, maintained that: "there's no such thing as a bad boy." Some real estate agents subscribe to the Father Flanagan theory of selling real estate, in that they believe: "there's no such thing as a bad listing."

As much as I admire a positive and benevolent attitude, and although I firmly believe that creative marketing can work wonders in moving just about any property, I'm afraid I have to come down on the side of those brokers who maintain that time spent servicing grossly overpriced listings is extremely unproductive and exceedingly frustrating for everyone, most assuredly including the sellers.

As a newcomer, you've got a couple of challenges. First, you have to develop your expertise to the point where you actually know with confidence what an overpriced listing really is. Then, you need to cultivate your skill in working with prospective clients so they select an asking price that will result in an expeditious sale at a fair price for them, the buyers, and a well-deserved payday for you.

During your first year or so you will need to perfect your listing talents. Crucial to that is the competitive market analysis (CMA) that you will prepare for each potential listing. Get as much help as you can from the old pros in your office and try to get at least one of them to check the first few you do closely. If you can, get one of them to visit the property with you. That will not only help you, but it will impress the property owners that your office takes the whole process very seriously.

After a few months, you are going to be able to quickly arrive at a fairly accurate market range for just about any property you encounter. You will still do the formal research to validate your initial opinion, but you will get very good at pricing properties. The key then becomes to present your findings to the homeowners in a way that permits them to make the most reasoned choice for their circumstance. The critical word here is: motivation. If the property owners are highly motivated to sell (e.g., new job in new area and they need the money to buy a house there), chances are excellent that they will select a price in the low end of the range and will be cooperative and reasonable during the selling process. If they are not motivated (e.g., if they don't get their price they will be more than happy to remain put), the likelihood is that they will list high and be fairly inflexible in their negotiations. No matter what the motivation, you and your broker may still wish to take the listing, but at least you will be forewarned. You can, of course, always turn it down.

Philosophies differ somewhat on how the listing agent should handle the listing presentation as far as pricing the property is concerned. A former real estate licensing student of mine, who was an elementary school teacher, later became one of the most successful agents in our local area. She said her approach was to educate the sellers as best she could on current market conditions, concentrating on similar homes that had recently sold. She then presented a CMA with her estimated range of current market value of their home. "At that point it was up to the sellers to decide upon a specific asking price that reflected their situation."

If your listings are not selling, pricing is, indeed, the most likely culprit--"properly priced is practically sold" is how one old-timer broker I know puts it. But there may also be other reasons. Make sure that the owners have been given guidance on "staging the property" (cleaning, painting, sprucing up), and that you are marketing creatively and aggressively. Go for a price reduction as soon as practical, but be prepared to justify it and soothe bruised and tender feelings.

Should you take a listing that you know is overpriced? Your broker will have guidance for you on that, but typically during your first few months in the business you would probably take a listing at just about any price. That's not unreasonable, since you will, as you point out, get good experience out it.

In the best of all possible worlds, however, you would get that experience and get paid for it at the same time. I subscribe strongly to the theory: "A happy REALTOR® is a well paid REALTOR®."

Ask Dr. Real Estate
-Are Open Houses A Waste Of My Valuable Time?
by Dr. Kenneth W. Edwards GRI

QUESTION:

As a rookie, I am getting mixed signals from the old heads in the office. Some tell me not to waste my time with open houses. Others say it's a great way to market your listings, get exposure, and satisfy your clients. I want to put my time where it's likely to get the best return. Who is right?

ANSWER:

I would be the first to admit that many REALTORS® do, in fact, waste their time when they conduct open houses. That does not mean they cannot be an outstanding marketing and promotional tool. But first, a mini sermonette regarding the purpose of open houses.

Your Mission - Client Satisfaction: It's critical to keep in mind your objective in all of your marketing activities. It's to put your client's interests first and satisfy their needs. In every residential listing I've ever had the client has expressed an interest in holding an open house for their property. While open houses can be an effective prospecting tool for you, that's not your main goal. That being the case, your approach should be to do the most professional job you can of conducting that activity. Having cleared the air, let's take a look at some of the most common objections to holding open houses.

1. Nobody came: To ensure you do not spend a lonely afternoon watching old Star Trek reruns on the tube, you need to let people know ahead of time that you are having an open house. Of course, newspaper, radio and TV ads help, but they are not the only methods of attracting attention. Several strategically placed "open house" signs on the day of the event should pull in some traffic. Also let the neighbors know what is going on. I am assuming that when you originally got the listing you knocked on every door in the immediate neighborhood, introduced yourself, and passed out a property information sheet along with your card. A note in the mail or a flyer at their door inviting them to an open house will typically get excellent results. A few light refreshments adds a nice touch. Now what is the absolute worst that could happen? No one shows up. You could still profitably spend your time making phone calls, listening to self-improvement tapes, or reading professional literature.

2. The people who came were just lookers or nosey neighbors: I never could understand this objection. First, how do you know when someone is just a looker? They say, "I'm just looking." Right. Even if they are, in fact, just curious neighbors or browsers, many lookers eventually turn into buyers or sellers. As a minimum, if they are impressed with your professionalism they may mention you favorably when they are talking to other people.

3. You never sell the house your are holding open: Now don't say never. It has happened. What also happens is that you are in a position to meet people who might be interested in buying a different home. They may even have to sell their current place first. One of the secrets to success in selling real estate is to put yourself in situations where you are in eye ball to eye ball contact with people who are potential buyers or sellers. Whether they buy the product you're pushing on a particular day is not really that important.

Are You Folks From Around Here? I don't wish to be critical, but I have to mention a few problems I've noticed when I attend open houses incognito.

First, some REALTORS® seem reluctant to meet people. I'll give you an example. I went to an open house recently and noticed parked outside a luxury automobile with out of state plates. Inside there were two very affluent senior citizens wandering around on their own while the host was busy watching a football game on TV. I struck up a conversation with the couple and found they were relocating to the area to be near their children and were previewing the local housing options. They were not in the market for a home that day, but trust me, they were great prospects. I don't think our big sports fan ever found that out.

Second, I've been to many open houses where there was absolutely no information available about the property for visitors to take away with them. People often look at a lot of homes and it's easy to lose track. A flyer is a valuable marketing tool. Don't forget to include financing information. That's always a critical item.

Hey, What's Not To Like? When I was actively selling real estate I liked open houses so much I occasionally volunteered to take them for other REALTOR®'s listings. Here's why. At the end of each year I analyzed where my business was coming from. Invariably, I had three or four sales and several listings as a direct result of contacts I made at open houses I held. As my friends from New York say: "hey, what's not to like about that?"

Ask Dr. Real Estate
-Should I Buy The Farm?
by Dr. Kenneth W. Edwards GRI

QUESTION:

I heard a lot about "farming" before I entered the real estate profession, but I haven't seen any of the old timers in my office actually doing it. I'm not afraid of hard work, but is farming really worth the effort?

ANSWER:

It's possible that many of those veterans are actually doing their own version of farming, since the term includes a number of activities. It is also possible that they did a lot of farming when they were getting started and are now working primarily with former clients and referrals. In any event, it's important that you know what farming is, along with its potential benefits, so you can make your own choices.

Define Your Terms: Real estate farming is nothing more than a form of prospecting in which a specific population is targeted and "farmed" for prospective customers and clients. One reason rookie REALTORS® are strongly encouraged to farm is that it forces them into a disciplined, methodical approach to getting started.

An even more important reason is that farming, if properly planned and executed, can generate a lot of business. I once received an email from a young man who was currently a waiter in a restaurant. He said he was interested in a real estate career because "I'm not an order taker." That captures the essence of becoming a successful real estate professional. You have to generate business. Done properly, farming will help you do that.

Geographic Farming: In this type of farming you identify and map out a specific neighborhood and then design a strategy to become identified in that locale as the real estate professional to whom people turn. Becoming known is achieved through a variety of activities, including telephone calls, direct mail, and periodic promotional activities. The size of the farm can vary, but may be as large as several hundred homes.

Hi, Neighbor! When I teach my real estate licensing class at the local community college I suggest to my students that as soon as they are licensed they let everyone in their neighborhood know they are in the business and provide them with information about prior and current sales of homes in the neighborhood. One student lived in a very nice area of new homes. She followed my advice (and actually improved upon it considerably) and got a listing and sale almost immediately. Since then she says it has been an incredible source of business for her.

Sphere of Influence Farming: In this version the target population is a group of individuals identified on the basis of membership in clubs or fraternal organizations, or it may simply be friends, former business associates and even relatives. The most lucrative type of sphere of influence farming involves former clients and customers. That won't help a lot when you are getting started, of course, but it's critical to keep in mind. If, after a few years, you are not getting a steady flow of repeat business, you need to have an honest, heart to heart talk with yourself (and your broker) to determine how you need to change your approach.

Learn to Dance: Here's a form of farming that can pay big dividends. Each time you get a listing (very definitely starting with your first) you will have an incredible opportunity to establish a "mini farm". I call this "Focused Fandango Farming." (Relax, I'll explain.) Here's how it works. When you put your sign in the front yard all of the neighbors within a block or so will be extremely interested in what's going on. They will be watching your progress closely. The number one question in their mind will be what the asking price is, and when you put that "sold" sign in the yard they'll obviously want to know what the final sales price was.

Before you can implement this you will need to do what we called "grunt work" in the Air Force. First you will need to plot your target area, which could be as many as forty or fifty homes in the immediate neighborhood. Then get the names and addresses of the home owners, establish contact by phone or mail, and follow with a visit. Many agents are petrified by the prospect of knocking on a door cold, but in this situation the focus is on the listing, which provides the perfect vehicle for you to demonstrate your professionalism. When you have your open house, invite them. When you sell the home let them know. You can see that once a few of your listings sell, you've got the potential for establishing domain over a very impressive array of your own little fiefdoms. OK ,why "focused fandango farming?" You'll be dancing all the way to the bank.

Farming and the Weather: Mark Twain is quoted as saying: "Everybody talks about the weather, but nobody does anything about it." It's a lot the same with real estate farming. Translating talk into action could result in continuing bountiful harvests for you. Start plowing.

Ask Dr. Real Estate
Is It A Complex Or Am I Really Inferior?
by Dr. Kenneth W. Edwards GRI

QUESTION:

I've been a REALTOR® for a little over a year and after a rocky start am earning a decent income. There's something that really bugs me, however. Another woman in our office who began at the same time I did - I'll call her Molly -is setting all sorts of sales records and is probably earning twice as much as I am. She works fewer hours and frankly I can't see that she's got any more on the ball than I have. To add insult to injury, she dresses like a hippie and drives a car that barely runs. I know it's petty and I'm trying to be mature, but I'm developing a complex. Do you have any suggestions to help me improve my attitude?

ANSWER:

It's natural to compare your accomplishments with others who came aboard about the same time you did. That's particularly true if you went through a company training program together and got to know one another well. But I'm going to tell you something you already know: it shouldn't make the slightest difference to you how well Molly does. The only person over whom you have more or less complete control is you. Here are a few observations that I hope will help you adjust your attitude.

Look Below The Surface: Why is Molly getting all that action? To oversimplify a complex phenomenon, people do business with those whom they know, like, and trust. My guess is that Molly has a lot of contacts and that folks have confidence in her. So what if they might get an errant spring in their backside when they sit in her car? You would be surprised what people will overlook if that basic rapport is there. Because of that fact of life, some rookie REALTORS® experience an immediate rush of business which others may find difficult to understand.

Here's an example. I had a student in one of my licensing classes who is a stalwart in the community because of civic activities and the business in which he was previously engaged. He also had sons who were prominent in local athletics and he himself was a scout for a major league baseball team. After he got his license one of his first listings was a big ticket motel restaurant complex. If the owner were to have chosen a listing agent based upon experience in commercial transactions, there are many other local REALTORS® who would have been more logical choices. I'm guessing that the selection was made based upon an assessment of character, which resulted in trust. Moral To The Story: So how does one become known, liked, and trusted? Getting known is a matter of getting around. The common guidance here is to become involved in community activities. That's excellent advice, but I would add that it's vital that you commit to only those activities in which you are sincerely interested, and those to which you are able to devote the appropriate amount of time. By the way, don't forget to share with those many folks who know you that you are a real estate professional, and that you would welcome their business and referrals. I've said it before: don't be a secret agent.

Being liked and trusted after you become known is much more of a challenge. Without getting too far up on my soapbox let me put in a plug for honesty and integrity. The essence of the agency relationship in which you enter into in most real estate transactions dictates that you put your client's interests above everyone else's in the transaction - most assuredly including yours. I'm reminded of the advice I heard a speaker give once on the importance of being sincere: "if you are not basically a sincere person you'll just have to fake it." I would amend that to "if you are not basically a sincere person, become one." We'll give you credit for being honest and trustworthy, but just remember that even if that were not the case it's an incredibly good business strategy.

Learn A Lesson From The Coach: John Wooden, former basketball coach at UCLA, won more NCAA titles than anyone in the history of the game. Watching him operate on the sidelines was a far cry from the antics you'll likely see by many of his modern day counterparts. He was intense, but dignified. No ranting, raving or screaming at his players or the officials.

On those very rare occasions when the Bruins lost, his focus was not on the other team but his own. His basic philosophy went something like this: "If we do the absolute best job we can of preparing ourselves for the game and lose, then I am satisfied." Now I will admit that he did a pretty fair job of recruiting some extremely talented young athletes to insure that he didn't have to test that philosophy often, but the basic point is sound.

Your focus should be on how you can improve your performance to live up to your potential. How are you doing in achieving your specific, written goals? If there's room for improvement, decide upon some clearly defined courses of action and persevere. Don't worry about Molly.

Ask Dr. Real Estate
What's The Big Deal About Getting Listings?
by Dr. Kenneth W. Edwards GRI

QUESTION:

I've been a REALTOR® for about two months and I just got my first commission check. It was for a very substantial amount and was as a result of a sale I made to a nice widow lady the first week I was in the business. She happened to call our office when I was on floor duty and we established excellent rapport. I also have several other really promising leads on potential sales. Frankly, I have decided I would rather concentrate on selling homes than listing them. Although she has not vetoed the idea, my broker doesn't seem to be wildly enthusiastic about that approach. What's the big deal about getting listings, anyhow?

ANSWER:

Congratulations on making a sale so soon (I'm assuming it wasn't to your Aunt Martha who knew you were on duty and called your office). Most folks typically spend a lot longer than that before they do something in real estate that actually earns them a payday. Exclusive buyer representation is a viable career option, but don't get carried away too quickly and reach any hasty decisions.

While representing buyers exclusively is an evolving and prospering element of our profession, your broker's attitude is likely the result of her own experience and that of others who have gone before you. Consider these factors.

First: When you secure an exclusive right to sell listing and put it on Multiple, you immediately enlist the efforts of a lot of enthusiastic, hard-working professionals whose survival and prosperity depends in very large measure upon finding buyers for listings such as yours. In effect, you will instantly "hire" a lot of REALTORS® you haven't even met yet.

Considered in that light, it is a very efficient way to invest your own time and effort. Get a lot of realistically priced, attractive listings and you will constantly have a small army of dedicated professionals pounding the streets trying to make money for you (and themselves). From a larger prospective, listings are the real estate profession's inventory. In essence, it's what's on the shelf for sale. No listings, no sales.

Second: When you get an exclusive-right-to-sell listing on a property, the owner has a contractual obligation to your broker (you recognize, of course, that all listings are in the name of your supervising broker). Find a ready, willing, and able buyer and you have earned your commission. Anyhow, that's how it works most of the time. When you work with buyers, on the other hand, they typically have no real obligation to you. You might work with them diligently for several months only to have them buy from someone else! There are ways to cultivate buyer loyalty (mainly by doing a thoroughly professional job and effectively communicating with them), and there are contractual possibilities, such as buyer agency agreements, but these still represent only a comparatively small fraction of total transactions.

Third: What happens when that nice lady to whom you sold the home during your first week on the job wants to sell? If you did things right the first time around and have maintained contact with her, she will likely want to list with you. Sell a lot of homes and you will have a steady stream of potential listings. In my first year in real estate I sold the same little starter home twice. The first buyers planned to be in our community for several years, but the nurse wife got an offer she couldn't refuse in another community. I listed and sold their home. I'm sure it hasn't escaped your attention that the commission split is a lot better on that kind of a transaction.

Having heard all these things, I guess it is still possible that you would prefer to sell homes rather than list them. There are brokerage firms now which work exclusively as buyer agents, and some companies have agents who work only with buyers and others who work only with sellers, but it is clear that your broker prefers to operate in the more traditional business model, which means her agents engage in both listing and selling. My strong recommendation is that you sit down with her for an extended career guidance discussion.

I will say this. If you prove you can sell a home every week or so my guess is that your broker will somehow accommodate to your desires. All things considered, however, you can likely appreciate how this old saying came about: "Old real estate agents never die, they just become listless". And to add my personal bias, real estate wouldn't be nearly as much fun for me if I didn't list homes.

Ask Dr. Real Estate
Is GRI Really Worth The Effort?
by Dr. Kenneth W. Edwards GRI

QUESTION:

As a comparative newcomer to the REALTOR® ranks, I've got a couple of questions about GRI. First, is it really worth the effort and the expense? I would have to travel to another city to participate. Second, if I do decide to attend, when is the best time in my career to do it? My broker is really enthusiastic about it, but I'm getting some mixed signals from the some of the old timers in the office.

ANSWER:

Congratulating on becoming a REALTOR®. That was one of the best decisions you could have made to enhance your career longevity. Many people use the term REALTOR® and real estate agent interchangeably. In fact, only about fifty percent of all real estate licensees are REALTORS®. The short answer to your first question, "is GRI really worth the effort?" is "absolutely." But since you seem a bit skeptical, let me offer a few very practical reasons to support my opinion.

It's an Elite Club: First, roughly 15 percent of all REALTORS® nationwide are GRI's (which, as I'm confident you know, stands for "Graduate, REALTOR® Institute"). NAR statistics reveal that, on average, they earn substantially more money than those without the designation. To me, that sounds very much like the old saying: "10 percent of the real estate professionals do 90 percent of the business."

Cause and Effect? Do GRI's make more money because of what they learned at GRI? I'm sure that helps, but what it tells me is that those who attend GRI are folks who take their profession very seriously and plan to be in it a while. They are looking for any opportunity to improve themselves and attain a competitive edge. They are typically enthusiastic, anxious to learn, and willing to work. It is likely that it these attributes that account for the fact that GRI's end up doing so well financially.

Networking Bonanza: I am sure it has occurred to you that GRI would be an excellent place to establish contacts for your network. In the unlikely event you haven't started developing a formalized network, GRI provides the ideal opportunity to get serious about it. Trust me, it will pay off big time. I still stay in contact with a few folks I met at GRI several (make that many) years ago.

GRI- the "Cons:" Yes, there are arguments against attending GRI. First, it will mean you will have to be away from the office for a while. That means you will have to coordinate with your broker and establish a working relationship with another agent to cover for you. There will always be some reason that you should stay at home and look after things, not the least of which is the loss of a listing or a fall through on a sale.

When I attended GRI I had a deal pending on a duplex. My sales manager, who was a strong proponent of professional education, told me to relax, that he would be glad to handle it for me. Of course he did a better job than I would have, and I earned a very nice payday while I was out of town! The lesson is clear. You can't always be in the office mother hening every little detail. Attending GRI will give you a good reason to set up your "cover me" arrangements.

GRI will also cost you a few dollars. In your case it will mean traveling to another city to attend the session. To take full advantage of all the opportunities to network I recommend you plan to stay where the sessions are being offered, rather than commuting. Yes, that will mean a strain on the budget and those on the home front will have to learn to survive a few days without you, but you simply have to willing to invest time and money in your career.

Ask Dr. Real Estate
Are You Sure This Is How Donald Trump Got Started?
by Dr. Kenneth W. Edwards GRI

QUESTION:

Several years ago my wife and I decided to buy a rental property. Since real estate is my profession, we thought it would make sense to have some real estate as part of our long-term investment program. We got a good buy on a little single family home (with great owner financing) in a nice area of town. We had a very small "after tax" positive cash flow for the first few years and now that rents have gone up we have a pretty decent "before and after tax" cash flow. The increased value of the property makes my "net worth" look a lot better on paper than it really is. It went down in value somewhat recently, but it was just a "paper loss" for us. Here's my problem: tenants drive me crazy. We had one fellow who kept paying with bad checks. A young couple (who looked great on paper) had so many late night parties that the neighbors kept contacting me to do something about it. Here's my QUESTION: is it all worth the effort?

ANSWER:

Don't loose heart. You've solved the toughest part of the problem - acquiring an income producing piece of real property that is providing you with a positive cash flow every month, an income tax shelter, and a hedge against inflation. Yes, real property values can go down, but the best predictor of future trends is the past. Over the years, wise investments in real property have been a winner.

The fact that you have yet to completely master the human factor in the equation shouldn't deter you from persevering. Here are some specific sanity saving suggestions.

Your Secret to Success - Tenant Selection: I can speak from experience on this one. My wife and I have had a few single-family rentals over the years. Initially I managed them. I was not a great landlord. I tended to see too much virtue in potential tenants. I was not consistent in doing credit checks and calling previous landlords. I once rented to a young woman who looked and acted as though she could have been the leader of the local Girl Scout troop. According to police reports I read later, that was a rather severe error in judgment.

We now have two small residential rentals and my wife has taken over all the landlording duties. She's all business. She personally checks references and has a formal credit check done. Since they are both nice little units in quiet and well kept neighborhoods, we typically have several applicants when a vacancy occurs. The mortgage is now completely paid off, and rents keep edging up. The only thing that causes some unease now is contemplating the income tax hit if we sold. While on that point, I would strongly advise you to locate a tax professional who has expertise in real estate. Rules keep changing and what may be a great opportunity this year could vanish in a heartbeat. The best example of that is how the capital gains tax rates tend to fluctuate.

Here's my main point: assuming you have an economically viable property (it appears that you do) the difference between being a calm, contented landlord and a harried, frazzled one is tenant selection.

Fair Housing - Get Up to Date, and Stay There! There are federal Fair Housing Laws and there are state and local laws. It is absolutely critical that you become thoroughly familiar with all of them. What may appear to be an innocent and reasonable method of selecting your tenants to you could turn out to be a violation of the law. Trust me, you don't want to go there.

Hiring Help: If you like the idea of having a rental property, but you decide you're just not cut out for the every day business of managing it, you could always hire a property manager. While it's true you would have to pay a percentage of your rental income each month to the property manager, the peace of mind may be well worth it. Since your rental income exceeds your expenses, you do have some cushion. Remember all the things you've learned about "agency" as a real estate professional. The same agency relationship would exist in this instance, except here you would be the principal and the property manager the agent, and would owe you all those great fiduciary duties. It's nice to have the shoe on the other foot for a change. If you do hire someone, do some thorough checking, including calling individuals whose property the manager now handles. Get someone who has experience in managing single-family homes.

Do Your Homework and Be a Joiner: While the long-term payoff in being a rental property owner can be substantial, there are some other potential pitfalls, in addition to the possible strain on your mental health. Each community of any size will have an organization composed of rental property owners whose goal it is to keep everyone up-to-date on everything from fair housing requirements to state landlord-tenant laws. Find it and join it. The best national level reference book I've ever seen on the subject is titled "Landlording," by Leigh Robinson. It's big, user friendly, and updated frequently. You can check it out as www.Landlording.com. Amazon.com has a "search inside" feature you can use to preview the book. If there is a state specific book on the subject, that would also be a wise investment.

Looking Down the Road: If you satisfactorily resolve your human relations challenge you may even conclude that it would be good to expand your real estate holdings. As an active agent, you're going to be in an excellent position to do that. You'll become a good judge of property values, and will be well informed on financing options. Remember that each state has specific rules regarding real estate professionals who purchase real property. As a minimum, in most instances it involves disclosing your licensing status.

If you think your net worth and cash flow looks good now, think what it could be in ten or fifteen years, assuming rents and property values do what they've historically done - creep ever upward. Happy landlording.

Ask Dr. Real Estate
How Does A New Agent Get Into The Swing Of Things?
by Dr. Kenneth W. Edwards GRI

QUESTION:

I am new to real estate. I have affiliated with a Broker who has an excellent reputation in our community. My problem is that I am having trouble getting into the swing of things. I'm working long hours but I'm not generating any income. Any suggestions on what I might do to actually start making some money?

ANSWER:

It is important for you to understand that the first six to nine months are typically very difficult for the new real estate agent. The successful old timers are busily putting transactions together, collecting commission checks, and making it all look so easy. The newcomer wistfully observes, and often develops a severe feeling of inadequacy. Your broker probably went through the same thing. I certainly did. The answer is to recognize it as a common malady with a fairly simple cure. You need to develop a personal career plan and persevere. Repeat: persevere. Here are some specifics:

Know Who You Are: I once received correspondence from a young man who was a waiter in a restaurant. He said he wanted to go into real estate and thought he would be good at it because "I'm not an order taker." That sums up very well your challenge as a real estate professional. On rare occasion a prospect may simply ask you to list a home or to make an offer on a home, but basically you will have to go out and generate business. And no matter how supportive and helpful your broker might be, in essence you are a one-person business.

Training: What you learned in your license preparation course should have given you a good background, but the actual job of listing and selling real estate requires additional skills and knowledge. If your company has a training program, participate wholeheartedly. If there is no formal program, structure one of your own. If you are going to make it in real estate you have to be a self starter and self motivator. There is plenty of material available in the form of books, magazines, courses, and seminars. What you want to do at this point is gain an overview of all that is available, and to choose an approach that you and your broker think has the most potential for you. I strongly recommend joining the National Association of REALTORS®. One of the real benefits is that they offer a series of very useful professional development courses. GRI (Graduate, REALTOR® Institute) is the one you should consider after you've been in the business a few months.

Role Models: Some companies have a "big brother/sister" program in which experienced folks take the "newbees" under their wings for the first few months. Whether or not such a program exists where you are, you can learn a lot just by some careful observations and by asking discerning questions. If there is anyone in the company, new or old, with a bad attitude, avoid them like the plague. It's contagious.

Time Management: It will be tempting to spend your time on enjoyable, but nonproductive tasks. Be clear on how you get paid in real estate. You will collect only when a listing of yours sells, or you sell someone else's listing. When you plan each day, it is critical to your career survival that you concentrate your efforts on the "payoff" activities of listing and selling. For newcomers and old timers as well, that means a lot of prospecting. Spend only as much time in the office as it takes to get your administrative chores accomplished. You need to be out meeting people and looking at property.

It's A People Business: To be competitive in the profession you will absolutely have to become conversant with all the latest technological tools, and stay up-to-date.. Remember, however, that first, last and always, real estate is a people business. The best guidance I could possibly provide in this context is to treat others as you would like to be treated. I know, that's not original, but it's about the best single bit of advice I could possibly give you. When I teach my real estate licensing classes, I ask my students to role play that we are a real estate company and I'm their supervising broker. The company name: Golden Rule Realty. No theological implications. Remember also to keep in touch with past clients. If you're doing things right, it won't be long until the majority of your business will come from past, satisfied clients.

Remember Your Roots: Finally, when you become a prosperous old timer, remember how it felt when you were the "new kid on the block." Even folks who were very successful in other endeavors will need help and encouragement in adapting to the exciting challenges of a real estate career.

Ask Dr. Real Estate
How Can I Keep More Of What I Make?
by Dr. Kenneth W. Edwards GRI

QUESTION:

I just finished my first full year in real estate after several years in a job where I was on straight salary. I actually earned quite a bit more money than I thought I would as a REALTOR®. The bad news is that because of my income tax bill, I kept a lot less of it than I thought I would. Any suggestions on how to keep more of what I earn?

ANSWER:

It seems you have learned your first lesson in the accounting facts of life--the difference between gross and net. I'll pass on some suggestions based upon my own experience, plus that of a couple of accountant members of my network who specialize in real estate.

Most importantly, it is critical that you understand clearly "who you are". Essentially, you are a one-person business. Although you will always work under your managing broker's direct and personal supervision, for all practical business and tax matters you are a self-employed entrepreneur--an independent contractor in the truest sense. That means everything you spend to generate business for yourself is deductible as a business expense. In other words, you won't pay tax on that amount. The critical element is to know what is a legitimate business expense and what is not.

How important is that? Let's assume that you fail to claim $1,000 in legitimate expenses. That means you will pay federal and state income tax on that amount, plus a hefty social security contribution. Rates being what they are, that will easily amount to several hundred dollars. So for each and every dollar in allowable business expenses you fail to claim, you will make a charitable contribution to Uncle Sam (federal) and Aunt Samatha (state).

Should you do your own taxes? An "old head" in the office in which I first worked as a REALTOR® gave me this practical bit of advice: "Doing your own taxes makes about as much sense as doing your own brain surgery. Get a pro." That's excellent advice. The first year I was in real estate I found a Certified Public Accountant (CPA) who was recommended to me by another very successful REALTOR® in our office. I've never regretted that decision. He actually seems to enjoy delving through the pile of paper my wife and I dump on his desk each April. Go figure.

My guess is that there's an accountant in your community who would be delighted to make a presentation each year to your local REALTOR® membership on how independent-contractor REALTORS® can best meet the income tax challenge--handouts welcome that detail acceptable business expenses.

If you decide to seek professional help, ask around among your associates (the successful ones) for suggestions. While the services of a CPA or other tax preparer will not come cheaply, the strong probability is that they will end up saving you money in the long run. And personally I place a very high value on the peace of mind it gives me to have a pro doing the mind-numbing number crunching involved in preparing a tax return.

Even if you hire help, the major burden of record keeping throughout the year is still yours. You need to make your job as easy as possible by reducing everything to a written record. Central to that is your daily calendar on which you list your appointments and other activities. There are some really fancy products on the market, including some fancy computer programs, but the important thing is to have some kind of daily log. As a matter of routine you should document all of your important activities.

You also need to develop the habit of getting receipts for everything. That will be easier if you routinely pay by credit card or by check. When that's not possible and you pay cash, jot down the amount, the date, and the purpose. Have several large envelopes labeled by expense category for all your receipts.

One of the real challenges when we discuss income tax is that rules change so frequently. Each year I purchase one of the national tax books as a reference. The better job you do of preparing your information for your accountant, the less your bill is likely to be. And here's a lesson I learned from my military career--"choose your enemies wisely." Several prominent leaders throughout history have made a serious and fatal mistake in this regard. The moral to the story is that you wish to be very conservative in your income tax strategy. You do not want the IRS as an enemy.

The feds are fond of saying that you are not expected to pay any more tax than you legitimately owe. If through oversight or ignorance you do, however, the strong likelihood is that they will keep it and not even send you a thank you note. That should provide you a very strong incentive to get your tax act together.

When to Attend? Now for your second question. I hear a lot of different opinions on the best time to attend GRI. To get the most from your first course, it is probably best that you have at least one or two transactions under your belt. That way the information you are exposed to will make a lot more "real world" sense. You'll recognize mistakes you made and things you did correctly. I finished all three courses in two years and found it complimented my work place experience perfectly. Others counsel doing it a more leisurely pace and work it in more with actual on the job experience.

Just Do It! Whenever you do it, I strongly recommend you list "Get my GRI" as one of your highest priority career goals.

Ask Dr. Real Estate
Should I Resort To A Niche Craft?
by Dr. Kenneth W. Edwards GRI

QUESTION:

So far in my real estate career I've worked exclusively in residential real estate. I'm doing very well and I really enjoy working with home buyers and sellers, but I've heard that specializing in a specific area, such as investment real estate or commercial properties, is the road to the really big bucks. Any suggestions?

ANSWER:

"Find a niche and fill it" is a variation of the "find a need and fill it" advice given aspiring entrepreneurs. It's a career strategy that makes sense for REALTORS® too, but before you strike off on an unknown path it would be good to map your strategy ahead of time. Here are a few recommendations.

Pick a Niche: If you are specializing in residential sales, you are, of course, already in a perfectly respectable niche. Many REALTORS® spend an entire career happily and prosperously listing and selling owner occupied homes and couldn't imagine doing anything else. Some may decide to concentrate on specific types of residential properties or work primarily or exclusively with buyers or sellers, but the residential agent is generally considered the "country doctor" of our profession.

As you point out, however, there are other intriguing possibilities. One of the real advantages of earning your spurs in residential sales in a general brokerage is that you are likely going to be exposed to a wide variety of transactions, which will give you a first hand look at what's involved in many of these specialized areas. For example, a previous client may decide they would like to buy a small residential investment property. Or you may somehow end up listing a small farm. In both instances you would immediately realize that your job knowledge in these areas is seriously lacking. If there were someone in your office with the appropriate experience you may want to consider working on a cooperative, fee splitting basis. It's the best kind of education - the type you can get paid for. Your first stop would be your supervising broker for guidance.

Here's a personal example. In my first year in the profession all of my transactions were with homebuyers and sellers, with two notable exceptions. First, a young couple to whom I had sold a home, contacted me and said they were interested in buying a duplex as an investment property. I learned a lot in that transaction, not the least of which was the difference between "before tax cash flow" and "after tax cash flow." Incidentally, it turned out to be a great long term investment for my clients.

In another instance my wife, with whom I worked as a team, listed a beautiful twenty acre ranch in a nearby community. I happened to be working with a couple from Canada who were interested in a farm property. The transaction turned out to be the biggest payday I had in my real estate career, but the thing I recall most vividly was how much there was to know about agricultural property that I didn't know. For instance, just being familiar with the cost of farm machinery in extremely important.

As you are exposed to new and different situations, your overriding goal obviously will be to satisfy your customers and clients' needs in a professional manner. At the same time you will have a basis to determine whether or not any of them seem to have career potential for you. Whatever you decide, it will demand a major commitment on your part so you want to make certain it's a field that is going to hold your interest. A distinguishing feature in most commercial or investment transactions is that although you're likely to realize an impressive commission, the time and effort required to earn it is typically much more demanding than that of a residential transaction.

Get Smart: There is not a real estate career niche you can pick that will not have a well structured REALTOR® education program and a professional society complete with professional designations. As soon as you've made a decision you need to plug into the system, establish short and long term goals, and start attending professional education courses. For example, if you do decide to specialize in investment or commercial properties, attaining the Certified Commercial Investment Member (CCIM) would be a logical objective. If you stay in residential sales, the Certified Residential Specialist (CRS) would be a very worthwhile designation to pursue. GRI is mandatory basic training.

Even if you were not a member of the REALTOR® organization, there are a variety of educational opportunities available to you. Not only will you gain professional competence by participating, but it will provide incredible networking opportunities for you.

Don't burn your bridges: If you decide to move out of residential sales, it would be wise to make it an orderly and gradual transition. If you have been successful, you are going to have a lot of satisfied past customers and clients calling you to do business. I would have a hard time walking away from that, both from a financial and a personal standpoint. I know successful REALTORS® who do specialize in investment properties, for example, but who still handle their old residential accounts personally. In addition to permitting continued contact with valued members of your network, that approach would provide a very valuable and reliable source of income.

Follow Your Heart! As you consider your long-term career decisions you will want to go slow, observe carefully, study hard, and discuss your goals with your supervising broker. You are correct to say that there are some really big bucks to be made in the more specialized fields of real estate. On the other hand, particularly with the advent of real estate assistants, more and more residential agents are earning some very impressive incomes. Assuming you are willing to make the long term commitment to professionalism that success in any field demands, I like the advice: "Go where your heart leads you and the money will follow."

Ask Dr. Real Estate
Should I Resort To A Niche Craft?
by Dr. Kenneth W. Edwards GRI

Ask Dr. Real Estate
Should I Wash My Mouth Out With Soap?
by Dr. Kenneth W. Edwards GRI

QUESTION:

I was working with a broker recently on a co-op sale and during a conversation with him I used the word "deal" to describe the transaction in which we were involved. I haven't received such a tongue lashing over using a four letter word since I inadvertency uttered one in the fifth grade and Miss Baumgartner overhead me. I won't make that mistake again, but since I'm comparatively new to the profession, can you tell me if there are other words I should avoid using in mixed company?

ANSWER:

As you have learned, there are some words that offend certain people in our profession. Those who object to the word "deal" do so on the basis that they believe it conjures up visions of such things as "wheeling and dealing" or "double dealing" and does not project the professional image REALTORS® should be striving to attain.

What's The Big Deal? Although I appreciate the basis of those sentiments, and although I counsel you to be sensitive to the feelings of others, I have to admit I can't get too excited about such linguistic nit picking. As a result of your letter, I plugged "deal" into my computer's thesaurus and it kicked out these synonyms: "agreement", "arrangement", "bargain", "contract", and "understanding." My print dictionary simply describes it as a "business transaction." Sounds pretty innocuous (and accurate) to me, but to avoid raising the blood pressure of those who consider it inappropriate (particularly if it's your supervising broker), you may wish to do a little research and employ other options.

The Art Of The Deal: I do want to make one thing very clear, however. Whether you call your real estate transaction a "deal" or something more gentile has absolutely no bearing upon whether or not it is ethical or professional or whether or not you have honestly and efficiently handled the needs of your customers and your clients. After all, to paraphrase the Bard just slightly, a skunk by any other name smells the same. It is infinitely more important how you put your transaction together than what you call it.

Words, Words, Words: One of my favorite all time movies is My Fair Lady. I particularly liked Eliza Doolittle when she sang "words, words, words. I'm so sick of words. First from him, now from you; is that all you blighters can do?" She followed that with "if you're in love, show me!" In other words, a little less talk and a lot more action.

We do, however, need to be sensitive to the feelings of others. Are there other words you should be avoiding? There may be. Off hand, I can't think of many that raise hackles as much as the word "deal" seems to, but there may be better ways to express certain often used phrases. For example, I did a little research and turned up these possibilities: "initial investment" for down payment; "brokerage fee" for commission; "deferred initial investment" for balloon payment (now that's creative); and "authorize" for sign. Even lending institutions have gotten in to the act. "Prepayment privilege" is their preferred term for prepayment penalty (wow, talk about creative.)

Say What? There is one area in which the use of certain language can get you into serious difficulty. If you are engaged in preparing advertising copy, including flyers for your listings, you need to be familiar with the requirements of the Federal Fair Housing Law, which prohibits discrimination in housing based upon race, color, sex, familial status, handicap, religion or national origin. Certain states and cities add other categories, such as age and sexual preference. You could get in trouble if you use such seemingly inoffensive phrases as "exclusive neighborhood", "close to the country club", "upscale living in posh condo", "near Martin Luther King Jr. Center", or "next to a large synagogue." You'll likely find written instructions in your office, and many newspapers have policy manuals that provide guidance.

Fighting Words: I'm sure you also know that certain words are extremely offensive to particular groups of people. Here's an example. At the risk of blowing my status as a somewhat seasoned citizen, I grew up in California during the Great Depression. I had an elementary school classmate whose nickname was "Okie," because that's where he was from. Everyone at school called him that, except the teachers. No problem. However, if someone off the school grounds referred to him as an "Okie" (considered a derogatory term in that place and that time) they had a fight on their hands. It's best to avoid completely any type of ethnic or cultural remarks or references, even when you consider them to be made in friendship or in jest.

Sticks And Stones Etc.: I do want to add that if there are certain words that offend you, lighten up. I learned that lesson while on the Air Force ROTC faculty at Cal Berkeley 1966-70. As you may recall, those were not the quiet years. One of the favorite tactics of the frequent demonstrators was to get in the face of the local police who were attempting to restore order, and to utter some of the most incredibly vile and personally insulting language you can possibly imagine. We in the military shared some of those encounters personally. We quickly learned that if you let it bother you, the perpetrator had accomplished his (or her) objective.

Shut Up And Deal: Early in your career you need to learn to "talk the talk." Read good real estate literature (the LANGUAGE OF REAL ESTATE by John Reilly is a great basic reference), study the office policy manual, and get going on GRI and other professional education programs. In short order you'll be fluent in the language of real estate and can concentrate on the deals ... oops, ...transactions at hand.

Ask Dr. Real Estate
How Do I Ask Those Tough "Up Front" Personal Questions?
by Dr. Kenneth W. Edwards GRI

QUESTION:

I am finding that one of the most difficult things for me to do during my initial interview with prospective buyers is to ask them how much money they make. It seems kind of tacky to get so personal when you hardly know someone. Isn't it reasonable to assume people are going to be able to afford what they say they are looking for in a house?

ANSWER:

I'll take the easy part of your question first. No, it is not reasonable to assume that people can afford to buy what they say they are looking for. Just trust me on that one.

I can say with great conviction, based upon personal experience and the input of every broker with whom I've ever discussed it, that properly qualifying your prospective buyers is an indispensable, critically important first step in your relationship with them. It comes right after establishing proper rapport, but definitely far ahead of jumping in your car and showing properties. Even if you, at some point, get them to a loan officer to prequalify (a great idea, by the way) you need to do the initial prequalification so you can chart your course of action properly.

Deliver the Goods - Get Paid: First, let's look at the whole thing very selfishly. You are going to get paid when you produce tangible results. While some agents may get their clients to agree to pay them on an hourly basis, that's still the exception. Reduced to basics, it simply means that when working with buyers: no sale, no paycheck. What then could possibly motivate you to want to spend hours, let's say, showing a young couple a dazzling array of palatial mansions in the hills when all they could possibly qualify for is a modest little starter home in the flats?

Whom Do You Represent? Second, let's assume you are representing the buyers in the agency relationship. Why get their hopes up by showing them homes they can't afford? And when they find the home of their dreams and make an offer, the most important factor in whether or not the sellers accept will be their financial strength and credit worthiness. A full price offer from people with questionable (or unknown) financial capabilities is a lot less desirable than a lesser one from blue chippers. That being the case, and since you owe your buyers a fiduciary responsibility to advise them properly, you simply have to know as much as you can about their fiscal strength. On the other hand, if you were representing the sellers, it would be your job to determine how qualified the potential buyers are to be able to counsel them properly.

A Routine Procedure: Let's assume I've convinced you that for your own interests and those of the people whom you represent, you've got to get the financial facts. How do you do it gracefully and without offending or scaring off your potential buyers?

If you've established a professional, business like atmosphere it shouldn't be all that tough. You will need to explicitly point out that at some point in the home buying process they will have to sit down across the desk from a steely eyed, no nonsense loan officer at a lending institution and provide the information about which you are inquiring. You might even want to give them a copy of a standard loan application form to show them what's involved. Your broker may have an abbreviated form in the office that will do the same thing. You also need to emphasize that it would not be fair to them to waste their time showing them properties for which they could not realistically qualify.

It Gets Easier: After you work with people for a while, you will become more confident and more adept. The more professional you become the less threatening it will be for the buyers. It is, however, a vital step that you simply have to master. I once spent literally days upon days showing properties to a couple who had convinced me with glittering generalities and flashy exteriors that they could easily afford the most expensive homes in town. To be charitable let's just say that as it turned out, their tastes exceeded their financial capabilities - by a very wide margin.

Rather than spending my time figuring out how much commission I was going to make on a high six figure sale I should have spent it asking the tough up front questions, like: "how much money do you have for a down payment?" and "what is your income?" not to mention, "what are your debts?" Someone is eventually going to ask those questions, so it might as well be you. And it might as well be very soon after: "please have a seat."

Ask Dr. Real Estate
Professional Education - Meat And Potatoes Or Alphabet Soup?
by Dr. Kenneth W. Edwards GRI

QUESTION:

Most general consumers haven't got the foggiest notion what such things as "GRI," "CRS," or "CCIM" mean. As a matter of fact, some real estate professionals don't. So what's the point in my expending all that effort and money to attain them? As a fairly new REALTOR® who is really just getting started, wouldn't it be better for me to spend my time prospecting, listing, and selling?

ANSWER:

There are a lot of very practical, money-making, career-enhancing reasons for participating in professional education. Here are just a few:

It's Going to Help You Earn More Money: In the unlikely event that you stop reading before I stop writing, I'll give you my best argument first. At every professional education session you ever attend (at least the REALTOR® offerings) you will learn something practical that will help you earn more money. It may come from the platform from an instructor or it may come from a fellow participant during informal discussions. Generally it will come from both. Be aware that these are not sessions devoted to esoteric, universe-pondering, meaning-of-life subjects. When you finish, assuming you've been paying attention, you'll be better prepared to make more productive use of your time in listing and selling real estate. You will also undoubtedly learn several important lessons on how to stay out of trouble. The technical term for that is "loss prevention."

It's a Wonderful "Battery Charging" Opportunity: It is very easy to get so caught up in the nitty gritty of putting real estate transactions together that you may soon decide you are the only person in the galaxy who is experiencing such monumental problems and difficulties. When you attend GRI, CRS or some other professional education session you are really joining a support group. You will find that your problems, for the most part, are pretty much typical. You will get some great insights from other pros on how to solve them. You will also get a terrific psychological boost from the whole therapeutic process. I vividly recall the great time I had at my GRI class, and several fellow participants became permanent members of my network.

Networking Opportunities Are Superb: People who enroll in professional education and pursue advanced designations are typically very serious about furthering their careers. You will be rubbing elbows with those who plan to be around for a while and who are committed to excellence. Statistics bear this out. There is a direct, positive correlation between advanced professional designations and income. GRI's make more money than non-GRI's. Ditto with CRS's and non-CRS's and other designations. Do they make more money as a result of what they learned or the contacts they made? Probably a combination of both, but the real answer is that they earn more because they are the type of people who are totally committed to their careers and who are willing to invest the resources needed to achieve success. Friends, that's a great group with whom to get involved.

Many People Do Know What the Designations Mean: Let me give you an example. A few years ago my mother in California passed away and I traveled there from Oregon to settle her estate. My biggest task was to sell her house. Faced with limited time, I wanted to list with an agent who was going to do the job for me quickly, efficiently, and professionally. I had no personal contacts to rely upon. I called several brokers, all REALTORS®, and told them I had a home to list. I wanted to hear from an agent who was: (1) full time; (2) had the GRI; and, (3) who had closed more than one million in transactions the previous year (I forgot it was California--I guess I should have made that at least five million.) I interviewed three agents. Let me tell you - they were good. I got a firm handle on market value, listed at a realistic price with a woman who actually had the CRS, and sold the house at a fair price to qualified buyers in less than a week.

Homework Assignment: If you want to research this topic further, my suggestion is that you visit www.Realtor.org, where you can find information about the impressive array of REALTOR® professional designations. When I visited the site recently I checked out the requirements to attain the CRS (Certified Residential Specialist). I was thoroughly impressed, and to be honest, somewhat intimidated. However, were I still actively listing and selling, I would put that at the top of my career "to-do" list.

Who's That Knocking? Some anonymous seer once said: "The reason many people do not recognize opportunity when it knocks is that it is usually disguised as hard work." Professional education is hard work, but trust me--it is $pportunity knocking.

Ask Dr. Real Estate
How Do I Make Sure I Get Repeat Business?
by Dr. Kenneth W. Edwards GRI

QUESTION:

I've been in the business about a year. I was shocked and hurt when I noticed on a recent Multiple Listing release that the first couple to whom I sold a home had just listed it with another agent. What's the best way to get repeat business?

ANSWER:

The absolute best way to insure that past customers and clients return to you for repeat business is to do a thoroughly professional job when you are working with them the first time. If you've done that, it will then primarily become a matter of following up periodically to insure everyone knows you are still selling real estate for a living and want their future business. Here are some specific suggestions.

The Close: When the transaction closes it is both good business and good manners to let people know that you appreciate their trust and confidence in you. That means saying "thanks" in writing. A gift is also appropriate. It need not be expensive. For example, when working with buyers, a REALTOR® friend of mine secures a color picture of the home the customers purchased, has it enlarged and framed, and presents it to them when the transaction closes.

The Follow Up: As you know, your supervising broker must maintain what is known commonly as a "deal file" on each transaction. It is critical that you also maintain an even more elaborate file on each of your closed transactions in which you retain personal memos and other matters not appropriate for the main file. Use this as a basis for establishing your suspense system to ensure that you contact former clients and customers on a planned, periodic basis. People forget quickly. You need to regularly let them know you are anxious, willing, and able to respond to their real estate needs promptly and professionally. You also need to impress upon them that if they have friends or associates with real estate needs, you would appreciate it if they would refer them to you.
Get Personal: When you are establishing your follow-up program, resolve to give it your personal attention. For example, if you decide to send a card through the mail, include an individualized hand-written note. Personal visits are quite effective if you plan them when it is convenient for everyone and keep them brief. Phone calls are probably the most efficient way of keeping in touch, but nothing beats that eyeball to eyeball contact. If your office has a follow-up suspense system, that's great. But remember, it is your responsibility to make sure the job gets done properly. At some point in your career, you may get so busy that you hire assistants to do administrative chores for you. That will allow you to focus on the matters that only you as a licensed agent are permitted to do. That makes a lot of sense, but once more, understand that this is a function that only you can do to successfully accomplish the mission.

Here's A Bonus: Remember those deal files I mentioned? How many of those transactions do you think were put together by agents who are no longer in your office? Check with your broker. If it hasn't already been done, get permission to go through the files and reestablish contact with past sellers and buyers who worked with agents no longer with your company. Establish a personal contact. It could turn out to be a gold mine. There may also be some good leads in deals that fell through. There will be files on those too. When I first started my real estate career, I accidentally stumbled upon this resource. It resulted in two closed transactions in my first six months. One more time--coordinate with your broker.

Don't Take It Personally: If you've given it your best shot and someone decides to work with another agent, don't fret. Inevitably, there will be losses. If you can't take occasional rejection, no matter how unfathomable the reason, then real estate may not be for you. Just try to figure out what you did wrong or the other person did better. Sometimes it is an emotional decision with no real basis in logic--"my cousin's nephew just got his license and needed the listing." (I often wondered if that's how they would pick a brain surgeon).

If you are doing things right, the time will come when a very large percentage of your business will be repeats and referrals. That's when selling real estate really becomes professionally fulfilling, profitable, and a whole lot of fun. Hang in there and don't sweat the small (but understandably hurtful) stuff--the occasional setbacks.

Ask Dr. Real Estate
Sold Today, Sued Tomorrow. What Did I Do Wrong?
by Dr. Kenneth W. Edwards GRI

QUESTION:

I have been sailing along in my real estate career for three years without even a hint of trouble. Recently, however, I listed a property, which we sold through another broker to some out of town buyers. Now the buyers are suing the sellers, my broker and me, maintaining there were several "material facts" about the property which we did not disclose. In looking back, I now recognize some danger signs in working with the buyers that I probably should have spotted and some things I could have done better regarding the listing. Any general guidance on how to avoid situations like this in the future?

ANSWER:

Some REALTORS® spend an entire career without even a hint of a lawsuit. In today's sue happy society, however, I'm afraid we are going to have to accept the possibility of litigation as an unfortunate part of the facts of life in the real estate trenches.

To help you cope, here is some general guidance based upon my own experience, feedback from several of my former real estate licensing students who are now real estate professionals, and the input of several members of my network who are attorneys who specialize in real estate, and whose opinions I respect.

Define "Material Fact:" Here is the introductory sentence in a lengthy definition in The Language of Real Estate by author John Reilly. "Any fact that is relevant to a person making a decision." As you might suspect, in the real world it's a bit more complicated than that. The introduction in many jurisdictions of formal seller property disclosure forms has taken some of the heat off real estate professionals, but not all. It's important that in any listing you take that you fully counsel the sellers as to the critical necessity of making full disclosure of all material facts. "When in doubt, disclose" is how my broker advised me when I was getting started. Another practical bit of advice is "if you were the buyer would you want it disclosed?" There are some items that because of state and federal fair housing laws may not be disclosed. Most of those relate to whether or not an occupant of the property has AIDS.

Practice Loss Prevention: This is a fancy term, which simply means that in everything from automobile maintenance to legal matters it is easier to prevent a problem than it is to solve one after it surfaces. In real estate there are several areas in which difficulties are likely to arise. For example, buyers typically make up the lion's share of unhappy campers. And "failure to disclose material facts" is their number one issue. Stay up to date on matters such as these by participating in professional education and through professional reading.

In almost all jurisdictions there are attorneys who specialize in real estate law. It would be very instructive if your broker or your local REALTOR® group would schedule these experts for educational sessions. I recall vividly the seminars our broker scheduled for us with our local barrister.

Construct A "Paper Trail:" Oliver Frascona, a Colorado attorney and real estate broker, is the coauthor (along with real estate broker and wife Katherine Reece Frascona) of a book called The Digital Paper Trail In Real Estate Transactions. A key element of the paper trail concept is to put everything important in writing and hang on to it. Written disclaimers are also vital. When disputes arise, it is remarkable how self-serving memories become. You can check out the book's contents and gain access to a wealth of other pertinent information by visiting Franscon's web site at www.frascona.com. Oliver is also a frequent presenter at REALTOR® functions.

Establish An Early Warning System: You need to be alert to initial signs of potential problems in two areas - people and property. When working with sellers many agents strongly recommend to the owners that they obtain a thorough home inspection conducted by a professional inspector. The further guidance is to correct any problems and disclose those not .not addressed.

In his book, Attorney Frascona offers some guidance for spotting problem people with his: "Profile of a Plaintiff" (that's the "sue-er" with you being the "sue-ee"):

Here are a few:

1) someone who envies the material possessions of others;
2) someone who feels the world is not fair to them;
3) someone who tells you about the poor conduct of another real estate professional, lawyer, or lender;
4) someone who confides excessively in you;
5) someone who suggests that some action or statement is either correct or incorrect in direct contradiction to what you know to be true;
6) someone who wants to "get away" with something or wants to "get around" the rules. I would add this to Oliver's list. If you are working with a home owner on a potential listing and hear the phrase "what they don't know won't hurt them," I strongly recommend you head for the nearest exit.
Get Insured: Most people come in to real estate as a second or third career and some bring "deep pockets," as they say in legal circles. That means they may be the only person involved in a dispute who could pay an adverse judgment. Everyone else could be "judgment proof," which simply means they don't have any assets (that can be reached.). No matter how competent, honest, and professional a person might be, those who sell real estate without adequate Errors and Omissions (E & O) insurance are taking a monumental gamble. Ditto for personal liability insurance. Fortunately, more and more states are making E & O insurance mandatory and most supervising brokers have established contacts with companies who provide plans.

Stay Calm: Getting sued is certainly no fun, but losing your cool and coming unglued will do nothing but make a bad situation worse. I have seen some otherwise steadfast Rocks of Gibraltar completely crumble and agree to about anything to avoid the ordeal of formal legal action, even Small Claims Court. At even the first hint of trouble, inform your broker since she is likely to be in the pot with you, and secure competent legal counsel. If despite everyone's best efforts, you find yourself in the position of a defendant, remember the advice of Abe Lincoln, himself a pretty good country lawyer. His suggestion for the proper attitude to adopt when facing adversity was to remember that: "this too, shall pass away."

Ask Dr. Real Estate
How Do You Stay Sane In This Business?
by Dr. Kenneth W. Edwards GRI

QUESTION:

In my first transaction as a REALTOR®, I went from incredible exhilaration to a deep purple funk in about three days. Customers with whom I was working made an offer through me on an expensive home. The seller, a nice widow lady, decided after she got the offer not to sell her place at all and took it off the market. I'm convinced the buyers think I messed things up because I'm a rookie real estate agent. After over a month of showing them homes they are now working with someone else. Does it get any better than this?

ANSWER:

It is probably not much consolation to you now, but yes, assuming you are doing things right, it does get better. After you have been in the business for a few years, you will be able place this in its proper perspective. I recognize that these words of big brotherly wisdom are of little immediate comfort to you, particularly if you were counting on that commission to pay for Junior's braces or a well deserved Caribbean cruise. Here are a few specifics.

It Evens Out: There will be times when you will invest very little effort on a transaction and earn a very decent payday. For example, in one instance very early in my career when I was on floor duty, an older couple walked in and asked if they could see a particular home that had just come on the market. They said it was in their current neighborhood and that they had admired it for years. I showed them the home, they liked it even more after they toured the inside, and they bought it. Full price offer. Never looked at another house. My hourly wage on that one was very impressive. Then again, there were a few experiences like yours--only worse. You at least got the bad news early. There are instances when things unravel just before closing, but we'll save that for another time, since I'm trying to encourage you here.

Dissect The Deal: You will need to examine each transaction in which you are ever involved to determine what you did right and what you may have done wrong, or at least could have done better. Be alert also to what other REALTORS® involved in the transaction did better (or worse) than you. Experience is the best teacher only if you pay very close attention. If you do, you will soon be able to anticipate and prevent most problems before they scuttle your efforts.

Don't Whine: When I was a young Air Force officer stationed in Alabama, legendary coach Paul "Bear" Bryant was football coach at the University of Alabama. On Sunday afternoons during football season he narrated the game from the day before on TV. Along with most of the other residents of Alabama, I was a regular viewer. On those rare occasions when the Tide lost (or didn't win as impressively as some thought they should have), the inevitable question from the host was: "What happened?" Bear's typical growling response was: "That was the sorriest job of coaching I've ever seen. We have to suck it up, hunker down, and work harder." No excuses, alibis, or whining at fate's fickle finger. Just inhale deeply, focus intently on the job at hand (called "hunkering down" in Alabama) and work harder. Some real estate agents feel compelled to blame every force in the universe (except themselves) for a deal gone bad ("well, they did it to me again!). That's only a short step away from paranoia.

Attention Rookies: The last thing I want to hear before undergoing brain surgery is my doctor telling me how excited she is, since this is her first operation, or the pilot on my airline flight announcing over the intercom how thrilled he is to be soloing for the first time. In the real estate business, rookies come in all shapes, sizes, and ages. For example, I was a 49-year-old rookie REALTOR®. I never felt there was a vital purpose to be served by voluntarily sharing that fact with my customers and clients as a matter of first priority in our relationship. I also did extensive research and found that there are no federal or state regulatory mandates stating that you must disclose your rookie status as a material fact in a real estate transaction. The good news is that you don't stay a rookie for long.

Yogi Speaks: In the immortal words of Yogi Berra, "It ain't over 'till it's over." The real estate corollary to that is, "It ain't closed 'till it's closed." Work hard, stay cool, and hang in there. There will be losses, but with a lot of self-analysis and hunkering down you should be able to achieve a very impressive batting average. Your reward will come when Junior smiles at you sweetly with those beautiful new braces as you're enjoying that relaxing Caribbean cruise.

Ask Dr. Real Estate
How Much Togetherness Can A Girl Take?
by Dr. Kenneth W. Edwards GRI

QUESTION:

I started selling real estate several years ago after my husband and I became "empty nesters." I love it and I have carved out a pretty good niche for myself working with senior citizens who are relocating into and out of our area. My husband has decided to accept an early retirement offer from his employer and is considering several second career possibilities. His first choice at this point is to enroll in a local real estate licensing school, get his license, and sell real estate. Here's my challenge. He keeps using phrases like: "We would make a great team." Is this a common arrangement, and aren't there some inherent problems in wife - husband real estate sales teams? He's been a very successful bureaucrat, but to be honest I'm not certain he can adapt completely to a competitive, free enterprise business environment. I'm currently making more annually than he does in his government job, and I don't want to do anything to mess it up.

ANSWER:

"Dear Abby" and I have an agreement. I don't give personal advice and she shies away from answering real estate career questions. In this one, however, I will get perilously close to stepping over the line. Fortunately, I have some personal experience to rely upon. When I was actively selling real estate as my second career after retiring from the Air Force, my wife and I worked together as a team. She got her license and joined me shortly after we also became empty nesters. It can be very enjoyable and extremely rewarding, but there are some very serious cautions you need to consider.

Don't Pour Sand In Your Career Carburetor: Let me make this point very clearly first. Within the context of maintaining tranquil domestic relations, do not do anything to disrupt the well-oiled machine you have put together in your personal real estate career. You've done something that some REALTORS® never achieve in a life time - you've carved out a clear cut, identifiable market niche that you really enjoy and it is paying off big time. As I am sure you've found, the more clients and customers whose needs you satisfy successfully, the more business that will come your way and the more money you will earn. It's a great long-term annuity for you if you keep making deposits - do not jeopardize it.

Be Gentle: Here's one of the biggest interpersonal challenges in situations such as you envision. Some men find it a bit difficult to operate in an environment where their spouses are the top banana. That's become less and less of a problem as our society has become more enlightened regarding life in the workplace, but it can still be sensitive. Just recognizing that it can pose a problem is often enough to insure that delicate egos are not trampled upon. Interestingly enough, a local brokerage has two very successful women who are managing co-brokers. They've been with the company since it was opened and it has evolved from a single office with about a dozen agents to a three-office operation with over seventy agents total. Each has a husband who works as a REALTOR® in the same organization. It works out extremely well, and I am aware of similar situations in others brokerages around the country. In the same brokerage there is a husband and wife combination that operates completely as a team. Again, it seems to work out fine, and they are among the top producers in the firm.

Tap the Talent: When my wife and I worked together she did a lot of the prospecting and acted as the firm's Referral Director. She did get several extremely desirable listings on her own. As a matter of fact the biggest check I ever collected was as a result of selling one of her listings, a large farm in a beautiful setting. Yes, she occasionally reminds me of that. She actually preferred working behind the scenes. I will also admit she had one slight deficiency as a sales person - when someone said "no" to her she took it personally. I, on the other hand, did not. Here's the point. If you and your husband do decide to team up, be very honest with each other on who has the talent to do specific jobs best, and let that be your guide.

Happiness Is A Joint Banking Account: A husband and wife who got their licenses through the program I teach in the evening program at the local community college are very successful agents in a nearby community. They specialize in residential property. They operate together on some projects, but in the main pursue their own listings and sales. She is a very bright, energetic, competitive person with a successful background in sales. When I ran into him at a recent home show and asked him how his wife was doing, he smiled broadly and said: "actually, she's doing a little better than I am, which is great with me since we're both depositing our checks in the same account."

Ask Dr. Real Estate
Do I Need Help Getting Dressed?
by Dr. Kenneth W. Edwards GRI

QUESTION:

I've been in the business less than a year, and I am actually doing better than I expected I would. My problem is that in one area I seem to be a little out of step with most of my associates. I'm from a rural community originally and I feel more comfortable dressing very casually. I hate neckties. I've noticed that most of the successful men REALTORS® around here, including those in my office and our broker, wear coats and ties, and the women wear dresses and suits. I guess I could adapt, but is it really that big a deal?

ANSWER:

Whether we consider it fair or not, people do judge us and react to us based on our appearance. Let me give you an example. Over a period of a year or so, I had a consulting job with the state of Oregon Real Estate Agency. They were revising their official Real Estate Manual and I was hired as their "Consulting and Contributing Editor." I traveled to nearby Salem, Oregon about once a week to pick up editorial material and deliver my copy. The folks with whom I worked were professionals and were always dressed extremely well. I decided that when I went up for my weekly sessions I should wear a coat and tie and generally try to look as presentable as reasonably possible.

After the weekly meetings, I typically hit all my favorite haunts before heading home - the bookstore, a couple of large department stores, a bakery, a coffee shop, and the library. Here's what I noticed. I got a whole lot more respect when I was in coat and tie than I did on other occasions when I was in my standard, somewhat less impressive attire. Clerks were more pleasant and anxious to wait on me. Salespeople were more respectful. Everyone smiled more. The reaction was definitely different.

Having said that, let me put it in perspective. Although important, how you dress will likely not be the most critical factor in determining whether or not you succeed in real estate. I recall helping our daughter shop for her first new car. She had decided what model she wanted, so it was just a matter of shopping for the best deal. The main reason we ended up buying where we did was that the salesman impressed us as an honest, trustworthy person. It really didn't matter that he dressed like the scarecrow in the Wizard of Oz.

If you're honest, work hard and creatively, and are bulldog persistent, you are going to succeed in real estate - or any other profession for that matter. But some things take talent and hard work and some things do not. Dressing in a neat, acceptable manner to the prevailing standards of the business community takes no hard work at all, just a modest attitude adjustment.

Although I am somewhat reluctant to offer specific guidance on how to "dress for success" (my wife choked on her corn flakes when I told her I was giving advice on the subject), I think these suggestions will be helpful:

1. FOLLOW THE LEADERS: Take a look at how the successful REALTORS® in your office and in your town dress. What you will likely find is that the situation you describe is typical: coats and ties for men, and dresses, fancy pants outfits (I'm getting shaky here), and suits for women. Now if you specialize in farm properties and spend your time riding the range in your four-wheel drive and tromping through cow pastures, you'll obviously adapt to the circumstances. And in some areas things are much less formal. One REALTORS® to a survey I did once in which I asked respondents to identify characteristics needed to succeed in real estate said this regarding the importance of dress standards: "...coats and ties arouse suspicion around here."

2. DON'T DRESS FOR EXCESS: What you want people to remember about you is your professionalism, not your cashmere jacket or your mini skirt. If you are brand new, do not feel compelled to rush out and spend thousands on a new, upscale wardrobe. Unless you live in Gucci Gulch, people are not going to be checking your labels to see whether it's off the rack or not.

In a real estate class I teach at the local community college, one of my students called me and said he couldn't recall the name of a fellow student he wanted to invite to a group study session. I didn't know who he was referring to, so I asked him to describe her to me. "Oh, she is the petite lady who is always so neatly dressed," he said. I knew immediately who he meant. People do notice.

Clothes do not make the REALTOR®, but if you've got a great product, why not package it in the most attractive manner possible?

Ask Dr. Real Estate
What's In A Name? Your Career!
by Dr. Kenneth W. Edwards GRI

QUESTION:

I'm pretty good at remembering faces, but I have always been terrible at remembering names. Since I worked in a retail store in my previous occupation it was not much of a problem. However, it is starting to be a definite source of difficulty for me now in my fledgling real estate career. Any suggestions on how I might improve?

ANSWER:

You are right to be concerned, since being able to remember customer and client names is absolutely critical to your success. Let's face it, if folks figure you are not bright enough or concerned enough to remember their names, they may develop serious misgivings about your ability to put together a complex real estate transaction. Here are my specific suggestions.

DO AN ATTITUDE CHECK: First, and most important, stop saying you are not good at remembering names. That becomes a self fulfilling prophecy. For example, my boss at the community college where I teach is an energetic woman approximately half my age and with twice my intellectual capability. When I explained the memory system to her that I am going to share with you here, she said something like: "That's easy for you, but I couldn't do that, since I've always been awful at remembering names." This she says to a person who spends untold hours wandering around the parking lot at the local supermarket trying to remember where he parked his car. Remembering names is not easy for anyone, but you must make up your mind to "just do it."

DEVELOP A SYSTEM: In remembering my students' names in my real estate licensing classes I teach at an Oregon Community College I use a technique based upon association. The best way I can illustrate is to share with you actual names of some of my past students and the tortured techniques I used to remember them. The interesting thing I've found about this system is that if I can recall only a part of my memory jog, I can recall the entire name.

Joan Harp. Joan was a nurse. A noble endeavor - like Joan of Ark. Joan of Harp.

Sharon Sidener. Sharon was also a nurse and from the same small town as Joan. They sat at the same table. There was Joan Harp and Sharon the table right a sidener, was Sharon Sidener.

Brian Weinhold. Brian spent her freshman year at my alma mater, the University of Oregon. However, he got tired of trying (rhymes with Brian) and transferred. However, he still holds the record for the most wine consumed in the annual Duck Wine Sipping Contest- the Weinhold Record. Brian Weinhold.

Dwight Endicott. Dwight had a nice smile, much like Dwight D. Eisenhower (I know, before your time). Dwight did seem a bit tired. Perhaps a nap was in order. If so, where would he sleep? En di cott, of course. Dwight Endicott.

Warren English. Warren was a strapping fellow. I could see him in a Knight's regalia ready to battle for King and country. Perhaps a Norman Knight. If so, they would probably invade the British Isles. We had better: Warren the English. Warren English. (Even now when he calls me he identifies himself as "Warren the English.)

Charlene Godfrey. If God were going to frey us a hamburger, he would naturally want it to be healthy and would char lean. Charlene Godfrey. (Charlene threatened to change her name after I shared this with the class.)

Sam Chan. Sam, Sam, he's our man, if Sam can't do it, no one chan. Sam Chan.

Pam Gordon. Pam's parents' favorite comic strip was Flash Gordon. They were actually going to name their child "Flash" if it were a boy. Since it was a girl they named her "Pam", but they always referred to her as their little "Flash in the Pam."

Darwin Baker. He said he had been a real trouble maker in high school, but had evolved (Darwin evolved) into the model citizen he now was (he worked for the FBI). Darwin "trouble maker" Baker.

Rosemarie Hubley. A pretty lady. I could envision Nelson Eddy singing "Rosemarie" to Jeannette McDonald (much before my time, but I've seen the old movies). She was active in volunteer work, but what did her hubley do? (He was an engineer). Rosemarie Hubley.

Valarie Deaton. Valarie was co-owner of a roofing company and worked hard, for which Valarie needed calories. When ordering roofing material she ordered by de ton. Valarie Deaton.

Melba Rust. Before she moved to soggy Oregon her name was Melba Toast. Now, of course, it's - Melba Rust.

Ginger Maze. Ginger maintained she had never snapped at her husband, which I found a-maze-ing. Ginger Maze.

Linda Mintken. Linda worked as a mortgage loan officer at a local Credit Union (a Lenda). When I asked her if I could get a loan, she replied: "Sorry, go to the mint, Ken." Linda Mintken.

Pat Rickard. Pat was preparing for a second career. She confided that she actually thought about going into real estate several years ago, but did not - "Pat sat." Had she taken action then, today she would be a lot "rickard." Pat Rickard.

Julie Flesher. Julie was clearly a jewel. However, she was never a flasher. On occasion, perhaps, a flesher, but never a flasher. Julie Flesher.

Romeo Sebrowski. A house painter who took my course to learn more about real estate investing. There was absolutely no association I could make for Romeo's name (other than calling him the Polish Prince), but who could forget a classy name like Romeo Sebrowski?

Loosen Up & Bear Down! Can you improve your ability to remember names? Absolutely. Make it a game. Have some fun. No, you don't need a warped sense of humor to succeed (OK, it does help). But most importantly - just do it!

Ask Dr. Real Estate
How Do I Work With Seasoned Citizens?
by Dr. Kenneth W. Edwards GRI

QUESTION:

I recently got a listing of a classy little older home in a great neighborhood from a very nice widow lady. I'll call her Mrs. Wiggs. My broker actually referred her to me, since she was a long time friend of the family and I'm the most experienced agent in our office. She had lived in the home for over 30 years and she and her late husband had raised their family in it. I choked up on my first tour of the home when she showed me the pencil marks on the wall where she had measured the heights of each of her children on their birthdays.

My first job was to convince her that her home, for which they had paid $30,000, was now valued at well over $300,000. She simply could not believe it was worth that kind of money. Once I showed her comparable homes that had sold in that range, we got it priced realistically and submitted to multiple. We got a full price offer almost immediately. The only little glitch was that when I presented the offer to Mrs. Wiggs, she broke down crying and told me there was no way she could actually leave her home while she could still take care of it. She said she never really wanted to sell in the first place, but that her children kept after her. My broker let her cancel the listing - a course of action with which I wholeheartedly agreed. I guess we could have pressed for our commission, but that would have seemed insensitive, and we really didn't spend that much time on the listing. In over fifteen years in the business this has never happened to me before. Any guidance on how I might avoid such situations in the future?

ANSWER:

There are an increasing number of REALTORS® who find that working with senior citizens is a very rewarding career niche. Typically, those who are selling their homes have quite a lot of equity in them and are absolutely delighted and amazed (sometimes to the point of disbelief) to learn how much money they will walk away from closing with. The news gets even better since they almost always qualify for the great capital gain tax exclusion for primary residences. If they are going to purchase another home, they are obviously going to be in a position to buy just about anything they decide upon. There are, however, some special challenges.

It's Worth What? You've already recognized one fairly common misunderstanding. If folks who have lived in their homes for many years have not kept up with the real estate market, they sometimes express utter disbelief that their little bungalow could be worth six figures. As you demonstrated, this is a fairly easy one to handle, assuming you've got good comparables to share with them, present the information in an understandable format, and are patient. The closer the comparable sales are to their house and the more current the sale, the more effective they will be in making your point.

How Motivated (Really) are the Owners? This is a judgement call, and it will take some gentle probing and astute investigation to determine. In some instances, such as the one you encountered with Mrs. Wiggs, there was a sincere motivation to sell - unfortunately, it was on the part of the Wiggs' children, not her. In working with folks who have deep emotional ties to their homes (an understandable and common situation with many senior citizens), you will need to make clear from the very first that the objective of the entire process is to sell the home and move out of it. You might ask what actual moving plans have been made, and volunteer appropriate information if little or no planning has been done. You should certainly inquire as to future living arrangements, since that's an excellent indicator as to how serious a seller you have, and it could obviously result in more business for you. By all means establish contact with others who may be influencing (or actually making) decisions, such as children, attorneys, bankers, accountants and family friends. Complete and present a simulated offer to purchase using hypothetical figures and assumed closing dates. If, as a result of any of these actions, you detect a tendency on the part of the homeowner to panic at the actual prospect of moving, then you need to back off and do more counseling before you actually take the listing and put it on the open market.

Special Senior Concerns: It would be a mistake to assume that senior citizens are a homogeneous group who all share the exact same attitudes and beliefs. However, having worked with several during my active selling days and having had several in my real estate classes and home buying seminars in the past few years I will venture these observations. To further add credibility, I'll also reluctantly confess to being a very slightly seasoned citizen myself . First, many seniors are very trusting. Once you establish rapport and gain their confidence they often tend to treat you as an old friend and confidant. This places more of a responsibility on you, since they may make some important decisions based almost solely upon your recommendation. Second, they dislike gimmicky sales pitches and high tech psycho babble. Keep it simple, honest, and understandable.

Find a Niche and Fill It: If you are looking for a stimulating and rewarding niche in which to operate, the "over 55" market offers some tremendous opportunities. Folks are living longer and enjoying productive and active lives. You may have also noticed that the Boomer Generation is now qualifying for Social Security. The National Association of REALTORS® has a Specialty, Senior Real Estate Specialists (SRES). You can check out the requirements for the program at www. sres. org. In working with Seniors, just do your research, understand your market, and press on. And without getting too schmaltzy, treat your customers and clients as you would like to have another REALTOR® treat your mom and dad.

Expanding Your Horizons - Generational Housing: If you would like to expand your knowledge on dealing with specific generations, let me recommend the book Generational Housing: Myth or Mastery by Carmen and Lloyd Multhauf. It's a comprehensive and well researched discussion of the attitudes and tendencies of the various generations in our American society. The book's Amazon.com link has a Search Inside Feature that will allow you to browse. There's even a professional designation Generational Housing Specialist™ (GHS™) that the Multhauf's provide. You can check that out at www.generationalhousingspecialist.com .