Customer Service - Always The Most Essential Component of Marketing & Sales

Many businesses find themselves facing the choice of taking alternative approaches or following certain approaches to marketing and/ or selling their products and/ or services. While it is often possible to make a particular one - time sale based on offering a low - ball price, this approach rarely creates any long - term allegiance. When one observes a variety of business models, there are numerous examples of different levels of customer service or support, as well as different levels of training that businesses offer to their customer service representatives. What those who fail to prioritize or pay sufficient attention to this process may still enjoy some degree of success, invariably it is the quality and consistently of their customer service representatives that dictates their longer term sustainability and acceptance. For example, every real estate professional must balance his promises with reality, as well as paying attention to the fact that most parties to a real estate transaction need to have their hands held.

1. It is certainly true that a business or sales representative can make a sale by offering a lower price, that behavior rarely develops a committed customer, and certainly never leads to the very desirable client relationship. However, we often observe companies that initially react to down periods by diminishing and reducing customer service and the related expenses. Nothing could be more counter - productive, because in the bigger picture, customers remember how they were treated far beyond the period that they recall the price they paid. Consider how you personally feel when you go into any store, or make a call to a company, and how the initial treatment irreversibly impacts your perception and opinion of that business. Effective service means a real and concerted effort to make the buying experience a far more positive one for customers and clients, and differentiating yourself from the competition. Isn't it funny that so many businesses spend so much money and time doing post - process interviews, while often ignoring or certainly not paying enough attention to how they treat their customers or potential customers, in the first place? How often do you observe companies offering some sort of promotion to attract new customers, while not offering these to existing customers to retain them, even though the cost of acquisition is invariably greater than the cost of retaining existing customers?

2. There are many essential components to assure that a quality procedure is consistently followed. It begins, as so many things in business, management and leadership do, with a prioritized commitment to everything that makes the buying and/ or shopping experience a better one! It must begin with not simply acting like you care, but actually doing something. When businesses spend more effort on serving their customers than simply thinking about selling, their sales are enhanced rather than diminished. Successful organizations always understand that exceptional service creates a positive word of mouth, which is the most powerful and meaningful form of marketing.

After more than three decades of extensive consulting to hundreds of businesses and organizations, it has become obvious that the most sustainable behavior is professional, quality and consistent service. Whether the business sells a product, a service (such as doctors, etc) or some combination (the real estate transaction business), they must prioritize how they serve their customers and/ or clients, throughout the process.  Businesses must come to understand that it is not the sales you make today that count the most, but rather how you are perceived and appreciated by future potential customers and clients. Ask yourself why would your existing customers/ clients refer your services?

Customer Service : A Cautionary Tale of Two Airlines, & What Every Business Should Learn From It

It's both a fact and a reality of airline travel that from time to time, a traveler will encounter some unpleasurable occurrence. For a number of reasons, and even at times for no fully recognizable reason, we face delays. However, in the last month, I have seen first - hand the behaviors, attitudes and perhaps training and personnel involved, often determines whether a customer comes out of the experience with either better or worse opinions of the airlines involved. Precisely how two airlines reacted when their customers were adversely impacted should serve as a valuable primer in customer service, both the to do's and the do not's! This story may be about how two airlines behaved and responded, and trained their employees, but it is relevant for anyone who wishes to succeed, whether in a product - based business (selling a product), or a service - business (such as real estate, investments, etc.)

1. A couple of years ago, my wife, eldest son, his girlfriend and I were scheduled on a Jet Blue flight to Nassau, Bahamas. Boarding and taxiing seemed normal, but then we got the dreaded announcement from the pilot that there was a computer issue, and we had to return to the gate, in order to remedy the circumstance. While initially the crew could only offer us an idea of how long the delay would be, the airline decided that if anyone wished to disembark, he could, and could then reboard when the issue was resolved. While we experienced a two hour delay, and certainly no one was pleased, this airline immediately decided to behave proactively, and even before we departed, issued a credit to every passenger's travel account. Obviously, this was a token gesture, but merely the attitude of making it up to the passengers, indicated why this company has been consistently rated extremely highly in customer service analyses, etc.

2. About a month later, my 24 year old son was traveling from Philadelphia, to meet us in Fort Lauderdale. He boarded his US Airways flight as scheduled, they began to taxi, and then about 90 minutes later, returned to the terminal because of a mechanical issue. Obviously, this will happen, but what this airline then did may offer a glimpse into the other aspect of customer service (or perhaps it should be referred to as disservice). The airline determined that the plane issue could not be remedied immediately and brought another plane around to replace it. However, since this plane was both narrower and shorter, approximately 30 passengers became further disenfranchised because they needed to wait, were then told to move to the side, and then were told they would not be able to go on this flight. Needless to say, hours passed, and as time ensued, passengers became more and more irate. They were given little information, and there was no immediate attempt to get them on another flight. In my son's case, rather than taking a flight that should have arrived in Fort Lauderdale at approximately one in the afternoon, after much ado, was placed on a flight that departed Philadelphia and approximately 7 PM, and flew to Miami International Airport (slightly over 30 miles away) and arrived at about 10 PM. Of course, his baggage ended up flying separately to Fort Lauderdale, and fortunately arrived there the nest day, and we had to go to airport to pick it up (not even an offer to deliver it, as some sort of customer - service based move to empathize with their customer.. Proactive customer service would have dictated that the airline would have at least offered to deliver the bag to our hotel, but instead, on Christmas Day, we needed to return to Fort Lauderdale Airport to pick it up. Wouldn't you have thought that at the very least, the airline might have offered some sort of food voucher, since my son would be staying there for about eleven hours?

The point of this is not to point figures, but rather to teach every business an essential lesson, which is to leave a customer satisfied. Which airline story would leave you with a better taste in your mouth? Which one would you use the nest time? Now that the offending airline has merged with another, would you now hesitate to use their merger partner in the future? True and quality customer service means empathizing, caring, addressing and fulfilling your promise, to each and every individual that does business with you. In other industries, this would mean being proactive in fulfilling actual or implied promises. For example, which real estate agent would you rather do business with, one that explained everything fully to you, figuratively held your hand throughout the process, and under - promised and over - delivered, and exceeded your best expectations throughout the process.

Why Savvy Homeowner Price Their Home Realistically, From The Start?

People come up to me all the time and ask, "How's the real estate market doing?" Although I would really enjoy giving a simple answer to this question, the real answer is far more complex. In certain parts of the country, the housing market has been stronger than in many other areas, although, prices often fluctuate, even within the same area. However, many homeowners who list their homes have listed them at unrealistically high prices, and then been inflexible in terms of reducing their price. I have observed homeowners list their houses at prices higher than homes sold for at the peak of the market, and then becoming disappointed when their homes don't sell. Some homeowners explain their asking price by explaining how much money they have put into their homes, or how beautiful and exceptional their house is. Often, these same homeowners have owned their houses for many years, and they seem to conveniently forget how little they originally paid for their houses. Yet, the reality is that the price one receives for one's house is not related directly to how much one may have paid, or how much one may have put into the property. In the end, houses generally sell based on what buyers are willing to spend for the house, and that is generally related to the real estate market at that time.

It is also important to understand that the listing price is often far different from the selling price, and that neither the homeowner nor the real estate agent actually determine the eventual selling price. This is only determined by the marketplace itself, as well as by an individual buyer. In addition, even if we assume that someone might be willing to over - pay, since the vast majority of buyers do so via mortgages, lending institutions base how much they will lend, on what their appraiser values that home at. That is where the familiar expression, Comp - Out, is often heard.

These homeowners are generally hurting their own chances of selling their homes by listing their homes at unrealistically high prices. Houses that are "priced right to sell" from the start have a far better chance of selling than those priced too high. Today's buyers study the internet, and many realize what comparable houses are realistically selling for. A basic reality of real estate is that in most cases, the best offer a homeowner will receive for his house is received in the first few weeks after it goes on the market. New listings are "hot" to potential buyers, while houses that remain unsold often elicit questions from buyers as to what was wrong with the property - why it hasn't sold?
Many owners interested in selling their homes interview several real estate agents and brokers, and ask for recommendations as to pricing, as well as many other questions. Many owners want to believe the agent that tells them their house is worth the highest amount, as if saying it will automatically bring forth a higher price. Instead, owners should demand a professionally prepared Comparative Market Analysis, including pricing and a marketing plan from their realtor. In most cases, a homeowner will do best going with an agent that acts professionally, markets professionally, and justifies both the pricing, and how the marketing plan will work.

In addition, even if a "stranger from another planet" decided to pay an unrealistically high price for a house, most buyers need to get a mortgage to finalize the funding for the purchase. Lending institutions, for a number of reasons including some unwise lending decisions during the height of the real estate "bubble," are doing far more complete and conservative comparative market analysis of their own, and if this comparison (known as "Comps") do not justify the price being offered, the lending institution will deny that amount of funding because it does not "comp out."
Since for most individuals, their home is their most valuable asset, doesn't it make sense to objectively ask the same questions as an owner that potential buyers will ask? The main question should be, "How does this house compare with comparable homes in comparable areas in comparable condition? Owners should also ask, "If I were buying a home, would I pay that much for this house?"

Why A Professionally Prepared CMA and Marketing Plan Are Priorities To Sell A House?

We often hear people discuss the need for a CMA (comparative/ comparable market analysis) to best determine approximately what a house is worth. Unfortunately, this process is far from being an exact science, and real estate professionals might come up with sometimes considerably different numbers and suggestions. Both a quality, realistic CMA, combined with a well - defined marketing plan, will generally best bring forth the best result to someone who wants to sell his home. Shouldn't the objective of the process be to obtain the best possible price (available in the present market conditions) in the shortest period of time, with the least degree of hassle?

Seek and put more credibility in looking at comparables that pay more attention to the most recent transactions, and focus on other homes in a like - priced (with equal appeal) neighborhood/ area, that have recently sold, as well as those that have not, and the competition on the market (at present). Homeowners must be able, and willing, to avoid and overlook their emotional attachment to their home, and view their house as potential buyers might. Avoid pricing your house at the top of the market, and pay attention to how best to price it, to attract the buyers your home will predominantly appeal to.

Only when the CMA is used in synergy with a fully - developed and well - considered Marketing Plan, will the best results be achieved. Marketing is not merely about how much is spent, but which vehicles are used, and how well they are. Marketing should focus on the niche market that is best attracted to your home, because of a combination of price, neighborhood, size of house itself (as well as the overall property), etc.

No degree of marketing will work as it should unless the homeowner and the real estate professional are on the same page throughout the process. It is a good idea to put this plan into writing and for both the agent and the homeowner to sign off on it!

After all, isn't the purpose of this effort, not merely to over - price, because listing price and selling price as far different entities. You can list at any price, but your home will sell at a price determined by the marketplace, not by either the homeowner or agent! You will best sell your home at the highest possible price in the shortest period of time, with the least amount of hassle, when you synergistically use your CMA and your Marketing Plan!

The Better You Understand Mortgages, The Better Off You Are!

The vast majority of houses sold in the United States require the buyer to secure a mortgage for a large portion of the home's price. Very few home buyers are either willing or able to purchase a house without getting a mortgage. One would think, therefore, that since so many people either presently pay a mortgage, have previously paid a mortgage, or require a mortgage to purchase a house, that there would be more knowledge and understanding by the public about the subject of mortgages, how they work, what the options are, etc.
During the "housing bubble," many lenders were often indiscriminately approving people for mortgages. These lenders were granting mortgages at some times for even more than the value of the home. They were also rather lenient about credit, and very liberal in terms of valuations. Probably in large part due to the housing crisis in the last few years, lenders have taken a far more conservative approach.
Most lenders today require excellent credit to be approved for a mortgage. The lowest mortgage rates are generally approved only for individuals with credit scores approaching 750, and, in most cases, lenders will not even consider an individual with a credit score lower than 650. Obviously, this has tightened the mortgage market, and has indirectly been another factor in bringing down home prices.
Years ago, many lenders would require far lower down payments than they presently do. Many buyers were then even able to purchase houses with no out of pocket expenditure, and some lending institutions even loaned over 100% of the houses selling price. Today, the vast majority of lenders expect home buyers to pay approximately 20% of the price of the house, and will only loan up to about 80% of the price that the lender values the house at.
Many home buyers are confused by what they will be paying for the loan. There are many factors involved, and the rates fluctuate. Some institutions will, however, lock in a loan rate for a certain short time period (generally ranging from 30 to 90 days). In addition, some loan rates are quoted with no points, and some require points. Home buyers should understand what a "point" represents. In the mortgage industry, a "point" represents a percentage. Therefore, if a loan is quoted with one point, it means that the home buyer must prepay to the lending institution one percent of the amount of the loan. Therefore, for example, if the amount of the mortgage is $500,000, one point means that the buyer must prepay $5,000 to the lending institution.
In the last few years, mortgage interest rates have been close to the lowest levels (and at points at the actual historical lows) ever! Indications are that these rates will begin to creep up in the not so distant future, based on what most experts believe based on the evaluations of statements made by the Federal Reserve (in terms of raising interest rates as the U.S. economy improves). For most people, their home is their single biggest asset, and since the vast majority of individuals carry some sort of mortgage, doesn't it make sense for each of us to better understand more about them (and their usage, etc.).

A mortgage may be either a fixed rate or an adjustable rate loan. A fixed rate means that the buyer will be paying the same interest rate during the term of the loan. An adjustable rate, or variable rate loan, will lock in a rate for only a specified time, and then will change. Variable rate loans are generally "pegged" to some official index, such as the Treasury Bill, Treasury Note, or Treasury Bond index, or some other index that the lending institution specifies. Lending institutions have often offered low introductory rates for a short period, and then those rates rose when the term for readjustment arrived. Adjustable rate loans may lock in the initial rate for any specified term, but is generally anywhere from six months to five years. Therefore, if an individual plans on only living in the house purchased for a relatively short period, and, for example, a five-year (or 10 - year) adjustable mortgage had a significantly lower interest rate, it might make sense for the buyer to opt for that type of loan. I strongly recommend that buyers carefully discuss their options with a trusted financial professional, such as a Certified Public Account, or Certified Financial Professional, as well as with a mortgage professional that has been recommended highly to them (and that you have faith in). Those considering getting a mortgage must pay particular attention to maintaining the highest possible, best credit rating.

Both buyers and sellers must agree to a realistic price based on comparative market values, or the lending institution will not "comp" the house, and the buyer will have to come up with significantly more personal funds to purchase a house. Other areas that need to be considered are securing a professionally examined and prepared Home Inspection, prior to agreeing to purchase any house.
These items are only a brief and cursory view of the many factors impacting mortgages. Home buyers should study and fully understand mortgages, their ramifications and their options, prior to purchase. A home buyer should always ask himself, "Do I feel comfortable with a monthly payment, which includes mortgage (interest, principal, escrow), taxes, utilities and maintenance (including a reserve for contingencies). Unfortunately, many buyers purchase emotionally rather than logically!

The more you know and understand mortgages, the better off you'll be! Be prepared!

Why It's Important to Create A Personal Financial Plan?

Many people speak about the need for personal financial planning, but very few realistically understand what this entails. Financial planning is important to do, not merely as an exercise but to optimize one's financial security and independence. If financial planning is done properly, it is an important and helpful tool, but when done improperly, can often cause more harm than help.
There are several ingredients in properly creating a financial plan. The first step is to understand one's goals and needs. This means an exhaustive, honest and thorough examination of what the goals are of the planning. Goals are needed on a short- term, intermediate- term, and long- term basis. An individual must address first what those goals are, and then attempt to project and place a price-tag on those needs. Once one identifies goals in all three categories and identifies the costs, an attempt must be made to ascertain how to begin to fund those needs. Some individuals are in a financial position where they can invest a lump sum and put it away as a reserve for that need. However, it is far more common that one must create a periodic (or installment payment) plan to strategically gather sufficient funds. If the periodic method is used, the individual must commit to strict discipline in terms of fulfilling those payments, or the plan is doomed to failure!

Identifying the goals leads one to the identification of multiple aims. Most commonly, individuals have multiple needs. Perhaps there is a specific need for an educational fund, while there is also a need for maintaining an adequate family "emergency reserve" fund. There is also a simultaneous need for planning for eventually funding one's retirement. Most individuals possess a goal to own their own home, but few prepare adequately for that. As part of one's overall plan, he must also pay attention to maintain as close to a pristine credit history/ record, as possible, because one's credit often determines not only the ability (or rate one will pay) to get a mortgage, but also, in many cases, whether one will get a better job (because many employers use the credit rating as one component of their overall hiring process review).  The longer an individual waits to begin the implementation of his plan, the more difficult it will be to achieve the goals and aims of the plan.

Once alternative strategies are discussed, a specific strategy must be decided upon, and worked on. Strategies may include lump sum investing, periodic savings/ investing, loans and loan repayment, insurance and annuities, or some combination of these and other strategies. Whatever strategy is decided upon, however, must be strictly adhered to, or there is little usefulness to financial planning.
Any time of financial planning requires strategic discipline for it to have any chance of success. All too often, people procrastinate, and by the time they start considering creating a financial plan and strategy, it is a case of "too little, too late." If an individual begins planning for a child's education when the child is young, it is a straight- forward, direct method of installment savings which is usually achievable, using a specific discipline. When one waits until there are only a few years remaining before college, it is a far more difficult task. When one begins to save for the downpayment for s future home far in advance, the greater the chance of getting to the objective/ need. Financial planning is quite important, but it requires following a step-by-step procedure, creating a plan, and then working that plan.

The 5 Steps For Answering/ Addressing Any Objection or Concern

In nearly every situation, when people get into a discussion, there are bound to be certain questions or objections. How one handles the situation, and responds to objections, often determines whether one accomplishes his desired results. It is important to understand that all objections fall into two categories, either (1) technical; or (2) emotional. If the initial presentation has been properly presented, the vast majority of objections are emotional. The main technical objection is usually financial, while it takes a finer "ear" to properly understand what each emotional objection might be.
The same five steps are used in all situations. The finesse comes with being comfortable with the concept, listening, and believing in these steps. All major sales and marketing organization teaches this to some degree. The five steps are:

(1) Restate the objection--- This is essential so that you are answering the true objection, and not opening up a Pandora's Box by addressing something that is not the objector's concern. An easy way to do this is to say something like, "So you're concerned about... " (Understand the concern may be about a guarantee, reliability, time commitment, ability, etc., but it is essential that you ask, and get a response and acknowledgment from the objector). Also remember the very important "ZTL" rule - - - "zip the lip." Do not speak until the other person answers your question, and if you are not sure of the meaning of the answer, ask again until you are! The ZTL rule says that the first person to answer "loses."

(2) Empathize (Don't sympathize). This can be simply done by saying something similar to, "I can perfectly understand how you feel, in fact I felt the same way, until I realized and understood a few things..." (Be sure you mean it, and actually are empathetic!)

(3) Answer the objection-- Calmly, conversationally, fully answer the objection... Do this to the satisfaction of the individual with the concern, and do this patiently, calmly and in - detail. You probably know and understand why you care or believe as you do, but others may not be nearly as certain or convinced. Whether this is related to investments, some product, real estate, or anything else of significance, know what you believe and articulate your reasoning in such a way to motivate someone else.

(4) Restate the proposal - - - "So in light of this information, and in light of the fact that you've told me that you... " Thus is an essential step, because it refocuses on what you are trying to achieve in the first place.

(5) Re-close - - - "Doesn't it make sense to...?" Then ZTL (zip the lip)!  I repeat, under no circumstances speak. You must let the other person, agree, say maybe, or give another objection. If they now give another objection, repeat the 5 steps! Keep doing this!

Then, if you believe you have done this long enough--- and after a minimum of 3 times using the 5 steps, there is one more "fall-back" position - - - Say, "May I make a suggestion?" Then, again, zip the lip. Wait-- force yourself --- it almost never occurs that someone will say NO to making a suggestion while they may say "No," eventually to the suggestion, however. It is very important that you get the other person into that "nodding--yessing" mode, because this can be a great lead in (or "trial close") to eventually overcoming the objection, and acquiring a commitment.

I want to stress that this works. I have used it hundreds and hundreds of times in numerous industries, organizations, charities, and personal situations. I have taught thousands how to effectively use these techniques. It initially takes some coaching, and then some practice, but once someone has perfected this technique, their "closing ratio" improves incredibly! This is NOT a trick nor should you ever proceed with anything less than absolute integrity! Rather, it best positions you to fully and capably explain why your proposal is a good one, and is hopefully compelling to them, as well!

What Ever Happened To Customer Service?

In the "old days," when many stores in numerous industries were what we would consider "mom and pop" stores, whenever you entered the store, you were greeted by your name, and often you would enjoy some personal time conversing with the owner. In today's world of few small stores and many large stores, much of that personal touch is ignored, and there seems to have been a departure from the concept of serving the customer and his needs. Even in service industries, such as going to your doctor, financial planner, or realtor, isn't one of the essential components how the individual you are doing business with, treats you, and whether you perceive that he really cares, is sincere, and will serve your best interests? Yet, how often today, do we end up feeling more like a number, and we merely attribute to our fast - paced, increasingly digital society?

In my town, there are a number of cleaners, some large and some much smaller. While the larger ones are often lower priced and have faster turnaround time, I still prefer using a small "Chinese Laundry" that has been in this area since 1947. Every time you go in, they know who you are and they chit-chat just enough (Enough to be friendly and welcoming while not so much as to waste your time). As you enter, even before you hand in your Claim ticket, they are already retrieving your cleaning, and pay particular attention to detail. While I would be very hesitant to bring some of my better custom made shirts to the other cleaners, I don't hesitate to bring my shirts here. They combine superior customer service with quality.

When I go into my favorite cell phone store in town, they fully understand and cater to my needs. They are patient when I don't understand something or one of my kids invariably lose or destroy their phone. They never try to "nickel and dime" me to death, and I never hesitate to refer others to them. Contrast that with the cell phone store nightmare stories that I have heard from others where someone tells me about the great "deal" they were offered, only to vehemently complain shortly thereafter when the inevitable complication or problem occurs. I know that my store, which has been in business far longer than most in its industry, does more business, more repeat business, and is more successful than most of the others. Their commitment to their customers is what sets them out from the rest.

Many of us have heard auto mechanic horror stories, how someone was either lied to, overcharged, charged for something that wasn't needed or done, or given shoddy service. Again, in my town, I have been fortunate enough to have found an honest mechanic who stands behind his work, and goes the extra mile for his customers. While my mechanic may or may not always be the least expensive, to me having the peace of mind and honest service is far more important than shopping around simply for price. Why aren't there more like these?

When someone does business with me, either in real estate or in any of my consulting service businesses, I spend most of my initial meeting learning as much as I can about that individual's goals, needs, priorities and concerns? How often have you been asked what you care about, as opposed to someone spending most of the visit telling you how great they are?

All of us have gone into stores, offices, department stores, warehouse stores, etc., where we are either unable to find any assistance, or the assistance is rude, pushy or otherwise unpleasant. Smart stores, regardless of their size, understand the importance of customer service, yet few make it the priority it is. Just think about that the next time you are placed on hold with a recording that tells you to type in your account number, etc., only to be asked all that same information once you are "lucky" enough to get a live person on the other end of the line.

While computers have the ability to improve certain processes, unless we continue to receive quality customer service, how will anyone expect any degree of brand or product loyalty?

Whatever happened to true customer service? 

Everything New Is NOT Always Better!

With all the new technology and technological advances, many people seem to believe that because it is newer, it must therefore be better, or more enhanced. While that is true when it comes to certain technologies, there are still certain examples when newer is not better. Examples mostly include industries where technology and service are either combined, or need to go hand in hand, such as telephone service, airline travel, banking and real estate services. While there certainly have been significant technological advances in both of these circumstances, it can be argued that the overall experience has not been improved significantly, if at all.

1. Once upon a time, we had one telephone company which supplied our telephone equipment, maintained our internal and external wiring, and provided generally reliable service. Those classic black phones may not have been terribly stylish, but few of us even remember one of them not functioning. If we had any difficulty, we made one call to one company, and the problem was soon resolved. Today, land line telephone service is outnumbered by voice over internet services (VOIP), as well as by wireless/ cellular service. Our telephone equipment rarely lasts too many years, and it is next to impossible to find anyone to service it, and it is generally cost prohibitive to repair, so we simply purchase another telephone. It seems to me that there are far more dropped calls today, or some other static, interference, or trouble with our lines. Many people have abandoned land lines completely, depending entirely on their cell phone, but we all have experienced cell phone dead zones at one time or another. Relatively speaking, it is true that this competition and the enhancements has brought about lower pricing, but at what sacrifice. And, have you tried to get through to your telephone provider? How much of our time is wasted simply waiting to be connected with a real human being? With all the sophistications and enhancements, have you noticed better customer service, because I have certainly not?

2. In the latter part of the 1970's, the airline industry was deregulated, with the expressed intent of trying to provide more competition, and thus lower pricing for the consumer. While pricing was immediately lowered, have you flown recently? Spirit Air actually charges for carry on bags, while almost all domestic carriers have some sort of fee for checking bags. Meals on a domestic flight, forget about it! Legroom on most carriers is almost non existent. Customer service seems almost an anachronism! Most remarkedly, with all the technology, it actually takes longer on many routes today than it used to.

3. The banking industry offers far more conveniences in some ways, such as ATM's, digital banking apps, bill paying services, etc. But do most of feel we are being treated better, nor that we enjoy paying more fees, etc., than we ever did before.

4. At one time, real estate was a newspaper - mandated and influenced industry. That's where the ads were placed, and then we'd call our real estate agent, to see what we wanted. Today, the industry is predominantly web - centric, where people can see listings on numerous sites, etc. However, wouldn't the typical buyer be better served if these conveniences were used in synergy with truly personalized and professional advice, that tied together all the loose pieces, and assisted buyers throughout this often - confusing and stressful procedure and transaction?

While technological enhancements are nice, they are not always that essential. Yes, many smart phones have lots of applications, but many of those come at some cost, either for the app itself, the data used, the type of phone needed, etc. And, no matter what cell phone or computer or tablet you have today, chances are it will be either outmoded or run of the mill pretty soon! Let's celebrate technology, but put these advancements into perspective!

The ABCDE of Being A Professional Negotiator

How often have you confronted a situated when you realized how helpful it might be to you if you were a better and more proficient negotiator? Isn't it somewhat disconcerting that while most of us recognize how important negotiations are to our personal, professional and organizational lives, there are so few who are truly proficient at the process? In order to become a truly professional negotiator, there is a need to understand the ABCDE of being competent and professional in our negotiating abilites, skills and practices. This means that negotiations are dependent on a combination of: attitude; belief in your position; clearly articulating your needs; delivering on any and all promises made; and expanding your mind to create and understand alternatives. In nearly every aspect of our personal and professional lives, we best serve ourselves and others when we best negotiate for what we believe and prioritize. Whether this relates to your interpersonal relations, leadership service, or in business (for example, your real estate professional must be a reliable, quality negotiator, if he is to best represent the needs of his client), negotiate in a quality, expert and professional manner.

1. Like most impactful activities and skills, negotiating effectively begins with our attitude. This means believing in our positions, being comfortable in our positions and own skin, and believing in our skills and abilities. It also means being positive in our approach, thus focusing on ways to make the process work rather than on the reasons why it might not! How can anyone be effective as a negotiator if he begins with anything less than a positive and productive attitude?

2. Do you believe in the positions or stances you are taking? Are they honest and forthright, thus enhancing your ability to develop a relation with your negotiating adversary, converting the process from adversarial to cooperative? Do you behave in a manner of absolute integrity, expressing your needs, while understanding the process and needs of the other side of the negotiations?

3. How clearly do you articulate your needs and/ or positions? How can you expect to be productive and get the results you need and desire if you don't clearly and express these items? Do you describe your priorities, advantages, and limitations, as well as any concerns you might have?

4. Never make promises during any negotiating that you are not certain that you can deliver! Many individuals who participate in a negotiation approach the process with the false belief that they need to deceive and exaggerate, while the reality is generally that there is little less productive activity one can take during this process. When cooperation, integrity and transparency is the emphasis, the results are optimized exponentially!

5. Expand your mind's ability and willingness to consider alternatives! When both sides understand each others' needs, they gain the ability to see how each might benefit, thus helping each other, by doing things in a different manner, thus creating the optimum win - win scenario. For example, in a hotel/ group negotiation, when the group envisions ways to save the hotel money that can then be utilized to reduce the group's costs and expenses, this win - win may be achieved and enhanced!
If you are to begin negotiating, do it the proper way! Understand the components, adhere to them, and become proficient in their use!

Importance of Using The Logical Approach

In my more than three decades of intimate involvement with not-for-profit organizations, as a paid professional staff member, as a volunteer leader, and as a consultant to well over one hundred organizations, I have repeatedly observed that the vast majority of organizational leaders do not approach their tasks by imploring the logical approach. On the contrary, I have been disheartened to observe a total lack of cohesiveness, logic and efficiency by these individuals. Rather, all too many of these individuals were so totally ill-prepared for their leadership positions, and rather than acting as a leader, merely ascended to positions of leadership. In my decade as a Licensed Real Estate Salesperson (in the state of NY), I have come to realize that this behavior often relates to buyers, sellers and various other parties to the real estate transaction process. Wouldn't this process be far less stressful, and the optimal results easier to arrive at, if there was more logic and less emotion involved?

When I refer to using the logical approach, I am rather referring to understanding how to approach circumstances in an organized, efficient manner, rather than merely operating by the seat of ones pants. This requires understanding all the basics involved in the decision making process, as well as how to properly and effectively analyze situations. Unfortunately, most individuals who have ascended to positions of leadership, do not look at situations logically, and thus realize that there are always ramifications of either taking action, or even when one procrastinates and thus avoids making any type of decision, and taking any definitive action. What these individuals seem to fail to realize is that even when one avoids taking any action, that, in and of itself, is taking an action. When an organizational leader fails to take necessary action, although taking action is very much needed, results in ramifications that are often far reaching. I have witnessed countless organizations cost themselves dearly, in terms of time, money, effectiveness, membership, purpose, and the effective opportunity to do what might be necessary to bring an organization to the next level, and directing an organization to fulfill both its mission and its vision. Similarly, sellers who over - price their homes because of their emotional attachment, or sellers who try to overly bargain, rather pursuing a fair deal, often hurt their results, etc.

The real culprit in this lack of logic being utilized is that far too many organizations seem to feel, for some reason, that they do not need to effectively and professionally train its leaders. I have seen very few born leaders in my career, yet I have been able to effectively train thousands to become effective as leaders. Every organization that wants to achieve to its potential should prioritize training its leaders. I have observed too many organizations who believe that they train their leaders, only to actually run half - hearted orientation programs, yet never training its leaders; Leaders must be trained in stages, beginning by developing an effective method of identifying and nurturing and developing potential leaders, then bringing them along to do those tasks necessary of elite leaders. Only when that is achieved will more organizations consistently operate in a logical manner, and thus be the best that they can be.

All parties to a real estate transaction would benefit if they used techniques and approaches that were based on logic, rather than merely emotion. Use of a win - win negotiating approach, and a keen eye on comparable properties, would be a far better approach!

Use more logic and maintain the enthusiasm that your emotion drives you towards! The synergy of our hearts and our heads strengthen the eventual results.

Why Should Anyone Do Business With You?

Regardless of your occupation, business, field of endeavor, vocation, etc., you will often need to be able to give a concise, convincing, compelling explanation and answer to the question, "Why should I do business with you?" Can you explain how you are different from the pack, and how those differences are meaningful to others? In doing this, there is a need to avoid the generalities, banalities, and cliches that we so often observe individuals relying on, and falling back on. Have you ever considered the essential question, "Can I sell myself in a meaningful and effective manner?" In my over three decades of training thousands in multiple modalities, I have discovered that few people seem capable of seamlessly focusing on how and why they are the best choice or option for others to choose! For those in the real estate industry, for example, agents and brokers must forcefully present a quality case of reasons why either a buyer or a seller should select them.

1. What is your specialty or niche? Do you believe strongly enough in your strengths and abilities to differentiate yourself? Have you ever been willing and able to be both objective and introspective enough to develop a sufficient amount of inner strength and fortitude to express why you are a better choice or option? In most businesses or fields of endeavor, we each have a large degree of competition, yet rarely is there any emphasis in training these individuals to develop the abilities to answer the basic question being explored in this article. For example, there are many stockbrokers and real estate agents, yet few of them can give you a compelling reason to select them! We witness repetition of the same platitudes and cliches, which end up creating the impression that there is little difference. For example, cliches such as: "I care," "I'll market for you," "I've done a lot of business in that market," or falls back on discussing services offered rather than what it means to someone else, are, in no way, compelling arguments!

2. How are you different? What do you do that will motivate others to select you, rather than the competition? Are you willing to truly listen to needs, relate effectively, and believe enough in yourself to state that one of the compelling reasons to select you, is, indeed, you? What do you bring to the table, and how are you better able to use the systems, techniques, etc., that others also have access to? Why is your way better? Can you answer without hesitation, in a confident manner that motivates others to be attracted to you? Have you perfected the skills necessary, especially as they relate to negotiating, sales skills, and addressing concerns or objection?

Do you believe, in your heart of hearts, that "I'm me, and they're them, and that's why I'm better"? Why is that a truism and not another cliche?

Selling Is Both An Art, & A Science

When I first started in the investment and financial services field, more than three decades ago, the most productive representative in the company had a poster displayed prominently on the wall to his office that read, "Selling is like shaving. If you don't do it everyday, you're a bum!" The essence of that poster has remained "engraved" in my mind ever since, and that is, that yesterday's conquests are simply old news, and one must successfully do the same thing repeatedly in order to truly be a professional and an expert.

As I have trained many others in a variety of fields, including selling and marketing, training, management, leadership, negotiations, and many other areas since then, I have always incorporated the themes of everything in life being some sort of sales, and that effective selling is both an art and a science.

Why do I call selling both an art and a science? A science is something rather precise, and proper sales technique is extremely regimented. The best salespeople use the same proven technique each and every time they give a presentation. Of course, after a while, it seems like it is second nature to them, but it is still a very exact, precise, thought-out and proven methodology.
On the other hand, two individuals can follow the same basic "scientific" technique, and achieve vastly different results. That is why I am stating that selling is also an art. The most effective salespeople relate well to others, and understand human nature. Many of the top salesmen of all time have stated that selling is only a small percentage technical, while being predominantly understanding human nature.

The most effective salespeople are friendly, without being phony, and professional without being starchy and stuffy. Effective selling requires a sales person to do his homework to understand the needs of the individual he is selling to, and tailoring his presentation to address the other party's "hot button." The "hot button" is that set of circumstances, wording, and motivation that gets the other individual's attention, and motivates them to action.

Few people are actually born salespeople. While some people are more extroverted than others, and some feel more comfortable in a sales situation, these behaviors can be trained and made part of anyone desiring to become a more effective salesperson.

Motivated individuals learn the techniques, practice them, and make them part of their own persona. I have trained individuals who began as the shyest, least articulate and outgoing individuals, and developed them into professional, talented and successful sales professionals.

These concepts relate, and are relevant to nearly every aspect of marketing or sales. It doesn't matter if what is being sold is a product or a service! As a NYS Licensed Real Estate Salesperson for approximately a decade, those in real estate are both selling/ marketing a property, but more essentially selling themselves and their personal value, values and absolute integrity. Once someone learns all the techniques, and then combines those "sciences" with the "art" of understanding human nature, he can and will be an elite sales professional. That is, as long as he does it every day!

5 Common Mistakes Made By Home Sellers

One of the most difficult things for many people is coming to terms with selling their home. Many have gotten emotionally attached over the years, and rather than looking at the home from a standpoint of how a potential buyer might view their home, they look at many aspects unrealistically. This often causes them to begin the entire process from a perspective that hurts themselves, and between this emotional attachment, greed and unrealistic desires, many homeowners put their homes on the market for more than they should, and thus inhibit the number of individuals who might offer to actually buy the house. That being said, the next five items often adversely impact the ability to optimally sell ones home, and are usually things that can, and should be easily addressed. As a Licensed Salesperson in New York State, I always advise my clients to pay attention to these easily addressed areas.

1. Avoid large displays of personal items and possessions. These include, but are not limited to: overwhelming amounts of family pictures, trophies, etc; excessive religious decor; lots of lawn decorations/ ornaments; or children's toys strewn about. Homeowners should either store these out of sight, or even temporarily take out a storage unit. They should also place excessive furniture and furnishings in this unit, so the house does not look cluttered, and excessive furniture also often makes rooms look far smaller than they actually are. If a homeowner feels overwhelmed or needs more direction, he should consider using a quality, professional, home stager (with a good local reputation).

2. If your house is an unusual color or shade, many potential home buyers might be turned off. It is far better to have a neutral, but attractive color to put your house in the best perspective.

3. Clear out your garage, at least sufficiently to put your car in their during home showings, as well as when pictures are taken. Remember that a seller wants to make the buyer feel as comfortable as possible, and first impressions are most important. At the same time, declutter the driveway and front lawn area, for precisely the same reason.

4. The first impression a potential buyer gets when he sees the house is most important. Address any potential distractions, or eyesores. These include peeling paint, broken shutters, dirty appearance, awnings or shingles that need repair,broken sidewalks or driveways, unpainted railings, rusty areas, etc. Take a look from the front of your house from every angle, and address any areas that may be turn- offs.

5. Don't neglect lawns, gardens, etc. Make sure the lawn is trimmed, mowed and seeded for maximum positive impact. If the weather permits, make sure there are some colorful and attractive plants, and make sure all areas are weeded, clean, and welcoming.

These are all relatively easy areas to address. Homeowners often cost themselves time, opportunities, and substantial dollars because they overlook these items. I recommend that a home seller discuss these types of things with his real estate professional, and heed the advice given.

Why A Buyer Should Use A Realtor?

While anyone interested in purchasing a home has the alternative of either doing it alone, or using the services of a licensed real estate agent, I heartily recommend use of an agent. Of course, some might say that my point of view is someone biased because I am a licensed real estate salesperson in New York State, I truly believe that a buyer's interests are better served using an agent. Statistically, buyers using an professional real estate agent, put themselves in the best position to achieve their objectives, and make the process less stressful, etc.

However, each individual should find and locate an agent that he feels comfortable with, and listens to your wants and needs, and places your interests first. In New York, an individual has the option of using an agent either as a Buyers Agent or a Sellers Agent. The difference is that while both have legal and fiduciary responsibilities, and are legally bound to the truth, a sellers agent's allegiance is to the seller (or homeowner) while a buyer's agent represents the buyer's interests. For that reason and others, a buyer is a Buyer's Agent's client, while being a Seller's Agent's customer. In New York State, each buyer is to receive a Disclosure Form upon the first serious real estate discussion, and this form explains the different forms of agency. I believe that it is in the best interests of most buyers to be represented by a Buyer's Agent. Doesn't it make sense to depend upon an agent who works for you, and effectively negotiates and uses his skills, to best serve you?

In today's internet savvy society, buyers are able to "look" online at publicly listed houses, and thus they can actually see much of the same information that the professional can. However, in most cases, the degree of detail is different, and professional, serious and qualify agents preview a large number of houses as they are listed on the market, and thus have a more three dimensional and realistic understanding of the house listed. Many houses appear better online than they do in person, and for some, one does not get the full perspective of a house from its listing. In addition, real estate professionals can answer questions for you about the area, including about transportation, school districts, shopping, etc.

A qualified real estate professional often makes a major difference for a buyer, especially when "hired" as a Buyer's Agent, in understanding and performing the necessary negotiating skills, understanding real estate "mentality," and once a "deal" is done, can usually offer excellent recommendations regarding real estate lawyers and home inspectors, etc. The professional can also often cut through some of the frustrating "red tape" that often "pops up" during the transaction.
Buyers should understand that the price of the house already includes the commission to any and all agents involved, and that it is paid out of the proceeds of the sale. That means that the Seller receives a net amount after the commission is deducted from the sale price. A quality Buyer's Agent will also help assure that appraisers used by lending institutions use the Comparables, that best compare the property to those that are, indeed similar, etc.

A qualified professional can offer a buyer peace of mind, "hand holding," professionalism, and expertise. I highly recommend that buyers take advantage of those qualifications, with the warning that a buyer should feel personally comfortable with whichever agent he selects.

The Difference Between Ego & Excellence

One of the least understood behaviors is what most of us refer to as being egotistical. While some individuals voice much bravado and appear to be applauding themselves and patting themselves on the back continuously, someone with a truly healthy self image does not find that type of self praise necessary. The reality is that if someone speaks about achievements in order to demonstrate experience and expertise, and they were real achievements, that is not bragging, but if someone exhibits false bravado and overstates his achievements, then it is simply self promoting. Walt Whitman stated, "If you have done it, it ain't bragging."

1. There is often a huge difference between mere experience and true expertise. Just because someone has had some experience, it does not mean he has learned sufficiently from it, for it to provide some advantage or expertise. I'm sure we have all met people who appear to be egotistical, whose behavior ends up being more based on insecurity and the need for attention, applause, gratitude, etc., than it is related to any type of superior knowledge or expertise. For example, in politics, when a politician points to his record, it can either be a case of bragging, or true excellence. Was he actually the cause of the positive results? Were there actually any positive results at all? Especially as it relates to politics and politicians, there is often a distinct line that gets blurred between true achievement and excellence, versus falsely taking credit or distorting one's achievements. This is caused partly by convincing one's self that they were actually excellent and actually believing it, a desire to win and election, political spin, ego or false ego, or being delusional.

2. I have been involved in the event industry for well over thirty years. During that time, I have come across quite a number of people who thought of themselves as being event planners or event experts, while the reality was that they, at most, chaired a program, event or a committee, and perhaps got involved in certain aspects of the event planning process. Therefore, when it comes to event planners, while I can state that I will guarantee cost savings and superior event planning and superb results, that statement is not bragging but rather the facts based on my years of experience, my gained expertise and knowledge, and the results I have consistently achieved. On the other hand, it is bragging when someone who perhaps was involved in previous events but does not possess the prerequisites to be considered expert, claims to be an event expert.

3. For ten years, I have been licensed in the State of New York as a Real Estate Salesperson. Far too often, homeowners who seek to sell their home let their egos get in the way of their getting the best results, because they have an over - inflated idea of their home's value. One must let the Comparative Market Analysis be their guide in how to price, and try to reduce their emotional attachment, and look at the logical approach, which real estate professionals should guide or direct them towards,

Bragging is only offensive when it is untrue. Otherwise, it may be merely a recitation of the facts. In either case, however, it should be done with tact and without being offensive. However, the true expert, regardless of his personal self - image, leads others by guiding them to the best, most effective course of action, to achieve the desired results.

When Life Hands Out Lemons, Wise Men Make Lemonade

We all experience periods of bad times as well as periods of good. Individuals who adapt to misfortunes by learning from these experiences, and somehow benefiting, are generally both the happiest and the most successful. The adage, "Life is not a bowl of cherries" tells us that not everything will always work out the way we hope, or even anticipate, and to understand that limitation in order to best adapt to circumstances.

Many people seem to enjoy complaining that life is unfair, and hasn't dealt them a fair hand. Realistically, life doesn't "deal," it simply offers us opportunities to either take advantage of, do nothing, or use poorly. There is never any guarantee in anything we do, but our "odds" of succeeding are distinctly enhanced when we take advantage of possibilities, improve our abilities, and upgrade our skill-set, rather than say, "I can't do that." Many individuals seem to prefer making excuses than taking the necessary actions to enhance skills that might be lacking (or need upgrading).
Obviously, not everyone can do writing or mathematics easily. All too many of those individuals, either due to frustration, inadequate training or education, or a "mental block," simply give up, and stop attempting to write or use mathematics, unless absolutely necessary. Others recognize their limitations, and use the opportunities offered to enhance their training, learn other skills, take training, or discipline themselves, and do to this added commitment, become "above par" in these areas.

A great example of using ones limitations, and "making lemonade when life deals you lemons," is how one might adapt to difficulty "keyboarding." Unfortunately, many, if not most individuals, handle this "obstacle" by using "avoidance techniques," and by avoiding using the keyboard, often neglect necessary tasks and duties, such as doing school or work assignments, as well as enjoying activities that comfort with using the keyboard would afford them. The individual who wants to "make lemonade," on the other hand, would find an alternative way of handling this circumstance. One such alternative might be installing and using "voice recognition software, such as Dragon 10. In that way, the obstacle of the use of the keyboard, whether due to a physical reason, a lack of patience, or some other disruptive "force," can not only be as productive as someone comfortable with the keyboard, but in many ways even more productive. This program permits one to use e-mail, word processing, PowerPoint, spreadsheets, etc., via the use of voice commands, instead of keyboards. The programs are easy to install, and easy to use, yet, of course require the individual to become familiar with the many features to fully take advantage of the program. For example, it is estimated that someone can "type" something approximately four times as quickly using voice commands than using the keyboard. Therefore, the individual who takes advantage of this alternative is using a potential obstacle, and instead of merely complaining about it, finds "another way" to function effectively.

In many areas of everyday life, we find tons of obstacles where we have choices - - either complain and be negative, or "think outside the box" and find a better way. Successful individuals do not give up, but rather find ways to get things done. Most things are possible if one thinks positively!

Economic Data - The Hype versus The Reality

No wonder most people don't understand the economy. Often what might seem good on one hand, has bad side effects on the other. For example, the stock market rises- one would think that was good! But that was mostly due to the rising price of oil- bad news. But, often the price of oil rises because the "experts" believe the economy is improving and thus more oil will be needed in production- good news! But that rise in oil prices causes the cost of living to increase- bad news. But that helps the Gross Domestic Product (GDP)- good news! But that then causes inflation- bad news. But that inflation means the economy is improving- good news! But then the Fed becomes concerned about inflation and raises interest rates- bad news! Which causes the value of the dollar to improve- good news! But that hurts exports because now American products cost more overseas- bad news! But that means foreign products cost less in the US- good news! But that hurts American companies competitiveness- bad news!

If we think that political analysis and political chatter is often more hype than anything else, the same can certainly be said about analyzing economic news! You can readily see why economic news often seems co confusing. Economic news often seems confusing because it is - - what is good for one consumer, might be bad for another- what is good for one company, bad for another- what might be good for one sector of economy- bad for others.

The stock market is often the most confusing. On days when there is "bad news," the market often goes up, while on some "good news" days, the market sometimes goes down! While the Dow, or the S&P, etc., might go up, it does not mean that the stock(s) you own, will follow suit.
Too often, for the sake of a sound-byte, the media tries to over-simplify economic news. Yet the economy is by definition quite complex. The one issue there should be some agreement on is that high unemployment is not good. Yet even in that case, the "experts" can't agree upon, nor act upon a viable solution.

When business reporters report data related to a specific corporation's financial results (i.e. quarterly revenues and/ or net income), we consistently are confronted with the terms, "exceeding expectations," or "not meeting expectations." That far exceeds the supposed experts accurately predicting results, yet an extraordinary amount of attention is paid to the details and minutia.

The best way to think about the economy is this-- the difference between a recession and a depression is that it's a recession when it happens to someone else-- it's a depression when it happens to you!
It is my belief that a healthy economy requires certain factors to be in place - - low joblessness; high consumer confidence; a strong manufacturing sector; and reduced government deficits. That is what we must demand!

Why Budgeting Is Meaningful and Why A Budget Needs To Be Taken Seriously?

Nearly every organization, whether it be public, non - profit, or related to a for - profit group or scenario, has some sort of budget process. Unfortunately, far too often, the attitude towards the significance and relevance of the budget process is often a diminishment of the need for this process. Meaningful budgeting must always begin with an attitude of understanding and appreciating the reasons and needs for the process. When done correctly, it enhances one's ability to do a thorough and relevant analysis of needs and priorities, as well as direct a process in the right direction. This should assist in the prioritization process, and make this a step towards functionality, rather than merely an exercise. Once this is understood, many believe that only by using a zero - based budget process, does the document serve the maximum purpose. Remember that the same essentials needed by organizations are relevant to each of us as individuals (especially related to our personal financial focus and achieving financial goals such as buying a home, preparing for retirement, expanding comfort zone, etc.)
 
1. The vast majority of individuals tend to feel that creating a budget is merely a guide, rather than a directive. Because of this, once they get the budget approved, they often ignore the document, and merely resort to shorter term or crisis management form of leadership. On the other hand, when budgets are used properly, they set the tone, create priorities and direction, and do so in a responsible and effective manner.

2. Effective budgets begin with a commitment to thorough analysis. This permits groups to set goals, create meaningful prioritizes (based both on needs as well as goals and visions), and to effectively plan for the upcoming period. When used properly, budgets are an essential first step in realistic strategic planning.

3. Does your group have needs and priorities, and do they plan to address these in a manner that includes budgeting for them, or do they simply take haphazard steps in a less than meaningful manner?

4. Budgets must be used as a guide to which actions to take, and how to get the maximum bang for the buck. When this is done, organizations have the ability to prioritize providing value to their constituents and other stakeholders.

5. For more than three decades, I have prepared and assisted in preparing numerous budgets, and have become an advocate for the need for using zero - based process. Zero - based means avoiding the tendency of merely extending meaningless budgets year after year. When groups merely look at what they are doing, and just either maintain a line item expenditure or increase things by a specific percentage, groups lose an opportunity to improve and become more efficient and effective. Zero - based means one must justify each non- contractual item on a needs, priorities, best ways, and relevant manner. Only when this is done can most organizations plan effectively in a non - crisis manner, and evolve before they must.

Don't consider budgeting to be merely a process or exercise! When that is the approach and attitude, opportunities are squandered, monies and time wasted, and true leadership diminished. Commit to use your budget as your ally.

How Do I Know When To Buy or Sell A Home?

How does one really know when to buy or sell real estate? There are many factors involved, and without a crystal ball, you can't be 100% certain! Every day, the media publicizes a lot of confusing information, and it is very difficult for the average person to know what it really means.
We all know that during all of 2009 through 2011, and most of 2008, in most areas of the country, housing prices fell, in most areas by more than 20% since the height of the market.Since that time, prices have gradually moved upward (in most areas), and today, homes are generally valued at, near or above the pre- 2008 levels. However, many people tend to forget that the real estate market has experienced these down cycles before, albeit usually not as severely. What is unique about this "cycle"is that the dramatic drop in prices has been accompanied by record low mortgage rates! While one would logically think that would create a buyers market, the combination of high joblessness and under-employment, combined with the lower stock prices, and extraordinarily tight credit market (making mortgage loans much more difficult to get), has caused buyers market pricing conditions but neutral market market conditions. The number of buyers has been inconsistent - especially the number of qualified buyers. Buyers realize that they do not have to act with the urgency that they did when the market was higher because there are very few bidding wars out there. It took sellers quite a while to realize, or at least accept the fact that they were not going to be able to sell their houses at the pricing when the market peaked, and thus many homes either did not sell, or sold only after numerous price adjustment (PC way of saying "price drops"), and the number of days a listed home remained on the market increased dramatically.

Qualified buyers - - those with good credit (credit scores of 700+), at least 20% to put down, and sufficient demonstrable income - - got some "great deals." Lending institutions received billions to "bail" them out, but very little of this money went to loosening credit. Most of that money simply made the banks more profitable. The typical American's credit score was "arbitrarily" lowered because of how it is calculated, and the impact that most credit card companies lower the vast majority of individuals credit limits. This caused the credit ratios to change, and thus credit scores to be lowered. This, in turn, tightened the mortgage market even further, because individuals with seemingly good credit, saw their credit scores lowered because of bank policy that had nothing to do with them specifically. This "circle of circumstances" was that this policy created even fewer qualified buyers, thus causing additional havoc in the housing market.

The fear of the recession and the joblessness rate created many potential buyers to shy away from house hunting. The Federal first-time housing credit, combined with the extension and enhancement of the program to cover many that have held homes for more than five years, helped bring out some additional buyers. Since this program expired in mid-2010, there was, temporarily, an added incentive to buy a home. The indication that the recession has or is close to coming to an end, has created somewhat of an increase in consumer confidence, as has the general feeling that the joblessness rate has neared its top, and has come down since 2011, will hopefully increase home buying in the near future, as it has in the past couple of years. Although mortgage rates have crept up slightly from the historic lows, they are still significantly lower than historically, and most people realize that, in the future, they probably will rise gradually from these lower levels (as the overall world economy improves) The government continues to indicate that it will exert pressure on lending institutions to make consumer loans, including mortgages, more readily available, which should also be a plus.
Therefore, with  low mortgage rates, lower - than - peak home prices, and a slight easing of the mortgage loan availability, there has been a trend for qualified home buyers to take advantage of a great circumstance, for the last few years. The process began with a high degree of refinancing, and now serves as an impetus for serious buyers to act sooner rather than later. The real estate market, however, has been inconsistent during this opportunity period, while some still  appear to be in a "wait and see" type mode. Obviously, as the economy increases, and mortgage rates rise, and markets stabilize, the cost of home ownership will increase. A serious home buyer should take advantage of these conditions, before we return to less favorable buying conditions. Remember that the real estate market is cyclical, and there may not be a better time to buy a house for many years than there is today!

Have You Committed To A Personal Financial Plan?

How many times have you heard the adage that most people don't plan to fail, but that they often fail to plan? Few individuals purposely or at least consciously decide to avoid planning for their financial planning, but at the same time, many people never formally create their own financial plan, and even fewer actually commit to following that plan. Everyone has certain financial needs, and these include: planning for retirement; creating a funding source for a child's education; having a reserve for emergencies and/ or contingencies; having an opportunities fund; buying a first home (or a new, upgraded one, or vacation home), etc. While we all have different priorities and needs, goals, and aspirations, those that formally plan and then commit to their personal financial plan generally live a far less stressful and worried existence.

1. Retirement: Those who believe that Social Security will provide their major source of retirement funds are often devastated when they retire. While this program provides a safety net, with what goes on politically, no one can be absolutely certain in what form this might exist in the future, nor even when the official retirement age might be. Therefore, wise individuals plan by focusing on what they will need when they do retire, at least in present day dollars. Then they adjust that figure by an average inflation rate, and then determine what they need for their retirement needs. The best way to do this, for most individuals, is to, on regular and consistent basis, put away a regular dollar amount. Doing this, for example, on the same day each month, creates a habit of saving, is more easily achieved, and creates what is referred to as a dollar cost averaging (putting away the same amount on the same date every month, so that fluctuations become far less of a factor). Reliable mutual funds which diversify are generally a relatively easy way to do so. It is recommended that you speak to a professional financial planner or adviser or attorney who specializes in this area.

2. Children's Education: Do you really want to put your child into an enormous amount of debt before he even begins his work career? Many students discover that they are $100,000 or more in debt when they get out of school. Doesn't it make sense to begin planning for this need when a child is very young, so that a systematic, periodic investment plan can significantly reduce this burden?

3. Emergencies, Contingencies, and Opportunities: Don't let something unexpected put you in a real bind! Rather, create your own emergencies and contingencies fund. Have you ever wished you had the resources to take advantage of a great opportunity, but had to pass on it because you didn't have the funds to do so? The solution is planning in an organized manner?

 4. Home purchasing/ Real estate: An essential component and consideration for most individuals, because decisions must be made regarding housing, and also for investment purposes. To achieve this, most will need a mortgage, and to accomplish this, it is important to maintain the highest quality credit rating, controlling other debt, and saving for the needed down - payment.

Like most aspects of our lives, those who plan meaningfully and act strategically end up with the best results. Would you rather plan to succeed and achieve your financial needs and goals, or would you prefer to merely fail to plan and let the chips fall where they may?

Why Buying And Selling A Home Is Often Confused?

Several decades ago, the home buying and selling procedures seemed far less complicated. Nearly everyone bought and so homes through Realtors, who generally all charged the same six percent commission. There was predominantly one type of mortgage (fixed rate), most people put at least twenty percent down, and almost all mortgages charged the same rate (for many years, in many parts of the country, this was 8 1/2%). Houses, in most cases increased in value based on the inflation rate, and whatever improvements were made to the house, as well as its condition and location. Houses were sold with "For Sale" signs, and newspaper ads, as well as through "Open Houses." It seemed like, in most parts of the country, almost all agents were Seller's Agents (meaning they represented the seller in the transaction), even if they were selling the house to their customer. Obviously, houses were far less expensive, but average incomes were also substantially lower in most cases. Home ownership certainly appeared to be part of the "American Dream.

Today the procedure is far different. Houses are predominantly promoted via the internet, with Realtors involved in most sales, but with a far larger number of "For Sale By Owner" (FSBO) transactions taking place. While there are still Open Houses, in many areas even those are by appointment only, because of the increased concern with security in today's world. Before the mortgage fiasco that occurred a few years ago, there were many different types of mortgages, including fixed rate, and a variety of variable rate loans. Until the mortgage and banking crisis, there was far too much leniency in deciding who to give loans to, and it was not at all uncommon for someone to get a little down payment, or nothing down mortgage. Many home appraisers were appraising homes for far more than they ended up being worth. Which, obviously, when the economy suffered, and the real estate market reacted dramatically negatively, caused many homes to have mortgages larger than their values. This ended up with cash crunches, which led to many people losing their homes to foreclosures or short sales (selling a house for less than the amount remaining on the market). This then led to banks trying to eventually resell many of these properties, which then further exacerbated the drop in prices in those areas.

Since the banking crisis, and the government bailout, it has become far more challenging to get a mortgage. Banks have dramatically reviewed their home appraisal systems, which has led to individuals only qualifying for far less mortgage monies. In addition, banks began nearly arbitrarily reducing credit card credit lines, which because of the way credit scores are calculated, lowered many individuals credit scores, through no action of their own. Then, of course, banks began requiring higher and higher credit scores to qualify for a mortgage, so it is obvious how that further complicated manners.

In addition, many sellers still expected to receive the same price people received at the height of the market, while at the same time, many buyers had somewhat unrealistic expectations as to how low they could buy a house for.

My advice is that the first thing is that both buyers and sellers must become more realistic, so that they can come to some fair meeting of the minds. Next, banks should be far more careful than they were, but far more reasonable than they are now. America needs a robust housing market, because the worst possible scenario would be if large numbers of Americans begin to feel that home ownership is no longer part of their version of the American dream.