It's How We Interpret (& Gather) Economic Data!

Economic data and financial news might be the most analyzed and, at the same time, the least truly understood information in the news today. For example, is the fact that China's economy continues to grow good or bad news, and why? One analyst might report that China's continued growth is indicative that there is still growing worldwide demand, which should be good for the world's economies. At the same time, other analysts will see this growth as occurring as a result of the Chinese government pumping large infusions of monies into their economy, and at the same time, artificially keeping the value of the Chinese currency "cheaper" than it would be if it were permitted to be freely traded on world markets. Still another economic analyst states that this growth is causing runaway inflation and an overheated economy, that the analyst then refers to as "The flip side of the American economic problems." How was the data gathered, where was the sample made (and how collected, as well as size of the sample), etc? How do economic analysts base their supposed expectations, and if, we so often see a company (or the economy, jobs rate, etc) exceed or not meet expectations, then isn't there a possibility that there may be some issue with how the expectations were gathered in the first place? 
Since mortgage rates, borrowing rates (including credit cards for consumers and borrowing rates businesses pay, including the prime rate) impact many of us, isn't it a shame that so few of us actually understand how numbers are gathered, what they mean, and whether they are manipulated, etc (because of the lack of transparency or clarity).
The economic analysts breathtakingly await the various weekly "reports," including the jobs reports (which should actually be referred to as the 1) Those submitting new preliminary unemployment applications; and 2) The official unemployment rate. Then, they argue about the numbers, which are invariably either better or worse than "expectations." Whose expectations, and why do we continue to refer to them if the actual numbers are almost either better or worse than anticipated? The official unemployment or joblessness rate is another curious number because it only includes those that are still actively searching for employment- that is, are presently collecting unemployment benefits. Therefore, this does not refer our count the under-employed, the consultants whose income have dwindled, commissioned salespersons incomes, or small business owners (who are ineligible for unemployment benefits). Many believe that the approximately 5.5% official rate becomes closer to 10%, when these situations are also included.
The inflation rate, or the manner in which the Cost of Living rate are calculated is another controversial situation. When gas at the fuel pump, and home heating oil have risen dramatically, and airfares are significantly higher, and tolls and train fares have jumped, and food per ounce is significantly more money, am I the only one that wondered how the official inflation rate is stated as being very, very low. Terms like seasonally adjusted, commonly used, essentials, non essentials, etc., further confuse the issue. Suffice it to say that I doubt there are too many people who believe that inflation number. Of course, for we conspiracy theorists, we might find it curious that the same government who has a vested interested in keeping the official numbers low (political, Social Security Indexing, government union contracts, etc), are also the ones that calculate this index.
One month we show improvement in housing starts or housing sold. Another month a drop. However, is this an increase or drop from what levels, and how long does a homeowner have to wait to have his home sold today versus a few years ago, and at what price point. And, does it make sense to talk about housing prices, etc. on a national basis, where, so often, it is not even regional, but even more localized and specific?
The point of this discussion is simply that we should all be cautious and beware when we see these financial and economic indexes and numbers. While they no doubt, may have some limited value, I question whether that value makes up for all the 'spin," confusion, and misinformation that we receive whenever any of this data is released.

Is It The Message, The Messenger, or How It's Communicated?

Have you ever wondered why some speeches or speakers are so much better received than others, even when the message often appears or seems to be so very similar? Why is it that the same context, content and ideas may be covered, yet the audience receives certain speeches so much better and more warmly than they do others? After giving many hundreds, if not over a thousand presentations, training sessions, etc., over the last three decades, as well as having attended and participated in innumerable others, I have pondered and wondered what the determining consideration generally is. Is the main factor the speaker, the subject matter, or how it is communicated that makes the big difference, or some combination of all of these? This is also relevant to interpersonal (or one - on - one) communication, such as in the relationship between clients and either their real estate or financial professional.

1) The message: Although the subject matter might be the same or very similar, is your message getting through the way you would like it to? How clearly are you making your main point, and is your emphasis in line with the group's heritage, needs, priorities and perspectives? What precisely is the message your audience is going to be walking away with? Have you effectively delivered your message so that your call to action will be the take - away? Can you deliver a jingle - type, simple and easy to understand message that others will both understand, take to heart and truly care about? What might others be doing either more effectively or I with more impact, that you might learn from, while still maintaining and preserving your individuality and integrity? How might doing this strengthen your message?

2) The messenger: Sometimes your message fails to take hold because of something to do with your style, delivery, or how others perceive you? Are you considered an individual of absolute integrity, or is there some aspect of your personality, persona, or delivery than either turns others off, or at least doesn't make them like either you or your message? Have you reviewed your body language, posture, eye contact, or speech nuances, and compared these with speakers who appear to be far better liked or accepted?

3) How it's communicated? Are you getting your point across the way you want to? Are you using too much, or too little humor or anecdotes? Are you connecting sufficiently with your audience, and getting them involved and participating actively? What will be their take away from the presentation? Are they grasping your point or main message? What might you do differently or better?
Only when one considers the message they are conveying, how you appear or seem to others, and the actual presentation/ communication itself, will you get the optimal results and responses. If you want to give the best speech you can and truly connect, view yourself objectively, as others might.

In every situation, different parties interpret both verbal/ oral, as well as written communication from a different perspective. When selecting the right person to serve your needs, pay attention to all the details, not just the fancy rhetoric or catch - phrases!

Why Actions Plans are Needed and Important?

We often hear individuals talk about the importance of creating and utilizing an action plan, yet few individuals who are leaders of organizations ever fully take advantage of the usefulness of action plans. Action plans not only provide guidelines and guidance, but create a methodology to accomplish ones objectives. Whether one's concern is personal achievement or self - help, improving a group, business, etc, or serving the best needs of one's clients (e.g. Real Estate Professionals and Financial Advisers), the best approach and often the proverbial missing link, is creating, developing and implementing a quality, relevant action plan.
 
The first thing one must do is create an objective or goal of a particular project or goal. This objective should be broken into long-term, intermediate-term and short-term needs. Once an objective has been decided upon, that objective must be examined to assure that it is in line with an organization's (or individual's) mission. If an organization's mission is in contradiction with a particular project's objective, leadership must examine if this contradiction is acceptable, if it makes it unworkable, or if either the mission or the objective needs updating or adjustment. Leaders must fully examine all ramifications of taking such an action, however, before they decide on any such action.
Once this procedure has been accomplished, it must be determined what the priorities of this plan are. There must be long-term, intermediate-term, and short-term objectives and/or goals, and the plan must be a workable program to accomplish the objectives.

This means that an action plan must list each action that needs to be taken, in a time order. It must also include alternative actions that might be used if a plan needs some "tweaking." Each of these actions must be broken up into sub-categories, and the intermediate steps must be listed, and a timetable placed for each one. The responsible individual for each part of the plan must be noted, as well as a "Need by date." In addition, there must be a strategy for thorough follow-up and examination of the action plan on an ongoing basis, as well as a mechanism for making needed adjustments.

Part of the action plan is also a cost evaluation. These costs include not only the actual expense in terms of both monies and possible lost revenues, as well as the costs in terms of personnel costs and time. Possible costs also include potential ramifications from existing members, who may not favor the changes being proposed.

One must always remember that an action plan has little value if it is either undeveloped, not fully developed, or does not move from the exercise stage to the implementation and action stage. Since many leaders prefer using rhetoric to actually taking action, an effective action plan will only work if leaders are properly trained in all aspects of use.

This discussion is only a beginning in terms of the realities of an action plan. However, my three decades of experience have clearly demonstrated that effective organizations always take advantage of creating and using action plans.

Understanding Human Nature - The Key to Effective Communication

How often have you personally wondered, or overheard someone else pondering the key components of successful, effective and meaningful communication? While perfecting communication skills undoubtedly encompasses numerous aspects and acquired traits/ knowledge, unless it begins with a clearcut focus on enhancing one's abilities and skills in terms of understanding human nature, there can be no way to effectively communicate. One of the most famous and successful life insurance salespersons of all times, Ben Feldman, insisted that success in any type of interpersonal sales required only about one percent technical knowledge, while requiring ninety nine percent understanding human nature. How can anyone effectively communicate his message if he lacks the ability to appreciate and understand the perspective, needs, nuances and preferences of others? The reality is that best salespersons, leaders, managers, etc., invariably are those that realize that the probability of getting one's message across necessitates effectively communicating, and that requires proactively seeking out learning as much as possible about human nature. This is particularly relevant in one's selection/ choice of either their real estate professional, or their financial adviser. Select an individual who focuses on you, your needs, perspectives, and feelings, and takes the time to clearly and thoroughly communicate with you, and patiently explains whatever is most important to you! This person should spend far more time listening to you, than merely talking!

1. What does understanding human nature actually mean? In the vast majority of situations, it requires proactive, rather than passive behavior, because one must use many of his senses, including his sight, hearing, etc., and pay attention to how others behave and act, and why. For example, the most successful salesperson is generally the one that finds his potential buyer's "hot button" and focuses on how the service and/ or product will improve something for the buyer. Understanding human nature means that the discussion must encompass needs, and unless one is willing and able to understand the various nuances, preferences, and even quirks, his ability to effectively communicate is limited and even diminished.

2. It is important to understand that others are generally far more interested, and therefore potentially motivated to action, when the discussion is about them, and their needs. Great communicators invariably discuss issues and ideas in terms of how they impact and serve others, and not merely in terms of services offered. Most people need to know how something impacts and effects them, and why, rather than merely being told about services provided. In order to do so, the priority must be placed on getting a better idea and understanding of human nature.

Great communicators invariably are those that prioritize participatory discussions, because once you get others to participate, you learn far more about them. A two way discussion is true communication, while merely making a statement without participation is talking at, rather than the necessary speaking to, one's potential audience.

The Basics, and Importance, of Giving a Quality Public Speech

How many times have you heard someone give a great presentation in front of a group, and thought that you'd love to be able to speak like the presenter? Or that the speaker had "natural abilities?" Have you also attended presentations when you felt that the speaker was awful, boring, uninspiring or boring? How does one's presenting ability impact how others perceive him? What are the factors that make a public speech good?

(1) The first "must" of a good speech is preparation. The speaker must obviously know his topic well, but must also know the group that he is presenting it do. The best presentations involve a combination of humor, entertainment, participation, visual aids (without being overly dependent), and worthwhile content. Many individuals, such as real estate and financial professionals, give public speeches and/ or presentations, as part of their self - marketing, but unless they address how they do so, may be harming themselves as much as, or more than they help their cases!

(2) A speaker must involve the group from the onset. One of the major errors many speaker make is that they tell the audience "to sit back, relax and enjoy the presentation." When audiences sit back and enjoy, they generally are not participating. A presenter must involve and challenge his audience.

(3) Effective presenters do not read their speeches. While it is alright to have notes, PowerPoint slides (or similar approaches, such as website - links, etc), and even some key ideas, there is no surer way to "lose" one's audience than to merely read to the attendees.

(4) Practice is essential. While a presentation should not appear stoic, stilted, or memorized, when speeches are disorganized, or someone loses his place, the cause is generally lost.

(5) Have an agenda or program and stick to it. Let the audience know at the beginning the topics you plan to discuss, and encourage them to take notes, and to get involved. Any good program reserves sufficient time to answer questions, or clear up confusion.

(6) Do not over-estimate or under-estimate your audience. A good way to avoid that is to say something like, "As many of you know." Always make your points clearly.

(7) Do not believe that stating something once is sufficient. Many statistics have indicated that there something known as the "3 to 7 Rule," which means that in any one presentation you must state something at least three times (preferably in different ways to keep it interesting), and if the presentation is part of a series and the subsequent parts are given within a short period, then you must make the same points again (at least for a total of 7 times). Statistics also indicate that if the next installment of the series is more than 10 days after the first, that the total number of repetitions must be increased.

(8) Involve the audience. Do role playing, proactive exercises, and a speaker must be willing and able to "get right up into an audience member's face."

(9) There must be a beginning, middle and an end. It is best to take brief breaks after sixty to ninety minutes, because most people learn and remember, and pay attention better in shorter intervals.

(10) Never let a particular audience member dominate the program. Often, certain audience members speak to be heard, rather than for learning purposes. A presenter must be able to maintain control at all times.

These ten steps are merely the basics of becoming a proficient presenter and public speaker. It takes confidence, practice and preparation. Speakers should always have as their ultimate goal that every attendee leaves his meeting feeling he spent his time in a valuable and worthwhile manner.

Price May Make A Sale, But Service Creates Customers and Clients

Having done an extensive amount of sales training, both with sales representatives, as well as sales managers, over more than the last thirty years, I have invariably been asked about the delicate balance between price and sales, especially as it relates to profitability and customer creation. One of the biggest errors I have witnessed is when sales people believe they can buy a customer's loyalty, by immediately offering the lowest possible pricing. However, the reality is that while one may make a sale by low-balling a price, it is rarely in the long term interest of the company to make that the stand operating procedure. One situation where this is often prevalent is in real estate, where some homeowners are overly flattered by an artificially high suggested listing price, rather than one which might get the best results. Remember that listing and selling price are often widely differing things! Another real estate - related situation occurs related to the commission that one real estate professional might ask for, as opposed to another. Isn't it more important how well a home sells, than the commission paid? If one of the essential skills of the professional is negotiating effectively, if he cannot explain and justify his commission, how can he negotiate the best price and terms for his client?
 
1. The most important need for effective sales and marketing is effective listening. Obviously, everyone wants to get value, especially in these economic times. However, the danger in concentrating most of one's marketing efforts on price, is that any other competitor can always match or beat your price, and you have done nothing to gain that individual's loyalty. For example, there are hundreds of places that wireless phones are sold near where I live, as I am sure is true nearly everywhere. Some of these places are exclusively devoted to wireless service, while others sell this alongside other products and services. Curiously, I have observed that many of these stores open, and within a short period of time, close up. I've noticed that the ones that close, for the most part, are those that attempt to entice customers by price and empty promises. On the other hand, in my neighborhood, one of the most successful of these stores, while always remaining competitive price- wise, excels in its customer service. They pay particular attention to helping even after the sale, helping with any setup that may be needed, and with any warranty or replacement phone issues. They do not nickel and dime their customers with excessive extra charges for items such as chargers, ear pieces, cases, etc. They bend over backward, not only to get the customer once, but to keep customers for the long haul. This relates to any industry, whether it is a product or service being sold!
 
2. Many local businesses have had to face the reality that the large "big box" stores are often difficult to compete with simply on price. Small businesses also, obviously, have nowhere near the same marketing/ advertising budgets as these large chains. This has created a situation where some local merchants have had to close, because of loss of revenue/ business. On the other and, other local merchants have flourished. What have these merchants that have been successful done that the others did not? In many cases, it was listening to what their customers were saying and what they wanted, as well as providing personalized service. In other words, the successful stores did not rely on price as their major weapon, but rather sought ways to create a niche for themselves that made them invaluable to their customers/ clients.

Effective sales and marketing technique requires the ability to think outside the box, and be a solution based, personalized enterprise. This is more true today than ever.

How Well Do You Manage TIME?

When one examines what often differentiates the most successful individuals from most of the others, we often observe that one of the key factors is how well they manage their TIME. Even the most intelligent, most experienced individuals with the greatest expertise, often fail to achieve to their potential when they don't manage this essential component to its maximum degree. Lee Iacocca stated, "The ability to concentrate and to use your time well is everything." While it may not truly be everything (because that assumes it is the only factor), it is certainly no doubt something that makes a key and major ingredient. Examining this from a mnemonic perspective perhaps helps us to best focus on what is needed.

Many independent contractors in client and/ or customer - related service industries/ businesses, undergo much unnecessary and negative - type stress, because they fail to effectively manage time. In stressful scenarios and situations (such as during the transaction stage of real estate buying or selling), those who best manage how they use their time, make the process easier, less stressful, and far less tiresome, than those who cannot or will not.
 
1. Time management begins with a willingness and ability to train yourself. This is a far different scenario than merely taking training programs, classes, seminars, or even actual learning. It is, rather, the combination of gathering the needed facts, data, and information, and then synergistically using this information in a manner that best suits your personality, learning type and habits, desires, motivations, visions, goals, etc. This training is the ultimate form of personal development and self - discipline, because it is what will direct one to achieve to his maximum potential.

2. Far too often, individuals examine situations, and observe numerous areas that they realize need to be addressed, or need to be improved upon. However, those that merely follow a multi - faceted approach, rather than creating priorities, often get bogged down in minutia. Therefore, it is important for each of us to install personal controls, that help us to focus, prioritize, and organize as well as we can do.

3. A large percentage of individuals never even begin, but many others also merely begin but never proceed to a course of action that is essential. In order to best address how we might utilize our time, we each must maintain the course, so your plan has the opportunity to succeed. This does not mean merely never giving up, but rather developing a way to evaluate your progress, what needs tweaking, and the most efficient and effective way to proceed.

4. Perhaps the most overlooked aspect of this necessary task is how we actually examine and proceed with our goals, etc. Therefore, how we establish our short - term, intermediate and longer term plans and goals, will often determine our ability to succeed. Doing this creates a mindset for being organized, and unless one becomes efficient, focused and creative, how can he possibly best manage his time?

One can never consider how he handles his time, without examining priorities, goals, and especially personal discipline. Those who create a form of personal daily agenda, and utilize timelines and other measures/ metrics, are best able to use their time effectively, Remember the adage that both the most successful and the least successful individual both have the same 24 hours in their day, but the more successful use that time more effectively and impactfully!

Is Inflation A Good or Bad Thing, & Other Lies, Distortions and Half - Truths?

Economics, economic theories, and political realities often cross paths, and make many people wonder what's going on. We have offered heard about the dangers of inflation, the dangers of recession, and other similar terminology, yet most of us will hear the media, and especially the business media, one day warn of the risk of inflation, and another day cite the lower than anticipated inflation rate as something to be concerned about. There are even different sets of indexes, one that includes core items (whatever that really means) and another that measures the inflation rate including energy costs.

The only thing that most American consumers concern themselves about from day to day, is how these costs impact them. Is their cost of living going up, staying the same, or going down. I have not met anyone recently that has told me that he feels that things are costing him less. At the supermarket, manufacturers continuing their clever "game" of effectively raising prices by keeping prices the same but reducing the package size. Shouldn't pricing be considered for these cost of living indexes the way the unit pricing is required by a lot of states, that is, by showing the cost per ounce, or per serving? Most of us have observed increased costs in milk, eggs, most meats, fowl, fish, cans of soda, bottles of soda, etc. Yet, we are being told that there is no or little inflation.

Gas prices are constantly fluctuating, and while relatively lower nor, few appear confident that the pattern will not be that prices go up (over time). About the only thing that has not kept pace with these increases is average wages. Many workers are being paid for fewer hours, while others have been laid off. The unemployment rate statistically is about 5.5%, but realistically is more about 10%. While this is the best it's been for several years, few seem to believe that the economy is something to feel optimistic about! Many Americans are either under-employed or unemployed, and this has been going on for so long, that, for many, unemployment benefits are expiring. If these people's benefits run out, the statistics will show a lower unemployment rate, because the official statistics does not count people not collecting benefits. It also does not count individuals who owned small businesses, that had to go out of business, because owners of these types of businesses are generally not eligible for unemployment. One measurement that there has recently been focus upon, is the real wage index, which is how wages compare to other economic conditions (this is, in many ways, probably more significant, to most people's lives).

The bottom line is that statistics are misleading. There is an old saying that the difference between a recession and a depression is, that it's a recession when it happens to someone else, and a depression when it happens to you. It is time for the American public to demand that our government officials stop partisan politics, and realistically address the economy and the joblessness issues, making those the overwhelming top priorities.

How To Effectively Treat and Use Email?

Far more communication today is done electronically or digitally than any other way. In fact, while the average email is responded to within approximately twenty four hours, the typical text is responded to in minutes. Some have even postulated that this has made email today's "snail mail."
While people answer texts far sooner than emails, much more detailed information is often transmitted via email. Therefore, what is an acceptable time period to respond to email? The answer to that often relates to circumstances, and such factors as whether someone carries a BlackBerry or iPhone type of device (or other Smartphone), or if someone is in an office with computer access. However, as someone who has consulted to individuals, businesses and organizations on Customer or Member Services for over three decades, the answer from a company or management's perspective should be almost immediate. If someone carries a Smart Phone with email capabilities, the receiver of an email should respond almost immediately, either with an answer, or when an answer will be forthcoming. In certain industries, such as real estate, it has been found that there is a direct correlation between sales and listings, and response time to emails, because the consumer realizes that there is competition, and will "shop" elsewhere. Real estate professionals must realize that in today's NOW society, there is a compelling need to answer any email from a real or prospective customer or client, with sincerity, immediately, urgently, and in a way that satisfies the sender of the email. In many cases, these individuals pay particular attention to who responds quickly and professionally, indicating once again, that one never gets a second chance to make a quality, desirable first impression.

Similarly, in an organization, if a member emails the headquarters office, or any of the Officers or Board Members, that member is entitled for a prompt response. The easiest way to demotivate a member, and to create member resentment is to ignore a request, no matter how minor. Those in leadership positions should emphasize responsiveness as a major tenet of operational responsibility and responsiveness.

The odd thing is that often the same individuals who complain about how someone else takes so long to respond, are just as bad themselves. Of course, not every email requires or needs a detailed response, yet there should be some response to the sender indicating response of the email and the action that will be taken. This can be short and to the point, yet it indicates a caring and responsiveness, thus making the sender feel that his interests and concerns are being, or will be addressed in the near future.

As someone who has been involved in both Leadership and Sales Training for over three decades, as well as sales and marketing in a variety of fields, including both product, as well as service - oriented industries, I have always emphasized responsiveness. The real estate agent that is perceived as being response symbolically shoots himself in the leg!  It is rude and wrong to not return telephone calls, or give someone a complete answer. It is equally wrong and ill advised to not respond immediately to emails, even if it means just sending an email immediately saying it will be looked into, and you will get back to the person. This should be and is common sense, but as we know, common sense is rarely common.

How To Select A Consultant, Agent or Representative?

Many individuals represent themselves as qualified consultants. These people often represent themselves as experts in specific fields of endeavor, with special skills, knowledge and expertise that makes paying their sometimes exorbitant fee justifiable, and even a necessity. Many so called experts are simply trying to set some product, service or program that often benefits the consultant to a greater degree than the organization. In some fields, one hires a consultant for any of a number of reasons or needs. In fields such as real estate and financial planning, each client has his own set of particular needs and/ or requirements, and therefore should carefully select the right agent/ represent, to optimally serve his own needs.

If one is searching for a consultant, I would strongly advise staying away from any consultant who insists on using a one size fits all approach. A good consultant is an effective listener, who thoroughly listens before making any recommendations or proposals. I have witnessed far too many so called consultants who made self serving recommendations that ultimately are harmful to their clients. In my three decades plus of consulting, I have worked hard to develop a reputation for always placing my clients first. I steadfastly object to those that soil the reputations of all consultants by acting in unscrupulous manners, and hurting the image of the many honorable and reputable consultants.

When considering retaining a consultant, it is essential to get recommendations from others. However, like so many other times, the individuals given for recommendations are either friends or others that are certain to only give glowing recommendations. Consultants should dedicate themselves to their clients, and serve the need of their clients. When deciding upon a real estate agent or financial planner, opt for one that you thoroughly interview, and trust your gut!
 
It is the responsibility of a consultant to listen thoroughly before making any proposal. Each organization has a different ethic and culture, different needs, different financial considerations, different demographics, and different membership and leaders. Professional consultants have learned to always collect their fee up front, because otherwise it may be difficult to give an unbiased and honest opinion. After observing and listening thoroughly, a consultant must help the organization to create a risk/ reward chart, and be certain that the leadership of the organization fully understand and appreciates the complete ramifications of all actions. Consultants must also be able to explain that doing nothing is in and of itself, taking an action. In one's personal life, select a consultant that avoids generalities, but rather than clearly articulates a strategy and plan for your needs, and is ready, willing and able, to answer your questions patiently, and address your personal concerns. I believe that a good consultant needs to explain to an organization's leadership, or to any individual client, that taking no action very often has far more dire and adverse results that even taking the wrong action. Far too many organizations do many things less than optimally. They often budget incorrectly, do not see the big picture, spends too much on certain items and too little on others, and almost universally, spends an inadequate period of time effectively training its leaders.
Many organizations can benefit from using the services of a consultant, but it must be the right consultant. Choose wisely.

Things You Need To Know About Mortgages and Refinancing

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. However, there are still several mortgage programs available that require a far lower downpayment.

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. Up to slightly over $600,000 is allowable for a conventional mortgage, while over that amount, one must obtain a Jumbo mortgage. Requirements for each are somewhat different!

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 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. With today's relatively low mortgage interest rates, one would think that most people would be better served by a fixed, rather than a variable mortgage.

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!

Similarly, those who have obtained mortgages previously at higher than present rates, may consider refinancing, so as to pay at a considerably lower rate (and thus a lower monthly payment). However, it is important for these people to recognize and understand, that when you refinance, you will have imposed additional fees and expenses, and that, in most cases, the term of your mortgage may be extended. For example, let's assume someone originally had a 30 - year mortgage that he took out eight years ago, therefore having 22 years remaining. In many cases, when he refinances, he creates a new 30 year term.Your home needs to be reassessed, your previous mortgage paid off (with corresponding taxes and fees imposed in many states), you must pay for other paperwork, requirements, etc.

Since for most people, their home is either their single largest or one of their biggest assets, doesn't it make sense to be better informed when it comes to how mortgages impact you?

5 Components of Marketing Youself Effectively

Most would agree that marketing is perhaps the most, if not one of the most essential ingredients for success in nearly every field of endeavor. Why do you think that the largest and most successful corporations spend so much time, effort and resources on marketing themselves, and attempting to create a specific and unique brand, that creates an attractive niche and compelling story? Since all of us, regardless of what we do, are involved in some sort of selling, it is important to understand what is needed to successfully market ourselves. Whether someone is a doctor, lawyer, salesperson, teacher, or stay - at - home mom, success requires selling every day. We either sell a product, a service, or ourselves, but we do sell! Since the advent and increased popularity of the internet, however, many people have abandoned the previous fundamentals of marketing, and begun to rely exclusively on the Web. However, success means using a broad - based, multi - media campaign, where we maintain a common focus throughout, in order to distinguish ourselves, thus creating a niche that develops our personal, quality, respected brand. While there are many possible components, those who seek to effectively market themselves should both understand and utilize these five components listed below. Why should individuals (e.g. consumers, customers and clients) care about marketing, and how does quality marketing impact others? For example, real estate and financial clients are often directly impacted by the marketing efforts of their agents!

1. Don't abandon direct mail and snail mail. There are still many individuals who prefer being contacted that way, and effective mailing pieces that enhance our brand, are key. However, cost containment requires doing this wisely, so make sure that you study the best and most effective way to use this, including your mailing list, types of piece, etc.

2. Use email and texts judicially and wisely. Under - utilization will have no impact, and overuse will strike many as a form of spam. Make sure that you use these forms when appropriate, but don't become overly reliant on them.

3. While a strong Social Media presence is wise and needed, don't fall into the trap of assuming that because you posted something here, there is widespread communication going on. The most effective usage is generally having links to compelling information, so that others will be interested. Don't either over or under - post, and remember that you must use these in coordination with the overall brand you wish to create and develop.

4. What is the feeling someone gets when they look at your Website? How easy is it to locate, and what does it say about you? Does it enhance your brand? Does the message being sent say what you are trying to communicate? Have you looked into SEO (Search Engine Optimization)?

5. Far too many individuals today build artificial walls by relying too heavily on these methods, while ignoring or nearly ignoring the all - essential methods of professionally using the telephone, and getting out and being face - to - face, with your potential constituents, stakeholders or desired audience. Therefore, it is very important to become professional in these methodologies.

6. Realtors must market their client's homes in a way that maximizes impact, rather than merely in some haphazard manner! The focus must be on creating an atmosphere that optimizes the possibility of obtaining the best possible price, in the shortest period of time, with a minimum of hassle!
 
Don't use one of these components, while overlooking others. Those that want to market themselves to their fullest potential, and thus get the best results, need to use the discipline to use all of these.

Is Your Stress Positive or Negative?: How Making It Positive Will Get Best Results

Although so much is discussed about day to day stress, and how it is so often self destructive, isn't it somewhat surprising that it continues to have such an enormous impact over so many individuals? While stress is never completely avoidable, the key is generally how we handle it. Do we control our stress, or do we allow our stress to control us? Our stress can either be used productively, or we can let it be destructive to us. Do we learn lessons and grow because of the stress we experience, or does it simply wear us down in a non - productive manner? Simply stated, the choice each of us make is to either take action and gain from stress, or resort to worry, concern and despair. Many have discovered that finances and issues related to one's personal finances is often, after personal or family issues, the greatest source of inducing stress? Therefore, don't expect not to be stressed, but rather how best to funnel and/ or use it. Two times this happens is regarding one's investments, and their real estate scenarios. These times will always bring some stress, but those who are ready and prepared, and proceed with a positive mindset, generally use those stresses in a strengthening, rather than debilitating way!

1. The Nobel Prize recipient Hans Selye referred to the two options and types of stress as either distress or eustress. He stated that distress is stress that controls us, and results in nothing that happens of a positive manner. On the other hand, eustress is a proactive interaction where one learns important lessons from undergoing some of Liz's stresses, and adapting and improving because of the positive manner that we handle it. Eustress is stress that is used to get stronger, wiser, evolve more, and thus to become better. It also results in forgoing wasting time on worry, and converting it to effectively planning and being proactive and productive.

2. A large percentage of individuals fear stress, and spend much of their time worrying about the what it's, rather than envisioning the how to's. While it is certainly normal to worry, that does not make it any more useful an activity. Merely worrying often creates a sort of paralysis of action and activity, and getting bogged down in concern. Converting and transforming away from worry, and thus focusing on getting something accomplished, or examining alternatives is a far more useful activity. In order to escape initially from this worry, there are many useful exercises. Some of these include stepping back and relaxing, using such techniques and deep breathing, clearing one's mind, and focusing on positive thoughts and activities.

The choice is always up to each of us individually. We either stress out and sap our energy and productivity, or we learn and become better and more capable. The next time you face a stressful circumstance, instead of worrying and getting hung up, try to learn from the circumstances and move on in a useful manner.

How Is Your Judgment?: Is It Your Friend, or Foe?

How do you define judgment, and what factors do you consider most indicative and telling? What have you done to develop your wisdom, ability to analyze and interpret, judge situations, individuals, procedures, techniques and ideas? Do you enjoy being the decision maker, or would you prefer to defer that to others, and simply be a follower? Do you prefer to be a leader, trusting that you are more capable of making the best decisions, or do you doubt your own abilities and judgment? Do you judge situations and understand the possible ramifications and alternatives? Do you prefer to be proactive, or are you merely reactive? Do you plan sufficiently so that you can make decisions based on facts and reasoning, or do you wait, often procrastinating, and putting off making a judgment until you have to? If you are in a situation where a timely, meaningful decision is a priority, are you going to proactively trust your judgment, because you've committed and trained for those moments, or do you tend to over - rely on what others say, or suggest? Think about these 2 situations, financial planning and either buying or selling a home? - Will you have the judgment to hire the right professional for you, or will you merely buy into the hype?

1. Judgment can either be good, bad, or somewhere in between. However, when someone simply waits and procrastinates, that is almost always an indication of far less than stellar judgment. Procrastination is generally an indication of either insecurity or fear. It takes courage, self confidence, and personal motivation to make a decision, but it also requires a commitment to training, learning, self improvement, and the desire to be the best that you can be, to actually show judgment.

2. Judgment does not mean that you must be the most intellectually gifted, although no doubt a certain level of intellect generally enhances one's judgment. However, often those with the highest IQ, and the most schooling and education, do not exhibit the greatest judgment. Great judgment also requires certain tangible, as well as certain intangible qualities. The tangible assets include learning, experience, focus, desire and motivation, as well as commitment. The intangible characteristics come from one's viable vision, and how that translates to actual goals, as well as the motivation to persist and persevere, and the courage to make well thought out decisions, when others often defer. Judgment is a combination of numerous characteristics, disciplines, beliefs, ideals, etc. However, for a judgment to be pure and positive, it also requires absolute integrity.

There has never been a truly productive individual who did not develop a methodology to enhance his abilities and judgment. It all begins with both knowing, as well as liking ones self. Judgment comes from someone being comfortable with his abilities, confident in his beliefs, and willing to openly examine any and all alternatives that might make him better.

The ABCDE of Strategic Planning

Any organization, business or individual, who wishes to maximize his potential, and to plan effectively both for the present and the future, should undergo and prioritize strategic planning. This means considering not only how to react, but planning how to act, not simply going from crisis to crisis, but evaluating in advance, and learning how to prioritize one's actions based on needs and degree of importance and relevance. For those involved in the real estate transaction process, it means being ready and prepared for eventualities and contingencies, and having a seamless plan to proceed forward towards the ultimate goal (For a seller, getting the best possible price, in the shortest time, with the least amount of hassle. For buyers, it means focusing on getting the right house that fits your goals and needs, rather than becoming emotionally involved in an often - somewhat irrational way).  Many organizations claim to do strategic planning, because at one time or another, they created a committee or panel to evaluate needs and strategy. Effective strategic planning is a continuous and ongoing process, and requires both commitment and vision. When I refer to the ABCDE of strategic planning, I am referring to: analysis and assessment; best way and because; caring and then creating; deciding to deliver; and evaluating to achieve excellence.

1. Because we do not live in a static society, sustainability often requires remaining relevant, by evolving on a gradual, ongoing basis. Groups must truly examine their identities and purposes, in order to assess needs currently, and in the near term and longer term future. Individuals must avoid getting overly absorbed in looking at the past!

2. This means that an organization must find the best way or best methods of achieving their goals, and meeting their needs. They must take an honest look at themselves, to understand the because of membership (in other words, why would someone want to belong or be associated with the group). What purpose or direction or combination of items, does the organization serve that is either not served or undeserved elsewhere? Similarly, individuals must be goal and/ or priorities - oriented!

3. Why should someone care about the organization? What does the organization care about; what are its values or ethics? Are these concerns relevant and significant to others? Based on what the group cares about, what does it do, or in other words what programs, visions, goals, and actions has it created? Individuals must rationally consider what they care most deeply about!

4. It is never enough to just have goals, address needs, and to talk about them. Talk may at times be soothing, but until an organization actually makes the conscious decision to deliver on its goals and promises, no one will take the group seriously. Organizations are judged and attract attention, not by the loftiness of its rhetoric, but rather by whether or not it takes steps to deliver on its promises. In the same light, each of us must constantly evaluate and be certain that our goals and dreams are truly personal!

5. Part of the strategic planning process must be to do things better, and never settle for being less than it can be. This means that the process must also be evaluative, in order to come up with an approach that will emphasize excellence and achievement.

In over thirty years of organizational and leadership consulting, I have been involved in developing and implementing over a hundred strategic plans. While strategic planning is important, it must be viewed as far more than just a process, but rather a methodology, on an ongoing basis, of assuring not merely survival, but maximum performance from an organization.

How To Make Sure Your Behavior Is Ethical?

We often hear and read items that refer to either ethics or ethical behavior. In fact, many professions and indeed, many state licenses require mandatory courses in ethics as part of the licensing requirement. While there is certainly a need for ethics and ethical behavior, what does it say about our society that courses are deemed necessary? Does it mean that we believe that there is indeed very little ethical behavior in our society? Shouldn't ethical behavior automatically be a basic tenet of human nature? While most people would agree about the need for ethical behavior, and perhaps even insist that they exhibited the best behavior and commitment to ethics, an objective evaluation often indicates that one's stated intents often conflict with their actual behavior, often inadvertently. Two of the principle reasons for this are: 1) wanting to fit in; and 2) competitive forces such as seeking sales, commissions, etc.

1. In real estate, there is a required ethics course as well as a code of ethics. However, as a Licensed Salesperson in New York State who truly believes ethics should be automatic, I have often observed many licensed individuals whose behavior certainly does not always appear ethical. Attorneys have a code of ethics, yet we have all seen lawyers who don't always act with the utmost ethics. Ethics should be more than a word or a code, and it should not have to apply to behavior in specific circumstances or professions. Ethics must mean people should always act with the utmost integrity, and should basically observe and follow the Golden Rule. Our ethics should be guided by what is the right thing to do, and not by some artificially contrived set of codes.

2. Many individuals exhibit an almost contradictory behavior when it comes to religion and religious observances. Have you ever observed someone who is a regular attendee at religious services and claims to be devout in his observance, yet often seems less than ethically pure in his business and personal behavior? How many mobsters were active in their church, or how many of these devout people cheated on their spouse, or in some business activity. Shouldn't the meaning of being religious be judged by an individual's behavior, and not by mere adherence to traditional observance? While one who wishes to be observant may often be of great moral and ethical fiber, the two often do nor go hand in hand. Ethics and morality must not be like a faucet that gets turned on and off. Like true integrity, either one is ethical all the time, or he is not truly ethical.

3. Beware of anyone in leadership who uses his ethics as an explanation for not taking timely action. One of the most overused expressions is, "I could not in all good conscience," which generally means that the speaker was afraid, unwilling or unable to look at alternatives, etc. Ethics must never be confused with merely following traditions, but rather should be a measure of proper behavior, which provides value and serves the need of others, with respect and understanding.

Like many other things today, I feel that in far too many cases ethics has just become another casualty to our over- reliance on rhetoric and jargon, which often makes it just another set of empty words. The only question that should come to mind when there might be some sort of ethical dilemma is, "Is it the right and moral thing to do, and are my motives pure?"

What's Your Elevator Speech?: Putting Your Best Foot Forward

It is generally believed that the most meaningful single component that determines the potential strength of the American economy is related to the health of small business and small business people. This includes consultants, real estate professionals, accountants and CPA's, physicians and dentists, small law practices, salespersons, commissioned individuals such as stock brokers and insurance agents, etc. These are often highly competitive industries, where there is a need for an individual or small business person to differentiate himself, develop a personal niche, and maintain and develop the ability to effectively and seamlessly communicate why others should utilize his services. In other words, he develops an elevator speech, which in thirty seconds or less, whets the appetite of those around him, motivating them to ask more, and creating a mystique or aura where he sticks out in a positive and productive manner.

Nearly everyone has some sort of personal back - story, and has numerous opportunities to communicate it in a positive, motivating, interesting, casual way! The most successful of us are those who are prepared for every opportunity, create their own, and transform them from mere opportunities to quality interactions! 

1. How do you interest others without appearing to simply trying to sell something? How do you make your message both compelling and interesting, showing a positive message where others not only listen and hear, but pay close attention and retain what the messenger is trying to convey? How is it possible for anyone to have an effective elevator speech unless he maintains a positive mental attitude combined with actual self - confidence? What do you say that differentiates you from the rest of the pack? Do you believe your own words? Are you capable of seamlessly promoting yourself in an impactful and meaningful manner?

2. Why is an elevator speech so important for someone to develop? This thirty second opportunity comes about often, not solely in an elevator, but in brief meetings in the supermarket, at cocktail parties, and in any social or business gathering? What is your brand, and why is your brand one that others should care about? How do you differentiate yourself? One example could relate to, for example, a real estate agent, who might be asked some version of the question relating to why one should use him rather than others. The individual who does not hem or haw, wax philosophical, get hung up on cliches or empty rhetoric, and simply claims he'll do the best job for them, will rarely attract much positive attention. However, on the other hand, the individual who clearly and without hesitation states emphatically that while there are many real estate agents available, and even confidently states that many of them do a decent job, avows confidently that they lack one key ingredient that he possesses. Therefore, each individual must ponder what makes him different, unique and someone others need!

Think about the impact of your elevator speech! Does it motivate others to care more, think more, and understand why you are someone they should seek out and do business with?

Do You Prioritize Your Goals?

Most of us have heard numerous discussions, read a number of articles, and sat through seminars, training sessions and other educational forums that have emphasized the need for, use of, and power of goals and goal setting. In fact, if one was to ask people if they had any goals, nearly everyone would claim that they have many goals and aspirations. However, if we wish to effectively transform our dreams, goals and aspirations to meaningful progress, rather than creating many goals, it would be wise to focus on no more than two to three goals at one time. When we focus on fewer goals, we exponentially potentiate our probability of achieving them. This is not to say that we should limit our dreams and hopes, but rather that there is a need to create and establish priorities, and that those prioritizes should lead us to which goals we need to immediately pay greater attention to. This is particular relevant when it comes to financial planning, and buying or selling one's home. How can anyone select the right investment without an objective? How can anyone sell a home without having a clear - cut plan of where to move to, and why, and a realistic attitude towards price? What sense does it make to take the time to view potential homes, without first considering your needs, including size, rooms, areas, and whether it is affordable and comfortable, and will meet your needs?

1. Many studies have indicated that this is indeed the facts. Those that establish no more than two or three goals have the best chance to actually achieve their goals. Those that claim four to nine goals generally achieve fewer of them than those establishing fewer, and those with ten or more almost always accomplish the fewest. This is a testament to the power of how we focus on things, and the fact that most people attempt to compartmentalize in the way they learn, and do things. When we set fewer goals, it permits us to use our energies in a manner that maximizes our potential and our probability of achievement. There is an adage that the wise man cannot serve many masters, and this applies to how we create and use our goals. The most important thing is to assure that they align with what we most wish to achieve and accomplish!

2. If one claims to have a meaningful goal, then he must place a deadline or timeline to implement them within. Without having a deadline, these are merely aspirations or dreams, or in many cases, even platitudes. Without placing some sort of time limit, it becomes extremely challenging to transform these items into deeds or actions. Unless we become motivated and energized towards getting something actually achieved, we tend to use more rhetoric and take less action. When we focus on fewer issues or items, we become more able to formulate action plans, and do what is needed to implement new and needed ideas and activities.

Don't run around like the proverbial chicken without a head. Rather, focus on fewer priority items, and end up accomplishing far more! Be focused on what you want and needed, and that these goals are4 yours, rather than merely meeting the expectations or value of others!

So Much Focus on Social Media, But Is It Really Social?

Everyone talks about how important the use of Social Media is today. Depending on how comprehensive a definition you wish to use, social media can include sites like Facebook, Flikr, LinkedIn, Twitter, Active Rain, MySpace, YouTube, etc., as well as Blogs, e-mail, personal or business websites, etc. But are these sites really social? Granted you contact many other people. But far too often these sites are used so that an individual can somewhat anonymously "speak" to others, without having to make eye contact. In many cases, social media has actually had the effect of making people less sociable, preferring to use the less personal avenues because they are often more "comfortable."

While I completely believe in using these media and extensively do, I still believe the "old-fashioned" method of "face-to-face" contact, or picking up a phone, are still more effective. Social media is best used to drive a reader's attention to a more detailed blog or website. Those formats drive business or contacts to the writer or creator of the site/ blog. However, the use and effectiveness of a Blog or a website is ONLY as effective as how well that vehicle stirs interest or excitement in the reader. Blogs and websites must meet a reader's expectations, or they will only be looked at once! You must also remember that merely because you post something, it doesn't mean everyone will see it, look at it, or pay attention. How will you drive people to actually seek out, and want to view these posts, etc?

Think about how often you send an e-mail and don't get a response. Or the response doesn't answer the question, or elicits another question. Think of the amount of time and energy that have been wasted, when simply picking up the phone might have quickly resolved the issue. Many people rely on e-mail, for example, rather than the telephone, because they find it easier, more comfortable. Others find it easier to express themselves, especially negatively, in an e-mail rather than in a phone call. However, beware to fall into the trap of avoiding making those calls, having face - to - face contact, etc., and using Social Media to add to or augment, rather than replace other types of communication.

E-mail  (and for this article, also includes, texting, etc) and social media are best used either as an introduction, or a follow-up to other forms of contact, or when the other more personal forms are impossible to achieve. For example, statistics indicate that the "closing ratio" (or percentage of sales to contacts) is far higher with calls than with e-mails. Statistically, face-to-face is most effective, however.

I fear that far too many are becoming too dependent on this non-personal form of communication, and that important messages might be misconstrued. The argument is sometimes made that it is faster and easier to use e-mail than the phone. While it may be easier at the moment, because of the lag-time, the incorrect interpretations, and the back and forth, the reality is that often a phone call accomplishes a task much more effectively and efficiently. While an e-mail might suffice for simple announcements, or less pressing issues, it often is not the best medium for more urgent issues. Think about it!