An Opus: “The most grandiose and memorable composition of a composer’s life and legacy.”

Recently, I had the opportunity to view Douglas Vermeeren's film, The Opus: From Vision, To Plan, To Performance. I found the story line trite and the acting mediocre, but the premise and the promise of the film are so overwhelmingly compelling that one can overlook the film's deficits. We are all engaged, through the living of our lives, in producing a grand Opus. We can choose to perform with passion, grace, and perfection or we may choose instead to pursue our individual Opus with less than stellar results. Tis the season to be thinking about the coming year and how we will preform in both our business and personal relationships. Will we dedicate ourselves to performing the most memorable composition of our lives or settle instead for mediocrity? How will others view our efforts? Will they be impressed with our performance or will they conclude that we fell short of our potential? The choice is ours. Will you make 2009 the year of your Opus?

Malcolm Gladwell’s new book, Outliers, The Story of Success includes a chapter entitled, “ 10,000 Hours” which is dedicated to the development of what is commonly recognized as “expertise”. Mr. Gladwell’s research indicates that the most successful practitioners in sports, music, entrepreneurship, science, etc. share a common experience. They have practiced, practiced, and practiced their art, craft, or science … approximately 10,000 hours. You may have witnessed a young boy or girl who devoted themselves to a sport or music and could be found practicing at all hours. By the time they’ve reached young adulthood, those who are fortunate, talented, and motivated, may mature to world –class athletes or musicians. Why? Practice, Practice, Practice…about 10,000 hour’s worth. The Beatles honed their musicianship during the early years in the nightclubs of Hamburg, Germany, playing eight hours per night up to seven days per week. Fate and circumstance may have favored their international success, but it cannot be denied that they were prepared for this success by virtue of the thousands of hours spent performing. My point is this: Are you getting the practice, experience, and knowledge necessary to fine tune your real estate skills to the point of attaining “expert” status? Is your environment conducive to providing you the business opportunities necessary to acquire the skills that will qualify you as an expert? Think about it...

Proof of Hope

A close friend sent me an email message last week entitled, "Proof of Hope". Someone had probably forwarded it to her, just another innocuous internet circulation. The authorship was unattributed, but I did some research and found that the article was written by Andy Andrews author of, The Traveler's Gift. Given the season of thankfulness, I decided to include Mr. Andrews article in this week's post.

The Proof of Hope by Andy Andrews

At this moment, I am alone outside, watching the sunrise over the ocean on the north shore of Oahu. A quick calculation reveals that I have personally experienced more than 18,000 dawns in my life. Of course, most of them occurred without my presence! Nonetheless, I have "gotten up and gotten started" more than 18,000 times.

Many of those mornings have been spectacular. Just like you, I know what it is like to wake up full of joy and gratitude.
I remember my first morning as a husband and my first new day as a father. It was only five years ago that I sat in my living room and watched the "Good Morning America" team on ABC reveal The Traveler's Gift to the world. I have awakened with my whole family in one bed, giggling at me as I snored. I could go on, but you understand my point:
personally and professionally, I have had some awesome mornings.

Also lurking in my memory are some days that did not begin well. And many of those days very quickly got worse. The mornings after my parents died were tough. Waking up under a pier or in a stranger's garage is not fun. Three and a half years of rejection by 51 publishers was a discouraging start for The Traveler's Gift. Just like you, I know what it is like to wake up full of doubt and fear, achingly despondent and demoralized.

I have "begun again" the day after a hurricane destroyed our house. I have gotten out of bed the day after my gas and electricity were cut off because I couldn't pay the bill. I have started mornings hungry because I didn't catch anything and couldn't quite bring myself to steal. People have broken promises, business plans failed ... I could go on, but you understand my point: personally and professionally, I have had some wretched mornings.

Yet, one tiny string of thoughts has kept me calm enough to function even during the worst of times. First, the acknowledgment that tough times are normal seems to help.
Tough times are nothing new and they aren't exclusive to one person or group of people. We are all in a crisis, coming out of a crisis, or headed for a crisis.

In addition, I have discovered proof of hope that has consistently lifted my heart, mind, and spirit to a point of forward motion. Very simply, it is this:

* Even in the worst of times, I must remember that I am still breathing.

* If I am still breathing, that means that I am still here.

* If I am still here, that means that I have not completed what I was put here to do.

* If I have not completed what I was put here to do, that means that my very purpose has not been fulfilled.

* If my very purpose has not been fulfilled, that means that the most important part of my life has yet to be lived.

* If the most important part of my life has yet to be lived, then it doesn't really matter how old I am or how broke I am, how long I've tried or how depressed I might be ... Here, at last, is proof that the best part of my life is ahead of me! Without a doubt, there is more laughter to come, more success in my future, more children to teach, more friends to influence. There is more.

There is more ... and the promise is proven by the simple fact that I am still breathing. I am still here.

Of course, I must confess that my greatest aggravation with God is that He never seems to be under any obligation to tell me what He is doing in my life. We will talk more at some point about the purpose and benefits of tough times. For now, no matter what you are experiencing, it is enough to take a deep breath and remember:

I am still here. There is more.

The Dip

"If you’re not going to be #1, you might as well quit now.” Seth Godin, The Dip

Seth Godin’s new book, The Dip, is a primer on the art of strategic quitting and an excellent example of just how powerful mental models can be. For example, remember when you first began your real estate career. You started out with a lot of energy, making strides toward your goals. The excitement and motivation were strong and euphoric. Then, you hit the wall. It may have been health issues, the economy, market conditions, lack of Broker support, lack of technology skills, or any combination of the foregoing. Things got tough. You began tackling the less sexy aspects of your goal, such as; prospecting, business planning, or farming. Progress is slow and painful with no tangible benefit in sight. At this point many agents give up. But you see the future beyond the Dip, and you want it, so you press on.

On the other side of the Dip, things appear to be bright and sunny. You come out on top, you're successful, you've persevered, you're recognized as being among the best in your market. The time and hard work you spent pushing through the Dip was worth it and you'll continue to real the rewards until someone or something pushes through an even bigger Dip that changes the game yet again.

However, there is another mental model which we encounter frequently in the real estate business which has the potential to wreck many a promising career. Seth Godin refers to it as the "Cul-de-Sac". It''s a model that represents things that ultimately aren't worth doing. It's a trap in which it's easy to get stuck. You grind your way forward, giving a lot but gaining little ground. This "dead end" isn't going to lead you where you need to go. Examples? Sure in real estate there are plenty: print media advertising (no future, readers have moved on), self promotion vehicles (consumers are smart, they want value not glamour shots), cold calling (DNC knocked this one in the head, and no one is going to answer the door when you knock) and promotional items (if your value proposition is expressed as a calendar or magnet you've probably hit the wall). These are just a few, there is an abundance of other dead ends in real estate. The point is not to get caught in dead-end activity. Sure, placing a print media ad is "fire and forget" and it makes the seller happy. But, you'll never get out of the Dip if you remain stuck in the Cul-de-Sac. Why not try an email campaign, or a new web strategy, or SEO/SEM? Drastic change is scary and therefore most agents avoid it, choosing to cling to the mediocre status quo.

What's an agent to do? QUIT! Identify those areas in your life and your business in which you're not making progress, vacate these positions without reservation or remorse. Go find yourself another Dip in which to invest your time and energy. The Dip is your friend. It forces you to muster the attitude and determination to learn new skills, adopt new technology, or change your business model. So long as you maintain this energy and direction you can find your way through it and on to the top of the heap. If you're not making progress through the Dip...Quit! Mike

Get on board the Cluetrain.

Back in 1999, Rick Levine, Chris Locke, Doc Searles, and David Weinberger, all Silicon Valley veterans published what has became a roadmap for eCommerce development. Their document was appropriately named The Cluetrain Manifesto. A single paragraph summarizes the essential position taken by the writers:

"A powerful global conversation has begun. Through the Internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed. As a direct result, markets are getting smarter—and getting smarter faster than most companies."

The Cluetrain Manifesto is a set of 95 theses organized and put forward as a manifesto, or call to action, for all businesses operating within what is suggested to be a newly-connected marketplace. The 95 theses contained within the manifesto aim to examine the impact of the internet on both consumers and businesses serving consumers.

Of the 95 theses, my personal favorite is #89: “If you don’t quite see the light, some outfit will come along that’s more attentive, more interesting, more fun to play with." How true in today's market in which information and knowledge is valued more than brand, relationships, or cost of service. According to NAR research 81% of buyers begin their search for a house on the internet. Thanks to this internet research buyers know more about the subject property than do the real estate agents seeking to serve them. It's as if the authors of the Cluetrain Manifesto were addressing themselves directly and individually to the real estate business. Today, consumers can find suitable houses, research the home's history, calculate the home's value, gather neighborhood data, and in an increasing number of cases negotiate the purchase price online. Are you equipped to deal with this phenomenon? Is your prospecting and market outreach designed to meet and interact with this intelligent consumer on their turf? Are you able to communicate relevant facts and data in a timely manner thereby positioning yourself as the best and smartest source for counselling and advice? If not, you need to get on board the Cluetrain! Mike

Is the price right?

How do you know if your new listing is priced "right" for the market? Given the fact your CMA is based on purely historical data, how do you know you've not inadvertently over or under priced that new listing? In today's market the greater likelihood is to either permit the seller or your desire to please to dictate your pricing recommendation. Both will probably result in "overpricing". If this sounds familiar, consider yourself a weak agent. Or at least one who succumbed to a moment of weakness somewhere between winning the listing and actually setting a market offering price. Just for you, I have the following recommendations:

1. Check the seller's motivation for selling in this market. Based on the news broadcast over national media, only a hermit wouldn't know the real estate market has slowed and that sellers must be willing to sell for less then buy again at a discount when purchasing their next home.
2. Know the metrics. The real estate profession doesn't attract rocket scientists, but you've got to know, and I mean really internalize, statistical data such as; DOM, list to sell ratios, price per square foot, absorption rate, and supply/demand curve. Know these metrics not only for the MLS, MLS zone, zip code and subdivision but right down to the street level. After all, ALL real estate is local.
3. Know your elevator pitch. What makes you valuable to the seller? What do you bring to the selling process and why this seller should do business with you. If you can't recite your pitch off the top of your head and on demand instantly...go back and practice some more.
4. Be confident but not overbearing. Your confidence is derived from your knowledge of the market. Lots of knowledge, lots of confidence. Agents often become overbearing when they feel it necessary to inflict their price opinion on the seller. Are you buying or selling? Let the "research" advise the suggested price point or range. Your opinion doesn't count unless you're prepared to write the seller a check and buy his house.
5. Finally, do not confuse price with ability to sell a house. Typically, it's the overpriced listing that belongs to the least competent agent. If a seller does not possess the requisite motivation, is not willing to recognize changes in the market, and insists on overpricing his house...walk away. Best to catch this one as an expired listing to relist.

That's my two cents on overpricing. Seems there are so many overpriced listings on the market today that every buyer feels the need to chisel down the asking price whether the house is priced right or wrong. Sadly, this market condition is likely to persist until buyers and sellers realize we've hit the market bottom and demand begins to push the market in the opposite direction. Let's all hope that correction occurs soon. Mike

I read with interest and shock an article in this weekend's Inman News entitled, "Nearly 10 million homes upside down: First American releases state-level analysis". The article goes on to report that, "More than 7.5 million single-family homes are worth less than what's owed on their mortgages, and another 2.1 million were very close to being upside down at the end of September, according to an analysis by First American CoreLogic." Well, duh! Who promised that homeowners would see double digit escalating values in housing forever? For that matter, since when does being "upside down" or "underwater" constitute grounds for mass panic? Any builder will tell you that he or she has been upside down on a considerable number of occasions when they've invested more dollars in the construction of a house than it will bring on the open market. Just because you're under water doesn't mean the homeowner is ready to lock the doors and mail the keys to the lender. Most of us bought the houses in which we now reside for the primary benefit of shelter. After all, if I'm not living in my own home, I'll be required to rent one from someone else. If the Congress and Administration truly want to solve this housing crisis then put people to work. Jobs insure that citizens can afford the houses they currently own, that they can bootstrap themselves out of housing debt, and when the need or desire necessitates purchase another home down the road. It's not bailouts we need, it's a job for Joe the Plumber, so he has the confidence to weather this storm. What's so difficult about that?

Welcome to Mike's Market Musings

Welcome. At this blog you'll find insightful commentary on various topics related to: real estate brokerage & practice, current market conditions, real estate sales. These views are mine and should not be construed to reflect those of my employer, friends, and associates. Don't expect the author to parrot routine, mundane, or popular thoughts on the state of the real estate business either national, statewide, or local. You may; on any day, find the politically correct representation of the current market turned on it's head. Here's where you'll quite often find the unconventional and contrarian interpretation of the latest real estate related news. The calf path is never straight and neither will we be in the pursuit of added knowledge. I welcome your reply commentary. Blog on, Mike