At a gathering of the KWU International Master Faculty last year, improv comedian Les McGehee told us about an icebreaker where three people volunteer to share a story about their lives. But there was a twist: Two were instructed to lie. The attendees then had to decide who was the truth-teller. Here’s the strange thing: Audiences almost always picked a bogus story. Why? Because when we share facts, we tend to believe the facts will speak for themselves. We don’t put any energy into the presentation.

This got me thinking about our buyer and seller presentations. Even though we may have a firm grasp on the market, a cold recitation the facts will probably not be enough to empower our clients to make the best decisions. Don’t get me wrong. This isn’t a license to mislead. On the contrary, we need to power up our presentations and here’s five proven ways:

1. Make it Real

Chip and Dan Heath, in Made to Stick, tell us about Art Silverman of the Center for Science in the Public Interest (CSPI) and how he communicated the evils of movie popcorn. You see, back then popcorn was cooked with coconut oil, and a medium bag had a whopping 37 grams of saturated fat (almost a two-day supply in one serving!). “The challenge, Silverman realized, was that few people know what “37 grams of saturated fat” means…And even if we have an intuition that it’s bad, we’d wonder if it was “bad bad” (like cigarettes) or “normal bad” (like a cookie or a milk shake).” So Art called a press conference and shared that ‘A medium-sized ‘butter’ popcorn at a typical neighborhood movie theater contains more artery-clogging fat than a bacon-and-eggs breakfast, a Big Mac and fries for lunch, and a steak dinner with all the trimmings—combined!” He even laid out all the food to drive his point home. Fatty popcorn became a national story, moviegoers stopped eating it and theaters were forced to offer a healthier product!

So instead of telling your buyers and sellers that home prices are down 11.4 percent, say that the average home price has dropped $32,000. That’s a number they can feel, viscerally. Buyers might just get off the fence and sellers may think twice about shooting for the moon.

2. Avoid Jargon

Jargon is not real. Many people make the mistake of employing industry jargon and acronyms to appear more knowledgeable, but most jargon tends to be unintelligible to anyone outside the industry. At my first and only corporate job, they talked about “CTB forms” which left my head spinning until I finally had to the courage to ask what they were talking about. It stood for “Call to Bob.” No lie.

So avoid jumping into discussions of absorption rates (how quickly homes sell) or cap rates (a fancy measure of cash flow) and take a moment to make sure your client will understand you. Simply put, never use a fifty-cent word when a five-cent word will do.

3. Use Visuals

You may have noticed that the books and course we write are chock full of tables, graphs, and diagrams. At heart, Gary has always been a teacher. Give him a flip chart or a white board and he can make just about anything clear. Research shows that as many as six out of ten adults are visual learners—seeing, after all, is believing.

So, instead of telling your buyers and sellers about how overpricing can lead to chasing the market down, pull out SHIFT and walk them through the graphic on page 146 or use the dialogue and images on pages 150 to 153 which can easily be drawn on a napkin.

4. Ask Questions

As sales professionals, we know the importance of asking questions and then really listening to the answer. Questions have the power to open minds, change the direction of a conversation, and provoke thought. If you are presenting market trends on a graph, ask the seller, “So when you look at this trend, what does it tell you about how we should price your house?” When we ask questions, our buyers and sellers get a chance at self-discovery.

How much more powerful would your presentations be if your sellers and markets really understood how the market works?

5. Tell a Story

So we come full circle to stories. Not the fabricated kind, but rather true stories that help us make better decisions. In The Upside of the Downturn, Geoff Colvin talks about firefighters. Researchers showed both groups pictures of a fire and then asked each to describe what they saw. The novices noted the facts anyone would notice: where the fire was burning, the color of the flames, the amount of smoke. The veterans told a story about where the fire had started, what it was doing at the time of the photo and where it was likely going to spread. Colvin’s point was this: veteran firefighters instinctively placed the facts in the context of a story. They did it to save lives because we make better, faster decisions when we base our actions on stories (which mirror our real life experiences) than we do on a collection of facts.

This is why we role-play. This is why we trumpet our success stories. This is why the best agents weave past buyer and seller experiences into their presentations.

So for your next buyer or seller appointment, try using one of these tried-and-true techniques when making an important point. It may just put some extra punch in your presentation and help your client make the right choice.

With every challenge there is an opportunity. In 2010, there are opportunities for commercial brokers who are equipped to engage with REO assets. Consider the state of the market:

• The percentage of loans that are at least 30 days past due in the Commercial Mortgage-Backed Securities (CMBS) market rose higher than 6 percent for the first time ever at the end of 2009, according to mortgage research firm Trepp LLC.

• CMBS delinquencies have skyrocketed, posting a 502 percent jump over the 1.21 percent delinquency rate from just a year ago, Trepp reports.

That translates to an unpaid balance of CRE-backed bonds of $37.93 billion, according to investment rating agency Realpoint LLC. And that, in itself, is a 440 percent increase since November 2008.

Commercial REO Associations Forming

Analysts predict it will get worse before it gets better. Realpoint estimates the delinquent unpaid CMBS balance will continue to rise, reaching between $50 and $60 billion. Delinquency rates could rise above 8 percent by mid-2010.

What does all this mean? Again, it means opportunities for commercial brokers who engage with REO assets. KW Commercial is taking a leadership position in the commercial REO sector by helping our agents become resources for lenders, bankers and commercial real estate investors who see the opportunities in a down cycle.

Additionally, the opportunity has given rise to organizations like the Commercial REO Brokers Association (CREOBA) and the Commercial National REO Professionals Association (CNRPA).

Launched in 2009, the CREOBA was formed to help banks and loan servicers sell foreclosed commercial properties. CREOBA is working with banks and asset management companies to create “Standards of Service and Best Practices” between the bank REO departments and the brokers selling foreclosed properties.

Also formed in 2009, the CNRPA is a national trade organization for professionals who conduct business in the distressed commercial real estate industry. Members include lawyers, brokers, developers and others who take part in the process. Networking with all these parties is a good idea if you want to navigate this opportunity.

The REO Opportunity

Of course, I’m not endorsing any group. I’m merely illustrating that many in the commercial brokerage world are preparing for the opportunities in 2010 – and so should you. With some predicting more liquidity in the market and a values bottom expected to emerge later this year, the predominant opportunity in commercial real estate in 2010 may very well be REOs. Here are a few proof points:

• Overdue loans in pools of commercial mortgage-backed securities (CMBS) climbed to 6.49 percent in January, according to a report issued this week by Trepp.

• As of January 2009, there was $170 billion worth of distressed commercial real estate nationwide, according to Delta Associates.

• Lennar Corp. closed the biggest loan purchase of 2010 from the Federal Deposit Insurance Corp. Lennar paid $243 million to purchase $3.05 billion worth of loans on 5,500 distressed residential and commercial real estate properties.

Getting Ready to Run

KW Commercial is equipping our commercial brokers to approach this market strategically with training and education. One example is the Distressed Properties and Commercial REO Mastermind webinar through KW Commercial’s intranet on the training page.  Another example is a KW Commercial breakout session titled “Commercial REOs & Auctions.” Additionally, we are forming an International Practice Group (IPG) for the REO markets, which is being led and directed by our top commercial REO brokers.

My advice would be to brush up on your education so you can keep pace with the industry. Things are changing quickly. While savvy commercial veterans can draw from past experience from the downturn in the 1980s, today’s market offers new challenges and new solutions. You can count on KW Commercial to keep you up to date with the latest tools to help you navigate commercial real estate.

From Guest Contributors: Maps Coaching and Coach Beth Torrence. Beth put this post together from notes she gathered at this week’s Masterminds, a MAPS Coaching signature event, which was held in Austin, Texas.

It’s April 15 and home buyers have just 15 days left to get a home under contract to qualify for either the $8,000 or $6,500 Tax Credit.  So, what can you do today?

1. Contact FSBO’s and Expireds with an offer for a 15 day listing agreement. Let them know they’ve got 15 days to sell their house before the credit expires and many buyers are out of the market.
2. Have your sellers offer to double the tax credit if you purchase in the next 15 days. Seller can offer assistance with closing costs or a price reduction.
3. Call your SOI, Accountants, and Financial Planners and say, “Hey there are only 15 days till the tax credit expires. Who do you know that doesn’t want to miss out on either 8k or $6500?”
4. Create urgency in the sellers to get the price down into the next pricing bracket down. This will expose the home to more prospective buyers and the seller can then move to their next house and get the $6500 credit if they qualify.
5. Practice Buzzard Real Estate – If you live in an area where investors have a lot of equity, contact them and let them know that now is a great time to sell it and buy homes in other distressed areas like Las Vegas, etc.

Click here to go to the MAPS Coaching blog for the rest of the tips: http://bit.ly/cjjQqp

One of the unfortunate downsides of the information age are less than desirable organizations that perform malicious acts and put your identity at risk.

Phishing scams are just that – illegal organizations “fishing” for personal information about you in order to commit identity theft. A fraudulent, yet very official looking, email is sent requesting the recipient to verify some bit of information about themselves.  This information can be banking account numbers, social security numbers or username/passwords. If collected, this information, is then used for identity theft by compromising your account.

It is important to always remember to treat any username and password as personal information that could be used to commit identity theft, including your email username and passwords!

A few typical indicators the email you received is NOT legitimate:

1. Indicates your account has been compromised
2. The use of odd spacing in the subject line.  I.E.:  “Your      Account:    has been    Compromised”
3. Indicates your account will be closed soon without confirmation from you
4. Some piece of information needs to be verified – your credit card number, username and password, etc

So, what can you do if you think you have been scammed:

1. Never reply to emails asking for personal information.  No legitimate business will ever contact you this way if your account has been compromised.  Ever.
2. Only divulge personal information when you initiate the service call.
3. If you wish to verify if the email is legitimate, call or email the company’s customer service center directly. If you are a Keller Williams associate, you would contact KW Support at support@kw.com.
4. If you have responded to an email you now think is a phishing scam, contact the customer service department of the account you believe is now compromised IMMEDIATELY.
5. To report scams in the US:
   If you believe you’ve been scammed, file your complaint at http://www.ftc.gov/
   If you receive spam that is phishing for information, forward it to spam@uce.gov
6. To report scams in Canada: file a complaint with www.recol.ca

According to the Anti-Phishing Working Group, in May 2008 alone, 32,414 phishing Web sites were operational. Remember, be safe on the internet and keep your personal information private! Teach yourself to spot these indicators I listed above and first and foremost, take the time to find out before clicking on anything to provide your information.

Your email:

A friend of mine is a Team Leader and part owner of a Keller Williams in Arizona. He told me that when Bold was in Arizona the average contracts taken for the eight week class was 20. That number is amazing! That means out of 126 agents that took the class there were an average of 20 contracts per agent.

If you haven’t taken BOLD, why? Why would you want to be in business and not push yourself to the very limit. Why not you? You deserve to have success. There are tools out there to give you that success and BOLD is a big part of what your business and your life can look like.

The first step to success is to work on you. Work on your thinking and your mind-set. When you work on you, your business will improve. What are you waiting for? Go to your team leader and sign up for Keller Williams BOLD training today.

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Your email:

Good Morning Sean, This came in my email today for my insight of the day and I thought this might be a great thing to share with our BOLD group.

I am making it a BOLD day!
Christine

Refuse To Be Afraid

Tim Wrightman, a former All-American UCLA football player, tells a story about how, as a rookie lineman in the National Football League, he was up against the legendary pass rusher Lawrence Taylor. Taylor was not only physically powerful and uncommonly quick but a master at verbal intimidation.

Looking young Tim in the eye, he said, “Sonny, get ready. I’m going to the left and there’s nothing you can do about it.”
Wrightman coolly responded, “Sir, is that your left or mine?”

The question froze Taylor long enough to allow Wrightman to throw a perfect block on him.

It’s amazing what we can accomplish if we refuse to be afraid. Fear – whether it’s of pain, failure, or rejection – is a toxic emotion that creates monsters in our mind that consume self-confidence and intimidate us from doing our best or sometimes even trying at all.

As a law professor, I saw scores of capable students fail the bar exam, not because they didn’t know enough but because their anxiety hindered their ability to remember or coherently express what they did know.
For most law graduates, passing the bar exam should be no more difficult than walking across a board 20 feet long and two feet wide. The trouble is, they don’t walk normally because they’re intimidated by the illusion that the board is suspended 100 feet in the air and that getting across is a life-or-death matter.
What’s the worst thing that could happen? Embarrassment, inconvenience, and expense – but none of these is fatal.

Perspective is an antidote to fear. Most things you fear will never happen, and even if they do, you can handle it.

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Please come prepared.
Be ready to go at 8:30am
Know your #s
Have your cell phone w/charger
Have your database w/ phone #s
Have 2009 production #s
Lunch is provided but bring ENERGY Snacks if you like
LAST BUT NOT LEAST…BRING A BOLD ATTITUDE…I look forward to an Awesome day! Sean

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