- The
Real World of Real Estate Sales, Marketing and Finance!
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- I am an independent
broker because it allows me to...
- Implement
new creative marketing ideas and services that work better than
other agents', thereby helping more people and increasing his
income. So why isn't every agent independent? After all, all
real estate people are independent contractors, not employees!
- What
about large franchises and offices:
Each agent is in charge of procuring his/her own business and
the marketing and servicing thereof. There are no employed
agents. This means that the
agents inside an office do NOT work together for the same clients,
as you are led to believe by huge advertising campaigns that
tote "We have the People, Resources, and the
Power." This is nonsense.
- Each agent is responsible for paying
for their own resources, including computers, software programs,
subscriptions to data, information, service-oriented assistance,
utilities, signs, etc.
- Examples: How many have a laptop? How
many work in broad-reaching areas? How many subscribe to the
Big 8 companies (All of the Bay Area MLS computers, County
Assessor's database on CD-ROM, etc)? How many have a real marketing
plan and solutions to sellers' and buyers' real problems?
- How about Relocation and Referral leads from all those thousands of agents that
belong to national franchises? These
"network" agents rarely market or show properties -
they just receive referral fees from simply making some phone
calls around the nation referring buyers and sellers to other
agents. Is that the kind of agent you want? No practical experience
means a dangerous potential of receiving incorrect advice.
In a few short years, there will no longer
be any loyalty among agents belonging to franchises regarding
where they send their referrals - The internet is already allowing
me to automatically receive referrals based on my ability and
experience, not my company affiliation.
- Example: I was savvy enough to secure
this URL, sfbayrealty.com - before anyone else - this name alone
procures more referrals than any franchise could ever hope to
bring in.
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- In any case, these kinds of leads are
an uncontrollable resource - and for you, sellers, it is a false
marketing tool agents use in an attempt to list your property
- making it appear you have thousands of agents working for you
across the nation or in their large office to sell your home.
That's baloney.
- Power. "We have the Power." What
are they talking about?! Most agents WAIT for business to come
to them - for a phone call, a walk-in to the office or an open
house. These are absoluetly ancient and totally poor ways of
procuring business, but this continues today. Also, most agents
are part time, meaning they only work within their "sphere
of influence" - friends, family, and people they meet. If
you want real power, select a broker like me who does the exact
opposite - I go out and get the business instead of waiting for
it to come to me.
- Big
Company Name. Agents hide behind
a big company name because they have no unique marketing plan
other than being with a big name!
Name recognition means very little today in Buyer’s minds.
Actually, it hurts more than it helps, because if someone has
a bad experience with a company, they’ll not use that name
again wherever they move to. Buyers just want to find the right
property with the right price and terms anyway.
- Track
Records.
Agents
need camaraderie with fellow agents (and their track records)
- because all sales under one office can be used by any agent
therein to make it appear they themselves listed and/or sold
the sum of all the office properties. - even though they weren’t
involved with the transaction! Just being a licensee under a
Broker’s office entitles agents to claim all the sales as
theirs.
- Ads
and the Media.
They make
it appear that advertising and a large presence in the media
will bring them business - and it does - actually, - the image
of all those ads is impressive, but unfortunately it brings ambiguous
leads which cannot be controlled. These ads do make the phone
ring, but the buyers usually end up buying another property -
in any case the buyer’s agent will turn to the MLS computer
immediately to show the Buyer how many other homes are for sale,
and start showing homes at that point.
- Open
Homes.
Like ads,
they cannot be controlled. That is, an agent is at the mercy
of whoever is driving by and or reads the paper. (70% are drive
bys). Agents only have one other way of procuring Buyers - referrals...
- Broker’s
Tours or “caravans”
- These are very unlikely to create more showings - mostly new
agents go on these, to learn about the area.
If these don't
work, what does? The objectives in listing & marketing property
are.
- To
procure a qualified Buyer to purchase your property
at the highest price
within the time you want
with no problems or delays during or after close of escrow
Location is
#1 in real estate
- that's why I am mobile - to get to the location first
where and when buyers and sellers make the decision to market
or purchase real estate. Meeting buyers and sellers where they
are most likely to be - at the subject property. If there is
need for an office, there are no less than 60 offices throughout
the Bay Area that I can use, including Title company offices,
24
Hour Kinkos offices.
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- 99% of my
listings sell at 99.7% of the listing price within 21 days on
average - all over the bay area - regardless of price range,
area, time of year or market conditions. My track record since 1982 proves this. Return
to the top of the page.
I recently listed Anne Manley and Michael Drum's home at 3922
Harrison Street after Pacific Union tried to sell it for 3 months.
Within two weeks I sell their house at full price, which was
higher than Pacifric Union had it listed for. And the market
values were NOT escalating at tthat time. But behind the scenes,
here’s what happened: While interviewing, other brokers
told Anne and Michael that the home’s value was wayy lower
than what I advised tthem of. Throughout the escrow, the Buyers
requested additional credits from the Seller after their physical
inspections, and I told my client, the Sellers, to stay firm
and say “no.” The Buyer proceeded and it closed on
time. These clients were extremely attached to this house, because
it had been in the family for over 60 years. So they were extremely
relieved and happy that I took the time and fortitude to do what
was right.
- Step #1: Advising
and consulting on list price, sales price, projected time to
sell, determining current market value Review “comps:”
color photos, maps, descriptions, locations, conditions, size
& amenities, terms, credits, motivations. The list price
is so critical, I estimate 80% of my listings sell at full price
within 3 weeks just because of this alone.
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- Step #2: Finding
the highest probability Buyers instantly: 1) Obtain list of Active,
Pending and recently Closed homes in strategic areas and price
ranges; convert text file from MLS into database format including
owner names, addresses, phone numbers, listing agent name+e-mail
address, list price, loan balance, listing date. 2) Send brochure
to seller, listing agent, 3) Prospect on phone, 4) Send e-mail+brochure
to listing agent. The second best way to obtain a good list of
buyers is to refer to my database, which I will show you in person.
- Just take
two of the 7 counties where I market homes: Alameda and Contra
Costa County. It is only from this wide-ranging experience that
I know where “Buyer migrations” are taking place. For
example, Oakland, San Leandro, Castro Valley, Hayward Sellers
are Buying in the Amador and Southern Diablo Valleys. West Contra
Costa and East Bay Hills Sellers are Buying in the Lamorinda
and Northern Diablo Valleys.
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- Step #3 Qualifying
and Pre-Approving Buyers. I also “do loans.” I offer
full mortgage brokerage services, and even if the buyer does
not use me to obtain a loan, I will verify the same information
they provide their loan broker. See “Addendum.”
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- Step #4 Negotiating
the best price, terms and conditions of the sale. We refer back
to my initial research in Step #1.
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- Step #5 Policing
the escrow using my Platinum Customer Service (Always Available,
24/7 - See Communications)
What?
There are over 30,000 real estate agents in the bay area? Good
grief! All that junk mail, all those real estate ads in magazines
and newspapers! One minute there are hundreds of agents leaving
the business and offices folding and merging. And NOW real estate
is booming again, and here they come again. Gordon has much to
say about the realities of the real estate business, but do you
have time to listen? Probably not. But Gordon has hope! The main
purpose of this WebSite is to be your major provider of real
estate information and services. Since every person is looking
for something different in a REALTOR, Gordon will
It will become self-evident that
Gordon is light years ahead of all other brokers in the Bay Area.
He can only handle a few transactions at a time, so There are
other purposes, too - Daily Real Estate News, Your Community/Subdivision
Newsletter.
- There are
over 10,000 licensed real estate agents in Contra Costa and Alameda
Counties alone. There are over 20,000 in the silicon valley.
Are they all the same? How does real estate really work? Most
are part time. Gordon Allen wants you to know how real estate
really works. Here are some facts about selling and buying real
estate:
- There's a Better Way than...
- The
Yellow Pages
- Junk
mail (or e-mail)
- TV
or the radio
- The
newspaper or magazines
- Open
homes
- Broker
Tours
WHAT? How is that possible?
- Sellers
- On
Showings...
- Listing
agents only represent the Buyer 1% of the time.
- This means that other
agents will show your property more than the listing agent.
- Gordon Allen shows
his own listings often and sells them himself 40% of the time.
- In general, it is not
a great idea for the buyer to use the listing agent.
- It takes a highly experienced
and professional agent to represent both.
- On
Ads...
Advertising
in the media and open homes don't work like they used to.
- Advertising
in magazines and newspapers are used to obtain more listings,
not buyers.
- Advertising
in the media is used as an excuse of an effective marketing plan.
- Most
agents do not have a marketing plan, except for ads and open
homes, which do not work.
- Most
agents only work in a few cities. Therefore, listing with the
average agent who is outside your city makes little sense - except
with Gordon Allen.
- With Gordon's
marketing plan, it makes no difference where his office is in
relation to your property. His marketing plan and strategy work
wherever he wants to it to work.
- It makes no
difference how many agents are in the broker's office - They
do not work together.
- Most agents
only get 50-80% of their commission. They have very little left
over to re-invest into their business.
- Most agents
do not have the necessary computer programming skills to effectively
market homes or to put together a targeted mailing list in 5
minutes.
- Agents who
have assistants need a high volume of business to pay for the
assistants.
- A high volume
agent has less care and attention to detail and is less effective.
- Appraisals
are usually not accurate indicators of real market value.
- Appraisals
99% of the time "come in" at the purchase price reflected
in the purchase agreement.
- This is why
your REALTOR® must be very good at estimating values.
- Over 90% of
Gordon Allen's listings sell at full price.
- Most agents
will tell you your property is worth more just to obtain the
listing.
- Gordon
Allen's average marketing time for his listings is 21 days.
- Most
listings expire and do not sell the first time listed.
- Return
to the top of the page.
- Buyers
Loan agents do very little
work after taking your application - the loan processors do the
rest.
- Loan agents are suppose to gather
all of the documentation upon meeting you, but they keep coming
back for more.
- Loan agents are to let you know,
upon approval of your loan, the wisest time to "lock"
the rate.
- The interest rates quoted in
the media are not able to be locked in and change by the time
you read them.
- A loan can be approved and funded
in as little as 5 working days.
- Any real estate agent can show
you property.
- You do not have to use a real
estate agent just because he/she showed you the property.
- However, upon entering an open
house and signing the registry, you may inadvertantly cause that
agent (through "procuring cause") to become your agent
for that property. Or at least that agent may be entitled to
part of the commission
- Most Buyers do not carefully
choose an agent to represent them.
- Gordon Allen can prequalify
you in 5 minutes over the phone and pre-approve you in one day.
- Gordon Allen only acts as a
loan agent for his own transactions.
- Most buyers start looking without
knowing what they can afford.
- Most buyers do not review the
comparable sales in the area before making an offer, and pay
more for the property than it is worth.
- Foreclosures are usually not
any better deals than any other property for sale, unless you
have all cash and show up at the courthouse and buy it "as-is."
- VA and FHA foreclosures that
are available on the Internet are usually not the best buys.
- All properties which have been
foreclosed on are available from Gordon Allen in a report which
he can fax/e-mail to you
- Return
to the top of the page.
- On Real Estate Agents and Brokers...
- Swamped with Junk Mail?...
- There are over 30,000 licensed
real estate agents in the Bay Area.
- Most are part timers, "inactive"
or have gone into the loan business, or into management
- Most leave the business after
just six months.
- Most specialize in only one
or a few areas.
- Most full time agents handle
less than a dozen transactions annually.
- Most are unable to adapt and
survive changing market conditions.
- Most will tell you what you
want to hear just to get your business.
- Some agents make a living just
on referrals, rarely showing homes or keeping in touch with the
realities of marketing real estate.
- Most are unable to use the computer
effectively except perhaps to log in to online services.
Return
to the top of the page.
Here's Why Large Real Estate Companies Look Impressive, But
Offer No More than the Average Individual Agent and Much Less
than Gordon Allen.
- They are in the business of
managing agents (making money off of them), not marketing or
selling homes. There is a HIGH turnover rate of new agents. And
since new agents are highly motivated during their first 6 months,
the recruiting real estate companies make approx. 50% of each
agent's commission.
- Each agent is a self-employed
independent contractor (they're each like a one-person office)
- The larger the company, the
harder it is for an agent to do those things which really work.
Too much paperwork and administrative tasks get in the way of
creative marketing ideas - but also most agents can't even put
together a simple database from a text file.
- Sellers: The major benefit to you would seem
to be large company advertising campaigns - Reality is that this
type of marketing provides little or NO direct results for your
property.
- Buyers:
Any agent can show you any property listed by any company.
- Most agents use the same forms
to present your offer, but what counts is your agent's ability
to represent you in writing when "sticky" situations
arise, which are many in today's transactions.
Your REALTOR® should offer you more services
like financing and other customized services like...
- How do I reduce the paperwork
lenders keep asking me for?
- Will I get the best rate?
- When do I lock the rate?
- How do I minimize my closing
costs?
- Who will explain all this paperwork
to me?
- Return
to the top of the page.
Buyers - You'll be a Seller One
Day - So Choose a Realtor Who is Successful at Marketing
- Few owners use the same agent
to sell as the one they used to buy their home. How come?
They simply weren't happy with the representation or service
they received. So, as a Buyer, make sure you interview a good
REALTOR® who has a winning marketing plan and
great buyer services and representation. And chances are high
that Gordon Allen will be around for another 60 years to help
you sell your new home. He started his real estate career at
the age of 19 in 1982. Count on him to tell you the truth whether
you are a Buyer or a Seller. Interview him today.
-
-
-
- The Real World of Real Estate
- Here's Why You're Swamped with
Junk Mail at home...
- There are over 30,000 licensed
real estate agents in the Bay Area.
- Most are part timers, "inactive"
or have gone into the loan business, or into management
- Most leave the business after
just six months.
- Most specialize in only one
or a few areas.
- Most full time agents handle
less than a dozen transactions annually.
- Most are unable to adapt and
survive changing market conditions.
- Most will tell you what you
want to hear just to get your business.
- Some agents make a living just
on referrals, rarely showing homes or keeping in touch with the
realities of marketing real estate.
- Most are unable to use the computer
effectively except perhaps to log in to online services.
Return
to the top of the page.
- Here's Why Large Real Estate Companies Look Impressive, But
Offer No More than the Average Individual Agent and Much Less
than Gordon Allen.
- They are in the business of managing agents (making money
off of them), not marketing or selling homes. There is a HIGH
turnover rate of new agents. And since new agents are highly
motivated during their first 6 months, the recruiting real estate
companies make approx. 50% of each agent's commission.
- Each agent is a self-employed independent contractor (they're
each like a one-person office)
- The larger the company, the harder it is for an agent to
do those things which really work. Too much paperwork and administrative
tasks get in the way of creative marketing ideas - but also most
agents can't even put together a simple database from a text
file.
- Sellers: The major benefit to you would seem to be
large company advertising campaigns - Reality is that this type
of marketing provides little or NO direct results for your property.
- Buyers: Any agent can show you any property listed
by any company.
- Most agents use the same forms to present your offer, but
what counts is your agent's ability to represent you in writing
when "sticky" situations arise, which are many in today's
transactions.
- Your REALTOR® should offer you more services
like financing and other customized services like...
- How do I reduce the paperwork lenders keep asking me for?
- Will I get the best rate?
- When do I lock the rate?
- How do I minimize my closing costs?
- Who will explain all this paperwork to me?
- Return
to the top of the page.
- Gordon strictly
adheres to the Realtor's
Code of Ethics.
He's even sacrificed tens of thousands of dollars in commissions
to prevent conflicts and problems and to avoid breaking any of
these code of ethics. One of these code of ethics it to "not
mislead the public." He's never been involved with any disciplinary
action by anyone - including clients, the Department of Real
Estate, the California Association of Realtors nor any of the
Bay Area Association of Realtors, etc. But Gordon's competition is using words
that are misleading. Here's the truth about "the big real
estate companies."
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- Do real estate
companies, who collect fees from their agents, provide real services
that one agen can?
- Agents hide
behind and use a large company name for these reasons:
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