In my experience, I have dealt with listing agents who did a super job of representing their sellers without taking an adversarial position with the party on the other side of the transaction. However, as with anything, there are those who do make adversarialism a part of their business practice. Some call it “posturing,” others might call it “positioning.” Either way, this approach to business infuses negativity into the transaction and it adds a dimension of distrust, which slows the process down or kills it and becomes a draining experience for all involved. If you have ever read the book The Speed of Trust by Stephen M.R. Covey, then you can understand the point I am making.

There should be a meeting of the minds. A seller wants to sell, a buyer wants to buy, and in the case where there is financing, a lender wants to lend. Sometimes, negotiations break down when the representatives for each of these parties cannot work together in order to identify and resolve the core issues that prevent the transaction from moving forward, or perhaps a representative is just “following orders” and does not consider ways to keep a transaction moving forward in a way that does not cause adversarialism to enter into the transaction. It is possible to accomplish this while keeping their parties’ interests protected.  In this new age of real estate, mutual trust, respect, and transparency rule the day.

Hard ball tactics are a thing of the past, and to excel in these changing times, buyers and sellers would do well to find their own representatives that understand how to approach negotiations in an honorable way for the best win/win outcome. Otherwise, no one wins and everyone loses…time, money, energy. The way to accomplish this is to consider applying the 13 Behaviors of a High Trust Leader (Covey 2006):

1. Straight Talk

“Be honest. Tell the truth. Let people know where you stand. Use simple language. Call things what they are. Demonstrate integrity. Don’t manipulate people nor distort facts. Don’t spin the truth. Don’t leave false impressions.”

2. Demonstrate Respect

“Genuinely care for others. Show you care. Respect the dignity of every person and every role. Treat everyone with respect, especially those who can’t do anything for you. Show kindness in the little things. Don’t fake caring. Don’t attempt to be ‘efficient’ with people.”

3. Create Transparency

“Tell the truth in a way people can verify. Get real and genuine. Be open and authentic. Err on the side of disclosure. Operate on the premise of, “What you see is what you get.” Don’t have hidden agendas. Don’t hide information.”

4. Right Wrongs

“Make things right when you’re wrong. Apologize quickly. Make restitution where possible. Practice “service recoveries.” Demonstrate personal humility. Don’t cover things up. Don’t let personal pride get in the way of doing the right thing.”

5. Show Loyalty

“Give credit to others. Speak about people as if they were present. Represent others who aren’t there to speak for themselves. Don’t badmouth others behind their backs. Don’t disclose others’ private information.”

6. Get Results

“Establish a track record of results. Get the right things done. Make things happen. Accomplish what you’re hired to do. Be on time and within budget. Don’t over-promise and under-deliver. Don’t make excuses for not delivering.”

7. Get Better

“Continuously improve. Increase your capabilities. Be a constant learner. Develop feedback systems—both formal and informal. Act upon the feedback you receive. Thank people for feedback. Don’t consider yourself above feedback. Don’t assume your knowledge and skills will be sufficient for tomorrow’s challenges.”

8. Confront Reality

“Take issues head on, even the ‘undiscussables.’ Address the tough stuff directly. Acknowledge the unsaid. Lead out courageously in conversation. Remove the ‘sword from their hands.’ Don’t skirt the real issues. Don’t bury your head in the sand.”

9. Discuss Expectations

“Disclose and reveal expectations. Discuss them. Validate them. Renegotiate them if needed and possible. Don’t violate expectations. Don’t assume that expectations are clear or shared.”

10. Practice Accountability

“Hold yourself accountable. Hold others accountable. Take responsibility for results. Be clear on how you’ll communicate how you’re doing—and how others are doing. Don’t avoid or shirk responsibility. Don’t blame others or point fingers when things go wrong.”

11. Listen First

“Listen before you speak. Understand. Diagnose. Listen with your ears…and your eyes and heart. Find out what the most important behaviors are to the people you’re working with. Don’t assume you know what matters most to others. Don’t presume you have all the answers—or all the questions.”

12. Keep Commitments

“Say what you’re going to do. Then do what you say you’re going to do. Make commitments carefully and keep them at all costs. Make keeping commitments the symbol of your honor. Don’t break confidences. Don’t attempt to ‘PR’ your way out of a commitment you’ve broken.”

13. Extend Trust (smart trust)

“Demonstrate a propensity to trust. Extend trust abundantly to those who have earned your trust. Extend trust conditionally to those who are earning your trust. Learn how to appropriately extend trust to others based on the situation, risk, and character/competence of the people involved. But have a propensity to trust. Don’t withhold trust because there is risk involved.”

I have come to recognize the 13 Behaviors as a benchmark of character and competence that equates to a high degree of trustworthiness in all areas of life–business or personal. These 13 Behaviors can be used to measure any situation to clearly see where shortfalls are occurring not only with others, but also within ourselves, and when we take the necessary steps to change and make it better–great things happen.

Smart Repairs = Profitable Business

Since real estate investors are in the business of real estate, it makes sense that investors would desire to have a profitable business instead of an expensive hobby. However, an important component to accomplishing this successfully is to avoid overspending and over improving investment properties.

An article  on Invesdoor.com gives some helpful tips on what to do to maximize profit on real estate investments. Breaking even or losing money defeats the purpose of investing in real estate.  Therefore, it is well worth the investment of time to gain insight into the strategies that are designed to curb over-spending and maximize profit potential from each and every real estate investment project.

The article points out three practical tips to prevent the over-improvement of real estate investments:

1. Consider the street that the property is on, and what kind of repairs should be made in order for the property to be in a comparable condition to neighboring houses on the same street.

2. Consider cost-effective  improvements that attract the most attention; for example, kitchens and bathrooms.

3. Repair what is broken, but think twice before replacing anything unless cost of repairs exceeds the cost replacement.

Bank Auction or REO? You decide which is better!

I recently read an article at Invesdoor.com that discusses a few important things that cash buyers may want to consider when deciding whether to pick up properties at a bank auction or purchase REO’s. The information was insightful and compelling. Here are three points that stood out most for me:

1. Outstanding debts attached to property:

a. Bank Auction - the debt typically follows the property, which means that a new owner would inherit the debt attached to the property including unexpected liens and judgements (not good).

b. REO – Bank owned properties typically come with the assurance of clear title–meaning, no surprises after closing; or at least a complete awareness of liens or judgements due.

2. Inheriting Tenants:

a. Bank Auction – Properties sold at auction typically have existing tenants or owners still in place, which means new owners may have to bear the legal expense of eviction if current occupants refuse to vacate the property.

b. REO – Banks typically go through the eviction process prior to selling; therefore, a new owner may not need to bear the legal expense of evicting occupants.

3. Deal Financing:

a. Bank Auction – Buyers need all cash upfront usually.

b. REO – Financing and terms are often available; therefore, using leverage to increase purchasing power is possible depending on the specifics of the deal.

Read full article here !

NAEBA just released its latest press release regarding buyer agency and the confusion that occurs when traditional real estate agents call themselves exclusive buyer agents when, in fact, they are not because their companies also represent sellers:

Here’s an excerpt from the release:

“We believe it is important that home buyers understand their options so they will make the best choice when selecting an agent,” commented Benjamin Clark, 2010 President of NAEBA. “It is our mission to educate buyers on the advantages of using Exclusive Buyer Agencies and we want buyers to have that information before they sign a binding agreement with a real estate brokerage.”

A “buyer’s agent” is not always an Exclusive Buyer Agent (EBA). Agencies may have singular relationships, representing buyers or sellers only or they can be a dual agent that represents both sellers and buyers at the same time. Within a dual agency brokerage, there may be “buyer agents” but this differs from NAEBA (http://www.naeba.org) member companies where both company and agents exclusively represent buyers and never take listings. In fact dual agents and dual agency companies may represent buyer and seller in the same transaction, with written consent.

Read full release: Real Estate Market is Coming Up Roses but Buyers Should Beware of Thorns

Think and grow sustainably wealthy--body, mind, spirit, community, and planet!

I just posted a new episode to my podcast Sagely Reflections. It is about breaking through the old ways of thinking to achieve the kind of mindset that will support personal and financial growth. The mind is the very first place to start when it comes to finding direction and purpose. How we think affects how we feel and how we behave as a result. Building sustainable wealth whether through real estate or any other venture requires that we first believe in our own abilities to find learning resources that will enable us to learn, grow, and evolve confidently.

I hope you enjoy this episode!

Removing the Barrier to Breaking Through

Have you ever heard the saying that you can’t see the forest through the trees? It is a universal truth that we can easily forget when we find ourselves in the middle of making a change in our lives. However, I have come to understand that how we manage transition will affect the outcome of the change we experience after all is said and done–good or bad.

Often times, we must move forward with only faith and knowing that–although the future is uncertain–we are doing everything we can to move forward in a positive direction.

No matter how many times we lose our way, the dream in our heart will guide us back to our intended path, as long as we stay receptive and we can hear it calling to us from within.

With gratitude we can stay receptive and connected to our inner-voice. With bitterness, we lose that precious connection and we no longer can hear the song living in our heart because negativity jams the line.

Building a sustainable life requires that we listen to the heart, and follow what feels right–for if we always strive to do the right thing, we will never go wrong. We will find and fulfill our destined place in this world, and beyond.

How we think affects our experiences in life--for better or for worse.

In my Personal Ethics in Organizations class this week, we are discussing worldviews and dilemmas using the characters of the play “Doubt: A Parable”  by John Patrick Shanley.  We had to read the play, and then respond to thought-provoking questions presented by our instructor.

The part of the question that I thought was most interesting:

“Each of the characters in Shanley’s play, DOUBT, a parable, is involved in a moral dilemma. Presumably, each of these characters shares a Christian worldview .  Do they define their dilemmas differently? Do they choose different relevant facts based on their Worldviews? What is a “Worldview?”  Describe some key aspects of your own Worldview.”

My response:

“One of the first classes I took was about inter-cultural communication, and how values and norms affect an individuals’ perception of the world; otherwise known as their, “worldview.” Even when two individuals share the same religious backgrounds, there can still be cultural clashes because every family has their own unique traditions and beliefs that come from more than just their spiritual background. The worldviews of each character in the play were very different and evident in the way they behaved, and responded to circumstances.  

What kind of person would create lies to support their assumption of the truth without making certain that what they are assuming is true? What kind of person would stand there knowing full well that the other person was lying to justify their suspicion and assumptions. How does a man respond to one who blatantly slanders him? How people respond comes from their sense of right and wrong, which comes from their belief of how things should be. This perception of life comes from experiential conditioning since birth. We are all products of familiy traditions and beliefs passed down through the generations, as well as the good and bad we experience in life. It would make sense that a dilemma occurs when a person encounters a situation that does not align with their established worldviews, values, and norms. Therefore, there is a moment of not knowing what to think. Some may begin to doubt and question their beliefs; perhaps use critical thinking to take the situation apart and make sense of each element within the situation. 

However, there are those who never learn from their mistakes and who are not open to questioning the “way things should be.” For me, doubt is the beginning of new knowledge because without doubt, there would be no inclination to search for the truth.”

Now, here are a couple of questions for you–my valued readers:

What worldviews do you have that are holding you back from achieving the transformation you so desire and deserve in your life?

What do you intend to do in order to close the gap that keeps you from realizing your full potential and personal fulfillment?

Things do not happen by themselves. It takes a dedicated and determined effort to figure out and take the necessary steps towards your desired destination in life. Someone will not deliver it to you on a silver platter.  However, you can find people who will support you in your quest. Your vision of life will not happen until you first know what you want, figure out what it will take to get there, take that very first step, and then follow through all the way.

Take destiny into your hands and be the co-creator of your own future and vision of life. Go to the grave knowing that you did all you could do to detect and accomplish your mission and purpose in life–for when you do, you will have lived your life to its fullest potential with NO regrets.

Bremerton (left) and Tacoma (Right)

Could this be a sign that the economy may be slowly recovering? Home prices have historically been used as an economic barometer that clues us in on the state of the economy whether global, national, regional, or local.   A friend of mine spotted an article by Les Christie, a journalist of CNNMoney.com and was kind enough to send it to me (thanks Bob!).

In this article  Christie lists eight cities in the U.S. where home prices are rising. Of those eight, two cities I serve were mentioned:

Bremerton came in at #5:

“Home price forecast (1 year):* 4.2%”

“Home prices rose quite steeply here during the boom years, gaining about 110% between 2000 and 2007 and have declined only modestly since then, down 18% from their peak. But the city and its suburbs, nestled around the Puget Sound, have limited open land for building new homes, which props up resale prices. Plus employment is strong: The metro area’s unemployment rate was 7.6% in December, well below the national average.”

Tacoma came in at #8

“Home price forecast (1 year):* 3.9%”

“Tacoma’s downtown has gone through a revival over the past few decades, and its metro area lies within striking distance of some of the most spectacular scenery in the Pacific Northwest, including the Puget Sound, Mount Rainier and Olympia National Park.

Still, the local housing market has lost more value since its peak than did nearby Seattle. It did, however, outperform the nation as a whole.

Careful growth policies that Washington has urged its cities to pursue will help boost prices in Tacoma. The city is projected to keep growing, with an annualized gain of 3.9% through 2011.”