"You can't please all the people all the time."   Famous words by poet John Lydgate and later adapted by President Lincoln.  And, "Oh!".... how that applies to small business!

The scenario... your client suddenly becomes angry and confronts you.  How do you handle it?  Escalation?  Rationalization?  What is your solution?

Be a Part of the Solution, not the Problem

There is already a problem.   And knowing the reason is not always apparent, but Bernice Ross, Real Estate Coach and author, offers a powerful model for finding an acceptable outcome for this difficult situation.

"Symptom, Source, Solution"

Treat the Symptom first says Ross.   "(You must first) understand the distinction between what is causing the situation (the "Source") vs. how the issue shows up (the "Symptom.") For example, your buyers discover that the house they have under contract is going to need a new roof. They become angry at the sellers for not disclosing the roof issue on the listing agreement and angry at you for not knowing that those brown stains on the ceiling (that you did note on the disclosure agreement) could mean they might have to replace the roof."

 Next, find out the source.  In the above example, the symptom is anger, based off of the fear that they might not be able to buy a new roof because they have extended everything to buy the house. But dig a little deeper and that fear has brought up other fears to include.... If they back out, will they find another house they like as well?  And if the sellers hid this problem, what else are they hiding?

"Before you can move toward a solution, you must uncover the true source" says Ross.  She offers a step by step model that can help you cope with virtually any angry situation and that will quickly move you towards a solution.

Defuse the Situation

Know you can't "win".  Forget about trying to be "right".

Try a "Pattern Interrupt":  Ross suggests using a technique from Neuro-Linguistic Programming (NLP).  "The strategy is to stop the angry behavior (the symptom) as quickly as possible." she says.  "For example, if you just presented a very low offer to your seller and she became upset, a "pattern interrupt" could be asking her to get a glass of water for you. Standing up actually changes her mood. Another example of a "pattern interrupt" would be to ask the seller to pause for a moment while you obtain a pen and paper to write down what she is saying." 

Protect Yourself and Write it Down:  Ask the angry individual to repeat what they said so you can write it down.  This will not only reduce their anger but also validates that you are listening. "Now ask your client to pause." says Ross.  "Read back what your client just said in the calmest and most soothing voice possible. This is called "charge neutral." By repeating what your client said in "charge neutral" you are defusing the situation by taking the emotion out of what the client said. This approach makes it easier to get at the source of the issue. "

Ask for more information: Make sure the client agrees with what you wrote down and then ask if there is anything else "When the customer/client is unjustifiably angry, don't argue with them or try to prove your point." offers Ross. "(And) if you can't honestly say, "I understand your point of view," at least write down their concerns and read them back to make sure you have captured them correctly. In most cases, the situation will calm down when someone has taken the time to listen and record their concerns. "

How to Deal with the Anger:  

"If the anger is directed at you," suggests Ross, "respond with: "It was never my intention to make you angry. What can I do to correct the problem?" Notice there is no acceptance or blame, only an effort on the part of the agent to take steps to correct something that has gone wrong. This question lets you move on to the solution.

It might be necessary to bring in your broker/owner/manager if the client is still very angry.

If the anger is directed towards someone else, don't throw them under the bus.  Just ask the client how you can be of assistance in solving the problem.

Own it! And be Part of the Solution

If you made a mistake, own up to it.  "Don't give excuses or say, "I'm sorry." says Ross. "I'm sorry" requires an explanation. Instead say, "Forgive me, I made a mistake. What can I do to fix the situation?" This puts the power in the hands of the other individual without excuses or rationalizations. Also, it demonstrates that you are willing to take responsibility for your actions."

Finally, follow through and make sure you find the best solution you can.   Remember, you can't please all the people... but you can try.

Read more great tips at RealEstateCoach.com.
photo credit: smerikal

Posted in Headlines, Real Estate Industry

Statewide, Colorado's unemployment rate has been below or equal to the national rate since 2005 and remains below the national rate, according to the Colorado Division of Housing (CDOH).

" The Boulder and Fort Collins areas have posted better unemployment rates than the nation for quite some time." writes Ryan McMaken, spokesperson for CDOH.  "Denver has dropped below the national rate in recent months."   

This is Good News for the Housing Market .

"As long as Colorado is perceived as being a better job market than many metro areas in the nation," says McMaken, "such perceptions will foster household creation and population growth in the state."

The gap between the Colorado and the national unemployment rate has narrowed in recent months with unemployment declining faster at the national level.

Read more at Colorado Division of Housing

Posted in Headlines, Real Estate Industry

Denver area apartment rents rose 4.5 percent in the first quarter from a year earlier.  "This is the biggest year-over-year increase in a decade." reports Dennis Huspeni of the Denver Business Journal.

Vacancy rates are continuing to drop, so this wasn't surprising news.  "Average rent for the seven counties portion of metro Denver area stood at $952 in the first quarter, up from $911 in the first quarter of 2011." said Huspeni.

Rents rose higher in Boulder county, as well, and Douglas County posted the highest rent at an average of $1,109.

"Vacancies are falling both metro-wide and in most neighborhoods we survey," said Ryan McMaken from the Colorado Division of Housing.  Vacancy rates fell below 5 percent for the first time since 2001.

"There will be 3,000 apartment from new construction added this year, and an estimated 5,000 in 2013." reports Huspeni.   Most will be high end units, though, so even those numbers won't provide enough housing for the demand.

Read the full story at The Denver Business Journal.

photo credit: yiduiqie

Posted in Real Estate Market Conditions, Real Estate Industry

You'd really like to take advantage of these great low rates and low prices on housing but you don't have enough cash on hand for a down payment?  You've heard about opening a self-directed Individual Retirement Account (IRA) to purchase property, is that a way to do it?

"You might just be able to buy, rent and flip some properties using the funds from your IRA." writes Cyrus Sanati on MintLife.com.  "While that might sound crazy, it's totally above board and seems to be gaining in popularity as more Americans choose to take direct control of their retirement investments."

You can choose to manage your IRA yourself, although IRS regulations require that either a qualified trustee or custodian hold the IRA assets on behalf of the IRA owner.  The trustee maintains the assets and handles the transactions and keeps the records, files tax reports and other administrative duties and assists in helping clients understand the rules and regulations pertaining to certain prohibited transactions.

"With erratic stock returns in recent years and stingy bond yields, many retirement investors are turning not just to real estate, but to non-traditional investments from gold bullion and hedge funds to tax liens and horses." writes Walter Updegrave on CNNMoney.com.

Should You Take the Risk?  "Before pinning your retirement on any out-of-the-ordinary investment, proceed with extreme caution." states Updegrave.  Make sure you know who you are dealing with; there are a lot of scam artists out there.

 Between 2009 and 2015, savers will roll some $1.5 trillion from 401(k)s and similar accounts into IRAs, reports CNN Money.  And since these are long-term investments, many owners might not be quite so vigilant about monitoring their investments, leaving the door wide open for fraud. Always remember, "If it's too good to be true..."

Is Real Estate a good investment?  Investors are flooding the housing market in record numbers.  "The market climate can't get much better." says Meg Handley on US News.   The type of property you buy, though, is the real issue when using money from your IRA to purchase it.  This is a good way to buy a retirement home for the future, because there are regulations that specify that the owners and their families may not occupy the property while it is owned by the IRA. 

Make sure you know the rules before you buy!  Hire a professional consultant to help you sort through the details.  "Firms like IRA Resources, Equity Trust, Guidant Financial Corp, Entrust and a few others work with clients who want to invest in real estate." says Sanati.  "But this service does not come cheap, so expect to pay several times the amount of fees to them that you  dish out to your current IRA manager."

Always keep your investment portfolio diversified. "People need to understand that there's always an upside and downside to any investment, so you need to spread out the risk," says Beth McHugh, vice president of market insights at Fidelity, an investment firm, who offers a free second opinion on your investments.

"Put your capitol to work for you," says Sanati.  "There are a number of advantages to using your IRA. First, it is money that for some people is just sitting there passively. This will put that capital to work and get you truly involved in managing your retirement. All the capital gains and income tax is deferred, augmenting the firepower of your investment dollars. If you use a Roth IRA then your gains will be tax exempt.

Read more at MintLife.com.

photo credit: Timmy2wheels

Posted in Real Estate Investing, Real Estate Market Conditions, Real Estate Industry

Will the surge in foreclosures be a good thing for the market?  "The large amount of foreclosures (in the U.S.) that have been sitting out there, with borrowers not making payments for an extended period of time," says Herb Blecher from Lender Processing Services, "may be coming to an end."

And this, he says, "is what the market is looking for."

More than 230,000 loans began the foreclosure process in January, reports Diana Olick on CNBC.  "Thousands of foreclosures that were stuck in process due to delays over the so-called "Robo-signing" paperwork scandal are working their way through a revamped banking system and heading toward final bank repossession."

Banks are working aggressively to modify loans, but there are still 4 million loans in some stage of delinquency that have not even begun the foreclosure process.

Repeat foreclosures, which are failed loan modifications or loans that banks couldn't modify, also hit an all-time high in January.

"While new mortgage delinquencies are falling, the backlog of distress is large." says Olick. "More than 40 percent of loans in foreclosure are more than two years past due and judicial states have 63 months of foreclosure inventory to work through."

Foreclosure sales in non-judicial states are out-pacing judicial by over three to one." says Blecher.  The length of time it takes to process a foreclosure is different between judicial and non-judicial states, Colorado is primarily a non-judicial state.

Seeing an end to these large amounts of foreclosures should help the housing picture eventually.  "That's because while painful to housing in the short term, moving the huge pipeline of delinquent loans to their inevitable end will help the overall market in the long term." says Olick.

Read the full article at CNBC.

Posted in Foreclosure, Real Estate Industry, National News