Minneapolis Saint Paul Real Estate

Sample Example Letter of Intent (LOI) Components

1. LOI Components.  These are the components we highly recommend a buyer use to communicate their order in detail to the REO Seller. 
   1. Dollar Order Amount.  Example $USD 20 Million.
   2. Offering Price.  Based on availability and order amount Buyer offers to pay a "realistic" percentage of the "current value" of property based on Broker Price Opinion ( BPO ) held by the REO seller.  BPOs are typically less than 30 days old.  Pricing is stated as a range of BPO value. Based upon completed orders Valor can provide current pricing trends.
   3. BPO Delivery Range.  Actual BPO value range of the total property portfolio being purchased. Such as $30.7 Million to $40 Million ($0.50 to $0.65 cents on the dollar equivalent)
   4. Property Type.  Example: single family residential.
   5. Price Range ( LTV ).  This is the range of pricing based on current BPO value that the Buyer is targeting for individual property value. Buyer will be paying a percentage of this value such as $0.50 to $0.65 cents on the dollar or 50% to 65 % LTV of current BPO .
   6. Property Condition.  Identify the condition of property you are willing to accept. Example: Minor cosmetic to light rehab.
   7. Occupancy.  Provide the occupancy requirements for the property portfolio.
   8. Title.  Buyer states how they would like to accept title.
   9. Proof of Funds.  Buyer states the type of funds that will be utilized: Cash, BLOC, etc. 
   10. Requested Geographical Location.  List the geographical locations and percentages of properties in each location to be purchased. Use "Exhibits" if necessary to detail locations.
   11. TAPE Delivery Time Requested.  Buyer states how soon they need the tape, typically between 24 to 72 hours.  However, all orders are filled subject to availability.
   12. Initial TAPE Review Period Requested.  Typically 24 to 72 hours.  This represents the Buyer's "free look" period.
   13. Refundable Deposit: Sometimes requested by Financial Institution or Government Sponsored Entity when beginning "due diligence" (takes the property off the market exclusively for Buyer)
   14. Due Diligence Period: Typically - residential a 3 to 7 days; commercial 20 days
   15. Closing:  Two calendar days after the expiration of the due diligence period the full amount of the deposit becomes non refundable. Closing to be coordinated with title & escrow.
   16. Title: To be determined by the Buyer
   17. Escrow Company.  To be determined by the Buyer. Contact Information A Must!
   18. Commission: Buyer shall pay 3% (or 4% for orders under $30 Million)
   19. Closing Paragraph.  This is a brief paragraph describing your purchase.

 

 

Sample REO Bulk Purchase Process (Countrywide/ Bank of America )

 

The Buyer submits a current letter of Intent (LOI) and Proof of Funds (POF).

• The LOI is made out directly to the bank: Countrywide/ Bank of America.
  • Contains a detailed description of the purchase request
  • Includes geographical description of properties wanted by State, County, City, and Zip Code
• The POF is a current bank letter from the buyer's bank to Countrywide/ Bank of America:
  • Stating the buyer has cash/ cash equivalents in the amount of the LOI.
    • Is submitted with either a tear sheet or bank statement
    • If a Letter of Credit provides for conditions to close an REO portfolio
    • Is signed by a bank officer
  • Provides Countrywide/ Bank of America with the buyer's bank contact information
  • Provides permission for a designated Countrywide/ Bank of America employee (to be provided after the buyer returns NCND & NCND Fee Addendum) to call the bank to verify funds.

 

The Buyer typically receives the REO portfolio (TAPE) from Countrywide/ Bank of America within 72 hours.

• Buyer reviews TAPE (Buyer typically receives a 24 to 48 hour "free look" period.)
  • The TAPE will be accepted/declined in total (the properties will not be "cherry picked"). 
• Buyer and Seller enter negotiations and agree to a enter into a purchase contract
• Buyer and Seller open escrow (Buyer's Choice).  Typically a 10% refundable deposit is made at the open of escrow held during the due diligence period.  At the completion of the due diligence period the Buyer accepts or declines the properties (again, in total) and the deposit becomes non-refundable. When the Buyer proceeds with the TAPE purchase, the transfer of money and property occur in the Buyer's escrow.

 Once the Buyer's initial transaction is completed with Countrywide/ Bank of America, the Buyer can return to the Seller as often as their business model and market conditions allow.

 Importantly, there are  several dozen sources for REO residential and commercial properties to complete a buyer's order as needed.  We provide our buyers the opportunity to purchase in order sizes from $5 Million to $1.5 Billion direct to platform.

 We hope this protocol statement enriches your understanding of our REO bulk purchase process. There is an abundant amount of REO properties available. However, due to current banking conditions a buyer must be patient - all the banks are in crisis management and many are under audit or preparing for audit. Delay's can occur - sometimes a platform will temporarily shut down due to funding, reorganizations, or emergency company meetings. Additionally, LOI accumulation can temporarily be placed on hold due to an audit requirement or slowed due to market conditions. However, our professionals are actively managing information and working diligently with REO Sellers to provide our clients with real product, unparallel options and successful closing results.  

 

 

Join Tami Bonnell, President of the US Organization of EXIT Realty Corp. International as she addresses the past, present and future of the real estate industry in a public webinar to be held on Tuesday, April 28, 2009 entitled Effective Real Estate Business Practices.  Learn effective business practices, along with questions every real estate professional should be asking and able to answer in today's ever-changing economic climate.  Ms Bonnell will answer questions at the end of the webinar.

The same session will be presented twice, live, at 4:00 p.m and 7:00 p.m. ET.  This event is open to the public and geared towards real estate professionals across North America. Those interested should visit www.exitrealty.com and click the appropriate link on the homepage to register.

Tami Bonnell’s real estate career spans more than 25 years during which she was instrumental in building three major brands. Ms Bonnell has been featured several times in major industry publications, including Real Estate Magazine, Bay State REALTOR® and Frog Pond Communications. She is a much sought-after international speaker, addressing thousands at events such as RISMedia’s Leadership Conference in NY, Inman News Conference in San Francisco and the Top 500 Power Brokers at The National Association of REALTORS® Convention.  Since becoming President of the US Organization for EXIT Realty Corp. International, her focus is on growth and profitability for Regions, Brokers and Agents.

Introduction to the LinkedIn Pro Series:  Over the next month, I will be doing a series of articles on LinkedIn.com and how to effectively set up and use LinkedIn as a tool for generating new leads, developing new business opportunities, and keeping in regular contact with contacts, prospects, current and former customers, and members of your sphere of influence.  

This Week's Installments...  In today's installment, we discuss:

• Thought Leaders
• Establish a Group
• Develop a Niche
• Develop Content
• Promote the Group
• Build Mass
• Provide Member Recognition

Feedback, Questions and Comments are Encouraged:  Despite the title, this is a "back to basics" series unrelated to the LinkedIn Pro product and is intended to expose real estate professionals to the power of LinkedIn based on simple, easy to understand instructions and tips.  Feel free to leave questions, suggestions, etc. in the comments section.  For more advanced users of LinkedIn, please share your tips, comments, examples, war stories, etc. in the comments section.  

 

 

Interested in Upcoming Training Sessions on LinkedIn?

For real estate professionals in St. Louis. Missouri, the materials for the LinkedIn Pro Series will be used in a live quarterly training session on real estate technology jointly hosted by PREA Signature Realty and Assured Title (formerly Landamerica).  The next technology session is set for April 24, 2009.  Reservations are required and seating is limited to 30 persons per session.  For more information on the real estate technology sessions, please contact Ryan Shaughnessy at PREA Signature Realty at 314-971-4381 or by e-mail to Ryan@PREASignatureRealty.com.

This series will also be made available to all attendees at the Women's Council of Realtors monthly luncheon.  The panel discussion on technology is set for June 4, 2009, at 11:00 a.m. and will include a panel discussion on technology tips, gadgets and communication tools. For more information on the Women's Council of Realtors month luncheon covering the use of technology, visit the Women's Council of Realtors - St. Louis Chapter's website.

Other Parts to the LinkedIn Pro Series:

LinkedIn Pro Series - Setting Up Your Profile

LinkedIn Pro Series - Adding Content

LinkedIn Pro Series - Adjusting Your Account and Privacy Settings

LinkedIn Pro Series - Building Your Network with Invitations and Introductions

LinkedIn Pro Series - Adding Recommendations and Testimonials 

LinkedIn Pro Series - Adding Your Company Profile

LinkedIn Pro Series - Effective Use of Groups

LinkedIn Pro Series - LinkedIn Widget for Distribution of Blog Posts

LinkedIn Pro Series - Promoting Your LinkedIn Profile Using Badges

LinkedIn Pro Series - LinkedIn Strategy - Reference Selling

LinkedIn Pro Series - LinkedIn Strategy - The Advisory Board

LinkedIn Pro Series - LinkedIn Strategy - The LinkedIn Website

LinkedIn Pro Series - LinkedIn Strategy - The LinkedIn Expert

LinkedIn Pro Series - LinkedIn Strategy - Agent Recruitment

LinkedIn Pro Series - LinkedIn Strategy - Warm Calling Based on LinkedIn Research

A Look at History

Years ago the Red Shirt Warriors of the Lakota Indian Tribe were highly respected. They were fierce, they were elite, they were the best of the best. There are stories about how the Red Shirt Warriors were fearless and could do anything. The Lakota tribe didn't give a bow and arrow to every member of their tribe and call them a Red Shirt Warrior. There were only 2 invitations extended every 4 years for new members. Yes the members of the tribe were hand picked and invited to become members. To be picked you had to be elite and have the skills and heart required to be part of the group. 

The Red Shirt Warriors had guidelines and requirements in order to be part of them. What if the Red Shirt Warriors let anyone who wanted to join their group? People wouldn't strive to be their best to get into the group. They would have become a mediocre group. But because only the best were in the group, other people strived to become their best so that they could one day be a Red Shirt Warrior.

Today's business model is full of mediocrity. You can tell mediocrity is rampant when the market becomes saturated and consumers base their choices on price alone. Is the market saturated? There were over 9000 agents in my area last December trying to snag 430 home sells in January. That is definitely saturated. What about price? Consumers in a saturated market assume that every person in it provides equivalent service. When all service providers as perceived as being equivalent, consumers make their decisions based on price alone. You see this equivalent service as real estate agents advertise "Full Service" at a discount so that you save. Consumers are confused by these messages. Agent X with Coldwell Banker or Prudential or RE/MAX has been an agent for 20 years and sells 50 homes a year. Agent X has refined negotiating skills and a brilliant marketing budget and plan. Agent Y with the same company is new to the business and has business cards hot off the press, but no marketing plan or negotiating skills or experience. The brokerage mandates that they charge the exact same fee. What is wrong with Agent X and Agent Y charge the same fee? Two totally different agents with differing marketing skills, experience, etc. and they get the same reward for selling the home? (Okay, so their split is different but the consumer pays the same amount for either agent.)

Who is at fault?

If you have read Good to Great you might say the Leader is at fault. If you have read the Tipping Point or the E-myth, you might say that the system is broken. Well let's look at the industry and see what the focus is on. What do brokerages focus on to make money? They focus on recruiting. Its a numbers game right? 'The brokerage with the most agents wins.' The traditional brokerage models focus on recruiting as many people as they can into their brokerage. As they do this, they do not focus on the actual agent they are hiring. You may say that brokerage A does training and offers marketing to help agents, etc, etc. But when their primary focus is on recruiting more agents, their training becomes a lower priority. How do we know this is true? Subconsciously and consciously people know they don't have to work hard to be part of brokerage A. Every traditional brokerage in town allows any agent to hang their license with them if they have a pulse and a real estate license. You could say, every one gets a bow and arrow.

How is the industry going to change? Should we pass new laws?

No, there is not going to be a law passed that forces brokerages to employ better quality agents or salaried employees instead of independent agents. What is going to happen is economic pressure will purge the industry. During a commoditization of an industry someone is going to do something different and stand out and be the Starbucks or the Cirque de Soleil of the industry. Economic pressure is coming that will force brokerages to change or die. The Industry will change when someone does not hand out a bow and arrow to everyone. The industry will change because there is a team so elite and good that it hits other companies hard in their pockets.

What is the change going to be?

It will be exactly what the book Blue Ocean talks about. The change will be the opposite of what is happening in the industry. If every brokerage is focusing on recruiting agents, the new brokerage will focus on quality of agents. The new brokerage will be as the Red Shirt Warriors. Elite agents will be chosen to be part of the brokerage because of their abilities. Not simply because they have a pulse. There will be a subconscious pressure for people to perform the best they can in order to be a part of the elite group.   The change will be 3 fold. 1rst: the brokerage will only focus on quality of agents. 2nd: the structure of how an agent works will change. 3rd: the service given to the consumer will be instant results, knowledge, and services. The consumer will also see the value of this New Brokerage because there won't be inexperienced agents charging the same commission as the experienced agents. Regarding the change in structure, I'm talking about how agents' work will change. If you read the E-myth you will read why businesses fail. The New Brokerage which focused on quality agents will have a new structure. Today's model of an agent's business fails 90% of the time. The structure will meet the other 10%. What about the service given to clients? 80% of clients browse the internet to look for a home. 70% of those, don't call their brother or cousin to go look, they drive by the house on their own. The new brokerage model will give these people what they want. The new business model will get these people in the homes that instant, when they want to see it. How do I know? Because I know why people are calling me to help them buy a home instead of calling their brother. I know why other real estate agents are calling me to sell their own homes or to help their clients. I am seeing the change firsthand. People want a higher level of service.

Why are other brokerages forced to change?

Well lets look at some statistics. There is an office across the street from me that had over 40 agents. In December those 40 agents sold 16 homes. That is an average of 1/3 of a home sale per person. In the same month I sold 15 homes myself with 7 agents helping me.  We averaged almost 2 sales per person. Our average was 5-6x better than the brokerage across the street. These numbers came from when our market hit bottom. When the market picks up the statistics will start to grow exponentially better than the traditional brokerage across the street. As this grows, people will take notice. (They already are.) I didn't have to advertise to recruit and one of the best agents in town just joined my team. Agents want to be part of the New Brokerage model because it means more success. The other brokerages won't be able to keep the quality agents. Their overhead will be too high and they won't be able to compete. They will be forced to change.

What should I do?

If you want to be successful, you will have to start doing the opposite of what everyone else is doing. You already know what everyone else is doing, the question is do you have the courage to do the opposite?

11206 14th St NE Hanover, MN

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Take Advantage of the most affordable lots and New Construction opportunities with Crow Hassan Builders in Hanover Minnesota.Whether you havea specific floorplan in mind or choose ours they welcome working with you to build it just how you've dreamed it! Many walkout lots available. Bring your own builder too if you like. Ask about our Work Your Way IN and zero money down programs or visit online www.JenniferSue.com

MLS# 3614886 $47,500 Bed, Bath 11206 14th St NE Hanover MN, 55341 Donavon LeeDesMarais EXIT REALTY EXECUTIVES 763-548-1414 Donavon@ExitRealtyExecutives.com

107 Timber Cir Buffalo, MN

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Thank you for your interest in this property. You will be sure to fall in love with the design and tranquility surrounding this wonderfully placed .5 acre wooded lot on a cul-de-sac. Located in the highly desired Mills Woods Development you get the feel of the country right in the heart of Buffalo. Only footsteps from Northwoods Elementary it is the perfect place to raise your family. You'll also enjoy volume vaulted ceilings in your very own 19' x 13' private master suite with your own full bathroom. There's a ceramic wrapped gas-burning fireplace in the main level living room which opens up to a gorgeous kitchen featuring stacked stone accents. The kitchen boasts lots of counter and cabinet space and window looking out to your large wooded backyard. There's a patio and firepit area amidst the trees in the backyard too which is perfect for this time of year. Call to set up your private showing today!

MLS# 3674693 $229,000 4 Bed, 4 Bath 107 Timber Cir Buffalo MN, 55313 Donavon LeeDesMarais EXIT REALTY EXECUTIVES 763-548-1414 Donavon@ExitRealtyExecutives.com

4516 Orchard Ave N Robbinsdale, MN

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This is an ideal time and opportunity to own prime lakeshore in the heart of the Twin cities on Twin Lake. This lakeshore home is a solid structure on a walkout lakeshore lot. The home could use some updating throughout and the price reflects the opportunity for those seeking a quality sweat equity builder. This lake home is a walkout with an attached two car garage and is conveniently located near Highway 100 and County road 81. This home is an ideal equity builder and is a prime candidate for the special government renovation loans for those who may be short on the necessary equity to update and remodel this potential gem. Twin Lake is a quality recreational lake in the heart of the twin cities. To arrange your own private viewing of this property simply contact Sheldon Berquist at: Seven Six Three, Five Four Eight, one four three zero.

MLS# 3674849_0 $260,000 4 Bed, 3 Bath 4516 Orchard Ave N Robbinsdale MN, 55422 Sheldon Berquist EXIT REALTY EXECUTIVES 763-548-1430 sheldon@exitrealtyexecutives.com

Housing, like any other "toxic" assets, needs to go through a cleansing process. That means down, before up.

And this is going to require liquidating the debt as we cannot continue carrying all that excessive baggage forever. The empty promises, artificially inflated numbers and ongoing uncontrolled bailouts have got to stop. We just can't save everyone that bought a house who shouldn't have. If some people were greedy, lazy or stupid - sorry - they should loose their house and not be rewarded by someone else making the payments. At the same time we are not going get housing back on track we if don't create jobs. People without work are unstable and live in uncertainty. 

Fixing the problem and coming up with a viable, effective, nationwide plan is of course difficult and I do not claim to be an economist or an expert (I track real estate business trends - that's all - for my free monthly enewsletter visit www.RETrends.com). That said let me provide my two cents on the economy:

1. As we have probably reached the lowest point in the housing market, or are within months of reaching it, we need to focus our efforts on short term incentives to regain overall optimism in real estate as a solid investment again if we hope to re-energize buyers into returning to the marketplace.

2. We need to halt foreclosures as far as reasonably possible. Banks need to allow people to extend the amortization of their home loans over a longer period of time; maybe even to 40 years if the situation dictates it. We have got to stop this negative wave that is cycling through the housing industry.

3. Government has to enhance the initial Home Buyers Tax Credit by extending it to ALL homebuyers, not just first-time home buyers. Furthermore, eliminate the recapture of the tax credit for 2008 and provide a true tax benefit across the board. 

4. I am not sure as to how we would implement this but what if all service providers involved in the transaction would provide a rebate of 20% on the fees associated with the purchase of a home for the next year. This would include title companies, mortgage companies, escrow companies, attorneys, etc., and yes, even real estate professionals.

5. Finally wouldn't it be great if we could lock mortgage rates for all home purchases at 4% for an extended period of time; 12 to 18 months? That would really be a boost.

In summary, let's get back to the solid model that worked before: 20% down, documented income, good credit and accurate valuations. Real estate has also been a great investment and on the long term will be again so there is no need for us to create unnatural bubbles. Let's not repeat what happened during the last decade.

Does this resolve all problems? Of course not, but it would certainly revitalize and restore our faith in housing and get buyers off the sideline in significant numbers.  And that's really what we need most in fixing the housing downturn - home buyers with confidence in real estate.

I am sure we each have our own opinion regarding what needs to happen. Love to hear thoughts.

Many of us use Youtube to host a variety of Real Estate and personal videos.  I noticed that when videos are done playing, in most cases, other videos will pop up on the screen that have a similar topic or title.  Does this hurt or help you?  I guess this depends on how you "see" it, no pun intended.  Having a video on your site or post can certainly help to create a more captive audience, but those next videos that pop up may be having a subtle and adverse affect.

Yesterday, I was watching a Real Estate Video that was really interesting.  I watched all 3 minutes of it.  Then, when their video was finished, up came another agents video that had nearly the same title?!?   The second video was a bit more produced, had better sound quality, was clearly a higher quality camera, and seemed to have a better videographer.  Plus, the video was only 1:20 minutes long.  At the end of the "competitors" video was a phone number and annotation that included a call to action.  Hmm...

So how do you prevent your competition and others from coming up on "Your" Youtube videos?  Hopefully this tip will help prevent this from ever happening to you...ever again.  When using Youtube Videos on your Blog posts or sites, you might want to take these next steps and precautions before pasting that object embed code.  I'll use these screen shots below as examples in hopes this makes more sense.

                               You want this:                                                          Not This:

        

When you get or use ANY video from Youtube, there are some options available you may not be aware of.  This will come in very handy if you're uploading your own or using any videos from youtube.   When you create or find the video you wish to link or embed into your site, you'll see these options available located on the right side of the video.

Top Line is the URL used to provide a link to the video

Bottom Line is the embed code used to embed on your site

There is a tiny graphic just to the right of the embed code (a settings gear) that little blue thingy   that probably 90 percent of people never see.  Click On it!  This allows you to customize and make changes to the video and player.

This is the culprit right here. 

If you leave that box checked, you'll have no control over what shows up after your video plays.  If you leave it checked, you're taking a chance on having some videos pop up that might not "Best represent" you, your Blog or the site it's being seen on. 

This is happening with and to millions of videos, and they call it viral.  Can you see why now?

Once you get this out of the way, you can also customize your Video by changing the size and adding a custom border.  Just click on that "settings" graphic and it's all there.  I suggest the 445x365 or 500x405 for ActiveRain Blogs.  Only copy the embed code for your video "AFTER" you have completed these steps, that is unless of course you don't mind what videos come up after yours.

               

The video below is my 13 second claim to fame.  It's short, raw, and took me the least amount of time and effort to create other than getting to the place where I shot it.  Because it is titled "The Glory Hole" or "The Black Hole" you can imagine some of the other videos that would pop up in the viewer after mine. :-O  I sure didn't want Mom to see some of those other videos that were supposedly related.  Yikes!  We won't go there today.  This little video has had over half a million views with nearly 1000 comments.  Question is, where did they go and what did they see after mine...or YOURS?

This is what might happen to some of your "Rain Making Efforts" if you're not real careful out there....

The following post is simply one non-conformists opinion, albeit a relatively educated one...Its my hope that my words, cutting as they may come across, cause an epiphany for more than a few...

This entire post is based on The California Association of Realtors 2008 Home Seller Survey (released in July 2008, I just happened upon the PowerPoint presentation a few days ago) but the statistics are just as relevant today, if not more so...Granted this survey is but a snapshot of an industry, yet pictures are worth thousands of words...You can read the entire survey here.  (All statistical references in this post are derived from the aforementioned survey).

Public perception of the real estate professional and the greater industry is amongst the lowest of any on record.  Consumers are looking for an alternative to the 'traditional' Agent and they're defining what this alternative is, yet relatively very few professional are heeding this demand and actually providing a tangible solution.  This Survey demonstrates to me that 90% of Agents are not providing what the consumer wants...and it is ALL ABOUT THE CONSUMER.

Personally I know alot of fantastic real estate professionals.  Genuinely great people, passionate, always striving to better themselves, their clients, the industry they serve and represent...they're worth every penny they command...they dont suck...I'm just a sucker for a good title (no pun intended).  I could fill this page dropping names like Jay Thompson, Kris Berg, Missy Caulk, Bill Gasset and 30 others nobody has heard of as examples of who I consider to be the vanguard of where this industry should look to as ministers of positive change.  Unfortunately, they're in the minority and a few good apples don't ripen the bunch. 

Agent Perception:  I can Has Consumer!

Talk to most any real estate professional and they will tout their expertise, knowledge and marketing prowess as the main reason you should retain their services.  Most will maintain that commission rates (should) mean very little to the consumer and they're worth every penny. 

 

Consumer Reality: You Suck! 

According to the respondents:

Number One factor considered when choosing an Agent?  Lowest Commission. 

Last reason?  Most knowledgeable. <-- If this doesn't snap you into reality, nothing will.

You'd best start putting your knowledge out there if you hope to attract a client...get a blogsite that rocks, start dropping neighborhood knowledge, get a killer IDX solution...substantiate your value!!  The days of being a prude with your listings and expertise until you had an executed contract are over.

 

I can find out more than you know. 

~70% of respondents polled on 'Information from The Internet vs Information from Agent' indicated that the Net provided information that was as useful, 'different' or more useful than an Agent.  I can only surmise that 'different' means information an agent couldn't or simply didn't provide.  In the Age of Information, lack thereof is akin to being useless.

The ~31% that said The Net provided less useful information than an Agent are part of a 50% declining trend over the past 5 years.

 

You're still (a) very necessary (evil?). 

~95% of respondent sellers still used an agent, which makes perfect sense.  I often state that: While technology won't replace a good real estate Agent, the Agent that properly utilizes technology will replace Agent that doesn't. 

Consider- 74% of 1st time respondent sellers considered not using an Agent, up 46% from 2007.  

 

You can't market your way out of a brown paper bag. 

Of the reasons given for using an Agent only 7% said it was for 'Better Marketing Exposure'.  Ummm, isn't this what an Agent's core value proposition is supposed to be, to market property?  Consumers clearly do not believe Agents can effectively market their property...yet online and offline marketing is the 1st and 3rd highest reason for choosing an Agent.  This is a huge disconnect and opportunity at the same time.

84% of respondent sellers are searching online and 96% Agents polled use print advertising. Helllllooo!?!  Can you say poor ROI, waste of money?  Newspapers and other print media are going out of business because less and less people read them.  Advertising in these dinosaurs is of almost no value going forward.  

Only 57% of agents use multiple photos or a virtual tour as part of an online home listing.  This just blows my mind.  I'd guess that 50% of the 57% that actually use multiple photos look (kinda) like these:

 

Proper Feng Shui can do wonders for a small space.

 

Extra long chain for convenient access to light. 

 

Sweet shower curtain stays with home!

Thanks to MLS Trash Can for the pictures.  Descriptions by me. 

Seriously, an agent who can't manage to market a property with quality photographs should have their license suspended on principle alone.

 

You're being perpetually judged. 

97% of respondents interviewed 3 or more Agents.  50% interviewed 6 or more Agents.  Consumers are getting more and more finicky about who they hire.  Agents better step up how they present themselves.  Better have an impressive resume and a killer suit = a slick engaging blogsite & robust IDX solution. 

Here's a scary thought (depending on who you are): 

Consumers are lurking on your blog, stalking your FaceBook page, following your Twitter stream, viewing your Flickr account, reading your answers on Trulia, Zillow & ActiveRain, evaluating your IDX, the quality of your multi-media marketing, processing how you engage comment threads and otherwise perpetually judging you under the cloak of anonymity.

How are you representing yourself in public and when you don't think anyone is looking?

 

The silver lining in this post could be that 'The Bar' is so low in a consumers eyes, those Agents willing to set aside their perceptions and confront reality are in a great position to capture some huge marketshare.  Take this information and use it to your advantage rather than deny its validity.

Many Agents are out there cleaning up despite this 'depressing' market...Find them, reach out to them, study their successes...I find the most successful people in life are more than willing to share their successes and help others get there too.  Reciprocity is still live and well...