Tip 1: Define and Rate your Sphere of Influence
When is the last time that you took a good look at your contact list? What is the total? What are the categories in that group? Do you have past clients, friends, acquaintances, people you hardly know? Before you do anything else go into your data base and group your sphere of influence in categories.

Do you know who in your sphere is likely to refer to you? Do you know who in your sphere already works with another agent? How many have moved away? Start deleting the inappropriate ones.

Be sure to ask all of them this question at some point: “If you were buying or selling a home do you have a real estate agent that could help you?” If they say “yes” delete them. There is no point in continuing, they are not prospects. By keeping in touch with your sphere of influence as we will describe below, you’ll begin to find out who is an A,B, C, or D.

A= someone likely to refer to you
B= someone who with a little more contact with you, would refer to you
C=Questionable
D= Delete

Tip 2: Send an Item of Value to your sphere each month
In my 14+ years of coaching Real Estate agents to double their incomes, I am amazed at the fact that sometimes their list never gets a mailing. Or sometimes the mailing is not well thought out. I worked with a client today who admitted that the material she was sending to her sphere was standard and boring. We brainstormed about Items of Value that would be interesting, fun and unique. So far she has come up with recipes and inspirational quotes. What do you send to your sphere of influence?

Is it something you would want to receive and find valuable? If so, then I guarantee that your sphere will like it too. How many creative Items of Value can you come up with?

Tip 3: Overcome your blocks to calling your sphere
Everyone I have ever worked with resists calling their sphere.

They tell me things like

• “I don’t want them to think I want something from them”
• “I’m afraid they won’t like me”
• “I don’t want to be like a telemarketer”

The list goes on, but I think you get the idea. What you need to understand is that you’re a giver. When givers give to other givers, they get back. So, in other words, if you send an Item of Value, you are giving, when you chat with them and listen to what’s going on in their lives, you’re giving again. So at the end of the call, say something like, ” Oh by the way, if you hear of anyone even whispering about buying selling a home, please give me a call with their name and number.” Then say, “I’ll be happy to send referrals to your business, as well.” Guess what? You’re giving again.

After doing these calls monthly (after mailing of Items of Value) you’ll begin to know your sphere of influence and they’ll know you. You’ll begin to learn which ones are you’re A’s, B’s, C’s and which ones to delete. Then what will happen is that you’ll be in their stream of consciousness. So you’re the first one they’ll think of when they think of real estate. Don’t be surprised if you get referrals in the first few weeks.

Tip 4: Be in the right mindset
Don’t make these calls if you’re feeling anxious, upset or desperate. Remember, desperation doesn’t sell. So psych your self up in the right mindset. Think of your self as a giver and how happy they are going to be to hear from you. Tip: if you have been thinking negatively, switch your focus to what you are grateful for. That usually puts you in a much better mood to pick up the phone.

Tip 5: Make it a daily ritual
Just like brushing your teeth, calling some people out of your sphere of influence is essential. Even one a day is OK. Call several times a day if you want your income to rise quickly.

Decide when to make your calls and keep at it until you’ve reached the people you were trying to call. Expect that several weeks after doing this; it will feel a lot easier. An extra perk is that you’re going to be deepening some great relationships and you’ll experience the same pleasure of calling them us as you would with a good friend.

Copyright© 2011, Dr. Maya Bailey. All right reserved. For information contact FrogPond at email susie@FrogPond.com.

Protecting Sensitive Data
Are you looking at confidential client information while you’re sipping java at Starbucks or passing time on a flight? According to the New York Times, you may be inadvertently exposing sensitive client information–such as business deals, personnel issues, and clients list–to the general public.  Data thieves target conferences, work commutes, and other public spaces to steal valuable competitive intelligence data.

Running for the Roses
Horse race fans anxiously await this weekend’s Kentucky Derby: mint julep anyone? To get into the spirit, we share a history of top derby icons. And, of course, don’t forget to take a look at the gloriously ostentatious hats. Tell us which Derby icon is your favorite!

Digital Pruning
It doesn’t take long for one’s social media world to get cluttered and noisy. Chris Smith of Inman News offers some great tips to help you “digitally prune” your online world. His free Social Medial Spring Cleaning webinar is here.

Field Guide to License Reciprocity / License Recognition
Field Guide to Working with FSBOs
Field Guide to Transfer of Development Rights (TDRs)
Field Guide to Schools and the Home Buying Decision
Field Guide to Agency Disclosure
Field Guide to Real Estate Office Mergers
Field Guide to Effects of Low-Income Housing on Property Values
Field Guide to Buying vs. Renting
Field Guide to Commercial Broker Lien Laws
Field Guide to Working with Single Home Buyers

Source:  NAR Information Central

The purpose of the affidavit is to prevent fraud by requiring the buyer, the seller, the real estate brokers, the escrow/closing agent, and any transaction facilitator to make various certifications (including that the short sale is an arm’s length transaction and the buyer will not resell within 120 days unless there are substantial improvements). Servicers are required to implement the changes by Jan. 1, 2012, but are encouraged to do so immediately. Each servicer covered by the policy must update its forms to comply with the revised policy.

NAR members are encouraged to make sure they are signing an updated form and, if presented with an old form, are well-advised to request the servicer to update or allow amendments to the form before they sign, to avoid potential liability issues.

Here are the key changes:

• The certification is made based on “the best of each signatory’s knowledge and belief.” Freddie has retained the statement that a signatory making “a negligent or intentional misrepresentation” agrees to indemnify the servicer and Freddie Mac for losses. The addition of the knowledge standard significantly reduces this liability.
• Only a signatory who makes a negligent or intentional misrepresentation, based on the best of his or her knowledge and belief, is responsible for indemnifying the servicer and Freddie Mac for any loss. No signatory is responsible for the certification of any other signatory.
• Although Freddie Mac is requiring all signatories to sign one affidavit, the amended policy no longer allows the affidavit to be an addendum to the sales contract. NAR members are advised not to sign a document implying they are parties to the sales contract.
  NAR appreciates Freddie Mac’s willingness to listen to the serious concerns raised by REALTORS®.

Read the Freddie Mac policy > (PDF: 143KB)
Read the Freddie Mac Bulletin 2011-23 >
NAR’s previous action >
Letter to Freddie Mac >

Week of November 14, 2011

Gobble up these interesting Thanksgiving facts

Here’s a sampling to get you started:

• Sarah Josepha Hale, author of the classic nursery rhyme “Mary Had a Little Lamb,” waged a tireless campaign to make Thanksgiving a national holiday in the mid-19th century.
• Minnesota is the top turkey-producing state in America, with a planned production total of 46.5 million in 2011.
• The average weight of turkeys purchased for Thanksgiving is 15 pounds, which means some 690 million pounds of turkey were consumed in the U.S. during Thanksgiving in 2007.

More interesting Thanksgiving giblets

The reviews are in… but are they real?
Do you read online reviews before you purchase a product, or book a hotel room, or make reservations for a restaurant? How can you determine which review are real, and which are bogus? Here are some great tips.

Murmuration
Nature is truly amazing. Here is a rare phenomena you just have to see to believe. Watch


47% of Congress Members are Millionaires
A status shared by only 1 percent of Americans. Here’s the rundown on our congressional millionaires:

• 36 Senate Democrats and 30 Senate Republicans reported an average net worth in excess of $1 million in 2010.
• In the House, there are 110 House Republicans and 74 House Democrats who can claim millionaire status.

  More on this story here.

The Reality of Augmented Realty
Augmented reality always seems to be the next big thing that never turns into anything. AR is when you have a live image of something – like through your smartphone’s camera – and then the image is enhanced with either more information, images, or sound to give a richer experience. So say you’re walking down the street looking for a good place to eat. You could simply hold up your phone to get a quick overview of ratings from Yelp for all the restaurants in your field of view.

It seems like a great enhancement for real estate listings. At an open house, people could get more info on various features, or if they hold their phone up to your yard sign, they could get the details and a tap to a quick video tour on YouTube. There are already apps available just for this - HomeSpotter is one and ZipRealty has another. But I never see them out in the real world. Is it just my market or is it that smartphone saturation isn’t deep enough to warrant the time and effort to set up an AR tour? Or is it just that there is no ‘standard’ AR app to download that’s going to give you access to whatever info you need. If each real estate firm uses a different app, that’s going to keep the market small and fragmented.

I don’t know if AR will ever be more than a toy, but Starbucks has launched its first AR campaign this week with its smartphone app, Starbuck’s Cup Magic (available for iPhone and Android). Once you’ve loaded the app you are directed to find one of five Starbucks’ holiday characters seen on their cups, in their stores or on their coffee bags. Framing it in your phone’s camera will bring the image to life with a short animation. Tapping on the character on your screen will have it do more actions. I tried it today and thought it was pretty fun. Fun enough that I will make sure to go back to Starbucks to find the rest…and probably buy more coffee than I would. Great marketing.
Source: NAR Information Central

You’re being followed!
It’s probably no surprise that you leave your tracks every time you explore the World Wide Web. Just ‘how’ this happens and to what extent may surprise you. USA Today reports on Facebook practices that show you’re not alone in your Internet travels. More

Here are some more details about the changes coming to HARP:

• Borrowers must be current on their loan and have no delinquencies in the last six months. A borrower can be 30 days late, however, on one payment in months seven to 12 of the past year. Borrowers much have 20 percent or less of equity in their homes to participate.
• Loans must be owned or guaranteed by Fannie Mae or Freddie Mac before May 31, 2009. Borrowers can see if Fannie Mae or Freddie Mac backs their mortgage by visiting www.freddiemac.com/mymortgage or wwww.fanniemae.com/loanlookup.
• The revamped HARP program will begin Dec. 1, 2011, and run until Dec. 31, 2013. Participating in the program is voluntary for lenders.

Source: “Mortgage-Refinancing Program Undergoes Changes,” Chicago Tribune (Nov. 16, 2011)

It’s no secret our nation’s housing markets remain depressed and continue to suffer. While no one thought the crisis would carry on so long, markets are slowly recovering and are in need of immediate policy solutions to address the myriad challenges in order to stabilize housing and support an economic recovery.

We have long maintained that the key to the nation’s economic strength is a robust housing industry. And, we remain steadfast in our belief that swift action is needed now from Congress and the Administration that could directly stimulate a housing recovery.

NAR unequivocally endorses many of the bipartisan ideas and recommendations that came out of the meeting and we wholeheartedly urge Congress and the Administration to undertake their consideration promptly.

In letters sent Oct. 24, 2011 to the Chairman of the Federal Reserve Bank, President Obama, and Congress, NAR provided recommendations and solutions to stabilize and revitalize the housing industry and economy:
Recommendation 1: Do Not Risk Weakening Our Nation’s Housing Markets Any Further

Recraft the Qualified Residential Mortgage rule mandated by the Dodd-Frank Act to include a wide variety of traditionally safe, well documented and properly underwritten products. Requiring a 20% down payment coupled with stringent debt-to-income ratios and rigid credit standards – as defined under the proposed rule by six federal regulators – would be detrimental to prospective home buyers, especially first-time and middle-income buyers.
Restore higher loan limits supported by FHA and the GSEs to provide liquidity in housing markets and to assure mortgage financing options while stabilizing local housing markets. On September 30, the loan limits in 669 counties and 42 states declined. Already, this has had a harmful impact on our fragile housing recovery. Sellers have had to lower their price in markets where mortgages backed by FHA and the GSEs are no longer available. Buyers are confronting higher mortgage rates and larger downpayments because only private mortgages are available in these high-cost markets. In some instances buyers have given up their home search entirely.
Resist proposals that call for changing the tax rules that apply to homeownership now or in the future. Without a doubt, now is not the time to change the mortgage interest deduction or any other housing incentives. Making gradual or targeted changes would send the wrong signal further undermining confidence and further depressing home values.

Recommendation 2: Restore Vitality to Our Communities and Neighborhoods by Reducing the Foreclosure Inventory

Support S.170, The Helping Responsible Homeowners Act, sponsored by Senators Barbara Boxer (D-CA) and Johnny Isakson (R-GA). Their bill would remove refinancing limits on underwater properties for borrowers that have been paying on time, and would eliminate risk-based refinancing fees charged by Fannie Mae and Freddie Mac.
Support bipartisan Senate efforts calling for improvements to the Home Affordable Refinance Program (HARP). Led by Senators Barbara Boxer (D-CA), Johnny Isakson (R-GA) and Robert Menendez (D-NJ), the time is appropriate to enhance HARP and provide refinancing opportunities to at-risk borrowers as an alternative to defaulting on their mortgage loans.
Direct Fannie Mae, Freddie Mac and servicers to prioritize short sales above foreclosures.
Support all necessary foreclosure/loss mitigation efforts to keep American families in their homes. Reology Corporation’s President and CEO, Richard Smith, has proposed a debt for equity approach to help underwater borrowers in trouble keep their homes and lower their monthly payments while lenders take a smaller hit than they would have with a default and foreclosure. We call on Congress to introduce legislation adopting this innovative proposal.

Recommendation 3: Open Opportunities for Private Capital to Return to the Mortgage Marketplace to Foster New Demand among Responsible Homebuyers

Open up the FHA Section 203(k) rehabilitation loan program to investors to encourage purchasing of foreclosed property. This will facilitate the rehabilitation of the existing housing stock and help reduce the inventory of foreclosed homes.
Require the GSEs to temporarily suspend investor financing limitations, especially the limit on the number of mortgage loans allowed for any one investor/borrower (currently 4 for Freddie Mac and 10 for Fannie Mae). This will give small, private investors the opportunity to absorb some of the excess inventory, resulting in the stabilization of prices for existing real estate-owned (REO) properties.

Recommendation 4: Support a Secondary Mortgage Market Model that Includes Some Level of Government Participation

Reject proposals that call for full privatization of Fannie Mae and Freddie Mac. This is not an effective option because private firm’s business strategies will focus on optimizing their revenue/profit generation. This model would foster mortgage products that are more aligned with the businesses goals than in the best interest of the nation’s housing policy or the consumer.

Recommendation 5: We Call on the White House to Hold a National Housing Summit to Articulate a New National Housing Policy and Move the Provision of Housing to the Front of the Nation’s Domestic Agenda

Homeownership matters! It represents the single largest expenditure for most American families and the single largest source of wealth for most homeowners. The development of homeownership has a major impact on the national economy and the economic growth and health of regions and communities. Homeownership is inextricably linked to job access and healthy communities and the social behavior of the families who occupy it. We recognize the serious public debate as to which tax and spending policies will best support the sound fiscal management that our nation requires.
However, we urge caution against dismantling or eliminating vital resources for housing that provide important economic, social, and societal benefits. We call on the White House to empanel a body comprised of public and private industry participants to fashion a national housing policy that is flexible enough to address the varying needs across the nation, whether it’s homeownership or rental housing, production or preservation.

In conclusion, we emphasize again the recovery of the broader economy depends on housing. The last two and a half years have shown that, with housing prices bumping along the bottom, a robust economic recovery will remain exceedingly difficult. The National Association of REALTORS stands ready to work with Congress and the Administration to move this 5-point plan to help restore housing and grow our economy.

Letter to the Fed > (PDF: 139 KB)
Letter to President Obama > (PDF: 138 KB)
Letter to the House of Representatives > (PDF: 138 KB)
Letter to the Senate > (PDF: 138 KB)

A look at the 1 percent
The Occupy Wall Street (and beyond) protests have set off an enduring conversation in the city concerning what has become known as the 99 percent. So, just where do the “one percent” fit in the hierarchy of income? Read

7 billion people . . . There’s an app for that
On Monday, we discovered that planet Earth is now home to 7 billion people. So, wouldn’t you know that with the news of this expansion, that someone would develop an App? Yes, there’s an App for that, and it’s loaded with tidbits of information such as how many humans will inhabit the earth in 2045. Did you know it would take you 200 years to count to 7 billion out loud? Read

What does the future hold?
In the next 5 to 10 years, just how will people ‘get things done?’ Microsoft’s office products division visualizes a future that involves lots of mobile and tablets, gesturing, and seamless integration of information across devices and smart appliances. This is a fascinating video.

Politics takes a holiday on Halloween
The presidential campaign is well on its way, but we still have one year left of debates, political posturing, stumping, ad campaigns, political yard signs and more! So, we thought it might be entertaining to take a break and enjoy a little political humor from the Capitol Steps! Sit back, turn your volume up and enjoy! Listen

2011 NAR Conference Live
Can’t make it to Anaheim for the 2011 NAR REALTOR® Conference and Expo? Experience the event on your computer or mobile device from Nov. 11-14. Bookmark the link here. Follow the conference on Twitter. . . hashtag #narannual.

Sheep Lawn Mowers, and Other Go-Getters
In this challenging economy, sustainable agricultural start-ups are taking hold. From chicken consulting and shipping container grocery stores, to sheep lawn mowers, Ag is going mainstream. Read

Worth reading . . . ‘Oh wow, oh wow, oh wow
A Sister’s Eulogy for Steve Jobs. Read

Watch the NextDoor video

It sometimes feels like a new social network launches every day. For the most part, I don’t see the advantage to most of them. However, one occasionally comes along that has immediately apparent benefits.

As a real estate professional, the most important connections you can make are with local people who can realistically refer business to you or become clients themselves. Consequently, I think NextDoor, a social network that lets you connect with somewhere between 50 and 2,000 households close to your own residence, might be worth a shot. It’s a social network for a real estate pro’s base of probable clients and referrers.

After a yearlong pilot program, the network launched to the public this week. Will it take off? Maybe not. But they have substantial venture capital funding and people like Zillow’s Rich Barton on their board. It’s got a chance.

If you join now, you will likely be the first in your community. You may even be able to draw the borders of your neighborhood and become an “ambassador” for the network. The potential upside of this network is great enough to take a chance on, so check it out.