This is a picture of my family on a whitewater trip down the Payette River in Idaho in 2001. My wife has just been ejected from the raft and the rest of us don’t even know she has exited. Note that her eyes are closed, she is unconsious, that may have happened because of the G-force, it was a way for her body to shut down to prevent serious injury from occurring.
Now at first glance one might think this picture does not have a happy ending. It certainly looks like this could be a major incident for our family memories. The photo has enough drama in it that without a clear explanation one could draw their own conclusion as to what the outcome might have been. This picture has been published in a major outdoor magazine, a book and a calendar, without any caption or explanation. Yes, she entered the water unconsious, was carried downstream for several hundred yards under our boat. She did regain consiousness worked her way under the raft to the side of the boat where I caught a glimpse of her life preserver and pulled her back onboard. All turned out for the best, she’s OK.
The economy, especially “housing” is a lot like this picture. For example, many headlines are written and reports given that have a lot of drama to them. Without a clear picture of the whole story we don’t know what the actual events are that led to the circumstances we are in. Most reporting on our economics, including “housing”, have not been fully or fairly reported.
The photo’s headline could say, ” Last Seconds of Life Caught on Camera” or “She’s OK” works too. Well, when the Main Stream Media or our Politician’s rhetoric tell a story only in headline or a :12 sec. sound bite what other conclusion can the general public come to. The axiom, “If It Bleeds, It Leads” works for economic news and housing as well. Investor’s Daily News offers a an insightful commentary on this topic and you can click here to read it.
The Salt Lake Tribune reports today that Utah is now ranked No.2 in the nation to it’s companion Intermountain West State, Wyoming. The news is that appreciation is up for homes in several Western States, just not as high as it was a year ago. That’s OK. If you have lived in your home for more than 3 years, this is great news. And if you bought a home in the last 3 years that’s good news too. Just stay in your home, don’t borrow against the home with second and third mortgages, stay out of debt, don’t speculate, and your financials will be strong, in any market wild or soft.
This just in, “Main Stream Media Cherry Picks Housing Stats“. No, really? Do ya think? You are not getting the truth, the whole truth, and nothing but the truth from your mainstream media. This is a politically motivated angle by the alphabet channels. Read as many varying news sources you can to prove to yourself that the “sky is not falling.” Remember, this is a hate Bush issue. The housing industry is huge to our economy. Spread wild stories about housing and you influence that economy. This just in, the total amount of people affected by the “subprime crisis” is less than .5% of all the mortgages out there. That’s the truth, the whole truth and nothing but the truth.
I’ve spent many blog posts writing about how you should interpret the housing crisis that is not a housing crisis. I met a very successful contractor the other day that is fleeing the Salt Lake Valley for greener pastures in St. George, Utah. He was very negative about the state of our housing. Seth Godin talks about The Dip one must push through to get to the otherside where the pasture is greener or success dwells. The main stream media will not give you an accurate story of what really is happening in our real estate market. Well, some people are telling it like it is, but it doesn’t get the headline it deserves. Jeff Tredgold nails it in his weekly newsletter The Tea Leaf, Domestic ABCs. More for you later.
A true story: I once heard the warranty coordinator for the builder I worked for, at the time, say “If it wasn’t for all our customers, I wouldn’t have any customer service problems”. Wow, how do you work around that? Warranty is generally a problem for the builder and the owner of a new home. The builder does not want to fix anything that has been mandated by state regulation. The homeowner will have to fight with the builder to get the problem fixed. Thus a stalemate arises. If your builder is exceptional, then he is the exception not the rule. So what is the difference between warranty and guarantee? Guarantee is proactive, no questions asked and usually contracted seperately from a real estate contract. A guarantee is definitive - warranties are general and often left up to interpretation, not always in your favor, but the builder’s. Builders should budget for warranty at 1.5% of the sales price of the home. But they don’t, that’s what makes warranty work he is responsible for left to his interpretation, it is poor budgeting that prohibits the builder from honoring and repairing warranty issues. But here is the real problem, if the builder held the trade partners responsible to build the home correctly, there would be less warranty work in the future. This is especially true of, plumbing, final grading and cement work. So ask for a Guaranteed Performing Home. If it is not guaranteed, then who knows what kind of a warranty coordinator you’ll get. You’ll need luck, lots of luck.
1. Dream
2. Smile
3. Anything is possible
4. Experience is what you get when you don’t get what you want.
5. Rejection happens
6. The brick walls are there for a reason: not to keep you out, they let us prove how badly we want things.
7. Have fun
8. Have a sense of wonder
9. Humility teaches
10. Mothers are supposed to love you, even when you pull their hair.
11. Express your creativity, let your children express theirs.
12. Things are just things. People are people.
13. Decide if you are a Tigger or an Eyeore
14. Work and play well with others
15. Have integrity
16. Tell the truth
17. Apologies have three parts
a. Say, “I’m sorry”
b. Say, “It was my fault”
c. Ask, “How do I make it right?”
18. Most people are not pure evil. Wait and people will show their good side.
19. Be Patient
20. Show gratitude
21. Don’t complain, just work harder
22. Play the game hard
23. Live your life the right way and your dreams will come to you.
Undeniably True - see video here
What does the State of Utah have in common with the States of Michigan, Florida, Arizona, Nevada, and California?
In regards to real estate, not a heck of a lot. Because, with the exception of Utah, the other states noted are in a subprime crisis that has seriously affected their housing markets. While the State of Michigan is not a sunshine state like the others, Michigan’s crisis has been impacted largely by the job market. The other states, with the exception of Utah, have experienced a subprime crisis affecting their housing that has been largely impacted by speculation and greed. Investors wanting to make a quick buck by flipping new construction investment properties mostly in sunshine states which tend to be popular destinations. What Utah does have in common with the other states is the subprime availabity. If their were at one time say a dozen subprime products for brokers and consumers to choose from, now there are only two. So a slow down in Utah’s “best in the nation” status is and was expected because of subprime’s limited choices. The lessons that can be learned from this are simply; spend less than you earn, save your money, don’t by more of a home than you can afford, stay out of debt, avoid over refinancing, avoid at all costs 100% loans with 2nd and 3rd mortgages, don’t sign mortgage documents that you don’t understand, avoid subprime mortgages, but rely on conventional and FHA/VA loans. So it matters not what state you live in or what state your mind is in, these practical common sense rules apply to all including real estate investors.
Call it what you want, but whining, complaining, criticizing, and belly aching are problems for us. It is not what made America great. It is not what motivates ordinary people to do extraordinary things. At this present time is an opportunity for those who recognize it and act on it. This will one day be remembered as the “good ole days” by many. One may also even hear in a few years from now people asking, “why didn’t I buy back in 2008 when the opportunity presented itself?” So ask yourself what is presenting itself before you that is an opportunity you can act on. Consider your situation, especially financially, and determine what is best for you not what you are hearing.
When you think of how commerce has been transacted for hundreds of years there are basics that no matter what changes have occurred in technology, pricing, or what you sell, that one must remember. Many consultants, trainers and authors have offered these consistent insights , because they are basic skills one must remember.
1. “Listening” Is the number one preferred corporate quality. It is important across all demographics, 7 to 97. Listening establishes the prospects’ needs and allows you to learn their viewpoint for what is motivating them.
2. “Give me a good reason to want to work with you.” If you have questioned skillfully and listened carefully, you will have an understanding of how to present the benefits to solve the problems unique to their situation..
3. “Show me I am not the first. Show me how someone similar to me was successful ” Few buyers want to feel as though they are the first or the only, so build your customers’ confidence by using third party testimonials, show them a published article and demonstrate that people just like them are happy with their decisions.
4. “Tell me how you will serve me after we are under contract.” People inherently don’t trust sales processes. Think at first that they are there to eliminate you, then build the relationship from there. Convey to them the commitment to customer service is shared by you and your company. Call them often, a basic rule of thumb is, if they are calling you more often than you calling them, you’re not calling them enough.
5. “Convey to me that your price is fair.” Buyers want reassurance that the price they are paying is reasonable and the absolute best value with a ROI. A common misconception is that customers are only concerned with the lowest price. Value is also measured more importantly by your timely delivery, consistent follow up, and commitment to your customer’s best interest.
6. “Don’t argue with me, even if I am wrong, I don’t want you to tell me.” A man convinced against his will is of the same opinion still. And the person who writes the check gets to pay for the opinion.
7. “Show me the best way to pay.” Financial concerns are always an issue; customers need information and help in understanding financial alternatives, especially on “big ticket” items.
8. “Give me a choice. Let me decide, but become a knowledgeable resource for me. Make consultative recommendations. Don’t confuse me. Less is more, too complicated the less likely I am to buy. ”
There are many different ways to buy. Most people are using the Internet to begin the buying process and they will verify what you have told them is the truth by using it. Break this basic rule and they just won’t buy.
9. “Deliver to me what you sold me and stand behind what you sell. If I give you my money and you disappoint me, I may never do business with you again or worse no referrals.” This says it all.
10. “Follow up with me, please don’t fade away.” There are many different ways to follow-up, use them. They don’t want you to leave the process, remember customer service doesn’t end when you accept the check.
Accidently hit your thumb with a hammer recently? Have you ever done it twice within a few minutes. Amateur home repairs are the best chance for this to happen. But the “pounded thumb theory” is manifested when you hit the same digit repeatedly, indeed, after a while it just doesn’t hurt anymore. Hurts the first time, a lot, the fifth time - not so much. We get accustomed to the pain. For example the pain may be real, like filling the car with fuel weekly, pump shock, or more especially what the MSM reports day in and day out. There is so much negativity in the MSM that I am considering becoming a hermit. The negatives are pounded out about the war, housing, subprime mortgages, politics, President Bush, oil prices, our political leadership and general disrespect for anything good. Becoming a hermit is not the solution, but maybe I’ll stop listening to the radio and reading the news online, just long enough to stop the throbbing. And when it does stop, I’ll do what is best for me, my family, my community and my country , not influenced by what or how things are reported by the MSM.