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Testimonial: Hindsight is 20/20

Here is a testimonial from one of my clients whose house I sold a few months back. Fantastic people, breathtaking home, challenging circumstances – and great results! I really enjoyed myself on this one!

“Marc has exceeded all my expectations as a Professional Realtor.

What impressed me most was not that he has sold my house in less than 1 day for FULL asking price ($719,000),  it was that he would go to great lengths to help us.  To him, selling a house was not just bringing offers to us, it was about HELPING clients. He took part in cleaning our house before viewings, helped us move our stuff out of our house on the closing date, and even helped us load and throw out a cargo van full of garbage at a dump site AFTER the closing date.

He has definitely made our house selling experience better, and was actually MORE VALUABLE than the commission that he and RE/MAX  earned. I would not hesitate to recommend his services to anyone who are considering buying or selling a home.”

Ping and Dominica
July 2010, Kanata

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This Orleans home uses little heat and almost no air conditioning.

The following is an article posted in the Ottawa Citizen on July 10th, 2010. I contacted Patrick Langston from the Citizen to get a piece done on one of my listings – ENJOY!   

As a native of Mexico, Enrique Roman knows something about the power of the sun. So when the architect and urban planner built his home in 1985 on what’s since become the eastern edge of booming Orléans, he decided to keep heating bills in line by maximizing passive solar heat from south and west-facing windows.   

A quarter-century later, Roman’s home is still performing splendidly.    

This past winter, for example, he spent roughly $700 to heat the two-storey, 3,600-square-foot home. And, thanks to the shade from the deciduous trees he planted on the south and west sides of his home 25 years ago, he says, “We hardly ever turn on the air conditioning.”      

Roman’s energy-miser home with its bold, staggered exterior and intimate, Mexican-themed interior is now for sale. Nestled on nearly three-quarters of an acre near the top of a quiet, sloping cul-de-sac, the open-concept home is listed at $719,000.   It’s easy to forget about the huge energy benefits of passive solar heat that families like Roman’s have tapped into. That’s in part because of the attention programs like Ontario’s microFIT initiative garaunched last fall, the program pays for electricity generated by smaller, residential-style producers, most of them using solar photovoltaic systems. Producers sell electricity from roof-mounted systems to the grid at 80.2 cents per kilowatt-hour and buy back what they need at the household rate of less than 10 cents per kilowatt-hour. Under a just-proposed rate change, Ontario Power Authority would pay owners of small, ground-mounted systems who are not yet registered with the power authority 58.8 cents per kilowatt-hour instead of the current 80.2 cents; existing contracts at 80.2 cents would be honoured. But photovoltaic systems can easily set you back $25,000 and up and, unless you have an electric furnace or baseboard heaters, don’t do much to keep you cosy in the winter. Assuming you have a southerly orientation and no large coniferous trees or buildings blocking the sun, passive solar gain, which warms a room’s interior and is later released slowly as temperatures fall, is basically free. Plus, there’s nothing to ever repair or replace.  Canada Mortgage and Housing Corp. says that in a well-insulated home, one-third to one-half of heating requirements can be met by passive solar gain. The difficulty of getting the correct southern orientation for every home in a tightly planned subdivision limits opportunities for production builders, but manufacturers of prebuilt custom houses such as Viceroy Homes (viceroy.com), which go on building lots where orientation can be more flexible, often trumpet their solar-conscious design.  “We’d decided to go for passive solar heating when we were looking for a lot,” says Roman. “When I saw this one, it was exactly what I’d set out to look for. It’s got really great solar exposure, and there’s a hill on the north side and now another house to protect us from the wind. “Also, there’s a collection creek that runs along the south side and feeds into the Ottawa River, so that side will never be developed.” In the winter, the bedrooms, living room and eating area are solar-warmed, thanks to the many high efficiency, slightly oversized windows.Whatever heat the sun can’t provide comes mostly from a small gas heater that resembles a woodburning 

stove. It’s in the finished basement, which would make a dandy in-law suite. On the coldest days, a high-efficiency gas furnace kicks in. Extra-heavy insulation keeps the heat in during the winter and out during the summer. Roman also clad the house in tongue-and-groove cedar, knowing that brick sucks up heat in the summer, just when you least want it. Inside, the upstairs bedrooms have vaulted ceilings so that hot, summertime air stays far from sleeping bodies. The upstairs, which is reached by a winding staircase, also features a double-length walk-in closet and ensuite in the master bedroom. Wood predominates in the house, from the maple butcher-block countertops in the kitchen to the deep ceiling beams on the main level, the gleaming cedar floor and the all-wood windows throughout. “To me, when I came to Canada, the country was all about wood,” says Roman. “I wanted to go all natural, so we built the house out of all wood.” Roman, who says that cookie-cutter subdivisions destroy the social fabric of life and turn people into “a bit of a machine,” is currently designing a solar- and natural-health-based community in Mexico for retiring Canadians.   to his own home, he’s remarkably casual about his solar achievements.  “A lot of people, when they read all the principles behind solar, say, ‘Oh, that’s too much to understand.’  “Well, you do have to know the path of the sun in the summer and the winter. But there’s not really a lot of science involved; mostly, it’s just common sense.”     

 

   

  

Real Estate - ANALYSIS, Uncategorized

The Real Estate Bargain Bin

Where to find the best deals? Here are the best ‘bins’ to keep your tabs on:

 1. Estate Sales

An unfortunate effect of the beautiful lives we all lead, is that one day we will eventually pass away. What happens to a person’s home once they pass? Quite often, the family sells the property and gives the proceeds to whichever direction the will intended, and all the bills and debts are paid.

Why is this an opportunity? Quite often these Sellers are looking to unload their property quickly and just want it SOLD so they can move on – giving YOU, the buyer, an opportunity to walk in and potentially acquire the property for a discount.

2. Power of Sale

High credit card balances? Line of Credit out of control? Budget completely blown? Many people will answer YES to this question, and to these people, sometimes it is just TOO MUCH and they need to sell their homes to downsize and decrease their debt payments. Sometimes these people can’t even pay the mortgage or taxes, and the bank will seize the property and appoint a Realtor to sell it to re-coup the loan!

Why is this an opportunity? Again, motivated Sellers – that’s the key. These people need to sell their home and get their bills paid asap. Money talks, and if you can get yours in front of them first – it might give you an edge.

3. Handyman Specials

 Nice personality, but needs a little lipstick? Look no further than your neighbourhood ‘handyman specials’. These homes come from a variety of sources – from those that can’t keep a house to those that tried to flip but flopped. Pick up these homes at a bargain!

 Why is this an opportunity? Well, a property that is hard on the eyes is often hard to enjoy. A property that is hard to enjoy is hardly valuable, and hence comes at a discount because there is little to no demand in the regular everyday market. These sellers realize quickly that their home wont sell for the average price, and may need simply be in dire need to move on.

 4. Private Sellers

These Sellers have opted to sort through a riff raff of buyers themselves, and learn to pre-qualify them, negotiate with them, and close them. Let me tell you – not as easy as it sounds. Some of them even decide to work exclusively with un-qualified buyers that share the highest level of incompetence and advertise that they do not want agents to bring quality buyers to them!

Why is this an opportunity? Knowledge is power, and these folks, quite often, have little of either. Now there will be the odd exception, however the mass of these sellers did not price their homes correctly and can therefore not defend their price properly, they do not know how to negotiate (and are not even aware of) terms and conditions in a contract that can make a deal even MORE favourable than a low price, and therefore are not best suited to get the best advantages in a deal. Now I have never, and will never be unethical or unprofessional with a Private Seller, however; when I represent a buyer it is my obligation to get them the best deal possible.

Tricks of the Trade: I am able to manipulate the MLS database to search for homes by Seller (i.e. Contains “ Estate” or “Bank”) and can also search by keyword (i.e. Contains “handyman”, “tlc” or “flip”). Furthermore, I can have listings that match these criteria automatically sent to my clients inboxes the minute they are uploaded by other realtors, bypassing the overnight delay by the Ottawa Real Estate board, and therefore giving my clients a window of opportunity to view listings before the public does. This also really limits the homes my clients see to what they really want, instead of filtering through a hundred listings that “might work”. Pretty much any information that is related to a listing, I can transform into search criteria and can sort, sift and organize automatically and have sent out. These aren’t generic searches either (price range, location criteria), I’m talking digging deep and going above and beyond to get the cream of the crop. With regards to private sellers, most are open to working with me once I talk to them about the calibre of buyers I work with and the other ways in which I can help them, but they are really leaving themselves open to all kinds of pitfalls. Not only is pricing an area where they are at a disadvantage, but they are also (quite often) not well versed in legal matters (yes – contracts are complex legal documents), but also in the coordination and timing of all the related professionals that will all play a role in the success of the deal.

I hope you enjoyed the insight into the Real Estate Bargain Bin!

If you would like access to the BINS, and keep your tabs on any of them, simply visit www.RealEstateBargainBin.info

Cheers!

Real Estate - ANALYSIS

Discount Brokerages – Farewell to the Average Realtor?

With the deregulation of the MLS system a possibility in the near future, many discount brokerages have started to spring up, and are getting a great deal of notoriety. Why? Well – to save on commission of course! Why use a Realtor when you can list your home privately? That’s a very good question, and it’s really opening up the eyes of sellers are Realtors alike. I will not turn this into a “why use a realtor” piece, but rather try to offer my explanation of why they have come about, and what their role will likely become. You see – you could ALWAYS sell your home on your own; the first home was sold privately, as were thousands after it. Somewhere along the lines the need for some professionalism to this trade was needed, so regulatory bodies, proper training and licensing came in place. For a very long time, sellers were very happy with the results Realtors were getting – but then something happened. Some Salespeople began doing less and less work, putting signs up and then never being seen again, uploading listings on the internet and sitting idly by hoping for a buyer. You see, in my opinion, many salespeople got into this business thinking it was easy, and once you got your license you could put signs up all over town. Well, times have changed. Sellers started thinking, “I can do that!”, and you know what? They’re right! They absolutely can! It doesn’t take much work to put a sign up!

An interesting fact in my industry is that 5% of the Salespeople make 95% of the sales, meaning that an overwhelming 95% of salespeople make up for only 5% of sales! Some only sell a few homes a year, and some never sell any! I would argue that a large portion of that 95% is the portion that is simply putting up the signs and listings, and is the portion that has frustrating the home selling public, and has therefore brought this discount revolution upon themselves! The top 5% do not want these underachievers in our industry any more than public wants one to sell their home.

You see – the top 5% in Real Estate are true professionals. These people and/or  teams have tremendous systems in place that provide sellers with a full array of services and really know how to get homes sold. Mark my words – no private seller can do the job that these top 5% can. The network, the database of consistent buyer/sellers, the brand power, the advertising budgets, the marketing experience and the negotiating skills of this 5% will bring more money to the table 99 times out of 100 than any private seller. In fact, Discount Brokerages don’t have issues with the top 5% because they know that professional results require professional intervention, and that money spent here is not a cost, but rather an investment– that is a tried, tested and proven FACT that either side will attest to. Discount Brokerages are not trying to argue that they can do better than the top 5%, but rather a portion of that 95% we speak of.

So what to make of these discount brokerages? You know what? I think they will take out a HUGE chunk of that 95% mass of Realtors, and leave the industry with two very simple selling models: 1) Full Service, Highest Achieving and Top Selling Professionals (the 5%), and 2) a few discount brokerages that will offer some combination-type packages to suit whatever the aspects the seller feels they can not handle on their own. This is a GOOD THING and is great news for everybody. For you – the selling public, because you will now have as many choices as you can bare, and for me – the Realtor, because there will always be a need for full-time, full service professionals to rely upon. Not everybody has the time, the knowledge, or the ability to do what I do – or what my other fellow professional Realtors do. The cream will simply rise to the top.

What about those Realtor’s that leave the market, having their piece of the pie eaten up by private discount brokerages? Guess what- many of them aren’t leaving the market, but are likely the very ones that are starting these discount shops! The business savvy ones are going to lead the pack to discount bliss, and yes – many will fall between the cracks.

Consider this: Farewell to the Average Realtor? Or Re-Branding of the Average Realtor?

Real Estate - ANALYSIS

The 4.5 Best Tips To Attract More Buyers and Make Them Pay More For Your Home.

1. Price Your Home Right

This is by far the most important part of the selling process; after all, anyone can sell a house if it’s priced below what the true value should be, right? Heaven forbid you price yourself too high, and then your home might not sell at all. Don’t rely on other comparable listing prices – aim for SALE prices. Remember – properties for sale are also properties that haven’t sold, so why would you base your price in relation to them? You want to SELL, so find out what the comparables SOLD for, and price accordingly.

Try This: Contact the Land Registry office in Ottawa at http://www.ontario.ca/en/ services_ for_residents/STEL02_165696 for sale prices. Another great way to obtain these prices would be to get a Comparable Market Analysis (CMA) from a Realtor.

2. Provide Maximum Exposure

This is Marketing 101: More Exposure = More Buyers = Higher Demand = Higher Sales Price. You need to make sure you are getting as much exposure as possible; an internet posting and a Home Depot sign on the front lawn will simply not suffice in this day and age.

Try this: Spend some time uploading your listing on as many websites as you can, and use keywords in your listing description that will come up in searches. Put an information package together on your property and send it out to the top-selling agents in the area, and leave some at home for potential buyers.

  3. Take Your Home Seriously

 Is there ever was a time – this is it. You want to make sure that your home is portrayed in the best light as possible. Potential Buyers should feel privileged to purchase a home as desirable as yours, right?

 Try This: Clean and de-clutter. Invest in some storage organizers and get your home in order. Revive your home with a Spring Cleaning regardless of the season. If you can’t take great pictures, pay someone to. Professional photography brings out the best in your home, and will give it that WOW factor. 

Have a look at www.FitToSell.ca for ideas!

 4. Focus Marketing on ‘Premium Paying’ Buyers, and Filter out Bargain Hunters

 Why would anyone shop purely for private sales? To find a bargain, that’s why! Don’t attract a swarm of bargain hunters and set yourself apart from the rest.

 Try This: Insist that buyers either bring a letter from their lending institution saying that they are qualified to purchase a home such as yours, or that they are accompanied by a Realtor. Not only should Realtors should only be showing a buyer properties that they are qualified to purchase, those very buyers that are working with Realtors understand that they are viewing homes with commissions ‘built-in’, and are therefore prepared to purchase a home that will have a slight premium attached to it. Which would you rather, a swarm of bargain hunters, or a swarm of premium payers? Realtor’s attract premium payers because Buyers trust the brokerage, feel confident in it’s abilities and reputation, and require professional results. Offer as much money to a cooperating brokerage as you feel comfortable. You will attract the cream of the crop Realtors and Buyers – and the Realtors will have more incentive than ever to close a deal with more commission at stake, so you may very well be able to re-coup the commission in your price and/or negotiations.

 4.5 Consider a Professional

Remember, homeowners have ALWAYS had the ability to sell their homes privately, right?

So ask yourself – why was the industry ever created in the first place?

 A few reasons include (but are not limited to): 

  • Professional execution of the four points listed above
  • Strong negotiations that retain money and protect interests
  • Ensuring the coordination and cooperation of all parties involved (lawyers, inspectors, appraisers, engineers, other Realtors, other buyer/sellers), so that a deal is not fumbled due to miscommunication or incompetence.
  • Professionalism and experience to protect clients from various legal pitfalls.
  • Proper completion of various legal documents
  • Full time efforts and advocacy for properties

Would you spend a dollar to earn two? With a good Realtor, commission is an investment that will NET you more money at the end of the day (Notice I specified – with a GOOD Realtor?).

After all, what is more important – how much you invest in a professional, or how much money you NET?

 I trust this information was helpful to you! If you have any questions or concerns, please do not hesitate to contact me at any time personally at (613)868-4383

For a FREE and NO-OBLIGATION Comparable Market Analysis of your home, email me at MarcEvans@remax.net

Ask about the 6 smartest home renovations!

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Luxury Home Sales in Ottawa Experience Dramatic Rebound in 2010.

I’ve been noticing that the market has been pulling my business towards those types of properties that require much more creativity and effort than the traditional home requires. Those that are investment properties, problem properties (aka opportunities in diguise), and my most interesting aspect of business – Luxury homes. I have been active in the luxury home market this year, and it is unlike all segments of Real Etate I have experienced thus far. The best way to sum it up would be: when there is lots of money involved, there is a lot of risk, a lot at stake, people are on their toes and emotions and levels of intensity are VERY high.

I received an email this morning from RE/MAX about the luxury home market, and I would like to share it with you. Some of you (like me) are no doubt in awe of some of the beautiful luxury homes in Rockliffe, Rothwell Heights or the Glebe even. Here we will look into this market segment a little closer to get a good look at how it has been developing. Enjoy!

Luxury price point: $750,000

 Demand for luxury properties in the nation’s capital continues to climb unabated, with a record 42 sales posted in the first quarter of 2010. The number of homes sold over $750,000 is up 121 per cent over the 2009 fi gure of 19 for the same period, and 27 per cent over peak 2008 levels. Home-buying activity remains unusually brisk in the upper end, bolstered by strong consumer confi dence and low interest rates. Even concerns over government downsizing have yet to impact sales in the top end of the market. In fact, nine homes changed hands over the

$1 million benchmark between January and March, up from four one year ago. While just under 200 properties, priced in excess of $750,000, are listed for sale, some key areas could benefi t from additional high end product. Older, established neighbourhoods such as Rockcliffe, Manor Park, Rothwell Heights, and Glebe are highly sought-after, but so too are properties in Manotick, along the Rideau River and the shores of the Ottawa River. Many suburban properties, especially those that offer estate lots, are also coveted. Multiple offers are a factor in the market, but they tend to occur on distinctive properties.

 The most expensive single-family home sold so far this year was priced at $1.949 million, while the priciest condo fetched $1,375,500—neither sale setting any record. An estate property in Rockcliffe is the highest priced MLS listing in Ottawa at present at $6.99 million. The upscale condominium is gaining ground with empty nesters and retirees in the city’s downtown core—a reality best illustrated by the upswing in sales.

 Design has improved tenfold in recent years, with newer, architecturally–signifi cant units that offer innovative fl oor plans and countless amenities moving quickly. The highest-priced condominium is currently listed for sale at $1.7 million in Downtown Ottawa. Diplomats, executives, politicians, entrepreneurs and professionals once again lead the charge for luxury accommodations—and the trend is expected to continue for the remainder of the year. Strong economic fundamentals will continue to support a vibrant housing market—and a robust high end—throughout 2010, with sales forecast to shatter the existing record set in 2009.

Video at http://www.remax-oa.com/MediaNewsroom/Pages/ReadMore.aspx?ItemID=57

For more information please visit www.remax-oa.com

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30 Happiness Tips: Program Your Life for Optimum Enjoyment

For many of us, the goal of life isn’t ultimate wealth, a massive amount of stuff, or the perfect car. It’s happiness, plain and simple.

Some people may be created happier than others, with enjoyment of life programmed into their hardwiring. For others, getting to happiness isn’t always that simple. You weren’t programmed that way.

But like any programming, yours can be changed. Rewrite your life program to include as many of the following tips as appeal to you, and the ultimate goal of happiness can be yours. If you’ve already achieved complete happiness, well done!

  1. Experiment to find out what makes you happy.
    Different things make different people happy. If you aren’t sure what your hot spots are, experiment. Try different things out. Find out what you enjoy most. The answers just might surprise you. Try a few of the following for starters.
  2. Surround yourself with others who are happy.
    If you are around angry, depressed or sad people, it will transfer to you. You can’t help it. But if you’re around people who are happy, that will also transfer to you. You’ll also learn their habits, and learn to react the way they do when something bad happens. Slowly weed out the negative influences on your life and replace them with positive ones.
  3. Count your blessings.
    When something bad happens to you, try not to focus on it. Instead, take a minute to count your blessings. Everyone has good things in their lives, whether it is health or loved ones or whatever.
  4. Gratitude sessions.
    Along those lines, it is a good practice to have a daily gratitude session. Think about what you have to be thankful for, and silently thank those who have done something good for you in some way. If you have time, take the time to call them or email them to thank them.
  5. Think solutions.
    Instead of thinking about problems, move to the next step: how to solve it. When someone says to me, “Oh, this is so hard,” or “Oh, I can’t seem to do this,” or “Man, we don’t have any more of that,” I just ask them, “Well, what’s the solution?” If you develop solution-oriented thinking, you’ll be much happier.
  6. Connect with others.
    As much as possible, spend time with those you love, and with others who you enjoy. It could be a simple phone call, or a short visit. Or take a day with the person or people you’d like to spend time with. Have a conversation, do things together, be intimate.
  7. Accept things.
    We are often unaware of it, but we usually want things or people or ourselves to change. And that’s a sure way to lead to unhappiness, because we cannot control the world. We have to accept things as they are, try to understand them, even love them. Including and most especially ourselves: accept who you are, allow yourself to be yourself, try to understand and love yourself. Then do the same with the others in your life.
  8. Take time to savor life.
    Instead of rushing from one thing to another, resolve to have less to do each day, less appointments and fewer tasks. Then do each thing slowly, with mindfulness and ease, and try to be present in the moment. And truly enjoy whatever it is you do, from talking to eating to walking to just sitting.
  9. Notice small things.
    Along the same lines, try to notice when you feel good, or you’re not suffering, or you are tasting something really delicious, or you feel something cold or hot, anything. Noticing the little things will help keep you focused on the present.
  10. Treat yourself.
    Take a few minutes each day to give yourself a little treat, whether that’s something like chocolate or berries, or a bubble bath, or walking barefoot in the grass, or taking a nap. Whatever it is, treat yourself. You deserve it.
  11. This shall pass.
    When bad things happen, and you’re having trouble accepting it, think to yourself the same thing the ancients did: “This, too, shall pass.” And it will. And you’ll survive.
  12. Volunteer.
    When you give to others, whether that’s money or the stuff you no longer need or your time and love, you become happier. It’s true. Take 5 minutes today to call a charity and volunteer to donate some time sometime this month. It will make a big difference in your life.
  13. Follow your passions.
    If you do what you love to do, especially for a living, you wil be extremely happy. This is one of the best things you can do. If it seems impossible, don’t give up. Others have done it and you can too.
  14. Look at your achievements.
    Instead of looking at what you haven’t done, or what you’ve failed at, think about what you have done. Many times that’s much more than we realize.
  15. Laugh.
    Just the simple act of laughing can make you happier. Watch a funny movie, tell jokes, read a book by Douglas Adams or Terry Pratchett, go to humor sites on the Internet. And laugh your head off.
  16. Realize that you deserve it.
    You deserve happiness. That simple statement is actually profound for many people, as they don’t believe they really deserve to be happy. It’s often unconscious. If you feel that within yourself, you need to first realize that you deserve happiness. Repeat it if necessary.
  17. Get into the flow.
    There is a state of doing known as Flow, which is when you completely lose yourself in a task and forget about the world around you. It leads to happiness, and productivity. Set yourself up for it by clearing distractions, giving yourself a challenging (but accomplishable) task, and making it something that you like doing. Then try to lose yourself in that task.
  18. Have a goal.
    Too many goals will lead to ineffectiveness. Try to choose one goal and really focus on it. And work to accomplish it. Goals lead to happiness, if you make progress on them.
  19. Get inspired.
    Take time to read blogs or books or magazine articles about success stories related to what you want to do. It will get you energized.
  20. Celebrate.
    When you do something right, when you accomplish something, when you feel like it, reward yourself. Celebrate. Have fun, and pat yourself on the back.
  21. Autonomy.
    Try to have at least one area in your life where you have autonomy. It’s best if this is at work, but if not, find another place, such as a hobby or civic activity. You need to be in control of what you do to be happy.
  22. Spend time doing something you love.
    Make room in your life by eliminating some of the commitments you don’t really like doing, and replacing them with something you truly love.
  23. Show little acts of kindness.
    Each day, try to be kind to others in little ways, opening doors, smiling, giving up your place in line.
  24. Exercise.
    Just a short walk or run could lift your spirits and reduce stress. Nothing difficult. Just get outside and move.
  25. Catch negative thoughts.
    Monitor your thoughts. When you catch negative ones, try to think of something good instead. Corny, but it helps.
  26. Jealousy doesn’t help.
    Many people obsess about others who are successful or happy. That gets you nowhere, fast. Instead, be happy for them. Then focus on yourself, and what you do right.
  27. Stop watching and reading news.
    Sure, this sounds like a head-in-the-sand suggestion. But really, if you give this a try, you won’t miss a thing. And instead, you can focus on reading books and listening to music that lifts you up.
  28. Learn something new.
    It’s strange how many of us are afraid to try new things, or admit we don’t know something. But learning new skills or new information is one of the most fun things there is to do. Give it a try.
  29. Check out nature.
    Go and watch a sunrise or sunset. Watch the water, whether that’s a river or ocean or lake. Watch the stars, or the clouds. Watch animals. Watch people. Watch children. And be inspired by it all.
  30. Laugh some more.
    When you are in the middle of a bad situation, look around you, realize the absurdity of the situation, and just laugh. In a year, no one will care. In two years, you’ll be laughing at this anyway. So laugh now, and be happy now

Original Source:www.dumblittleman.com Written for Dumblittleman.com on 09/04/2007 by Leo Babauta and republished on 4/11/10. Leo offers advice on living life productively simple at his famous Zen Habits blog.

Thought Process - THOUGHT PROVOKING

The man who defends himself in court has a fool for a lawyer.

One thing that gets to me is how some Salesman position themselves. Many of them, if not MOST of them, position themselves as middlemen that are merely a commodity that is interchangeable with their competition. What I mean is, there is this mentality that because they are in the middle, they are entitled to something strictly because of that, and that is the only real reason they exist – like they are some sort of gateway to the desired end result the customer desires. Really? Is that all you are? Well then, why WOULDN’T I try to find some way around this pain in ‘my side’ hurdle that is a salesman? Well – you would, and you should – if that is all the salesman is in your particular situation.

The best part of all, is the tactics these ‘salesmen’ use to get the vast majority of their business – and that is to negotiate on price. Everyone is so worried about price. “How much will it cost?” or “How much will you charge?” are things that are debated in the ‘price debates’. Come one now. Have some vision! What about how you are going to profit from a deal? Price only lasts for the second you shake hands and satisfies your ego – what about the effects the deal will have on your current situation and your goals? Will it put you in a better position and closer to where you want to be? It reminds me of those fast food commercials that have been playing around with this very idea – you know, the ones where the guys are around the lunch table and one of them is eating this tiny little burger and miniature fry – looks over at his colleagues and says “5 bucks!”, then the colleagues swallow a bite of their large Subway sandwiches (or whatever they are) and say “5 bucks!”. What a genius that price-driven shopper looked like! Did he get a deal or what? You know the old adage; you get what you…….  This is compared to the value-driven shopper that looked for how much he could benefit from spending his money. He saw an added value to his decision, and made a wise choice.  I know the example isn’t perfect because they paid the same thing, but the idea is what the motives were behind the purchasing decision.

Getting back to the larger picture here – lets say you are talking about a major purchase that will affect the lives of you and your family for years to come. Are you FOCUSED on a few thousand bucks? Or are you focused on the best benefit for you and your family, and yes – how much you will PROFIT from the deal. Sometimes it costs a little more up front to get a better end result. And what if a Salesman’s higher commission and subsequent harder work and better results actually earn you MORE profit than you would have with the cheaper priced competitor? Salesman A costs $10 and earns you $20, but Salesman B costs $100 an earns you $1000 – which would you choose? “Uhh… I only paid $20 for my salesman, and you paid $100! I got a better deal!” That doesn’t make any sense, does it? So why are people so focused on the up-front price?

Example: You get charged with a crime that you did not commit, and the potential sentence is a few years in jail and lots of probation (not sure how that works, but sounds about right). Do you show up and defend yourself? Do you take the court-appointed lawyer? Do you shop for a lawyer based on price? Or do you shop for the best lawyer you can afford that will deliver RESULTS? The saying goes –“ The man who defends himself in court has a fool for a lawyer”. O.J. Simpson + Robert Shapiro and Johnnie Cochran = Not Guilty.  Infer away.

Why do people buy cars with 20+ airbags and highest safety ratings, when there are other cars that will get them from A to B for half the price?

Exactly.

 Back to this price negotiating tactic. Put yourselves in a Salesman’s shoes. A customer comes to you and says they are interested in a product that you can provide, and you are in a position to make sure they get the very best product that suits their needs, and provide them with such a good service that they will be completely satisfied with you, have rave reviews about you and potentially turn into repeat and/or referral business. You have the ability to over-deliver, add your own ‘elbow grease’ to get them a better deal than anywhere else, and build a meaningful business relationship based on success and good business. Now you go through all of your bright ideas to think about how you can help them profit the MOST from the opportunity in front of you, and you open your mouth and say, “I can do the job for lower commission to save you some money”.

 Really? Is that how valuable you are?

 Why don’t I ask Bob over here right next to you if he will do the job for ‘your price minus fifty bucks’? Cause apparently that is all you have to offer, so let me explore how MUCH I can profit.

 See where this goes? Slippery Slope anyone?

Now rewind a minute or two and think for a second. You realize that the customer isn’t exactly sure what they want, and you know you can help them determine the exact need you have to address, put together some options for them that will work, and go the extra mile to find a great deal somewhere (maybe be proactive and try to drum up some supply for them from a unique source) and follow through to make sure they have everything they need, and they have satisfied all those needs and wants, and even a few they didn’t know they had or needed.

No will Bob do that? I don’t think so. Bob is simply a middle man and is about as creative as a doorknob.

Don’t be Bob.

Don’t look for Bob.

Don’t look for what is over his shoulder and wonder how far backwards he will bend to reach and get it for you. He might grab whatever peg he can squeeze into the hole, and then forget you the second you turn around. Who? What?

Look for the salesperson with the ability to listen and take the time and effort to get you what you need. The one who can explain your options and is willing to take a risk and put in legwork to get you the best of those options.

Does that make sense?

I’m just frustrated with all the Bob’s I’ve been meeting and seeing around lately.

No offence if your name is Bob. Or Rob for that matter.     🙂

Happy Buying!

Cheers

P.S. Havent written a blog in a while – I’ve been pretty darn buys and got carried away, so I apologize to all the readers and those of you who enjoy a could debate. You are all a great source of information and I promise to make a better effort to engage you more often! If you have any questions or concerns, or want a friendly and intelligent debate – contact me anytime!

In the name of progress…..

Uncategorized

Cashflow 101

The Golden Rule in life is “Do unto others as you would have them do unto you”.

In business, the Golden Rule is “Cash is King”.

Seems like such a common sense thing to say, but it is surprising how many people forget about this basic rule and tangle themselves up in all kinds of financial messes. To be honest, this rule doesn’t just apply in business, but it applies in personal finance as well. No matter who you are, where you are, or what you are doing – if you don’t have cash – you’re not going far. Whether you work part time and have minimal expenses, have a JOB and a regular routine, or are an entrepreneur struggling for liftoff – CASH IS KING.

When people speak to me about their financial aspirations and how they can’t seem to get where they want to be, I usually ask them about very simple things to see if they are aware of (and following) basic rules. These questions revolve around budgets, revenues, expenses, and CASH. Im shocked to see how many people arent even aware of what their monthly expenses are! In my opinion, the very first thing people need to grasp is an idea of what their monthly ‘numbers’ are, and then make some adjustments and a budget right off the bat.

I am also a big believer in paper over plastic. When you get paid – take out the part of your budget you have allocated to spending in CASH and keep it in your wallet/purse – and use that and only that amount until you get paid again. Debit and Credit cards make a whole lot of no sense to me. Debit cards are easy access to money that receives no interest, and Credit cards aren’t even your own money that is borrowed at high interest. PAPER over plastic.

Another great tidbit is PAYING YOURSELF FIRST. Take some CASH and put a set amount away in some form of savings every time you get paid. EVERY SINGLE TIME. Your single most important bill should be your own personal savings. What is more important? Your Rogers bill or your path to financial freedom? If your Rogers bill is really that important – you will find a way to pay it. And besides – they will come looking for the money!

This past Christmas, I asked my wife to buy me Rich Dad Poor Dad by Robert Kyosaki. I admit, I was a little naive and thought it was a very simple book that touched on no-brainer concepts of personal finance. In hindsight – I was right! It is full of no-brainers. The funny thing is that most people aren’t even aware of these no-brainers, and not to say people have ‘no-brains’, but we really aren’t tought how to properly use cash in our everyday lives – and as a result arent even aware of these very basic rules and guidelines to using CASH. In my opinion, people need to view CASH as a tool – or even better – an employee. They need to view CASH FLOW as ‘work that is consistently getting done on their behalf’. The thing is, we spend most of our lives learning how to get an education, a good job and how to work hard to get lots of CASH – but when did we ever learn how to have CASH work for us? I have a degree in business, and I never once learned it! It took a book (from an author who admits that he does not have any incredible writing skills) full of a bunch of no-brainers to make me say “DUH! That makes SO MUCH more sense!”

One of the major lessons Robert Kyosaki touches on is the mindset of the poor and middle class, who work hard and save up to buy toys for themselves (clothes, cars, boats, jewellery, whatever) – which are really just liabilities (items that cost money and earn you nothing in return). Then there is the ‘rich mindset’ that saves up to buy assets (which earn you money) and then use THAT RETURN to buy toys. The difference in mindsets is DELAYED GRATIFICATION. My generation is one that wants everything now. Everything is fast paced, high rolling and instantly gratified – whereas mindsets of discipline, hard work and long-term reward are few and far between. If people can get their heads around the concept of using their budget and CASH as tools to invest in assets that will earn them money, they will be able get out of the vicious circle of increasing debt, more hard work, longer hours, more purchases, more debt, longer hours, etc etc etc. Robert Kyosaki calls this ‘the rat race’. 

A few quick examples: One of my old ING accounts says: “You have earned $700-and-some since becoming a saver!” To me that says, “Here is $700-and-some just for being smart and putting your money here for a while. Go ahead and spend it, and when you get back, there will be another $700-and-some.”

A better example – Investment Real Estate. 3bdrm condo for 170K, mortgage payments, property tax and condo fees for $1000 a month all-in. You purchase and rent out for $1250 a month. You get $250 a month for ‘managing’ the condo. $250!!! – that’s not bad at all! Now if you wanted to buy, say, a new entertainment centre and finance it for $75 a month – well guess what? Your CASH FLOW just ate that bill and is paying for it! Your ASSET just bought you a new entertainment centre!

Fast forward a few years and your monthly $250 ( + legal rent increases over time) and strong budget have been helping you manage your financial affairs, and you have been PAYING YOURSELF FIRST – and all of a sudden you find yourself in a position to purchase another investment property. This time, you are a little smarter, a little savvier, and know how to keep a property in shape and tenants happy. You find a better opportunity that may require a little more diligence and effort, but your reward is now another asset that earns your $300 a month positive CASH FLOW. Now you have $550 a month in passive income to help you along! How much faster are you going to progress to your goals?

Can you see the difference between the ‘Rat Race’ of work-earn-buy-work-earn-buy VS work-earn-invest-buy-grow-work-earn-invest-buy-grow? They are both cycles that take off in a direction and can really shock and surprise you – but one is a path to liabilities, debt, and frustration – while the other is a path to assets, CASH FLOW, and financial freedom.

To learn more about investment real estate, whether it be entry level or not – please don’t hesitate to contact me. I have a consistent client base for this kind of thing – and I would be more than happy to introduce you to how it works on a more detailed level. Consider the professionals in mortgage finance, personal finance, other forms of investment – the process is really deliberate, informed, and successful.

The second step is much easier than the first.

www.MarcEvansRealEstate.com