Aliso Viejo, CA – February 15, 20096 It’s that time of year once again!

 

After studying for a number of years to become a CPA I was planning on specializing in taxation.  But when graduation day came I elected to go in another direction.  One of the things that helped prompt that decision was the thought of spending a huge part of my life trying to keep up with the changes in the IRS code; not a pleasant thought even today.  Then again flying was a much more exciting challenge than sitting behind a desk.

 

Can you imagine trying to ensure that your client’s tax returns are not only accurate but are generating the maximum financial benefit without a firm grasp on all the “current” changes to the tax code?  Failure to keep your knowledge of the code up-to-date would no doubt have an impact on your level of income and it could very well end up with significant legal and financial ramifications.  I guess the same thing could be said for the legal profession itself – you don’t keep up with the changes in the law and your client goes to jail.  In either case it’s not a pleasant thought.

 

In ruminating on this last week I was struck with the thought that the real estate industry is also not exempt from that issue.  No, I’m not talking about tax advice.  We are told from day one to stay away from tax and legal issues.  What are we admonished to do?  Refer them to their attorney, CPA or tax specialist.  But there are some areas that, if we are professionals in the industry, we are expected to address.  Probably the most critical is the changing market.

 

 I doubt there is anyone out there that can’t recite the exact market numbers and current conditions for their customers.  But how many can relate what is happening in the market to the REO of Short Sale process? 

 

Just like the CPA or the attorney, we are expected to stay on top of all the changes affecting our industry.  Certainly we are falling on our sword if we can’t at least professionally answer a question in areas like these.  After all, the customer expects us to know.  Put it another way … with nearly half the transactions in the country involving a distressed sale we better know.  In fact, many consider it negligence to hold ourselves out as professionals and not understand the workings of our industry.

 

Now, as I’ve stated before, you don’t have to be an REO or Short Sale specialist, just like the CPA who doesn’t do tax work.  But at the same time, that CPA has a working knowledge of the tax system so that he can discuss the issues with his or her client and get them referred to the proper person. 

 

We’ve talked about it before – the industry is changing and the customers aren’t the same today as they were 5 or 10 years ago.  Their wants and needs are different and the level of knowledge they bring into the process is light years ahead of those in the past; and it’s growing at a very rapid rate.  The push being initiated by NAR to move “you” out of the center of the “transaction” and into the center of the “conversation” is going to pass you by if you “can’t” hold that conversation.  Can you afford not to expand your “value added” services?

 

It doesn’t matter in which niche of the industry you specialize, you still need to understand and be able to communicate with the customer concerning the other areas.  And the primary reason … survival!

 

There are thousands of Realtors^® that have gotten this message and are well on their way to transition into the new way of doing business.  Like the country doctor of years gone by - the general practitioner who treated the general medical issues.  He also kept up with the latest procedures and changes in order to ensure that his patients got the best care.  If you choose to continue doing business as usual, you will be hanging on for a few more years like the country doctor who practices medicine the same way he did 30 years ago.  But make no mistake about it – there are Realtors^® that have chosen to maximize their knowledge to serve their clients and enhance their revenue potential accordingly.

 

Perhaps spending more time on improving your knowledge base and a little less time trying to figure out blogging, twittering and social networking might be a good idea.  Don’t get me wrong – they are powerful tools and have their value, but your true value is the knowledge you possess and can effectively share with your customer.  Yes, learn how to communicate with tomorrow’s customer – just be sure you have something to communicate.

 

And since the next few years are going to see over 50% of the transactions involving distressed houses you might want to spend some time and learn what short sales are all about.  It’s a pretty safe assumption that you are going to have a lot of buyers coming to your door with short sales on their mind.  After all, doesn’t everyone want a bargain?  You might want to check out the Certified Short Sale (CSP) professional course that can be taken online.  Maybe you will come away with the same revelation that Gary Herrera of Keller Williams had … After attending this course, I am no longer going to blindly turn down short sale listings.  Actually, I’m going to start seeking them out!  The best part of the course was learning how to analyze properties to determine which short sales may actually close. What a confidence booster!

 

To learn more take a minute and visit Earn More Commissions In A Downturn Market | Certified Short-Sale Professional