First . . . My disclaimer . . . I am a Real Estate Principal Broker of a firm I solely own (Pareto Realty). If you’re a REALTOR and you are not affiliated with Pareto Realty or Pareto Reserve, I am not YOUR Broker so if you want clarification on any of the below, be sure to consult with YOUR Principal Broker. While I’m at it . . . I’m not an attorney either . . . This post should not be considered to be “Legal Advice” – Contact an attorney with any tort related questions

Every so often, a listing agent will intentionally allow a listing to expire . . . or withdraw it for “Strategic Reasons” with full permission from the client (Owner of the property). Reasons might be to cease showings while repairs or staging happens so as to re-list later . . . or the Owner may have had a family event (Birth, Death, etc) that necessitates a Break from showings.

Just because the listing expires or is withdrawn from the Multiple Listing System does not necessarily in and of itself mean that there is no longer a contractual client and/or close personal relationship between the Seller and the Listing Agent.

Some Real Estate Professionals “work expired and withdrawn listings” which means that they pay attention to the housing inventory and contact the owners of houses which fall out of the MLS. If done legally and tactfully, this is not a bad way to find new business, .

After all –  if the listing expires (and so does the listing agreement), the owner may very well be in the market for a new agent . . . there’s nothing wrong with standing up to be noticed.

My caveat is this: as agents go about this practice of contacting expired and withdrawn listings, some become a tad overzealous and risk stepping over legal and ethical boundaries . . . 

As we ask Buyers at Open Houses or on sign calls “Are you current working with an agent, and have you signed a representation agreement?“, REALTORS in pursuit of Expired or Withdrawn Listings (Sellers) should verify that there is no existing Exclusive Right to Sell Listing agreement before they launch into any level of solicitation for the listing of the house.

Miss this step as you tackle Withdrawn/Expired listings, and you risk committing what is known in the legal world as Tortious Interference (See this defined below). Ignorance is not a good defense . . . All Real Estate Professionals should know to ask this question as required by law and the Code of Ethics.

Furthermore, some agents may slip into violation of the Code of Ethics and Standards of Practice of the National Association of REALTORS (Click the link to view the entire code) by stepping out of bounds with off-hand, disparaging comments about the initial listing agent.

I did a little digging into our code . . . Specifically:

•  Article 15 
  REALTORS^® shall not knowingly or recklessly make false or misleading statements about other real estate professionals, their businesses, or their business practices.
• Article 16 
  REALTORS^® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS^® have with clients.
  

Then I dug into Google for information on Tort law and found . . .

From Wiki:

“Tortious interference, also known as intentional interference with contractual relations, in the common law of tort, occurs when a person intentionally damages the plaintiff‘s contractual or other business relationships . . .

Tortious interference with contract rights can occur where the tortfeasor convinces a party to breach the contract against the plaintiff, or where the tortfeasor disrupts the ability of one party to perform his obligations under the contract, thereby preventing the plaintiff from receiving the performance promised. The classic example of this tort occurs when one party induces another party to breach a contract with a third party, in circumstances where the first party has no privilege to act as it does and acts with knowledge of the existence of the contract. Such conduct is termed tortious inducement of breach of contract.

So . . . By all means, work expired and withdrawn listings for new listings . . .

Just be sure:

1. that you can legally solicit the business
2. to take the high road with anything you say about the prior REALTOR

Does this mean I’m a “Droid-Head”?

I can’t get away with teasing all of the Smartphone users in the world any more.

I held out for as long as I could, but my trusty Motorola workhorse phone with slide out qwerty keyboard was starting to fail . . . getting clumsy with internet . . . battery life shortening more every day . . . and I found myself wanting MORE.

I fantasized about how liberating it would be to be able to instantly access the internet from anywhere with a few silent taps on a glassy screen . . .

I marveled at the notion of being able to acquire “apps” for that (Whatever “that” may be)

Last week, I bought the darned thing with resolute confidence and strolled out of the store with chest puffed out – chin up.

Got in my car, started the engine . . . and the thing began RINGING . . . Sadly, I didn’t know how to answer it, so I witnessed my first “missed call”.

Then panic set in . . . UH-OH . . . What about my CONTACTS?

WHERE ARE THE INSTRUCTIONS?

I ravaged the box . . . no instructions whatsoever . . . There I was with a device I was convinced was smarter than I . . . and nobody had my back.

NOTE: I am writing this blog post on day 9 of my ownership of this technological gizmo – The prior 8 days have been filled with “AHA” discoveries.

It’s like a bottomless box of chocolates . . . I never know what I’m going to get . . . and each time I need this thing to do something, the answer shows up.

the good news was that the instant I logged onto Google, the darned thing automatically loaded all of my Gmail contacts and Calendar . . . I was INSTANTLY in business (Very happily).

This little gem has already made a HUGE difference in my productivity . . . It seems that all of the Google integration I’ve worked so hard to learn works seemlessly with this hand-held thing.

So . . . If you can’t beat them – JOIN them!

I stuck to my guns as the curmudgeon – “BAH-HUMBUG! I DON’T NEED A SILLY SMARTPHONE to be complete!”

Unlike QR Codes . . . these smartphones seem to have legs . . . They’re gonna getcha if they haven’t already.

I fell . . . or did I soar?

Just sayin’

Best,

b

We’re in a market in which pricing a house RIGHT can be very enigmatic.

NAILING a price happens by gut instinct more often than we care to admit.

The more anal retentive amongst us are hell bent on finding sufficient “Comparable Sales,” hyper analyzing current inventory and market conditions, and peering into crystal balls.

In many segments of the market there are NO comparable sales to consider . . . while in other segments, there might be TOO MANY with a wild array of values.

“For this house, I could justify a price of $200,000 and a price of $275,000 . . . and could reasonably assure the Seller that it will sell . . . The key variable being the time it will take to sell (But that doesn’t seem to be very predictable either.”

We’re REALTORS!

We are the PROFESSIONALS!

Shouldn’t WE know how to nail a price better than the average bear?

How often do we get it right the first time?

Tomorrow Wed 1/25, I’m leading a session (mastermind) about “Actually SELLING a house (instead of just “Listing a house for sale”), and I know that pricing is a critical component and is perhaps the most slippery in this “Now Economy” (Contact me if you’re interested in coming – only a few seats left – It’s FREE and includes FREE Lunch provided by Chris Bontrager with RiteRug)

Historical data isn’t always helpful . . . Prior sales are all over the board in price and condition and ownership (REO, Short Sale) . . . and what the current owner paid for it and when is completely irrelevant to EVERYONE (Including the prospective Buyer).

How do we simplify this conundrum?

Seth Godin offers some simple advice in his recent blog post:

The pricing formula (S&S)

Good morning!

How’s your personal Faith in yourself?

. . . In other people around you?

. . . In leaders of your organization?

. . . In Leaders in your community, City, State, Nation?

Is there a difference in “Faith” and “Blind Faith?”

Faith:

1. allegiance to duty or a person, loyalty : fidelity to one’s promises, sincerity of intentions
2. belief and trust in and loyalty to God, belief in the traditional doctrines of a religion, firm belief in something for which there is no proof, complete trust
3. something that is believed especially with strong conviction; especially : a system of religious beliefs

“The lizard brain seeks constant reassurance. It will wheedle and argue and debate with the rest of your head, pushing for one tiny bit of evidence, some sort of proof that everything will be okay.

Don’t do it.

When you indulge the lizard, it gains power. It doesn’t walk away ashamed, humiliated at its anxiety. Instead, it merely sidesteps and looks for the next thing to worry about, because, ready for this? It’s nice to be reassured.

Developing the reassurance habit is easy to do and hard to kick. The problem is this: there are some ventures where no reassurance is possible. There is important work for you to do where no proof is available.“

Faith is a VERY personal thing and is not something we can judge.

Faith strengthens as we learn the fine art of “Letting go”

Faith emerges when we notice that the right people are HERE NOW to accomplish the work that MATTERS.

Faith thrives when we understand that whatever happens is the only thing that could have . . . we loosen our attachment to outcome.

Faith endures and carries us forward when we acknowledge endings and Open Space for new beginnings.

Call it what you want . . . but I believe in Faith, and I acknowledge that our current social, political, economic, micro, macro environments invite Faith in every moment.

Will you accept the invitation?

or

Will your “Lizard Brain” freeze you into inaction?

I say there’s no time like the present to tune in to what MATTERS to you and PLAY HARD!

Just sayin’

Best,

b

PS . . . I decided 15 months ago to practice what I preach – That with commitment to  faith, I can succeed in the creation of a remarkable residential real estate firm in Middle TN engineered to attract and develop a whole passel of high-minded, performance-oriented Real Estate Professionals with a strong commitment to  quintessentially serve Home Buyers and Sellers 

We’ve done it . . . Pareto Realty grows and mature every day . . . and our Faith continues to propel us FORWARD!

There’s a HUGE difference between “Listing a House” and “SELLING a House,” and clearly some REALTORS are better than most others on that “SELLING” part. The listing part is fun, but doesn’t do a lot of good for anyone involved if it doesn’t SELL . . . SO . . .

We’re having a session here in Nashville Wednesday 1/25/2012 @ 10AM and inviting local Real Estate Pros to explore some ways to increase the odds of being that REALTOR who SELLS listings.

Regardless of any REALTOR’s level of expertise, I believe we all have something significant to bring to this discussion . . . and we all probably have plenty to learn from it 

We’ll explore Issues and Opportunities relating to:

• creative marketing
• pricing Strategies
• staging the House
• condition concerns
• coaching the Owners
• . . . and whatever other ideas anyone has to turn listings into SALES.

Our session comes with FREE lunch provided by Chris Bontrager with RiteRug (Chris has a company that can help you look like a STAR with your Sellers)

Please RSVP to save your seat in the room (and reserve your lunch)

Best,

b

There aren’t many folks out there would would disagree that getting the Real Estate markets MOVING is an instrumental piece of National Economic buoyancy as well being a HUGE fire starter of job growth . . . More employed people yields more overall prosperity.

All boats rise with the tide.

The US Senators “Get” this but are having difficulties wrangling with the Federal Government’s role in all of this.

Some think that MORE Government intervention is what is needed to keep things moving . . .

While others advocate policy that increases securitization that entices Private Sector Investors back into the game.

An intrepid group of REALTORS are going to gather this Wednesday to tackle these very issues. We’re going to look at some of the congressional proposals, seek to understand, and brainstorm our own notions with some old-fashioned Solution-oriented Masterminding.

You can reserve a seat at the table – Just contact me!             615.568.2123       or barry@paretorealtyllc.com 

Seating is limited and we’ll enjoy a FREE LUNCH provided by Laurel McKenzie with Suntrust Bank.

Wednesday January 18

10 til Noon

Suntrust Building 401 Church – Downtown Nashville 1st Floor.

If we get some really good ideas, we can pass them along to our Senators 

Looking forward to lively discussion on Wednesday!

Now . . . Sell a house between now and then 

Best,

b

The Nashville Boat Show is always a great place to wander around and dream . . .

I’ve always wanted to own a boat and LOVE looking at them and imagining the possibilities.

We packed up the kids and headed there yesterday.

While there, we were tempted MANY times to ACT on our IMPULSIVE desires.

“An impulse is a wish or urge, particularly a sudden one.” (From Wiki)

Those shows are veritable smorgasbords for impulsive people.

The “Vendors” and organizers engineer everything about the show to create an over-stimulating environment that arouses Impulsive behavior and thoughts . . . and have myriad mechanisms in place to encourage folks to ACT on impulse by BUYING.

• LOW Trade Show Only pricing
• Past customers manning the booths to give testimonials
• Entire financing operations on-site for FAST credit approval
• Give-aways to lure people into thier booths
• Pressure tactics: “Buy NOW, and you get all these extras FREE!”
• A “Lottery” – Buy a boat today, and your name goes in a hat to win $3,000

At the end of it all, i feel OK with it . . . I figure we “saved” @ $27,000 

If you’re in Middle TN, just pick up the phone and call Pareto Realty . . . We’re trained impulse control specialists

In most Professions that require any form of official licensure, there’s a mandate for a level of periodic “Continuing Education” in the form of “Approved Courses” often offered by Local Associations.

This is true for REALTORS, and I am a HUGE advocate of the requirement.

I wonder, sometimes, why the need for a REQUIREMENT?

Surly, anyone who calls herself a “Professional” would be learning-based enough to continually hone skills and knowledge and standards of practice in order to provide the BEST for customers and clients and to stay competitive in the market???

Sadly . . . not the case!

I am a frequent witness of professionals scrambling as the deadline approaches to fulfill the requirement for CE HOURS . . . Many do so with on-line courses in the darkness of night.

When a person approaches education in this way (a last minute cram to meet a requirement for licensure), I wonder: “Why Bother?”

Perhaps these folks aren’t in the right profession . . .

Why not pursue a career for which the passion is there to the degree that CE is something done to IMPROVE efficiency and effectiveness in the trade?

As I offer weekly opportunities for learning and Masterminding about issues of the day in the Local Real Estate Market, I am sometimes baffled by the question: “Will I get CE credit for attending?”

If that’s the ONLY reason you would come, I’d rather have your absence because I know that if you were to show up, you would not be present.

“Why Bother?”

Somethin’ to chew on . . .

Best,

b

afterthought – If I were a potential client interviewing a professional, one of my most important questions would be something to the effect of:

“What do you do keep yourself and your business up to speed with the changes and improvements in your industry?”

How would YOU answer that question – HONESTLY?

“SOMEONE” should call 911!

“SOMEONE” should pick up all of that trash!

“SOMEONE” should invent a gadget that Automatically solves this problem!

“SOMEONE” needs to get busy and FIX this economy!

“SOMEONE” should start a business that fills this gap in our community!

“SOMEONE” should come up with a class to teach me how to ________

“SOMEONE” should call me to Buy or Sell a house!

“SOMEONE” should . . .

How many times a day/week/month/year do you hear or say: “”SOMEONE” should . . . !”?

How would the world and your world be different if each time you thought, said, or heard that phrase, you saw it as an opportunity to take some level of responsibility by TAKING ACTION!

I’m not implying that you always tackle and DO every time . . . You’d never be able to do it ALL yourself.

This is more about staying tuned to the world around us and “Match-making” ideas with people who have the expertise, talent, and drive to do something about them.

So . . . What if . . . Instead of saying “SOMEONE should . . . !”, you change your words to “WHO could?”

That “WHO” could be YOU, or it could be SOMEONE you know who is quintessentially qualified and positioned to do something about it.

Either way . . . If it results in a score, you’ve made a difference . . . Much like in sports . . . Often points are scored because of the brilliance of the “assist” . . . Who was it on the team who spotted the opportunity to score and fed the ball to the player who could best make it happen?

Successful people score more success by recognizing the gaps . . . and doing something about filling those gaps.

Will you make a difference today?

Just sayin’

Best,

b

If you’re in Middle Tennessee, you’re hereby invited to a 2 hour “Reading of the REALTOR Code of Ethics” followed by a FREE LUNCH sponsored by Lakeside Title & Escrow.

FRIDAY January 13 – 9 til 11 (Lunch Following)

Pinnacle Bank Learning Center Green Hills

2307 Crestmoor

Please RSVP by return email if you’re coming.

Anyone who calls him/herself a REALTOR has agreed to a higher level of ethical conduct while practicing the real estate profession.

In Tennessee, we are required by law to disclose our agency status to all customers and clients in every transaction, and of course we have a form for that . . . “Working With a Real Estate Professional” which delineates legally required “duties to every buyer and seller, tenant and Landlord” and “duties to his/her Client if the Licensee has become an Agent or Designated Agent in a Transaction.”

The “Code of Ethics and Standards of Practice of the National Association of REALTORS” (NAR) establishes very well defined ethical conduct standards in virtually ALL aspects of every REALTOR’s professional real estate practice.

NAR updates this code each year, so it stays current with the business environment including the advancement of TECHNOLOGY . . .

What does the code say about a REALTOR’s use of the internet?

The answer is: “LOTS!”

Article 12 has 13 Standards of Practice . . . most of which deal with internet and marketing practices.

Odds are good, most every REALTOR out there is using the internet in a variety of ways in the hopes that they can attract more visibility and LEADS to fuel their business.

Next question to REALTORS: “Do you KNOW your ethical obligations per your Code of ethics?”

Ignorance (not knowing) isn’t acceptable . . . The responsibility of Knowing the code comes with the territory of being a REALTOR.

If you’re a REALTOR and you’re not in Middle TN, I hope you’ll set aside a couple of hours each January to read and review the updates of the Code of Ethics.

Just keepin’ us Honest (and Ethical) . . .

Just sayin’

Best,

b