Time Management & Productivity: Don't Forget to Manager Your Energy!!

We’ve addressed Time Management and Productivity in The Coach’s Playbook before—and it’s still one of the most important yet least consistently implemented ways a person can improve their business and their life. Specifically, we’ve recommended David Allen’s great book, Getting Things Done, as a simple, practical guide to organizing our days and our task list. If you haven’t given Allen’s methods a try yet, log onto Amazon right now and download a copy. We’ve also talked about the Peak Producers’ approach of working on those Big Rocks First, that is, the activities that help you build your business for the long term—those calls, handwritten notes, coffees and, yes, even those “pop-by’s”—while filling in the pebbles and sand of returning client phone calls, reading emails, and doing the paperwork that keeps our clients delighted with our service. (You don’t play CandyCrush, do you?)

Most of these discussions and ideas for time management and productivity, though, don’t address what’s probably the most important element of how we handle and process our daily activities, both business and personal: our energy levels.

First of all, there are five “wells” of energy from which we draw each day. The five wells are: Spiritual, Family, Business, Financial, and Personal. It’s a good idea to take a few minutes and consider whether our tanks are on full, three-quarters, half, or even on Empty, and how that impacts our attitudes and abilities.

It’s also important to remember that our energy is a dynamic resource—it wants to move and flow rather than sit idly in the tank. If we don’t control our energy and its flow, it will go somewhere anyway! So, give some thought to the following ENERGY DRAINERS, ENERGY GIVERS, and ENERGY SUSTAINERS:

ENERGY DRAINERS

            Fear—False Evidence Appearing Real! The best counter: have a detailed plan!

            Worry—how do you approach problem solving, both short and long term?

            Indecision—does it take you a long time to reach a decision? Do you overthink things?

            Drama—so much of this is available to us in this business! As Dr. Phil might say: what’s in it for you?

            Personal Conflict—how is your personal life complementing or interfering with your business?

            Poor Physical Condition—remember Gino’s M.E.D.S!

            Lack of Direction—do you have written goals—both personal and business—and are they S.M.A.R.T. goals?

ENERGY GIVERS

            Associations—the folks you hang out with and the things you do have a huge impact on your energy levels. Choose wisely!

            Mental Intake—the books you read or the games you play

            Taking Care of Yourself—again, remember Gino’s M.E.D.S!

            Alignment of Values—does your life and work reflect your personal values?

            Written Goals—yes, those with written goals are statistically far more successful than those without them!

ENERGY SUSTAINERS

            Tracking Your Progress—yep, in detail so you know where you are and can celebrate success or add course corrections

            Visual Anchors—consider a vision board with photos of your BIG WHY—why are you doing all this? Retirement in five years? Send the kids to Harvard? Tour India and China or buy a new carbon fiber bike? Put it on your wall and keep it as a shiny carrot!

            Consistency—the tortoise ALWAYS wins the race. ALWAYS!

            Taking a Break—daily, weekly, annually, take a break to recharge your energy level so you can knock it out of the park when you’re “on”

            Accountability—yep, again tracking your progress toward those written goals—and that vision board—and remembering it’s you who is in charge

So how are your energy levels? Remember, our energy will absolutely go somewhere . . . Make sure YOU choose where it goes!

David M. Hassler

VP, Professional Development

It's the Third Quarter Already--Do You Know Where Your Stats Are?

Recently, I read a piece in the Inman News talking about our industry’s frequent overuse in our marketing of several worn out phrases (and they weren’t talking about that old The Mamas & The Papas song!). For example, they chided us for touting a house as “Priced to Sell” since that’s really only telling something and the price alone should show us the price is aggressive! Another phrase they noted was agents billing themselves as a “Top Agent.” The writer said he wondered if there were any “bottom” agents anymore. Again, that phrase is simply telling us something instead of showing it! So, let’s get to work and see what we can show!

With that in mind, now that most folks have exhausted their store of fireworks, it’s time to recognize that we’ve already finished the first half of our business year! The market has been pretty hot so far with a shortage of listings and we even heard the term “seller’s market” tossed around now and then. It’s great to get caught up in that transaction rush!

But the end of the second quarter is also a great time to make sure we take a look at our stats to see how we’re doing compared with our business plan, and to dig in and see what we can show our clients and prospects!

It really pays to analyze the details of not only our sales volume and commission dollars, including listings sold and buyers closed, but to dig deeper into the numbers, including the percentage of your listings sold, price reductions achieved, your average days on the market, averages ratio of sale to list price, percent of listings won when competing, how your stats compare versus the competition, and any patterns to be seen. Not to mention tracking how many calls, coffees, and handwritten notes have you done so you can optimize your referral business? Most importantly, what is your average sale price and your average commission rate, and are they improving over previous years?

Overall, where did you succeed, and where can you improve? Digging deep and understanding where you’ve been so far this year—and why—is crucial to keeping you on your plan so you can achieve your strongest year ever! Your coaches and management team are here to help you through the process of mastering your stats, congratulating you on your success, and aiding in planning any course corrections.

David M. Hassler

VP, Professional Development

A Fistful of Stats to Strengthen a Pro's Knowledge--and Generate Referrals!

A recent article in the NAR Economists’ Outlook Blog can give us all some great stats to share with our clients and Sphere of Influence to remind them of our high level of knowledge about Real Estate:

o      Existing-home sales in May hit the highest mark since 2009, when there had been a homebuyer tax credit … remember, buy a home and get $8,000 from Uncle Sam.  This tax credit is no longer available but the improving economy is providing the necessary incentive and financial capacity to buy.  Meanwhile new home sales hit a seven-year high and housing permits to build new homes hit an eight-year high.  Pending contracts to buy existing homes hit a nine-year high.

o      Buyers are coming back in force.  One factor for the recent surge could have been due to the rising mortgage rates.  As nearly always happens, the initial phase of rising rates nudges people to make decision now rather than wait later when the rates could be higher still.

o      The first-time buyers are scooping up properties with 32 percent of all buyers being as such compared to only 27 percent one year ago.  A lower fee on FHA mortgages is helping.

o      Investors are slowly stepping out.  The high home prices are making the rate of return numbers less attractive.

o      Buyers are back.  What about sellers?  Inventory remains low by historical standards in most markets.  In places like Denver and Seattle, where a very strong job growth is the norm, the inventory condition is unreal – less than one month supply.

o      The principal reason for the inventory shortage is the cumulative impact of homebuilders not being in the market for well over five years.  Homebuilders typically put up 1.5 million new homes annually.  Here’s what they did from 2009 to 2014:

o      2009: 550,000

o      2010: 590,000

o      2011: 610,000

o      2012: 780,000

o      2013: 930,000

o      2014: 1.0 million

o      Where is 1.5 million?  Maybe by 2017.

o      Builders will construct more homes.  By 1.1 million in 2015 and 1.4 million in 2016.  New home sales will follow this trend.  This rising trend will steadily relieve housing shortage.

o      There is no massive shadow inventory that can disrupt the market.  The number of distressed home sales has been steadily falling – now accounting for only 10 percent of all transactions.  It will fall further in the upcoming months.  There is simply far fewer mortgages in the serious delinquent stage (of not being current for 3 or more months).  In fact, if one specializes in foreclosure or short sales, it is time to change the business model.

o      In the meantime, there is still a housing shortage.  The consequence is a stronger than normal home price growth.  Home price gains are beating wage-income growths by at least three or four times in most markets.  Few things in the world could be more frustrating and demoralizing than for renters to start a savings program but only to witness home prices and down payment requirements blowing by past them.

o      Housing affordability is falling.  Home prices rising too fast are one reason.  The other reason is due to rising mortgage rates.  Cash-buys have been coming down so rates will count for more in the future.

o      The Federal Reserve will be raising short-term rates soon.  September is a maybe, but it’s more likely to be in October.  The Fed will also signal the continual raising of rates over the next two years.  This sentiment has already pushed up mortgage rates.  They are bound to rise further, particularly if inflation surprises on the upside.

o      Inflation is likely to surprise on the upside.  The influence of low gasoline prices has been bringing down the overall consumer price inflation to essentially zero in recent months will be short-lasting.  By November, the influence of low gasoline prices will no longer be there because it was in November of last year when the oil prices began their plunge.  That is, by November, the year-over-year change in gasoline price will be neutral (and no longer a big negative).  Other items will then make their mark on inflation.  Watch the rents.  It’s already rising at near 8-year high with a 3.5 percent growth rate.  The overall CPI inflation could cross the red line of above 3 percent by early next year.  The bond market will not like it and the yields on all long-term borrowing will rise.

o      Mortgage rates at 4.3% to 4.5% by the year-end and easily surpassing 5% by the year end of 2016.

o      The rising mortgage rates initially rush buyers to decide but a sustained rise will choke off as to who can qualify for a mortgage.  Fortunately, there are few compensating factors to rising rates.

o      Credit scores are not properly aligned with expected default rate.  New scoring methodology is being tested and will be implemented.  In short, credit scores will get boosted for many individuals after the new change.

o      FHA mortgage premium has come down a notch thereby saving money for consumers.  By the end of the year, FHA program will show healthier finances.  That means, there could be additional reduction to premiums in 2016.  Not certain, but plausible.

o      Fannie and Freddie are owned by the taxpayers.  And they are raking-in huge profits as mortgages have not been defaulting over the past several years.  The very high profit is partly reflecting too-tight credit with no risk taking.  There is a possibility to back a greater number of lower down payment mortgages to credit worthy borrowers without taking on much risk.  In short, mortgage approvals should modestly improve next year.

o      Portfolio lending and private mortgage-backed securities are slowly reviving.  Why not?  Mortgages are not defaulting and there is fat cash reserves held by financial institutions.  Less conventional mortgages will therefore be more widely available.

o      Improving credit available at a time of likely rising interest rates is highly welcome.  Many would-be first-time buyers who have been more focused about getting a mortgage (even at a higher rate) than with low rates.

o      All in all, existing and new home sales will be rising.  Combined, there will be 5.8 million home sales in 2015, up 7 percent from last year.  Note the sales total will still be 25 percent below the decade ago level during the bubble year.  Home prices will be rising at 7 percent.  

So grab your phone and set up some coffees/lunches/golf/tennis/wine/cigar/name-your-own sessions and don’t forget to remind your connections how much you appreciate their referrals!

David M. Hassler, MFA

VP, Professional Development