Online Newsletter for the Week Ending October 15, 2010

QUOTE: "YOU FALL PREY TO THE LAW OF DIMINISHING INTENT. We intend to take action when the idea strikes us. We intend to do something when the emotion is high. But if we don't translate that intention into action fairly soon, the urgency starts to diminish. A month from now, the passion is cold." Jim Rohn


LATEST NUGGET: I posted CONVINCED on http://www.nuggetsforthenoggin.com/. It is based on some thoughts taken from Jeffrey Gitomer’s book, The Little Black Book of Connections.

RECOMMENDED READING: There are many books on the market that can help you develop your business but of all the books I have read, I believe there are four that should be considered REQUIRED READING. And while you read them, you might want to consider offering them to your children; they are listed in the order I would read them:

The Little Gold Book of YES!Attitude, by Jeffrey Gitomer

The Little Black Book of Connections, by Jeffrey Gitomer

The Little Green Book of Getting Your Way, by Jeffrey Gitomer

Endless Referrals, by Bob Burg

QUESTION: Who are the 5 most important people in your life or who should be in your life that you need to develop a relationship with who could significantly improve your business? If you can identify them, are you working on developing a relationship with them? If not, why not? One of the five should be your Team Leader in the Market Center. At the risk of being immodest another should be me, your broker. The 30 plus years I have in the Real Estate Industry ought to be worth something to the development of your real estate career.

8 REAL ESTATE NICHE MARKETING OPPORTUNITIES TO TAKE ADVANTAGE OF THE MARKET TODAY, Lowes; http://rismedia.com/lowes/8355/10152Home

REINVENTING “LIFESTYLE” MARKETING. By Mary Umberger. This is a really interesting article about two agents definitely thinking outside the box in their marketing efforts. It will obviously not apply to everyone but it shows what outside the box thinking can do for your business; he said with a smile. http://www.inman.com/news/2010/10/11/reinventing-lifestyle-marketing

NET LISTINGS:  What is a "net listing?"  A net listing occurs when a property owner agrees to permit an agent to sell property where the owners pre-agrees to accept a certain amount and the listing agent/broker's commission is the difference between the actual sales price and the owner's agreed to amount.  Net listings are illegal in many states but not in Louisiana or Mississippi.  In some states where net listings are legal the local MLS systems have rules in place that prohibit them from being entered into the MLS system, GESRIN being one of those MLS systems.    For the most part Net Listing are strongly discouraged because the opportunity for conflict of interest is so great.  Since you are required to present all offers it is even possible that a seller may accept an offer less than initially agreed upon which would result in the listing agent earning nothing for his or her efforts.  In those cases where the property sells for considerably more than what the owner had initially agreed to, the difference may so great that it creates difficulties between the owner and the agent/broker.  Simply put, Net Listings are strongly discouraged.

MUST I DISCLOSE MY CLIENT RELATIONSHIP? This was taken from the Mississippi Broker Buzz and is an excellent article. A very good rule-of-thumb to follow is – disclose. There is so much more to lose by not disclosing than by disclosing so why wouldn’t you disclose?

What are the disclosure requirements when your clients are family members?

Question: I'm listing a property and the sellers are my brother and sister-in-law. Am I required to disclose that?

Answer: Article 4 of the Code of Ethics covers disclosure of personal interest in property. "REALTORS® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest . . . without making their true position known to the owner or the owner's agent or broker."

"Immediate family" is defined in the Code and in the Arbitration Manual to include "the REALTORS®'s spouse and their siblings, parents, grandparents, children, grandchildren, and other descendants."

Disclosure also is required when selling property that you own or in which you have any interest: "REALTORS® shall reveal their ownership or interest in writing to the purchaser or the purchaser's representative."

However, the obligation to disclose that you're working with an "immediate family" member applies only to situations in which your family member is the buyer.

In your situation representing sellers, you're obligated to disclose ownership or "any interest" in the property being sold. That would include any legal ownership or possible future ownership, such as through inheritance. (Gymbeaux Note: This was a new revelation to me but when you think about it, it makes good sense.)

For example, if your brother had named you as a beneficiary or heir of the property in his will, you would be best served by disclosing that interest in the property.

But, if you have no possibility of inheriting the property, you would likely not have any current or future interest in the property requiring disclosure under the Code. Always remember that state license law could require additional or different disclosures of "interests" or "relatives' interests" in representing a family member.

By Bruce Aydt. Reprinted from REALTOR® Magazine