Austin Texas Real Estate Blog

If you don't mind, I'd love to hear some input and perspective from you. I have a number of decisions on my mind with our company, and I would welcome any helpful advice/direction. Please note that I said "helpful". :) I'm editing this opening paragraph now that I've finished writing the rest of the post and I realize that some of the stuff I wrote below seems a little disjointed. Hang in there if you can.

Here's the thing: I've been selling homes full-time in Austin for 15 years as of this month. I started my own brokerage just over 7 years ago. We've had some very good years (thankfully, 2011 was one of them) and a couple of very lean years, too. As we begin another year, my business partner and I are evaluating things to try to determine the best direction for ourselves and our company. I find myself going back and forth between two extremes: big-time company growth vs. streamlining, saving money, and focusing on my own sales.

We're paying way too much for office space, so we're likely moving down the hall to a smaller, much less expensive space. Most of our agents work from home, so it seems silly to pay for a large space with lots of barely-used desks. This downsize in physical office space will save us $1700/month, so that's a no-brainer. We will be moving.

I could use some of the savings for additional marketing/branding, I suppose. Again, I'd have to think about the most effective use of these dollars. I've used just about every type of print and internet marketing technique over the years, and it seems that the internet is the only one that makes much sense, outside of handwritten notes (not a joke). Again, I welcome your input.

We have a nice system in place for the leads from our website, and a relatively substantial number of new prospective buyers sign up every day. I would love to increase our conversion rate for these leads, since I worked so hard to get the traffic in the first place. It seems that this would probably entail more accountability, and a different system, although I have no idea how much this might cost to design and implement. I could focus on SEO, but since we're getting ample traffic, perhaps the site needs a re-design to maximize its effectiveness? Here's our primary website: http://www.austintexashomes.com

I DO offer something that seems to be in short supply based on my conversations with agents: I care. I genuinely care about the people who work for us, and I am available pretty much any time to answer questions or provide advice. I've never been involved in a lawsuit or mediation of any kind, because we really try to head off problems before they grow into full-fledged legal issues. I value honesty and integrity, which might be a hindrance to substantial growth, although I'd like to think otherwise. Maybe I'm not cut-throat enough, and I'm okay with that.

There's no easy way to say this next part, so I guess I'll just be blunt. I promise it's not sour grapes, just an observation. I have seen other local companies grow to 50 agents and beyond with seemingly less to offer, other than possibly bravado and aggressiveness on the part of the managing broker/owner. I don't begrudge them their success, and I'm sure I could learn something from their recruiting efforts. Having interviewed a few agents who went to work elsewhere, only to be disillusioned, I just can't bring myself to over-promise to agents. Yes, we have leads. No, I can't tell you how many to expect, nor do I want agents who are dependent on me or the company to produce all or most of their business.

I haven't instituted minimum production standards for our agents, partly because it struck me as disingenous, since I wouldn't have been given a chance with my original mentor/broker if these were in place, but I think I was a great addition to his team for 8 years. It reminds me of the classified ads I used to see for Dell Computers that required a college degree and 2-4 years of experience, when the CEO was a college dropout. That being said, I don't think I want very many brand-new agents, partly because of the time commitment involved in training. What are your thoughts on minimum standards for sales production?

I've managed up to 20 agents in the past, and I think I could handle a lot more (40-50+), under the right circumstances. Namely, if I weren't so dependent on my own sales to provide the vast majority of my income, and if the agents were at least somewhat self-sufficient. I recognize that this sounds obvious.

I guess the bottom line is that I am torn between building an actual business that can provide income for me on its own vs. continuing to grow my personal sales. I am now 41 years old. I don't think I want to drive people around showing houses (even if they're nice houses) when I am 60 or 70.

I need a plan.

Feel free to chime in below with ideas. I'm all ears.

Thanks for reading!

Photo credit:Joe Shlabotnik via Flickr.com Creative Commons license

I've been selling homes full-time in Austin since 1997. I've trained dozens of local agents, and coached many others around the country. As a broker and owner of my own independent real estate firm, I've helped with hundreds of transactions. Through my online networking efforts and "in person" conferences, I'm thankful that I've met hundreds (maybe thousands) of agents. 

Why do I mention this?

Well, it's pretty straightforward. Having encountered agents and clients of all types, I've noticed one trend:

Real estate is neither as easy as clients think, nor as hard as agents think.

Allow me to explain:By and large, I think the general perception from the public at large is that we real estate agents have it pretty easy. Show a home or two, help with some paperwork, then coast into commission town. I'm oversimplifying things, of course, but I know that I'm not far off here. I wish it were true that my job was that simple. It involves being really patient and diplomatic even in the face of major adversity, often from your own colleagues. Sometimes, clients aren't loyal. Often, lenders make mistakes that jeopardize sales. Frankly, there are a lot of moving parts when it comes to real estate sales, and a lot of juggling has to occur.

Having said that, real estate isn't rocket science, either. When agents are struggling (I've been there), it's easy to blame outside factors:

"The economy is in the tank."

"Banks have tightened guidelines, so no one can get a loan anymore."

"The media won't quit talking about how bad things are."

Believe me, I've had the same thoughts myself at times, but the bottom line is this: In any given market on any given month, people are buying homes. They might be buying fewer homes than they were 5 years ago, but there is business to be had everywhere. 

If you're a consumer reading this post, know that most agents work hard and a solid number of us are good at what we do and conduct business in a professional manner. If you're an agent, grab your share of the pie. The pie may not be as large, but neither is the number of people who want a piece anymore. Too much analogy? 

There's the paradox as I see it, and of course it's just my opinion. I've always found it interesting how different the perspective is from the outside vs. the inside of our industry. In my own naive way, I think it's probably the opposite of how doctors are perceived by others ("Wow, being a brain surgeon has to be a really hard job.") compared with their self-perception ("Brain surgery ain't hard."). Alright, in fairness, they probably don't say "ain't".  

What are your thoughts? I welcome your feedback.

Photo: rrenzoo Creative Commons 2.0

When you’re trying to sell your home, there are things that you simply can’t change. If you bought in an awkward location, there’s not much you can do about that now. If the plan isn’t as functional/modern as most buyers would prefer, this is something that may cost too much to remedy. You also can’t really control which buyers are in the market at any given time.

However, there are three big items that you can and DO control:

• Price
• Condition
• Agent

Pricing: This is a biggie. Make sure that you give this part some sincere thought. You and your listing agent don't dictate the market - buyers do. In fact, one definition of market value is the price that a ready, willing, and able buyer will pay for your home.

A solid agent can provide a comparative market analysis (CMA) that should give you a good idea where to begin when pricing your home to sell.

Also, give some thought to where the "breaking points" are with the homebuying audience. In my local market in Austin (and probably elsewhere), $200,000 is one such breaking point. What that means is that there are a lot of buyers looking UP TO $200,000, but NOT over. If you price your home at $202,500, you are hurting your chances of selling. Price it at $200,000 or $199,999 if you want to use the retail psychology trick. Either way, it's a big mistake to go just over one of these breaking points. Your agent should be able to help with this, too. 

TIP: If possible, go with your agent to see a couple of the homes that you will be competing with nearby. This will allow you to see what potential buyers are seeing, and it often gives you a much better sense of how your home stacks up.

Condition: As I alluded to above, you probably don't want to spend a fortune remodeling your home, but you do want it to show in the best possible light. Getting good photos, staging, cleaning the carpet, and painting if needed are all inexpensive ways to improve the condition. If you have repairs that you already know are needed, do them now. If buyers notice them, they tend to assume that the home isn't well-maintained. I guess the best advice I can give here is to get your house in the best possible condition with your budget. This WILL make a difference when you're competing with other places.

Agent: I would like to tell you that this is the single most important part of the equation, but it's probably not. Price, condition, and location will largely dictate whether or not you get offers. That being said, if you have an agent who isn't reachable by phone during reasonable hours, or who is unpleasant or difficult to deal with, or who doesn't really make an effort to present your home well, this will hurt you. Additionally, make sure that you really like your agent, because you will likely be spending a good deal of time talking to him/her. Ideally, you want someone who can get you the maximum exposure for your home, and who is reasonably experienced and good with technology (at least the basics). Friendliness and honesty are two characteristics that are critical. You aren't paying your agent to tell you what you want to hear; you're paying him to tell you the truth.

There are a number of other intangibles that are part of the formula for home sales success, but these are the ones that you can affect. "Location, location, location" still applies, but these are probably the next three in line.

Thanks very much for reading!

Photo: Diana Parkhouse Creative Commons 2.0

When dealing with real estate clients, one of the more difficult objections to overcome in the real estate industry is the fact that we are often perceived as predatory and unprofessional. If I had a nickel for every time I heard this phrase, "I haven't had very good experiences with REALTORS®", well, I'd have a whole lot of nickels.

My response? "Neither have I."

However, over the past couple of years, I am happy to report that I have rarely run across the types of agents who have traditionally given all of us a bad name. Yes, there are some who are still out there, but I get the feeling (I have no data to support this assertion) that many of the truly bad agents were driven out of business by the economic downturn we experienced here in 2008 and 2009.

As the broker and co-owner of a smaller independent real estate agency, I've trained dozens of agents on the sales process. I have tried to build my own business on a cornerstone of integrity and honest dealings, and I expect nothing less from my agents. If I have a client who's considering buying a property that seems like a bad decision, I say so. Conversely, if I see a buyer about to pass up the deal of a lifetime, I want them to recognize this, too.

Why?

That's an easy answer, and hopefully it's a common-sense one as well. If I do my job correctly, my clients will want to come back to me with all of their real estate needs. They'll also send their family, friends, and co-workers to me. Good service isn't always altruistic. It's good business, too.

Another reason that I strive to provide the best possible service is this: I will likely be called upon to help my buyers when they're ready to become home sellers later. If I helped them get the best property in the first place, it makes my job that much easier down the road. Again, not just a nice move, but helpful to my own bottom line also.

The best agents I've encountered are those who are good communicators, and unafraid to say, "I don't know, but I'm sure we can find out." There's no shame in not having encyclopedic knowledge, as long as you're willing to expend the effort to get the answer, right?

At any rate, my overarching point is that there are still plenty of "good guys" when it comes to real estate sales. And by "guys", I mean both men and women, just to clarify. Don't be frightened by any negative stereotypes that you've seen portrayed on TV or movies. Just because you had a friend or family member who was burned before, it doesn't mean that it will happen to you, unless of course you use the very same agent, in which case you're kind of on your own, eh?

I do have a couple of pointers which come in handy, if you're a consumer looking for a real estate agent:

• Make sure that your agent sells homes full-time. Part-timers probably don't have the necessary experience or skill set to help if things get dicey during the transaction. Full-time agents have probably seen more scenarios in their career, and they can finesse things better.
• This is a big purchase for you, so dump your agent if he/she makes you uncomfortable. You'll be spending a lot of time with this person. If you get a weird feeling, move on.

I could go on, of course, but those two items strike me as supremely important to mention.

I hope you find the agent of your proverbial dreams.  Thanks for reading!

Photo credit: contemplativechristian - via Creative Commons (found on Flickr)

Last year, I blogged about this topic with solid results.  I hope to do so again.  If so, I can help out a good cause and my daughter at the same time.  

If you live in the general Austin area, let me know if you would like to buy some Girl Scout Cookies.  My 9-year-old daughter Aleah is selling them for the second time, and she wants to sell enough cookies this time around to win a tent.

If you buy at least three boxes ($10.50 or more, as they are $3.50 per box), and you live/work in the Austin metro area, my daughter and I will deliver them to you at your home or office (your choice).  

As a longtime salesperson, I am of the opinion that this could help Aleah to hone her burgeoning sales skills.  If you're nice, we might even hang out awhile.  :)  If you live outside of Austin, keep reading below.  

By the way, I already know what you're asking yourself.  YES!  They are still just as delicious as you remember them.  In fact, you might be doing my waistline a service by getting them out of my house.  They are really, really good, and I don't want to gain back any of the 56 pounds I lost this past year.  

if you want to support our cookie sales efforts, but you are:

• worried about your diet
• too far away, OR
• a crazy person who doesn't like the taste of the cookies

I have another idea for you.

It's called "Operation Cookie Drop". Basically, you donate $3.50 for each box of cookies, and they will be delivered to our troops overseas.

Cool, huh?

I have already bought and consumed cookies myself, but I think I may just go ahead and donate some extra money for this very special cause.

Here are a handful of benefits:

• You can keep your girlish (or boyish) figure intact
• You are directly helping our troops
• You are benefitting the Girl Scouts
• I will like you even more than I already do

Perhaps best of all, the donation is tax deductible!

In an effort to make it easier, you can pay via PayPal (any amount in $3.50 increments) by sending the money to our account at jasonpam@swbell.net. We will then write a check for the total and provide a receipt for your tax records if you like.

If you would like to pay by check (minimum donation of $14), you can make it out to "GSCTX" or "Girl Scouts of Central Texas" and mail it to my office at 3636 Executive Center Drive, #210, Austin, TX 78731. 

Help me demonstrate the power of social media and blogging.  :)  They also make great gifts. 

Feel free to re-blog or spread the word in any way you prefer.  

Thanks!

Having lived in the Austin area since 1988, I'm not surprised when I see our city making national "most desirable" or "best" lists, and a recent list from Walletpop.com is no exception. 

On the list entitled, "10 Best Places to Buy a Home", Austin placed at #1 overall, garnering "Best All-Around City" honors. 

Although we've experienced a tougher economy in recent years, Austin has weathered the storm quite well compared with most cities and local markets around the country, and for that I'm thankful.  Since we've all been inundated with negative messages from the media about the "national housing market" (which is a myth - all markets are local and some are even hyperlocal), I feel like part of my job is to educate Austin -area residents about how good things really are here in this area.

More praise about Austin from the Walletpop.com article:

Texas' capital and a great college town, Austin is beautiful and the 12th-most-affordable American metro area. Job growth from 2000 to 2010 was 14.1%, according to Trulia; unemployment currently is 7.1%, compared with 9.8% nationwide. The city's population is growing too. These positive indicators are expected to continue in the coming decade. Fortune 500 companies abound here; it's home to more than 2,000 tech companies. Home prices are reasonable for the $73,747 median family income and let's face it, nobody does BBQ better than Texas.

To read the entire article, visit http://www.walletpop.com/2010/12/31/10-best-places-to-buy-a-home-in-2011/.

Photo credit: JDN via Flickr (Creative Commons 2.0)

If you're thinking of buying or selling a home in the Austin, Texas area, or if you have any questions, please feel free to call me anytime at 512-796-7653 (cell) or email me at jason@austintexashomes.com.  You can also visit our Austin real estate website at http://www.austintexashomes.com.  Thanks!

My good friend Alan Kirkpatrick is a Renaissance man.  He is a pastor, real estate agent, gentleman, and a scholar.  He's also the father of two talented members of Midnight Riot, a local (for now) band that is gaining a loyal following.  His daughter, Amanda, provides vocals, and his son, Zak, is the drummer.  

Alan and I had lunch the other day, and I asked him for a copy of their CD, which he happily provided. Overall, I was impressed with the production quality of the five-song EP that they put together, and with the potential that they have, especially considering that the "senior" member of the band, Amanda, is barely 19 years old.  They've been together for just about a year now, having won the Bmused Battle of the Bands on Sixth Street in Austin in 2010, despite being one of the youngest bands to perform.

I mainly wanted to help spread the word, since they are currently involved in two different contests.

The first is the College Battle of the Bands.  If you want to help, click here, listen to their song and vote (it's a 5 star rating system). This is a national competition and could result in giving them another opportunity to play at SXSW and a recording contract:

College Battle of the Bands | Midnight Riot

The second contest is  a local contest with the Fox affiliate in Austin. It officially started Monday.  Here is the link for that: http://myfoxaustin.upickem.net/engine/Welcome.aspx?contestid=24998

Here's a link to their electronic press kit, which includes a link to some song samples on iTunes: http://midnightriot.com/presskit.htm.  Their primary website is http://midnightriot.com.  

According to my conversation with Alan, all five of the kids are active in their local churches.  It doesn't hurt that their dads are all involved in ministry work, I'm sure.  The members of Midnight Riot are: Amanda (19), Zak- drums (17) Kyle - guitar (18) Dylan - bass (17)  Austin - guitar (17).  

Check them out if you have a chance!

Having been a part of this industry since 1996, I can emphatically state that agents who are good at communicating with their colleagues and clients are much more likely to succeed than those who struggle in this arena. 

If you have trouble spelling, putting together a sentence properly, or speaking clearly and intelligibly, real estate will present a serious challenge.  This career requires nuanced and layered communications, with many "moving parts" to keep track of throughout the average transaction. 

Presently, I am in full-on hiring mode, having spoken with a handful of prospective agents over the past week or two.  I would consider myself to relatively picky when it comes to selecting agents, especially considering the liabilities associated with running a brokerage.  I evaluate phone manner as well as writing skills when I'm deciding whether to bring someone to the office for an interview.

Sadly, I sometimes get emails that make it an easy decision not to interview.  As an example, here's a (very slightly modified) email that I received recently:

my name is (xxx xxxxx) im very familiar with real estate laws but i dont have my licence. rite now i work for somebody that buys houses for cheap and sell them for 4times the value. im very familiar with the austin area i have alot of contacts over there. I live in xxxxxx rite now but traveling is not a problem. im intrested in working for you and maybe getting my licence in the process. my phone number is xxxxxxxxxx

I promise you that I'm not making this one up.  I think I counted 12 spelling and grammatical errors in this short, six-sentence message.  I'm not publicizing this email to make fun of the applicant, but to illustrate how important it is to be able to write well.

This next part might cause a bit of controversy, but it's the truth.  I've encountered a handful of licensed agents during my career that don't fare a whole lot better than the person above.  One of the reasons that it's difficult for the real estate industry to gain a lot of respect is because the bar is really quite low with regard to our educational and licensing requirements, at least in Texas (which is actually more stringent than it used to be).  I have a feeling that most states are in a similar boat.

I do wish that the barriers to entry were set higher in our business, even if it means that I wouldn't be grandfathered in, and I had to take additional classes.  I fully realize that I'm in the minority on this opinion.  :)

Anyway, I just wanted to provide a bit of food for thought. If nothing else, maybe I can inspire someone new to use spellcheck.

Thanks for reading!

Photo credit: http://www.flickr.com/photos/rakka_pl/2332343583/

So, I don't normally get up early on Saturdays. In fact, I don't typically get up that early any of the other days, either, if I'm being honest.  I'm not really a morning person, I suppose.  This is one of the benefits of homeschooling and being self-employed.

This past weekend was an exception for me.

I was invited to attend a talk/event that made it worth getting up before the sun. Tony Hsieh, CEO of Zappos. was speaking as part of the "Delivering Happiness" bus tour across the country.  It was organized by the Austin chapter of the American Marketing Association, and my friend Angela Brutsche invited me to come check it out.  Big thanks to her for this!

After watching the Zappos crew's introductory video "Happy Wrap" (which was actually a pretty catchy rap with an interesting hook that reminded me of the 80′s band Book of Love), it was clear that this was to be no ordinary networking event.  We were given nametags and instructed to list "something weird that makes you happy".  I originally chose the scent of freshly cut grass, then I was informed that everyone enjoys that (i.e. not weird enough), so I changed mine to "seeing older couples kiss".  Whenever I see that, it gives me hope, and warms my heart.  I saw my grandparents do this after being together for 64 years, and it made an impact on me.

But I digress....

After a brief introductory speech from Zappos' chief happiness officer (Jenn), Tony took the stage.  Well, there wasn't really a stage, since it was at an Italian restaurant meeting room, but you get the picture.

I've seen a lot of business leaders speak, and I've learned something from all of them, but I rarely come away feeling inspired.  One notable exception would be when I saw Gary Vaynerchuk in March.  I can now add Tony Hsieh to this list.  After listening to Tony discuss the evolution of their corporate culture, how they hire (and avoid hiring the wrong people), and the science of happiness, I felt excited to be able to implement some of the ideas I came up with for my own businesses.

The Zappos commitment to stellar customer service is well-documented and as solid as it gets, but it was great to hear some additional stories today from Tony.  For example, if you're headed to Vegas and you want to tour Zappos, just let them know ahead of time.  They'll pick you up at the airport, take you for a tour, and drop you off at your hotel ( this service is available Monday through Thursday).  He also mentioned that they recently set a new record for longest Zappos phone call, clocking in at 8 hours and 3 minutes.  He also mentioned that they field-tested one of their phone reps by having a friend who wanted pepperoni pizza call Zappos at 3am to see how they could help.  Not surprisingly, the problem was solved.  Clearly, they really just want to make people happy, and that has been the essence of their success to this point.

I picked up a copy of Tony's new book while I was at the event as well.  I just finished reading it today, and I'll probably post a review soon.  I would encourage you to pick up a copy.

Check out the bus tour site to see if they're making a stop in your city.  If they've already been through your area, maybe you can catch them next time around, if they decide to do a 2011 tour. 

If you want to learn more about what makes this terrific company tick, watch this:

Lastly, if you'd like an online resource that can help you to shape your company and its culture to be more like Zappos, visit http://zapposinsights.com.

Originally posted at 210 Consulting blog.

As part of our ongoing efforts to lose weight, I promised my son that he could have "special time" with me or my wife for every 5 pounds he lost.  I've lost roughly 50 pounds and he has dropped 35+ so far - we feel great!  About three weeks ago, he wanted to go for a hike at Zilker Park and explore a little bit. 

I had intended to make a longer video, but it was HOT that day, and we ended up changing our plans a bit.  Enjoy:

Originally Posted at: The Austin Dude