Visit our Website for Class Information and Schedules

www.elaeductaion.com

8220 Ritchie Hwy. Pasadena, MD 21122

(410) 223-7500

8. Answering e-mails about list-ings without follow up 9. Pinning your business card on bulletin boards (Don’t merely use a line like “Oh, by the way” before you ask for the referral. This tactic cheapens the referral process rather than raising it to the high level of honor and respect it de-serves). Remember: 1. It gets easier after the first contact. The first con-tact is always the most diffi-cult. Getting yourself to make the first contact is the highest hurdle. The only solution is to just do it. Af-ter you make the first con-

Prospecting is one of the most misunderstood con-cepts in the field of sales. I wanted to share my opinion about what ACTIONS I con-sider Prospecting What Prospecting Is: 1. Calling past clients asking for referrals 2. Calling people in your sphere of influence and asking for referrals 3. Calling / visiting / mailing to expired listings and FSBO 4. Networking within organi-zations you are a member of 5. Hosting open houses (preparing for them two weeks prior, set the stage with promotion, have a con-test to enter to win a $20 gift card – everyone will have to register his/her email ad-dress)

What Prospecting Isn’t: 1. Mailing magnets, calen-dars, and almost anything else without follow up 2. Setting up a website 3. Joining organizations without networking 4. Wearing your name badge without speaking with the person in front of you in line at Starbucks, Panera Bread, etc.. 5. Placing magnetic signs on your car 6. Sponsoring a community sports team without net-working 7. Doing floor time without previewing ALL of your of-fice listings, being knowl-edgeable and ready for a question and following up on any leads

What Prospecting Is vs. What Prospecting Isn't ...by Gary Hoffer

Featured Listings

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$574,900

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Westminster Presented by:

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4911 Bald Hill Road Adamstown $1,299,000

August 2010 Volume 2, Issue 8

TREC NEWS Special Features:

Broker Perspective 1

Inside this issue:

Deposits and Releases By: Cathy Freel

2

Continued on page 3

Page 2 TREC NEWS

Did You Know??

When an agent of

Century 21 TREC

recommends an agent from another

brokerage, and that agent affiliates with

Century 21 TREC,

the referred agent become a Pay Pal

to the referring agent for

Three Years!.

So you could be earning

7%!! of the companies

net profits on your

recruit’s transactions.

Just another way to put

money in your pocket!

Deposits and Releases...by Cathy Freel

Got a ratified contract? Are you sure? You need 3 things for a ratified contract – offer, acceptance, and considera-tion. In Maryland, your con-tract is complete when all parties receive a copy of the fully executed agreement AND there has been consid-eration aka money has changed hands. The earnest money is the “consideration” for taking the property off of the market. If your “consideration” is not depos-ited, you leave a window of opportunity for someone to challenge whether there is a binding contract on the prop-erty. The same rules apply if your offer is for a short sale property. The contract should still be ratified imme-diately, including a prompt deposit of the escrow money. Office policy is that you have 2 days to submit your paper-work and monies to the of-fice for every ratified con-tract. Sooner is better. The Addendum of Clauses allows for the holding of an EMD check at the buyers re-quest. Use caution when offering this option. Hold-ing a Deposit can ONLY be done in MD if the Title Com-pany or Attorney is holding the $$ and NOT the Broker (either listing side or buyer side). Plan ahead and advise your short sale buyer to select a settlement company experi-enced in short sales before you write the contract and

have the EMD made pay-able to the settlement company. This way, if there is a dispute, the at-torney is already up to speed. Jill Pogach Michaels, of Michaels Title and Escrow in Rockville, advises clients NOT to hold earnest money, but if you must then no later than right after the home inspection. On a short sale, it should be depos-ited right away (especially if you choose to delay the home inspection until the bank approves the sale) in order to “ratify” the con-tract with considera-tion. “As a listing agent, if there is no skin in the game from the buyer, don’t take it off the mar-ket. If the buyer is nerv-ous, reduce the $ amount to reduce the amount at risk. $1000 will suffice.” That being said, contracts may still fall apart. Once the monies have been de-posited, a Release Agree-ment is REQUIRED to acknowledge ANYTIME that settlement is not go-ing to occur. The agree-ment will specify who gets the EMD. Brokers may be granted part of the $$, per the release agreement, but they are not parties to the contract and their signa-tures are not required to execute the release. The agreement is between the principals of the contract

only. Be sure to consult your favor-ite broker, Gary, BEFORE presenting the release for signatures. If the parties cannot agree on the final disposition, the Re-lease includes a “B” section added in 2009, which allows the property to be placed back on the market. The parties agree in this section that their dispute relates only to who gets the de-posit, but that neither will pursue the other for specific performance under the con-tract. This allows the listing agent to put the property back on the market and the buyer to look for a new property. Now is a good time to check your active files. Are you really ratified? Does the office have all your paper-work? Does your CLIENT have a copy? I’d also like to thank Jill Michaels for reviewing my comments this month! When dealing with legal is-sues always CYA – consult your attorney! Michaels Title and Escrow has a Legal Hotline to answer many of your questions (202) 253-4393. You can also visit their website at www.JillMichaelsLaw.com.

Continued from page 1

TREC NEWS Page 3

tact, you realize it was not as difficult as you had imagined. The reality is not as difficult as your mind has created it to be. 2. Establish a routine. To be successful, you should have a scheduled time for prospecting daily when that is the only activity that is being done. Treat prospecting as an appointment. Do not allow anything to interfere with it. 3. Big “Mo”. At first, prospecting will be very difficult. Your skills will not be developed to the level of an expert. Once you start the process, do not stop. Momentum is critical to prospecting. Once you get the process going, your skills will improve to generate more leads and to set more appointments. Do not break your momentum. 4. Exploding the best time to prospect myth. The best time to prospect is when you have the most energy and when you actually will call or move with ACTION. 5. Focus on the goal or objective. Set a specific goal of what you want to happen each time you prospect. It can simply be to add two more names to your Sphere of Influence. 6. The power of scripts. Know what you are going to say to the prospect, follow a script if you have to and role play to get comfortable. 7. It is a numbers game. Prospecting is truly a numbers game – for two valid reasons. The first is the more pros-pecting you do, the less rejection bothers you. The second reason is prospecting will allow you to plan your income and results if you track your prospecting efforts, you will find you have ratios in your business. “24 Ways to Prospect” 1. Stay connected to your Sphere of Influence. This means more than sending them a holiday card. Send newsletters on a variety of topics. Call to provide updates on real estate regulations and market trends. Don’t forget to call just to say hello. 2. Ask your Sphere of Influence for referrals! This means more than including the famous line “I Love Referrals” at the end of a mailing. 3. Join an organization important to you. This is a great way to increase your Sphere of Influence. Once you join, start networking! 4. Contact Divorce and Bankruptcy Lawyers. Build rapport. Start networking! Ask if you can provide your business card and a package on “downsizing”. 5. Contact Locksmiths. Build rapport. Start networking! Ask if you can provide key chains for new locks in your target market area. 6. Market to expired listings. Don’t stop at 3-4. 7. Talk to For Sale By Owners (over 85% of people trying to sell their own homes give up and hire an agent). Don’t stop at 3-4. 8. Preview ALL of your company listings and listings in the area you service. This helps you get to know all of the in-ventory. While you’re out, stop by local merchants and offer information about the listings. 9. Start Blogging (ActiveRain.com, Blogspot.com). This is your platform to voice your opinion. It helps get your name out in the community. 10. Create an online cheerleading squad (Facebook.com, LinkedIn.com). The 50 people you know, that know 50 more people, equals 2500 people. Create a profile that includes your real estate information and join the Century 21 Fan Page.

11. Go door-to-door in your neighborhood to let your neighbors know you are the neighborhood expert (offer infor-mation about homes on the market, or homes that recently sold… don’t ask if they want to sell their home). 12. Send small gifts with your name and contact information (magnets, coffee mugs filled with candy) to your “A” Sphere of Influence list and follow-up. 13. Send a notice to your Alumni or Fraternity/Sorority newsletter (there could be alumni in your area). Stay con-nected regularly. 14. Advertise in your Homeowners Association newsletter. A simple business card listing is all you need. Be consistent. 15. Provide information to members of your church or place of worship about current market trends, interest rates, tax credits, etc. 16. Host an information session with First Time homebuyers. Partner with a Lender. 17. Contact the Human Resources Dept of local employers / Military bases. Offer to prepare a package of neighbor-hood information to include information on shopping, recreation, stats, etc.. (www.zipskinny.com) 18. Organize neighborhood parties or community yard sales (what better way to build rapport with the people that live around you). 19. Create a “Home Service Team”. Build rapport. Start networking! 20. Host a successful* Open House. * this requires more ACTION than just being present the day of the open house. 21. Pledge to add two new people to your Sphere of Influence every day .How? Talk to the person in front of you at the grocery store, Starbucks, Panera Bread. Ask if they would like to receive your newsletter about important real estate news. Get their email address. Give them your card. Follow up with a “it was nice meeting you” note. 22. Become a walking billboard by wearing t-shirts, baseball caps, umbrellas with your company name, logo and contact information. 23. Get involved in your community. Organize a food drive or Salvation Army pick up. Then offer to pick up the items donated. This is another chance to build rapport. 24. Wear your name badge every day, everywhere!

Our company Barbeque will be held Saturday September 25th at 1 PM at a location to be forthcoming.

If you missed collecting Moolah, just go to the admins in your

office and they will provide for what you forgot or missed.

The more Moolah, the more prize you can win!

Shashi Malholtra

8230 Ritchie Highway. Pasadena, MD 21122

410-384-9000 410-384-9155 fax

135 E. Main Street Westminster, MD 21157

410-876-1477 410-876-9218 Fax

232 Main Street

Gaithersburg, MD 20878 301-977-4663

301-977-1718 fax

CENTURY 21 THE REAL ESTATE CENTRE

Congratulations June 2010 Agents of the Month!

Congratulations TREC 2009 Agents of the Year

Congratulations Century 21 Award Winners 2009

Did You Know? The pictures that appear on the 80+ consumer websites we inform our sellers about our fed not only through VLS but also through the pictures you upload to 21on-line. If you are not uploading the minimum of six pictures to 21 on-line then you may not be “feeding” the system. Many websites will then have your listing photo-less. Prospective buyers may just skip over your photo-less listing and go to the next that has pictures. You don’t want that to happen...and neither does your seller. You can upload a maxi-mum of 20 pictures, but 6 is a must! Hint: 21-online doesn’t handle vertical pictures very well. They often times appear distorted and stretched to a horizontal size. For best results stick to horizontal shots when uploading to 21-online.