More on "E" Number 3: Ethics

Last week I added one more to my series about the 4 E’s of Real Estate: Effort, Expertise, Ethics, & Enthusiasm. I shared about "E" Number 3: Ethics. I had an experience where a client slipped through my fingers because I didn’t take him seriously. As a result, a newly licensed broker scored a major coup in his career. I’m thankful to have had the opportunity to learn from the experience, and as a result, I’m a better broker.

Which brings me to another point. There's no such thing as a mistake unless you learn nothing from the experience. I certainly learned from what I shared about last week. Here’s an interesting point to ponder: “You can’t fail. You can only produce unexpected results. The only true mistake or failure is not recognizing the opportunity to grow from these unexpected results in order to create new possibilities and greater success.” –Keith Rosen, Sales and Business Coach

When you treat everyone well, they’ll remember. In real estate, it’s not about one deal. You must keep your focus on creating long-term relationships that will last you your entire career.

In addition, working ethically means upholding the regulations established by your local Board of Realtors. Sadly, the real estate industry is notorious for high turn-around and disciplinary action against Realtors. To avoid this, commit to adhering to the highest ethical standards. Disclose any information that you know about listings regardless of how it may affect the deal.

Remember, your reputation is only as good as your last transaction. If you cut corners and get sloppy, it’ll take years to rebuild the trust that you’ve lost.

Lastly, treat your clients and colleagues the way you want to be treated. Be on time to appointments. Phone ahead if this isn’t possible. Most agents will understand if your current listing appointment has run long, making you late to theirs.

Return phone calls promptly. Work tirelessly to follow-up, even if it means you’re cutting into your vacation. I once interrupted my trip in Europe to make an important conference call between my client, his attorney, and his business manager, all three of whom were in Los Angeles.

In order for me to be on time for our 11:00 a.m. appointment in LA, I remained awake until 2:00 a.m. in Amsterdam. I refused to go to bed before the conference call because I was afraid I might miss the meeting. It doesn’t happen all the time, but actions like these are sometimes necessary to close the deal. Next time, I’ll share about the last of my 4 E’s: Enthusiasm.

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E Number 3: Treat Everyone with the Utmost Respect

As I’ve done over the past couple of weeks, I’m continuing with my blog series on the 4 E’s of Success: Effort, Expertise, Ethics, & Enthusiasm. So far, I’ve covered Effort and Expertise. We have now reached the third "E": Ethics. Maintaining ethical standards always will be the hallmark of your reputation. Sometimes you’ll falter, which is expected—as long as your vow to learn from your mistakes.

A few years ago, I was hosting an open house in Bel Air—one of the most prestigious neighborhoods in Los Angeles. The sellers listed the home for $12 million, and the opulent estate was worth every penny.

It was the end of the day, and I was preparing to take my signs down and draw the curtains shut. In the distance, I heard the rumble of a car. I looked out the picture window and saw a clunker that seemed more Beverly Hillbilly than Bel Air.

The car ambled its way around the circular driveway and the massive slab of metal stopped at the front door. Out stepped an elderly man and his companion, a small woman with a giant wig and a vinyl skirt that reflected the afternoon sun. The couple sauntered up the stairs, and I met them at the entrance.

“May I help you?” I asked, concerned that I wouldn’t be able to give them directions to the nearest swap meet.

“Yes. My girlfriend and I were driving through the neighborhood, and we stumbled onto your house. Can we have a look?” he asked.

I obliged, and they entered the foyer. “What are you looking for?” I asked, doubtful that I could help them, and annoyed that they had come so late in the day.

“Well, I just turned 80, and I’m looking to move into a new neighborhood. My girlfriend and I are planning to get married,” he said. He put his arm around the vinyl-clad woman and drew her near his body. “Doris is beautiful, isn’t she? You wouldn’t believe that she just turned 68.”

I nodded, wishing to cut the real estate meeting short to address more pressing matters, such as finding Doris a hairpiece that fit and a dress free from waterproof fabric. Besides, there was no way this couple could afford a $12 million home, I thought to myself.

I gave the two an abbreviated tour—one that reflected how I didn’t think they were serious buyers. Afterwards, they loaded themselves in the car and left in a cloud of blue smoke. I didn’t bother taking their contact information and neglected to provide them a business card.

Two weeks later, a young, newly licensed agent was elated to have landed a coup in his brief career. Michael explained the deal he had just closed. He was doing floor time when he took a call from an elderly man. Once he revealed more information about his buyer—his beat up car and his garishly dressed girlfriend—the connection was unmistakable. This was the man who appeared at my $12 million listing on that Saturday afternoon.

The elderly gentleman, whom I assumed couldn’t possibly afford to buy my seller’s Bel Air mansion, had spent his career as an accountant buying real estate and had just sold his collection of apartment buildings. The buyer ended up paying all cash for a $9 million home near the one where we met two weeks earlier. It was a humbling experience that I’ve never forgotten.

To avoid making the same mistake, insist on providing the same high-level of service to everyone. Who knows if the starving writer whom you assume is a waste of time will turn around and become the next executive producer of a hit show on TV or if the young woman you’re talking to will be promoted to CFO. You never know how the kindness you’ve extended toward the home’s housekeeper will benefit you later. Perhaps she’s a trusted member of the family, and her opinion of you will mean that a homeowner will select you as her agent. One more thought on ethics next week.

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"E" Number 1 and The Malibu Effect

If you recall from my previous post regarding the 4 E's of real estate, I promised to provide you with details about each: Effort, Expertise, Ethics and Enthusiasm. I started with "E" Number 1: Effort. I introduced you to the Malibu Effect. This is part two of that post.

If it’s your first time in a slump, welcome to the club. It’ll require a leap of faith to believe that business will improve. Trust me on this one. Unless you’re working in an area that people can’t wait to leave, the skills you learn during lean times will benefit you immensely once the market improves. Even in places that insurance companies insist are risky areas in which to live, you’ll still find numerous buyers who are willing to take the gamble and buy the property.

Malibu, for example, is home to the world’s rich and famous. It is also documented as an area at risk for landslides, floods, fire, earthquakes, and tsunamis. In fact, Malibu is one of the only parts of the country that is jeopardized by all five of these major threats from Mother Nature.

A flash fire will devastate a hillside in Malibu, turning some of the world’s most expensive homes into ash. A landslide will rip apart an architectural masterpiece. But after the initial shock, what happens? Within months, new buyers purchase properties or homeowners rebuild despite the threats that are stated on their insurance policies.

My point is that for every negative belief, there is a positive one that can take its place. Don’t let fear get in the way of accomplishing your goals. You can certainly find any number of reasons why you won’t make it in this business: natural disasters, economic slumps, and personal weaknesses. Despite these limitations, however, countless individuals are making a living and reaching their professional goals every day. How do they do this? They remain upbeat, create a supportive environment, and put in the effort.

The effort required to be a top performing agent will be immense. It won’t be easy and it’ll also require you to do your best even when external conditions are far from motivating. This consistency—effort regardless of market conditions—is one element that separates the best brokers from the mediocre ones. Next time, we’ll explore “E” number two: Expertise. This may be the most important of the four.

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An Outporing of Love

The days following my mother’s death have been ones where I’ve experienced immense expressions of love from family and friends. I’d like to thank those of you who have shown your care and concern in diverse ways.

Many have made contributions to the Shoah Foundation. Its website describes the organization as follows, “The USC Shoah Foundation Institute for Visual History and Education, with an archive of nearly 52,000 videotaped testimonies from Holocaust survivors and other witnesses, is part of the College of Letters, Arts & Sciences at the University of Southern California. The USC Shoah Foundation Institute works with a global network of partners to provide an array of valuable educational services that reach educators, students, and the general public around the world.”

In addition, our home was filled with the most spectacular floral arrangements, gift baskets, and platters of food. Some of you donated trees that will be planted in Israel in my mother’s memory. I observed shiva--the seven days of mourning in Judaism--where I was surrounded by visitors who prayed with me. With so many people in and out of the house, the generous gifts of food were greatly appreciated.

You all gave me strength during this difficult time, and reminded me of the many people who have been touched by my mother, who left this world a queen.

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