MARYLAND 4-17-23

MARYLAND EDITION

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TIPS ON USING DISRUPTIVE THINKING TO IMPROVE INNOVATION

COOPERATION, NOT COMPETITION, CREATES MUTUAL SUCCESS FOR AGENTS

DEVELOPING YOUR PRICING PHILOSOPHY UNTANGLING THE BIDDING WAR: A BUYER'S AND SELLER'S PERSPECTIVES

COVER STORY

MATT BURGAN

MARYLAND EDITION

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MATT BURGAN

CONTENTS 4) COOPERATION, NOT COMPETITION, CREATES MUTUAL SUCCESS FOR AGENTS 14) DEVELOPING YOUR PRICING PHILOSOPHY

19) 8 TIPS ON USING DISRUPTIVE THINKING TO IMPROVE INNOVATION 22) UNTANGLING THE BIDDING WAR: A BUYER'S AND SELLER'S PERSPECTIVES

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Cooperation, Not Competition, Creates

Mutual Success for Agents When people get along during a business transaction, everyone comes out happier. And in a service industry like real estate, agents have the power deliver that happiness. By working cooperatively, sharing advice and helping each other help clients, agents not only enhance their own reputations, but that of real estate in general.

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“Bring everyone together” Matt Kobelski, with Credentials Real Estate Group in Massachusetts, points out that providing good service involves more people than the party you’re representing. “I’m not afraid to bring together all the parties in a deal and say, ‘OK, let’s figure out a solution that works best

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Teaming up with an agent from a different brokerage on a transaction is not as uncommon or complicated as it might seem

for everyone,” he explains. “My goal is to avoid being adversarial.” Real estate, he believes, should always be a field in which each person can win. “It’s about working toward a mutual goal, shaking hands, and walking away happy that a seller sold, a buyer bought and everyone got what they wanted.”

But Is it that simple? Most agents have experienced the ways conflicting personalities and tension during a transaction can heat up even the most cordial relations. In reality, however, it’s more productive to let down your guard and work with others as a team than it is to allow stress and competition to preside. South Florida REALTOR® and broker associate, Risë V. Siegrist, for instance, has zero interest in competing with other agents. “It’s more important to be professional and associate with competent, caring people,” she says. By serving others with a cooperative spirit, experienced agents like Risë set an excellent example for emerging real estate stars. Risë hopes to be a model for the next generation of agents, training people who may one day become part of her team.

Risë’s position on cooperation inspires more reasons for nurturing relationships with other agents. Over the decades, many agents change brokerages several times. Who knows if that agent across the table will one day work at the Top Agent Magazine

same brokerage you do? Perhaps you’ll even have an opportunity to partner on an exciting, future transaction. Good relations keep doors open to endless possibilities.

Co-listing cooperation Teaming up with an agent from a different brokerage on a transaction is not as uncommon or complicated as it might seem. In fact, some agents cleverly capitalize on their collective attributes, rather than competing against one another. South Carolina REALTOR® Kimberly Pannit is a perfect example of the universal benefits of co-listings. Although she has always been an independent agent, Kimberly works hard to form professional alliances that give her business the feel of a cooperative network across brokerages.

This cooperative approach may be nontraditional, but it benefits clients in unique ways. By working closely with agents at other brokerages, she shows how agents can improve client service while helping one another.

Kimberly’s cooperative approach began in her own neighborhood, where an agent friend from a different brokerage also lives. “Several years ago, I approached her because both of us were friends with our neighbors. I asked, ‘Why don’t we give our neighbors superior service and

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co-list together? We both love our area and are passionate about our jobs, the location and schools.’” She also didn’t want to make their mutual friends choose between them when they could work together. “I said, ‘Let’s give them amazing service together!’” With their brokers’ permission, two weeks later the agents co-listed their first home and put extra energy into ensuring uninterrupted client service.

Networking and “Co-opertition” When the ultimate goal is to match a client with the perfect home or create optimal terms of sale for a listings, networking with other agents can facilitate that ideal buyer-seller match.

Nashville REALTOR® and broker/owner Lisa Land embraced every opportunity to contribute meaningfully to the real estate industry and to her local market, even before building her own team. “Agents would frequently ask me for help or advice,” she says, noting that she shares, rather than guarding, the methods she uses to get through difficult or confusing transactions. “I was fortunate to have great mentors when I started in real estate, so I’m always

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willing to offer help, even to agents outside of The Luxe Collective.”

Meanwhile, on Cape Cod in Massachusetts, Janet Leigh Scott describes the climate between agents as relaxed and professional. “While the real estate market is highly competitive, we’re truly a ‘co-opertition’ market; agents work together and a have greater sense of community than you might experience in off-island brokerages,” Janet says. “If I have buyer coming into town, I’ll reach out to agents I’ve done transactions with to ask if they have anything coming up that might not be on the market yet.”

Even in hot, competitive L.A. real estate, independent agents such as Andrej Nagy of The Agency RE knows the importance of receiving and providing professional mentorship.

“My relationships with clients are extremely important,” he says. “But my relationships with agents on the other side of a deal are also important.” For REALTORS® like him, working smoothly with other agents is a privilege.

Doing so builds rewarding relationships while ensuring win-win transactions for everyone at the closing table.

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Top Agent Matt Burgan is the Owner/Founder of Infinitas Realty in St. Mary’s County, Maryland.

Matt Burgan got his start in real estate through recognizing a need for better service across the industry. As an investor client himself, Matt found that the service he was getting from agents was never reaching his basic expectations. “My wife helped me by suggesting I get my license myself so we wouldn’t have to rely on real estate agents,” Matt recalls. “So I initially 8Copyright Top Agent Magazine

got my license for that reason. But shortly after that, friends and family found out that I was licensed and reached out to me to help with their real estate needs. I was happy to help, and I started to realize how much I enjoyed helping other people.”

Thus Matt’s real estate career was born, and throughout his 6 years in the business, Matt has continued to innovate and set Top Agent Magazine

himself apart through compassion and a high level of service.

As the Owner/Founder of Infinitas Realty, Matt continues to raise the operational standard of what it means to be a true Real Estate Professional. “I approach real

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estate differently than most agents,” Matt explains. “I lead with empathy on each transaction. I understand that these are human beings on the other end, with families and goals. I start from a place of compassion and go from there. That has created a niche approach for me, but it has also seemed to

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Matt also owns a real estate software company called Property Wand, which provides a real-time status tracker that helps clients understand exactly where they are in the process at any given time. fill a void that a lot of people are looking for when they entrust a real estate agent to help them buy or sell a home. They want someone who actually cares about them and is legitimately operating in their best interest.”

In keeping with his commitment to innovating in the real estate industry, Matt also Copyright Top Agent Magazine 10

owns a real estate software company called Property Wand, which provides a real-time status tracker that helps clients understand exactly where they are in the process at any given time. “I thought, why is it that people have the ability to see the detailed progress of an order from Domino’s or Amazon, but not the progress of a home purchase that’s worth hundreds of thousands of dollars?”

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Matt says of the idea’s origins. “By using the available technology to automate the process, my conversations with clients don’t have to be administrative in nature.

It’s more compassionate, checking in on how they’re doing and what else I could be doing for them.”

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Looking toward the future, Matt plans to continue raising the bar for agents in his industry and expanding his own business mindfully. “I want to grow Infinitas in our market area with the right agents,” he says. “It’s about having the right mindset. You have to have the ability to put

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your people before your pockets. I want to continue to raise the operational standard of what it means to be a real estate professional in Maryland so that other agents have to work harder and more compassionately to get onto our level.”

His commitment to service drives Matt in everything he does. “I really believe that

this is an important industry to be in, and it carries with it so much responsibility,” he says. “We as real estate professionals have to take seriously the impact we have on people’s lives and approach it with the right mindset. We need to get away from being hyper-focused on how much money we make, and refocus on the impact we have on people’s lives.”

For more about Matt Burgan, call 240-925-2224 email Matt@InfinitasRealty.com or visit InfinitasRealty.com www.

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Developing Your Pricing Philosophy

By Dirk Zeller

Ask a dozen agents to explain their home pricing philosophy, and you’ll

hear a dozen different approaches. And if the talk reveals frank responses, you’ll also learn that the most common pricing strategy is no strategy at all.

Here’s my advice: Break out of the ranks by establishing and following a specific strategy for arriving at the ideal selling price for each home.

Adopt the philosophy that, in real estate sales, price is king. Price trumps all other factors—including marketing approaches, home condition, market competitiveness, and sales approach. I believe that, in the end, marketing and condition of the property are controlled by the price.

The alternative, advocated by many agents, most sellers, and even some sales trainers, is to emphasize marketing over pricing. Rather than working to set the ideal price, they believe success will come from optimizing the home’s condition and presentation and then marketing it with skill and savvy.

I take the opposite belief, based on years of experience working with sellers who wanted unrealistic prices for their homes and who experienced firsttime sales failures as a result.

Over my sales career, I resurrected and re-listed more than 600 expired listings—nearly 75 a year. Among all those transactions, I never met an owner with an expired listing who thought that an unreasonable price had anything to do with the home’s failure to sell. They all blamed the previous Copyright Top Agent Magazine 14

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agent and that person’s approach to marketing. Each sought some magic marketing strategy to change the reality of the law of supply and demand.

There is a magic strategy: Price the home correctly.

Price is the only factor that can overcome sales obstacles, compensate for a home’s deficiencies, and motivate a purchaser even if the condition of the property and your marketing approach is less than perfect.

Getting the listing at any cost Does this scenario sound familiar? An agent (usually a newer agent) is short on business or maybe even desperate for the chance to stake a sign in someone’s yard. The agent wants a listing at any price – even if the chance Top Agent Magazine

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to seal a deal erodes the likelihood of selling the property. To gain a seller’s nod of approval, the agent makes a flatteringly high pricing recommendation, throwing out a number the client wants to hear and then hoping something good will result from the bad situation.

I can think of few examples, if any, where this philosophy works. Hope isn’t a successful pricing strategy. Worse, the please-the-client mindset is a hard one to abandon. Agents who achieve listings with unrealistic prices find it hard to later counsel their clients honestly.

If you take and price a good listing competitively, it will sell. You can’t keep a good price a secret!

The pitfalls of a “please the buyer” approach are many and significant. By overpricing, you can practically count on a reduction in your productivity, profitability, and salability, and here’s why: It’s impossible to keep your productivity high when your time is spent in conversations with an unsuccessful seller who lacks motivation to take corrective action. The seller’s negativity, concerns, and phone calls will only increase with each week or month the house remains on the market.

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As time goes on, you’ll devote more and more time unsuccessfully trying to create a sale not only for your seller but also for yourself. This will pull you away from activities that are more likely to deliver income. The ensuing frustration will de-motivate you and stunt your ability to secure better appointments that create other income opportunities.

An unsold, overpriced listing negatively impacts your profitability because it costs you time and money to service while it delivers no revenue to your business. And the situation only gets worse the longer the listing languishes on the market. You’ll end up deducting the expenses of this in-limbo listing from the proceeds generated by any revenue-producing deals you manage to close in the meantime, reducing your net profit and business success.

Unsold homes that linger on the market seriously diminish your salability, which is the term that describes your sales success track. Your salability is based on such key statistics as your average ratio of listing price compared to sale price and the average number of days your listings are on the market.

Obviously, these statistics, which prospects rely on when choosing one agent over another, can be crushed by a “get the listings at any cost” philosophy. They’re also harmed by the “start high and reduce later” tactic.

If you take and price a good listing competitively, it will sell. You can’t keep a good price a secret!

Dirk Zeller is an Agent, an Investor, and the President and CEO of Real Estate Champions. Copyright©, Dirk Zeller. All rights reserved.

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8 Tips on Using Disruptive Thinking to Improve Innovation You might be wondering what disruptive thinking is. How can anything disruptive be good? Well, if you’re caught in a stagnant place, shaking things up might be exactly what you need to gain some momentum in your personal or professional life.

the norms that keep you from being creative and implementing big ideas. Here are some simple things you can do to find opportunities that might be hidden if you stay stuck in the status quo.

Sometimes taking a step out of your bubble will give you a much needed perspective and allow you to achieve the breakthrough you need to take things to the next level. There is no more valuable commodity in today’s business world than innovative thinking, and the key to innovative thinking is breaking down

1. TAKE RISKS

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Without risks, there usually won’t be any major rewards. Sure being steady and careful might keep things going marginally well, but if you really want to go big, you need to go all in sometimes. If you go through the history of great innovations, none of them

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were achieved by playing it safe. Embrace mistakes. Learn from them, they often provide valuable insight and that will lead to great success on your next attempt.

2. FAMILIARIZE YOURSELF WITH A COMPLETELY DIFFERENT INDUSTRY This might seem counter-intuitive, but you’d be amazed at what you can learn by looking into successful companies, no matter what the business type is. You’re almost certain to find valuable solutions, systems or technology, that might fit your business, giving you a unique advantage over the competition.

3.BE CURIOUS Break some of your daily habits, even if it’s as simple as ordering a new dish at your favorite restaurant. Even the smallest changes can help spark a new idea. Always be on the lookout for new ways to do things. Little innovation are all around you. If you remain curious and keep an open mind, you’ll be surprised as to what might spark the next great idea.

4. PICK THE BRAIN OF A NON-EXPERT Yes, there is a lot to be gained by having access to someone with an expertise in your field, but you can learn a lot from a newcomer as well. They are a blank slate, and may inspire you with their completely unique point of view on things as someone just starting out.

5. BE LESS JUDGMENTAL It’s very easy to dismiss a new idea. You have experience and that can oftentimes lead 20

to a million reasons why something won’t work. But there really is no harm in ignoring your initial impulse and thinking it though a bit more. If you or someone you work with has passion for an idea, it’s definitely worth pursuing.

6. CHANGE YOUR PERSPECTIVE We tend to look at things in a linear way.

If you feel like you’ve stalled out on something, literally flip the script. Re-imagine it from different perspectives, reverse engineer the process. Anything you can do to see it from all angles, might get the creative juices flowing again, and could even lead to a breakthrough.

7. VALUE CHAOS Yes, it’s great to be organized and have a plan, but sometimes a little randomness can be that added ingredient that makes it all work. One of the major keys to successful disruptive thinking is breaking up everyday patterns. Sometimes the path to rational solution is filled with chaotic moments.

8. BE WILLING TO LET GO Don’t be rigid. Even the best ideas can always be refined and improved. You’ve invested a lot of time in your idea and it can be hard not to cling to it, but input from other people will only strengthen what you want to do.

Having big ideas is great, but you also need to be pragmatic. Recognize changes you might need to make to get your big idea implemented. Disruptive thinking is all about flexibility.

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Laughs!

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Untangling the Bidding War: A Buyer’s & Seller’s Perspectives In a competitive marketplace, bidding wars become the norm. While this may put sellers in an excellent position to recoup on their investment, it can push buyers beyond their budgets and test their temperaments in the process. As an agent, how do you navigate both sides of the coin? After all, you want to net the best results for your client—regardless of which side of the closing table they’re on. To fortify your approach to a heated bidding war, here are a few ideas and insights to better clue you in on the perspectives of buyers and sellers alike.

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Buyer’s Perspective: Emotions Running High?

Channel it.

When the market is booming, buyers feel the pressure—especially when affordable inventory is limited. This can create stress, feelings of hopelessness, and impulsivity. As an agent, how do you channel this emotional energy into something positive? Consider asking buyers to put those anxieties and high hopes onto paper. Have buyers outline

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who they are, why they’re inspired to buy a home at this juncture in their lives, and how they see their lives unfolding once they become a homeowner (or repeat homeowner). Think of it as a letter of intent.

Buyers benefit from taking abstract fears and dreams and articulating them on paper. Likewise, this document can serve as a valuable tool during a bidding war. Letters like these can help sellers with multiple offers make a personal, emotional connection with a particular buyer.

Sellers Perspective: Manage expectations.

When multiple offers are rolling in on a property, it’s easy for sellers to get carried away. Numbers are flying, expectations are heightened, and sellers may become hypnotized by higher and higher offers and ideal outcomes. While it’s good to celebrate prime market positioning, it’s also important to maintain an even keel so that your seller’s mind is clear and they’re thinking rationally through their options.

Sometimes the highest offer isn’t necessarily the sure thing. Manage your clients’ expectations by leading by example, offering a balanced perspective, and talking them through all potential outcomes so that they don’t only hone in on the best-case scenario.

During a bidding war, tensions are running high for seller’s too, who will soon begin their next chapter in another home. Keep a cool head and remind your client to see the big picture, recognize that it’s possible for some offers to fall through, and to sit tight until the closing table has been successfully reached.

Buyer’s Perspective: How do you authentically and convincingly convey your interest?

When ten or so offers are in the mix, it can be hard to differentiate your buyer from the next. While numbers will obviously do a lot of the talking, you’d be surprised how much of a difference a Top Agent Magazine

personal touch can make. Some popular approaches to standing out include personal letters—as mentioned above—tailored to the property. Was the property in question a family home for years? You might have clients detail their dreams of raising a family inside those walls, rather than tear the property down and rebuild something to boost the lot’s value. Including a family photo is also a good tact for personalizing letters in a bidding war. Likewise, little gifts included with your offer can speak volumes about your personality and due diligence as an agent. It may seem a little cheesy, but when sellers are looking at ten near-identical offers, those personal touches can really paint a compelling, personalized picture.

Seller’s Perspective: How powerful is cash?

Data shows that cash offers—typical of investor clientele—double the chances of having an offer accepted. This goes hand in hand with waiving a financing contingency, which also helped boost the probability of an accepted offer, according to research. Cash is king, however, since offers that aren’t completely reliant on comprehensive financing seem to minimize risk for sellers, who are already eager to see a deal go through. Cash deals also tend to go through quickly, freeing sellers up to pursue their next property and move on to new horizons. While not every buyer has the ability to operate in cash, it’s a worthwhile consideration for those in ultra-competitive markets and with liquid capital.

While the bidding process can be stressful for agents and clients alike, it’s important to remember that it’s a time of opportunity, too. If you want to make the most of it as a seller, data shows that a personal touch can endear buyers to their seller counterparts. For sellers navigating a competitive process, it’s important to keep a balanced perspective. For agents, here’s the bottom line: get creative, be resourceful, and use all the tools in your arsenal to achieve the best result for the clients you serve.

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