All I want to do is buy a house!

There was a time not long ago when it seemed as simple as a desire to buy a house. Sure you still had to apply for a loan, but that seemed to be a breeze, even it the person didn't have "it" all together, e.g., many lenders "bent" the rules a little here and a lot there -- remember? Well, now with all that has happened with all this mortgage mess, the foreclosures, the "underwater" homes, essential, the bursting of the proverbial housing bubble, this has done a 180 degree turn, and to buy a house nowadays you have to be ready to show the lender "the money," literally.

I have had to explain the procedures time and again to buyers who keep reminding me that this isn't the way they did it just a few years ago. The odd thing about these constant reminders is that people who bought a few years back seem to have grown used to just having the paperwork to sign, and are a bit miffed by the simple suggestion that they need to provide proof of just about everything. "Why do I have to do that?" came back a question from a reluctant buyer not long ago. Well, the rules to buy a house have gone back to the "normal" way it once was. In other words, you have to show the bank all that you say, and then, you have to be able to prove as much, e.g., where is your money for the down payment, why you have so many inquiries on your otherwise perfect (780 fico) credit report, or why your salary checks (stubs) have any discrepancy -- oh, and let's not forget that your w-2's and 1040's have to be "audited" too!

These requirements are nothing new. As a matter of fact many of these same requirements were in place before, albeit relaxed because everyone wanted to make a deal, and the deal-makers (the lenders), wanted the loans to pass certain audits to be able to package them into mortgage-backed securities that someone else (investors) would be buying/investing in. Well, that pool of investors virtually dried up, and now the only game in town is a pseudo-governmental secondary market, and this one is checking all the paperwork, and making sure the "i's" are dotted and the "t's" crossed -- literally.

So, you want to buy a house? The best thing you could do, as a buyer, is to be ready, willing and ABLE. And this means having the money in the bank -- you ought to have at a minimum a 3.5% of the purchase price for the down payment (for FHA program), plus another 3% of the same purchase price for the expected closing costs. Sure you will be able to negotiate many things, and in some cases "Homepath" sales, you might even get your closing costs paid (credited), and some bonuses if you close during some of their promotional periods. But, don't be too surprised if you have to have everything "squeaky clean" in regards to how you provide your details and the paperwork to support it.

Buying a house isn't any more complicated than it once was, it is now more rigidly reviewed, so, be prepared to give as much as the lender wants, wait as long as the lender takes, and work with all that is put on you to do. You want their money to buy; you now have to play by their new rules. The flip side is that you'll get fantastic values and the best interest rates available for mortgages. So, don't fret, just grin and bear it, oh, and put it in perspective – you’ll buy the house you can afford and enjoy for years to come!

Advancing Your Brand Through Diversity

As the U.S. continues to diversify, the real estate industry becomes increasingly fragmented and specialized. However, just like the country where you can have a Native American, Asian American, African-American, Hispanic American, or any other combination of ethnicity followed by "American," any well-run firm would benefit to have a diverse staff to operate well in a diverse community. Diversification is a natural progression and not an option, particularly where it prevails.

Here in San Francisco, California where Anglo (or Euro-Americans?) represent a slight minority, and the rest of the population represent the proverbial melting pot of ethnicity (the diversity that makes this area an exciting microcosm of cultures, languages, traditions and international flavors), companies embracing diversification tend to thrive, while those that don't, with the exception of bigger companies with a history, are either adapting or will disappear under the weight of the economic changes that continue to affect our industry.

For instance, those firms that have adapted typically have teams of one ethnic group or another, e.g., one office in the geographic area popular among Asians have a contingent of agents that not only speak the language but share the culture and are effective at serving that community, thus creating alternative income flows to the firm as a result. They accomplish this by specifically targeting both the public as well as the agents they need to attend to that public. Some companies embracing this mindset in the heyday of the first-time buyer, no money down frenzy established groups deliberately catering to buyers that were targeted by the language or the ethnicity, rightly or not. The idea of diversification isn’t to single out a community for questionable purposes, but rather to cater to the existing needs of the same.

As a former manager in a firm in the San Francisco bay area I witnessed how the company’s culture would spill over to the clients they attracted and served, albeit in a hap-hazardous fashion as opposed to a planned strategy. However, a company must establish a clear objective in undertaking any strategy to reach a specific niche, and what it is prepared to do to make inroads therein.

For starters, a company with such a marketing plan would do well to determine the size, customs, nature and shopping trends of the target group; not unlike the demographic studies done by any major franchise organization prior to undertaking a new location. Alas many real estate companies leave most of these sorts of investigative steps to random samplings, if done at all. A good broker/manager or company leader reviews where business is coming from and goes about creating paradigm shifts either in the recruitment or in the outreach, e.g., marketing, promotions, etc., for such endeavors.

One company where I witnessed this type of insight was a firm that catered to the Latino community in their midst by hiring predominantly Latino agent, in spite of the owner of the company being of Asian decent! Another firm that was located in a predominantly Asian community focused its marketing campaigns in that community by placing strategic billboards in the language of choice and attracting that populace to the firm. Another firm run by a middle-eastern gentleman attracted his client base through television advertising catering to “his” community through targeted ads in the language of choice.

This is a smart approach, albeit, as I pointed out earlier, hap-hazardous. A firm looking to stay viable in a changing economy needs to create an environment where such creative outreach isn’t left to whim or accident or worse, to the imagination of a well meaning agent or group of agents in the office. I recall a major franchise attempting to do something along these lines early on. They went about it in a way that seemed to be right – they even bought a magazine in the target market’s language! However, without a guiding principle, or someone who understood the niche well enough, this quickly went down a predictable path. The company shut down the magazine and all but abandoned their drive to attract the community they targeted.

This diversification isn’t solely about producing marketing pieces in the native language – something that can backfire due to poorly translated concepts if not wording. Rather it is about developing a complete strategy and creating the right venue to accomplishing this – from marketing materials to appropriate dissemination points, e.g., radio, print, fliers, to telecommunications and websites and having the right, trained personnel, including a leader, to complement that effort.

If done properly a company will reap a greater benefit from this type of diversification and keep greater control of a changing market and the niche it is creating or attracting. And it isn’t about leaving any one agent or group of agents to their own devices because this leads to losing control of the very vehicle that is being developed.

Presently there are numerous companies following this trend. However, many of them are doing so through the efforts of an agent or two, who, with some insights have stumbled upon virgin, and potentially lucrative territory. Lets face it, many non-traditional markets lack of information and leadership that is prevalent elsewhere, so it isn’t too difficult to see that one well heeled agent can capture a greater share of a given market. A company could do much more if they created the right approach with the right resources – and it isn’t about investing a great sum of money, after all, look around and see how many banks; title companies, home warranty companies, and other service providers now provide gratis many marketing materials in different languages. What it does require is someone to take the lead to create the right blend of resources, facilities and opportunities to attract the (untapped or under served) group(s) you see, through your investigations, as a viable source of your future business. Oh, and remember to bring on the right people to help you serve them properly – in their language where ever possible.

There are numerous example of how effective this strategy is throughout the country. Some companies have grown to become larger firms just following a simple approach – find a need and fill it, oh, and you don’t have to speak the language, but having the right key people who do is the way to go

Caveat Emptor or Buyer Beware applies to Realtors too, if only to Beware

Time and again buyers are reminded that when buying a house a prudent thing to do is exercise due diligence in investigating the target house entirely, from neighborhood conditions to possible natural hazards, and as of late, the area’s crime statistics. However, how often do Realtors heed such advice when working areas and homes unfamiliar to them? A recent story of an upcoming trial of a suspected rapist shows why, in addition to “Caveat Emptor,” Realtors, or anyone in service or sales may do well to remember “Praemonitus, praemunitus,” or being forewarned is forearmed

On any given day the average real estate agent is involved with numerous task that pits them face to face with potential buyers or sellers, who, for all intents and purpose, are essentially strangers. As a result of such goings on many otherwise cautious people let their guard down as demonstrated by the case of a woman real estate agent (name withheld), who in early 2008 was allegedly raped and nearly killed by what appeared to be a potential client looking to buy a house.

The unsuspecting agent was the victim of Shawn David Yates, 36, of Corona, who posing as a would be buyer, identifying himself as "Ron Jones" arranged to see a house on Silvestre Court, in Riverside County, at 10 a.m. on March 7, 2008. Without a care, the agent went about showing the house as she’s probably done dozens of times before. However, this time the result was much more than an offer she couldn’t refuse, it was an offer that nearly cost her her life. Yates allegedly ordered the woman to the ground while pointing what appeared to be a gun at her. He bound her wrists and ankles and held the gun to her head while he raped her. Yates proceeded to beat her on the head with the gun. He threatened to kill her, and perhaps would have were it not for the agent’s astuteness, who decided to fight back, "…I'm not going to let him kill me without fighting. I'm going to go down on my terms, not his," she recalls thinking.

Stories like these point out the importance of applying a buddy system and of doing the right things prior to going out to meet any person, regardless of how you came to know of them. Due to the use of the Internet sites where anonymity is paramount, these situations can develop a lot easier. The use of “social networks” makes agents more accessible to the buying and selling community, particularly when you see how much detail is put on these. I venture to say that it also makes them more vulnerable.

The case of this crime and this criminal have thrust into the limelight the importance of exercising common sense in dealing with people in general, especially for those whose daily routine puts them in similar situations. No one is saying that we need to be ultra sensitive to the possibilities of being victimized this way. However, many a time in the routine of selling a house any agent faces such possibility, particularly at the onset. If nothing else, there should be a safety measure incorporated into the agent’s activities. For instance, the agent who is independent rarely confides in anyone I’m going here or there, but rather “books” an appointment to meet someone at the house without so much as a clue who that someone may be.

Incidents like this are not uncommon, there have been others less alarming, e.g., someone showing a house and removing personal effects – common where lock-boxes are used to facilitate showings. Others, such as open house, are prone to having too many people overwhelm an agent, particularly when the house has too many rooms or too many floors to physically man or supervise when more than two people show up at any given moment.

Again, real estate agents being a trusting sort, have accepted some of these situations as “normal” but simple techniques could minimize the risks, if not eliminate them altogether. One way is partnering with another agent; another is to show by appointment (at the office first), to people who have been “screened” by pre-approving their credit and financial position – something that automatically makes that prospect more viable as a possible buyer, and, records their particulars where people will know about them should the need arise.

The case of Yates, who faces seven felonies, including attempted murder, kidnapping and three counts of rape stemming from the 2008 attack, was readily solved because fortunately the real estate agent survived, and the perpetrator left a blood trail leading to his nearby home where police quickly found incriminating evidence and arrested him – leading to his trial.

If nothing else, this case should serve as a wake up call to anyone in any service business, not just Realtor, to exercise caution just like the exhortations to buyers when buying a house, “Caveat Emptor” only for Realtors it should be “Praemonitus, praemunitus”; forewarned is forearmed.

Se Habla Español - Working With Latinos

As the debate on immigration reform heats up in the political arena, and the numbers of raids by ICE and reports of these in the news continue to give an alarming glimpses of a plight prevalent to and affecting a large segment of the Latino community, an obvious fact is sorely missing from most reports, and that is that Latinos, whether here legally or not, represent a huge economic force in all communities where they reside. After all, the money they earn allows them to pay rent, buy cars, put food on the table, support worthy causes, and a number of other things that make some industries show impressive profits, and a reason why many keep paying for promotions in the media catering to this group – in their native language, “Español”. Let’s consider what is important to work this market, because, as the saying goes, “…if you can’t beat them, join them…”

Evaluating how best to approach the Latino market starts no different than how one might approach any other market being served. The main difference is language. However, it is also important to note that not all Latinos who speak Spanish or have brown skin are of “Mexican” descent. This belief is a gross mistake made by many a well-meaning advertiser. The term “Latino” is a broad-brush stroke used to denote this group. Keep in mind though, that national pride plays into people’s psyche and is a deeply rooted and unforgiving concept, particularly if you make such errors in your marketing theme.

What else is important besides political correctness on addressing folks in this group? The U.S. Latino market is comprised of natives from over 20 countries from Central and South America, the Caribbean and Spain, with a large percentage of Mexican descent. Any marketing to reach this diverse group, where customs differ, is more than just translating exiting materials or messages. It is more about conveying a sales message and theme apropos to the respective segments within the larger group, e.g., Mexican, Salvadorian, Cuban, etc., perhaps in Spanish. The question is how can you do this for such a divergent group? Any notion to reach all Latinos with a uniform message is misguided. The best you could hope for is being effective in percentages.

Although Latinos share a common language, albeit with certain differences in dialects and/or pronunciation, the diversity of their origins, the assimilation, the education level, and the social economic level all affect attempts to lump your marketing message into one global campaign. Making things a bit more interesting is the next generation of Latinos, where yet another factor surfaces, that of communicating a specifically targeted message predominantly in English interspersed with Spanish – “Spanglish,” if you will.

Advertisers and media companies will highlight the usual breakdowns found in “regular” markets, e.g., 18-35 year olds, upper middle class, level of education, etc., to explain their target markets, as in the media of choice, radio. However, there are varying degrees of receptivity among any such demographics. For instance, Mexican 18-35 year olds may be inclined to listen to a musical genre known as "tex-mex or Banda," Salvadorians in that age group may lean towards Reaggeton or Salsa. Thus, if you want to reach one group you may have to advertise in one type of station, and do something different for another group. No one type of media will work well for all Latinos, so choosing the target group carefully, evaluating its potential return on investment (ROI), is the place to start.

What are the best communication channels that will reach the highest segment of the Latino population? With the advent of the worldwide web, many are resorting to the Internet. However, Latinos as a percentage, represent a very small segment of Internet connected groups, opting instead to word of mouth advertising or television or radio, unless you’re talking about the next generation younger segment, who is mostly connected via wireless devices, e.g., I-phone, etc. Surprisingly, print advertising is among the least effective methods, yet popular still for the publisher, as there are plenty of weekly papers catering to the Latinos with news content, albeit a weak choice for a cornerstone to any effective marketing strategy. In order of importance and reach, and possibly cost, and perhaps effectiveness, we have:

Television (49% of U.S. Hispanics watch television)
Radio (The entire family may listen to one station and tune in, on average, 26 - 30 hours per week)
Print (Minority newspapers are an inseparable part of the local minority community.)
Event Marketing (including sponsorships) (Events create excitement, reinforce image, and allow you to hand-deliver your marketing message face-to-face or in a venue where this is permitted.)
Direct Response (including telephone marketing) (Latino households are 3.5 times more likely to respond to a direct mail solicitation than a non-Hispanic household; and telephone solicitations are still an effective way to reach this group, provided it is done in a professional manner and in their native language)
Seminars, Workshops & Presentations (Although this approach sometimes does not fare well, complemented with the other types of promotions, it is a highly effective method to capture client for future business development)

As is true in any marketing campaign, one can certainly spend much more money and diversify to their advertiser’s content. However, any prudent businessperson will do a bit more research to the select targets within the larger Latino population they want to reach, e.g., studying buying habits, income levels, brand loyalty, and other such matrix, and then conclude on the selected group, and choose the best media to reach it. Test marketing on a smaller scale is always appropriate and a prudent thing to do, in spite of what any of the representatives may try to tell you.

Obviously novice entrants will grovel along doing what well-meaning media executives may suggest, believing that they ought to know, they work in that venue. However, many such executives are little more than poorly trained order takers, and culturally relevant marketing is more than just running a promotion that was effective in another venue or language, expecting the same level of success. There are countless examples of failed best intentions. For instance, a classic is the “Nova” (one of GM’s model cars). The term means “Doesn’t Go” in any Spanish-speaking country, so to market something that “doesn’t go” even with the fanciest of pieces or promos isn’t going to change that – RESULTS, a promotional flop.

Marketing that gets results comes from a careful study of the Latino subgroup one is targeting (after careful research of the buying power of that group, of course), and establishing a promotional campaign that is sensitive to what is important to that group. Obviously, this will mean an investment, but at the end of the day, the ROI will certainly leave a nice positive number on your balance sheet with increasing numbers of loyal buyers, and with a little care, a repeating trend with their referrals.

Oh, and let’s not forget, the growing numbers in their up and coming offspring, even though they may have transformed the language, still, Se Habla Español.