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Sometimes in our business, it’s the most obvious things that are overlooked as the biggest opportunities for both Realtors and their clients. So many things in our industry are done only because that is what others do, or because what is believed as the right way, when in reality, so much of what is done in real estate now has become the absolute worst and in many cases the laziest ways of doing things. In this post, I plan to address one of the most ridiculous assumptions and most common mistakes Real Estate agents are making and how it could be hurting their clients.
Let’s deal with some reality for a second… MOST buyers are moving from somewhere verses buying as an investment/rental, and the best qualified and most motivated buyers are those that are selling a home to either move up or move down from their current home. Yet, in our industry, the “contingent” buyer is the LAST buyer that many real estate agents would advise their clients to accept an offer from and frankly the term has become almost tabu. The overwhelming common belief is that a “contingent buyer” is the most risky. Even if the buyer/sellers current home is in escrow, many real estate agents will advise their sellers to take the non-contingent buyer even when they are going to pay CASH upon the closing of their home. This is a scenario that has perplexed me for years. I’ve preached a million times about what a ridiculous practice this is. This practice and belief is so deeply ingrained into real estate agents in our industry that regardless of the common sense and logic behind it, so many continue to push away these great buyers sending them back home discouraged and often causing them to just give up on the whole process.
Let’s analyze this for a minute. EVERY single buyer is “contingent” upon one thing or another. Whether it’s financing, inspections, appraisal, etc. So the thought that any buyer is a lower or higher risk than another because they have a home to sell/close is ridiculous. In reality, the highest risk buyer is the buyer with the lowest MOTIVATION! All things being equal, a buyer who NEEDS to buy verses WANTS to buy is the one who is most likely to do whatever it takes to close. But even better is that the buyer who NEEDS to buy is almost ALWAYS willing to pay more and overlook small issues like inspections/repairs, and they are committed to closing the escrow on time!
My contention and the reason for this post is that I would like to end the unfair pre-judgement of serious contingent buyers who simply have a home to sell or close since in reality, many of these buyers are not only good solid buyers, but the best buyers a seller could ask for in today’s market.
Now as promised in the headline of this post… A simple strategy to get more listings while helping sell your listings and do a great job for your sellers; JUST SIMPLY HANG A SIGN RIDER ON YOUR FOR SALE SIGN (AS WELL AS WRITE IN THE REMARKS IN THE MLS, “CONTINGENT OFFERS WELCOME”. This simple strategy will help prospective move up or move down home sellers to reach out to you and ask you about your offering. It will attract buyers (who have a home to sell) that have been turned down by many other sellers/agents to reach out to YOU to see your listing. Of course, you need to do your homework and make sure the buyers are qualified and they price their existing home within salable market value, but frankly that is the easy part.
REMEMBER… The biggest fear for any seller is their ability to find a place to move to once they sell their home. As Realtors, whenever we can provide a solution to that problem, everything else becomes secondary and so on. By offering your listings to contingent buyers, you help solve the problem and this will get you listings!
I’d even go so far as to become and signify on my marketing that I am a “Contingent Buyer Specialist”!
Now how many of you would be opposed to taking a new listing and selling them your listing, contingent? I doubt anyone.
Think about it!
Oh… And try sharing this strategy on your next listing presentation and you’ll look like a genius! 🙂
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It’s official! Construction beginning Sept 2015. The city of Yorba Linda, the building owners, and our corporate headquarters in New Jersey have formally approved our 3rd floor addition to our North Orange County Yorba Linda regional office! This addition will add 5000SF to our already 10,000SF office taking us to a magnificent 15,000 total square feet! Our plans are to add an 1100SF gym, a full service mini fully staffed gourmet cafeteria, as well as 12 more large private offices and 20 more workstations. We intend and are awaiting approval for Mon-Fri valet parking service for our associates and clients! More info to follow! 🎉🎊
For more incredible details and info click here!
Well if I’ve heard it from our competitors once, I’ve heard it a hundred times… “Corporate owned is bad, Corporate owned is slow, etc. etc. etc.” For many years I believed the same thing and perpetuated that belief. Which unless we have been there, done that…bad on all of us to make such assumptions on anything, anyone, or any company, really without walking a day in those shoes. And then after nearly 20 years of working with several smaller independent brokerages and frankly loving many things about them, I made the move to the largest corporate owned Real Estate company in America. To say that I was a fish out of water would be an understatement! Almost immediately I was issued a “worldwide ID number”, given a list of usernames and passwords, and a 3 inch thick packet of orientation pamphlets, instruction sheets, and welcome letters. Of course, understand I was an employee and not an independent contractor…but I was certainly taken back regardless. Within a few weeks I was in a full day orientation meeting followed up with online ethics, anti-harassment, and, international commercial bribery classes. Not how to do it of course but what NOT to do! The look on my face when I got my tour of the enormous regional corporate office and support staff was reminiscent of the Clampetts when they arrived in Beverly Hills.
Now I’ll admit, I spent some time looking back early on in my corporate relationship and at times missing the simplicity and informality of my previous lives at the smaller independent highly personality driven firms. There was certainly some advantages to being small and nimble and I definitely admire the enormous personal investment an independent entrepreneurial owner brings to the equation when it comes to competing in a highly competitive industry like Real Estate, especially with the big brands at play in the sand box.
However, what I have learned in the past year and a half working within a very large corporation, would surprise many. The advantages FAR OUTWEIGH any of the perceived negatives. As a matter of fact, many of the things that I and others perceived as “negatives” are precisely what makes the company so great, so financially stable, and so professional. And when the perspective is changed to analyze the actual reasons behind many of the systems and processes, it becomes blindingly obvious that this is how any professional organization should be ran in America today.
Allow me to share some specific reasons a large public company offers so many more advantages and benefits to all of those affiliated with, employed by, or a customer of such a firm:
1. MAJOR DECISIONS ARE NOT MADE IN HASTE OR TOO QUICKLY – For a major decision to benefit an organization, it’s associates, employees, and the customers, time should be given to analyze and ensure that the decision can be announced, and executed upon in a clear and systematic approach. All departments involved have the opportunity to share input on their role and ability to deliver, a solid timeline is determined, and all front line employees are clearly directed on their specific roles, trained if necessary, and supported to deliver to the field. When time is given to properly and by the appropriate people, then once the decision is made, you can take it to the bank with a large company like Coldwell Banker. When a product is rolled out, it is here to stay and will not go away unless it is for an improved product/upgrade.
2. FROM THE FIELD TO THE BOARDROOM: I always though a corporate company leads from the board room down. Not here. It lives and breathes from the field to the boardroom. Input from the field is bigger than life in vison, philosophy and execution. Not only do employees and departments bring ideas, feedback and input but independent contractors and customers ideas and feedback is weighed heavily.
3. NO PERSONAL BIAS – In a large public company, decisions are made on the merit of the business objective. It is included in our education process and managed closely so that there is not a conflict of interest at any level. It’s really simple. We ask the right questions and evaluate the opportunities with full disclosures, proper checks and balances. Will it help grow the business, make the business more efficient, assist our independent contracts and customers, and reduce risk and liability exposure for all involved? It’s not about the person proposing it, or someones personal feelings or agendas. If the business and it’s people and customers will benefit, then it’s a no brainer and put into the queue to ensure a successful implementation at a strategically appropriate time. No… It doesn’t happen overnight, but it happens at the appropriate time and for the appropriate reasons. It happens right the first time and with no chaos.
4. LEVELS OF LEADERSHIP – While it’s great to say that “the buck stops here”, no one person in a large public company has the power to hurt the entire business unit. Certainly not for long before change is made. Everyone’s focused on delivering a positive result and outcome and having levels of leadership and approval processes ensure that everyone is protected with proper gate keepers that ensure the success of the organization as well as it’s longevity!
5. NO DRAMA – Just business! Drama serves no business purpose. Only personal agendas. It is unfair as well as unprofessional for drama to be brought into a professional organization at any level. Large corporations are able to manage this a lot more effectively than smaller mom/pop shops where personal dramas not only can interrupt business emotionally but financially.
6. SUCCESSES ARE REPEATED, FAILURES ARE NOT – Large public companies are held on high expectation and performance plans NOT to repeat them, especially in this day and age. Failures can make national headlines in large public companies as we have seen in past years. This scrutiny forces better decision making processes. This is good for all who are involved in and around corporate companies. Sign me up!
7. TRUE HUMAN RESOURCES DEPARTMENT SUPPORT- The people make the business and in large public companies there is no higher priority than the fair and respectful treatment of its people. No one is above the law or the rules regardless of position in the company. Checks, balances, processes, and
experienced HR personnel are in place to ensure everyone is treated fairly and properly. Continuous training/education is in place to keep everyone abreast and up to date on all applicable laws, policies, and procedures. This creates a phenomenal work environment for everyone in the company leading to higher levels of productivity and service. Everyone knows exactly where they stand in the company at all times.
8. FINANCIAL RESOURCES – It goes without saying that with the extraordinarily large dollars in resources that better decisions are made, problems can be solved, and time and support can be given to realize bigger and better objectives for all. Coldwell Banker Residential Brokerage with its size and power is the only firm I know of that even offers their own legal assitance program vs just insurance which includes claims/disapprovals, large deductibles and probable delays and red tape. Coldwell Banker’s Legal Assistance program is the only one I have ever heard of that goes all the way to $20,000,000 per transaction in claim assistance with a NO Independent sales associate dollar participation – meaning that the independent sales associates are in good hands in the event of a legal challenge. On a good note, with large financial resources, it’s no wonder CB can offer so much more advertising, technology, branch and corporate staffing -including a marketing coordinators in each branch onsite, and world class facilities.
9. FINANCIAL STABILITY – A well ran large public company will do what is necessary, absent any ego, to ensure the longevity of the business for the good of the people within it and it’s customers and shareholders at all times.
In the past year and a half, I have learned to LOVE the large corporation from a business as well as a personal perspective. I have learned that good solid business principles with healthy accountability help to dramatically clear a path for employees, and independent sales associates to focus on and thrive in their jobs at work and their families at home while having the confidence that the business will be around for a very long time. With that said, I’d say that the biggest “aha” was in seeing all of the people who have affiliated with Coldwell Banker Residential Brokerage since I joined, fall in love with this organization and it’s immense professionalism with no complaints about it being too “corporate”. There’s no question that there are incredible smaller companies that are amazing places to work and do a phenomenal job so this article is not intended to take away from their amazing accomplishments but rather end/clarify the perception that large “corporate” is bad in comparison. Let’s just say that there are clear benefits to each and this article was to provide another perspective – mine, one I have personally lived through for over a year and half and feel quite qualified to comment on. These are my opinions and observations and should not even be construed or reflective as the view or opinion of Coldwell Banker or other corporate companies.
In closing I would challenge anyone who is still holding on to the belief that a big “corporate” organization is bad, to pick up the phone and call any of our independent sales associates who have joined us from a smaller or non-corporate run company and ask them what they think after affiliating. I’ll bet you’ll be surprised that the last thing they say is that “Corporate” is a bad thing or a bad word! Corporate to them is resources, stability and FUN!
If you’d like to come find out why Coldwell Banker Residential Brokerage is such a great place to work, then feel free to email or call me at Brad.Pearson@camoves.com or 714-782-2723 for a confidential appointment.
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Coldwell Banker Residential Brokerage
OWNED AND OPERATED BY NRT LLC. …and so glad we are!
I had to share this video with you all. If you’ve ever seen Gary Vaynerchuk speak then you already know how direct and raw he can be. For many his messages resonate deeply. I myself just love the simplicity and “in your face” approach he takes. And this video is one of my absolute most relatable favorites. Enjoy!
It’s nothing new in our business… Agents switch companies all of the time. But it is a rare event when a large amount of them move to a single firm in such a short period of time! In the past 12 months almost 100 (94 to be exact) licensed real estate agents left their previous brokerages and affiliated with Coldwell Banker Residential Brokerage’s new North Orange County branch. What makes this so hard to believe and frankly so astonishing, is that so many of these great agents left the companies they were at for very many years. And frankly, the companies they left were all great companies too. So, what happened? Why did so many people move to Coldwell Banker in such a short period? Well, there’s been a lot of speculation as to the answers to these questions. I won’t list all of the reasons that I’ve heard floating around out there, but I will answer the question and dispel any and all rumors or speculation.
After years of just a couple of companies dominating the North Orange County market place and trading agents back and forth, the need for another full service but very different option became clear. And when Coldwell Banker Residential Brokerage announced their expansion and return to Yorba Linda, the decision became very easy for many. The single largest and #1 real estate firm in the US with over 700 offices brought an offering that met and far exceeded the needs of the customer and the agents with a well known brand combined with an established luxury component, powerful mix of readily available and extensive marketing at the branch level and beyond, advertising, education, financial stability, and overall resources. It was simple to many… A shift from their company to CBRB and they suddenly have MORE to offer their customers in so many tangible ways. Add to everything tangible that was astonishing, the intangible yet immensely important components of leadership, culture, reputation, ethics, and environment were icing on the cake. To quote Graeme Raid and Jacquie Robinson who said it so perfectly “We frankly didn’t know what we didn’t know until we made the move. And it just keeps getting better!”. Quotes like this have become a common theme amongst those who have affiliated with Coldwell Banker Residential Brokerage.
By now you may be curious “Who made the switch to Coldwell Banker?”, so for the answer to that question and to avoid typing a very long list, just click this link to view our office roster of over 120 agents… I think you’ll be surprised at many of the names on the list (and there’s many more to come); http://www.californiamoves.com/Associate/AgentTeamSearchResults.aspx?StateID=9&RegionID=-1&CityID=43103&OfficeID=449&IsSatelliteOffice=False&OfficeName=Yorba%20Linda&IsFromOfficeSrch=True&SortColumn=LastName
With just 31 days left in 2014, it’s the perfect time to explore the opportunities at Coldwell Banker and find out what you’ve been missing out on all of these years! You really do owe it to yourself. It certainly can’t hurt!
For more information visit http://www.WhyCB.com and read all about this amazing company!
For a confidential interview, just email Brad.Pearson@camoves.com or Call/TXT 714-782-2723
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Like the old saying goes; “if all you have is a hammer, then everything looks like a nail”, for many real estate agents, their solution to every single homes failure to sell is to “reduce the PRICE”. Some agents work expired listings and actually do nothing more than over focus on getting a price reduction rather than actually analyzing the overall marketing efforts and other factors that could have caused the failure. Unfortunately many home sellers don’t interview enough agents and/or select their agent based on commission, price opinion, or because they got a notepad left on their doorstep and after a month or two for sale the agent begins to send emails recommending price reductions. While certainly in some cases price is the issue, until the 5 other items are examined and executed on thoroughly it is absolutely premature to ask a seller to reduce their price in many cases. I’ve said this a million times if I’ve said it once, asking a home owner to reduce their price should be taken very seriously and treated like a doctor prescribing surgery to a patient. Just as a good doctor would not prescribe surgery to a patient without exhausting all other options, a good real estate agent should not recommend a price reduction unless all other options have been exhausted and of course as long as the home is priced fairly amongst the competition and comparables in the area.
Here are the 6 primary reasons a home fails to sell in today’s market:
1. EXPOSURE – Lack of exposure, negative exposure, over exposure, bad marketing, MLS misuse.
(While we all know that Exposure Creates Demand and Demand Drives Price, it also drives the sale! Not all agents and companies can provide adequate exposure. In past markets with low inventory levels and a high number of distressed properties on the market many companies and agents got by without much marketing and advertising. In today’s market, cutting corners can cost a seller money and cause some agents to over focus on price since their ability to market and advertise adequately is limited. When a home owner interviews a Coldwell Banker Residential Brokerage Realtor they are often blown away by the amount of advertising and marketing we do for every listing in comparison to some competitors.)
2. TERMS – Impossible or difficult to meet terms can dramatically reduce the buyer pool. Ex. Cash only, Conventional only, difficult to finance properties, no contingent buyers, and even overly paranoid agents who use the agent remarks in the MLS to make it very difficult for buyers to submit offers. Ex. Unreasonably/unnecessarily large deposit required, unnecessary cross qualifications, other terms and restrictions listed unnecessarily in MLS.
(Always as sellers if they are open to carrying a first or second loan for a buyer, always fully explain the advantages and disadvantages of offering the property to contingent buyers as many sellers may not mind the risk and extra time in exchange for a higher sales price. Remember, it never hurts to get more offers and the seller can always counter terms during the negotiation process!)
3. DESIRABILITY – i.e. Condition, Location, Functionality, etc.
(Some of these you can control and improve and others you cannot, but addressing this is critical. Improving the condition of a home is something fairly easy to do if the seller can afford it, but there’s little that can be done about location of course.)
4. ACCESSIBILITY – Restrictive showing instructions, no lockbox, limiting showing hours, appointment only, etc.
(With thousands of homes on the market, many agents are looking to make their jobs easier and difficulty in showing will cause a reduction in showings, leading to fewer potential buyer opportunities. Unfortunately this is a reality, especially in higher inventory markets.)
5. COMMISSION – An uncompetitive co-op broker/buyers agent commission offering can potentially limit showings. While it may not be right or fair, let’s be honest here… If there are 3 similar homes on the market and one is offering 4%, another is offering 3%, and the other is offering 2%, which one do you think the buyers agent is going to go out of their way to show and sell? In most cases, a buyers agent has shown 20, 30+ homes over several months in some cases, it’s impossible to believe that they aren’t at least taking a passing glance at the commission being offered on the homes they are showing.
6. PRICE – A home should be priced very carefully and thoughtfully within a reasonable range of closed, pending, and active listing comparables while taking into consideration the current market factors, condition of the property, location, amenities, and many other factors. The best agents use very many factors as well as their depth of experience to properly recommend the right asking price for the property. If a home is not selling after adequate time on the market, and after the above 5 other items have been thoroughly executed, then it is reasonable to determine that price is the issue.
So whether listing a home for the first time or prospecting expired listings, being able to articulate the importance of these 6 items while providing a clear and concise analysis of each one along with a comprehensive plan to execute on the plan with guarantee success while ensuring that your seller achieves top dollar for their home.
As a Coldwell Banker agent, you have the most extensive marketing and advertising and will have no problem showcasing your ability to reach more potential buyers than any other firm. From our View Magazine with 1.2 million in distribution per month, to our massive online exposure, you can easily show a prospect that they have the best possible chance at achieving their price. Using the list above will enable you to have a professional discussion with your clients that will allow them to make solid financial decisions based on facts rather than opinions and they will know that if you are having a price reduction conversation with them, that you are doing so only after exhausting all other efforts.
If you are not with Coldwell Banker and you feel like your current firm has limited tools to enable you to adequately expose your listings to the market place, then it may be time to explore the opportunities at Coldwell Banker Residential Brokerage!
As always, it is my goal to help all agents grow and achieve success in Real Estate. If you are not already a Coldwell Banker independent sales associate, and would like to explore all that we have to offer our agents and our customers, please give me a call or email at 714-782-2723 or Brad.Pearson@camoves.com. Or visit http://www.WhyCB.com
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This APP is by far one of my favorites! So many of us spend our days either heading to an appointment or waiting for someone to arrive to an appointment. I’ve finally realized that the periodic late arrival is inevitable no matter how much one plans out their day. I’ve heard it a million times from people “if they just would have called and said they were running behind, I would have understood”. One of the most frustrating scenarios is when your appointment shows up 10 minutes late without even making a call or sending an apologetic text. Then there’s the old “I’m 5 minutes away” text and either they have no concept of time, or they were stretching the truth. This APP solves the “I’m on my way” problem with some incredible technology. It’s called Glympse and it’s free! So there’s no reason not to at least try it.
Here’s what it does… You can very simply and in seconds, send a “Glympse” text with a link from your smartphone that will allow the recipient to actually see you on a map driving, riding, walking ,etc. in real time, with the actual speed you
are traveling. You can set the amount of time that the link you sent will show your location, and when that time runs out, they can no longer see you. You can even input the destination and it will show your estimated time of arrival.
Just imagine that you are on your way to a listing appointment and you send a Glympse to your client when you are on your way… Now they can know the exact moment you arrive! How about the good ole “I’ll let you know when I’m on my way”… Now just send them a Glympse and they can even check in to see how far away you are and eta. Running a few minutes behind because of traffic… Send a Glympse so they can see where you are and not have to ask you every few minutes.
Most importantly, this APP can help you stay safe by letting those waiting for you that you are on the road and rather than text or call to ask you where you are, they can just tap the link and view you on the map.
I’ve been using this APP more and more lately and almost everyone I’ve sent a Glypmse to have been very appreciative as well as impressed with the technology. I am confident that you will get the same results if you use this great tool.
iPhone users – Click here to go directly to iTunes to download Glympse: https://itunes.apple.com/us/app/glympse-share-location-friends/id330316698?mt=8
Android users – Click here to go directly to Google Play to download Glympse: https://play.google.com/store/apps/details?id=com.glympse.android.glympse&hl=en
Spread the word and let’s get everyone using this great app and make all of our lives easier!
As always, it is my pleasure to bring strategies and ideas to help you grow your business and become more efficient while providing great service to your clients! Having taught hundreds of Realtors how to use technology to dramatically improve the level of personal service to their customers while saving time, energy and money, I am always open to answering questions and sharing with those interested in collaborating. Please don’t hesitate to share any great APPS that you have found as well!
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Escrow is closed and your buyer is moved into their new home! What an accomplishment in a market where so many transactions are wrought with challenges. We are so happy to have helped our buyers get their home, and often feel like taking a bow in front of them after spending 30 to 45 days or more at maximum stress level working through one obstacle after the other to ensure a successful closing. Even in the “easy” transactions that go perfectly, we are so shocked and surprised sometimes that we sigh in relief at the closing and can’t wait to hand over the keys to the buyers and fulfill their dream of owning this home. If you’re a Coldwell Banker agent, there’s no doubt that you set them up with our Concierge Service and covered every base to make their move as smooth as possible. But there’s one thing that we rarely address aside from our normal conversations with our buyers during a transaction… The almost immediate lonely feeling of being out of place in new surroundings. From going from knowing all of their neighbors, to waving uncomfortably at their new neighbors they’ve never met on the way to work in the morning…they’re starting all over.
In this blog post, I will share a way that WE as Realtors can help our buyers feel more welcome in their new neighborhood, bring people together, and make a strong impact on them that they will never forget. By doing this simple and kind thing, you will strengthen your relationship with your buyers, as well as make a phenomenal impression on the immediate neighbors and very likely get more business from that neighborhood and more REFERRALS from your buyers.
For about $2-$5 you buy a large “Welcome to the Neighborhood” card (here’s a link to some
http://www.greetingcarduniverse.com/welcome-to-the-neighborhood-neighbourhood-cards/houses-welcome-to-the-neighborhood-583399?utm_source=googlebase&utm_medium=cpc&utm_campaign=google_base&campaign=googleshopping&gclid=CLzStvbWvMACFSpp7AodoTEA9Q). Then simply go and knock the doors of the surrounding neighbors and ask them if they would like to write a short welcome message to your clients. NO ONE will say no, and most will be so appreciative of the proactive and thoughtful gesture you are making to gather these welcome messages. I’ve also suggested carrying extra cards with stamped envelopes for those neighbors who are not home with a note from you and your business card attached. If someone says they don’t have time, hand them an addressed and stamped card and envelope for them to take and write their message and drop in the mail later. How many should you do? My suggestion is to at the very least, try to get the immediate 10 homes across the street, and the 5 on each side of their home, but the more the better of course! Another great touch is to write a letter of introduction to your clients, with their permission of course. Here’s a great article that you could even use as a handout with the introduction letter: http://www.wikihow.com/Welcome-New-Neighbors
I can assure you that if you begin doing this for every buyer on every transaction you close, you will NOT have to even ASK the neighbors to list with you, or ask your buyer for referrals. YOU will have their business! Every agent that I’ve talked to that has done this has stories about their buyers literally getting emotional with sometimes tears of happiness when they read the notes from the neighbors. Another interesting thing happens very often too. Some of the neighbors are inspired by your gesture and actually go introduce themselves to the new buyers and a new relationship is sparked. All because of what YOU did.
Of course, if you are the type of person that likes to take things to a higher level, you can even host a “Let’s welcome our new neighbors!” party at the local home owners association, a local restaurant, or even another neighbors house.
Another great thing to do is to go visit all of the closest local businesses, restaurants, etc. and talk to the owner or manager, and ask them if they would like to sign the welcome card. You’ll find that many of them will even offer small gift cards & coupons that you could include when you deliver the finished card.
As always, I enjoy sharing strategies and ideas on ways to grow your business and improve the level of service we all provide to our clients. Of course, this is one of many unique strategies I share with the agents I work with and coach on a regular basis, and I am always open to sharing how a move to Coldwell Banker Residential Brokerage can help you dramatically grow your business! For more information please don’t hesitate to call, text, or email me at 714-782-2723 or Brad.Pearson@camoves.com .
To your continued success,