Linda's Southeastern CT Real Estate Blog

Riches in Niches - A Book Review 

The books I love are pretty worn; I'm hard on them.  I even turn down the corners of the pages that speak to me.  I have plenty of corners turned down in Susan Friedmann's Riches in Niches, How to Make it BIG in a Small Market.  SEO experts lecture about using "the long tail" in your internet strategy. Susan explains how to use "the long tail" in your everyday business and for me, it relates perfectly to real estate.  It's the "sell more of less" theory, the same theory that Seth Godin talks about in Small is the New Big.

Most real estate agents try to serve too many masters. They will work with investors and builders and single family homebuyers.  In between, they might show a rental or two or throw on some boots to walk a piece of farm land. Just for good measure, they'll try to dabble in commercial real estate.  At the end of the year, a typical real estate agent will have put a gazillion miles on their car. 

Many years ago, there was an agent in my office who's niche was mobile homes.  Diane was the expert. She could drive by a mobile home and tell you what model it was and what year it was built.  If you have ever seen the movie, My Cousin Vinnie, Diane was like the character portrayed by Marisa Tomei who knew everything there was to know about cars. Most agents hated the idea of listing or selling a mobile home because they were cheap which meant the commissions weren't much. As a result, when a call came into almost any office in Eastern CT for a mobile home, they'd suggest the customer call Diane.  Diane made well over $100,000 back in the 90's selling almost exclusively mobile homes.  Since she was the expert, she was also able to raise her commission which helped when selling cheap mobile homes.  Later in her career,  Diane become an expert in selling HUD foreclosures, another area that most agents avoided.  She learned everything she could about the process and became the HUD Foreclosure expert in the area.  I'm sure she never thought about "the long tail" or Seth Godin but it sure put a lot of money in her pocket.

In the book, Riches in Niches, Susan coins becoming an expert in a niche as a "nichepreneur". She goes on to talk about ways to enhance and capitalize on your expert status.  I've always subscribed to the "Do one thing really well theory".  What I do really well is list property in my small town of Ledyard, CT.  90% of my commissions are earned from listing property in one small town.  I realize that a new agent might not be able to narrowly focus on one small niche but it is something to strive for.  By becoming an expert at just one thing, you become a "nichepreneur".  That is a very good thing.

If you get a chance, be sure to watch My Cousin Vinnie. I promise it will make you laugh and you'll see an expert in action.

1.  Complete all the bank requirements before submitting an offer. If the bank requires you to sign and initial 41 pages of documents, don't debate the subject unless you really don't want to buy the house.  That is why they are called requirements. 

2.  Your attorney will hate the required bank addendum and try to change it.  (See #1)

3.  Don't assume a bank foreclosure is a great deal.  In my experience, great deals are hard to find and most foreclosures are listed at fair market value.  If you are willing to do repairs, you may find a good (maybe even great) deal on a house that needs work. 

4.  Although the price on a bank foreclosure may drop eventually, banks usually don't accept a "low ball" offer.  In some cases there is even a secret formula of how much lower than the list price an asset manager can accept.  Once the price is dropped, the formula is reapplied. 

5. Closing dates can't be mushy. Time is of the Essence.  Bank sellers expect you to close on or before the closing date of the contract.  They don't accept excuses and will often charge a per diem if you are not ready when they are.

6. Keep your offer clean.  Banks won't accept a contract littered with contingencies.  AND if you have a house to sell, don't bother making an offer until your house is sold.

7. Be willing to Close quickly.  I swear asset managers have little contests for most closings in a month.  They always want to close THIS MONTH.

8. Asset managers are dealing with hundreds of properties.  Don't expect an answer from the bank within 24 hours even if your offer requires that.  

9. Don't get mad at the listing agent if you don't get a response quickly.  (See #8)  You WILL need the patience of a Saint but it really isn't the listing agents fault.  Calling her 5 times a day to ask, "Have you heard anything yet?", won't get you an answer any faster. 

10.  While your offer is being considered, other offers may come in.  This will make you really mad. (See #9)  

10 1/2.  Agents who list bank foreclosures are automatically eligible for Sainthood.  OK, I just threw that one in for other agents but bank foreclosures are a lot of work. There is tons of paperwork and reporting. Good systems will make the job easier. Unless you are working with banks who have their own list of contractors, be prepared with a list of good, reliable vendors you can count on.  And expect to be yelled at a lot.  (See #9 and #10)

I was tagged by Allison Werner and Laura Monroe and posted my meme on Friday.  Although I like reading other people's memes, I don't like doing them myself so I decided to have some fun.  I posted 10 items but not all of them were true so I held a TRUE/FALSE Contest.  Here are my answers: 

1.  At almost 5'10" tall, I was a star basketball player during my high school days at Sacred Heart High School in Pittsburgh, PA.
FALSE - I actually was a score keeper.  I never was much of a basketball player but my height served me well in volleyball.

2.  I once broadcast the weather from a hot air balloon for local radio station, 106.5, WBMW in Ledyard, CT
FALSE - I've been in the RE/MAX Balloon and I have a fancy weather station but have never broadcast the weather.

3.  Late for my plane, I was able to get a police escort to T.F. Greene Airport in Providence, Rhode Island in February, 2003.
FALSE - Anyone that knows me got this one right.  I am rarely late and get very annoyed at those that are.

4.  I have had a concealed weapons carry permit for the State of Connecticut for 12 years.
FALSE -  I'm a card carrying member of the NRA but don't have a weapons permit.  My assistant does however.  Hopefully we never need it but see #6.

5.  I once shared a cab with Terry Bradshaw, formerly of the Pittsburgh Steelers.
FALSE - I love Terry Bradshaw, watched him play but alas, never met him.

6.  Between 1968 - 1978, I was a police witness for 3 armed robberies.
TRUE - Once in Pittsburgh at a convenience store, once in Pittsburgh at a gas station, once in Connecticut in a mall parking lot.  My friends refuse to go into a bank with me.

7.  I was interviewed and appeared on the Evening News with Dan Rather. 
TRUE - Described as a community activist, I was interviewed about our town effort to spray for gypsy moths. I have the tape and have never watched it.

8.  I have watched the movie, My Cousin Vinnie, 12 times.
TRUE - My maiden name is Linda Carole Angela Mannella.  I love that movie.  For those that saw it....:"The two Yuts!"   LOL

9.  I won 2 million dollars in the Connecticut State Lottery in 1997.
FALSE - I've played the same numbers for 24 years but no luck.  Yet.

10. I attended the Republican National Convention in 1992 in Houston Texas.  
FALSE - I'm very active politically but in a small state with not many delegates, it is tough to get an invitation.  Someday, I hope!

The winner is Leslie Bloss.  She had 2 of 3 correct.  She changed her guess but as in politics, she was right before she was wrong so I declare her the official winner!

Crap!  I was tagged by Allison Werner and Laura Monroe .       

 1.  At almost 5'10" tall, I was a star basketball player during my high school days at Sacred Heart High School in Pittsburgh, PA.

2.  I once broadcast the weather from a hot air balloon for local radio station, 106.5, WBMW in Ledyard, CT

3.  Late for my plane, I was able to get a police escort to T.F. Greene Airport in Providence, Rhode Island in February, 2003.

4.  I have had a concealed weapons carry permit for the State of Connecticut for 12 years.

5.  I once shared a cab with Terry Bradshaw, formerly of the Pittsburgh Steelers.

6.  Between 1968 - 1978, I was a police witness for 3 armed robberies.

7.  I was interviewed and appeared on the Evening News with Dan Rather. 

8.  I have watched the movie, My Cousin Vinnie, 12 times.

9.  I won 2 million dollars in the Connecticut State Lottery in 1997.

10. I attended the Republican National Convention in 1992 in Houston Texas.

I love reading other peoples memes but I hate the pressure of doing one myself.  Alas, I was memed and really don't feel like being serious about this.  So there you go...can you figure out which of the 10 are actually true?????  You might be surprised. 

I am sold out of Moderator Voodoo Dolls and Ginzu Knives but the first person to come closest  will receive a copy of one of my favorite business books.  Contest ends Sunday nite at 7PM EST.

In 2000 when I turned 50, some friends gave me golf lessons for my birthday.  I think they were trying to tell me I was working way too hard and I needed to have more fun. They were right... So I decided to take golf lessons AND build a team.  After 23 years, I had a great business and the ability to generate more leads than I could handle.  My team was formed and during the past 7 years, I've had great success with buyer specialists and a full time "Client Care Manager".  And I had time to do some golfing.

Today I become single again.  Today I push my buyer specialists out of the nest and hope that what I've taught them and the systems I've shared will help them fly.  They will remain agents in my office and I will still give them all my buyer referrals.  It's not that I didn't enjoy building and leading a team. And it has nothing to do with market conditions.  We had a very good year and the town of Ledyard had 13% more closed sales than in 2006. 

I'm making the change so I will be free to do what I love. I am the breadwinner in the family but I'm blessed to be at that point in my career where I can afford that option. My great Client Care Manager will continue to serve my clients with the systems that we have developed.  I will continue to list properties and build my niche in the small town of Ledyard, CT.  I recently read a book that has me excited about the prospect of working  on my niche - Riches in Niches - How to make it big in a small market.  I have very good market share but I'm going to increase that by becoming a Nichepreneuer.  I'll be sure to share my adventures! 

I also will have more time to golf (which I love) and work on a couple projects I have cooking. (I'll share those too when they are ready.)   Oh..and I'm also on the Ledyard Town Council. As many of you know,  I have this political thing in my blood.  I like to call it "my duty to serve".

Am I lucky or what??   I hope each of you has a chance to do what you love in 2008!

Happy New Year!