For A Good Cause: Written to help people-through the application of Warren Buffett's core principles aligned with treating your home as an investment-like a business with a stock price. There is a unique way to extract tens of thousands in additional profit from any home while protecting yourself from Real Estate Greed.
“How can I help Minneapolis homeowners avoid making fundamental mistakes, costing them thousands?”
Years in the making, countless test and case studies were conducted in developing such an approach... It all started when I asked myself, "How can I help Minneapolis homeowners avoid making fundamental mistakes, costing them thousands? While at the same time helping Minneapolis homeowners avoid working with desperate, unethical and greedy real estate agents."
My good friend Jason, another top producing real estate agent, and I were talking about a rehab project we just finished up. Jason and I rehabbed homes together for 6 years starting in 2009. During the conversation Jason said, "Murph, how do we take all this knowledge we gathered, rehabbing homes and apply it to selling homes for our family, friends and everyday clients?"
In this world called real estate with people we label Realtors or real estate agents everyone seems to be clumped into one bucket like a car salesman, insurance brokers or contractor. Rightfully so, as most do very little to develop a proven approach and set standards their client's can expect will deliver consistent results. In turn, Allowing those they care about to make fundamental mistakes which will cost them thousands, tens of thousands and sometimes over one-hundred thousand dollars in unnecessary losses. My natural reaction... "How can we change this?"
Over the last seven years I have completed 100+ rehab projects and 30+ new construction projects. I've learned to eliminate unnecessary risk by avoiding fundamental mistakes other agents will never know. How? Because, I have made the mistakes and lost money. I've tried hundreds of different approaches on pricing, design, staging, marketing and buyer psychology. These tests wouldn't have been possible without owning my own properties and having confidence to try different things.
I said, "Jason, we must find a way to package all our knowledge and experience into a standardized approach. A standard system allowing us to replicated our process over and over with precision and consistency." This is when, during my research, I found The ISO-9000 globally adopted business management standards for quality used by huge brands like GM, Chrysler, Boeing, General Electric (GE), among others with support businesses located internationally. The reason it exists — so stakeholders can believe with confidence that a manufacturing plant located in another country will produce exactly what the contract says, without having to travel to the plant and conduct a huge inspection. If the plant is ISO-9000 certified, then they know it will perform to standard. For obvious reasons, this kind of certainty is attractive. To know something is going to perform to a standard, alleviates substantial stress and frustration.
“But, more important to us, Buffett's investing style; of discipline, patience and value has consistently outperformed the market for decades.”
Being I was a real estate investor, I found it only natural to study other great investors. Since a home (in its simplest form) is just an investment, one person's name kept coming up. Who's the world's greatest investor? Of course, Warren Buffett. After all, here is a man following the principles set out by Benjamin Graham, who amassed a multibillion dollar fortune mainly through buying stocks and companies through Berkshire Hathaway. Those who invested $10,000 in Berkshire Hathaway in 1965 are above the $50-million mark today. But, more important to us, Buffett's investing style; of discipline, patience and value has consistently outperformed the market for decades. Said different, "Those who invest their money with Berkshire Hathaway, thanks to Buffett's approach, built on the investment principles of Benjamin Graham, knew their money would perform to standard."
95% of the real estate agents in our market take a price-driven approach to selling real estate. While this can lead to the sale of your home more often than not it can lead to a much more stressful and dismal real estate experience. Often ending up in countless price reductions, negative buyer feedback (emotionally draining) and the unsuccessful sale of your home—bringing you back to square one.
That is when it hit me.. Warren Buffett, unlike other investors, focuses on avoiding fundamental mistakes by endlessly researching the companies he invests in. Learning, searching, finding the value in companies he desires. Once found, he creates a plan to capitalize on a company's value. In doing so, he avoids all unnecessary risks. Which, when done correctly, allows him to hold true to his #1 rule "Never Lose Money."
Adherently, I kept researching to understand how Warren finds the value in a company, or in our case a home, so we can better extract this value and in return reap a greater profit. Using a "price-driven approach" you avoid this process of seeking value. It merely determines price based on a few comparable homes SOLD in your area.
Thinking to myself... how can you compare any two homes? since most every home is unique in its own right.
Then they break it down into cost per square foot. Take the average cost per square foot, multiply this by the total finished square footage in your home and BOOM! you have your list price. 95% of the agents you speak with will give you this approach. Simple and stupid all at the same time.
You See Therein Lies the problem
While 95% of real estate agents take a price-driven approach to selling real estate. I knew this was a mistake because of my personal rehab & investing experience. The other agents are not able to see value in a home because they have no process for extracting that value if found. Based on our extensive experience dealing with homes needing TLC like: outdated aesthetics (flooring, paint, lighting, curb appeal, bathrooms, kitchens), plumbing issues, mold or smelling like a person has smoked in it for 50+ years. We are able to assess your home, do our research, find hidden value and extract this value for a greater profit. Not only that, we are able to find value in your home when other agents feel nothing needs to be done. This is where you extract hidden equity by making simple tweaks like Jordan Spieth, the professional golfer, does on the driving range before he heads out for his final round of a major. These small tweaks both mentally and physically are what make all the difference.
This is it Jason!! This is how "We deliver our knowledge through a documented approach."
We have the process and the people to extract value and deliver a superior product through our knowledge gained in rehabbing and building new homes. All we need to do is document our approach so friends, family and client's can benefit from it.
“This is how we deliver our knowledge through a documented approach.”
The next logical question, "Based on Buffett's investment philosophy, could we devise an approach for the sale of real estate that will consistently beat the market?" That is to say, "Consistently sell homes at a higher price point, to maximize profit." If this were possible, then homeowners, no different than ourselves when building or remodeling homes with hundreds of thousands of our own money at stake, could have total and complete confidence their home's sale would perform to standard. The end result of our research, and testing in 100+ markets, is our documented approach inspired by the ISO-9000 globally adopted, business management standards for quality.
"The Value-Driven Approach To Sell Real Estate" was born.
Just think about how much money and potential profits homeowners leave on the table when they assume all agents are created equal. The thought of a "Typical" agent walking into your home, sitting at your kitchen table and SELLING you on a price–driven approach makes me sick. I refuse to be lumped into this group of incompetent real estate agents following the herd like zombies with their arms out and a blank stare on their face. Driven by a salesman's mentality instead of being a protector.
“The thought of a 'typical' agent walking into your home, sitting at your kitchen table and SELLING you on a price-driven approach makes me sick.”
Having worked extremely hard, acquiring knowledge through research and my own personal experiences. We are now able to offer homeowner's a value-driven approach when they are looking to sell. Now, I needed to document this approach so I can reach homeowner's before it is too late. I feel compelled to protect them from Real Estate Greed as it is the biggest threat to Warren Buffett's rule #1 "Never Lose Money."
This Real Estate Greed comes from a lack of motivation and an un-proven process by the "traditional price – driven agent" who is motivated by commission. Just think about it for a moment.... Hypothetically speaking, an average single-side commission on a home sale is 3%. Three percent of $10,000 comes out to a clean $300. Further, factor in the percentage of that $300 the "traditional price – driven agent" shares with his or her broker/team (30-50%) and you are left with $150-$200. Said differently, the "traditional price-driven agent" in this example stands to gain just $150-$200 in income or lose their commission all together by standing up with you to fight for an extra $10,000 price increase on the sale of your home.
That's $150 vs $10,000
What motivation does this "traditional price-driven agent" have to invest his or her own money into strategically increasing your properties perceived value? Especially, when they don't know how...
After all, at best, it's a break-even proposition for them. Why bother, right?
Unfortunately, this is an all too common truth for most real estate agents. Not having a proven process to find perceived value in a home leaves "price-driven" agents unmotivated and unwilling to stand up and fight. To be honest, only one person really stands to lose – YOU, The Homeowner.
We aren't talking chump-change either! We are talking about losing thousands, tens of thousands and on rare occasions a hundred-thousand or more. These are high stakes, don't get lazy and hire just any real estate agent. Like Warren Buffett, do your research and find the agent with a Value–Driven Approach To Sell Real Estate. One who treats your home as an investment—like a business with a stock price—finding a unique way to extract profit from any home on the market. You cannot control a lot of things—real estate market trends, mortgage interest rates, lending requirements, what your neighbors home sold for—but what you can control makes all the difference in how much extra profit you will collect from the sale of your home.
For the "price-driven agent" a reduction of $10,000 equates to dinner at a fancy five star restaurant for two ($150). For YOU, it equates to retirement savings, your child's college tuition or the ability to take a much needed family vacation. I don't have to tell you these numbers are even more skewed as the stakes get higher...$20,000, $40,000, $60,000, $80,000 or even $100,000+.
Real Estate Greed is Real
“If Integrity and ethics were profitable, everyone would have them.”
Who can afford to take these chances?
Who is willing to break Warren Buffett's #1 rule.... Never lose money?
Clearly the approach of most real estate agents sucks for you! Even the National Association of Realtors (NAR), the "governing body" for real estate agents, recently commissioned a report pointing out the fact this industry is broken. Now you know why it is my life's work, “To help Minneapolis homeowners avoid working with desperate, unethical and greedy real estate agents” and why I have worked tirelessly to help develop a different approach: A Value-Driven Approach to help you.
“I Wish Someone Would Have Told Me That.”
These are words I pray family, friends and good people like you never utter. They make me cringe just knowing what comes next. The stories of pain, suffering and loss of money. Victims of these words. Do your research, dig deep for the best choice, be the one to determine your fate not some greed driven real estate agent who thinks $10,000 equates to $150 bucks. For if Integrity and ethics were profitable, everyone would have them.
Truth be told, there are many top notch Realtors and Brokers whom I call friend. These are the folks I surround myself with. The people I strive to have join me in this purpose driven fight. These are the true Top 1% who define their value not just on dollars and cents but on giving before receiving. This is not an easy fight, like the war in Iraq & Afghanistan which we know all too well, but it is a fight we cannot lose. It is a fight to impact lives in an industry with "masses of marginal agents" as defined by The National Association of Realtors (NAR) in their infamous D.A.N.G.E.R Report depicting "part-time", untrained, unethical and/or incompetent agents as the super villains you must look out for.
This Is Why — The Book
Once all of the research, testing and kinks were figured out. Just like the FDA does before a drug or medical device hits the market. We were ready to deliver a "Go To Market Strategy." Knowing it couldn't be done alone, I sought out a group of like-minded agents along with a Wizard to help make it reality.
This group of 100+ agents across the USA, Canada and overseas was formed out of a shared discomfort for the trajectory of our real estate industry, as a whole. This group of frustrated individuals, who, despite their best personal efforts continued to witness a traditional price & sales-driven approach to sell real estate, fall short. This group is dedicated to innovation and change in what has historically been a slow-moving and copycat industry. It was a battle, they agreed, was well worth their efforts and expense.
This book is being shared, exclusively for free, in select markets across the United States, Canada and overseas. We are publishing the book to help people, not to make money by selling it.
This Book, written from a group-voice of passionate, ethical agents fighting against industry labels. Is a collaborative effort of goodwill. Is, no doubt, a book destined to make a difference in the results of the fortunate-few who hold a copy in their hands.
This book is being shared, exclusively for free, in select markets across the United States, Canada and overseas. We are publishing the book to help people, not to make money by selling it. Awareness and a good cause are the dual purposes fueling our project. Like JDRF, Susan G. Komen or D.A.R.E. This is a movement worth joining.
Pay it forward – For A Good Cause – That’s My Only Request
I distribute this book to help homeowners. Also, to raise money for a good cause. The book will change lives for the better. If you have been given a copy please donate $5 to a charity of your choice, on the honor system. This book is not for sale. You can't find it in bookstores or on Amazon. It's free. I'm giving it away. All I ask, when someone requests a free copy, pay the gift forward. I don't want $15 for the book. I just want you to donate $5 to a charity of your choice or donate to mine TeamSugarShay.com either way I did the math. If I can give away 200 books every month and, if each person donates just $5 to a charity of their choice, then indirectly, this book will generate $1,000 in new donations every month. For one great cause after another. Times that by 12 months. In one year, that's over $12,000 in new donations. In two years, over $24,000. In three years, over $36,000. And that is why I believe so deeply in this book. To help people! To inspire good!
Through my efforts and the efforts of my fellow mastermind agents across the country, Canada and overseas we are making impact. Changing an industry that needs change while impacting lives for the better. One person, with the help of others, can make a difference.