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    We Live In A #VUCA World!

    Mark Johnson Leave a comment

    We live in a #VUCA world!

    The acronym?

    Volatility, uncertainty, complexity, and ambiguity. I’ve had a lot of clients, associates, and others asking about:

    SVA (smaller issue)

    Credit Suisse (bigger issue)

    Signature Bank

    I have a great circle of economic minds… my notes from various conversations on this topic:

    If you go back to 1974 you can see 12 significant hiccups in the financial systems, including the 1994 bankruptcy of Orange County, California, where I raised my kids and grandkids.

    Of the 12 events since 1974, 60% led to a recession. With the FED lowering rates from 1 month to 11 months post each of those events.

    The FED policy has been the most aggressive tightening in 40 years, yet all the indicators seem to be the economy is absorbing this at a rate not seen before. But something broke…

    Concentration (all your eggs in one basket) is a high-risk strategy not to be taken by the faint of heart.

    A surge in deposits (influx of COVID money into the economy and more) in a low-interest rate environment lead to a surge in deposits. To boost yields, SVB (and others) turned to long-term bonds, yet SVB did so WITHOUT hedging. (A high-risk move & looking back, was a massive mistake of judgment and leadership)

    Policy matters – in 2018, we saw a rollback of the Dodd-Frank requirements, which raised the level of banks subject to stress tests. SVB was not subject to stress tests and extra accountability. As we are seeing – accountability matters.

    What will the FED do?

    Who knows, but probably no hike or up to 25 basis points as we see conflicting issues, especially persistent Core Inflation.

    Core inflation is still high (too much money chasing too few goods)

    Retail sales and producer price index weaker

    The recent labor report was mixed

    A business associate and well-respected economist, Dr. Lawerence Yun, said it well several years ago, “easy money and ample liquidity has implications.” Expect more volatility, heed the benefits of diversification, and a flight to quality. This is not a time to take undo risks.

    For my real estate friends – control what you can control – life still happens: birth, death, divorce, jobs, non-owner occupied exchanges, and more. Serve those that need your services. Now more than ever, they need a local area expert. I’m seeing a flight to quality in full-time professional agents with stable track records of delivering results. if you don’t have this base, it could be time to team up and join an experienced team lead.

    Control the controllable.

    Control the Controllable
    Control the Controllable

    Critical Thinking, Say What, I’m A Real Estate Salesperson! 

    Mark Johnson Leave a comment

    Critical thinking, say what, I’m a real estate salesperson!  Well, as the CEO of your real estate practice, I’d suggest critical thinking is the foundation of your current and future success. 

    Critical thinking will enable you to express your thoughts, ideas, and beliefs more effectively. Better communication helps others understand you better, resulting in less frustration for you and your clients. Critical thinking fosters creativity and out-of-the-box thinking that can be applied to any area of your business. 

    “The quality of your business largely depends on the quality of your decisions.” 

    Imagine how much better your real estate business would be if there were a way to make the best possible decisions, day in and day out? There is, and it’s called critical thinking.

    Some real estate professionals already have well-developed critical thinking skills, others need some help, and we all can benefit from continuous improvement. 

    5 Steps To Improve Your Critical Thinking Skills

    First

    Clearly Define Your Question or Problem. 

    Albert Einstein said it best:

    “If I had an hour to solve a problem, I’d spend 55 minutes thinking about the problem and 5 minutes thinking about solutions.”

    Second 

    Gather Information to Help You Weigh the Options. 

    Consider only the most valuable and reliable information from the most reputable sources. Disregard the rest.

    Third

    Apply the Information and Ask Critical Questions. 

    Scrutinize all information with a skeptic’s eye.

    Not sure what questions to ask? You can’t go wrong starting with the “5 W’s.” 

    Who?

    What?

    Where? 

    When?

    Why?

    Then finish by asking, “How?”

    Fourth 

    Consider the Implications. 

    Look for potential unintended consequences. Do a thought experiment about how your solution could play out in both the short and long run.

    Fifth

    Explore the Full Spectrum of Viewpoints. 

    Examine why others are offering differing points of view. This will help you evaluate your viewpoint. You may find critical thinkers who take an opposing view, which can help you find gaps in your logic.

    Samantha Agoos describes a 5-step process in this TED Talk that may help you with any number of problems in your business.

    Every day, a wave of decisions comes before us, and it’s impossible to make a perfect choice every time. Yet there are ways to improve our chances. One particularly effective technique is critical thinking, and that is how can win the day.

    Perfection vs. Progress
    Perfection vs. Progress

    Adjusting To Change

    Mark Johnson Leave a comment

    Success often hinges on the ability to quickly adjust to change. Peak performers follow a model:

    • Being open to change
    • Reframing difficult situations

    Being open to change; when plans or situations change, step back and look at ways to adapt and adjust.

    Reframing difficult situations, to see them as opportunities to learn and grow rather than simply as obstacles.

    Success often hinges on the ability to quickly adjust to change.
    Success often hinges on the ability to quickly adjust to change.

    The Ultimate Secret

    Mark Johnson Leave a comment

    Do it until… is the most common denominator for success in anything.

    Some of us learn fast, others slowly, and many of us in between. When you are committed to the cause, the effort, and the result, “you do it until ___.”

    Fill in the blank; you do it until you gain mastery; you do it until you have confidence; you do it until you are the best!

    The common denominator is “I did it until I got it!  It doesn’t matter how long it takes.” This is a great growth mindset.

    You don’t know how long or short it will take to become an expert, yet if you keep doing what needs to be done – one day at a time – one hour at a time – one minute at a time, one second at a time – eventually all those seconds add up to minutes and minutes add up to hours and so on.

    It’s not about how long it takes – if we keep doing what needs to be done – eventually, we get there, and we win.

    Do it until ____!

    #WinTheDay

    Find a way when it appears there is no way
    Find a way when it appears there is no way

    Tired Of Not Getting What You Want?

    Mark Johnson 2 Comments

    Ever wonder why so many of us have to hit rock bottom before we find a breakthrough?

    Let me explain… from working with others, I’ve discovered a pattern. Typically after a huge disappointment, the fear of failure disappears. When fear of failure disappears, taking a positive action becomes easier, yes!?

    Once a major low is hit, the realization is that any action that is taken must lead to something better. Think about that for a moment… “any positive action taken leads to something better!” Make sense?

    The Problem.

    Waiting for a major breakdown to get to a breakthrough.

    • Maybe you’re satisfied with mediocrity?
    • Maybe you believe you will fail and be subject to the opinion of others?
    • Maybe you are addicted to worry, the past, or to drama?
    • Maybe you let overwhelm, and distractions get in the way instead of taking the next right action.
    • Maybe you succumb too often to those 5 words that kill more dreams than any other: “I don’t feel like it!”

    For the vast majority of folks I’ve worked with, the answer to the question, “why don’t you do what you have to do to get what you want?” Can be summarized in 5 dream killing words:

    I don’t feel like it!

    And that feeling stops you from taking positive action and keeps you from being consistent. It’s the one reason you’re not getting what you want. Your feelings overpower your commitment. Your feelings overpower your ability to take positive action.

    The Solution.

    Act opposite your feelings.

    The story of Mario Lemieux:

    There are many athletes who have played through or returned from life-threatening illnesses. Others have come back from debilitating injuries that would have forced mere mortals to give the game up.

    And then there is Mario Lemieux, who not only suffered from Hodgkin’s lymphoma but also endured chronic back pain throughout his career.

    With his puck-handling dexterity, long reach, and accurate shot, Lemieux won three Most Valuable Player awards in the NHL and six times was its leading scorer.

    Lemieux is the only player to average more than two points a game (2.01). His goal-scoring percentage of .823 (613 goals in 745 games) is the best for players with 150 games.

    I know there were many times Mario “didn’t feel like it” yet his commitment to his teammates, to his fans, and to himself was greater than his feelings.

    When your commitments overpower your feelings, that’s when breakthroughs begin. That is worth repeating: “when you take action despite your feelings, that’s when your breakthrough begins.”

    So who’s in charge, YOU or your feelings?

    #WinTheDay

    Tired Of Not Getting What You Want?
    Tired Of Not Getting What You Want?

    Three Steps To Creating More Certainty In Your Real Estate Practice

    Mark Johnson Leave a comment

    “The key is not to prioritize what’s on your schedule, but to schedule your priorities.” ~ Stephen Covey

    Have you ever worked backward from Friday? At the end of the week, imagine you are sitting down and looking back…what would make this week great?

    We can’t control the market this week, yet we can control the daily activities that lead to our expected outcomes.

    I’m sure you would agree – without a doubt – we are in uncertain times. The paradox is this: we need both uncertainty and certainty in our business. Yet, from the conversations I’ve had this week, we have more uncertainty than certainty. How can we create more certainty?

    Get Clear On What You Really Want.

    You know this is really clear when your purpose resonates and moves you emotionally.

    Make It Part Of Everyday!

    • Create a daily action checklist and follow it
    • What’s the ONE routine you must do every day to win the day?
      • Example: P.E.D.S.
        • Prayer
        • Exercise
        • Diet
        • Sleep
      • What are the one or two activities that move the needle?
        • Marketing that creates NEW appointments
        • Building and maintaining relationships
        • Servicing existing clients and prospects
        • Anticipating and solving problems BEFORE they arise
        • Completing that project
        • Closing open loops
      • Is it all in your calendar?

    Have a strategy for when you feel stuck or lost.

    • “If I don’t do this, this is what it will cost me,” or
    • “If I do this, then this is what I can gain.”
    • “I don’t feel like it” can be turned into “I’ll do it anyway.”

    If you show up for the day with no structure in your calendar and decide to do “urgent” tasks like returning calls and texts and checking Facebook, those activities will expand and eat up all the time you hoped to devote to more “important” activities. You will end the day unfulfilled and have more uncertainty. Get clear on what you want, make it part of your everyday routine, and have a plan for when you feel stuck or lost. That is a winning formula.

    The key is not to prioritize what’s on your schedule but to schedule your priorities.

    The key is not to prioritize what's on your schedule, but to schedule your priorities.
    The key is not to prioritize what’s on your schedule, but to schedule your priorities.

    Has anyone seen a home seller?

    Mark Johnson 1 Comment

    Has anyone seen a home seller? Home sellers seem to be just about as rare as the Condor (unlike the red-tail hawk on my fence this morning).

    Inventory of available homes for sale across the US fell another 2.5% this week, the lowest since 2019. This is the time of year when we traditionally see more homes coming on the market. Yet, according to Altos Research, there is no indication of an inventory surge coming into the market. Say what?

    It is a supply-constrained market. Consumers are price sensitive to interest rates – now near 7% – and it seems sellers sitting on 3% mortgages are not motivated to trade up or out.

    The result? 20% fewer homes in the pending process compared to a year ago. Only about 31% of sellers are needing to reduce their initial list price. The median price of new listings is up, yet not near the pace of increases we saw just a year ago. Rents appear to be stabilizing and slowing at the median level of $2,200 per month.

    Check out the charts on this link – you can type in your local zip code.

    If you are looking for an agent to explain local real estate trends – I know a few all over the US, shoot me a DM or text.

    Source: Altos Research US for the week ending 3-5-2023.

    Inventory Trends
    Inventory Trends

    Ten Excuses

    Mark Johnson Leave a comment
    Ten excuses the top 1% all made, yet figured out a way to bust through:

    1. I don’t have time

    2. I don’t have the money

    3. I will try it next year

    4. I don’t have enough data

    5. I am too tired, skeptical, or biased

    6. No one ever did it before

    7. It’s too much work

    8. I could fail

    9. I will wait until I retire

    10. It’s too risky

    You can bust through too. One of my associates told me all of these “excuses” are rooted in some sort of fear, so really the top 1% are masters of fear.

    Fear or faith?
    Fear or faith?