Front Page Articles
The Law and You: The Dangers of Distracted Driving
by Laurie Janik
For many of us, it's hard to remember life before cell phones. Since they were introduced into the United States in 1983, the number of users has grown to more than 86 million. Cell phones are an invaluable tool for real estate professionals, who frequently need to communicate at odd hours with clients, customers, colleagues, lenders, appraisers, attorneys, personal assistants, spouses, and children.
There's no denying that cell phones have made our lives easier. But when they're mixed with another essential tool of the trade, the automobile, the combination can be deadly. Talking on the phone while driving has been shown to significantly slow reaction time and decrease steering precision. A 1997 study reported in the New England Journal of Medicine indicates that drivers using cell phones are four times more likely to have an accident. Surprisingly, these statistics don't improve when drivers use hands-free phones.
There's also evidence that drivers who engage in conversations requiring higher levels of thinking, such as negotiation, further increase their crash risk. Business calls that require writing down information, such as figures or addresses, are particularly hazardous.
Suits brought as a result of automobile accidents involving drivers talking on cell phones or retrieving dropped cell phones have resulted in substantial jury verdicts, reaching as high as $20.98 million. Lawyers now routinely subpoena the cell phone records to determine whether the driver was talking on the phone at the time of the accident. In a number of cases, the driver was shown to have been on a call immediately before dialing 911 to report the accident.
Although the driver of the vehicle will certainly be named in any litigation brought as a result of an accident that involves serious injuries or death, plaintiffs are also seeking to hold the drivers' employers responsible if they can show a connection to the driver's workplace.
In one case, a stockbroker was driving to a non-business-related dinner when he allegedly ran a red light and killed a 24-year-old motorcyclist who was the father of two young children. At one point the broker said he was using his cell phone to make cold calls at the time of the accident. The case named both the stockbroker and his employer. And fellow employees' testimony indicated that making cold calls, even on personal time and on a personal phone, was often required of a stockbroker. Fearing a jury verdict against it, the stockbroker's employer settled with the victim's family.
Another recent case involved an attorney who was driving home late one night, allegedly making business calls from her cell phone, when she struck and killed a teenager walking along the road. The victim's father filed a wrongful death suit seeking $30 million in compensatory and punitive damages and named the attorney's law firm as one of the defendants. In ruling on preliminary motions, the court held that, as the employer of an attorney who caused an accident while making a business call, the firm could be held liable for the teenager's death, even though the employer had done nothing wrong.
State and local governments are taking action to address the increased risk on their roads. New York is the only state that has adopted legislation, but at least 34 states are considering proposals that range from improving data collection on collisions involving cell phones to outright bans on cell phone use while driving.
Now many employers are adopting policies governing employees' use of cell phones in the car. Some policies require that cell phones be turned off or prohibit employees from talking on cell phones while driving. Some companies place stickers on company-supplied cell phones warning that using the phone while driving is dangerous.
To reduce potential liability and help prevent accidents, brokers can:
- Review insurance coverage to ensure it's adequate.
- Review and solidify sales associates' independent contractor status. The independent contractor status may help you avoid liability, though there are no guarantees.
- Consider adopting an office policy on the use of cell phones in cars.
- Warn salespeople and employees in writing of the dangers of talking on the phone while driving.
Not using the phone while driving is the only sure way to avoid cell-phone related accidents. However, if your office policy permits use of cell phones while driving, here are some safety tips offered by wireless technology providers:
- Get to know your phone's features, such as speed dial and redial.
- Memorize your key pad so you can speed dial without looking down.
- Keep your phone within easy reach, so you can grab it without taking your eyes off the road.
- Stop talking when you encounter hazardous conditions, such as heavy traffic or bad weather.
You might increase your productivity by making business calls on the way to your next appointment. But it's important to balance that benefit against the risk you take when you use your phone behind the wheel.
Janik is general counsel of the National Association Of REALTORSŪ.
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Tips From a Top Producer: How to Improve Your Closing Performance
by Kris Villars, CRS
Closing is a process that begins at your first meeting with potential buyers and continues until purchase agreements are signed. And while prospecting, qualifying, previewing and showing are necessary earlier in the process, it's the final closing that makes it all worthwhile-for sellers, for buyers and for you.
Yet, many sales are lost because the buying signals sent out by the buyers are not picked up. Why not? Some sales people avoid recognizing them because they may be afraid of being too pushy, aggressive or assertive. Some may suffer from a fear of failure or rejection that stands in the way.
A big danger is that rejection can lead to frustration, anxiety and even hostility. As a sales person, you have to realize that potential buyers are rejecting some aspect of the proposed transaction, not you personally. You must remain objective and maintain a positive attitude. Direct the conversation to the property, asking who, what, when, where and why questions to ferret out the reasons for the rejection.
Analyze Your Performance
The remedy for these impediments to closing, as taught in the educational courses offered by the Council of Residential Specialists, lays in self-analysis and even includes role playing with colleagues. Perform an analysis that is as objective as possible in order to determine why you don't close as often as you think you should.
Learn to carefully monitor your potential buyers so that you know when they reach the state of acceptance. Consider direct approaches and techniques to ask for the order. Learn and practice closing techniques that seem to work best for you.
Of course, the easiest close comes when buyers immediately fall in love with a property and are ready to sign quickly. Most of them, however, need time and reassurance that they've found the home that's right for them. Buyer rejection is usually not outright, but the acceptance process is slowed down by objections that you may identify and overcome.
Consider Trial Close
Whenever and wherever prospects show buying signals, begin the close. Don't wait for a better time or place. And don't necessarily jump to an outright request for the order, which can scare some people off. Rather, ease into the final close with a trial close that will help determine the actual level of buyer interest. Ask questions that will reveal buyers' readiness to close.
Ask questions to identify specific items that you think they already have accepted as fulfilling some of their needs-such as, "If we can get this home, when would you need possession?" "How do you feel about the landscaping?" "What do you think of the house itself?" or "Does the location fit in with what you wanted?" Find out what the buyers already like in terms of what they are seeking; reinforce that and then identify any objections that might stand in the way of the final close.
Head Off Frequent Objections
Buyers most frequently raise these three objections as the closing approaches, "We want to think it over," "The price (or interest rate) is too high," or "I need to consult a friend first."
These three stumbling blocks come up often enough that you should always anticipate them and head them off early on. Ask, for example: "If we can find a home meeting all the requirements you have outlined for me, when would you be in a position to make a final decision?" Also, ask up front, "Is there anyone else who will be involved in making your decision?"
Find out in the beginning what potential buyers think they want to handle in terms of price, terms and payments. And if price becomes an issue later on, point out how few more dollars a month it would cost over the years if they increased their offering price to get the home they really want.
The "we want to think it over" response is most difficult to handle until you find out what it really is that makes buyers defer a decision. Ask outright if it might be such things as the price, terms, possession date or condition. Ask how they would feel if another, better offer comes in while they're still thinking it over.
Give them a little time alone in your office to frame their questions, even suggest that they write them down, so that you then can offer the answers promptly. Make sure that potential buyers fully understand that their offers can be accepted, rejected or countered with another offer to the seller.
Indeed, if you want to improve your closing performance, make sure your buyers are serious and find out what they really want on both practical and emotional levels. Find out who all the players are that will be involved in their decision-making process (parents, attorney, accountant, etc.). Encourage them to make offers that are likely to be accepted and reduce the difference between the asking and bidding price to the few cents a day it would cost them to get the home they really want. And gently remind them that they always run the risk of losing the home to a competing buyer who acts more quickly.
About the Author: Kris Villars, CRS, is affiliated with RE/MAX Realty Services in
Oshkosh, WI. She completed 48 transactions in 2001, with sales totaling approximately $5.5 million. Among the top echelon of
REALTORSŪ, Villars and other CRS designees earned an average income of $113,102 in 2001, almost three times that of the typical
REALTORŪ who is a real estate agent, according to an independently administered 2001 survey conducted for the Council of Residential Specialists.
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Need A Tax Deduction? Recycle Your Used Cell Phone
Thinking about buying a new cell phone? There are a number of charitable organizations that want your old cell phone. Your donation may even be eligible for a tax deduction.
Donations are easy. Simply visit the Web site of one of participating organizations below, choose a charitable organization to which you would like to donate your phone, download a donation sheet, fill it out and send it in with your cell phone. You will receive your donation acknowledgement letter (suitable for tax-deduction purposes) in the mail.
Call to Protect
c/o Motorola, Inc.
1580 Ellsworth Road
Ann Arbor, MI 48108
www.donateaphone.com
CollectiveGood International
4551 NW 44th Avenue
Ocala, FL 34482
770-856-9021
www.collectivegood.com
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