Best business practices

An Xplosive amount of information!!!!!

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We recently went to the Xplodethis Conference – a quick hitting, action packed, content rich event that offered the latest in real estate technology and some of the best speakers in the industry.  Here are the notes that will be helpful to you and your business!

MRIS – 12,000 agents have not done a transaction in the last year, 13,000 have done fewer than 3 transactions – basically 40% of agents don’t do the business!  If real estate is your business, technology is your platform – you have to get on the technology bandwagon to be successful!

Mobile is where it’s at for the consumer AND agents – have data on demand in your hand!  We are still in a people business – technology only helps you communicate.  In the next 3-5 years, more searches will be done a mobile device than PC. 

Study of consumers:

  1. Last 10 years – #1 complaint is not enough or lack of communication
  2. This year – consumers feel they are MORE educated about the product than the agent

Top 5 uses of tablets

36 new tablets will be released this year in this market – top 2 – Ipad2 and Motorola Xoom

  1. Data on demand
  2. Real estate searches – Realtor.com has high res. photos
  3. Planning calendars/Contacts
  4. Presentations – shows content and value
  5. Video capability

Top 9 Apps

  1. Realtor.com – can draw a circle around where your clients want to live
  2. ReaddleDocs/PDF Expert –iPad – opens PDF files
  3. Sign my pad – iPad – signature application
  4. Karl Jeacie’s Mortgage calculator
  5. Evernote – voice audio now
  6. Dropbox
  7. Cam card
  8. Cam scanner
  9. Hootsuite – manages all posts to social media

Today’s consumer is multi-media, multi-taskers – find people who would not normally find you

  • Watch TV while surfing the we
  • Surf magazines and scan QR codes
  • On phone and laptop at same time
  • 85% of people find your website other than direct search
  • Your marketing shouldn’t cost you money, it should make you money
  • Check out Agents of Change

Let people know you are Realtor – direct FB, Twitter, Linkedin to your blog where you talk about real estate and incorporate 365 things to do in your area

Use video – neighborhood videos, personal videos of clients about neighborhoods, schools, etc.

Use location – 4square and learn how people are looking to find locations

Use Twitter – use as an educational tool to do your job better – research think tanks, follow experts, get information and share and use in your business.  Find answers for people

Blog – neighborhoods, business, and valuable content so you receive leads!!!  Work your butt off as it is not a magic pill be consistent, be persistent and don’t quit – don’t be afraid to have an opinion – find a unique place and unique vision.

Google –

  • Google.com/Picasa – group resizing, renaming, add to Google maps, collage, add to Facebook, post to Youtube movies
  • Google.com/Voice – transcribes voicemail, sends text message and you can call back
  • Google.com/Latitude – lets you see where someone is at all times with their permissions
  • Google.com/Sync –allows you to sync all mobile devices at one time to calendars
  • Goog.gl – URL shortened – similar to tiny URL – creates Analytics and QR codes automatically
  • Google.com Maps – you can send maps to their GPS or as an email look at Matt’s video on how to use this feature www.
  • Google.com/PowerMeter – monitors the power usage at your home but needs to be compliant with power companies
  • Google.com/Add URL – use for adding every post you put on internet
  • Google.com/Alerts – monitors information on what you want to follow and helps you monitor your online reputation – yourself, your listings & share with your clients, your company, your competition
  • Add where your listing is located – Vienna, Fairfax County, VA – in MRIS to get better mojo in Google
  • Google.com/Places – add your business address and you can get analytics from it as well

14% of people trust what you say about 91% believe what others say about you – peer recommendations are so important today – go to rate-an-agent on Google and see what happens.

Sites where agents can be rated – you are being rated so you better check out what people are saying about you

  • Homethinking
  • Incredibleagents
  • Ratemyagent
  • Mountainofagents

Need to have a plan to ask to recommend you – please go to www.blah/blah/blah.com and ask to recommend you there…Don’t take my word for it – see what others say!

Solution

  1. Compete.com – search to see which site is best
  2. Facefied.com – aggregates all of your reviews so you can put a badge on your email, website, etc. and have people look at and review you

People want sold data from your website

302 million people are considered mobile users – more texts are sent than phone calls being made

Mobile web is growing 8 times faster than traditional web did 10 years ago.  Incorporate mobile into your listing presentation and speak about your solution to this for your clients.  Lower bounce rates and higher capture rates with mobile website.

Video optimization – video=leads=$ – video houses, your profile, and testimonials.  It’s not about what you think – it’s about what they Google!  Become a local provider of content that national companies don’t have the capability to provide.

Universal SERPs Results – 84% Informational – 18% Navigational – 8% Buy from me sell with me – do “how to” videos.  Do “Town Tours” – restaurants, schools, politicians, shopping centers, new homes, etc. and tag them properly.

Most Googled term is “how to” – how to move, how to fix a plumbing issue, how to anything and

Clients want to see video 6 times to 1 over text.

84% of rankings on Google come from Youtube videos

Keep it short – under 2 minutes, use fluid head tripods – no Blair Witch production, make it slow when panning & tilting, don’t zoom in and out, always be in focus, have external microphones, lighting – use white balance/Iris, Rule of thirds – be off to one side or the other but not in the middle.  Rotate male and female voice overs if you are going to do voice overs.  Talk about benefits and features not the layout because they can see it in the video.  Always use studio lighting to hide shadows.  Make videos about what the consumer wants!!!

RPR is for Realtors only and provides tons of content for our clients – gotta see to believe!

Tips for a better website

  • Quick to load is important
  • Don’t want to have to scroll side to side to see all of the content
  • Upper right should be content information – your contact information is preferred here with a form to contact you
  • Don’t use stock photos on your site
  • Use video or professional photographer
  • Work for the client not the commission – don’t use these things (don’t use honest, integrity, etc.)
  • Don’t use featured listings
  • No one cares what you look like – photos of you shouldn’t highlight site
  • Website shouldn’t be built to appease sellers it is used to get new clients
  • Consumer wants to search – giant section and easy to find
  • Valuation models on site too
  • How’s the market?
  • Hyper local information on site.
  • Use Madlib example on your forms
  • Tribusgroup.com/shredder – thanks Eric

QR code on brochure box flyers should drop you into your mobile website

  • Have a personal website
  • Actively market your website
  • Get mobile
  • QR codes on fliers
  • Get social on your website

Use tools that work best for you – video, digital signatures, and mobile devices are extremely critical today for Realtors to use and understand – don’t forget to USE YOUR OWN BRAIN

iPad is a great tool for agents to learn AND use effectively

Marketing and prospecting in real estate – how we receive information today is different than in the past but people still want to be reached out and touched.

If you are a knucklehead in the office you are probably worse on line

Every form of marketing reaches a specific audience – know who you are trying to reach and why.

AVM’s are strictly a baseline and are still not quite there.  Let’s you know if you are in the ballpark but remember they have a huge margin of error.  Set expectations of everyone in the process that there is a margin of error.

Use RBIntel to help support your offer or make a better one!  The stats go back 5 years…

If I were starting today – where would I begin to build an online presence?

  • Make it easy to search for homes
  • Create community landing pages
  • IFrame search into your listing page
  • Need lead capture – don’t have outside links on your site
  • Get local – talk about the community
  • Create content want to share
  • Publish more
  • Measure your results
  • Do a self-audit of your website

Social Media is relational not transactional

  • Provide real time breaking news in their city
  • Things to do/events
  • Every deal in driving radius of their house
  • Automate your updates – maintenance free
  • Social commerce – groupon/living social $25 for $1,000 cash back at closing when buying or selling a house with RE/MAX Gateway
  • Social discovery – drives social commerce
  • Airbnb is the Groupon of 2011 and will create real estate liquidity – your room for rent, your basement for rent, etc.
  • Become a media star through automated messages
  • Become indispensible resource to your clients

Track your customers, leads, contacts through CRM

Leads are:

  • Bogus
  • Suspects
  • Or real prospects

CARMA – Client Acquisition Relational Management Acquisition

Initially set up as a forecasting tool for Fortune 500 companies to project earnings

Understand CRM

  • What
  • Why
  • And, then how

A good CRM system integrates MLS data and transaction data

Intangibles of success in real estate

  • Likability – can you control it?  Yes!
  • Be intentional about your actions – if your actions depended upon someone liking you or not and this determined whether or not you were able to feed your kids do you believe you control your actions
  • Perception is reality.  There is a perception of you in the marketplace and you can’t control it – craft your message you want others to believe and get the perception to the public.

Reason for success of top 100 companies

  • Speed of implementation of systems
  • Take action

CRM is a strategy for managing a company’s interactions and engagements with customers, prospects and clients.

Today we are dealing with Social CRM – advocacy, experience, service support, marketing, PR, sales on a relational basis.

Involves technology to create the best type of CRM

  1. Organize
  2. Automate
  3. Synchronize business practices

Success marketing – putting your plan on paper

How many lead sources do you need to be intentional and direct about growing your business – 4 to 6 – these include but are not limited to your sphere, niche market, online, networking, farming, etc.  Put them in groups and market to them differently.

What data should you collect – personal profiles, demographics, and conversations.  Why?  To build the relationship!

What do you send to whom and when.  Think about this seriously.

Stop drip campaigns and create or start a two way conversation.  Send valuable content, have a call to action, and the human interaction is critical.

Communicate to connect with people, don’t talk at them!

E+R=O

E=Events in your life

R=Response to those events

O=Outcomes

  • Events happen to everyone
  • It’s not the events that cause you to be or feel the way you do, it’s your choice of response
  • There are always at least two responses to every event

How do we learn how to react?  Parents influence is the number one way they respond.

Nobody makes do you anything – you choose your response.  An example is “he made me so mad” – he didn’t make you mad, you chose to be mad.

Everyone has an emotional checking account – think, is there a different way to respond to events?  Our account is full at the beginning of the day and the events we encounter make us write checks for each one we have.  Think before you write you check and don’t write a $5 check for a $.50 event.   

Don’t let self-help turn into shelf help – use what you learn!

Wrap-up – get yourself a mobile device.  By 2012, more people will use mobile devices instead of personal computers.  We are in a “freeware” environment but it will become “payware”.  Data is king – provide the right tools to get the right information out clients.

In today’s ever changing real estate market, you need to stay ahead of the curve.  Get it?  Got it?  Good!

Now, go sell something!

Our donation dollars at work!

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Our Visit to Children's Hospital 
There are times in your life when you feel fortunate and humbled at the same time.  Our visit to The National Children’s Hospital in Washington, DC was one of those occasions.  We are fortunate that our children are healthy and not undergoing treatments that many of the children at the hospital have to endure.  We are fortunate to have experienced the hospital as visitors and not as parents or friends of a patient staying at the hospital.  As a result of our contributions to the Children’s Miracle Network we were able to have a VIP tour of the hospital.  It is an amazing facility that provides unbelievable care to children for any reason regardless if they have insurance or not. 

What immediately struck me was the kindness of the staff from the valet parker to our tour guide Milton to our liaison, Kimberly Lane.  They all truly appear to love their job.  Next was the color scheme and design features of the floors we visited.  The design feature input was made by the families and children who had to have a stay at the hospital.  Bright colors, balloons, and vibrantly colored floors and walls highlighted each floor and gave the appearance of no other hospital. 

The art room is another aspect that helped bring a new appreciation of what the children who stay at the hospital have to endure make this facility a special one.  The children can do art projects  to help them escape their current situation and help aid them in their healing process.  In addition to the art room are the playrooms they make available to the children so they can seek solace and “get away” from the hospital staff in a fun environment.

The hospital rooms offer as much privacy as possible and are designed with three separate sections – medical, patient and family areas.  They are designed to make the stay more comfortable for all involved.  There are also separate “family” areas as well as laundry facilities available so parents can remain close to their children while allowing them to get some time out of the hospital room.

The wall of encouragement is what had the biggest impact on me.  The wall features photos of former patients that told their story, what impacted them most about their stay at the hospital, what the current patients can do stay positive and lastly, who is their inspiration and why.  It was a very moving experience to read how these children coped with their conditions and made their stay a success to help the others become success stories as well.

All in all, it was a great experience and one that I am proud to be a part of by contributing a portion of each sale to CMN and encouraging our agents to do the same.  We highly encourage doing all that you can by helping support us in this cause – one visit to the hospital will get you hooked.  As discussed at our Quarterly Meeting in December, all of our Chili Cook-off donations will go to support CMN as well.  As we expand offices, we will be doing soup cook-offs, barbeque cook-offs and other cooking competitions to support this cause so please let us know your thoughts on how we can make these events even better and well attended.  Get it?  Got it?  Good!

Now, go sell something – so you can make a contribution!

You’ve got to do more to get more!

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Sales is a tough job, no doubt about it, especially today in real estate.  You hear, read and talk about with others that in the real estate business, it is a numbers game.  If you want more results, you have to do more activities, talk with more people, hold more open houses, make more calls, and basically, just do more to get more business.  While this is true, it is only partially true. 

You need to have quality contacts to truly have an impact on your bottom line.  You need to provide value to those you speak with and earn the business or else your bottom line won’t change.  You must engage others buy asking about them, their families, their business, etc. and take an interest in them before you talk about you – basic relationship building. 

In addition, it is not just enough to say you are in real estate and business is unbelievable, you need to have an “elevator speech” about the services you provide, the information you share, and how you are different than others in the business.  If you don’t, why would your business increase?  Holding more open houses, knocking on doors, calling more FSBO’s or expired listings won’t get it done – you need to build relationships.  You need to add value to those you speak with to earn their trust and in turn, you will get the opportunity to grow your business through referrals. 

You need to know what is impacting our business and how that is impacting both buyers and sellers today.  Yes, today because the real estate market changes virtually daily.  How are property values and why is now a good time to buy and conversely, why it is a good time to sell.  How do the low rates effect payments at loan amounts of $250,000, $300,000 or $500,000 and what is the difference if rates go up 1%?  What are house values in your neighborhood, your town, and county for all categories of houses – condos, townhouses, and single family homes?  How many properties are for sale?  What are the month’s supply of houses and what does this mean?  Is it a buyer’s or seller’s market?   What price ranges are hot, who is buying in those price ranges and why?  How is the rental market locally?  How are their prices?  What is their month’s supply?  If you had the answers to these questions, do you believe you would be perceived as an expert by those you encountered and hence, obtain more business? 

You have to know the real estate business, the numbers and the trends.  Where is the market headed and why?  Give your opinion and be able to back it up with facts.  Watch videos, read blogs, read newsletters, network with others in our industry and absorb what they are saying and develop your conversation strategy based upon what you have learned to earn more business.

As previously mentioned, you need to increase your activities but you also need to improve the quality of your conversations.  You need to become an expert in the business.  If you only increase your activities or only gain knowledge and don’t share it with others, you won’t have the same business building results if you do them in concert with each other.  Get it?  Got it?  Good!

Now, go sell something!

Got Short Sales? What you need to know…

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House 2 
 
We had another outstanding training on Friday, this time on short sales.  Jane Clawson and Sara Rodriguez put on an informative meeting that went over 1.5 hours on how to increase the chances of your short sale getting to settlement. 

First thing to know is that although short sale/distressed property inventory is down locally and has been decreasing over the last several weeks, they are going to be a part of our residential landscape for the next 3 to 5 years.  So whether you like to deal with them or not, you need to learn how to deal with them appropriately to get the best results for your clients whether they are buying or selling houses.

First things first, set the right expectations for your sellers.  In today’s market, short sales are taking a very long time to complete, banks are not necessarily releasing people of their liabilities, they are providing 1099’s at closing, they have been asking for interest free loans for a portion of the balance owed and most importantly, they need to be upfront with you.  Are they current with their payments – if not, when was the last time they made a payment.  Also, how many loans are on the property, are there any judgments against the property, and are they current on their HOA or condo dues.  Just so you don’t have any complications at the last minute, ask them to speak with a reputable bankruptcy attorney to make certain this is or is not an option for them.  Speak with the bank about a potential loan mod as well.  Lastly, speak with an accountant about potential tax liabilities of the short sale. 

In order to give yourself the best shot, fill out the owner’s bank paperwork –not forms you develop or others that you may have picked up at a seminar.  The best way to expedite this part of the process is to go to shortsalesuperstars.com.  They have every bank’s short sale paperwork readily available or get the paperwork directly from the lender.  Every page needs to have the owner’s name and loan number on them – bar none.  Have your title company do a preliminary HUD-1 with all charges that apply – past due association fees, well/septic fees, home warranty, agent fees, etc. because bank will push back on fees so it is better to give them the worst case scenario dollars wise upfront and provide them with a title search as well.

Follow up 24 -48 hours after you send it to ensure it was received.  The process only begins once the entire package has been received.  Ask if they have a complete package.

Harassment works – call two to three times per week.  Ask if foreclosure date is set – if so, when.  Has a negotiator been assigned?  Have they ordered the BPO yet – if not, can you call and order while I am on the phone?  Where are we in the process…whatever it is just call regularly.  Remember the person on the phone doesn’t think outside the box so work within their guidelines.

The bank is not always the investor so you need to find out who the investor is and who will be making the decisions.  Also, all banks handle short sales differently so you need to know the bank and their process – some only answer emails, some only answer phones in the morning, and others the afternoon.  Get into their routine and know how to work with them.

Other notes of interest – foreclosures can be stopped with a contract but all hands need to be on deck and work expeditiously to get it done.  Short sales can hurt your credit for 2-4 years, bankruptcy and foreclosure are both longer.  For more details on the credit situations, go to http://lindaferrari.com/.  Remember, the title company represents the transaction and not the seller so title companies will not do seller only closings.  Also, it is best to have the seller directly negotiate the outstanding condo, HOA or IRS judgments with the appropriate party as they will have the most leverage.  They are less likely to negotiate with an attorney because they will say if they can pay for an attorney, they can pay their bill.

For additional questions or concerns, feel free to call Jane or Sara at 703-448-3556 or me at 703-652-5777.  Again, keep up with trends, numbers, and processes and you will get results.  Get it?  Got it?  Good!

Now, go sell something!

 

Shakespeare said it then, Scott says it now

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To blog or not to blog – that is the question.  My answer is to blog. There is business to be gained by blogging.  What is important to keep in mind when posting is what is the purpose of your blog?  Are you looking to pick up buyers or sellers, be a neighborhood expert or do have another goal in mind?   Whatever it is, keep this as your focus in every blog you post.

My belief is it is our job to let the consumer read what they need to read, hear what they need to hear and learn about what is really happening in the market from the experts and so they don’t get wrapped up in what the media wants them to read, hear and see.   The media’s job is to sell negative information and not plant the right seed.

What can you blog about?  Neighborhoods, client interactions, success stories, your listings, homes you have previewed – deal of the day or week, life experiences, your interactions with others or anything else you find interesting or think someone else may find interesting. 

Why is it important?  It is important because the consumer goes to the internet to get information on everything – not just houses.  This being said, when they are looking to make one of the biggest decisions of their life, don’t you think they will do more research on this topic than not?  This is why blogging is important.  Get your word out to others on where the market is – don’t be afraid to make your opinion known.

Who is reading blogs?  As previously mentioned, the consumer but also other are people you will invite to read it – past clients, other Realtors and real estate professionals, your sphere of influence and people interested in the neighborhood or area you are blogging about.  If you make it interesting, keep it up to date, and do it consistently, you will gain readership.  Why are Realtors and other industry professionals reading blogs?  To find good referral sources for their relocating clients.  If you have a relocating client, do you help them find a Realtor where they are moving?  How do you narrow down the selection?  Typically I look at production, what their hobbies and interests are and if they match my client’s hobbies and interests, if they have a website and if they blog.  If they blog, I read their blog to determine if they are positive or negative, on target with the market and generally what their knowledge is in real estate.  The more they know in what they say and how they say it, the more likely I am to refer them.

Pitfalls – time, writing ability, how to come up with new ideas, where to get started, to pay or not to pay for your blog site, and does your company have a policy on blogging?

Good examples

Bad examples

What to avoid – negativism, writing about a specific case as it is in process, defamation of character issues

What to include – add pictures, hyperlinks and video.  Have a good title, insert good metatags and keywords.  Solve a problem or provide valuable information (housing stats, trends, pricing, DOM, companies moving/relocating into the area), say it simply and in layman’s terms not in our language, again, have a call to action (subscribe here, click here for free home search, follow us here, email me for more details here, click here for a free home buying/home selling consultation, etc. and as always, make it about them – not you!

It’s all about results and ROI on your time.  Be sure to work with a site that will allow you to track numbers such as total page views, average page views per day, unique visitors, bounce rates, referral websites and most popular pages.  Also, ask for people to share and comment on your blog and you in turn should return the favor.  Give in slices, get returned in loaves!

Things to consider now that we have reviewed blogging…How do you benefit?  What can happen?  How do you do it?  It can only produce results.  Get it?  Got it?  Good!

Now, go sell something!

It’s all about your peeps

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Lately there have been articles written about diversifying your business – well I say, “Go with what you know”.  It is time to focus on your database, the management of your database and its growth. 

  • The question is, why try to get into foreclosures?  This aspect of the business is already overwrought with Realtors, is difficult to penetrate and in many instances can be very expensive as expenses need to be covered until they can be reimbursed by Fannie Mae, Freddie Mac or the banks. 
  • Why begin mass mailing campaigns?  They are expensive, time consuming, produce a relatively low return on investment plus it takes years to establish yourself as the expert. 
  • Internet campaigns are time consuming and have a relatively low return on investment plus the leads can take years to incubate.
  • People – much like yourself – hate to be cold called, so why do it? 
  • Door knocking is for Girl Scouts, not professional Realtors.

So let’s focus on who you know and how they can get to know you better so you can get referred more business.  How can people in your database get to know you better?  It can be summed up in one word – consistency. 

  • You need to become consistent in your mailings to your sphere.  The mailings need be informative to the recipient – their house value, interest rate information, neighborhood information, area trends, etc.  Also, keep good notes on your members so you can send them coupons to their favorite restaurant, information about camps for kids, etc.  Remember, it is about them – not you!
  • You need to be consistent with your calls.  Call them on their anniversary, the anniversary of the purchase of their home, holiday greetings, birthday wishes (remember I said to take good notes on your members?), summer vacation calls, your neighbor just listed calls, or just checking in calls will all work – do it consistently!
  • You need to provide great client events.  Typically one for the kid oriented groups and one for the adults.  Ball games are great, bowling nights, Super Bowl parties, and Casino nights – all work.  Get creative but just do them.
  • You need to invite to participate in charitable events.  If you don’t host one – start.  If you “don’t have the time”.  Get involved in a charity and volunteer.  Your database needs to see that you are passionate about something other than business.  By giving back – you will get back!
  • Network – consistently to add new people to your database.  Join a BNI, referral share group, chamber, hold business to business meetings, join an association, coach youth sports, and get involved in something to allow yourself to meet more people!  The only way to add to your bottom line is to add people to your database.

Basically, you need to spend the year focusing on your database – not other avenues of business to get you long term results.  Get it?  Got it?  Good!

Now, go sell something!

Don’t rock the boat baby…

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There has been a recommendation by The President’s Commission on Fiscal Responsibility and Reform to reduce the mortgage interest deduction for home owners.  The commission recommended turning the mortgage interest deduction into a tax credit, capping eligible mortgages at $500,000, and eliminating tax benefits for second homes and home equity loans.  This deduction has been in place over 80 years and has been on of the main reasons people make the move from becoming renters to home owners.  The tax deductibility of interest paid on mortgages is a powerful incentive for home ownership and is one of the simplest provisions in the federal tax code. In a recent survey commissioned by NAR and conducted online in October 2010 by Harris Interactive of nearly 3,000 homeowners and renters, nearly three-fourths of homeowners and two-thirds of renters said the mortgage interest deduction was extremely or very important to them.  If this reform takes place it will have far reaching implications in our economy and in our housing sector.

So, how will the change in mortgage interest deduction affect housing? 

  • There are currently 75 million homes in America, approximately 51 million are owner occupied and have a mortgage.  In 2008, nearly 38.5 million people claimed a deduction for mortgage interest on their taxes.  Changing this IRS code will affect a huge number of people who file taxes each year and count on this deduction as part of their home budget.
  • It is estimated that the home prices and values of homes will drop by close to 15%.  This will impact home owners net worth and wealth drastically.  Home values in 2009 were estimated at $19.3 trillion meaning nearly $2.9 trillion of wealth would be lost by homeowners – a drastic situation for many Americans.
  • Housing is nearly 20% of GDP as each property sale generates over $60,000 in revenue and touches over 20 industries.  As mentioned above, nearly 3/4 of home owners and 2/3 of renters claim the mortgage interest deduction as extremely or very important to them and their decision to buy a home.  This will substantially reduce the number of sales every year will affect the overall economy.
  • This change will affect an already rocky housing sector of our economy.  Billions of dollars have been spent to support the housing sector so does it really make sense to reverse the trend now?
  • Jobs will be lost as a result – real estate offices will close – the need for Realtors will diminish – builders will go out of business – title companies will reduce in size – the mortgage business will shrink – county government employees in record rooms will lose jobs – trades people will lose their jobs and the list can go on and on.

This decision will be bad for business, home owners, the economy and so much more – keep the mortgage interest deduction in place for the good of America.  Get it?  Got it?  Good!

Now, go sell something!

 

Don’t miss out on the American Dream!

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Why is now the time to pursue the American Dream and buy a house in today’s market?  The reason is because many of the fundamentals of home ownership remain strong in every market – even today!  Let’s review, shall we?

  • Owning a home provides stability in you and/or your family’s life.  You are not subject to having to move on the whim of your landlord and you can start to build “roots” in a neighborhood.
  • You become part of a community hence building upon the theme of pride in ownership.
  • Today’s interest rates are at historic lows making payments extremely affordable.
  • Prices have bottomed out and are on the rebound in many areas – get on board before prices and rates increase again.
  • The home becomes “yours”.  You can paint, re-carpet, renovate, landscape and even more without approval from a landlord and the improvements add value to your home, not someone else’s property.
  • Home ownership is a wealth building strategy – each payment decreases your loan balance increasing your equity in the home – it is a built in savings account!
  • The tax savings and benefits are a huge benefit to your financial bottom line.
  • You choose when to move – not someone else.
  • Home ownership strengthens our economy – each home purchase touches over 20 industries and creates over $60,000 in revenue
  • The housing sector represents nearly 20% of the US’s GDP and helps drive our economy
  • And best of all – it is the American Dream!

As we know, all markets are cyclical and we have been in a down cycle for real estate for over three years now – the market will come back – it always does.  Now is the time to take advantage the opportunity afforded you today – just look at the graph…

                           Now…                                   Later…

Sales Price           $400,000                              $360,000 (assumes 10% drop in prices)

Loan Amt             $320,000                              $288,000

Rate                  4.375%                                  6.125%

P&I                   $1,597.71                             $1,749.92

Save      $152.21 per month by buying now

Save      $18,265 over the next 10 years

If you are a savvy buyer, now is the time to make the move.  Get it?  Got it?  Good!

Now, go buy something!

How many of my 2010 predictions came true?

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It’s review time for 2010…

Well, the predictions forecasted by me last year were:

  • Interest rates would rise in the second quarter as the government was going to exit the purchasing of Mortgage Backed Securities .  Wow, was I wrong here, interest rates sunk to the lowest level in history.
  • House values will stay stable in most price points below $400,000 and will drop in mid price points – $400,000 – $800,000.  Fewer buyers will take advantage of market conditions and consumer confidence will keep them where they are today.  Well, I was pretty damn close – prices increased slightly in the lower price ranges but definitely dropped in the mid price ranges and consumer confidence remains in the tank.
  • Unemployment will rise through the first half of the year then level off late third quarter – we can’t get any worse than we are nationally.   Locally, we are in good shape with unemployment and we should hover around where we are today.  The prediction was true on both fronts and unemployment is contributing to low consumer confidence.  As the saying goes, when your neighbor loses their job it’s a recession, when you lose your job, it’s a depression – many Americans are still feeling the effects of unemployment nationally.
  • Foreclosure inventory will increase nationally – ours will see a slight increase but won’t have a significant impact like it has in recent years.  Any foreclosure inventory locally will get absorbed quickly as we have such pent up demand.  Again, pretty much true, our foreclosure numbers increased slightly but boy, nationally, they went through the roof!
  • Short sale inventory will be bigger than foreclosure inventory nationwide – including our area.  It is important to understand how they work, get a designation to take advantage of this opportunity and to understand how to get them through.  As predicted, short sale inventory increased both nationally and locally.  And, it is true, if you have a designation, you understand the process better and can help more distressed home owners as a result.
  • More real estate offices will close, merge and we will see additional acquisitions – boutique real estate offices will become a thing of the past as agents and clients demand more technology and services that smaller firms cannot afford.  This most definitely occurred and will continue through 2011 – especially in the large regional independents and the franchises agencies with fewer than 15 agents.
  • Social media marketing will be even more in the forefront moving into the future – get on board or get left behind.  The consumer embraces this medium – so should you!  Many agents have gone way overboard and although they are embracing social media, they are not utilizing it correctly and as a result are turning off consumers.
  • Videos will be more prevalent in agent’s marketing of homes and themselves.  Get proficient in the use of flips, camcorders, and digital cameras that have recording features.  More agents are becoming aware of video and we are seeing more of it in the market but more need to utilize the medium as the consumer is drawn to videos.
  • More agents will go green as this will become an even bigger “buzz” word going forward.  Get ahead of the curve and get a green designation today!  Yes, agents did go green but the residential market is still lagging behind the commercial arena in scope and magnitude of going green.
  • More agents will exit the business as the business becomes more specialized.  This has happened which is a good thing for both the profession and more importantly, the consumer.  Today, more than ever, it is important to work with a Realtor who is full time and has the capacity to convey market conditions, trends and is familiar with the contract and process.

Well, in retrospect, the vision was pretty decent for what was going to happen in 2010. The one item that was unfortunate is that people weren’t able to take advantage of the low rates or were not in a position to take advantage of the low rates due to value issues.  However, many were which is great for them.  Be on the lookout for my predictions for 2011!  Get it?  Got it?  Good!

Now, go sell something!

 

 

 

 

It’s the most wonderful time of the year…

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For glogl 
 
Well, well, well what do we have in store for the real estate market now through the end of the year in Northern Virginia?  I believe we are in for a surprise this year.  We are going to finish the year stronger than many expect.

Typically, this is a slower time of year but we haven’t seen as big a slowdown as we normally do during the holidays.  The trends show us houses are coming off the market rapidly both through sales and being withdrawn from the market due to it being “that time of year”.  But interest rates are at all time lows and buyers are out in full force!  In speaking with other professionals – the ones who have been working hard the last few months networking, giving great advice along the way about our market and are communicating with their clients are reaping big rewards.  We have one agent, Becky Green, who sold 3 houses this past week – a holiday week no less.   Toll Brothers Amberlea in South Riding had 25 visitors on Saturday and we wrote a contract early Sunday morning but I am sure they saw similar activity later in the day – 2 visitors were in the model when we left.  An agent in our office wrote a contract on a town house in Herndon and there were 3 others competing for the same house.  So much for the slow down around the holidays!

So, where are these buyers coming from?  Many are relocation buyers coming into the area and others are relocation buyers from the spring who decided to rent.  They wanted to get familiar with the market, our area and wanted to wait and see what was going to happen with the economy and housing sector and now, their leases are ending and they are ready to buy.

In a recent Fannie Mae survey, the following information was revealed by the participants:

  • People trust homeownership as an investment over buying stocks (66% to 16%). The stock market has seen its’ tremendous fluctuations and people have no control over which direction the stock will fluctuate.  In contrast, upgrading the home adds value and paying down your mortgage increases the equity in the homes plus the many other advantages of home ownership.  In addition, they also trust owning a home over investing in a 401k, buying an insurance annuity or investing in a mutual fund. People find investing in a home safer than any other investment except putting their money into a savings account.
  • 96% of homeowners feel that homeownership has been a positive experience – what’s not to like?  Stability, pride in ownership, sense of community and many other factors contribute to this positive experience.   17% of renters think renting has been a positive experience which means 83% feel it is negative or neutral. This is a huge disparity which reflects now is a good time to buy!

Additional findings in the report that we need to make note of in the report include:

  • 62% of renters have long-term ownership aspirations – we just mentioned this above in the buyer pool in the market today.  Many more will enter the market as their leases come to an end – stay tuned.
  • Americans continue to expect home rental prices to rise more than home prices over the next year. Americans believe that it is more likely that home rental prices will go up rather than go down by a ratio of almost 4 to 1.  Right now, we have a 1.7 month supply of rentals and we see rental rates increasing on a year over year basis in our property management group.
  • An overwhelming majority of mortgage borrowers remain satisfied with their loans and 3 in 4 Americans are confident they would receive the necessary information to choose the right loan.  The teaser rate products, no income no asset loans, and balloon products are out of the market along with many others that created our housing crisis that we are climbing out of today.
  • Non-financial considerations, such as accessing good education and safety, continue to trump financial reasons for owning a home. With the top three reasons (education, safety, and more space) all increasing in percentages since the last report.  People realize how important “home” and one that is theirs is in life.
  • Since the time of purchase, 59% of mortgage borrowers have seen their home value increase.  In many markets, prices have stabilized or increased throughout Northern Virginia.  It is time to get into the market before the price escalations begin to soar.
  • In conclusion, the Fannie Mae survey showed that homeownership is still considered by the vast majority as a good investment (66%) and a positive experience (96%) and, most importantly to those sitting on the fence, 68% think it is a good time for people to buy a home – and you should!

Based upon the information above, it is critical, now more than ever to reach out to a true real estate professional and get the facts on the market and don’t rely on the national media for your real estate information.  Who knows, Santa may bring you a nice surprise for Christmas!  Get it?  Got it?  Good!

Now, go buy something!