Current Affairs

Notes from Scott’s Desk

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There are houses selling…2 contracts per listing of late – and
in different price points, $250,000 and $850,000.  The contracts came in close to list price even
though they were in competition.

Some agents like Equator, the new Bank of America short sale
portal – because of their quick responses and live chat, but some still have
repeated problems with acceptance of forms in particular formats.  Once in the final stage of approval, it takes
about 6 weeks to close, and they take precautions to stave off foreclosure.

Ask for 90 day short sale contingency approval – don’t pull
contract in final stages of negotiation, swap out contracts with same terms to
keep the ball rolling – you don’t want to have to go back to the beginning.

Short sale listings are finding agents – agents aren’t
pursuing them as much, they are just coming in.

Go back to database – reach out and talk to your people to
grow your business.  We are in a
relationship business – build those relationships deeper and your success will
follow. 

What will happen at the end of April when the tax credit is
gone?  No, what will happen at the end of
March when the Fed stops buying MBS?  The
market will slow…buyers will be back on the fence…financing is tough enough –
hopefully the restrictions on obtaining financing won’t get any worse…rates
will increase – buyers will drop out of market – will prices drop?  Message to send out: look at the positive
side of things…rates are great, inventory is available, prices remain low, we
know what loan programs are available…we need to list out true picture of the
market, it’s our job.

How do properties not listed as short sales end up in hands
of investors prior to courthouse steps?  Are
these investors negotiating directly with the seller or going to the trustee at
the steps or are they going directly to the bank?  This is a question our group would like to
know the answer too.

Appraisers are asking to have snow removed from the roofs of
properties…appraisals are coming in low…fewer sales make appraisals a problem
this time of year…appraisers aren’t going into the house in some cases…on FHA
loans, the lender has the option of using the first appraisal or ordering a
second one, if you are caught in a low appraisal situation with FHA loans on
your listings, switch lenders…

Housing starts rise in January 2.8% – RISMEDIA, February 22,
2010—Nationwide housing production hit its strongest pace in the last six
months this January, posting a 2.8% gain to a seasonally adjusted annual rate
of 591,000 units, according to figures recently released by the U.S. Commerce
Department.

According to the latest indexes (Zillow and the Feds “flow
of funds report) negative owner equity has dropped as prices have begun to
increase and between the 1st and 3rd quarters last year,
home equity rose by $1 trillion as a combination of increased home values and
principal pay down.  Although this news
was good for a lot of the country, the sand states (FL, AZ, NM & CA)
continue to be viewed as a high risk factor.

Josh Burruss of Potomac Mortgage Group mentioned the
upcoming FHA financing changes and dates to keep in mind to create buyer
urgency.

The following are some images from our monthly Real Estate Exchange in Gainesville. 

IMG_7864

IMG_7866 

IMG_7869     IMG_7872 

IMG_7877     IMG_7878

 

Why Northern VA is the Place to Be in Real Estate

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Northern
Virginia is fortunate to have the fundamentals to be one of the top real estate
markets in the country.  Residential real
estate prices in the area had declined considerably in many areas over the past
few years but have likely bottomed in 2009. 
The demand for real estate in Northern Virginia continues to be on the
rise because of the strong job markets of Washington, D.C. and the surrounding
areas.  Many new corporate headquarters such
as the offices of Northrop Grumman, SAID, Volkswagen, Hilton and Merck have
recently moved to Northern Virginia bringing thousands of families to the
suburbs.  Contributing to the demand for
residential real estate in Northern Virginia are the many students and faculty
of several Colleges and Universities in the area, including; George Mason
University, Marymount University, Northern Virginia Community College and the
graduate and part-time student satellite campuses of Virginia Tech and the
University of Virginia.

Now
is a favorable time to invest in real estate in Northern Virginia.  Property values are affordable relative to
recent years and are expected to rise over the next several years as jobs
continue to be created here locally. 
Additionally, mortgage interest rates are near all time lows which
enable investors to capture higher returns on their investments.  Inventory numbers are down as more homes are
selling than are going on the market. 
The inventory levels are down this week 54% from the same week last year
and are down 70% from two years ago.  New
construction home builders are also reporting increased activity and sales in
recent months.  There is currently only a
2.5 month supply of homes in all of Fairfax County, Loudoun County, Prince
William County, Arlington County, Fauquier County, Alexandria City, Fairfax
City, Falls Church City, Manassas City and Manassas Park.  For rental properties in these areas, there
is only a 2.1 month supply which adds to the housing demand.

In
a recent Forbes article it was also noted that the premium for rent versus
mortgage payments helps determine when an area is determined to be a good
buying opportunity – well here is an excerpt from this article: 

For
people who want to own a home, the premium to buy—the spread between what
they’d spend to rent and what they’d pay for a mortgage—is much lower than the
15-year average in many cities.

To determine what
cities are smart buys, Forbes magazine computed the premium and also identified
locales where economists predict home prices will go up the most over the next
five years.

Here are the top
10 cities the magazine chose as the best places to buy right now.

  1. Boston-Cambridge-Quincy, Mass.
  2. Charlotte-Gastonia-Concord,
    N.C.-S.C.
  3. Chicago-Naperville-Joliet,
    Ill.-Ind.-Wis.
  4. Cincinnati-Middletown,
    Ohio-Ky.-Ind.
  5. Denver-Aurora-Broomfield, Colo
  6. Minneapolis-St. Paul-Bloomington,
    Minn.-Wis.
  7. Philadelphia-Camden-Wilmington,
    Pa.-N.J.-Del.-Md.
  8. Portland-Vancouver-Beaverton,
    Ore.-Wash.
  9. San Francisco-Oakland-Fremont,
    Calif.
  10. Washington-Arlington-Alexandria,
    D.C.-Va.-Md.-W.V.

 

As
a “Top Ten City”, we are even more encouraged to recommend buying in Northern
Virginia.

Two
particularly “hot” areas of expected property value increase over the next few
years are the neighborhoods of Herndon which are located within a two mile
radius of the future Herndon-Monroe stop on the Silver Line of the Metro and
the neighborhoods of Dumfries which are in close proximity to Fort
Belvoir.  The current Silver Line project
was secured by federal funding in December 2008 and will be completed in two
phases between 2013 and 2016.  With easy
access to public transportation, there will be more demand for housing in
Herndon.  In 2005, the Defense Department
announced that it would be shifting 18,000 jobs to Fort Belvoir.  This increase in jobs will cause more of a
demand for rental properties which, in turn, will keep inventory rates down, force
rental prices up and property values to rise.

We
believe that investors with a long term outlook on real estate will be well
served by investing today in Northern Virginia. 
If you have any additional questions or concerns, feel free to call …

The Market Is What the Market Is…

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Platinum
Group and Haymarket Real Estate Exchange in January

AMSHI
is charging $5,000 to buyers and $5,000 to sellers to negotiate short sales…short
sales are getting tougher – for example, Bank of America is taking forever and
in many cases sends you back to square one. 
Banks are setting unrealistic expectations for closing dates with
approvals on their short sales.  Banks
aren’t up to speed on lending rules and regulations when giving the approvals.  Employees at these banks are not educated –
fresh from college, calls are often outsourced, and they have not been trained
properly.  Bank of America is now using
Equator; therefore, there is no one person to speak with which makes the
process even more frustrating.

Foreclosures
are coming – it’s ground hog day – we keep hearing the same thing over and
over.  One agent has 6 in the pipe line;
another has 5 in the pipeline and 6 under contract and is getting about 1 every
2 to 3 weeks.  We are below the national
average as far as default rates and our inventory level is 33% distressed. 

We
discussed “shadow” inventory that we just don’t see, but the media continues to
talk about.  If banks are going release
foreclosures into the market, it will be a slow and steady release and not a
“dump” on the market scenario. 
Foreclosure filings were down 26% in Prince William County in 2009 –
stay tuned!

It’s
tough to find properties under $400,000.

We
are waiting on the FHA mortgagee letter to be released to hear about new
guidelines – increase in down payment with credit scores under 580, increase in
upfront mortgage insurance, reduced seller concessions, and the waving of the
seasoning requirements for flips – we shall see…

VA’s
max loan is now $758,000.

Inventory
levels are slowly increasing which give the appearance of things being slow,
but it really isn’t – especially in the lower price ranges.

Need
to build urgency in buyers – prices are affordable, interest rates remain
attractive, home buyer tax credit is still in place, and loan programs are in
place today that may not be available in the future.

A Real Threat?

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The
question surrounding our market lately is shadow inventory and how will it
affect us.  Well in my opinion, it is a
very good question as it is a question I have been asking myself and our agents
for several months.  Over the past 18-24 months we have heard about
foreclosure being released into the market – it hasn’t happened as of
yet.  The latest indication from asset managers is that properties will be
released in the 2nd quarter of this year.  We shall see if it
occurs.

 

The
question I ask is for agents to look around their neighborhood for vacant
properties not currently listed for sale, and ask their neighbors and friends
if they see many unlisted vacant houses.  The answer I typically get is
no, there aren’t that many. 

 

We
ask how many of your friends or neighbors outside of real estate are unemployed
locally.  The answer, not many.  We ask our agents if requests for
BPO’s (broker price opinions) are on the rise, steady or going down – here you
get a very mixed bag but mostly we hear they are going up, but only
slightly. 

 

We
run MRIS numbers Friday mornings in Fairfax, Loudoun, Prince William,
Arlington, Fauquier, Alexandria City, Fairfax City, Falls Church City, Manassas
City and Manassas Park for resales only in the categories of actives, under
contract, settled the last 30 days, vacant, and rentals to help us determine
trends in the market.  As of this past Friday, there were 4,727 active
resales in these areas.  335 were listed as foreclosures, 931 were listed
as short sales and 41 were listed as undisclosed (which are more than likely
short sales) which represents 28% of the inventory.  These numbers are
below 2008 numbers when we experienced our foreclosure boom.  And, our
inventory numbers are down 54% from the same week last year and are down 70%
from 2 years ago.  Plus, we only have a 2.5 month supply of homes.

 

So
where will the shadow inventory come from is the question and I believe it is
foreclosures and unapproved short sales.  What dictates
foreclosures?  Unemployment is one of the biggest factors.  The job
loss to foreclosure ratio is 6 – 1.  I understand that unemployment in
Northern Virginia is around 4.2% which is very low.  Job relocation and
subsequent inability to sell.  Well national unemployment is over 10% and
companies are relocating here so we are seeing fewer relocations out of the
area.  Divorce is another factor – it is my understanding that they are
down because people are under water with values and can’t afford to finalize
divorces.  So it seems unlikely we will see a huge influx on inventory
from these areas but we do have two real threats in our future – Prime loan ARM
readjustments and the eventual unapproved short sales inventory being reentered
into inventory.  The only issue is we are unsure of the true number we
have here in our area and if it will have any significant impact.

 

We
will have “shadow” inventory but I don’t believe it to be a real threat to our
market as our inventory level is low and we should be able to absorb it with
the pent up demand we are experiencing with the home buyer tax credit expansion
and extension coupled with low rates and reduced valuations of properties.  Get it? 
Got it?  Good!

 

Now,
go sell something!

D-I-S-C-I-P-L-I-N-E

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Recently we discussed change and in my opinion, one of the key ingredients to true change is discipline. Discipline is defined as conscious control over lifestyle – mental self-control used in directing or changing behavior, learning something, or training for something.  Here is a breakdown of discipline to help you continue down the path or perhaps blaze a new trail to incorporate this quality characteristic into your daily habits.

Desire – you must want what you have written or listed as your goal or objective.

Initiate – you must initate the proper behaviors or changes into your life.

Sacrifices – you must realize there are sacrifices necessary to implement in your life to achieve success.

Commit – you must commit to the changes you desire and stick with them to get the results you want.

Intentional – your actions must be intentional towards your new behavior and away from the old in order for true change to occur in your life.

Passion – you must have passion to achieve what lifestyle change you are implementing into your routine.

Learn – you must learn to accept the challenges you will face and fight through the “pain” of old habits.

Inspire – reward your new behavior to inspire yourself to stay on course and in the process, perhaps you will inspire others to do the same!

Numbers – it starts with small incremental changes, one by one that will add up to huge results.  As the saying goes, you eat an elephant one bite at a time.

Excellence – is what you will achieve if you stick with your plan of action through discipline.

In order to effectively implement change in your life, you must embrace discipline.  By writing your goals down, it will help you have focus, desire and the will to achieve, which will result in discipline becoming easier for you.  Remember, it all starts within you.  Get it?  Got it?  Good!

Are you ready for 2010?

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Well here we are, the first week of not only the New Year but the New Decade as well and if you haven’t already done so, now would be a great time to think about how you are going to be successful in 2000teens.  Obviously, in order to attain success, you must have a plan and decide for yourself the Status Quo is Unacceptable and get started on one today. 

One of the most important things to realize to set your plan of action in place and more importantly – in writing – for 2010 is to start!  It is essential to realize when you begin to think about your plan – make sure it is your plan and not someone else’s.  The goals are yours, timeframes to accomplish them are ones that you set, and if you do this you are more likely to accomplish them.  Your goals must be SMARTY goals – Specific, Measurable, Attainable, Realistic, have a Timeframe for accomplishment and they must be Yours.  In addition, as you work through completing your task, it is good to share your ideas with others help them and to get the creative juices flowing for yourself.  In our experience, the more open you are to sharing, the more successful you will be. 

Once you have an idea, write it down so you remember thought because every thought is important, you will need to set your priorities and put the plan to achieve your goals and attain your objectives in real estate in motion.  Areas to think about may be increasing your database, finding new customers, getting educated, becoming an expert on pricing/trends/the market, etc.  Keep your mind open and determine where your focus will be this year.  Will it be first time buyers?  Move up buyers?  Short sales?  Foreclosures?  New home sales?  Property management?  Are there any other areas of interest or specialties where you can excel and make money this year in our industry?

Also, as you move through this exercise, here are some tips to keep in mind as we move forward.  Be decisive – be focused – put your thoughts in writing – develop a plan of action – share with others.  At some point soon, select an accountability partner to review your plan and theirs regularly.  It has been noted through research a group ASTD had accomplished, when you commit and plan to accomplish something in writing, you are 50% more likely to achieve it – if you commit to someone else 65% – if you have an accountability appointment with that person 95% and with a group 99%.  Think about it!

As you go through the year – stay engaged and become the go-to source for real estate for your sphere.  There will no doubt be adversity and as the times and the market change, be willing to make the adjustments necessary in your plan to insure your success.  Forge ahead – take action, massive action to achieve the success you desire and we will do it all over again next year!  Now, let get started.  Get it?  Got it?  Good!

What are your daily habits?

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As I read John Wooden’s latest book – A Game Plan for Life – and review the habits his father had passed on to him through his mentorship, it got me thinking…what can I pass along to my children and those I encounter.  Here is what I discovered are my daily habits:

1. Always do your best…

2. Always do the right thing…

3. Always strive to learn something from every situation…

4. Be a continuous learner…

5. Always give back…

6. Live with passion and optimism…

7. Be strategic – in your life and in your relationships…

8. Be respectful and kind…

9. Have fun…

10.       Live your life to the fullest…

It is important in life to have your list of daily habits to improve yourself and the quality of your interactions.  Just a little food for thought as you set your New Year’s resolutions.

We are here to help you have a successful 2010.  Get it?  Got it?  Good!

Now, go sell something!

Still going strong…

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The market continues be strong for sellers looking to move up or move out!  Existing home sales spiked in October and November to the highest level since February of 2007.  Buyers are out in full force looking to take advantage of low rates, low prices and the tax credits that are available – there hasn’t been a better time in recent memory to take advantage of the real estate market!  Our biggest challenge today is inventory.  Our existing home inventory is at the lowest level since April of 2005.

Even with this outstanding news, it is critical to realize that it our market remains extremely price sensitive.  This means properties must be priced right, must be in the right condition and must show well (staged) if you expect to sell instead of just being for sale.  Buyers recognize when houses have a perceived value and are acting quickly when homes fall within this category.  If houses are priced at market value or a little high – they will collect days on market and help the other houses sell faster.  To assist our buyers and sellers determine if properties are priced properly we have developed a unique pricing model – The Home Pricing Wizard. It takes asking prices, under contract prices, sold prices, square footage prices, tax assessments and market trends to determine the right price for a home.   If you would like to learn more about our system or to see where the Wizard prices your home, feel free to call us today.

You still notice some reports out there that are casting a negative light on the housing market.  What you need to realize is that the news you see, read and hear is national news and not necessarily local.  As we have been telling you for years, real estate is local and even in some cases – hyperlocal.  However, some national news that may be of consequence to us and may affect our area is the mortgage delinquencies and how they are on the rise with “prime” borrowers.  This scenario is going to lead to our next wave of foreclosures both nationally and locally and will affect many in our area over the next few years.  Borrowers who have ARM’s that are set to readjust are most likely to be affected as they are unable to refinance due to declining housing values or they cannot afford the newly adjusted payments.  Keep your eyes and ears open and look for news on this as it will impact our market.

Again it’s a great time to buy or sell a home today.  Our team of knowledgeable and professional agents are happy to help you negotiate the best deal whether you are buying or selling a house in this competitive market.  Call us today!

The Numbers tell the Story

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As many of you know – and as my DISC profile told me Friday – I like numbers to support my case.  Well, the numbers I am going to share with you are facts you need to know to help you in your business and show us trends in the business:

 

33% of agents have been licensed fewer than 5 years – just 2.5 years ago at the RE/MAX Broker/Owner Convention, that number was 59%!  In my predictions for 2010 I believe we will continue to see even more agents drop out of the business because of the continuous changes that are occurring and the specialization that is required of agents to serve their clientele.

 

53% of agents have been licensed fewer than 10 years – again, from the same conference just 2.5 years ago, it was 78% of agents were licensed fewer than 10 years.  The lower this number goes, the better it is for us ethical and professional agents.

And, in my opinion, you have to own what you sell – 91% of Realtors own a home compared with the national home ownership rate of 67%.

 

In a survey of buyers and sellers this information was gathered…the 3 things buyers want from their agent:

 

1 – Find them the right home to purchase.  Do you know what this means?  You have to listen!  Check out my blog from earlier this week… www.scottymacsblog.com and while you are there, click the RSS feed in the lower right hand corner to subscribe to my blog site please – you don’t know what you are missing if you don’t register!  Oh yeah, it’s free!

 

2 – To negotiate the price.  Quick question…when was the last time you practiced your negotiation skills?  What new techniques have you found valuable?  Have you read any good blogs, books or magazine articles lately about negotiating?

 

3 – To negotiate the terms of the sale.  Hummmm sound familiar to #2?  Are you marketing yourself as a negotiator?  Do you have testimonials to back you up if you do?  When you meet with clients, do you have specific stories that relate to how you negotiated on behalf of a buyer in a particular situation?  Oh, by the way, listening is a huge part of negotiating!

 

Now, here is what the sellers say they want from their agent – see if you realize what is missing:

 

1 – Price the home competitively.  You have to know your comps, market conditions, and trends to know how to price accordingly.  Basically, do in depth research of the market to get it done for you seller.  What are the per square foot prices, pricing trends – are they up or down and how much, the correlation between tax assessed values and sales prices, number of competing properties, average days on market, and where to price it to get maximum exposure while on the market.

 

2 – Sell the home to sell within a specific timeframe.  Again, this requires you to price it to sell and what else?  Get it in the right condition and get it to show well…let’s see what is next!

 

3 – Find a buyer for the home.  Well, what do you need to know to do this?  You have to know where buyers go to find houses…other agents, and the internet.  Basically, you have to market your listings where the buyers go to find them.  Research the sites that get the most exposure, the most hits from buyers, what agents sell the most homes in the price range of the house you are selling, etc.  It’s not rocket science.

 

4 – Market the home to potential buyers.  As previously mentioned – you’ve got to know how to market on the internet – Social Media sites, your website, other real estate related sites, etc.  Also you need to know what they want to see when they get there – multiple pictures and in my opinion, videos.  Pictures and videos of the house, yard, views up and down the street, neighborhood, schools, and shopping centers – get creative!  Also, do your research on MLS and get your listings in front of Realtors who have buyers in your properties price range – get the word out!

 

5 – Find ways to fix up the home to sell it for more.  Have the listing pre-inspected to have the home in the right condition.  When buyers see one thing wrong, they begin to look for more things that are wrong and then pick at the price.  Have the home staged to have your stager recommend low cost items that get the biggest returns for your sellers. 

 

When houses are pre-inspected, staged and priced right – they sell in the timeframe your sellers desire.

 

So you ask, what was missing.  Well, in my opinion – negotiating.  If you can’t negotiate, you can’t get them to price it right or get them to get it in the right condition to sell it in the timeframe they want it sold within.  Also, you have to negotiate with buyers and agents to get your sellers what they want when they want it so learn how to negotiate and market yourself as a negotiator.  Have specific stories that tell sellers what you have done for others to get them what they wanted from the sale of their home.

 

The more you appeal to buyers and sellers through showing your experience in areas that are important to them, the more success you will have in our business.  Get it?  Got it?  Good!

Gateway’s Year in Review…now on to 2010!

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As the Leadership Team at Gateway reflects on the year that was 2009 and to see where we need to go to achieve our goals for 2010, we thought we would share our accomplishments and significant events that shaped 2009 for us as well as let you know what we want to accomplish in 2010.  We also want to share with you, RE/MAX’s Vision of 2010 and show you how we are aligned with their goals which is pretty exciting in my opinion!

RE/MAX Vision:

The number one goal is – Increase market share and associate production through recruiting, retention and franchise sales.  We have on our plate for 2010 to open at least one new office – Brambleton in July.  Additionally, we are looking to expand our operations to take advantage of the extended downturn in the real estate market and grow strategically through partnerships with area industry leaders.  Additionally, Gateway has increased agent count and productivity over the last year which is a testament to your hard work and efforts. 

The number 2 goal is – Overwhelm the competition with strategic Regional advertising to maximize Brand exposure.    We have seen the growth of Social Media and have embraced this form of marketing to communicate our vision to the public as well as our agents.  Additionally, our extensive email marketing campaign has been extremely successful through constant contact.  And lastly, our post card campaigns highlighting the affiliation of new agents has increased our market presence.  We believe our marketing efforts are second to none in the industry…we are always out there! 

The number 3 goal is – To aggressively pursue and complete the fold-in, merger or conversion of quality independent franchises into our existing RE/MAX brokerages.  As you know, our recent acquisition of Signature Real Estate in Culpeper may possibly lead to additional acquisitions in that region for Gateway.  Through contacts with Signature Real Estate, we have the inside track on the merger with 2 small boutique operations in Culpeper that we plan on diligently pursuing.  We are also looking at other opportunities and are happy to discuss any that you are aware of and want to be a part of going forward.

Under the Regional Office Priorities:

Recruit top 25% in each MLS.  Through the use of our subscription of Broker Metrix, we have determined who our target list of prospects is for our offices.  We have had strategic discussions with several agents in the areas near our offices and we are looking to enlist the support of our agents to help acquire these agents and others they are aware familiar with to affiliate with Gateway.  Our plans are to communicate with these agents through our “Get to Know Gateway” events, our Real Estate Exchanges, Social Media outreach and constant contact email campaigns detailing our educational programs, our competitive compensation schedule, RE/MAX initiatives and upcoming Gateway events.  By utilizing this continuous and persistent recruiting plan approach, we are confident we can capture the market share RE/MAX is hoping to attain.  Additionally, the benefit to you is that you get to work with the best and most respected agents in the business who want to help you succeed.

Facilitate networking and retention programs for existing agents.  Through the use of our emails, blog posts, our weekly Friday trainings, monthly Real Estate Exchanges (March of 2010 marks our 5 year anniversary of these events), quarterly meetings with nationally recognized speakers (Paul Muolo is slated for March’s meeting and Amy Crews Cutts, deputy Chief Economist for Freddie Mac is slated for June’s meeting, Stephen Fuller www.cra-gmu.org – his office’s 4th consecutive year – is on our September schedule and we are working on our year end meeting speaker.  This past year we had Doug Duncan, Stephen Fuller and Dave Stephens – under secretary of FHA) along with our awards party, agent appreciation events and annual Christmas party, we believe we have been able to retain our great agents such as yourselves as well as recruit several other top producing agents to our offices through this level of communication.  We want you to feel appreciated for being part of our team and we look forward to you continued participation at these and other events we host for you.

Partner with Broker/Owners to analyze and identify profitability models.  We have conducted thorough and extensive research of the market through an independent marketing firm – Verasolve – to determine the offerings of our competition and to place Gateway at the forefront of our marketplace in terms of education, trainings, and competitive compensation models that lead to profitability.  Through in depth discussions with Gateway’s leadership team, we have come up with a compensation/profitability/accountability plan that works for us as well as our recruits.  We have presented our model to our agents as well as our recruits and the model has allowed us to attract top talent from our competitors.  Also, by providing feedback opportunities to our agents, we have shown our transparency to our agents which has allowed us to maintain higher retention rates.  We are always open to receiving your thoughts on how we can serve you better as our valued agents.

And lastly, Award Franchises.  We couldn’t agree more – we are looking to grow, help us achieve this goal!

Under Brokerage Priorities:

Continue to reduce overhead/increase revenue streams.  As you know, we have closed the Great Falls office and we still have achieved a net gain of 14 agents this year at Gateway.  In addition, we have relocated our Gainesville office to a more visible location in our building with a better floor plan.  Additionally, we have incorporated training centers into both of our Chantilly and Gainesville locations.  We plan on doing the same in Brambleton as well as our future office locations.

Recruit the top 25% producers in your MLS.  Through the use of Broker Metrix, we have determined our ‘Hot List” of prospects that we want to join Gateway.  As such, we have just recently recruited several top producing agents which is great exposure for both Gateway and RE/MAX alike.

Optimize the use of the RE/MAX system in your office.  We have been incorporating the emails from the region into our regular communication with our agents and have utilized recent RE/MAX events such as Demand Success Today to educate our agents on RE/MAX offerings as well as a recruiting tool.  If you are unfamiliar with what RE/MAX has to offer, please attend our next New Agent Orientation to learn more.

Generate a high level of PR in your local community.  Through my recent election to the Board of Directors of NVAR, we have been introduced to Ann Gutkin, the head of Public Relations for our association.  She has connected us with several newspapers who request articles to be written for their respective papers.  Our quick responses to her requests as well as the newspapers have given our agents the ability to get published as experts in real estate.  In addition to this, we have established relationships with newspapers through our charitable contributions – most recently – Breakfast with Santa for our Toys for Tots campaign.  In conjunction with these efforts we get press releases published on a regular basis in business publications such as The Washington Business Journal.  Additionally, we are heavily involved with the Top 5 in Real Estate network and have achieved great PR success with RISMedia as a result of our affiliation.  In addition to this, we have a Director of Social Media which enables us to get maximum exposure, consistently out to the public as well as agents through Social Media outlets such as Facebook, Linkedin and Twitter.  Lastly, our leadership team is also deeply involved in our local associations which results in great exposure to the real estate community.  Brett, Jason and Kate are involved committees.  Additionally, for 2010, Kate is the Chair of the Convention committee as well as Vice Chair of the Education committee – outstanding exposure for Gateway.   Help us, help you get more publicity for you and aid in growing you as an expert in real estate!

And Persistence…our continuous emails, communication and our business plan (which is attached)are evidence of this desire!

Franchise Growth Strategy:

Expansion Franchises:

Existing locations must be in full compliance.  Just so you know, in short, we pay and pay on time consistently and comply with all RE/MAX requests promptly.  We have exceeded our quotas in each of our locations and we attend RE/MAX events locally, nationally, and internationally on a continuous basis.

Under Final Details:

Recruiting Business Plans.   We will be happy to provide you with our recruiting plan of action we have in place if required.  Many aspects have already been discussed in this email as well as the business plan but we can provide you with the specific plan for your review if requested.  We are looking to grow and thrive in any market and would love your input on who can help us be the best.

Quota adjustments – none needed – we are compliant and far exceed the requirements outlined in our franchise agreements.

Business Continuity Planning – provided over a month ago per your request to be compliant with RE/MAX.

Statistics Reporting provided monthly through Lone Wolf with our monthly bill payment to remain compliant with RE/MAX.

Membership Profiles provided as agents affiliate with our office.  Each agent in MRIS and at DPOR with Gateway is also in the RE/MAX system to be compliant with RE/MAX.  Also, all agents are agents – not listed as licensed assistants to be compliant with RE/MAX rules and regulations.

Children’s Miracle Network was at our year end meeting and we have signed up in hopes of becoming a Miracle Office.  We are also extremely involved in other charities and can provide a specific list of continuous involvement with these charities upon your request.  Life with Cancer, Susan G. Komen, Toys for Tots, Leukemia/Lymphoma Society, and many others are on our list.

In addition to the items listed, we plan to embrace the New Events for 2010 proposed by RE/MAX and look forward to participating in these events.  Most notably, the Swing for Success, Broker/Owner Boot Camp, Broker/Owner Retreat 2010 (we have relationships with exceptional speakers that are reasonably priced if you need suggestions), New Agent Orientations (we have one for our agents if you would like to review or implement items from our presentation) and all the others listed in the email.

As you can tell, we are passionate about our franchise as well as the expansion of Gateway and believe that we have presented a compelling case for us to be noted as one of the best franchises in the RE/MAX organization.  Our commitment to our agents, Central Atlantic Region and the RE/MAX brand as a whole is evidenced by our desire to build the best franchise in the network.  We have put together a strong group of agents who are dedicated to each other’s success.  We will continue to grow, evolve as a franchise, and tackle the challenges of the real estate market head on!  We will not remain complacent – this is our commitment to you, our Gateway Agents. 

Below is a brief list of our accomplishments in 2009 and a look ahead into 2010!

Here were just a few of our Charitable contributions this year…

Golf tournament raised $6,400 for YouthQuest Foundation

We fielded a team for the 5th straight year and walked in the Susan G. Komen Race for the Cure

Nearly $2,000 was collected for Life with Cancer

273 toys were collected at our Breakfast with Santa for Toys for Tots – 5 years running!

 

New Path to Excellence Seminar Series started…

Leadership Seminar

Team Summit

2nd annual Successful Business Planning Retreat

 

Our Distinguished Speaker series blossomed…

Doug Duncan – Chief Economist for Fannie Mae

Steve Fuller, PHD  – Head of GMU Center for Regional Analysis

Dave Stevens – Under Secretary of FHA

America’s Home Rescue, Michael & Stacey Spickes

In addition to these events we experienced…

16 net new agents

Closed our Great Falls location in a cost savings measure…needed to tighten the belt in 2009

Moved Gainesville to more prominent location on first floor

Incorporated training rooms in all offices as trainings became better attended

Received approval for Brambleton office from RE/MAX – office due to open in July of 2010

Scott was elected to the NVAR Board of Directors

Hired a Director of Social Media

Incorporated Social Media in all aspects of the office: Facebook, LinkedIn and Twitter for all offices

Group designations CDPE and CDRS both for short sales and both were excellent in their own ways!

 

As far as the calendar of events for 2010 – here you go!

February 11th Get to know Gateway – Logan’s Fair Lakes

March 12th Paul Muolo: Quarterly Company meeting (not confirmed)

March 19th Golf Tournament

April 21st Gateway Awards Night

May 12th Team Summit

June 5th Race for the Cure

June 16th Get to know Gateway – Gueseppi’s in Haymarket

June 18th Quarterly meeting with Amy Crews Cutts

July 17th Company Picnic – Scott’s court

August 4th Leadership Seminar

September 17th Quarterly Meeting

September 22nd Get to know Gateway – TBD Brambleton

October date TBD Flu Clinic

October 22-24th Business Planning Retreat – potentially Kingsmill Resort

November Food Bank Collection due date November 19th

December 3rd Year End Meeting

December 4th Breakfast with Santa for Toys for Tots

December 9th Gateway Christmas Party

As well as all of our other regularly scheduled trainings and Real Estate Exchanges – keep an eye open for your monthly calendar!  You are guaranteed to experience more at RE/MAX Gateway!

Now, go sell something!