Market Trends

Can you do the time?

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Don’t do the crime if you can’t do the time.  This saying comes to mind with the latest banter back and forth about the mortgage foreclosure moratorium.  What is happening in the real world and not in the media’s demented mind and the mind of special interest groups is people aren’t paying their mortgages – PERIOD!  If they were making their payments as many of us are and as we agreed to do when we signed our deeds of trust – regardless of the home’s value – they wouldn’t need to worry about whether their paperwork was Robosigned or not.  As many of us have heard at the settlement table, “you pay stay, you don’t you won’t” has never been more applicable. 

The moratorium on foreclosures is bad for our industry and the economy as a whole.  We can’t get out of the mess we are in until we flush through the mass amounts of REO inventory the banks, Freddie Mac and Fannie Mae are holding in their inventories.

Let’s make the right decision to help the country get back on its feet and get the housing market back on its feet and stop talking about any type of mortem.  Get it?  Got it?  Good!

Now, go sell something!

Lists, surveys & reports…oh my!

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It seems all the rage lately has been lists such as Top Reasons to…Top 10 Foreclosure Markets…Top 7 Markets in Mortgage Delinquencies, etc. and people are asking where Virginia ranks in these types of surveys.  These lists don’t always rank all states or areas but many times these lists rank the Top 10 and Bottom 10 and Virginia has not been in them.  This tells me we are in the middle of the pack – until now.  I recently read a report on Real Trends about Corelogic reporting housing prices remaining flat and guess what?  Virginia was number 5 in price appreciation – woo hoo!  We made a list and it was for a good reason!  Read the report here.

Here is other real estate information making the news…Foreclosures are up 25% on the year.  Banks took back 95,363 properties in August – nationwide – making it the 9th month in a row foreclosures increased on an annualized basis.  Since December 2007, 2.3 million homes have been foreclosed on by banks and there are at least 1 million more to go.  Yes, we will be impacted by foreclosures but it will be to a lesser extent than the rest of the country which is good.  It will bring inventory on the market in lower price points – which is needed – and it will help first time buyers enter the market as many of these homes are made available to owner occupants for the first two weeks the property is marketed.

Regardless, all real estate is local and it is our job as professionals to get the word out prospective home buyers and sellers that we are in one of the best markets in the country and people are buying and selling homes in Northern Virginia.  Get it?  Got it?  Good!

Now, go sell something!

Do you over promise and under deliver?

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To over promise and under deliver is one of the worst mistakes a sales person can make in business.  You take both your time and the client’s time to a build a relationship through finding out each other’s wants and needs, as well as learn what their expectations are for you and for them.   Agreements and commitments are made based upon satisfying these needs.  Then, the salesperson doesn’t deliver based upon promises that were made.  In the end, when you can’t deliver upon the promise, and you didn’t set the expectation up front, you broke the bond of trust and in turn, hurt your business situation which can take years to recover from financially.

The question I have is why?  Why do people say and commit to delivering results that they cannot produce?  It brings ill will, harms friendships and causes more harm than good.  Your reputation is one of the most valuable assets you have in business – it takes years to develop – why put yourself in the position of having to defend yourself to others or rebuilding your reputation.

My advice is know what you and your business can deliver and by when.  Don’t say yes or we can do that to just get the business.  Return phone calls, emails, and text messages promptly.  If your company changes policy which results in you not being able to perform, notify the client immediately.  If you delegate to others, stay on top of them to make sure nothing slips through the cracks.  Remember, it is your reputation, not theirs at stake.  After the sale, service is critical and will get you more referrals in the end.  Follow up and follow through is what matters most.

Expectations are set through relationship building, proper delegation and being held accountable to get the job done.  This is what you get paid to do, so DO IT.  Live up to your word, do your job and make someone satisfied, not disgruntled and upset that they made the decision to go with you.  Get it?  Got it?  Good!

Now, go sell something and deliver on your promise!

Don’t believe everything you hear!

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Be careful to pay attention to what you read.  It was recently reported that Fannie Mae foreclosures were up 12% in the second quarter – loan modifications that are 30 – 59 days late are up 2.19% – deeds in lieu of foreclosure and short sales are up 27% – there is “frailty” in the housing market and on and on. 

Well, as the cops say in the movie Hangover – not up in here, that’s right, not up in here!  In Prince William County, the average sales prices of properties are up to $255,000 from $229,000 in August of 2010 versus 2009 numbers – this reflects an increase of 12.46%.  And the average days on the market are down to 44 from 63 – a decrease of 30%.  This is great news but wait, there’s more.  In Loudoun County property prices are up to $378,000 from $344,000 from August 2009 to August 2010 – an increase of 8% and the average days on market are down from 65 to 52 – a decrease of 20%.  The story of good news continues for Fairfax County as well – average sales prices are up to $417,000 from $381,500 – an increase of 8.6% and the average days on market are down to 52 from 61 – a decrease of 15%.  The City of Alexandria and other localities here in the Washington area are experiencing similar results. 

The government has release nearly $1,000,000,000 to states for their Neighborhood Stabilization Program.  This program was introduced to bring stabilization to neighborhoods that have been affected by foreclosures and abandonment.  As a result of this program, Virginia received $6,254,000 (mainly for the Hampton Roads area and Richmond) a relatively low number compared to Florida who received over $208,000,000 and California who received over $149,000,000.  Again, this is good news for the Northern Virginia real estate market.

The bottom line is that we will be having more foreclosures coming on the market and short sales will continue to be present in our market place as well.  But, the good news is we are seeing that the distressed market is having less of an impact on our market than the rest of the country.  Our market is strong compared with the rest of the country – people are still moving here and houses are selling with price increases over last year’s numbers.  Know the facts and make it happen!  Get it?  Got it?  Good!

Now, go sell something!

Extra, Extra…there is some Good News in Real Estate!

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Good news is that the Case-Schiller Home Pricing Index reflects that housing prices are up in the Washington area for July, the 4th straight month of gains – good news…there is talk about prices not making a comeback to 2006 price levels until 2014 – bad news…nationally, home sales were down 27.2% from June- bad news…but our numbers were only 18.4%, nearly 9% better than the rest of the country – good news.  Days on market is down – good news.  Inventory levels continue to maintain and even slightly decrease…not really bad or good news either way, just an FYI.

Well, enough of that silly little exercise.  However, I did that to illustrate a point – the market is what you make it and you can spin it the way you want so why not be positive.  The other point is, if you head is spinning, so are consumers.  It is our responsibility to get in front of people and explain to them that our market is different.  In our area, people are always buying or selling – we have a 2.6 month supply of houses – your job is to find them.  We can talk about the negative sales numbers or the positive sales prices – choose to move people forward and not keep them down!

More good news, Virginia was once again ranked extremely high as a business friendly state, #2 over all nationally, as ranked by CNBC.  To illustrate this point, Northrop Grumman selected Fairfax County for its headquarters, MeadWestvaco is relocating to Richmond, Pfizer has agreed to stay in Richmond, Southern University is relocating jobs to VA, and Thermo Fisher Scientific is expanding as is Evatran.  Northern Virginia boasts the lowest unemployment rates in the country and Northern Virginia has seen a drop off in foreclosures where the rest of the state has seen an increase.  In addition, Gables Residential is building 120 apartments near Fair Oaks after sitting on the property since 2007 as they see a need now for more housing.  STG has also inked a deal for 100,000 square feet in Reston and plans to grow from a $220,000,000 company today to a $1 Billion company by 2016 – keep an eye on them!

Now for the numbers!  Inventory levels are down to just under 7,600 – contracts continue to come in at about the same pace weekly – mid 600’s and month’s supply remains in the mid 2’s with rentals still posting strong numbers at a 1 month supply.  Interest rates continue to be phenomenal as well.  So, as we have said for several months now and was reconfirmed at the broker owner meetings in Denver…it is an investors market!  Find’em, sell’em, rent’em, manage’em and then sell’em again…what a theory and business model for the next few years!  Get in the game or get out.  Get it?  Got it?  Good!

Now, go sell something!

What do you think?

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What differentiates highly successful people from others who just get by day to day?  In analyzing the situation, I believe people who take the time to think are the ones who far exceed those in the business and in life who don’t think. 

Let’s discuss the problems with how people think.  They don’t think in depth enough, they have knee jerk reactions and responses to what they have processed, they just repeat information from others, and they don’t future think – what will the eventual end result be and is it what I want?  As a result, they aren’t open to feedback or suggestions and become close minded.  It is so important to think and process information for yourself to become your own person.

Let’s review what type of thinking people should embrace?  Thinking on the fly, strategic thinking, and thinking for yourself.  So, what does it mean to think?   It is to form thoughts, have an opinion on, or comprehend something.  In order to possess this skill, you must take the time to learn, develop a strategy and follow through on your thought or decision.

First, how do you learn to think on the fly?  It starts with reading.  Read books, magazines, blogs, newsletters and articles published on the subject in which you have an interest.  Attend seminars, trainings, and conferences.  Review numbers, research trends, speak with industry experts and ask questions.  Sit down and develop a list of what you believe about what you have read and heard – is it true based upon what you have experienced?  What is similar?  What is different?  What do you “think” about their data and yours?   Have an open mind, take the time to sit and reflect and formulate your own opinion…this is where it starts!  When you take the time to learn, you can quickly and easily think on the fly and respond quickly to situations as well as develop a plan of action for strategic thinking.

Next, how do you begin to think strategically?  Ask, what is the strategy?  First, develop a plan.  What is the purpose?  What is the eventual goal or outcome of what you want to achieve?  Then, make a list of what you need to get to the end result.  Analyze each option you have  written down and then review the analysis.  You must break down each component in your analysis and think, are your conclusions correct?  If the decision or thoughts affect others, what are the repercussions, how will you handle how people perceive your decision or thought process?  Are you getting what you want out of your decision? 

How do you think for yourself?  Ask yourself questions.  What are two or three alternatives to the situation at hand?  What are the outcomes of each scenario?  Which is the best alternative based upon the outcomes?  Develop your own ideas, thoughts or opinions by taking what you have learned from the second paragraph and put what you have learned into your words.  Interpret, paraphrase, develop your own thoughts and communicate them to others clearly and concisely through various avenues.  It is so important develop yourself and not become a “yes” man.  If you can’t develop your own style, give credit you who you get your information from so that others know who is responsible for delivering you your information.

Follow through encompasses announcing what you have learned.   You can write a blog, write a book, become a trusted resource to those who understand and believe in your thoughts.  You must develop accountability for your thoughts and how you communicate them.  Consistently review your thoughts and make adjustments as time requires.  Remember, change is good.

Be original, take the time to think, and make it your own based upon your research – put it in your words and become a thought leader in your own right.  Additionally, rehearse answers to what are commonly asked questions about you, the market, and your business.  The more you incorporate thinking into your daily activities, the more you will succeed.  Get it?  Got it?  Goo

Do you have all your P’s?

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The Eight P’s that lead to success and how they can help you achieve more sales. 

Here they are – proactivity, prospecting, practice, preparation, passion, psychology, professionalism, and persistence.

Without a doubt, you need to be proactive.  You cannot wait for things to happen – you must go out and make them happen.  Get into the office a little earlier, and stay at work a little later.  You have to make the calls, do the emails, write the notes, and become involved in networking, plus all the other things to make the business come in for you.

Prospecting is a necessity.  Without consistent outreach to your sphere of influence and database, business won’t just appear.  You need a plan of action and follow that plan to get leads consistently.  Often times, agents get too involved in their business putting out fires, showing properties, handling settlement issues that they forget to prospect and as a result, their business suffers.  There needs to be a set time to develop new business – everyday – if you want to be a success.

Athletes, actors, speakers, and many other professionals practice.  As an agent, you need to practice your dialogues.  Your dialogues include phone call dialogues, listing presentations, buyer presentations, objection handling, your value proposition, and your affirmation dialogues.  It has been said that practice makes perfect but I believe it was John Wooden who said perfect practice makes perfect.  Either way – get your practice in daily.  Get a voice recorder and practice while driving in your car, or with other agents in your office, or at home with family members.  Just do it!

Preparation is also critical.  The consumer is going to the internet to get their information, they talk with friends, family members, and coworkers to get their intelligence.  As we know, other’s opinions are not always correct.  You need to prepared and have your data ready, your numbers spot on, and your trends documented to make a strong case to get your point across to your clients.  With proper preparation your professionalism will shine through and help you attain more business and more referrals.

You need to have passion for what you do.  If you have passion or if you don’t, it shows.  If you don’t have it, you won’t be as engaged, as convincing, as determined as you should be and people will recognize this in the way you work with them.  If you have the passion – you will have more energy and enthusiasm for getting into the office and helping others.  This behavior is evident and people will be attracted to working with you and refer others to do so as well.

The psychological aspect of sales is just as important as all the other pieces of the puzzle.  You have to be positive and upbeat to start with – everyday.  You have to be able to quickly recognize what type of personality style your clients have as well.  Are they analytical, logical, drivers, ambiables or a combination of a few?  It is imperative to know how to speak with people in their “personality” style language.  The quicker you do this, the more sales you will achieve and as a result, more success you will attain.

Professionalism encompasses so many aspects of how to conduct yourself in sales situations.  Punctuality, dress, language, conversations, listening, knowing your business, and respect are just a few.  Take professionalism seriously and your business will prosper.

Lastly, persistence and determination are critical to success.  Many people get caught up in the latest and greatest sales fad, technology or tool and stray from the tried and true relationship building aspects of sales.  Working by referral, adding new people into your database and providing them more value will put you on the pathway to success.

Embrace the Eight P’s and you will enjoy success in sales for years to come.  Get it?  Got it?  Good!

Now, go sell something!

What makes a TRUE leader?

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It is one of the most debated questions amongst business owners, community groups, and associations.  There is no exact answer, but there are a lot of opinions and there are a lot of questions surrounding this topic. 

Are leaders made or born?  Is there a “ladder” one must climb to reach the top and if so, does each rung need to be touched?  Are there those who just show up, participate in activities and deserve to be the leader because of tenure or can one be recognized for achievement, ability and knowhow and be placed into a leadership role ahead of others who have “played” the game?

One of the best characteristics of a leader is charisma.  Are people attracted to and want to learn from an individual because of how they carry themselves?  When they enter a room do they command respect and recognition from others?  Do people seek them out and ask their opinion both privately and publicly?  Are they confident and approach others easily and vice versa?  Are they warm and welcoming?  Do they smile easily and genuinely?  Do they express empathy and convey understanding?  Do they dress and play the part of a leader?  If so, this person is on their way to leadership.

Do they have a rolodex of other leaders?  Do they know the owners of other companies that are not only local but national in scope?  Do they have the ear of these professionals because of the respect they earned on the streets?  Are they actively involved in their business as an owner who has been through tough times and pulled themselves up by the bootstraps and in turn inspired others to do the same or did they just go through the motions and accept what others told them to do?  If so, this person is on the way to leadership.

Do they accept and embrace change and look for another way of approaching how things are done?  Do they do the same thing others have done because that’s the way it has always been done and always should be done or do they break the mold?  Are they satisfied with the status quo or are they looking for ways to build a better mouse trap or continuously improve upon systems and processes?  Are they able to analyze situations to know when to say when and forge a new path or direction and have others follow them in the new direction?  Are they quick to adapt to different situations calmly yet quickly?  If so, they are on their way to leadership.

Are they able to communicate well with others across multiple platforms as well as across generations?  Do they know how to “speak” with people on their level and motivate them to accomplish more than they would have had they not met this person?  Is their communication concise, responsive and consistent? Are they comfortable speaking one on one as well as in front of groups publicly?  Are they often asked to participate in events, conferences or outings because of their ability to communicate with others and how they are perceived?  If so, they are on their way to leadership.

Do they accept accountability and encourage others to be held accountable?  Do they expect the best from themselves and motivate others to expect the best from themselves?  Do they praise publicly, early and often?  Do they correct others privately and help set a corrective course of action for improvement in performance?  If so, this person is on their way to leadership.

Are their time management skills in place?  Do they have the ability to juggle many balls while accomplishing them all well?  Can they delegate well to others and get the most out of them so that the job is done properly, every time?  Do they allocate the appropriate amount of time for others and empower them do the same?  If so, they are on their way to leadership.

Are they actively involved in all aspects of their business?  Do they attend conferences, seminars and trainings both locally and nationally?  Are they often asked to be a speaker at these events?  Are they involved in their association and have they been involved with it on multiple levels?  Do they have several revenue streams within their business which gives them a broader perspective on the business or is their approach to the business more narrowly focused?  Are they considered to be great networkers?  If these qualities are possessed by someone, they are on the path to leadership.

Are they able to clearly state their vision?  Is their vision clear and concise?  Is it one that inspires others to follow and want to be a part of as well?  Is part of their vision and mission to refer easily and be open to receiving referrals as well?  Do they share their knowledge, skills and abilities with others freely and openly?  If so, leadership is in this person’s future.

Obviously, it is difficult to find someone who possesses all of these qualities and this person should be embraced and accepted into leadership without reservation.  In addition, others may possess some or many of these characteristics but not all and should be given consideration for lesser leadership roles until they develop the qualities necessary for leadership positions.  Get it?  Got it?  Good!

Now, go lead someone!

What’s going on in our crazy market?

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What a great event – the broker owner conference in Denver – turned out to be for all of those who attended.  The networking was excellent as always but it was the content of all of the sessions that had the most impact on us.  Michael Abrashoff delivered the key note address on leading your company.  Many of us are coming out of the survival mode and into the “new normal” economy so his message on leadership was very timely.  Each of the breakout sessions covered aspects that are relative to our industry today.  Topics included:  how to take advantage of the market we are experiencing, how to increase your exposure on the internet as well as marketing ideas to help you generate more business.

It is important to attend events such as these to get an understanding of what other agents and brokers are experiencing today, to hear what industry experts are forecasting for our market going forward and to get tips on making you a better agent to become a more professional business person.

Here are a few ideas that were discussed:

· Banks have only released 30% of their inventory up to this point

· Short sales on average are sold at 15% discount – foreclosures are sold at a 35% discount so banks are going to adapt and begin to accept more short sales and are even considering principal reductions on loans of 10% because they will save money in the end

· Interest rates are going remain at this level for several more months

· The job market is stabilizing

· The US Dollar is stabilizing

· The bulk of the Stimulus money is being released in 2010-2011

· There should be 5.5 million home sales in 2010 – 5.2 to 5.3 million in 2011

· 14.75 million houses are underwater – 9.1 million have negative equity of 20% and 4.1 million are have negative equity of 50%

· Foreclosures will continue through 2012 and will begin to slow in 2013

· 70% of all loans are being handled by 4 banks

· 1.7 million GSE loans are 60+ days past due

· Government agencies hold almost half of all REO inventory

· Strategic defaults may have peaked

· Chase is no longer doing short sales so be sure to let your clients know!

· Foreclosures accounted for 31% of Q1 sales – distressed properties accounted for over 50% of all sales

· Investors make up 20% of the market today and will represent 50% over the next 3 years, so it’s time to get educated on working with them to capture this piece of our market

So what do you think the moral of the convention was for most of us?  Get busy understanding distressed properties, how to handle short sales, and the options sellers have going forward.  Get it?  Got it?  Good!

Is the sky falling?

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Which way is up? 
There is more confusing news about the real estate market today in the
media, on social networking sites and in reports than ever before.  As many of you know, I am active in social
media and am a member of many groups on Linkedin and read postings by others on
Facebook and Twitter among other sites and no one seems to agree about the
market.  There are questions about when
and if foreclosures are going to hit the market – some say it will be a tsunami
and others not.  Some say that in regards
to prices we are going to have a double dip yet the major indexes say prices in
almost all the major markets have increased month over month and year over year
since May.  News on interest rates is
that rates are going to rise yet they continue to go down and they are at all
time lows.  It is no wonder that
consumers are confused about what to do as many Realtors have such differing
opinions on which way the market is heading.

 As a real estate
practitioner in Northern Virginia involved in the resale market with our team,
the Results Realty Group, new home sales with our Assured Sales & Assured
Lease programs, property management, mastermind groups that discuss
foreclosures and short sales, and lastly, one on ones with our highly
productive Realtors, we believe we have a robust real estate market in our
area.  Houses are selling when they are
in excellent condition, they are properly staged, offer a good location and
they are priced correctly.  We continue
to have a strong buyer base here because of historically low rates, affordable
prices but most of all they are attracted to our area for the jobs.   We have one of the lowest unemployment rates
in the country – people and companies continue to come to our area. 

There should be no Chicken Little sightings in Northern
Virginia when it comes to real estate. 
Agents who are active in the business on a daily basis, finding the
opportunities for both buyers and sellers, attending trainings to educate
themselves so they can educate their clients, and honing their craft are
experiencing their best years ever.  As
is the case in all aspects of life, when you have a positive attitude along
with a can do attitude you are more likely to get the results you are looking
for than not.  Selecting the right
Realtor today is more important now than ever before when you or someone you
know is looking to buy or sell a house.  Be
sure the right choice is made.  Get
it?  Got it?  Good! 

Now, go sell something!