Demand Success Today

As you know, RE/MAX officials were in town yesterday. 
Here is what was shared!  Click on the link for the presentation.

Demand
Success Today

 

The Economy –

Right now our recovery is considered to be a jobless
recovery because we continue to lose jobs yet; the economy is pulling out of
the recession without creating jobs. The nation’s jobless rate won’t be back to
4.5 % until 2014.

 

Most companies have cut back and will not rehire people they
let go.  The car business most definitely won’t hire their people back –
everything is cheaper in China and a lot of production is being exported there.

 

Housing will have a hard time helping economy get out of
recession because new home sales have plummeted so far down.

 

America is responsible for 27 % of the world’s GNP China is
7% within 30 years China will lead world in production.

 

Foreclosures –

Build your resume, contact the right people and give right
presentation to get REO business

 

There are 3.5 million foreclosure filings per year expected
in 2009 and 2010

 

25 % of homeowners with a mortgage are underwater

 

A huge number of commercial loan maturities are coming due
in 2011 and 2012 which will put pressure on this sector.

 

Savings rate is 7 % today as a result of people’s fear over
job loss, their property values being down, and they can’t use their house as a
piggy bank anymore plus their 401K’s are down so consumers have become less
likely to spend.

 

You can’t use yesterday’s business methods to make money in
today’s market and expect to be in business tomorrow.

 

Number of Realtors –

800,000 in 2000

1,400,000 in 2006

1,100,000 in 2009

Need 900,000 for more agents to be successful

 

LIFO last in first out is a great rule for real estate when
referring to Realtors

 

9.7 million Distressed properties right now,  4.7
million will sell over the next few years – many will renegotiate to stay in
their properties.

 

RE/MAX has 6 % of agent total and handles 26 to 28 % of REO
sales

 

Systemized and standardized process for short sales is
expected to be announced within 2 business days.  This is coming from the
government and discussions with Liniger.

 

NAR has a new designation to handle short sales – SFR. 
RE/MAX agents can get discount on Mainstreet – contact me for details

 

Rebuild USA 203k specialists

 

There is a new foreclosure tab on remax.com.  Don’t
forget to register as well as update your profiles email address, education,
designation, specialties to get leads.  You must have a designation to
receive leads for short sales and foreclosures – don’t delay, do it today!

 

Know your market and its dynamics –

 

Our market is predominantly 1st time buyers and
investors  – get into these business arenas.

 

Generations –

Baby boomers 3 more moves downsizing selling buying selling
smaller house moving in with their kids or family members

 

Generation X –

50 % not married yet and most have no kids.  They are
just now beginning to buy houses skeptical but loyal

 

Millennials –

Very different on line, no high pressure, knowledgeable,
instant everything

 

 

When dealing with online leads, have the shot gun approach –
send out response to 5 agents and the first to respond gets the lead.

 

80 % of Americans have nothing to retire on assisted living
or nursing homes or moving in with family

 

Social media will take you to the next level take pictures
of clients after settlement do portraits get busy getting involved with it
today – don’t delay it is not going away.

 

The crowd was enthused – you should be too!  Get
it?  Got it?  Good!

 

BrettandDave

 

Breakfast with Dave Liniger and Krisi Graning

The purpose
of the breakfast was to encourage open dialogue on our region to take back to
policy leaders. Looking to get pulse on market to show congressman and
governors what is happening in the trenches. 
According to Dave, NAR has lost credibility with the government. 


BreakfastDST

 

One agent
has 11 properties under contract and all have appraisal issues.

 

Inventory
levels are low. Foreclosure process has been slowed by Obama’s policies on
occupancy rules and how people who are living in properties are treated.  If a tenant can produce a lease, they can
stay in the property until the lease term ends. 
Issues are – who gets the rent and how can the lease they produce be
validated – this is a bad policy people!

 

The media
still creates problems by sending mixed messages to viewers which continues to
wan consumer confidence on all levels.

 

Appraisers
don’t understand market and understand reality of our pricing and trends.  It appears that too many are under qualified,
unprofessional and unfamiliar with areas they are appraising.

 

Under
$400,000.00 market is strong – upwards of 18 contracts on houses.

 

HVCC has
lead to incompetent people appraising our property resulting in low appraisals

 

All real
estate is local agents and appraisers need to be local.

 

Agent
quality is low with REO’s across the board agent professionalism and ethics is
not up to par with what the consumer demands.

 

Take new HUD
1 to your asset managers for a training session to build better relationships
and get more assets to sell.

 

No FHA or VA
contracts has hurt many first time home buyers trying to take advantage on
$8,000.00 tax credit.

 

Extension of
unemployment benefits was to be voted on last night the first time tax credit
may be attached to that bill – stay tuned. 
Tax credit extension would be the tiered down version.

 

Get up to
speed with the market, understand its challenges and become a success – Get
it?  Got it?  Good!

 

Now, go sell
something!

Business Planning Retreat

A great time was had by all! 
Our weekend at the Hyatt in Cambridge, MD started off with golf and spa
treatments.  The course offered beautiful
views, challenging holes, and plenty of opportunities to talk trash!  The spa offered hot stone massages, Swedish
massages, facials, and sauna/steam showers. 
It was an appropriate way to get everyone in the right frame of mind to
take their business to the next level. 

DSCN0830


The theme of this year’s business planning was Around the
World.  We started off in our RE/MAX Hot
Air Balloons in Middleburg, VA where we visualized our trip (our
businesses).  We had to determine our
course of action for our trip going forward by first reviewing where we had
come from in 2009.  We analyzed what our
key performance indicators are for 2010 and how we will measure success.  Additionally, we set short term and long
range goals to set our course for success.

Our next stop was a crash landing in Greenland where we were
kidnapped and had to participate in a dog sled race to get our balloon
back.  In Greenland, we had to determine
how to problem solve our way out of the mess we were in (short sales,
unprofessional agents, foreclosures, etc), think strategically on how we were
going to get ourselves out of these situations and continue to set our course
for success by reviewing our “why” of being in business.

Luckily, we were able to get our balloon back and get back
in the air to look at our business from a higher altitude!  But, guess what?  We got blown off course and crashed landed in
a boat in Luxor, Egypt where we had to navigate the Nile 350 miles to get our
balloon repaired.  We were on our way to
accomplishing this by looking for new opportunities available to us and how to
build upon them and grow them and ask ourselves if we have currently taken
advantage of them in today’s market when we were arrested!  We had to analyze our negotiating skills and
how to improve upon them based upon challenges we faced as well as realize we
need to have contingency plans in place to handle each situation we encounter
in our market.  As we handled these
challenges, we were able to move on!

DSCN0886                 DSCN0908

Believing we were going to sail smoothly home – we once
again experienced a challenge – another crash as our balloon got a tear from
high altitudes and we landed on the Great Wall of China.  While in China, we had to improve our
communication skills – listening, being the first order of business in
developing better communication skills. 
Then we moved on to looking at non verbal communication, tonality and
other forms of communication others use to communicate.  We considered the options available to
redefine our business and reinvent ourselves in the process.  As markets change so must we.  Our balloon is repaired and we are back in
flight and on our way to success again!

I think you know what happens, we have an emergency
landing.  This time in Pago Pago!  It is an extremely poor island where it was
time to reflect on what is important to us – our value system.  We reviewed what is important to us today and
what values are going to carry us to where we want to be in the future.  Self analysis is a strategy to help us grow
both personally and professionally!  This
also incorporated accepting change in ourselves, our business, and why this is a
critical piece to success in any endeavor we undertake.

On the last leg of our trip home, we realized at our high
altitude that flying high isn’t the only key to success.  We must have the right attitude to get us
there.  It is important to manage our thoughts
and actions to develop the right habits to lead us to a successful career! 

Finally, we were home with a our travel log that included
short term goals, long term goals and an action plan to get us to success.  We set a meeting to discuss our trip and
review our progress in 90 days.  Our
travel logs were shared and we are going to hold others accountable to their
success in our next meeting! 

We discussed the importance of getting away, putting things
in writing, and being held accountable to our objectives we can attain much
greater success.  We hope that you will
join us on our next journey because by failing to plan, you are planning to
fail.  Get it?  Got it? 
Good!

Now, go sell something!

IMG_2721

DSCN0836 

DSCN0902

Here We Go Again

Scott's Camera 006

Platinum Club October

Asset managers are checking up on their listers to make sure
properties are being marketed properly. 
If you are listing foreclosure properties – tighten up if you want to
keep your listings!

2nd quarter is when the next “wave” of foreclosures
is to be released – here we go again!

3 month moratorium on foreclosures is more here say yet
properties are going to foreclosure in November.  Apparently, the banks are going to do away
“stages” of appraisals.

Ekko works well with short sales, S5 is OK –nothing above
the others, and Advanced Title gets them done.

Banks have stacks of short sales to work through – Bryan had
4 approved in the last week – 1 in 70 days, 2 in 3 to 4 months and 1 in 6
months.  It seems as if the Asset Manager
makes all of the difference not necessarily the bank. 

Take short sale listings to generate buyer s leads and close
them because chances are your listing
won’t close.  Short sales make the agents look incompetent.

Buyers are indecisive and becoming unrealistic – coming up
with excessive home inspection lists.

Upper bracket prices continue to fall and those buyers are
more cautious.  People are backing out of
remodeling contracts as well – the economy is their excuse of why they aren’t
moving forward.  National news and lack
of details about our market is making them uncomfortable in both scenarios.

Are there more listings coming on the market?  The answer is yes – inventory is low put it
on now.

Builder activity is on the rise.  One builder, Van Metre is up 40% and is
raising their prices – NVR posted a 50%
increase over last year’s sales.

We all believe Tax Credit for first time buyers will be
extended.  As previously discussed each
real estate transaction “touches” 29 different industries and generates $62,000
in capital to the economy.

We also believe that the loan limit will go back to $625,500
and remain there as prices are lower – we all have had fewer sales above the
$700,000 price range.  Also, the
government may want to diminish their exposure and not raise it back up.

Condo associations need to be proactive to get their
properties approved FHA after November 2, 2009 – no one has heard of any
associations taking the lead.  Be sure to
make sure the project is in process of approval prior to finalizing
contacts.  No more spot approvals with
FHA after this date.  Here
are the outlines of the program
– lots of questions are still
unanswered.  Will this kill the condo
market?

What does all of this mean? 
Professional Realtors are more valuable and more needed today more than
ever.  Get it?  Got it? 
Good!

Now, go sell something!

Scott's Camera 007                     Scott's Camera 008

Great Opportunities and Great Information!!

Scott's Camera 005

Quick update on upcoming important company functions:  www.demandsuccesstoday.com
is on October 28 from 9 – 12 – register today, Continuing Education with Champion Title on the new HUD-1 from 2
-4 at the Sully District offices on 0ctober 28th, and short sale training with America’s Home Rescue from 9 -12
in Chantilly.  Also, there is still time
to get in on our Annual Business Planning this weekend.

Due diligence in dealing with our transactions is more
important today than ever before. 
Recently we have had experiences with leased propane tanks, fuels and HOA
docs.  Read, and reread the contract to
know what to say when situations arise. 
Knowledge is power people!!

What do you need to do when dealing with short sales and the
HUD-1’s?  Add 9 months of taxes, and HOA
dues to whatever is past due currently so there are no surprises to the
noteholder when the approved HUD is 6 – 9 months old and the numbers don’t add
up.  Are short sales getting easier?  We don’t think so!

      Scott's Camera 003                       Scott's Camera 002

Jason Smith

Foreclosure inventory is down

Sales are getting easier – when dealing with arms length transactions

Houses are staying on the market a little longer so urgency
isn’t as great

Inventory is stable over the last few months but still way
down from the beginning of the year, month’s supply is consistent, rental
market is tight right now as well.

Appraisals continue to be issues on all fronts.  We have experiences with appraisers who are
inexperienced and bring in numbers way too high or way too low – it continues
to be a crap shoot.

Pat
Cunningham

Condo sales – starting November 2nd – approved
condo rules are going to change.  Spot
approvals are going to more difficult

Rates have inched up about ¼ – ½ point over the last few
weeks – they will continue to rise

Flipping rules may come into play with conventional loans
when they require Private Mortgage Insurance. 
Be careful if you are selling a flip.

Wall Street Journal ad between NAHB and NAR was published
today.  The ad showed that $28 billion to
the economy because of jobs.  An average home
sale generates $62,000 and involves 29 different industries are effected by
each sale.  It is good for continuing
momentum

Homepath financing is for Fannie Mae owned properties and is
offering special financing options. 
Conventional loans, 5% down, no MI, no appraisal, rates are only ¼ to ½
% higher, investors can get in for 15% down and there are no income
requirements plus credit score only needs to be above 660.  Check out www.homepath.com.

No new news on keeping the loan amounts at $729,750 after
December 31st.

Agents shared details on various properties throughout the
area as well as buyers they are working with to try and get them into homes
prior to going on the market.

Our next exchanges will include a commercial agent and
appraiser to keep us up to speed on those aspects of our industry.  Keep learning so you keep earning.  Get it? 
Got it?  Good!

Now, go sell something!

It’s time to invest!

What was the first thought that came into your mind?  Was it about the stock market?  Or was it about buying investment properties?   Perhaps you thought it was getting others to invest in the previous two areas of opportunities.  Now, what do you believe this statement is about?  What does invest mean?  Dictionary.com says it means :

1.

To put (money) to use, by purchase or expenditure, in something offering potential profitable returns, as interest, income, or appreciation in value.

 

2.

To use (money), as in accumulating something: to invest large sums in books or education.

 

3.

To use, give, or devote (time, talent, etc.), as for a purpose or to achieve something: He invested a lot of time in growing himself personally and professionally.

 Well, taking this into account, my intention was that it is time to invest in yourself and your business.  The top companies in the world invest in their people – you should invest in you as well!  If companies do it, why don’t you?

The real estate market, the economy and your business are not out of the woods yet.  Yes, some aspects of the economy are stabilizing but we have a long way to go – foreclosure numbers, default rates, and unemployment rates (although reported to have slowed) continue to rise.  Therefore, now is the time to invest in your business.  It has become obvious to me that during times like these, many agents get too involved “in” their business when in fact, if they want their business to soar to the next level, they should get involved working “on” their business – today.  It is time to reflect on what is working and what isn’t – where are trends in our area heading – who are key players in the industry and what are they doing – more importantly, what are you doing?  Are you attending training?  If not, why not.  If you are involved in foreclosures, are you going to conferences out of town to meet new people, strategize and get new accounts?  If not, why not?  If you are doing short sales, are you meeting with experts who are experiencing success in the business locally and nationally to learn more about trends and what they are doing to be successful?  If not, why not?  Are you taking advantage of the free educational opportunities your association is making available to you?  If not, why not?  Are you taking advantage of one on one opportunities with your broker, fellow agents or a coaching program to help get through the market we are in and are going to encounter?  Again, if not, why not?

These examples could go on for some time.  It is my belief that you need to get out of your house, get out from behind your desk and educate yourself or else you will be left behind – doing what you’ve always done and get the results you’ve always gotten will not propel you to success.  Times change, programs change, economies fluctuate and you need to as well if you want to succeed now and in the future. 

It is important not to confuse activity with accomplishment.  Determine what you want to accomplish and what you need to do to achieve what you set out to do.  If you get willowed in the mire of day to day activities, put blinders on to what is happening around you,  get out and network with others, and ask yourself how can you accomplish “big” things in your life.  It is my opinion you need to invest in you today.  Attend trainings, get coaching, attend business planning (it’s not too late), get a designation, attend mastermind sessions, go to real estate information exchanges.  Take the time to get educated – NOW!  Get it?  Got it?  Good!

Now go sell something!

How disappointing!

It is disappointing to be ranked so low in the consumer’s mind as to how we handle ourselves relative to others in sales.  What I am referencing is most consumers rank Realtors very close to where they rank new and used car sales people.  In the past month or so I have shopped for a car for myself, helped our company vice president and lastly, my mother.  We have looked on used car lots as well as luxury new car lots.  We explained our situations – my lease ends at the end of October, one car broke down, and one car was totaled – basically, we all had an immediate need.  How many have followed up when we told them exactly what we were looking for in our next vehicle and what our situations were  – um – zero.  How many wanted to sell us something we didn’t want – um – all of them except 2 out of about 20.  How many were obnoxious, overbearing, unprofessional, made us feel uncomfortable and made it difficult for us to leave the lot – um – again, all except 2 out of about 20.  As a result of this experience, I asked myself, “why was this case”.  How can Realtors be compared with sales people who exemplified this behavior?  Do we truly have that many untrained, unprofessional agents in our industry? 

Let’s examine what we had done with our shopping experience and how others in our industry can improve if they exemplify the used car sales approach.  In our journey, we had tried to make their job as easy as possible as I don’t like to be sold.  We had partially qualified ourselves for them by telling why we were there, what we were looking for in the next vehicle, how much we wanted to spend, how soon we needed our cars, and that we had our financing lined up.  So, what was the problem?  First, I don’t believe they have been trained in professional sales.  The biggest problem was, they didn’t listen – they were too concerned about making a sale.  Had we not prequalified ourselves, I don’t believe they could have done it for themselves because they weren’t focused on us – only the sale.  They didn’t ask any follow questions like, what kind of cars we had – what we liked about them – what we were looking for in the next car and why – had we looked anywhere else – what did we find there and what did we like or not like.  They were too busy talking and definitely didn’t ask us any questions to build rapport.   The only way they knew what I did was because I gave them my card to follow up with me.  Guess what?  They still didn’t follow up with me – at all. 

As professionals we know the basics of sales which are:  people buy from those they know, like and trust.  If they are so busy talking about what we don’t want to hear, how can this chain of events happen?  The agendas we followed was not ours but theirs – they wanted the sale.  They believe that they had to speak the whole time to be in control when the fact is, those who ask questions are the ones in control. 

Their technique of closing was so far off it was laughable.  We wouldn’t buy from anyone who subscribes to the ABC theory of sales…Always Be Closing.  Don’t close until you know enough about your client so you can help them make the right decision.  Closing is an evolution not a forced approach to sales.

In order to build trust, demonstrate your knowledge of your business.  Listen, clarify, then respond to clients don’t oversell and force yourself on others.  Dress the part, be polite, and communicate effectively.  These skills will result in sales, I assure you.

So the moral of the story is – if you want to attain more sales as well as referrals you need to differentiate yourself from other sales people.  Start by prequalifying effectively, ask lots of questions and then, listen to the answers – don’t tell.  Don’t sell from an empty wallet you are looking to fill, put their needs/agenda ahead of yours, people can sense this immediately.  Build rapport by learning about them and what their needs are.  Have an effective follow up system in place to show your professionalism.  Act, look, and communicate the role of a professional.  Close at the appropriate time in the process – not continuously – it turns people off.  If you follow these little techniques, you will attain the success you desire.  Let’s elevate ourselves from the lower ranks of sales people!  Get it?  Got it?  Good!

Now, go sell something!

Walter Bond, Kathy O’Neal…what a great day of speakers!

Walter bond
Today’s speaker at our exclusive business development group
Accelerent was Walter Bond who amazed the crowd with his personality, flair and common business sense to help us “sell” our way out of the recession.  Here are a few of his tips:  strive to be the top in your business – whatever your chosen field may be; connect with people – don’t just communicate; execute the principals of the of your business – be fundamentally sound; differentiate yourself and most importantly be likable!  As we know, people buy from people they know, like and trust.  They know you by branding yourself, they like you because they you “connect”/build rapport with them and the trust you through your knowledge, skill and expertise you display in your business.  Also, to be the best, carve out your niche!

Our Top Producer Panelist in today’s training was Kathy O’NealKathyo
 

Team of 3 plus Kathy

Unlicensed assistant – visual tours, schedules appointments, client coordinator

Part time IT guy – does videos, website design, blogs

Husband – writes blog, works internet stuff, but they don’t do twitter or Facebook or Linkedin

Kathy – the face of the team

Videos are of testimonials, interview Kathy, buyer process – people know you before you meet them – think about

Incorporate video into your program – financing, seeing properties, writing contracts, settlement, foreclosures, short sales

Now send video emails introducing yourself

Keep up with past clients – know market area – newsletter – client party (cut down Christmas Trees nic– birthday cakes about

Podbeam – podcasts that are hosted by another

Blog a few times a week – interview clients, potential buyers

Thoughts on the market – under $400 is hot – people who would put house on the market don’t know they can sell their house in today’s market – not enough houses for sale – lots of buyers out there – not enough move up buyers – not too many appraisal problems – think prices are coming down, sell now – foreclosures are coming so not sure how this will affect values, we know where it is now – appreciate agents who answer phones

Keys to success – do the basics, good service, keep up with your client base, figure out what you do well and keep doing it, keep up with the market, connect with people, be a real person, look for new trends. 

Here are the numbers!

 Active inventory is down 56% from 2008 with onluy 5,850 active listings on the market. The vacancy rate is holding steady at 28% of the market leaving us with a 1.7 months supply of houses for sale.

The rental market has a 1.9 month supply of rentals on the market with 3,004 properties currently for rent.

Now, go sell something!

 

Another GREAT Real Estate Information Exchange last night!

It was a terrific turnout – we had 25 people attend.  Thanks for all who came out to be educated!  Here is a synopsis of what was discussed.  Hope to see more of you next time!

Scott MacDonald:

Market Update…builders have said activity and contracts have been up. The summer lull is gone and activity is picking up. Great news for us! In talking to other agents, they are saying the same thing. It’s important to tell your sellers that the market is still price sensitive. There is still activity, but it’s important to get the house priced right to get it sold quickly.  We are still seeing multiple contracts. BPO’s are picking up as well.

Leslie Wish – SunTrust:

Rates continue to be great.  Phones are ringing off the hook with buyers wanting to close by the end of the November.  It is better to close prior to Thanksgiving and not wait.

Lenders are skittish on condo loans because of litigation against the condo association – any litigation no matter who is suing whom, no conventional loans – FHA loans will allow “some” litigation.  Lender questionnaire will bring to light lawsuits and delinquencies.

Scott Mayhew – NuStart Credit Restoration:

Pull credit report to see what issues are with the report.  Typical problem takes 90-120 days.  Process starts with letter writing – it is a must.  The letter must state name, address, loan number, discrepancy, timeframe to correct and expectations of resolution.  Only way to dispute discrepancy is to state the loan is not late or not mine – this is the only way to get it removed.  The letter must be signed in blue ink.  Lender has thirty days to respond with exact amount owed and details of delinquencies.  Consumer must write letter – not company.  Proof of accuracy letter must be returned by lender – if not, need to send another letter stating they have violated.  Paying off credit cards end of month doesn’t give you a great credit score.  Inaccurate data CAN be removed from credit report.  If your mortgage is 30 days late, it will show up on your credit score is 100 point deduction, it used to be 40 points.  Credit rating goes from M1 to M9.  M5 is about a 40 point hit.  Tell short sale clients to have bank say paid in full as agreed and not to rate short sale higher than an M3.  Fee to correct is $395 one person $495 for two.

Keith Barrett – Champion Title

New HUD form is coming out January 1st – you have to be prepared if you want to keep clients happy.  Get caught up on all the changes at 4900 StoneCroft Blvd., Chantilly, VA 20151 on October 28 from 2pm to 4pm.

What in the world is going on in Northern VA real estate?

Well, we are starting to see more activity lately at our listings, more homes are selling than are going on the market reducing our inventory levels, builders are seeing increased activity and sales as well, rates continue to fall, prices are remaining stable, and now is a fantastic time to be in the Northern Virginia real estate market whether buying or selling.  What else could contribute to our market?  We continue to have low levels of unemployment locally compared to the rest of the country – which is a huge positive for us.  As a matter of fact, Virginia was ranked number 1 for an example of how employment has affected their total real estate market.

 

What is on our forefront?  There continues to be the threat of more foreclosures coming on the market but we haven’t seen it here in our area yet.  We have the impending expiration of the First Time Buyer $8,000 Tax Credit or do we?  In speaking with the Former Governor, now Senator, Mark Warner, he indicated he was voting to extend the credit.  Many others in support of this initiative believe this will keep momentum moving in a positive direction with our recovery from the recession as the Housing Market has such a large impact on our national economy.  Interest rates may creep up – but they are so low, they have to increase at some point.  Basically, as stated above, we are fortunate we have the fundamentals to be one of the top real estate markets in the country.