Scott’s Market Minute May 20, 2013
Scott MacDonald offers current market stats and information in his Market Minute for Northern Virginia. Inventory has increased slightly offering buyers a little more to look at. Home Buyers and Sellers will want to keep in mind that by closing before July 1, 2013 Grantor’s Tax increase you will save money. There’s still time to get your home listed for sale and sold! Call Scott MacDonald (703) 652-5777
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Why is the Northern Virginia Real Estate Market slowing down?
Scott MacDonald of RE/MAX Gateway offers valuable information and insight in his Northern Virginia Real Estate Market Minute as to why the Spring 2013 Northern Virginia Housing Market is slowing down just a little. Homes priced competitvely are selling fast! Home Buyers and Sellers will want to save money by closing before July 1, 2013 Grantor’s Tax increase. There’s still time to get your home listed for sale! Call Scott MacDonald (703) 652-5777
Why you should close on your home before July 1, 2013 Grantor’s Tax Increase
Big changes are on the forefront for Virginia real estate if you are selling or buying a house. The state Grantor’s Tax is going from $1.00 per thousand to $2.50 per thousand of the sales price or tax assessed value, whichever is higher on July 1, 2013. Here is the impact – on a sales price of $500,000 the fee is going to go from $500 to $1,250
The tax is typically paid by the seller in a resale scenario and the builder usually passes this fee on to the buyer. As a result, it has become a nominal cost associated with selling to one of a greater impact and one that will potentially bring attention to people on both sides of the table. In other states, including Maryland, this tax is absorbed by the seller with first time buyers, is split in most cases but in the end, is a negotiable item between the seller and buyer. It will be interesting to see if this becomes the case in Virginia. Our fee is less than Maryland’s but is still is significant enough to take notice and pay attention to what will be the impact as it becomes implemented and the prices increase.
The change goes into effect on July 1st so you will want to plan accordingly. This year July 1st falls on a Monday so in order to avoid paying the tax, we are encouraging our clients to close by the 26th of June. This will ensure the property gets recorded at the courthouse prior to the Friday rush that many title companies are expecting and save your money.
Many of you may recall that back in January of 2008, this tax went up 5 times so the same scenario listed above would have resulted in a $2,500 tax on the sale of properties in Virginia. Therefore, this increase is not as significant. In March of that year the Supreme Court of Virginia repealed the tax stating a transportation authority NVTA did not have the right to levy taxes.
The additional fees today are also put in place to cover costs associated with transportation initiatives and road improvements in Northern Virginia and Hampton Roads in an effort to ease the congestion in these regions. As such, this tax is only applicable to these regions. Let’s see some results, please.
How Do Top Producers Create Their Success? REMAX Gateway Round Table May 2013
The Spring Real Estate Market has really taken off and as we enter the month of May, rounding out the 2nd Quarter of 2013, it’s a great time to look at the some of the best practices of a few of RE/MAX Gateway’s Top Producers and what they attribute to their success, year after year.
RE/MAX Gateway Top Producer Panel MAY 2013 Share Successful Business Techniques
Our May 2013 Top Producer Panel consisted of Joe Doman, Bryan Felder, and Kathy Worek. These seasoned Agents offered some of their most trusted techniques and business strategies.
Where is your business coming from?
Sphere, internet leads, referrals. 25 closed and pendings, just wrote 4.5 million in contracts and working them out.
4/4/4 – shoot for the numbers: reach out to sphere/internet leads/people in process, in this order
I just got off a call and overall the stats from across the country are: 38% sphere, 19% direct mail, 15% open houses and geo marketing, 9% expired(s) – especially older ones, 7% online and 12% other – like fsbo’s, sign calls and relocation(s). That does actually add up to 100.
What is different from last year to this year?
We have our WordPress site up and running, more focus, getting more things done. We are tracking of our numbers.
What has made the biggest difference in your business?
I think a combination of things like positive affirmations every morning; coaching is critical to my success – keeps me focused and on target, mindset & attitude my positive/upbeat, an assistant and time blocking. I color code the calendar to see how I am spending my time.
What is the best piece of advice would you give the agents today?
WordPress is the wave of the future, conveying useful information via blogs and/or video and social media, and setting appropriate expectations for you clients. Google + is a good tie in with SM. More than anything: believe in yourself. Be unique.
What do you wish you started doing sooner rather than later?
Real Estate in general. Direct mail, I’m really particular about things that I do so it takes me forever to roll something out. I wish I had done it sooner who knows though, maybe now was the right time. (EDDM)
What do you wish you didn’t do if you had to do it all over again?
Most of the things I wish I didn’t do have nothing to do with Real Estate. Although, it’s all lead me down the path I’m on today and it’s pretty awesome. A lot of things have made me the person I am now, they’ve built character, made me compassionate, appreciative and made me better in general.
Anything else to add that others should know?
“You can’t grow tomatoes if you plant corn.” When you plant seeds of doubt, worry, fear and failure , that’s exactly what you get. You need to plant seeds of positivity, wealth, abundance, happiness, success, greatness, love and gratitude. Don’t let your mind sabotage you; keep the course. I have been in a position where I didn’t know where my next dollar was coming from and didn’t have one left either. You need to have faith in yourself, believe in yourself and you’ll surprise yourself.
Bryan Felder of The Virginia Realty Group
Where is your business coming from?
Everyone’s business is different – Bryan’s is business to business. Set up 2 databases – one for business and one for clients. This system drives business to your business database from your client database. This will get you referrals from the businesses. Develop this piece of business.
What is different from last year to this year?
Networking with agents outside the area to get referrals for people moving to the area. I attend seminars and set a goal for collecting cards and start to market to them with a quarterly newsletter.
What has made the biggest difference in your business?
Focus on 4 categories and go deeper with database – 37 touch points with them every year.
What is the best piece of advice would you give the agents today?
Leverage your team to gain balance – push leads, do team huddles and meetings consistently, and educate.
Do a “To Do” list every day, then set 3 goals to keep the focus and my time managed. Keep records so you can bench mark your success.
What do you wish you started doing sooner rather than later?
You can make a lot of money. You cannot make a lot of money. You can spend a lot of money. So, you need to track your numbers. Review your P&L and check bank accounts. Do this now – don’t wait.
Is there anything else to add that others should know today?
Don’t grow your team too big. Only bring on the right people at the right time. You’ve got to have fun! Team activities, go out with agents – do stuff outside the office. Pick a niche. Ask your clients, “What one thing could I improve upon that would have made your transaction smoother? What about my staff?” There is always room for improvement and if you don’t ask you won’t know.
Kathy Worek of Kathy Worek Group
Where is your business coming from?
Business is growing through consistency in communicating with sphere – just listed cards, constant contact advertising, company newsletters and post cards. Four times per month is the number of contacts with sphere per month.
What is different from last year to this year?
Focus on sphere – professional marketing – client reviews online. Use WordPress with good content and quality information. List contractors on website and post RBI stats on the site and encourage clients to go to my site. Focus on neighborhoods and zip codes for Trulia and Zillow. Team rhythm is good – not as consistently as Bryan but still good. Take your professionalism to the next level by providing your client your checklists. Use the power of the team to leverage exposure for your clients.
What is the biggest difference in your business?
Consistency in marketing, consistent in processes has added to my business. Getting bigger internet presence and get reviews
Best piece of advice for agents to take in.
Appreciate your clients and let them know. Communicate your understanding of their situation.
What would I have done sooner?
Don’t be afraid to spend money on assistants – it frees up your time and allows you to get in front of clients and new business opportunities. Trust your staff. If you want to get to the next level – you need to hire the assistant. Speaking of assistants, Joe does videos to train his assistants. He tells them to watch the video and ask questions after they are finished.
Get a good database management system in place early and use it to the fullest.
Be firm in your listing agreements and commissions you charge.
Budget – and stick to it! You are running a business.
Anything else to add?
Get in front of people – be positive and optimistic. Network. Be nice to other agents.
Please feel free to contact me scottmacdonald@remax.net or (703) 652-5777 if you would like to attend our next RE/MAX Gateway Top Producer Round Table or if you have any comments or suggestions.
Get it? Got it? Good!
Now, go sell something!
You’re Invited! 8th Annual PUTT A THON and Family Fun Night!
Scott MacDonald, President of RE/MAX Gateway invites you to the 8th Annual PUTT A THON & Family Fun Night! All proceeds benefit Youth For Tomorrow. Please join us Saturday, April 13, 2013 from 2-6pm at our RE/MAX Gateway office in the Brambleton Town Center for this fun-filled time and certain to bring out the kid-at-heart in all of us!
This event is RAIN or SHINE! We’ve got it covered folks!
Just look for the RE/MAX Balloon!
Help us reach our goal http://www.gateway2realestate.com/putt-a-thon
Can’t attend but want to make a difference? Here’s how: http://rismedia.com/2013-04-08/eighth-annual-remax-gateway-putt-a-thon-family-fun-night/
Northern Virginia Real Estate Market Update: Buyers and Agents Scramble to Find Homes
Seller’s needed! Spring 2013 real estate market continues to get hotter as Buyers and Agents search and scramble to find homes. Scott MacDonald offers current Northern Virginia market data and housing statistics. Want to know how this could impact you? Give Scott a call (703) 652-5777 – He’s never too busy to discuss the real estate market! scottymacsblog.com
Cold Weather Isn’t Cooling Down this Real Estate Market… Multiple Offers are HOT!
Scott MacDonald advises again on multiple offers, contract situations, as well as, short sale scenarios in Northern Virginia. As the Spring real estate market starts to heat up, don’t let Buyers grow cold. Read more Seller & Buyer strategies or give Scott a call to discuss (703) 652-5777
High Performance In Real Estate: From Basketball to Business
It’s that time of year again – college basketball’s Final Four time. As you think about the potential winners of this year’s tournament and past winners, the teams that will win or have won in the past are all high performing. This got me thinking, what represents a high performing team and how can this relate to your business?
Here is what I came up with for you to consider:
- High energy – Get rest, exercise and be ready to tackle any challenge that comes your way. Do what it takes to pump yourself up. Read motivational quotes, talk with mentors, rally yourself or do whatever gets you excited to have energy. High energy is contagious.
- Integrity – Always do the right thing for your clients and your team – especially when no one is looking.
- Goal oriented – Each and every team needs to be working towards a common goal or goals to keep them focused. Review with the team on a regular basis and make adjustments quickly and as necessary.
- Happy – Always be positive and optimistic and remember to celebrate achieving your goals. Also, high performing teams have fun and laugh with and at each other to keep the atmosphere light and entertaining.
- Performance driven – The best way to be performance driven is track and measure results of the goals you have set. Depending upon the goal, this can be daily, weekly, monthly or quarterly. I wouldn’t go out any further than quarterly so you can make adjustments to keep you on track.
- Educated – Always be seeking to learn new things about your business, your clients, and other industries that you can take and adapt to your business. Review what was done right or wrong to build upon your accomplishments or learn from mistakes.
- Resilient – They don’t get down easily. Failures are learning experiences and setbacks are temporary. They understand that no is not personal and gets you closer to the next yes.
- Forward thinking – Incorporating strategic planning, careful analysis of trends, and reviewing industry data will enable you to think about the future and make the right decisions for success. Don’t get caught up in what you have now, but project on what you will have one month from now, two, etc. Agents always get hung up on what they have going on now that they often times forget to prospect for the next month, and going forward.
- Opportunistic – They continuously look for opportunities in their fields. In the recent past it was foreclosures, short sales, and working with investors but remembering to work and grow their database is important. Recognition of trends is key.
- Realistic – Remember to never get too high or too low. Set attainable goals, stay the course or make the appropriate adjustments to be on top of your game and focused where you should be spending your time.
- Money driven – They are driven by money but not money focused and they don’t sell from their wallets. They realize by helping others, they too will succeed.
- Accountable – The teams are accountable to each other but most importantly, to themselves. The leader keeps himself accountable through meeting with the team or trusted advisors regularly. The leader needs to set the example.
- Nonconforming – They set the pace and don’t follow, they are leaders and approach things differently from others. Additionally, they look at things from all angles to determine the best course of action.
- Communication – They provide positive feedback and praise in public, constructive criticism in private, face to face meetings, emails, texts and phone calls on consistent basis is critical to achieving great things. Most importantly, you need to be consistent in your communication, i.e. messaging, relevance and timing.
- Enthusiasm – Be ready to tackle any challenge and celebrate your success. As Ralph Waldo Emerson said, “Nothing great was ever achieved without enthusiasm”. Be enthusiastic.
Now that you understand a little more about becoming a high performance individual or team, incorporate these philosophies and make things
happen. Get it? Got it? Good!
Now, go sell something!
Multiple Offer Strategies In Real Estate: Help For Home Buyers
It is no surprise that we are seeing more and more multiple contract situations. The perfect storm is in place – interest rates are at 65 year lows, inventory levels are at extremely low levels, and there are buyers anxious to get into houses. Affordability levels are near all-time highs as well so it only makes sense that buyers are finding themselves competing to get into a home today.
So, the question is how do you win and get the home your client’s desire?
- Add an escalation clause which allows you to bid up the price above any other offer up to an amount you are comfortable paying. The escalation amount should be an interesting number like $1,150 as most people just do $500 or $1,000 – make your offer stand out.
- Increase your earnest money deposit to show your interest in purchasing the house. If your down payment is 20%, make your deposit 10%. If you are doing FHA, have your deposit equal your down payment of 3.5%. You are going to be putting the money down anyway, why not do this and attract more attention to your offer?
- Have a very short time frame on your home inspection contingency and radon contingency if you choose to have them. Also, consider doing the inspection contingencies for informational purposes only just leaving yourself the opportunity to void if you find something so egregious or beyond what you expected. If you and your agent are confident in the home’s condition, you may want to consider eliminating these contingencies but be extremely cautious when not exercising these contingencies.
- Have a quick settlement date – Ashley Smith with Atlantic Coast Mortgage can close a loan in just 8 days if she has a complete loan application from her clients.
- Additionally, encourage your loan officer to be proactive and call the listing agent and explain the financial arrangements and status of the loan. Pat Cunningham of Home Savings and Trust was one of the first lenders to mention he was doing this for his clients.
- Allow the seller to rent back after closing giving them flexibility on when they need to move or to give them time to find a home.
- Put in a home of choice contingency for the sellers if they have not found a home yet – make the contingency for an extended period of time so they have the opportunity to find the house they really want.
- If you are so bold, you can have the clients waive the appraisal contingency. In order to do this, you need to work in conjunction with your lender and see if they can get a quick turnaround on the appraisal. If so, have the appraisal done in concert with the home inspection contingency and if it doesn’t appraise, you can void based upon the home inspection or on the HOA/condo documents. Not one of my favorite suggestions but it is a strategy you can undertake to help your contract win. Also, if your lender can get a quick turnaround, make the appraisal contingency 5 or 7 days.
- If you are dealing with a home owner and not a bank or investor, have your clients write a letter along with photos explaining why the house is so important to them and the trials and tribulations of their home buying experience. It can sometimes help to pull on the heart strings of the owners.
- You can explain to the listing agent, the highest contract isn’t always the best contract. You need to have the right people in place to consummate the transaction not just someone willing to throw a high number just to get the house to only experience remorse later and back out of the contract.
These tips will help you win more contracts. Consult with the clients and make sure they are comfortable with your recommendations prior to implementing them so they fully understand the repercussions of their actions. Get it? Got it? Good!
Now, go sell something!
Magic Tricks Inspire Leadership and Growth In Northern Virginia and DC Metro Real Estate
In our Vistage meeting this week we had a very dynamic speaker by the name of Andrew Bennett. Andrew has a very interesting background and actually uses magic in his presentations to aid in engaging his audience. He spoke about analyzing your business through the skills magicians use: appear, disappear, and restore. Using slight-of-hand, Andrew evokes concepts: what in your company do you need to take on as a new initiative to grow your business, what do you need to eliminate from your business that is unproductive or preventing growth, and what needs to be fixed – worth keeping, but hasn’t been tweaked to operate at full capacity.
The Magic of Andrew Bennett Blending knowledge of leadership, organizational culture, and mental management with magic.
Key areas we discussed were culture and employee engagement. It all starts at the top and filters down to employees. Look at how you use your words, how you inspire, develop relationships, develop your self-awareness, display your authenticity and utilize discipline; apply the appear/disappear/restore analysis to your business. Let’s look at each of these areas individually.
- WORDS – Researchers say you have 60,000 thoughts a day – 57,000 were thoughts you had the day before. What do you ask yourself so as to drive yourself to be successful? Be intentional in your thoughts and in the questions you ask yourself. To change your thoughts, change your words. Think in terms of, “what I speak is what I create”. Think about what you say to others and more importantly, to yourself.
- INSPIRATION – the definition is “to breathe life into”. Inspiration comes from the inside, so touch what matters to others – help them believe the impossible is possible. As a leader, deliver the power of WOW. Passion and hope come together and become inspiration. Build on emotions and sense of accomplishment. Think about what inspires you about your business? What are you willing to suffer to get what you want? Why is that important to you and why does that matter to others.
- RELATIONSHIPS – Your individual supervisors and the amount of communication they have with your people are critical to employee engagement – know personal things about your people to build trust – recognize other’s mannerisms to determine how can you help them.
- SELF AWARENESS – What we believe is what we see. What do you see? Who fosters these beliefs to encourage you to greatness? How do my beliefs result in how I show up each day? Pay attention to this area – how you show up is critical to the culture you are developing.
- AUTHENTICITY – Transparency and vulnerability are your keys to authenticity. Ground yourself in reality but be hopeful. What are your challenges or struggles and how will you overcome them? Be true to yourself and you will be authentic to others.
- DISCIPLINE – do what I say, it is that easy!
Things to consider as you contemplate these topics:
- What excites you about our organization? Communicate this with others.
- Who are your trusted allies? Seek them out and ask for feedback.
- Where are your blindspots? We all have them and your trusted allies can help guide you through discovering them.
- Deliver your message consistently but paint the picture in different ways to appeal to your team members.
As you move in this direction be passionate about what you do, help make a difference in other’s lives and build something greater than yourself through inspiring others to achieve more. Get it? Got it? Good.
Now, go build something!
Scott's Motivation and Real Estate Market Updates 