best business practices

Staff Sergeant Reminds Us

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Yesterday I was at a meeting for Homes for Heroes and I heard a young Marine speak about his life and how it had changed after being injured in Afghanistan.  His name is Staff Sergeant Joey Jones

Here are some notes I took and wanted to share with others – enjoy:

  • Build a life on purpose – decide what you want and go get it…
  • Determine what your personality is and what serves you best for your skills
  • No “one” is better than the whole
  • Make a decision to make a difference in someone’s life
  • Decide – what are you gonna do now
  • You control yourself and your destiny
  • You hold the keys to drive your life – don’t give the keys to anyone else.
  • Work hard
  • Care about others
  • Give back
  • Make it happen
  • What makes you happy?  Figure it out and do it more…
  • How can you be a hero to someone else today
  • Determine your goals and aspirations and achieve them
  • If you do anything – do it right
  • Nothing worth doing is ever easy
  • Be respectful to others at all times
  • Read the book – Lone Survivor
  • Check out the campaign www.bootcampaign.com and contribute
  • Take time and practice then make the appropriate adjustments
  • Commit to giving 100% at all times

 

These are things we have heard in the past at one time or another but it never hurts to be reminded of them to keep you focused.

 

And the market goes on and on and on…

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It is amazing what a difference our real estate market has experienced this year versus the last few years.  Previously we were inundated with short sales, foreclosures, dropping prices and very little confidence in the market.

Today, we are at a low point in the number of short sales and foreclosures on the market since I started keeping track of them over two and a half years ago.  In October of 2010, we had 1,460 short sales on the market, today we have only 386.  Additionally, foreclosures are at a low point as well.  In November of 2010, we had 516 foreclosures on the market and today we only have 178.  Additionally, prices were falling in the Northern Virginia area.  According to RBIntel.com our market prices bottomed out in February of 2009 with an average sales price of $307,225.  Today our average sales price is $469,800.

We are still off our highs of 2006-2007, but we are headed in the right direction.  All of this information coupled with low interest rates has restored confidence in our market.

Rates?  Did I just mention rates?  Yes I did and they are ridiculous!  Yesterday I heard one of our clients locked in a rate of 3.25% with a lender credit of 2%.  We continue to see rates decline which leads to the question of how low can they go before more people act on refinancing or purchasing?  Only time will tell.

The last area I would like to touch on is our rental market.  The inventory of active rentals remains low and interest in these properties remains high.  At this time, many people prefer to rent over buying as they remain skittish about buying or are in a situation such as a recent short sale which prohibits them from being able to purchase.  This situation has resulted in rental rates rising making investing a viable option for many people – maybe even you!

If you would like more information on how these numbers affect you whether buying or selling a house, or if you would like to discuss becoming an investor, pick up the phone and give me a call.  I would love to speak with you about your situation in more detail.

 

 

The Market is Hot, Hot, Hot!

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The spring market is in full swing. This past weekend I was with an agent and they had 3 contracts on 3 different listings that went on the market the previous Thursday. One of them had multiple offers. In addition, we put a house back on the market last week that was on the market previously for about five months with no activity and got a contract on it over the weekend. So there are a lot of buyers out their looking, inventory levels seemed to have increased, but only slightly, interest rates remain low, days on market and months’ supply continue to stay relatively low as well. So if you are looking to sell, now is a great time. The trees are in bloom and the market is hot just like the weather! Let us know what we can do for you this Spring!

Are you the 20%?

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Have fun and make a difference! That was the premise of the speech I heard today from Doug Smith, compliments of Leslie Wish, McLean Mortgage Group.  If you’re not having fun at your job, then why are you doing it?  That was his lead into discussing the Paredo Principle and how we, as Realtors, fit into the rule.

The Paredo Principle is the rule of 80/20.  Twenty percent of the Realtors are doing 80% of the work. The 20% are defined as professionally persistent and instinctively insistent. We’ve heard it all before, but asked us what was the difference between those that are in the 20%? What are the 20% of Realtors doing that the 80% Realtors aren’t doing? And once you figure out what those tasks are, how can you do more of them to make your days more productive?

Doug has put those differences into his 5 C’s for Success and differentiation from the rest of the pack. These are the things that the 80% lack and the 20% excel at…

1. Confidence: How do you answer the question “how’s the market?” What do you do when you walk into a room of people you don’t know? Confidence is an ability that many of us lack, simply because we are afraid of making mistakes and looking bad. Instead of saying that the market is great and that the numbers are this and that, say “It’s remarkable, I’ve never seen anything like it!”

2. Contacts: The opposite of contact is reluctance. Reluctance can be to pick up the phone and make that call. The more contacts you have in your sphere, the more contracts you will write. So who’s in your contact zone? Business partners, family, friends, transaction partners such as home inspectors, etc. Don’t be afraid to tell your friends and family that they have a friend in real estate. Many agents think they shouldn’t reach out to their friends in case the transaction goes bad and results in losing that friendship. That all goes back to a lack of confidence.

3. Control: Control of your business, your time, your career, your clients. Agents who have a plan, a written plan, have more control over their business. Those that take it a step further by having a plan each day, a to-do list; have even more control over their business.  Agents who control or “drive” the conversation when speaking with clients, maintain more control of the transaction and get the job done! Doug spoke about Sales Speak. Here’s an example of Sales Speak presented by those in the 80% and those in the 20%…

80%: Did you think you might want to see a few houses this weekend?

20%: Let’s go see 3 or 4 houses this weekend. What day is better for you, Saturday or Sunday?

Or

80%: So, you like the house? Ok, great, do you think that maybe you might want to make an offer on it?

20%: What do you think? You like it, great. Let’s make an offer.

The difference in the two shows that the 20% agent is steering the client to move forward with the transaction because that’s what they hired the agent for. They didn’t hire the agent to make their own decisions. They hired him/her to help them make the best decision based upon the needs/requirements they expressed to the agent for their new home. Think about that next time you are on the phone with a client. You might just find out that all this time you’ve been using speech associated with the 80% and it might be time for a change.

4. Consistency: Extraordinary people are not truly extraordinary; they just do it with ridiculous consistency! Those who are consistent see more results than those that do things from time to time. Doug mentioned 3 things you can do daily to generate 13-15 sales per year and add 1,440 contacts to your database per year and those are (1) handing out 1 business card a day, (2) use some form of correspondence 2 times per day either through email or snail mail, and (3) make 3 calls per day to anyone…past clients, lender, agent, friend, etc. The more you do things consistently, the more it becomes a habit and you will find yourself doing them instinctively while receiving more business.

5. Courage: Courage hides behind the things we fear the most. Courage is acting in the presence of fear.  In cases such as these, we need to change our focus, take responsibility for ourselves and expect more of ourselves. We can do it and should remind ourselves everyday either through affirmations or changing your focus and mindset. It takes courage to do a lot of things, but once you start to do those things the easier they will become.

Doug ended the session with a great quote by Mary Kay-Ash, “Most people truly have no idea what they are capable of. It’s so much more than we think.” This rings true with the 20%. They have the 5 C’s, they have more sales, they know more people, they make more phone calls, and they work more hours than those in the 80%. Implementing the 5 C’s in your life will help you move (if you’re there) in to the 20%. Based upon the number of agents in the United States (965,000) and the projected number of transactions that will take place this year (4,400,000), agents in the 20% will average 18-19 sales this year. Wouldn’t you like to be in that top 20% of all Realtors in the United States? Stick to the 5 C’s and best of luck!  Now go sell something!

The Power of 5

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When it comes to social media, remember the power of 5…

1. Become a member of 5 social networks. Don’t worry about being a member of them all! Concentrate on the basics, twitter, facebook, linkedin, youtube, and a blog. Keep it simple, link them together for more efficiency and be active on them.

2.  Post 5 times per day on any of your social media sites.  Valuable content can be found in newspapers, friend’s posts, blog feeds, etc. Find something to post just 5 times a day. Use a program like hootsuite to schedule your posts. 10 mins in the morning and you’re done with your posts throughout the day.

3. Read 5 articles or blogs a day. Getting into the habit of reading will give you the knowledge you need to speak with others about the market, post on sites about it and might even inspire a blog post. You know you can post articles that you read on your blog…write a brief comment about it and link it back to the article’s source…it can be that easy.

4. Upload 5 videos per week. These videos can be ones that you take personally or videos that you “favorite” on youtube. Subscribe to video channels, simply click on the favorite button if you like a video and it will appear on your channel. Share it with Facebook and you’re done! Videos should be quick and informative, so interview your sellers, your buyers, your fellow agents, etc. Get creative and post it!

5. Post 5 blogs a month. Blogging can be intimidating where you think it takes a long time to put it together.  It doesn’t have to be a long article. It could be a quick 2 paragraph post discussing something you heard today.  Don’t stress yourself by feeling that you have to write a very meaningful and motivational piece. Simply write in your own voice…your readers will appreciate that.  They want to hear from you and are interested in what you have to say. So let them hear it!

Is the spring market coming?

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In Northern Virginia our inventory levels of active resale homes for sale continues to decline.  We are down to just over 4,600 homes on the market and we have a 1.8 month supply of homes.  Houses that went under contract the last 7 days hit a 6 month high this past week.  In a nutshell, houses are selling.  Why is this happening?   Interest rates hit another record low, we are creating jobs here, rental rates are increasing and our population is growing putting more demand on housing.

Last week I was asked when will we see the spring market or in other words, when will more houses be coming on the market?  Some people say when the banks start releasing foreclosures, some say mid-March, and some say when their price rise.  Let’s analyze each of these responses.

So far we have not seen the foreclosures hit the market and as a matter of record, the inventory has actually decreased to a 6 month low with only 311 currently for sale.  In addition, “Notice of Trustee sales” published have actually remained very low as well averaging only 3 pages per day versus substantially higher numbers in 2008-2010. Lastly, I started tracking short sale inventory just over 2 years ago and we are at an all-time low in this area as well – only 651 are for sale in Northern Virginia.

As far as the inventory levels increasing in mid-March, only time will tell but several agents have indicated they have houses in the process of being prepared to go on the market around this timeframe.  If they are not only preparing them for sale but are going to price them accordingly, they will sell.  Two properties we listed on Friday received multiple offers because they were price properly and in the right condition.  And now for the statement, “when my price increases, I will sell” is a tougher one to answer for many people.  Rise compared to what?  When they were purchased?  Compared to 2004-2007 prices?  Compared with the last sale in their neighborhood?  Until these questions can be answered, we can’t help them.

We continue to have one of the best real estate markets in the country and it will be this way for the foreseeable future.  Please feel free to contact us to learn more about how this market affects you and your situation.

Real estate normal?

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What is the new normal in real estate:

Today I am going to share with you a few ideas that are going to help you get on to a successful year in 2012 – you will also hear a few ideas from other agents that they have planned to make this their best year ever as well. The important thing to remember is to only adapt 6 of the strategies. If you try to do too many, you will be overwhelmed and not do any. I recommend starting with 6 things you are not doing today and incorporate them into your business. Once you have mastered 6 add another one in until mastered and then add another and so on. In addition, it is important to set strategies for accomplishing what you set out to do and review them regularly. You are in business for yourself but not by yourself so partner with someone in the room and hold each other accountable – meet before or after training, before or after a real estate exchange – make it easy for you but the big thing is to just do it.

When looking at the strategies you are going to put in place, you need to be clear and specific about what you want to accomplish and write them down. Know what roadblocks and obstacles you will need to overcome to achieve what you want to do and then how you will overcome them. What will you need to do to develop the skills and instill the discipline within yourself to make them happen. You will need deadlines, detailed plans of action – 5 or so for each action item, and have them where you can review them regularly. Lastly, think about and visualize your end result and what it will be like when you have accomplished what you have set out to do.

• Be positive – have the right attitude and eliminate complaining from your life • I like the “theme” of the day – will you do it?

• You are going to have to work more focused and be more intentional

• You are going to have to sell yourself passively and aggressively – explain

• Training is going to be paramount – especially in financing – increase your skills by attending seminars, getting a designation, going to REIX, office trainings, you need to be good at what you do to build referrals

• Video is going to be important – Casey Anthony is doing video diaries – video houses, your listings, neighborhoods, how’s the market, etc.

• Networking is going to be critical – find a group, start a group, join a chamber, Rotary club, coach kids in sports, join a PTA, get involved in a charity, become involved in something

• Learning and interpreting market trends – you have to know your numbers such as inventory levels and types of inventory, prices, DOM, people love to hear this

• Stay on top of values by previewing – especially new homes as they will continue to have an impact on the market – this is a great way to start with video. Video your house of the week, your bargain of the week, or whatever you want to call it.

• Read blogs for more information, see what others are saying about the market. You have to know what your competition is up to and what better way to learn than to read about their thoughts

• Start a blog and of course add video. Write about neighborhoods, your listings, interactions with agents, clients, trends, your services, how’s the market?

• Set your personal business standard and stick to it. Write the personal notes, make the phone calls, stop by and visit your past clients or meet new ones and track your daily conversations.

• Hold open houses on the right houses

• Track your business, determine what gives you the best results and do more of it.

How will your year end?

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As we move forward into the second half of the year fast and furious take the time to look at your business and determine what you need to do to have a successful year end. 

The first area to review would be your contacts.  How many do you have?  How often are you communicating with them?  What are you communicating to them?  Are you picking up the phone and speaking with them?  As I meet with agents regularly to conduct performance consulting with them – the most successful agents today are the ones making the calls to their database regularly and are meeting face to face with them.  Virtual contacts through Facebook, email, texts, etc. are good but you need to pick up the phone and get in front of people to get the best results. 

Are you growing your database?  Are you involved in networking groups?  Are you holding open houses?  Are you involved in community outreach programs?  Are you involved in charitable endeavors?  You need to be actively growing your contacts in order to expand and grow your business.  You can’t send our postcards, post on social media sites or advertise in print publications and expect business to come in to you – you have to go out and find it to be successful today.

Are you educating yourself?  If so, how?  What are you reading?  How often are you reading?  Do you have designations and are they applicable to today’s market?  Do you attend seminars?  Do you attend office trainings to further your education?  In order to grow, you must take the time to learn.  If you want to earn more you need to learn more – bottom line.

Are you effective on line?  Are you blogging?  Are you utilizing Google+?  What is the content you are providing on your other social media sites that engages people to read your posts and view you as a trusted resource and provider of information?  It is not the end all be all to obtaining business but it is a spoke in the wheel of your success that should not be overlooked.

You have to be better than your competition to be successful today.  You need to communicate better, you need to have better sales skills, better negotiating skills, better people skills, bottom line – you have to improve every day.  What are you going to do today to become better?  Pick a skill set and work on it!

These tips are critical to your success not only for the second half of the year but going forward as well.  Get it?  Got it?  Good!

Now, go sell something!

As we near the end of July…

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As we near the end of July, I thought I would provide a little insight into our Northern Virginia real estate market.  Inventory of resale properties has been very stable throughout the late spring and into mid-summer at 7,636 houses for sale.  What has caught my attention is the number of properties that have gone under contract the previous 30 days.  At the end of May, 3,500 homes had gone under contract the previous 30 days.  Since then, that number has declined every week to where we just had 2,880 homes go under contract the last 30 days – a 17.7% decline.  Does this cause us to panic?  Probably not, we are in prime vacation season.  We had the 4th of July holiday during this timeframe as well.  Plus, sales are cyclical and summer is usually a slower time of year for us.  Nonetheless, we will continue to see if this a more serious trend as we move forward into late summer and fall.

This decline in sales has resulted in a slightly larger month’s supply of homes.  We currently have a 2.7 month’s supply of house up from the end of May’s 2.1 month’s supply.  Again, no need to panic as it is still as seller’s market.  We continue to see when sellers price their houses to sell, have it staged properly and are in the right condition they sell in a reasonable amount of time.  In fact, we have experienced several situations where homes had received multiple contracts on them. 

Distressed home sales continue to hover around the 15.5% of total inventory active and on the market for sale.  In these numbers, we have seen a slight decline in short sales and a slight increase in foreclosures.  What continues to baffle me is that distressed property sales make up 30.7% of the home sales the previous 30 days.  This tells me that people want to say they bought a short sale or foreclosure because they believe it is a “deal” when often times they are not deals at all.

Our rental market continues to be strong for landlords.  We currently have a 1 month’s supply of rentals available.  Houses that used to take weeks to rent in the past are renting in just days.  Additionally, these homes are, in most cases, renting for more money.  The market continues to be prime for investors.

Builders in the area are still selling as well.  Loudoun County along the Greenway is selling exceptionally well.  What we are seeing in the new home sales arena is that houses that are priced right – just like resales – are selling.  Overpriced builders whom have not responded to the market are languishing on the market just like the resale properties.  As mentioned in previous blogs, we are in a very price sensitive market today.

Let’s review the national real estate news, housing starts rose to a 5 month high – up 15% from May.  The FTC won’t enforce the MARS rule against Realtors who help consumers obtain short sales – this is good news as the paperwork was unnecessary and didn’t apply to Realtors. And the Helping Responsible Homeowners Act is gaining additional support.  This Act will eliminate barriers blocking millions of non-delinquent home owners from refinancing their mortgages at today’s incredibly low interest rates.  This will help stabilize neighborhoods by keeping people in their homes.

As long as interest rates remain low, foreclosures and short sales remain a low percentage of our market, we will continue to have a steady real estate market in Northern Virginia.  Get it?  Got it?  Good!

Now, go sell something!