How to be successful this year in real estate.

It’s the beginning of the year and agents are asking what they need to do to be successful this year in real estate.  As I thought this through, I came up with a few areas that I believe agents need to “pay attention to” sooner rather than later to be successful in real estate.  Here is the list of urgent and important items, urgent items, important items and lastly, to do items that I came up with for success this year and beyond.

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Urgent and important

  • Get you database together – sort and qualify them.  Assemble their name, address, email address and phone number.
  • Call them, stop by and see them with a “leave behind item of value”, communicate with them regularly to strengthen your relationships with them and to develop your base of business.
  • Add people to your database daily – grow who you know and also, those who know you
  • Develop a daily game plan of who you are going to reach out to and why.  Do this the evening before or the morning before you start your day.
  • Create a daily schedule with strategic blocks (1-2 hours), buffer blocks (3-5 hours) and break out blocks (1-2 hours) built in and stick to it for success.

Urgent

  • Have a business plan complete with goals, objectives to meet these goals, and action plans to carry you over the goal line.
  • Hire a coach/mentor to keep you on track – meet with them weekly to review your goals/business plan.  Your broker or manager is always a good start as they are invested in your success.
  • Get an accountability partner to hold your feet to the fire complete with rewards as well as consequences for your actions.

Important

  • Learn the business – read publications, attend industry events at your office, Real Estate Exchanges, Quarterly meetings, association and at the franchise level.
  • Learn the inventory – see 5 houses every day including new homes.  Attend Broker Opens.
  • Meet with others in the industry – lenders, title, builders to gain insight into their areas of the business and what is happening with them.
  • Start a blog and write consistently.
  • Do videos and post to your blog, website, and social media channels to gain exposure and recognition as an expert.
  • Plan to host at least one client event this year.
  • Have a daily to-do list.  Work on hardest things first as they are typically the most critical.
  • Develop a routine and stick with it.  Always start with prospecting as it is the key to success.
  • Maintain a calendar with events and goals for the day and week.
  • Work on your negotiation skills through role playing.
  • Be present – stay off cell phone during your “block” times, focus on the other person, be an active listener.

To do’s

  • Utilize systems and process to ensure your success for marketing yourself, working with buyers and sellers.
  • Set up a networking group to grow your business.
  • Create and develop your brand – who you are, what you deliver and what you stand for in the business.
  • Read inspirational and motivational articles, books, etc. each morning to get you in the right frame of mind daily.
  • Continuously educate yourself personally and professionally.  Set a goal to read a book a month or even a book a week or to attain a designation.
  • Eat healthy and exercise regularly.
  • Invest wisely in yourself and in your business – check with your coach, mentor or trusted advisor before any major expenditures.
  • Celebrate your successes, including the small ones as they all count!
  • Consistently work on communication skills.
  • Create a vision board of your goals, dreams and desires.
  • Have a good balance between work and life.

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As you progress in your career or if you are looking to jump start your career be sure to add these items to guide you to success.  Obviously there are other areas which you need to develop but these will most definitely help you.  If you are interested in more information or would like to schedule a time to meet, please feel free to call me.

Now, go sell something!

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Northern Virginia Real Estate inventory and Pricing

Scott MacDonald of RE/MAX Gateway offers valuable information on the latest real estate inventory and how important pricing is for selling your home in his video blog Scott’s Market Minute. Sellers are urged to price houses competitively to sell fast.

For a free Home Market Analysis, contact Scott MacDonald (703) 652-5777 There’s still time to get your home listed for sale!

Buyers, rates are climbing, now is the time to buy a home! Email Scott for a free optimized homes for sale search list. scottmacdonald@remax.net

Forecasting The Real Estate Market With Government Shutdown

Wow, where did September go?  It was a very interesting month – kids went back to school, football season started, the weather has changed, the housing market remained strong and the government shut down for the first time in 17 years.

Forecasting The Real Estate Market With Government Shutdown

It will be interesting to see how the stock market reacts to the government shutdown, what the impact will be on rates, the housing market and how long it lasts.  If it is a quick shut down, we will probably see little reaction in the stock market and as a result, rates and the housing market.  If it is a prolonged shutdown of a few weeks or more, the stock market will have a negative reaction, rates will rise as bond yields decrease and we could see a loss of momentum in the housing sector of the economy.  What will happen to government backed loans in process and how will it affect settlements?  None of these are helpful to our economy since the housing recovery leads the economic recovery as a whole.  At this time, it appears as if this could last longer than just a day or two so let’s get prepared for a rocky economic road the next few weeks.

Let’s talk about the real estate market in September.  We did see a pickup in sales over last year in Northern Virginia.  Inventory increased slightly which gave buyers more choices.  As inventory increased, distressed properties made up a lower percentage of this increase which is great for home owners.  New home sales continue their strong pace of sales.  Interest rates came back down as the government eased off their threat of reducing their purchasing of mortgage backed securities and we still see multiple contracts on properties in certain price points and locations.

All in all, September was a good month for Northern Virginia real estate.  We need this trend to continue, so let’s hope the shutdown gets resolved more quickly than it appears it will.

If you have any additional questions or concerns, please feel free to call me directly (703) 652-5777

Scott MacDonald

RE/MAX Gateway, LLC

Why has the real estate market slowed down?

Why has the real estate market slowed down?  In my opinion, it is a combination of a few factors.

Why has the real estate market slowed down?

First and foremost, it is interest rates.  Over the last year, rates have risen nearly 1.5%.  A lot of people say they can’t believe with rates so low, how people cannot qualify for a mortgage.  Well this kind of increase will remove buyers from the market regardless of where the rates start and where they end up – 3.25 to 4.75 or 8 to 9.5.   An increase in interest rates like this is going to have an impact on the market.

Also, house prices have increased by over 17% the last 3 years in our area.  This price increase has also helped to eliminate buyers from the market.  Higher prices in any area of our lives – cars, restaurants, food, etc. will eliminate buyers – it is a natural fact.  Couple this with the interest rate increase and we have a slower market.

Additionally, there are fewer homes to choose from in the lower price points as well making it difficult for buyers to even find acceptable housing to purchase.  There are only 1,210 properties priced below $300,000 in all of Northern Virginia and only 271 are single family homes, the rest are town houses or condos.  If there are fewer options for entry into the market, there are going to be fewer sales thus slowing down the market.

The upcoming finance reform with QM, QRM, and Basel III the first of the year together with the easing of QE 3 leaves a lot of speculation about the future of rates and sequentially, the housing market.  Keep a keen eye on these developments to measure their impact.

So is the sky falling Chicken Little? 

Why has the real estate market slowed down interest rate increase

Well, let the numbers tell the story.  The housing market today is not substantially different than this same time last year and everyone was excited about the market then.  Funny how the brisk spring market with low inventory, low interest rates and multiple contracts has clouded the vision of some people.  Inventory is up just 6% over last year – not a terrible or scary number.  Sales are up in a week to week comparison to last year by 3.5% – a pretty good increase, right?  The 2.1 month supply of homes is virtually the same as last year’s 2.0.  Distressed property inventory has dropped 40% – which is a fantastic number.  This has resulted in a majority of the increase in homes for sale being arm’s length transactions – another good thing.  The last number to mention is properties that settled the last 30 days.  We are up 14% over last year indicating we are actually experiencing more sales.  So, if looked at from a long term perspective, our real estate market is actually doing pretty well.  All this being said, we still need to price properties properly as well as get them in the right condition to get them sold for our clients.

Keep a positive outlook on the market, good things will happen.  Now, go sell something!

Scott MacDonald

RE/MAX Gateway, LLC

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How are Interest Rates affecting the Northern Virginia Real Estate?

Scott MacDonald of RE/MAX Gateway offers valuable information as to how interest rates are driving the real estate housing market in his video blog Scott’s Market Minute.

Sellers are urged to price houses competitively to sell fast. For a free Home Market Analysis, contact Scott MacDonald (703) 652-5777  There’s still time to get your home listed for sale!

Buyers, rates are climbing, now is the time to buy a home! Email Scott for a free optimized homes for sale search list. scottmacdonald@remax.net

How Fast Will My House Sell? A Look Into The Real Estate Market Roller Coaster Ride

July turned out to be a roller coaster month for real estate as the long-awaited day of reckoning came: The era of historically low interest rates is over.

How Fast Will My House Sell INTEREST RATES

Additionally, inventory levels continued to increase – we are up nearly double the number of homes for sale since the beginning of the year.  Also, home prices have risen and sales slowed slightly all resulting in a hectic month for residential sales.  Oh yeah, throw in a long holiday weekend so some sellers are a little anxious today about their home sale situation.

So the biggest question is…what was the impact of rising rates?

  • It knocked some buyers out of the home purchasing arena as they could no longer qualify.
  • Some buyers are waiting to see if the rates will come back down so they are on the fence.
  • Higher prices coupled with higher rates have made some people uncomfortable with the elevated payments and don’t want to make a move at this time.

How do we look going forward into August…. Houses will sell!

  • Existing home sales are expected to rise more than 8% for the remainder of the year.  As our prices continue to rise, albeit at slower pace than the rest of the major metropolitan areas as reported by Case-Shiller – home prices in the 20 biggest cities rose 2.4 percent from April to May, with a 2 percent monthly gain in the Washington market. How Fast Will My House Sell
  • Sellers in our area will continue to take advantage of the gain in equity, especially closer into Washington and put their houses up for sale giving us a more balanced market between buyers and sellers.
  • Interest rates will remain stable and we won’t have the drastic increases we experienced over the last two months bringing some of the buyers back into the market.

So overall, I believe we will have a good August, not great, but that is typical for this time of the year.

If you have any additional questions or concerns about your particular situation, feel free to call me (703) 652-5777.

Scott MacDonald

RE/MAX Gateway, LLC

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Top 3 Reasons Why You Should Buy or Sell a Home in Northern Virginia NOW!

Wow, it has been a crazy 8 weeks for interest rates.  As we have discussed in the past, if someone was considering buying or refinancing, they should do it then.  Well, I hope you took that advice because interest rates have gone up three quarters of a point in just the past 2 months.  This week, we saw the largest increase in rates since April of 1987 – that’s 26 years!  The reason behind the increase is Ben Bernanke of the Federal Reserve made remarks that they may be tapering its bond purchases later this year if the economy continues to improve.  Although the stock market was up the second quarter with all three indexes recording gains of between 2% and 5%, it too took a hit on these comments.  We will have to keep a close eye on the economy and see where rates will go moving forward with this type of news on the forefront.  If you recall, at the beginning of the year, we predicted rates to rise to around 4.5% which I believe will still be the case, I thought it would be more gradual and not so drastic.

Largest interest rate increase since April, 1987

Largest interest rate increase since April, 1987

All of this being said, interest rates from a historical perspective, are still very low.  Today 30 year fixed rates are 4.25% with .75 points on conforming loans above $417,000.   While the increase in interest rates will certainly dampen some housing activity, the effect will be softened by the high level of buyer affordability, and home sales should still remain strong.

What else do we see in our real estate market?  We continue to see housing prices increase throughout the area as demand remains strong despite the increase in rates which is good news for our sellers.  We are also seeing more houses coming onto the market in Northern Virginia which is good news for our buyers. The inventory of resale homes is above 5,000 for the first time since the third week of October 2012.  Since the beginning of the year, inventory levels are up nearly 37% but we are still in a seller’s market with just a 1.4 month’s supply of homes.  The market still remains competitive with many properties receiving multiple contracts.   We had one house with 3 contracts on it this week in Virginia Run.  Distressed property inventory remains very low as well – just 6.9% of the market which is good news for everyone.   We should continue to see these trends continue throughout the summer.

Lastly, we are excited to announce we have signed a lease on our 5th office.  It is in the Clarendon section of Arlington and is located at 3000 10th Street – look for our grand opening announcement soon.  Please let us know how we can serve you.

Scott MacDonald

RE/MAX Gateway, LLC

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 $1,250Grantors Tax Increase to help ease congestion

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.