Great Information from last night’s Real Estate Information Exchange!
Centreville
Top Producers Chime in on the Market
As you have read in the past, the Platinum Group meets once a month to discuss the market, trends in the market, share ideas and to network. These individuals earn in excesses of $250,000 per year and have been meeting for over 5 years. Basically, they are the best of the best. Here is what they had to say about the market this month.
Foreclosures: the robosigners and paperwork/clerical errors had many banks jumping on the bandwagon putting a moratorium on foreclosures in all 50 states whether they are judicial or non-judicial states. Basically, this policy is wrong and they should continue with the foreclosures in non-judicial states and clean up their act and their process in the judicial states.
Foreclosures may be stopped temporarily going forward on properties under contract in our area. Be in touch with the listing agent and title companies on where the house is in the process and see if it is going to close or be stalled for any reason. As always, stay ahead of the curve.
Be careful of prices going forward because of the onslaught of foreclosures coming. Right now, we in Northern Virginia, have one of the highest 90 day late delinquency rates in the country. Many of those are people who stopped paying because they are in short sale but at least 50% of those, if not more, won’t close as short sales and will come on as foreclosures later. We had a historical month of foreclosures in September and these homes will come on the market soon so get price reductions today to get them sold as we are going to see a price reduction of 5 -20% over the next year – potentially. There is water behind the dam, it is only a matter of how much water they let over the dam as to how it will relate to where prices will fall. The question is who is going to be affected? We still have pockets and price points where there are multiple offers and escalation clauses. Our market is hyper local – you have to educate your buyers.
New home sales are down – builders aren’t making money – at least the production builders we are working with now. They are not accepting offers on houses because they say they aren’t making money at the lower prices and then a few months later they are dropping their prices to where offers were previously. They are just trying to hang on at this point.
Interest rates will not increase for the foreseeable future – market can’t sustain it and we don’t have inflation and rates and inflation go hand and hand.
What is happening with short sales? An approval came through with 8 days to close after working with Wells Fargo for over 1 year…some have had no issues, even with 2 mortgages…no zero deficiency judgments now, banks want money at the table or are getting deficiency judgments (Litton Loan Servicing, Wells Fargo – 2nd trust, PNC, and Aurora, Astoria, Bank of America and Wells Fargo all wanted cash at closing).
What Steve Harney said: Strategic defaults make up 31% of all distress sales. Additionally, now is the right time to be a buyer considering where interest rates are today – buy because it is a home, not an investment. Don’t worry about what may happen to prices in 6 – 12 months, if the house is right, buy today. If you are a seller, it looks like prices may come down in the future so reduce today to get it sold so you are competing with foreclosures that may enter the market. Either way, now is the time to get into real estate!
How is our market otherwise? Houses are selling and buyers are buying – now is the time to get out in front of people to get it done! Get it? Got it? Good!
Now, go sell something!
Can you do the time?
Don’t do the crime if you can’t do the time. This saying comes to mind with the latest banter back and forth about the mortgage foreclosure moratorium. What is happening in the real world and not in the media’s demented mind and the mind of special interest groups is people aren’t paying their mortgages – PERIOD! If they were making their payments as many of us are and as we agreed to do when we signed our deeds of trust – regardless of the home’s value – they wouldn’t need to worry about whether their paperwork was Robosigned or not. As many of us have heard at the settlement table, “you pay stay, you don’t you won’t” has never been more applicable.
The moratorium on foreclosures is bad for our industry and the economy as a whole. We can’t get out of the mess we are in until we flush through the mass amounts of REO inventory the banks, Freddie Mac and Fannie Mae are holding in their inventories.
Let’s make the right decision to help the country get back on its feet and get the housing market back on its feet and stop talking about any type of mortem. Get it? Got it? Good!
Now, go sell something!
Lists, surveys & reports…oh my!
It seems all the rage lately has been lists such as Top Reasons to…Top 10 Foreclosure Markets…Top 7 Markets in Mortgage Delinquencies, etc. and people are asking where Virginia ranks in these types of surveys. These lists don’t always rank all states or areas but many times these lists rank the Top 10 and Bottom 10 and Virginia has not been in them. This tells me we are in the middle of the pack – until now. I recently read a report on Real Trends about Corelogic reporting housing prices remaining flat and guess what? Virginia was number 5 in price appreciation – woo hoo! We made a list and it was for a good reason! Read the report here.
Here is other real estate information making the news…Foreclosures are up 25% on the year. Banks took back 95,363 properties in August – nationwide – making it the 9th month in a row foreclosures increased on an annualized basis. Since December 2007, 2.3 million homes have been foreclosed on by banks and there are at least 1 million more to go. Yes, we will be impacted by foreclosures but it will be to a lesser extent than the rest of the country which is good. It will bring inventory on the market in lower price points – which is needed – and it will help first time buyers enter the market as many of these homes are made available to owner occupants for the first two weeks the property is marketed.
Regardless, all real estate is local and it is our job as professionals to get the word out prospective home buyers and sellers that we are in one of the best markets in the country and people are buying and selling homes in Northern Virginia. Get it? Got it? Good!
Now, go sell something!
Do you over promise and under deliver?
To over promise and under deliver is one of the worst mistakes a sales person can make in business. You take both your time and the client’s time to a build a relationship through finding out each other’s wants and needs, as well as learn what their expectations are for you and for them. Agreements and commitments are made based upon satisfying these needs. Then, the salesperson doesn’t deliver based upon promises that were made. In the end, when you can’t deliver upon the promise, and you didn’t set the expectation up front, you broke the bond of trust and in turn, hurt your business situation which can take years to recover from financially.
The question I have is why? Why do people say and commit to delivering results that they cannot produce? It brings ill will, harms friendships and causes more harm than good. Your reputation is one of the most valuable assets you have in business – it takes years to develop – why put yourself in the position of having to defend yourself to others or rebuilding your reputation.
My advice is know what you and your business can deliver and by when. Don’t say yes or we can do that to just get the business. Return phone calls, emails, and text messages promptly. If your company changes policy which results in you not being able to perform, notify the client immediately. If you delegate to others, stay on top of them to make sure nothing slips through the cracks. Remember, it is your reputation, not theirs at stake. After the sale, service is critical and will get you more referrals in the end. Follow up and follow through is what matters most.
Expectations are set through relationship building, proper delegation and being held accountable to get the job done. This is what you get paid to do, so DO IT. Live up to your word, do your job and make someone satisfied, not disgruntled and upset that they made the decision to go with you. Get it? Got it? Good!
Now, go sell something and deliver on your promise!
Don’t believe everything you hear!
Be careful to pay attention to what you read. It was recently reported that Fannie Mae foreclosures were up 12% in the second quarter – loan modifications that are 30 – 59 days late are up 2.19% – deeds in lieu of foreclosure and short sales are up 27% – there is “frailty” in the housing market and on and on.
Well, as the cops say in the movie Hangover – not up in here, that’s right, not up in here! In Prince William County, the average sales prices of properties are up to $255,000 from $229,000 in August of 2010 versus 2009 numbers – this reflects an increase of 12.46%. And the average days on the market are down to 44 from 63 – a decrease of 30%. This is great news but wait, there’s more. In Loudoun County property prices are up to $378,000 from $344,000 from August 2009 to August 2010 – an increase of 8% and the average days on market are down from 65 to 52 – a decrease of 20%. The story of good news continues for Fairfax County as well – average sales prices are up to $417,000 from $381,500 – an increase of 8.6% and the average days on market are down to 52 from 61 – a decrease of 15%. The City of Alexandria and other localities here in the Washington area are experiencing similar results.
The government has release nearly $1,000,000,000 to states for their Neighborhood Stabilization Program. This program was introduced to bring stabilization to neighborhoods that have been affected by foreclosures and abandonment. As a result of this program, Virginia received $6,254,000 (mainly for the Hampton Roads area and Richmond) a relatively low number compared to Florida who received over $208,000,000 and California who received over $149,000,000. Again, this is good news for the Northern Virginia real estate market.
The bottom line is that we will be having more foreclosures coming on the market and short sales will continue to be present in our market place as well. But, the good news is we are seeing that the distressed market is having less of an impact on our market than the rest of the country. Our market is strong compared with the rest of the country – people are still moving here and houses are selling with price increases over last year’s numbers. Know the facts and make it happen! Get it? Got it? Good!
Now, go sell something!
Extra, Extra…there is some Good News in Real Estate!
Good news is that the Case-Schiller Home Pricing Index reflects that housing prices are up in the Washington area for July, the 4th straight month of gains – good news…there is talk about prices not making a comeback to 2006 price levels until 2014 – bad news…nationally, home sales were down 27.2% from June- bad news…but our numbers were only 18.4%, nearly 9% better than the rest of the country – good news. Days on market is down – good news. Inventory levels continue to maintain and even slightly decrease…not really bad or good news either way, just an FYI.
Well, enough of that silly little exercise. However, I did that to illustrate a point – the market is what you make it and you can spin it the way you want so why not be positive. The other point is, if you head is spinning, so are consumers. It is our responsibility to get in front of people and explain to them that our market is different. In our area, people are always buying or selling – we have a 2.6 month supply of houses – your job is to find them. We can talk about the negative sales numbers or the positive sales prices – choose to move people forward and not keep them down!
More good news, Virginia was once again ranked extremely high as a business friendly state, #2 over all nationally, as ranked by CNBC. To illustrate this point, Northrop Grumman selected Fairfax County for its headquarters, MeadWestvaco is relocating to Richmond, Pfizer has agreed to stay in Richmond, Southern University is relocating jobs to VA, and Thermo Fisher Scientific is expanding as is Evatran. Northern Virginia boasts the lowest unemployment rates in the country and Northern Virginia has seen a drop off in foreclosures where the rest of the state has seen an increase. In addition, Gables Residential is building 120 apartments near Fair Oaks after sitting on the property since 2007 as they see a need now for more housing. STG has also inked a deal for 100,000 square feet in Reston and plans to grow from a $220,000,000 company today to a $1 Billion company by 2016 – keep an eye on them!
Now for the numbers! Inventory levels are down to just under 7,600 – contracts continue to come in at about the same pace weekly – mid 600’s and month’s supply remains in the mid 2’s with rentals still posting strong numbers at a 1 month supply. Interest rates continue to be phenomenal as well. So, as we have said for several months now and was reconfirmed at the broker owner meetings in Denver…it is an investors market! Find’em, sell’em, rent’em, manage’em and then sell’em again…what a theory and business model for the next few years! Get in the game or get out. Get it? Got it? Good!
Now, go sell something!
The leads, the leads…where are all the leads?
The dog days of summer are nearly over and the recent news about housing is not good and I don’t believe it will be better any time soon based upon what builders are reporting and where our sales were the first two weeks of August but you know what? Business continues to happen. Sellers are selling and buyers are buying – you just have to find them! How do you find them? You have to work – a dirty little four letter word!
What needs to be done? Well, as we have discussed in the past, it is the effort you put in today that brings you results in 60 – 90 days. So, let me ask you a few questions. Have you picked up the phone and called someone in your sphere? Have you attended a networking event lately? Have you started a business networking group, joined a chamber, or gotten involved in a charitable group to get yourself in front of more people? Have you stopped by a dentist’s, doctors’, or other professional’s office and delivered your newsletter or item of value for the patients to review while waiting? Oh and while you are at it, have you introduced yourself to the receptionist and ask to add them to your database? Have you held an open house – the right way to build your business? Are you talking about real estate at church, football practices, the pool, the grocery store, etc in a positive light and attracting potential clients to you? Are you answering your phone when it rings or do you let it go to voicemail? Basically, what are you doing to make it happen for you? What is your attitude? Do you know the numbers, trends, and what is forecast for our business? If not, you better or you will be out of the business.
You need to be proactive today to make things happen in the real estate business. You can’t wait for your broker to give you a lead. You can’t wait for the phone to ring. You can’t wait for a walk in or for an internet lead to come in online – you have to make it happen for yourself. You need to build a business that is based upon fundamentals of generating leads for yourself through a strong referral base. If your business is built on the latest trends in the business such as paying for leads, foreclosures, short sales through direct marketing efforts and you neglect your other business and database, when the times change – so will your business. You have to make it happen and start getting involved with your business. You are responsible for you – we can help guide you but it is your actions that bring you success or failure in the real estate business today.
Building a business requires a plan including daily activities and a to do list. Build a business based upon high performance – write your plan, set daily activities, follow through on those activities and have accountability built into your plan. Network with other agents who are successful in the business today and find out what they are doing, how often, and what is working and what hasn’t worked for them recently. It is so easy to blame the economy, the media, and others – besides yourself – now is the time to step up if you want to make this business work for you.
If you wait, it won’t happen. If you wait, you probably don’t really want it so you should consider getting out of the business. If it is to be, it is up to me is the phrase that comes to mind for doing business today. It isn’t your broker’s responsibility to provide you with leads – unless you don’t want to build a business of your own. Either you want it or you don’t. Get it? Got it? Good!
Now, go sell something!
Not all four letter words are bad.
The four letter words that agents are afraid of and don’t always embrace are plan and work. If you don’t plan –you won’t know what you want and how to obtain results. As the great Yogi Berra once said, “If you don't know where you are going, you might wind up someplace else”. In addition, to be successful, you need to work.
Many agents today have an air of entitlement when it comes to obtaining business – they expect it to come to them versus going out and giving value to those in their database to receive business in return. This is a concept known as work…going out, making contacts, providing value (referrals, business, items of value, etc) to help make others successful. David Kendall once said, “The only place where success comes before work is in the dictionary.” Get busy working and get busy getting results!
Here are some tips to help you get on the road to planning:
· Change your daily activities
· Start with a list
· Prioritize the items
· Add dates to complete
· Develop a plan of action to accomplish these items by your completion date
· Organize yourself, your day, and your approach to achieving your objectives
· Work your plan
· Resolve to do it
· Kick into gear and get it done
In order to obtain results, you must work. Once you know what you want, plan each day to achieve your goals.
Here are some tips to get you on the road to success through work:
· Have a plan of action
· List what will give you the best results
· Prioritize your time around getting your tasks complete
· Time block to get the items completed
· Be organized
· Be focused
· Be intentional in your efforts
· Avoid naysayers and negative people
· Have a positive, can do attitude
· Have the mindset of getting it done
· Think high performance – what is the highest and best use of my time right now
· Determine the right people to help you
As you can see, the two lists are very similar and virtually go hand in hand. You have to have a plan to work effectively and you have to work a plan to get results. You are responsible for your results – bad, good or great! You have to want it in or to get it – whatever it is! Get it? Got it? Good!
What do you think?
What differentiates highly successful people from others who just get by day to day? In analyzing the situation, I believe people who take the time to think are the ones who far exceed those in the business and in life who don’t think.
Let’s discuss the problems with how people think. They don’t think in depth enough, they have knee jerk reactions and responses to what they have processed, they just repeat information from others, and they don’t future think – what will the eventual end result be and is it what I want? As a result, they aren’t open to feedback or suggestions and become close minded. It is so important to think and process information for yourself to become your own person.
Let’s review what type of thinking people should embrace? Thinking on the fly, strategic thinking, and thinking for yourself. So, what does it mean to think? It is to form thoughts, have an opinion on, or comprehend something. In order to possess this skill, you must take the time to learn, develop a strategy and follow through on your thought or decision.
First, how do you learn to think on the fly? It starts with reading. Read books, magazines, blogs, newsletters and articles published on the subject in which you have an interest. Attend seminars, trainings, and conferences. Review numbers, research trends, speak with industry experts and ask questions. Sit down and develop a list of what you believe about what you have read and heard – is it true based upon what you have experienced? What is similar? What is different? What do you “think” about their data and yours? Have an open mind, take the time to sit and reflect and formulate your own opinion…this is where it starts! When you take the time to learn, you can quickly and easily think on the fly and respond quickly to situations as well as develop a plan of action for strategic thinking.
Next, how do you begin to think strategically? Ask, what is the strategy? First, develop a plan. What is the purpose? What is the eventual goal or outcome of what you want to achieve? Then, make a list of what you need to get to the end result. Analyze each option you have written down and then review the analysis. You must break down each component in your analysis and think, are your conclusions correct? If the decision or thoughts affect others, what are the repercussions, how will you handle how people perceive your decision or thought process? Are you getting what you want out of your decision?
How do you think for yourself? Ask yourself questions. What are two or three alternatives to the situation at hand? What are the outcomes of each scenario? Which is the best alternative based upon the outcomes? Develop your own ideas, thoughts or opinions by taking what you have learned from the second paragraph and put what you have learned into your words. Interpret, paraphrase, develop your own thoughts and communicate them to others clearly and concisely through various avenues. It is so important develop yourself and not become a “yes” man. If you can’t develop your own style, give credit you who you get your information from so that others know who is responsible for delivering you your information.
Follow through encompasses announcing what you have learned. You can write a blog, write a book, become a trusted resource to those who understand and believe in your thoughts. You must develop accountability for your thoughts and how you communicate them. Consistently review your thoughts and make adjustments as time requires. Remember, change is good.
Be original, take the time to think, and make it your own based upon your research – put it in your words and become a thought leader in your own right. Additionally, rehearse answers to what are commonly asked questions about you, the market, and your business. The more you incorporate thinking into your daily activities, the more you will succeed. Get it? Got it? Goo
Scott's Motivation and Real Estate Market Updates 