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What’s up with our market?

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There are home buyers out in Northern Virginia but they are savvy, price sensitive and condition critical.  As we have seen in the papers, read online, and heard on the news, the rest of the country is experiencing a double dip in home prices, and waves of foreclosures are going to hit the market spiraling prices even further.  All of this has made buyers in our area become very cautious and has lowered consumer confidence nationwide. 

Why do you ask are they this way?  Well, most of them are from someplace else and they have seen streets riddled with real estate signs, are from areas that have a 41 month supply of houses versus our 3.1 month supply of houses or have friends and relatives who have been unable to sell their house in other parts of the country.  This has an impact on their buying decision here and yes, they hear our area is different and understand the underlying reasons why our market is strong but they are still looking for “a deal”.  They scrutinize each property looking for excuses not to buy them versus finding reasons to buy them.  When there is a home that offers the right price (often below market)  that has been staged (painted in neutral or trendy colors, new carpeting and de-cluttered), in perfect condition (no broken window seals, leaky faucets, etc.) and in a great location (backing to trees, end of cul-de-sac, etc.) they swarm on this property like vultures.  Many times we will encounter multiple offers on these types of properties and see them escalate above list price.

If you are a seller and your home hasn’t sold, what should you do?  Lower the price – it is the least common denominator and makes up for many areas where the home may be lacking such as in condition or location.  Get the home staged, by a professional.  You could also offer a higher commission to the buyer’s agent as an inducement to sell your house.  Many sellers or listing agents are offering a lower commission as many buyer agents have accepted lower commission rates in the past few years  as a result of short sales and foreclosures (banks) only paying a lower fee so paying more can set you apart from the competition.  Be ready to negotiate to get your house sold.

If you are a buyer, what do you do?  You should be ready to be in competition if you are looking for the perfect house at the perfect price and be prepared to include an escalation clause with your contract.  As was mentioned early, these properties are typically seeing multiple offers that go above list price.  Buy a new home – pick your own colors, location, and avoid the competition.  Many builders have adjusted to the market and are priced to sell.  Make an offer on an almost perfect house and see what happens.  Often times, as homes stay on the market and sellers have many visitors with no contracts, they tend to be more reasonable with what the market is telling them in regards to pricing.  The idea for buyers is to just buy.  The housing affordability index hasn’t been this high since 1979!  Interest rates are at their lowest level this year and prices are reasonable plus, we have jobs and stability in our market place.

If you need to sell, this is a great time to do so.  If you are a buyer, you shouldn’t delay – prices and rates are not going to get lower in our area making this an opportunity of a lifetime.  Contact your RE/MAX Gateway professional today and get packing!

Don’t just survive…thrive!

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Here are some strategies to help you not only survive but thrive in today’s market as shared by RISMedia panel members.

Provide a newsletter that has helpful tips whether you do it or you pay for a service, get a monthly, informative newsletter or market update to send to your sphere of influence.  Don’t let someone else be the buzz in your client’s ear.

Explain the numbers, your knowledge of the market and get the business – you have to educate yourself on market trends so you know what to say so you can differentiate yourself from other Realtors.

How do you answer the question, “how is the market?” – What’s your answer?  Think about this, become an access point for relevant up-to-date information to everyone you encounter.  Don’t just respond – it’s unbelievable or I’ve never been busier or it’s great and I’m never too busy for your referrals.  Provide them with information.

For sellers

Ask questions and listen when you are on listing presentations:

  1. What is it you want to do?
  2. Why is this move happening?
  3. How soon do you want to act?
  4. Who is responsible for making decisions?
  5. What has to happen to make this happen?
  6. What is plan B if the house doesn’t sell?
  7. What is the worst case scenario?
  8. What is the best case scenario?
  9. Tell them, we want to get you the highest, most realistic price.

The market is not reacting to your price so we are now getting closer to your plan b – is this ok with you?

Take professional pictures and use full screen photos on the internet.  Buyers go to the internet first so you have to make the best first impression on line.

Position yourself differently in the market place.  When listing the house you will be merchandising, staging, and pricing the property to sell.

For buyers

When working with buyers, use the housing affordability index to motivate buyers to buy.  Housing affordability is at its highest point since 1979.  If you are working with Millennia’s state, there has never been a better time to buy a home since your parents bought their first home.

Only work with committed people

Don’t do it for the money…Educate the buyer or seller and focus on their goals and the money will follow…

Commit to make a difference in someone else’s life.

Excellent tips to build urgency in buyers:

Remember, it is always about the consumer:

  • Convert wants to needs
  • Lifestyle marketing – appeal to the lifestyle of the buyer you are looking to sell to.
  • Ask “right” questions to learn more about them, their needs and to better serve them.  Schedule a buyer interview to set yourself apart.
  • Younger Consumers want Community – build urgency through the ability to be in their community – bike to work, coffee shops, environmentally friendly buildings, free Wi-Fi, etc.

Know why your people buy.  In a recent survey of home buyers and their Realtors – look how they answered these question of why they bought.  85% of Buyers bought for appreciation.  89% of Agents who sold them their houses said appreciation wasn’t a reason why they bought.  Get to know your buyers and their reasons for buying and the referrals will follow.  Don’t and they won’t.

For you to think about

You set the temperature for your future – don’t be a thermometer and respond to the temperature.

If you are not already on Linkedin – here are some reasons why should be:

Seven Reasons for utilizing Linkedin:

  1. Highest household income of any social site
  2. 45% are household decision makers
  3. Can import/export contacts
  4. Professionals involved in this site, not kids, college students, etc.
  5. Social way of contacting professionals
  6. Target “groups”
  7. It can be automated

Continually ask yourself and assess yourself by asking:

On a scale of 1 – 5, 1 being the lowest and 5 being the highest, how would you rate yourself on the…

  • Use of technology
  • Prospecting
  • Sales skills
  • Negotiations
  • Average sales price

Get with a coach or mentor and work on the areas you need the most improvement.

Important things to keep in mind to grow your business

  • Build Your Skills
  • Shift your mindset
  • Agents cause their own market
  • Show up and use what we provide
  • Hold up a mirror and ask – are you doing all you can?
  • Become intentional about leads

Now that you are armed with a few additional pieces of information, take the time to implement one or two at a time to make yourself a better listing agent, buyer agent or business person.  Get it?  Got it?  Good!

Now, go sell something!

 

 

 

 

 

 

 

Get in the Know…now!

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We recently attended the RISMedia convention in New York and have compiled notes that I will share with you on what was discussed and comment – occasionally how it will affect our business and ask that you do research on certain topics to inform yourself to give our clients the most up-to-date information so they can make the right decisions when buying or selling a house.

Finance update

FHA–

There have been two price increases on FHA loans recently – upfront MI and monthly MI.

-Lenders paid less on FHA loans.

-FHA loan amounts decrease.

-Potential increase in down payment requirements are also on the horizon.

-FHA Loans are 30% of the market.

-MI – 5% down training on MI is required for agents who want to stay in the know!

Additional facts on the market:

-2/3 mortgage applications don’t go through.

-Do consumers understand the process of obtaining credit – no – Agents are transactional

-7 million people have been out of work for 26+ weeks.

-19.8% of all prior mortgages are 90+days delinquent.

-Eminent defaults are on the horizon – stay tuned.

-60 million + people with less than 630 credit score.

Lenders are looking for point of sale contact with Realtors

-Want to help you grow your biz and attract more agents into their database?

The question is how?

-Training and education

-Shared marketing dollars

-Leads

-Exposure to listings through marketing ventures.

– What else can they provide?

GSE’s are stagnant on Capitol Hill and we shouldn’t expect progress anytime soon.  Too much else is on their plate.

270 points in Dodd-Frank bill – The lending industry WILL change.  We are expecting to receive talking points of the bill for you to share with your clients so stay tuned!

Do you know what Qualified Residential Mortgages are?  It is important to stay up on the trends.  QRM will push a 1/3 of Buyers out of market.  The comment period on QRM ends 6/10/2011 – get in the know and make your comments to your elected officials!

“Stuff” is thrown up against the wall right on Capitol Hill now to see what sticks

 – A tax on new home sales was proposed so that the existing home inventory could get absorbed and new home sales would subside as a result.

What is the HAMP Mod’s default rate within 6 months?  It occurs 60% of the time.

Average consumer has 13 credit obligations – 9 credit cards.

48% of college students leave school with bad credit

58% of college grads move home because of poor credit.

Ask your clients, “What is likelihood of you buying furniture, blinds, etc., if you do, can you really afford this house with this additional debt?”

Become a long term trusted advisor for your clients – provide valuable content – early and often.

Education is a continued effort so get educated.  Get it?  Got it?  Good!

Now, go sell something!