Scott's Real Estate Market Update

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 9^th 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 4^th 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!