Scott's Real Estate Market Update

What's it all mean?

Over the last few years we have been providing you with information on the real estate market that we believe is valuable to you and helps aid you in your decision as to whether or not to buy and sell real estate.  Also, our thought is it gives you something to talk about around the office, with your neighbors or at cocktail parties! 

• But what do all the numbers and terms mean you may ask?  Well, here is a quick guide for you going forward.  The numbers we quote are for the areas our offices conduct a majority of their business.  These areas include Arlington, Fairfax, Prince William, Loudoun, and Fauquier Counties plus all the cities in between like Alexandria, Falls Church, Fairfax, Manassas, and Manassas Park. 
• Active inventory or resales are the number of houses for sale where the owners are selling their homes and not a builder. 
• Month’s supply of houses is the absorption rate or sales of homes divided into the number of active properties on the market.  Basically, if no other houses came on the market, it would take that many months to sell all the houses that are for sale.  As a general rule, 6 months is considered to be a balanced market – neither a buyer or seller’s market.  Less than 6 months is considered to be a seller’s market and more than 6 months is a buyer’s market. 
• Days on the market are the average number of days on the market it takes for a house to sell after going up for sale.  Again, typically the fewer the average days on market the more likely it is to be a seller’s market and the longer the average days on market is typically indicative of a buyer’s market.  In addition, the fewer the days on the market of a particular home, the more likely the sellers are to receive a full price offer or even multiple offers. 
• This brings us to multiple offers.  It is what it says.  The owners received more than one offer to purchase the home when it was put on the market for sale.  How does this happen?   Typically it is because of high demand for an area because of the school district, location to commuter routes, shopping, etc. along with the sellers pricing the property properly, getting the home in the right condition and the staging of the house that makes this possible.
• Distressed property inventory are houses that represent short sales and foreclosures.  A short sale is when a home owner owes more money on the house than what the house is worth and they are trying to get their lender(s) to approve a sale for less than the amount owed to them.  A foreclosure is where the owner of the house stopped making payments and the bank took the property back through a series of steps required by the state and allowed through the deed of trust.

If you have any other questions or concerns about the numbers or the terms discussed monthly, feel free to contact me.  As Sy Sims used to say, “An educated consumer is our best customer”.

An Xplosive amount of information!!!!!

We recently went to the Xplodethis Conference – a quick hitting, action packed, content rich event that offered the latest in real estate technology and some of the best speakers in the industry.  Here are the notes that will be helpful to you and your business!

MRIS – 12,000 agents have not done a transaction in the last year, 13,000 have done fewer than 3 transactions – basically 40% of agents don’t do the business!  If real estate is your business, technology is your platform – you have to get on the technology bandwagon to be successful!

Mobile is where it’s at for the consumer AND agents – have data on demand in your hand!  We are still in a people business – technology only helps you communicate.  In the next 3-5 years, more searches will be done a mobile device than PC. 

Study of consumers:

1. Last 10 years - #1 complaint is not enough or lack of communication
2. This year – consumers feel they are MORE educated about the product than the agent

Top 5 uses of tablets

36 new tablets will be released this year in this market – top 2 – Ipad2 and Motorola Xoom

1. Data on demand
2. Real estate searches – Realtor.com has high res. photos
3. Planning calendars/Contacts
4. Presentations – shows content and value
5. Video capability

Top 9 Apps

1. Realtor.com – can draw a circle around where your clients want to live
2. ReaddleDocs/PDF Expert –iPad – opens PDF files
3. Sign my pad – iPad – signature application
4. Karl Jeacie’s Mortgage calculator
5. Evernote – voice audio now
6. Dropbox
7. Cam card
8. Cam scanner
9. Hootsuite – manages all posts to social media

Today’s consumer is multi-media, multi-taskers – find people who would not normally find you

• Watch TV while surfing the we
• Surf magazines and scan QR codes
• On phone and laptop at same time
• 85% of people find your website other than direct search
• Your marketing shouldn’t cost you money, it should make you money
• Check out Agents of Change

Let people know you are Realtor – direct FB, Twitter, Linkedin to your blog where you talk about real estate and incorporate 365 things to do in your area

Use video – neighborhood videos, personal videos of clients about neighborhoods, schools, etc.

Use location – 4square and learn how people are looking to find locations

Use Twitter – use as an educational tool to do your job better – research think tanks, follow experts, get information and share and use in your business.  Find answers for people

Blog – neighborhoods, business, and valuable content so you receive leads!!!  Work your butt off as it is not a magic pill be consistent, be persistent and don’t quit – don’t be afraid to have an opinion – find a unique place and unique vision.

Google –

• Google.com/Picasa – group resizing, renaming, add to Google maps, collage, add to Facebook, post to Youtube movies
• Google.com/Voice – transcribes voicemail, sends text message and you can call back
• Google.com/Latitude – lets you see where someone is at all times with their permissions
• Google.com/Sync –allows you to sync all mobile devices at one time to calendars
• Goog.gl – URL shortened – similar to tiny URL – creates Analytics and QR codes automatically
• Google.com Maps – you can send maps to their GPS or as an email look at Matt’s video on how to use this feature www.
• Google.com/PowerMeter – monitors the power usage at your home but needs to be compliant with power companies
• Google.com/Add URL – use for adding every post you put on internet
• Google.com/Alerts – monitors information on what you want to follow and helps you monitor your online reputation – yourself, your listings & share with your clients, your company, your competition
• Add where your listing is located – Vienna, Fairfax County, VA – in MRIS to get better mojo in Google
• Google.com/Places – add your business address and you can get analytics from it as well

14% of people trust what you say about 91% believe what others say about you – peer recommendations are so important today – go to rate-an-agent on Google and see what happens.

Sites where agents can be rated – you are being rated so you better check out what people are saying about you

• Homethinking
• Incredibleagents
• Ratemyagent
• Mountainofagents

Need to have a plan to ask to recommend you – please go to www.blah/blah/blah.com and ask to recommend you there…Don’t take my word for it – see what others say!

Solution

1. Compete.com – search to see which site is best
2. Facefied.com – aggregates all of your reviews so you can put a badge on your email, website, etc. and have people look at and review you

People want sold data from your website

302 million people are considered mobile users – more texts are sent than phone calls being made

Mobile web is growing 8 times faster than traditional web did 10 years ago.  Incorporate mobile into your listing presentation and speak about your solution to this for your clients.  Lower bounce rates and higher capture rates with mobile website.

Video optimization – video=leads=$ - video houses, your profile, and testimonials.  It’s not about what you think – it’s about what they Google!  Become a local provider of content that national companies don’t have the capability to provide.

Universal SERPs Results – 84% Informational – 18% Navigational – 8% Buy from me sell with me – do “how to” videos.  Do “Town Tours” – restaurants, schools, politicians, shopping centers, new homes, etc. and tag them properly.

Most Googled term is “how to” – how to move, how to fix a plumbing issue, how to anything and

Clients want to see video 6 times to 1 over text.

84% of rankings on Google come from Youtube videos

Keep it short – under 2 minutes, use fluid head tripods – no Blair Witch production, make it slow when panning & tilting, don’t zoom in and out, always be in focus, have external microphones, lighting – use white balance/Iris, Rule of thirds – be off to one side or the other but not in the middle.  Rotate male and female voice overs if you are going to do voice overs.  Talk about benefits and features not the layout because they can see it in the video.  Always use studio lighting to hide shadows.  Make videos about what the consumer wants!!!

RPR is for Realtors only and provides tons of content for our clients – gotta see to believe!

Tips for a better website

• Quick to load is important
• Don’t want to have to scroll side to side to see all of the content
• Upper right should be content information – your contact information is preferred here with a form to contact you
• Don’t use stock photos on your site
• Use video or professional photographer
• Work for the client not the commission – don’t use these things (don’t use honest, integrity, etc.)
• Don’t use featured listings
• No one cares what you look like – photos of you shouldn’t highlight site
• Website shouldn’t be built to appease sellers it is used to get new clients
• Consumer wants to search – giant section and easy to find
• Valuation models on site too
• How’s the market?
• Hyper local information on site.
• Use Madlib example on your forms
• Tribusgroup.com/shredder – thanks Eric

QR code on brochure box flyers should drop you into your mobile website

• Have a personal website
• Actively market your website
• Get mobile
• QR codes on fliers
• Get social on your website

Use tools that work best for you – video, digital signatures, and mobile devices are extremely critical today for Realtors to use and understand – don’t forget to USE YOUR OWN BRAIN

iPad is a great tool for agents to learn AND use effectively

Marketing and prospecting in real estate – how we receive information today is different than in the past but people still want to be reached out and touched.

If you are a knucklehead in the office you are probably worse on line

Every form of marketing reaches a specific audience – know who you are trying to reach and why.

AVM’s are strictly a baseline and are still not quite there.  Let’s you know if you are in the ballpark but remember they have a huge margin of error.  Set expectations of everyone in the process that there is a margin of error.

Use RBIntel to help support your offer or make a better one!  The stats go back 5 years…

If I were starting today – where would I begin to build an online presence?

• Make it easy to search for homes
• Create community landing pages
• IFrame search into your listing page
• Need lead capture – don’t have outside links on your site
• Get local – talk about the community
• Create content want to share
• Publish more
• Measure your results
• Do a self-audit of your website

Social Media is relational not transactional

• Provide real time breaking news in their city
• Things to do/events
• Every deal in driving radius of their house
• Automate your updates – maintenance free
• Social commerce – groupon/living social $25 for $1,000 cash back at closing when buying or selling a house with RE/MAX Gateway
• Social discovery – drives social commerce
• Airbnb is the Groupon of 2011 and will create real estate liquidity – your room for rent, your basement for rent, etc.
• Become a media star through automated messages
• Become indispensible resource to your clients

Track your customers, leads, contacts through CRM

Leads are:

• Bogus
• Suspects
• Or real prospects

CARMA – Client Acquisition Relational Management Acquisition

Initially set up as a forecasting tool for Fortune 500 companies to project earnings

Understand CRM

• What
• Why
• And, then how

A good CRM system integrates MLS data and transaction data

Intangibles of success in real estate

• Likability – can you control it?  Yes!
• Be intentional about your actions – if your actions depended upon someone liking you or not and this determined whether or not you were able to feed your kids do you believe you control your actions
• Perception is reality.  There is a perception of you in the marketplace and you can’t control it – craft your message you want others to believe and get the perception to the public.

Reason for success of top 100 companies

• Speed of implementation of systems
• Take action

CRM is a strategy for managing a company’s interactions and engagements with customers, prospects and clients.

Today we are dealing with Social CRM – advocacy, experience, service support, marketing, PR, sales on a relational basis.

Involves technology to create the best type of CRM

1. Organize
2. Automate
3. Synchronize business practices

Success marketing – putting your plan on paper

How many lead sources do you need to be intentional and direct about growing your business – 4 to 6 – these include but are not limited to your sphere, niche market, online, networking, farming, etc.  Put them in groups and market to them differently.

What data should you collect – personal profiles, demographics, and conversations.  Why?  To build the relationship!

What do you send to whom and when.  Think about this seriously.

Stop drip campaigns and create or start a two way conversation.  Send valuable content, have a call to action, and the human interaction is critical.

Communicate to connect with people, don’t talk at them!

E+R=O

E=Events in your life

R=Response to those events

O=Outcomes

• Events happen to everyone
• It’s not the events that cause you to be or feel the way you do, it’s your choice of response
• There are always at least two responses to every event

How do we learn how to react?  Parents influence is the number one way they respond.

Nobody makes do you anything – you choose your response.  An example is “he made me so mad” – he didn’t make you mad, you chose to be mad.

Everyone has an emotional checking account – think, is there a different way to respond to events?  Our account is full at the beginning of the day and the events we encounter make us write checks for each one we have.  Think before you write you check and don’t write a $5 check for a $.50 event.   

Don’t let self-help turn into shelf help – use what you learn!

Wrap-up – get yourself a mobile device.  By 2012, more people will use mobile devices instead of personal computers.  We are in a “freeware” environment but it will become “payware”.  Data is king – provide the right tools to get the right information out clients.

In today’s ever changing real estate market, you need to stay ahead of the curve.  Get it?  Got it?  Good!

Now, go sell something!

What have people been asking about the market lately?

There a few topics being reported by the media recently and we have been asked about as real estate professionals as well.  One is “is there going to be a double dip in housing prices?” another is “has your market hit bottom and how can you tell?”, “where are the foreclosures?” and “what do you see is happening in the market?”

Let’s answer these one at a time.  First, is there going to be a double dip in housing prices?  The answer is yes and no.  It depends upon where you live.  If your area continues to lose jobs, houses continue to languish on the market, foreclosed properties and short sales dominate your housing sale’s landscape, yes your market has a very good chance of seeing a double dip in housing prices because, unfortunately, these are all recipes for housing price declines.  As a nation, we have seen the overall housing prices drop 33% from their highs which is even worse than the depression era when housing prices decreased 31%.  Conversely, if you have job growth, brisk housing sales, and the housing market is not riddled with distressed properties, you will see stable to increasing prices.  It is a simple formula – jobs equal a strong housing market, no jobs equals a lousy housing market and consequently price declines.

The next one is, “has your market hit bottom and how can you tell?”  This one can be answered very much like the first one.  Are jobs coming back or have layoffs stopped?  Are people moving back into your area?  Are sale signs turning to sold signs?  How are the inventory levels on houses for sale?  With this question, be sure to take careful consideration of whether the houses were removed from the market or actually sold.  How are the days on the market?  What is the month supply of houses?  If these areas mentioned are flat or decreasing, you have seen the bottom or are getting close to it.  You are almost there if you are not already.

The last one is more difficult to answer, “Where are the foreclosures?”  We have been told on numerous occasions that banks are sitting on inventory waiting to release them on the market but fail to do so because they don’t want to take the losses on their books all at one time.   We have heard stories of the foreclosure process taking in excess of 400 days in certain states and evictions in others taking up to 900 days.  There are in excess of 6.5 million people 30 days late or more on their mortgages.  We don’t know how many will cure, how many will default or even specifically where they are but it has been reported that a majority of them are in the sand states.  The sand states make up Nevada, Arizona, California, and Florida.

Most everyone you hear from in the media, speak with or read about all concur that we need the housing market to come back so the economy can recover fully.  It seems to be a growing consensus amongst our Realtors that the media needs to help grow consumer confidence in the housing market and get the economy back on track.  In one of my upcoming blogs, we will discuss mortgage reform and its impact on the housing recovery.

It is time to understand the housing market so you can intelligently discuss this with clients, acquaintances, and others you meet.  Get it?  Got it?  Good!

Now, go sell something!              

Great minds, great information...

Between Freddie and Fannie there are still 218,000 foreclosures set to come on the market.  As reported in Creative Real Estate Daily, in terms of Fannie, just as we were so surprised and pleased that Freddie Mac had actually turned a profit in the first quarter of this year (see the article, “Did I Miss the Freddie Mac Bake Sale?” posted last week), Fannie Mae comes out with its first quarter numbers. The GSE had a loss to the tune of $8.7 billion in the 2011 first quarter! It’s enough to make you want to do a Donald Trump on the agency—you’re fired!

Fannie Mae says this was mainly because of declining home prices in that quarter. Really? Would that be the only reason?

With needing to draw additional funds to cover these losses, Fannie Mae’s draw on the government piggy bank (since the government seized control of Fannie in late 2008) has now reached nearly $100 billion.

Fannie Mae’s first quarter production numbers look like this:

• 51,043 loan modifications
• 78,000 single-family loan workouts  (including  60,000+ home retention solutions)
• 17,120 short sales and deeds-in-lieu of foreclosure
• 53,549 REO properties gained through foreclosure  (up nearly 8,000 from the 2010 first quarter)
• Total single-family REO inventory (as of Mar. 31, 2011): 153,224 with a value of $14.1 billion.

Dave Liniger mentioned at the Catalyst Conference that Bank of America is holding 700,000 properties that are 90 days late – not sure what other banks are holding.

The big question is – how many are here locally?  How will it affect our market?  How will it affect our prices?

RealtyTrac has released the results of its statistical study on which U.S. cities are the best places to buy foreclosures in 2011. It started with the 100 most highly populated metropolitan areas, and then used a 10-category criteria of things like unemployment rates, foreclosure activity, and sales prices to narrow the field. The result is the 10 best cities to buy and invest in foreclosures this year:

1. Akron, OH
2. Rochester, NY
3. Buffalo, NY
4. Cleveland, OH
5. Portland, ME
6. Milwaukee, WI
7. San Jose, CA
8. Memphis, TN
9. San Diego, CA
10. Durham, NC

Guess what, we aren’t in here which is good for us!  Thanks for the update Creative Real Estate Daily!

Microsoft bought Skype for $8.5B – Wow! EBay Inc. bought Skype in 2005 for around $3.1 billion but took a $1.4 billion charge for the transaction in 2007 after it failed to produce.  Regardless, jump on board Skype - 107 million users Skyped 207 billion minutes.  Also, when communicating with people 55% of communication is physiological, 38% is tonality and 7% is words.  Emails and texts can get misconstrued, get in front of your clients or get them on Skype – it’s free!

State attorneys general are holding meetings with the nation's largest mortgage servicers this week to negotiate a settlement agreement for the robo-signing issues that surfaced last fall.  Speculation on the combined fine amount ranges from $5 billion to $20 billion.  The services include Bank of America and Wells Fargo among other banks.  Stay tuned for more details.

Mark Zuckerman of Facebook looks to have purchased a $7,000,000 home in California.  Not too shabby for a 26 year old!

Online real estate brokerage Redfin has removed 42 agents from its partner referral program due to mixed customer reviews, the company announced in a blog post Friday.  Redfin also axed eight partner agents for creating fake customer reviews – integrity counts.  We just have to get them to not rebate back to buyers off the HUD!!

Home Alone house is on the market for $2.4 million!  Great house, great neighborhood, bratty kid not included!

Mortgage rates are at this year’s lows, purchase mortgage loans are up and I know Leslie Wish will tell us all about it and MARS has reared its head again and I know Sadaf Saberi and Ryan Koppel will cover this topic for us as well.

You now have great information to help you with your business and to talk with clients about to show you are the expert.  Get it?  Got it?  Good!

Now, go sell something!

 

Got Short Sales? What you need to know...

 
 
We had another outstanding training on Friday, this time on short sales.  Jane Clawson and Sara Rodriguez put on an informative meeting that went over 1.5 hours on how to increase the chances of your short sale getting to settlement. 

First thing to know is that although short sale/distressed property inventory is down locally and has been decreasing over the last several weeks, they are going to be a part of our residential landscape for the next 3 to 5 years.  So whether you like to deal with them or not, you need to learn how to deal with them appropriately to get the best results for your clients whether they are buying or selling houses.

First things first, set the right expectations for your sellers.  In today’s market, short sales are taking a very long time to complete, banks are not necessarily releasing people of their liabilities, they are providing 1099’s at closing, they have been asking for interest free loans for a portion of the balance owed and most importantly, they need to be upfront with you.  Are they current with their payments – if not, when was the last time they made a payment.  Also, how many loans are on the property, are there any judgments against the property, and are they current on their HOA or condo dues.  Just so you don’t have any complications at the last minute, ask them to speak with a reputable bankruptcy attorney to make certain this is or is not an option for them.  Speak with the bank about a potential loan mod as well.  Lastly, speak with an accountant about potential tax liabilities of the short sale. 

In order to give yourself the best shot, fill out the owner’s bank paperwork –not forms you develop or others that you may have picked up at a seminar.  The best way to expedite this part of the process is to go to shortsalesuperstars.com.  They have every bank’s short sale paperwork readily available or get the paperwork directly from the lender.  Every page needs to have the owner’s name and loan number on them – bar none.  Have your title company do a preliminary HUD-1 with all charges that apply – past due association fees, well/septic fees, home warranty, agent fees, etc. because bank will push back on fees so it is better to give them the worst case scenario dollars wise upfront and provide them with a title search as well.

Follow up 24 -48 hours after you send it to ensure it was received.  The process only begins once the entire package has been received.  Ask if they have a complete package.

Harassment works – call two to three times per week.  Ask if foreclosure date is set – if so, when.  Has a negotiator been assigned?  Have they ordered the BPO yet – if not, can you call and order while I am on the phone?  Where are we in the process…whatever it is just call regularly.  Remember the person on the phone doesn’t think outside the box so work within their guidelines.

The bank is not always the investor so you need to find out who the investor is and who will be making the decisions.  Also, all banks handle short sales differently so you need to know the bank and their process – some only answer emails, some only answer phones in the morning, and others the afternoon.  Get into their routine and know how to work with them.

Other notes of interest – foreclosures can be stopped with a contract but all hands need to be on deck and work expeditiously to get it done.  Short sales can hurt your credit for 2-4 years, bankruptcy and foreclosure are both longer.  For more details on the credit situations, go to http://lindaferrari.com/.  Remember, the title company represents the transaction and not the seller so title companies will not do seller only closings.  Also, it is best to have the seller directly negotiate the outstanding condo, HOA or IRS judgments with the appropriate party as they will have the most leverage.  They are less likely to negotiate with an attorney because they will say if they can pay for an attorney, they can pay their bill.

For additional questions or concerns, feel free to call Jane or Sara at 703-448-3556 or me at 703-652-5777.  Again, keep up with trends, numbers, and processes and you will get results.  Get it?  Got it?  Good!

Now, go sell something!

 

Don't kick yourself later...stay on top of the trends!

Platinum Group April 2011

The Platinum Group is made up of Realtors from various companies that meet once per month who earn in excess of $250,000 – the true top producers in the business.  We discuss market conditions, trends, short sales, foreclosures and many other topics.  The advice given should be taken to heart if you are in the market to buy or sell as this is relevant information in regards to our market.  If you are an agent, feel free to share what we discuss with your clients.

Spring has sprung…inventory levels are up just as we had expected them to be this time of year but what has surprised me is that the level has jumped 13% in just 2 weeks.  Luckily, there are buyers out there looking to own because decent listings are coming on and off the market.  Houses are selling but the properties need be in the right condition and priced right.  Above average condition is selling – low prices are selling – if you have both they are sold, if you only have one or the other you are sitting on the market.  It is imperative now more than ever to understand this scenario.  If you don’t, the house will stay on the market.

Although inventory levels are rising, the good news about our market is that foreclosure and short sale activity have been stable and are making up a lower percentage of the inventory available.  I am not completely sure if we have seen the bottom on this or not – my experience and what will be written about later also indicate we are not completely out of the woods in regards to distressed properties.

In the price range $475,000-650,000, there has been little to no activity in Centreville/Chantilly…first time buyers are buying and the wealthy understand the value of the market – interest rates, property values, etc. so they are buying in upper price points.  The reason for this being a difficult price point is because of lack of move up buyers in the market today.  Many move up buyers over the last 3-4 years have either short sold or got foreclosed on so there is now a void in the market – it may take a few more years for this segment of the market to recover – stay tuned!

Sellers are more willing to do work today – they are watching home improvement shows, are  going on line and look at other properties and how they are presented and making the house show to attract buyers.  Putting the home in model condition is the key.  Decluttering, neutralizing colors, sprucing up the yard, packing up belongings and getting a storage unit are the keys to getting the house in the right condition to sell.  I find it interesting that we spoke about this on more than one occasion this month.

Be careful how you load you photos – some internet sites only pull the first 5 posted on MLS.

Foreclosure releases are slow and have been since November.  Many people are still in the house because they know they can stay in the house and not pay any mortgage or rent and cash for keys is nowhere near the savings of not paying at all.  In reviewing the paper and in particular, the public notice section, more foreclosures are likely to come on the as filing notices are increasing in the paper.  Fannie Mae is sitting on 162,000 properties valued at $15 Billion.  All total with banks, and Freddie included, there is over $1 Trillion inventory.  Obviously, these numbers are national numbers – we are looking into local numbers so stay tuned.

To understand the consequences of short sales and foreclosures, go to www.lindaferrari.com she has all the potential scenarios.  Your credit score may be the least of your worries.

Interest rates are projected to be in the range they are today through the summer which should help us absorb the increase in inventory levels this time of year.

This is valuable, timely and informative which needs to be acted upon and/or shared.  Get it?  Got it?  Good!

Now, go sell something!

Shakespeare said it then, Scott says it now

To blog or not to blog – that is the question.  My answer is to blog. There is business to be gained by blogging.  What is important to keep in mind when posting is what is the purpose of your blog?  Are you looking to pick up buyers or sellers, be a neighborhood expert or do have another goal in mind?   Whatever it is, keep this as your focus in every blog you post.

My belief is it is our job to let the consumer read what they need to read, hear what they need to hear and learn about what is really happening in the market from the experts and so they don’t get wrapped up in what the media wants them to read, hear and see.   The media’s job is to sell negative information and not plant the right seed.

What can you blog about?  Neighborhoods, client interactions, success stories, your listings, homes you have previewed – deal of the day or week, life experiences, your interactions with others or anything else you find interesting or think someone else may find interesting. 

Why is it important?  It is important because the consumer goes to the internet to get information on everything – not just houses.  This being said, when they are looking to make one of the biggest decisions of their life, don’t you think they will do more research on this topic than not?  This is why blogging is important.  Get your word out to others on where the market is – don’t be afraid to make your opinion known.

Who is reading blogs?  As previously mentioned, the consumer but also other are people you will invite to read it – past clients, other Realtors and real estate professionals, your sphere of influence and people interested in the neighborhood or area you are blogging about.  If you make it interesting, keep it up to date, and do it consistently, you will gain readership.  Why are Realtors and other industry professionals reading blogs?  To find good referral sources for their relocating clients.  If you have a relocating client, do you help them find a Realtor where they are moving?  How do you narrow down the selection?  Typically I look at production, what their hobbies and interests are and if they match my client’s hobbies and interests, if they have a website and if they blog.  If they blog, I read their blog to determine if they are positive or negative, on target with the market and generally what their knowledge is in real estate.  The more they know in what they say and how they say it, the more likely I am to refer them.

Pitfalls – time, writing ability, how to come up with new ideas, where to get started, to pay or not to pay for your blog site, and does your company have a policy on blogging?

Good examples

Bad examples

What to avoid – negativism, writing about a specific case as it is in process, defamation of character issues

What to include – add pictures, hyperlinks and video.  Have a good title, insert good metatags and keywords.  Solve a problem or provide valuable information (housing stats, trends, pricing, DOM, companies moving/relocating into the area), say it simply and in layman’s terms not in our language, again, have a call to action (subscribe here, click here for free home search, follow us here, email me for more details here, click here for a free home buying/home selling consultation, etc. and as always, make it about them – not you!

It’s all about results and ROI on your time.  Be sure to work with a site that will allow you to track numbers such as total page views, average page views per day, unique visitors, bounce rates, referral websites and most popular pages.  Also, ask for people to share and comment on your blog and you in turn should return the favor.  Give in slices, get returned in loaves!

Things to consider now that we have reviewed blogging…How do you benefit?  What can happen?  How do you do it?  It can only produce results.  Get it?  Got it?  Good!

Now, go sell something!

How many of my 2010 predictions came true?

It’s review time for 2010…

Well, the predictions forecasted by me last year were:

• Interest rates would rise in the second quarter as the government was going to exit the purchasing of Mortgage Backed Securities .  Wow, was I wrong here, interest rates sunk to the lowest level in history.
• House values will stay stable in most price points below $400,000 and will drop in mid price points – $400,000 - $800,000.  Fewer buyers will take advantage of market conditions and consumer confidence will keep them where they are today.  Well, I was pretty damn close – prices increased slightly in the lower price ranges but definitely dropped in the mid price ranges and consumer confidence remains in the tank.
• Unemployment will rise through the first half of the year then level off late third quarter – we can’t get any worse than we are nationally.   Locally, we are in good shape with unemployment and we should hover around where we are today.  The prediction was true on both fronts and unemployment is contributing to low consumer confidence.  As the saying goes, when your neighbor loses their job it’s a recession, when you lose your job, it’s a depression – many Americans are still feeling the effects of unemployment nationally.
• Foreclosure inventory will increase nationally – ours will see a slight increase but won’t have a significant impact like it has in recent years.  Any foreclosure inventory locally will get absorbed quickly as we have such pent up demand.  Again, pretty much true, our foreclosure numbers increased slightly but boy, nationally, they went through the roof!
• Short sale inventory will be bigger than foreclosure inventory nationwide - including our area.  It is important to understand how they work, get a designation to take advantage of this opportunity and to understand how to get them through.  As predicted, short sale inventory increased both nationally and locally.  And, it is true, if you have a designation, you understand the process better and can help more distressed home owners as a result.
• More real estate offices will close, merge and we will see additional acquisitions – boutique real estate offices will become a thing of the past as agents and clients demand more technology and services that smaller firms cannot afford.  This most definitely occurred and will continue through 2011 – especially in the large regional independents and the franchises agencies with fewer than 15 agents.
• Social media marketing will be even more in the forefront moving into the future – get on board or get left behind.  The consumer embraces this medium – so should you!  Many agents have gone way overboard and although they are embracing social media, they are not utilizing it correctly and as a result are turning off consumers.
• Videos will be more prevalent in agent’s marketing of homes and themselves.  Get proficient in the use of flips, camcorders, and digital cameras that have recording features.  More agents are becoming aware of video and we are seeing more of it in the market but more need to utilize the medium as the consumer is drawn to videos.
• More agents will go green as this will become an even bigger “buzz” word going forward.  Get ahead of the curve and get a green designation today!  Yes, agents did go green but the residential market is still lagging behind the commercial arena in scope and magnitude of going green.
• More agents will exit the business as the business becomes more specialized.  This has happened which is a good thing for both the profession and more importantly, the consumer.  Today, more than ever, it is important to work with a Realtor who is full time and has the capacity to convey market conditions, trends and is familiar with the contract and process.

Well, in retrospect, the vision was pretty decent for what was going to happen in 2010. The one item that was unfortunate is that people weren’t able to take advantage of the low rates or were not in a position to take advantage of the low rates due to value issues.  However, many were which is great for them.  Be on the lookout for my predictions for 2011!  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!

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!