Scott's Real Estate Market Update

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!

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!

A walk down memory lane...

At the recent RISMedia Leadership and Social Media Summit, several of us discussed where we were from a technology standpoint in real estate and discussed what the “next” big thing in real estate will be and how it will affect our business. This got me thinking how much has changed since I got into real estate in 1988. 

Let’s take a step back in time and see how much has changed and how amazing it is to remember how we ever functioned without the tools we have today.  The list is in no particular order and none is more important than the other, but when taken on the whole, it is amazing.  The following list has made us more productive, efficient and in some cases even better business people if used properly.  If you have others, please let me know.

We used to operate with no cell phones, but technology stepped up and we used pagers to help keep us connected.  The pagers first buzzed then offered us numbers to call back which we were able to do with car phones that were attached to our consoles that took a day to install.  Luckily, technology allowed us to become mobile with cell phones and now, we finally have smart phones.  What is next?

When we negotiated contracts it was face to face with the sellers.  Next, we had the opportunity to use data grams – a service that came over our thermal fax paper machines which gave us permission to counter contracts on behalf of our clients.  Next, we were able to use fax machines, then we progressed to scan to email, and now we use docusign and other e-signature services.  In essence, we don’t have to see our clients and can even be global with our business practice!

In order for clients to see properties, we used MLS cards – postcards with a picture on the front and a very brief description on the back.  Next, we moved up to MLS books that allowed us to be somewhat more mobile, but the information was dated as it took time to print and deliver.  After this came, thermal paper and MLS printouts, dot matrix printers, online access to MLS service with logins and now to mobile search capabilities from our smart phones…what is around the corner?

In addition to these changes, the business itself has changed substantially.  Some argue for the better, some not – you decide.  At first, it was a broker based business.  The broker controlled the commission splits, the information made public, advertising, etc.  We then moved into the agent centered business where commission splits skyrocketed, the advertising and promotion was about the agent and what they could do for the client.  Now, we have entered the consumer based business where everything is about the client and how we can serve the client and provide them with as much information as quickly and efficiently as possible.

Let’s look at access to properties.  First, it was all appointment only or agents had to pick up the key from the listing office.  Next we saw combo lockboxes enter the marketplace.  Then, in order to protect the sellers more, we were issued circle keys.  When these became easy to replicate, we move to the combo bar system, and now we utilize electronic lockboxes of many varieties.

The controlling of Information started with the broker controlling data to clients then agents were allowed to pass information to clients and now information is controlled by the internet.  The internet offers virtually endless information through blogs, websites, idx feeds, vow’s, public records and even more sources.  It is critical for agents to be on top of their game at all times when speaking with clients.

Wow, think about how much lead generation has changed.  It used to be we used the newspaper, cold calling, door knocking and open houses to generate leads.  Then agents took on geographical farming to gain recognition which lead to agents working their sphere in various ways to obtain leads.  The onset of the internet lead to pay per click and other pay for lead sources and this area continues to blossom through lead generating websites.

The whole technology realm is amazing in itself.  We mentioned pager and progression to smart phones but how about in the office and on the road?  We have gone from office computers to personal computers to laptop, tablets, netbooks, ipad, and mobile apps – the possibilities seem endless at this point.

Marketing used to be almost strictly all newspaper advertising.  Then we utilized direct mail, billboard advertising, bench marketing, bus and car wraps and other forms of mass advertising.   Agents have become more practical in their spending habits by utilizing marketing to their sphere, developing email campaigns, embracing social media outlets.

There used to be no websites then we had company websites which paved the way for agent websites, and now we have multimedia social interaction with our clients.

Our offices used to be brick and mortar offices often with multiple locations.  Next came the mega office concept where brokers consolidated into on large location.  As the market and technology  changed , offices downsized.  As more agents began to work from home, wireless access points and wireless cards have become available, café offices have emerged.

Initially, the way we worked was as Individual agents.  As our businesses grew, assistants became more prevalent and more of a necessity.  When lifestyle options and life balance became more important, buyer agents and listing specialists lead to forming mega teams.  As technology emerge virtual assistants also offered alternatives for agents to be more efficient.

 Our education avenues have also changed.  We were first taught to use the Haines directory, work expired listings and FSBO’s.  Then we took our education on the road and obtained designations.  Next we worked on database development, social media development.  Our travel then gave way to on line training through RSN and other correspondence classes.  These have lead the way to webinars, techinars, and streaming video trainings.  Also agents have developed mastermind groups to grow their businesses.

The agent’s compensation plans have also changed drastically.  Initially, commission structures started at 50/50.  Then we saw graduated commission levels based upon production and then the 100% comp plans with a monthly fee.  We have also seen transaction fees become part of our compensation plans.  There are also plans where agents are on a split until the company reaches a level acceptable to them known as a CAP schedule and we also see hybrid forms of these plans.

The world of financing also needs to touched upon.  It used to be 20% down loans, cash, VA loans, and FHA low down payment loans.  In addition to these, we had buy downs, high seller consessions and then guidelines changed.  We had 100% loans, 80/10/10, 80/20, 80/15/5, NINA, 106%, There were COFI loans, Balloon payment loans, interest only loans and now we have the tightest loan guidelines we have ever seen.

The marketing of houses has also had a metamorphosis.  Initially we had simple brochures with the exterior photo taped to the page then we had 800 call capture numbers to find more buyers for our listings.  Next we were able to take digital photos and create more elaborate brochures and virtual tours.   We now market properties through videos, dedicated listing websites, text for information technologies, voicepad, and once again, social media outlets.

Advertising venues have also been through changes.  We used to utilize magazines, newspapers, published articles, hosted TV and radio shows and now we have youtube channels.

Our communication with clients and other agents has also progressed from the phone only to writing notes, then came email and IM followed by text and coupled with Facebook messages, tweets, and even more…we are more available today than ever before

As you notice, our business is always evolving which means we too need to embrace change, be forward thinking and continuously move forward if we want our business to only not survive but thrive going into the future.  Get it?  Got it? Good!

Demand Success Today

As you know, RE/MAX officials were in town yesterday.  Here is what was shared!  Click on the link for the presentation.

Demand Success Today

 

The Economy -

Right now our recovery is considered to be a jobless recovery because we continue to lose jobs yet; the economy is pulling out of the recession without creating jobs. The nation’s jobless rate won’t be back to 4.5 % until 2014.

 

Most companies have cut back and will not rehire people they let go.  The car business most definitely won’t hire their people back – everything is cheaper in China and a lot of production is being exported there.

 

Housing will have a hard time helping economy get out of recession because new home sales have plummeted so far down.

 

America is responsible for 27 % of the world’s GNP China is 7% within 30 years China will lead world in production.

 

Foreclosures -

Build your resume, contact the right people and give right presentation to get REO business

 

There are 3.5 million foreclosure filings per year expected in 2009 and 2010

 

25 % of homeowners with a mortgage are underwater

 

A huge number of commercial loan maturities are coming due in 2011 and 2012 which will put pressure on this sector.

 

Savings rate is 7 % today as a result of people’s fear over job loss, their property values being down, and they can’t use their house as a piggy bank anymore plus their 401K’s are down so consumers have become less likely to spend.

 

You can’t use yesterday’s business methods to make money in today’s market and expect to be in business tomorrow.

 

Number of Realtors -

800,000 in 2000

1,400,000 in 2006

1,100,000 in 2009

Need 900,000 for more agents to be successful

 

LIFO last in first out is a great rule for real estate when referring to Realtors

 

9.7 million Distressed properties right now,  4.7 million will sell over the next few years - many will renegotiate to stay in their properties.

 

RE/MAX has 6 % of agent total and handles 26 to 28 % of REO sales

 

Systemized and standardized process for short sales is expected to be announced within 2 business days.  This is coming from the government and discussions with Liniger.

 

NAR has a new designation to handle short sales – SFR.  RE/MAX agents can get discount on Mainstreet – contact me for details

 

Rebuild USA 203k specialists

 

There is a new foreclosure tab on remax.com.  Don’t forget to register as well as update your profiles email address, education, designation, specialties to get leads.  You must have a designation to receive leads for short sales and foreclosures – don’t delay, do it today!

 

Know your market and its dynamics –

 

Our market is predominantly 1^st time buyers and investors  - get into these business arenas.

 

Generations -

Baby boomers 3 more moves downsizing selling buying selling smaller house moving in with their kids or family members

 

Generation X –

50 % not married yet and most have no kids.  They are just now beginning to buy houses skeptical but loyal

 

Millennials –

Very different on line, no high pressure, knowledgeable, instant everything

 

 

When dealing with online leads, have the shot gun approach – send out response to 5 agents and the first to respond gets the lead.

 

80 % of Americans have nothing to retire on assisted living or nursing homes or moving in with family

 

Social media will take you to the next level take pictures of clients after settlement do portraits get busy getting involved with it today – don’t delay it is not going away.

 

The crowd was enthused – you should be too!  Get it?  Got it?  Good!