RISMEDIA, April 16, 2010—The extension of the home buyer tax credit encouraged many fence-sitters to jump at the chance to achieve the dream of homeownership this past year. Tax incentives, low interest rates and prices have made homeownership more affordable than ever, creating an influx of first-time buyers in the market. As the deadline for the home buyer tax credit approaches, many REALTORS® are wondering: what happens next?
Any seasoned professional like yourself knows that real estate is cyclical. Prices will rise and fall, inventory will fluctuate and opinions will change, but your buyers and sellers remain. And today’s buyer is more educated than ever.
According to the 2009 NAR Profile of Home Buyers and Sellers, 93% of first-time buyers started their home search online. With an awareness of the homes available prior to meeting with an agent, today’s buyers are looking for someone to help them with the parts of the process they can’t do alone. According to the survey, 90% of buyers considered knowledge of the purchase process, responsiveness and knowledge of the real estate market as very important when deciding to work with an agent.
While it is still uncertain how the market will adjust to the expiration of the tax credit, low interest rates and affordability will still draw buyers into the market. In an attempt to get you thinking about building your buyer business this spring, I thought that I would remind you of some “back to basics” to ponder:
Know your market. From inventory that a buyer may have overlooked in an online search to short sale and foreclosure options, knowing your local market inside and out can provide added benefit to your client. The current market has made more options available to first-time buyers, in price ranges that some may have overlooked previously.
Host a home-buyer seminar. Home-buyer seminars put agents in front of motivated buyers and give them an opportunity to shine as a source of knowledge and a trusted advisor who can guide a buyer through the complex process. Try setting up one through your office or encouraging agents to co-host a seminar with a local lender to explain financing issues.
Connect with buyers on their level. Not only are today’s buyers educated, but they are technologically savvy. Whether it’s a phone call or a text message, finding out a buyer’s communication preferences is the first step in setting the tone for your relationship throughout the home-buying process.
Maximize your social influence. Social media outlets like Facebook, Twitter and LinkedIn allow brokers to reach out to agents and agents to reach more buyers than ever before. Contributing to these online networking communities regularly can not only build sphere of influence but it creates top-of-mind awareness when a consumer decides to look for an agent.
Be a financial guide. From outlining key steps to suggesting preapproval, guiding buyers through the financial parts of the transaction is especially important in today’s market
Friday, April 16, 2010
Friday, March 19, 2010
Five Easy Steps to Turn Leads Into Customers
(compliments of Bob Corcoran)
We know that consumers choose agents who respond first to their inquiries. It is a plain fact. Research has proven it and yet, lead management remains the single biggest problem in real estate. The solution to the lead management problem is simple. Yet, few have caught on.
Here are five steps you can start taking today to convert leads into customers.
1. Know the goal - Agents fail to understand the goal of lead management. The goal is this: to get the appointment - nothing more, nothing less.
2. Craft a powerful experience - To get that appointment, you must craft a powerful experience for all the kinds of leads that come to you. An experience that makes them say, “Wow, that’s amazing!” Create that experience by determining what your customers want, then give them that and more. What would make them truly want to do business with you?
3. Know your “ABC’s” - Assign your leads into one of three categories. “A” leads are ready to buy or sell now. “B” leads plan to buy or sell in the next month or two. “C” leads might buy or sell in the next three to six months. Develop an action plan for each kind of lead.
4. Use technology - Even though technology is clearly essential for agents, remember this: real estate is – at its very core – a people business. So determine if the software or gadget you’re looking to buy will give prospects the experience you’ve spelled out in your plan.
5. A positive attitude. If there were a single ingredient of success, attitude would be it. Can you imagine a top producer with a bad attitude? Well, if you can, I promise you they won't be one for long. The fire inside successful agents is at the very center of their belief that they can succeed - that they will succeed - no matter what. Period. Stop for a minute and ask yourself if you really, truly believe this about yourself. If not, do some soul searching to find out what will help you believe. Because once you do, watch out - this main ingredient kicks in and you'll have all the success you can handle.
Work hard on your business, lead conversion and attitude and you can find success in today's real estate market!
We know that consumers choose agents who respond first to their inquiries. It is a plain fact. Research has proven it and yet, lead management remains the single biggest problem in real estate. The solution to the lead management problem is simple. Yet, few have caught on.
Here are five steps you can start taking today to convert leads into customers.
1. Know the goal - Agents fail to understand the goal of lead management. The goal is this: to get the appointment - nothing more, nothing less.
2. Craft a powerful experience - To get that appointment, you must craft a powerful experience for all the kinds of leads that come to you. An experience that makes them say, “Wow, that’s amazing!” Create that experience by determining what your customers want, then give them that and more. What would make them truly want to do business with you?
3. Know your “ABC’s” - Assign your leads into one of three categories. “A” leads are ready to buy or sell now. “B” leads plan to buy or sell in the next month or two. “C” leads might buy or sell in the next three to six months. Develop an action plan for each kind of lead.
4. Use technology - Even though technology is clearly essential for agents, remember this: real estate is – at its very core – a people business. So determine if the software or gadget you’re looking to buy will give prospects the experience you’ve spelled out in your plan.
5. A positive attitude. If there were a single ingredient of success, attitude would be it. Can you imagine a top producer with a bad attitude? Well, if you can, I promise you they won't be one for long. The fire inside successful agents is at the very center of their belief that they can succeed - that they will succeed - no matter what. Period. Stop for a minute and ask yourself if you really, truly believe this about yourself. If not, do some soul searching to find out what will help you believe. Because once you do, watch out - this main ingredient kicks in and you'll have all the success you can handle.
Work hard on your business, lead conversion and attitude and you can find success in today's real estate market!
Monday, November 16, 2009
INFO TO GET BUYERS OFF THE FENCE
With interest rates at record lows, plus the $6500 - $8000 tax incentive for buyers, there has never been a better time to purchase a home. Why are buyers waiting? What can agents do to help buyer's realize this wonderful opportunity? Sometimes a little basic math can plant the seed. The following is a simple but powerful analysis by Pat Zaby:
"Did you know that a 1/2% change in interest isapproximately equal to a 5% change in
sales price?"
This is a powerful statement that can help you get buyers off the fence. Buyers need to realize the importance of the relationship of interest rates to the monthly payments.
Change in Interest vs Reduced Sales Price
Purchase Price $200,000 / Term 30 Yrs.
Interest Rate Payment Increase in Price
5% $1073.64
5 1/2 % $1135.58 5%+ = $1127.33
6% $1199.10 10%+ = $1181.01
An increase in either interest rates or prices can add significant dollars to monthly payments. This is the message to buyers who are waiting for the "bottom".
Professional agents know the numbers and use them to educate their clients.
Wednesday, November 11, 2009
Support Our Troops on Vet's Day & Throughout the Year
Veteran's Day is a day to loudly and proudly honor all of those who have bravely served our great country.
This year, while we're remembering all of those who have served in the past, let's also do something to support our current active military.
Don't have any ideas of what you could do? Well, here are just a few to get you started:
- Send a letter or care package. There are several websites that you can check out to get you the right information for this. You can check out www.anysoldier.com, www.letterstosoldiers.org, and www.amillionthanks.org.
- Donate blood for troops in combat. There are blood banks and blood drives all over the country on an given day. Your blood may stay within your community, or it could be the life-saving nectar for someone protecting your freedom. You can check out www.militaryblood.dod.mil for more info.
Offer up your unused frequent flyer miles at www.homemiles.org. This could not only get a soldier home for a little much needed R & R, but it could save us (taxpayers) a little dough, too.
Volunteer to foster a military personnel's pet through www.netpets.org/militarypet/foster.php.- So many of their beloved pet end up in shelters because they are leaving the country and can't take them along. How awesome would it be for them if someone could take care of their pet while they're away, and then when they return, their pet is waiting for them! I'm certain that's one of the best welcome-home gifts -- especially if their animals are their family!
- Donate sports equipment, games and more to the troops through www.give2thetroops.org. They do have some down-time, and while it isn't much, I'm sure it would be really nice to get a taste of home by being able to get a flag-football or basketball game going.
And don't forget to say THANK YOU to all past and active military this Veteran's Day (and after)!
Tuesday, November 3, 2009
Getting Back to Basics - Fall 2009
Over the past three years we have seen a repricing of property values as well as an adjustment of attitudes. Our new real estate reality is a reversion back to the past, to the basic fundamentals of acquiring real estate. Do you remember these practiced principles?
* Make a sizeable down payment. Be prepared to make at least a 20% down payment. This will pay off in the up-cycle with higher equity, lower payments, and better interest rates. If you are purchasing a condo, be prepared to put 30% down.
* Buy within your budget. Just because you're approved for a mortgage amount doesn't mean you can afford the home. The three C's of mortgage lending are credit, capacity and collateral. Also, a safe mortgage has traditionally been one where the mortgage was no more than three times the buyer’s annual family income. Dave Ramsey says it should be no more than a fourth of your monthly income.
* Buy & Hold. The industry still has some pain to endure, and now is not the time to think “fast buck.” We still have a plethora of distressed properties to sell off, but prices are stabilizing. Your plan should be long-term. If you have investment properties, don’t forget about 1031 Exchanges.
* Know your market. Real estate is truly local. While it’s great to know national housing trends, these trends are not necessarily locally pertinent. Know your market's driving forces: comparative sales in specific neighborhoods, local job outlook, distressed properties sales, average percent reduction from list to sale price and price changes. These create a local story that needs to be understood.
* Watch for signs in the next cycle. From 2000 to 2005, U.S. property values increased by an average of 53%, with many markets far exceeding that, including California at 109%, Nevada at 94% and Florida at 90%. That party ended abruptly, and the ripples are still being felt. Continued home-price run-ups year after year should raise a big, red flag.
The Fall season looks to be very promising especially if the $8000 Tax Credit is extended. Now is an excellent time to buy - CALL A REALTOR to help you with any of your real estate needs.
* Make a sizeable down payment. Be prepared to make at least a 20% down payment. This will pay off in the up-cycle with higher equity, lower payments, and better interest rates. If you are purchasing a condo, be prepared to put 30% down.
* Buy within your budget. Just because you're approved for a mortgage amount doesn't mean you can afford the home. The three C's of mortgage lending are credit, capacity and collateral. Also, a safe mortgage has traditionally been one where the mortgage was no more than three times the buyer’s annual family income. Dave Ramsey says it should be no more than a fourth of your monthly income.
* Buy & Hold. The industry still has some pain to endure, and now is not the time to think “fast buck.” We still have a plethora of distressed properties to sell off, but prices are stabilizing. Your plan should be long-term. If you have investment properties, don’t forget about 1031 Exchanges.
* Know your market. Real estate is truly local. While it’s great to know national housing trends, these trends are not necessarily locally pertinent. Know your market's driving forces: comparative sales in specific neighborhoods, local job outlook, distressed properties sales, average percent reduction from list to sale price and price changes. These create a local story that needs to be understood.
* Watch for signs in the next cycle. From 2000 to 2005, U.S. property values increased by an average of 53%, with many markets far exceeding that, including California at 109%, Nevada at 94% and Florida at 90%. That party ended abruptly, and the ripples are still being felt. Continued home-price run-ups year after year should raise a big, red flag.
The Fall season looks to be very promising especially if the $8000 Tax Credit is extended. Now is an excellent time to buy - CALL A REALTOR to help you with any of your real estate needs.
Wednesday, October 21, 2009
Real Estate Tidbit
Among Realtors who earned at least $100,000 last year, 9 in 10 had been in the business for at least six years. (Source: 2009 NAR Member Profile)
Friday, October 2, 2009
Managing Leads
Why do some Agents struggle to sell five homes in a year and others sell 100? Two words: Lead Management.
Frankly, getting leads isn't that difficult. You can generate leads all day and night through your website, advertising, word of mouth, yard signs - on and on. The tougher job is managing leads. In fact, converting leads is the number one issue affecting the sales profession across all industries - real estate is not alone.
That's why the best investment an agent can make is in an effective lead management system - it is the kitchen for the restaurant. It doesn't have to be the latest, greatest high-tech gadget on the shelf. Ask yourself, "Is my system helping me achieve my sales objectives?" If not, it is time to invest in one that does.
Consumers want it both ways. They want to look at what's out there for sale without being bothered by a sales agent. When they are serious about buying, they want an instant response to any inquiry.
That's why most successful lead management efforts include a drip mail campaign to keep your name in front of the prospect (and in your database), even when people leave only an email with no phone number. When they give a phone number, you can make initial contact with a quick call and learn valuable information that will help structure your plan for further contacts through emails and periodic calls.
If someone is shopping homes, actively or passively, it is likely they have filled out contact forms on other agent's site as well as yours. If these other agents are doing their jobs, they are also calling the prospects and turning on the faucet of drip emails. If you call first, you will reach a certain number of people who are ready to go. For those not quite ready to buy, you increase the likelihood they will work with you when they are ready if you put them in your database and continue to follow up by email.
Make a Commitment: I will take a look at how I am managing my leads and will make the necessary changes. Deadline: _________
Powerful article from Bob Corcoran's Facebook
Frankly, getting leads isn't that difficult. You can generate leads all day and night through your website, advertising, word of mouth, yard signs - on and on. The tougher job is managing leads. In fact, converting leads is the number one issue affecting the sales profession across all industries - real estate is not alone.
That's why the best investment an agent can make is in an effective lead management system - it is the kitchen for the restaurant. It doesn't have to be the latest, greatest high-tech gadget on the shelf. Ask yourself, "Is my system helping me achieve my sales objectives?" If not, it is time to invest in one that does.
Consumers want it both ways. They want to look at what's out there for sale without being bothered by a sales agent. When they are serious about buying, they want an instant response to any inquiry.
That's why most successful lead management efforts include a drip mail campaign to keep your name in front of the prospect (and in your database), even when people leave only an email with no phone number. When they give a phone number, you can make initial contact with a quick call and learn valuable information that will help structure your plan for further contacts through emails and periodic calls.
If someone is shopping homes, actively or passively, it is likely they have filled out contact forms on other agent's site as well as yours. If these other agents are doing their jobs, they are also calling the prospects and turning on the faucet of drip emails. If you call first, you will reach a certain number of people who are ready to go. For those not quite ready to buy, you increase the likelihood they will work with you when they are ready if you put them in your database and continue to follow up by email.
Make a Commitment: I will take a look at how I am managing my leads and will make the necessary changes. Deadline: _________
Powerful article from Bob Corcoran's Facebook
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