Real Estate Sifter

RISMEDIA, February 27, 2010—As a business coach for entrepreneurs, my clients often say to me: “I just can’t pick up the phone and call my sphere of influence.” The responses I get when I ask “Why not?” include:

-“I don’t know what to say.”
-“I can’t ask my friends for business.”
-“I have no reason to call.”
-“I don’t want to bug them.”
-“It’s not okay to call them too often.”

The following tips will enable you to motivate your sphere of influence to refer to you easily and effortlessly.

Tip 1: Have a script so you know what to say
What you decide to say may vary from person to person. For instance, the way you talk to a close friend may be quite different from the way you talk to a distant acquaintance.

There is no one formula of what to say. However, it is very helpful to have something to offer when you call. One idea that many of my clients have found helpful is to call your sphere of influence and offer to be a referral source for them.

In other words, let them know that you have plenty of connections to people who could help them. For example, you know many painters, electricians, plumbers, etc. and your sphere of influence should know that if they need any names and phone numbers, they should call you and you will be happy to provide a referral source for them.

Tip 2: Think of yourself as being “the giver”
Most of us love to be the giver. We know we will be well-received and people will like us. We also know that “giving” leads to more business.

Before you pick up the phone to call your sphere of influence, ask yourself: “what can I give to them?” One way that you could be of service to them is to offer to be a cross referral partner.

If they have their own business, ask them how their business is doing. Ask them how you could help them at their business. Ask them what kind of referrals they would like to receive. Let them know that you will do your best to send referrals to them. At the end of the conversation, you can say something like, “when you hear of anyone who’s interested in buying or selling a home, please call me with their name and number. If it’s okay with them, I will call them and make sure that their real estate needs are being taken care of.”

Tip 3: Send something of value each month
What kind of valuable gift should you send? It used to be that sending newsletters was a hot item. However, most people have gotten too busy to read a newsletter.

The selection that works the best is a colorful postcard that gives the events happening in their area. Their sphere of influence is likely to put that postcard on the refrigerator and refer to it often.

Of course, next to the list of events happening in the area is your photo, your phone number and your tag line such as “relax and let me run the extra mile to fulfill your business needs.”

Not only will you start to enter their stream of consciousness, they start to associate positive ideas with you:
-You are associated with happy events in their area,
-You are associated with brilliant bright, happy colors in the postcard,
-Your face smiles at them every time they go to the refrigerator.

Do you think they are more likely to remember you the next time they have a need for your service?

Tip 4: Don’t be afraid to call them too often
As long as you have a good reason to call, your sphere of influence will be happy to hear from you. Trust your own gut instinct about how often you should call. Many real estate gurus suggest calling people in your sphere of influence about once a month. You may choose to do that with your “A list,” the people most likely to refer to you.

Since you are sending an item of value each month, you can always ask your sphere of influence if they received your postcard. You can then follow that with, “so what event are you going to?”

Tip 5: Assume the positive
Simply assume that your sphere of influence will be happy to hear from you. Why wouldn’t they be? They are receiving a wonderful colorful, informative postcard from you each month, then you are calling and offering them something, and you are conditioning them to want to hear from you.

Assume that you have something valuable to offer- your friendship and your expertise- and people want to hear from you.

Tip 6: Be excited about your business
Remember, “desperation does not sell,” but “excitement” does. No matter what the current condition of your business, always say something like, “I am so excited about my business. I get to meet such wonderful people and I’m really in an expansion phase of my business. If you want to help out, just send people my way, I will be happy to help them.”

Tip 7: Use the Law of Attraction
To successfully use the Law of Attraction, you need to be clear about what you want. What do you want? Do you want your sphere of influence to send you several clients a month? If so, then set your intention, “I am now in the process of attracting several new clients from my sphere of influence each month.”

Do you have any opposing beliefs that you need to clear? The Law of Attraction cannot give you what you want if you have any beliefs that will oppose your desired outcome.

For example, if you want to attract an abundance of prosperity, don’t focus on beliefs such as:
-I don’t deserve to have a lot of money
-It’s selfish to want more than I have
-Money is the root of all evil
-Money can’t buy me happiness
-Rich people are usually not honest.

If you have any of the above beliefs, those are called “opposing beliefs.” Can you see that you could be doing all the right activities with your sphere of influence, but if you had opposing beliefs like these, you would not be attracting the clients and the income you want?

To get the Law of Attraction to work for you, you need to identify these old self limiting beliefs, release them and install empowered beliefs.

Here are some examples of empowered beliefs that will help you create the income you want:

-I do deserve an abundance of prosperity.
-It’s okay for me to be grateful for what I have and still want more.
-Money is neutral and can be used for good or evil.
-Money can’t buy me happiness, but I can create a better life for myself and people around me by being prosperous.
-Some people are honest and some are not. It has no relationship to whether or not they have money.

Practice repeating your empowered beliefs frequently and train your mind to focus on what you “want,” not on what you “don’t want.” If you find yourself dwelling on thoughts of scarcity, like “not enough money,” switch your focus and ask yourself, “so what do I want?” Start to notice yourself becoming more positive and attracting more of what you want.

Dr. Maya Bailey, author of Law of Attraction for Real Estate Professionals, integrates 20 years of experience as a psychologist and 12 years as a business coach with her expertise in the Law of Attraction. Get Bailey’s free report, 7 Simple Strategies For More Clients in 90 Days, by visiting www.90DaystoMoreClients.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, February 27, 2010—(MCT)—The good news is, it’s a buyers’ market. The bad news is, it’s a buyers’ market. From the rubble of the housing collapse has arisen a seemingly endless supply of houses from which to choose. Good news if you’re buyer. Challenging news if you’re a seller. Mixed news if you’re a Realtor.

The extension of the home buyers’ credit is expected to spur an increase in sales during the first quarter of 2010, normally the slowest quarter of the year, said Gary Walter, executive vice president of the Southwestern Michigan Association of Realtors Inc.

With competitive prices, low interest rates and a huge tax credit on their side, buyers are jumping off the fence. And if you’ve got a house to sell, there are things you can do to make sure they land on your side, Realtors say.

“If you’re looking around your house and you ask yourself: ‘Should I paint this room?’ you probably should,” said Ryan Arnt, associate president of Meredith and Kamp Realtors of Stevensville.

Another piece of advice from area Realtors—be reasonable about the price. And be flexible. “If you’re going to list your house, it’s going to disrupt your lifestyle pattern for awhile. You’ll need to be willing to show at a moment’s notice, be as agreeable and as flexible as possible, and put a little effort into it. The return will be worth it,” said Sharon Halliburton, broker associate with American Homes of Stevensville. She and other area Realtors say the worst is over. “I’m extremely optimistic. We’ve turned a corner,” Halliburton said.

National picture
After a surge last year from September through November, the original deadline for a $8,000 tax credit, existing home sales nationally fell in December 2009. But prices rose from December 2008 and sales overall improved in 2009, according to the National Association of Realtors.

For all of 2009, there were 5.1 million existing home sales, 4.9% higher than the 4.9 million transactions recorded in 2008, the first annual sales gain since 2005.

On the other hand, in Southwest Michigan, residential sales totaled just over $381.6 million in 2009, down 18% from nearly $465.9 million in 2008. It was the area’s third consecutive year of decline in the real estate market.

The number of single-family homes sold in 2009 was within 1% of the number sold in 2008, but the average selling price, $151,190, was down 18%. The median selling price of $93,550 was down 22% from 2008. Total closed sales, including single-family and multi-family houses, vacant land and commercial property, also dropped 18%, from $516.43 million in 2008 to just over $422.2 million in 2009.

In Southwest Michigan, Walter said prices have been influenced by the percentage of bank-owned homes on the market. He said that between May and November 2009, bank-owned houses accounted for about 35% of the total unit sales. In December that figure climbed to 45%.

Arnt said he’s not quick to steer potential buyers to bank-owned listings. “Most of the banks are willing to negotiate, and that brings down the price. But I typically tell my folks that if somebody couldn’t afford to pay their mortgage, what else haven’t they been able to keep up about the house? There’s more risk. You have to be willing to gamble,” he said.

But Art Atilla, a Realtor working primarily in St. Joseph and Benton Harbor, said there’s a reason the average number of days on the market in Benton Harbor in 2009 was 91, down 11% from 2008 and the quickest turn-around time in Southwest Michigan last year. “There’s a greater number of repossessed homes in Benton Harbor, and those are being sold off quickly because investors can pick them up for $15,000 to $30,000, depending on the location,” he said. “Is it better to have empty houses owned by banks, or have an investor buy it, clean it up and get it going? The best thing would be a for a family to buy it. But these houses need to be bought by somebody.”

Economists say the market is going through swings driven by the tax credit. The extension of the tax credit is expected to spur an increase in sales during the first quarter of 2010, normally the slowest quarter of the year. The extension gives buyers until April 30 to buy and until June 30 to close. The credit, up to $8,000, originally was for first-time buyers only, but has been extended to include homeowners who have lived in their home for five of the last 8 years. These people get up to $6,500. Extension of the tax credit adds more potential buyers to the market.

By early summer, the market should benefit from a more balanced inventory, leading to an overall rise in sales in 2010, economists say.

Jobs, jobs, jobs
But a lot could depend on the job market. Realtors say job creation is the key to a continued recovery in the housing market.

Once the home buyer tax credit ends at the end of April, and if mortgage rates rise after March, will the market be in trouble again? Since most of the fuel to the housing market in 2009 was provided by the government, does the market remain too fragile for the government help to end? Arnt predicts the government will let the tax credit expire, then launch some other incentive down the road. That might be a good thing, he said. “I think they announced too early that they were going to extend it, without letting the original one expire. There were people on the fence who didn’t get off because they heard the credit was going to be extended,” he said.

Arnt is optimistic about the housing market’s future. “Personally, I feel very confident. I think the worst is over. I think we definitely have bottomed out, and things are looking very positive. There’s buyer activity that wasn’t there 30-60 days ago.” Arnt said potential buyers are breathing a sigh of relief, having made it through the holidays with their jobs intact. “I think people are more comfortable and feel that the market has been through the worst and is on the way to recovery,” he said.

Realtors are hoping that a shrinking inventory will help improve the average sales price. The December 2009 inventory dropped 7% from December 2008. In Southwest Michigan, there are 2,803 houses listed, which equates to a 13.3-month supply. That is down from a 16.5-month supply in November 2009 and a 14.1-month supply in December 2009.

National figures for January showed an inventory of 3.29 million existing homes, 11.1% below a year ago and 28.2% below the record of 4.58 million in July 2008. Nationally, the median home price in December 2009 was $178,300, 1.5% higher than in December 2008. Economists said that was due to an increased number of mid- to upper-priced houses in the mix.

Prices stabilizing
Halliburton said, after reviewing the January figures, she’s optimistic. She said that in St. Joseph and Lakeshore, there were 26 homes sold in January, a 73% jump over 15 sold last January.

The average number of days on the market for homes sold in St. Joseph and Lakeshore in January was 99, compared to 147 days a year ago. The average sales price in the same area in January was $153,648, down just $132 from a year ago.

For the entire Southwest Michigan area, she said, the average price was up 27% over a year ago. “I’m excited. These are the best numbers I’ve seen in a long time,” Halliburton said. “I’ve been listing at least one house a week since the first of the year. My spring starts in February, marketing-wise.”

To sell your house, she said, it’s got to look better than everybody else’s on the block. “Work on curb appeal outside. Inside, de-clutter, clean, paint, all the things you’ve been meaning to clean anyway- take a third of the stuff out of every room.”

Atilla recommends “staging” a house before putting it on the market. “You get somebody with a good eye and you can cost-effectively make the home as good as it can be. Paint, rearrange furniture, add color accents, put towels in the bathroom. If you need a new roof or furnace, be honest about that in your price.”

Copyright (c) 2010, The Herald-Palladium, St. Joseph, Mich.

Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, February 27, 2010—As the Internet continues to infiltrate the real estate industry, prospective buyers are continually turning to the Web to consume information, make decisions and conduct important transactions. With a vast migration to the Web that is only likely to grow, it is crucial for real estate professionals to alter their strategy to take advantage of the Internet in order to receive quality leads. Here, Spencer Rascoff, COO, Zillow, discusses how real estate professionals can generate quality leads in today’s high-tech market.

Spencer Rascoff
COO
Zillow
www.zillow.com

I’ll let you in on a little secret—people don’t want to be leads. People want to be people, not leads. Leads are so 1995. The Internet has changed the way people consume information, the way they make decisions and, most importantly, the way they conduct important transactions.

Companies like Amazon.com, Expedia and Google have trained us to do our research in privacy and solitude, and remain anonymous until we’re good and ready to transact. Imagine if you searched for a hotel room on Expedia and all of the hotel front desks called you; or if when you searched for a television on Amazon, suddenly your phone rang with representatives from Sony and Samsung trying to sell you a TV. No, we’re trained now to expect to be able to access information on our terms, on our own timeline.

This evolution in consumer behavior has effectively made traditional lead generation extinct. Companies whose business models are predicated on the old model—where websites provided as little information as possible in order to entice you to fill out a form so they could sell your personal information to the highest bidder—will perish.

At Zillow.com, we don’t talk about “leads”; we talk about Customer Initiated Contacts (“CIC”). This is a subtle but important difference: customers remain in control when they are able to decide when and how they initiate a contact with a service provider.

As real estate brokerages start to rev back up their marketing machines in 2010, they’re likely not going to have as much of their budgets reverted back toward TV or print advertising. The housing downturn and accompanying advertising recession has accelerated the inevitable migration of advertising budgets towards the Internet.

But will online budgets move toward graphical advertising, search advertising or CIC? It’s accepted among industry leaders that CPM (cost-per-thousand impressions) and SEM (search engine marketing) aren’t the best way for real estate brokerages to market their companies. Why? Because the real estate industry wants “real” contacts, not just clicks or views.

The Customer Initiated Contact model still leaves plenty of room for the professional to communicate with the consumer. But only when the consumer is good and ready.

CIC puts the consumer in control and, ultimately, that’s also better for the professionals in the equation. First, it means that the professionals only have to talk to the consumers who pre-select them, on their own terms. Second, the consumer-first paradigm means that success of the website is much more likely, and that means you’ll be affiliating with and investing your time and money with a sustainable business. CIC is going to shake things up. It’s not your parents’ lead gen anymore.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

RISMEDIA, February 27, 2010—Freddie Mac recently released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.05% with an average 0.7 point for the week ending February 25, 2010, up from last week when it averaged 4.93%. Last year at this time, the 30-year FRM averaged 5.07%.

The 15-year FRM this week averaged 4.40% with an average 0.7 point, up from last week when it averaged 4.33%. A year ago at this time, the 15-year FRM averaged 4.68%.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.16% this week, with an average 0.6 point, up from last week when it averaged 4.12%. A year ago, the 5-year ARM averaged 5.06%.

The 1-year Treasury-indexed ARM averaged 4.15% this week with an average 0.6 point, down from last week when it averaged 4.23%. At this time last year, the 1-year ARM averaged 4.81%.

“Interest rates for 30-year fixed mortgages followed long-term bond yields higher and rose above 5% this week amid a mixed set of economic data reports” said Frank Nothaft, Freddie Mac vice president and chief economist. “For instance, the January producer price index jumped well above the market consensus, but the consumer price index remained subdued and consumer confidence declined to the lowest level since April 2009, according to the Conference Board.

“There were also varying reports as to the current state of the housing market. The S&P/Case-Shiller national home price index rose for the third consecutive quarter in the fourth quarter, albeit at a slower rate, and the 20-city composite index showed an increase in December 2009 for the seventh month in a row; six metropolitan areas experienced positive year-over-year growth, compared to four in November. New home sales, however, unexpectedly slowed in January to the smallest pace since records began in 1963, and the supply of homes at the current sales rate rose to 9.1 months, the most since May 2009.”

For more information, visit www.freddiemac.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.