Marketing Ideas And Useful Websites


Study: Real Estate Is at a ‘Historic Turning Point’

Nearly two-thirds of economists and real estate experts recently polled say the U.S. housing market is at a historic turning point. More than half say they expect national home prices to reach bottom this year and remain stable with a modest 2 percent average annual growth through 2015, according to MacroMarkets LLC’s June Home Price Expectations Survey.

MacroMarkets polled more than 100 housing experts, including Lawrence Yun, chief economist of the National Association of REALTORS®; Frank Nothaft, Freddie Mac’s chief economist; and others.

Most of the experts polled said they believe the bottom for housing prices occurred in the first quarter of 2011 or will arrive sometime before the end of the year.

While predictions varied somewhat, on average, panelists predict a 3.52 percent decrease in home prices in the fourth-quarter of 2011 compared to the same period in 2010. They predict then small increases every year through the fourth-quarter of 2015, when prices are expected to rise 3.47 percent on an annual basis.

Buyer purchasing power

By ft Editorial Staff • Jul 3rd, 2011 • Category: Charts

 

Chart last updated 7/3/11

  May 2011 April 2011 May 2010
One Year
Rate Differential

.25%
.26%
.13%

Data courtesy of Freddie Mac

A homebuyer’s maximum financial ability to purchase property depends entirely upon his down payment and the amount he qualifies to borrow from a lender. The amount a homebuyer can borrow is initially based on two factors:

  • the buyer’s income, which generally changes annually at the rate of inflation; and
  • current mortgage rates, which change constantly.

Lenders know that by one standard, homebuyers are less likely to default if they allocate no more than 31% of their monthly gross income to monthly mortgage payments. Accordingly, mortgage lenders now refuse to lend more money than the buyer can repay at that 31% gross income ratio amortized over 30 years based on a fixed rate of interest.

Read More first tuesday Analysis

California tiered home pricing

By Bradley Markano • Jun 29th, 2011 • Category: Charts

 

Charts are updated monthly. There is a two-month lag in reported data.

Chart last updated 6/29/11

Chart last updated 6/29/11

  April 2011 March 2011 April 2010
Low Tier
156
156
162
Mid Tier
155
155
164
High Tier
153
152
161

Chart last updated 6/29/11

Chart last updated 6/29/11

  April 2011 March 2011 April 2010
Low Tier
163 163 163
Mid Tier
170 170 178
High Tier
169 169 174

Chart last updated 6/29/11

Chart last updated 6/29/11

  April 2011 March 2011 April 2010
Low Tier
112 112 118
Mid Tier
132 130 143
High Tier
142 140 148

Chart last updated 6/29/11

Chart last updated 6/29/11

  April 2011 March 2011 April 2010
Low Tier
144 144 148
Mid Tier
152 152 162
High Tier
155 154 161

The above charts track sales price fluctuations of single family residence (SFR) resales in California’s three largest cities. Each city’s sales prices are organized by price tier, giving a clearer picture of how price movement in each tier of the market has developed over time.

Nationwide, March 2011 saw the lowest home prices during this recession, as reported by Standard and Poor’s (S&P). Prices hit new lows in eleven major cities, and dropped in all cities reported except for Washington, D.C.

As the S&P figures charted below indicate, prices in California’s three top cities—unlike the majority of the nation—remain somewhat higher than their worst days, when they bottomed in April and May of 2009. Nonetheless, California is trending toward the “double-dip” real estate recession currently rippling through the national housing market. Home pricing tiers reported in California remained stagnant or slipped in March 2011, and barely rose in April.

The waffling of sales volume and prices is part of the bumpy plateau recovery we will experience well into 2013.

Readers who want to understand the “big picture” of the disparity between low-, middle- and high-tier sales fluctuations will find the Standard & Poor’s/Case-Shiller home price index, represented above, to be an invaluable source of information and price comparisons for California’s three major cities. These charts track changes in specific tiers of property, so you can see how specifically comparable ranges of the market perform in comparison to one another.

Don’t Lose Your Client to Another Agent

Successfully moving a home off the sales market in today’s tough environment requires a great deal of effort from real estate professionals. When a buyer is not found right away and the property simply sits on the market for some months, however, sellers tend to blame the agent — and look for a replacement.

To keep owner-clients loyal and confident in their ability, top-producing agent and published author Pat Hiban says that being proactive goes a long way.

As such, practitioners need to fill their days prospecting, sponsoring open houses, calling contacts, and making new contacts rather than sitting around waiting for the phone to ring. That also entails accepting all networking invitations, including local community events. Every person in the room, Hiban reminds, is a potential buyer or seller.

Planning the entire week and ensuring that they are taking action each one of those days to promote their listing is also important.

Hiban believes that “activity breeds activity” and, thus, encourages agents stay busy even when the response is slow. Agents who do not get involved, Hiban stresses, do not stand a chance of succeeding.

As a final piece of advice, the author of the self-help guide “6 Steps to 7 Figures” advises real estate practitioners to not allow panic and negativity on the part of the seller infect them, too. Instead, Hiban says that staying focused and positive will help clients to do the same.

Source: “Five Tips to Make Sure Your Seller Doesn’t Switch Agents,” RISMedia (07/01/11)

Housing Slowdown? Not in Silicon Valley

Technology stock sales and initial public offerings are making residents in California’s Silicon Valley feel wealthy again as the tech boom days re-emerge, and they are using the new-found wealth to cash in on real estate, USA Today reports.

Home values are quickly rising. For example, in Palo Alto, where Facebook is based, the median price of single-family homes increased 20 percent in May from a year earlier to $1.63 million. That marks the largest jump there since 2008.

Meanwhile, in Mountain View, LinkedIn’s headquarters, home prices have continued to rise the past year, increasing 3.1 percent in May alone to $957,500.

“I suspect we’ll see an explosion in the next couple years,” says Kenneth Rosen, an economist at the University of California-Berkeley. “You’ve got young people with real money, and it’s not surprising they want to have a house.”

The biggest gains in the real estate market have been in the San Jose area and in million-dollar areas. In these places, traffic at home showings have tripled, home prices are edging up from multiple bid situations, and younger buyers in their mid-30s seem to be generating the most traffic in recent weeks, according to reports.

“The market seems to be returning to the crazy days, and the question is whether or not it is a false recovery or a sustained recovery,” says Sean Scott, a buyer looking for properties million-dollar properties in Palo Alto. “I suspect that it is a sustained recovery, given the planned liquidity events with social-networking companies.”

Is Washington, D.C. Next?

Reports of bidding wars on homes is also occurring in Washington, D.C. Real estate agents there are reporting that properties priced slightly under the market, in good condition, or that show strong renovation potential are seeing the most bidding wars.

However, “we’re not seeing crazy-high bids,” says Fred Kendrick, a real estate professional with TTR Sotheby’s International Realty in Georgetown. “It’s difficult for people to go much over the asking price because of the lack of financing. . . . In the old market, everything appraised. Today, the question is: How much over the price can you go before you run into problems with the lender?”

Some Washington, D.C., real estate professionals report that the bids compared to housing’s peak are much more conservative with two to four bidders and ranging from $5,000 to $20,000 over the sales price.

Source: “Silicon Valley Housing Market Is Heating Up Fast,” USA Today (June 24, 2011) and “Real Estate Bidding Wars Are Back in Parts of D.C. Area,” The Washington Post (June 24, 2011)

Buyer’s Guide: Branding Products and Services
A strong brand can make the difference in determining which real estate pro gets the call from consumers. Here are the key concepts and solutions you’ll need for your branding efforts.

In This Guide

To whom do people turn when they need help buying or selling property? Generally, it’s one of three kinds of real estate professionals: someone they’ve worked with before, a practitioner they’ve been referred to, or the one who has done the best job branding themselves and their business.

Building your brand is a multifaceted undertaking: creating a persona, promoting it at every opportunity, and meeting and surpassing expectations you’ve shaped about why people should entrust their real estate transaction to you. It’s part personal marketing and part positioning — and all about delivering services. After all, every licensed competitor in your area has access to the same inventory. An effective branding campaign differentiates you as the first person who comes to mind when people think real estate.

Specs That Matter for Real Estate

What makes a great brand?

Play consumer for a minute: When the subject is real estate companies, which one comes to mind?

There’s likely a distinctive logo with specific colors, and maybe a tagline defining that company or its approach. Branding starts with visual symbols, but is really about attaching positive perceptions to them. What those symbols represent — and the associated consumer expectations and experiences — make the brand.

For the real estate professional, the branding challenge is to set yourself apart from everyone else offering a comparable mix of services. Your “brand” can be your name, a flashy logo, catchy tagline, or some unique specialty. It’s the marketplace ID for you and what you do.

Think about who you are and services you provide that most others can’t and build around that. It might be defined by a market area, a particular type of property you handle, or your target clients. It can play off your name, your team, or the location of your office. Whatever you choose as your brand, it should be uniquely associated with you.

An effective brand-building campaign runs on and offline, from a prospect’s initial encounter through follow-up long after a successful transaction. Establishing your brand requires a broad-based, far-reaching effort. The key is consistency in message and delivery — the more visible your brand, the greater the chance people will remember you.

Feature that in signs, on your vehicles, Web site, social networks blogs, business cards, stations — everything you do to promote awareness and attract business. Then, back it up. If you bill yourself as the neighborhood expert, demonstrate that with Web content and blog entries. If your focus is the upscale market, your clothes, car, and equipment should project that. If you’re the relocation expert, make sure you’re the source for information about everything in the area.

The Budget section of this guide outlines some tools and services that can be used to build, establish, and promote your brand. Each provides you with a way to get your brand in front of clients and prospects, and remind them why they should call you.

Ultimately, your brand is only a symbol, though, albeit one that invites action and can generate calls. It’s the follow-through, the relationships you establish, and whether or not you deliver on all your brand promises that will make or break your business.

Brand Building 101

Focus: Step back and assess the services you and your competitors provide. What’s unique about you? Who are your target consumers? What value can you offer others aren’t providing? Is your market a particular type of home or area? Define your services, expertise, and goals, then start building your brand around those.

Create an identity: Effective brand symbols — the logo, tagline, and even color scheme — are easily recognized and recalled. These should establish some positive association with you. Don’t skimp here: If you doubt your artistic and creative abilities, entrust this to a professional service.

Promote you: Approach this as a personal effort to promote you, your services, and your personal contact information. Build your brand around a company that’s not yours, and you’ll have to start all over if you ever move on.

Mount a campaign: Your brand won’t be built overnight, but rather over time, as people learn to connect you and the symbols you’ve chosen to represent yourself with a positive experience. The more visible that symbol, the faster that process.

Take it everywhere: Signs for the yard or office are starting points. Cars and trucks can be transformed into mobile billboards with vehicle wraps. Premiums like refrigerator magnets and key chains imprinted with your logo serve as constant reminders of you and your services. Everything should point back to your Web site as the portal for local information about your business and listings. And when you’re marketing online, be sure that your brand extends beyond your business’ site. Social networking and blogs can be especially effective, as can automated electronic newsletters, which get your branding out there with minimum effort.

Get involved: The value of community involvement cannot be overstated. Sports and event sponsorship, charity donations, and volunteerism provide opportunities to show your logo and represent you as a caring member of the community.

Make short-term goals and long-range gains: In summation, use every tool and opportunity to establish your brand. It’s the cumulative effect of all these efforts that will transfer a logo into the symbol you can proudly stand behind and prosper.

Glossary

Collateral: In marketing, the support materials used to promote a brand, product, or service, such as flyers, brochures, presentations, and Web content.

Niche: That segment of the total market a brand focuses on. For instance, one real estate professional could choose the niche luxury homes in the area, while another concentrates on vacation properties and rentals. Identifying your niche is an important early step in brand development.

Personal brand: The brand associated with an individual rather than a company or team. In real estate, establishing your personal brand can be especially critical. Over the course of their careers many real estate professionals will provide similar services to clients while associated with a succession of brokerages or franchises.

Skins: Protective covers for consumer electronics devices like smartphones and notebooks that can be imprinted with any message or graphic, including a brand logo.

Tagline: A brief, easily recalled sentence or phrase that sums up the brand and what it offers.

Target market: Those buyers or sellers you want to reach through your marketing efforts. They could be living in a specific ZIP code, for example, or match a certain demographic profile.

What Others Are Saying

“The Community Center”

In the half-year since sales associate Amie Stewart of HomeSmart Realty in Phoenix launched the My Life At Lakewood Web site, it’s become a virtual gathering place for people interested in what’s going in the Arizona neighborhood.

“We’ve gotten a reputation as the go-to people about the area, exactly what we were trying to achieve,” Stewart says. She and her partner in The A Team decided the community Web site could be an effective tool for keeping their name before residents in their target market.

“We thought the best way to brand ourselves would be to focus on one area,” she says. “It’s helped with our farming. We’re now working closely with the local homeowner association and we’ve got businesses in the area as sponsors who are also helping promote the site,” she says. “We’re giving something valuable to the community and they seem to appreciate that.”

“Being Your Brand”

As soon as Linda Craft acquired her real estate license more than 20 years ago, she started building her brand. “You’ve got to decide what you want your brand to be, and for me, that was to be seen as a professional, the person people recognize and want representing them. I started with a bright red color to contrast with my naturally blond hair and a black Infiniti Q45 with a vanity plate and the tagline ‘Make Offer.’”

Today, as broker-owner of Linda Craft and Team, REALTORS®, in Raleigh, N.C., those core elements remain integral to the campaign that has established her as the most readily identifiable real estate professional in the area. Her red logo and name are fixtures on signs and a fleet of vehicles, at community events, and as an official sponsor of the Carolina Hurricanes hockey team.

“The things we do offline bring us recognition,” Craft says. “But it’s what we do online, thorough Internet marketing, where we make money.”

Craft’s Web site, as well as her blogs, videos, and Facebook and Linked-in pages and profiles are all developed and managed by Dakno Real Estate Marketing Services. Wherever she’s found on the Web, there’s a consistent look featuring her picture, logo, and contact information.

“Branding without building strong personal relationships is nothing,” she says. “People may recognize you because of your logo or picture, but they will remember you because of what you did and how you helped them.”

“Domain Name Says It All”

Visitors to LuxuryLakeHome know where The Perry Team, broker-owners of RE/MAX Grand Lake in Grove, Okla., put their emphasis. The site immediately identifies the pair as “Your Grand Lake Professionals” and local real estate experts.

Their branding and Web site is managed through the Number1Expert marketing system from Dominion Enterprises. “We don’t have a specific logo or photo like some teams,” says Victoria Perry, partner with her husband Chuck in the small company. “Everything we do is designed to get people to our Web site where they can start searching for property and learn about our services.” The domain name conveys their specialty and is featured in all their signage and ads.

When she expands her branding efforts in the near future, she’ll draw on the experience of others. “One advantage to being with RE/MAX is you’ve got a network for talking with other real estate professionals about what’s worked for them,” she explains. “They’re very supportive and eager to share what they’ve learned and show how they do it. It’s a fabulous benefit of being associated with a major brand.”

Michael Antoniak is a journalist and technology expert with a focus on real estate applications. He also writes about real estate technology at his blog, RealTechTools, and has published an e-book on Essential Technology for Mobile Professionals. He can be contacted at antoniak@dtccom.net.

3 Tips to Help Justify Your Commission to Clients

Research shows that 15 percent of sellers make decisions based on the agent’s commission rate, and another 5 percent to 10 percent are willing to pay full commission to get the best service.

However, most buyers (75 percent to 80 percent) must be shown that the agent is worth the full commission, and once they understand the benefits, are willing to pay it. When sellers tell agents they make too much commission, agents have not shown the value of their services.

Real estate practitioners would be wise to create a “premium marketing plan” that details 15 or more strategies employed to help the seller fetch the highest price in the shortest amount of time, and if sellers do not see the benefits of the plan, they should offer to refer them to an agent offering limited services.

When sellers say they do not have the money to cover the commission, agents should show them a list of expired listings, most of which have lower commissions, and explain that they pay commissions only when the home sells and it is a moot point if the home languishes on the market.

Finally, if sellers point out that another agent has a lower commission rate, agents should ask them how well could they negotiate on their behalf if they cannot negotiate a full commission for themselves, using a question to remain in control of the negotiation and to help sellers come to their own conclusion.

Source: “3 Ways to Justify Your Real Estate Commission,” Inman News (06/16/11)

Top Places for Oldest, Youngest Residents

Maine is the state boasting the oldest median age of
residents–not Florida, as most people assume, according to new Census data
reported this week. The median age in Maine for 2010 was 42.7. In Florida, the
national median age was 37.2.

However,
Florida does have the largest percentage (17.6 percent) of senior citizens,
residents who are aged 65 or older. West Virginia is second at 16 percent for
highest percentage of senior citizens. The national average is 13 percent.

Here’s a breakdown of where the oldest
and youngest populations live, according to Census data.

Oldest States
The states
with the highest median age of its residents are:

1. Maine: 42.7
2. Vermont:
41.5

3. West Virginia: 41.3
4. New Hampshire: 41.1

Oldest Cities
Based on cities
with over 100,000 residents, here’s a breakdown of cities with the oldest
populations, along with the median age of their residents:

1. Scottsdale, Ariz.: 45.4
2. Clearwater, Fla.: 43.8
3. Cape
Coral, Fla.: 42.4

4. Fort Lauderdale, Fla.:
42.2

5. Hialeah, Fla.:
42.2

Youngest
States

Which states boast the youngest
population?

1. Utah: 29.2
2. Texas: 33.6
3. Alaska:
33.8

District of Columbia:
33.8

4. Idaho: 34.6

Source: “Where People Are Oldest: Maine Tops
Florida,”
 CNNMoney (May 26,
2011)

Welcome
To The Weekly Update And More

Have you ever noticed that anyone can find data to support their own perspective or opinion? During a typical week you will hear things like home prices are down, sales are up; more houses are underwater, etc. Depending on the message you want to send you can always find the numbers to support your statement. Our favorite is:

“Inflation is benign, if you exclude food and energy prices”. OK, if we did not
have to eat or get to work this may be true. Some people don’t have to drive,
but everyone eats. There are some fundamental truths, at least in our opinion
;-). Let’s review a few of these:

1. It is a great time to be a first time home buyer. Rates are low and there is plenty of inventory; there are some great values out there and it is time to act.

2. We don’t have 500+ flavors of loans anymore however there are many creative ways to finance properties. Granted you really have to qualify for the loan now, (not the worst thing in the world).

3. We said it before and we will say it again, if it were not for FNMA or Freddie Mac we could not even imagine what the real estate market or what our nation would look like at this time. We and a lot of smarter people than us know at this time private capital is not ready to step up and fill this void. We are not comfortable yet, with the government’s proposal to abolish the GSE’s (FNMA and Freddie Mac). This week on one of the business channels there were two senators (one Republican and one Democrat) touting the replacement of FNMA and Freddie Mac with five companies guaranteeing loans. Their explanation of how five companies would function better than the two existing GSE’s was very fuzzy and non specific, typical politician speak.

4. We all need to thank the National Association of Realtors and their president Ron Phipps for taking the message to Washington and the press.

The three points of NAR’s message: Do not wipe out the home interest deduction, do not wipe out the GSE’s and do not get rid of loans with less than 20% down. Bravo and a big thank you to NAR, you go Ron! By the way NAR has some very interesting statistics regarding the housing industry on their web site http://economistsoutlook.blogs.realtor.org

Alison
Levine, Two Thumbs Up

Last week in honor of Mother’s Day, CMG sponsored the Alison Levine event and it was great! Over 300 attendees had the opportunity to be inspired by this successful business woman and world class mountain climber. Ms. Levine also makes the time to empower women in third world countries through her various philanthropic organizations. Guests enjoyed tasty complimentary refreshments and each guest received a pink metal water bottle to commemorate the event. During the Q and A time, a member of the audience commented how refreshing it was that there was nothing for sale. Sorry if you missed this wonderful afternoon, the presentation was very inspirational and informative for everyone.

It’s Like
Ripley’s…Believe it or Not!

Truth is stranger than fiction! We have a loan in process where the borrower currently owns two houses (rentals) in Antioch. One of the properties was purchased recently (October 2010) as a non owner occupied property. The borrower is being transferred by his company from San Francisco to
Contra Costa County. The new purchase will be owner occupied. The underwriter suspended the loan requesting a letter from the borrower to explain why he is not throwing one of his tenants out to move into one of the homes he currently owns in Antioch. Just when we thought we could not be
shocked by anything else! We are not making this stuff up.

It is always a good time to thank you for thinking about us. Erin and I appreciate your business and the trust you have in the Meredith Team.

Sincerely,

Kathleen

The
Meredith Mortgage Team, CMPS
®

Certified mortgage planning specialist

“We Will Always Have Your Best  Interest In Mind”   

 

Erin & Kathleen

The Bay Area’s Premier Mortgage Banker and Broker

(925)983-3048 office

(925)226-3215 efax

(925)918-0585 mobile

meredithteam@cmgmortgage.com

emeredith@cmgmortgage.com

https://meredithmortgageteam.wordpress.com

Apply For Mortgage Financing with The Meredith Team, Click Below:

http://www.cmgmortgage.com/LO/meredithteam/GetStartedApply.shtml

The Home Ownership Accelerator  is helping people pay
off their mortgage in record speed…click here

Builders Rethink Housing Designs

With new-home sales down drastically the last few years,
builders are scrambling to re-evaluate what buyers today want in new homes.
Changing demographics and tighter lending standards are influencing buyers’
purchasing decisions when home-shopping and changing their priorities, industry
experts say.

“There is a lot of pressure
today to retool,” says Steve Brooks, CEO of Grand Homes. “We have to redesign
houses and figure out what kind of product people would want to
buy.”

For example, more younger buyers are
bypassing the typical suburban tract of homes and showing a stronger preference
for urban-style homes closer to the city.

“Trying to keep doing the same cookie-cutter houses is going to be
increasingly difficult,” says
James Gaines, an
economist at the Real Estate Center at Texas A&M University.
“Home builders worry that the demand pool for the suburban
home with the quarter-acre lot and the fenced back yard will be shrinking.”

Younger buyers also are saying they don’t
need a ton of extra space in a home and that they want spaces configured
differently in homes, builders say.

For
example, the living room is on it’s way “out,” builders say, as more home owners
instead show a preference toward a game room or media room. Plus, more home
owners are finding they don’t need a fourth bedroom, which was once in high
demand.

However, not all builders believe
the “buying small” trend will last.

“With
our typical single-family buyers, we’re not seeing them willing to give up much
room,” says Bill Darling, a builder in Plano, Texas. “We have seen them willing
to put fewer bells and whistles in the homes.”

Some builders are focusing on ways to cut maintenance costs of home
ownership too by setting out to build more homes that are more energy efficient.

Source: “Stumped Builders Adjust Their Designs,”
RISMedia (May 9,
2011)

Read
more:

More Home Owners Show an Interest in Remodeling
Again

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