Wednesday, February 19, 2014

What Caused The Inventory Shortage?????

Three years ago who would have thought we would be having an inventory shortage this soon? Well here we are... back into a “multiple offer” market again!

Below are just 5 of many reasons we have an inventory shortage

1.     Slowdown of New Home Starts- Nationally we need 1.6 million new home built per year to keep up with new buyers coming into the market (population growth) For the last 4 years we have averaged only 600,000 new home starts nationally ( a 1 million per year shortage )

2.     “Boomerang Buyers” – A boomerang Buyer sold their home between 2006 and 2011 and lost equity… and many had to short-sale…these sellers have been renting but many have now recovered financially and are back in the market buying homes

3.     Eco-Boomer Generation- This will add 80 million buyers to the market in the age range of 18-31 over the next several years…educate yourself on this generation…they have very specific needs (see handout)

4.     Increase in Life Expectancy- in 1970 the estimated life expectancy in the US was 70…in 2012 it was 79. People are living longer and staying in their homes longer.

5.     Immigration- The US is still the Promised Land for many… in 2012 the estimate was 1,000,000 legal immigrate came to the United States…depending on who you believe, if you add illegal immigrates to the mix the totals are closer to 2,000,000

The time has come to get pro-active in the market…you can’t sit back and wait for the MLS to provide you with listing inventory…if you have a Buyer who needs a home but the “perfect match” is not in active inventory… Get busy searching for expired and withdrawn inactive inventory which matches the buyers want list.

Awaken Dormant Sellers by sending letters out to neighborhoods the buyers like letting the “non-active” sellers know you have a buyer in-hand ready to buy!

Get out there and get busy!

Eddie Brown ©2014

Wednesday, February 5, 2014

Are You Attracting The Type of Clients You Want For Your Business?

The one thing you see at popular restaurants on a Friday and Saturday Evenings is a line out the door right? And even though you know it will be a long wait just to get seated you still go there anyway? The reason why you go there has to do with one, or all, of just a very few things… Good Service, Good Product, or Good Atmosphere.
The “WHY” is something you can and should replicate in your real estate business…

A restaurant has to be good at a few things which all restaurants need to survive…Good Food and a Good Atmosphere. But often times those two are simply not enough to grow the line out the door. There are plenty of places I have thought had great food over the years which are no longer in business…This is where the “WHY” comes into play.

What are your “WHY’s”? Why should someone use you as their REALTOR? If you don’t know why…then how will they know why?

One of your “WHY’s” should be the unexpected extras you give your clients…Working by Referral is a systemized approach to doing the unexpected extras every day! Sure you still have to have the skill sets other REALTORs possess… but you have to go beyond what everyone else does… and to be honest it’s not really that far of a journey.
In Major League Baseball (according to a study done by SCORECASTING) the difference between a .299 batting average and a .300 batting average can mean a $130,000 difference in salary…that's just 1 extra hit per 1000 “at bats”. Imagine building a business plan in your real estate business to just do one extra thing for your clients which few others (or no others) are willing to do? Where might it take your business? You will never know until you try it.

Secondarily… Building your Book of Business (B.O.B.) will help you form relationships which allow you to know intimate details about your clients most others don’t. The more you know about a person… the more likely you are to know what will make them happy…and what will make them feel comfortable using you to buy or sell real estate. The more an individual knows…likes…and trusts you… the more likely they will think your “WHY’s” are better than any other REALTORS!

Make a list of the things you feel are your value propositions ( Your WHY’s) and use them when you first meet a prospective client to discuss their goals for buying or selling. These are your unexpected extras. This one technique could help you to create a line out the door of your real estate business!

Have you prospected for new business today?

Eddie Brown ©2014