Assist-2-Sell Franchise

Real Estate- No Crystal Ball Needed

It seems everyone is trying to predict the future of real estate and the buyers and sellers of the future. This isn’t anything new. For years industry “insiders” have been breaking out their crystal balls and telling us what to expect.

I am not going to weigh in on the debate today. Been there done that. What I do want to point out is the changing demographics of the consumer today and tomorrow.

Standard & Poor’s held their annual Summit on Risk.  This year’s theme was “Emerging Prosperity and Continuing Risks in 2011”.  CNBC’s Maria Bartiromo was the keynote.    Bartiromo was asked about the housing market’s recovery;  

 “Maria, with the echo-boom population now exceeding that of their parents, the baby boomers, what impact will this generation have on housing? Is it feasible to envision a housing boom again in the future?

 

“52% of the world’s population is under the age of 30. These people will be the consumers of the future.  They are and will be consuming electronics such as mobile devices, cars, and homes.  Look at companies like Home Depot that are exceeding expectations.  This is directly related to consumption of foreclosed homes.  There is no doubt the youth will be a driving force of housing in the future.”

This isn’t news. We have heard about “echo-boomers” for many years. What is interesting is 52% of the world is under 30.

In terms of real estate, what will these consumers want when they enter the market? What will they expect from a real estate company/agent?  How will they gather information and make decisions?

If you answer these questions and position your company and marketing accordingly, you will be way ahead of the game.

 

 

Gen Y - The future of our industry and home sales.

First off the definition of gen Y as found on Wikipedia. 

Generation Y, also known as the Millennial Generation (or Millennials),^[1][2] Generation Next,^[3] Net Generation,^[4] Echo Boomers,^[5] describes the demographic cohort followingGeneration X. As there are no precise dates for when the Millennial generation starts and ends, commentators have used birth dates ranging somewhere from the mid-1970s^[6] to the early 2000s.^[7] Members of this generation are called Echo Boomers, due to the significant increase in birth rates through the 1980s and into 1990s, and because many of them are children of baby boomers.^{[8][9][10][11]} The 20th century trend toward smaller families in developed countries continued,^[12][13] however, so the relative impact of the "baby boom echo" was generally less pronounced than the original boom. 

Ok so now we are clear on the definition of Gen Y, I came across an interesting article about their habits and how they will reshape work places and market places. 

Here are a few items related to the real estate industry I found intersting. 

A Value-Conscious Crowd

When it comes to money, Gen Yers are different from their elders, but may come to resemble previous generations more as they pass through the life stages of marriage, family, retirement and so on.

For now, they're less acquisitive than their Baby Boomer parents, steering away from what they see as conspicuous consumption. When they do spend, Gen Yers are value conscious — maybe because technology makes finding the best buy a no-brainer.

Traditional advertising doesn't have much street cred. Millennials are more likely to buy based on peer recommendations. And they're a bit more willing than older shoppers to pay higher prices to protect the environment.

Home Is Close to the Hive

Despite the Great Recession, Gen Yers aren't shying away from buying homes, and there's evidence that some are doing so earlier than their older siblings and parents. Nudged to take the leap by bargain basement prices and Uncle Sam's federal tax credit for home buyers, about one in three 18- to 32-year-olds is already a homeowner. Most, however, seem to want to follow the typical pattern of buying at about age 30, assuming the sour economy and tighter lending standards allow it.

The homes they buy will often be smaller, and on smaller lots, than typical. And no long commutes for them. Look for Gen Yers to seek close-in suburbs with a walkable urban center offering restaurants, shops and other gathering places. Some are even passing up car ownership altogether.

Risk-Averse Investors

Millennials are more risk averse than previous generations were at the same age. About half of their nest eggs are in bonds, money market accounts or cash. Even though they have decades to go before retirement, only 22% of investors under age 35 — many fewer than in 2001 — say they're willing to take on substantial risk.

One reason: They've seen little or nothing of the upside of long-term investing in stocks. In the decade since the oldest Gen Yers entered the workforce, the stock market has languished. Worse, many saw their parents' savings evaporate in recent years. If that reluctance to invest in the stock market lasts, many will come up short in their golden years.

Keep these these things in mind when planning the future of your business. Make sure you incorporate value into your offering. 

You can read the entire article here. http://finance.yahoo.com/career-work/article/111715/make-way-for-generation-y 

 

Bad One Liners = Bad Marketing

From time to time I see some marketing one liners and I just have to shake my head. The sad part is you see these marketing blunders repeated over and over. Agents copying what other agents are saying and doing, rather than thinking on your own. 

Here are a couple of my favorites. 

I got this one the other day, it was at least the 4th or 5th time I saw this in the last week. 

There has been a price reduction of $-5000. The listing is now priced to sell at $169900.  Thanks for your continuing interest.

Oh good, now I can go show my buyers. So let me get this straight, the house was not priced to sell at the original price? Were you teasing us?  If the house doesn't sell at this new price then what?

Here is another one. 

Priced for quick sale. 

As opposed to what? A long drawn out painful sale?

Here is one that is not all that bad, no one would have know what an agent was talking about a few years ago. 

NEW LISTING Regular Sale

We all know what this is supposed to mean. Isn't this an oxymoron? Regular sale, I wish there was such a thing! 

I can help you find your dream home! or Dream Home Finder. 

Really?  How many home buyers can/do actually buy their dream home? Most buy a comfortable home they can afford. Comparing that to a dream home can be a real let down! Keep in mind you are selling real estate, not dreams. 

My last one. I saw this on a sign rider in front of a house over the weekend. 

I'm Beautiful Inside! 

This means I know the outside looks like crap. The lawn is half dead, the paint needs serious work, and the roof is falling off. But please, for the love of god, come take a look I need a showing! 

 

It's July - It's Hot Outside- Do You Know What Your Listing Looks Like?

 Note to real estate professionals – If it’s July, 99 degrees out, and you have a listing photo that has snow all over the yard it might be time for an update. What’s the saying?  A picture is worth a 1000 words. Forget the words; in this case a picture may be worth thousands of dollars. 

My first thought when I saw this picture was, good lord how long has this house been on the market?  I bet I could snag that house for a great price.  My next thought was to look at who had the house listed. The agent obviously didn’t care about the listing and what is looked like online or in the MLS. I can’t imagine what the seller and potential buyers think when they see this?  Come the find out it was a so called “full service” agent.

Customer service and satisfaction is about the details. Paying attention to the details and not letting anything “fall thru the cracks” can make a big difference to the value you provide your clients. What if someone is/was considering listing their home with this agent and they looked them up and found this home?  You think they would be impressed?

We are all guilty of getting busy and forgetting about the little things. The point I am trying to make is that it is not about what you charge. It’s about what you do and don’t do. 

Saving Money Is "In"

Found the following story online about coupon clipping. Last year was the first increase in coupon use since 1992. 51% of American men have used a coupon in the last 6 months. 6-10 US adults with household income of $100,000 or more have used coupons in the last 6 months.

The article goes on to say coupons aren't just for groceries anymore.

Plain and simple, people are looking for deals. They are looking to save money wherever and whenever they can. Look at the explosive growth of www.groupon.com. (if you haven't used it you should, very cool)

Real estate is no different. Saving money is main stream. Being stupid with your money is "so last decade."

Be the "savings" people want. Be the "deal" people are looking for. Be the "find" they can share with their friends.

http://www.att.net/s/editorial.dll?eetype=Article&eeid=7370204&...

Imagine this conversation at a back-porch barbecue: "Dude, skip the beer, have a margarita! I got a buck off three cans of Bacardi mix with a coupon online. ... With salt? ... Totally!"

A new study by Harris Interactive with Coupons.com shows that conversations such as this are pretty close to reality. That puts a new face on today's coupon clipper as someone who increasingly is affluent and educated, lives in a metro area and, quite possibly, is male.

The study found that 51 percent of American men have used a coupon in the last six months. More than one-third have a designated place to keep coupons. And 18 percent have told a friend about a coupon they found online.

Overall, six out of 10 U.S. adults with a household income of $100,000 or more said they had redeemed a coupon in the previous six months.

"Coupons aren't just for the groceries anymore," said Jeanette Pavini, household savings expert for Coupons.com, which offers weekly deals by city.

Online coupon sources, mobile coupon applications for cell phones and other techniques make using coupons easier and less conspicuous, Pavini said.

For grocery store items - a big coupon segment - shoppers can link a major store's rewards card to Coupons.com and then save specific coupons to the card so the discount is automatically applied at checkout. No paper coupon needed.

"This makes it techy and fun and easy for men to do," Pavini said.

Last year was the first year that coupon use increased since 1992, Coupons.com reported. The recent study showed that eight out of 10 U.S. adults plan to continue using coupons even if the economy improves.

To streamline the habit, Pavini suggests stashing coupons in an accordion-style folder in the car. So even if you forget them, you can just dash out to the parking lot.

She also suggests planning the weekly menu around coupons and local market specials to double the savings.

"It's exciting when you look at the bottom of your receipt," Pavini said, "and you saved $45 or $50."

Real Estate Commission - Save on big ticket items

Here is an interesting article about saving money on big ticket items. Interesting advise from the author about "asking for a discount" on real estate commission. 

Buy a house, but pay fewer fees. Leamy points out that generally speaking, buying a home allows people to save a lot of money, because it forces them to save by investing in their home each time they write a mortgage check. Plus, homeowners receive tax benefits unavailable to renters. To keep as much money as possible in your bank account, she recommends negotiating discounts with your Realtor, lender, and settlement company.

Real estate agents, for example, are often willing to accept a 2 percent fee instead of the traditional 3 percent, especially if house hunters do much of the work themselves. As for lenders and settlement companies, they will often cut buyers a break on various fees, such as application fees or document preparation fees, if asked.

"Negotiating in our culture is always a little awkward, but some of these dollar amounts are too big to let embarrassment get in the way," says Leamy. Plus, she says, mortgage professionals are increasingly getting used to it these days.

Read full article here.