Working with Buyers in Todays Market

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Working with Buyers in Todays Market

• Courtesy of the Northeast Association of Realtors

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PANELISTS

• Corrine Schomberg of Coldwell Banker Residential
  Brokerage in Chelmsford a 2005 Platinum
  Individual Top Producer.
• Marilyn Ellis of Prudential, Howe Doherty in
  Andover, a 2005 Silver Individual Top Producer.
• Stephanie Martin of Century 21 Landmark Realty in
  Chelmsford, a 2005 Silver Individual Top
  Producer, and Chair of our REALTOR Image Task
  Force.

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PANELISTS

• Past President Brenda Beaudoin, the Broker/Owner
  of Beaudoin Associates, REALTORS in Dracut and
  an MAR Director for 2007
• Tom Courtney of Keller Williams Realty Merrimack
  Valley in Westford, a 2005 Silver Top Producer
  for Team of 3 or Fewer
• And finally, Ill introduce todays moderator,
  Angela Harkins of RE/MAX Prestige in Westford, a
  2005 Platinum Top Producer for Team of 3 of
  Fewer, our 2006 Education Chair and a State
  Director for 2007, as well as Co-chair of our
  Diversity Project Task Force.

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Presentations

• Attracting Buyers, Brenda Beaudoin
• Lead Generation via Web Sites, Angela Harkins
• Buyer Consultations, Tom Courtney
• Understanding and Addressing Fear of
  Commitment, Marilyn Ellis
• Why Buy in Todays Market, Corrine Schomberg
• Home Sales Pending Sales Statistics that
  Buyers can Buy into, Stephanie Martin

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Attracting Buyers, Brenda Beaudoin

• Its not who you know thats important
• Its who do the people you know, know!

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Attracting Buyers, Brenda Beaudoin

• Marketing vs. Working by Referral
• Personal promotion is very costly. Personalized
  maps, shopping carts, blanket advertisements,
  etc. A more cost effective way to attract
  clients is to reach out to people that already
  know you and dont need to be sold on you.
• Which scenario would you prefer?

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Attracting Buyers, Brenda Beaudoin

• CURRENT CLIENT BASE
• SELLERS BUYERS
• CLIENTS/CUSTOMERS CLOSED
• OPEN HOUSE CONTACTS
• OPPORTUNITY TIME
• PEOPLE YOU MEET DAILY

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Attracting Buyers, Brenda Beaudoin

• EXPANDING YOUR DATABASE
• YOUR CURRENT DATABASE
• - SORT QUALIFY
• A CLIENTS (current or past customers or
  people that routinely refer you)
• B CLIENTS (Used you but hasnt yet referred
  you)
• C CLIENTS (Up-time, Open Houses or may use
  you in future)
• D CLIENTS (People you meet daily)

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Attracting Buyers, Brenda Beaudoin

• FOUNDATION OF A RELATIONAL BUSINESS
• (Building Relationships)
• Deliver Excellence
• Show Character
• Competence
• Your referral sources reputation is on the line

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Attracting Buyers, Brenda Beaudoin

• QUALIFYING YOUR DATABASE
• If you or a friend or family member were thinking
  of buying or selling, do you have a REALTOR you
  would refer them to!
• WORD OF MOUTH VS. WORKING BY REFERRAL
• (Do you get referrals by chance or on purpose)

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Attracting Buyers, Brenda Beaudoin

• OVERVIEW OF WORKING BY REFERRAL
• CONTACT
• CALLS
• DIRECT MAILING CAMPAIGN
• CARE
• STOP BY
• PERSONAL NOTES
• COMMUNITY
• CLIENT PARTIES
• BUSINESS LUNCHES

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Attracting Buyers, Brenda Beaudoin

• WITH EVERY CONTACT
• If you know of anyone who is thinking of buying
  or selling who would appreciate the level of
  service we deliver, please call me with their
  name and business phone number and you can be
  sure we will take very good care of them for you.

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Attracting Buyers, Brenda Beaudoin
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Lead Generation via Web Sites, Angela Harkins
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Lead Generation via Web Sites, Angela Harkins

• Approximately three out of four buyers today use
  the Internet to search for homes, and those using
  the Internet are more likely to work with a
  professional than those who do not.

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Lead Generation via Web Sites, Angela Harkins

• Did You Know ...
• ...73 of homebuyers used the Internet as an
  information source
• ...74 of Internet homebuyers drove by or viewed
  a home they saw online
• ...23 of Internet homebuyers found their agent
  online
• ...24 of buyers first found their home on the
  Internet

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Lead Generation via Web Sites, Angela Harkins

• Where do buyers click.

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Lead Generation via Web Sites, Angela Harkins
What are buyers looking for on the internet?

• Photos top the list
• Detailed property information
• Virtual/Visual tours
• Interactive Maps
• Community Information

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Lead Generation via Web Sites, Angela Harkins
Upgraded Listing Banner, Featured Multiple
Photos Tour
Didnt take advantage of full features!
No features Studies show this related to fewer
buyer clicks!
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Lead Generation via Web Sites, Angela Harkins
Upgraded Listing Banner, Featured Multiple
Photos Tour
Take full advantage of features! Add a tour!
Photos..photos.. photos!
Direct them to more info and more photos
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Lead Generation via Web Sites, Angela Harkins
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Lead Generation via Web Sites, Angela Harkins
What should you website include or not include

• Focus on what they need not what you need
  (concentrate on
• delivering property information)
• Keep the front page simple
• Have a property search function on the first page
• Make it easy to navigate
• Provide community information
• Offer a mortgage calculator
• Overall speed, ease of use, keep it simple,
  tools for them to use

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Lead Generation via Web Sites, Angela Harkins
Do Buyers and Sellers Find Their Agent Online?

• CAR
• 86 of Internet buyers found their agent online.

Source CAR 2005 Internet vs. Traditional Buyer
Study
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Lead Generation via Web Sites, Angela Harkins

• Who is the
• On-line Consumer?

Source CAR 2005 Internet vs. Traditional Buyer
Study and NAR 2005 Profile of Home Buyers and
Sellers
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Lead Generation via Web Sites, Angela Harkins

• Why Technology?
• What Technology?
• Cell Phones - Instant Messaging
• Access Lines - Text Messaging
• PDAs (Blackberry, Treo) - Domain Names
• Laptops - Email Addresses
• Websites - PDF Creator (PDF995)
  Free!

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Lead Generation via Web Sites, Angela Harkins
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Buyer Consultation, Tom Courtney
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Buyer Consultation, Tom Courtney

• Schedule In-Office Appointment
• Financially Pre-Qualify the Buyer
• Explain Agency
• Identify Values (10 Exercise)
• Conduct Consultation Questionnaire
• Present Your Benefits
• Obtain an Exclusivity Agreement
• Set Expectations for the Buying Process
• Close for the Next Appointment

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Buyer Consultation, Tom Courtney

• The Home Buying Process
• I have designed this packet to assist you with
  the purchase of your new home. I assure you that
  it is my goal to provide you with the most
  professional and informative service available.
  I am always just a phone call away!

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Buyer Consultation, Tom Courtney
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Buyer Consultation, Tom Courtney
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Understanding and Addressing Fear of
Commitment, Marilyn Ellis
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Why Buy in Todays Market, Corrine Schomberg

•  

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Why Buy in Todays Market, Corrine Schomberg

• 1.  The severe adjustment in the market has
  created a
• a) Buyers market
•          1.  Buyers drive the price
•  
•          2.  Inventory creates the market.  We
  have gone through the
• cycle of the highest number of homes
  on the market vs.
• number of interested buyers
•  
•      b)  Hold on great rates
•  
•      c)  Buyers can get a home at a realistic
  price for the times
•  

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Why Buy in Todays Market, Corrine Schomberg

• 2.  Educate buyers by comparing this cycle with
  the past cycle
•  
•     a)  1989-90 market had a severe adjustment
  which seems to have been triggered by upper
  management loss of jobs vs. the 2004-05 cycle
  adjustment at about the same percentage gap,
  but driven by high numbers of inventory which
  seller's priced for the high market and missed. 
  Real Estate and the Stock Market seem to follow
  the same trends.  The well priced homes in
  today's market have been the key to sales. 
•     b) Many homes are priced under appraised
  value
•  
•     c)  As a Buyer's Agent we can demonstrate
  values with a Market Analysis and show why
  yesterdays pendings and sales set today's value

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Why Buy in Todays Market, Corrine Schomberg

• 3.  The news media broadcast bad and good shifts
  in the market and are now announcing that we
  may be at the bottom of the dip
•  
•      a)  as we approach the bottom of the dip and
  the market has had a 25 or greater decline in
  housing prices the Buyer is in a great position,
  because we historically feel the prices will
  settle and resume an appreciation level, but
  never knowing if or when they will!
•  
• Summation to Buyer.......
• The climate has never been better in the past 2
  years to take advantage of a great buyers market. 

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Home Sales Pending Sales Statistics that
Buyers can Buy into, Stephanie Martin
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Home Sales Pending Sales Statistics that
Buyers can Buy into, Stephanie Martin

• MASSACHUSETTS ASSOCIATION OF REALTORS
• Detached Single-family Home Sales
• November '05 November '06
  Change
• 3,713 3,246 -12.6
• October 06 November06
  Change
• 3,239 3,246 0.2

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Home Sales Pending Sales Statistics that
Buyers can Buy into, Stephanie Martin

• Condominium Sales
• November '05 November06 Change
• 1,622 1,401 -13.6
• October 06 November06 Change
• 1,464 1,401 - 4.3

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Home Sales Pending Sales Statistics that
Buyers can Buy into, Stephanie Martin

• Detached Single-family Home Median Selling Price
• November '05 November06 Change
• 354,000 340,000 - 4.0
• October 06 November06 Change
• 341,000 340,000 - 0.3

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Home Sales Pending Sales Statistics that
Buyers can Buy into, Stephanie Martin

• Condominium Median Selling Price
• November '05 November '06
  Change
• 265,000 270,000 1.9
• October 06 November06
  Change
• 261,250 270,000 3.3
• NOTE Figures reflect data from 5 of 5
  REALTOR-affiliated Multiple Listing Services in
  Massachusetts as of December 15, 2006

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Home Sales Pending Sales Statistics that
Buyers can Buy into, Stephanie Martin

• KEY POINTS TO STRESS (and repeat)
• This is the best time in recent years to be a
  Buyerbut waiting for things to get even better
  is a bad choice.
• 2. Inventory is still healthy, but beginning to
  drop as buyers no longer are waiting to time the
  market
• 3. 2006 is still one of the best real estate
  sales years ever.
• 4. Rates still historically-low, healthy
  inventory, most sellers setting reasonable prices
  based on THIS market rather than the unusual
  spiking prices of past five years.
• 5. Real estate market is experiencing a healthy
  price correction and return to a normal
  long-term appreciation rate. 6. Real estate
  continues to be a great long-term investment.
  Someone putting 20 down on a median-priced home
  in 2002 (256,000) would realize a 64 return
  gain on investment if sold at the median-price in
  November 2006 (340,000).

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Home Sales Pending Sales Statistics that
Buyers can Buy into, Stephanie Martin

• OUTLOOK
• 2007 expected to mirror 2006, resulting in
  another historically-strong year, although below
  the market sales and price spikes of recent years
  (according to National Association of REALTORS).
• Pent-up Buyer demand seems to be loosening, as
  the market has stabilized and more are making
  lifestyle purchases and taking advantage of lower
  prices and better inventory before spring market
  pace. Inventory is down from a high of
  15-months of inventory last Februaryto 10-months
  in November.

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Home Sales Pending Sales Statistics that
Buyers can Buy into, Stephanie Martin

• SALES VOLUME
• Single Family
• Compared to same 2005 period, detached
  single-family home sales in November continued
  pattern of past eight months, with 12.6 decline
  ( from 3,713 to 3,246 homes). Last months
  sales total was lowest November volume since
  1995, when 3,190 homes were sold.
• On month-to-month basis, home sales showed
  slight 0.2 increase from October to Novemberthe
  only increase in past four months.
• Condo-
• Compared to same 2005 period, condo sales
  fell 13.6, BUT remained near record levels for
  the month.third highest for any November on
  record.

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Home Sales Pending Sales Statistics that
Buyers can Buy into, Stephanie Martin

• PRICE
• Single Family
• November median price declined 4 from year
  ago (from 354,000 to 340,000), normalizing the
  market and retaining excellent long-term
  investment value, but 9 below its peak (spike)
  of 375,000 in July-August, 2005.
• Condo
• November median condo selling price
  increased for first time in last five months by
  1.9 (from 265,000 to 270,000).

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Home Sales Pending Sales Statistics that
Buyers can Buy into, Stephanie Martin

• INVENTORY/DAYS ON MARKET
• Single Family
• November 2006 inventory (35,254 homes)
  was 25 higher than November 2005 homes (28,152)
  statewide. This translates to 10.9 months of
  supply in November 2006, compared to 7.6 months
  last November. Supply is dwindling, since the
  November number decreased 12.4 from Octobers
  40,254 homes. Single family units stayed on
  the market longer in November 2006, 130 days
  compared to 95 days in November 2005
• The market is balanced when 7.5 to
  8.5 months of housing supply exists.
• Condo--
• The number of condos for sale is up 37
  from 13,024 units last November to 17,851 in
  November 2006. This represents 12.7 months of
  supply, up from 8 months in November 2005.
  Since October, the number of unsold units has
  DROPPED 10 (from 19,896 or 13.6 months of supply
  to 17,851 or 12.7 months of supply
• Similar to the detached market, condo
  units stayed on the market longer in November,
  with average condo listing time rising from 85
  days in October 2005 to 121 days in October 2006.

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Home Sales Pending Sales Statistics that
Buyers can Buy into, Stephanie Martin

• Historical Monthly Sales of Single Family Homes
  and Condominiums

• Sales Year S-F  Condos  
• Nov-98 4,150   991
• Nov-97 3,717   773
• Nov-96 3,434   695
• Nov-95 3,190   638
• Nov-94 2,847   462
• Nov-93 3,177   521
• Nov-92 2,803   352
•  Nov-91 2,140   272

• Sales Year S-F  Condos  
• Nov-06 3,246   1,401
•  Nov-05 3,713   1,622  
• Nov-04 4,089   1,599  
• Nov-03 3,462   1,040  
• Nov-02 3,361   945  
• Nov-01 3,597   997  
• Nov-00 3,870   1,124  
• Nov-99 3,846   1,072  

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Home Sales Pending Sales Statistics that
Buyers can Buy into, Stephanie Martin
MA Condominium Sales
MA Single Family Home Sales

• Nov 05 3,713
• Dec 05 3,574
• Jan 06 2,340
• Feb 06 2,265
• Mar 06 3,440
• Apr 06 3,281
• May 06 4,055
• June 06 5,101
• July 06 3,982
• Aug 06 4,229
• Sep 06 3,435
• Oct 06 3,239
• Nov 06 3,246

Nov 05 1,622 Dec 05 1,627 Jan 06 1,171 Feb
06 1,168 Mar 06 1,731 Apr 06 1,691 May
06 2,113 June 06 2,382 July 06 1,883 Aug
06 2,103 Sep 06 1,546 Oct 06 1,464 Nov
06 1,401
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Home Sales Pending Sales Statistics that
Buyers can Buy into, Stephanie Martin

• REALTORVALUEChoice of REALTOR continues to be
  vital in this market. REALTORS remain
  well-informed about changes in market, consumer
  attitudes, interest rates and other critical
  factors.
• Real estate is the most important investment for
  most consumersand one where you spend most of
  your life. Whether a buyer or seller, finding
  the right professional is your first and best
  choice to manage the process.
• Not all real estate licensees are REALTORS.
  REALTORS must subscribe to a strict Code of
  Ethics and remain educated about changing market
  and legal conditions

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QUESTIONS..