Inventory: Finding the Needle in the Haystack!

Oh, how the times have changed! From just waiting for the buyers to appear … to dealing with multiple offers from numerous buyers vying for the same property! There is no denying that in many markets the buyers have come out in full force and they are in the mood to buy. Consumer confidence is up while interest rates are down which makes for a perfect buying storm.

While this is can be an exciting time for real estate agents, it is also a frustrating time as well. More and more I am hearing stories from agents about how they have been unable to help willing and able buyers buy a home, because there just isn’t any inventory out there for them. With our past seven year deficit of new construction inventory, it will take some time for the market to balance out. And with the recent decline of short sales and foreclosures we have found the inventory problem has become magnified.

So, what do you do if you find yourself with buyers who want to buy and you can’t find anything to sell them?

Then it’s time for you to make things happen by finding sellers who may want to sell, but just might not know it yet. They may have no idea they are now in a position to sell. Perhaps they wanted to sell in the past , but found they couldn’t because of lack of equity or because sales prices were too low. This could be their opportunity to finally put their home on the market. Multiple offers and low inventory have driven prices up substantially in many areas and price ranges.

But how do you go about finding those sellers?

You can start by searching all expired and cancelled listings for sellers who have tried to sell in the past five years, but who did not sell in the end. This pool of sellers at one point had the motivation to sell, but they couldn’t get the price they needed to move forward.

Then determine if prices and/or demand is up in their area and if, in fact, it is a better time for them to sell. If you see an opportunity there, then you have to present those facts to the sellers in a manner that clearly articulates the advantage they may have in the market now.

If you find that once you have exhausted the expired and cancelled listings that you still want more potential seller leads, then it is time to dig a little deeper to find some additional opportunities. Go into your MLS system and find pending and closing properties that have had the shortest length of days on market, as this indicates that there is strong buyer demand for these properties. Then contact sellers in similar properties or in comparable areas and let them know about the strong buyer demand, low inventory and the opportunity for them to sell their home. You need to include the research and statistics you have found to prove this to the seller, as many sellers have received generic, “I may have a buyer for your home” letters that leave them skeptical. Don’t promise any potential seller that you have a buyer when you don’t. Just be specific about why you are communicating with them and provide all the data and statistics to show them that this could be an excellent time in the market to sell.

If you don’t have enough inventory to satisfy your buyers, this is excellent opportunity for you to be able to list homes that will then be consumed by the market very quickly (and perhaps your own buyer pool). There are plenty of motivated sellers, but it is your job to find them and educate them. This could be one of the most exciting opportunities out there for real estate agents in this hectic, fast-paced market. Go out there and claim your right to the listings that need your help!

By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the source for all things “real estate”. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

Source: thelonesgroup.com

Damsels in Distress

A funny thing happened on my way to teach my EVOLVE class a couple of weeks ago and I can’t wait to share this story of exceptional client care with you.

My CEO Shauna Naf and I were on our way to teach EVOLVE when we noticed a strange sound coming from the right front wheel well. The noise continued to increase and become more ominous, and soon we knew that we would have to pull over and get help. But where do you go for help at seven in the morning with a car problem - especially, when you have to be at location an hour and a half away? We had no time for this breakdown and no idea where we were going to go to get this fixed. Not to mention we had 25 people waiting for us to begin our program and there was no doubt that we were in deep trouble.

So, what would you do in this situation? Well, of course, we started looking online for an automotive repair shop in the area, but nothing would be open for hours and we needed help fast.

Then Shauna noticed a Jiffy Lube sign in front of us and suggested we could at least go there to see what the trouble was. At least then we would know what we were dealing with.

When we drove up we were approached by a very nice young man who asked us how he could help. Shauna explained our dilemma and he very graciously offered to take a look under the car. He asked us to park in the shop bay so he could climb under the car and see what was going on. These were words that were very welcomed by two damsels in distress!

He and his co-worker looked at the car and informed us that the mud flap had come loose and was getting in the way of the wheel. He fixed the problem for us quickly, but when we went to pay, they refused to take any payment from us.  This is NOT what we were expecting. We fully expected to get some kind of a bill and we would gladly have paid that bill! Our huge problem was solved for us in just an instant by these Jiffy Lube employees. That was stellar client care.

So why should you care about my misadventures on the way to class?

There are a lot of lessons to be learned from this experience. Yes, lesson one would be to always check your mud flaps… But the most important lesson is that people will remember you and talk positively about you, when you can solve their problems and challenges … and not expect anything in return.

I can’t tell you how many people I have told about this experience with Jiffy Lube. I am actually excited about giving them my business in the future. There are two companies in my area that I can go to for an oil change, but Jiffy Lube is going to get my business. I admire their strong belief in doing the right thing for the customer, even when they aren’t getting paid.

We arrived on time that day, when we most certainly should have been late… very late! Jiffy Lube took care of us and they never asked for a dime in return. But what they got in return is two raving fans.

When you are helping your buyers and sellers ask yourself what problems or challenges they have that you can solve for them. You will be surprised how much this problem solving can go towards client loyalty.

Thank you, Jiffy Lube!

Have a great customer-care experience that’s made a positive impression on you? Tell us about it here!

Source: thelonesgroup.com

What Is Your One Thing?

Over the last several weeks, my teaching schedule has been pretty full. I had EVOLVE students graduate, met with my ENCORE group, taught classes on Open Houses, Pricing, Lead Generation, and new tricks to follow up with leads in your pipeline.

As you can imagine, I have A LOT of information and ideas to share. And inevitably at the end of the day, many of my students look a bit overwhelmed. Why? Because they want to implement every single idea I presented in class into their business and they want it done last week. Excitement quickly turns to being overwhelmed.

I can see it in their eyes. So I make it a point to wrap up and ask an important question: “What is the one idea you learned today that you will take back and implement in your business?”

Do I want everyone to implement everything? Of course! But I also know that if I don’t ask that question, most of the agents who attend will wind up implementing nothing … because they haven”t been able to narrow down the one thing that will have the most impact on their business. And then they just give up.

It could be creating a community open house board, implementing the Potential Income Tracker, or even simply picking up the phone and letting your database know you are sending them some real estate market information. It could be something as simple as creating a rule around the type of buyers you will work with. But the key is to find that one thing that you need to change now.

An agent in my class yesterday made me a deal that he would implement a “Tour of Homes” book at his next open house and would be in contact with me with the results. I cannot wait for that email. If he implements that one thing and it results in even one more client connecting with him at each open house, do you know what kind of impact that will have on his business?

People want to see change in a big way. But if you focus on evolution, not revolution, youwill see results.

So why am I advocating focusing on one single thing when I am rolling out my upcoming two day Safari event - which will be chock-full of ideas?

Because my Safari events are designed to dig deeper…

I am so excited to be rolling this out! This new Safari is entitled “You-nique Technique: Five Steps to Thrive”. This isn’t so much of a class as it is a business-designing workshop. This Safari will help you create a road map with structured “one-things” along the way. In fact, we will show you how to “one thing” your way to a success!

But this workshop is only open to 50 people and we already have about 40 spots taken! If you would like to join us, you don”t have a moment to lose. The workshop is free ($150 if you would like clock hours which are currently pending).

Here is what you need to know:

I urge you to attend if you can. Even if you are out-of-state, please consider planes, trains, or automobiles and get here. It could be the two most important days of your real estate career.

If you can”t join me, I ask you to think about your one thing… What is it? And what will you do about it? Please feel free to tell me your one thing in the comments area below and I will respond.

By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the source for all things “real estate”. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

Imagine… Allan and Bonnie Did!

Imagine you went to the doctor and were told you had a life-threatening lung disease.

Imagine your doctor said you didn’t have long to live if you didn’t get a lung transplant.

Imagine your insurance company refused to pay for this lung transplant and you would be looking at hundreds of thousands of dollars in medical expenses even if you could get one.

Imagine that everywhere you turned you faced more mountains to climb.

Imagine that every day it got harder for you to breathe and harder to function.

Imagine that you were afraid to get in the car for fear you would run out of oxygen.

My dear friend and longtime client Allan O’Brien not only imagined all of this, but for the last almost six years, he lived this reality every day. He has fought the most difficult battle anyone can face - the battle for his life. This battle is one that many of us would have either given up on or been beaten down by. Just hearing about his constant battle was exhausting and I couldn’t imagine how difficult this was for Allan.

I remember the first time Allan and his amazing wife Bonnie told me about his health condition. To hear them both discuss it, you would think that Allan merely had manageable asthma. The both took on the most positive outlook I have ever witnessed in my life. Throughout their battle they always believed that Allan would get a lung transplant. They also ALWAYS remained calm, strong and FIRM about their belief that one day he would be the recipient of the greatest gift of all… the gift of life.

When I got to know more about Allan’s medical condition and the importance of his getting a lung transplant, I understood better the importance of becoming an organ donor and giving the gift of life in the event that my life ended. That was something that I had not previously given a lot of thought to previously, but after watching Allan struggle for one year, then two, three, and then more, I realized how important this gift could be. And I remember how many times I would pray that he would get his gift.

Eventually winning his fight with the insurance companies to finally hear that indeed he would be put on the transplant list was only the first part of the battle. Once on the list, the waiting game began. Finally! Allan received the call that they had a donor! But that turned out to be a false alarm. And then again! But this turned into a false alarm as well.

Allan was getting weaker and could hardly speak anymore. He could hardly walk five feet. Allan was an avid reader and writer, but his illness had made it impossible for him to read or write anymore. An incredible loss for a man who so treasured the written word.

Time was running out and hospice was notified. When you hear Bonnie talk about the day they came to their home it makes you want to smile and cry at the same time. She proudly stated, “I wouldn’t let them in!” When I expressed surprise and asked her why, she quickly replied, “No one else was going to take care of him. I take care of him”. My throat tightened and I fought back the tears as I witnessed a woman’s love for her dying husband. The lifelong love affair Allan and Bonnie have had is something you see in the movies and I can’t express how touching it was to hear this story.

Allan told me that the day he received THE CALL he only had days left to live.

Bonnie was at home when the phone rang. She almost didn’t answer the phone as the number was not listed, but because she was curious, she answered it. And this call changed her life.

“We believe we have the perfect lung for Allan and we need you to come to the University of Washington hospital right now.” Bonnie was in a state of shock and rushed to pack for the visit. Allan was exhausted, but went hoping that this would not be another false alarm.

This was no false alarm. That very day Allan received his lung transplant.

Not only did his life change, but others’ lives changed as well. The person who gave the incredible gift of life to Allan had also given that gift to at least two others at the UW Medical Center through their donation of multiple organs. At least three people were given life as one life ended. Four families’ lives were changed forever.

I used to get squeamish thinking about organ donation, but have been able to see how organ donation has changed the lives of families both receiving and giving organs. A very dear family friend lost her life four years ago, and I remember being with her son when the doctors told him that his mother had passed away. The doctors suggested that she help others live through organ and tissue donation. Although this was a tough decision for someone in their early 20s, he bravely decided to give the gift of life on behalf of his mother. This gift also changed the lives of four families forever and today he is comforted knowing that his mother’s gift gave life to others.

Imagine that you had a dear friend or loved one that was diagnosed with a life-threatening disease that could only be cured with a transplant. Imagine hoping that someone would give the gift of life and save them. Imagine if one day you would be able to visit your friend or loved one and hear them talk again or see them smile again. I did. And last week I had the honor of being able to see my dear friend Allan speak again… smile again… and live again!

Some may call it a miracle. Some may say it is luck. I say it is the power that each of us have within us to make things happen in our life. It is the power we have to fight against all odds and win. It is the power to shape our own future by choosing to believe that we will survive and we will thrive.

Despite all the odds against Allan, both he and Bonnie never stopped believing that he would get well.

And while Allan’s story has a very happy ending I would ask everyone to take a second look at the gift of life that each of us has the power to give should we ever be in the position to give it. Allan and Bonnie changed my perspective and they changed my life. Their positive attitude and pure thirst for life is both enviable and uplifting.

When I went to see Allan in the hospital I asked him what he was craving. He laughed and told me he was craving lemon meringue pie. Oh, how his laugh warmed my heart! When I see Allan again this week I plan on taking him the biggest lemon meringue pie I can find. I personally plan on celebrating his life and giving thanks to the family that so generously made the gift of life possible for Allan and Bonnie.

Thank you, Allan for showing me how much power the human spirit has.

Thank you, Bonnie for showing me what true, selfless love looks like.

Here’s a toast to your new life together!

And if you are wondering how Bonnie is doing… well, when I asked her how much sleep she was getting she admitted not much. She wakes up at four in the morning every day and hurries to Allan’s side to care for him. And they are both talking up a storm. Oh, how much they have to catch up on!

This Zebra Report is dedicated to my dear friends Allan and Bonnie O’Brien.

By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the source for all things “real estate”. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

The Essentials of Working in a Faster Market

For almost five years agents have found themselves working in markets where sellers’ homes sat on the market for extended periods of time as buyers sat on fences. The market was slow to say the least and the buyers and sellers were slow to make decisions. Fast forward to 2013 and some agents in some markets find themselves in markets moving so fast that some buyers can’t even write offers fast enough to have them presented. By the time they have made their decision to buy a particular home that home is already in escrow.

There has been a definite shift in real estate markets across the country. And with those shifts there is a need for agents to adjust how they operate their business so they don’t get left behind. And for those agents who aren’t experiencing this fast paced market it is still critical to pay particular attention to the changes in your marketplace so you can identify opportunities in your market.

The one thing that is critical for agents to do when their market speeds up is to continue their marketing and follow up efforts. Many agents find themselves overwhelmed by the fast pace of the market and because of this they put aside the key elements of business building and instead focus only on business at hand. And while business at hand might be what brings in your next commission check, it does not lay the groundwork for a business that will bring in consistent leads for the future.

Agents today need to remember that in the same way a market can speed up, there will also be periods when that market cools down. This is just how the real estate market works. And when the market eventually slows down an agent who has not maintained consistent business building activities will feel the backlash. Tomorrow’s client comes from today’s marketing and follow up. These are two areas of your business you just can’t afford to put aside while you are busy with today’s clients.

If you are an agent that struggled without enough business during a slower market and are now relieved that the market has picked up, don’t assume that your business will continue at this pace forever. Markets change and agents need to be priming their business pump, so their business will be healthy and strong no matter what market is on the horizon.

Here are the 3 key things every agent needs to be focusing on to keep their business growing and to ensure a consistent flow of income.

  1. Follow-up to sphere database - this is the cornerstone of a strong business and is often the first thing to go when agents when they get busy. But remember that follow-up is the gasoline of your business and without “filling up” you will most certainly run out of gas.
  2. Marketing strategy - every business needs a strong marketing strategy that will bring in new business. Lead generation campaigns, branding, buyer and seller packages are all examples of marketing efforts that can help you convert more clients. New business is essential for growing your business and a strong marketing campaign can help you get there.
  3. Client care - when markets speed up client care can tend to go down as agents find themselves struggling to get everything done in the time they have. Don’t fall victim to this! Instead be proactive and take the time to make the time. This could be the single most important thing you do to safeguard your business against future declines.

So, enjoy the positive changes in the market, but don’t forget that the core of your business comes from great client care, exceptional follow up, and strong marketing. Remember to keep this front and center so you can enjoy a thriving business in any market.

By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the source for all things “real estate”. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

Open House Season is Open!

My favorite time of the year is here - Open House Season!

I love it because agents are charged up. They are polishing their open house tools and putting a shine on everything. Open house season says, “We are open for business!”

With the market picking up in many areas, this spring’s open house season promises to be one of the most robust in years. In fact, a Seattle agent recently reported they had over100 people through their open house!

There are many agents who don’t see the value in open houses. There are some areas that are not set up for open houses, such as very rural areas, but in most populated places around the country open houses are effective. They are effective when the agents in the community bind together and create a culture that supports them.

The National Association of REALTORS® Nationwide Open House Weekend does just that. By creating real estate community enthusiasm, support, and awareness, NAR is hoping this year’s Open House Weekend is the largest yet. Nationwide Open House Weekend is coming up on April 20th and 21st and I challenge each and every reader to participate!

According to NAR, 45% of recent buyers used open houses to narrow down their home choices and make buying decisions. That in itself is a compelling reason to get involved! If you’re unused to holding open houses your mind may be filling with concerns and questions - where do I even begin? Well, we’re here to help!

What if I don’t have a listing to hold open?

If you don’t have a listing to hold open, find an agent in your office who does. Make sure it is in a highly-trafficked area, is not overpriced, and ideally hasn’t been on the market for too long.

How should I advertise?

Your local REALTOR® Association should have resources available to you. Examples include special advertising for those participating, flyers, balloons, etc. And the REALTOR.org website has plenty of available tools as well, including press releases and logos. Send press releases to the newspaper, post on your blog or social media websites - do everything you can to spread the word!

In terms of direct advertising, consider sending postcards to the neighbors, or possibly target a nearby neighborhood with move-up potential. Generally move-up buyers buy half again as much of the selling value of their home. So, if the home you are holding open is $300,000, target neighborhoods with homes valued at $200,000. And remember - these invitations may get potential buyers to the home - who may then in turn be potential sellers. If you live in an area that is lacking inventory, those listings are highly-coveted.

Should I invite the neighbors?

Absolutely! Connecting with the neighbors is essential. Remember, if the home you are holding open sells quickly, this is an indication that their home may also quickly sell. And you want to be the one they call if they are heading in that direction.

We have a stock letter that you may use to let the neighbors know about the upcoming open house. Visit this Club Zebra Page and sign-in with your free Club Zebra Basic membership to download the letter located in Part 2: Before the Open House.

What materials should I have at my open house?

A well-done open house will wow attendees and leave them wanting more. Even for those who may be “lookie-loos”, a clean and sparkling open house coupled with compelling information about the benefits of buying now might just turn a visitor with no intention of buying into someone opening up to the idea.

For this group, I would have information on interest rates and comparable monthly payments. From 3.25% all the way up to 7% (representative of the likely range of interest rates they may be paying). Show what the monthly payment on the property you are holding open might be at today’s interest rate (make sure if you reflect a 20% down payment that it is clearly indicated along with all appropriate disclaimers).  If you are a Club Zebra PRO member, you may download an article to distribute as well.

Other market information that I would have available includes:

  • Change in median home sales price over the last five years (both for your area and locally around the open house)
  • Change in inventory and homes under contract
  • Change in days on market
  • Sold Homes per month over the last several years

People love historical data and much of it is available through your MLS. Create a few graphs and put them on a market information board and you will find people taking a closer look and hopefully asking questions. This is a great opportunity to offer to send them the report, so they can look at it more in-depth at their leisure (and there you have their contact information!).

If you are in a lower-priced home, keep in mind that you may have first-time homebuyerscoming through your open house. Make sure you have information on the buying process, getting pre-qualified, the impact of changing interest rates, and even a piece on how to build wealth through appreciation, and home ownership versus paying rent. If you are a Club Zebra PRO member, you can download that tool here.

In terms of property marketing, you should have the following:

  • Welcome sign at the front door indicating visitors should come in
  • Special feature cards highlighting the not-so apparent benefits of the property (such as heating system, built-in vacuum, on-demand hot water, etc).
  • House flyer with feature sheet - take all the special features and list them on one sheet
  • Amenities map - showing the location of nearby amenities such as shopping, parks, schools, etc.
  • Aerial map - show what the property looks like from above!

And finally, I would have a Tour of Homes book (also known as the Open House Book). This book shows other homes for sale in the area which are priced just a little higher and a little lower than the home you held open.

How am I going to get all of this together by the open house weekend?

Don’t panic! If you are starting from scratch, I have a few solutions for you:

  1. You may not be able to get all of it done in the next two weeks. Just choose a few things to get done now but make a plan for implementing the rest throughout the open house season.
  2. Order the Unforgettable Open House Lead Generation system. It is chock-full of ready-to-use templates for you to customize with your own information. And right now it is sale-priced at $397 ($297 for Club Zebra PRO members) AND you will receive a month of Club Zebra PRO membership absolutely FREE!
  3. OR Get the Unforgettable Open House Lead Generation System… for FREE! Yes, you heard correctly! Now through April 20th, I am giving away my Open House Lead Generation system for free to agents who order a branding package. If branding and getting your business systems in order is on your spring-cleaning “To Do” list, there has never been a better time to get started! And with our customizable packages andfinancing options, there is no excuse not to get your branding done! Click here for our branding packages or send us an email to solutions@thelonesgroup.com to get started. Or give us a call at our office at 360-527-8904! To read more about this exciting offerplease click here.

Agents, I know I have given you a lot of information today, but this season is going to be the best one yet and I want you to be prepared and to SHINE! Let’s get some energy around open houses in our communities in a big way and throw those doors wide open!!!

By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the source for all things “real estate”. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

Open Houses: Your Time to Shine When Presenting Features & Benefits

I have heard many agents complain over the years about open houses being a “waste of time.”

While this could be true if you don’t do your marketing ahead of time to ensure traffic, open houses can provide you an excellent opportunity to showcase features and benefits and actually sell the home you are holding open.

If you haven’t visited a new home community in a while, consider it a good lesson in how to present features and benefits. The new home sales industry does an amazing job of illustrating the features and benefits of not only their homes in general, but down to the insulation, windows, finishes, and everything in-between. No one sells homes better than a well-trained new home specialist armed with beautiful marketing collateral that has learned the art of communicating with the potential buyer and learning about what excites them and what will motivate them to buy, and presents the information based on fulfilling those needs.

Today people will pay for what they want and need and often until that want and need is pointed out to the client they may not even know that they just can’t live without it.

The new home sales industry does an excellent job of painting a visual picture of the benefit of the features they are showcasing. And showcasing is exactly what needs to be done when selling homes.

Buyers today want all the information and they want it delivered in a way that they can embrace. When trying to showcase a large lot for example, there is simply no room for just presenting the facts - such as “large 300 x 500 fenced lot.” Paint a visual picture for the client of the many benefits of a large lot. Perhaps those benefits include the ability to entertain, the ability to have a large play area for your pets, and if there is a possibility that a shop could be built on that large lot then you need to showcase that benefit as well.

If you can take the time to communicate with the potential buyer and learn about their needs at an open house, then you can easily tailor your benefits message to meet those needs and solve those problems.

And even if you can’t be with every single person at your open house - that is what special feature cards are for! Yes, the special feature cards are factual (feature-based), but if you have never utilized these before, you might be surprised at how much these slow down potential buyers and get them asking questions, giving you the opportunity to learn more about them and how you might frame up benefit statements.

In fact, I once sold a house I was holding open to a couple based on my having a special feature card which included all the details about a furnace that had just been installed. The couple had been in the garage for awhile in discussion, and the wife finally came to me and started talking about the trouble they had just gone through with their current furnace. She told me that they were trying to decide between that house and another, but she thought they would move forward with purchasing that home based on the new furnace. Because she shared that information with me, I was then able to discuss those benefits to her, but we may not have gotten that far without those special feature cards. In fact, the wife had liked another house better, meaning if I hadn’t shown that feature, I may not have sold that home that day.

Today’s buyer wants to hear all the possibilities that come with the home and it is your job to present them. Think features and benefits - not just facts. Facts inform, but features and benefits sell home.

The agent today that learns how to showcase features and benefits during their open houses is sure to see a dramatic increase in their ability to convert and close clients. When listing a home and holding it open, first make a list of all the wonderful features that home has. Then create the benefit of that feature by asking this simply question, “so what?” Why does this feature matter? When you have answered this question about each feature you have just made an invaluable list of all the benefits of this home and that is what buyers want showcased to them today.

By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the source for all things “real estate”. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

Baby Boomers & New Homes - Irresistible Attraction

Baby Boomers are individuals born between 1946 and 1964 - and they are a very important part of the new home industry due to their strong buying power. Not only have they worked for many years and have equity in their existing homes, but they also have inherited the largest passing down of wealth from their parents. Most of the Baby Boomers’ parents were from either the Silent Generation or the GI Generation - both generations of savers. That strong saving ethic has translated into wealth being passed down to Baby Boomers.

In addition to inheriting from their parents, Baby Boomers are no strangers of leveraging.They are the first generation to really capitalize on this concept and many have leveraged their existing homes to buy second homes and investment properties. And while the real estate correction slowed their spending down it did not slow down their love for their homes. To a Baby Boomer, the home has much more significance than just a place to live - it is where they have raised their children and made their memories. It represents safety, security, love and pleasure. To Baby Boomers, their home truly is their castle.

Many Baby Boomers feel, however, their castle is in need of a little makeover. Perhaps they feel their kitchen is a better fit for scullery maid cuisine than their culinary creations. Or perhaps the space no longer fits their ever-changing needs. Their children have grown up and moved on (or not). They may be caring for other adults. Or they may have health concerns which make it more difficult for them to climb stairs. They may want space for their grandkids to stay over. In any case, they are looking to new homes to satisfy their desire for something new and something right for them.

In fact, the National Association of Home Builders did a survey both in 2006 and in 2012 in which 1,400 Baby Boomers were asked to evaluate their satisfaction with their current home. The results indicated that overall satisfaction with their current home slipped 19% between 2006 and 2012 (from 49% to 30%). These results are surprising:

  • 4% reported they were very dissatisfied with their home
  • 4% reported they were dissatisfied with their home
  • 17% indicated they felt neutral about their home
  • 44% were satisfied with their home
  • 30% were very satisfied with their home

Of the respondents, 24% of the 55-64 age group indicated the recession delayed their plans to move while 19% of the 65-74 age group delayed. This represents pent-up demand, and as conditions continue to improve, we can expect these Baby Boomers to find home solutions that give them exactly what they want.

Baby Boomers with bucks are once again flocking to new home sales centers like children to ice cream trucks. They find new homes irresistible and with the increase of home improvement and decoration shows on almost every other channel they just can’t control their want for new spaces.

So what is it about new homes that Baby Boomers love so much? First and foremost is the idea of being able to customize the home to give them exactly what they want in the size of home they need. When Baby Boomers are given the choice to customize their homes, they have the will and means to pay for it and they will do so. Builders who have realized this powerful trend and provide customization or “personalization options” are reaping the benefits of a smart marketing move. Customization and personalization are the new buzz words for the Baby Boomer.

What our builders are building today will undergo even more change tomorrow because the Baby Boomers are reshaping the new home sales industry. Baby Boomers know what they want and they want it their way. Smart builders and smart real estate professionals are benefiting from working with this very creative and financially-capable generation by giving them what they really want - “personalization” their way.

Source: http://www.nahb.org/generic.aspx?genericContentID=194333&fromGSA=1

By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the source for all things “real estate”. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

Editing Your Life… Essential for All Agents

There are only so many hours in a day, days in a week and weeks in a month. Time is the one thing that we can’t buy more of. We are the only ones who are in complete control of our time. It can’t be stored up for a rainy day and you can’t go to the store to get more. Everybody has to live within the budget of time that they are given. Unlike being able to go out there and earn more money, you just can’t go out and earn more time. When it’s gone… it’s gone!

So with that in mind, how are you utilizing your most precious commodity? Like most agents, there are things in your business that are robbing you of your valuable time. Whether agents are spending hours working with buyers that are not qualified to buy; or wasting time running around filling flyer boxes on listings they know will never sell because they are overpriced; or even volunteering their precious time to a committee that just sits around and complains rather than getting anything done - every one of us is guilty of frittering away our hours on things that drain us of our energy. Is this really the way you want to spend your valuable time? I didn’t think so!

We have all taken time for granted at some point in our lives. Eventually we must realize the critical importance of protecting our time and utilizing that time better. One method to curb the in time thieves in your life is to edit. Editing is the art of removing what isn’t working in your life. Because you only have a limited number of hours in a day it is critical that you “edit” out the non-essentials. Is wasting your time being on a committee that you are no longer passionate about really a good use of your time or is that time better spent at home recharging and spending time with the people you love? Doing so will only give you more energy for doing the things that you are passionate about.

I see real estate agents racing around from touring buyers to keeping transactions together, rushing off to a committee meeting or PTA meeting, only to find themselves exhausted at the end of the day. And their effectiveness at everything is drastically diminished because of this.

When you edit, it is not just about removing things from your life that you are not passionate about, it is also about removing things from your life that cause you pain and stress. And sometimes that includes having to edit people out of your life.

For example, if you have an associate in your office who is always complaining and whining, this not only takes up your valuable time, it will also zap your positive energy. If you have ever worked with someone who was always negative, difficult to be around and even their general outlook on life was depressing. You know how draining that can be. It is then time to edit that person’s interaction with you by limiting the amount of time you give to that person.

When you are editing, really take a good hard look at everything you do from day to day. Consider the following questions:

  • Is this the best use of my time?
  • Is there a better way to do this?
  • Is there someone else better-equipped to do this?
  • Is this adding to my energy or depleting it?

Then if it is clear that this is something that should be edited, ask:

  • How do I edit this from my life?

Once your life is edited, like a garden that has just been weeded, it is important to plant healthy plants or the weeds will just come back. Determine what gives you energy and add these things to your life. Perhaps you get energy from spending time with your family, exercising, or cooking. Perhaps there are key people who you should be spending more time with. Consider these and make a plan to add more of this in.

When you are feeling overwhelmed and exhausted and you know that something has to give, why not edit the events and people that are no longer bringing you joy or purpose right out of your life. You will be very happy you did and your effectiveness will increase because of it!

I challenge you to take one week out of your life and edit any events, people, or stressful situations out of it. Then email me and tell me how this one week of editing affected you. I think you will amazed at what happens. I will be giving away a free six month Club Zebra PRO membership (a $300 value) for the most impactful editing process! Deadline is March 25th, 2013.

By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the source for all things “real estate”. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

What Low Inventory Means for Buyers and Sellers

The real estate market is alive and well! The multiple offers we are seeing on so many listings is proof of that. With resurgence in our market comes a rapid decline in inventory. One of my clients recently reported that they had over 50 groups in their open house and that they expected over 10 offers on this property. I am hearing this kind of scenario all day long.

Multiple offers are now as common as foreclosures and short sales used to be.

So what does this mean for buyers and sellers? Should sellers line up to sell to take advantage of this? Should buyers sit at home and wait until the crowds die down? That entirely depends on the motivation of both the buyer and seller and their particular reason for buying or selling.

Typically in a low inventory market this means that a seller will sell their home for more AND a buyer will pay more. Does this mean then that a buyer shouldn’t be buying right now? ABSOLUTELY NOT! With the current interest rates hovering around an all-time low it is absolutely still a fantastic time to buy real estate. And while most buyers might cringe at the price they may have to pay if competing in a multiple offer situation, they could possible cringe more if they waited to buy and interest rates went up.

In a market like we have now both buyers and sellers have to look very closely at the pros and cons of being in the market now. A seller might ask why would they want to list now if the inventory is so low. Doesn’t that mean house prices would go up because of the lack of inventory? While this seems like a good assumption there are many variables that make that kind of speculating just that … speculation. Nobody knows for sure what the interest rates are going to do tomorrow, so sellers and buyers need to look at their particular situations very carefully.

If a seller needs to sell but they want to hold off in the event inventory gets any lower they may also be holding off long enough to see an increase in interest rates which could cause the buyer pool to diminish. The question becomes whether or not that seller wants to speculate or if they want to be in the market as it is today. A “sure thing” today may not get sellers a speculated increase tomorrow. Perhaps the stars will align tomorrow, but today’s market it is a sure thing. Sellers and buyers must look at an analysis of what it looks like to buy or sell today and what it could look like to buy or sell in the future – looking at how differing market conditions (such as changing interest rates and inventory) might affect the market for that property.

Buyers need to know that we are still at an all-time high affordability rate and we have historically low interest rates. While they may be paying higher than they wanted if they have to compete in a multiple offer situation, what they save with the low interest rate will quickly make up for that over time.

Sellers need to know that while the market seems to be in their favor right now it does not mean that this is going to last forever … or things could improve even more. The decision to sell needs to be about more than just speculation and playing the market.

Ultimately both buyers and sellers are winning right now in what appears to be the perfect storm for both buyers and sellers. As an agent giving advice, present the facts about the market now and help paint a picture of a future with a number of scenarios so buyers and sellers can check their tolerance for risk and make a decision.

By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the source for all things “real estate”. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.

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