Staying Positive: Focus on What You Can Control By Paige Tepping
RISMEDIA, March 4, 2010—When the going gets tough, it is crucial to focus on things that have brought you success in the past- rather than the things you have no control over. Here, Bob Tenace, Owner/President, Century 21 Tenace Realty in South Florida discusses the importance of staying positive in today’s challenging market.
Bob Tenace
Owner/President
Century 21 Tenace Realty
South Florida
Region served: South Florida, specifically Broward and Palm Beach counties
Years in real estate: 30
Number of offices: 2
Number of agents: 200
Average sales price: $160,000
Average time on market: 120 days
Setting goals: Every December, our agents go through a goal workshop during which everyone lays out their plans and goals for the following year. We work with each of our agents on a monthly basis to help them stay on track in order to achieve their goals.
How are you facing the market’s biggest challenges? The overall economic picture in South Florida is one of our biggest challenges due to the level of unemployment we are experiencing, as well as a lack of confidence in the real estate market. In order to take on these challenges, we have stopped worrying about things that are beyond our control and instead focus on the things that have kept us successful for the past 30 years.
What are some of your best practices in terms of communicating with your staff and clients?
It is important that our agents communicate with their clients through the type of communication the client prefers—text message, e-mail or phone calls. Our agents all have smartphones, so they are able to stay in touch through various forms of communication. Internally, we send a weekly e-mail to our agents reminding them what is going on during the week. Our sales meetings are an additional way that we all stay in touch and are aware of what is happening within the company as well as the marketplace.
What are some of your best online marketing strategies?
Last year we re-launched our website to provide consumers with as much information in one place as possible. Within the past few years, an increasing amount of our marketing effort has been allocated toward the Internet since that is where prospective buyers are beginning their search for a home. We include virtual tours on each of our listings and utilize Leadrouter, a management system provided through CENTURY 21® that allows our managers to oversee the leads coming in as well as agents’ responses. The Internet has changed the way customers search for homes, and agents must prospect differently now in order to take advantage of it.
What is essential to your company’s continued success?
Our company has always been known as a training organization for people that want to have a career in real estate. In addition to providing our agents with the tools and guidance they need to have a successful career, our longevity and reputation for providing excellent service is another key factor to our success over the years.
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Existing-Home Sales Down in January 2010 but Higher Than Year Ago
RISMEDIA, March 4, 2010—Existing-home sales fell in January 2010 but are above year-ago levels, according to the National Association of Realtors. Existing-home sales- including single-family, townhomes, condominiums and co-ops- dropped 7.2% to a seasonally adjusted annual rate of 5.05 million units in January from a revised 5.44 million in December, but remain 11.5% above the 4.53 million-unit level in January 2009.
Lawrence Yun, NAR chief economist, said there is still some delay between shopping and closing that affected current sales. “Most of the completed deals in January were based on contracts in November and December. People who got into the market after the home buyer tax credit was extended in November have only recently started to offer contracts, so it will take a couple months to close those sales,” he said. “Still, the latest monthly sales decline is not encouraging, and raises concern about the strength of a recovery.”
Total housing inventory at the end of January fell 0.5% to 3.27 million existing homes available for sale, which represents a 7.8-month supply at the current sales pace, up from a 7.2-month supply in December. Raw unsold inventory is 9.6% below a year ago, and is at the lowest level since March 2006.
“Activity should be picking up strongly in late spring as buyers take advantage of the tax credit, which is critical to absorb distressed properties reaching the market and to continually chip away at inventory,” Yun said. “With a downtrend in the number of homes on the market, especially in the lower price ranges, values are beginning to firm but with great variance around the country.”
The national median existing-home price for all housing types was $164,700 in January, unchanged from a year earlier. Distressed homes, which accounted for 38% of sales last month, continue to downwardly distort the median price because they typically are discounted in comparison with traditional homes in the same area.
A parallel NAR practitioner survey shows first-time buyers purchased 40% of homes in January, down from 43% in December. Investors accounted for 17% of transactions in January, up from 15% in December; the remaining sales were to repeat buyers. The survey also shows that buyer traffic increased 9.4% in January.
NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said buying a home in the current environment has become more challenging. “First-time buyers and others who need a mortgage are increasingly losing out to all-cash investors for the best bargains in many areas, particularly for foreclosed homes where cash is king,” she said. “Inventory conditions vary by price range, and of course there are major differences depending on location. Realtors are the best buyer resource for strategies on winning bids in increasingly competitive markets,” Golder said. “The bidding for more desirable homes will only accelerate between now and the April 30 contract deadline to qualify for a tax credit of up to $8,000.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage edged up to 5.03% in January from 4.93% in December; the rate was 5.05% in January 2009.
Single-family home sales fell 6.9% to a seasonally adjusted annual rate of 4.43 million in January from a level of 4.76 million in December, but are 8.6% above the 4.08 million pace in January 2009. The median existing single-family home price was $163,600 in January, down 0.4% from a year ago.
Existing condominium and co-op sales dropped 8.1% to a seasonally adjusted annual rate of 620,000 in January from 675,000 in December, but are 38.1% above the 449,000-unit level a year ago. The median existing condo price was $172,400 in January, which is 1.4 % higher than January 2009.
Northeast
Regionally, existing-home sales in the Northeast fell 10.9% to an annual pace of 820,000 in January but are 22.4% above a year ago. The median price in the Northeast was $245,300, a gain of 8.8% from January 2009.
Midwest
Existing-home sales in the Midwest declined 6.9% in January to a level of 1.08 million but are 8.0% higher than January 2009. The median price in the Midwest was $130,300, which is 1.0% below a year ago.
South
In the South, existing-home sales dropped 7.4% to an annual pace of 1.87 million in January but are 12.0% above a year ago. The median price in the South was $140,200, down 2.0% from January 2009.
West
Existing-home sales in the West declined 5.2% to an annual rate of 1.28 million in January but are 7.6% higher than January 2009. The median price in the West was $203,400, down 5.8% from a year ago.
For more information, visit www.realtor.org.
8 Steps to Prepare for April Tax Obligation
RISMEDIA, March 3, 2010—With the U.S. federal income tax filing deadline of April 15 now just weeks away, taking time to review your tax situation and plan for any needed action will save you time, stress and, quite possibly, money.
With the economic recession impacting so many Americans in 2009, many people will have complicated filing situations this year, says Jeff Staley, president of Freedom Tax Relief, LLC. “This is the time to prepare, review your tax obligations and evaluate your alternatives for payment if you find you may have difficulty in paying your tax bill this year.” Staley recommends taxpayers follow these steps now in order to be ready for April 15:
1. Make a plan for filing. Make plans now to ensure that you will be able to file your income tax return on time. If that is impossible, file an extension. The Internal Revenue Service (IRS) is more forgiving of those who follow the rules than those who skip filing. Even if you cannot pay your tax debt in full on April 15, filing the required forms will result in smaller penalties.
2. Understand tax on unemployment benefits. Unemployment income is taxable. If you received unemployment benefits during 2009, you should have received a Form 1099-G providing the total amount received. If your employer paid separate unemployment compensation, that income should be reported on your W-2 form as income. Note that the first $2,400 of government benefits received in 2009 is exempt from tax, thanks to the American Recovery and Reinvestment Act.
3. Prepare documentation for tax credits. Review your 2009 expenses to know whether you qualify for credits. The American Recovery and Reinvestment Act of 2009 (e.g., stimulus package) included many tax credits, ranging from an expanded health coverage tax credit to new education benefits.
4. Maximize deductions. If you made donations to nonprofit organizations in 2009, make sure you obtain needed appraisals or valuations to list these contributions accurately in your tax forms, per IRS guidelines.
5. Contribute to your retirement plan. If you plan to contribute to a retirement plan, you can still make tax-deferred contributions for 2009 until April 2010.
6. Estimate your payment. You can estimate your tax obligation by reviewing a copy of last year’s tax form, completed with your 2010 data. If you purchase tax return software, you can use that. Or go to www.irs.gov and download a PDF version of your form to fill out.
7. Plan for payment. If it looks like you will have a larger tax bill than you can afford to pay in full by April 15, the IRS suggests taxpayers find any means possible to pay that bill, including bank loans, cash advances on credit cards, using savings, borrowing against retirement or life insurance, or using equity in assets (such as a home) to pay. However, if you are in dire financial circumstances, exchanging one debt for another will not make things easier, and putting a home at risk is almost always a bad idea. Consult a tax and/or financial adviser before making a decision.
8. Evaluate your alternatives. If you will absolutely be unable to pay your tax bill, contact the IRS. The agency sometimes gives some leeway to taxpayers who contact them directly or pay a late bill voluntarily. The IRS might waive penalties for those who cannot pay because of a death in the family, serious illness, financial records lost in a natural disaster or another “reasonable cause.”
Another alternative is tax debt resolution. Tax resolution specialists can often negotiate directly with the IRS on behalf of consumers who owe $10,000 or more. These specialists usually are attorneys, enrolled agents or certified public accountants with special training and experience. They can navigate the maze of IRS forms and calculations, help consumers understand what the IRS wants, and help them resolve their tax debt.
“As the April tax filing deadline looms, it is time to face up to the demands of the IRS and determine a payment strategy for your tax bill,” says Staley. “In these economic times, it is good to know that help is available for those who need it.”
For more information, visit www.freedomtaxrelief.com
Recession-Proof Your Business with Billion Dollar Real Estate Producer Valerie Fitzgerald
RISMEDIA, March 3, 2010—Looking for strategies to strengthen your real estate business in this new real estate market in which we’re living? Valerie Fitzgerald’s mentoring program is the answer, she says.
In response to wanting to share her tool kit with other real estate agents and entrepreneurs, Fitzgerald launched the Heart and Sold Mentoring Program – an authentic, transformative, mentoring experience to help move people’s business forward using proven strategies Fitzgerald has tapped that are effective and efficient.
With cumulative real estate sales over $1 billion, Fitzgerald has dominated the Beverly Hills and West Los Angeles real estate markets for more than 20 years. She’s topped tens of dozens of Top 10 and Top 100 real estate lists across the U.S. and authored the book Heart and Sold: How to Survive and Build a Recession-Proof Business (Simon & Schuster).
“When people ask me what the keys to my personal and professional success are, I say ‘trial and error and a lot of hard work,’” says Fitzgerald. “However, people want a concrete blueprint to follow, something tangible they can grasp and implement on their own.”
Now Fitzgerald followers and fans can join Valerie in person on a monthly call to gain insight on strategies she practices every day that have catapulted her to success. Topics have included: goals and time management, social media, newsletter marketing and real estate practices: A to Z.
“I appreciate and see the value in what Valerie has done by reaching out nationally through her book and mentoring program,” says Kelly J Vaughn, Exit Landmark Realty. “Valerie shares a wealth of information through her newsletter and website, not to mention her video updates, showcasing all her new real estate projects. “Heart and Sold Mentoring” delivers an excellent platform to take my business to the next level, and I value the insight that Valerie has to offer.”
“This tele-workshop is in response to numerous requests to share my experience, strategies and tools with a wider audience,” says Fitzgerald.
“I’ve been privately coached for the past 15 years and I’ve realized the exceptional results from this type of guidance and accountability.”
For more information, visit http://www.heartandsoldmentoring.com or the Valerie Fitzgerald Group website.
About Valerie Fitzgerald
Valerie Fitzgerald is the president of The Valerie Fitzgerald Group and specializes in luxury residential real estate in West Los Angeles in neighborhoods like Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu.
Online Marketing: The ‘Silver Bullet’ for Internet Success By Mike Parker
RISMEDIA, March 3, 2010—Everyone wants to somehow profit from the Internet. These days – with 80+% of all homes sales beginning on the Internet, the ‘wants’ has changed into ‘must.’ Any agent who is not making a significant percentage of their sales from Internet activity is missing out on more commissions than they can imagine as well as continuing up that traditional methods trail that surely is becoming a dead end.
That’s part of the reason so many methods of trying to succeed online are out there: everyone is looking for the ‘Silver Bullet’: the one thing that will make them successful.
You remember Silver Bullets (before they referred to Coors beer cans), don’t you? In ancient days, silver bullets were believed to be the only effective way to kill werewolves and witches. More recently, the Lone Ranger (a mythical ex-Texas Ranger who rode the range righting wrongs and dispensing justice with his faithful sidekick, Tonto) used silver bullets as his calling cards, using them as a symbol for justice done. Although witches and werewolves are making a comeback in the movies, no one seems to have actually encountered one of late and the demand is also down for an ex-ranger and his loyal companion who ride around the West righting wrongs. There are over one million agents who would like to crack the Internet, however, and it appears that a Silver Bullet might be just what they need.
Today, anything referenced as a Silver Bullet possesses near-magical qualities that allow the user to overpower difficult problems. Efficient air conditioning, for example, was the “silver bullet’ to developing the humid climes of Florida into one of our most populous states. Penicillin was the ‘silver bullet’ that finally allowed physicians to conquer dreaded bacterial infections. And so on. The term has been adopted into a general metaphor, where “silver bullet” refers to any straightforward solution perceived to have extreme effectiveness. The phrase typically appears with an expectation that some new technology or practice will easily cure a major prevailing problem. Thus, the problem would be that most agents can’t seem to make the Internet produce for them, and the technology (“the practical application of knowledge especially in a particular area” and “a capability given by the practical application of knowledge”) has not improved much in five or more years, until now.
This Silver Bullet delivers buyers to agents
It finally appears that the Silver Bullet has been invented that enables almost any agent* to generate real leads and sales from online buyers without breaking the budget. Consider these examples:
1. An agent in Windsor, Ontario, acquired the technology in December 2009. In January 2010, the technology brought the agent $1.4 million in residential house sales in a market where the average home price is $150,000—so far. The technology has also brought the agent 57 quality leads from only 600 total visitors to his website, so far.
2. An agent in Hilton Head, SC sold a condo to the very first lead the technology brought her—29 days after she acquired the new technology. She also has received 55 additional quality leads that she is continuing to work with, so far.
3. An agent in Wasilla, AK, acquired the technology in August of 2009. The technology has delivered over 120 quality leads to him from which multiple sales have closed. He states that his investment has already been returned 10 times or more, so far.
4. An agent in Etobicoke, ON, is negotiating a $600,000 sale two weeks after acquiring the technology.
5. The technology produced a request from an elderly couple who live in a two-story home in an exclusive neighborhood to a Southern California agent: the couple finds stairs increasingly difficult. They love where they live, however, so they asked the agent to sell their $1.2 million home for them and find them one of same value in a one-story in the same neighborhood. The elderly couple was attracted by the agent’s simple message: “Tell me what you want.” They wanted to sell and they wanted to buy.
These are but a few of hundreds of examples we could list.
Clearly, something unusual is going on when agents from anywhere can start receiving high quality leads and making sales from Internet buyers almost immediately simply by switching this technology on.
Since this technology became available about six months ago after a four month beta test period, hundreds of agents have adopted it and—far more often than not—their results mirror those above. There are exceptions, of course.
Technology can’t make up for poor sales follow-up or an inability to engage clients and develop relationships with them. (Occasionally, the leads don’t come as often as they should. At least if that happens, a client will get their money back, pro-rata!) More than 80% of those who use the technology succeed right out of the box, however.
*Who will accept proper training and follow practices taught in that training.
This Silver Bullet hits the target without you having to be a ‘crack shot’
Here’s just a few of the ways this technology makes online success possible for any agent—regardless of technical skill level:
• The technology requires no work by the agent to implement—everything is done for them; it does require work by the agent to sell to the customers that the technology delivers to the agents.
• The technology combines a super-streamlined and branded personal website with the best in organic and intelligent paid search and limited content that out performs any traditional website in terms of converting visitors to registrations; resulting in an average 8 out of every 100 visitors to such sites signing in and asking for more information from the agent; all inclusive and with no extra cost options or charges; all professionally managed by the host for you exclusively at a fixed cost. The agent has no further tasks to perform after choosing the color and specialties they want to attack and providing a photo of themselves and a copy of their logo; the agent simply must follow up on the leads. This technology is provided on a limited distribution basis. That is, each marketplace may only support a finite number of agents and the money-back guarantee means that the vendor cannot exceed the natural ability of the market to satisfy a proper amount of clients. A small town—or two small towns— may only support one such site with demographics determining the scalable density allowable in any city or town. (The proprietary knowledge of the vendor regulates against over- selling territories or specialties).
• The technology starts bringing real leads to the agent within weeks; real people signing in with their name, phone and/or email address are contacting you about receiving further information about something they saw on your personal site. Over time, the agent is guaranteed 100+ such leads at minimum. (These are not the lead aggregator type of lead, where someone applied for a mortgage, checked a home’s value, or filled out a form somewhere and where they may have no interest in real estate. These are real leads from real people who have looked at your personal site and want more information).
In sum, the technology represents turn-key Internet prospecting, effective anywhere for any market, at a fixed price and with a money back guarantee. Nothing like this has been offered before now.
The future of online marketing for real estate professionals
There’s no argument that the Internet is a large part of the future for real estate professionals; with 80+% of home sales beginning there today, it’s clear that for the buyer, the Internet is the future. They are never going back to having no information available to them and having to go into an office to look at an MLS book.
In the final analysis, it is that truth which explains the success of these Professionally Managed Lead Sites that embody the technology referred to throughout this article: the public wants help choosing their home and they want it from a knowledgeable professional. They do not want to be left to themselves trying to finalize what they are dreaming of buying. They’ll go so far as to go online and look at homes to narrow things down, but when it comes to the next step, they want a real estate professional on their side. That’s why this technology is so right for these times: it re-establishes the agent as the source of information and convinces the Internet visitor to ask the agent for exactly what they want.
That is where all this is going: use technology to find the area of interest and use the agent to bring the sale home. The agent returns to being the authority source and uses the tools available to them to give the client what they want. Technology is making that future happen today for several hundred agents who have embraced this technology, early. It will take a few years to determine whether this trend is permanent or fleeting, but for the foreseeable future, those embracing the technology are doing far better than others at finding online buyers. This Silver Bullet may go the way of the Lone Ranger and Tonto, but today, it’s dominating online prospecting. Cue up “the William Tell Overture “and make hay while the sun shines.
Mike Parker (mparker@theblackwatercg.com) is a well known authority on the subject of online marketing services for Realtors® and other real estate professionals. If you’d like a demonstration of this powerful new technology known as a professionally managed lead site that is managed exclusively for you, click here and we’ll be happy to provide it for you at no cost or obligation.