PENDING Home Sales
NAR 12/2014
Foot Traffic (indicator of future sales)
Foot Traffic (indicator of future sales)
2014 Home Sales & 2015 Projections (Existing & New Construction in millions)
Months Inventory of HOMES FOR SALE
NAR 12/2014
3 POWERFUL Prospecting Techniques
1. 10-10-20 2. Direct Mail 3. Content Marketing
10-10-20
BUYERS’ GUIDE
Winter Edition
DIRECT MAIL
BRANDING
STOP with the
Cherry Pie Recipes
beatles
No music trivia! PLEASE!!
Q: When do most listings come on the market?
A: The 2nd Quarter of the Year
The 4 Major Mistakes agents make when prospecting for sellers
1. 2. 3. 4.
Bragging about Themselves Bragging about Their Company Branding the Wrong Message Telling instead of Teaching
Not 'Anything Goes’
2 REASONS to use GREAT CONTENT
#1
#2
Builds an
Creates a
AWARENES S
PREFERENCE
for your “When your brand valuable content is shared widely on social networks, that’s ‘free’ brand awareness.”
“Engaging content marketing makes you a trusted source of information and education.”
for your brand
- Tips from Marketo
“When you freely give your audience something so valuable that they’d be willing to pay for it, you build trust – which, ultimately, is your most powerful selling tool.” - Marketo
Enough Trust to Let You‌ Sell possibly the largest asset their family owns Set the correct market value on that asset Set the time schedule for the liquidation of that asset Set the fee for the services required to liquidate that asset
Rainmaker Content 1. Solves real audience problems 2. Reflects the character, passion, & knowledge of an authoritative person 3. Finds a fresh approach to the topic 4. Is interesting and easy to read
Copyblogger
FSBOs as a Percentage of all Home Sales
The percentage of homes selling as a FSBO has decreased from 19% to 9% in the last 20+ years
Typical Sold Price* FSBO vs. Agent
$235K
$209K
By FSBO
By AGENT
*The ‘typical’ price is actually the average price in the survey. However, studies have shown that people are more likely to FSBO in markets with lower price points.
Where Buyers Find the Home They Purchase Over the Last 10 Years by percentage
The Internet
Yard Signs
Newspapers
% of Buyers who used an Agent
NAR
The Why & What of Pre-Listing Packages
The 2 Major Mistakes 1. Bragging about Themselves 2. Bragging about Their Company
CONFUSION
HOME PRICES
Case Shiller Year-Over-Year PRICE CHANGES
S&P Case Shiller 12/2014
House Appreciation Cumulative by 2019
Bulls
All Projections
Bears
Home Price Expectation Survey 2014 4Q
Q: When do most listings come on the market?
A: The 2nd Quarter of each Year
2014 Available Inventory in millions
SELLERS’ GUIDE
Winter Edition
Marketing yourself as a L SO
D
‘SELLING MACHINE’
5
Financial Reasons to Buy Reason
Quote from Harvard Report
Housing is the one leveraged investment available
“Homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor.”
You're paying for housing whether you own or rent
“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”
Owning is usually a form of “forced savings”
“Having to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings.”
There are substantial tax benefits to owning
“Homeowners are able to deduct mortgage interest and property taxes from income.”
Owning is a hedge against inflation
“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”
Joint Center for Housing Studies, Harvard University12/2013
Homeowners Net Worth‌
OVER 36X
greater than renters
Federal Reserve
30 Year Fixed Rate Mortgages
Freddie Mac Actual Rates January 2013 – December 2014
Freddie Mac 12/2014
Mortgage Rates Freddie Mac 30 Year Fixed Rate Q4 Q3 Q2 Q1
Where Have They
Where Are They
Been?
GOING?
2014
2015 Projections
Historic Mortgage Rates by Decade
Decade
Average Rate
1970s 1980s 1990s 2000s
8.86% 12.7% 8.12% 6.29%