RAINMAKER JULY 19, 2011
Monday, July 18, 2011
Activity Report Listings, Pendings, & Sold July 2011:
Listings
Pending
Closed
Week 1
2
1
1
Week 2
4
2
3
Week 3
1
5
9
Month Total
7
8
13
Goal
20
20
22
Week 4
I must do the most productive thing possible at every given moment. Tom Hopkins
Monday, July 18, 2011
JULY RAINMAKERS PUT IT IN PENDING!
STANDINGS
WHO WILL TAKE JULY?
Monday, July 18, 2011
•
Charlotte Beasley- 1
•
Jacob Hartley- 2
•
Wes Thornbury- 1
•
Amber Harrison- 1
•
Lindsay Gquest- 1
•
Leslie Toups- 0.5
•
Clark Girardeau- 0.5
JULY RAINMAKERS PROPERTY MGT REFERRALS!
PAYOUT
$100/per
STANDINGS
thank you! •
Marcile Sims- 4
•
Rose Gibbs- 1
•
Victoria Wood- 1
•
Ed Phillips- 1
upon leasing!
You simply refer them to us and we do all the setup. It’s that easy! Monday, July 18, 2011
Discussion Agenda
Monday, July 18, 2011
Work by Referral. Live the Good Life!™ Monday, July 18, 2011
Brian Buffini’s Real Estate Report
Buying, selling or financing a home is one of the biggest decisions a person will make, so it’s only natural that they want to work with a knowledgeable professional they can trust. Remaining educated on the market and providing your clients with relevant and current information will give them peace of mind and help you secure their long-term business. That’s why I’ve compiled Brian Buffini’s Real Estate Report—updated for 2011—to inform you and help you exceed your client’s expectations. Filled with facts and figures on the industry, this report is a must-read for today’s professional. You’ll learn about current buyer and seller trends and changing demographics as well as gain insight about where the market is headed. I hope you enjoy the report and put it to use in your business. It’s a good life!
CONTENTS Industry Facts Mortgage Facts Distressed Properties Buyer Facts, Trends & Demographics First-Time Home Buyer Facts Seller Facts, Trends & Demographics Transaction & Income Information
PAGE 3
Real Estate Agent Facts Real Estate in the New Era Why Working by Referral Works
PAGE 8
PAGE 4
SOURCES:
PAGE 4
National Association of REALTORS®, 2009, 2010, 2011
PAGE 5
RISMedia, Inc., 2010, 2011
PAGE 6
CNN Money, 2011
PAGE 7 PAGE 8
PAGE 9 PAGE 10
U.S. Bureau of Labor Statistics, 2009 National Association of Home Builders®, 2011 REAL Trends, Inc., 2010 The Nielsen Company, 2009 Forrester Research, Inc., 2010 Buffini & Company™, 2010
REALTOR and REALTORS are registered trademarks of the NATIONAL ASSOCIATION OF REALTORS. © 2011 Buffini & Company. All rights reserved.
Monday, July 18, 2011
Brian Buffini CEO & Founder, Buffini & Company, North America’s Largest Real Estate Coaching & Training Company
PAGE 2
Brian Buffini’s Real Estate Report
PAGE 3
INDUSTRY FACTS Decline of FSBO sales transactions in 2010:
Less than
1 in 10
Housing is a key driver of the economy, accounting for of the GDP
21% to 575,000
9%
The national home ownership rate is nearly
77%
67%
single-family detached homes
The typical home purchased was built in
1990
Northeast $237,300
MEDIAN HOME PRICES:
Monday, July 18, 2011
Midwest $139,700
South $148,400
November 2010
December 2010
COMPARISON OF HOMES PURCHASED:
15%
West $204,000
HOUSING INVENTORY:
In 2011, single-family home starts are forecast to increase
condos
8%
townhouses or rowhouses
6%
some other kind of housing
For the past 12 years, the average homeowner’s net worth has been
31 to 46 times that of the average renter
34%
of a person’s income (the largest portion) is used for housing It is now cheaper to buy than rent in nearly of American cities
3/4
9.5 month supply 8.1 month supply
15% 52%
of homes sold were new homes of homes purchased were in a subdivision or suburb
Brian Buffini’s Real Estate Report
MORTGAGE FACTS
of buyers financed their home purchase
8%
DISTRESSED PROPERTIES
median down payment for all home buyers
Distressed homes make up of the market
4%
4%
14%
6%
91%
95%
of first-time home buyers chose a fixed-rate mortgage
56%
of first-time home buyers financed their purchase with an FHA loan
7%
median down payment for first-time buyers median down payment for repeat buyers
used the VA loan program By the end of the year, fixed mortgage rates are forecast to increase from
4.75%
36%
of buyers purchased a foreclosed home of buyers purchased a short sale
50%
of all buyers considered purchasing a foreclosed home, but did not
57%
of first-time buyers considered purchasing a foreclosed home, but did not
to
5.75%
Monday, July 18, 2011
The majority of these buyers could not find the right home or thought the process was too difficult or complex.
HOUSING IS PREDICTED TO RECOVER THE QUICKEST IN THESE STATES:
North Dakota South Dakota Iowa Nebraska Oklahoma
PAGE 4
Brian Buffini’s Real Estate Report
PAGE 5
BUYER FACTS, TRENDS & DEMOGRAPHICS
48% 68%
of first-time buyers are married couples of repeat buyers are married couples
The typical buyer purchased a
3 bedroom/2 bathroom home HOME BUYER DEMOGRAPHICS:
20%
12%
single women
8%
unmarried couples
1%
Finding the right home
other
80%
of buyers list energy efficient heating, air conditioning and appliances as must have features in their new home
More than
single men
WHAT BUYERS NEED HELP WITH MOST FROM THEIR REAL ESTATE AGENT:
More than
1/3
of buyers did not make any compromises when purchasing their home
19% 19%
TOP FACTORS influencing where a buyer purchases: 1 Quality of the neighborhood 2 Convenience to work 3 Affordability of the home
compromised on price compromised on size
Negotiating the terms of the sale Negotiating the price Completing the paperwork
59%
married couples
The average buyer searched for
12 weeks The average buyer viewed
12 homes
Monday, July 18, 2011
Buyers won’t compromise on storage space!
14%
of buyers own 2 or more homes
Repeat buyers plan to hold their property for
15 years
Brian Buffini’s Real Estate Report
FIRST-TIME HOME BUYER FACTS 2010
50%
PERCENTAGE OF BUYERS WHO WERE FIRST-TIME HOME BUYERS:
First-time home buyers plan to stay in their home for
10 years
2009
47%
2008
41%
93%
of first-time home buyers used the first-time buyer tax credit
MEDIAN PRICE PAID: First-time buyers
$152,000 Repeat buyers
$215,000
First-time buyers searched an average of longer than repeat buyers
2 weeks The average income of a first-time home buyer was
$59,900
The average square footage of a first-time home buyer’s house was
1,540 And cost
$152,000
Monday, July 18, 2011
30
Typical age of first-time home buyer
PAGE 6
Brian Buffini’s Real Estate Report
PAGE 7
SELLER FACTS, TRENDS & DEMOGRAPHICS The median age of a seller is
49
of the final listing price
8 years
8 weeks
(down from 10 weeks in 2009) OF SELLERS:
50% 28%
traded up
21%
traded down
bought a comparably sized home
Monday, July 18, 2011
43%
Sold directly by the owner
$140,000
listed 93% oftheirsellers home on
of sellers did not reduce their asking price
27% reduced it only once
$199,300
Sold using a real estate agent
96%
The typical seller has owned their home for
The median time for a home on the market was
MEDIAN HOME PRICE RECEIVED BY SELLERS:
The typical home sold for
SELLER’S MOTIVATION FOR MOVING:
an MLS
21% home was too small
Sellers generally move about
18 miles
15%
from their previous home
job relocation TOP 5 HOME IMPROVEMENT PROJECTS WITH BEST RETURN ON INVESTMENT: Project
Cost to Homeowner
Sale Price Increase
Return on Investment
Cleaning & De-cluttering
$290
$1,990
586%
Lightening & Brightening
$375
$1,550
313%
Home Staging
$550
$2,194
299%
Landscaping
$540
$1,932
258%
Repairing Electrical or Plumbing
$535
$1,505
181%
Brian Buffini’s Real Estate Report
TRANSACTION & INCOME INFORMATION
$35,500
Nearly 40% of REALTORS®
reported gross incomes below $25,000 and only 16% reported incomes of $100,000 or more
In 2009, real estate agents closed an average of
7 transactions REALTOR® EARNINGS COMPARISON:
$52,300 $8,800
In 2010, Buffini & Company One2One Coaching™ Members earned an average gross commission of
$180,542 and closed an average of transactions
22
Monday, July 18, 2011
91% 93% 78% 60% 11%
16 years or more experience
2 years or less experience
REAL ESTATE AGENT FACTS
80%
In 2009, the average gross income of a REALTOR® was
PAGE 8
10%
of REALTORS® do not have a personal assistant own a home use email every day use a smart phone every day have a website don’t have a website but plan to develop one in the future have a real estate blog
50%
of REALTORS® use social media
OF REALTORS®:
76% work full-time
24% work part-time
REALTORS® spend about
5 years with a company
Brian Buffini’s Real Estate Report
REAL ESTATE IN THE NEW ERA There are approximately
80 million
EARNING POWER COMPARED:
Echo Boomers
What is an Echo Boomer?
97%
40%
of them don’t have a land line
Social networking websites more than doubled their prevalence as a resource in 2010
Monday, July 18, 2011
80%
of builders expect to do away with formal living rooms and the number of houses with 3 or more bathrooms and 4 bedrooms is dwindling DECLINE OF NEWSPAPER ADVERTISEMENTS AMONG SELLERS WITH AN AGENT:
Considered the children of Baby Boomers, Echo Boomers are people between the ages of 18 and 31
of them use social networking sites like Facebook, LinkedIn, and Twitter every day
More than
2009
Baby Boomers
Echo Boomers
$125
$200
89%
of buyers use the internet to search for homes
Billion
37%
2010
28%
Billion
85%
of buyers using the internet to search for a home purchased through a real estate agent
PAGE 9
In 2011, as Echo Boomers move into the housing market, multi-family home starts are forecast to rise
16%
Brian Buffini’s Real Estate Report
PAGE 10
WHY WORKING BY REFERRAL WORKS
90%
of consumers worldwide are most likely to trust the recommendations of the people they know
Each year, people share their opinions and recommendations about a brand, company or service provider
500 billion times
84%
of sellers would recommend their agent or use the agent’s services again in the future
64%
of buyers chose their real estate agent based on a referral, or had worked with their agent in a previous transaction
There is no lead more powerful than one referred from someone you know—someone who knows you, trusts you and will put their name to you.” —Brian Buffini
35%
of people feel reputation is the most important factor when choosing an agent
66%
of sellers contacted only one agent Staying in constant contact with your database will keep you at the forefront of their mind!
From their website,
Only 36% of REALTORS® have generated
some business from holding an open house, a “traditional, transactional” lead-generation activity
Monday, July 18, 2011
90%
of buyers would recommend their agent to others A referral from a friend, neighbor or relative is the most common method sellers use to find their real estate agent
61% 0 to 5 leads of REALTORS®generated
Monday, July 18, 2011
Monday, July 18, 2011