FLORIDA EDITION
Developing your PRICING PHILOSOPHY 5 SOCIAL MEDIA MISTAKES Real Estate Agents Must Avoid How to Recognize TRUE LUXURY PROPERTIES
COVER STORY
JORDAN DENNIS
Why Millennials are Now THE HOTTEST SEGMENT OF THE BUYERS MARKET
FLORIDA EDITION
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JORDAN DENNIS
CONTENTS 4) HOW TO RECOGNIZE TRUE LUXURY PROPERTIES
18) DEVELOPING YOUR PRICING PHILOSOPHY
13) WHY MILLENNIALS ARE NOW THE HOTTEST SEGMENT OF THE BUYERS MARKET
22) 5 SOCIAL MEDIA MISTAKES REAL ESTATE AGENTS MUST AVOID
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How to Recognize True Luxury Properties What to Consider Other Than Location When luxury home buyers are looking for a new abode, they are often advised to pay most of their attention to location, location, location. And it’s true that good locations often have better properties, but if you’re only looking at location then you might be forgetting what it is in a luxury property that makes it luxury. You could view a property in a great location, and because you completely ignored any of the other factors that make a property high end, you might find that once you move in, you aren’t as pleased with the actual house itself as you thought you would be. Here are the other things you should look out for when purchasing a luxury home: • Architectural Uniqueness: The simple fact is that good
architecture retains its value. Do your homework on architects and find the ones that have a good track record of designing beautiful, but practical homes. Don’t simply pay attention to how the building looks today. Consider how it will look in a few decades. Keep an eye out for the “bones” of the building, and decide whether they will stand the test of time or not. Things such as a solid foundation, high-grade materials, unusual details, and artistic components are good aspects to consider. Will the structure hold up well or will it degrade and crumble without constant upkeep? That funky molding may look artistic today, but in ten years will it be considered artistic or just plain weird?
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• Practical Layout: Make sure you have enough room to live
in comfort. As a buyer of luxury property, you probably have quite a busy social schedule. You want to make sure that the layout will lend itself to helping you maintain clear separation between your social areas and private ones. You don’t want guests having to go back into your bedroom to use the bathroom. Look out for places with stairwells, awkward columns, long hallways, and other wastes of space.
• Unobstructed Views and Light: You want to live in
a home that gives you lots of natural light, such as one that is open to the outdoors. That natural light will improve your mood, as well as the resale value. The openness of a space filled with natural light will make you feel more comfortable and happy in your new home. What about the view? Do you see a Do you park, a bridge, a river, or a skyline? Is the see a park, fantastic view out your window protected? a bridge, You’ll need to understand the surrounding air a river, or a rights and zoning allowances of neighboring buildings to understand the possible risks. skyline?
• Windows: Windows are the primary source of losing heat and
cooling. Make sure they are double-paned with good insulation that will protect your home against weather and noise. Unless the windows are already like this, it is unlikely that the condo or co-op board will allow you to install your own.
• Ceiling Height: Consider the cubic footage of the property.
You want to look for high ceilings that increase the openness of a room. Of course, you don’t want to go too high. Above 14 feet will get you diminished marginal returns.
• Storage: If you’re a woman, you will understand this one. We need
lots of closets and additional storage room to fit all of our clothes, shoes, jackets, hats, purses, etc. However, lucky for you, your potential home’s existing closet square footage will not limit you from putting in more storage space. Custom closet companies can create any kind of storage
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space you desire. You will have to, however, make sure that your new home does have an area that you can turn into this storage space. • In-Unit Laundry: In-unit laundry has become necessary for
any luxury home or apartment. Do you really want to have to trek down flights of stairs to use the basement laundry? If you still consider it wasted space, you can convert it into more closet space.
• The Gym: Having a fitness area nearby is an amenity that is especially
important, particularly in winter when you don’t feel like walking to the gym a few blocks down. One thing to consider is the Do you really want of the gym in relation to have to trek down size to the size of the building in flights of stairs? light of common area fees. • Move-In Ready: I’d advise against buying time-consuming and
frustrating fixer-uppers no matter how much you want to add custom kitchens, finishes, fixtures, and other characteristics. Choose a property that already has all of these amenities taken care of. These properties have already had the same designers you would hire fashion the house at a fraction of the cost you would pay to have them do it after you move in. In this light, it is worthwhile to pay a little extra for the move-in ready home.
• Reputation: Pay attention to the reputation of the building. A
property that has a good reputation tends to retain its value. You can easily find this out online on posts, and established locals are likely to have an opinion.
If you want to buy luxury property that is really worth it’s price, then I would suggest adding these points to your list of things your new home must have. If you want to get a high quality home that is a true luxury, you’ll want to watch out for these aspects as well as the location. Some properties might claim to be luxury based on their location, but when compared against this list, they don’t make the cut. So, don’t be fooled by imposters, and make sure you find a true high-end property. 6
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JORDAN DENNIS Jordan Dennis was on active-duty and stationed in San Diego when he decided to utilize his VA benefits in buying his first home. All the while working alongside his Realtor, he was intrigued by the ins and outs of the process and after the purchase was complete, Jordan considered the possibility of pursuing a career in real estate. Though he was still working full-time in the Marines, Jordan put himself through classes to earn his real estate license. Soon after, he began practicing parttime, learning the ropes before transitioning to full-time in April 2015 once his military service was complete. Today, Jordan has built upon his passion for the industry and has cultivated a thriving career on the foundational tenets of integrity, an unrelenting work ethic, and a commitment to service unequaled. 8Copyright Top Agent Magazine
Jordan Dennis specializes in catering to members of the military, and specifically enjoys working with lower-enlisted first-time home buyers. He is the top-ranking agent in his area for assisting military professionals with their real estate needs. These days, Jordan is based at Century 21 Blue Marlin in Destin, Florida and primarily works as a solo agent with the support of an assistant, attorney, and a photographer to ensure the smooth and timely progression of each transaction. Because of his military tenure, Jordan specializes in catering to members of the military, and specifically enjoys working with lower-enlisted first-time home buyers. In fact, he is the top-ranking agent in his area for assisting military professionals with their real estate needs. With repeat and referral clientele accounting for 45% of his business, Jordan has a unique and personal understanding of his clientele and acts as wise and seasoned counsel in service of their long-term financial health. “I focus on educating and helping military families realize Top Agent Magazine
the amazing benefits they have from their tax-free housing allowance, which they can invest to their own benefit instead of throwing it away on rent,” he says. This focus on education and empowerment is characteristic of Jordan’s practice, which ultimately draws in new clientele that drives his business forward. Because more than 85% of his business is derived from social media generated leads, Jordan’s knack for modern marketing and technology allows him to connect and communicate easily with clients in a digital age. He also utilizes video messages to capitalize on a personal yet online savvy platform for today’s busy buyTop Agent Magazine
ers and sellers—a trait that sets him apart from the average agent. As for marketing his listings, Jordan harnesses the power of social media to spread the word about properties hitting the market. With over 5,000 local followers on social media, Jordan curates and enjoys a wide sphere of influence, and utilizes best practices in targeted marketing efforts to generate visibility for listings. To stay top-of-mind with his network, Jordan posts every day and stays active and engaged online, recognizing the efficiency and effectiveness of a well-managed digital brand. Additionally, Copyright Top Agent Magazine9
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Jordan takes a personal approach to keeping in touch with past clients, sending handwritten cards to check in and connect as time goes by. He’s also been known to send scratchers on St. Patrick’ Day—adding a light-hearted and fun flare to sharing a little luck with everyone he’s served over the years. He reflects on his favorite aspect of his work, saying: “I spent seventeen years in the military, 10 of those in the Marine Corps. I’m proud of my service, and love that I get to serve those who serve. It reminds me of where I came from.” Outside of the office, Jordan supports his local community through fundraising efforts, Top Agent Magazine
most recently as a Bronze Sponsor of the Destin Charity Wine Auction Foundation, whose efforts ultimately raised $20 million for local charities. He’s also a Platinum Sponsor of a local golf tournament for charity, which raises funds for local institutions including an area school for students with special needs. Beyond those engagements, he’s a Century 21 Influencer, and will soon be traveling to conferences to speak to other agents about achieving success in sales. As for his coveted free time, Jordan loves to spend time with his wife and two teenage daughters, in addition to playing the guitar and catching up on the latest binge-worthy Copyright Top Agent Magazine 11
television, like the Walking Dead and Game of Thrones. As for the future of his business, Jordan has lofty plans ahead to continue the growth of his brand, with hopes to become the absolute top agent in the Emerald Coast’s Association of
Realtors and break his record of achieving more than $20 million in sales in the next year (and $40 million the year after that). Today, Jordan is at the helm of a stellar career defined by drive and a heart for service. With that in mind and a decisive eye on the future, the years to come are limitless in possibility for Jordan Dennis.
To learn more about
JORDAN DENNIS,
visit jordandennisrealtor.com, e-mail jdennisrealty@gmail.com, or call (850) 420-4274 www.
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Why Millennials Are Now the Hottest Segment of the Buyers Market
and How You Can Attract Them to Your Home There are many factors when it comes to knowing how to sell your home to the Millennial generation. Millennials are becoming an important part of the buyer market, and to fail to cater to their needs will cut you off from a large and important segment. But, why have Millennials all of a sudden become interested in buying houses when they were perfectly content to rent for the rest of their lives? Top Agent Magazine
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A number of factors contribute to what has recently made Millennials the hottest segment of the Buyers market. One factor is the improved job outlook for Millennials. Millennials took a serious blow during the recession. Unemployment in this group soared to 14 percent, compared to the 9.6 percent for the population as a whole. But, in recent years that number has been decreasing, with unemployment for Millennials being 9.3 percent this past year. Rising rents are also contributing to making Millennials more interested in purchasing homes now. Rents have risen so much that buying a home now just makes more sense. Half of all renters spend more than 30 percent of their income on housing. Millennials are becoming increasingly stressed over the constantly increasing financial obligation to something that isn’t even theirs to own. The near-historic low mortgage rates are luring Millennials towards purchasing a home with their promise of affordability. When compared with the skyrocketing rental rates, buying a house looks even more enticing. Another factor helping Millennials get over the hump of purchasing a house is the lower down payment requirements. Fannie Mae and Freddie Mac are now offering new loan programs that require as little as a 3 percent down payment. This may just be the last push the Millennials needed to turn toward buying a home rather than rent. So, now that we’ve established that Millennials are finally joining the Buyers market, the next thing that it is important to understand is what exactly Millennials are looking for in a home. What kind of floorplans do they prefer? What locations are they interested in? Here are some of the essentials that Millennials are looking for in a home: • Updated Kitchens and Baths: Almost everyone wants to buy a
home with new kitchen and bath fixtures, but this is especially true for Millennials Buyers. Millennials are going to spend most of their savings on the down payment and furnishings, leaving little room to update the Kitchen and Bath, which are also the most expensive parts of a home to
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update. Millennials who are on a budget simply won’t have the money to sink into those areas. An updated Kitchen and Bath is sure to bring in a younger crowd. • Big Kitchen with Open Floor Plan: For Millennials, the kitchen has
become the room where they hangout in addition to the family room. This is why having an open space that can transition easily from the kitchen to the TV room is high on the list of things Millennials are looking for in a home. Along a similar vein, Millennials are attracted to an open floor plan rather than one that compartmentalizes the home. This has to do with how Millennials entertain. Millennials want their guests to flow through the rooms and mingle together, rather than be sectioned off in different rooms.
• Home Office: More than 13 million Americans now work from home,
and if you look at the trend, that number is only going to increase as the time goes on. With technology steadily increasing, more Millennials than ever have the flexibility to work from home. But, the home office isn’t just for someone working from home full time. Having a separate space dedicated to work helps people concentrate and focus on work while they are at home. They can separate themselves from the activities going on around the house and have a quiet space where they can set up their workday, plan a presentation, hold a meeting on Skype, or even pay bills.
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• Less Maintenance: Many Millennials work different schedules that
don’t conform to the 9 to 5 workday, as well as full social calendars. This doesn’t leave them much time to clean a big house. Lawn services and low-maintenance front yards are particularly appealing, as they take less responsibility to still keep the curb appeal high.
• Energy-Efficient Appliances: Millennials have been educated on
keeping the Earth clean from the time they were born. They want to do their part to help the environment and appreciate the long-term cost savings that come with it. Energy-efficient appliances and greener ways to heat and cool the home might end up being the tipping point that makes them choose one house over another.
• Hardwood Floors: Millennials don’t have the time or patience to clean
dirty carpets, especially those that own pets. Hardwood and laminate flooring is easy to mop up if there’s been a mess. The more time they can conserve, the better.
• Good Location: Millennial buyers are looking for homes that are in
proximity to public transportation and have a good walking score. Young Millennial buyers without children are more likely to want a location closer to the action of the city, while Millennials with children would prefer more residential areas.
• Technology: Technology rules the Millennial’s life. They do work on
their computers through an Internet connection and solely use cellphones for communication. They are going to ask about how strong the cell service is and about the Internet service provider. While these amenities are out of the seller’s hands, Millennials are still going to ask these questions, and you will need to know how to answer them.
Knowing what Millennials are looking for in a home will ultimately help you make the necessary changes that will attract these buyers to your home. Since they are the a serious segment of the market now, updating your home to fit their needs will lead to more buyers and better offers. So, get with the times and embrace the Millennial buyer. 16
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Developing Your Pricing Philosophy By Dirk Zeller
Ask a dozen agents to explain their home pricing philosophy, and you’ll
hear a dozen different approaches. And if the talk reveals frank responses, you’ll also learn that the most common pricing strategy is no strategy at all. Here’s my advice: Break out of the ranks by establishing and following a specific strategy for arriving at the ideal selling price for each home. Adopt the philosophy that, in real estate sales, price is king. Price trumps all other factors—including marketing approaches, home condition, market competitiveness, and sales approach. I believe that, in the end, marketing and condition of the property are controlled by the price. The alternative, advocated by many agents, most sellers, and even some sales trainers, is to emphasize marketing over pricing. Rather than working to set the ideal price, they believe success will come from optimizing the home’s condition and presentation and then marketing it with skill and savvy.
I take the opposite belief, based on years of experience working with sellers who wanted unrealistic prices for their homes and who experienced firsttime sales failures as a result. Over my sales career, I resurrected and re-listed more than 600 expired listings—nearly 75 a year. Among all those transactions, I never met an owner with an expired listing who thought that an unreasonable price had anything to do with the home’s failure to sell. They all blamed the previous Copyright Top Agent Magazine 18
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agent and that person’s approach to marketing. Each sought some magic marketing strategy to change the reality of the law of supply and demand. There is a magic strategy: Price the home correctly. Price is the only factor that can overcome sales obstacles, compensate for a home’s deficiencies, and motivate a purchaser even if the condition of the property and your marketing approach is less than perfect. Getting the listing at any cost Does this scenario sound familiar? An agent (usually a newer agent) is short on business or maybe even desperate for the chance to stake a sign in someone’s yard. The agent wants a listing at any price – even if the chance Top Agent Magazine
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to seal a deal erodes the likelihood of selling the property. To gain a seller’s nod of approval, the agent makes a flatteringly high pricing recommendation, throwing out a number the client wants to hear and then hoping something good will result from the bad situation. I can think of few examples, if any, where this philosophy works. Hope isn’t a successful pricing strategy. Worse, the please-the-client mindset is a hard one to abandon. Agents who achieve listings with unrealistic prices find it hard to later counsel their clients honestly.
If you take and price a good listing competitively, it will sell. You can’t keep a good price a secret! The pitfalls of a “please the buyer” approach are many and significant. By overpricing, you can practically count on a reduction in your productivity, profitability, and salability, and here’s why: It’s impossible to keep your productivity high when your time is spent in conversations with an unsuccessful seller who lacks motivation to take corrective action. The seller’s negativity, concerns, and phone calls will only increase with each week or month the house remains on the market. 20
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As time goes on, you’ll devote more and more time unsuccessfully trying to create a sale not only for your seller but also for yourself. This will pull you away from activities that are more likely to deliver income. The ensuing frustration will de-motivate you and stunt your ability to secure better appointments that create other income opportunities. An unsold, overpriced listing negatively impacts your profitability because it costs you time and money to service while it delivers no revenue to your business. And the situation only gets worse the longer the listing languishes on the market. You’ll end up deducting the expenses of this in-limbo listing from the proceeds generated by any revenue-producing deals you manage to close in the meantime, reducing your net profit and business success. Unsold homes that linger on the market seriously diminish your salability, which is the term that describes your sales success track. Your salability is based on such key statistics as your average ratio of listing price compared to sale price and the average number of days your listings are on the market. Obviously, these statistics, which prospects rely on when choosing one agent over another, can be crushed by a “get the listings at any cost” philosophy. They’re also harmed by the “start high and reduce later” tactic. If you take and price a good listing competitively, it will sell. You can’t keep a good price a secret! Dirk Zeller is an Agent, an Investor, and the President and CEO of Real Estate Champions. Copyright© 2014, Dirk Zeller. All rights reserved.
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SOCIAL MEDIA MISTAKES
Real Estate Agents Must Avoid There is perhaps no greater marketing tool for agents these days than having a large presence on social media, but there is more to social media marketing than just opening an account and gaining followers. A lot of agents forget the social part of social media. It’s all about engagement, but it needs to be the right kind of engagement. This can often be the first impression potential clients or industry peers have of you, so make it count. There is no second chance to make a first impression, and that is especially true for real estate agents. Here’s just a few things you want to avoid.
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1 Using it to Vent
Social Media is a great place to complain and commiserate about things, but save that for your personal page. A real estate transaction is already a stressful ordeal, the last thing anyone wants is someone who seems like they’ll bring a negative energy to the process. Even worse? Bad mouthing other Realtors® or listings. You’re selling yourself and your skills, so don’t sell anything that shows you in a bad light. Much like marketing a property, everything you put out should be professional and inviting.
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Lack of Consistent Branding
Yes, social media is about social engagement, but it’s also about creating brand recognition. While you don’t want it to be purely promotional, you are running a business, so create a consistent branding across all social media platforms. If you can afford a professional graphic designer to help you out with this, that’s great. But at the very least, have the same profile pic, cover image and highly visible contact information, across the board. And don’t forget to share links to your other accounts, some people prefer different social media applications.
3Not Posting Enough
It’s good to create a schedule of how many times you’ll be posting per day and to pick times when you might have the most engagement. Don’t over do it, but three posts a day at the right time, tends to be a good goal. There are numerous tools on Facebook, for example, that Top Agent Magazine
can let you see when interactions are the highest. Stick to your schedule and adjust accordingly. It’s also important to not just post your listings. Be a resource for people who follow your page. Post community events, or other informative articles that are relevant to home ownership. Be a page they want to follow even when they aren’t buying or selling a property. They’ll remember you when the time comes.
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Not interacting With Your Followers
It’s called social media for a reason. The more you engage with your followers, the more they see you as a real person, and not just a marketing tool. Not only do you get to know your past clients and potential clients, on Facebook, engagement actually will make your posts seen by more people. So it’s a win/win.
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Not Sharing or Linking to Others
It might not seem like a good idea to not promote the blogs, pages or listings of other people, but it’s not only an excellent way to build goodwill, it will also increase your own presence when they reciprocate. So make a point to share posts and links for local businesses and even the blogs of your peers, if it’s a post that offers valuable insight into an expertise you don’t have. That will encourage them to share your posts and even your listings, which will increase your potential buyer pool. This is another incentive to create your own blog. Unique informative content is always of value, and more likely to be shared than promotional links.
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