Butterflies In Formation

What are we doing with our clients immediately following the signing of a purchase agreement?  How are the next 15 to 20 minutes being spent?  How do we keep their excitement peaked and manage any butterflies that may be circling?

1. Congratulate them–reinforce the decision
2. Review the closing schedule
3. Set appraisal/home inspection appointments
4. Discuss their preferred means of communication
5. Introduce them to others involved in the transaction
6. Encourage them to tell their friends–show off the new home
7. Email digital photographs

Continue to watch and analyze your buyer’s emotions.  Be aware of any signals of discontent or emotional insecurity.  Reinforce their decision with Good News Stories relating to and supporting their purchase.

There are certainly additional ways to reinforce their decision… I’d love to hear your thoughts.

Let’s be sure that our Purchaser’s Butterflies are Flying in Formation! 

…By keeping them In-Formed!

Do You Want to Reach HNW Customers?

What Luxury Real Estate Agents Can Learn from Luxury Travel Blogs

Institute For Luxury Home Marketing: High net worth individuals, although known for pursuing a more lucrative lifestyle with high-end taste, have proven to value experiences above all else. While people of affluence are willing to invest large sums of money into items or brands, there are now higher expectations of what the product or brand should give back in return. Occasionally, this could be a profitable return, but often times, luxury consumers are simply looking for an experience or connection that can be a positive addition or improvement to their lifestyle.

Although luxury consumers have the means and capability to spend money fairly freely, they are careful not to invest in anything that won’t benefit or improve their quality of life.

With the increase of travel focused blogs and social media, the public now has an acute awareness of just how luxurious the top 1% are living, and better yet, vacationing. Traveling to beautiful and exotic places are considered a privilege to most, but for HNW individuals, it is a common and crucial part of their lifestyle. Traveling, for people of affluence, is a risk-free investment. No matter what tropical island, European village, or beautiful mountainous town is explored, these experiences are usually worth the cost and are a coveted part of their day-to-day.

With travel destinations and a demand for luxury hotels at an all-time high, luxury travel blogs are thriving in this digital day and age.

In fact, each year, Qosy.co updates it’s list of top luxury travel blogs recommended reading before planning your next lavish vacation. What makes these blogs thrive is how they market and share experiences from their own travel and bring to the table insight, suggestions, and advice for others in luxury looking for their next great experience. From events, hotels, and cuisine to the most secretive and private places to stay, the luxury travel blogging industry has not only raised the bar for traveling and luxury vacations but also guided the way we market to the HNW and UHNW individual.

When marketing to the top 1%, experiences above all should be the main focus. As a luxury real estate agent, your HNW consumer is not just looking for a house, but a home – a place that provides them a higher quality of life and entertainment. By taking a look at what luxury consumers love best about vacationing, real estate professionals can better pinpoint what aspects to focus on when helping HNW individuals purchase a lifetime home.

With evoking imagery, and high-quality media, sometimes even video, these blogs not only have many people wishing to live their lifestyle, they are also showcasing new ways for even the most seasoned HNW traveler to experience surprise and delight on their adventures. For those that think they may have possibly experienced or seen it all, these luxury blogs will help open your eyes to new travel possibilities and a richer and fuller overall experience. As a luxury real estate professional, your goal should be to evoke these incredible experiences and emotions for your clients when working with them to buy or sell a home. A home and its amenities play a large role in the lifestyle they are able to live. People of affluence truly want to feel like they are still being fulfilled, even without leaving their house.

Secondly, these top luxury travel blogs are driving traffic and connecting with their audience not only because of their valuable information but simply because of their trusted status and relationship with their readers. As you try to market and connect with HNW consumers, a firm foundation of equality and trust is necessary.

There is certainly something to be said for the way luxury travel blogs have positioned themselves as experts in their industry and are able to market and connect with the top tier of consumers. Regardless of your profession, it’s important to remember to take notes from other leading luxury professionals and to apply their insights and outlook to help you grow your network and build better relationships with your luxury clients.

Via: Institute For Luxury Home Marketing

Top 5 Home Design Trends of 2017

The current trends are all about utilizing rich color, maximizing texture and creating comfortable interiors you can’t wait to relax in. Use these trends to get inspired to makeover your home’s interiors and create spaces you love that also appeal to your personal style. Remember, if you plan to sell in the next few years, you may want to avoid doing anything dramatic and instead incorporate small changes that would appeal to buyers.

Why are these trends gaining popularity?

The underlying theme of these trends is creating a home environment you love; one that appeals to your emotions and feels like a retreat from the stresses of the world. Although the home is a place where you can relax and spend time with loved ones, work expectations are beginning to blur the line between work and home. Even if people don’t work from home specifically, many are stretching their work hours into their evenings and weekends to complete work projects.

It’s no wonder the Nordic concept of hygge (most often pronounced “hoo-gah”) has become a hot trend. A centuries-old concept, incorporating hygge in the home means creating simple and comfortable spaces that make you feel cozy and safe and appeal to your senses.¹ The emphasis is on simplicity and fostering positive experiences, whether you’re spending time with family, reading a good book or catching up on work emails.

WARM AND RICH COLORS.

Whether you want to play with a bold color or stick with neutrals, one thing is clear—paint is the foundation of a great design. Painting your interiors has a return on investment of about 75 percent and is a relatively inexpensive project to complete, costing between $25 to $100 for paint alone.² If you’re thinking of refreshing your home’s interiors with a coat of paint, popular colors include warm taupe, fresh green and dark tones. These colors are popular choices because they evoke feeling of warmth and coziness when you walk into a room.

Wondering how to pair these colors? Taupe is the perfect alternative to traditional neutrals, such as gray and white, and goes well with cool blues, earthy greens and deep shades of wine. Green goes well with other earthy shades, such as copper and moss, as well as deep plum and bright pink. If you’re hesitant to paint your walls green, incorporate it into your home by way of accent pillows, rugs, lamps, vases and other accessories or add a few house plants.

If you’re interested in adding more drama to a room, include bold, dark colors. Dark shades add color and sophistication to any space. Plum and dark gray pair well with pale blues, warm whites and light gray.

Try one of these Colors of the Year:

Poised Taupe – Sherwin Williams

Greenery – Pantone

Shadow – Benjamin Moore

RICH MATERIALS.

Lux materials create a space in which you can’t wait to kick off your shoes and relax at the end of the day. The Danes use a mixture of materials and pattern as a way of adding character and interest; however the overall look still needs to adhere to a color palette to prevent it from looking distracting.

Natural materials and textures allow you to maximize the comfort of the bedroom, living room or family room. Wood accents give rooms an earthy feel. Incorporate rustic wood sculptures, trays and furniture into your space. Choose furniture made with sustainably harvested wood certified by the Forest Stewardship Council (FSC) or use reclaimed wood for an environmentally friendly alternative.

If natural elements aren’t your style, but you want to add more visual interest to your room, try mixing patterns. Although it may have been avoided in the past, mixing stripes, florals and geometric prints actually help ground a space as long as the patterns feature complimentary colors or different shades of one color. If you’re worried about going overboard and making your room look “busy,” focus your mix in one area of the room. For example, add throw pillows in a variety of patterns to your sofa.

GOING GREEN.

According to a recent study from the American Psychological Association, people are more stressed than ever, with 24 percent of adults reporting they’re experiencing “extreme stress.”³

Top sources of stress include work and money. By incorporating small changes, like making your house more energy efficient, you can start to lower your bills and get back to relaxing and enjoying life like the Danish do (who consistently top the polls as the happiest people).

Save money on your energy bills by sealing the “envelope” of your home, which includes the windows and doors, walls, floor and roof. The better insulated your home is, the less heat will escape and the lower your energy bill (and stress level) will be.

The most heat loss occurs through the walls of the home: up to 35 percent of heat loss, to be exact.⁴ Ceramic insulating paint is a space-inspired coating of paint mixed with ceramic compounds and applied to interior or exterior surfaces. It seals your walls and prevents heat from escaping, which means reduced energy bills all year long.

THE FUNCTIONAL HOME OFFICE.

Twenty-four percent of employed people do some or all of their work at home.⁵ Since more people are working remotely than ever, home offices are becoming more popular. Even if you don’t plan on working from home, a home office gives you a place to pay bills, work on personal projects, plan your family’s schedule and more. Home offices tend to be multifunctional, serving as a guest room when family and friends visit, and have the potential to meet other needs that arise.

The key idea behind hygge is to enjoy the environment around you and for each room to be a sanctuary to sink into at any given moment. Your home office is no exception! Maximize your productivity, efficiency and focus by painting the walls shades of green or blue.⁶ If space is an issue, create a nook by installing docking and tech cabinets that are big enough to store a printer and other small office equipment and files without taking over the room.

If you don’t have room in your home for an office, look no further than your backyard. Shedquarters, small structures or sheds built in the backyard for use as an office or home-based business, are an attractive option for homeowners who don’t have a room to dedicate to an office and don’t wish to add on their homes. while the jury is out on how much value these structure add to a home, they can convert easily into a storage shed if you plan to sell in the future.

SPLURGING ON KITCHEN RENOVATIONS.

The kitchen is often the busiest, most hectic room in the house and one of the top renovation projects with a high return on investment.⁷ We do more than cook meals there; it’s where homework is done, bills are paid, weeks are planned and more.

Kitchen remodels consistently show a respectable return on investment. According to the 2017 Cost vs Value Report from Remodeling magazine, a minor kitchen remodel touts an 80.2 percent return on investment.⁸ You don’t need to overhaul your entire kitchen to make it more hygge. Smaller additions can transform it into a relaxing and functional space you enjoy spending time with friends and family in.

What does a “minor kitchen renovation” entail? In addition to replacing the fronts of your cabinets and drawers, it also includes replacing out-of-date appliances and fixtures. You may also consider replacing countertops. Quartz and quartzite are becoming more common as are other green laminate options, including ones that mimic stone, wood and concrete. Laminates install in less time, often over the existing countertop, make it an ideal choice for busy homeowners as well. Other hot kitchen trends include incorporating sustainable materials like bamboo into your countertops and floors and water filtration systems.

Want to improve the look and feel of your home’s interior? Are you thinking of upgrading to a home that better fits your changing needs? Please call us—we’d love to help you achieve all of your home-related dreams.

Sources:

1. Time, Hygge, the Nordic Trend That Could Help You Survive 2016
2. Quality Smith
3. American Psychological Association, 2015 Stress in America
4. Department of Energy
5. Department of Labor
6. Entrepreneur, How the Color of Your Office Impacts Productivity
7. com
8. Remodeling Magazine, 2017

Coaching Your Sales Team Is Easier than You Think!

Selling Power:  Research shows that ongoing coaching that follows sales training has 400% more impact on productivity than sales training delivered without coaching. As a result, it’s no wonder sales coaching is a hot topic among leading sales managers. In addition, a landmark CEB study of sales teams showed that coaching delivered by managers is more than twice as effective as coaching by high performing peers – or even an internal sales trainer.

There are numerous benefits of managers providing coaching to their direct reports. These include:

1. Coaching drives higher performance. According to research by CSO insights, companies with formal sales coaching programs report 18% higher win rates than those with discretionary or informal programs.
2. Coaching creates transparency and trust. Coaching provides an opportunity for the manager to talk one-on-one with – and really listen to – their sales associates. This increased time and attention increases transparency, builds trust, and fosters stronger relationships.
3. Coaching increases employee engagement. Research shows that salespeople who have received quality coaching report higher engagement levels and are far more likely to stay with their company. With the cost of replacing a sales associate somewhere between two and 10 times their salary, this increased retention represents a significant dollar savings!

Deciding what to coach on is typically quite simple. Viewing a sales presentation will give some sense of the initial needs, or even just asking sales associates which parts of the sales process make them most uncomfortable will yield some areas for coaching.

Common topics for sales coaching include:

• Delivering an elevator pitch
• Discovery
• Handling objections
• Competitive differentiation
• Pricing negotiation
• Closing the deal

For managers who haven’t established a habit of providing coaching, here are some steps to begin the process:

1. Declare your intent. Share your coaching plans with your boss and ask him or her to hold you accountable for following through. In addition, explaining to your team that you are making coaching a priority will set the stage for successful initial sessions. The public nature of these declarations will help you follow through on your promise!
2. Establish a schedule. Setting a regular schedule elevates the importance of coaching in the minds of your team, showing that you’re serious about it. Consistency also makes keeping your commitment easier since your time is already blocked off for coaching.
3. Leverage technology. Using tools which deliver on-demand video-based coaching, can make the experience easier, less time consuming, and more effective for both managers and sales associates.

Once you’ve taken the plunge, you’re likely to find that delivering coaching is easier than you think. The simplest method is “directive coaching.” Feedback is delivered as a statement and is based on your observations and expertise. For example, you might recommend that an associate be more aggressive when asking for a next meeting.

A more advanced form of coaching is “non-directive coaching,” which is delivered in the form of questions. This prompts the sales associate to diagnose his or her own performance and identify potential areas for improvement. For example, you might ask, “How do you feel about the way you asked for a follow-up meeting?” This approach leads to self-assessment by the associate and helps create the need and desire to improve in certain areas.

As your coaching experience evolves, you’ll increase in skill, confidence, and effectiveness while you help your direct reports identify and work on areas for improvement. So, good luck sales manager. Now, get coaching!

via Mat Greenfield, coaching consultant at HireVue. He is a learning and development geek with a passion for helping people be the best they can be through training and coaching. Learn more about HireVue on Facebook, Twitter, and LinkedIn.

15 THINGS REALTORS WANT BUILDERS TO KNOW (2)

…continued

8. Baby Boomers
Realtors have noticed that many builders across the country are failing to connect with one of the largest group of buyers: baby boomers looking to downsize. They say there is a shortage of appropriate housing for this demographic, made up of older adults who prefer new, one-level construction to existing dwellings, says Baltimore-area Realtor Janice Kirkner. “Eighty-five percent of my 55-plus buyers prefer new construction because there is no maintenance and all common areas are maintained for them,” she says.

Hailey finds older buyers in Texas desire smaller new-construction one-story houses of 2,500 square feet or less that have the features and amenities they want. “They are looking for smaller single-story homes but they want the upgraded amenities that they feel they deserve. They also want that energy efficiency.”

9. Cultural Considerations
Builders often overlook the needs of foreign buyers, says Miami agent Andre Brown, who works for an Asian-owned company. Marketing materials should be available in a variety of languages depending on the area and bilingual staff or interpreters should be on hand to assist potential buyers.

“As the U.S. population becomes more culturally diverse I think it would be good for builders to research cultural preference, architecture and design to implement different aspects into their development,” says Brown. For instance, Richard says sales in his Asian-dominated market often hinge on a home’s favorable feng shui.

10. Closing the Deal
When it comes time to finalize a deal, there is one thing that Realtors agree on: Home buyers are turned off by overly forceful marketing tactics. They see deals falling through because of salespeople’s relentless calling and inflexible rules. For instance, it’s common practice for builders to tell buyers they must use a specific lender or title agency in order to get the pricing they want.

“The hard-sell on the builders preferred lender and title company is not appreciated by most agents,” says Hailey. “Many times before we assist a buyer in looking for homes, we have already had them get pre-approved with a lender outside of the builder’s preferred lender. Giving the consumer the ability to shop the loan is the right thing to do.”

Instead of “used car salesman tactics,” sales professionals should focus on a specific buyer’s preferences and motivators, adds Rice.

“They should break past old‐school sales tactics and dive into the psychology of what their buyer is looking for in their next home,” he says. “Their interests, wants, needs, and priorities are what a sales agent can search for when developing a relationship with a customer. Closing the sale will come as a result of a sensible process that adds value.”

Realtors can be indispensable in knowing what motivates a buyer. “Ask us what is the best approach to dealing with our buyer, we have a relationship with them and can recommend the best way to enter into negotiations, says Kirkner.

11. Contracts
Home buyers are sometimes shocked by builder’s contracts, Realtors say. They are put off by no option periods, non-refundable earnest money, and no hard close date. They are nervous when they see that builders giving themselves one to two years to complete the home and that they’re locked in to the contract no matter what the inspection shows.

Houston Realtor Kindi Scartaccini has had clients walk away from listings when they realize the deal would involve a builder’s contract. She recommends builder use a standard state form with just a few addendums. “Most realtors and their buyers love that because the contract is not so slighted toward the builder,” she says.

12. Working Together
Although Realtors help facilitate sales, they often feel as if they not a valued by builders. One of their biggest pet peeves is when a builder reaches out directly to their client. “If a buyer has an agent, call the agent not the buyer,” says Scartaccini.

In addition, they say, Realtors should be treated with the same respect as any other industry professional and have their calls returned promptly. Not answering a Realtor’s questions fast enough slows their own customer service. “In the age of the Amazon World, people are used to answers fast and we like to work that way as well,” says Fields.

On the flip side, builders should consider using a selling agent to market and sell their homes, says Benson. Think of Realtors as another subcontractor. “Builders won’t hire a tradesman with no experience but sometimes they think that their homes should sell themselves,” he says. “New homes don’t build themselves and they don’t sell themselves. Hire a professional to do the job.”

13. Realtors Fees
Many builders do not work hard enough to partner with local real estate agents, and few include a fee for a Realtor in their sales process. Some even try to cut them out of the deal or don’t return their calls.

“It’s frustrating to the Realtors, because they may spend many hours in educating the buyers through showing existing homes and general questions about the process of buying,” says DelVecchio, who is the exclusive marketing agent for a local builder Carina Homes, one of the only builders in her area that reaches out to Realtors with a “Realtor Referral Program” that provides a marketing fee of 3% of the build price.

“Our relationship is built on the premise that the builder’s best skills are with construction, but not marketing/sales. Our arrangement is that I get a marketing fee on every home Carina builds, which is about 10-12 per year,” says DelVecchio. “When there’s another Realtor involved in bringing a buyer to Carina, they also get paid a fee for the referral/assistance with the buyer from financing to closing.”

14.Closing
Realtors often see builders do everything right in their sales process but then drop the ball at the eleventh hour by not having the home completed at closing. Benson urges them to have everything ready at least a week before closing so that the builder and buyer can do a walkthrough and create a punchlist, which should be completed prior to closing. “It far more difficult to do repair or finish work in the home when the owner is living in the home, both for the builder and the homeowner,” says Benson.

“Builders need to learn to finish a house,” echoes Baldwin. “93, 97, 98 percent is not finished! A buyer is always going to focus on things not done,” he says. “In football, you can go 99 yards, but you don’t get any points unless you cross the goal line. There’s no A for effort.”

15. Follow Up
Repeat business and referrals are the lifeblood of any home building business. The best way to achieve them is through excellent service before, during, and after the sale, say Realtors.

Fields says many of her clients have heard warranty nightmares about lingering issues in new homes. “Not having a strong system in place will lead to lost referrals and angry customers,” she warns. “If there is a problem, builders need to take ownership of issues and repair them immediately.”

Manage buyers’ expectations with a follow-up service schedule for the first year. Benson recommends that builders check in with homeowners 90 days and 330 days after closing. “The first visit is to check in and make sure that all of the expectation of the homeowner have been met. The second visit is just prior to the end of the typical one-year warranty and goes a long way toward referrals and ensuring the builder can use his past homeowners as references,” he says.

These visits can be helpful for builders, too, as they are a chance to receive feedback on the design and livability of the home to alert them to the need for any changes in future homes, he adds.

Kudos
Most experienced real estate agents feel a kinship with their builder peers, especially after having weathered the down years of the Great Recession together. They understand the stress and challenges of making a living in the volatile U.S. housing industry.

“The shortage of labor and capital, increased land cost, excessive government regulation, elevated taxes and impact fees all make the job of being a builder and developer very difficult,” says Brown.

In spite of the challenges, Realtors say they are impressed with builders’ devotion to their craft. As Parker says, “Truly, they are doing a great job!”

Terrific article via Builder: Jennifer Goodman

15 THINGS REALTORS WANT BUILDERS TO KNOW

From dirty model homes to pushy salespeople, here are the top blunders that real estate agents see builders make.

Builder: Jennifer Goodman – Home buyers rely on real estate agents for information about their local market that they can’t get anywhere else. In fact, real estate agents are home buyers’ most important source of information about new homes after the Internet. Last year, 33% of buyers learned about their new homes via a real estate agent.

Agents’ influence is not declining despite consumers’ use of the Web, and for most new home transactions, Americans still prefer to have a Realtor. Last year, 87% of buyers purchased their home through a real estate agent or broker—a share that has steadily increased from 69% in 2001, according to the National Association of Realtors.

In the course of helping their clients find the right house, these buyer agents meet a lot of builders and walk through an untold number of houses. This means they see where builders are making the grade and where they are slipping up. While many of them compliment builders for doing a great job even during tough economic conditions, they have also have strong opinions about what building pros could do better. Here are 15 of the top things they wish builders did differently.

1. New vs. Existing
Realtors say builders undermine sales by not playing up their biggest advantage: New homes are preferred to previously owned ones. They urge builders to market the value of a new home, which comes with warrantees, energy efficiency, and up-to-date design that older homes don’t have.

Buying a new home is especially ideal in markets where there’s a lack of inventory in certain price ranges, especially in entry level and move up categories, they say. In her Edmond, Okla., market, Realtor Jennifer Fields says new homes are highly sought after, especially in popular school districts. Builders in her area are working to design and customize homes that rival the price point of existing homes. “This makes new homes the obvious choice for many buyers,” she says.

In addition, new homes also offer flexibility on closing times, says Dana David, an Amherst, N.Y., real estate agent. “The hardest thing in this market is for my sellers to sell their home and also buy in a timely fashion,” she says. “Building a new home allows them to know where they are going before we list their existing home, and also gives me the ability to negotiate in time to rent back or for an extended close.”

Even though buyers prefer new, in the end it all comes down to price, says Susanna Madden, a Tampa RE/MAX agent. “If the HOAs and CDDs and add-ons are cost prohibitive, buyers will look at a ‘lovingly maintained’ resale that the seller has kept up.”

2. Model Homes
A model is often a prospect’s first impression of their future home, and it should entice them to visualize living there, says David Rice, founder of New Home Star, a Chicago-based real estate sales management firm. “It’s a hugely meaningful thing to be able to conceptualize the next chapter of your life,” he says.

Models need to be fully complete, says Houston agent Bill Baldwin, because ones that are not finished give a bad impression. Moreover, agents are dismayed to walk into a model with a client and find that it isn’t in working order or is dirty. “They should be equipped with everything including light bulbs, working sinks, and door knobs,” says Seattle-based Keller Williams agent Matt Parker. “And they should be cleaned every other week.”

3. Staging
Realtors say that no matter the style or size the model home, it should always be staged. It’s one of the most important steps to selling a home, says New York Realtor David.

“I’ve taken on expired listings of vacant model homes… once staged, buyers can picture themselves living in them and usually they sell in record time,” she says.

But many agents caution builders and their designers not to take staging too far because overdecorated models can look cluttered and confuse customers about what is standard and what is an upgrade. “Sometimes they are set up with lots of bells and whistles that don’t come standard, says Coldwell Banker agent Missy Stagers of San Antonio, Texas. “Make sure to clearly notate what is an upgrade.”

Models need to strike a middle ground between overdesigned and plain vanilla, says David. “It is hard for clients to walk into a fully loaded model home and picture it at the base level,” she says. “While I realize builders need to showcase their ‘best stuff,’ it would be great if there was a way to have a model with every upgrade, and also one available to see with just the basic offerings.”

Stagers has a good idea: “Offer some nice things in the basic package so everything is not an upgrade,” she says.

4. Price
The price of a new home can be a touchy subject between builders and buyer’s agents, who work to get the best deal for their clients. Realtors say they realize that builders need to make a profit, but “we do expect them to price their homes fairly. If you are always getting low ball offers, check where you stand price per foot with your competitors and other homes,” says Oklahoma agent Fields.

The biggest mistake builders make is that they price their homes based on their costs rather than on market conditions, says Garry Benson, managing broker at GPB Marketing Solutions in Chicago. “The market doesn’t care how much the builder had to spend to buy the land or build the home. They only care about the market value.”

Realtors don’t understand why the price of houses in new communities increases so quickly. “I feel as though every house that is built gets bigger, better, and more expensive,” says David. This is offputting to many of her clients who are young buyers or empty nesters on a budget. “It would be amazing if there was a builder that could supply us with reasonable, not overly upgraded homes that could appeal to not only first time homebuyers but also downsizers at an affordable price point,” she says.

When prices do rise, it’s important that builders honor quotes, says Plano, Texas, broker Melissa Hailey, who was shocked when a builder gave her clients a price and then wanted a $3,000 increase four days later when they sat down to sign the paperwork. Her buyers, who couldn’t afford the increase, were heartbroken.

5. Multiple Listing Service
The multiple listing service (MLS) is one of a Realtor’s most powerful tools, letting them know when new houses come on the market and allowing them to see recent sales. But many builders don’t provide enough information in their listings about variations and options, according to Albany, N.Y., broker Wayne Richard.

“If you consistently list on the MLS your to-be-built four-bedroom, 2.5-bath colonial you’ll get filtered out of the buyer (and Realtor) searching for a five bedroom, or a third garage, or an in-law suite,” he says. “You have to tell both buyers and Realtors that you can build those variations.”

6. Construction Updates
Once a house is under contract, builders must communicate with the Realtor about what is happening on the site, adds Richard. “Set construction milestones and expectations and advise them ahead of time: The hole is being dug tomorrow, the sticks start going up this week, the kitchen cabinets are being installed.”

Realtors often are reluctant to bring clients to a job site, says Richard, who worked for a public builder before becoming a Realtor. He thinks this is based on an unspoken fear that they will be embarrassed in front of customers because they don’t know much about the construction process. He urges builders to work with Realtors to educate them on how houses are built so that they are comfortable on site.

7. Buyer Preferences
Real estate agents, who work intimately with their clients sometimes over decades-long periods, often have a better idea than builders what buyers are looking for. Savvy builders use them to follow local statistics and trends, and to understand the demographics of the market. For instance, they can help with design and layout decisions before a house is built.

“Are you sure that theater room is going to go over with your clientele?” asks Fields. “You may think people want a theater room versus a four bedroom, but if you are selling in an area with good schools, four bedrooms may be far more important to the buyers.”

Failure to consult with a Realtor led to major problems for a developer in Christine DelVecchio’s Ithaca, N.Y., market. The spec homes in the development had a floor plan flaw that could have easily been averted: the first-floor master bedroom was located directly off the main entrance to the home and contained an oddly shaped angled wall that made bed placement challenging. “It was just badly designed for the flow of the entire house,” she recalls. In addition, the houses were not priced correctly for the lot size and location. An experienced Realtor could have researched homes in that area and suggested a more appealing lot size and floor plan, she points out.

“Only after the spec house was built did they reach out to the Realtor community after it had taken several years to sell lots/homes in that location,” she says. “They surely lost on their investment by this misstep.”

To be continued…

Does Your Sales Team Help Implement Your Strategy?

All too often, the reason a company’s strategy fails is its salespeople focus solely on quotas, targets and bonus levels, ignoring the company’s overarching strategy. If you want your strategy to be implemented by your sales team, you should make sure three things are happening:

1. Your salespeople are targeting the right people. It’s common for sales teams to chase easy deals, disregarding the ideal client profile. Make sure your sales team is focusing on the organizations/segments you wish to market to, and be assertive about your expectations.
2. If your strategy changes, your salespeople’s does too. Sales professionals need to break away from old approaches and determine how best to adjust their marketing techniques to the new company strategy.
3. Your sales team is focusing on client needs. Instead of old-school pitching, sellers need to have deeper conversations with clients about their objectives and provide insight on how the company can help.

Remember, every hour spent developing an opportunity that’s outside your sweet spot is a non-strategic use of time, energy, and resources.

Continue to Scott Edinger’s HBR article…

Marketing a Home to Wealthy 50+ Prospects

Capturing business from an offline generation

An October 2015 report from Forbes Insights, Engaging 50+ Consumers In A Digital World, examines the consumer behaviors of wealthy Americans 50 years old and above, a demographic which holds $3.6 trillion in annual income, or 49% of all after-tax income in U.S. Created in partnership with Wealth Engine, the report asserts that this demographic has wholly unique values and preferences concerning marketing from luxury brands and service providers. (Reprint from Luxury Insights)

1. Emphasize the property’s quality and craftsmanship.
To speak to the values of wealthy 50+ Americans, luxury real estate professionals should highlight the quality and craftsmanship of high-end homes rather than the related prestige of living in the home or community. The Wealth Engine survey shows that this group considers the most vital aspects of a luxury product or service to be quality (82%) and craftsmanship (66%). These values are even more important to baby boomers (51-70) than older generations, so this definition of luxury will be around for a while. In contrast, more traditional conceptions of luxury—prestige of ownership (19%), brand/maker name (17%), price (11%)—are not top-priority with respondents.

2. Market online and offline.
While the Internet plays a part in their decision making processes, these consumers are tentative about the ever-changing technological landscape and thus unlikely to make buying decisions solely based on information received online. On the other hand, 50+ wealthy consumers are generally more receptive than younger generations to offline interactions, experiences, and marketing. 50+ wealthy consumers prefer to get marketing and advertising messages: (1) by word of mouth, (2) through an online search, (3) by visiting a known brand or retailer website directly, and (4) via print or direct mail.

While it can be challenging to strike the on/offline balance needed to engage these consumers, the Forbes/Wealth Engine report urges that careful, value-oriented marketing can really pay off: “While [wealthy 50+ consumers] might not be as digitally savvy as their children and grandchildren, they still have more discretionary funds to spend.”

3. Avoid email marketing with unknown leads.
Be cautious about how you use email to engage 50+ leads and prospects. The Wealth Engine survey shows that, while 17% of respondents rank “email from known brands” in their top 3 preferred methods of receiving marketing and advertising, only 8% appreciate emails from previously unknown brands. In fact, reflecting on the proliferation of unsolicited direct and email marketing, 21% say it makes them not want to do business with a brand, and 18% think it indicates that the brand doesn’t understand what they want.

4. Utilize data-driven targeted marketing, but don’t get too personal.
The wealthy 50+ demographic is particularly receptive to targeted marketing. Of respondents who decided to buy from a particular brand or service provider after seeing their marketing: 68% say they did so because “the timing of the marketing message matched when I wanted/needed to buy,” and 52% say that the inciting marketing message included a special offer that appealed to them.

On the other hand, Forbes notes that, “while they like the personal touch in real life, they are not as keen on it in marketing messages they receive.” 50+ wealthy Americans are hyper-sensitive to data privacy and liable to be made uncomfortable by over-personalized messaging. They will likely not appreciate messaging that mentions a birthday, recent purchase, or any personal information that indicates data mining practices.

5. Be direct when seeking referrals and reviews.
Wealthy 50+ consumers are comfortable gibing referrals and recommendations by word of mouth, but very unlikely to sing their praises online. The Forbes survey and report shows that, for referring a brand or business, 84% are willing to share by word of mouth, while only 21% are willing to write reviews online. To capture referrals from this demographic, real estate professionals should directly ask whether the client has any friends or family members who are thinking of buying or selling real estate in the near future. In addition, agents should ask for a written review to include in a testimonial book or in the testimonial section of your webpage.

Posted on February 18, 2016 at 09:17 AM in About, In the News, Institute News, Luxury Home Marketing Tips, Partners & Friends, Research & Statistics

NAR releases 2015 Profile of Home Buyers and Sellers

WASHINGTON – Nov. 5, 2015 – The share of first-time buyers declined for the third consecutive year – to its lowest point in nearly three decades, according to an annual survey released today by the National Association of Realtors® (NAR).

Overall, home sales strengthened, but the uptick was driven more by repeat buyers with dual incomes. The survey also found that nearly 90 percent of buyer-seller respondents worked with a real estate agent to buy or sell a home as for-sale-by-owner transactions dropped to their lowest share ever.

NAR’s 2015 Profile of Home Buyers and Sellers evaluates the demographics, preferences, motivations, plans and experiences of recent homebuyers and sellers, and dates back to 1981. Results are representative of owner-occupants and don’t include investors or vacation homes.

In this year’s survey, the share of first-time buyers declined to 32 percent (33 percent a year ago) – the second-lowest share since the survey’s inception (1981) and the lowest since 1987 (30 percent). Historically, first-time homebuyers make up nearly 40 percent of primary purchases.

“There are several reasons why there should be more first-time buyers reaching the market, including persistently low mortgage rates, healthy job prospects for those college-educated, and the fact that renting is becoming more unaffordable in many areas,” says Lawrence Yun, NAR chief economist. “Unfortunately, there are just as many high hurdles slowing first-time buyers down. Increasing rents and home prices are impeding their ability to save for a downpayment; there’s scarce inventory for new and existing-homes in their price range; and it’s still too difficult for some to get a mortgage.”

Yun says this year’s survey offers additional clues to why fewer first-time buyers reach the market.

“First–time buyers reported that debt (all forms) delayed saving for a downpayment for a median of three years, and among the 25 percent who said saving was the most difficult task, a majority (58 percent) said student loans delayed saving,” Yun says. “With a median amount of student loan debt for all buyers at $25,000, it’s likely some younger households with even higher levels of debt can’t save for an adequate downpayment or have decided to delay buying until their debt is at more comfortable levels.”

Buyer characteristics

This year’s survey finds a higher share of married couples – 67% (up from 65 percent last year) – with a higher household income than previous years. Married repeat buyers have the highest income among all buyers ($108,600). The share of single-female buyers decreased from 16 percent to 15 percent, and male buyers remained flat at 9 percent.

“Similar to some of the obstacles facing first-time buyers, tighter credit conditions and having less purchasing power than households with dual incomes likely led to the share of single-female buyers declining to its lowest since 2001 (also 15 percent),” adds Yun.

The percent of multi-generational households (adult children, parents and/or grandparents) at 13 percent didn’t change since last year. Eighteen percent of buyers identified as military veterans, 8 percent as an unmarried couple and 3 percent as active-duty service members.

The median age of first-time buyers was 31, unchanged for the last three years, and the median income was $69,400 ($68,300 in 2014). The typical first-time buyer purchased a 1,620-square-foot home (1,570 in 2014) costing $170,000, while the typical repeat buyer was 53 years old and earned $98,700 ($95,000 in 2014). Repeat buyers purchased a median 2,020-square-foot home costing $246,400.

The primary reason for purchasing? More first-time buyers in this year’s survey (64 percent) cited a desire to own their own home as the primary reason compared to a year ago (53 percent). For repeat buyers, desire to own a home of their own and wanting to own a larger home were both the top reason given (each at 13 percent). Nearly half of all buyers (46 percent) said the timing was just right and they were ready to purchase a home.

Most homebuyers (80 percent, up from 79 percent last year) continue to view a home as a good financial investment, and 43 percent believe it’s better than stocks. First-time buyers plan to stay in their home for 10 years, and repeat buyers plan to hold their property for 15 years.

Financing the purchase

An overwhelming majority of recent buyers (86 percent versus 88 percent in 2014) still financed their purchase, despite above-normal activity from all-cash buyers likely pushing the percent share down. Younger buyers were more likely to finance, and the median down payment ranged from 6 percent for first-time buyers to 14 percent for repeat buyers. Almost half (45 percent) of first-time buyers in this year’s survey said the mortgage application and approval process was “much more” or “somewhat more” difficult than expected.

Ninety-one percent of all buyers chose a fixed-rate mortgage, with 23 percent financing with a low-down payment Federal Housing Administration (FHA)-backed mortgage – a decline from 43 percent five years ago; 11 percent financed used the Veterans Affairs (VA) loan program with no downpayment requirements.

In addition to using their own savings for their downpayment (81 percent), first-time buyers used outside resources, including a gift from a friend or relative (27 percent), selling stocks or bonds (8 percent) or tapping into a 401(k) fund (8 percent).

For repeat buyers, the proceeds from the sale of their primary residence (53 percent) was the top source for their downpayment, up from 47 percent last year and 40 percent in 2012.

“With first-time buyers stuck on the sidelines, the majority of sales activity in most parts of the country is coming from pent-up sellers taking advantage of rising home values in their neighborhoods and using their equity to trade up or move down,” says Yun.

The home search process

More homebuyers began their search on the Internet (42 percent) than any other source, but real estate agents remained an integral part of the process: 88 percent of buyers who searched for homes online ended up purchasing through an agent.

The two most popular resources continue to be online websites (89 percent) and real estate agents (87 percent).

“Although buyers between the ages of 18-24 were the most likely to use an agent (90 percent), over 85 percent of buyers in each of the other age categories also used an agent during their home search,” says NAR President Chris Polychron. “With tight inventory conditions leading to stiff competition in several parts of the country, and what’s found online sometimes not entirely accurate, buyers are turning to Realtors for expert advice and assistance in navigating today’s fast-moving housing market.”

The home search resource gaining the most traction is mobile or tablet applications. Their use steadily increased from 45 percent in 2013 to 61 percent this year. However, traditional resources continue to prove popular with buyers, including yard signs (51 percent) and open houses (48 percent).

With tight inventory conditions in many markets, buyers moved faster than in previous years to find the house they purchased, typically taking 10 weeks (for the second consecutive year). From 2009 to 2013, the typical home search process took 12 weeks.

A detached single-family home continues to be the most common type of home bought (83 percent), while purchases of townhouses or row houses remained unchanged from a year ago at 7 percent. Of buyers with children under the age of 18, 89 percent bought a detached single-family home compared to 80 percent of buyers with no children in their home. Overall, the typical home purchased during the survey period was built in 1991 and had three bedrooms and two bathrooms.

Slightly more buyers in this year’s survey purchased a home in a suburb or subdivision (52 percent) compared to a year ago (50 percent). The remaining bought in a small town (20 percent), urban area (14 percent), rural area (13 percent) or resort/recreation area (2 percent). Recent buyers also moved further from their previous residence this past year – a median distance of 14 miles (12 miles in 2014).

Similar to previous years, the biggest factors influencing neighborhood choice were quality of the neighborhood (59 percent), convenience to jobs (44 percent) and overall affordability of homes (38 percent). Unmarried couples were the most likely to cite convenience to entertainment and leisure activities (26 percent), and single women were the most likely to cite convenience to friends and family as an influencing factor (43 percent).

Seller characteristics

Eighty-nine percent of sellers sold their home with an agent. Only 8 percent were by for-sale-by-owner (FSBO) sales, down from 9 percent the last three years and the lowest share ever recorded since the survey’s 1981 inception.

“Although the Internet and digital technology have created several channels for sellers to market their listings to a wider cast of potential buyers, the preference to use a Realtor to sell a home has never been stronger,” says Polychron.

Overall, the typical seller over the past year was 54 years old (unchanged from 2014; up from 49 in 2010) and married (77 percent), with a household income of $104,100 ($96,700 in 2014). The seller lived in the home 9 years before selling, which is a bit less than 2014’s all-time high of 10 years. This year, only 14 percent of sellers said they wanted to sell earlier but couldn’t because their home was worth less than their mortgage, compared to 17 percent a year ago.

Sellers realized a median equity gain of $40,000 ($30,100 in 2014) – a 23 percent increase (17 percent last year) over the original purchase price. Sellers who owned their home for one to seven years all reported roughly selling their homes for $30,000 to $35,000 more than they purchased it. Underlining the price swings during the downturn, equity gains fell to $3,000 for owners who bought between eight and 10 years ago. Homes sold after 21 years reported a price gain of $138,000.

The median time on the market for recently sold homes remained at four weeks for the second year in a row, again highlighting the persistently low inventory in several markets. Sellers moved a median distance of 20 miles (70 percent stayed in the same state) and the top reason for selling a home was that it was too small (16 percent).

Two out of three sellers (66 percent) found their real estate agent through a referral from a friend, neighbor or relative, or they used their agent from a previous transaction.

Client referrals and repeat business remain the predominant source of business for real estate agents, with most sellers (84 percent) indicating they would definitely (67 percent) or probably (17 percent) recommend their agent for future services.

NAR mailed a 128-question survey in July 2015 using a random sample weighted to be representative of sales on a geographic basis. All information is characteristic of the 12-month period ending in June 2015 with the exception of income data, which are for 2014.

The 2015 NAR Profile of Home Buyers and Sellers can be ordered online or by calling (800) 874-6500. The study costs $19.95 for NAR members and $249.95 for non–members.

© 2015 Florida Realtors®

Dismantling the Sales Machine

Sales leaders have long fixated on process discipline, monitoring reps’ conformance to “optimal” behaviors and their performance of specified activities. Recently, however, this sales machine has stalled. The approaches that once led to predictable progress in a sale do not work with today’s customers, who are empowered with more information than ever before.

The new environment favors creative and adaptable sellers who challenge customers with disruptive insights into their housing needs—and offer unexpected solutions. Such “insight selling” gives associates latitude to discover what the customer has already concluded about its needs and the available solutions, determine who the decision makers are, look for signals that the customer is receptive to a new insight about their home, and then figure out how best to proceed.

Most organizations, despite faltering sales performance, still have a climate that emphasizes compliance rather than judgment.

To create a judgment-oriented sales climate, managers must serve as connectors within and beyond their teams, providing a continual flow of information that supports sales professionals as they exercise their judgment on individual transactions. These managers must also focus on the long term, monitoring customers’ behaviors and directing associate’s creativity and critical thinking to the most-promising opportunities. And they need to hire champions—not necessarily those with sales backgrounds—who can thrive in the new climate.

Please read entire HBR article here…