Source: Inman.com
Make yourself memorable and earn more business from clients
A great dinner, a great movie, a great listing ... what makes something great? A lot of factors, right? But when we talk about something being great, it has everything to do with the experience, not with the thing itself.
Greatness lives in the engaging experience of a meal, the enjoyable experience of a movie and all those little surprising and heartfelt moments that enhance a client's homebuying or selling experience.
And still, when we talk about being "great at what we do" or running a "great business," we immediately leap to results, skipping over experiences. "Hey, we sold it right? Why are you crying?"
How aligned are your goals with those of your clients? What experience do your clients have and what can you do to improve it so significantly that "you" become the positive and memorable experience?
Surely the repeat and referral business you could generate is worth extra consideration, right? So let's take a look at some key factors that drive a truly positive and memorable experience.
Immediately demonstrate purpose and value
Show your stuff right off the bat. As you walk up and greet your clients with a smile and extended hand, introduce yourself and clearly remind them of what you are going to do. "Hi, I'm Kathy and I'm going to sell your home."
This boldness will be rewarded long after the home is sold, when you've demonstrated that you're the doer (look out for Kathy, lackluster agents)!
Ask emotionally-driven questions
It's easy to assume that asking questions comes across as not knowing the answers. But, more often than not, your clients will feel more engaged and involved if you follow up each statement you make with a question, especially an emotional one that addresses their feelings.
Try it on for size. "This is a beautiful property and I don't think it'll be listed for long before we start receiving bids," you might say. "Are you comfortable making the move here in the next few months?"
In this statement, you've complimented their investment, demonstrated confidence in your service, commented on the property's position in the market, set expectations and addressed their comfort level in the form of an emotionally-driven question. Efficient, professional, heartfelt — memorable.
Own it
What good is a memorable experience if clients forget it? Think shiny objects, shiny objects. Never underestimate the power that small but meaningful tokens have on instilling a positive experience in your clients' eyes.
A postcard photo of their new home the day they close with the caption, "Here's to your next chapter in life!" can respark the emotional connection you worked so hard to establish. With a bit of humility and gratitude, remind them of their time with you. You delivered a positive memorable experience — own it.
No one knows your business like you do, but hopefully these tips will help you keep the endgame in mind.
Yes, closing the deal is paramount, but your list of happy clients anchors your long-term business. Everything leading up to the creation of that list has been an opportunity. This aligns with the juice at the core of real estate and the heart of our message: establishing positive, long-term memorable relationships will generate more business.
As a real estate technology disruptor, you might think we at Offrs have our hands full with more technical considerations, but user experience is at the heart of everything we do — that focus is visible in our latest solutions suite.
From our home valuation experience at HouseValueReport.com to our home listing experience at offrs.com, we're all about cultivating a great experience. Making the experience memorable makes you memorable. Can real estate tools and services be results-driven while still easy and memorable? Unequivocally, yes!
Renting Is Overtaking the Housing Market—Here’s Why
Source: Realtor.com
Single-family rentals—either detached homes or townhomes—are developing faster than any other portion of the housing market. These rentals outpace both single-family home purchases and apartment-style living, according to the Urban Institute.
"Almost all the housing demand in recent years has been filled by rental units," says Sara Strochak, a research assistant with the Urban Institute. She also states that single-family rentals have gone up 30% within the last three years.
This change is unique to newer generations. But when did rentals become so popular? And why are people more inclined to rent than to buy? Below, we'll further discuss the rise in rentals and how it affects the housing market.
When did the rise in single-family rentals start?
The housing bubble collapse and the recession that followed shattered the decades-old tenet of American wisdom that you can't go wrong buying a home. Most of the housing market fallout from the Great Recession has finally receded—foreclosures and underwater mortgages are back to traditional levels and housing values have recovered in most places. But one thing hasn't recovered: Americans' unquestioned desire to own a home.
Today, single-family rental homes and townhomes make up 35% of the country's 44 million rental units, compared to 31% in 2006.
Who is leading this trend?
Millennials are leading the way to single-family rentals, and myriad factors contribute to this trend. Many young adults aren't in a hurry to lay down roots, whether they're prone to traveling or simply aren't ready to commit to one area or one home. Student loans and stagnant incomes can also make it harder to save up for a down payment. And it's inevitable that young people who came of age during the housing bubble would be reluctant to take a leap of faith and commit to a 30-year mortgage.
"While the age distribution of the US population suggests most millennials are reaching the age of household formation and demand for single-family homes, much of this demand is likely to be channeled into the rental market," says Strochak.
Are only millennials affected?
However, it's not just young people. Americans over 55 have also grown more interested in renting. According to RENTCafé, the number of renters aged over 55 has grown by a whopping 28% between 2009 and 2015. Many of them want to rent homes instead of apartments. From 2010 to 2016, single-family rental households in the US increased by nearly 2 million—1.26 million of those renters were 34 to 65 years old, while just under a half million were 65 or older, according to a RENTCafé Census data analysis provided by Adrian Rosenberg. In places like Miami, Houston, and Minneapolis, more than two-thirds of new single-family renters were over 65.
What led to this trend?
When did home renting become so popular? The trend began with large firms buying up cheap homes during the recession and turning them into cash-generating rentals—often rented by families who'd lost their own homes or who could no longer qualify for mortgages. Institutional investors, which are organizations like banks, hedge funds, and mutual funds, gobbled up millions of single-family homes that fell into foreclosure. In Phoenix, for example, the total of single-family homes occupied by homeowners—instead of renters—dropped by 30,000 from 2007 to 2010. Two-thirds of those homes were bought by institutional investors, the Urban Institute says.
But as prices have recovered, that business model no longer works. Instead, small-time landlords now dominate the market, explains Strochak. Investors who have fewer than 10 units own 87% of all single-family rentals, while investors who have only one rental unit own 45%.
How does this change the home-building market?
Bbig players continue to push the trend, some deploying a new build-to-rent model. Housing firms are actively building single-family homes intending to rent them rather than sell, says ATTOM Data Solutions, a firm that analyzes housing market data.
"I can buy lots in areas that I can't sell homes, but I can rent," real estate agent Adam Whitmire told ATTOM in a recent report. "The local economy may not have enough income or enough credit to buy but there is enough income to rent."
While big-time rental firms are backing off in some larger cities, the single-family rental investment play is picking up in smaller markets around the country in places like Dayton or Chattanooga, according to ATTOM.
How does renting affect local neighborhoods?
The movement to more single-family rentals is a mixed bag, says Daren Blomquist, senior vice president at ATTOM. On the one hand, the professionalization of the single-family rental industry is good for both families and neighborhoods, as there could be more standardized levels of maintenance and management services.
But there will likely be "unintended consequences as the nature of some neighborhoods change," Blomquist warns. Renters might not be as invested in communities as owners.
"For example, people who want to own a home may no longer be as active in the typical suburban white picket fence neighborhood as properties in those neighborhoods become more prominently rentals," he says. "That may push those homebuyers back into more urban, walkable environments, or it might push them further out to more rural areas."
Should you rent a home instead of buying?
Renting a home instead of buying can be a sensible choice for those looking to break out of apartment life. It can even serve as a good halfway step toward owning, to make sure single-family home life is really for you before you commit to a mortgage.
The main attraction to renting is obvious: buyers don't need a large down payment to move in. While plenty of mortgage programs give would-be buyers a break on the traditional 20% down mortgage model, skyrocketing prices in urban areas like Seattle or Washington DC mean that even 5% can be a prohibitive down payment requirement. So renting might make sense if you are ready to live in a house.
What should you know before renting a single-family home?
While all rental transactions are similar, there are a few things you should consider before moving to a home rental. If you're moving from an apartment, utilities will probably be considerably more expensive—after all, you'll be heating and cooling an entire home much of the year. There's also quite a few more maintenance requirements, particularly if there's a yard. Ensure your lease has clear terms regarding who pays for upkeep of the property. Gardening might seem appetizing if you are sick of your apartment, but it can be a year-round job, so make certain you're ready for the extra work. If you want to paint the walls or make other changes, know that you will need permission in writing.
Additionally, because you will inevitably have more possessions than in an apartment, it's more important than ever to get renter's insurance—your landlord's policy likely won't cover damage to or theft of your property. You should also consider liability insurance, in case you're found responsible for any kind of accident at the property that causes personal or property damage.
If you're moving to a single-family rental for more space or for monetary reasons, remember to adjust your budget to accommodate the new utility and rental costs. For resources on how to stay financially fit, check out Credit.com's Personal Finance Learning Center.
Real Estate's 6 Most Dangerous Everyday Situations
Source: http://realtormag.realtor.org
If you work in real estate, you undoubtedly do the following tasks all of the time, but did you know that you could be putting yourself in danger? Here's how you can stay on guard and protect yourself.
As a real estate professional, you put yourself at risk every day — you just might not realize it.
Meeting new clients, showing properties, holding open houses, letting strangers get into your car, and even your marketing may be jeopardizing your personal safety.
Such everyday tasks seem harmless, but as some real estate professionals have learned the hard way, these situations can expose you to danger.
Real estate is considered by security experts as a high-risk profession, says Robert Siciliano, CEO of RealtySecurity.com in Boston, and author of The Safety Minute: Living on High Alert (Safety Zone Press, 2003).
"The root of the issue is that you have real estate agents with no formal security training who are then meeting with complete strangers at odd times of the day and in vacant homes," Siciliano says. "Real estate professionals put themselves at risk at so many points. The industry opens itself up to predators."
Below are tasks common to practically every real estate professional. Learn the risks associated with each and what precautions you can take to stay safe.
1. Entering foreclosed or vacant homes
The Risk:Foreclosures may attract unexpected house guests — such as squatters — or former home owners refusing to leave. The homes also may be damaged and poorly lit or attract wildlife since it's abandoned, leading to more potential safety hazards.
Safety Tips:
Inspect the exterior. Walk around the perimeter before you enter the house and make sure the door hasn't been kicked in and no windows are shattered, suggests Tracey Hawkins, owner of Safety and Security Source in Kansas City, Mo. Call police if you suspect someone is in the property. (Read: Be on the Lookout for Clues)
Don't confront a squatter. If a squatter is in the home, leave immediately, Siciliano says. Call law enforcement once you've left and allow police to deal with any trespassers.
Use the buddy system. Ask a coworker, spouse, friend, or family member to come with you when you show the home. Let others know where you are. Before you leave, tell your coworkers, family, or friends where you are, whom you are with, and when you expect to return.
Visit during the day. Visiting homes at night makes it more dangerous, Siciliano says. Try to make appointments during daylight hours only.
2. Meeting with a new client for the first time
The Risk:Meeting with people you don't know can put your safety at risk. You don't know whether this person could potentially be a criminal, stalker, thief, or worse.
Safety Tips:
Meet at the office first. Get them on your territory before you visit any property with them so you can learn more about them and collect personal information about them for your files.
Ask for identification. The public is used to having their identification checked, so don't be reluctant to ask because you're scared you'll offend someone, Siciliano says. Tell clients it's company policy that all clients' driver's licenses are photocopied. "This will significantly reduce your risk because the bad guys don't want to give you their I.D. or get their picture taken," Siciliano says.
Have all clients fill out a customer identification form. You can find an example of this at REALTOR.org. Click on "Prospect Identification Form" under the Office Safety Forms heading. The form asks for car make and license number, contact information, and employer information, and also requests a photocopy of the driver's license.
Introduce them to a coworker. When you meet them at the office, introduce them to at least one other person in your office. Criminals won't like that others have seen them for identification purposes, according to tip sheets provided by the Washington Real Estate Safety Council.
3. Showing a property alone
The Risk:You're touring vacant properties with strangers.
Safety Tips:
Use the buddy system. "There's always strength in numbers," Siciliano says. Whether you bring a coworker, spouse, or even your German shepherd, avoid going alone.
Don't go into confined places. Avoid basements and attics — it's too easy to become trapped. Instead, know the selling points of these rooms and remain in the foyer on the first floor with the front door open as the buyer tours these areas, Siciliano suggests. If you must join them in each room, always stay by the door, leaving doors open so you can flee more easily if necessary, the Washington Real Estate Safety Council suggests.
Walk behind. Let potential buyers take the lead when exploring a home, with you always following behind.
Let others know where you are. Tell them where you are going, when you will be back, and who you're with. Better yet: Share this information while the client is with you so they know someone else knows where you are.
Have an excuse. If you feel uncomfortable, tell the person your "cell phone or beeper went off and I have to call the office" or "another agent with buyers is on his way," suggests the Washington Real Estate Safety Council in their tip sheets. (Read what one real estate professional said to get out of an uncomfortable situation she experienced at a client's home.)
4. Open houses
The Risk:You're inviting the public to a property, which is an invitation to anyone, from thieves to those who might want to harm you.
Safety Tips:
Promote security in your advertisements. When you advertise the open house, note that identification will be required at the front door and video surveillance will be in use. "The bad guys will be less likely to show up," Siciliano says.
Partner up. When would-be assailants see two people at the front door, they'll be less likely to go in. (Read one agent's story how the buddy system protected her).
Introduce yourself to neighbors. Let them know you'll be showing the house so others know that you are there.
Watch for patterns. At an open house, note any patterns in arrivals, particularly near the end of the open house. One common scam: Thieves come near the end of the open house, working as a team. They have "buyers" distract the agent as others steal valuables in the home. (Read what happened to one sales associate.)
Stow away your valuables. Never leave your purse, laptop, or wallet unattended on the counter in plain view. Keep them in the trunk of your car. However, always keep your cell phone on you so you can call for help if you need to. Also, before the open house, tell your clients to put away all of their valuables, prescription drugs, and mail.
5. Flashy personal marketing
The Risk: Marketing materials that contain photos of yourself may attract the attention of criminals. Police have found criminals circling real estate professionals' photos in newspapers and marketing materials (Read one agent's account of this.)
Safety Tips:
Avoid provocative photos in your marketing. Low-cut blouses, full-body photos, and looking over your shoulder in a sexy pose can send the wrong message to criminals. "Why do you have to have photos anyway? What are you selling?" asks Hawkins, who advises against ever using a photo for business reasons; she uses a caricature. "You make a living meeting complete strangers in empty houses. They see your photo and if you're exactly what they're looking for — whether that be an older or younger agent, blonde hair, blue eyes, whatever — they know all it takes is one phone call to meet you in a house. A picture can be dangerous."
Watch what you wear. Only wear shoes that you can run in. Avoid short skirts, low-cut tops, and expensive jewelry. "Predators don't have the same boundaries as you do. They look at you like that and say 'She's asking for it,'" Siciliano says.
Protect your personal information. Use your cell phone number and office address in your marketing so it can't be tracked back to your home address. Never use your home address or home phone number. Also, don't reveal to your client personal information about your children, where you live, and who you live with — you can still build a relationship with clients without revealing all of your personal information, recommends the Washington Real Estate Safety Council.
6. Transporting strangers in your car
The Risk: You're showing houses to potential buyers and chauffeuring them in your car from house to house. Most people don't pick up hitchhikers, yet real estate professionals put strangers in their car all of the time and don't think anything of it, Siciliano says. There's a risk of being robbed, your car being stolen, and you victimized and thrown to the side of the road.
Safety Tips
Drive separately. Have the client follow you from listing to listing. If you absolutely have to take one car, then you should drive. Watch where you park. Make sure your car won't be blocked in and that you park in a place where you'll be able to get out quickly. Park on the street or the curb, if possible, suggests the Washington Real Estate Safety Council. You'll attract more attention if you run and scream when fleeing, and it'll be easier to escape than having to back out of a driveway, experts say.
"Security is all about layers of protection. Open house signage, notation in ads, using the buddy system — everything that you do is an extra layer of security," Siciliano says. "The more you do, the more secure you'll be. Do nothing and the more vulnerable you'll be."
Nav app Waze now serving up property ads via Homesnap
Source: Inman.com
Real estate agents can pay to pin home listings to map or set up sponsored listings
Home search app Homesnap, also the public-facing brand of the Broker Public Portal, is partnering with mobile navigation software Waze to provide real estate agents with a new way to reach potential buyers.
Waze Ads by Homesnap will allow agents to place listing ads via map pins or purchase "digital billboards" through the community-based navigation app that claims over 80 million active users.
Agents who use the service will be able to target potential customers based on their location after they search for their destination or as they drive past a listing through geofencing. Waze is the only map application with geo-targeted ads.
"Agents deserve marketing tools that reach their clients where they are, whether they are on their phones, at a desk or in their cars," said Lou Mintzer, senior vice president of product development at Homesnap.
Agents who purchase advertisements through the platform — which already has access to listings through a real-time MLS RETS feed, making for an easy transition — will be able to have their properties seen in myriad ways.
For an individual listing, a picture of a home would appear as a pin on a map when users search for or drive by the property's location. Agents can also set up sponsored listings that appear when the user punches in a real estate-related search phrase, such as the name of a realty office, for example.
Individual listings cost $99 and Homesnap's Mintzer estimates that each advertisement will provide approximately 60,000 impressions. The listing stays live for 30 days.
For $999, brokerages can create advertisements for up to 50 listings (agencies wanting more can contact Homesnap's sales department to work out a deal). They can also opt to have the map pin depict their agency's logo rather than the home's exterior.
The purchasing agency will also have access to "digital billboards." When a user is stopped for more than three seconds, a sponsored listing of a nearby home will take over half of their phone's screen, and then disappear when they start driving again.
"The Waze ads are so unique because they are essentially the modern day equivalent of a billboard," Mintzer said. "They are a digital billboard that's displayed at the right time, the right place, to the right person."
And unlike a physical billboard, Homesnap will be able to provide advertisers with metrics such as how many times the listing was viewed, how many times it appeared in the app or how many times people actually navigated to the home, through a dashboard accessible to the advertiser.
Critics of the product may point out the possibility that it could pose a safety risk by essentially asking drivers to spend more time looking at their phones. In many states, it's illegal to even hold an electronic device while driving.
Mintzer said the company is sensitive to this issue but pointed out that Waze is owned by Google and that the product already has other advertisements.
"Certainly, [Google's] not going to make design decisions that put their user base at risk," he said, adding that the app is also used by passengers.
Co-op vs. Condo: What's the Difference Between These Types of Homes?
Source: Realtor.com
coop-vs-condo
Urban dwellers and potential buyers who want to purchase a new home in a common building or community will likely consider two types of properties: co-op and condo. Although they're similar in size and appearance, a co-op (short for "cooperative") and a condo (short for "condominium") are actually quite different.
To help you decide which property is right for you—and how buying one or the other will affect you financially—let's take a closer look at the intrinsic differences between co-ops and condos.
Co-op vs. condo: What's the difference?
The major distinction between these two properties is exactly what you will actually end up owning. A condo is a private residence owned by an individual or family in a building or community where the residents share common areas with the other condo owners.
"When you purchase a home in a condo building, you are buying the actual home and a share of the common elements of the building," explains Ryan Hardy, a Realtor® with Gold Coast Realty in Chicago. Those common elements can include yards, garages, rec rooms, lobbies, or gyms.
But when you buy into a co-op, you don't technically buy (or own) the property at all.
"You are purchasing shares of stock in a corporation or other legal entity that owns" the building, Hardy says. "You then are allowed to occupy a specific apartment in the building outlined in a proprietary lease that you receive with your stock certificate."
Going co-op earns you the right to be a voting member of the building, which is sort of like being a voting member on a board of shareholders. Typically each resident who owns shares has an equal say in how the co-op is run and maintained. Residents typically vote on any decision that affects the building; they also elect certain residents as board members who carry out the group's wishes. You also get a say in who else buys in the building.
"The pro is that you can pick your neighbors," says Michelle Lane, a Realtor with Commonwealth Realty in Newton, MA. "But when you go to sell, the board has to approve your new buyer, which can delay the sale of your co-op."
Another big detail to keep in mind about co-ops?The boards often require some hefty personal information before they'll sign off on your buying the place. They may ask to see your personal tax returns and have you interview with multiple residents—even after you have received approval from a bank for a mortgage.
Financial concerns
Speaking of mortgages, co-ops typically restrict the loan to value ratio, or the percentage of the purchase price that a buyer is allowed to finance. The LTV varies among co-ops, but it's common for them to require an LTV of less than 75%, Hardy says. Some co-op boards will even deny buyers who are financing the deal outright—requiring that they pay the entire purchase price up front with their own money.
Most condo associations, on the other hand, do not tend to restrict lending or financing in the building. If you can get a mortgage, the condo association will generally let you buy a place, Hardy says.
