Real Estate and the Millennials

Real estate and the Millennials Blog series by Rick Guthrie According to the Pew Research Center , in 2015, the “Millennial” generation is projected to surpass the “Baby Boomers” generation as the largest living generation. The Millennial generation is typically classed from the ages 18-34 or born around 1980 through 2000. This presents an opportunity […]

Real estate and the Millennials

Millenials how may we help?Blog series by Rick Guthrie

According to the Pew Research Center , in 2015, the “Millennial” generation is projected to surpass the “Baby Boomers” generation as the largest living generation. The Millennial generation is typically classed from the ages 18-34 or born around 1980 through 2000. This presents an opportunity to look at the way we as real estate professionals are conducting our business. Are we attracting potential first time home buyers? Are we communicating our value proposition in such a way that the Millennials are hearing it and understanding it? Do we know the struggles and challenges that a Millennial may have in the home buying process? Are we attracting enough young talent to the real-estate industry that can support our need to service this next great generation? The average age of a real-estate professional is 57 years old. So the answer to the question above is probably no.

Over this next blog series I’m going to be doing some research and strategizing on how we as real-estate professionals can not only positively impact the “Millennial” real-estate client but also attract and train “Millennial” real estate professionals.

Many researchers have found “Millennials” to have high levels of self-esteem as well as a healthy feeling of self-entitlement. They are extremely tech savvy and communicate through a wide variety of social media platforms and for the most part seem ambitious.

Some challenges include high student loan debt. Not necessarily bad credit but no established credit. There seems to be more of a trend of job and career hopping.

The fact is every generation seems to have or have had a very definable established pattern. This of course stems from who and how they were raised. What events in history have shaped their character and belief systems.

I want to spend the next few months on looking at this from a view point of, “How do I affectively create a value proposition that is attractive to the “Millennial” real-estate client. The average age of the first time home buyer is 31.

So let’s seek to understand the “Millennial”. This is going to be fun. Stick with me and blog you soon.

Winterizing Your Real-estate Business, Expired Listings

Winterizing Your Real-estate Business #4. Expired Listings: by Rick Guthrie Thanks for coming back to my series on, “Winterizing your real estate Business”. As you remember from our last blog, I blogged about holding 2 opens a week. Today we’re going Winterize by focusing on Expired Listings. I’ve found a common pattern or strategy in […]

Winterizing Your Real-estate Business #4.

Expired Listings: by Rick Guthrie

Thanks for coming back to my series on, “Winterizing your real estate Business. As you remember from our last blog, I blogged about holding 2 opens a week.

Today we’re going Winterize by focusing on Expired Listings.

expired listings

I’ve found a common pattern or strategy in the mindset of a seller is they seem to list around the Holidays. What I mean to say is, that a greater percentage of sellers will purposely have their listing contract expire around the holidays. Their thought is that if their home doesn’t sell before the holidays, they’ll just simply take it off the market and try again in the spring or hirer someone different to get the job done. Now of course people, who have to move, will still have the motivation to get their home sold and will need to relist. However, what’s on their mind is, should I relist with the agent who didn’t get the job done the first time or should I look for a fresh approach?

If you’ve been in the business for any amount of time, you’ll know the reason the home didn’t sell is most likely price. Actually, not most likely, it is price. You coming in as the pinch hitter or second choice gives you the opportunity to price the home properly this time. You’ll get it listed with less pricing objections. If you focus on the expired listing, in your winterization strategy, you’ll find some great opportunities. Here’s what I’ve done that’s worked well for me.

  1. Develop a Great Expired Packet
  2. Set my MLS to Search for New Expired Listings Daily
  3. Drop Off Expired Packets Daily
  4. Follow Up With a Phone Call

Develop a Great Expired Packet – You want to make an expired packet eye catching but very generic. I kept about twenty in my car at all times. That way I could drop of several on my way to the office. The cover of my bound packet said in big letters “Do You Know Your Home May be currently off the Market”? The reason I did this is that some agents don’t keep up with their listings like they should and one will expire without their knowledge. Bad news for the seller but good news for you when you bring it to the seller’s attention. This usually leads to an appointment. The content of the packet should be information about you and also your value proposition for sellers. Testimonials are great here too!

CAUTION: Too much information might have a negative effect. The seller could make conclusions about your marketing and services without meeting you. CLOSE TO AN APPOINTMENT!

Set my MLS to Search for New Expired Listings Daily – Three things I did every morning. Got up early, had my coffee and checked for expired listings. I always wanted to get the jump on anyone else. I pulled them up, searched the address on the MLS to make sure they had not been relisted, plan a route to drop off packets and got phone numbers if I could. Too Easy!

Drop Off Expired Packets Daily – I basically door knocked and dropped off packets in the morning. You’d be surprised at how many people are at home in the morning. I found putting a packet in their hand and asking for an appointment gave me a higher conversation rate than just a phone call. If they were not at home, I would leave the packet and follow up with a phone call or another pop by.

HINT: Roll the packet up and put it in the handle of their garage door. People rarely go in through their front door anymore.

Follow Up With a Phone Call: Always follow up with a call to make sure they got the packet. There are companies that phone lists for expired listings. I guess the key is you’re on the clock. You have to get to them quickly so don’t waste a lot of time.

These are some key elements I used to stay in front of sellers whose listing agreement had expired with their former agent. Remember that good memorized scripts and dialogues for expireds are a must. So take this opportunity to make expired listings one of your tools to winterize your real estate business.

“You have a Great Month Today”

Winterizing Your Real-estate Business, Hold Two Open Houses per Week

Winterizing your Real-estate Business #3 – Hold Two Open Houses per Week by Rick Guthrie Thanks for coming back to my blog series on winterizing your real estate business. Today’s blog is strategy number three, hold two opens per week. Now of course were talking about two open houses per week. Typically we’ll see agents […]

Winterizing your Real-estate Business #3 – Hold Two Open Houses per Week

by Rick Guthrie

Thanks for coming back to my blog series on winterizing your real estate business. Today’s blog is strategy number three, hold two opens per week. Now of course were talking about two open houses per week. Typically we’ll see agents hold two open houses per month. Remember we’re going to, at least, double our efforts. Holding two open houses per week certainly does that. It’s not surprising that holding homes open is quite prosperous and a successful way to lead generate. To increase our open house results, we need to increase our frequency in holding open houses. My recommendation is that you hold a minimum of two per week. Consistency is the key here. Make a conscious effort to commit, plan, strategize and implement, which leads to holding two open houses each and every week until spring.

I want to make you aware of three myths surrounding open houses.

Myth Number 1: You can only hold homes open on the weekends.

Myth Number 2: You can only hold one open house per day.

Myth Number 3: Buyers are the only ones that attend open houses.

Let’s start with Myth Number 1: “You can only hold homes open on the weekend”. The question that I would ask is, “do you think you would be positioned better to get more traffic from an open house if there were more homes being held open in a day or less homes being held open? The answer of course is you would get more traffic if there were less competition from other homes being held open. That’s why an open house during the week is very strategic to get you more traffic. Also, you will find people are available and will attend open houses that are held during the week. In Northern Virginia there are several large companies that allow their employees to work from home on Mondays and/or Fridays to cut down on commuter traffic. These would be two great days to hold opens. Also, the military allows their newly transferred members 10 days of permissive TDY (temporary duty) to house hunt. Try a couple of opens during the week.

Myth Number 2: “You can only hold one open house per day.” I’ve found that the majority of people attend open houses within the last 30 minutes of the home being held open. So if you hold a home open from 1 to 4 the majority of your attendees show up at 3:30. So why not hold one open from 1 to 2, take a short break, then hold a different home open from 3 to 4. Make sure you invite attendees from your first open house to your second. Wow, they can actually follow you over! This is a great way to rapport build and to ensure maximum traffic in both homes as well as make the best use of your time. The second open house may be a great place to have refreshments so you can spend more time with potential clients. Make sure you tell the folks from the first to show up at the second because you’re having refreshments.

Finally Myth Number 3: “Buyers are the only ones that attend open houses.” This is just simply not always the case. It’s so important to learn your scripts and dialogs and ask the right questions as people walk through the door of your open house. I have found a good greeting to start off with may sound like this; “What brings you folks out today?” You may hear, “We just wanted to see the home” or you may hear, “We’re thinking about selling our home and we wanted to compare ours to this one”. Sometimes people are just looking for their friends and family. This provides you the opportunity to create another relationship and provides you with another database entry. Either way you have a future client. The important thing is that you ask questions, come from a point of curiosity and get that new contact in your database as well as help them in any way that you can.

In closing, we talked about how important it is to hold two open houses per week to increase your business through the winter time. We’ve also talked about the three myths commonly surrounding open houses.

Quick tip: Have your sellers really decorate for the holidays. Buyers can visualize themselves in a holiday home.

Thanks again for following my blog and as always you have a great month today.

Winterizing Your Real-estate Business, Ask for Help

Winterizing Your Real-estate Business #2. Ask for help, by Rick Guthrie Thanks for coming back to my series on, “Winterizing your real estate Business”. As you remember from our last blog, I blogged about doubling your database entries. Included in that, I blogged about shifting your mindset and doubling your efforts. Today I’m going to […]

Winterizing Your Real-estate Business #2. Ask for help, by Rick Guthrie

ask for helpThanks for coming back to my series on, “Winterizing your real estate Business. As you remember from our last blog, I blogged about doubling your database entries. Included in that, I blogged about shifting your mindset and doubling your efforts.

Today I’m going to show you how to simply ask for help.

Toward the end of my first calendar year in Real estate, I was up for an award that 1st year agents rarely got. I was standing out in the parking lot talking with the owner of the company explaining how frustrated I was, in the month of October, being so close to qualifying for this award. I continued on with my rant because I had only been licensed for six months and I thought it would be quite an accomplishment. I went on and on about how I would have really liked to have won that award. I told him how frustrated I was because I had gotten so close. Did you notice how I was referring to the award in the past tense? I still had almost three months to qualify. Anyway I continued on with my idle chatter. The owner listened and I when I got through blabbering, he looked up at me and said, “Why are you telling me this?” I looked back at him and said, “I thought you’d want to hear about it”. This is what he said AND I WAS FLOORED!

“The people who you really need to hear about your goal is your past clients. Because if they knew that you are working so hard to accomplish this goal before the end of the year, they may be willing to help you. They may know somebody that needs to buy or sell before the end of the year. You need to tell them not me because in the end I really don’t matter.”

Then it hit me, maybe people would be willing to help me for a specific reason or cause if they saw my passion. So I immediately sent out a mailer and more importantly I got on the phone. One couple, Mr. and Mrs. Rose referred me to 2 buyers. The short story is, that by December, I had the five more transactions I needed to achieve my award. My past clients came through for me.

The reason I’m telling you this story is that one of the easiest ways to get more business is to simply ask for help. If you have a goal to help five or more families buy or sell a home before the end of the year, you need to tell your sphere that. If 100 people in your database knew your mission and felt your passion they would love to help you achieve your goal. Remember, we need to come from an attitude of contribution so always offer to help too.

This week make a list of your core advocates, allied resources, and past clients and make sure that they are aware of your year-end goals. Do this before the end of the week. Actually, you shouldn’t have to make a list, your database should be set up already following the MREA model. You’d be surprised at how many of your contacts are willing to help you and you would also be surprised at how many of your contacts know people that are needing to buy or sell before the end of the year. So this week make a GPS action plan and contact the people you know and simply ask for help. If you are not familiar with the GPS tool from Gary Keller’s book, “The One Thing” Click here and download that tool. Remember, people are not mind readers. They can’t help you if you don’t ask for help. The winter months can be prosperous if you are willing to do what others are not. Also, your contacts are needing a holiday call from you anyway.

Thanks again for following my blog. As always, you have a great month today!

Winterizing Your Real-estate Business

Winterizing Your Real-estate Business, by Rick Guthrie Thanks for getting back onto my blog. Over the next few blogs, I’m going to be writing about winterizing your real estate business. Usually, I that find production starts to fall off during the winter months and into the first quarter. I’m sure you’ve noticed, I said production […]

Winterizing Your Real-estate Business, by Rick Guthrie

Thanks for getting back onto my blog. Over the next few blogs, I’m going to be writing about winterizing your real estate business. Usually, I that find production starts to fall off during the winter months and into the first quarter. I’m sure you’ve noticed, I said production not business. It’s usually a combination of mindset and gentle market shift that effects production. As with anything we do, we need to refocus our mindset and double our efforts if we want to increase our production throughout the winter. This is what we’ll focus on in winterizing your business.
Winterizing your business

Each blog that I will be writing in this series, winterizing your business, will be at specifically based on one focus that has a desired outcome. So stick with me as we will be going over eight different concepts in eight different blogs.
For today’s blog, on winterizing your real estate business, I will be talking about doubling your database entries. As we all know, statistics tell us that between 65 to 75% of all of the real estate business comes from referrals. In other words, the real estate agent was referred by someone or a person had used the agent in the past. So the numbers tell us that doubling your database entries gives you more opportunity for referrals. The numbers also tell us that every six database entries should net you one sale. So let’s talk about just 2 ways that we can increase our database entries.

Using the MREA method, let’s focus on;

  1. Your Core Advocates
    2. Your Allied Resources

Your Core Advocate Group Your core advocate group are those top nine or 10 people that would stand on a street corner and yell at the top of their lungs, that if anyone had a real estate need, they would need to choose you as their real estate professional. If you have to sit and decide whether or not somebody is a core advocate, they’re probably not. So what we want to do is go to our Core Advocates and practice my rule of nines. You will say to each of your Core Advocates; “Please help me, by asking your nine closest friends, if they would be willing to receive some real-estate information from me from time to time. Of course your Core Advocates should immediately be willing to help you. If you collect nine data base entries, from nine Core Advocates, that’s 90 in your database. Your focus is winterizing your real estate business. This is a quick way to grow your database with people who are willing to help you grow your business. To me, this should be your main and most important focus. Not only are you winterizing your real estate business you are ensuring that you have stable business for years to come.

 

Allied Resources are those people that you spend money for their goods and services on. It’s time for them to help you through the winter season. This could be your insurance person, doctors, lawyers, hair dressers, barbers, restaurateurs, plumbers, contractors and so on. You would be surprised at how many people you know that appreciate your contribution to their livelihood. These folks need to be data based in their own category and you need to ask them for help and remind them that you are a Real-estate professional.

 

In summary to get through the winter months one of the first things that you should be focusing on is feeding your database twice as much as usual. Sheer physics and math dictate that you should get twice the results. Go to your Core Advocates to help you grow your data base through my Rule of Nines. Also, continuously ask your Allied Resources for referrals. Hey you’re helping them through the winter, they should help you.

 

So let’s all get out there and start Winterizing your Real estate business.