Real Estate and the Millennials-What Do They Need?

Real Estate and the Millennials -What Do They Need? By Rick Guthrie Thanks for returning back to my blog “Real Estate and the Millennials.” Today it’s about, “What Do They Need”? So far we’ve touched on; “How will They Find Us?; Attracting Talent and “What do They Want”? Now let’s look at what they need. […]

Real Estate and the Millennials -What Do They Need?
By Rick Guthrie

Thanks for returning back to my blog “Real Estate and the Millennials.” Today it’s about, “What Do They Need”?

So far we’ve touched on; “How will They Find Us?; Attracting Talent and “What do They Want”? Now let’s look at what they need.

According to the findings from Pew Research Center, on Millennials, they are Detached from Institutions, Networked with Friendsthey are also called “the generation of digital natives”. Technology to the millennial is not just an impact or a change in their lifestyle like it was to the boomers and gen x generation. No, to the millennial technology is a way of thinking, learning and encompasses a lifestyle they were, for the most part, born into.

Real Estate and the Millennials What do they need?The data points to fewer millennials seeing differences between political parties. This is certainly different than boomers. The average millennial investor has 52% of their savings in cash, compared to other age groups which has about 23%. Definite patterns have been developed certainly not unlike past generations.

Anyway, I’ve put together a few thoughts on what the millennial real estate professional needs to thrive.

  • They need a team environment:

Millennials tend to job hop. It seems to be over 2 major issues. A boss to subordinate relationship, (which they do not like) and fair monetary compensation. The interesting thing though is they would rather make less and be happy then make more and have no fun. They need a fun team environment.

  • The need for open thought and opinion:

Let’s face it, no one likes it when their ideas or opinions are shot down. Keeping an atmosphere that is not openly critical, opinionated or racially and religiously charged is important. 48% of millennials are racially determined as other than white. Racial discrimination will not fare well in the work place to the millennial and rightfully so. In short, they want to contribute as a team, to the end result, with little to no drama. Try not suppress opinions or thought.

  • They need to be represented and included in decisions:

Millennials feel that too much power is in the hands of only a few people. They need to be heard. They need representation in decision making activities when possible. Certainly a company would need to set standards to where millennial leaders could qualify to be involved in the decision making activities. That said, the input from millennial leaders is invaluable to the company and to them.

  • They need and organization who gives back:

This generation is particularly drawn to social and environmental causes. Ensuring that your company is involved in community and or social contributions through a team effort will go a long way.

  • They need an open work environment:

Rigid hours and floor time and the 9-5 attitude is going away. Now for some businesses that’s a tough one. However not for real-estate companies. Having a fun and open office environment that gets everyone in the office to participate in lead generation is a win-win. Having swipe cards for easy after hour access is a must. Maybe finding leaders that are more flexible with their hours to meet with team members after traditional hours could be a plus. Sounds like we may need more millennial leadership.

  • They need a technology driven work place:

I know you’re thinking more dollars but not really. The greatest technology is in the palm of their hand. You have nothing to do with that. What you can do is get friendlier wireless and blue tooth equipment that complements their smart phones, hand-helds and pads. Then get some great furniture and dump the cubicles and those old outdated PCs that they don’t use and are frankly a source of embarrassment for them.

  • They need the opportunity to collaborate:

Everyone, not just millennials, has the need to contribute. This group especially likes side projects. Remember it’s not all about the money. Provide them the opportunity to head up or belong to a committee. Maybe they could work on a community event or plan an office social hour. Provide them the opportunity to train others. This goes a long way.

The fact is that 75% of our workforce will be millennials in 2025. That’s just in 10 years. We need to grow our companies with that in mind. To do that we need to focus in on what their needs are and then meet them. Also, we need to look for that great millennial leadership that we can develop that eventually will replace us…… I know I am! Please call me if that’s you.

 

Research credit links. Forbes, Inman, Brookings, Pew Research Center

Real Estate Millennials-How Will They Find Us?

Real Estate and the Millennials- How will they find us? By Rick Guthrie Thanks for returning back to my blog on Real Estate and the Millennials. Today it’s about, “How Will They Find Us”? Studying our new largest generation, the Millennials, has become a real passion of mine. Not just for helping with real estate […]

Real Estate and the Millennials- How will they find us?

By Rick Guthrie

Thanks for returning back to my blog on Real Estate and the Millennials. Today it’s about, “How Will They Find Us”?

Studying our new largest generation, the Millennials, has become a real passion of mine. Not just for helping with real estate careers here in Fairfax County, but for basically general knowledge. As with anything, our assumptions about others might not be accurate. Being a baby boomer and the parent of millennials, I felt that I knew what made the millennial generation tick. I thought that I knew all I needed to know. I must admit that I had some insight but most of my assumptions so far have been wrong.

I think back on how many times I’ve said, “kids of this generation know everything just ask ‘em, they’ll tell you”. I’m sure you’ve heard that too. The fact is…. they kind of do. Information is always at their fingertips and they will research that information at the drop of a hat if needed. The majority of my generation, in all humility, was researched challenged. Unless Mom and Dad fell prey to the Encyclopedia Britannica sales person or you had a good handle on the Dewey Decimal System, information was not easily forth coming. So for the most part, information came from the media and had a certain amount of subjection and or opinion. So we can assume, especially with the media inaccuracies of late, this practice doesn’t hold up for Millennials most of the time. I actually believe that they enjoy watching us banter over inaccurate information.

So what’s the point? The point is if we want to understand the Millennials we need to research Millennial how will they find usCharacteristics. The problem that I’ve had is researching very subjective and opinionated views. Sound familiar? Yep back to my old Boomer ways. So I’ve decided to actually survey the Millennials themselves. I’m not only surveying one on one but also in virtual surveys like Survey Monkey. Of course I’m trying to determine how to best meet the needs of my future millennial real estate clients but also attract millennial talent for careers in real estate.

My first research ah ha was from a conversation I had with my favorite millennial, my son. Now his occupation is in a tech related field and he is actually working towards his first home. My immediate assumption was that he would be virtually driven in his search for a real estate professional. Check this out.

          Question: I’d like to hear your thoughts and quote you in my blog. If I wasn’t your Dad and you wanted help with your home search, what would you be looking for from a real estate professional? What value proposition would spark you to use me?

          Answer: That’s a really tough question. I don’t know if I’d be the best person to ask, since I do tend to differ a bit from some millennials, but ultimately it’s going to come down to this. If someone I know, knows you and spoke highly of you or recommended you. As a first time home buyer, I have no expectations. I don’t know what’s typical and what I should be looking for. So I’m going to start asking people around me that I know if they have any suggestions and more likely than not, whoever’s name they throw out is going to be who I’m going to go to first. I might google that person’s name and see if anyone has said anything negative about that realtor, but if I don’t find anything they’ll be my first choice.

Isn’t that cool! We don’t need to change our mindset on relationships. Still our number one method of lead generation is asking for referrals. He didn’t say, “I’d go to the internet to get help”. Or, “I wish you guys had a robotic showing assistant”. Or, “I’d look at 3D floorplans”. He said he’d ask for personal recommendations. It’s still about that personal touch. I believe that’s going to be #1 in the real estate equation for a long, long time. Recommendations, referrals and relationships are how the Millennials will find us.

Wait till you hear what he said about contemplating a career in real estate. But that’s for next time.
Hey comment and give me your thoughts. Blog ‘ya soon.

List to Last-Seven Steps To Success

List to Last-A Blog Series: By Rick Guthrie #4 Seven Steps To Success Continuing on with my “List to Last Series”, did you practice the appraisal script? Like I’ve said I believe your ability to explain that process is crucial in you getting the proper initial list price. Moving forward I want to talk about […]

List to Last-A Blog Series: By Rick Guthrie
#4 Seven Steps To Success

Continuing on with my “List to Last Series”, did you practice the appraisal script? Like I’ve said I believe your ability to explain that process is crucial in you getting the proper initial list price.

Moving forward I want to talk about my seven steps to success. Initially you had a great rapport building conversation, with the sellers, when you set up your listing appointment. Then you put together a Kickin’ Listing Presentation using my A.B.C listing format. Now it’s time for the appointment. These are the seven things I constantly do once I arrive and before the actual presentation or conversation. So here are the seven steps to success;

  1. Show Up On Time. Everyone knows you always arrive on time, but don’t arrive early. They’re trying to get meals done or kids to bed or whatever. Just show up on time.
  2. Knock on the door, hand them a card and offer to remove your shoes. Removing your shoes shows them that you respect their property and sets a precedence in their mind.
  3. Greet Everybody. You may see some little ones, hanging around, at their parent’s side seeing who’s at the door. Showing them that they’re important sends a message to everyone. Occasionally you’ll see a retired couple in the living room hanging around. That’s most likely Mom and Dad watching out for their kid’s best interest. Maybe that’s in reverse and it’s the adult kids watching out for Mom and Dad’s best interest. You just need to say hi to everyone. Getting all of the adults to the table for the presentation is important. If you can make that happen you’re golden…Trust me!steps to success
  4. Go to the Staging Area and Lay down your Presentation Packet. This is where the presentation will take place. This needs to be an area where the sellers can be across from you. This way they can see the presentation and you can see them. Preferably the dining room or kitchen table works the best. The reason I place my packet there is to let them know this is where it’s all going to take place.
  5. Ask For a Tour of the Home. Lead the tour if you can. The script may sound like this: “Mr. and Mrs. Seller may I get a tour of your home? Hey let’s start in the kitchen and then we can move to the family room.” The reason I like to lead the tour, if possible, is to show them a “Take Charge” type of attitude. The tour should take as long as it takes and you should have a pen and pad taking notes. Any professional would take that approach. Caution, at this time try not to make negative observations about the condition of the home. We’ll handle that after we go through the presentation. If they ask questions on that topic, during the tour, my script is this; “You know once we get your home listed tonight, I’ll walk through your home with the eyes of a buyer and make some humble suggestions on what you need to do to get you home ready to sell. Fair enough?”
  6. Go Back to The Staging Area and Seat everyone like its Thanksgiving Dinner. The reason I seat them is the couple tends to go to their usual chairs, which is at the opposite end of the table. You want them right in front of you.
  7. Don’t Accept anything to Eat or Drink. What happens is that a great host or hostess will see your coffee cup or water glass empty and they will get up from the presentation to fill it. This breaks your pattern and you don’t want that. When they ask, I just politely say, “No Thanks I’m fine”.

 

So practice my “Seven Steps to Success” and see how that works for you. It gets you and the sellers in a great mindset and sets the stage for an incredible presentation.

 

Try it out and as always, “You have a Great Month Today”.

 

List to Last- Explaining The Appraisal Process

List to Last- Blog Series #3 Explaining The Appraisal Process. By Rick Guthrie I hope you’ve tried my A.B.C. listing format. If you haven’t go to www.rickguthrie.com and read that blog. In the ‘’A” section or the Agreement on price section it is extremely important to explain the appraisal process to the sellers. This well […]

List to Last- Blog Series
#3 Explaining The Appraisal Process.

By Rick Guthrie

I hope you’ve tried my A.B.C. listing format. If you haven’t go to www.rickguthrie.com and read that blog.

In the ‘’A” section or the Agreement on price section it is extremely important to explain the appraisal process to the sellers. This well help you get market pricing based off of your comparables. Once a seller understands what the function of an appraiser is and how they protect the lending institution’s interest, you can have more of a business conversation about pricing. Most transactions will obviously have an appraiser involved and believe or not most sellers are not aware of how this works. Until you have that conversation with them I find pricing is more an emotional decision rather than a business decision. I remember a script I learned from someone 15 years ago, it went like this;
     “Mr. and Mr. Seller, once your home goes on the market it is no longer a home but a commodity so   we need to treat it as such”.

The appraiser places a value on behalf of the lending institution on that commodity and the sellers need to understand that. I explain the appraisal process right in the beginning of my listing conversation. My appraisal script is this;

Mr. and Mrs. Seller the first thing I want to you talk about is the appraisal process. Once we get your home listed tonight and a buyer brings an offer, the buyer’s lender, not the buyer, is going to engage the services of an appraiser. The appraiser is determining value for the lending institution. The appraiser is looking for three like properties (apples to apples) that have sold within your area within the last 3 months. They want to find at least one or more that have sold at your contracted price or higher. Do you understand? Certainly a lending institution would not lend more money than a home was worth and you as a buyer wouldn’t want to pay more than a home was worth right?”The Appraisal Process

Now once I have gotten verbal acknowledgement that they understand, I move forward. When you backup this script with great comps and what I call a location of comparables map you’ll find they will choose realistic pricing, which is good for everyone. Poor pricing costs you and more importantly them time, inconvenience and definitely money.

So try this appraisal script in your next listing presentation or conversation and see how it works. If you would like to see this in a YouTube video just email me at www.rickguthrie@kw.com and I’ll send you a private link.

As always, “You have a great month today”

 

Watch Out for Real Estate Traffic

Watch Out for Real Estate Traffic By: Rick Guthrie We as real estate agents need to watch out for real estate traffic as we head into the fall, which is when the real estate industry starts to slow down.  We need to be constantly researching the real estate market as the number of houses that […]

Watch Out for Real Estate Traffic

By: Rick Guthrie

We as real estate agents need to watch out for real estate traffic as we head into the fall, which is when the real estate industry starts to slow down.  We need to be constantly researching the real estate market as the number of houses that are being listed and sold change. Agents need to be reporting to our sellers to keep them educated about the market and where it is heading.

A good agent is watching the housing market, a great agent is educating their clients about the market as it does change.  So, if a house isn’t selling it is most likely over priced.  As the market slows that would be the best time to be taking a look at other houses in the area that are on the market or have recently sold.

After doing your research, re-educating your seller about what their house should be listed at is a way of keeping your clients knowledgeable, about the industry.  Not only should you be contacting your sellers when the market is changing but you should also be following up with them about once a week.  You should be letting the sellers know about the feedback you are receiving from other agents about their home.  If people aren’t calling to see the house then that should be a big indicator that the house isn’t listed for the appropriate price to bring buyers in to make an offer.  Make pricing your focus this week!

If you would like to talk with me about moving to Keller Williams, ways to increase your business or just to introduce yourself please contact me by clicking here.  Look forward to hearing from you!

Choose Not to Participate

Choose Not To Participate By: Rick Guthrie You must be thinking why would I choose NOT to participate? Fairfax County Virginia has tons of social events and organizations to help you get your business name out there but, do you really think that is the best use of your time to increase your business? With the […]

Choose Not To Participate

By: Rick Guthrie

You must be thinking why would I choose NOT to participate? Fairfax County Virginia has tons of social events and organizations to help you get your business name out there but, do you really think that is the best use of your time to increase your business? With the Real estate market in Fairfax County Virginia, there will always be peaks and valleys or ups and downs in your business.

By going to professional meet ups and joining a few organizations around town some people will maybe decide to use you to help them sell their home or buy a new one down the road.  I think you should take a look at where your leads are coming from.  Many agents are finding that by participating in local organizations that they aren’t really getting as many leads as they thought they would and that their time could be better spend in other areas of their lead generation to find leads. I’m not saying to stop coaching to your child’s sport team or volunteering at their school events, just cut back on participating in things that you joined thinking they may  bringing in the some great leads.

Concentrate on your book of business and keep a pipeline of leads full. Then you’ll always have business and will not have to participate in the ups and downs of the market. Your business will be constant. By focusing more on your business database, triangulating and not participating in time consuming activities, and events that have little to no benefit to your business, you will be controlling your business not the market.

 

 

Real Estate market in fairfax county virginia

Get To Know Your Audience, Ask Questions

Know Your Audience By: Rick Guthrie You would never just start talking if you didn’t know who you were talking to right?  So why would you not ask questions to your audience? Someone in your audience could be a potential new client that you are letting slip right through your hands because you aren’t asking […]

Know Your Audience

By: Rick Guthrie

You would never just start talking if you didn’t know who you were talking to right?  So why would you not ask questions to your audience? Someone in your audience could be a potential new client that you are letting slip right through your hands because you aren’t asking questions and getting to know what they need to know more about or are looking for in a home.   Asking questions lets people know that you are interested in what they have to say and can be used to build a relationship with new clients.  You will never know what someone is looking for until you stop talking about what you know and start asking questions.  So take a look at who you are talking to then decide what to say.

How to Succeed Failing 99% of the Time

https://www.youtube.com/watch?v=7n-j9bpFfZ8 How to Succeed Failing 99% of the Time By: Rick Guthrie So if you have to fail why not fail and still succeed?  You must be thinking Rick, is that even possible?  Well if you are following me you already know my response will be, why not?  If you talk to 100 people a […]

https://www.youtube.com/watch?v=7n-j9bpFfZ8

How to Succeed Failing 99% of the Time

By: Rick Guthrie

So if you have to fail why not fail and still succeed?  You must be thinking Rick, is that even possible?  Well if you are following me you already know my response will be, why not?  If you talk to 100 people a week and only get one client out of those 100 contacts that amounts to one client a week and there are 52 weeks in a year amounting to 52 clients a year just from cold calls, emails or talking to people.  52 clients a year when you are failing 99% of the time isn’t bad at all.

succeed failing

The Secret Formula to Building a Million-Dollar Real Estate Business

The Secret Formula to Building a Million-Dollar Real Estate Business Many real estate professionals dream of building a million-dollar business. However, to hit that $1 million annual revenue mark, you need to have a solid sales system and abide by some basic good practices. The Millionaire Real Estate Agent (MREA) by Gary Keller offers a […]

The Secret Formula to Building a Million-Dollar Real Estate Business

Many real estate professionals dream of building a million-dollar business. However, to hit that $1 million annual revenue mark, you need to have a solid sales system and abide by some basic good practices. The Millionaire Real Estate Agent (MREA) by Gary Keller offers a well-defined and easy-to-grasp model and systems to hit that million-dollar mark.

Million dollar real estate business

Keller recommends that real estate businesses follow the MREA Economic Model. In short, it’s based on three concepts: What goes in, what goes out and what’s left over. In financial circles, those concepts are called income, expense and profit, respectively. The MREA model recommends that the proportions look like this:

What Goes In (Income)

Gross commission income (GCI) is 100% of the revenue your business takes in.

What Goes Out (Expenses)

Expenses have two categories:

Cost of sales (COS), which are the costs of making a sale including marketing, should be limited to 30% of GCI.
Operating expenses include your real estate business’ overhead, including your office and your staff. That should also be limited to 30%.
What’s Left Over (Profit)

When you keep your expenses to those levels, you’re left with profit. Some of that is for you to enjoy as the fruits of your labor, some of it is for savings and some of it is to reinvest in your business to grow it.

It’s easy to get caught up in more complicated financial measurements, but keeping it simple frees you to focus on the real drivers of wealth in your business and in your life. Keep an eye on the bottom line, including meeting proper gross income levels, as well as keeping expenses in check. The latter is critical because even “minor” expenses can add up and eat away your profitability. When you abide by these thresholds, your profit margins are healthy enough to provide well for you and your team members, allowing you to attract new talent and grow your business to that million-dollar mark and beyond.

Real Estate Trends for Fairfax County Virginia April 2014

Real-estate Trends for Fairfax County Virginia April 2014 By: Rick Guthrie I’d like to share the same information with you that I share with real-estate agents in career development here at Keller Williams Fairfax Gateway in Fairfax Virginia. The Sold Summary for April is incredible proving that home buyers are out in full force and properties […]

Real-estate Trends for Fairfax County Virginia April 2014

By: Rick Guthrie

I’d like to share the same information with you that I share with real-estate agents in career development here at Keller Williams Fairfax Gateway in Fairfax Virginia.

The Sold Summary for April is incredible proving that home buyers are out in full force and properties are moving. These statistics are comparing April of 2014 with April of 2013.

The sold residential real-estate dollar volume was $653,985,429 that’s up by 29.9% from April of last year.

The average sold price was $536,934 that’s up by 3.03% from April of 2013.

Fairfax County real estate units sold increased by 26.09% totaling 1,218.

The number of active Fairfax County real-estate listings in April 2014 was 2,387 that’s up by more than .76% with the average days on the market just at 38 days.

The top 4 methods of financing on sold properties this month were:

  1. Conventional loan formats
  2. Cash
  3. VA loan formats
  4. FHA formats

The average sold to listing price ratio was 98.2%

This data and the following data was provided by MRIS as of May 5th, 2014

The following is data for all of Northern Virginia real-estate which includes; Alexandria City, Arlington County, Fairfax City, Fairfax County, Falls Church City, Fauquier County, Loudoun County, Manassas City, Manassas Park City, Prince William County.

  1. Month on Month Volume up by 31.52%
  2. Month on Month Closed Sales up by 27.07%
  3. Month on Month Average Sold Price up by 3.5%
  4. Month on Month Average Days on the Market Better By 14%
  5. Month on Month Average Sold to Original List Ratio Better By 0.11%

So how’s the real-estate market in Northern Virginia Real-estate?

Rick Guthrie says, “It’s Unbelievable”