Real Estate and the Millennials-Attracting Talent

Real Estate and the Millennials- Attracting Talent Thanks for returning back to my blog on Real Estate and the Millennials. Today it’s about, “Attracting Talent”. So how do we attract millennial talent and how do retain them? I’m constantly searching for more data so I can pass on better information about the millennials. For the […]

Real Estate and the Millennials- Attracting Talent

Thanks for returning back to my blog on Real Estate and the Millennials. Today it’s about, “Attracting Talent”.

So how do we attract millennial talent and how do retain them? I’m constantly searching for more data so I can pass on better information about the millennials. For the most part I’m trying to be more effective in coaching them in real estate careers. In my research, with no big surprise, the data points to better communication as being the key element. I think one thing that’s become very clear to me is this fact; we as baby boomers created the millennial. We were the generation that gave awards to our kids for participation before results. We were the soccer parents that took our weekends to make sure our kids were exactly where they needed to be even when it required us to put our plans on hold. We were the ones that instilled in them an attitude of entitlement. It is what it is, so why are we surprised that their attitude of entitlement has manifested itself in the workplace? Is it necessarily a bad thing that they are who they are?

Millennials attracting talent If it was important for us to treat our children differently than we were treated, doesn’t it make sense that we treat our business subordinates in a way that we would have liked to have been treated? It’s just a thought. So we have to realize that, in the work place, we should continue on with that level of support and recognition that we willfully bestowed on our children and graciously offer that to our millennial business associates.

Already some of you have that feeling of crimson creeping up from your neck to your ears. Let me ask you this, do you want and need a business that works with the insight and talent of Millennials or do you want to stand your ground and find the 1% that will lose their soul for your cause? Looking back, now at the age of 53, I thought you could get ahead by losing your soul. Honestly I wish would have been more selfish.

Anyway, I’ve found this incredible youtube that explains a lot about Millennials. It’s called “6 Strategies to Connect with Gen Y/Millennials in the Workplace”. Watch this it is really insightful.

So I promised you that I would share a question and answer I had with my favorite Millennial, my son, about what would attract him to a real estate career. Here’s how that went.

Question: If I was trying to recruit you to a real estate career what would be the some of the top things you would be looking for?

Answer: The more I thought about it I realized that you are dealing with the “ask generation”. Whether it’s through people or the internet, my generation has gotten accustomed to always getting an answer to any question that we have so keep that in mind. As far as the real estate career question is concerned, there are a couple of thoughts that come to mind. One, the money and always being able to make more is a big deal. I agree with one article I read that hit the nail on the head when it mentioned that millennials work to live not live to work. We will never devote our life to only work. We want to show up, do a good job, get paid for it, then go home and enjoy other things. Unpaid overtime is a bazar concept that no millennial will ever be okay with and with a real estate career, that’s a thing that doesn’t really exist. I’d also be looking for places that aren’t going to be taking a larger portion of my commission if it can be helped. The reason millennials jump companies a lot, at least in my eyes, is people want to nickel and dime us, not offer raises, etc. So we will go somewhere else that offers us more attractive benefits or more money compared to other companies. Offering mentoring and help that leads to success and helps build us up and become confident in what we’re doing is huge. I personally want to know the ins and outs of everything I’m doing so I’m not reliant on someone else. Don’t know if any of that helps or not but those are a few.

That’s great insight. If you read this with an open mind, it just makes sense. Please comment on your thoughts and any insight you may have. Millennials please chime in. In short this blogger feels not only are you our future, but we will benefit from you greatly in the workplace. That’s only if we take on the responsibility to improve on our communication skills. Until next time.

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”

 

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

Tips for Keeping on Top of Quarterly Payments

Tips for Keeping on Top of Quarterly Payments When you’re earning business income throughout the year, chances are you’re going to have to pay estimated quarterly income tax payments. Whether you’re a sole proprietorship, LLC or corporation, these quarterly payments are due four times each year and the penalties for failing to remit them can […]

Tips for Keeping on Top of Quarterly Payments

When you’re earning business income throughout the year, chances are you’re going to have to pay estimated quarterly income tax payments. Whether you’re a sole proprietorship, LLC or corporation, these quarterly payments are due four times each year and the penalties for failing to remit them can be harsh.

Quarterly Payments

 

 

 

 

 

 

 

Keep your tax adviser involved in your income fluctuations so he or she can help you properly report and remit your taxes due. The typical due dates—which are not based on equal quarters—are:

Period Due Date
January 1 through March 31 April 15
April 1 through May 31 June 15
June 1 through August 31 September 15
September 1 through December 1 January 15 (the following year)
If the due date falls on a weekend or holiday, the due date is the next business day. Visit IRS.gov and search for Estimated Quarterly Tax Payments for more information about your type of business and the taxes due. In addition you can find remittance addresses or online payment options on the IRS web site.

What's Ahead For Mortgage Rates This Week – June 9, 2014

Last week’s economic news was mixed. Construction spending grew, but fell below the expected level. CoreLogic reported that April home prices continued to rise, but did so at their slowest growth rate in more than a year. Employment reports for private sector and government jobs indicated fewer jobs, but the national unemployment rate was steady.

What’s Ahead For Mortgage Rates This Week – June 9, 2014

What’s Ahead For Mortgage Rates This Week – June 9, 2014

By: Rick Guthrie

Last week’s economic news was mixed. Construction spending grew, but fell below the expected level. CoreLogic reported that April home prices continued to rise, but did so at their slowest growth rate in more than a year. Employment reports for private sector and government jobs indicated fewer jobs, but the national unemployment rate was steady. Here are the details:

Construction Spending, Home Price Growth Slows

Construction spending reported by the Department of Commerce reached $953.5 billion annually, and increased by 0.20 percent month-to-month against expectations of an 0.80 percent increase and the March reading of 0.60 percent growth.

According to CoreLogic, the rate of home price growth slowed to 10.50 percent year-over-year in April as compared to the 11.10 year-over-year rate of increase in April 2013. Home prices increased by 2.10 percent over March; these gains in home prices were the slowest posted in more than a year, but there was good news.

No states posted a drop in home prices, and eight states posted new record highs for home prices.

CoreLogic said that although a short supply of available homes has driven home prices up, price gains lost momentum due to affordability; CoreLogic expects home prices to increase at a slower pace and projects that home price growth will reach a pace of 6.30 percent by April 2015.

Mortgage Rates Mixed

Freddie Mac reported that mortgage rates for fixed rate mortgages rose while the average rate for a 5/1 adjustable rate mortgage fell. The average rate for a 30-year fixed rate mortgage increased by two basis points to 4.14 percent; discount points fell to an average of 0.50 percent. The average rate for a 15-year fixed rate mortgage also increased by two basis points to 3.23 percent; discount points were unchanged at 0.50 percent. Rates for a 5/1 adjustable rate mortgage averaged 2.93 percent, a drop of three basis points. Average discount points rose from 0.30 to 0.40 percent.

Jobs, Unemployment Data Suggest Economic Strength

Labor markets impact consumer decisions to buy homes; several labor-related reports released last week indicated that the economy continued to gain strength as more jobs were added and fewer workers filed jobless claims.

ADP reported that 179,000 private-sector jobs were added in May as compared to 215,000 jobs added in April. The Bureau of Labor Statistics released its Non-farm Payrolls report for May; 217,000 jobs were added as compared to projections of 210,000 jobs added and 288,000 jobs added in April.

New weekly jobless claims were reported at 312,000 as compared to expectations of 311,000 new jobless claims and the previous week’s 304,000 new claims. The four-week rolling average of weekly jobless claims fell by 2250 new claims to 310,250; this was the lowest reading since June 2007, and was 10 percent lower than the reading for the same week in April 2013 and was 17 percent lower than for the same week in 2012.

Another sign of economic growth was reported last week. Continuing jobless claims dropped to a seasonally-adjusted annual rate of 2.60 million for the week ended May 24; this was the lowest reading reported since October 2007.

The national unemployment rate for May matched April’s reading of 6.30 percent, and was lower than projections of 6.40 percent for May. The Federal Open Market Committee of the Federal Reserve (FOMC) has repeatedly cited an unemployment rate of 6.50 percent as a benchmark indication of economic recovery; it appears likely that the Fed may continue its tapering of asset purchases as it winds down its quantitative easing program.

What’s Ahead

This week’s scheduled economic news includes Retail Sales, Retail Sales without vehicle sales, and the Producer Price Index. Freddie Mac mortgage rates and Weekly Jobless Claims will be released Thursday, and the University of Michigan will release its Consumer Sentiment Index on Friday.

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.