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.

What's Ahead For Mortgage Rates This Week – Sept 22, 2014

Last week’s economic news largely concerned the Federal Reserve’s FOMC meeting statement and a post-meeting conference given by Fed Chair Janet Yellen. The FOMC statement indicated that the Fed continued its wind-down of Treasury and mortgage-backed securities and that its purchases are expected to cease after the next FOMC meeting.

What's Ahead For Mortgage Rates This Week Sept 22 2014Last week’s economic news largely concerned the Federal Reserve’s FOMC meeting statement and a post-meeting conference given by Fed Chair Janet Yellen. The FOMC statement indicated that the Fed continued its wind-down of Treasury and mortgage-backed securities and that its purchases are expected to cease after the next FOMC meeting.

The FOMC statement said that committee members find the economy to be improving at a moderate pace and currently strong enough to further reduce the QE3 monthly asset purchases. The Fed seeks to achieve and sustain its dual mandate of maximum employment and an inflation rate of 2.00 percent. While the unemployment rate is lower than the Fed’s benchmark of 6.50 percent, FOMC members cited concerns that the labor force is underutilized and that labor markets, while recovering, could use further improvement. The Fed repeated its customary statement that the Fed’s monetary policies are not on a pre-determined course, and that FOMC members continually review and interpret developing financial and economic news as part of their decision-making process.

Chair Yellen explained during her press conference that it is not possible to provide a specific date when the Fed will change its target federal funds rate. Economists and media analysts expressed concerns that raising the target federal funds rate, which is currently at 0.00 to 0.250 percent, could cause overall interest rates to rise. Chair Yellen said that she expects the current target federal funds rate to remain for a “considerable time” after the QE asset purchases cease. She also said that it is impossible to provide a specific date when the Fed will change its target federal funds rate and cited multiple influences considered by FOMC when changing monetary policy.

Home Builder Confidence Grows, Housing Starts Fall

The National Association of Home Builders Housing Market Index rose by three points in September for a reading of 59. Analysts had predicted an index reading of 56 against August’s reading of 55. September’s reading was the third consecutive reading above 50. Stronger labor markets were cited as supporting the higher reading, but builders were also concerned by tight mortgage credit standards. Any reading above 50 indicates that more builders perceive market conditions for new homes as positive as those that do not.

August’s housing starts were inconsistent with the Home Builders Index; according to the Department of Commerce, construction of new homes fell by 14.4 percent from July’s reading to 956,000. Analysts expected 1.03 million starts against July’s reading of 1.12 million homes started.

Mortgage Rates Rise, Weekly Jobless Claims Fall

Freddie Mac reported higher mortgage rates last week. Average mortgage rates rose across the board with the rate for a 30-year fixed rate mortgage 11 basis points higher at 4.23 percent. The rate for a 15-year mortgage also rose by 11 basis points to 3.37 percent and the rate for a 5/1 adjustable rate mortgage rose from 2.99 to 3.06 percent. Average discount points were unchanged for all mortgage types at 0.50 percent.

New weekly jobless claims dropped to 280,000 against an expected reading of 305,000 and the prior week’s adjusted reading of 316,000 new jobless claims. The original reading for the prior week was 315,000 new jobless claims. The less volatile four-week average of new jobless claim fell by 4,750 new claims to a reading of 299,500 new claims.

What’s Ahead

This week’s scheduled economic news brings multiple housing-related reports. The National Association of REALTORS® will release its Existing Home Sales report for August. Case-Shiller’s monthly Housing Market Index report and the FHFA’s Home Value report will bring new light to national market trends. The Department of Commerce will release its New Home Sales report, and as usual, Freddie Mac’s weekly report on mortgage rates will come out on Thursday. To see houses for sale in the Northern Virginia area please click here.

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”

 

List to Last-The A.B.C. Listing Presentation

List to Last-A Blog Series: By Rick Guthrie #2. The A.B.C Listing Presentation I hope you’re using a great Rapport Building Script like I outlined in my last blog. So let’s move forward and talk about your listing presentation or conversation which is what I like to call it. Years ago I realized that sellers […]

List to Last-A Blog Series:

By Rick Guthrie

#2. The A.B.C Listing Presentation

I hope you’re using a great Rapport Building Script like I outlined in my last blog. So let’s move forward and talk about your listing presentation or conversation which is what I like to call it.

Years ago I realized that sellers prefer to hear information in a certain order. If you ask yourself what would be the first thing a seller would want to hear? Well the answer of course is what their home is worth. Enter my A.B.C. listing.

The first section is the “A” section or “Agreement on Price”. I’ve found that if you’re talking about anything else first, at your listing appointment, the sellers are not really listening. So if I’m giving them my marketing plan first and they’re wondering what their home is worth at that point my information on my marketing plan is not really getting through. So in my “A” section I’m explaining in detail the pricing on their home backed up with comparable properties and illustrating why the market will bear that particular pricing strategy. Once I’ve done that I get their agreement before I move on. Once I get an agreement on price then I move to my “B” section.

The Listing The “B” section is for “Build Value”. This should define your marketing plan, your open               house schedule or whatever you do to bring them a buyer. Understand that when you get an  agreement on price a clock starts ticking. They’re wondering how much they’re going to put back in their pocket after they close. So move through this section quickly but still make it impressive and informative. If you do a pre-listing packet and drop it off it should be this Build Value Section or your Marketing Plan. When you get to this point in the conversation ask them if they’ve reviewed your marketing plan and do they have any questions. Then move on.

The “C” section quite simply is the Close. All this is for me is a customer estimated net sheet already filled out. Now I have a self-figuring net sheet and I know many do. It should be easy to explain and be padded with estimated buyer costs paid by seller. We want to show them worst case scenario what they’re going to be putting back in their pocket after a successful close.

After that is my closing question. You have to have a closing statement or question! Here is mine;

“Mr. and Mrs. Seller do you have any questions? No…. Great! When can we get your house in inventory?

If there’s any concerns they will come out then. I like to get all of the concerns or objections out on the table at the same time. One you should not hear is a pricing concern because we agreed on price 15 minute ago. Hmm you feeling the love.

I have a pre-made template and I teach this in a two day seminar so agents know it inside and out. The presentation is kind of plug and play. If you’re in the Northern Virginia area and you would like to attend, just email me at www.rickguthrie@kw.com and I’ll let you know when the next seminar is taking place.

As always, “You Have a Great Month Today”!

Do You Want a Home or a Deal?

Do You Want a Home or a Deal? By: Rick Guthrie Do you know the difference between buyers that are looking for a home and those that are looking for a deal? How are you communicating with your buyers and sellers?  A lot of buyers fall into one of two categories, the first category is […]

Do You Want a Home or a Deal?

By: Rick Guthrie

Do you know the difference between buyers that are looking for a home and those that are looking for a deal? How are you communicating with your buyers and sellers?  A lot of buyers fall into one of two categories, the first category is buyers that are looking for a home and the other is those that are looking for a deal.

Take a look at your buyers and think about what is motivating them the move?  By knowing the difference and adjusting your strategy to better meet their needs you will not only have more success in finding them the best possible home but you will also save time and potentially create a life long customer. Remember if you aren’t hearing their needs and motivations to move then you may be missing the opportunity to help them find what they are looking for.

want a home