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”!

Confidence Comes From Training

Confidence Comes From Training At the Fairfax Gateway Keller Williams office, in Fairfax, Virginia there are training classes offered each day of the week.  Monday through Friday there is at least one class that goes on in the market center that you can attend. Ignite classes, the Listing it’s As Easy As ABC and Champion […]

Confidence Comes From Training

At the Fairfax Gateway Keller Williams office, in Fairfax, Virginia there are training classes offered each day of the week.  Monday through Friday there is at least one class that goes on in the market center that you can attend.

Ignite classes, the Listing it’s As Easy As ABC and Champion Title’s Builders Contract How To, just to name a few of the classes that are going on in the Fairfax Gateway Keller Williams office this month.  Contract Mastery class goes over one of the different aspects of the Virginia Contract each Tuesday at 1:30. Listings It’s As Easy As ABC is a two day seminar all about listing a home and how to give a great listing presentation to your clients.  In the class there will be a full listing presentation that will show you how a listing presentation should be done and to better prepare you to be the expert listing agent.

To be the best real estate agent you can be you have to have confidence and the best way to gain that is through training and practice.

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. Look forward to hearing from you!

Fairfax Gateway

Every Month Profit Share

Every Month Profit Share By: Rick Guthrie Today Rick talks about profit share.  If you don’t know much about Keller Williams Real Estate then you must be thinking, “what is profit share?”  Profit share is the portion of the company’s profits that is given back to the agents in the program.   This program is […]

Every Month Profit Share

By: Rick Guthrie

Today Rick talks about profit share.  If you don’t know much about Keller Williams Real Estate then you must be thinking, “what is profit share?”  Profit share is the portion of the company’s profits that is given back to the agents in the program.   This program is unique to Keller Williams.  The breakdown of this goes something like this… you bring talent to Keller Williams and they go in your downline.  If anyone in your downline makes a sale you get a thank you from owners of Keller Williams for bringing that agent to Keller Williams. The best part is you don’t have to recruit them, let the team leader do all the work. If the agent joins the team and names you as their sponsor you get a bonus every time that agent gets a commission. To start making more money please click here to contact me.

To Contact Will Rodgers please click here.

Profit Share

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.

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.

Mapping Your Plane…Drop The "E" and You Have a PLAN

Mapping Your Plane …. Drop The ”E” and You Have a PLAN  By: Rick Guthrie So continuing on from my last blog, “It’s Just Plane Thinking”, I sometimes realize my visions of the future are clear but not really organized. So in this vast infinite area of possibilities, or our plane, I feel that it’s […]

Mapping Your Plane …. Drop The ”E” and You Have a PLAN 

By: Rick Guthrie

So continuing on from my last blog, “It’s Just Plane Thinking”, I sometimes realize my visions of the future are clear but not really organized. So in this vast infinite area of possibilities, or our plane, I feel that it’s important to organize our plane thinking.

Compass

If you remember from geometry, a plane or a coordinate plane can be set up with a grid reference. The grid reference is based off a “X” axis and a “Y” axis that makes up a set of coordinates where the lines meet. I really don’t want to open up the wounds of math class and bore you to death so I won’t. However, it’s interesting that military maps use a similar system. You can point to any place on a military map and it will be represented by a set of intersecting lines which are your grid coordinates. A route can be determined by a series of grid coordinates then you just follow that path from one coordinate to the next to get to where you want to go. But, to establish that route you need to determine where you are now before you are able to figure out where you want to go. Sometimes figuring out where you are now, or in other words your point of origin, is difficult.

When I was stationed at Fort Campbell Kentucky, they used to love to take a squad of us out and drop us off in the middle of nowhere. Then, we as soldiers, would have to figure out where exactly we were. Once we did, it was pretty easy to figure out the path to where we needed to be. I know I’m really dating myself. Now you’d just need an iPhone I guess. But back then we would take our compass and orient the map in the right direction. Then we would look around us for terrain features or manmade objects, like buildings, roads or water towers and try to locate them on the map. Once we had done that, we could pretty much determine where our location was. Sometimes it was a group effort and usually the senior soldier was the best at helping everyone figure out where we were. A lot of times that senior soldier had just simply been there before.

In your Plane, do you know where you are? If you want the dream career or business you have to know where you are now. That’s the only way to determine where you’re going in the future. You have to have a point of origin on any plane before you can even start. If you’re not clear, look around in your life and see what you recognize. Or better yet, find that senior advisor that can help you. Maybe that person has been down that same path before. Does that make sense? You may want to get a coach or a mentor that could give you some perspective.

I really like to draw things out. When I put my visions, plan or my route on paper I get to sit back and look at it. Then my dream becomes tangible and fluid.

I can move things around and look at different perspectives and scenarios. Gary Keller talks about the best way to build an empire is to develop a Vision Chart and then an Organizational Chart. So really if you wanted to think of your Plane on a simpler level, just drop the “e” from plane and now you have a plan.

But within your plan, you have to have a built-in structure of checks and balances. Going back to the route in the military; we would stop and check our compass every 1000 feet to make sure we hadn’t gotten off of our azimuth. If you got off track just a small percentage of a degree you could get into trouble. If you do that for a mile you could easily find yourself an eighth of a mile off course. Imagine what would happen if you didn’t follow your compass properly for 10 miles. It could be devastating. So in your plan, make sure you develop a system that is always checking your progress.

In closing, let’s take all of those dreams and visions of a better career or business and start mapping your Plane. Remember you have to have a point of origin. In other words figure out where you’re at now. Then you have to determine where you want to go. Then take your Plane and drop the “E” and start to PLAN.

Blog you soon.

 

 

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”