Friday, October 30, 2009
On The Rise
Pending Home Sales ROSE by 6.4% in August to 103.8, its highest level since March 2007. According to Mr. Wood, "Pending home sales increased in August for the seventh consecutive month, suggesting that a bottom has been reached in existing home sales and a moderate recovery is underway. However, the level of home re-sales is still extremely low and any rebound is likely to be modest, especially in the near term. Some of the recent strength is due to first-time homebuyers attempting to close transactions before the federal government's tax incentives expire at the end of November."
Wednesday, October 28, 2009
TEXAS TOPS U.S. IN HOUSING AFFORDABILITY
COLLEGE STATION (Real Estate Center) – Texas beats the rest of the country when it comes to housing affordability, according to first quarter 2009 Texas Housing Affordability Index (HAI) numbers compiled by the Real Estate Center at Texas A&M University.
The numbers reflect the ability of a median-income family to purchase a median-priced existing home in their area. Texas had a ratio of 1.95 in first quarter 2009 compared with the nation's 1.55.
"The slowdown in the housing market nationally and within Texas has led to significantly increased housing affordability everywhere, and Texas continues to maintain its place as the most affordable high-growth state in the country," said Dr. Jim Gaines, research economist with the Center.
The index is posted on the Center's website.
The numbers reflect the ability of a median-income family to purchase a median-priced existing home in their area. Texas had a ratio of 1.95 in first quarter 2009 compared with the nation's 1.55.
"The slowdown in the housing market nationally and within Texas has led to significantly increased housing affordability everywhere, and Texas continues to maintain its place as the most affordable high-growth state in the country," said Dr. Jim Gaines, research economist with the Center.
The index is posted on the Center's website.
Monday, October 26, 2009
How Top Producers Get Price Reductions
By Dirk Zeller
Getting clients to reduce the asking price for their home is not a mystical occurrence. It must be done methodically, and top-gun Agents have a set system to get price reductions. It is followed to the letter no matter the price of the property, economic conditions of the marketplace, or the client. There are five steps to setting up a good price reduction system.
Step one: Get it priced right when you list the property. Tell the seller the truth about the price, and be compelling and convincing in your conviction. Make the seller understand that the other Agents want the listing and will beat them up on price later. They merely want their sign in the ground. You want a sale and a satisfied client and you are willing to tell them the truth up front to get that.
Step two: If you decide to take the home overpriced initially, get the commitment from the seller that if the home hasn't sold in 30 days, they will drop the price. Push to get a price reduction signed for a future reduced price and date. This commitment will avoid discussion later. If you do discuss this but don't get a signature, you will have at least laid the foundation for a price reduction discussion at a later date.
Step three: Get the seller to agree to meet with you at your office every 45 days to discuss the price of their property and showings. This meeting will give you an opportunity, in your environment, to get the price needed to sell the home. By getting them to your office, you have control and invest less time, which is your most precious resource. When they come to your office the meeting will be shorter and you will save at least 30 minutes in drive time.
Step four: Create a specific price reduction campaign of letters and phone calls. This campaign should start no later than 30 days after the listing is taken. The clients should receive information and guidance about the dangers of over-pricing their home. They need to know the importance of price in the sales process, even if you clearly explained this during the listing appointment. Remember, we are judged on the result of getting the home sold. If the price is hindering your success, your client needs to lower the price.
Step five: This is the final step. The clients have not been cooperative with getting the price down. They have met with you and received a few pieces of your price reduction campaign. Send them the final letter. The letter should state that you have included a price reduction form with your recommended price and a form to cancel the listing, and ask them to please sign one of the forms and send it back.
When I was an Agent, about 65% of my clients signed the price reduction, and about 35% wanted to cancel their listing. The 65% then sold at the reduced price when they would not have sold before. The other 35% we saw on the expired list months later. Clearly, our over-priced listings had no value. Yours will only cost you money and, more importantly, time and emotional energy. Don't allow clients to dictate the conditions and success of your business by refusing to look at the facts objectively. Reduce your expired listings by reducing the price. Price will always dictate all the other factors in the sale. Control the price today.
Getting clients to reduce the asking price for their home is not a mystical occurrence. It must be done methodically, and top-gun Agents have a set system to get price reductions. It is followed to the letter no matter the price of the property, economic conditions of the marketplace, or the client. There are five steps to setting up a good price reduction system.
Step one: Get it priced right when you list the property. Tell the seller the truth about the price, and be compelling and convincing in your conviction. Make the seller understand that the other Agents want the listing and will beat them up on price later. They merely want their sign in the ground. You want a sale and a satisfied client and you are willing to tell them the truth up front to get that.
Step two: If you decide to take the home overpriced initially, get the commitment from the seller that if the home hasn't sold in 30 days, they will drop the price. Push to get a price reduction signed for a future reduced price and date. This commitment will avoid discussion later. If you do discuss this but don't get a signature, you will have at least laid the foundation for a price reduction discussion at a later date.
Step three: Get the seller to agree to meet with you at your office every 45 days to discuss the price of their property and showings. This meeting will give you an opportunity, in your environment, to get the price needed to sell the home. By getting them to your office, you have control and invest less time, which is your most precious resource. When they come to your office the meeting will be shorter and you will save at least 30 minutes in drive time.
Step four: Create a specific price reduction campaign of letters and phone calls. This campaign should start no later than 30 days after the listing is taken. The clients should receive information and guidance about the dangers of over-pricing their home. They need to know the importance of price in the sales process, even if you clearly explained this during the listing appointment. Remember, we are judged on the result of getting the home sold. If the price is hindering your success, your client needs to lower the price.
Step five: This is the final step. The clients have not been cooperative with getting the price down. They have met with you and received a few pieces of your price reduction campaign. Send them the final letter. The letter should state that you have included a price reduction form with your recommended price and a form to cancel the listing, and ask them to please sign one of the forms and send it back.
When I was an Agent, about 65% of my clients signed the price reduction, and about 35% wanted to cancel their listing. The 65% then sold at the reduced price when they would not have sold before. The other 35% we saw on the expired list months later. Clearly, our over-priced listings had no value. Yours will only cost you money and, more importantly, time and emotional energy. Don't allow clients to dictate the conditions and success of your business by refusing to look at the facts objectively. Reduce your expired listings by reducing the price. Price will always dictate all the other factors in the sale. Control the price today.
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