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.
Wednesday, October 28, 2009
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.
Friday, October 23, 2009
Become a Facebook-posting pro
How do you keep your business and social connections engaged with your posts? Read these tips to find out what you should be posting and how you should be managing your online content.
Before you post your listings or write about what you ate for lunch today, remember that while social networking and online interactions have the potential to turn into business opportunities, Facebook is best used as a way to connect with people on a social level.
Use the following tips to turn yourself into a Facebook posting pro.
Mix personal and business posts. Share great articles and content that your friends would find interesting. Whether it’s a new article from The New York Times on the $8,000 tax credit, or a link to a recipe to the potato salad you are making at a Labor Day party, mix it up. You can also post local events, a photo from your open house or links to videos on YouTube, for example, KW's This Month in Real Estate videos.
Keep your content fresh. Try to post at least once a day, but two or more times a day is best. This gives your friends an incentive to stay connected with you and to visit your page. Not only will your page offer great content, your contacts will continue to come back or even suggest new friends. An easy way to stay connected while on the go is by updating Facebook through your mobile or smart phone.
Join in the conversation. Engage in communication as much as possible. Comment on people’s photos, posts, notes, status updates and look for new friends regularly. Remember, whenever you comment on something it populates your home feed and your friend’s see what you’ve commented on. But, only comment if you have something worthwhile to say, not to just post your blog name or contact information.
If your content is quality, your time spent on social networking will be quality as well. Keep these tips in mind when posting and you will see increased success through your social media efforts.
Be sure to visit the Facebook Pages for KW: www.facebook.com/kellerwilliamsrealty; www.facebook.com/yourfirsthome; www.facebook.com/realestateshift; http://www.facebook.com/millionaireinvestor;and http://www.facebook.com/millionaireagent.
Before you post your listings or write about what you ate for lunch today, remember that while social networking and online interactions have the potential to turn into business opportunities, Facebook is best used as a way to connect with people on a social level.
Use the following tips to turn yourself into a Facebook posting pro.
Mix personal and business posts. Share great articles and content that your friends would find interesting. Whether it’s a new article from The New York Times on the $8,000 tax credit, or a link to a recipe to the potato salad you are making at a Labor Day party, mix it up. You can also post local events, a photo from your open house or links to videos on YouTube, for example, KW's This Month in Real Estate videos.
Keep your content fresh. Try to post at least once a day, but two or more times a day is best. This gives your friends an incentive to stay connected with you and to visit your page. Not only will your page offer great content, your contacts will continue to come back or even suggest new friends. An easy way to stay connected while on the go is by updating Facebook through your mobile or smart phone.
Join in the conversation. Engage in communication as much as possible. Comment on people’s photos, posts, notes, status updates and look for new friends regularly. Remember, whenever you comment on something it populates your home feed and your friend’s see what you’ve commented on. But, only comment if you have something worthwhile to say, not to just post your blog name or contact information.
If your content is quality, your time spent on social networking will be quality as well. Keep these tips in mind when posting and you will see increased success through your social media efforts.
Be sure to visit the Facebook Pages for KW: www.facebook.com/kellerwilliamsrealty; www.facebook.com/yourfirsthome; www.facebook.com/realestateshift; http://www.facebook.com/millionaireinvestor;and http://www.facebook.com/millionaireagent.
Wednesday, October 21, 2009
You can bank on the budget model
Although market conditions change, the fundamental models and systems set forth in The Millionaire Real Estate Agent don’t. “Hold your money accountable, Play ‘red light, green light.’” You hear those words a lot when talking about the Budget Model, but the real questions is: are you adhering to it?
Watch “An MREA Moment” featuring Gary Keller and Jay Papasan to find out how to direct your dollars wisely.
Watch “An MREA Moment” featuring Gary Keller and Jay Papasan to find out how to direct your dollars wisely.
Monday, October 19, 2009
Send the right news at the right time
Do your clients know?
- Mortgage rates for Aug. 2009 are at 5.25 percent, down from 6.5 percent the same time last year.
- Affordability remains favorable with the median mortgage payments requiring just 16 percent of the average income.
- Home sales are up 17 percent from July 2009, boosting the median home price for June up 3.6 percent to $181,000.
- Get more stats plus tips for making the most out of the buyers market from mortgage industry expert, Tommy Nelms in August’s This Month in Real Estate.
Watch it now and then send it out to your database!
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