Friday Facts November 12, 2010

November 12, 2010

Real Trends blog gives the following tips to become a market expert:
1. Narrow it down. Geographic area, price range, waterfront, golf course properties, etc.
2. View them. Look at properties all day every day. Know the inventory
3. Analyze. Understand where the best locations are
4. Write it down. Keep a spread sheet. For any property in your specialty, know the stats.
5. Become a detective. Know where the value is and who is motivated to sell and why

Broadcast your expertise only to Boomers. An article by Bernice Ross in Inman News breaks out the buying habits of the different generations:
o Born before 1965, Baby boomers and Traditionalists value expertise.
o Born between 1965 and 1976, Gen X doesn’t trust experts but has a strong belief in their ability to research and find information own their own
o Born between 1976 and 1994, Gen Y also has little or no use for expertise and is more concerned about what their peer group has to say.
You need to be the expert, but model your role based on the generation. Also remember that younger clients may watch you via your blog or social media activities for months before they contact you personally.

When your potential seller wants to wait to list their home until the spring market when all will be rosy, you might give them the following:
o Morgan Stanley analysts expect housing prices to continue to slide reaching new depths in 2012.
o Carter Murdoch, Senior Official with Bank of America’s Business Development Program says that the economy and housing will stay relatively flat through at least the end of 2011 because:
1. Consumer confidence though rising remains low
2. Income growth is anemic.
3. Unemployment may remain above 9% through 2011
o Allen L. Sinai, Chief Global Economist at the consulting firm, Decision Economics notes that median house prices have dropped 20% since 2005, and that given an inflation rate of 2%, it will take 13 years for housing prices to climb back to their peak.

From NAR’s 2009 Survey of Home Buyers and Sellers:
A third of all buyers looked online as the 1st step, 3% more than in ‘08
90% of home buyers used the Internet to search for a home, up 30% in 6 years
60% of buyers were likely to walk through homes viewed online.
36% found their home online, up 4% from ‘08
60% of homebuyers used MLS websites, the most frequently used online resource.
Where the buyer found the home they purchased. In 2001, 48% was through the real estate agent, and 8% was through the Internet. In 2009, 36% was through the real estate agent and 36% was through the Internet.

· In 2009, 13% of buyers had a purchase agreement that was cancelled, terminated, or fell through.