It’s Time to Start Marketing Again

I can’t say it any more clearly than that.  And I’m only echoing what Jack Bailey said in his video interview a couple of days ago.

We’re going to have a Spring Selling Season this year, but — thanks to the Tax Credit and a number of other factors — it’s going to come early.  To be in the game you’ve got to have listings and the time to get them is RIGHT NOW!

The new Tax Credit program requires buyers to be under contract to purchase by April 30 and for the transaction to close by June 30.*    If average time on market for a listing in your area is 90 days, then these properties will probably go under contract in January.  That’s just a couple of weeks away. 

Many of us have cut back on nearly everything.  It’s OK:  the tough market of ’08 and ’09 dictated some serious changes.  But since the Fall, the market has been stirring — and it’s not just first timers attracted by the $8,000 Tax Credit that came to an end in November (though they became a much bigger factor than ever before).  Now it seems everybody — even sellers with equity — are starting to dip their toes in the market again, intrigued by the possibility of moving up for less.  It’s time to give the market engine a little gas:  kick it into gear with some marketing.

Certainly, the place to start is with past customers and clients.  They need to know about the new Tax Credit program and you can probably let them know inexpensively:  through phone calls and personal notes. 

Obviously, it’s time to really put some energy into your FSBO and Expired campaigns.  Again, this does not have to be expensive.

The place to spend a little money is in targeted marketing.  Start by breaking your marketplace down to the smallest geographical areas you can — usually that’s Carrier Routes, and you can use Melissa Data to get the numbers.  Look at each small segment:  where is the turnover the greatest?  Go one step further:  which Carrier Routes include homes appropriate for first time buyers?  Listings in these areas may produce two parties motivated by the Tax Credit:  the first time buyer and the move up seller. 

Now choose an approach.  Like Jack Bailey, I’m a believer in post cards.  They are relatively inexpensive and deliver the message even when they are not carefully read.  If you choose this method, don’t shoot your entire budget on the first mailing.  Hold some funds in reserve so that you can go back to the same households with another mailing in 3 – 4 weeks and another after that. 

And remember:  you can do target marketing even without spending money on marketing pieces.  You can spend time and energy instead.  You can pick up the phone and make targeted calls — ordinary brokers call them ‘cold calls’ — into the areas where you want your listings to be.  Trust me:  the first one you make will be the hardest and by the time you complete call number 3 it will be easy. 

And, oh by the way:  if the phone is not exactly your thing, there’s nothing wrong with going door to door handing out a flyer with information about the Tax Credit on one side and information about you on the other! 

Bottom line:  this is not the December to take off and be reflective.  I know:  that’s what we real estate folk usually do.  This year, let’s leave that up to our competitors.  This year, let’s get busy like never before.  Let’s get our signs out in the marketplace so we’re ready for the big kick-off in January.  This is going to be the Super Bowl of real estate.

*Qualified members of the military, foreign service and intelligence communities receive a one year extension on the April/June deadlines.  Go HERE to learn more. 

whitehouse

I’m Concerned: FHA . . .

12/10:  Matt Kellam, Help-U-Sell Keystone Realty, Chambersburg, PA, was on our Broker Roundtable teleconference yesterday and raised a red flag of warning.  He said changes in FHA guidelines were in the works and they could greatly impact the number of borrowers who might qualify for FHA insured mortgages. 

I spent this afternoon trying to track down the truth.  I Googled everything and talked at length with a Bank of America MLO — a fellow who really knows his stuff — and didn’t learn anything much beyond new Condominium guidelines (which will basically be favorable to our industry) and something called  ‘The FHA Taxpayer Protection Act of 2009’ that’s stuck in Committee in the House. 

But then our Communication Resource, Tami Patzer, sent me a copy of Secretary Shaun Donovan’s remarks to the Senate last week.  You can read the full piece by clicking here, but this is the section that concerns me the most:

. . . . we are committed to a series of additional steps to increase the quality of our business going forward.
 
An initial measure is to reduce the maximum permissible seller concession from its current 6 percent level to 3 percent, which is in line with industry norms, and we will continue to consider additional reductions.  The current level exposes the FHA to excess risk by creating incentives to inflate appraised value.

Secondly, to protect the fund from the riskiest borrowers, we will for the time being also raise the minimum FICO score for new FHA borrowers.

We are currently analyzing what this floor should be, including the relationship between FICO scores and downpayments to determine whether we should increase FICO minimums in combination with changes to other underwriting criteria for lower downpayment loans.

Third, we have made the decision to exercise our authority to increase the up-front cash that a borrower has to bring to the table in an FHA-backed loan – to make sure that FHA borrowers have more “skin in the game” and a stronger equity position in their loans.  There are several ways to accomplish this, and so we are currently analyzing various options to determine which is the most effective and consistent with our mission.
 
Finally, we are examining our mortgage insurance premium structure to determine whether an increase is needed and, if so, whether it should be the up-front premium, the annual premium or both. Our current up-front premium of 1.75 percent is below the statutory cap of 3 percent, while the annual premium is currently at the statutory maximum.  To protect against future uncertainty in market conditions, we are requesting authority from Congress to raise annual premiums, as this is one of the most effective means of raising capital for the fund with the least impact per borrower.

In the opening section, he says they are ‘committed to’ the following changes.  I normally take that to mean they are considering them.  However, as you read further, it seems clear that these changes have already been mandated.  

If this, in fact, is the case, the impact on FHA buyers — wh0 are fueling the real estate recovery — will be big.  It saddens me to see this on the heels of the extension of the home buyer tax credit and I can only hope that the language is not what it seems.  I will continue to search for confirmation (and hope for the opposite) — and if you hear anything, please let me know.

Update:  12/10 – Inman News says the changes will be announced to lenders in January and likely won’t go into effect for 60 days.  Usually, new guidelines don’t affect loans already in process, so it’s likely anything pending before March will fall under the current rules.

Jack Bailey Speaks! (We Listen)

Jack Bailey is a treasure.  A successful Help-U-Sell broker for more than 20 years, Jack has always been happy to share his considerable wisdom, advice and his infectious positive attitude.  I sat down with him the other day to talk about a couple of things:  first, his use of Listingbook, the tool that enables brokers and agents to maintain quality contact with buyers and sellers while giving them access to the best information available today, and then: marketing and what he’s planning for the next several months. 

Listingbook started in Jack’s hometown of Greensboro, North Carolina about 9 years ago and he was onboard with them from the beginning.  Over the last few years, the company has been expanding into Multiple Listing Services across the country.  A list of MLS’s currently featuring Listingbook is at the end of this post. 

Click Here to watch Jack’s interview about Listingbook

From all indications, it looks like our Spring selling season may be back next year, and it may arrive early.  Jack shares his thoughts on this and has some advice on what to do TODAY to be ready for it.

Click Here to watch Jack’s interview about Marketing

MLS’s currently featuring Listingbook:

  • Triad (Greensboro, Winston Salem, High Point)
  • MiRealSource – E. Detroit (Monroe, Down River, Jackson, Lenawee)
  • Pinellas & West Pasco (St Pete, Clearwater, Pt Rich)
  • Fort Myers FL
  • SoCal MLS (Orange Co, SF Valley, S Cal))
  • RMLS Minnesota (Minneapolis-St. P)
  • MRED (Chicago Land))
  • Cape Coral (add-on to Fort Myers)
  • MLSLI (Long Island)
  • CMLS Connecticutt
  • NE Florida MLS (Jacksonville)
  • MRMLS (Gr South Bay, Pasadena to Pomona)
  • Westchester-Putnam NY
  • CLAW   (West LA, Beverly Hills)
  • Sandicor (San Diego)
  • MLSPIN (Boston & most of Mass)
  • Bonita-Estero FL (Add-on to Ft. M)
  • RMLS Florida (Boca-West Palm)
  • Naples (Add-on to Bonita)
  • Intermountain MLS (Boise, Idaho)
  • MRIS (Wash DC, VA, MD)
  • MARIS (Metro St. Louis)
  • N. Nevada Reg MLS –  (Greater Reno)
  • MLS Listings, Inc (N Cal, San Jose)

 Listingbook is coming soon to:

  • Monmouth NJ
  • ARMLS (Metro Phoenix)
  • Miami & The Beaches (addon to RMLS FL)
  • Western Mountain Resort Alliance (13 ski asns UT,CO,NV,WY,ID,CAN)
  • GTAR (Greater Tampa)
  • i-Tech MLS (Glendale, Pasadena CA)
  • Staten Island
  • Madison, WI

Learn more about Listingbook here:  LBk

Expectations

You get what you expect.

It’s one of the Great Truths that’s so true that it has become a cliche.  Think about it:  a few years back an Australian woman made millions of dollars producing a DVD and Book that said, essentially, the same thing.  Remember ‘The Secret?’  Of course, that phenomenon went into manifesting your expectations through affirmations and visualization. 

We REALTOR-types have been talking about expectations and actually using them for . . . well, forever.  We set goals, we have minimum standards and so on.   But there’s something I noticed in recent years —  during the downturn — when finding and converting business became so difficult.  Many of us adjusted our expectations down.

That’s ok.  Given the market at the time, it made sense. You have to be realistic.

But today, by all accounts, there is a big shift beginning.  Buyers are waking up and becoming so active that in places inventory is in short supply.  Sellers with equity, motivated by the prospect of getting a much nicer home for a good price are starting to show up.  Put it all together and shake it up . . . and it looks like a good market could be just a few weeks or months away. 

It’s time to re-examine your expectations, for yourself, your company and your staff.  Maybe you’ve been grateful to be closing 1 or 2 deals a month.  Maybe you’ve been ok with that agent who only manages to get one every 5 or 6 weeks.  Put that past reality on hold for a minute and think:  what would be acceptable in a reasonably good market?  Do you expect to do 10 or 20 sides a month?  More?  And your staff:  is it time to expect more from them?  Is it time to decide that a minimum of two transactions per buyer agent per month is acceptable? 

The point is this:  you can’t expect to get more than you expect to get.  Don’t let your down market expectations limit what you  get as the market improves.

Saturday Silliness: Notes to the Landlord

How could they be anything but real!

The toilet is blocked and we cannot bathe the children until it is cleared.

This is to let you know that there is a smell coming from the man next door.

The toilet seat is cracked: where do I stand?

I am writing on behalf of my sink, which is running away from the wall.

I request your permission to remove my drawers in the kitchen.

Our lavatory seat is broken in half and is now in three pieces.

Will you please send someone to mend our cracked sidewalk? Yesterday my wife tripped on it and is now pregnant.

Our kitchen floor is very damp, we have two children and would like a third, so will you please send someone to do something about it.

Would you please send a man to repair my downspout? I am an old-age pensioner and need it straight away.

Could you please send someone to fix our bath tap? My wife got her toe stuck in it and it is very uncomfortable for us.

When the workmen were here, they put their tools in my wife’s new drawers and made a mess. Please send men with clean tools to finish the job and keep my wife happy.

Accessibility Toolbar