All posts by Shannon

Easy Agent Pro Blog, For Real Estate Agents

It’s a crazy world. Don’t let it impact your real estate business

Feeling a little out of sorts lately? 

If the pandemic didn’t bring on the anxiety, there’s always inflation, rising crime rates, sky-high gas prices and a war in Europe to compound things. 

The resulting emotional turmoil that tens of thousands of Americans currently suffer under has been dubbed “headline anxiety.” 

Symptoms range from mild stress to spending “… a lot of time obsessing or ruminating about negative news while off screen, to the point that it disrupts … work or home life,” Michael Ziffra, MD, an associate professor of psychiatry and behavioral sciences at Northwestern University in Chicago, tells Damian McNamara at webmd.com.

So, yeah, we’re stressed. We’re anxious too and many are finding it challenging to cope. 

All this, just in time for the spring real estate market when agents want and need to be at their best.

There is relief, most of it temporary, but it’s relief nonetheless. So take this real estate business advice to heart.

real estate business advice - stress and burnout

Real estate business advice – Lose your mind, temporarily

Stream a movie or two or three. Mindless activities, those you can become lost in, can, at least temporarily, provide a Calgon-take-me-away experience.

Lots of activities fit into this category:

  • Housework
  • Cooking or baking
  • Gardening
  • Jigsaw puzzles
  • Drawing, painting and other artsy stuff (Amazon.com carries some very cool paint-by-number kits for adults)
  • Dancing
  • Singing 
  • Listening to music or playing a musical instrument
  • Anything involving repetition

Odelya Gertel Kraybill Ph.D. calls these activities “intentional mindlessness.” She suggests that “… in practicing intentional mindlessness, we want to engage in activity that fully absorbs us (and while we are doing it the mind for the most part doesn’t wander to other thoughts or to what we are thinking and feeling.” (PsychologyToday.com)

Doing something repetitive is another recommendation to help relieve you of the beat-down of current events.

“Repetitive behavior and rituals can be very effective in increasing focus and reducing stress,” notes Caroline Liu at TheMuse.com, citing psychologist Dr. Jill Owen with The British Psychological Society.

Even watching someone else perform these activities can help ease your stress. Women who watch beauty influencers on social media as they apply their makeup know this well.

Check out these Youtube.com videos, courtesy of Leonora Epstein at Hunker.com:

If you aren’t squeamish, you may like one of my favorites, The Hoof GP on YouTube. There’s something oddly soothing watching him scrape and shape a cow’s hooves. He does often find some pretty gross things underneath, so consider this a warning.

Real estate business advice – There’s an app for that

Just when we thought we could relax over the Covid pandemic, Russia decides it’s a swell time to invade Ukraine. Sure, the events are taking place thousands of miles away, but the news is full of the stuff of movies.  

So, you’re waiting for a client and decide to check your favorite social app or news site to catch up on what’s happening. 

Bad choice. Before getting sucked into something that may trigger a doom-and-gloom mindset, arm yourself with one of the following apps:

  • Dark Noise – for iOS. Not to be confused with white noise or pink noise, dark noise “… has higher energy at lower frequencies. This makes it deeper than pink and white noise,” according to Kirsten Nunez at Healthline.com.

The app comes with 50 different types of ambient noise, the ability to add your own and a timer to gently fade the noise if you use it to fall asleep. 

Ryan Christoffel at MacStories.net reviewed the app before the updated version allowed for custom mixes, which was his one complaint about it. Despite his disappointment at the time, he claimed that “Dark Noise still beats out its competition in every other way I can imagine.”

  • Meditation Game – Now before you get turned off by the woo-woo title of this app, listen up. According to the folks at the Apple App Store, Meditation Game is “… an interactive experience that helps you relax …” 

The “interactive” feature to which they refer is a game, controlled by “… tilting the device or by using an on-screen joystick,” according to meditation teacher Paul Harrison at TheDailyMeditation.com.

“This game is incredible. This game proves that video games are more then [sic] just entertainment … [the Meditation Game] can help you relax …,” according to one Google reviewer.

It’s available for Android.

MindShift CBT – Quite different from the aforementioned apps, “MindShift CBT is a free self-help anxiety relief app, that helps you reduce worry, stress, and panic by following evidence-based strategies,” according to the developers.

Reviews are mixed. “User-friendly, nice to look at, and there are educational articles as well as calming exercises tailored to different types of conditions,” claims one positive review.

Another gentleman, however, states that “It’s funny that an app designed for anxiety can drive you crazy due to bugs.”

It’s available for iOS and Android.

Real estate business advice – Listen to the pros

Ted Talks have got to be one of the best things to come out of the digital world. The topics are endless, so if you’re more of an audible learner, you’re sure to find a talk that will soothe your mind, teach you something new or make you laugh. To start, check out the following:

How to stay calm when you know you’ll be stressed, Daniel Levitin

Neuroscientist Daniel Levitin has nailed the anxiety of the typical listing presentation in his Ted Talk:

“You’re not at your best when you’re stressed.”

Author of the bestseller “The Organized Mind: Thinking Straight in the Age of Information Overload,” Levitin throws a lifeline to those of us who are “drowning” in an “… unprecedented deluge of data.”

It may just be the best 12 minutes and 11 seconds you spend today.

All it takes is 10 mindful minutes, Andy Puddicombe

Here’ a question for you: “… when did you last take any time to do nothing? Just 10 minutes, undisturbed?” 

Puddicombe starts his talk reminding us that “nothing” means “… no emailing, texting, no Internet, no TV, no chatting, no eating, no reading. Not even sitting there reminiscing about the past or planning for the future. Simply doing nothing.”

It’s sort of the opposite of the mindless routines we discussed earlier. And, although it sounds like meditation, he promises that there is “no need for incense or sitting in uncomfortable positions.”

That said, if you’re seeking a more metaphysical journey to becoming anxiety or stress-free, this might be the one for you.

 

Real estate business advice – Be more deliberate in your news consumption

Sure, it’s easy to just stop consuming news altogether and a lot of us are on the verge of doing just that.

But you don’t have to disconnect completely. “Delete news apps from your phone,” suggests Nick Wignall at Medium.com. He believes that being forced to type in a URL causes a “friction,” which leads to “… a way to maintain healthier boundaries with the news.”

Although that one is a wise move, we like another of his suggestions

“Stop following media conglomerates and get your news from thoughtful people.”

He goes on to say that a more “reasonable” approach is to read and listen to the people you “… respect and admire and … who don’t have a profit incentive for sharing their thoughts.” 

The idea of this technique isn’t to eschew the news to the point of being uninformed, but to not be a slave to it and the fear mongering that it typically contains and to find a reliable source with no hidden (or otherwise) agenda. 

Finally, ask yourself “What are my limits? How much news is too much news for me?” suggests Erin Jones, LCSW at VeryWellMind.com.

Nature’s perfect remedy

The next time you’re tempted to check out social media or news sites, try this real estate business advice instead: Turn off the phone or the computer, get your hiney out of the chair and head outdoors.

It’s a well-known fact that just being outdoors, especially in nature, is good for the psyche.

“Studies show that being in nature lowers your stress-hormone cortisol and decreases your heart rate,” according to the pros at InterMountainHealthcare.org. Read more about the studies at Fronteirsin.org.

If you’re an urban agent, you can get the same benefits by hanging out around street “… trees, a planter with flowers, a grassy quad …” or a small park, according to a Cornell University study published at ScienceDaily.com.

All it takes is 10 minutes to get the benefits that nature can provide.

What does the strife in Ukraine mean for Americans? When will food, gas and other prices come down? Does the covid spike in China portend a similar situation here at home?

Yes, it’s crazy-making. Yes, it’s stressful. Going into your busy season as a real estate agent, however, demands that you take care of your psyche. Take our real estate business advice to heart; Acknowledge that you’re not alone, ignore the sensationalized headlines and get out in nature whenever possible. 

Easy Agent Pro Blog, For Real Estate Agents, real estate related

Vacation homes: A niche market worth pursuing

“Homebuyer demand for second homes was up 87% from pre-pandemic levels …” last month, according to a Redfin study.

Think about that one for a minute.

The surge in second-home purchases actually started in 2020, but when mortgage rates hit 3.5% in January, they shot way up, as buyers tried to beat the additional rate hikes promised throughout 2022.

It’s an interesting turn of events when one considers that while this was happening, the share of consumers who bought their first home shrunk, from 30% to 27%. 

Contrast that to the 22% of purchasers buying a second home. That number rose from 17% in December, according to the editors at nar.com.

First-time buyers are being priced out of the market and when mortgage rates increase the share of first-time purchases will plunge even more.

If you work in a seasonal market or one of those you’ll find listed below, you may want to bone up on the wants and needs of second-home buyers and how to work with them.  

Vacation home buyers for real estate agents

Why the boom in vacation home sales?

“Many white-collar professionals who were able to work from anywhere with a reliable internet connection did just that—preferably in a newly purchased home on the water or in some scenic, bucolic location,” is the explanation proffered by Clare Trapasso last summer at realtor.com.

“Low interest rates on home loans, pandemic-era savings and a hybrid-work revolution have made it more feasible for people, not just the ultra-rich, to live a dual lifestyle,” explains Claire Ballentine and Alice Kantor at fa-mag.com.

Whatever the reason, vacation home sales are booming and it’s time to start targeting this group of real estate consumers.

Profile of vacation home buyers

The National Association of Realtors conducted a survey of more than 2,300 owners of second homes. The information gleaned from the survey allowed the association to compile a profile of average vacation home buyers. 

  • 33% of vacation home buyers chose a home near a beach while 21% bought on a lakefront and 15% chose a home in the country.
  • Slightly more than half of vacation home buyers bought a detached, single-family home.
  • Only 6 percent of vacation homebuyers bought with the intention to rent out the home to generate income.
  • Those who buy vacation homes are more likely to pay all-cash.
  • A whopping 77% of these buyers came in with a minimum 20% down payment.
  • Only 4% of vacation homebuyers are first-time buyers.

And where do these vacation home buyers choose to purchase?

Vacation home buyers - What you need to know

The NAR’s research finds that the “… top 1% hottest vacation home counties …” are in 16 states, some of which may surprise you:

  • Arizona 
  • Delaware
  • Florida 
  • Georgia 
  • Maine 
  • Maryland 
  • Massachusetts (in the top 5)
  • Michigan (in the top 5)
  • Minnesota 
  • Missouri
  • New Jersey 
  • New Mexico 
  • New York (in the top 5)
  • North Carolina (in the top 5)
  • Oklahoma 
  • Vermont (in the top 5)

According to the NAR report, the top 10 counties for vacation home sales include:

  • Lee, Florida
  • Oscoda, Michigan
  • Swain, North Carolina
  • Collier, Florida
  • Dukes, Massachusetts
  • Alleghany, North Carolina
  • Garrett, Maryland
  • Barnstable, Massachusetts
  • Alcona, Michigan
  • Macon, North Carolina

Read the entire survey online at nar.realtor.

In a nutshell, when you work with someone hoping to purchase a vacation home he or she will most likely earn significantly more than the national median household income, the home will most likely be several hundred miles from their fulltime home, they will not want to look at condos and they are buying to use the home for vacations, as a family retreat, but not an investment.

Plan on a relatively quick transaction with vacation home buyers

In the first quarter of 2021, 53% of all vacation homes were purchased with cash, according to Trapasso. No mortgage, quicker transaction, right? Typically, yes.

“Closing a cash transaction can take as little as two weeks,” according to Kate Wood at nerdwallet.com.

She goes on to claim that cash transactions generally have fewer contingencies and “without a lender involved, there’s much less to review and sign off on to close the deal.”

Create content that will reach your would-be clients

If you’re going to sell in a market as niche as vacation homes, be sure you’re creating content that will help frame you as the industry expert in your area. Detailed posts that cover a range of topics can help potential vacation home buyers know what to expect and how to get started in this exciting endeavor.

Local agent Mike Chen wrote a great 3-part series on buying a vacation home in Orlando. His blog goes into detail on the local market, budgeting tips and what to expect when entering the world of vacation home buying. His posts cover a range of topics, including detailing his family’s personal experiences with vacation home buying – And best of all, they remain hyper-local, focusing on the Orlando Disney World market.

Bone up on the niche 

While it’s not a requirement, consider pursuing the NAR’s Resort and Second-Home Property Specialist (RSPS) certification. 

Now is a great time to take the classes because NAR is offering REALTORS® half-off the normal price, so you’ll only pay $97.25. This price is good through the end of 2022.

Since working in this niche requires a different knowledge base than traditional residential real estate, this might be the perfect introduction for the complete newby to the vacation home niche.

You’ll learn how to understand the “… recreational and lifestyle market, tax treatment of vacation and second homes and real estate investment.”

Tip: If you decide to go this route, do yourself a favor and don’t use RSPS on your business cards and other marketing materials. Consumers don’t know what the letters mean. The whole title, in this case, gets the message across better.

Anita Deal

Certified Resort and Second-Home Property Specialist

Impressive, right?

real estate vacation home buyers - how to generate leads

How to reach vacation home buyers

Let’s go back to our profile of vacation home buyers. Unlike investors, these buyers plan on using this home for their vacations and holidays. A “sanctuary” or “retreat” is how many describe what they’re looking for.

Listing agents should consider targeting their marketing language on websites, fliers, farming materials, etc. “… to include language … that tells a buyer that your property is a place where they can unwind,” according to a blog post at dmrealestatephotography.com.

“A subtle edit, for example, from master ‘suite’ to master ‘retreat’ could broaden your listing’s appeal without alienating buyers seeking a primary residence,” it continues.

Buyers’ agents may want to create an additional website targeted to this niche. Filled with delicious, vacay-related keywords and images, the site will increase your odds of being found online and widen your brand’s exposure.

Add hyper-local blog posts that introduce these possible newcomers to the wonders of the area combined with cross-posting on social media and engagement and involvement in groups in the area, and you’ve got yourself a lead magnet website.

Since there has been “… a 494% increase in requests for agent-led …” (Aaron Bours, head of marketing for Hyro) video home tours, consider creating them and offering them as a free-download-for-contact-info enticement. 

And of course, for a little extra juice, try a well-placed ad on Facebook or Google.

Extend your tentacles to other markets 

Gene Carter, broker associate with The Beach Pro Team in Myrtle Beach, SC sells only vacation homes and has for some years now.

One of the things he mentions on his website is that his “… team reaches buyers nationwide – and beyond.” Obviously aimed at potential vacation home listing clients, it’s a statement we haven’t seen expressed on other second-home specialists’ sites. Yet, it’s so compelling.

Where are vacation home buyers coming from?

We learned earlier that Lee County, Florida heads the list of the top 10 counties for vacation home sales. That’s a good thing to know for the agent located in Lee County or nearby. 

Where, however, are these people migrating from? That’s equally important for both buyers’ and sellers’ agents to know if they hope to be proactive and reach these real estate consumers before they hire a local agent.

Start drumming up referrals from agents in Virginia, Illinois, Texas, California and New York.

A little research online will give you an idea of which areas of each state are experiencing the most out-migration. In Virginia, for example, introduce yourself to agents in Virginia Beach city, Stafford County and Prince William County.

Now that you’ve narrowed down which areas, find agents that might be amenable to swapping referrals.

“If your broker doesn’t already have a built-in network from their franchises … join referral services like Leading RE or Referral Exchange” Dawn Pfaff suggests at realestateadvice.com 

“If you want to send and receive referrals, there are Facebook groups such as ‘Lab Coat Agents’ and ‘Raising the Bar in Real Estate’ where you can ‘friend request’ agents all over the country,” she continues.

There’s a lot to learn in the second-home niche. Right now, however, it’s such a lucrative one, it may just be worth the time and effort, if you can track down vacation home buyers.

Easy Agent Pro Blog, For Real Estate Agents, real estate related

So, your client wants to look at fixers

The media love to tell us that housing is unaffordable to the average Joe or Mary. Two groups of Americans know this first-hand: Real estate buyers’ agents and Millennials.

A recent Clever Real Estate report takes stock of the state of the housing market for the latter and found that “Millennials are willing to make rash decisions to afford a home in a competitive market, including buying a home sight unseen (90%), purchasing a fixer-upper that needs major repairs (82%), and offering over asking price (80%).”

In fact, if we listen to media reports, buying fixer homes is the new version of buying a starter home.

That strangely makes sense when we consider that buyers, especially Millennials, are desperate to buy a home that’s priced within their budget.

Put on your teaching hat if you’ve noticed that more of your buying clients are entertaining the notion of buying fixer homes. 

Apparently, the biggest cause of regret for these buyers is their lack of education on the buying process and the regret that comes with not understanding the fixing process. 

Buying fixer homes – How will they pay for the renovations?

Gone are the days when it cost buyers a year’s salary to get a loan for buying fixer homes. FHA’s 203(k) program, Fannie Mae’s HomeStyle Renovation Loan and Freddie Mac’s CHOICERenovation loan, for instance, offer one loan to cover the purchase of the home and the renovations required.

Check with each program to learn credit score requirements and how much your client will need to put down on the loan. 

If you’re unfamiliar with these programs, do some research. FHA, for instance, has two programs. FHA’s Limited 203(k) program is for the repair of non-structural items and offers a maximum loan amount of $35,000. The other product is for major rehabs and you can find a basic description of it online at hud.gov.

The “rules” can be daunting as well. For instance, the 203(k) program requires hiring a 203(k) consultant. This person will “…oversee every step of the work for HUD, from plans to the finished product,” according to Robin Saks Frankel at bankrate.com.

Then, there is the hiring of a contractor that, first, wants to take on the job and, second, can be approved by HUD.

Shaheedah Hill, Atlanta agent, offers up 5 tips for agents who are new to these FHA products:

  1. Ensure your client is working with a lender who does 203(k) loans
  2. Ensure this lender has done one recently. Ms. Hill recommends that you find a lender who has “… done at least three in the last year.”
  3. Allow some time to “… find a contractor who is willing to go through the 203(k) process.” Apparently, this is one of the most challenging aspects of using this product. She goes on to recommend that “I would do this even before” the client applies for the loan.
  4. Set the closing date for at least 60 days in the future. “You need at least 60 days, number one, for the contractor to go and do their estimate, for them to get their paperwork, so you want to give yourself enough time to get those things done,” Hill suggests.
  5. Include a 203(k)-loan approval contingency stating your client will get their EMD back if the property isn’t approved by HUD.

Watch Hill’s excellent video on youtube.com. And let your clients know that information about these loans is abundant on the internet.

What you can do to help them get the best deal when buying fixer homes

Ok, so your clients are ready to move on the process and it’s time for you to help them in their quest of buying fixer homes. Naturally, your first stop will be the active listings on the MLS and keywords to help you find these homes. Check both public remarks and agent remarks for at least the following:

  • As-is and as is
  • Fixer
  • Fixer upper
  • Inherited
  • Probate
  • Bring all offers
  • Investor special
  • Investors
  • Investment
  • Handyman
  • Rehab
  • Needs TLC
  • Tenant
  • Trustee
  • Personal representative
  • Issues
  • Needs work
  • Contractor special 

Then, run the same search on expired listings.

Also, don’t forget to ask around at the office for ideas from colleagues and to see if they know of a fixer coming on the market.

You might also look into buying fixer homes during your daily routine. Keep an eye out for homes that look abandoned or just generally neglected. Signs to look for include overgrown landscape, peeling paint, tons of newspapers scattered about.

Finally, don’t forget Redfin – they have a “Fixer-Uppers Only” category in their search criteria.

They want to put in an offer: Help them understand the real cost of that fixer

“The average homeowner typically spends just under $43,000 to remodel multiple rooms in their home,” says cnbc.com’s Megan Leonhart, quoting Home Advisor statistics.

“Areas like the kitchen and bathroom can be the biggest projects,” she concludes.

As you know, this cost can be far higher once the renovation job begins. “Plan for at least one budget-buster by adding an extra 12% to your renovation estimate,” claim the editors at daveramsey.com.

‘When you’re renovating a house, it’s common to uncover problems you didn’t know about during the renovation — like mold, water damage, or structural issues,” cautions the editors at medium.com. 

The bottom line for the first-time buyer is that “… a fixer-upper isn’t always as affordable as it seems,” according to businessinsider.com’s Hillary Hoffower. We both know that this is common knowledge in the real estate industry.

But inexperienced homebuyers don’t know this. In fact, you will probably agree that first-timers operate under a number of misconceptions.

For instance, how many times have you worked with a rooky homebuyer who is under the impression that the home inspection will tell them every last thing that’s wrong with the home?

The wise buyers’ agent will let their clients know that the inspector will only inspect visible areas. Not behind the walls. Not under the floors. Not what is behind something else in the home’s systems.

Not only must your client who is buying fixer homes understand this, but they must also be more than willing to order extra inspections of anything that’s suspicious. Some of the more common inspections for fixers include:

Strongly suggest they get additional inspections, based on any questions or concerns brought about by the whole-home inspection. These might include:

  • Wood destroying pest inspection
  • Roof inspection and certification
  • Electrical system inspection
  • Sewer line and plumbing inspections
  • Well inspection
  • Septic inspection
  • Inspection by an engineer

Then, there’s the task of hiring a contractor to inspect the home and provide a written estimate of how much it will cost your client to fix what’s wrong.

Finally, they need to add on that extra “padding” in the budget that the folks at daveramsey.com recommend.

All this, before they make an offer.

Now, what is your estimate of what the home will be worth after the work is complete? If it’s valued higher than similar homes in the area, and your clients don’t plan on staying in the home for the long-term, you’ll need to counsel them that it’s not a wise investment.

Walk your clients, step-by-step. through the process to help ensure they know what they’re getting into when buying fixer homes. This way, there are no surprises down the line.

Easy Agent Pro Blog, Follow Up, For Real Estate Agents

How To Deal With Homebuyers Unrealistic Expectations

If you find yourself scratching your head after reading through the latest “What Homebuyers Really Want,” the annual survey performed by the National Association of Homebuilders, you’re not alone. All real estate agents have experience with clients who are undecided about what they want. This article will give you some tips on how to homebuyers unrealistic expectations.

Here is what homebuyers want, according to the report:

  • A newly-built single-family detached home with three bedrooms and two bathrooms.
  • The home should offer 2,022 square feet of finished living space.
  • The home should have a dedicated laundry room and outdoor lighting.
  • A front porch and a patio would be nice.
  • Please have a double sink and a walk-in pantry in the kitchen, ENERGY STAR windows and appliances, a ceiling fan, and hardwood flooring.

“Buyers expect to pay … $264,634 for a home,” according to the survey.  

And I expect Idris Alba to leave his stunning wife for me.

In whose universe, right? It’s wonderful to have real estate dreams and goals, but not in one of the heaviest sellers’ markets with record-breaking home prices. 

So, how do you deal with homebuyers unrealistic expectations without dashing their dream of homeownership completely? Delicately.

This is real-life

If only homebuyers understood that those “Reality TV” homebuying shows are far from reality. As an agent, we’re sure you can agree that these shows have been, for years, “… causing unrealistic expectations among potential real-world buyers,” according to Jeff Clabaugh at WTOP.com.

These shows offer a slew of misconceptions about home buying, among them:

  • “Most couples in their 20s and 30s are buying expensive properties.” (lightersideofrealestate.com)
  • They’ll only need to view three homes for sale during their search. 
  • “… it’s a really easy and quick process to remodel or renovate …” after purchasing. (WTOP.com)

Buyers who long to live in a certain neighborhood or have their hearts set on a certain home style or size have huge expectations about you and the process.

The time for them to be set straight is before they look at homes. If that doesn’t work, drastic measures might, such as showing them (during the consultation) a stack of MLS listings of homes they can afford. 

But delusions about how far their FHA loan (with a 580 credit score) will take them aren’t the only misconceptions and expectations they have.

What’s your price range for your next home?

That’s the question a Clever Real Estate survey put before young homebuyers (older Gen Z and young Millennials, aged 18 to 34).

Are you ready for this?

Thirty-one percent of them want to purchase a home “in the $100,000 to $199,999 price range,” according to the study’s authors. Another 27% want to pay between $200,000 and $299,999.

The Washington Post points out that, as of June last year, the national average home price hit $362,800 (although others claim that it’s a smidge more). That’s a puny price when compared to those in certain regions of the country. In Denver, for instance, the average price of a home is more than $700,000.

Now, if you sell homes in Detroit, Cleveland, Oklahoma City, St. Louis, or Birmingham, you may not have a problem delivering for these youngsters. Apparently, homes priced lower than $200,000 can be had in those markets.

Otherwise, you’re going to need to educate your young buyers on the realities of the current housing market.

With a low budget, they may still be able to afford a starter condo or townhome, depending on the market. Yes, they will most likely balk at the thought, but remind them that this is their first home, not their forever, dream home. Baby steps.

Homebuyers unrealistic expectations based on myths and/or ignorance

According to an October 2021 Rocket Homes® survey, members of Gen Z (ages between 18 and 24), “… think their home will cost 38.5% less than the U.S. median home value of $363,300.”

Step up a generation and a recent survey from Lombardo Homes finds that millennials (ages 27 to 45 in 2022) are just as clueless about the current market and how much home they can afford.

But, here’s a head-scratcher: “Two in three millennials (66 percent) say they are waiting for lower mortgage rates to start the home buying process,” the study’s authors claim. They add what you’re no doubt thinking after reading this statistic:

“This is odd given the fact that rates are currently near historic lows, but it may speak to a lack of education and awareness among this cohort of home buyers.”

Millennials differ from the younger cohort in another very significant way: underestimating how much home they can afford to buy right now. They are under the assumption that buying a home requires a 10% down payment and that their interest rate, right now, will be 4%.

Furthermore:

  • Nearly 60% of millennial homebuyers are unaware that the seller pays the buyers’ agent fees.
  • Fifty-two percent are unaware of local home values.
  • Forty-nine percent couldn’t tell the study’s authors “… what a good interest rate is.”

That there are significant numbers of homebuyers in this cohort who aren’t in the real estate market, even though many can buy a home but don’t know it, is mind-boggling.

There’s a perfect opportunity here for agents with Millennials in their pipeline. Are they, too, misinformed about current mortgage rates, who pays their real estate fee, home values, and down payments? Reach out to them to avoid homebuyers unrealistic expectations.

Expectations about conditions of homes in their price range

Even homebuyers with a somewhat realistic outlook on exactly what type of a house they can afford, may be unrealistic in their expectations of the home’s condition. 

In fact, 87 percent of first-time homebuyers want a home in turnkey condition, according to an older study conducted by a national real estate chain. 

Real estate agents offer up anecdotal accounts of buyers who turn down homes that fit all of their needs and wants because of dirty carpets or other easy cosmetic fixes.

Many would never walk onto the showroom floor of the local Mercedes dealership and offer to pay half price for the latest S-Class when the only Mercedes they can afford is of the really old, high-mileage, pre-owned variety in need of cosmetic work.

Yet they think nothing of insisting on a raft of amenities in a home that is “move-in ready.” Sure, we’re all guilty of longing for instant gratification, but nobody is going to sell their turnkey, $450,000 market-value home for $250,000.

“It’s sort of the scourge of HGTV – [buyers] think that move-in ready means that it’s going to be complete to [their] taste, and fixer-upper means just change around some carpet, maybe some paint. And that’s not the case at all,” District of Columbia Redfin agent Dan Galloway tells USNews.com.

These clients require that unpleasant conversation wherein you explain that they are not going to get “flawless” at starter-home prices.

Surprisingly, you’ll avoid this whole mess if you’re working with Millennials. A recent Clever Real Estate study finds that nearly 70 percent of our youngest buyers “would put an offer on a home in need of major repairs.”

The heat of the moment often breeds regret

Real estate buyers who aren’t fully aware of what can happen in this fiery hot market may have unrealistic expectations.

For instance, “… quick purchases …,” according to Sudiksha Kochi at USAToday.com, “… can lead to buyer’s remorse.” The heat of the moment causes many young homebuyers to feel desperate, to go over budget or waive home inspections.

A Bankrate study published last summer claims that nearly 65% of Millennial homebuyers experienced regret after the purchase. Their biggest regret was the high maintenance costs of their new home.

The second most common regret was that they didn’t have the savings to pay for the repairs. 

Be the agent who counsels their younger homebuyers, warning them to not max out their loan preapproval amount and to build up an emergency savings account.

Are you helping feed the delusions?

Despite the rhetoric from the housing industry and individual agents, now is NOT always “a great time to buy a home!” 

We’re not saying you should enthusiastically advertise a lousy buyers’ market, but there is a middle ground in there somewhere.

You, as your buyers’ trusted advisor, are expected to give your clients an accurate picture of what they’re up against in the current market. Then, let them in on your plan on how you and they will handle whatever comes their way.

Gently shoot down those “we need a circular driveway in front of our mega-mansion” wishes of the first-time buyer who can barely qualify for a mortgage.

Unless, of course, you love driving aimlessly around town, weekend after weekend, because their delusions don’t (and won’t) match reality.

The ramifications of not setting them straight from the beginning include:

  • They assume they can’t buy right now.
  • They assume they can buy more than their budget allows.
  • They will insist on submitting lowball offers.
  • They’ll waste your time, the sellers’ time, and their own time.
  • They will become frustrated and guess who will get the blame for that?

It’s up to you to construct the conversations with your first-time buyers to help manage their expectations and avoid disappointment. Always be courteous on dealing homebuyers unrealistic expectations as they are still clients.

Easy Agent Pro Blog, Social Media Marketing

Time Saving Social Media Tips For Real Estate Agents

Spending time on social media without a social media strategy is a lot like going to the grocery store on an empty stomach. Without a list (a plan) you’ll most likely wander aimlessly down the aisles grabbing whatever looks good, calories and nutrition be darned.

It’s the same with your social media marketing plan. Without a strategy you’re most likely throwing ideas against the wall, hoping something will stick. 

This willy-nilly process leads to time sucks such as reading and responding to every post, following links posted by friends and generally following every shiny object on the screen in front of you. 

Before you know it, there’s a big chunk of time missing from the workday. Let’s look at some ways the pros recommend disciplining yourself while using social media.

What’s your social media marketing plan?

If you waste a ton of time on social media, the first step to cure yourself is to get clear on why you’re even on your chosen platforms. Some of these reasons might include: 

  • To keep in touch with those in your sphere — Interacting with your sphere of influence is a great way to stay top-of- mind, so that when the topic of buying or selling a house comes up, you are the person that comes to mind first. 

Social media is the ideal place to do so if you use caution in the amount of time spent interacting.

  • Reaching out to new clients and leads – As part of a well-rounded content strategy, social media can help you rank in Google search results.

Use those twice-weekly Easy Agent Pro blog posts as social media content. Add in hyperlocal content as well. Anything that is sharable will not only entertain those you’re trying to reach out to, but their network as well.

  • Learning – Many real estate agents use social media as a learning platform. It’s a place where you can seek out other agents and industry experts and get answers to your business questions. 

Some of the social media sites where agents might go to learn from others include agent-specific groups on Facebook and LinkedIn. Again, once you take control of social media and force it to stop controlling you, the time spent on it will be far more productive. 

Taking control of your social media marketing plan

Now that you know why you need a social media marketing plan it will be easier to figure out ways to make it less of a time suck. Time management, while important in all aspects of your real estate practice, is critical when working with social media.

  • Determine a Strategy – Your daily social media activities should start where they will have the most impact, according to Rich Brooks, President of flyte new media. That means your first social media stop of the day should be wherever most of your clients hang out, such as Facebook. Read and respond to those in your CRM first and save the links to YouTube videos or news stories that your friends share when you get off work. 
  • Schedule your visits – Time blocking will help you keep on track and able to avoid the temptation to follow every shiny object you see while using social media. 

Schedule a block of time to tweet, to create and respond to Facebook posts and check in on LinkedIn. 

Set an alarm and, once that block of time is up, close the sites and move on to the next task on your daily schedule. 

Some agents find it more advantageous to schedule two blocks of time: one in the morning and one at the end of the work day.

  • Avoid industry groups and communities during your time blocks – Productivity experts recommend staying away from these social media time sucks unless you are using social media purely to get business advice, or if you schedule these visits for times outside of your normal work hours. 

It is far too easy to get lured into debates and conversations and, before you know it, you’ve wasted precious time that should have been put toward making money. Save the groups and communities for your down time, such as in the evening after the kids go to bed or an open-house-less weekend.

  • Avoid Distractions – Rethink using Facebook Notifications or any other social media platform’s “handy” feature that emails or texts you every time someone mentions you or posts to your Facebook or Twitter. 

It’s far too easy to let curiosity get the best of you and find yourself on these sites outside of the time you’ve scheduled for them.

  • Use tools – While many agents and social media experts debate the pros and cons of social media scheduling tools, any discussion of how to avoid wasting time wouldn’t be complete without mentioning them. 

Tools to automate the publishing of your content, such as those offered by HootSuite, TweetDeck (Twitter’s scheduler) and the Facebook post scheduler tool, will definitely save time but there are drawbacks. 

The most significant argument against using scheduling tools is that it makes your participation more akin to an announcement than a conversation. 

If you are asked a question or if one of your comments takes off, if you’ve followed the advice to avoid being contacted when people post, you won’t be there to respond. 

Too busy for a DIY social media marketing plan? Consider hiring a social media manager 

For the busy agent who depends on leads generated online, a good social media manager is worth her/his weight in gold. You don’t necessarily have to spend a fortune, either. 

If you hire a management company, you can expect to pay between “… $300 and $5,000+ per month …,” according to Dan Barraclough at expertmarket.com.

If your budget just let out a scream, consider hiring a freelancer to handle your social media tasks. Barraclough says that you can expect to pay according to the freelancer’s experience:

  • Basic (0-3 years’ experience): $25 – $35 per hour
  • Intermediate (3-5 years’ experience): $50 – $100 per hour
  • Advanced (5-10+ years’ experience): $120+ per hour

If you hire a freelance social media manager at Upwork.com, expect to pay between $14 and $35 an hour. Many freelancers are open to negotiation so use those skills you’ve developed as an agent to haggle for a fee you can afford.

If all else fails, hire a virtual assistant

A virtual assistant is far less expensive than a social media manager. Plus, if you hire someone well-rounded, they can take on other tasks as well and, typically, on an as-needed basis.

When you consider that your time is money and that you waste a lot of time (thus, money) on social media, this assistant will pay for him/herself in no time.

While face-to-face interaction with past and prospective clients is always more memorable, communication via social media can be a valuable resource in your efforts to remain top-of-mind. The trick is to not allow it to dominate your day, but to take control by coming up with a solid social media marketing plan.

Easy Agent Pro Blog

Should I partner with another real estate agent?

If you’re running your real estate business intelligently you’re bound to get to a point where you can no longer handle everything by yourself. At this point, most agents decide to delegate the administrative tasks and consider hiring an assistant to take them on. 

Good move, too, because with an assistant to take over these tasks, the real estate agent becomes more productive, generates additional business and thus, makes more money. 

That “success builds on success” is never more apparent than in the trajectory of a real estate agent’s business when she is set free from the mundane. 

Which is why, after a while, busy agents feel pressured to balance this increase in real estate business with the very real needs of a personal life. 

An overwhelming amount of business is certainly nothing to complain about, but it means that vacations go by the wayside, weekends with the family no longer exist and date night with the significant other is a thing of the past. 

Eventually, the time will come to evaluate your priorities and consider bringing on more help.

 

Deciding on the ultimate alliance

Your choices are varied when you need help. Hiring another real estate or personal assistant is an option. Perhaps a buyer’s agent can relieve some of the pressure. 

The only consideration, however, when it comes to trying to balance professional and personal needs is that ultimate alliance – a full-time partner.

“What a partner brings is quality of life improvement and stability of income, rather than an increase in income,” says real estate trainer and coach Kelle Sparta. 

“You’ll have more transactions, but you end up splitting everything 50-50,” she continues, “so your income doesn’t necessarily change, it just doesn’t fluctuate as much.”

Jennifer Allan-Hagedorn, real estate trainer and author of “Sell with Soul,” says that “vacation coverage is a prime benefit to having a partner. 

“It’s blissful actually, especially if you’ve been selling real estate a long time,” she explains. “Your first vacation when you truly don’t have to worry about business? You’ll wonder why you didn’t get a partner before,” she concludes.

There is, however, a fine line between finding the partnership that offers relief from some of the pressures of a busy practice and one that does nothing but add stress.

 

What to look for in a real estate partnership

Before setting out to find a real estate partner, it’s important to get clear on your expectations, according to Allan-Hagedorn. 

“I promise you, bringing another warm body into your business world will not simplify your life – it might improve it — but it definitely won’t simplify it,” she cautions in a blog post at ActiveRain.com.

She goes on to suggest that you look for someone who actually enjoys doing the tasks that you find distasteful.

“The best partnerships are those where the members of the partnership specialize in different areas,” she explains. 

“If each partner has his or her individual responsibilities, directly linked to his or her skills and interests, the partnership has a great chance to thrive.”

Rule number one, according to Sparta, is to “only partner with someone you trust. This person will be in charge of your income. If you think they are irresponsible or a slacker in any way, don’t partner with them.”

When St. Augustine, Florida agent Peggy Gatchet decided to make the move from management and part time sales into full time sales, she decided to take on a business partner. After a lot of deliberation, she determined that what was most important to her was finding someone who worked as hard as she did.

“The moral compass has to be strong and the work ethic has to be strong,” she explains. 

“You have to feel like that person is going to meet you toe-to-toe, hour-to-hour, minute-to-minute. If they don’t, there’s going to be some resentment that will build,” Gatchet cautions.

While most of the agents we spoke with agree that the person you partner up with should have a different skill set than you, they also agree that your partner should have similar personal and work habits. 

Having to share space with someone who is very disorganized, for instance, when clutter and chaos drive you nuts, is probably the kiss of death for the partnership. In fact, Sparta suggests that you check out the potential partner’s desk before even approaching him or her with an offer.

“Take a look at their desk because one day you will have to find something on it,” she jokes.  

In a nutshell, then, here are some qualities to look for in a real estate partnership:

  • Someone that enjoys doing the tasks you find distasteful.
  • An agent who is trustworthy and honest.
  • Someone with your same work ethic and moral compass.
  • A person with a production level that matches yours.

 

All good things

There’s an old radio D.J. dictum – it’s ok to ad lib when you open the mic, but “always know how you’re going to get out of it.” 

There’s nothing worse than to be talking over the intro of a song and suddenly figure out you don’t know how to end your rap.

Taking on a real estate partnership is similar. Like all things, the partnership may someday end. While it’s difficult to consider this, especially in the beginning, it’s something both of you need to face and prepare for. Get crystal clear on how you’re going to end.

“You don’t want to think about it; you don’t want to talk about it, but that doesn’t change the fact that the partnership will end,” Allan-Hagedorn says. 

Not preparing an exit strategy in advance leaves your real estate business open to some major disruption. As an example, she offers a frightening one-sentence summation of something that occurred when she and her former real estate partner parted ways. 

“We both felt that we were entitled to the partnership’s client database.”  Can you imagine?

 

Don’t overlook the legalities of a real estate partnership 

Sparta recommends drawing up a formal partnership agreement at the start. “A partnership agreement is like a pre-nuptial agreement,” she explains. A good partnership agreement should set expectations about fundamental issues such as:

  • Who will do what and how much of it they will do. 
  • How compensation will be shared – in both regular instances and in unusual instances like referral fees and lawsuit settlements.
  • What happens to the business if someone is incapacitated, retires or dies? 
  • How the real estate partnership will be dissolved in the event that things don’t work out.  

“In the latter instance,” Sparta warns “make sure you address not only who will get the current clients and listings, but also who gets the ownership of the past client database and any training, tools, equipment, and materials that were jointly purchased.”

Even if your real estate business partner is also your spouse or best friend, consult an attorney before moving forward. The advice and contract preparation he or she provides is critical.

Where are they now?

Sparta is now a real estate trainer and coach but looks back fondly on her real estate partnership days. 

“Having been a solo practitioner and having been part of a team, I really must confess to preferring the latter.  I loved not having to do things alone. I loved having someone I could call and say “I’m not going to make it for the appraiser, can you meet him?” 

Allan-Hagedorn, on the other hand, prefers flying solo. “I am not a good partner. I am happy to be the boss and to take all the responsibility; I am also happy to be told what to do and have no responsibility. However, I am not happy sharing the power and the responsibility. Actually, I suck at it,” she confesses.

Gatchet has no intention of ever trading her business partner for the solo practitioner role. Partners for seven years now, she chose him from among her rookie agents back when she was a broker. Sort of a build-the-perfect-partner model, it’s worked out perfectly for both of them.

Not every agent will fit well in a real estate partnership. If your entire life has become about your business, however, it just might be something to consider.

 

Easy Agent Pro Blog

New agents: 5 tips to help homebuyers with credit problems

One of the biggest myths that potential homebuyers suffer under is that they need a 20% down payment to buy a home. It’s crazy in light of the fact that agents do an amazing job of trying to dispel the myth.

The second biggest real estate myth is that consumers with poor credit can’t buy a home. In fact, “bad credit home loans,” “bad credit mortgages” and “how to buy a home with bad credit” are up-trending search terms on Google, especially in California, Texas and Florida.

If you have clients who are feeling shut out of the housing market because of a lousy credit score, and you need to close some deals, we have a plan for you: Help them fix their credit scores.

We know what you’re thinking, that credit repair isn’t an agent’s duty. And, it’s not. But lenders apparently don’t feel it’s part of their job description either.

One of our agent friends started his real estate business by generating tenant leads. Many renters want desperately to be homeowners but feel that their bad credit is stopping them. He began counseling them on how to fix their credit scores and eventually worked with most of them on the purchase of their first home.

What’s a “bad” credit score nowadays?

This is something agents need to know and to keep current on. When a lead says that they can’t buy a home because of a lousy credit score, most agents thank them for their time and move on to the next lead.

“What’s your score?” is a far better response. Now, knowing the current average credit score of Americans and the acceptable lowest-score for lenders, you can walk this potential homeowner through the process of cleaning up his or her credit act.

By the way, the average U.S. FICO® Score is 716, according to Ethan Dornhelm at FICO.com.

Although credit scores have risen on a year-to-year basis, even through the pandemic, don’t be surprised if the score falls in 2022 as inflation persists, the mortgage forbearance periods end and folks generally struggle to keep up financially.

To refresh your memory, FICO scores range from 300 to 850. Here’s their score chart:

  • 800 and above: excellent
  • 740 to 799: very good
  • 670 to 739: good
  • 580 to 669: fair
  • 579 and below: poor

Although FHA loans are granted to some borrowers with a score as low as 500, they will need to come up with a 10% down payment. With a credit score of 580 there is a 3.5% down payment required.

Since the FHA doesn’t lend money, but guarantees repayment, it’s the lender who has the final say and many of them “… require a score of 620 to 640 to qualify,” according to Tim Lucas at mymortgageinsider.com.

  1. Urge your client to get clear on finances

The only way to know for certain where someone stands on the credit front is to order credit reports from Equifax, Trans-Union and Experian.

The free reports are available from the only agency authorized by the federal government, AnnualCreditReport.com. Reports can be ordered online or by phone, at 877-322-8228.

Then, counsel your real estate client to pore over each report, line by line, looking for errors. Is his or her name and other personal information correct? 

There’s a long list of common errors in credit reports so direct your client to read about them online at The US Consumer Financial Protection Bureau’s website, consumerfinance.gov.

“About 25% of Americans have an error on their credit reports,” claims Elizabeth Gravier at cnbc.com. If errors are found, they should be reported and/or disputed to the credit reporting agency. Each credit report contains information on how to do this.

  1. Work on past due accounts

Past-due accounts on credit reports account for the largest percentage of a credit score. Thirty five percent of the score is based on payment history.

“This shows whether you make payments on time, how often you miss payments, how many days past the due date you pay your bills, and how recently payments have been missed,” according to the credit management pros at wellsfargo.com.

Payments that are late for 30-days or longer harm scores the most. Let your homebuying clients know this and urge them to raise the proportion of on-time payments by paying on time every month.

Start with any late debt payments that can be brought current quickly.

If your potential client only has one or two late payments on the credit reports, suggest that he or she write a “goodwill letter,” also known as a “goodwill deletion” request.

“While it’s not guaranteed to work, writing a goodwill letter to your creditors could result in negative marks being removed from your credit reports,” according to Emily Starbuck Gerson at creditkarma.com.

Notice that this letter is written to the collection agency or creditor, not the credit reporting agencies. 

The chances of this technique working (resulting in a removal of the late pay information) are better if the reason for the late pays was unavoidable, such as “… a personal emergency or a technical error,” Gerson says.

Even that may not sway the creditor. “It never hurts to ask, but in most instances, a goodwill letter won’t result in removal of the negative information,” according to Rod Griffin at Experian.

It’s worth a try though. Get more information on how to write the letter at creditkarma.com.

  1. Get rid of high balances

Thirty percent of a credit score is based on the total amount outstanding on credit cards and loans. Also taken into account:

  • The number of accounts
  • The amount owed compared to how much available credit the borrower has 
  • The number of maxed-out credit cards.

“High balances and maxed-out credit cards will lower your credit score, but smaller balances can raise it – if you pay on time,” claim the folks at wellsfargo.com.

One of the best ways to quickly raise a credit score is to tackle credit card balances and then use the cards less often, paying the bills as they come in.

  1. Work on the rest of the credit score

Credit history makes up 15% of your client’s credit score. This is why it’s important to keep accounts open even if they’re paid off.

Those with no history or a short one will need to establish themselves. This is typically accomplished by opening credit accounts and paying the bills as they come due.

Secured credit cards are one of the easiest ways to go, according to the experts at Experian.com.

“It will take about six months of credit activity to establish enough history for a FICO credit score,” according to Sienna Wrenn at thebalance.com. She goes on to say that to build up to an excellent score may take years.

Ten percent of the rest of a credit score is based on credit mix. Having different types of accounts, such as credit cards, retail cards and installment loans, “… may help improve your score,” say the loan pros at Wells Fargo.

The final 10% is based on recent credit activity. A lot of activity, such as numerous applications for credit, may bring the score down. 

  1. If all else fails, suggest professional credit counseling

Credit counseling has become quite the scammer-filled industry. Finding a professional isn’t easy, but it’s imperative.

Suggesting a specific counseling service isn’t wise as it opens you to liability. If a client can benefit from credit counselling, urge him or her to visit this page from the Federal Trade Commission, online.

Easy Agent Pro Blog, Follow Up, Lead Capture

The CRM primer for real estate agents

Real estate is a relationship business, or so we’re told. Yet, why do so many agents let the relationship grow cold when the transaction closes?

Clients bought or sold a home, they didn’t die.

They are still roaming the earth, making friends, having kids, having grandkids. Their networks continue to grow, while yours (if you’re one of the non-nurturers in the industry) stagnates.

Think about this:

“The typical REALTOR® earned 15 percent of their business from repeat clients and customers and 19 percent through referrals from past clients and customers. 

(2021 NAR Member Profile)

Since repeat clients and referrals from those clients seem to be the primary source of business for “the typical REALTOR®, it’s a little nuts to lose contact with those clients.

And, if you think that your name will pop to the front of their minds and the tip of their tongues when someone asks about good real estate agents, check this out:

The average American knows about 600 people, according to research from Columbia University.

How many agents are among those 600 friends, relatives and acquaintances? Why gamble?

Since we’re heading into a brand-new year, developing the nurturing habit should be at the top of your list of “to-do” activities.

And nurturing, consistently, starts with being organized. If you don’t have a CRM, put one into your budget and then start filling it with valuable, career-saving information.

For new agents: real estate CRM is a shortcut for “customer relationship management.” It’s basically software, akin to the old “database,” but on steroids.

A “CRM shows a company what a customer looks like …” according to Sarah Amsler, managing editor at TechTarget.

How a real estate CRM helps your business

A real estate CRM allows you to segment the folks that populate it

When leads, clients and your SOI are segmented intelligently, you’ll waste less time on those not yet ready to transact, freeing up more time for folks who are.

There are any number of characteristics by which you can segment the people in your real estate CRM. Here are just a few:

  • Hot, warm and cold leads
  • A, B, C leads
  • By buyer, seller, past client and SOI

Additional segmentation possibilities will streamline your real estate CRM even more:

  • Type of residence
  • Tenure – This helps you narrow down your marketing focus to homeowners if you’re looking for listings. Those who have lived in their homes seven years or longer, the average home seller tenure in Q1 2021, according to attomdata.com.
  • Birthdate – For the entire family. Birthday wishes offer a chance to reach out several times a year.
  • How this name got into your real estate CRM – Cold call, door knocking, newsletter recipient, website lead, Referral, Facebook, Twitter, etc.
  • Interests and hobbies – Gary David Hall, vice president of customer success at realvolve.com offers a brilliant example. The agent sees an ad for discounted greens fees at a local golf course. He searches his CRM for golfers and then zips off an email or text letting them know.

A real estate CRM helps you to easily customize marketing

Building closer relationships is a worthy goal for all real estate agents. Allowing the folks in your real estate CRM to get to know, like and trust you is even easier when the marketing messages they receive are customized.

A real estate CRM helps streamline the customization process.

Your real estate CRM is your very own in-house historian

The history of every transaction, every lead, every person in your CRM is there at the push of a button. 

This helps you personalize communications, offer relevant value (for example, the discounted greens fees, mentioned above), and keep track of where everyone is located in the pipeline.

How to choose the right real estate CRM for your business

A real estate CRM is integral to client retention and provides the data necessary to know how to reach these people. As time goes on, additional useful information is added, such as:

  • How they found you (were they referred, are they relatives, friends, family or past clients?)
  • Personal details that you’ve gathered, such as hobbies, career, names of kids, etc.
  • How and when you’ve engaged with them (for instance dates of “touches” and the vehicle, such as direct mail, phone call, etc.)

“While actual packages may differ in terms of features offered, most CRM systems will help you track real estate leads, monitor campaigns for lead generation, manage and access contacts and upload legal contracts and documents” according to Tracey Velt at realtrends.com.

The first thing to figure out before taking a look at all the different CRMs on the market are which features you’ll need. This decision may be based on whether you need more new leads or you need to nurture relationships with those you have.

Anything that will help you narrow down the choice of a CRM will keep you from becoming confused by all the choices available when you start shopping.

The most important feature, in our opinion, is that the CRM can be integrated into your MLS. Other features offered by real estate-specific CRMs vary by company and include:

  • Transaction management capabilities
  • Templates
  • Social media marketing tools
  • Marketing automation
  • Automated relationship workflows
  • Lead capture
  • Follow-up tools
  • Auto update
  • Email integration

Those are just a few of the more popular real estate CRM features. If you’re new to the business, query other agents about what they felt their first CRM was missing and ensure you don’t make the same mistake.

Check out various real estate CRMs and read reviews at G2.com.

Easy Agent Pro Blog, Follow Up

Is your real estate CRM data costing you money?

Your real estate CRM is the lifeline of your real estate business. When it’s properly maintained, it’s a gold mine. Unfortunately, for most agents, going through a database to update contacts doesn’t feel as productive as pounding the pavement for listings. 

But, consider this: Between 10 percent and 25 percent of the contacts in your real estate CRM contain critical errors, according to SiriusDecisions, a Connecticut marketing company.

Bad data—you know, those leads with missing, inaccurate or incomplete information—could be costing your real estate business money. Not only that, but if you hope to remain in the industry for any length of time, lead management is imperative.

Yesterday’s CRM maintenance

Go online and search for advice on how to clean and maintain your real estate CRM and you’ll find tips telling you to get rid of duplicate entries, to toss those that don’t have contact information or that contain erroneous contact information (how many people named Brad Pitt really live at 123 Main Street anyway?) and to delete any leads you consider lost causes.

While that advice may have been pertinent a decade ago, it’s crazy today. 

Are you willing to delete more than half the leads in your real estate CRM? Thankfully, you don’t have to—not when big data can help you fill in the blanks and keep you updated on what’s happening in these people’s lives.

It’s all about information

Stream a movie, binge YouTube videos or shop online at Amazon and you’re contributing to the more than 2.5 quintillion bytes of consumer data that’s collected every day.

That number, by the way, was determined by IBM in 2016 so it’s safe to say that it is far larger now.

All this information forms the backbone of what is referred to as “big data” and aids in the improvement of artificial intelligence.

“Big data and artificial intelligence have a synergistic relationship. AI requires a massive scale of data to learn and improve decision-making processes and big data analytics leverages AI for better data analysis,” according to the pros at qlik.com.

“Big data,” they conclude, “is the fuel on which artificial intelligence runs.”

Here’s an example.

Jake and Lisa recently became parents to a third child. The home is feeling super crowded and they decide it’s time for a bigger place.

Both Jake and Lisa spend time online learning about the home selling experience and begin to understand that their home requires some work before putting it on the market.

They both enjoy DIY and decide that many of the improvement projects they need are something they can handle on their own.

They search online for the lumber, paint and tools to get the projects underway. They’re also searching Zillow and Redfin for homes for sale, just to get a feel for the market.

Lisa then notices that her online ad offerings have changed and she now sees ads from Home Depot and Lowe’s, retailers that sell home decor and real estate investors (the “we buy ugly homes” type).

Now, imagine this data in the hands of a real estate agent. Actually, you don’t need to imagine it because Coldwell Banker is currently using it, with its CBx app.

Released in 2018, CBx supplies agents with information on homebuyers, allowing them to be “… able to see who is buying, what they’d be interested in, and what the proper approach to them is,” according to Athena Snow, Coldwell Banker’s senior manager of public relations.

Redfin uses AI to present suggestions during a homebuyer’s search of listings.

From commercial to property rentals and residential sales, brokerages across the country are utilizing big data.

What can listing agents do with this data?

“Algorithms can now go through millions of documents in seconds, looking through property values, debt levels, home renovations, and even some of a homeowner’s personal information,” claims Diana Olick at cnbc.com.

Joseph Sirosh, chief technology officer at Compass explains to Olick that “… AI helps you find the homes that are most likely to sell in the next 12 months, and it does so by triangulating all the data associated with the home, like when the home last sold, how long the owner has occupied the home, what rate the home sells at in that particular area.”

This information, especially when combined with behavioral data (such as that from Jake and Lisa) is a powerful combination.

Because of this capability, Sirosh says that “Compass agents have a 94% higher chance of winning a potential listing they target with AI than not.”

 

Determining the proper approach to a potential client, knowing just when to reach out and offering solutions to their current pain points is one of the pluses of leveraging big data in your real estate CRM. Another plus? It will definitely set you apart from other agents.

What happens when your real estate CRM is full of valuable, accurate information?

Consider how financially unwise it is to blanket every lead in your real estate CRM with direct mail pieces when, with the right information, you can target only those of consumers who are planning on buying or selling a home in the near future.

Not only can the use of big data help you get to these leads sooner but, by cleaning up the information in your real estate CRM, reaching out to past clients becomes brilliant. 

Imagine creating focused content that specifically addresses what each of your past clients is currently experiencing.

  • A blog post about current baby nursery trends for the new parents
  • A newsletter article about downsizing for retirement
  • The probate home sale process for leads who’ve inherited a home
  • DIY home improvement projects for home sellers
  • Improvements that add to the value of the home

Think of the time, money and effort you’ll save by targeting only the most-likely to transact soon in your real estate CRM. 

Get more listings

Yes, it’s important to keep in touch with past clients. Nurturing leads through the pipeline is also important. Generating leads, however, should always remain part of the mix.

This is where big data really shines. 

How do we know who these possible listing clients are? Through predictive analytics, which takes consumer shopping data, and combines it with homeownership tenure records, homeowner equity and other chunks of data. 

Anything that can be considered a seller signal – from purchasing home improvement items to area turnover rates – is analyzed to allow you to target only the most-likely-to-sell-soon folks in your real estate CRM.

Big data, AI and predictive analytics. They are yet other ways that technology is changing the face of real estate. 

For a platform that won’t let you down, see how LeadSites helps agents grow their businesses every day.

Easy Agent Pro Blog

5 real estate tasks to outsource in 2022

In the beginning, many small business owners take on most of the routine tasks of running the new business. They do everything from janitorial to accounting and marketing. 

The smart ones eventually start outsourcing real estate tasks. Those who don’t, become “… prisoners of their own success,” according to David Tal, co-founder and CEO of Agentology.

Sure, there are certain tasks that require your hands-on attention. Others, however, are easily delegated to an outside source, such as a virtual assistant.

Let’s take a look at what outsourcing real estate tasks can do for your real estate business, some of the tasks you may want to consider handing over to someone else and where to find these people.

How outsourcing real estate tasks benefits your real estate business

The biggest benefit of outsourcing certain tasks within your real estate business is that you’ll also be freeing up the time you previously spent on these tasks. 

This is time far better spent generating new leads and nurturing relationships with your current leads and SOI.

Outsourcing real estate tasks, if done right, can also be cost effective. With online hiring sites, such as Fiverr.com and Upwork.com, you may find specialists who charge substantially less than workers in your market.

“For example, many of my clients recruited me because my hourly rate is lower than comparable marketing consultants in their own cities,” Matt Keener, author and president of Keener Marketing Solutions, LLC, says at Entrepreneur.com.

“The cost of living in Indiana is lower than most major metropolitan areas so they’re able to get an MBA on a more attractive budget without sacrificing quality,” he concluded.

This benefit correlates to the quality of talent you’ll find when you hire a freelancer as opposed to an employee. Depending on the tasks you require, you are likely to find better talent, for less money.

Hire smart and you’ll also not have to train the freelancer. Sure, there may be a few tasks that will require a bit of training, but nowhere near as much time than you might spend recruiting and training employees. Naturally, this depends on your market’s talent pool, but overall, the pool of freelance talent is deeper.

Finally, once you’ve rid yourself of the routine tasks of running a business and you are instead spending that time nurturing and lead generating, your income will increase.

Outsourcing real estate tasks in 2022

Many agents will choose their most despised and/or time-consuming task and decide that’s the one to outsource. Others choose a task that they know a pro could do better.

If you’re stuck for ideas, check out our list.

1. Administrative tasks

General administrative tasks are the most commonly outsourced by real estate agents.  Many hire an in-office assistant while others use a freelancer. Some of the most important tasks this person can take off your plate includes:

  • CRM maintenance and management
  • Answering/returning calls and emails
  • Ordering supplies
  • Scheduling appointments
  • Coordinating marketing campaign

2. PPC advertising campaign manager

If I were still in the real estate industry, this is one I would give strong consideration. The intricacies of PPC go right over my head, and I know I’m not alone.

This doesn’t have to be an expensive endeavor; you don’t necessarily need a marketing agency. If you have the money though, by all means hire the best you can afford when looking into outsourcing real estate tasks.

Upwork.com, on the other hand, features many freelancers offering a variety of PPC marketing packages at attractive price points.

The key to hiring remote freelancers is coming up with a list of qualifying/screening questions. Keep the following tips in mind:

  • If a firm grasp of English is required, ask questions that will require narrative answers to help you verify their language skills.
  • Ask for references of past clients and then follow up if you have any doubts as to the freelancer’s experience and qualifications.

So, why outsource this task?

“PPC can be a significant revenue driver for businesses. But if you don’t know what you’re doing, it can also be a waste of money,” cautions business consultant Larry Alton at TheAmericanGenius.com.

For tips on how to successfully hire a freelancer on Upwork.com, check out Chad Gravallese’s video at YouTube.com.

3. SEO

If you’re aiming for organic traffic for your real estate website and blog, search engine optimization (SEO) is a critical and time-consuming task. Consider outsourcing your SEO in 2022 as a wise business investment.

Like Upwork.com, Fiverr.com is home to lots of SEO folks with a range of fees. It’s tempting to go for the freelance with the lowest fees. Keep in mind, however, that you may be disappointed or delighted with the lower priced freelancers. It’s a gamble.

Learn what to look for in a Fiverr freelancer at depreneurdigest.com.

There are other freelancers (aside from those on the two mega-freelancer sites) who excel at SEO and you can read about some of them at JoshFechter.com. Consider one when you’re looking into outsourcing real estate tasks.

4. Offline marketing 

If you’ve taken the advice of lead gen experts then your real estate business employs a multi-pronged marketing plan. These plans include offline marketing, such as client appreciation events, networking and direct mail:

  • Newsletters
  • Just-listed/just-sold postcards 
  • Fliers
  • Market updates
  • Open house invitations for the neighbors
  • Marketing pieces geared to specific audiences, such as absentee owners, renters, veterans and more.

There are many direct mail-related tasks worthy of outsourcing. Graphic design is common as is direct mail campaign execution and management.

5. Transaction coordination

Not all brokerages offer agents the services of a transaction coordinator (TC). If yours doesn’t, and you do a lot of business, hiring one is a must.

“Agents, Teams and Brokerages save 16 hours per transaction by delegating to our Transaction Coordinators,” according to transactly.com’s website. They also claim that a TC performs “… 90% of closing tasks.”

One way to find a TC is to hire an online company that specializes in real estate transaction coordination. Here are a few for you to consider:

  • Transactly.com—Offers a free trial and then you’ll only pay $95 per year.
  • Virtualrealestateservices.com—There is no mention of prices on the website but they do prominently mention that you won’t pay “… a penny until your sale closes!”

You’ll also find virtual real estate assistants who can take on the role of TC:

“Although there is some variation in the numbers, most experts agree that once you hit 40-50 transactions per year, your production will be capped at that level unless you hire an assistant or someone else to help you manage your business,” according to Bernice Ross at Inman.com.

Managing your business should not be your full-time job, which is why outsourcing real estate tasks is so important. You are, after all, the owner of the business and the only person who brings in the commission checks.

Best of all, outsourcing some of the daily tasks involved in running a real estate business frees up your time. Time to spend with family, time to nurture your SOI, time to brainstorm different ways to generate leads.

Time. Give yourself that gift in 2022.

Easy Agent Pro Blog, Lead Generation

3 tried-and-true real estate lead gen techniques for 2022/2023

We’ve been talking a lot lately about the importance of consistently nurturing those wonderful folks in your SOI.

It’s quite the balancing act, however, between performing that task and generating new leads.

Very often, one of them will fall through the cracks and, when agents realize this, there’s a mad dash to rectify the situation.

Don’t get caught by surprise. Build a lead generation task list as an addendum to your 2022/2023 business plan.

We just happen to have some tried-and-true ideas you may want to add to the list.

Work those open houses

It’s highly unlikely that no event in your career will expose you, at one time, to as many potential clients as the open house.

Yet so many listing agents dread them, pawn them off on other agents or talk their clients out of wanting to hold their homes open.

If you’re back to holding open houses in your market, it’s time to double-down on the effort you put into them.

Ah, we know what you’re thinking: “Open houses are a waste of time.”

RE/MAX agent and co-founder of CompleteAgent, Inc., Adam Year, used to feel like that too, “… until the big a-ha moment, I mainly did open houses to please my sellers but I pretty much wrote them off as a 2-hour time slot for me to catch up on some admin work,” he writes at completeagent.io.

He now recommends the humble open house as being “… the biggest bang for your buck when it comes to generating new leads and building your pipeline.”

Among Yera’s “3 types of open house visitors” are buyers not represented by an agent, buyers with a lousy agent (as Yera says “Who sends buyers to open houses?”) and “The Nosy Neighbor.”

He says that the first group is the one to pursue, and we agree, but not to the exclusion of the neighbors (group number three).

If you’ve been around the industry for more than a minute, you’ve noticed clusters of listings; that is, several homes on the same street going on the market within weeks or months of one another.

Some call this coincidence, and they may be right, but it doesn’t change the fact that it happens.

In fact, as a rookie agent, my broker told me that if one homeowner puts his or her home on the market, there’s an excellent chance that another or even two to three more in the neighborhood will list in the near future.

If you’re holding an open house because your client expects you to, work to get something out of it for you, as well. 

One of the best ways to do this is to invite the neighbors. And, not just the next-door kind, but as many as possible. 

The invitation can be proffered via a personal visit, a flier stuck in their front doors or a mailed invitation. 

Check out the latter at:

Many of these companies also offer fliers if that’s your preference.

While it’s important to invite as many neighbors as possible, it’s critical that you keep track of which ones attend. Then, follow up with them. Again, this can be done by phone, email, snail mail or in person, but it’s imperative that you follow up.

Stuck for what to say? Michelle, at keyrealestateresources.com, offers up a sample.

You’re not done yet

Don’t get lazy when it comes to handouts. When done right, information packets that include your branding and contact information will live on with attendees long after they visited your open house.

Naturally, you’ll want to include information about the home you’re holding open. Use a color copy of the flier and ensure that it includes the home’s square footage, number of bedrooms, bathrooms and any special features.

Create some pages with information about the neighborhood or surrounding area. How many parks, employers, which school district?  Throw in information about the area’s largest employers, a bit of history about the area and anything else that they may find interesting.

For ideas on what to include, check out any city’s relocation guide. Here are a few to get you started:

Sure, the neighbors and other attendees are probably well aware of the area’s attractions, but the more valuable the information you include in your packet, the more likely the recipients will be to hang on to it.

Again, ensure that each page includes your branding and contact information. Then, bind all the pages and add an attractive cover. This is one of the more important tasks when putting together this information.

Your goal should be for attendees to hang on to your branded hand-out. If it’s appealing visually and easy to flip through, they’re more likely to do just that.

Consider community involvement

There are lots of ways to get involved in your community. The best place to start, however, is with a cause, group or organization that you are passionate about.

Many agents will hold an annual event to benefit their chosen cause, while others get hands-on involved with a group. Either way, community involvement helps expose your brand, repeatedly, to members of the community.

Do you have a niche that you specialize in? 

Consider finding a cause that matches. For instance, if you specialize in senior real estate “Gather volunteers to spend one day each quarter helping senior homeowners with home repairs,” (thanks to Michelle at Key Real Estate Resources for this brilliant idea).

  • Get your brand out to families by sponsoring a local sports team. Hand out branded water bottles, t-shirts or provide the half-time snack as an additional bonus.
  • Here’s another one from Michele: Sponsor a community beautification event, like a beach or vacant lot clean-up, “… graffiti removal, or community garden.”
  • Adopt a classroom at the local elementary, junior or senior high school and coordinate with the teacher to supply the semester’s school supplies.
  • Create an annual event around a holiday, such as October sock collections for the homeless (“Socktober”), a holiday toy drive for children, a holiday food drive or pet food drive.

Not only will supporting your community make you feel good, you’ll build your database as well.

How?

“First-time homebuyers Emily and Joseph Jared hired their Realtor, Sophie Mason, after seeing her posts on Facebook in support of Nashville Humane Association,” according to Bill Lewis of the Nashville Tennessean.

“That impressed the Jareds, who adopted their cat, Sarah, from Nashville Humane,” Lewis continued. “It’s good to know the person I was working with was focused on giving back and not just taking,” said Emily Jared.

Need more ideas? Check out the National Association of Realtors’ list.

More money than time?

Community involvement and a well-executed open house take a big chunk of time out of an agent’s schedule. 

If you’re pressed for time yet want to keep that sales funnel full create room in your marketing budget for Google pay-per-click (PPC) advertising.

Not only can it be cost-effective but results are typically quicker than other lead gen techniques as well. Traffic generated via organic searches, for instance, trails that generated by PPC by 50%, according to the folks at Moz.com.

Check out these additional Google PPC statistics:

  • On average, businesses earn $2 in revenue for every $1 spent on Google Ads (Google Economic Impact Report)
  • Sixty-five percent of clicked Google Ads contain “buyer-intent keywords such as ‘buy,’ ‘shop,’ ‘purchase,’ etc.” (PowerTraffick)
  • Paid ads that answer a question garner the highest number of clicks (33%). (Clutch)

There’s a lot that goes into an effective PPC campaign, which is why many agents hire someone to do it for them. 

If you’re a beginner, check out some of the tutorials for agents on YouTube, like this one from Mike Sherrard and this one from Eric B. Preston.

None of these lead gen techniques are earth-shatteringly new, but all will help stuff the pipeline, making them worth reconsideration as we head into the new year.

 

Easy Agent Pro Blog, Lead Capture

It’s that time of year! Reach out to everyone in your sphere

I heard my first holiday song of the season on Halloween. At around that same time, the big box stores started clearing out their garden centers to make way for the thousands of pallets of holiday décor.

Even the biggest procrastinators among us can’t miss retailers’ attempts to start the winter holidays early.

If you aren’t in the spirit yet, it’s time to take a cue from the retail industry. Especially if your CRM is crammed full of contacts, the time to start was yesterday.

Add an extra blog post every week during the holiday season

In many cities and towns, the weeks between Thanksgiving and the new year are full of local activities. These are activities that folks love to attend so let them know about what’s happening in your town or city. 

The best way to do that? By blogging and then promoting those posts on social media.

“Create a holiday gift guide featuring local vendors,” suggests Ada Ciuca with Keller Williams. She goes on to add this brilliant tip: “If you can secure discount coupons as well, even better! This will not only help your sphere, but also establish goodwill with local businesses.”

Here are some additional ideas of blog posts you can punch out in under an hour:

  • Neighborhoods with amazing holiday light displays
  • A list of “Adopt a Family for the Holidays” charities in your area
  • Best hot chocolate spots in your town
  • Best places to ski, sled, ice skate
  • Local restaurants serving holiday dinners and brunches
  • Ways to help the less fortunate in your area over the holidays
  • How and where to shop locally for a holiday tree
  • Winter weekend nearby getaways
  • Best Christmas brunch in [name of town]
  • A list of holiday concerts and performances (the symphony, the Nutcracker, etc.)
  • A list of local retailers where the reader can buy cheap holiday décor
  • New Year’s Eve events
  • New Year’s Eve events for families
  • A rundown of top economists’ housing market predictions for 2022, niched down to your market
  • A list of New Year’s resolutions for homeowners, such as “work on increasing your emergency fund,” “routinely change HVAC filters (mention local retailers that sell them),” etc.

Remember to keep these posts focused on the hyper-local, include business addresses or website URLs whenever possible and link back to any earlier, pertinent posts on your blog. Internal linking is great for SEO.

Finally, don’t skimp when it comes to photos. Shannon Johnson at hubspot.com. talks about an experiment they performed that finds “… the click-through rate of posts containing photos is 128% higher than the CTR of posts containing videos or links.” 

She goes on to conclude that they “… also know photos on Facebook generate 53% more ‘likes’ than the average post.”

Promote those blog posts

Blog posts should never be permanently rooted on your website. Propagate them and share on your social media platforms. 

Hyper-local topics (which is what we’re dealing with here) are eminently sharable. 

“Cross-promoting your content on social media can help drive traffic to your blog,” according to Melanie Tamble at socialmediaexaminer.com. It also helps generate additional exposure for your brand.

Some social media experts recommend changing the message according to social media platform.

“… if you push out the same message to all of your networks, you’ll miss opportunities for outreach and engagement. Instead, you need to tailor your posts to each network and audience,” cautions Tamble.

Makes sense when you think about how much your Facebook audience differs from those you hope to reach on LinkedIn.

Just be careful if you choose an email campaign to get the word out there about your blogs – You’ll want to avoid these annoying cliches.

Whichever platforms you use, ensure that what links back to your blog contains a catchy headline. Then, engage, engage, engage with commenters.

Hit the road

If you’re short on cash (and who isn’t right now?) save this one for the hottest of the hottest leads and referral sources in your CRM.

It’s time for the seasonal pop-by. In fact, this time of year presents the perfect excuse to stop by and leave a small gift. Here are some ideas:

  • Deliver boxes of cookies or confections (homemade are especially appreciated)
  • Toys for the pet(s)
  • Goodies for the kids
  • Boxes of sparklers for New Year’s Eve
  • Champagne or champagne glasses to toast the new year
  • Hot chocolate kit. You can make these yourself to save money. Open hot chocolate mix packets into a small cellophane bag and use a shiny twist tie to secure it. Place this in a basket or larger bag along with a peppermint stick and small marshmallows.

Tip: If you look for pop-by gift ideas online you’ll find that many recommend adding a completely over-the-top-hokey tag to the gift. For instance, included with the gift of a jar of local or homemade jam, is a tag that reads “Real Estate is my JAM!”

Please. Don’t. 

A handwritten tag that simply, and with class, wishes the best of the holiday season or an amazing 2022 will suffice and cast you in a far better light.

As for the pop-by itself, depending on how the pandemic is impacting your area, you may just want to leave your offering by the front door. Or, knock and back off a foot or two.

Keep the visit quick. In fact, the folks at First American Home Warranty suggest that you “Keep your car running. You’ll be less inclined to stay longer if your car is idling in the driveway.”

They also recommend that you keep pop-by gifts in your car. “You never know when you’ll be out showing a house and find yourself in the neighborhood of one of your favorite clients.”

One final tip: Don’t forget to include your business card.

Go traditional

There is a reason our mailboxes fill up with holiday cards every year: it’s a relatively inexpensive way to reach out.

Since you, as an agent, want the card to perform double duty (to remind them you’re still out there selling real estate and wish them the best during the season), timing is everything.

Forget Christmas cards. 

Why?

Americans send 1.6 billion Christmas cards each year, according to studies from the Greeting Card Association. That number balloons to 17.9 billion cards sent between Thanksgiving and New Year’s Eve.

If you don’t want your greeting to get lost in a sea of others in your SOI’s mailbox, send New Year’s greetings instead. These can be mailed even up to a week or two after the first of the year and they’ll be far more likely to be noticed.

Look for Holiday and New Year’s cards online at:

Heading into the holidays can very often be a hectic time for agents, what with trying to close before all the lenders, title and escrow folks and attorneys are taking time off.

If you start now, however, you can slay those holiday touches out and reap the benefits in 2022.

Looking for more winter marketing techniques? Check out our list!