NAR Conference Notes

NAR CONFERENCE NOVEMBER 2015

Jonathan Corr – Ellie Mae, President/CEO

Biggest change in 40 years – RESPA & Know before you owe

Prediction of New TRID

1. Loans take longer to close

2. Creditors issue more tolerance cures

3. Certain loan products are going to be less available

87 million millennials – oldest are 34 years old

50% chance everything will be done electronically in the 5 years

Chris Deritis – Moody’s Analysis, Senior Director Consumer Economics

Employment – Part time 9.8%, Out of the labor force and want a job 5.4%, Unemployed 5.0%

18-34 year olds living with parents 31%

Rents are rising

Renter households, 2014 Arizona 30.2-32.1

Home prices to rise – less than 4.5%

Risks

Mortgage Credit, Average 750

Student Loans, Household age 25-44, average .31 to .36 AZ

Lawrence Yun, PhD – Chief Economist, NAR

Raising rates maybe Dec-Jan

Lifetime wealth at all-time high, 2015-Q1 $85,000

Dow Jones Industrial Average (doubling since 2009) 2015-Oct $17,000

Median household income $53,500 2014

GDP Growth 2015 Q3 1.75%, inconsistent with 2.2% average since 2014

Sluggish growth & Gap after recession, 1.7 trillion gap……$5,000 per person, without recession

3%……real 2.2%

Homeownership Rate 50-year low

Young People – Under 35 biggest hit

First time buyer 30 year low

Student loan debt

Affordable inventory

Desire to own remains strong is strengthening – 18-24 year olds 91%

83% believe good financial decision

Monthly pending sales at a decrease due to mortgage rate increase 2 years ago. Seeing that to happen

now.

Adjustable mortgage will be mostly affected with Fed increase

What determines Bond Yields?

Fed Reserves short-term rate changes

Inflation & erosion

Federal Deficit – Shrinking

Federal Debt…….Cumulative up

No CPI Inflation…..Yet

Rents rising at 7-year high, Rental vacancy rate at 30 year low

Home Prices rising

New Homes, even higher

Condo’s underperforming

Less than 1% of homes sold is the Tiny Home movement. Not an American Dream.

More Supply

Existing & New

Pent up home sellers 7.5%, average person stays in their home for 6 years

2% mortgages in foreclosure Arizona, New Jersey 10%

3% national average

Housing equity for Pent-up sellers – Good

Return boomerang buyers – Good, 1.8 Million 2015-2023

Steady increase inventory – Good

Build more homes

Arizona 1%-2% Job Growth

Realtor Membership Growth Average 6 million

FSBO collapse 2015 8 million – more trust

Know Before You Owe – CFPB

Consumerfinance.gov/kbyo/real-estate- professionals

The Real Estate Professionals Guide – Ensure smooth and on-time closings with our guide to the new

mortgage disclosures and process. This guide will help your clients to know before they owe.

http://files.consumerfinance.gov/f/201503_cfpb_your-home- loan-toolkit- web.pdf

Know Before you Owe Tool Kit

Brian Buffini – The Technology Trap

You need technology, but don’t get trapped

Trap: A device designed to allow entry, but not an exit

1987 Talking Real Estate signs

1994 MLS Photo Booth

1. What are the biggest tech challenges agents face?

Shiny object syndrome – takes you away from the core. There is not AP that replaces you!

Clients want someone that can trust. Be sure of yourself. Real Estate market is insecure.

Spending time and money and not seeing results

Go back to the basics

7 out of 10 agents surveyed buy online leads. Source: Inman News

Not all leads are created equal. A lead is a lead is a lead is NOT TRUE

Consumers LOVE Zillow

You cannot convert leads that are not leads

The promise of online lead generation is a nap. They do it for you. Your outsourcing.

Zillow says the created 280,000,000 leads. There were 500,000,000 sales. 1 million of those

were Zillows

50% of FSBO’s are interfamily transfers

Work by referral

2. The future of our industry – MILLENNIALS

Then – Record Store, Now – Streaming/itunes

Then – Bookstores, Now – Massive online store

Then – Travel Agency, Now – Booking websites

The single biggest threat to the industry abdicating the lead-generation process

Transactional vs. Relational Income

NAR average sales agent $35,000 2014

Coached sales agent $290,366 2014

3. What tech tools do you need to succeed?

Understand your value

Go build relationships

Go meet people

You control the lead generation process. Lead and direct.

Build your database: buffiniandcompany.com/followup Access Code: Success2015

The Social Survival Guide

Have an: 1. Online presence 2. Mobile savvy 3. Video 4. Client Relationship Manager – turn them

into a walking talking billboard.

I’m there, I care, I use tech too

Today in the Internet and our Future Curt Gritz – Chief Ex. I can Name Association, Sarah Langston –

Dir. Acct. Mg. Verisign, Allen Bush – Dir. Ignite Visibility

1997-1998 – Decided needed more for search engines and domain names

Network Solutions

ICAN

Helps small businesses define themselves

Verisign helps find domain names quickly

Good security

What can I do?

Do not have to spend a ton of money.

Tips and Ideas for websites:

Free of errors

Not complex

Word press or magneto

Update frequently

Write content to surround audience

Domain available to us as members

.Realtor

Provides a level of security

Provides agent to standardize

Provides a service to Realtors

DNS Security protects

Competing with .com’s and .net’s

Creative uses……rebrand yourself online

Free for first year

Permanent internet presence

Inthewild.domains

Manage, Train, Recruit, Retain – Pamela Ermen, The Real Estate Group

Call 20 a day

Call with a purpose

Door knock with a purpose

Manager-leader, be both

Being true to core values

RADICAL recruiting begins with RADICAL retention!! 50% referrals

Give more than someone will ask for

Core values that are REAL – Core Culture

What are your non-negotiables?

Dynamic, Positive Work Environment

Relevant and market sensitive training

Technology that WORKS

Broker support and availability

We appreciate you…..

Client Events – Agents and Clients

Get agents together, talk to them

*Starbucks Realtor Cards

Meet and Greet – Drawings & Prizes

Tony Hsieh – Committable Values: Willing to hire or fire not based on job performance but based on

core values. Zapple

Core Values of Culture

Deliver WOW through service

Embrace and drive change

Humble

5 step plan: Life, Budget, Commission income, unit sale, source of sale and marketing budget

Recruiting Plan: Increased revenue goal, revenue from recruiting, # of new associates, recruiting sources

(Agents, Board Contacts, Affiliates, Open houses, agents on other side of transaction, friends, Real Estate

Schools)

BE THE BUZZ!! CREATE THE BUZZ!!

New agents

Facebook Ads www.facebook.com/business

New Agent Blog

Success Formula

30 minutes a day

2 status posts

10 wall posts

5 new friends

Happy Birthday to your Agents – Make it fun

Hire a social media manager

Social media calendar – content that will matter

HMO – Office Wellness Checkup! Month? Sales associate happy? Making money? Unique Opportunites

Monthly book break with your agents

Social Sluth!

Google agents – get their online presence (reputation)

Build a level of value

Track agents activities

What are you going to do to engage with them, what is the best business decision for them

Help the Seller see what will happen if they don’t sell

Average Age of a Realtor – 57 years old

Average Age of the Homebuyer – 31 years old (born in 1980-1985)

Millennial Momentum – 2016 31%-36% will buy

The Y Factor

Largest us generation

Expect transparency

High level of trust for reviews

Gets info from social networks

Confident and nurtured

Spenders vs. Savers ($200 billion spending power)

Brand loyal, stay with the big person

While brand loyal, don’t like paying full price unless no choice

Overload – 41% negative coming at them

Training that Rocks!

Business Planning

Business Building

Pricing

Social Media

Technology

Negotiating

Financing & Economics

Risk Reduction

New Agent Training

Marketing and Advertising

Company Programs

Presentations

Engage – Blend training and social media

Training Syllabus for the year – Who: Use Agents, Affiliates, Paid Instructors When: Do not overload your

months

Team Dynamics – Webinar Series

Post a tech tool on facebook every month:

Tech support for real estate agents

Real Estate Connect

Inman Select

Real Estate Summit

Keeping Current Matters

Tech Savy Agent

You manage things. You lead people.

Paradigm – A change from one way of thinking to another. It’s revolution, a transformation, a sort of

metamorphosis. It doesn’t just happen, but rather is driven by AGENTS of CHANGE………..

7 Deadly Sins of Real Estate leigh@leighsells.com www.noflufftraining.com

Howard Brendon – Get out of judgement and get into curiosity.

When you do better, the agents around you do better.

*Ego Over Substance

Start with Why, Simon Sinek

You must remember that the client is making the biggest financial decision of their lives!

Define your WHY

Be more than the MLS BOOK

Zillow cannot: Location, Condition, Upgrades

Define your value proposition

Cultivate

Be the consumer

You CANNOT price a property per square foot.

*Abandonment

-Refer.com

-www.noflufftraining.com

-newsle.com

-leadstreet/boomtown/etc.

-bombbomb

DON’T BE LAZY! MUST FOLLOW UP!

FORD = Family, Occupation, Relocation, Dreams

Keep Organized

Be authentic with your clients!!

Embrace who you are! Your clients want the REAL you! Send something that sounds like

you!

Video intro to your clients. Enter into a relationship, where they are.

Give your client something of value

*Cherry-Picking

The houses are important, ALL OF THEM, to the client

Select them based on being the same

-referral network

-intake sheets

-www.noflufftraining.com/shop

-Showing partners

-What you do for one, you do for ALL

Ask the same questions to ALL!

Never let your customer service down.

You are a SUPRA key to a buyer when you very first talk to them.

You will NOT fit everyone.

Move into an attitude of abundance

*Not Asking Questions

Back to the dark years, ask questions and WAIT FOR THE ANSWER!!

The good Lord gave you 2 ears and 1 mouth for a reason!

-Shut Up

-Listen twice as much as you talk

-Go Three Deep

-Intake Sheets

Need to understand what is going on in their life

ASK LOTS AND LOTS OF QUESTIONS

*Loss Aversion

I hate losing more than I love winning

*Learn to Cut

-Fire (or don’t take) the poison client

-Best 4-Letter word in Real Estate?

-Change your credit card number

NEXT – is the best 4-letter word in Real Estate

Think about the client. Information, Education

Need to save! Quit spending money!

If you are not using it, quit paying for it!!

Work a Plan! Look at your bank account

*Talking to much

-Shut Up

-Take notes

-Everything is a competition

Consumer needs to feel good about their experience

Do not use a phone or computer to take notes. Use a pad of paper and pencil. Then they

can see and hear! Use ALL the senses!

Drawn them back in!

*Ignoring the Phone

-Answer it

-Google.com/voice

-Slydial

People want to hear your voice

They can get their information from lots of other places, but they called you! If they

called, they are 70% ready to buy that house!

If you change markets, change your phone number!

Say your name and company when you answer the phone

Do not take your phone on a buyer or seller appointment, EVER!

*Fluff and Puff

You lie about price. We all have taken over priced listing.

You lie about condition.

-TELL THE TRUTH!!

-The 1 to 10 Dialogue

-The Agent cocktail party

Fill in the blank listing presentation

What is it going take to make it a 10

BE THEIR TRUSTED RESOURCE

Celebrate to greatest consumer investment

Be excited about your listings

Engage agents and buyers

*Sense of Urgency

Embrace your CEO position in your business

Have a time blocked schedule

-Go on and hire that additional assistant

-The 2-minute role

-Write a check

Hire within your community. Do not hire a virtual assistant! 5 hours a week

Put your money where your mouth is

*Invested Priorities

Don’t trade them for a deal!!

Carve your name on hearts not tombstones. Shannon Alder

Be where you are!!

It is ok to set priorities

Your clients want you to have a life

It is ok to set a schedule

Be Present!

Make your life about your loved ones

Getting to know buyers in the digital Age – Celeste Starchild, VP of Move & GM of ListHub

How Consumers Search:

92% of buyers begin their home search online

Average of 11 searches prior to taking action on a real estate site

Average buyers spend 2 weeks on line before contacting an agent

69% Start with a local term in a search engine

Pretty much everyone googles their Realtor – make sure your online profiles are updated

Today’s home buyers – digital natives – 32% are all digital

Millennial Home Buyers

Median age 29

Married 65%

Single 12%

What if your leads were smarter?

More data=more leads realtor.com gives days searching and much more!

High Performing Websites – ListHub, Realtor.com, Trulia, Zillow

Buy a zipcode? How do you decide?

Go to ListHub

Transaction Ready Leads

Tiger lead

Who are your potential buyers and what makes them tick?

Must keep in touch and make the info meaningful

Develop Buyer Person’s

Dig Deeper – Gather meaningful data

Demographics

Household

Neighborhood

Psychographics

Lifestyle

Media

GET SPECIFIC!

1 in 12 buyers is an International Buyer

Segmented Advertising

What if you knew when a person is likely to look into buying a home?

Life Events Trigger – Target marketing & Facebook

Be general in your Ad “Would you like info?”

Nurture Leads

Be the local market expert

Deliver something of value

Market snapshot

Appeal to consumer’s curiosity

Be the first to respond

Increase your contact rate by 900% be responding within 5 minutes

It’s not how many leads you have, it’s what you do with the leads

Personalize your response

Keep it short

People want data, they want answers NOW

Be consistent, Be Persistent

Call and Call often. Connect personally

BEST RESULTS on off peak hours

Practice makes perfect – Role play helps for those hard questions

Always have a call to action! Put in your schedule

Test it Out!

Try different things

Compare and Contrast

Quit making assumptions

Always changing

Not everything works for everyone

To be successful, you must have a process

The Never Crazy is a Compliment – Power of zigging when everyone else zags – Linda Rottenberg

Biggest risk is not taking any at all

Social entrepreneur – Dolphins

Lifestyle entrepreneur – Butterflies

Intro entrepreneur – Skunk

If you are not being called crazy when you start something new, you are not thinking big enough!

The hardest part is taking that first step

Stop planning! Start doing! Be a doer

Americans over plan everything

Kickstarter

Minimizer Risk

Stalking is an underrated start up strategy

Intro personality, Realtor.com

Make a space to succeed and to fail

Talk about what went wrong AND what went right

Flawed + Awesome = Flawsome

Aspire to be less super and more human

Work life integration

Millennials want meaning, flex time

Be about minimizing risk, not maximizing risk

Harness the troubled times

Must keep trying new stuff and changing