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%
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
Homeownership Rate 50-year low
Young People – Under 35 biggest hit
First time buyer 30 year low
Student loan debt
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
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
Less than 1% of homes sold is the Tiny Home movement. Not an American Dream.
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
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
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
Helps small businesses define themselves
Verisign helps find domain names quickly
What can I do?
Do not have to spend a ton of money.
Tips and Ideas for websites:
Free of errors
Word press or magneto
Write content to surround audience
Domain available to us as members
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
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
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
BE THE BUZZ!! CREATE THE BUZZ!!
Facebook Ads www.facebook.com/business
New Agent Blog
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
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
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!
Financing & Economics
New Agent Training
Marketing and Advertising
Engage – Blend training and social media
Training Syllabus for the year – Who: Use Agents, Affiliates, Paid Instructors When: Do not overload your
Team Dynamics – Webinar Series
Post a tech tool on facebook every month:
Tech support for real estate agents
Real Estate Connect
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 firstname.lastname@example.org 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
Be the consumer
You CANNOT price a property per square foot.
DON’T BE LAZY! MUST FOLLOW UP!
FORD = Family, Occupation, Relocation, Dreams
Be authentic with your clients!!
Embrace who you are! Your clients want the REAL you! Send something that sounds like
Video intro to your clients. Enter into a relationship, where they are.
Give your client something of value
The houses are important, ALL OF THEM, to the client
Select them based on being the same
-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!
-Listen twice as much as you talk
-Go Three Deep
Need to understand what is going on in their life
ASK LOTS AND LOTS OF QUESTIONS
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
-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
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
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
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
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
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
1 in 12 buyers is an International Buyer
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?”
Be the local market expert
Deliver something of value
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
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
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