Great thought and a good article!

Dear All,

 

Attached is an article from yesterday’s Wall Street Journal that touches on our current real estate market conditions (all of which we covered at the sales meeting yesterday).

I think this is a particularly good article for your apprehensive sellers who are either holding off from listing or are listed but overpriced.  Here’s why it’s good:

1.        It hits on rising interest rates “testing” buyers’ willingness to pay more than they would like.

2.       There has been a slowdown in sales and traffic in August and September .

3.       Rising mortgage rates are making it more difficult for sellers to ask higher prices in markets (Like our Central Valley) that have experienced the most appreciation in the last 12 months (remember, the National average in price appreciation is about 10% year over year and our Central Valley has had appreciation from (20-25%).

4.       The median sales prices in Fresno (but this range/example is fairly consistent from Merced to Hanford) over the last 3 months have been – June $185,000, July $183,500, August $185,000  -  so the question is, with this stutter, have we reached a ceiling in our current market?  If we haven’t, we’re real close!

5.       Our response to the Sellers’ apprehension and desire to time the market perfectly and sell right at the HEIGHTH OF IT ALL needs to be a standard response – one that you can repeat in your sleep:  “M/M seller, it is impossible to know exactly where the top of the market is until we’ve passed it, and are looking back, and then it’s too late; the train has left the station.  You see M/M seller, unfortunately, there is no bell that sounds when the market’s train leaves the station and 9 times out of 10, if not more, the folks that try to time it just right miss the train altogether and are left holding their bags or in this case, left with an unsold property or having to take less than they could’ve gotten”.   It seems as though the market is signaling that the train is about to leave the station – with that said, where do you think we should be priced so as NOT to miss it?

 

Good luck!

Cheaper to Own vs Rent - Buy now!

Dear Associates,

Below is an article that every buyer must read. Affordable pricing and low interest rates are still making this the perfect time to buy a home or investment property, but the window may be closing.

• Owning is cheaper than renting by 35%

Supporting stats are based on calculating the cost of buying and renting for identical sets of properties, including maintenance, insurance, taxes, closing costs, down payment, sales proceeds, and the monthly mortgage payment on a 30-year fixed rate loan with 20% down and monthly rent. Also assumed that people will stay in their homes for 7 years, deduct their mortgage interest and property tax payments at the 25% tax bracket and get modest home price appreciation (approximately 3% annually).

• Calculations show that for 78 of the nation’s top 100 largest metro areas, the tipping point for the financial gain of owing vs. renting is if interest rates hit 10%.

o    We’re still well below 5%!

o    This is a huge incentive for buyers to buy now!

• Because both home prices and interest rates continue to show signs of increasing, by next year, buying probably won’t be as cheap relative to renting next year.

o    Buy now!

EVERYTHING DONE IN MODERATION EQUALS SUCCESS

Below is a hand-out from the sales meeting in Fresno this week. With inspiration from a few books and several articles that I’ve recently read, I wanted to share a few thoughts that I had. I hope you’ll take a couple of minutes to read them, and a few more minutes to let them soak in, and then take action!

Also, remember that hand-outs like these are good to pass on to your clients and sphere.

Have a great day!

Patrick

Another lifeline is extended to homebuyers....

Dear All,

Attached are two very important reads.  The first is an article from the Wall Street Journal this week on the Fed’s push to ease credit for home buyers, particularly “boomerang” buyers (those that have gone through a short-sale or foreclosure in the last few years, but have cleaned up their credit and are wanting to again purchase).  Government purchased loans continue to make up the bulk of all lending and this can be significant to opening up the market to more buyers.  You don’t have to agree with these steps, but we do need to take advantage of what is out there to help the consumer.

The second attachment is a Q & A on the government’s (FHA) action and illustrates parameters of the initiative.

Please look at both of these and spread the word!  Get those buyers in to your trusted loan officers at Royal Charter Mortgage!

 

Good luck!

 

Sell the Farm and buy the McMansion!!

If your clients, family members, friends, or  anyone for that matter is thinking about moving up, now is the time!

Read the attached article to find out why!

About 60 days ago, I sent out newsworthy information about the price of Jumbo loans falling.  Historically, jumbo loans have always exceeded the cost of conforming loans (conforming in our marketplace as you know, are loans under 417K).  In 2007 the spread was as much as a full 2% difference on a 30 year mortgage.  So if a conforming loan was at 5% then, the jumbo borrower would have paid apx. 7%.  As of the end of June, 2013, the Mortgage Bankers’ Association pegged the spread at only .02% difference and as of today, this article says that Jumbos are now running .02% less expensive than conforming loans.  Mortgage bankers who have been in the business for 30 years or more have never seen nor did they expect this.  To Sweeten the pie, many of the lenders are only requiring 10 to 20% down.  Never has there been such a great time to get a jumbo loan.

Please do 3 quick things:

Read the article

Pass it along to everyone you can think of – time for your past buyers to “Move it on up!”

Have these same people talk to your favorite loan officer at Royal Charter Mortgage

 

Go get ‘em!

From the minds of 10 Superstars!!

Everyone who attended the sales meeting yesterday received some great information from 10 of our “Superstars” !!  For those of you who couldn’t make it and for those that think that you might already know everything, are already fired up and focused with your business and are having so much success that you don’t have any more room right now for positive, worthwhile information, here’s what you missed:

 

10 Action Items to Build Your Success! (here’s what our Superstars said...) If you don’t have the time, at least read the bold copy and the rest later!!

 

1.       Ken Neufeld:  Use Realist (or similar program in your market or the Title company) to find homeowners who purchased their homes in 2003 or prior – these people all have equity right now (unless they took out a second or refinanced (which Realist will show you)) and are great sources for  listings.  Listings are the name of the game and with these well positioned traditional sellers, you can hit a home run.  Prospect this group!

 

2.       Nichole Parent:  (the 7-Eleven story!)  Nicole went to 7-Eleven to grab a water and the attendant noticed her custom LP magnets on the side of her car and said that she was looking for a home, but wasn’t sure where to start.  Nichole said, “with me”!  and has since sold and closed escrow on this lady’s first home.  She’s currently working with another client that overheard their initial conversation while he was in line behind Nichole.  Use car magnets and your name tag – don’t keep it a secret that you’re in real estate – tell the whole town!!

 

3.       Jenny Ferguson:  Work into every conversation that you’re in real estate.  If someone compliments you on what you’re wearing your response could be, “thank you, I’m show property today to several clients and wanted to make sure I looked professional”.  Or maybe they see you at the car wash; you can let them know that you have an appoint later to show houses with clients and you’re wanting to make a good impression.  It’s easy, but we have to do it.  Also, weave it into conversations with you sphere (don’t take it for granted and think that they’ll automatically refer you business).  Jenny has two deals right now and more in her pipeline from one attorney friend whose daughter is on Mia’s (Jenny’s daughter) soccer team.  Go get ‘em soccer mom!!

 

4.       Lilly Avakian:  Don’t discount the importance of being friendly in your own neighborhood and reminding neighbors of what you do.  Look for opportunities.  As a grandmother to twins herself, Lilly stopped a lady who was walking with her granddaughters (because she noticed they were dressed alike) and commented, “how darling, are they twins?”  From that one conversation, Lilly sold 2 houses.  She has more stories just like that and all from talking to people in her neighborhood.  Be nice and be the resource for real estate in your neighborhood!!

 

5.       John Stone:  Be yourself!  Success will come when you identify what you’re good at and then do as much of that as you possibly can.  John has his own style of doing open houses – but keeps one thing in mind, make the clients feel comfortable!  Whatever your style, break down the proverbial walls between you and the client, demonstrate that your knowledgeable and great to work with.  Do open houses on various days and times (nowhere in our Code of Ethics does it say that “All open houses must be on Sundays between 1-4”).  A great listing might be taken for this Sunday, try to hold it open tomorrow morning from 8:30-10.

 

6.       Cheryl Shields:  It’s your business, promote yourself!  Use the tools that your marketing department has created for you like custom post cards, your web and mobile sites, your email signature banner, etc. and other avenues like the Fresno Bee or personal newsletters to promote you.  Use your photo on everything (even if it’s not as nice as Cheryl’s) to promote you.  It’s an advantage if people feel like they know you before they even meet you (remember not to use that photo from 10 years ago though – that might show that you’re not up on your marketing!!).  Promote, promote, promote! (you and London make an unbeatable team!)!

 

7.       Kerry Crabill:  Now that you’ve done the open house (or whatever it is), follow up!  While building rapport at open houses, Kerry gets as much contact information as she can from prospective clients (mailing address, email, phone number) so that she can follow up.  To be the most effective, remember details about the prospects (were they wearing something with a Pro athletic team logo on it, are they golfers, are they looking for a particular school district, etc.) and weave these details into your follow up to show you remember them – they’re special!  Then, follow up with an immediate personal note, a few days later an email (with your photo on your banner signature), and then the icing on the cake is the personal phone call.  You always have the opportunity to wow the client – take advantage!

 

8.       Debbie Henes:  Give back to your community (schools, church, charities, etc.) because you genuinely care and the business will come.  Recognize and appreciate others for how they are giving back – they in return will see you in the same light (putting others first).  When you love (if not the whole) at least some part of your community, and you love what you do, real estate, people will feel this and want to help.  Constantly remind people that you’re in real estate by letting them feel your passion and letting them know that you’ve taken great care of those they referred to you.  Talk to people at every event you attend and create the opportunity to hand out a card and get a lead.  Invite people onto your Energy Bus!!

 

9.       Brent Patch:  Know the numbers!  Get into the MLS consistently to know what has come on the market and what has sold in a short period of time.  Pick a price range and or a neighborhood.  If you know what has been listed and sold in a particular neighborhood in the past 15-30 days, you’re armed with great prospecting information.  Through door knocking, mailing or calling you can approach others in that neighborhood by saying, “In the last 15 days , 3 homes have come on the market and sold in your neighborhood.  What that tells us is that your neighborhood is in demand and buyers are willing to pay the price that sellers are asking.  Knowing this, have or would you folks consider selling in this great market?”  Knowledge is power and it will help you build your listing inventory!!

 

10.   Jeff Lawry:  Have a plan and a schedule!  Now that you know what to do, schedule it!  Scheduling will make you accountable and aware.   Jeff and the Merced office are working with a points system to encourage and track their activities and it’s working – call him for details!  Jeff’s example was that if you know you have to add at least one person to your sphere today but you think you’ve run out of time, as long as you’re aware, you can make it happen.  Jeff hadn’t prospected all day, but upon looking down at his appointment book he became aware that he still had an opportunity;  he had a 3 o’clock appointment with his mechanic.  Armed with business cards and motivation, Jeff added his mechanic to his sphere, handed out a card and got a referral all at the same time!!  With any service provider that you use (e.g. dealership), everyone there should know what you do.  They win too – if they refer more business to you, you’ll buy more cars!!

 

We all have most of the same opportunities – it’s how we take advantage of them that makes the difference.  Get out there today and make a difference in yourself, your business and your income!

 

Good luck!

 

Frog Eating Rule No 20

Develop a Sense of Urgency

·         “Do not wait; the time will never be “just right.”  Start where you stand, and work with whatever tools you may have at your command, and better tools will be fund as you go along.”          Napoleon Hill

·         Get action oriented.

 

·         Highly productive people take time to think, plan, set priorities and then launch quickly.

 

·         When you see an opportunity or problem, take action on it immediately.

 

·         The faster you move, the more energy you have, and the more momentum you create to accomplish your tasks.

Good Luck!

Frog Eating Rule No 19

Create Large Chunks of Time

·         Organize your days around large blocks of time where you can concentrate for extended periods of time on your most important tasks.

 

·         Successful Sales Associates set aside a specific time period each day to phone prospects – rather than procrastinate, they set a time and stick to it.

 

·         Build your work life around accomplishing your key tasks one at a time.

 

·         Eliminate all distractions and work non-stop during these periods.

Frog Eating Rule No 18

Slice and Dice

·         Break large, complex tasks down into bite-sized pieces, and then do just one small part of the task to get started.

·         One bite at a time!

·         Create a “compulsion for closure” – it feels good!

·         Finishing tasks = Success!!

Good luck!

 

Frog Eating Rule No 17

Rule #17 – Get out of the Technological Time Vacuum!
 

·         Too much technology will rob you of your productive time – don’t get addicted!

 

·         “Technology should be a servant, not a master”

 

·         “There’s more to life than just increasing it’s speed “– Ghandi  On this note, remember that your clients need human touch – they need to see you and or hear your voice.

 

·         Just because somebody sends an email doesn’t mean you need to reply (avoid the “reply to all” button and responses (they’re time killers!))

 

·         Learn to occasionally turn your devices off and leave them off.

 

Good luck!

Frog Eating Rule No 16

Motivate yourself into Action.

·        Control your inner- dialogue.

·        Look for the good in every situation.

·        You can eat this Frog!

·        “The last of the human freedoms is to choose one’s attitude in any given set of circumstances.”

·        There is a valuable lesson in every setback or difficulty; find it and your optimism spreads.

·        Optimism plus action wins every time.

Good Luck!

Frog Eating Rule No 15

Maximize Your Personal Powers

·        Know your periods of highest mental and physical energy each day – schedule your most important and demanding tasks at these times.

·        Take care of yourself physically: exercise, have a healthy diet and get adequate rest.

·        Overworking can lead to under producing.

·        You avoid overworking by planning your schedule, implementing your activities without distractions and sticking to your deadlines.

Good luck!!

Frog Eating Rule No 14

Rule #14 – Put the Pressure on Yourself:

 

·         Create imaginary deadlines- imagine that you have to leave town for two weeks and work as if you had to get all of your major tasks completed before you leave.

·         If you don’t put pressure on yourself, somebody else will and you may not like their frogs.

·         Stay in control of your activities by choosing your frogs.

·         Once you set yourself a deadline stick to it and even try to beat it.

 

Good luck!

 

Rule No 13 – Identify Your Key Constraints

·        Determine the bottlenecks or choke points, internal or external, which set the speed at which you achieve your most important goals, and focus on alleviating them.

·        What is holding you back?

·        What is keeping you from eating your frog(s)?

·        The 80/20 rule applies to your constraints: 80% of what is holding you back from achieving your goals lie with you, it’s internal! Only 20% comes from external factors like: market conditions, government, competition, and etc.

·        Why aren’t you at your goal today? Ah ha! Another frog!

Frog Eating Rule No 12

 Rule #12 – Leverage Your Talents:

 

·        Take stock of your unique talents and abilities on a regular basis.

·        Successful people know what they do well and what they most enjoy – Know what those are for you and throw your heart into them!

·        What has served you best and from where do you get y our passion?

·        Know your talents and you will unlock your personal potential.

Frog Eating Rule No 11

Rule #11 – Upgrade Your Key Skills:

 

·         Sharpen your knife (your skills)!

·         Decorated NBA coach, Pat Riley, said, “Anytime you stop striving to get better, you’re bound to get worse”

·         Be hungry to learn.

·         Strive to be better.

·         Continue to learn, with continuous action!

·         Read, take good courses, and listen to audio programs in your car.

·         Be a lifelong student of your profession.

Frog Eating Rule No 10

Rule #10 – Take it one oil barrel at a time:

·         To help cross the Sahara Desert without losing their way, the French marked the terrain’s track with black, 55 gallon oil drums every 5 kilometers (which is exactly the distance to the horizon, formed by the curvature of the earth).

·         Take it one step at a time.

·         “Your job is to go as far as you can see.  You will then see far enough to go further.

Frog Eating Rule No 9

Rule #9 – Prepare thoroughly before you begin:
 

·         Have everything you need at hand.

·         Assemble your papers, numbers, information, tools, programs, whatever you’ll need to get the job done.

·         Rather than clearing your decks, you’re clearing your desk!

·         Get comfortable then, Get Started and keep going!

Frog Eating Rule No 8

Rule #8 – Apply the Law of Three:

·         If you could do only 1, 2 or maybe 3 things all day that would account for 90% of what your best able to contribute, what would those activities be?

·         The other 10-20 activities are “fillers” – they don’t count.

·         Avoid the Fillers!!!  They are killers!

·         Apply the Law of Three to all aspects of your life: Career, Family, Parenting, Personal Relationships, Personal Growth, biggest obstacles, your goals and etc.

 

Frog Eating Rule No 7

Focus where your efforts will have the highest returns:

·         Identify the activities (results) that you absolutely, positively have to accomplish to do your job well.

·         Do these activities all day long.

·         Consider this question, “Why am I on Payroll”?

·         Where will your efforts and results contribute the most?

Rule No 6 – Use the ABCDE method continually:

·         Before starting on your tasks, organize them by their level of importance.

·         Consider their value and priority.

·         Yes, some days you do have an “A-1”, “A-2”, “A-3”.

·         Know your “Should” vs. “Musts”.

·         Remember to think on paper!

Frog Eating Rule No 5

Rule #5 – Practice Creative Procrastination:

• Put off the smaller tasks – if you’re going to procrastinate, do so on the activities that don’t matter.
• Eat the Frog(s) first!
• You’ll have better control of your life by discontinuing lower level activities.
• Since you can’t do everything, you must learn to deliberately put off those tasks that are of low value so that you have enough time to do the few things that really count.

Frog Eating Rule No Four

·         Make better decisions about your time!

·         “There will never be enough time to do everything you have to do”!

·         Do what matters most!  What’s your biggest frog at this moment?

·         Always ask, “What are my highest value activities?”

·         Your most important tasks and priorities are those that can have the most serious consequences, positive or negative, on your life or work.  Focus on those above all else.

·         And, “What can I and only I do, that if done well, will make a real difference?