Real Estate Update

Posts Tagged ‘Realtors’

The real estate community in your service area represents a huge opportunity for you.  Realtors can help you acquire new accounts, defend your existing customer base and position yourself as the energy expert in your community.  I just spent a week at the Triple Play Realtor Convention in Atlantic City as a representative for the NORA-funded Partnership for Realty and Oilheat Success (PRO$ ) program for FMANJ, and I saw first-hand just how much opportunity there is for dealers who can cultivate Realtors and turn them into supporters of not only oilheat, but of their individual companies.

I’ve spent the better part of my career working on oilheat outreach programs targeted at Realtors.  I’ve also been on the other side, developing marketing and communications support from the corporate office of one of the largest real estate chains, and I’ve seen an awful lot about how Realtors act and think.  Read on for some insights about how you can get the Realtors in your community on your side.

Why Focus on Realtors?

The real estate office is the place where the rubber meets the road when it comes to prospective home buyers making big decisions about oilheat.  The right relationships within your real estate community will earn you referrals and will give you first crack at new home buyers.  Having no relationships will keep you on the outside of the deal and won’t allow you to positively influence the outcome.  Conversions often occur at the point of the home transaction, and you want to make sure you’re a part of the conversation.

And it’s not just the fear of doing nothing that should drive you to launch outreach efforts.  It’s that Realtors are a largely untapped resource in our industry.  They are a potential source of new business for you and they keep you connected to your greatest vulnerability – losing an oil-heated home to another fuel – and they directly influence homeowners, who are your ultimate targets.  Plus, they are open to your message and your information  –  but only if you treat them right and give them the tools they need to do their job.

Know your Audience

Here’s what I’ve learned about spearheading Realtor outreach efforts across the country:

Many Realtors have worse perceptions about oilheat than homeowners – Realtors deal with more homes each year than a typical homeowner, which means they’re much more likely to come across a problem with an oil-heated home.  One experience with an oil tank leak can cloud judgment very quickly and have long-term ramifications.
Realtors aren’t anti-oil, they’re pro-”sell the home quickly” – Realtors don’t care much about the heat source unless it causes a problem for them.  They care about selling the home as quickly as they can for as much money as they can.  And that’s where your interests overlap.  You can help Realtors sell oil-heated homes easier, faster and for more money.  And for that, you’ll stand a much better chance of keeping that home heated with oil.
Realtors act differently depending on the Real Estate Market – Boom markets like we saw in the early 2000s had lots of Realtors and a lot of activity.  There is good opportunity in a booming market, but Realtors are less hungry for information when business is good.  Today’s slow real estate market is the perfect time to launch an outreach effort.  A slow market allows the true real estate professionals to shine and weeds out the “fringe players,” those part-timers who can sell during boom times but aren’t experts in the business.  A slow market means you’ll find Realtors hungry for information and for any advantage to get ahead.  They want a local dealer in their back pocket to offer a new homeowner special move-in services or special pricing.

How to develop an effective program

Make your outreach a priority – This may seem like a no-brainer, but rarely do dealers make a commitment to Realtors as they would to other projects.  To really generate long-lasting impact, you’ve got to give your outreach due priority.  That’s not to say it should take the place of your marketing and communications efforts to acquire new customers, but it shouldn’t be relegated to a “when I have time” activity either.
Align your sales team – If you don’t have someone internal to serve as the point person for all of your Realtor efforts (most dealers don’t), it makes the best sense to use your sales team to be the primary points of contact with Realtors.  Provide your team with the key points of information, Realtor specials, product focuses that you want, so they are working with Realtors with a consistent message.  Ask yourself questions such as what is my primary message, what three things do I want Realtors to know about my company, and what is the advantage for a Realtor to work with my company instead of someone else? Once you’ve determined what your answers are, align your sales team around them.
Not all offices are created equal, so identify priority targets – You will be targeting anywhere from 25 offices to upwards of 1,000 offices, depending on the size and reach of your company.  Not all offices are equal in value to you, and you’ll want to figure out which offices are worth your time and effort.  Focus on offices that a) do the highest sales volume, b) are in target areas where you either want to grow or are most vulnerable from competition and c) are known office chains.  This is a good starting place, and as you get deeper into the market, you’ll learn more about which offices are worth focusing on and turning into “preferred Realtors” for your company.
Get involved with your associations – This can be a great way to reach a lot of Realtors at once and to position your company as the energy expert of choice in your market area.  Virtually all Realtors are members of their local real estate association, and you would do well to become a member.  Associations offer their affiliate members a variety of networking and relationship-building opportunities.  Get to know association leadership, and go from there.  Consider pitching association leadership on an oilheat class for Realtors or get them to publish an article in their newsletter such as “Make Your Listings More Energy-Efficient” that positions you as the energy expert for the realty community. You’ll also want to explore trade show and networking event opportunities with the association.
The broker is the key to unlocking the office - The broker sets the tone for the entire office.  If you get the broker to support/endorse you, you can really “own” the office.  Individual Realtors should be cultivated, but getting the broker on your side gives you a good chance to cultivate all the Realtors in the office instead of just one.  That’s why we focus on getting brokers to endorse our program and have them invite us in to speak with all of the agents instead of targeting individual agents with our message.  It’s also how to create lasting impact.  In an industry with high turnover, brokers are more stable and are more likely to run an office for years.
Focus on what Realtors want, not what you want to tell them – Realtors won’t be interested in everything you have to offer, so don’t try to sell them on all your products.  Keep the focus of your Realtor outreach efforts tied to issues related to real estate.  When you are invited to speak to an office, talk about the things Realtors would find helpful.  For instance, you might talk about the special services you provide to homeowners getting their home ready to sell.  If you’re a certified energy auditor, you might want to talk about how energy audits can increase the value of a home.  Focus on what’s relevant to the Realtor, so you’ll earn their trust, gain their referrals and defend against move-outs.

This should provide you with some good food for thought as you decide your pathway to growth in 2010.  I would be happy to talk with any dealer who is looking for additional guidance and support in launching a program this year.

With the current housing market making it much more difficult for owners to sell their property, some realtors have been creatively resetting the “days on market” meter for their clients on their local multiple listing service (MLS). Though many have done so out of good intentions, perhaps not realizing that this is a violation of many multiple listing services, buyers should beware and ask their realtor to take steps to ensure the home they are interested in is not a relisted property.
The targeted homes usually have sat on the market for several months, no longer attracting potential buyers. There are many reasons a home may sit on the market too long. Generally, the reason has nothing to do with the value of the home to a potential buyer. Here are just a few reasons:
• There are currently so many homes on the market across the nation. The competition and falling home prices are making it difficult to sell homes, regardless of price and value offered;
• Most realtors show clients the new listings first. That means that a truly good home will not get the same attention as it did when newly listed, making selling it even more difficult; and
• New listings can command higher prices. Once a home has been on the market for a while, many buyers and their realtors make lowball offers. Seldom do owners accept these too-low offers, leaving the home on the market even longer.
Some realtors, wishing to help their clients sell their homes, have come up with ways to manipulate their multiple listing service’s computerized tracking features. By pulling the home off the multiple listing service and immediately relisting it, these realtors do several things:
• They reset the “days on market” tracking to zero, obscuring how long it has been for sale;
• Realtors, who also zero out the property ID and tweak the address a bit, ensure that the database cannot track the home as a relisted property;
• Even if the days on market continue to track, many multiple listing services put newly listed (including relisted) properties on their “hot sheets”, making them appear new;
• They can disguise that the previous listing was at a higher price, alleviating the perceived sign of seller weakness by buyers and their realtors;
• Relisting means a seller may not need to lower their asking price, since new listings command higher selling prices; and
• The realtor is ensuring the seller gets another run at competing in the market on a level playing field, since new listings get higher prices and most of the attention of potential buyers.
All of these factors are in the best interest of the seller. Unfortunately, a false sales history puts the buyer on an unequal playing field.
The days on market alerts the buyer and his/her realtor to possible problems with the property. Though many reasons for market longevity have nothing to do with the property, some homes have flaws and issues that make them unattractive to potential buyers. It is easier for realtors to show newly listed homes than to research homes for problems that have been on the market for some time.
To protect yourself, ensure your realtor digs a little deeper when researching the newly listed homes. The agent should investigate the sales history of each home before showing it to you. A diligent and experienced realtor will know what to look for and can spot relisted homes.

How do you hire a full-service realtor and only pay half a commission? It is always surprising when a homeowner is going to hire a realtor® to sell his property, especially when he next complains bitterly about paying 5% or 6% to someone who he believes does little or no work. Usually the seller marks up the property to cover the commission which over-prices the property and the result is it doesn’t sell.

Usually, the commission paid to a realtor® is split equally between himself and his “broker”, who is the licensed agent in charge of a particular firm. If the commission on a sale is $20,000, the realtor® and the broker each get $10,000. Newer methods of payouts to agents include paying “desk fees” to the broker in exchange for higher payouts. For example, if the agent pays $135/month as a “desk fee” he may be entitled to a 95% commission while an agent paying $60/month may only entitled to a 70% payout.

If the agent doesn’t sell the property he listed, but another agent does, the buying and selling brokers each get half of the commission and the 3% commissions are again split with the agent so he gets 1 1/2 % net. So for a $20,000 commission the split looks like – $5,000 each to the two brokers and $5,000 each to the two agents. This is a simplified summary of the process but illustrates the payout procedure. If the agents are on a higher payout because of their monthly desk fees, their portion of the commission is increased and their broker’s portion is reduced proportionally. Industry statistics show that 95%+ of the time the listing agent does not sell the property! So the real money for a realtor is in getting the listing and having another realtor® sell it. The largest commission producers in the industry sell listings and not properties.

The way to save at least half of the realtor’s commission is to list with a flat-fee broker who will list the property on the MLS® (Multiple Listing Service) and Realtor.com® but who does not show the property. The buyer for your property will come from a “buyer’s agent” who brings a client to see your home and make an offer. He is interested in receiving his usual 50% of the full commission or 3% of the sales price. If you offer a 3% commission to the buyer’s agent, you have saved 3% by not having to pay the seller’s agent (listing agent)! In the above example of a $20,000 commission, the agent who brings the buyer still gets $10,000 but you are saving $10,000.

What if you are unfamiliar with the sales and contracting process and you need help? For the $10,000 commission savings you can hire an attorney to review any contract and give you advice usually for less than $500 so you are still ahead $9,500. But better yet, the attorney can give legal advice that your realtor® can not, and you have recourse against your lawyer if something goes wrong.

So to save at least 50% of your commission, should you decide to have a realtor® sell your house, use a buyer’s agent only and offer him a 2.5% or 3% commission. Another unique benefit of only paying a buyer’s agent is that if desperation sets in and you need to sell quickly, you can increase your payout to the buyer’s agent and attract many more buyers than using a seller’s agent. The highest commission seen in the past year is a 12% commission to buyer’s agents for condo units. In the depressed condo market these days, it is not uncommon to see 10% commissions to buyer’s agents. So if you have decided to sell your home on the MLS using a realtor®, you can save substantial money and sell your home faster by focusing on paying only a buyer’s agent to sell your home.

One of the country’s favorite vacation destinations, San Diego is quickly becoming an ideal place to invest in real estate. With an ideal climate and sensational real estate options, San Diego County is the perfect place to purchase or build a new home. Enlisting the help of San Diego County realtors can assist in your search, and make the important decisions regarding a home purchase seem less difficult.

A Glimpse into San Diego County

Home to more than three million residents, San Diego County consists of 18 cities and various neighborhoods. The prominent communities of Delmar, Carlsbad, Oceanside, and Chula Vista are just a few of the areas that compose this outstanding county. Each separate neighborhood holds its own sense of diversity, making San Diego County homes some of the most popular in the area.

San Diego County realtors can inform home buyers about all aspects of the area’s real estate market and housing options. San Diego has an extensive selection of real estate possibilities, and it’s the duty of San Diego County realtors to educate potential buyers on every detail and problem they encounter. San Diego real estate offers a large selection of housing including apartments, modern condominiums, quaint ocean side bungalows and cottages, and the landmark luxury mansion. San Diego real estate widely varies, with prices ranges from $500,000 to more than $12 million. San Diego County realtors can assist each potential buyer in determining their financial means, and what they can afford.

Selecting Proper San Diego County Realtors

Choosing reputable San Diego County realtors is essential when searching for a home. Getting referrals from friends, family, and co-workers is one way to find a realtor that best suits your needs. If you are moving to a new area, ask your local agent to recommend San Diego County realtors who will accommodate your home buying needs.

It’s wise to choose San Diego County realtors before you even begin the search for a house. Realtors cannot only help you in the search for a home, they can also assist in making informed decisions. So it’s an advantage to find San Diego County realtors who specialize in marketing and purchasing, because these professionals carry all of the knowledge that you will need in your search.

San Diego County Realtors Explain Home Buying Process

Knowledgeable San Diego County realtors can prove to be a great benefit in the home buying process. San Diego realtors are trained to assist buyers with any detail imaginable when buying a home. Choosing San Diego County realtors who deal with both listing and selling of properties are ideal, as these agents can deal with every aspect of the home buying procedure.

Starting a career in Real Estate? Need to Generate leads? Although unexperienced, entering the market with the right tools and knowledge will take your jump-start career and take you to the next level.
With over 90% of buyers and sellers, starting the process online, it is no secret that every Realtor have an online marketing strategy to obtain potential clients.
There are 4 pillars of process which must be addressed in order to become successful online. They are:
1. Market Research
2. Product Development
3. Traffic
4. Conversion
1. Market Research – for a Realtor this is an easier task – you know your product. However, you must think of a way to distinguish your product from the competition. This industry is very saturated, and if you don’t stand out you are bound to be average, or out of business. So think of your target market, get specific. Realtors now specialize in areas, sub-areas, type of dwelling etc. For example to survive in the Manhattan market, to really stand out you have to brand yourself. If you were really creative you might brand yourself in a certain area (Greenwich Village), and even more you might be a loft specialist. When any Buyer or Seller is thinking of buying or selling in Greenwich Village you want to be one of the first people that comes to mind, especially when dealing with a loft – you are the authority on the subject. So online, you need to come up with key phrases that target this niche, so when a Buyer or Seller (90% of them) is searching online, your website is at the top of the list!
2. Product Development – you need a product that will lead to traffic coming to your site, and ultimately converting that traffic into a lead, then a deal. Of course many Realtors have blogs and personal websites which are great for personal branding and web presence, but is your name or your company’s name usually typed into a search engine? Most of the time the answer is no. For example, if I want to buy a loft condo in Greenwich Village unless I already have a Realtor (we are not looking for these people) I would type in “Greenwich Village Lofts” or something like this. So to capture the potential clients we are looking for, we need to have that key phrase (our niche) to be a prominent result in search engines. It is the phrase not your name, or your companies name that will produce results.
3. Traffic – here comes your marketing skills. As a Realtor you MUST have them or you are doomed. Niche marketing is likely the most effective and efficient tool for Realtors marketing online. Having niche targeted websites is becoming the future of online marketing for Realtors! Having a personal branded site is important but you also need a website that gets top page rankings for Buyers, and another website that gets top page ranking for Sellers. To obtain this, you need websites that are Search Engine Optimized (SEO) and tailored to your target market. AgentStealth is a company that specializes in this.
4. Conversion – this is what truly matters. All of the traffic in the world means nothing unless you can convert. After some Realtors obtain an online lead, they will offer a free Buyer’s or Seller’s eBook as a way to introduce themselves. When you have reached this point, it’s time to do your job as a Real Estate Professional and provide them with your expertise.
As a Realtor myself I know that the competition is fierce out there, and you always need to be looking to get a leg up on the competition especially if you are a new Realtor. I hope you have found this article informative and wish you all the best in your Real Estate Career.