REAL ESTATE: WHAT BUYERS SHOULD KNOW ABOUT SELLERS

REAL ESTATE: WHAT BUYERS SHOULD KNOW ABOUT SELLERS

The following information is provided by the Center for REALTOR® Development (CRD).

NAR has been administering its annual Profile of Home Buyers and Sellers survey since 1981. The survey has grown from 59 to 131 questions, and gives us great insight into the trends, wants and needs associated with the most significant financial decision of most people’s lives: purchasing a primary residence for themselves and their families.

In this article, we’re going to dig in a little deeper into the findings from the 2018 version of the survey to focus on sellers:

Sellers Are Staying in Their Homes Longer
In the last 30 years, sellers have remained in the same home for longer periods of time. From 1987-2008, sellers stayed in their homes for a median of six years, with the only exception being 1997, when the median tenure bumped up to seven years. After 2008, the median tenure began to increase by one year each year.

By 2011, the median tenure reached nine years, where it remained for three consecutive years, and jumped up again in 2014 to 10 years. It decreased to nine years in 2015, but rose in 2016 to a median of 10 years, where it remained in 2017, effectively doubling since data collection started three decades prior.

It’s not necessarily clear why sellers are staying in their homes longer, but one possibility for some is that they are waiting for their equity to increase, especially given the economic downturn.

Seller Relationships With Agents Are Steady and Strong
Eighty-nine percent of home sellers worked with a real estate agent to sell their home. In addition—same as last year—90 percent of sellers listed their homes on the Multiple Listing Service (MLS), which is the No. 1 source for sellers to list their homes. Only 4 percent opted not to list on an MLS.

Client referrals and repeat business are the predominant ways sellers find their real estate agent. Most sellers—85 percent—said that they would definitely (67 percent) or probably (18 percent) recommend their agent for future services.

Sixty-two percent of sellers were “very satisfied” with the selling process; 26 percent were somewhat satisfied. Only 13 percent were dissatisfied with the process.

Key Skills Sellers Want in Their Agents
Sellers place high priority on the following five tasks: market the home to potential buyers (21 percent); sell the home within a specific timeframe (20 percent); price the home competitively (18 percent); find a buyer for home (15 percent); and help fix the home to sell better (15 percent).

The reputation of the real estate agent was by far the most important factor when sellers selected an agent to sell their home (34 percent). Sellers also place value on the agent’s trustworthiness and honesty (18 percent) and whether the agent is a friend or family member (16 percent).

FSBOs Are Decreasing
In 1981, FSBO home sales accounted for 15 percent of all sales, and agent-assisted sales accounted for 85 percent. FSBO sales have declined over time, and in 2017, FSBOs accounted for 8 percent of total home sales again for the third year in a row. This is the lowest share since data collection began.

FSBOs typically sell for less than the selling price of other homes. For FSBO sellers, those who know the buyer tend to have higher median household incomes compared to those who did not know the buyer. Where FSBO sellers knew the buyer, the time on market for the home was usually a week, and sellers received 100 percent of the asking price.

To learn much more about sellers and seller representation overall, please consider checking out the education, benefits, and resources offered by CRD and its SRS Designation. In July, the featured 25% OFF course at the Center for REALTOR® Development is the Seller Representative Specialist (SRS) Designation Course, which is the basic requirement toward obtaining this credential.

For more information about other courses and programs, please visit the online learning portal from NAR’s Center for REALTOR® Development (CRD) and the Learning Library. Here, real estate professionals can sign up for online professional development courses, industry designations, certifications, CE credits, Code of Ethics programs and more. NAR’s CRD also offers monthly specials and important education updates. New users will need to register for an account.




Jason Grace is AZ Social Realty's content editor. Email him your real estate news ideas at jason@cashbuyerslists.com.







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Running Your Business Like a Business

Running Your Business Like a Business

RECBL - Real Estate News

The following information is provided by the Center for REALTOR(R) Development (CRD), with assistance from Lauren Hampton and the Podfly editorial team.

Running your business-like a business-is crucial for getting maximum value out of it, and your efforts. As REALTORS(R), it is crucial to plan and be wise, and to think of yourself as a business owner at all times.

Episode eight of the CRD Podcast is the first of two episodes that explore different aspects of business planning for real estate professionals. Part one is a one-on-one by host Monica Neubauer and an industry expert.

Part two, which will release later this month of December, will be a panel discussion, so you can hear some different opinions on the same topic from peers.

Neubauers guest for episode eight is Mark Given. Given has been teaching real estate courses nationally since 2004. He has been president of and served on numerous committees for REALTOR(R) Associations at the national, state and local levels. In addition to his speaking, teaching, and volunteering careers, Given is a prolific author. Given has a book series about his trust-based business philosophy, and has also co-written four other books. His weekly blog, "Marks Minute," is read by thousands-you can sign up to get on the list on his website. Before launching his real estate career, Given spent 20 years as CEO of a multi-state retail sales and rental company.

Given and Neubauer talk about a number of things that should become part of your business plan: finding a mentor, how to foster a good broker relationship, and the cost of training (or not getting trained) in several areas, as well as niche positions in the market and keeping up with your past clients. They also discuss aspects of building a team and being proactive in your business. Below are some of the highlights and key ideas from the discussion.

Find the right brokerage for you. One of the first things a new agent has to do is find a brokerage firm. You need to find a good fit with your broker, so they can help nurture you and gain momentum. Look for a brokerage firm that has potential mentors, a good educational program, and a culture that connects with who you are. Looking for mentors both within and outside the company is important in getting honest answers to some important questions. Learning to ask good questions is a huge part of the real estate industry.

Budget for periods of uneven cash flow. Understanding the money aspect of real estate is important in showing a profit and actually making money in your business. You likely won’t be closing on any deals right away, and you have to budget for the periods of time that you don’t have any revenue. Some expenses include gas, marketing, MLS and association fees, and other additional business fees. Taking a class that talks about the cost of running your business is a great idea for new agents-you don’t want surprises that might cause stress that would prevent you from performing at your highest level. You also don’t want to get ahead of yourself; don’t spend your earnings before you make them!

Don’t skimp on training. Training should be part of your business plan, as well-and not only for new agents. There is always new information to be learned. It is very beneficial to do more training besides what is required for your continuing education. This can help grow your own confidence, and make your business more successful.

Find your special niche. Most agents run their real estate business as generalists. There are plenty of agents who succeed running their business this way, but Given has found that agents that take the time to specialize in a given niche often become the "go-to" person for that niche. If you’re going to run your business like a business, it’s in becoming really good at some part of a business that you become recognized as the best person for that part.

"Pick a niche and get really good at it and all of a sudden your business can really explode," explains Given.

Develop systems to help your business run more smoothly. It is crucial for people running a real estate business to have better systems. Some of these systems include contact management systems or systems that track your business profit. Your management systems are only as good as the information you put in them. You need to have some systems in place to make sure you’re doing things in a timely manner, and following up with your clients. There are many companies that already have these systems in place-take advantage of them! Start your day by making a plan for what you need to get done that day.

There is quite a bit more helpful information covered in episode eight, and we invite you to check out this particular episode, as well as the seven that came before it, at www.CRDpodcast.com, or wherever you sign up to listen and subscribe to your favorite podcasts. Our goal with the podcast is to support and broadcast great conversations (in a free and easily-accessible format) between and for real estate professionals who want to always keep learning and continuously elevate their practitioner skills.

The Center for REALTOR(R) Development podcast is sponsored and supported by NARs Center for REALTOR(R) Development, an online learning platform designed specifically for REALTORS(R).

For more information, please visit the online learning portal from NARs Center for REALTOR(R) Development (CRD)and the Learning Library. Here, real estate professionals can sign up for online professional development courses,industry designations, certifications, CE credits, Code of Ethics programs and more. NAR's CRD also offers monthly specials and important education updates. New users will need to register for an account.

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Better Your Business: Become a Real Estate Resource for Seniors

Better Your Business: Become a Real Estate Resource for Seniors

RECBL - Real Estate News

NARs Seniors Real Estate Specialist(R) designation draws attention to an aging demographic. As a real estate agent, you may be focused on wrangling in younger clients-millennials making that first big home purchase, or those looking to jump from their starter home to their forever home. But real estate professionals fixated on younger clients alone are missing out on a major demographic that needs attention: seniors.

"Our country’s population of older residents has grown significantly over the past several decades," says Chris Read, a broker/owner in Illinois.

Read notes that according to the United States Administration of Aging, the number of residents who are 65 and older will more than double by 2040 to represent 20 percent of the nation’s population.

"To meet the special housing needs of our maturing population, REALTORS(R) need special knowledge and expertise to appropriately counsel clients with major lifestyle changes associated with seniors," says Read.

But what exactly are these senior-specific housing needs? Think tax and legal matters, retirement challenges, exploring assisted living options and understanding how to search for properties that allow independent older clients to age in place.

How can real estate professionals work to meet these needs? The answer is the NAR Seniors Real Estate Specialist(R) (SRES(R)) designation, which provides the knowledge and resources needed for agents to offer a better level of counseling for senior clients.

"The SRES(R) designation provides the awareness and knowledge of issues facing seniors, in addition to a multitude of resources for client solutions and assistance," says Read, who was named the 2016 REALTOR(R) of the Year by the Illinois Association of REALTORS(R).

"Knowledge is power," notes Read. Understanding the issues 21st century seniors face will place you ahead of your competition, draw in more business, and allow you to better serve your senior clients by customizing your services as needed. "Many housing and service organizations will market contact info for the SRES(R) member. It’s a symbol for competency, awareness and skills in navigating a senior through the process of relocating."

To earn the SRES(R) designation, a licensee must be an active member of the National Association of REALTORS(R) (NAR). Following that, you must become an active member of the SRES(R) Council, and complete the two-day designation course-available online or in a classroom. "I completed the course online within one week, stopping and starting as my schedule permitted," says Read.

Read is far from the only real estate professional investing in the senior population. The Senior Services activities of both the Mainstreet Organization of REALTORS(R) and the Illinois Association of REALTORS(R) have been making large moves to support seniors in housing. With a membership of 17,000-plus, the Mainstreet Organization of REALTORS(R) is the largest local association in Illinois, and its Senior Service committee is comprised of REALTOR(R) members maintaining the SRES(R) designation whose business focuses on servicing the senior demographic, explains Read.

The committee’s goal is to provide education, share resources, create tools, promote advocacy and give support to seniors and their communities. In the past, the organization has sponsored senior expos and seminars on powers of attorney, senior housing options, de-cluttering, senior fraud protection and preparing for the future.

Through these services, the organization not only supports their senior community members, but directly connects them with SRES(R) designees who can meet their needs, driving business for the agents, and a higher quality of aging for the community’s seniors.

For more information, please visit www.seniorsrealestate.com.



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Bigger Isn't Always Better

Bigger Isn't Always Better

RECBL - Real Estate News

The National Association of REALTORS(R) reported that existing-home sales finished 2017 at 5.45 million, up from 2016 (5.25 million) and the highest since 2006 (6.48 million).

This was certainly good news for the health of our industry, but creates a math problem for those keeping score on the leading real estate portals. How? Let’s run the numbers.

​With about 5.5 million homes sold in a year, that means there are 11 million sides to a completed transaction.

If we assume that there might be two partners on each side of the home-buying and -selling process, then we have a total of 22 million actual participants in a completed existing-home transaction-in a full year. That begs the question: What are 180 million unique users doing on the largest real estate portal brands websites-in a month? We can safely draw the conclusion that most of them aren’t buying and selling a home this month, or next month, or even this year. Trying to find an actual consumer with intent to buy or sell a home in a sea of more than 100 million users per month can feel like looking for a needle in a haystack...and might yield diminishing returns for brokers and agents who advertise on these sites.

Which is why at Homes.com, were not focused on generating a bigger and bigger audience; were focused on delivering the right audience-a transaction-ready consumer for faster conversion to a closed transaction. Through the second quarter of 2017, we’ve averaged around 9 million unique visitors per month, a number that aligns well with the actual number of active homebuyers and sellers in a month. And these visitors are actively looking to buy, rent and sell homes, not browsing home value estimates or looking at home design styles. Over 90 percent of page views on Homes.com occur in our Homes for Sale or Rent sections.

One key to the high-quality traffic on Homes.com is how we source our users. We don’t spend money to advertise on broadcast and cable television, where the majority of viewers aren’t currently in the market to buy or sell a home. Nearly 90 percent of our traffic is organic-either users typing Homes.com directly into their browser or finding Homes.com via natural search results on Google or Bing, often searching "homes for sale" in a particular city, zip code or neighborhood.

Another key to quality traffic is providing an outstanding user experience. The most important component of the real estate search experience is the quality of the property data. Local MLSs are the best source of local listing data, which is why we work closely with local brokers and MLS executives to earn the right to display the content you work so hard to generate. We know we aren’t entitled to your data, and that we must earn your trust by doing what’s right. That’s why, for example, listing agents always receive all leads from their listings on Homes.com, whether they’re a paid advertiser with us or not. I encourage you to ask your other real estate portal partners if they do that.

Speaking of quality user experience, well be unveiling some exciting changes to Homes.com in the coming weeks. We’ve been hard at work building the most engaging and user-friendly home search site available, and were just about ready to share it with the world-but you still won’t see us advertising it on TV. Instead, well be targeting actual homebuyers and sellers, connecting them with the best brokers and agents in our industry.

We won’t be chasing the biggest audience-just the most transaction-ready.

David Mele is president of Homes.com.

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Home Giveaway Sweepstakes for Military Service Members and Veterans

Home Giveaway Sweepstakes for Military Service Members and Veterans

RECBL - Real Estate News

Realtor.com(R) and a national lender have launched the $250K Veterans Day Home Giveaway Sweepstakes, which will award up to $250,000 toward a home purchase to one U.S. military service member or veteran, realtor.com recently announced.

Veterans and current members of the U.S. armed forces are encouraged to enter the sweepstakes. Entries will be accepted until Oct. 29, 2017 at 11:59 p.m. ET at www.realtor.com/homegiveaway. Veterans United anticipates announcing the winner on or about Veterans Day (Nov. 11, 2017).

"We all owe so much to the incredibly courageous men and women who protect and defend us in the armed forces," says Raymond Picard, executive vice president of Sales for realtor.com. "It will be an honor to have a role in giving the gift of homeownership to one of those service members; their commitment and sacrifice are what makes the American Dream possible for any of us."

The sweepstakes is open to active or honorably discharged Veterans of the U.S. military. The winner will receive $250,000 (less tax withholding) at the closing of a home purchase transaction. Full prize details, conditions and sweepstakes rules are available at www.realtor.com/homegiveaway/rules.

For more information, please visit www.realtor.com/homegiveaway.

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NAR Calls for NFIP Extension Ahead of Expiration

NAR Calls for NFIP Extension Ahead of Expiration

RECBL - Real Estate News

The National Association of REALTORS(R) (NAR) is calling for a "short-term extension" of the National Flood Insurance Program (NFIP), which is set to expire September 30.

The extension will allow for continued work on the 21st Century Flood Reform Act.

"The country has been here before, and we know what happens if the National Flood Insurance Program expires," said NAR President Bill Brown in a statement.

"Home-buying activity grinds to a halt, to the tune of 40,000 lost or interrupted sales every month. Meanwhile, existing homeowners as well as commercial entities may find their largest asset unprotected if the Federal Emergency Management [Agency] can’t renew NFIP policies that expire.

"Consumers and homeowners alike deserve certainty," Brown said. "With Congress returning from August recess [this week], extending the NFIP to avoid a lapse should be a top priority. Doing so will afford Congress the time necessary to finish work reforming and reauthorizing the program.

The House Financial Services Committee has passed vital, long-term reauthorization legislation, which would strengthen the NFIP. These critical reforms are a long time coming, and we look forward to working with the House and Senate pass the 21st Century Flood Reform Act once the threat of a lapse has been addressed."

For more information, please visit www.nar.realtor.

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