New Jersey Estates/Weichert Realtors/ NJ Luxury Real Estate/ New Homes: April 2008

Real Estate Marketing Strategies - Getting Your Clients to Buy Now!

Have you been feeling frustrated at clients who don't seem to be able to make a decision? At the beginning they seem interested in buying, either they've contacted you or you contacted them. Then as they see some homes may begin listening to the news about today's marketplace, they start to get cold feet.

They don't return your phone calls or e-mails, and when finally reached they say, "I'm not sure this is the best time to buy. I've heard prices may get lower."

At this point you can either get exasperated and give up or you can give them a good reason to buy now, one that they can't refuse.

This is a simple 3 step process:

First, say to them, "Did you know that Donald Trump is buying up as much real estate as he can right now?" Client, "No, really? Why?" You respond with, "Donald Trump is a very smart businessman, wouldn't you say? What he knows that other people don't know is that this is the best time in history to buy. Prices are at an all-time low and so are interest rates. It doesn't get any better than this. So he is getting great deals all over the place." After this, your client will probably say, "Wow, I didn't know that." You respond with, "If you're excited about this, then let's get you a deal."

Notice the invitational quality of your last statement. Who can resist a deal? Isn't this an irresistible statement? You are offering to partner up with them to help them make money.

Watch how quickly your previously "indecisive" clients, start taking action. You've done your job to tell them the facts. You've backed that up with an offer to help them make money in the same way that Donald Trump is making money. There may be objections that come up.

Here is the KEY: if you are convinced that this is the best time to buy, then they will be too. People can sense the depth of your conviction, so convince yourself first and then you will be attracting your ideal clients.


Written by Dr. Maya Bailey
April 29, 2008 

Regional Report: Northeast

According to the National Association of Realtors, sales of existing homes in the Northeast could be on the rebound.

Existing-home sales dropped 6.5 percent in the Midwest last month, their report says, and 3.5 percent in the South.

But sales rose 2.2 percent in the West and Northeast, and according to some agents in the Northeast, their market is getting along fine.

Dody Whitehurst of Darien Connecticut says Spring is here and new listings are coming on the market daily, and demand remains high given the city's close proximity to New York City and local airports.

Brian Parkes of Ridgewood, New Jersey says that if you're planning to put your house on the market any time soon, be sure to talk with a professional first.

Condition sells, he says, and the best thing to do is price your home right and make it shine.

And moving on to Poland, Maine, market expert Linda Beaulieu says the lack of speculative buying during the boom years kept her market from going bust.

Her market is remaining steady given in part to Maine's stable economy, and though sales were down over the winter, prices have only dropped a slight 2 percent.

That's it for today's Northeast report. Be sure to check back for information on your regional market.


April 25, 2008 

Real Estate Outlook: Index Says Positive Growth Underway

You might not hear much about them on TV or in the papers, but there are some economic signs popping up right now that are -- at the VERY least -- encouraging for housing and real estate.

Take the gold standard of all forward indicators for the U.S. economy -- the Conference Board's "Index of Leading Indicators," which is based on a broad survey of industry data and predicts economic activity three to six months down the road.

The latest Conference Board index registered its first increase in six months. Now I know that all we hear about these days is recession: it's either already here or it's about to happen.

But the index suggests that there should be positive growth underway in the second half of the year, if not sooner.

Buttressing that forecast is a new report from the National Bureau of Economic Research which found that industrial production in the U.S. showed an unexpected uptick in March.

Here are some other noteworthy developments this past week:

• Applications for mortgages to buy houses were up again, it was the second straight week, according to the Mortgage Bankers Association of America's national survey. Applications for FHA loans to buy houses jumped by three and a half percent -- and conventional purchase applications rose 2.1 percent.

   

• The federal government reported that house prices nationwide stopped their slide between January and February -- and actually increased by six tenths of one percent.

   

• Interest rates remain well under 6 percent, according to the Mortgage Bankers, with 30-year fixed rate loans last week averaging 5.74 percent and 15-year loans at 5.27 percent. The Federal Reserve is likely to knock another quarter percent off short term rates next week.

   

• Freddie Mac announced plans to pump up to 15 billion dollars into the "jumbo conforming" loan market -- those are for high cost areas that really need some stimulus right now, like California.

Now, we're the first to admit that these positive-sounding economic developments are not ballgame-changers for real estate.

We've still got lots of housing inventory to sell before calling an end to the down cycle -- and total sales dipped 2 percent in March, according to the National Association of Realtors.

We're still dealing with a lack of confidence on the part of some consumers who are afraid that maybe prices still have a ways to fall.

But here's the point: It's undeniable that there are some glimmers out there that the underlying economy and financing marketplace, which after all are what support real estate activity, finally may be headed in a positive direction.


Written by Kenneth R. Harney
April 24, 2008 

Should The FHA Own Part Of Your Home?

With the mortgage meltdown showing few signs of resolution, a new idea has emerged in Washington: Let the FHA get a piece of the action.

The proposal by Rep. Barney Frank (D-MA), chairman of the House Financial Services Committee, would open the FHA program to large numbers of homeowners who are now stuck with toxic loans. You can bet there's a lot of risk in such refinancing, so much risk that the traditional mortgage insurance premium charged under the FHA program could be insufficient to cover all losses.

To make the program financially viable, Frank suggests that the FHA should get a piece of the action: Under his plan, H.R. 5830, there would be a declining percentage fee on any profits to discourage short-term speculators. The fee would be equal to 100 percent of all profits in year one, 80 percent in the second year and so on for the first five years. After five years there would be an "exit" fee equal to 3 percent of the sale price.

Normally you would look at the Frank proposal and say no chance. But we do not have a normal mortgage marketplace: A lot of people are in financial trouble and getting 97 percent of any profit after five years is a lot better than facing the total loss of equity that a foreclosure would represent.

Under the Frank plan mortgage investors would also face losses if their mortgages were refinanced under the FHA program. But even for investors it's better to have a limited loss rather than the massive write-offs associated with foreclosures.

What Rep. Frank proposes will be painful for both lenders and borrowers, but the voluntary efforts trotted out by the Administration and the bloated claims by HUD for its FHASecure program have done nothing to stem the foreclosure tide. The Frank proposal is not a free pass for borrowers and not a give-away to lenders, reason enough to take it seriously.

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Spectacular Marketing Campaign

Over the years, I've had the opportunity -- sometimes painful -- of seeing many different agents' marketing campaigns. I've seen photocopies of letters that looked like they were typewritten during the Lincoln administration. I've seen garish photographs of agents that would scare away Canadian geese. I've seen postcards printed with such bad ink that a light rain turns them into a finger-painting.

I've seen a lot.

But I've also seen some truly spectacular campaigns. I define a spectacular campaign by not only considering how pretty it is or how well-written it is, but what kind of results did it get? Today I'd like to discuss what makes a spectacular campaign -- one that gets results. What are the common denominators of a spectacular marketing campaign?

Here's what works:

1. A strong headline.

Marketers have known for over a hundred years that the most critical element to a good advertisement is the headline. This is the "make-it-or-break-it" element that hooks the reader into reading the entire ad. Some famous advertising copywriters spend 90 percent of their time coming up with the headline and 10 percent of their time writing the ad itself.

Why is the headline so important? Because you must always assume your reader is busy and won't automatically read the article. A headline lets them know whether or not this is something they want to read.

What's the first thing you do when you pick up a newspaper? You scan the headlines first, right? It's an automatic human behavior. Then, you read the stories that most interest you or may have an impact on your life. You skip the ones that mean nothing to you. The headline is like the "ad" for the article. In an advertisement, the headline is the "ad" for the ad itself. In your marketing materials, the headline is the "ad" for the rest of the information you're sending.

What if they don't read your information? No problem. By sending them an industry-specific problem-solving article, you've now established yourself as an expert in their mind just for having sent one -- so when the time arises that they need help, BOOM! They think of you. After all, you must be an expert if you're writing about it, right? This is how it works in their mind.

Your headline need not be long. Short, sweet, and expressive is good. Scan your local newspaper for examples. The next time you're in the supermarket, look at the attention-grabbing headlines on the magazines at the check-out line. The people that write them get paid big bucks to write those handfuls of words just so you'll plop down four bucks for that magazine.

2. Send out only material on which you are an EXPERT.

A huge mistake many agents make is to send out too much information on too many subjects. Mortgage rates. Home decorating concepts. Lifestyle ideas. Health stories. How to "de-stress" articles. These things devalue your expertise because it's obvious you're not an expert in each and every one of them.

You're much better off picking one area in which to specialize -- then sending out regular information on that particular subject, delving deep into it to show that you are the "go-to" person in this area.

This is known as "niche marketing." I constantly advise agents to specialize in a particular niche, examples of which could be:

• Helping "empty-nesters" find smaller homes for their retirement years.

   

• Specializing in two-income couples who want to live in comfort, but not too far from the action of the city.

   

• Helping real estate investors find potential "rehab" properties.

   

• Locating oceanfront property for multi-millionaires.

I just made these up on the spot. I could come up with fifty more in two minutes. What area of real estate do you want to be an expert in? Become "master" of that niche and you are bound to succeed.

You may be thinking, "But Denise, if I appeal to only a very narrow demographic of people, then I'm not reaching a large enough target audience. I'll go broke."

On the contrary, you will find more success over time. Recognized experts in certain specific fields always command larger fees than "generalists." The same holds true for real estate.

Agents who become known for helping one target group buy and sell property achieve success because people in that group tell their friends -- who are also members of that group. Never underestimate the power of being a highly specialized expert.

3. A professional look.

Quality does count. If you haven't put in the effort to make yourself look like a true businessperson, what message are you sending? You're telling the world that you aren't serious.

Here's a general rule of thumb: If it looks like you printed it on your home printer, don't send it! You absolutely need a professionally designed, packaged, and printed "look" that makes you stand out from the crowd.

Now, I know you want to find ways of doing this inexpensively, but let me ask you, "Are you serious about your business? Or are you just dabbling?" If you're just dabbling, then you're probably not reading this newsletter. If you're serious, then you know that before you do anything as an agent, you need a professionally designed image that is bold and memorable. In order to do so, unfortunately you're going to have to spend the money.

By all means, shop around. But don't let a high-school student, your second cousin's best friend, or other amateur handle your most valued possession as a real estate agent - your image. Ask to see what the designer has done for others. Better yet, ask to see the results their work has produced for others.

4. Include ALL of your contact information.

I recently received a glossy colorful postcard at my office promoting a new home community. I was drooling. The pictures were gorgeous, the message was impressive, and I immediately wanted more information.

But guess what? No phone number. No e-mail address. No website. Just an address. These people are making it very hard for people to make the next step. If I want more information, I shouldn't have to drive the thirty minutes to get there. You should always make it easy as possible for your customers to find out more about your products and services.

And please proofread your material before you send it out. You wouldn't believe how many people send materials with typos, incoherent headlines, wrong phone numbers, and sentences with bad grammar. Have a second pair of eyes look over your stuff before you send it to the printer. It's not the printer's job to find your mistakes - it's yours!

5. A good photograph.

You'll hear some marketers put down the value of a picture, but in real estate it's mandatory. This is a person-to-person business. Your photograph transmits your interest, professional appearance, and energy through your materials.

Look at the ones at the bottom of this e-mail. You can "feel" what The Lones Group is all about by the warmth projected by all of our smiling faces. Always remember that your business is you - not your computer, not your office, not your company's clever slogan. It's you. People do business with other people who generate warm feelings within them. A strong photograph is the best way to start this process in your marketing materials.

Keep these five principles in mind when building your spectacular marketing campaign. Truthfully, there's no other kind. If it's not spectacular, it's not marketing.


Written by Denise Lones
April 22, 2008 

Hot Market: Buffalo Planning for Future

With a new master plan in place, called the Framework for Regional Growth, the Buffalo/Niagara Falls, New York region is poised for economic growth as they face the end of the first decade of the 21st century.

Business leaders helped create and promote passage the new economic blueprint, which is the first master plan written for the region in more than 30 years. The Buffalo Niagara Partnership, a consortium of business groups in the region, was the driving force behind the initiative, which "strategically focuses development in the areas where infrastructure already exists, halting our long-running trend of growing outward geographically while shrinking in population," according to a report form the Partnership published earlier this year.

Whatever the plan calls for seems to be working as home prices have continually increased in the Buffalo/Niagara area, according to the Buffalo Niagara Association of Realtors. Single-family homes have again increased in value for the fourth quarter of 2007 at more than 9 percent to a median price of $105,000.

Prices have increased steadily in Buffalo and surrounds year after year, even during the latest national down turn. In the last three years, appreciation rates increased at 5, 11 and now 9 percent, year of year, demonstrating a healthy real estate market in a community that has most recently taken economic growth seriously.


Written by M. Anthony Carr
April 18, 2008 

Real Estate Outlook: Spring Market Warm, but Consumer Confidence Low

The economic outlook for real estate is never just black and white -- you've got to look at the encouraging signs -- along with the bleak -- if you want a realistic picture.

Take this week's mortgage market numbers: Applications for purchases of homes were up 8.1 percent last week, according to the Mortgage Bankers Association of America's national survey. Purchase applications using FHA-insured mortgages -- the hottest game in town -- were up by 15.2 percent!

Part of the reason for the application jump: Mortgage rates continue to hover just half a point over 40-year lows. Fixed rate, 30-year loans last week averaged 5.78 percent, according to the survey. Fifteen year fixed rates averaged just 5.39 percent.

Still another positive sign: the University of Michigan's latest national study of consumer sentiment found that the percentage of households who believe that homes are attractively priced hit a record high.

The Spring market looks like it's really warming up. Who knows, maybe we're finally turning the corner.

But there's a flip side. The same University of Michigan survey found consumer confidence at a 26 year low! People are worried about recession, about losing jobs. Expectations haven't been that grim since the 1981-82 recession, according to the pollsters.

Here's another troubling development taking shape: Condominiums are about to get tougher to finance. That's partly because of new rules from Fannie Mae and Freddie Mac requiring lenders and mortgage brokers to do extensive and time-consuming research on condominium projects -- things like a project's legal documentation, operating budget, percentage of units behind on condo association fees and percentage of space allocated to commercial uses -- all this before even submitting a condo unit loan application.

Some brokers tell Realty Times they don't have the time or staff to review hundreds of pages of legal documents and operating budgets. Plus they're unhappy that Fannie and Freddie want them to assume all the legal and financial responsibility for the accuracy of the documents, budget figures and the like.

On top of this, some mortgage insurers are tightening up on coverage of condos. One major insurer, United Guaranty, won't even look at applications on condo units after May 1 if they're located in hundreds of "declining" area Zip codes around the country. Other insurers are raising the down payment minimums on condo unit mortgages, making it tougher to buy one if you're short on cash.

So it's a mixed-bag forecast. Consumers do see excellent opportunities in home buying right now. And yes, the mortgage money is there for them at great rates ... . But financing a condo could be tougher than you expected.


Written by Kenneth R. Harney
April 17, 2008