Updates from May, 2012

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  • Harmful Effects from Changing the Listing Price?

    9:25 am on May 24, 2012 | Comments:0
    Tags: list price, price reduction, ,   Filed under: Agent information, Best Practices, Consumer news and advice, pricing, Seller Info, The Housing Market

    by Ken H. Johnson on May 23, 2012

    This is a post we originally ran this time last year by Ken H. Johnson, Ph.D. — Florida International University (FIU) and Editor of the Journal of Housing Research as our guest blogger. To view other research from FIU, visit http://realestate.fiu.edu/. - The KCM Crew

    The Research 

    Are there any negative effects from changing the listing price of a property?  This question haunts Brokers/Agents as well as sellers of property every day.  At present, there does not seem to be a consensus answer to this question within the professional real estate community.  Fortunately, this question was scientifically investigated by John R. Knight. Unfortunately, few know the results of Professor Knight’s research.

    In Knight, the impact of changing a property’s listing price is investigated.  Additionally, the types of property that are most likely to experience a price change are also estimated.  (More …)

     
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  • Three Economic Factors Every Agent Should Track

    2:42 pm on December 15, 2011 | Comments:0
    Tags: , , ,   Filed under: Agent advice, Agent information, Best Practices, economy, The Economy, The Housing Market

    December 9, 2011

    Most agents are well versed in the local information and news that affect their neighborhoods. But, the national stats and over-simplified headlines make it hard to keep up with what’s really happening in the big picture.

    Here are a few key indicators and some expert advice on what they mean for today’s markets from Trulia’s Chief Economist Jed Kolko.

    Unemployment among 25-34 year-olds & future housing demand

    Many life changes happen for young adults between the ages 25 and 34 that affect housing. From developing careers to making decisions about marriage and households, Jed Kolko, Trulia’s Chief Economist says, “A key measure for housing demand and homeownership is the unemployment rate for this group and the share of this age group that is employed.“

     In a recent post on Trulia’s Insights Blog, Kolko offered a great example of how Unemployment for this age group has affected home sales:

     “During and after the recession, household formation dropped for this age group, and more of them than ever are living with parents or other adults rather than renting or owning their own place. These folks will wait to form their own households and consider homeownership only when their job prospects improve.”

    Local construction activity & spending

    You don’t have to be an economist to understand the impact of shifts in housing supply and demand. The more supply of a certain item exists, then each individual item is less valuable to buyers.  For example, if there is only one Nintendo Wii left on the shelves, people would be willing to pay more to have it versus if there were hundreds available.  That’s why Kolko says it’s important to watch your local construction trends:

    “New construction activity is a good cue to what’s going to happen in your local market: more new construction today will mean more inventory for buyers or renters — and more competition among sellers or landlords — in the near future.”

    Those effects clearly relate to prices, but construction starts don’t just mean increased inventory but they also have a spending effect. Kolko says, “New construction puts more money in the hands of workers – and their incomes will kick-start spending that will boost demand for housing.”

    Vacancy rates and price changes

    Most agents know, vacancy rates mean housing supply. Smart agents know these vacancies affect home prices. But, by how much?

    Kolko says, “The effect of vacancies on nearby home prices is strong: one academic study estimates that a vacant home can lower the price of nearby homes within 500 feet by as little as 0.7% and as much as 10% — depending on whether the vacant home is a foreclosure or just neglected.”

    When you see the housing statistics, whether national or local, remember that the story and the effects are often deeper than simple numbers. To get updates on the latest housing statistics and explanations you can understand, check out more from Jed Kolko on Trulia’s Insights Blog.

    About the author

     
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  • Myths: The Earth Is Flat and Newspapers Sell Houses

    3:23 pm on November 16, 2010 | Comments:0
    Tags: , , , , , , , , ,   Filed under: Agent advice, Agent information, Best Practices, Buyer Info, Consumer news and advice, Listing Presentation, NAR, National Association of Realtors, Newspaper Industry, People, Seller Info, Web

    by The KCM Crew on November 16, 2010 · 

    It is amazing how masses of people can believe something that is absolutely untrue. The greatest example of this is that at one time the vast majority of people believed the world to be flat. Today, we want to debunk another commonly held belief – that newspapers sell houses. Somehow this notion gained believability even though the facts consistently prove it to not be true.

    We should know what methods perspective purchasers use to find the home of their dreams when we are selling our house. That would enable us to develop the best marketing strategy to attract a buyer. The National Association of Realtors (NAR) has just released the 2010 Profile of Home Buyers and Sellers*. This report is recognized by most as the best compilation of data on today’s buyers and sellers because of the enormous amount of data available at NAR’s fingertips.

    Let’s look at the actual search habits of today’s buyers as reported by NAR:

    It might interest everyone to know that less than 2% looked in newspapers, magazines or home buying guides when starting the search process. What do most buyers do?

     

    We can see that buyers today want to explore their options online (combined 47%) or check with industry professionals (combined 27%). You might be ready to argue that the use of the internet is a new phenomenon over the past year or so. However, the report looks back over the last nine years. Though it is true that the percentage of those using the internet has dramatically increased (from 8% to 37%), it might interest you to find out that even back in 2001 only 9% of buyers found their home through print media (again, that number is now 2%).

    If you want to develop a great marketing strategy to give your house maximum exposure, forget newspapers and look toward the internet. Where on the internet? The NAR report breaks down the most searched web sites this way:

     

    The buyer is attracted to the type of sites that have the greatest number of listings. These sites are normally generated by the real estate industry. You should make sure your home is on as many of these sites as possible. That will give you the best chance of attracting your buyer.

    Bottom Line

    Print media never was a great way to market a house for sale and its effectiveness is diminishing each year. Meet with a local real estate professional and put together an internet marketing strategy worthy of your home.

    http://kcmblog.com/2010/11/16/myths-the-eart-is-flat-and-newpapers-dont-sell-houses/

     
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  • 8 Reasons Why E-mail Marketing Works

    9:21 am on November 9, 2010 | Comments:0
    Tags: , , , business developement, , ,   Filed under: Agent advice, Agent information, Best Practices, Business Development, social networking, Technology, Web

    By Wendy Lowe

    RISMEDIA, July 26, 2010—Mention e-mail marketing to real estate agents and you may find that many are still hesitant to move away from their tried-and-true snail mail methods. Others, however, are rapidly discovering that e-mail marketing is just about one of the most effective means of generating sales.

    Want proof? When Shop.org surveyed retailers for their State of Retailing Online 2009 report, they found that e-mail was the most-mentioned successful tactic overall. The Ad Effectiveness Survey commissioned by Forbes Media in February/March 2009 placed e-mail marketing second only to SEO for generating conversions. And, research conducted in 2009 by the Direct Marketing Association (DMA) demonstrated that e-mail out-performs all other forms of direct marketing.

    The bigger question, of course, is why? Out of all the hundreds or even thousands of messages consumers are exposed to each day, why is e-mail marketing so effective?

    There are several reasons, and real estate agents who embrace these principles will quickly find themselves joining in the chorus of praise. (More …)

     
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  • Real Estate Marketing Strategies: How to Stay Positive No Matter What

    9:14 am on November 2, 2010 | Comments:0
    Tags: , , , ,   Filed under: Agent advice, Agent information, Best Practices, Business Development, Motivation

    By Dr. Maya Bailey

    RISMEDIA, October 28, 2010—It is more important than ever that we find ways to stay positive, especially as we continue to make our way through today’s real estate market. Your success depends on your mindset, not on the economy or the marketplace. How do I know this to be a fact? I’ve interviewed hundreds of top producing sales people all over the U.S. and Canada, and when I asked them the secret to their success, unquestionably and without a doubt and independent of each other, they all said the same thing, “my mindset.”

    These are top producing sales people that have been in the business for 10, 20, or even 30 years. They’ve been through up times, down times, and all kinds of different markets, and they said without a doubt it was their mindset .When times get tough, people start to look outside of themselves for answers and what they really need to do is look inside themselves and ask themselves the question, “How can I stay positive, how can I stay hopeful, how can I stay optimistic?” (More …)

     
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  • KMC Quick Tips

    1:29 pm on October 26, 2010 | Comments:0
    Tags: , , , ,   Filed under: Agent advice, Agent information, Best Practices, Business Development, Motivation

    NOTICE: In an effort to better the offerings of KCM, this free monthly newsletter will now focus on what each real estate professional needs to be doing right now in order to stay ahead. Each month we will give you 5 Quick Tips to help you achieve success in your market, as well as some inspirational words to keep you going. Therefore, we have decided to rename it KCM Quick Tips. If you are looking for more news-related articles, hop on over to The KCM Blog, and if you’re interested in seeing more visuals that you can share with your clients, discover the benefits of a KCM membership. (More …)

     
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  • Tips to Put a Successful Prospect Marketing Plan in Place

    10:49 am on September 14, 2010 | Comments:0
    Tags: , ,   Filed under: Agent advice, Agent information, Best Practices, Business Development

    By Brian Wildermuth

    RISMEDIA, September 14, 2010—What are you doing to prospect for new business? When I pose this question to brokers and agents, I usually don’t get a concise response. I usually hear a laundry list of things that agents are trying to do or would like to do, but no actual plans.

    I understand why and can’t help but sympathize. I started working in sales when I was 18. That impulse to try anything and everything that might work is strong, but after all my years working in the trenches, I can tell you one thing for sure—having a real plan to prospect for new clients is much easier and has a much better rate of success. (More …)

     
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  • Success Strategies for September 2010

    12:44 pm on August 31, 2010 | Comments:0
    Tags: , , ,   Filed under: Agent advice, Agent information, Best Practices, Business Development

     
      
    August 2010 by The KCM Crew
     
    1. Realize demand will increase.

    The lull in buying activity that many parts of the country experienced this summer will not continue into the fall. Purchasing activity drops every summer. The tax credit also pulled demand forward from the summer months as people shopped early in order to qualify for the $8,000 or $6,500 credit that was available prior to June 30th. The fall market always outperforms the summer market. Buyers will return. Be prepared for them. (More …)

     
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  • When it Comes to Branding, Get Real

    10:04 am on August 31, 2010 | Comments:0
    Tags: , , , ,   Filed under: Agent advice, Agent information, Best Practices, Business Development, Marketing

    RISMEDIA, August 28, 2010—The term branding is certainly no stranger to the real estate industry. But in 2010, the concept of branding has evolved…because America has evolved. As economist John Tucillo recently said at RISMedia’s Social Media Summit, the number one trend in America right now is skepticism and the result has been an increased degree of speculation in all types of decision making…including selecting a real estate associate or company to work with.

    Thanks to social media and social networking, branding is morphing and taking on an additional life. As the “Socialnomics” video Allan Dalton showed during the Social Media Summit pointed out, “word of mouth is now world of mouth.” When looking at the building blocks of effective branding in today’s culture, the very first thing to consider is that communication today is no longer one-to-one but one-to-many. (More …)

     
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  • Real Estate Incentives Out of Style among Price-Focused Shoppers

    8:51 am on August 3, 2010 | Comments:0
    Tags: , , , , , sellers information   Filed under: Agent advice, Best Practices, pricing, Seller Info

    By Jim Buchtaic

    RISMEDIA, July 30, 2010—(MCT)—Government cash didn’t help John Foley and Cindy Case sell their Minneapolis house before the federal home buyer’s tax credit expired at the end of April, so the couple decided to take matters into their own hands.

    Sales without incentives:
    In lieu of attention-grabbing incentives, here’s what works best today:
    -Price it right. Buyers have access to lots of data, and they’ll know if your house is too expensive.
    -Offer to pay some of the buyer’s closing costs.
    -Maximize exposure. Saturate the Internet and all forms of social media with your listing.
    -Use great photos, not good ones. Make sure your house makes a great first impression.
    -Make it sing. Listing information must be complete and well-written. (More …)

     
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