RISMEDIA, September 2, 2010—What’s the number one absolute best way to get more organic traffic to your real estate blog, website or lead capture pages?

Content creation. (“But, what on earth am I supposed to be writing about or videoing, and how will it get me business?”)

Don’t worry—it’s not your fault that you don’t know what kind of content to create, it’s your broker’s for not grabbing you and shaking a niche out of you.

Here’s the thing: 99 out of 100 real estate brokers out there are just plain ignorant or willfully blind to this next point—If everybody in your office was mandated to create just one piece of targeted, niche-focused content per week (or even better per business day), your office could surely dominate the local marketplace in short order.

We’ve talked about this concept a number of times before, and a few months ago we detailed a plan for how this might work, called the 2010 Real Estate Broker Market Domination Plan. The plan itself lays out a strategy for how you might go about creating an architecture for leveraging agent created content to zoom the GCI of your office or team, but it doesn’t go too much into specifics about what kind of content you might create.

So here’s a list of possible topics you and your team might be contributing to a central real estate blog monster site on a regular basis.

9 killer niche content creation ideas for real estate agents and brokers:

Before you read the rest of this, imagine that you have one person on your team assigned to each of these ideas, with the requirement that they deliver the related content to the site you own on a regular basis. Or if you are a single person shop, simply pick one or more and make it your job to create one piece of content for your real estate blog or website each and every day.

1. Weekly market update – Take a 5 minute video or screencast interpreting data from your MLS and the general mood amongst buyers and agents in order to deliver a public update on the state of the local real estate marketplace

2. Daily/weekly transaction report - Cut and paste the reported transactions from your MLS as this will garner a lot of organic traffic especially long tail stuff related to property addresses in your area. Be sure to include “real estate sales transactions” in the title of each post—wherever you are, people are searching those keywords.

3. Restaurant of the week - Want to charm the pants off of a local restaurant owner and provide a valuable resource for folks relocating to your area? Do a restaurant review once a week and be sure to include a picture of your dish and why you loved it so much. Chances are good that especially for smaller restaurants and markets, your post will rank organically for people doing a direct search of the restaurant name.

4. Business of the week – This is the same as the restaurant idea listed above: recommend doing actual video tours of each business highlighting the coolest service/product to buy from the place. Can you see this helping you gain top of mind status with the local business owner, then a bunch of referrals as he talks you up to other patrons?

5. Local dog parks – People moving to your area with pets are going to do a search engine search for dog parks in the area. Talk about a non-competitive keyword.

6. “Where in (insert your area here)?” - Take a random photo of a person, place, or thing in your area and post it to your site. Offer a prize to the first reader who guesses what the picture is. Be sure to offer an e-mail signup for folks to receive your latest pictures so they can be one of the first to take a guess.

7. Weekly neighborhood news update – Give each agent in your office an assigned neighborhood and require a piece of hyper local content. Run with this for a month and see what happens to your recruiting/retention efforts.

8. Resident interviews – Interview someone in your area and ask them what they like about their town, what they like to do, where the best place to grab a drink with friends is and anything else along those lines. This is an easy way to generate content that’s interesting to onlookers.

9. Contract chronicles – Grab a clause from one of your real estate forms and tear it to pieces—a nice way to demonstrate competence while creating content that’s sure to be indexed and searched. If you don’t already have an article and a downloadable copy of the standard “Residential Lease” for your state on your website, be sure to get this on your site now.

Here’s the thing, the content you create today will most likely equal traffic to your website tomorrow, next week, next month, next year and probably years and years for now.

If you invest a few minutes creating content for your website today, it’ll pay off for years to come.

If you get 20-50-100 agents in your office each investing a few minutes a week to create content, it’ll pay off for years to come, help you establish local market dominance and make your website the most valuable asset your business has—your piece of cyberspace could be worth 6 figures a year from now if you play it right.

Now that we’ve given you nine great ideas, find out the simplest way to put those ideas into action (hint: its video) by visiting http://realestatevideotoolbox.com.

Josh Schoenly and Ryan Hartman are co-owners of ReTechulous, LLC.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

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RISMEDIA, September 1, 2010—With existing U.S. home sales diving to 15-year lows and millions of homes stagnant on the market, home sellers are suffering increasing anxiety, uncertainty and financial stress. To address these symptoms, motivational author Joan Gale Frank has published Home Seller’s Blues (And How To Beat Them).

“This is the first book of its kind to cheer people on and up when their home isn’t selling,” says Frank, a long-time real estate investor domestically and abroad. “It also provides hundreds of practical tips on how to sell a home faster using buyer/seller psychology.”

When her own Arizona home didn’t sell for a year, Frank gathered extensive home selling advice from top real estate experts, home stagers, landscape artists, psychologists and marketing whizzes. Her research paid off. Frank said, “I was able to pinpoint potential buyers and appeal directly to them, which helped sell my house faster. I also discovered how to be happy instead of miserable while waiting for a buyer.”

Home Seller’s Blues was created to share Frank’s findings with other frustrated home sellers. It features comprehensive home selling tips, including quick, inexpensive ways to make a house memorable, attracting more buyers, finding the best Realtor, win/win pricing, easy ways to get a house ready to show in minutes and identifying little problems that cause home rejection.

Several chapters of the book are dedicated to overcoming negative emotions ranging from fear and frustration to insomnia and helplessness. The book also emphasizes how to enjoy life during the entire home selling experience. “Ms. Frank’s insights into the emotions, psychology and real estate strategies of home selling are right on,” says Alexis Halmy, a Portland, Oregon Realtor.

Home Seller’s Blues is available for $9.99 at the Apple iBookstore, on Amazon’s Kindle, and at http://www.homesellersblues.com. Frank also provides inspiration and often humorous home selling advice on her blog, http://www.housesellingblues.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

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RISMEDIA, September 1, 2010—E-mail marketing lists are a necessity in any real estate market for industry professionals who are serious about getting their name and message in front of as many people as possible. While building an e-mail marketing contact list will take some time and dedication on your part, the following techniques provided by Melanie Attia, product marketing manager for Campaigner will help you create a list in no time.

Do’s

1. Leverage marketing programs you already have
No one can opt in if they don’t know you have valuable information to share, so don’t forget to:
- Include a line in your email that links to the sign-up page on your website whenever you purchase or rent an email list for a campaign.
- Lead back to your website from listings you have on partner or affiliate sites.
- Bring a computer to tradeshows and ask anyone who visits your booth to sign-up for your emails.
- Keep sign-up cards by your local store’s register.
- Refer listeners to your website in your radio ads.

2. Make it easy to opt in
Once people are on your site, make it as easy as possible to opt in by having a very visible link on the home page, or other webpage(s). Signing up should take as little time as possible, so don’t ask for too much information at this point.

3. Know your target audience
When someone opts in, ask only a few questions, like company name, industry, or location. You can also include a survey in your emails to gauge interest. Understand where people are coming from so you can make adjustments in future communications or promotions. One of the best resources for helping you expand your opt in list is your existing opt in list, so be sure to take advantage of it.

4. Consider the 4 C’s
Clear. Concise. Compelling. Customer-centric. When you write an email, put yourself in the reader’s shoes and ask, “Why shouldn’t I hit the delete key right now?” Your readers are not opting in because they want to hear a sales pitch. They have a need—to save time, money, or effort, and of course to improve productivity and success. Your message must be compelling enough to convince people to sign up, valuable enough to keep them wanting more and useful enough to pass along.

5. Pass it on
“Word-of-mouth” works in the online world too, it’s called “viral marketing.” A good message will be passed along. Your next job is to make it easy to forward your email to others, who will forward it to others, and so on. If the people it’s forwarded to like what they see, they will opt in too, so include forward or subscribe instructions like a one-click “forward” link in every email you send.

Don’ts

1. Offer fabulous prizes for signing up
While this might seem like a good idea, you’ll end up with subscribers who want to win a prize, not learn useful information about your company and/or products. The prize should be the useful information you provide, so offer a newsletter, a free seminar, or more information about your products and services.

2. Deluge your subscribers with too many emails
How much is too much? It depends on your message, so set expectations. Let people know what they’re in for before they hit the ‘submit’ button. After they’ve had time to digest the information, ask a sample from your list what is the ‘right’ number of emails; they’ll let you know. Otherwise you’ll find out the hard way with an unsubscribe request.

3. Be everything to everyone
Your sign-up messaging, as well as the information in all of your emails should be focused and hit a nerve. Don’t be afraid to address audience’s needs one at a time. Hit the crucial ones first, and save the rest for later to keep them on your list and wanting more. If you’re too generic, in hopes of getting more people to opt in, you’ll end up being “nothing to everyone.”

4. Spend too much money acquiring names
An opt in list is a valuable asset and that means an investment on your part to build and maintain it. Be sure to budget appropriately and ahead of time, find the most cost-effective ways for reaching your target audience and know how much each name will cost. Keep in mind potential revenue, and lifetime value of each customer, and chose accordingly.

5. Live in a vacuum
Continually view, read and explore how other companies or organizations—from competitors and partners, to businesses in completely different industries—build their opt in lists. Most will use the same tried-and-true techniques, but you’ll spot an occasional guerilla tactic that will inspire you to try something new—it just might work for you too.

Melanie Attia is the product marketing manager for Campaigner.

For more information, visit www.campaigner.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

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RISMEDIA, August 31, 2010—Slow month? I’m sorry, slow year? As any agent knows, it’s tough out there in today’s housing market. But others around you are not only surviving, they’re thriving. So what is it that is keeping you from achieving success? Here are four potential reasons you’re not tapping into your potential.

The Economy
Okay, so this one is a given, really. With the housing market currently weighing down the entire economy, it only makes sense that your grand days of selling a neighborhood of houses a month are over.

But for those of you who have been in the game for a while, you knew that the all-you-can-sell buffet was not going to last forever. Now that the plates have been cleared and the bus boy has wiped the table clean, it’s time you learn how to cook for yourself. Luckily, you’ve probably been through this before.

And for those who joined in when the getting was good, you’re now seeing how hard it is to be an agent in a down market.

Just think, though: there was a time when interest rates were at 19%. If agents could move houses then, you can move houses now.

Your Approach
Over-the-top selling is so 2006. Nowadays, people are craving honesty, not salesmanship. Gone are the days when you could convince a home buyer that the ticky-tacky two story on the strawberry lot ten miles from the highway would only increase in value. Buying was more about leveraging and less about lasting consequences, since staying in the home for five or more years was not too likely.

Today though, you need to sell a home, not just a building. Buyers today are not looking for a quick turn-around or a beefy boost to their portfolio. They want a haven. And with the old adage that ‘home values can only rise’ having been thrown out the second story window, if they’re buying, it’s to settle down for decades, not years.

Your job now is to perfect the tie between house and human, to make sure that the building you’re selling is a home and not just bricks and mortar. Your approach should be to listen more, talk less and seek out the perfect fit.

Your Tools
You don’t get it—that bus stop bench is in the perfect location. So why hasn’t anyone called?

Maybe it’s because you’re still mailing out postcards to potential clients with nary an e-mail address or website listed. With more than 90% of home buyers using the Internet to search for a home, if you do not have a Web presence, you might as well be using smoke signals to get your name out there.

New home buyers are looking to stay connected with you just like they would with anyone else in their lives. They want online access, so friend your clients on Facebook, use DotLoop’s text-alert system when negotiating a deal, and create an informative and helpful website for yourself.

After all, the only time a client is going to connect with you via a bench ad is when they are texting you while waiting at the bus stop.

Your Passion
Okay, you’re online, you’re genuine and you’re using all the right tools and online channels to communicate with your clients. So, why are you still stuck?

It may just be that you’re no longer interested in real estate. At least, not like you once were. And that’s okay. Before you declare that you’re an agent and always have been and that real estate is in your blood, take a minute to really ask yourself: do you care anymore?

Maybe you don’t, but perhaps you will again in the future. Or maybe it’s time to move onto another career path. With today’s shaky housing market, only the most fervent and passionate will be able to wade through.

The real estate industry is in the midst of a radical transformation. How you leverage technology, your approach and your passion will determine whether you will be an agent five years from now. Change is inevitable, but not always easy. But remember: change always starts with you.

Are you ready to crush it once again?

DotLoop was designed specifically to overcome the challenges of the traditional real estate negotiation process. DotLoop marries the technological with the traditional, creating a collaborative online environment that uses the Internet as a tool agents can use to connect with their clients, saving them time and money. Our system allows the agent and client the ability to interact on their own terms, dissolving distance and sending fax machines further into obsolescence.

For more information, visit www.dotloop.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

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RISMEDIA, August 30, 2010—(MCT)—Maria Olmo doesn’t like her chances of paying off her new, 40-year mortgage. “I’ll die before it’s paid off,” said Olmo, who got her 30-year mortgage modified because she was at risk of losing her home to foreclosure. “This is the most ridiculous thing I’ve heard in years. They didn’t take my age or my income into consideration.” Since last year, companies servicing delinquent mortgages have been under orders from the federal government to modify the loans rather than foreclose on them.

The goal is to cut the monthly mortgage payments so they are less than 30% of the homeowner’s income.

More than half of the 390,000 mortgages already permanently modified through the federal government’s Making Home Affordable Program have lengthened loan terms—in most cases extended from 30 years to 40 years, according to lenders and federal reports.

Just six months earlier, in January, only about 42% of the loans modified at that point had been similarly lengthened. The U.S. Treasury Department has not released the number of struggling homeowners who have been put into 40-year loans, but lenders say that’s the predominant new term for modified mortgages.

Meanwhile, the number of mortgages that have been changed by trimming the principal on “underwater” houses held steady during that time between 27 and 28% of all modifications. All of the modified loans have had their interest rates reduced.

Orlando lawyer Matt Englett, who specializes in foreclosures, said he advises his older clients against lengthening their terms to four decades. “If you’re 60 and you’re in a 40-year note, you’re really just renting it from the bank, and you’re paying more than you would from someone else you could be renting from,” Englett said. “This is what the car dealers sell—they sell payments. That’s what the mortgage industry has gotten into.”

Rocky Stubbs, Chase vice president for homeowner preservation, said lenders participating in federal foreclosure-prevention programs are opting for interest-rate reductions and longer loan terms before principal write-offs because the government called for that specific, stepped approach to modifying home loans.

He noted that mortgage companies are prohibited by the federal Equal Opportunity Credit Act from considering the age of homeowners when putting them into loan products.

“We cannot look at the credit application of a 30-year-old customer any differently than we would a 90-year-old customer,” he said during a recent interview.

Homeowners who have agreed to go from a 30-year mortgage to a 40-year home loan can always pay more than the monthly minimum if they want to treat it like a 30-year loan and pay off the mortgage sooner, Stubbs added. The modifications typically don’t have any prepayment penalties.

But in east Orlando, Olmo said she can hardly afford her home’s new, $1,300-a-month loan payments because she is struggling with less income since her husband is now unemployed. Rather than adding years onto the mortgage, she said, her lender should have accepted that the house has lost value and should have cut some of the loan’s principal.

Englett, the foreclosure lawyer, said 40-year loans make little sense financially, particularly for seniors who face paying the upfront interest possibly for the rest of their lives.

“If you look at the numbers, if someone is 60 years old and they extend their mortgage to 40 years, oftentimes they’re paying 50 percent more to own the house than they would pay if they were renting in the same neighborhood,” he said. “And when they go to sell, they still won’t have enough to pay it off.”

Despite such warnings, Englett said, most older clients opt for the reduced interest rate and longer term—”they get attached to the house and want to stay there.”

(c) 2010, The Orlando Sentinel (Fla.).

Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

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RISMEDIA, August 28, 2010—Staying flexible while continuing to grow is one of the biggest challenges real estate professionals are facing in today’s market. But, as the real estate market continues to change and evolve, it is crucial for business owners to be able to implement changes quickly. Here, Steve Fogarty, president and designated broker, Realty Executives Associates discusses how his company has found continued success through remaining flexible and being willing to implement change at a moment’s notice.

Steve Fogarty
President and Designated Broker
Realty Executives Associates
www.realtyexecutivesknoxville.com

Over the past few years, we’ve had to learn how to run our businesses more efficiently, but with less resources and money.

During this tumultuous time, our company has focused on two things: staying flexible in order to ride out the storm and continuing to grow our agent services.

It’s critical for a business owner, particularly one that works in an ever-changing market such as real estate, to have the ability to implement change quickly. How can we realistically cut expenses without impacting agent service? More importantly, what could we do to support our agents and help make them successful, despite market conditions?

It is important to approach your team in a personal way, in addition to your coaching strategy. How can you not only make the work easier, but help relieve some of the pressure they’re feeling?

Giving the agents something meaningful to get excited about is crucial. We made efforts in various areas to keep them encouraged and see realistic opportunities for success. For example, we hosted a conference where we rolled out new resources and worked to shift their mindsets into one of action. We also implemented a pre-pay plan and other financial incentives that allow agents to get discounts or added services for paying upfront and staying current.

Additionally, we’ve bolstered agents’ tool bags. What did they need to make a difference in their work flow? We gave every agent an individualized fax number, instituted new front office and document housing software to expedite processes and provide mobile access, issued seven-days-a-week hotlines where agents can reach a broker, mortgage or title company quickly, and converted our conference rooms into media centers. These changes have resulted in agents doing more work, faster and with less effort.

There is a silver lining to the economic downturn. We’ve been forced to refine qualities that transcend any market condition, which will ultimately lead to higher productivity and success. I can only imagine the impact these changes will have on our industry when we have more favorable conditions. Here’s hoping it comes soon.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

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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.

The other essential component of effective branding in today’s market is clearly defining your identity…and sticking to it! Branding should define who you are, what you do, and what you represent. And what you represent should be aimed at enhancing or improving the life of your consumers. Effective branding leads consumers to accept and validate who you are and, in turn, refer you to others.

While many agents make their names the focal point of their brand, the most effective agents are identifying themselves with not only their names, but a slogan or logo that further differentiates them from the masses.

Amy Cherow, for example, a Realtor in Hartford, Connecticut, has a brand that speaks for itself—“Tech Bytes.” Using Tech Bytes in addition to her name not only familiarizes people with who Amy is, but what she’s associated with.

Your brand must be part of your entire marketing plan—it has to fit and it has to be relevant to the niche or niches you are trying to serve. I have seen so many agents claim to specialize in this or that, but their behavior patterns exhibit that they are generalists—they may list a multi-million dollar home one week and then be just as happy to rent a mobile home cross town the next week. Unfortunately, in a market like we’re in now, many of us are operating in scarcity mode and have diluted our expertise…and, therefore, our differentiation and the effectiveness of our branding.

For branding to work, you need to narrow the areas you like to serve so that you feel personally confident and energized in serving your passions. Who you are must be a part of your brand and your brand must exhibit who you are—consistently. Everywhere I show up—either in person, in print, or online—I have to make sure that the same image of Gee is portrayed. That’s the only way your brand will work.

During my real estate sales years in Ocean City, Maryland, I would dress up in an appropriate holiday costume and have my picture taken on the beach each month; I was a bunny for Easter, a hot dog for a summer month, and the stork for Labor Day. I’d create a postcard with the picture of me and a funny slogan to go with it. This might sound corny, but I like to have fun and to make fun of myself so this campaign helped show my personality and reinforce my brand. I was selling property in a resort area and resorts are all about having fun…and this helped me sell a boat load of property!

Whatever your approach, you have to be real and this was me.

About 30 years ago, a top agent joined my office who had just left another firm. In making the change, she decided to completely makeover everything she was doing, including herself! She had glamour photos taken that made her look like she could be on the cover of a magazine. However, that’s not who she was in reality and when people met her, they couldn’t believe it was the same person they saw in the marketing materials. She couldn’t understand why she wasn’t getting listings but the reason was that she wasn’t living up to her branding—and people don’t want to work with someone who presents themselves as something they are not. It speaks to their credibility.

So while you may use your branding to attract attention, if you’re not showing up as the same person your brand represents, then your credibility is brought into question. Today, whether it’s through our videos, our blogs, or our social media posts—which are all critical tools to leverage for branding—we have to be consistent and we have to be real.

We must also build credibility for our brand by listening to what the community is saying. If they’re skeptical and cynical, we must connect, engage and educate. As Rosemary West, a Top 5 in Real Estate member from Chicago, says, “You don’t learn unless you get out and reach out so that you can discover for yourself what your clients and customers need. These are not prospects or leads, but relationships.”

Once your brand is out there, it’s important that you’re aware of what’s being said about you. Amy Cherow recommends using Google Alerts to find out what is being written and said about us. Amy also recommends namechk.com and knowem.com, which monitor hundreds of social media sites to find out what people are chatting about. The bottom line is, thanks to technology, there is no choice but to be completely transparent in your branding because the truth will reveal itself. As Warren Buffet says, “you can tell who’s swimming naked when the tide goes out.”

The potential for utilizing technology to build your brand and reach consumers is huge, but only consistency and transparency will validate your brand. You must use vehicles such as video and blogging to substantiate the brand you put forth. You must engage people with advice on buying and selling real estate or information about your community. You must make posts that cause consumers to comment. Consider enhancing your brand through a mobile business card, which builds your credibility even further. Your goal is to encourage consumers to interact with you so they can see that you are, indeed, what your brand proclaims you to be…that you’re the real deal.

George “Gee” Dunsten, president of Gee Dunsten Seminars, Inc., has been a real estate agent and broker/owner for almost 40 years, and a senior instructor with the Council of Residential Specialist for more than 20 years. He is currently broker/owner of Legacy Realty of Salisbury, Inc., and president of Legacy Development Corporation. To reach Gee, e-mail, gee@gee-dunsten.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

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RISMEDIA, August 27, 2010—(MCT)—Everywhere you look, July was not ideal for real estate—that’s one thing on which the economists and the statistics agree. Sales figures released recently for the first month in 19, not invigorated by government tax credits, offered a poor prognosis for the housing sector.

Nationally, sales of previously owned homes plunged 25.5% from July 2009—numbers the National Association of Realtors said had not been so low since 1999. Single-family home sales were at their lowest since May 1995, during the last housing bust.

Wall Street took the announcement by the Realtors’ association badly, and at the close of the trading day, the Dow was down 133.96 points.

“We knew that there would be payback for the government’s incentives but we didn’t think it would be so bad,” said Joel L. Naroff, of Naroff Economic Advisors in Holland, Pa.

The end of the tax credit “hit with full force” in July, said economist Nigel Gault, of IHS Global Insight in Lexington, Mass. “The most worrying feature of the recent housing data is the absence of evidence of any underlying improvement in sales,” Gault said. “All of the action earlier this year appears to have been driven by the tax credit. Mortgage applications for purchase have been moving sideways since June, even as 30-year mortgage rates have headed into the low 4s.” A sustained housing upturn “will depend on an improvement in the jobs market, which at the moment is slowing down rather than gathering pace,” he said.

Realtors’ association economist Lawrence Yun acknowledged the downturn, but also offered perspective.

“Since May, after the April 30 deadline, contract signings have been notably lower,” he said, “and a pause period for home sales is likely to last through September.”

Still, Yun said, annual sales are expected to reach five million in 2010 because of the healthy activity in the first half of the year. “To place that in perspective, annual sales averaged 4.9 million in the past 20 years, and 4.4 million over the past 30 years.”

Thanks to the tax credit, home values have been stable for 18 months, Yun said.

In July, the nation’s median price rose 0.7% over July 2009, to $182,600. The median is the middle value; half the homes sold for more, half for less.

Yun insisted that record-low mortgage interest rates, now averaging 4.5% would encourage the wary to get back into the hunt.

In fact, rate-conscious buyers are just about the only ones in the market these days. They waited for rates to dip even further, more eager to save thousands over the life of their mortgages than to snag a one-time tax credit available only to qualified buyers.

Michelle Nnolum recently closed on her first home, a condo purchased for $195,500 with a $5,500 seller’s assist at Chanticleer in Cherry Hill, N.J. She signed the agreement of sale in July. “I never thought I could qualify to buy, but I kept hearing about these low rates,” said Nnolum, whose home-based business, ClassiFit, does custom alterations of gowns and evening wear.

She looked at four houses for sale with her agent, Giovanni Judenic of Long & Foster, before settling on a completely renovated two-bedroom, 2 1/2-bath condo that had been on the market for just three days.

Her rate: With a 20% down payment, 4.75%. But thanks to a “buydown” incentive from the mortgage broker, she will pay 3.75% for the first year, “which equals what I was paying for rent,” she said.

“I think values will go up,” said Nnolum. “With 20 percent down, I’ve started with a lot of equity already.”

Chris Bolli of Bristol, Pa., is equally interest-rate-conscious as he searches for a house.

A Navy veteran who sells prosthetic devices to area hospitals, first-time buyer Bolli has been looking for a three-bedroom, two-bath house with a garage for six months.

“Buying a house is a long-term investment, and finding the lowest fixed rate over 30 years is more important than $8,000 up front,” he said. “I wasn’t going to be pressured into buying something.”

One problem with his search has been that “sellers haven’t caught up yet with the realities of the market,” said Bolli, who considers $250,000 the middle of his price range.

“We looked at a house in an area where renovated houses were selling for $270,000, but the owner, who bought at the height of the market, wanted $380,000 for a house with 1950s fixtures,” Bolli said. “It wasn’t worth it.”

Anthony Sanders, professor of real estate finance at George Mason University in Virginia, said many sellers were “holding on to their overpriced housing, hoping that they won’t get damaged even further. There’s been a change in consumer psychology, and it’s difficult to reverse.”

Naroff, who recommends waiting until the fall before making judgments, said that “unless households and businesses have confidence about the future, they are not going to buy homes or invest, regardless of the interest rate.”

Housing’s double dip should not cause a double dip in the broader economy, said Mark Zandi, chief economist at Moody’s Analytics.

“The recent weakness in housing won’t be severe or long enough to undermine the rest of the economy,” Zandi said. “It will be close, however, and it will be very uncomfortable through the remainder of the year. Nothing works all that well in the economy when housing is struggling.”

(c) 2010, The Philadelphia Inquirer.

Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

For more top stories on RISMedia.com, be sure to see:
Beware of Foundation Problems When Getting Your Home Ready for the Market
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RISMEDIA, August 26, 2010—Acquiring companies in today’s economy is an important question that needs to be examined closely, even for companies historically inclined to grow through acquisition. In this month’s Power Broker Roundtable, industry leaders Ron Peltier and Dan Elsea discuss the important questions that should be answered before acquiring companies in the current economy.

Moderator:
Steve Brown, Special Liaison for Large Firm Relations, NAR

Participants:
Ron Peltier, CEO, HomeServices of America, Minneapolis, Minnesota
Dan Elsea, President, Brokerage Services, Real Estate One, Detroit, Michigan

Steve Brown: To buy or not to buy, that is the question—and in today’s economy, it is a question worthy of debate even for companies historically inclined to grow through acquisition. And if this is the time to buy, what do you look for in an acquisition candidate? How do you evaluate its impact on your current business? As important, do you fold the new company into your brand, as many real estate franchisors do, or make the best use of an established local brand by retaining the original name? For some answers, we’ve invited a couple of seasoned pros to join us at the Roundtable today: Ron Peltier, who grows HomeServices of America through an ever-expanding array of affiliate companies retaining their own brands, and Dan Elsea, whose family-owned business has been franchising the Real Estate One brand since 1929. Ron, let’s begin with you. Is your business acquiring companies today? And if so, what do your look for?

Ron Peltier: Yes, we are actively interested in growing our footprint by continuing our acquisition strategy. We slowed down as the market was correcting over the past few years, but with some 70,000 independent brokers operating today, there is plenty of room for consolidation—and we look for companies who want to retain their own brand and character but benefit from the services we provide.

Dan Elsea: I’d say half our growth over the decades is a direct result of acquisition. If we’ve slowed up over the past four years, it’s because sellers have been reluctant to sell while their own financials have been settling. But that will change as the market turns around, and we’re always looking for companies that are right for us in terms of culture and financials. I’d say one out of three companies we look at turns out to be right for us.

Steve Brown: When you say a company is “right for you,” can you be a little more specific?

Dan Elsea: Well, the quality of a company is important, of course…a company well respected in its marketplace…and a broker who wants to, rather than has to sell. Many of the brokers whose companies we acquire want to step out of the day-to-day but retain a role in the business—and that’s fine with us. If the fit is right, we can always find a place for a successful, well-run company—especially if it will strengthen our presence in a region or open a new market.

Ron Peltier: Strong leadership is essential for us because the company will retain its own brand and continue to operate as it always did. Even when a broker has an eye on an exit strategy, he or she will often continue to dedicate time and effort to the business because the goal is to leave a legacy of a great brand that’s been built up in a marketplace.

Steve Brown: You’ve both talked about company culture. How important is that when you acquire a company, and how do you go about transitioning?

Dan Elsea: To an extent, every independent company is a reflection of the broker’s style, and there’s often some reluctance on the part of the sales associates to step into a different environment. We start by having open discussions, both group and one-on-one, so they understand what is apt to change in the day-to-day and what will likely remain the same. In fact, the majority choose to stay on because they will have the best of what they’ve always known bolstered by the service, technology and business support that we are able to provide.

Ron Peltier: I’d say that’s true. Because our companies retain their own brand, we have a vested interest in acquiring strong businesses with positive growth prospects, and we respect the expertise of their leaders. We want our companies to flourish and go forward with the enthusiasm and know-how of the entrepreneurs who’ve made them what they are—and we work with brokers to provide the tools that will ensure they do just that.

Dan Elsea: Mostly we work to establish a “common view”—a business environment in which the benefits of the merger are clearly apparent and beneficial to all.

Steve Brown: And how do you see the prospects for acquisition in the current economic climate?

Ron Peltier: We’re certainly seeing more interest than we did even a year ago. I think the next 24 months will offer great opportunity for both buyers and sellers.

Dan Elsea: I agree. The interest is there on the part of both buyers and sellers. It’s a matter of brokers reaching out—touching bases with everyone. You never know who might turn out to be a viable candidate.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

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RISMEDIA, August 25, 2010—If there’s one thing that time consistently does, it’s move forward. So, as this Great Recession continues to wear us down, it may be time to cast our eyes towards the horizon as well as take stock in what we’ve learned so far, three years into this latest economic slump.

Here are three lessons we have learned within the last three years, with a glimpse to what the future holds for the new real estate.

1. A house is a home, not a piggy bank
The great agents always knew this, but it has become—and will continue to be—a truism that will linger with us for a long time to come: a house is a home, not an investment.

Too many Americans have lost too much to think of their homes as a siding-clad ATM. Instead, the best agents will be apt at matching houses with clients to find a perfect fit. A home, after all, is more than just crown moldings, copper wiring, and bay windows—it’s a sense of place, of community and of comfort. It matches who you are and fits seamlessly within your daily life.

Post-recession agents will need to have this knack for matching house with heart. It’s what real estate was always about, and it will be even more important from here on out.

2. The old way is not going to cut it
I’m sorry to say but, like your car phone, your fax machine is obsolete. It’s amazing how quickly our world has changed and hastened within the last three years. Just think, back in 2007, Twitter was still in its infancy, Facebook was just a trend, and the first iPhone had just come out, with the app craze still months away.

Clients are now buying movie tickets and SUVs online. They are texting more than they are calling. Their lives are busier than ever, so your service had better fit within their lives.

New real estate technologies, such as DotLoop’s online contract negotiation platform, will be the new normal in an industry known to drag its feet when it comes to tech tools. As this Great Recession has taught us, however, great agents can no longer afford to simply leave a message after the beep.

3. It really is all about people
As with any great crisis (opportunity?), the Great Recession has reminded us of that one ideal that real estate was always about, but somehow got buried underneath the deluge of offers and listings: it all comes down to people.

Real estate is one of the last industries that cannot be automated. No matter how many websites, laptops, or smart phones are out there, no computer program can tell you that you can get the best lunch meat at the corner deli on 6th or that the old man at the house next door will always be willing to lend you his ladder. A home, neighborhood and community can never be quantified into ones and zeros. It’s your job as an agent to be the expert of your area, and to make sure that you’re putting the people you’re serving ahead of everything else.

It’s only natural to want to get rid of this Great Recession, to tear away from this downturn and go back to “normal.” But the new normal will not be like the old normal. Three years from now, we most likely will be recovered, but we’ll also be changed—for the better.

Better technology for agents, better understanding of our clients and a better perspective will help to shape the next generation of real estate.

Are you prepared?
DotLoop was designed specifically to overcome the challenges of the traditional real estate negotiation process. DotLoop marries the technological with the traditional, creating a collaborative online environment that uses the Internet as a tool agents can use to connect with their clients, saving them time and money. Our system allows the agent and client the ability to interact on their own terms, dissolving distance and sending fax machines further into obsolescence.

For more information, visit www.dotloop.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

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