NAR 12/2014

PENDING Home Sales

Foot Traffic (indicator of future sales)

Foot Traffic (indicator of future sales)

2014 Home Sales & 2015 Projections (Existing & New Construction in millions)

Months Inventory of HOMES FOR SALE

NAR 12/2014

3 POWERFUL Prospecting Techniques

1. 10-10-202. Direct Mail3. Content Marketing

10-10-20

BUYERS’ GUIDE

Winter Edition

DIRECTMAIL

STOP with the

Cherry Pie Recipes

BRANDING

beatles

No music trivia!PLEASE!!

Q: When do most listingscome on the market?

A: The 2nd Quarter of the Year

The 4 Major Mistakes agents make when prospecting for sellers

1. Bragging about Themselves2. Bragging about Their Company3. Branding the Wrong Message4. Telling instead of Teaching

Not 'Anything Goes’

Builds an AWARENES

Sfor your brand

#1 #2

2 REASONS to use GREAT CONTENT

“When your valuable content is shared widely on social

networks, that’s ‘free’ brand awareness.”

Creates a PREFERENCE

for your brand“Engaging content

marketing makes you a trusted source of

information and education.”

- Tips from Marketo

“When you freely give your audience

something so valuable that they’d

be willing to pay for it, you build trust –

which, ultimately, is your most powerful

selling tool.”

- Marketo

Enough Trust to Let You…

Sell possibly the largest asset their family owns

Set the correct market value on that asset

Set the time schedule for the liquidation of that asset

Set the fee for the services required to liquidate that asset

Rainmaker Content

Copyblogger

1.Solves real audience problems2.Reflects the character, passion, &

knowledge of an authoritative person

3.Finds a fresh approach to the topic

4. Is interesting and easy to read

The percentage of homes selling as a FSBO has decreased from 19% to 9% in the last 20+ years

FSBOs as a Percentage of all Home Sales

$209K

$235K

By FSBO By AGENT

*The ‘typical’ price is actually the average price in the survey. However, studies have shown that people are more likely to FSBO in markets with lower price points.

Typical Sold Price* FSBO vs. Agent

Where Buyers Find the Home They Purchase Over the Last 10 Years by percentage

Newspapers

Yard Signs

The Internet

% of Buyerswho used an Agent

NAR

The Why & What of Pre-Listing Packages

The 2 Major Mistakes 1. Bragging about

Themselves2. Bragging about

Their Company

CONFUSIONCONFUSION

HOME PRICES

S&P Case Shiller 12/2014

Year-Over-Year PRICE CHANGES

Case Shiller

Home Price Expectation Survey 2014 4Q

House Appreciation Cumulative by 2019

BullsAll

Projections Bears

Q: When do most listingscome on the market?

A: The 2nd Quarter of each Year

2014 Available Inventoryin millions

SELLERS’ GUIDE

Winter Edition

Marketing yourself as a ‘SELLING MACHINE’ (which is what every seller wants to hire!)

SOLD

Financial Reasons to Buy

Joint Center for Housing Studies, Harvard University12/2013

Reason Quote from Harvard Report

Housing is the one leveraged investment available

“Homeownership allows households to amplify any appreciation on the value of their homes

by a leverage factor.”

You're paying for housing whether you own or rent

“Homeowners pay debt service to pay down their own principal while households that rent

pay down the principal of a landlord.”

Owning is usually a form of “forced savings”

“Having to make a housing payment one way or the other, owning a home can overcome

people’s tendency to defer savings.”

There are substantial tax benefits to owning

“Homeowners are able to deduct mortgage interest and property taxes from income.”

Owning is a hedge against inflation

“Housing costs and rents have tended over most time periods to go up at or higher than

the rate of inflation, making owning an attractive proposition.”

55

Federal Reserve

OVER 36X greaterthan renters

Homeowners Net Worth…

Freddie Mac 12/2014

Freddie Mac Actual Rates

January 2013 – December 2014

30 Year Fixed Rate Mortgages

Where Are They

GOING? 2015 Projections

Q1

Q2

Q3

Q4

Where Have They

Been? 2014

Mortgage Rates Freddie Mac 30 Year Fixed Rate

Decade Average Rate1970s 8.86%1980s 12.7%1990s 8.12%2000s 6.29%

Historic Mortgage Rates by Decade