Real Estate Training with Kevin M Leonard

Dream…Innovate…Grow - these are a few of the key beliefs and attributes on which our company has been built. Last year 3 outstanding high school seniors won our scholarships, will it be someone you know this year? We are looking for three (3) students who clearly embrace these ideals both personally and academically and who intend to become a full-time student at a college, university, or trade school for the fall of next year. Each recipient will receive thousands of dollars towards their tuition for their entire four years of higher education. If you know of a senior that you feel would be an admirable recipient of one of the Dream…Innovate… Grow Scholarships, please contact me directly.

There has been much talk around the possibility that Americans are feeling less enamored with the benefits of living in a large city and now may be longing for the open spaces that suburban and rural areas provide. In a recent Realtor Magazine article, they discussed this issue and addressed comments made by Lawrence Yun, Chief Economist for the National Association of Realtors (NAR): “While migration trends were toward urban centers before the pandemic, real estate thought leaders have predicted a suburban resurgence as home buyers seek more space for social distancing. Now the data is supporting that theory. Coronavirus and work-from-home flexibility is sparking the trend reversal, Yun said. More first-time home buyers and minorities have also been looking to the suburbs for affordability, he added.” NAR surveyed agents across the country asking them to best describe the locations where their clients are looking for homes, here are the results of the survey: 47% suburban 39% rural area 25% small town 14% urban area 13% resort community According to real estate agents, there’s a strong preference for less populated locations such as suburban and rural areas. Real Estate Brokers and Owners Agree Zelman & Associates surveys brokers and owners of real estate firms for their monthly Real Estate Brokers Report. The last report revealed that 68% see either a ‘moderate’ or ‘significant’ shift to more suburban locations.

As shelter-in-place orders were implemented earlier this year, many questioned what the shutdown would mean to the real estate market. Specifically, there was concern about home values. After years of rising home prices, would 2020 be the year this appreciation trend would come to a screeching halt? Even worse, would home values begin to depreciate? Original forecasts modeled this uncertainty, and they ranged anywhere from home values gaining 3% (Zelman & Associates) to home values depreciating by more than 6% (CoreLogic). However, as the year unfolded, it became clear that there would be little negative impact on the housing market. As Mark Fleming, Chief Economist at First American, recently revealed: “The only major industry to display immunity to the economic impacts of the coronavirus is the housing market.” Have prices continued to appreciate so far this year? Last week, the Federal Housing Finance Agency (FHFA) released its latest Home Price Index. The report showed home prices actually rose 6.5% from the same time last year. FHFA also noted that price appreciation accelerated to record levels over the summer months: “Between May & July 2020, national prices increased by over 2%, which represents the largest two-month price increase observed since the start of the index in 1991.” What are the experts forecasting for home prices going forward? The averaged price projections on home prices for the next year from Zelman, Zillow, Fannie Mae, NAR, HPES, MBA & CoreLogic are 3.9%. Since the market has changed dramatically over the last few months these are projections published Sept 1st 2020.

The first thing to remember when trying to attract the consumer is to get your ego out of the way, it’s not all about you. It’s all about the consumer. What does the consumer want? Market data, market updates, finance updates, what’s going on in their neighborhood, and of course periodic reporting of your results. It’s ok to sprinkle in your new listings, sales and testimonials as long as you are providing them value in most of the communication they are receiving.

2019 Northeast Ohio Market Snapshot: The average price per sq foot peaked in July 2019 at $107 PSF for an average sales price of $190,000 Our lowest supply of housing was 2.3 months in April 2019 with an absorption rate of 46% The average days on market in 2019 was 58.5 days You can see that the June and July had both the highest average list price and sales price, both #’s continued on a downward trend for the remainder of the year with the exception of December the average sales price perked back up. In 2019 there were a total of 57,625 sales in Yes MLS

There are 2 communications you want to convey to your database around your business activity. 1. Your new listings, sales, and closings. 2. The experiences people have doing business with you. Social Proof.

The first thing to remember when trying to attract the consumer is to get your ego out of the way, it’s not all about you. It’s all about the consumer. What does the consumer want? Market data, market updates, finance updates, what’s going on in their neighborhood, and of course periodic reporting of your results. It’s ok to sprinkle in your new listings, sales and testimonials as long as you are providing them value in most of the communication they are receiving.

The first thing you must know is that your most valuable asset and only asset is your database. There are two ways to do business. Continually prospect and grind out transaction after transaction or to establish a sphere of influence and work that sphere of influence on a daily basis.

Here is an example of the analysis you need to do prior to choosing your farm area. So, let you soon you have ever sales price is $300,000 and • Number of homes sold in the last 12 months: there is 25. For example a total of 50 sales sides (25 buyer sides and 25 seller sides)

The number one answer in the real estate industry today is, “No, farming and mail–outs don’t work!” It’s interesting to note that less than 5% of all agents have a consistent farming program. • What is a farming program? • How do I choose my area of focus? • What do I send to homeowners? • How often do I mail to them?

This The final Tip in Listing Strategies can be expressed through the truthful reporting of your results as expressed by one of your clients or many other clients. Notice that I didn’t say telling the seller that you are a 100 million dollar producer, they don’t care. They want to hear and see actual measurable results from specific clients.

Here are some statistics that I watch to keep in mind when you are going to a listing presentation. What we retain after 3 days: • 5% of what we hear • 15% of what we see • 65% of what we both hear and see

Explain to the seller what happens next, all the way through to closing: It Pretty simple in theory, but you must take the time to make them aware of everything that goes on during the marketing and sales process. In addition, make sure to take the time to educate them about everything that might not go right! So, First, let’s focus on the initial steps of marketing the home. You will want to create a checklist of sorts.

Close and get the listing signed. At this point in the listing presentation, you get to find out one thing, how good your listing presentation really was. If the seller stalls, or objects over commissions, there’s only one reason, you didn’t make a strong presentation or present enough value to cause them to take action and list with you. Now what?

Its Pricing Strategy. The question is Who sets the price of a home when you list it? The Seller! Don’t fall into the pricing trap. Here’s your pricing strategy conversation that will place responsibility back on the decision-makers shoulders!

Present your value proposition based on the expectations of the seller: The seller has told you what is most important to them and what their expectations are of a real estate agent. So, Now it’s time to verbalize your value proposition. There are two critical areas to focus on your presentation, maximum exposure of their home and your skills.

Restate and clarify the answers you receive: The age old principle, Seek first to understand, and then be understood. I see too many listing presentation ends up like this...Let me tell you how wonderful I am and how great our company is, and then I will listen to you. Don´t go into the listing presentation with an arsenal of features and benefits that you overwhelm the seller with.

Choose a spot to present: Give the sellers two options, the kitchen table or the dining room table. This is a business meeting and you are dealing with what is typically their largest investment. Do NOT sit directly across from the sellers. This is a confrontational position and you may lose the listing before you even start the presentation. Sit at the head of the table with the sellers positioned to your right or left. This is a collaborative position.

1. Show up on time: As simple as it seems, I’m amazed at how many times an agent shows up late for a listing presentation. 2. Dress professionally. It’s absolutely amazing that people have built –in ”expectations of whom they want to represent them and” what they look like! A shirt and tie or dressy dress will do more than you think! May be a blazer rather may be dressed professionally.

First, have you prequalified the Sellers for their motivation? Do they have your packet of information and comparables? What is your system that you follow when you arrive for the listing presentation? How long is your presentation? Here are the 14 productive elements to a great listing presentation.

Here’s a look at a couple of basic features and benefits for you to use in your listing presentation. Feature: Great Technology Benefit: A huge percentage of home buyers are starting their initial home search on the internet.

I hear it all the time, “We’re the best or I’m the best because we have the best this and the most advanced that” “So what?” Features are not the piece that excites someone to take action, it’s the Benefit. The consumer wants to know, “What is the benefit of working with you?” and “What’s in it for me?”

• What is market knowledge? Is it a simple Market Analysis or is there more to it? • Do you know the difference between Median Prices vs. Average Sales price? • If so, what does it all really mean? • How about days on market? Sales price as a percentage of list prices? • Are you using Price Banding in your listing presentation?

“Mr. and Mrs. Seller, marketing your home is defined by using cost-effective, results-proven strategies to get your home sold....Maximum exposure to the greatest number of potential buyers.... What are your expectations of me in marketing your home?” Sure, you have all the great marketing strategies and tactics to get a home sold, but isn’t it important to find out the expectations of your prospect so that you are on the same page?

Ever had a free hour to relax may be on the weekend? Next time look for special occurrences on your Facebook feed of your friends, colleagues, siblings' influence such as the Births & Marriages. Are you aware statistics show that over 90% of those announcements lead to a move of some kind: move up, move out, bigger homes, selling one to live together, relocation, etc.

Most of us, just hand out our business cards like clockwork! However, with all due consideration, I think this is a major mistake. Ask yourself the question: if you are handing out your business cards everyday who is controlling the flow of information? You, or the person to whom you gave the business card too?

Most agents today approach FSBO’s with either a fear approach or a complete lie. You’ve heard them ... “I hope you realize, you won’t make as much money!” Or, “You’re get list in 30 days anyway ... and I have this buyer...!” Why not try this approach instead ...

Openness: Be open-minded and willing to listen to input and suggestions regarding your business. Willingness: To take what you receive and put it into action. Awareness: Having conscious thoughts about your unconscious behavior. Being willing to notice that you go back to conditioned, non–productive old habits and change that pattern.

We are caught up in an industry of bright shiny objects, the next magic pill, or the strategy is can explode our business right- in good way or otherwise known as the bright shiny new penny. So, We attend a seminar, buy a cd, enroll in a lead generation program, or buy software aline and new greater software.

What are we afraid of or don’t believe we can accomplish? That which we have not experienced before. Increasing our business is going into areas we have not yet been before.

Observing or noticing without judgment is the purest definition and execution of accountability. Unfortunately, not the experience most of us have had in an accountable context. Accountability is critical because it creates deadlines, targets, and an opportunity to check in.

Have a clear picture⁄vision of where you are going Eliminate all negative self talk and act “as if”

We are in an interesting business where if you drill down one of the top reasons an agent got into the business . . . it was about the money. And we wonder why real estate agents are constantly struggling against the consumer’s perception of us?

I’m sure you would agree that productivity is never an accident! Wouldn’t you agree that it’s usually the result of a commitment to excellence, through intelligent planning and focused effort?