Valley of the Sun Real Estate Podcast with Nate Martinez

I'll teach you how to convert online buyer leads into appointments using simple strategies that build trust, add value, and drive results. Successfully converting online buyer leads into appointments is a crucial skill for any real estate agent. So, how can you make the most of those calls and turn more leads into valuable appointments? In today's digital age, the internet has become the primary way buyers start their real estate journey. Capturing and converting online buyer leads into appointments can transform your business and help you stand out in a crowded market. In this video, I'll share three proven strategies to help you secure those crucial appointments: lead research, crafting compelling scripts, and building strong rapport: 1. Do your homework. Before making the call, preparation is everything. Research your lead's interests, potential needs, and browsing history if available. Familiarize yourself with the latest market trends, local property data, and relevant listings that match their preferences. Demonstrating your knowledge and tailoring your conversation to their specific needs shows professionalism and genuine interest, setting the stage for a productive call. 2. Craft a winning script. While adaptability is essential, having a structured script ensures you stay focused and persuasive. Start with a friendly, engaging introduction that captures their attention. Present a clear value proposition—what you can uniquely offer them—and seamlessly lead into a call-to-action. Remember to actively listen and personalize your responses to build trust and show that you're genuinely invested in their journey. “Preparation is key to converting leads into clients.” 3. Build genuine connections. Building rapport is the heart of a successful call. Begin with open-ended questions to learn about their preferences, timelines, and goals. Acknowledge their concerns and show empathy to make them feel understood. This isn't just about booking an appointment—it's about establishing a relationship that makes them excited to work with you. If you're ready to take your lead conversion skills to the next level or need help crafting a winning approach, reach out to me by phone or email. Let's work together to elevate your business and secure more appointments.

Discover my 3-step formula for open house success—I'll show you how to market your client's home, engage visitors, and make a great impression. Got an open house event coming up? Let's make it an unforgettable experience that leaves buyers ready to write offers on the spot. Spring is on its way, and with it comes the busiest home-buying season of the year. Hosting a standout open house can set your property apart in a competitive market. Today, I'll share three game-changing strategies to make your open house the talk of the neighborhood: setting the stage, spreading the word, and creating memorable connections. 1. Set the stage for success. First impressions are everything. Start with impeccable curb appeal: freshly mowed lawn, vibrant flowers, and a welcoming front door. Inside, focus on staging—arrange furniture to maximize space, add pops of color with decor, and highlight your home's best features. Don't forget sensory touches like soft lighting, pleasant scents, and a curated playlist to make buyers feel right at home. “When done right, an open house can drive offers and even bidding wars.” 2. Amplify your marketing. To get a full house, you need a full-scale marketing plan. Go beyond the basics with targeted social media ads, a virtual tour, and local community outreach. Partner with nearby businesses to cross-promote your event, and consider offering incentives like a gift card raffle for attendees. A well-executed marketing plan creates buzz and ensures your open house is a can't-miss event. 3. Make it personal. The secret to converting visitors into buyers is personal engagement. Greet everyone with a smile and take time to learn what they're looking for in a home. Prepare a QR code that links to detailed property information, and set up interactive elements like a neighborhood highlights board. Collect feedback with a quick survey—it shows you care and provides valuable insights for future showings. If you're ready to take your open house to the next level or have any questions about the process, reach out to me by phone or email. Let's work together to turn your open house into the launchpad for your next big sale.

Agents need to prepare for potential fallout from the NAR settlement in 2025, such as smaller buyer's agent commissions. Ever since the NAR settlement took effect in August 2024, the real estate industry has been holding its breath. People had a wide range of opinions on what would happen to the industry, from some people claiming nothing would change while others predicted the end of agents working primarily with buyers. So far, the optimists have been mostly vindicated. While some things have certainly changed, most buyer's agents have survived the shift. However, will this last? We're still in uncharted territory, and many agents remain nervous about the future of their careers. That's why today, I'm sharing some of my thoughts on what might happen to real estate commissions in 2025 and beyond: 1. The market slowdown has delayed significant shifts. When the NAR settlement first took effect, many people thought buyer agent commissions would be greatly reduced or eliminated entirely. This hasn't happened, but it could just be due to the market slowdown. Right now, many markets have low demand, causing sellers to offer concessions to homebuyers. In other words, if the market picks up, sellers could stop offering concessions, like buyer's agents' commissions. “I recommend that you work hard to make as much as possible in this market while keeping one eye on the future.” 2. The market might speed up in 2025. While 2025 isn't expected to be a boom market like we saw during the pandemic, it should improve slightly for sellers. When the market finally turns around and starts to strongly favor sellers again, commissions could be one of the first things they stop offering buyers. I don't have a crystal ball, but I wouldn't be surprised if buyer's agents' commissions became negatively correlated with how much leverage sellers have. 3. Make what you can now while preparing for the future. Despite whatever changes might occur when the market picks back up, one thing is certain: Buyer's agents can still make a lot of money right now. I recommend that you work hard to make as much as possible in this market while keeping one eye on the future. This could mean transitioning to work with more sellers, looking for new training, building your referral network, or something else. No one knows what the future holds for the real estate market except this: Things will change. Our team is always looking ahead to what the market might hold so we can be industry leaders. If you want additional training on how you can adapt to the future, please call or email us. I'd love to hear from you.

I'm going over how you should hire your first showing assistant, pay them, and avoid mistakes along the way. Have you considered hiring a showing agent to give you more leverage with your real estate business? I get it—once your real estate career starts picking up, it can feel like you never have enough time. One of the easiest ways you can buy back your time is by working with a showing agent. This allows you to spend all the time you would have spent on showings on money-making activities instead. It's a great way to gain leverage, and I recommend it to many agents when they're first feeling overwhelmed. However, working with a showing agent raises an obvious question: How should you pay them? Here are three tips to make sure you're getting the most out of your showing agents: 1. How to find your showing agent. To find the best showing agent possible, I recommend running ads to newer agents looking to get a little extra cash. All agents need to pay the bills, and newer agents might not make enough from commissions yet to cover all their expenses. By offering them to be your showing agent, they can get the opportunity to make extra cash while you free up time to spend on more important activities. “Hiring a showing agent is all about giving yourself more leverage.” 2. Pay them extra for the first home. When you find a good candidate, offer them extra money for their first home. This first job will double as their “audition” — if they do a good job, they'll earn the right to work with you on more homes in the future. The higher first-home rate will also help you attract the highest-quality candidates possible for the position. 3. Pay in cash upfront per home. This is the best and simplest way to pay your showing agents. By paying them upfront, you make sure that you're only paying for work done. Plus, you can avoid contingencies or other contracts that put you at risk of overpaying. At the end of the day, hiring a showing agent is all about giving yourself more leverage to grow your business. If you're looking to take an even bigger leap, please call or email our team. We have the training and resources you need to focus your time on money-making activities. Make it a great day!

Setting up a CRM can be confusing, but it doesn't have to be. Today I'll go over tags, tracking heat, and getting leads started in your pipeline. Setting up a CRM can be confusing, but it doesn't have to be. Today I'll go over tags, tracking heat, and getting leads started in your pipeline. Are you just starting out in the real estate industry and don't know how to set up a CRM? Maybe you've just started your real estate journey. Maybe you've been in the industry a long time but haven't gotten around to fully leveraging your database yet. Whatever your situation is, you should know that a properly set up CRM is a real estate agent's best friend. Most of you probably already know what a CRM is, but if you don't, it's a customer relationship management service; in other words, it helps organize and leverage your database. Your database should be your most powerful asset as a real estate agent, so if you aren't getting the most out of yours, you're missing out. With all that in mind, here are three things you need to know to set up your CRM: 1. Create tons of tags. In a CRM, you can categorize people based on pretty much everything. In my experience, you can't over-categorize - the more tags you create to separate and define people, the better. Keep track of what type of lead they are, where they came from, their personal information, and more. Once your database gets big enough, you won't be able to keep track of everyone in your head, so it's best to stay organized early. “In my experience, you can't create too many tags.” 2. Track people's heat. In case you don't know, heat is an industry term for how ready-to-sell a lead is. So if you get a hot lead, they are probably ready to move ASAP. However, one of the best strengths of your database is that you can keep track of and nurture leads that aren't hot - people who might not want to move for another year or even longer. Keeping track of and nurturing these leads can give you consistent, reliable business for years to come, but this process starts by organizing everything in your CRM. 3. Create automated follow-up plans. What's your strategy to nurture a lead over a long time? If you don't have one, reach out to me; I can help you with that. However, if you already know what to do, you can set up your CRM to automate your process. This way, you don't have to worry about wasting time on a lead that never comes around. Everything will be the same way through your CRM's automation, so you can be sure you're putting the maximum effort into nurturing leads. Look: While I hope these tips are helpful, there's no getting around that setting up a CRM is a lot of work. If you want personalized help or guidance, call or email my team. We have full-time staff members who do these sort of back-end things for you, so you can focus 100% of your energy on making money. Just reach out if you're interested. I look forward to hearing from you!

Buyers are backing out of more real estate deals across the country, but by taking control of the situation and focusing on motivations, you can keep more transactions together. Recently, a lot of agents have called me asking about buyers backing out of real estate transactions. This problem is significantly hurting their bottom lines, but they don't know what to do. If you've experienced buyers getting cold feet in this market, don't panic: You have options. The truth is that this market is volatile, but there are still steps you can take to ensure more buyers follow through and get to closing. Here are three things you should do to deal with buyers backing out of real estate deals: 1. Be a leader. Staying calm when a deal falls through is easier said than done. However, there's a solution to every problem. When a deal starts to fall apart, both buyers and sellers tend to freak out a little bit. Selling a home is an emotional process, and hundreds of thousands of dollars are on the line. That's why it's critical that you stay calm and be a leader in this situation. The seller and buyer are both going to be looking to you for guidance, and you need to project confidence that the deal can still be done. Don't get sucked into an emotional reaction and be the rock everyone needs to find a solution that works for everyone. “Remind your buyers we're in a buying window that won't last forever.” 2. Remind the buyer why they want to move. No matter how adamant a buyer is that they want to walk away, the deal might not be over. Even minor issues can spark a strong emotional reaction from buyers, but if you let things calm down, cooler heads often prevail. Remind both parties about their motivations for moving. By getting them to refocus on their motivations instead of whatever issue is holding them back could bring them back to the table and revive a dead deal. 3. Help buyers understand this market. Buyers are in an odd spot in this market. Interest rates have recently changed, and a lot of buyers are paralyzed by the volatility. This is why you need to help buyers understand the opportunities they have in this market. They won't have more choices than they do now. While no one knows for sure what will happen with rates, it's likely they'll decrease soon, which will increase buyer demand and lower supply. The home might not be everything they've ever wanted, but the truth is that they might not get a better opportunity. If you make them understand that, they might be more willing to overlook an issue holding them back. If you're interested in more of this granular, issue-based training, I encourage you to reach out to my team. Just give us a call or send us an email; in a market with fewer transactions, it's more important than ever that you make the most of what you can.

If your buyer plans to wait out the market, here's what you should say. I've been selling real estate in the Valley of the Sun for over 36 years, and in that time, I've helped a lot of buyers successfully purchase homes. However, in today's market, many homebuyers say that they want to wait for the market to come down before they make a purchase. How do you respond when one of your clients says this? Today I'll use an example to help you explain to your buyers why they can't afford to wait. At a 5% interest rate, a buyer with a $400,000 loan would have a monthly payment of $2,147. If that same buyer waited to make a purchase and home prices rose by 10%, their monthly payment would go up to $2,362, which is $215 more per month, or $2,580 a year. Over 10 years, that adds up to $25,000 lost. Suppose the price stays the same, but interest rates increase by 1%. The buyer's payment would go from $2,147 to $2,463. That's $316 more per month or $3,792 more per year. Over a 10-year period, that's $37,000. “Your clients don't have time to wait—they need to act now.” What if the house goes up 10% in value and the interest rate rises by 1%? In that case, the monthly payment would increase by $562 per month, or an additional $6,744 per year. The bottom line is that your clients don't have time to wait—they need to act now. If your buyers tell you they plan to wait for the market to improve, explain to them how both interest rates and home prices are set to rise, which will only negatively impact their ability to afford houses. If you need help getting your buyers off the fence or have any questions, give me a call or send me an email. I'd love to help you.

Four reasons why our market isn't going to crash anytime soon. Is our market going to crash? I get this question almost every day, and my answer is a hard no. The demand for real estate in our Phoenix market is unheard of, and besides that, there are four good reasons why our market is still strong: 1. Multiple offers. Even after 16 months of a competitive market, we still see multiple-offer situations, so demand is not letting up. 2. Low inventory. This goes back to supply and demand. We have a very small supply of homes and a huge demand from buyers. 3. Job creation. There are cranes and new manufacturing plants everywhere you look in Phoenix. Another 150,000 homes are supposed to be built in the north Phoenix valley soon.  4. Price appreciation. Homes increased in value by 32% last year. There is a lot of equity in the market, and it shows no signs of slowing down.  If you have any questions about the market or just want to chat, give me a call at (602) 942-7000. I'd love to hear from you.

These are the four best reasons to become a real estate investor in 2022. Real estate can be a fantastic investment vehicle. Many people have used real estate to build their wealth and diversify their portfolios. Here are the four main reasons you should invest in real estate in 2022: 1. Rent has increased by 27% year over year. Think about that. Vacancy has gone down to 3.8% in the same time. That's the lowest vacancy figure in over 20 years. Just like the resale market, the rental market is extremely hot. If you buy a home to rent out, people will be lining up to become tenants. 2. Interest rates are still low. They're keeping homes affordable and keeping buyers in the market. When I bought my first investment property, I got an interest rate of 11%. These days, you can still lock in a rate under 4%, but they're on their way up. “Many people have used real estate to build their wealth and diversify their portfolios.” 3. Real estate is a great hedge against inflation. In the Phoenix market, we're expecting about 3% inflation over the next 12 months. Last year, we had a whopping 32% appreciation in home values in the Greater Phoenix Area. 4. We have the highest job creation in the country. Cranes are in the sky, companies are coming in, and a lot of jobs are creating many more renters for you. If you have questions about investing in real estate or any other matter, don't hesitate to reach out via phone or email today. I look forward to hearing from you soon.

My advice is to tune out the distractions and stay focused on the basics. Today I'll discuss focus. In this crazy real estate market, it's not uncommon to get daily calls from someone trying to recruit you to their company or see TV commercials from iBuyers. There is a lot of noise out there. My advice is to stay focused on the basics. For example, Tom Brady has been playing the same position for 20 years, yet he's still excelling because he's mastered the basics. He understands every player's role and takes full advantage of it. What are you doing to take advantage of this marketplace? Stay focused and do your basics every single day. At the end of the year, you'll have an amazing business. If there's anything I can help you with regarding goal setting, business planning, or real estate in general, I'd be happy to sit down with you and share some of my 35 years of knowledge. Please reach out to me at natem@remax.net or (602) 430-5226.

Here's everything you need to know about our real estate workbook. As some of you may know, Sarah Michelle Bliss and I recently wrote a book called Your Real Estate Journey to Abundance in 8 Steps. In this book, we wanted to revolutionize the way real estate is sold. There is nothing on the market that resembles what we've done with this book, and that's because it is specifically targeted at real estate agents.  This book is really a workbook. You can track your progress and what you're doing with your day, so the book will hold you accountable for doing the work it recommends. Whether it's following up with clients, closing homes, or even eating right, this book will get you in the right mindset for success.  Think about it. If you start your day with three things you want to do and three people you want to talk to, it sets you up for a win. You will begin to start acting with intention rather than mindlessly trying to generate leads. “This book will get you in the right mindset for success.” If you want to know more, we recommend you check out our book as soon as possible. You can find the book on our website as well as on Amazon. If you have any questions, please reach out to us via phone or email. We are always willing to help.  

We wrote a bestselling book to help fellow agents. Here's what to know. Today I'm here with a special guest Sarah Michelle Bliss. We've been lucky to be friends and work together for the past 25 years, and a couple of years ago she came to me and said we needed to write a book. We've been working on it ever since and now we've had it published. It's called “8 Ways to Dominate Any Real Estate Market,” and it became available on August 3. The book goes over eight steps to help you weather any real estate market. Together, Sarah and I have experienced both the boom and crash of the market and everything in between. Our book encompasses the tried and true basics that, no matter what the market is doing, will help you succeed. Whether you're a new or seasoned agent, this book is designed to help you.  What's in our book is what we've tried and learned along the way. Some of these things you may have heard before, but we wrote it to help fellow real estate agents. “The book goes over eight steps to help you weather any real estate market.” One thing we wrote about is the Top 50 Program. The top 50 are the people who know, like, and trust you, and if you engage with them enough, they'll do business with you. More importantly, if they know another agent, these are the people who will do business with you, not them. The book provides a full-blown business plan to engage your top 50 and ensure you're their top-of-mind person.  Here in Phoenix, 90,000 licensed Realtors are running around, so most people know someone in the business. One goal is to get a referral from each of those 50 people. Even if you only close half that number, that's a pretty good year for most agents. Read the book; take action!  Please join our Facebook group and simply search “8 Ways to Dominate Any Real Estate Market”. You can visit our book's website here, and it's also available for purchase on Amazon. Our book made the International Best-Seller List within 24 hours of launch!  In our next video, we'll discuss the companion product we created to go along with our book. If you have questions or we can help you in any way, just let us know via phone or email. We would love to help you.  

Here's a strategy we've been using to help our homebuyer clients win. Over the last 35 years, I've negotiated thousands of real estate deals. In the last few months, we've had to start using different strategies to help our homebuyer clients succeed in this extremely competitive market.  One of the most successful strategies has been our use of private financing. We're using more hard-money loans to get offers accepted. We put down at least 20% to the lender and agree on terms (which can start at a 9.5% interest rate). We were recently working with an investor who was having loan challenges. We were able to use hard money to get the offer accepted and refinanced to a much better rate once the offer was accepted. “Every single person wins in this situation.” Here's how the costs broke down when using the hard-money loan: 30% down payment from the buyer 70% down payment from the hard-money lender 9.5% interest rate $900 doc prep Normal closing costs $1,800 per month That 9.5% rate is high, but now we're in the process of refinancing to a lower rate right after closing. Every single person wins in this situation. The buyer, the seller, the lender, and both agents. Why not try hard money if you're having trouble getting your clients' offers accepted? If you have any questions about this process, the market, or the real estate business in general, don't hesitate to reach out via phone or email. I look forward to hearing from you soon.

Lumber prices are increasing, and this trend will only continue. New home prices are skyrocketing due to an increase in lumber costs. Compared to this time last year, the cost of a lumber package for an average-size house has increased by $35,000, and this cost will continue to rise. Gas prices are also going up, along with the cost of labor. Basically, everything is going up—that’s called inflation, my friends. The good news, however, is that interest rates are still in the low 3s.  If you have a client working with Fulton Homes, you may know that they recently sent out a letter to all of their homebuyers saying that they would return 100% of their earnest money if they could cancel their contract within a week due to construction delays. When I heard this, my first thought was that they wanted people to cancel their contracts because they knew they could sell those homes now for $40,000 to $60,000 more than they did a couple of months ago. I believe that with every new home that’s been sold in the past three to six months, builders are probably losing money on it due to the increase in lumber costs.  If you have questions about this topic or there’s anything I can help you with, don’t hesitate to reach out to me. I’d love to be your mentor, and I hope you have a great day.

Here’s my latest full conversation with my good friend Travis Zimmerman. I recently had the opportunity to sit down with Travis Zimmerman of One Guard Home Warranty to talk about several different topics.  He got a text recently from a good friend at a home warranty company who said that July 2020 was their best revenue month in the history of the company. However, it was also the lowest profit margin that they’ve ever had. Due to scarcity, the frequency of claims is up, replace versus repair is up, and the average cost per claim is up. “Travis continues to help me and my clients achieve our goals.” I know great service, and Travis Zimmerman is a great service provider. I remember back when he was doing repairs in Sun City, got into the property management world, and how he continues to help me and our clients to this day. If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon. 

Freon is being phased out of the HVAC industry; what does this mean for us? Three to five years ago people began discussing the phasing out of freon in the HVAC industry. Today, Travis Zimmerman and I are discussing this topic in more detail. We’re exploring the implications of this, the cost to homeowners, whether or not to update your system, and more. Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message, or use these timestamps to browse specific topics at your leisure:  0:00: Introduction to today’s topic 0:25: What should we know about our current AC units? 3:00: Should people be asking what type of system is in a house when shopping for a home? 5:15: Does this mean that eventually the supply of freon will be gone? 6:15: Wrapping up today’s topic If you have any questions about freon or real estate in general, reach out via phone or email. I would be glad to help you.

Just like all industries, the home warranty business has adapted to COVID. COVID has affected every facet of our lives, and real estate is no different. What about the home warranty business, though? With more and more people working from home, home warranty providers are experiencing an unprecedented number of claims. Today I’m joined by my friend and home warranty specialist Travis Zimmerman to explain how they’ve adapted to the situation.  Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch it in its entirety, or use these timestamps to browse specific points at your leisure:  1:07—COVID’s impact on Travis’ business from a people perspective  2:07—COVID’s impact from a service/delivery perspective  3:24—How much higher has demand been for home warranties and service contractors?  5:23—How Stream has helped them performed diagnostic work  As always, if you have questions about this or any real estate topic, or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’m happy to help.

Here’s what you need to help your clients understand about forbearance. The C.A.R.E.S Act provides all homeowners who have lost their jobs due to COVID-19 with the ability to apply for forbearance. In short, forbearance is an agreement between a borrower and their mortgage provider that states the borrower will reduce or delay your mortgage payments for up to 12 months. To pay back the reduced or delayed payments, the mortgage provider could add them back to each of your monthly payments until the deficit is covered, or it could be added to the back end of the loan, extending the loan period. “Your client will need to explain their hardship and provide paperwork showing that they’ve lost income, but overall, it’s a simple process.” If one of your clients is applying for forbearance, advise them to contact their mortgage company, who should already have information packets, and help guide them through the process.  One great thing is that the C.A.R.E.S Act states that it won’t affect your clients’ credit scores, but I’d recommend that your clients start checking their credit as soon as they get their forbearance agreement. Right now, through Equifax, Experian, and TransUnion, you can get a free annual credit report, or you can also visit www.AnnualCreditReport.com to sign up for a weekly credit report up until April 2021. For more useful information to pass on to your clients regarding forbearance, click here. If you have any questions, don’t hesitate to reach out to me. I’d love to help you.

Here’s a breakdown of which industries were most affected by job losses due to coronavirus. Last week, I discussed how the Raging River housing market will explode within the next month or two. Today, I’ll walk you through a breakdown of which industries were affected by 15% of the people who became unemployed in the last two months due to the coronavirus. When you consider these numbers, bear in mind that while 15% is a lot of jobs lost, that still means 85% are gainfully employed: 59.5% of this group were in the food service industry 7.1% were in temporary help services 6.6% were in retail 6.1% were healthcare office workers 4.1% were construction workers 4.1% were also in the accommodation industry 3.7% were child daycare workers “Those who are unemployed due to COVID-19-related job losses will soon be able to rejoin the workforce.” Just last week, it was announced that all surgical teams will be allowed to go back to work and focus on elective surgeries once more. The bottom line: Those who are unemployed due to COVID-19-related job losses will soon be able to rejoin the workforce, and I think once they do, our market will repair itself quickly. If you have any questions about the Phoenix market, don’t hesitate to reach out to me. I’d love to help you.

Our market is a river, and we have no choice but to go with the flow. I often like to look at the real estate market as a flowing river. There will always be a current, but sometimes that current is moving slowly like a stream and other times it’s roaring quickly.  Coming into January, February, and mid-March, the market was absolutely on fire, with most homes under $350,000 generating multiple offers. Inventory was coming off of the market almost as quickly as it was coming on, and 2020 was primed to be a stellar year.  When stay-at-home orders were issued throughout the states and the reality of life under quarantine settled in, we saw skeptical buyers canceling their purchase and sellers canceling their listings for fear of having exposed individuals walk through their homes. Basically, the current of the market slowed dramatically. When the current drops, it exposes boulders in the middle of the river, causing more rapids; navigating the market in March was treacherous, and everybody was stressed out. “The dam that might have been created by COVID-19 two months ago is now going to release all of the pent-up demand back into the market.” What we’ve noticed, however, is that as inventory levels have come up, the metaphorical water level also rises, which in turn reduces the number of rapids in the market. That’s why April was a pretty strong market, and things are continuing to look healthier.  Though the official dates keep changing, our city is expected to start a multiphase reopening soon. The dam that might have been created by COVID-19 two months ago is now going to release all of the pent-up demand back into the market. That means the river will be raging these next few quarters, and, assuming we can finally put this pandemic behind us, we’ll be preparing for a busy season that extends all the way into December.  If you have any questions about what was discussed in this message, or if you’re interested in buying or selling a home soon but aren’t sure how to proceed in these times, reach out to us. We’re always here to help, and we look forward to hearing from you.

As we head into May, our real estate market is starting to pick back up. Here are the latest numbers. The April numbers are in for our real estate market, so we’re taking a look at them today. Compared to last year, listings are down 21%, pending sales are down 22%, and listings under contract are down 23.7%. The pandemic has slowed down the activity in our market, but things have been starting to pick back up in the last few weeks. Our closings per month that sold over listing price in April was at an all-time high. To learn more about what’s going on, watch this short video.

Today I’m explaining how lessons from former NBA player Mark Eaton’s amazing book apply to real estate agents. At a conference in Orlando last week, I had the pleasure of listening to speaker Mark Eaton, author of “The Four Commitments of a Winning Team.” Many may be familiar with Eaton, who stands seven feet, four inches tall, from his professional basketball career with the Utah Jazz.  His book is an absolute page-turner that recounts his personal story. He was a mechanic who didn’t play basketball in high school and never went to college. A coach who encountered Eaton at the auto shop tried to talk him into becoming a member of a junior college basketball team.  Eaton had zero interest in basketball and shooed the coach away. However, as Eaton recalls, the coach was incredibly persistent; he approached Eaton 15 more times! Ultimately, he convinced this mechanic with no basketball experience to come attend workouts and devote just an hour of his daily time to the junior college team. Eaton joined the team and had success on the court. He went on to play for UCLA, where he didn’t enjoy nearly as much success. Nevertheless, coaches sent out some highlight reels to the worst team in the NBA at that time, the Utah Jazz, and they drafted Eaton in the fourth round.  As fans of the league know, Eaton went on to become one of the best defensive players to ever play the sport, racking up a record 14 blocks in one game and setting a record for single-season blocks (456) that has yet to be broken. “If you protect clients, they’ll remember what you did for them.” How did this transformation happen? It started with someone believing in him. Together, they started by working on the basics of the sport—how to dribble, how to block and get in the lane, and how to rebound.  So here are Eaton’s four commitments as applied to the real estate industry:  Know your job. Study scripts, do your roleplays, etc. Day in and day out, do whatever you must to master the craft. Do as you’re asked. There’s a lot of noise from supposed gurus telling you how to excel in this industry, but focus only on what clients are asking you to do for them. Make people around you look good. Be positive. If you’re cross-selling with someone, don’t drag them down or be dragged down to their level. Don’t blame anybody, either. Protect others. Our license requires us to look out for people’s best interests. If you protect clients, they’ll remember what you did for them and tell others about you. If you have any questions about the topic covered in today’s message, feel free to call or email me. I would love to speak with you.

I have a story to share with you that demonstrates what it takes to be a successful REALTOR®. What does it take to be a successful REALTOR®? To answer that question, I’ll share a quick story I posted on Facebook a couple of days ago. If you’re new to real estate, this story is especially important. Most of us are diligent about posting our successes online (e.g., “We sold a house in three days for full price with multiple offers!”) The downside to this is that the consumer thinks our job is easy.  The story starts when I was referred a client from an out-of-town RE/MAX agent. The client was the agent’s brother, and he was relocating to the Phoenix area due to a job transfer. He was a high Type D personality type—the kind of person who wants everything done immediately. I got the referral a couple of days before Christmas, but he needed to be in a house by January 6. It was a busy time in my household. Along with Christmas Eve, Christmas Day, New Year’s Eve, and New Year’s Day, I was celebrating my 60th birthday on Christmas. Furthermore, this buyer had three kids (one of which was a special-needs child) and four large dogs, so he needed a one-acre property on the west side of town.  We had a challenge on our hands. We found a home, but we couldn’t negotiate the proper close of escrow so we had to back out. Once we found another home, we got the offer accepted and negotiated the contracts on Christmas Eve and Christmas Day. The day after, however, we performed the inspection and found some issues. All the while, the seller’s agent wasn’t very helpful, and she actually told me she didn’t care whether the home sold or not. “Inventory is historically low, and as the year goes on, buyer demand will be high.” That’s when we started looking for a backup property, and we found one, but we still made another counteroffer to the previous seller and their agent to make the situation right. They didn’t, so we canceled that contract and moved on to the third house. Fortunately, this seller’s agent was great and expedited everything for us. On the 6th, we were able to hand over the keys to the house to my buyer.  We got the deal done, but it took a lot of time and teamwork. That’s what it takes in today’s market to represent a client, especially one who’s relocating. Inventory is historically low, and as the year goes on, buyer demand will be high.  We’re in a service industry, so remember to go the extra mile to make sure your clients are happy.  If you’d like to talk more about what it takes to be a successful REALTOR® or have any other questions, don’t hesitate to reach out to me. I’d love to help you.

I’m sharing why your average commission may have risen by $2,000 in the last five years. I have exceptional news for you: Did you know that over the last five years your average commission per transaction increased by $2,000? Back in 2015, the average commission was roughly $7,000. Today, it’s up to $9,000 per transaction. Those numbers are coming from the median price in Maricopa County.  In 2015 the average home value was $233,000. Every year since saw an increase, and in 2019 the average value was $306,500. I’ve been in real estate for 33 years, and that’s the highest median price I’ve ever seen. Overall, the median price has risen by 31.5% in the last five years. This, of course, helped to increase your commission.  What are you doing with that extra commission? Do you own real estate? If you bought a property back in 2015 for $233,000, it would possibly be worth $306,000 today. That’s a considerable boost.  “I’ve been in real estate for 33 years, and that’s the highest median price I’ve ever seen.” My challenge for you is to buy real estate. Help your clients understand this particular model. To download the graph mentioned in the video above, click here. If you have any questions about your rising commission, feel free to reach out to me by phone or email. I would love to discuss this with you further. 

Today’s video is about creating a solid business plan. Tune in to learn about the benefits of SWOT analysis. Here is a tip to ensure that your business plan is effective and will lead you to success: Do a SWOT analysis on yourself. SWOT stands for strengths, weaknesses, opportunities, and threats. You can also give the form to a spouse, co-worker, or even your favorite mortgage broker to perform the analysis on you. It’s a great way to get feedback from other people. However, don’t be upset by the feedback you receive; take that information and use it to better yourself. If you’re interested in doing using this analysis to improve your business plan, reach out to me and I’ll send you a downloadable file. Strengths. What factors about your business ensure that you’ll get the job done for your clients? Assessing your strengths will help you reflect on the advantages your company has over others.  Weaknesses. Where do you need to improve? Which factors prevent you from getting listings? Maybe you’re not strong enough on the closing side. Determining what you’re not doing as well as you could be will help you improve your plan and have more success. “Don’t be upset by the feedback you receive; take that information and use it to better yourself.” Opportunities. Your strengths are internal, but your opportunities are external. For example, both interest rates and inventory are very low right now and iBuyers are prevalent in the industry; how can you take some of these opportunities and incorporate them into your business plan? Threats. These are somewhat the opposite of your opportunities—what obstacles do you face? A lot of people think that Zillow and other iBuyers are threats, but even if they are a threat to you, your goal should be to learn everything you can about them and try to turn them into opportunities. We’ve witnessed that happening even here. A local agent started a Facebook page to get input from people about iBuyers and then created a whole iBuyer platform to educate Realtors about the iBuyer business. He took a threat and turned it into an opportunity, and you can, too. If you have any questions about today’s topic, don’t hesitate to reach out to me. I’d love to speak with you in more detail.

About three years ago, I decided to change my business based on some coaching that I received: I started to focus on setting up a perfect weekly schedule. Since then, I haven’t had a perfect week, but I have been working to use data to time block my day-to-day activities. Before then, I probably worked between 50 and 70 hours a week. Today I’m working somewhere around 45 hours a week at max, but I’m earning more and I’m enjoying life more. If you look at my weekly schedule (see 1:28 in the video above), you’ll see that it doesn’t have any appointments scheduled on Saturday or Sunday or anytime after 6 p.m. “If you can focus your time into compartments each day and then review your schedule for efficiency, you can both change your life and your financial success.” Here’s a general overview of my perfect week: 5 a.m.: Wake up to start my “miracle morning activities”: reading, journaling, exercising, and meditating 5:30 or 6 a.m.: Arrive at the gym to work out for an hour  7:30 a.m.: Take my daughter to school 9:30 a.m. on Monday mornings: Attend a call with the leadership of RE/MAX Professionals for 30 minutes 10 a.m. to 11 a.m.: Attend a team meeting from 11 to 11:30, where I review last week’s numbers: what I accomplished, what my team accomplished, and how my company overall performed 11 a.m.: Take a one-hour lunch break 1 p.m. to 2 p.m.: Do some follow-up calls 2 p.m. to 3 p.m.: Meet with agents who are considering joining our company 3 p.m. to 6 p.m.: Blocked out to take listing appointments That’s merely a general overview; certain days of the week have different periods blocked out for specific activities: Tuesdays from 7 a.m. to noon: Coaching calls Wednesdays from 10 a.m. to 11 a.m.: Meeting with RE/MAX leadership Thursday mornings: Training classes Friday mornings: Blocked out for golf If you can focus your time into two compartments each day and then review your schedule for efficiency, you can both change your life and your financial success. If you’d like me to work with you to help you design a perfect week, feel free to reach out to me. We can set up an appointment for coffee or a Zoom call and I can show you in more detail how the perfect week has helped me change my life for the better. Hope to hear from you soon! 

Today I want to give you a few tips about how to maintain and track successful habits in your business. Here in the office, my team uses something called the Daily Success Habits Tracker, and I want to take some time today to tell you about how it can help you. Over my career in real estate, I’ve found that agents either have good habits or bad habits. Obviously, the goal is to take those bad habits and transform them into good habits. With the Daily Success Habits Tracker, we are able to focus on making sure each day is productive. Here’s how it works: Essentially, the tracker is a kind of chart that we’ve attached a point-system to. The left column tracks the time throughout the day in half-hour increments. The center column lists the “61 Points of Rhythm,” which are 61 daily activities that are necessary to maintaining business; each activity is given a certain number of points, which you earn if you complete the tasks. Each task, such as prospecting via phone calls, can be completed more than once to earn multiple points. “This tracker is a good way to hold yourself accountable to productive activities.” The column on the right allows you to track your prospecting times for the various sessions you do throughout the day. At the top of the tracker, there is a dial tracker to allow you to see how many calls you made during your day. To see a visual representation of the tracker and to hear various examples in which agents can earn points, refer to 0:42 in the video above. Overall, this tracker is a good way to hold yourself accountable to productive activities, to help you look back on your day to see what you did right and wrong, and to help you improve your overall business production. If you have any questions about the Daily Success Habits Tracker or would like a copy it for your own purposes, don’t hesitate to reach out to me. I’d love to hear from you.

No matter if you’re a Realtor® or you offer some other service to buyers and sellers in the Valley, Nate’s List benefits all. Is your list of quality vendors to refer your clients to pretty short right now?  In light of the current construction boom in our Phoenix marketplace, I know mine is, and I’d like to add to my network. To achieve that, my team and I are looking to build an amazing client service list—Nate’s List, as we call it.  When it comes to mortgage lenders, title, and insurance, we have some deeply established relationships already, but our goal is to cast our net a little wider and foster relationships with all sorts of vendors who service buyers and sellers.  Since starting RE/MAX Professionals nineteen years ago, we’ve served around 60,000 clients across the Valley—many of whom would like to enlist the help of a professional, highly reputable provider to fill their specific needs.  Nate’s List will feature everything from landscapers to pool cleaners to clothing cleaners and more. If you provide a service that buyers and sellers can benefit from, I’d like to be the conduit between you and our past clients. “Our goal is to cast our net a little wider and foster relationships with all sorts of vendors who service buyers and homeowners.” Here are just a few examples of questions we’ve recently received from clients: “Do you know someone who can put a snake fence up?” “Do you know someone who can do a plumbing repair?” “Do you know someone who can install an electrical plug for my electric car?” And the list goes on and on!  In closing, if you’re a Realtor® and you’d like to build your own database full of amazing service providers, I’d be happy to sit down with you and discuss what we’re doing to make this happen. If you’re a vendor and you’d like to bring value to our clients, please fill out this form and let us know what sort of expertise you have to offer. No matter your area of specialty, I look forward to hearing from you soon! 

The 2018 Characteristics of New Housing Report is here, and I have all the key statistics to share with you. What does the 2018 Characteristics of New Housing Report say about last year’s national housing market? First of all, it said that 840,000 single-family homes were built, and they had the following characteristics:  10% had two bedrooms or less 45% had three bedrooms 45% had four bedrooms or more  36% of homes had three or more bathrooms (when I first got into real estate 33 years ago, a home with more than two bathrooms outside of the luxury market was unheard of) The median size was 2,386 square feet Of the 617,000 single-family homes sold in 2018, the following numbers were reported: 75% were purchased using conventional financing 6% were purchased using cash The median sale price was $326,400 The average sale price was $385,000 The median size was 2,435 square feet “All in all, our market is fairly strong.” When we look at the NAR statistics for all residential sales, there were 5,340,000 in total. The average days on market for those homes was 120 days. Here are the year-over-year statistics so far for 2019: Home sales are up 2.7% Supply is up 2.4% The average days on market has risen to 130 days Here’s what was recorded for the Phoenix area, in particular: Resale home sales are up 4.3% New inventory is up 4.1% The average sale price is $347,500 The median price is $278,000 The average days on market is 65 days  All in all, our market is fairly strong, and I hope this information helps you with your buying and selling plans moving forward in 2019. If you have any other questions about our market, don’t hesitate to reach out to me. I’d love to help you.

Telling the right stories can help you secure more clients, and today I’ll explain how. I recently read an article that explained how sellers lost $14 billion in equity last year because of the increasing number of iBuyers entering our market. Selling to these companies is usually advertised as a convenient deal, but is actually a very ineffective move for today’s sellers.  So, what can you do to dissuade sellers from going that route? One of the simplest ways is by doing what you do best: offering expert real estate advice. “You can use personal success stories of the clients you’ve helped to secure future clients.” Given that 71% of buyers are afraid to buy a home that needs work, some of the best advice you can offer sellers is to make strategic repairs. The right repairs and upgrades will not only bring a high return, but they’ll also help sellers to close quickly and for top dollar.  Once you’ve guided a seller to closing using this (or any other tips), you can use the success stories that come out of these experiences to help you secure future clients who might have otherwise considered selling to an iBuyer. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Why do agents join RE/MAX Professionals? Today I’m interviewing fellow agent Brady Bosworth to help answer that question. Today I’m sitting down with fellow RE/MAX agent Brady Bosworth to talk about his career as an agent, why he joined RE/MAX Professionals, and how this decision has benefited his business moving forward.  For your convenience, I’ve provided timestamps of our conversation in the video above so that you can jump ahead to the section(s) that interest you the most: 0:22—Some background on Brady’s career  5:05—Why he joined RE/MAX Professionals a little over a year ago7:47—The success he’s enjoyed because of this switch9:11—How he met his last client11:08—What he does for fun outside of real estate12:49—The best vacation he’s ever had 13:43—What’s on his travel bucket list 15:03—His business goals for 2019 1615—The assistance he’s gotten from other RE/MAX agents17:36—Why RE/MAX looks for learning-based individuals18:25—The value of our training classes 19:19—The type of mindset we encourage 20:26—What a solo agent can gain from joining RE/MAX22:38—Why Brady chose real estate 23:53—A recent transaction that’s symbolic of what RE/MAX is all about 25:54—Wrapping things up  As always, if you have any questions or there’s anything I can help you with, don’t hesitate to reach out to me. I’d be happy to help you. 

Today I want to give you my professional advice about how to track your leads. At one point in my 33-year career, I used to only track where my closings came from. But about two years ago, I was introduced to tracking every lead—how it comes in, the source, and our conversion rate. Let me give you an example: You do an open house and you get five leads. You add the five leads to the tracker, including their name, address, phone number, and you include the source (the open house, in this case). Additionally, if they give you the information that they’re interested in buying or selling, you’ll want to categorize them in the tracker accordingly. On our lead-tracking spreadsheet, we have all that information recorded, plus, the first contact date with the lead, the next contact date scheduled with them, and also the value of that lead—for example, a buyer looking to purchase in the $300,000 price range. From there, we can calculate a $9,000 projected commission. Looking at my 2018 tracker, I notice that we had 213 leads come in, 45 of which came in with an income potential of $912,000. My leads had an average of $20,000 in potential income per lead. “Knowing exactly how much return you get on your leads and their sources is vital.” By tracking our leads, I’ve found that we’re able to save money and/or move our money away from something that isn’t giving us the conversion we’re looking for and put it towards something with a higher conversion. Last year, we underwent 10 months of parallel tracking for two different high-cost marketing for internet leads.  For example, after tracking Zillow and a pay-per-click service, we found that one of those was producing three times the amount of revenue as the other. Because we could see that, we stopped paying money for one and then doubled down on the one that was working. Don’t be afraid to stop investing in something that isn’t working because you’re afraid of losing a possible lead that will come in. Knowing exactly how much return you get on your leads and their sources is vital, no matter if you’re running a team or if you’re working as an individual. Here are some other interesting facts our tracker also tells me about our 2018 business: 11% came from agent and client referrals 22% was tracked all the way to close 26% came from open houses 9% came from Zillow 4% came from sign calls 5% came from our sphere of influence At the end of the day, we know exactly where all our leads are coming from. I challenge you to start tracking each and every one of your own leads so that you can identify which sources are worth investing in. If you have any questions about lead tracking, feel free to reach out to me. I’d be happy to speak with you.

Creating a business plan will ensure you meet your goals. Here’s how. I’ve talked before about the success cycle, and today we’ll be using an aspect of that cycle in our discussion on business plans: clarity. Clarity helps you know exactly what goals you want to achieve, and creating a business plan is the best way to achieve your goals. When writing a business plan, there are a few things I recommend you do. First, do a SWOT analysis, which is essentially a self-examination of your own strengths, weaknesses, opportunities, and threats. Jot down these categories on a piece of paper and make a list for each one. You can ask others, such as loved ones or even real estate professionals, to do a SWOT analysis on you as well. This is a good way to find out things from another perspective (things you may not have admitted to yourself).  After you have a good list from your SWOT analysis, also think about including a marketing plan for the full 12 months of 2019. In my almost 33 years in real estate, I’ve noticed that most real estate agents have no sort of plan whatsoever. However, the successful ones do. Having a plan on how many blogs you’re going to write, how many postcards you’ll send out, or how you’ll attain leads are all ways to ensure a successful plan. “Clarity helps you know exactly what goals you want to achieve, and creating a business plan is the best way to achieve your goals.” Including a clear vision statement of what you want by the end of 2019 will help set the course you need to follow. Let’s say you want to close 100 transactions next year—how will you achieve this? You’ll break down how many listings you’ll need to take each month, how many buyer presentations you’ll need to go on, etc. I have some powerful tools that can help crunch the numbers on how much business you need to attract to meet your goals. All agents are different; some like working with expired listings, some use direct mail, some use open houses, and so on. I’d be more than happy to help you create a customized plan that focuses on what you like to do—just reach out to me. Together we can create a path for you to follow in the new year.

Following the success cycle can help you accomplish the big goals you’ve set for 2019. I recently attended a Tony Robbins event, and one of the powerful topics he covered was the success cycle. To help you find more success in your own real estate endeavors, I’ll be sharing Tony’s success cycle with you today. The success cycle is made up of four parts: potential, action, results, and belief/certainty. Each one of us has the potential to do anything we set our mind to. Let’s use an example goal of completing 100 transactions in 2019. Our actions will determine how we close these transactions.  As we do this, we need to track our results. For example, we need to know what our conversion ratio is when we meet with a seller. If you go on 10 listing appointments and gain a client through five, you have a 50% conversion ratio. Once you have this ratio, you can figure out how many listing appointments you’ll need to go on to achieve your goal of 100 transactions in 2019. You may have taken action, but if you don’t have the belief or certainty in what you’re trying to achieve, it will be difficult to get things done.  I’d like to share a story with you about belief and certainty. Many years ago, I went to a CRS conference where some attendees wore a color-coded dot on their badge. This dot meant they had done 100 transactions that year, and most people wearing these dots were speaking about their success on stage. I had never heard of anybody doing 100 transactions in a year, but once I learned how it could be done, I was certain I could do it. At this same conference the next year, I was able to wear the coveted dot on my badge. “If you don’t have the belief or certainty in what you’re trying to achieve, it will be difficult to get things done.” If you want to achieve greater things in 2019, reach out to me and we can figure out a plan that works for you. I’d be more than happy to coach you throughout the year and help you hit each goal you set. In the meantime, let me know if you have any questions or need more information. I look forward to hearing from you.

Are you following your ethical responsibility as a Realtor to do the right thing? Today, we’ll discuss why this is important and what it entails. Over the past few months, ethical concerns have been top-of-mind for Phoenix buyers, sellers, and homeowners. As a Realtor myself, I have noticed the rise of a few problematic trends within the industry.  First, there’s the matter of how showings are conducted. There is a set of instructions real estate professionals are supposed to follow when showing properties. Lately, many Realtors are ignoring these guidelines. This must change. Following the showing instructions will improve the process for everyone involved. Ignoring these guidelines, meanwhile, can engender feelings of ill will. Remember: You aren’t the only person who your actions affect.  If you were to cancel a showing or show up late without giving the seller notice, for example, imagine how disheartening this might be for them. Treating everyone’s time as being as valuable as your own is simply the right thing to do.  In addition to this problem, there’s also the issue of showing agents not providing sellers with feedback. Oftentimes, the seller of a property will ask that showing agents tell them what they thought by filling out a short questionnaire. This questionnaire is usually sent via email, and it’s generally very easy to complete. Taking the few moments required to provide this feedback is the least we as Realtors can do. “Each choice you make will shape the way our industry is viewed as a whole.” Also, make sure this feedback isn’t too generic. Saying that the “buyer didn’t like the house” with no additional reason or context isn’t good feedback at all.  When making decisions as an agent, put yourself in the seller’s shoes. As professionals, we must never disregard their time, needs, and feelings. Each choice you make will shape the way our industry is viewed as a whole. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

What if I told you that you could increase your business just by remembering “3, 2, 1?” Here’s what I mean. I’ve got a great tip for all of you agents out there today. It’s a simple way to communicate with 1,250 people over the next 12 months.  If you were to talk with 1,250 people in the next year, do you think your business would be better than it is now? It definitely would. Here’s how the “3, 2, 1” method works. First, focus on calling three past clients or other people from your SOI every day and have a conversation with them. If you do this each day, Monday through Friday, that would equal 750 contacts over the course of the year.  Next, focus on prospecting each day until you find two possible leads you can add to your SOI. That’s another 500 contacts over the course of the year. If you were able to close just 1% of those contacts, that’s an additional 12.5 transactions per year.  “Calling three people per day will result in an additional 1,250 touches per year.” Finally, you need to take some time out of each week to learn one new thing. Whether it’s a lesson from a webinar, a book, or a conference, learning something new every week will give you 52 new pieces of knowledge each year. If you can work in one referral per day to someone in your SOI, that is a huge bonus. I hope you use this method to increase your business and have more success in the coming year. If you have any questions about the “3, 2, 1” method or anything else related to the real estate business, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Are we headed for a crash? Let’s discuss this crucial question. Recently, a lot of people have been asking us whether the market is going to crash.  In our local Phoenix area, the economy and the new construction market are booming. This is very similar to what we saw before the last market crash, but this doesn’t necessarily mean history will repeat itself.  During the last crash, a lot of investors were entering our market with the intention of riding out potential appreciation. Today, though, the prospect of appreciation isn’t the primary driving force behind most home purchases. This fact alone highlights the stark contrast between our market now and what we saw years ago.  The bottom line is this: We may experience a correction within the next year or two, but today’s market conditions are a far cry from what was the case during the last crash.  “We may experience a correction within the next year or two, but today’s market conditions are a far cry from what was the case during the last crash.” If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

What role the earnest money deposit plays in a real estate transaction impacts buyers and sellers in different ways. In a real estate transaction, earnest money is a dollar amount that buyers put down as a deposit to show the seller that they’re sincere. What should buyers and sellers know specifically about this earnest money deposit, though? If you’re a buyer, I recommend an earnest money deposit of at least 1% of your total offer—maybe even 2% if you’re in a multiple offer situation. For example, if your offer is $500,000, your earnest money deposit should be $5,000 (or perhaps $10,000). Your earnest money deposit is protected by the purchase contract we have here in Arizona, and there are many ways you can get it back if the deal falls through as long as you’re bargaining in good faith. “I recommend an earnest money deposit of at least 1% of your total offer.” If you’re a seller, you want to get as much earnest money back as possible because you’re the one who’s liable in this situation. If your house is off the market for two months and the buyer doesn’t qualify at the last minute, you’ll have to relinquish that money—you won’t be able to reclaim it. However, if the buyer gets to close of escrow, they’re completely funded, and they meet all other contingencies, but for whatever reason they just decided not to close, then you’d be completely refunded for having your house off the market for that long. If you have any other questions about the earnest money deposit, real estate contracts, or the home buying process in general, don’t hesitate to reach out to me. I’d be happy to help you.

Interest rates are predicted to continue rising. Today I want to take a look at what it means for your clients. Today I want to take a minute to talk about a common topic in the real estate industry: interest rate predictions. Jamie Dimon, the CEO of JPMorgan Chase, predicts that the yield on the 10-year Treasury bond will go up 5% in the next 24 to 36 months. Typically the spread between the 10-year Treasury bond and a 30-year mortgage is about a 1.75% yield. The yield as of August 7 for a 30-year mortgage is 4.75% with a spread of 1.77%. If the yield goes to 5% then the 30-year mortgage rates rise to 6.75% With these interest rate changes, your clients’ buying power will of course be affected. For example, if they were to buy a home for $290,000 with 5% down, their payment would be $1,437. However, if they wait until the interest rate increases to 6.75%, that same loan would give them a payment of $1,786 per month. This $349 increase in interest paid per month is nearly $4,200 per year and $125,000 over the life of the loan. “Now is the time to encourage your buyers and sellers to jump into the market before it is too late.” Since we believe that the interest rates are going to increase, now is the time to encourage your buyers and sellers to jump into the market before it is too late. If you have any questions, please feel free to reach out to me. I look forward to speaking with you soon. This communication is provided to you for informational purposes only and should not be relied upon by you. Nate Martinez nor RE/MAX Professionals are not mortgage lenders and so you should contact a qualified mortgage broker directly to learn more about its mortgage products and your eligibility for such products.

What’s going on right now in our Phoenix area real estate market? Let’s examine the latest numbers and find out. The latest numbers for our Phoenix metro real estate market are in, so let’s review them today.  As of July, there were only 15,754 active listings in our residential market. This constitutes an 11.1% year-over-year decrease. Meanwhile, the number of pending listings also dropped—undergoing a 3.4% decrease from last year.  Monthly median sales prices, though, have risen 9.4% since July of 2017, for a current median sale price of $267,990.  In the new construction market, activity is booming. Yet with so few homes being built in the $200,000 and under price range, both resale and new construction homes within this bracket are seeing rapid appreciation.  The market right now is very strong here in our Phoenix area, and it will likely continue to be so. With all of this in mind, you may be wondering what these conditions mean for those looking to buy or sell. “The market right now is very strong here in our Phoenix area, and it will likely continue to be so.” For sellers, it’s important to keep a pulse on how seasonal market trends may impact your goals. Conditions tend to lag slightly as we head into the fourth quarter, so being mindful of this change and strategizing your sale accordingly will be crucial to your success.  For a buyer, it’s important to realize that interest rates are set to rise. That said, those thinking of buying should seize the opportunity to buy now while conditions are still favorable.  If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

What does Zillow’s new Instant Offer program mean for Realtors? Today I will discuss how this change may impact you. Zillow has undergone some changes recently, so today I would like to talk about what is new with the site. If you visit Zillow’s website right now, you’ll probably notice that Realtors have been removed from every listing on the site. Now, instead of the name of an agent, the site is advertising their new Instant Offer program. This program shows what Zillow will pay a homeowner for their property. Before, Zillow gave homeowners the opportunity to reach out to agents directly. Now, they are moving past that. This isn’t to say Zillow may not sell leads back to Realtors, but for now, the Instant Offer program has taken the place of agents on the site. So, how is this affecting today’s Realtors? For one thing, it means that people who advertise heavily through Zillow, myself included, will no longer have the option to do so. However, it is actually investors who will be most affected by this change. This is because Zillow will be getting the first crack at properties investors may have previously been the first to capture. I also believe that this change will place Zillow in more direct competition with other platforms like Opendoor and OfferPad. “Zillow will be getting the first crack at properties investors may have previously been the first to capture.” It is important for Realtors to be aware of this change and how it may affect them. Staying informed is a critical aspect of any agent’s career. If you are concerned about this change, my recommendation is to focus on your past client database. Build deeper connections with people you have already formed relationships with. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Phoenix real estate is doing extremely well right now. Here’s what the latest numbers are telling us. The latest numbers are in and I’m excited to share them with you today. Let’s get right to it. In March of this year, 9,402 homes closed escrow. In January, we only had 6,000 closed sales, which is still a strong number. This is one of the strongest first quarters we’ve seen in a while. The market is up 36%, but inventory has dropped almost 12% at the same time. There are currently 21,703 homes active on the MLS today. The average list price is up 8.8% to $381,000 and the average sale price is up 9.5% to $316,400. One of the most fascinating things I found was when looking at this year’s numbers compared to the numbers from the past 18 years. Back in 2001, the average price in the valley was $175,900. In 2007, the market roared to a peak of $345,900 before crashing and bottoming out in 2009 at $159,080. We’ve made a significant rebound since. Today, the average price is $316,365. People who bought at the peak are close to being back where they were. People who bought 17 years ago have more than doubled their money, as have the people who bought at the bottom of the market. “People who bought at the peak are seeing values rise back to where they were before.” As an added note, I’ve seen more cranes in the sky in the Phoenix than I have in the last 10 years. High-rises, hotels, and more are being built all around the Valley, which is great news for our economy and ultimately, our market. I hope your market is doing well. If you have any questions for me at all about the latest numbers or about the business in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

What’s going on in the Phoenix real estate market? Here’s what you need to know. Let’s talk about the hot, robust real estate market in Phoenix. Last month alone, almost 17% of all homes that closed did so above list price. When it comes to buyers making offers on houses, you’ve got to make sure that you’re writing your offers very aggressively. Only 3% of the upper-end homes actually got any type of seller concessions. When you get below $250,000, that’s still a pretty high percentage of sellers that will offer concessions. In that same price point, homes are selling way above list price as well. We’ve experienced multiple offers on almost every home listed above $250,000. In preparing an offer, you want to come in with a higher earnest money deposit, short inspection time, few contingencies, and don’t ask for concessions. “In this market, you need to come forward with your highest and best offer.” When you’re representing the seller in today’s market, make sure that you’re studying the different buyers and talking to their lenders so that you can select the absolute best buyer possible. Again, in a hot market like today’s, when houses are selling above list price, you need to come forward with your highest and best offer. Houses aren’t staying on the market very long. In fact, we have less than three months of inventory available, which is almost 18% lower than this time last year. If you have any questions, please feel free to reach out to me. If there is a topic you’d like me to discuss in a future video, send them my way; if I select yours, I’ll send you a $50 gift card to a restaurant of your choice. I look forward to hearing from you.

Today I’m joined by Sarah Michelle Bliss, who has been by my side for the last 20 years of my real estate career. She’s a great success coach, author, and real estate trainer. We’ve put together a great class on Thursday, July 26th from 3:00 p.m. to 6:00 p.m. that we want to tell you about. It’s called “10 Ways to Level Up Your Real Estate Business” and we will be walking you through a ton of information to help you become more proficient and get the most out of the hours that you are working. The class is around three hours long, but it’s filled with content that will help you be more present at work and have more time off to enjoy life. “We can’t wait for you to join us.” As a bonus for being there, we’re also going to be giving you a copy of our 2018 business plan. It’s a complete business plan that takes you all the way through the steps it takes to build a successful real estate company. Two of the buzzwords we use in our complete agent development are proactive and intentional. That’s where most agents struggle. They aren’t being consistent and proactive and completing the necessary activities to generate the results you want. Space is limited so make sure you get signed up soon. You can register here. If you have any questions about the class or the real estate business in general, don’t hesitate to give me a call or send me an email. I would love to hear from you.

Today, I have some advice on how you can handle multiple offer situations. The Phoenix real estate market is absolutely on fire, and December 2017 was one of the busiest months of my career. Now that we’re in January of 2018, we’re getting multiple offers on just about every property that we place on the market. This affects the buyers possibly even more than the sellers. “An escalation clause is a technique that may be necessary to get the house you want in this hot market.” If you’re a buyer or representing a buyer in today’s marketplace, an escalation clause will help you beat out the current highest offer by offering a certain amount more. Essentially, it is a clause in the contract that says that the buyer is willing to pay X amount more than the highest offer received by the seller.  For example, let’s say you’re making an offer on a house priced at $400,000. You can put in an escalation clause that says you’ll outbid any other buyer by, say, $1,000. This might be a technique that is necessary to get the house that you want. Inventory is still very low in the valley, but the demand is very high, so hopefully an escalation clause will help give you the edge you need to get the home of your dreams. If you have any other questions about escalation clauses or you’re thinking about buying or selling a home in our market, give me a call or shoot me an email. I’d be happy to help you.

As you may remember, I did a video a couple of months ago on the book “Wealth Can’t Wait” by David Osborn and Paul Morris. Around that same time, I had the pleasure of flying David in to give an hour-long talk on his book and how to build wealth. The information he shared was truly valuable and is sure to help you build wealth in your life. “In his talk, David provides a lot of insight into how to build wealth.” The next time you have an hour of free time, I’d like you to sit down and watch David’s presentation. You can find the video from that seminar here. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Over the last couple of months, I’ve heard the word “radon” too many times. It’s interesting because whenever I talk to other real estate professionals, I ask them how many of the homes they’ve dealt with have had radon in them, and they always say, “None.” Some buyers from the East Coast have some knowledge about radon, as do a few homeowners. Radon came to my attention when I was representing a buyer during a transaction on a house in Scottsdale. This house had fallen out of escrow because the radon test came back two points higher than the national standard of 4%. “If the house has a basement or underground air units, order a radon test.” Radon is an odorless, poisonous gas that can cause lung cancer over long periods of exposure. As I’ve learned more about radon, I’ve found that the reason most people don’t find it in our area is that hardly anyone looks for it. I was always taught that radon tests are necessary in mountainous regions because radon comes from granite in the ground. However, this Scottsdale house was on a flat piece of dirt and ended up having a high radon content. We made the offer contingent on the seller getting radon levels down. At first, the seller paid $5,000 to fix the problem. The radon levels did not go down. The seller then spent another $5,000. After all the work they did and money they spent, the radon levels actually went higher, which was no good, and the buyer walked away. I just want to make sure that people are aware that radon is out there. If you are buying a home, ask for a radon test. They only cost $300 to $350. If the house has a basement or underground air units, then you definitely need to order a radon test. If you have any other questions about radon or buying a home, just give me a call or send me an email. I would be happy to help you!

There are 14 vital activities that every real estate agent should do. Last time, we focused on the seven things you need to do to help sellers. Today, we’ll focus on what you need to do to master representing buyers. 1. Lead generation. Again, you need to be constantly generating new leads through open houses, Zillow, yard signs, and referrals from past clients, family, and friends. 2. Have a conversion process. What do you do to convert this person from a name and number into a buyer and broker contract? 3. Paperwork. Get that agreement signed and take care of agency disclosures and buyer advisories while you are in the beginning stages of working with the buyer.    4. Finding and showing the perfect home. This is the fun part. You get to guide the buyer through their home search. “You need to be able to write an offer that will get accepted.” 5. Writing and negotiating the best purchase agreement. You need to be proficient in making sure that your offers protect the buyer’s best interests. You also need to make sure that the buyer understands all of the inspections and finance contingencies. The bottom line is that you need to be able to write an offer that will be accepted. 6. Closing. Again, it’s important to make sure that the closing process goes smoothly. Be there with your buyer at the closing table in case they have any questions or concerns. You are there to be their advocate. Let them know that you care by showing up to closing. Then, when everything has been done, you can ask if there is anyone they can refer you to. 7. Post-closing activities. In my 31 years of real estate, I’ve noticed that this step gets skipped the most. What are you doing to develop a deep relationship with this client after you close escrow? After all, they may be a client who will bring you business for the rest of your life. You need to have detailed plans in place to make sure that you are relevant in their mind. Call them up every now and then, invite them to sporting events, or host annual client appreciation events. You can also check to see how they like the house. If they have any challenges or need a repairman, you can put them in touch with one. You will position yourself as a great real estate resource. I hope these 14 activities will help you grow your business. If you have any questions, please don’t hesitate to reach out to me. I would be happy to help you!

There are 14 vital activities that each Realtor should do. I’ll go over the first seven for you today. 1. Lead generation. It’s so important to constantly generate leads. 2. Converting leads. Turn those leads into appointments and then into contracts. 3. Administrative work. Most Realtors don’t like paperwork, which is why we have transaction coordinators to help us out. Administrative paperwork is a vital activity that we must do ourselves or delegate to others. 4. Have good presentation. It’s important to present at listing appointments, in front of buyers, and in the negotiation of contracts. Whether you are representing the buyer or seller, you have to be able to negotiate on their behalf. 5. Marketing. You need to have a strategic marketing plan in place. Whether you are trying to connect with people through farming, Zillow, or wherever it may be that you are spending money to generate leads, marketing is a highly important function of being a Realtor. “There are many components that you need to master, but the closing component is extremely important.” 6. Closing. All of your hard work goes into the closing day. You want to make sure that you are able to get the closing done right. There are many components that you need to master, but the closing component is extremely important. Make sure you go to closings so that you can represent your client. By going to the closing, you will also be present in your client’s mindset and they will be more likely to send your information to their friends and family. 7. Post-closing activities. What do you do once the house is closed? Do you just cash the check and never talk to those people again? Or do you want these people to become part of the fabric of your life? It’s very important to have an ongoing follow-up plan for everyone you represent. After all, if you had a good transaction, then they know, like, and trust you. They also know what to expect by working with you. Now it’s up to you to stay in constant contact with them. If they need help with the house, finding contractors, or dealing with home warranty issues, you should be their advocate. Invite them to dinner, call on them cordially after closing, or invite them to client events. Stay tuned for the next seven tasks that every real estate agent should do. In the meantime, if you have any questions, just give me a call or send me an email. I would be happy to help you!

Are you a real estate agent who wants to build wealth? I want to let you know that you’re invited to our next training session, where you’ll learn how to do exactly that. Join RE/MAX Professionals Are you a real estate agent who wants to build wealth? I want to let you know that you’re invited to our next training session, where you’ll learn how to do exactly that. You’ll learn how to embrace the habits and mindsets of the wealthy. You’ll also learn the seven pillars of wealth-building from none other than the guy who wrote the book—literally. We’re flying in “Wealth Can’t Wait” author David Osborn. We’re going to give away all of our strategies and systems so you can build a profitable business. When the event is over, you’ll leave with not only the knowledge to build wealth, but also a copy of David’s book. “We’re giving away all of our strategies and systems so you can build a profitable business.” However, space is limited so only the first 200 in attendance will receive this free copy. To RSVP for this free event, click here. But there is one catch after you register: you have to show up. We hope to see you there on Thursday, November 2nd starting at 8:30 a.m. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.