Stay on Top Tomorrow with Fourteen Hot Trends for 2009                                  1
Triple Play 2008 REALTOR® Conven...
Stay on Top Tomorrow with Fourteen Hot Trends for 2009                                   2
Triple Play 2008 REALTOR® Conve...
Stay on Top Tomorrow with Fourteen Hot Trends for 2009                                     3
Triple Play 2008 REALTOR® Con...
Stay on Top Tomorrow with Fourteen Hot Trends for 2009                                    4
Triple Play 2008 REALTOR® Conv...
Stay on Top Tomorrow with Fourteen Hot Trends for 2009                                  5
Triple Play 2008 REALTOR® Conven...
Stay on Top Tomorrow with Fourteen Hot Trends for 2009                                      6
Triple Play 2008 REALTOR® Co...
Stay on Top Tomorrow with Fourteen Hot Trends for 2009                                  7
Triple Play 2008 REALTOR® Conven...
Stay on Top Tomorrow with Fourteen Hot Trends for 2009                                   8
Triple Play 2008 REALTOR® Conve...
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  1. 1. Stay on Top Tomorrow with Fourteen Hot Trends for 2009 1 Triple Play 2008 REALTOR® Convention December 9, 2008 Stay on Top Tomorrow with 14 Hot Trends for 2009 Bernice Ross, CEO, RealEstateCoach.com Copyright 2008, all rights in media reserved I. Learning Objectives: Participants in this session will learn: A. Fourteen trends and fourteen opportunities to grow your business in 2009. B. How to improve your personal communication skills based upon technological expertise and generational differences. C. How to implement the latest technological trends into your business including syndication strategies, blogging, and social networking. D. How to use innovation to keep your business strong. II. Marketing Quiz A. How much did you spend marketing online in 2007? _____________ B. How much is your 2008 web marketing budget? _______________ C. How much are you planning on budgeting for 2009? ____________ III. Trend #1: The best buyer’s market in 70 years A. Plenty of inventory, historically low interest rates, and a considerable amount of great bargains due to foreclosures. B. Reasons to buy now. 1. Smart investors are contrarians (Trump, Buffet) 2. Ideal move-up market 3. 1.65 million investment sales this year—average investor purchases two properties per year. Low rates = more cash flow C. Opportunity #1: Get more buyers off the fence and under contract 1. Work with rent calculators to make this determination 2. Example: Buyer’s rent is $1,500. Purchase price is $300,000. Down payment is $30,000. Thirty year loan of $270,000 at 6.25 percent. Buyer owns property for 8 years and is the in the 28 percent bracket. Rent and property appreciate at 2.54 percent per year (inflation rate) a. Cost of renting $142,016. b. Cost of buying with tax benefit $117,754. c. Buyer saves $24,262. 3. Your secret weapon: wealth accumulation a. From 1995 to 2004, the average renter accumulated $4,000 of wealth. In contrast, the average homeowner had a new worth of $184,400, of Copyright 2008 Bernice L. Ross, www.RealEstateCoach.com All Rights in Media Reserved
  2. 2. Stay on Top Tomorrow with Fourteen Hot Trends for 2009 2 Triple Play 2008 REALTOR® Convention December 9, 2008 which approximately $60,000 was due to home ownership. To account for the difference of $60,000 of wealth accumulation, a $200,000 house would have to decline by 30 percent. b. Each year a buyer waits to purchase a median priced home, they lose $6,000 in wealth accumulation on a median priced home. c. If rates increase from 6 to 7 percent, they lose an additional $1,578 (or $7,578 total in wealth accumulation) each year they wait to purchase. d. If interest rates increase from 6 to 8 percent, they lose $3,221 (or $9,221 total in wealth accumulation) each year they wait to purchase D. What if prices go down—show them the net cost of waiting. Interest Rates and the Cost of Waiting to Purchase $400,000 loan (numbers rounded to the nearest whole dollar) Interest Monthly Monthly Annual cost 30 year cost 30 year cost Rate Payment cost 1% 1% increase for 1 percent for 2 percent increase increase increase 6% to 7% 2,398 to 263 3,156 $94,680 2,661 7% to 8% 2,661 to 274 3,288 $98,640 $193,321 2,935 (6% to 8%) 8% to 9% 2,935 to 283 3,396 $101,880 $200,520 3,218 (7% to 9%) IV. Trend #2: The demise of the real estate ATM machine and the high cost to consumers A. In 1950, the average consumer’s debt was 18 percent of their annual income. In 2007, that number is 117 percent. B. Foreclosure problem is over-reported—filings vs. actual foreclosures C. 35 percent own their properties free and clear. D. Good news about the stimulus package plus higher FHA loan amounts (up to $729,750) E. Opportunity #2: Become distressed property workout specialists 1. Use your marketing materials to help owners who are in financial trouble negotiate a workout on their property through HopeNow.com, a loss mitigation company, or if no other alternative, do a short sale on their property. Also, consider a consumer attorney from http://www.NACA.net to help negotiate the workout if needed. 2. Better than price reductions—interest rate buy-downs Copyright 2008 Bernice L. Ross, www.RealEstateCoach.com All Rights in Media Reserved
  3. 3. Stay on Top Tomorrow with Fourteen Hot Trends for 2009 3 Triple Play 2008 REALTOR® Convention December 9, 2008 3. Permanent buy down example: $500,000 purchase price, $450,000 loan at 6.5 percent. a. For $18,000 the buyers’ loan is reduced $289 per month (FHA buy down). b. To reduce payments by reducing the price would require a $45,800 reduction. V. Demographic Trends A. Trend #3: Different age groups require different styles of communication and respond best to different types of technology. 1. Traditionalists: born before 1946 prefer handwritten notes, face-to-face, and telephone communication. Many lack computer skills. Expertise and trust matter. 2. Baby Boomers born 1946 to 1964: Communicate with them by phone, email, or snail mail. They want relationships first, not information. 3. Gen X: born 1965 to 1976: Highly independent, prefer information, not relationship. They prefer texting and messages on social networking sites such as Facebook, MySpace, and Twitter. 4. Gen Y or Millennials: 1977 to 1994—collaborative. Like Gen X, prefer text messaging. Meet them on Facebook, SecondLife.com, YouTube, & Twitter. 5. Opportunity #3: Communicate the way your clients want to receive information with Jott.com. B. Trend #4: Conversation centered, not agent centered 1. Join the online conversation as a blogger. a. Benefits: better search engine placement, inexpensive, clients learn to trust you, little competition. b. Blogging tips: FAQ from past emails, pictures (use “Creative Commons” with attribution from Flickr.com), information about local events, involve community, have fun, use Jott! 2. Opportunity #4: Mine the treasure trove of posts in your undeleted emails. C. Trend #5: Mash it up and make it sticky 1. Don’t want to blog—mash-ups (different applications on one site— mapping, online price evaluation, polling tools, video, etc.) are for you! 2. Opportunity #5: Make it sticky a. Obeo—best tool to create stickiness. It also tracks room views plus differentiating web visitors from agent/MLS visitors b. Inexpensive says to mash-up your site include Gasbuddy.com, Eventful.com, WalkScore.com, and RottenNeighbor.com Copyright 2008 Bernice L. Ross, www.RealEstateCoach.com All Rights in Media Reserved
  4. 4. Stay on Top Tomorrow with Fourteen Hot Trends for 2009 4 Triple Play 2008 REALTOR® Convention December 9, 2008 D. Trend #6: Social networking: have social graph will travel 1. The next generation of consumers and agents will demand that you meet them on their turf by blogging, twittering, and using video. 2. Social graph refers to your “friends,” i.e., people you communicate with or follow online. 3. Being “friends” means engaging in the online conversation, not promoting your services. Social networking is useless unless you are willing to engage with the community. 4. Link up on LinkedIn, Facebook, Twitter, and SecondLife 5. Opportunity #6: An hour per day drives business your way a. Post a profile on Trulia and Zillow and answer client questions to build their exposure and online credibility. b. For agent-to-agent networking, develop referral leads using ActiveRain or RealTown. c. Set up a profile on Facebook and Twitter. Send email through each of these sites to avoid receiving spam. d. Use Plugoo or Meebo.com to add instant messaging to your site. e. Use Yoono.com to organize your social networking sites f. The one minute connection: use gaps in your schedule to “Tweet” on Twitter (send a 140 character message), take a photo for your blog, or answer a question on a social networking site. VI. General Technology Trends A. Trend #7: Welcome to My Cloud—how the “Grid” will revolutionize the web 1. Shift to fiber optics 2. No longer tethered to a machine 3. All applications will take place in the “cloud.” 4. The next generation of search—search “visually” with SearchMe.com 5. Opportunity #7: Dump your box computer and say hello to digital transactions by going mobile with a tablet PC. B. Trend #8: iPodification 1. Services are going mobile and being integrated into single platforms— iPhone and Google’s Android. 2. Your smart phone will be your organizer, television, theater, TV remote, laptop, house key, credit card, debit card, money, and passport. It will track Copyright 2008 Bernice L. Ross, www.RealEstateCoach.com All Rights in Media Reserved
  5. 5. Stay on Top Tomorrow with Fourteen Hot Trends for 2009 5 Triple Play 2008 REALTOR® Convention December 9, 2008 taxes, medical records, find parking places, and be secure with genetic identity. 3. Not just another alarm clock—Chumby.com 4. Opportunity #8: Obtain a dot-mobi address that uses short links rather than descriptions. Market using “SMS” technology that optimizes your listings for cell phones. (Transpera.com, VFlyer.com, or Realbird.com) VII. Real Estate Technology Trends A. Trend #9: Consolidation 1. MLS consolidation (MLS 5.0: (Saul Klein) Agent is the center of the conversation; blogging, social networking, and online communities integrated in one place; multilingual; enter information once for MLS and syndication. 2. Technology vendors are consolidating services—fewer platforms, more features—one stop service 3. Opportunity #9: Better marketing at reduced costs giving consumers the one stop shopping they want. C. Trend #10: Web 2.0 means less cost, less effort, and better results 1. Most web 2.0 strategies are significantly less expensive than traditional marketing strategies. a. PPC (pay-per-click) vs. CPM (cost per 1,000 impressions) vs. print advertising: $50.00 for a newspaper add buys 5,000 zip code targeted impressions (CPM) using Zillow’s EZ Ad program. CPM is usually cheaper than using SEO technology and much cheaper than PPC. 2. Syndication—the latest way to market your listings. Syndication means placing your listing data in one place that then sends out that data to other websites or sources. a. Syndicate your listings to 30 major web portals with Point2 agent plus well over 100,000 member websites with their Agent Handshake program. Their partners include CraigsList, eBay, Facebook, Trulia, YahooAds.com, GoogleBase, and Zillow. b. Make your listings stand out with at least 20 pictures—increases page views on your site up to 300 percent. c. For luxury estates with prices of $1 million or more, post them on UniqueGlobalEstates.com. 4. Track results with Point2, Google Analytics, or GetClicky.com—great way to obtain price reductions. 5. Opportunity #10: Copyright 2008 Bernice L. Ross, www.RealEstateCoach.com All Rights in Media Reserved
  6. 6. Stay on Top Tomorrow with Fourteen Hot Trends for 2009 6 Triple Play 2008 REALTOR® Convention December 9, 2008 a. Show sellers how you market their property on over 30 major real estate portals plus thousands of agent websites internationally to convert more listing leads and to attract more buyers. b. The most visited place to post your listings—it’s not Realtor.com! D. Trend #11: Lifestyle Marketing 1. Become the Mayor of your zip code: Let your posts, your website, and or blog be about the lifestyle in your area. Get “Google juice” by adding podcasts and video. 4. Opportunity #11: Own your zip code URL & create more value to your business. Zip code URLs are easy to obtain: LiveinSummitBay08041.com or 10560Elm08041.com E. Trend #12: Video apps—the hottest new application 1. Vlogs (video blogging): Not a good writer? Use a simple video camera on your computer to create a VLOG—a video blog. You can also do an update on new listings, mortgage shifts, interesting community information, etc. 2. Use your smart phone to make a video clip and post it online including on Facebook, YouTube, and iTunes. 3. Video syndication to 15 different sites including YouTube, Yahoo and Google video at no charge through TubeMogul.com 4. Market your listings on cable television for as little as $8.00 to $12.00 per commercial targeted to specific geographical regions you serve. (Spotrunner.com). 5. Opportunity #12: Ten ways to use video in your business and get more Google juice! a. Live like a local b. Video mail, not email. You can purchase a great webcam for under $100. Most services are free. Recipients click on the link to sere your message. c. Save gas with video caravans d. Preview neighborhoods and houses for relocation clients e. Video what you like and Tweet about it f. Get a jump on the competition with video property previews for clients g. Architectural tour h. Before and after staging videos i. Inspection videos j. Video testimonials VIII. Houses of the Future Copyright 2008 Bernice L. Ross, www.RealEstateCoach.com All Rights in Media Reserved
  7. 7. Stay on Top Tomorrow with Fourteen Hot Trends for 2009 7 Triple Play 2008 REALTOR® Convention December 9, 2008 A. Trend #13: What’s old is new and what’s new is surprising! 1. Smarter houses, solar powered houses, “self-healing” houses, straw houses, and houses made of recycled products. 2. Opportunity #13 Niche your business to specialize in helping owners with the technologies of the future including going “green.” IX. Two surprising technologies that may find their way into your business A. Trend #14 3-D Interactivity Married with Nanotechnology 1. “Creature Feature” 2. Nokia’s Morph 3. Opportunity #14 Innovate to dominate X. What steps will you take? If your online budget is zero, what’s free: A. Point 2 listing syndication to 30 sites, blog, and analytics for the first six months. B. TubeMogul.com syndication to 15 video sites. You can also post videos on iTunes. C. Profile marketing on Trulia, Zillow, and RealTown D. Jott.com E. Meebo for instant messaging F. Mash-ups including Gasbuddy.com, Eventful.com, and WalkScore.com, G. Join the online conversation: LinkedIn, Facebook, and Twitter H. Yoono to organize your social networking activities Additional Notes ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Copyright 2008 Bernice L. Ross, www.RealEstateCoach.com All Rights in Media Reserved
  8. 8. Stay on Top Tomorrow with Fourteen Hot Trends for 2009 8 Triple Play 2008 REALTOR® Convention December 9, 2008 Resources from Today’s Session 1. To order Bernice’s newest book, Real Estate Dough—Your Recipe for Real Estate Success, her exciting new game, Real Estate Dough Negotiation, or her best selling book Waging War on Real Estate’s Discounters that shows you how to net more money for both you and your sellers, visit www.RealEstateCoach.com. 2. If you’re tired of the negative news in the press, visit us at RealEstateCoach.com for Positive REALTORS®, a FREE weekly audio broadcast that you can listen to any time on your computer or download to your iPod or MP3 player. Keep current about what’s positive about today’s real estate market. http://listenandlearnrealestate.com/news.html 3. To subscribe to our FREE NEWSLETTER, order any of our comprehensive training programs, to hire a real estate coach, or to order our Audio CD Scripts Library with over 220 real estate scripts on audio CD, visit www.RealEstateCoach.com. 4. To learn more about working with luxury properties and to be “in the know” about the luxury market, visit our blog at www.LuxuryClues.com. 5. To learn more about how to implement Call Capture in your business, visit: http:// www.realestatecoach.com/marketing/proquest.html 6. To order a single property website using the seller’s address as the URL, visit www.realestatecoach.com/marketing/agencylogic.html, www.ListingDomains.com, or create your own template and register it at www.GoDaddy.com. 7 To produce a television commercial use www.spotrunner.com or to produce a web movie go to www.TurnHere.com or www.InmanStories.com. 8. To participate in the National Listing Service, publish your listings on multiple international websites, plus to create a website that actually converts leads and supplies drip marketing, visit: http://agent.point2.com/selfreg/RealEstateCoachSelfReg.asp 9. For expired listing leads including tracking of FSBO and call capture leads, plus mail merge program, visit http://www.realestatecoach.com/marketing/redx.html 10. To decorate your houses on-line and track room views, visit www.Obeo.com. Copyright 2008 Bernice L. Ross, www.RealEstateCoach.com All Rights in Media Reserved

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