CRISIS?
Danger Opportunity + “ Crisis”
C.R.I.S.I.S <ul><li>A  C ircumstance  R equiring  </li></ul><ul><li>I mmediate  </li></ul><ul><li>S hift  I n  S trategy! ...
The Market Has Shifted Dramatically <ul><li>Sales volume and transactions have dropped drastically. </li></ul><ul><li>Inve...
So, What Happened?
People … <ul><li>Over spent and under saved </li></ul><ul><li>Over borrowed and over paid </li></ul>And too many got in ov...
Now they’ll … <ul><li>Under spend and over save </li></ul><ul><li>Under borrow and under pay </li></ul>And the economy wil...
We Are in the Midst of One Major Shift! <ul><li>You shouldn’t be surprised. </li></ul><ul><li>Economic history repeats its...
So, the Economy Shifts and Therefore Real Estate Markets Shift <ul><li>They  always  have and  always  will </li></ul><ul>...
…  IF YOU DO THE RIGHT THINGS!
The next 180 days may be the toughest economic days you’ll see for the rest of your life! But you better step it up!
No Kidding   –  House on Fire!
To Shift or Be Shifted … That Is the Challenge We All Face Professionally Right Now!
The Numbers That Drive Real Estate
The Numbers That Drive Real Estate <ul><li>Home Sales </li></ul><ul><li>Home Prices </li></ul><ul><li>Inventory </li></ul>...
Home Sales   In Millions <ul><li>Sales declined 13% in 2008.  </li></ul><ul><li>The number of first-time home buyers incre...
In the fourth quarter of 2008,  6 states   saw an increase in sales , mainly in areas where the sharpest declines in price...
Home Prices   In Thousands <ul><li>The median home price declined by 9% in 2008. </li></ul>$199K 20-year historical apprec...
Home Price   Annual Appreciation 20-year historical appreciation rate = 4%
Inventory   Months Supply # of months it would take to sell all the homes on the market at the current rate of sales <ul><...
Mortgage Rates   30-Year Fixed Mortgage rates remained low for most of 2008 at around 6%.  Mortgage rates ended the year a...
Let’s put this in perspective … <ul><li>In 1971:  </li></ul>And you still couldn’t get a mortgage as cheap as you could in...
Housing Affordability   % of Income % of a median family’s income required to make mortgage payments on a median-priced ho...
The Numbers That Drive Real Estate <ul><li>Home Sales </li></ul><ul><li>Home Prices </li></ul><ul><li>Inventory </li></ul>...
Home Sales   In Thousands Sales fell 17% in 2008 (back to 2003 levels). Source: Conference Board/CREA
Home Prices   In Thousands The national average home price decreased by 1% in 2008.  20-year historical appreciation rate ...
Home Prices 7   out of 12 provinces saw an increase in prices in December.   Northwest Territories Saskatchewan Manitoba N...
Home Price Appreciation 20-year historical appreciation rate = 4%
Inventory   Sales to Listings Ratio As a whole, Canada remained largely in balanced conditions for most of 2008 but ended ...
<ul><li>Mortgage rates remained steady in 2008 at around 7.1%.  </li></ul><ul><li>In December, rates declined to 6.75%. </...
Affordability   % of Income Proportion of median pretax household income required to service the  cost of mortgage payment...
Economic Snapshot <ul><li>Gross Domestic Product </li></ul><ul><li>Inflation </li></ul><ul><li>Unemployment </li></ul>
1. Gross Domestic Product <ul><li>The economy contracted by 3.8% in the fourth quarter of 2008 primarily due to weak consu...
1. Gross Domestic Product  Annual Year-to-Year Growth Source: Bureau of Economic Analysis Despite the contraction in the l...
2. Inflation Source: Bureau of Labor Statistics Inflation averaged around 3.8% in 2008.
2. Inflation Jan - Dec 2008 <ul><li>Toward the end of the year, there were signs of potential deflation (a downward spiral...
3. Unemployment <ul><li>Unemployment increased to an average of 5.8% in 2008 from 4.6% in 2007. </li></ul><ul><li>Unemploy...
The economy slipped into recession in November 2008, almost an entire year later than the U.S.  Historically, the lag betw...
The Events That Drive the Numbers
The Events That Drive the U.S. Numbers <ul><li>An increase in foreclosures and short sales continued to drive home price d...
1. An increase in foreclosures and short sales continued to drive home price declines <ul><li>1 in 54 housing units receiv...
Top Foreclosure States % of homes that received foreclosure notices AK HI Less than 1% 1 – 5% Above 5% Number 1: Nevada - ...
2. More banks tightened their lending standards Percentage of banks that tightened their lending standards last year  Tigh...
3. The number of first-time home buyers bounced back <ul><li>Historically low interest rates and decreasing home prices co...
4. Bank failures and mergers increased ?? Number of failed banks taken over by
Here were a few key acquisitions …
5. Government rescue became commonplace Note: Not a complete list of provisions End of seller-funded down payment assistan...
5. Government rescue became commonplace Note: Not a complete list of rescue efforts Federal Reserve cuts short-term lendin...
6. The competitive landscape redefined reports $50 Million loss in the third quarter of 2008 acquired acquired
6. Competitive landscape redefined Bankruptcy Filings  Layoffs 25% of workforce 45 employees 20% of its employees
7. The available sides per agent fell further <ul><li>Despite a 10% contraction in NAR membership, the real estate industr...
2008  NAR Members: 1.2 Million Annual Sales: 4.9 Million Existing Home Sales (in Millions) NAR Membership (in Millions) NA...
8. Commission rates rose <ul><li>Commission rates in 2008 increased to 5.3%, the highest level in 7 years.  </li></ul><ul>...
9. Economic activity follows demographic trend <ul><li>Spending by Age Group </li></ul><ul><li>The age group with the bigg...
9. Economic activity follows demographic trend “ 82 years of tight correlation from 1920 to 2002 of the number of 45 to 54...
The Events That Drive the Canadian Numbers <ul><li>The Central Bank cut interest rates 6 times in 2008 </li></ul><ul><li>C...
1. The Central Bank cut interest rates 6 times in 2008 <ul><li>The Bank of Canada lowered the overnight interest rates to ...
2. Commodity prices and Canadian currency decline sharply <ul><li>Commodity prices rose significantly from 2002 to mid-200...
3. Restrictions tighten for government backed mortgages <ul><li>Stricter guidelines were implemented to support stability ...
4. Parliament suspended <ul><li>Prime Minister Stephen Harper suspended Parliament after facing a vote of no confidence. <...
5.  Available  sides per agent fell <ul><li>In 2008, home sales fell 17% but CREA membership increased 4%. Available sides...
2008  CREA Members: 97K  Annual Sales: 434K Home Sales (In Thousands) CREA Members (In Thousands) CREA Members vs. Annual ...
How Did We Get Here?
The Story Behind THE STORY <ul><li>The Incredible Global Pool of Money </li></ul><ul><ul><li>In 2000, it was $36 trillion....
A “Simple” Way to Look at It Buyer Demand Mortgage Broker GSEs Wall Street –  Financial Institutions Mortgage-Backed Secur...
What the Governments Are Doing
What the Governments Are Doing <ul><li>Both the U.S. and Canada have implemented stimulus packages to help the ailing econ...
U.S . 1. American Recovery and Reinvestment Act of 2009  <ul><li>$780 billion economic stimulus package was signed on Febr...
<ul><li>First-Time Home Buyer Tax Credit </li></ul><ul><li>FHA, Fannie Mae, and Freddie Mac Loan Limits </li></ul><ul><li>...
<ul><li>American Recovery and Reinvestment Act of 2009 Six Key Housing-Related Provisions </li></ul>1. First-time Home Buy...
<ul><li>American Recovery and Reinvestment Act of 2009 Six Key Housing-Related Provisions </li></ul><ul><li>FHA, Fannie Ma...
<ul><li>American Recovery and Reinvestment Act of 2009 Six Key Housing-Related Provisions </li></ul><ul><li>Commercial Rea...
<ul><li>American Recovery and Reinvestment Act of 2009 Six Key Housing-Related Provisions </li></ul><ul><li>Rural Housing ...
U.S . 2. Homeowner Affordability and Stability Plan <ul><li>Overview </li></ul><ul><li>On February 18, 2009, President Oba...
Homeowner Affordability and Stability Plan Three Key Elements <ul><li>Refinancing option for loans guaranteed by Fannie Ma...
Canada Stimulus package included in 2009 budget <ul><li>Overview </li></ul><ul><li>$40 billion stimulus package over the n...
Canadian Stimulus Package Five Key Housing-Related Provisions <ul><li>Home buyer tax relief </li></ul><ul><ul><li>First-ti...
Canadian Stimulus Package Five Key Housing-Related Provisions <ul><li>ecoENERGY Retrofit program </li></ul><ul><ul><li>Fun...
How Do We Recover?
The 4 Keys to Housing Recovery 4 Stimulate  Economy Create Jobs Stabilize Banking System Stabilize   Home Prices 1 SURVIVE...
So, What Can You Do?
The Six Fundamental Secrets of Success in a Shift <ul><li>Get Real and Get Right  –  Right Now! </li></ul><ul><li>Re-Margi...
First, Get Real, Get Right!  Right Now!
GET REAL! <ul><li>Today, the next 180 days, will be the most critical period in your career! Period! </li></ul><ul><ul><li...
<ul><li>You’ve been living through the era of average and now you’re living in the “ ERA OF EXTRA ”. </li></ul><ul><ul><li...
The Bar of the Past! THE ERA OF AVERAGE EFFORT Acceptable Level of Success
The Bar Has Now Been Raised! Unacceptable Level of Success THE ERA OF EXTRA EFFORT Acceptable Level of Success THE ERA OF ...
GET REAL! <ul><li>Look at it this way: </li></ul><ul><ul><li>Both your swing and the size of the field you’re playing in m...
GET REAL! <ul><li>This is your best opportunity for the biggest </li></ul><ul><li>professional  DEFINING MOMENT  in your l...
GET REAL! WHY? <ul><li>You will never see a worse economic crisis in your lifetime than right now! </li></ul><ul><li>Great...
GET REAL! <ul><li>Truth:   </li></ul><ul><ul><li>Little effort  becomes a habit and leads to  little results . </li></ul><...
GET REAL! AVERAGE Complete Failure Massive Success Most People How Do You Get Out of Being Stuck in the Middle?
Now That You’ve Gotten Real ... <ul><li>You Must Get Right! </li></ul>
GET RIGHT! <ul><li>Truth: </li></ul><ul><li>When you’re doing the  right things  professionally ... </li></ul><ul><li>the ...
GET RIGHT! <ul><li>If the success and money aren’t there then you may be in the right area professionally for you, but you...
GET RIGHT! <ul><li>If this is going to be your DEFINING MOMENT, </li></ul><ul><li>you’ll need to do 3 things: </li></ul><u...
GET RIGHT! <ul><li>The Six Core Real Estate Agent Competencies: </li></ul><ul><ul><li>Lead generate, capture, and convert ...
Second, You Must Re-Margin Your Personal and Professional Expenses –  Right Now! “ It is not necessary to change. Survival...
WAKE-UP! <ul><li>You’re now living in the  Extra Effort  with  High Intensity – Low Overhead Era ! </li></ul><ul><li>DO YO...
WAKE-UP! <ul><li>You’re now living in a period in history where this simple truth rules  above all others : </li></ul><ul>...
The Re-Margin Two-Step <ul><li>First , you cut  your personal expenses!  </li></ul><ul><li>To the bone!  Now! </li></ul><u...
Re-Margin <ul><li>First, Personal Expenses </li></ul><ul><li>You can’t let society or the media tell you what your persona...
Re-Margin <ul><li>Second, Professional Expenses </li></ul><ul><li>When markets shift, the first absolute for any business ...
<ul><li>“ Name a business that has been ruined by downsizing. I can’t name one. Name a company that has been ruined by blo...
Re-Margin <ul><li>You must lower your costs now. And revisit this every month! </li></ul><ul><li>Remember, to generate rev...
Third, Focus on Lead Generation  and Lead Conversion!  Right Now! “ If your ship doesn’t come in, swim out to it.” Jonatha...
You Must Lead Generate. <ul><li>Think of it this way, if you don’t have an able, ready and willing buyer or seller right n...
Lead Generation This size market supports a specific number of agents and real estate companies. Here’s What’s Happened Te...
<ul><li>So, unless you get a disproportionate and unfair share of the available number of leads (and if you’re a company –...
<ul><li>The market shift may have now exposed a real personal dilemma you must overcome: </li></ul>Lead Generation <ul><ul...
The Two M’s of Lead Generation 1 MESSAGE 1 Match  Your Market 2 Make  an Offer Response 1 Target Audience 2 Market Conditi...
The Two M’s of Lead Generation 2 1 2 3 METHOD 1 Prospect 2 Market Maintain Time Block Take Action Prepare
Taking Open Houses Beyond the Basics Level 1 Sign in Yard
Taking Open Houses Beyond the Basics Sign in yard Level 2 Sign in yard with balloons and riders
Taking Open Houses Beyond the Basics Level 3 Directional signs at key corners with balloons and riders Sign in yard with b...
Taking Open Houses Beyond the Basics Level 4 Fliers the week before, email invites, and posted on websites Sign in yard wi...
Taking Open Houses Beyond the Basics Level 5 Go invite neighbors.  (100 minimum) Sign in yard with directional signs at ke...
Taking Open Houses Beyond the Basics Level 6 Get on the phone that morning and remind  everyone ! Sign in yard with direct...
Taking Open Houses Beyond the Basics Level 7 Hold 4 other open houses in the area in various price ranges. Sign in yard wi...
Didn’t You Get it?  It is the “ Era of Extra Effort ”! <ul><li>Some agents just stick a sign in the yard and call it lead ...
Lead Generation <ul><li>To make  “Extra Effort”  happen every day, you must subscribe to one simple belief:  </li></ul><ul...
<ul><li>To ensure your lead generation is always your number one priority you must acquire the discipline of “time blockin...
<ul><li>Think of it as making appointments with yourself. </li></ul><ul><li>Once done, you must protect that time against ...
Time Blocking for Success 13 12:00 to 5:00pm Lead Generation 12 10:00 to 2:00pm Lead Generation 11 8:30 to 11:30am Lead Ge...
When Someone Shows Intent, You Must Immediately Convert it Into an Appointment. <ul><li>The ultimate success of your lead ...
<ul><li>Lead conversion is a scripts and dialogues based skill. To master it – you must practice it. </li></ul><ul><li>You...
Fourth, You Must Get Your Sellers to Price Ahead of the Market and Stage Their Home Competitively.  Right Now!
The Only Way to View Pricing and Staging
Staging Study <ul><li>A review of over 2,800 properties in eight cities </li></ul><ul><li>found that “staged homes, on ave...
Staging Study Homes Previously on the Market Source: RESA Vacant Homes Occupied Homes Marketed vacant homes that were prev...
Fifth, You Must Help Buyers  Find Their Motivation.  Right Now! “ If someone is going down the wrong road, he doesn’t need...
The Two Main Ways to Energize Buyer Urgency <ul><li>Become the Local Economist of Choice </li></ul><ul><li>Address Buyer R...
<ul><li>Don’t Wait –  The Hazards of Timing the Market </li></ul><ul><li>Trade Up –  The Opportunity of a Down Market </li...
Sixth, Get Involved in the  Market of the Moment –  Short Sales, REOs and Foreclosures!  Right Now!
The Big Three <ul><li>SHORT SALES </li></ul><ul><li>Individuals or families willing to avoid foreclosure. </li></ul><ul><l...
Never Give Up –  Never Surrender!
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Gary Keller's Vision Speech - Keller Williams Realty Family Reunion 2009

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Gary Keller, Founder and Chairman of the Board for Keller Williams Realty, gives his annual Vision Speech at KW's Family Reunion 2009.

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  • Gary Keller's Vision Speech - Keller Williams Realty Family Reunion 2009

    1. 5. CRISIS?
    2. 6. Danger Opportunity + “ Crisis”
    3. 7. C.R.I.S.I.S <ul><li>A C ircumstance R equiring </li></ul><ul><li>I mmediate </li></ul><ul><li>S hift I n S trategy! </li></ul>
    4. 8. The Market Has Shifted Dramatically <ul><li>Sales volume and transactions have dropped drastically. </li></ul><ul><li>Inventory has reached a breathtaking high. </li></ul><ul><li>Buyers continue to be reluctant, and sellers continue to be unrealistic. </li></ul><ul><li>Real estate agents seem dazed and confused. </li></ul><ul><li>Brokerage net profits are going red. </li></ul><ul><li>Fear is rampant, anxiety is high, and people are getting out of the business right and left. </li></ul>
    5. 9. So, What Happened?
    6. 10. People … <ul><li>Over spent and under saved </li></ul><ul><li>Over borrowed and over paid </li></ul>And too many got in over their head.
    7. 11. Now they’ll … <ul><li>Under spend and over save </li></ul><ul><li>Under borrow and under pay </li></ul>And the economy will begin to move back into alignment.
    8. 12. We Are in the Midst of One Major Shift! <ul><li>You shouldn’t be surprised. </li></ul><ul><li>Economic history repeats itself. That’s why it’s called an “economic cycle”. </li></ul><ul><li>What’s happening today has happened before. The economy is in one of the “down” parts of its cycle. </li></ul><ul><li>You may have thought we’d either cured economic down cycles or you would escape the planet before another big one hit. </li></ul>
    9. 13. So, the Economy Shifts and Therefore Real Estate Markets Shift <ul><li>They always have and always will </li></ul><ul><li>and </li></ul><ul><li>Your life goes on … </li></ul><ul><li>Your business and career can too ... </li></ul>
    10. 14. … IF YOU DO THE RIGHT THINGS!
    11. 15. The next 180 days may be the toughest economic days you’ll see for the rest of your life! But you better step it up!
    12. 16. No Kidding – House on Fire!
    13. 17. To Shift or Be Shifted … That Is the Challenge We All Face Professionally Right Now!
    14. 18. The Numbers That Drive Real Estate
    15. 19. The Numbers That Drive Real Estate <ul><li>Home Sales </li></ul><ul><li>Home Prices </li></ul><ul><li>Inventory </li></ul><ul><li>Mortgage Rates </li></ul><ul><li>Affordability </li></ul>
    16. 20. Home Sales In Millions <ul><li>Sales declined 13% in 2008. </li></ul><ul><li>The number of first-time home buyers increased to 41% of home purchasers. </li></ul>Source: National Association of REALTORS®
    17. 21. In the fourth quarter of 2008, 6 states saw an increase in sales , mainly in areas where the sharpest declines in prices occurred. CA AZ NV MN FL VA Sales Increased Sales Decreased Home Sales Direction (Year-Over-Year Change) Source: National Association of REALTORS® AK HI
    18. 22. Home Prices In Thousands <ul><li>The median home price declined by 9% in 2008. </li></ul>$199K 20-year historical appreciation rate = 4%
    19. 23. Home Price Annual Appreciation 20-year historical appreciation rate = 4%
    20. 24. Inventory Months Supply # of months it would take to sell all the homes on the market at the current rate of sales <ul><li>Slowing sales pushed up inventory for existing homes to 10.4 months in 2008. </li></ul>Source: National Association of REALTORS®
    21. 25. Mortgage Rates 30-Year Fixed Mortgage rates remained low for most of 2008 at around 6%. Mortgage rates ended the year at 5.1%, an all-time low since Freddie Mac started its mortgage survey in 1971. Source: Freddie Mac
    22. 26. Let’s put this in perspective … <ul><li>In 1971: </li></ul>And you still couldn’t get a mortgage as cheap as you could in December 2008. Mortgage Rate in 1971: 7.48% 890 Dow Jones Average $25,250 Average New Home Price $150 Monthly Rent $1,866 Datsun Sports Coup 43 cents a pound Turkey 8 cents Stamp 40 cents a gallon Gasoline
    23. 27. Housing Affordability % of Income % of a median family’s income required to make mortgage payments on a median-priced home Source: National Association of REALTORS®
    24. 28. The Numbers That Drive Real Estate <ul><li>Home Sales </li></ul><ul><li>Home Prices </li></ul><ul><li>Inventory </li></ul><ul><li>Mortgage Rates </li></ul><ul><li>Affordability </li></ul>
    25. 29. Home Sales In Thousands Sales fell 17% in 2008 (back to 2003 levels). Source: Conference Board/CREA
    26. 30. Home Prices In Thousands The national average home price decreased by 1% in 2008. 20-year historical appreciation rate = 4%
    27. 31. Home Prices 7 out of 12 provinces saw an increase in prices in December. Northwest Territories Saskatchewan Manitoba Newfoundland Nova Scotia New Brunswick Prince Edward Island Prices Increased Prices Decreased Home Price (Year-Over-Year Change) Northwest Territories Source: Conference Board/CREA
    28. 32. Home Price Appreciation 20-year historical appreciation rate = 4%
    29. 33. Inventory Sales to Listings Ratio As a whole, Canada remained largely in balanced conditions for most of 2008 but ended the year in a buyers’ market. Source: Conference Board/CREA
    30. 34. <ul><li>Mortgage rates remained steady in 2008 at around 7.1%. </li></ul><ul><li>In December, rates declined to 6.75%. </li></ul>Mortgage Rates 5-Year Fixed Source: Bank of Canada
    31. 35. Affordability % of Income Proportion of median pretax household income required to service the cost of mortgage payments (principal, interest, property taxes, and utilities) <ul><li>Canadians have been feeling the impact of high ownership costs as they experienced deteriorating affordability over the past few years. </li></ul><ul><li>Affordability finally improved by an average of 1.1% in the third quarter of 2008. </li></ul><ul><li>Similar to trends seen in the U.S., the steepest market correction is occurring in provinces that were least affordable, such as British Columbia and Alberta. </li></ul>Source: Royal Bank of Canada -1% Average Change -1% 31% 32% Standard condo -1% 37% 38% Standard townhouse -1% 52% 53% Standard two-story -1% 46% 47% Detached bungalow Change Q3 2008 Q2 2008 Property Type
    32. 36. Economic Snapshot <ul><li>Gross Domestic Product </li></ul><ul><li>Inflation </li></ul><ul><li>Unemployment </li></ul>
    33. 37. 1. Gross Domestic Product <ul><li>The economy contracted by 3.8% in the fourth quarter of 2008 primarily due to weak consumer and investment spending. </li></ul><ul><li>The National Bureau of Economic Research announced that the U.S. has been in a recession since December 2007 due to the deterioration in the labor markets. </li></ul>Source: Bureau of Economic Analysis
    34. 38. 1. Gross Domestic Product Annual Year-to-Year Growth Source: Bureau of Economic Analysis Despite the contraction in the last two quarters, the overall economy grew by 1.3% for 2008.
    35. 39. 2. Inflation Source: Bureau of Labor Statistics Inflation averaged around 3.8% in 2008.
    36. 40. 2. Inflation Jan - Dec 2008 <ul><li>Toward the end of the year, there were signs of potential deflation (a downward spiral of prices, earnings, and economic activity) in the economy as inflation ended at 0.1% in December. </li></ul><ul><li>This was a significant departure from the peak of 5.6% in July. </li></ul>Source: Bureau of Labor Statistics
    37. 41. 3. Unemployment <ul><li>Unemployment increased to an average of 5.8% in 2008 from 4.6% in 2007. </li></ul><ul><li>Unemployment rose to 7.2% in the final month of the year. </li></ul>Source: Bureau of Labor Statistics
    38. 42. The economy slipped into recession in November 2008, almost an entire year later than the U.S. Historically, the lag between the U.S. and Canada is usually shorter, giving some glimmers of resiliency in the Canadian economy. The weakening economy and declining commodity prices continue to place downward pressures on inflation. Unemployment increased 0.8 percentage points to 6.6% in December from the record low of 5.8% in early 2008. Most of the increase occurred toward the end of the year and was largely driven by a drop in construction. Canada Metrics % 1. Real GDP (2008 estimate) 1.8% 2. Inflation Rate (Dec) 2.4% 3. Unemployment Rate (Dec) 6.6%
    39. 43. The Events That Drive the Numbers
    40. 44. The Events That Drive the U.S. Numbers <ul><li>An increase in foreclosures and short sales continued to drive home price declines </li></ul><ul><li>More banks tightened their lending standards </li></ul><ul><li>The number of first-time home buyers bounced back </li></ul><ul><li>Bank failures and mergers increased </li></ul><ul><li>Government rescue became commonplace </li></ul><ul><li>The competitive landscape redefined </li></ul><ul><li>The available sides per agent fell further </li></ul><ul><li>Commission rates rose </li></ul><ul><li>Economic activity follows demographic trend </li></ul>
    41. 45. 1. An increase in foreclosures and short sales continued to drive home price declines <ul><li>1 in 54 housing units received at least one foreclosure filing in 2008. </li></ul><ul><ul><li>Total number of filings: 3.2 Million </li></ul></ul><ul><li>So far, foreclosure prevention programs have not been successful in slowing foreclosure rates. </li></ul><ul><li>Approximately 420K hybrid ARMs are scheduled to reset in 2009. </li></ul>Distressed sales (foreclosures/short sales) represented approximately 45% of all sales transactions in the fourth quarter of 2008. Source: National Association of Realtors
    42. 46. Top Foreclosure States % of homes that received foreclosure notices AK HI Less than 1% 1 – 5% Above 5% Number 1: Nevada - 7% (1 in 14 houses) Source: Realty Trac
    43. 47. 2. More banks tightened their lending standards Percentage of banks that tightened their lending standards last year Tightened Subprime Tightened Prime Tightened Subprime Tightened Prime Tightened Subprime Tightened Prime Tightened Subprime Tightened Prime Source: Federal Reserve
    44. 48. 3. The number of first-time home buyers bounced back <ul><li>Historically low interest rates and decreasing home prices continually contributed to positive affordability conditions. </li></ul><ul><li>According to Global Insight, housing prices were 3.8% undervalued based on total market value in the third quarter last year. </li></ul><ul><li>The market share of first-time home buyers rose to 41% in 2008. </li></ul>Percent of First-time Home Buyers Source: National Association of Realtors
    45. 49. 4. Bank failures and mergers increased ?? Number of failed banks taken over by
    46. 50. Here were a few key acquisitions …
    47. 51. 5. Government rescue became commonplace Note: Not a complete list of provisions End of seller-funded down payment assistance Moratorium on risk-based pricing for FHA loans Additional property tax deduction Hope for Homeowners: FHA foreclosure rescue Change in loan limits for FHA, VA, and Government Sponsored Enterprises (GSE) $7,500 tax credit for first-time home buyers Housing and Economic Recovery Act of 2008 July 30 Tax rebates (stimulus checks) Economic Stimulus Act of 2008 Feb 13
    48. 52. 5. Government rescue became commonplace Note: Not a complete list of rescue efforts Federal Reserve cuts short-term lending rate to near zero Dec. 16 New plan unveiled to pump $800 billion into financial system to unfreeze consumer credit Nov. 25 Dec 29 Oct. 3 Sept. 18 Sept. 16 Sept. 7 Treasury announced plan to give $6 billion infusion to GMAC Emergency Economic Stabilization Act: Plan to purchase up to $700 billion in mortgage-related assets Federal Reserve pumped $180 billion into money markets to combat seizing up of lending between banks Insurance giant AIG received $85 billion Fannie and Freddie placed under government conservatorship
    49. 53. 6. The competitive landscape redefined reports $50 Million loss in the third quarter of 2008 acquired acquired
    50. 54. 6. Competitive landscape redefined Bankruptcy Filings Layoffs 25% of workforce 45 employees 20% of its employees
    51. 55. 7. The available sides per agent fell further <ul><li>Despite a 10% contraction in NAR membership, the real estate industry continues to become increasingly competitive. </li></ul>Source: National Association of Realtors
    52. 56. 2008 NAR Members: 1.2 Million Annual Sales: 4.9 Million Existing Home Sales (in Millions) NAR Membership (in Millions) NAR Members vs. Annual Sales Source: National Association of Realtors
    53. 57. 8. Commission rates rose <ul><li>Commission rates in 2008 increased to 5.3%, the highest level in 7 years. </li></ul><ul><li>Rates increased slightly more on the buyer side than the seller side. </li></ul><ul><ul><li>Buyer side: 2.8% </li></ul></ul><ul><ul><li>Seller side: 2.5% </li></ul></ul><ul><li>The median commission amount per transaction decreased by approximately 5% on the seller side and 4% on the buyer side due to declining home prices. </li></ul>Source: Keller Williams Commission Study
    54. 58. 9. Economic activity follows demographic trend <ul><li>Spending by Age Group </li></ul><ul><li>The age group with the biggest spending power is the 45 to 54 year olds. </li></ul>Source: The Great Bust Ahead
    55. 59. 9. Economic activity follows demographic trend “ 82 years of tight correlation from 1920 to 2002 of the number of 45 to 54 year olds with the Dow Jones Industrial Average ups and downs (economy booms and busts) cannot possibly be a mere 82-year coincidence.” -- Daniel A. Arnold, The Great Bust Ahead Source: The Great Bust Ahead 1980 1990 2000 2010 1970 1960 1950 1940 1930 2030 1920 2020
    56. 60. The Events That Drive the Canadian Numbers <ul><li>The Central Bank cut interest rates 6 times in 2008 </li></ul><ul><li>Commodity prices and Canadian currency decline sharply </li></ul><ul><li>Restrictions tighten for government-backed mortgages </li></ul><ul><li>Parliament suspended </li></ul><ul><li>Available sides per agent fell </li></ul>
    57. 61. 1. The Central Bank cut interest rates 6 times in 2008 <ul><li>The Bank of Canada lowered the overnight interest rates to mitigate downward pressures on the economy and stabilize the financial system. </li></ul><ul><li>While rate cuts caused mortgage rates to fall, banks failed to match the rate cut for the first time in a decade on October 8 due to tightened credit conditions. </li></ul><ul><li>Despite the credit squeeze, mortgage lending to households actually increased 12% in December. </li></ul>
    58. 62. 2. Commodity prices and Canadian currency decline sharply <ul><li>Commodity prices rose significantly from 2002 to mid-2008. </li></ul><ul><li>Higher prices for energy, agricultural products, metals, and minerals were important drivers of domestic demand and were an important wealth contributor to the general population. </li></ul><ul><li>Decreasing global demand led to a significant decline in commodity prices over the second half of 2008, which ultimately led to weakening of the Canadian loonie. </li></ul>0.83 USD C$1 2008: 1.01USD C$1 2007: Exchange rates (Dec. 31)
    59. 63. 3. Restrictions tighten for government backed mortgages <ul><li>Stricter guidelines were implemented to support stability in mortgage markets. </li></ul>After Oct. 15, 2008 Before Oct. 15, 2008 Requirements 45 No set standard 4. Maximum Total Debt Service Ratio 620 No set standard 3. Minimum Credit Score 5% 0% 2. Minimum Down Payment 35 years 40 years 1. Maximum Term Limit
    60. 64. 4. Parliament suspended <ul><li>Prime Minister Stephen Harper suspended Parliament after facing a vote of no confidence. </li></ul><ul><li>Why? In the face of an increasingly troubled economy, the Conservative party’s 2009 budget (presented towards the end of the year) did not include economic stimulus measures. </li></ul><ul><li>The three very different opposition parties came together in an effort to form a coalition government. </li></ul><ul><li>With Parliament suspended, a vote on the coalition government could not occur. </li></ul>
    61. 65. 5. Available sides per agent fell <ul><li>In 2008, home sales fell 17% but CREA membership increased 4%. Available sides per agent fell to 8.9 transactions. </li></ul>
    62. 66. 2008 CREA Members: 97K Annual Sales: 434K Home Sales (In Thousands) CREA Members (In Thousands) CREA Members vs. Annual Sales
    63. 67. How Did We Get Here?
    64. 68. The Story Behind THE STORY <ul><li>The Incredible Global Pool of Money </li></ul><ul><ul><li>In 2000, it was $36 trillion. </li></ul></ul><ul><ul><li>In October 2008, it doubled to $72 trillion! </li></ul></ul>
    65. 69. A “Simple” Way to Look at It Buyer Demand Mortgage Broker GSEs Wall Street – Financial Institutions Mortgage-Backed Securities <ul><li>Normal qualified potential home-buyers </li></ul><ul><li>Subprime potential home-buyers </li></ul><ul><li>Normal investors </li></ul><ul><li>Speculative investors </li></ul>Loosened standards in 1999 Everyone Investors Rating Agencies
    66. 70. What the Governments Are Doing
    67. 71. What the Governments Are Doing <ul><li>Both the U.S. and Canada have implemented stimulus packages to help the ailing economies. </li></ul><ul><li>U.S.: </li></ul><ul><ul><li>American Recovery and Reinvestment Act of 2009 </li></ul></ul><ul><ul><li>Homeowner Affordability and Stability Plan </li></ul></ul><ul><li>Canada: </li></ul><ul><ul><li>Stimulus package included in 2009 budget </li></ul></ul>
    68. 72. U.S . 1. American Recovery and Reinvestment Act of 2009 <ul><li>$780 billion economic stimulus package was signed on February 17. </li></ul>35% in tax cuts 65% in spending over the next 2 years
    69. 73. <ul><li>First-Time Home Buyer Tax Credit </li></ul><ul><li>FHA, Fannie Mae, and Freddie Mac Loan Limits </li></ul><ul><li>Neighborhood Stabilization </li></ul><ul><li>Commercial Real Estate </li></ul><ul><li>Energy Efficient Housing Tax Credits and Grants </li></ul><ul><li>Rural Housing Service </li></ul>American Recovery and Reinvestment Act of 2009 Six Key Housing-Related Provisions
    70. 74. <ul><li>American Recovery and Reinvestment Act of 2009 Six Key Housing-Related Provisions </li></ul>1. First-time Home Buyer Tax Credit Key Changes No Yes (over 15 years) Repayment If home is sold within 3 years of purchase, entire credit is recaptured at sale. If home sold before 15 years , outstanding balance is captured at sale. Recapture Buyers who use revenue bond financing are eligible for credit. No credit if home is financed with state/local bond funding Revenue Bond Financing Purchases between Jan. 1 to Dec. 1, 2009 Purchases between Apr. 9, 2008 to July 1, 2009 Effective Date Maximum of $8,000 Maximum of $7,500 Credit Amount 2009 Credit 2008 Credit
    71. 75. <ul><li>American Recovery and Reinvestment Act of 2009 Six Key Housing-Related Provisions </li></ul><ul><li>FHA, Fannie Mae, and Freddie Mac Loan Limits </li></ul><ul><ul><li>Extends expiration date of 2008 conforming loan limits to December 31, 2009 </li></ul></ul><ul><li>Neighborhood Stabilization </li></ul><ul><ul><li>$2 billion in grants to address the problems that arise when whole neighborhoods are engulfed by foreclosures </li></ul></ul><ul><ul><li>Funds can be used to purchase, manage, repair, and resell foreclosed and abandoned properties. </li></ul></ul>
    72. 76. <ul><li>American Recovery and Reinvestment Act of 2009 Six Key Housing-Related Provisions </li></ul><ul><li>Commercial Real Estate </li></ul><ul><ul><li>Funds for state energy programs to support commercial property owners’ investment in energy efficiency upgrades </li></ul></ul><ul><ul><li>Potential tax relief for small business owners: </li></ul></ul><ul><ul><ul><li>Bonus depreciation and capital expenditures </li></ul></ul></ul><ul><ul><ul><li>5-year carryback of net operating losses </li></ul></ul></ul><ul><li>Energy Efficient Housing Tax Credits and Grants </li></ul><ul><ul><li>Homeowners will be able to claim a 30% tax credit for purchases of new furnaces, windows, and insulation through 2010. </li></ul></ul>
    73. 77. <ul><li>American Recovery and Reinvestment Act of 2009 Six Key Housing-Related Provisions </li></ul><ul><li>Rural Housing Service </li></ul><ul><ul><li>$500 million for existing USDA Rural Housing programs </li></ul></ul><ul><ul><li>Expectations that financing would be available to fund an additional 192,000 homeowners </li></ul></ul>
    74. 78. U.S . 2. Homeowner Affordability and Stability Plan <ul><li>Overview </li></ul><ul><li>On February 18, 2009, President Obama announced his Homeowner Affordability and Stability Plan designed to help approximately 7 to 9 million families avoid foreclosure by refinancing or restructuring their mortgages. </li></ul><ul><li>Some of the measures will require Congressional approval prior to implementation. </li></ul>
    75. 79. Homeowner Affordability and Stability Plan Three Key Elements <ul><li>Refinancing option for loans guaranteed by Fannie Mae and Freddie Mac to help make mortgages more affordable. </li></ul><ul><li>$75 billion homeowner stability initiative to assist up to 3 to 4 million at-risk homeowners. </li></ul><ul><li>Support of low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac. </li></ul>
    76. 80. Canada Stimulus package included in 2009 budget <ul><li>Overview </li></ul><ul><li>$40 billion stimulus package over the next two years was approved on February 2, 2009. </li></ul><ul><li>Similar to the U.S., three-quarters was allocated toward new spending. </li></ul><ul><li>Key areas: </li></ul><ul><ul><li>Spending on infrastructure investments, communities, skills, and work-transition strategies </li></ul></ul><ul><ul><li>Tax relief for individuals, households, and businesses </li></ul></ul><ul><li>To restore liquidity to credit markets, $125 billion was allocated to help businesses and households access new loans. </li></ul>
    77. 81. Canadian Stimulus Package Five Key Housing-Related Provisions <ul><li>Home buyer tax relief </li></ul><ul><ul><li>First-time home buyers to receive $750 </li></ul></ul><ul><li>Increase in withdrawal limits from retirement savings plans </li></ul><ul><ul><li>Withdrawal limits for Registered Retirement Savings Plan (RRSP) to increase from $20,000 to $25,000 for first-time home buyers </li></ul></ul><ul><li>Home Renovation Tax Credit </li></ul><ul><ul><li>Up to $1,350 in tax relief to reduce the cost of renovations </li></ul></ul><ul><ul><li>Renovations must be between $1,000 and $10,000 and occur between January 27, 2009 and February 1, 2010. </li></ul></ul>
    78. 82. Canadian Stimulus Package Five Key Housing-Related Provisions <ul><li>ecoENERGY Retrofit program </li></ul><ul><ul><li>Funds to support home energy efficiency retrofits </li></ul></ul><ul><li>Social housing investments </li></ul><ul><ul><li>Construction for low-income seniors, persons with disabilities </li></ul></ul><ul><ul><li>New social housing units </li></ul></ul><ul><ul><li>Renovations, energy retrofits, and additional support for existing social housing units </li></ul></ul>
    79. 83. How Do We Recover?
    80. 84. The 4 Keys to Housing Recovery 4 Stimulate Economy Create Jobs Stabilize Banking System Stabilize Home Prices 1 SURVIVE THRIVE 4 3 2
    81. 85. So, What Can You Do?
    82. 86. The Six Fundamental Secrets of Success in a Shift <ul><li>Get Real and Get Right – Right Now! </li></ul><ul><li>Re-Margin Your Personal and Professional Life – Right Now! </li></ul><ul><li>Focus on Lead Generation and Conversion – Right Now! </li></ul><ul><li>Get Sellers to Price Ahead of the Market and Stage Their Homes – Right Now! </li></ul><ul><li>Help Buyers Find Their Motivation – Right Now! </li></ul><ul><li>Get Involved in Short Sales, REOs and Foreclosures – Right Now! </li></ul>
    83. 87. First, Get Real, Get Right! Right Now!
    84. 88. GET REAL! <ul><li>Today, the next 180 days, will be the most critical period in your career! Period! </li></ul><ul><ul><li>If you get real and get it right – You catapult! </li></ul></ul><ul><ul><li>If you don’t get real and get it wrong – You get laid off! </li></ul></ul>
    85. 89. <ul><li>You’ve been living through the era of average and now you’re living in the “ ERA OF EXTRA ”. </li></ul><ul><ul><li>Average effort may have done fine in the past </li></ul></ul><ul><ul><li>But not in the “ ERA OF EXTRA ”! </li></ul></ul><ul><li>Average is now being laid off! </li></ul><ul><ul><li>100,000+ in Auto Industry! And climbing! </li></ul></ul><ul><ul><li>150,000+ in Real Estate Industry! And counting … </li></ul></ul>GET REAL!
    86. 90. The Bar of the Past! THE ERA OF AVERAGE EFFORT Acceptable Level of Success
    87. 91. The Bar Has Now Been Raised! Unacceptable Level of Success THE ERA OF EXTRA EFFORT Acceptable Level of Success THE ERA OF AVERAGE EFFORT What you got for average effort – now requires EXTRA EFFORT to achieve! AVERAGE just got dramatically cut back or just plain laid off!
    88. 92. GET REAL! <ul><li>Look at it this way: </li></ul><ul><ul><li>Both your swing and the size of the field you’re playing in matter! A swing in one size of the field knocks a home run, while in another size of field it could be a popfly to the infield. </li></ul></ul><ul><ul><li>A swing in one field may not cut it in another! </li></ul></ul>Effort Matters Today More Than Ever!
    89. 93. GET REAL! <ul><li>This is your best opportunity for the biggest </li></ul><ul><li>professional DEFINING MOMENT in your life! </li></ul>
    90. 94. GET REAL! WHY? <ul><li>You will never see a worse economic crisis in your lifetime than right now! </li></ul><ul><li>Great success is always launched by great motivation and momentum! </li></ul>
    91. 95. GET REAL! <ul><li>Truth: </li></ul><ul><ul><li>Little effort becomes a habit and leads to little results . </li></ul></ul><ul><ul><li>Big effort becomes a habit and leads to big results . </li></ul></ul><ul><li>So choose the RESULTS you want – </li></ul><ul><li>Then choose the EFFORT . </li></ul>
    92. 96. GET REAL! AVERAGE Complete Failure Massive Success Most People How Do You Get Out of Being Stuck in the Middle?
    93. 97. Now That You’ve Gotten Real ... <ul><li>You Must Get Right! </li></ul>
    94. 98. GET RIGHT! <ul><li>Truth: </li></ul><ul><li>When you’re doing the right things professionally ... </li></ul><ul><li>the right amount of success and money will come to you. </li></ul><ul><li>This truth is how you know when YOU’RE doing the right things and when YOU’RE NOT. </li></ul>
    95. 99. GET RIGHT! <ul><li>If the success and money aren’t there then you may be in the right area professionally for you, but you’re still not doing the right things. It’s a simple truth that should set you free. </li></ul><ul><li>The GET RIGHT question: </li></ul><ul><li>“ There is a reason why I don’t have the professional success and money I desire, what is it?” </li></ul><ul><li>The answer should inform your IMMEDIATE ACTIONS! </li></ul>
    96. 100. GET RIGHT! <ul><li>If this is going to be your DEFINING MOMENT, </li></ul><ul><li>you’ll need to do 3 things: </li></ul><ul><ul><li>Focus Only on What Matters </li></ul></ul><ul><ul><li>Be Willing to Do Whatever It Takes </li></ul></ul><ul><ul><li>Bring Intensity (Hint: Extra Effort) </li></ul></ul>
    97. 101. GET RIGHT! <ul><li>The Six Core Real Estate Agent Competencies: </li></ul><ul><ul><li>Lead generate, capture, and convert to appointments </li></ul></ul><ul><ul><li>Present to buyers and sellers and get agreements </li></ul></ul><ul><ul><li>Show buyers and market sellers </li></ul></ul><ul><ul><li>Write and negotiate contracts </li></ul></ul><ul><ul><li>Coordinate the sale to closing </li></ul></ul><ul><ul><li>Manage the money </li></ul></ul>
    98. 102. Second, You Must Re-Margin Your Personal and Professional Expenses – Right Now! “ It is not necessary to change. Survival is not mandatory.” W. Edwards Deming
    99. 103. WAKE-UP! <ul><li>You’re now living in the Extra Effort with High Intensity – Low Overhead Era ! </li></ul><ul><li>DO YOU GET THIS? </li></ul>
    100. 104. WAKE-UP! <ul><li>You’re now living in a period in history where this simple truth rules above all others : </li></ul><ul><li>“ The Business with the Lowest Costs Wins!” </li></ul>
    101. 105. The Re-Margin Two-Step <ul><li>First , you cut your personal expenses! </li></ul><ul><li>To the bone! Now! </li></ul><ul><li>Second , you cut your business expenses! </li></ul><ul><li>To the bone! Now! </li></ul><ul><li>GET IT? </li></ul>
    102. 106. Re-Margin <ul><li>First, Personal Expenses </li></ul><ul><li>You can’t let society or the media tell you what your personal life “should be.” </li></ul><ul><li>When the market shifts like it is right now – you follow the “must be” rule. </li></ul><ul><li>You downsize and you do it fast. You get your personal expenses where they “must be” in order for you to survive. (No kidding!) </li></ul>
    103. 107. Re-Margin <ul><li>Second, Professional Expenses </li></ul><ul><li>When markets shift, the first absolute for any business is to “ re-expense ” itself. Immediately! </li></ul><ul><li>“ Revenuing ” your way out of a shift is iffy at best. </li></ul><ul><ul><li>Generating more income may be impossible in the short run and take too much time in the long run. </li></ul></ul><ul><ul><li>“ Now” is the required speed when a shift occurs. </li></ul></ul><ul><ul><li>Get your business overhead lower - now! </li></ul></ul><ul><ul><li>The “Must Be” rule applies here as well! </li></ul></ul>
    104. 108. <ul><li>“ Name a business that has been ruined by downsizing. I can’t name one. Name a company that has been ruined by bloat. I can name dozens.” </li></ul><ul><li>Charlie Munger </li></ul><ul><li>Warren Buffett Speaks </li></ul>
    105. 109. Re-Margin <ul><li>You must lower your costs now. And revisit this every month! </li></ul><ul><li>Remember, to generate revenue, you generate leads – to make a profit, you manage expenses. </li></ul><ul><li>The profit you seek will always be made in the way you manage your money. </li></ul><ul><li>When the market shifts, you must create a budget that matches your revenue. </li></ul><ul><li>We call this re-margining your business. </li></ul>
    106. 110. Third, Focus on Lead Generation and Lead Conversion! Right Now! “ If your ship doesn’t come in, swim out to it.” Jonathan Winters
    107. 111. You Must Lead Generate. <ul><li>Think of it this way, if you don’t have an able, ready and willing buyer or seller right now – You’re not in business. </li></ul><ul><li>Hint: If a real estate office doesn’t have enough able, ready and willing to lead generate real estate agents – they’re not in business. </li></ul><ul><li>And get this - </li></ul><ul><li>Passive doesn’t work well in a shift! </li></ul><ul><li>Aggressive extra effort with intensity will! </li></ul>
    108. 112. Lead Generation This size market supports a specific number of agents and real estate companies. Here’s What’s Happened Test Question: Which Direction Is the Market Going?
    109. 113. <ul><li>So, unless you get a disproportionate and unfair share of the available number of leads (and if you’re a company – a disproportionate and unfair share of able, ready and willing to lead generate agents) – you’re going to be very very unhappy with your income! </li></ul><ul><li>Wake Up and Get Real! </li></ul><ul><li>There Is No Longer Enough to Go Around! </li></ul>Lead Generation
    110. 114. <ul><li>The market shift may have now exposed a real personal dilemma you must overcome: </li></ul>Lead Generation <ul><ul><li>You love helping people. </li></ul></ul><ul><ul><li>But you haven’t yet learned to love hunting for them. </li></ul></ul>
    111. 115. The Two M’s of Lead Generation 1 MESSAGE 1 Match Your Market 2 Make an Offer Response 1 Target Audience 2 Market Conditions 1 Direct Offer 2 Indirect Offer
    112. 116. The Two M’s of Lead Generation 2 1 2 3 METHOD 1 Prospect 2 Market Maintain Time Block Take Action Prepare
    113. 117. Taking Open Houses Beyond the Basics Level 1 Sign in Yard
    114. 118. Taking Open Houses Beyond the Basics Sign in yard Level 2 Sign in yard with balloons and riders
    115. 119. Taking Open Houses Beyond the Basics Level 3 Directional signs at key corners with balloons and riders Sign in yard with balloons and riders
    116. 120. Taking Open Houses Beyond the Basics Level 4 Fliers the week before, email invites, and posted on websites Sign in yard with directional signs at key corners with balloons and riders
    117. 121. Taking Open Houses Beyond the Basics Level 5 Go invite neighbors. (100 minimum) Sign in yard with directional signs at key corners with balloons and riders, fliers the week before, email invites, and posted on websites
    118. 122. Taking Open Houses Beyond the Basics Level 6 Get on the phone that morning and remind everyone ! Sign in yard with directional signs at key corners with balloons and riders, fliers the week before, email invites, posted on websites, go invite neighbors (100 minimum)
    119. 123. Taking Open Houses Beyond the Basics Level 7 Hold 4 other open houses in the area in various price ranges. Sign in yard with directional signs at key corners with balloons and riders, fliers the week before, email invites, posted on websites, go invite at least 100 neighbors, and get on the phone that morning and remind everyone !
    120. 124. Didn’t You Get it? It is the “ Era of Extra Effort ”! <ul><li>Some agents just stick a sign in the yard and call it lead generation . </li></ul><ul><li>Others go six steps beyond this and call it lead generation. </li></ul><ul><li>The big question is: </li></ul><ul><li>What do YOU call lead generation? </li></ul>
    121. 125. Lead Generation <ul><li>To make “Extra Effort” happen every day, you must subscribe to one simple belief: </li></ul><ul><ul><li>Dealing with current business never takes precedence over finding new business. Never! Ever! </li></ul></ul><ul><li>You must adopt the position that until your lead generation is done every day, nothing else should get done. All else is a distraction! </li></ul>
    122. 126. <ul><li>To ensure your lead generation is always your number one priority you must acquire the discipline of “time blocking”. </li></ul><ul><li>Time blocking is setting aside daily blocks of time to execute your most important business priorities. </li></ul>Time Blocking Page 75
    123. 127. <ul><li>Think of it as making appointments with yourself. </li></ul><ul><li>Once done, you must protect that time against any and all distractions. </li></ul>Time Blocking
    124. 128. Time Blocking for Success 13 12:00 to 5:00pm Lead Generation 12 10:00 to 2:00pm Lead Generation 11 8:30 to 11:30am Lead Generation 10 8:30 to 11:30am Lead Generation 9 8:30 to 11:30am Lead Generation 8 8:30 to 11:30am Lead Generation 7 8:30 to 11:30am Lead Generation Sunday Saturday Friday Thursday Wednesday Tuesday Monday
    125. 129. When Someone Shows Intent, You Must Immediately Convert it Into an Appointment. <ul><li>The ultimate success of your lead generating is directly dependent on your “lead conversion to an appointment” ability. </li></ul><ul><li>One can’t work without the other. </li></ul><ul><ul><li>Many agents spend significant amounts of time and money on their lead production proficiency but neglect their conversion competence. </li></ul></ul><ul><li>Get Appointments! </li></ul>
    126. 130. <ul><li>Lead conversion is a scripts and dialogues based skill. To master it – you must practice it. </li></ul><ul><li>Your secret weapon: Time on the task overtime. </li></ul><ul><li>Truth: Talent is Overrated! </li></ul><ul><ul><li>Practice with accountability to improve beats talent over time! </li></ul></ul>Get Appointments!
    127. 131. Fourth, You Must Get Your Sellers to Price Ahead of the Market and Stage Their Home Competitively. Right Now!
    128. 132. The Only Way to View Pricing and Staging
    129. 133. Staging Study <ul><li>A review of over 2,800 properties in eight cities </li></ul><ul><li>found that “staged homes, on average, sold in half </li></ul><ul><li>the time that non-staged homes did. The sellers with </li></ul><ul><li>staged homes ended up with 6.3 percent more than </li></ul><ul><li>their asking price, on average.” </li></ul><ul><li>From an October 2006, USA Today article which cites a Coldwell </li></ul><ul><li>Banker Residential Brokerage report </li></ul>
    130. 134. Staging Study Homes Previously on the Market Source: RESA Vacant Homes Occupied Homes Marketed vacant homes that were previously unstaged were not sold after 120 days on market. Once staged, those homes only took 26 days to sell. Marketed occupied homes that were previously unstaged were not sold after 102 days on market. Once staged, those homes only took 45 days to sell.
    131. 135. Fifth, You Must Help Buyers Find Their Motivation. Right Now! “ If someone is going down the wrong road, he doesn’t need motivation to speed him up. He needs education to turn him around.” Jim Rohn
    132. 136. The Two Main Ways to Energize Buyer Urgency <ul><li>Become the Local Economist of Choice </li></ul><ul><li>Address Buyer Reluctance </li></ul>
    133. 137. <ul><li>Don’t Wait – The Hazards of Timing the Market </li></ul><ul><li>Trade Up – The Opportunity of a Down Market </li></ul><ul><li>Less Is More – Narrow the Field </li></ul><ul><li>Provide Best Buys </li></ul><ul><li>Help Them Tap into Their “Why” </li></ul>Five Strategies to Overcome Buyer Reluctance
    134. 138. Sixth, Get Involved in the Market of the Moment – Short Sales, REOs and Foreclosures! Right Now!
    135. 139. The Big Three <ul><li>SHORT SALES </li></ul><ul><li>Individuals or families willing to avoid foreclosure. </li></ul><ul><li>REOs </li></ul><ul><li>Financial institutions with an above average number of foreclosures to sell. </li></ul><ul><li>FORECLOSURES </li></ul><ul><li>Bargain hunters and investors </li></ul>
    136. 140. Never Give Up – Never Surrender!

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