Monday, November 26, 2007

More from NAR

Presented by: John Tuccillo – former NAR chief economist (before Lereah)

*What’s next:
Having traveled overseas recently and looking at the international news, John believes oil will hit $100 per barrel. We are accumulating 4 billion dollars of debt per year from foreign governments. The falling dollar will slow recovery.

*We need to look at stats available from the MLS in all areas of the US:

  • Number of new listings on the market (sellers need a reality check)
  • Days on market (Faster turnover is a sign of market pick-up)
  • Sales price to list price ratio (Disappearing price cuts signal a turnaround)

*When the market turns around, there will be a “tsunami” of first time buyers and they will be Gen X and Y.

*Boomers comprise the second home market. They are used to relationship marketing.

*With Gen X and Y, there will even be more of a need for tech mastery. Gen X and Y do not want to be emotionally involved. There needs to be new channels of communication for these generations.

*The demand will begin in 2010 and skyrocket until 2015. This wave will be bigger than the boomers.

*A website is equivalent to indoor plumbing- a necessity. It is entry level technology.

*Consumers will control what they want to see, how they see it and when they want to see it:

  • Blogs, podcasts and chat rooms are the channels where these generations will receive their information. They like anonymity rather than relationships.

Today- you MUST treat real estate as a business:

You HAVE to have a business plan. There was a survey of 800 Realtors, only 2/3 had a plan. Consumers want convenience. Agents should be the force to get the transaction closed. It has to be all about the consumer.

Value proposition for 2008

  • Know your customer
  • Provide service
  • Provide convenience
  • Save them time
  • Eliminate or minimize stress

Competencies you need to know how to do in 2008

  • Counsel the consumer- added value
  • Be a good negotiator
  • Be a good manager- be able to take care of contract to closing