Realty World Northern California & Nevada

Over the last eighteen months there have been so many shifts in the real estate market, the usual negative media coverage, plus the mortgage meltdown. But, now is the beginning of a new era to become a professional “messenger” and move away from the sales characteristics we’ve built over the years.

The real estate industry has finally transformed the true, committed professional toward an elevated mindset of “service” rather than “sales.” It’s the real estate brokers and agents who are educating and guiding buyers and sellers, most of whom are probably shell-shocked with the blitz of media negativity that they may be concerned with making a move.

Based on all indicators, the market is bouncing into a stable recovery mode. This is indeed the opportune time to be positioned in front of past clients, buyers, sellers, first time homebuyers… even those in distress situations as well as investors to arm them with the information they need to make a sensible decision. Be the leader in this forthcoming recovery, not the follower. Differentiate yourself by the expertise you display in your blog and Q&A communities, and your website.

A fresh addition to your professional arsenal should be a video presentation of you, your listings, success stories, your communities, and your satisfied customers. This gives anyone who visits your site a visual journey! I enjoyed a video the other day where the realtor narrating the presentation gave his audience something I’d never seen before. He spoke about the sounds he heard outdoors, the smell of the mountain air, showed an area where you could relax next to your own stream. Oh, and by the way, he also presented the home, but it was shown with a unique perspective.

Don’t find your direction, know your direction. How will you present rising interest rates to your client base? It’s going to happen, so you’ better start learning how to convey this to consumers.

Be the messenger… the clock is ticking, and the time is now!

Dennis Stewart
Vice President & Regional Director
Dennis.Stewart@rwnc.net

From legitimate celebrities like Ashton Kutcher, Kevin Spacey, and Dr. Drew to the cheesiest hosts on CNN, it seems that everyone is jumping on the Twitter band wagon. For those who are unfamiliar with the new social medium, Twitter is a kind of mini blogging platform where users post their thoughts in 140 character broadcasts or “tweets.” Many real estate professionals have joined the site and many others are wondering if they should follow suit. I recently sat down with James Dwiggins, Chief Strategy Officer for Realty World Northern California and Nevada; and Kevin Boer, Co-Founder of the Internet marketing consultancy firm, Domus Consulting Group, to get their opinions on Twitter.

The two had very different views about the latest player in the social media arena, but both have a lot of validity. James Dwiggins expressed his concerns about the platform. When I asked him about the marketing capabilities of Twitter, James said, “If it’s used correctly, Twitter could be beneficial in marketing online. It’s just that most people don’t use it properly. A majority of things posted by members are irrelevant or of no interest to consumers, which cause them to stop reading what your posting.” He was also concerned with the retention rate that Twitter has for new users. It’s been generally reported that only 40% of those who sign up return to Twitter. In relation to marketing through Twitter, James felt that, “if it’s relevant to tweet about, chances are the user would be better off writing a blog post on the subject because consumers would find the in-depth information more valuable.”

Kevin also expressed his worries about Twitter. Kevin commented that, “its simplicity makes it so that people who are in a marketing mentality flock to it as a spam platform. Also, there are a lot of scam artists charging aspiring Twitter marketers for followers that end up really being ghost accounts set up by the scammers.” Despite this, Kevin is a little more optimistic in his view of Twitter. When confronted with the retention numbers, Kevin, commented that, “those numbers could be flawed because they measure returns to the Twitter.com homepage. They don’t take into account mobile phones and the myriad of Twitter client applications available.” Kevin said the thing he likes most about Twitter is that it is a “serendipity multiplier,” explaining that, “so often in business and marketing, serendipitous meetings at trade groups and other functions are often a component in driving your business forward. The nature of Twitter is to do exactly that, just at an accelerated rate.”

I have my own opinions about Twitter as I use it daily, but I’m curious as to what your opinions are? Is it just another new thing with no relevance to real estate? Is it just another thing to waste your time? Or is it something that allows you to communicate with a mass audience in a more efficient way?

TJ Shanahan
Social Media Manager
tj@rwnc.net

As many of you are aware of the California State Budget crisis and the myriad of media reports from economic shrinking to the increased exodus of business fleeing a tax-heavy environment, I scour to find good news and opportunities for growing our businesses. Here is some news you’ll find interesting and positive:

California’s population continues to expand, despite an economic ill wind and a slowing of immigrants to the golden state. In 2008, according to state numbers, the population increased to 38,393,687 residents. Which means 34,000 people still move to California every month. In fact, San Jose exceeded one million in population for the very first time and Fresno knocked out Long Beach as the fifth largest city in California.

In the Central Valley you’ll find growth in Merced, too. UC Merced is preparing for an expansion that will accommodate 25,000 students by 2035 — up from 3,000 today! That kind of growth is certainly an opportunity for land and income investments that should be considered and shared with clients today.

The Bay Area Ports are incenting cargo and cruise ship traffic. Railroad freight is expected to see fees reduced. And in some areas, builders are able to defer paying impact fees on traffic, sewage, and parks. 

All good news that is covered up by the industrial media complex. Are all these good reasons to reconnect with past clients and share the news? 

The best time to plant an oak tree was yesterday.

Onward!

Scott LeForce
President
Scott.LeForce@rwnc.net

The California Association of REALTORS® provides a very useful chart for guiding clients to qualification requirements, including what forms to file for both the Federal and California State tax credits. 

With most new homebuilders willing to cooperate with brokers and agents in the representation of a new home purchase, this is a great time to make sure that agents get the word out about the availability of current Federal and State tax credits to both their past and potential clients. The tax credits offered today, along with historically low interest rates, provide unprecedented opportunities for today’s homebuyers.

There are 5,668 tax credit applications submitted to date, resulting in over one-half of the current $100 million tax credit already having been claimed. Assembly Bill 765 was recently introduced and, if passed, will provide an additional 20,000 taxpayers the opportunity to take advantage of the popular new home California State income tax credit of up to $10,000. AB 765 calls for increasing the existing $100 million California new home tax credit program cap to $300 million. If AB 765 becomes law, it estimates 30,000 new homebuyers would benefit from the program.

Terri Adamo
Franchise Sales Director
Terri.Adamo@rwnc.net

Every business in America today is searching and redefining their bastions and strongholds for increased profitability and growth in a rapidly changing world. Not an evening news program goes without devoting some segment to the economy and the consequences business faces in the days ahead.

The Realty World Member who has participated in our technology rollout sessions has exposed themselves to one of the most important business tools for this new world of real estate. From marketing, advertising and business efficiencies of all sorts, all combined into a single user interface. 

I’d like to personally thank everyone who has attended these sessions for your time and investment in learning more about the tools of the new frontier. Yet similarly, as a crop needs water to provide a good yield; your blog and your site require close attention and personal involvement to produce traffic.

Adaptive change is the only constant in changing markets – that, we know. There are a series of WebEx sessions I encourage you to get involved with and plans to have a comprehensive online video library for your use are forthcoming. 

Finally, I’d like to extend my gratitude to those who’ve sent emails, messages, notes and cards expressing their support and enthusiastic acceptance to this new and aggressive direction and operational strategy. We truly believe we are on track to craft and deliver systems that are beyond your expectations and that will help you gain a disproportionate share of your market place. 

Scott LeForce
President
Scott.LeForce@rwnc.net

Last week I attended a seminar organized by the National Association of REALTORS at the Doubletree Hotel in Sacramento. The seminar was titled “Survival Guide” and was supposed to be a workshop to teach Realtors the value of social network marketing and how incorporating Internet marketing could help reduce traditional marketing budgets during the current real estate market.

The conference was held from 9:00am to 1:00pm, yet only one hour covered how agents could effectively use Facebook, Twitter, and several other social media portals. To be fair, the presenter was very knowledgeable on the subject and did a good job of conveying to Realtors the nuances of the “soft sell” style of social media versus the traditional direct sales approach. Even so, he neglected to mention his position as Vice President of Realtor.com before proceeding to call all the attendees to join him in worship of Realtor.com for the remaining three hours of the seminar. This bothered me on two levels. First, I’m part of a generation that doesn’t want to be given a free vacation only to find out, with skis in hand and goggles on in the lounge, that it’s only free if I listen to a 90 minute timeshare presentation. If someone is going to hold a seminar to teach Realtors how to take advantage of social media, that had better be the only thing they talk about because I’m going to feel very angry when Realtor.com sales reps are waiting at the back of the banquet hall as was my experience last week.

Second, the idea of selling Realtor.com as the latest and greatest way to market listings on the Internet is pretty shaky at best. I did a little “comparison shopping” with Realtor.com’s competitor, Trulia.com. Trulia.com’s information is a thousand percent better and included actual test scores for schools with links to their websites, crime statistics, and a myriad of other things not mentioned or poorly covered on Realtor.com. Also, the look and feel of Realtor.com is about as user friendly and aesthetically pleasing as IRS.gov.
 
What amazed me most were not the staggering inadequacies of Realtor.com compared to sites like Trulia, but the fervor with which the Realtors at the conference ran to the back of the room to buy featured listing zip codes that were sold like Google stock on a fire sale. Out of curiosity, when did buyers only look at and buy properties that are featured? Don’t most buyers end up looking at all the homes they can and buying the one they see themselves being happy in? These Realtors were signing up to spend, for some zip codes, hundreds of dollars per month. They were also signing up for a monthly fee structure that is based on their past year’s transactions just to have extra photos and their contact information included with their listings. Maybe I missed something, but isn’t this site endorsed by NAR? So, in essence, aren’t we already paying for it?

Try this on for size: Trulia.com is a flat monthly fee; Craigslist.com is free. Realtors need to educate themselves more about the plethora of cheap and/or free portals on the Internet that won’t gouge them to run their businesses.

Or better yet, join a company that already does all this for you.   

T.J. Shanahan
Social Media Manager
tj@rwnc.net

The term ‘differentiate yourself from the rest’ is bandied around so much today in the real estate industry as if it’s the magical solution to being successful.

Many years ago a very significant mentor in my real estate career introduced me to ten small words that, over the years, have given me the direction I truly needed. These ten small words have become very significant in their meaning:

“If it is to be, it is up to me!”

The real estate market is coming out of eight years where money was easily made and so many picked up on the opportunity to grab hold of it with little to no direction. You did not have to differentiate yourself; you just needed to be in front of people and have a heartbeat. Now that a stable foundation is being formed in the real estate market, many must choose to step up to the plate or change career paths. It takes a strong commitment to remain in this profession.

As you formulate your business model, take into consideration that you need more than something that rejuvenates and motivates you as those attributes are short-lived. Move from ‘differentiating’ to being ‘directional’ in your business model.  What this means is building your future with books, seminars, and blogs that provide a clear mindset. Be accountable and have a well-designed action plan.  Become confident with the tools and systems that serve you the best.

Blog! Allow others to learn from your expertise. Enhance your standing in your community and offer a positive impact in people’s lives. Give of yourself and, above all, give service.

Being directional in your business model will push you to attain a higher level and you’ll soon find yourself differentiating naturally.

Dennis Stewart
Vice President & Regional Director
Dennis.Stewart@rwnc.net

There was a wonderful article written recently by Bernice Ross titled “Gen X, Gen Y Buyers Rule Market” that identifies this huge demographic, second only to the Baby Boomers (at least for now). The article briefly discusses where these generations are relative to entering the housing market and how they engage in their unique forms of communication.

Due to the decline in valuation of home prices, the glut of REO inventory, and historically low mortgage rates, this is the perfect set of circumstances for this young group of savvy buyers to jump in and get their piece of the American Dream. And, it seems they are starting to do just that!  The real estate cycle of homeownership does not move forward until first time buyers get into the market. Real estate inventory starts to be absorbed once the first time buyer purchases their first home, generally an entry-level property. At this point, the former owner can move up and so goes the cycle’s forward momentum. This is why it’s important for Gen X &Y consumers to engage in homeownership… and this Baby Boomer, for one, is thankful they are.

For professionals in the real estate business, it would be prudent to deploy a strategy to help Gen X & Y consumers today. However, if you think traditional sales and marketing approaches will work to attract them, you will be disappointed in your results. Generations X & Y consumers communicate, respond and engage quite differently through the use of technology and online social networking. If you are not using these new methods of communication, don’t despair. However, it would be wise to retool your approach and start communicating with Gen X & Y buyers. They’re out there in huge numbers and they’re looking for you to help them buy their first home!

Scott Gill
Senior Vice President
Scott.Gill@rwnc.net

1. Continue to scrutinize operational expenses and redirect company dollars to savings/investments or to measurable marketing activities.
2. Develop technology systems to integrate your communications with consumers, inventory, as well as market and community statistics into a single user interface to increase production time and increase consumer appeal through user-generated content. Abandon static websites.
3. Prepare for online advertising through various electronic media channels, including blog content distribution, RSS, video feeds and listing syndications.
4. Brush up on habits used by the next generations to find information about housing and research.  
5. Strongly assess your competitor’s value proposition to the consumer and agent; make the investment in shoring up print and online materials used for presentations and other marketing activities.
6. Work to avoid the high fixed cost of substantial brick and mortar expenses. Deploy servers and mobile/online office applications to permit more production time out of the office and less maintenance time in the office.
7. Brokers and Sales Managers should work diligently in recruiting associates with strong online social skills and deliver the online tools to them which will capture and develop market share for the firm. This is also to say that suggestions for a career change may be in order for some in the existing ranks.  Company expenses are again rising substantially faster than the associates’ production.  
8. Seize the opportunity to reconstruct commission schedules and negotiate more reasonable splits with associates. An exceptional technology platform can serve as easy justification in the new world. Rarely do associates have the technical skill, methodology and capital to create much online that is meaningful to increased ROI.  You won’t be able to participate in the “housing recovery” if you can’t pay the bills and innovate.
9. Hire good technical people who have a firm grasp of understanding the needs of a real estate associate and how that relates to company profitability and efficient system structure for the company.
10. Develop training programs that help the associate bridge the gap of understanding (in terms of online marketing, data aggregation, consumer outreach and the new sales and networking activities that are quickly manifesting in the online world).

Scott LeForce
President
Scott.LeForce@rwnc.net

It is ever more common to see mobile users whether it be in the office or at home. Carrying your laptop under one arm and a cup of coffee in hand as you head out to the back deck to enjoy the sights and smells of a wonderful spring morning. In the privacy of your own backyard, enclosed by fencing and shrubbery, your neighbors cannot see you and you while you sit on your back deck taking a few minutes to check your email and maybe even a little online banking. But are you truly alone?

Could someone be watching what you do online because you don’t have your wireless network secure?

It’s certainly a possibility and there are ways to minimize your exposure to such scenarios. There are multiple ways to secure wireless networks. Any security on your wireless network is better than none although if someone were technically proficient, most security wouldn’t stop them. It would be like locking your front door of the house but having a large window next to it. If someone wants in they can pick the front door, break it down, or break the window next to it. For those who want top notch security, I would advise them to seek a network security specialist.

WEP (Wireless Equivalent Privacy) was introduced in 1997 but was later found to be vulnerable to security weaknesses and, today, can be cracked with software within minutes.

WPA (Wi-Fi Protected Access) was introduced in 1999 as a temporary security protocol to replace WEP while a more advanced security protocol was prepared. WPA2 (Wi-Fi Protected Access 2) was introduced to replace WPA and is a more advanced security protocol. There are two version of WPA2: WPA2-Personal and WPA2-Enterprise. WPA2-Personal is designed for home and small office networks. WPA2-Enterprise requires an authentication server for an added layer of security.

Both WPA and WPA2 offer good security. The weakest link would be the password selected. The longer and more complex password you use, the higher level of security you will have. A strong password would be something around 15-20+ characters utilizing capital and lower case letters and numbers.

Tei Baishiki
Chief Technology Officer
tei.baishiki@rwnc.net