The 5 Keys to Make Sure Your Business is Booming

Our 5 Goals Today: Learn what the consumer truly wants from their real estate professional in today’s New Market Reality Learn the truth about Millennials and their feelings on homeownership. You may be shocked Learn how to prove to the Move-Up Seller that they should list their house now Learn where 30 year mortgage rates are headed and what it means to the industry Learn how to brand yourself as the true expert in your real estate market

Real Estate Has Changed

CONFUSION

It’s about connecting the dots!! It not about having the dots. It’s about connecting the dots!! Seth Godin Author, Entrepreneur, Marketer and Public Speaker

Be their ‘Expert’ This is a person to whom people will turn for advice on difficult or complex real estate decisions.

A Person They Can Trust “Weary of mis­information, people are making integrity a new form of competitive advantage… More important than ever to building brand equity and differentiation, trust has become a precious commodity.” Ford

Dave Ramsey “When getting help with money, whether it is insurance, real estate or investments you should always look for a person with the heart of a teacher, not the heart of a salesman.”

Which is easier to understand?

The Power of Using Visuals Presenters using visuals were perceived as more effective. People said such things as… More Professional More Concise More Credible More Interesting Better Prepared http://www.macrovu.com/VTVCInterEffectiveness.html MacroVU Visual Learning

Real estate marketing is shifting to effectively and consistently answering the one question every real estate pro gets asked: How’s the market? http://www.housingwire.com/articles/26818-move-up-buying-activity-rises-with-home-equity-gains Nobu Hata NAR’s Director of Digital Engagement

PRICES Going Forward

Home Price Expectation Survey A nationwide panel of over one hundred economists, real estate experts and investment & market strategists. https://pulsenomics.com/Q2_2013_HPE_Survey.php

APPRECIATION Average Annual % Bubble Recovery To Date Pre-Bubble Bust https://pulsenomics.com/Q2_2014_HPE_Survey.php Home Price Expectation Survey 2014 2Q

PROJECTED Mean Percentage Appreciation https://pulsenomics.com/Q2_2014_HPE_Survey.php Home Price Expectation Survey 2014 2Q

Cumulative House Appreciation by 2018 30.8% 19.5% 19.5% https://pulsenomics.com/Q2_2014_HPE_Survey.php 9.4% Pre-Bubble Trend Bulls All Projections Bears Home Price Expectation Survey 2014 1Q

MILLENNIALS

of all renters nationwide would like to buy within the next year Are 4.2M First Time Buyers about to Buy? of all renters nationwide would like to buy within the next year 10 % first-time home sales, if all renters that wanted to buy actually did purchase a home in the next year 4.2M http://zillow.mediaroom.com/index.php?s=159&item=422 Zillow 3/2014

Happiness - 62% Independence - 61% Achievement - 59% Millennials: Associate Owning A Home with… Happiness - 62% Independence - 61% Achievement - 59% http://www.pultegroupinc.com/investors/press-releases/press-release-details/2014/Better-Days-Ahead-Millennials-Think-So/default.aspx Pulte Group 2014

Best Long Term Investment 18-29 year olds http://www.gallup.com/poll/168554/americans-sold-real-estate-best-long-term-investment.aspx

70% 62% Look to an agent for sound guidance Millennials Belief in Real Estate and its Agents Optimistic about real estate in 2014 70% Look to an agent for sound guidance 62% Think a good agent can maximize the investment https://www.prudentialrealestate.com/Portals/0/Documents/Prudential%20Q4%20Consumer%20Outlook%20Infographic.jpg

Unemployment Rate: Millennials Ages 25-32 with a Bachelor’s Degree vs Unemployment Rate: Millennials Ages 25-32 with a Bachelor’s Degree vs. U.S. Rate http://www.pewsocialtrends.org/2014/02/11/the-rising-cost-of-not-going-to-college/ http://www.bls.gov/ Bureau of Labor Statistics & Pew Research 2/2014

Median Annual Full Time Wage: Millennials Ages 25-32 with Bachelor’s Degree vs. U.S. Rate http://www.pewsocialtrends.org/2014/02/11/the-rising-cost-of-not-going-to-college/ http://www.bls.gov/ Bureau of Labor Statistics & Pew Research 2/2014

Percentage of Buyers by Generation http://www.realtor.org/reports/home-buyer-and-seller-generational-trends NAR 2014

The Increasing Cost of Renting Median Asking Rent 1988-2013 http://www.census.gov/housing/hvs/data/histtabs.html Census Bureau 2014

2014 repeat homebuyer will be the year of the - Trulia http://info.trulia.com/2014-housing-predictions

Boomers are starting to move… “The oldest Baby Boomer turns 68 this year, and the youngest turns 50. They are buying homes in droves as their employment situation, home values, and stock portfolios have almost fully recovered from the Great Recession. We are seeing strong sales in this same demographic throughout the country.” John Burns Real Estate Consulting http://realestateconsulting.com/blog/lesley-deutch/affluent-second-home-buyers-are-back-droves

Thinking about moving up to the home of your dreams?

Move-Up Seller $6,000 Loss if they wait Current Price $300,000 Comparison – End of 2015 Current Home Move-up Home Current Price $300,000 $400,000 Future Price (+6%) $318,000 $424,000 Future Gain $18,000 $24,000 Loss if they wait $6,000

Move-Up Seller Price Rate P&I 400,000 4.2 1,956.07 424,000 5.4 Today 400,000 4.2 1,956.07 End of 215 424,000 5.4 2,380.89 Monthly Savings $424.82

The Impact of INTEREST RATES

30 Year Fixed Rate Mortgages Freddie Mac Actual Rates January 2013 – May 2014 http://www.freddiemac.com/pmms Freddie Mac 5/2014

Freddie Mac Projected Rates May 2014 – 2015 4Q

$265.52 $265.52 $3,186.24 $95,587.20 Monthly Annually Over 30 Years Date Mortgage Interest Rate* P&I** Today $250,000 4.2 1,222.54 End of 2015 $265,000 5.4 1,488.06 $265.52 Difference in Monthly Payment http://www.realtor.org/sites/default/files/reports/2014/embargoes/ehs-01-23-glltlotp/ehs-12-2013-overview-2014-01-23.pdf http://www.freddiemac.com/pmms/pmms_archives.html Monthly Annually Over 30 Years $265.52 $3,186.24 $95,587.20

Historic Mortgage Rates by Decade Average Rate Payment 1970s 8.86% $1,589 1980s 12.7% $2,166 1990s 8.12% $1,484 2000s 6.29% $1,237 April 2014 4.34% $994 http://www.freddiemac.com/blog/research_and_analysis/20140324_dirt_cheap_to_cheap.html The average 30-year fixed mortgage rates and the approximate payment for a $200,000 mortgage. Payments are principal & interest only, based on a $200,000 fully amortizing mortgage. All terms are assumed to be 30 years. Freddie Mac

gems of true insight continue to rise. “ Frivolous content will sink as the gems of true insight continue to rise. http://www.housingwire.com/articles/26818-move-up-buying-activity-rises-with-home-equity-gains Marc Davison 1000Watt Consulting

http://www.gallup.com/poll/168554/americans-sold-real-estate-best-long-term-investment.aspx Gallup 4/2014