1. The 5 Keys
to Make Sure Your
Business is Booming

2. 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

3. Real Estate Has Changed

5. CONFUSION

6. 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

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

8. 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

9. 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.”

10. Which is easier to understand?

11. 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
MacroVU Visual Learning

12. Real estate marketing is shifting to effectively and consistently answering the one question every real estate pro gets asked:
How’s the market?
Nobu Hata
NAR’s Director of Digital Engagement

13. PRICES Going Forward

14. Home Price Expectation Survey
A nationwide panel of over one hundred economists, real estate experts and investment & market strategists.

15. APPRECIATION Average Annual % Bubble Recovery To Date Pre-Bubble Bust
Home Price Expectation Survey Q

16. PROJECTED Mean Percentage Appreciation
Home Price Expectation Survey Q

17. Cumulative House Appreciation by 2018
30.8%
19.5%
19.5%
9.4%
Pre-Bubble
Trend
Bulls
All
Projections
Bears
Home Price Expectation Survey Q

18. MILLENNIALS

19. 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
Zillow 3/2014

20. Happiness - 62% Independence - 61% Achievement - 59%
Millennials: Associate Owning A Home with…
Happiness - 62%
Independence - 61%
Achievement - 59%
Pulte Group 2014

21. Best Long Term Investment
18-29 year olds

22. 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

23. Unemployment Rate: Millennials Ages 25-32 with a Bachelor’s Degree vs
Unemployment Rate: Millennials Ages with a Bachelor’s Degree vs. U.S. Rate
Bureau of Labor Statistics & Pew Research 2/2014

24. Median Annual Full Time Wage: Millennials Ages 25-32 with Bachelor’s Degree vs. U.S. Rate
Bureau of Labor Statistics & Pew Research 2/2014

25. Percentage of Buyers by Generation
NAR 2014

26. The Increasing Cost of Renting
Median Asking Rent
Census Bureau 2014

27. 2014 repeat homebuyer will be the year of the - Trulia

28. 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

29. Thinking about moving up to the home of your dreams?

30. 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

31. 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

32. The Impact of
INTEREST
RATES

33. 30 Year Fixed Rate Mortgages
Freddie Mac
Actual Rates
January 2013 – May 2014
Freddie Mac 5/2014

34. Freddie Mac Projected Rates
May 2014 – Q

35. $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
Monthly
Annually
Over 30 Years
$265.52
$3,186.24
$95,587.20

36. 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
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

37. gems of true insight continue to rise.“
Frivolous content
will sink as the
gems of true insight continue to rise.
Marc Davison
1000Watt Consulting

39.
Gallup 4/2014