Have Your Listings Increased 6% from Last Year? [Q3-2014]

Real estate agents know how important it is to keep up with national and local market data so they can serve their clients. Yet it can be confusing to know exactly what to do with all the information. This article will help you understand how to interpret inventory, months of supply, and pace of home sales data and see how together, all of this data can help you shine in your listings presentations and boost your performance.

The Facts: There are 2.3 million homes listed for sale in the U.S and they are selling at a faster rate than in 2012.

Inventory: In September 2014, there were 2.3 million homes available for sale in the U.S., which is down slightly from August 2014. A decline is expected this time of year as home sales slow down in the fall and winter months. Looking at September 2012 inventory levels, we see that even though units available is down from last month, it is up 6% from this same time last year.

Months of Supply: Nationally, we have 5.3 months of supply of inventory. This means that if no new homes were listed, it would take 5.3 months to sell all 2.3 million homes currently listed. This figure indicates we are moving toward a balanced market and as a result we can expect to see price changes around 4-6%. Read our recent discussion about price change and what it means for your clients.

Demand: In June 2012, there were 2.4 million homes on the market with 6.4 months of supply. Looking at September 2014 units available, we see it is almost the same as June 2012. However, the months of supply is 5.3. How can there be almost the same number of units on the market today as there was in June 2012, but the months of supply is different? The answer is that in 2012, fewer homes were selling per month than are today. When looking at inventory and months of supply, you also have to take into consideration the rate at which homes are selling in your market.

Evaluating all three of these components together, gives you the most accurate picture of the current market and it helps you compare your performance against the market.

The aha: If listings are up locally, your listings should also be up and your market share increasing.

How many listings did you have in September 2013? How many listings did you have in September 2014? What is the percentage difference? Now, look at your local market data and ask the same three questions. If your listings increase is on pace with the area’s listings increase, congratulations! If your listings are not increasing at the same pace as your local market is increasing, you might have missed some opportunities for listings and lost market share. Don’t worry. Here are two steps to help you seize more opportunities in your market and increase your listings.

Step 1: Collect your monthly local data and understand it. Every month you should look at the number of homes listed in your area and compare that to the same time last year. Set calendar reminders each month to remind yourself to gather the data from your local real estate board. Then, look at the months of supply inventory number to get an idea of the relationship between supply and demand. Knowing how inventory and price changes work together can help you accurately price your listings and educate your clients on the rationale for your recommendations. By combining this information, you can incorporate it into your listings presentations and present the most accurate market representation to clients. You can also use this information to guide your marketing plan and keep yourself and your clients on track for success.

Step 2: Create an action plan based on your market trends.  Once you have collected and analyzed the data,  you can gauge where the direction of inventory is headed in your market. It will also give you a better idea of what price changes can be expected in the next month. For example, if your market has only 1-2 months of supply for several months, this means prices will soon drive up because there is not enough inventory to meet demand.  On the contrary, if you are in a market with a larger monthly inventory supply, you can expect home prices to dip. Depending on how your market is trending, create listing presentations with recommendations that fit the trend. Give your clients the up-to-date data and show them how you plan to use it to market their property so it can outperform. Use the Keller Williams models and systems and combine them with current market data to help you stand out as the most trusted and most knowledgeable agent in town.

ConnectedHealth Client Keller Williams Realty Receives 2014 Superstar Award From The Institute For Healthcare Consumerism

ConnectedHealth, the provider of the industry-leading benefits marketplace and personalized shopping platform for employers, health plans and consumers, congratulates its client, Leslie Vander Gheynst, Director of Human Resources at Keller Williams Realty, Inc. who was honored as a “Superstar” by The Institute of Healthcare Consumerism (IHC) for the “Most Effective Implementation of a Private Exchange” in 2014. This award is given annually to forward-thinking professionals who have excelled at implementing solutions for benefit distribution.

Vander Gheynst was nominated based on her commitment to launching a progressive benefits strategy at Keller Williams. Specifically, Vander Gheynst and her team worked with ConnectedHealth to design a co-branded version of ConnectedHealth’s Smart Choices™ Marketplace, called the KW Wellness Benefit Marketplace, which allows Keller Williams’ associates nationwide to easily shop for a full range of medical and ancillary benefits online.

“I am honored to receive this recognition from the IHC for the approach we have developed at Keller Williams to make comprehensive benefit options available to more than 90,000 of our associates,” said Vander Gheynst. “The ConnectedHealth platform has become an integral part of our overarching healthcare strategy and helps drive our company mission of ‘Careers Worth Having, Businesses Worth Owning and Lives Worth Living.’”

For the past several years, the IHC has presented the Superstar Awards to over 60 companies and professionals who inspire consumerism in the healthcare industry. Award recipients were nominated by their peers and selected by the IHC’s editorial team and advisory board in categories such as leadership, plan development and implementation.

“Keller Williams leads the real estate industry by recognizing the advantages of a private exchange, and we’re excited that the IHC is now honoring Keller Williams for their hard work and forward-thinking strategy,” said Joe Donlan, President of ConnectedHealth. “2014 marks the second year in a row that a ConnectedHealth client has been recognized by the IHC for a private exchange implementation strategy, which is a testament to our team’s ability to help businesses offer employees benefit solutions that support healthy, financially secure lives.”

ConnectedHealth provides an easy-to-use ecommerce platform that is also fully integrated with the federal marketplace. The award-winning shopping site helps consumers successfully navigate the new complexities associated with selecting health benefits. With ConnectedHealth, Keller Williams helps its associates not only ensure they are compliant with Affordable Care Act (ACA) requirements, but gives them the easiest way to choose and enroll in their selected coverage whether they are subsidy-eligible or not.

About Keller Williams RealtyKeller Williams Realty, Inc. is the largest real estate franchise company in North America, with approximately 700 offices and more than 90,000 associates around the world. The company has grown exponentially since the opening of the first Keller Williams Realty office in 1983, and continues to cultivate an agent-centric, education-based, technology-driven culture that rewards associates as stakeholders. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information or to search for homes for sale visit Keller Williams Realty online at (www.kw.com). For more information about KWWorldwide, please visit kwworldwide.com.

About ConnectedHealthConnectedHealth drives corporate growth by making it easy for employees to be healthy and financially secure. Founded by pioneers of the consumer transparency movement, the company’s award-winning consumer-friendly platform delivers innovative benefits strategies while offering consumers the most intuitive shopping platform available. To learn more about how ConnectedHealth is revolutionizing group and individual benefits, visit us at www.ConnectedHealth.com or on LinkedIn, Facebook and Twitter.

Taking Back The Finish Line : A Story About The Keller Williams Culture

At Keller Williams Realty, our associates are more than just members of the company, they are members of our family. And to us, that means everyone working together to fulfill our mission to build careers worth having, businesses worth owning and lives worth living. To illustrate just how strong our culture is, Alex Coates, associate in the Wayne (Pa.) market center, shares his inspiring story about Keller Williams associates coming together for a great cause.

Alex Coates owned his own broker company prior to joining Keller Williams in 2011. Coates decided to join Keller Williams because of the growth opportunities across multiple real estate businesses.

In 2007, Alex’s wife, Tara, ran the Boston Marathon as part of the Dana-Farber Marathon Challenge, which supports a prestigious cancer research and treatment center in Boston. Tara ran in honor of Alex’s uncle, Perry Gresh, who passed away from cancer in 2004. In 2010, Alex’s father-in-law, Ed Williamson, lost his battle with melanoma. So, in 2014, Alex decided he would run the 2014 Boston Marathon as part of the Dana-Farber Marathon Challenge. Alex was also inspired by the victims of the 2013 Marathon bombings. This was his first full marathon. “The marathon itself was amazing, emotional and inspiring as the city literally took back the finish line after the horrible events that happened the prior year,” Alex said.

Together, Alex and his wife raised over $34,000 for Dana Farber between 2007 and 2014. “Our Keller Williams market center and nearby market centers were a huge support with fundraising.” Alex said, “As everyone came together to help, the culture of the company really showed its true colors.” 

After the marathon was completed, Alex received a call from the Greater Boston Association of REALTORS® (GBAR). They called to inform him that David McCarthy, operating partner of the Keller Williams Realty Boston-Metro (Mass.) and Chestnut Hill (Mass.) market centers, notified them of Alex’s involvement in the marathon. Alex and David had never met. “He must have known I was running the marathon from Facebook or something online,” Alex said. GBAR and the Massachusetts Association of REALTORS® (MAR) held a fundraiser to support REALTORS® who were running the Boston Marathon for charity purposes. They wanted to include Alex and his charity. GBAR and MAR donated $650 to the Dana Farber Marathon Challenge.

Alex was extremely grateful for the donation from GBAR and MAR. Further, he was in total amazement that someone he never met was thoughtful enough to have him included in the donation pool. The fact that another member of the Keller Williams family helped Alex with his charity efforts really moved him. “Not only does this speak to the entire real estate community as a whole, it touches on so many levels that connect with the Keller Williams culture,” he said.

Although Alex is not running the 2015 Boston Marathon, his support for the Dana-Farber Cancer Institute is ongoing.

A BOLD Story: It Started with Just Coffee

It is no secret that BOLD conditions real estate agents to succeed with powerful mindset exercises, language techniques, and lead generation activities. Last year, according to KW MAPS Coaching, BOLD graduates increased their closed transactions by 50% and increased their income by 114%. However, many don’t know that BOLD can also transform your personal life. One Keller Williams agent shares her story about how BOLD increased her profitability and transformed her personal life.

Denise Buchanan

In a January, 2013 BOLD class, Denise Buchanan, associate in the Atlanta–Roswell (Ga.) market center, wrote a letter detailing where she would be one year from that date. The letter included several personal items, such as meeting someone special, as well as making plans to travel someplace wonderful every quarter. In addition to personal goals, Denise set forth her business goals, which included increased income and increased profit share earnings.

Eight months later, in another BOLD Class, Denise decided to be BOLD and ask someone about Jerry Walker, a local author who provided the sponsored breakfast for the class. “He is really handsome. What is his story?” Denise asked her friends.  Denise had no idea how her life would change by taking this one BOLD step and asking this one question.

In December, Denise was set up with Jerry and the two met for coffee. It was just breakfast.  Denise and Jerry spent two hours getting to know each other. Then, Denise asked another BOLD question, “Would you like to do this again?” Two days later, they met again for breakfast, but this time their date extended well into the afternoon. Denise said that by the end of the second date they knew there was something special between them.

In January, 2014, Denise received a letter from Dianna Kokoska, CEO of KW MAPS Coaching. The letter said Denise had reached four out of her five goals. “WOW !!! This stuff works!” Denise thought.

In February, over coffee and breakfast, Jerry asked Denise to marry him. On March 16, 2014, Denise and Jerry were married, you guessed it, over breakfast.

This real life BOLD story shows how stepping out of your comfort zone and reaching for what really matters in life can yield amazing results in both your professional and personal life. Learn more about how BOLD can help you accelerate your growth plan.

Managing Home Buyers With a Small Team

While many real estate agents focus their attention on getting listings, Sarita Dua loves buyers, and they make up the lion’s share of her business. Of the 143 transactions her team closed in 2013, totaling $48 million in their Portland West (Ore.) market center, 97 were buyer-side transactions. For Dua, agents don’t need a large team to make buyers a profitable part of their business. Here are some strategies that work.

Build a Reputation

In an area that’s turned into a hot seller’s market where it’s not unusual to get multiple offers on a house within days of its market premiere, Dua and her small team of four – two showing agents, a transaction coordinator and a listing coordinator – have become known as the team that will “get the house for you.” Managing such a substantial base of buyers is all about mindset, she says.

“As that shift [to a seller’s market] happened, some agents would get a lead and be disappointed because it was a buyer and not a seller. Buyers can be more work because you’re showing more houses. Our strategy is a little different.
We love buyers in a seller’s market. You can control the buyer,” she says.

By “control,” Dua means that agents can keep showing buyers properties, varying the criteria and presenting more options, until they find something buyers love, while listing agents have to deal with any of the challenges a listing has. But she can be creative in solving buyer challenges, even with a small team. Her transaction coordinator handles the paperwork while her showing agents are “real inventory specialists,” looking at more than 200 houses each month, she says.

Dua attracts many buyers because she’s a skilled negotiator with a reputation for getting the deal done. She’s encountered a number of buyers who were about to give up, having lost a number of properties in the bidding process. But she’s so confident in her representation that she sends a mailer to renters saying, “Are you tired of losing? We have what it takes to win in this market.” She says she’s been in many situations where the property has had as many as 23 offers and she was the one who landed the contract. The key, she says, is being prepared and being able to zero in on what the seller wants, whether it’s a quick closing or the assurance that the buyer is pre-screened and able to follow through on the transaction.

Create a Buyer System

Dua’s showing agents handle most of the upfront work unless it’s a referral that needs her presence on the first introduction. Her assistants handle lead conversion, consulting and showing, starting with an office consultant. If it’s a purchased lead, it’s assigned immediately to a showing agent roundrobin style, unless Dua feels one agent has a particular strength that will help
the transaction along.

“I’m a big NBA fan. You’re not going to put your rookie in for 48 minutes,” she says. “When I do have a strong showing agent, they’re going to get more because it’s an opportunity. They’re working at their highest level,including sign calls and referrals.”

The agents use the KW associate Claudia Restrepo’s LPMAMA script, which is an acronym for:
Location What home is the buyer interested in?
Price What price range are they shopping in?
Motivation How motivated are they to buy a home?
Approved Have they been approved for a loan?
Mortgage What is the mortgage amount they have been approved for?
Agent Do they have an agent?

From there, they work on scheduling an in-office meeting. Once the buyer comes to the office for a meeting, the agents explain the different roles of everyone on the team. In order to work with her team, the buyer must be prequalified and sign a buyer’s agreement. Buyers like working with her team because they want to know that someone is working hard on finding them a property and will act quickly when an opportunity arises, she says. Once the paperwork is completed, agents begin showing homes based on the information they gathered in the consultation. Dua gets involved when the buyers are ready to write an offer.

“When they come in the office, we’re interviewing them as well. We want them to choose us, but if they want a $500,000 house for $200,000 and they want us at their beck and call, we’re probably not the right fit for them,” Dua says.

Turning Happy Buyers into a Lead Generation Machine

A solid 85 percent of Dua’s business is from repeat clients or referrals: “People who like me, who trust me and have worked with me in the past,” she says. Her team is trained to cultivate listing and referral opportunities from buyers and they have a sophisticated system of staying in touch with referral sources as well as current, existing and past clients.

The team hosts several events every year and Dua says they each bring about three to five referrals. In 2013, they hosted a summer barbeque, December holiday party, family bowling party and a pumpkin pie giveaway at Thanksgiving.

Dua also has what she calls her “top 24.” These are her top 24 clients or referral sources who she calls monthly and tries to meet face-to-face as often as she can. She uses the DISC to identify their dominant behavior. For example, high Is want more interaction and experiences, while high Ds just want to cut to the chase. She also ranks clients based on the volume of business and likelihood of referrals, whom she calls once each quarter or once a year.

In addition, Dua does a series of informal videos that she sends by email. They are unscripted updates of market data, what she’s seeing and what she believes is happening in the market, based on her professional expertise. At first she fussed about the script and her appearance, but the more informal she became, the better they worked, she discovered.

“I finally got over what I look like and how I sound and what my hair looks like,” she says.

Social media is also an important marketing and keep-in-touch tool for Dua’s team. She mixes sales and personal information on her Facebook page, including a range of information from market data to information about her children. Recently, for example, she posted about her own relocation, lamenting that real estate professionals should move every few years just to know what clients go through.

Dua’s system has been developed over time and works well for her. Her natural ability to negotiate and put people at ease also helps her team be successful. While she’s in the market for another showing assistant, she’s also happy with the team she has, she says.

Keller Williams Ranked No. 2 in Sales Growth Percentage on Franchise Times 200

With year-over-year sales growth of 30.2 percent (an increase of nearly $1 billion over the previous year), Keller Williams is the highest ranking real estate company for sales growth percentage on theFranchise Times 200.

KW also moved up from No. 36 to No. 28 on the annual list of America’s biggest franchise companies. (The top 3 are McDonald’s, 7-Eleven and KFC.)

The strong showing by KW follows on the heels of recognition by several other leading organizations that track and analyze franchise sales:

Entrepreneur Magazine

Keller Williams made the Franchise 500 list for the fifth year in a row and secured placement among the Top 100 Global Franchises

Inc. Magazine

Keller Williams earned a spot on the Inc. 5000 Honor Roll, making the list of the fastest-growing private companies in the United States for the fifth year in a row.

In addition to the accolades for franchise strength, Keller Williams continues to receive honors and awards for its training and innovation and for associates’ productivity and professionalism. Take a look!

Mortgage Rates Are Down. What Does That Mean For Your Clients?

When it comes to countertops, square footage and lot size, your clients are well informed and know exactly what they want. However, understanding more complex matters like mortgage rates can be confusing and even overwhelming for home buyers and sellers. To help our associates better serve as their clients’ local economists, Keller Williams is initiating a new series called Market aha’s. The goal is to provide important industry data in an easy-to-explain manner.  The quarterly series will cover mortgage rates, price changes, inventory, GDP and unemployment data. This is the first article in the series.

The Facts: Mortgage Rates Are Down

Earlier this year, it was anticipated that rates would be higher now than they are.  However, despite a slight increase in rates over the summer, the current rate for a 30-year fixed-rate mortgage is 4.19 percent according to Freddie Mac. What is the mystery behind these historically low rates and what does this mean for your clients looking to buy or sell now?

The aha: Don’t Wait to Buy or Sell. Rates Are Expected to Rise

Mortgage rates are more than just the interest rate on a homeowner’s mortgage. Understanding how they are determined and what affects them can help your clients make more informed real estate decisions. Many people think mortgage rates are controlled by the Federal Reserve and can be arbitrarily turned up or down at any given time. While the Fed affects the rates, it does not act alone. Here are the five main factors that affect mortgage rates:

1. Federal Reserve Policy.  There are two actions the Fed can take that affect interest rates.  First, the Federal Reserve can change the Federal Funds Rate by altering short-term treasury securities investment levels. When the Fed purchases more bonds, mortgage rates tend to go down and vice versa.  When the Fed talks about raising interest rates, they are talking about the Federal Funds Rate, which is the rate banks charge each other to borrow money (known more commonly as interbank lending). Currently the Federal Funds Rate is practically at zero percent and has been there for a while. The Fed has stated that this rate is likely to rise within the next year.

The second action the Fed takes that affects interest rates is the purchasing of assets, such as long-term treasury securities and mortgage-backed securities, which historically has not been part of monetary policy. However, the Fed has been slowly reducing its purchases of these types of assets and has stated it will cease all purchase activities next month.

2. Bond and Treasury Investments. Bond purchases are not exclusive to the Federal Reserve. Private investors can also purchase bonds. When more bonds are purchased, prices rise and the yield (the amount of return an investor will realize on a bond) goes down. This matters because mortgages are essentially bonds and their rates compete with the rates of other investments. If the interest rate on bonds decreases, that downward pressure is applied to mortgage rates and they fall as well. Recent increased purchases of these short-term investments are likely due in part to the volatility in foreign markets, which is driving funds into U.S. treasuries, thus lowering the yield. As global affairs stabilize, money is likely to move out of U.S. markets and drive interest rates up.

3. Mortgage-Backed Securities. A mortgage-backed security is an investment tied to mortgages. Private banks sell mortgages to Government Sponsored Enterprises (GSEs), which then bundle multiple loans and sell them to investors as mortgage-backed securities. These long-term investments affect the market because as demand increases, banks have incentive to create more supply, which puts downward pressure on interest rates.

4. Housing Market Activity. When the housing market is strong, there is more demand for home loans and banks can charge higher rates. This is a classic example of supply and demand. The current housing market is balanced and healthy with indicators pointing toward more development in the future.

5. Current U.S. Economic Climate. When the economy is strong, people have more money to spend. Slow economic activity at the beginning of 2014 coupled with the fact that inflation levels remain below the target of 2 percent, have likely had some downward effect on mortgage rates by boosting the real return of given nominal rates. The economy is expected to continue a steady pace for the remainder of 2014.

Although your clients may be tempted to wait for rates to fall, there is no guarantee they will. Historically, rates have been much higher and most indicators suggest they will rise soon. Compared with the average 30-year rate from 1990-2004 of 6.7 percent, 4.1 percent doesn’t look bad. Although there are no guarantees, evaluating and understanding the five factors above will allow you to provide an informed prediction as to which way interest rates will shift.

Keller Williams Named One of 10 Best Companies for Employee Financial Security

Keller Williams Realty’s outstanding commitment to their employees’ financial and physical wellness has earned them the distinction of being one of the best. An independent judging panel of employee benefit experts named Keller Williams as one of the 2014 winners of The Principal® 10 Best Companies for Employee Financial Security.

Judges selected Keller Williams because of the company’s commitment to employee financial security through outstanding employee benefits. Keller Williams, which employs 220 people at its international headquarters in Austin, is also featured in the October 2014 issue of Inc.magazine for this achievement.

“Keller Williams and other Principal 10 Best winners are committed to their employees’ long-term financial well-being,” said Luke Vandermillen, vice president at the Principal Financial Group®. “They understand that the people and culture can really make a difference in an organization. When companies like these invest so much in benefits that support their employees, people notice.”

The Principal® sponsors the national program. It honors growing companies for their commitment to their employees’ financial security.

“We are honored to have been named to the Principal 10 Best list,” said Keller Williams CEO Mark Willis. “As a profit-sharing company, we are committed to investing in our people and helping them self-optimize their financial well-being.”

As part of their best practices, Keller Williams works with an Employee Leadership Council comprised of KW associates to help make choices that support employees’ financial future. Another key best practice is recognizing that benefit programs play a critical role in employee engagement, retention, and productivity.

“Employee engagement generates powerful returns for our company, keeping projects on track so we can deliver industry-leading innovation that gives our agents a competitive edge,” Keller Williams President Mary Tennant said.

Along with the award recognition, The Principal awards a donation to a charity selected by each winning company. Keller Williams chose KW Cares – a 501(c)(3) charitable organization that supports Keller Williams associates and their family members who are enduring unexpected hardships – to receive the $2,500 donation.

Learn more about The Principal 10 Best Companies for Employee Financial Security atwww.principal.com/10best.

About Keller Williams Realty:

Keller Williams Realty, Inc. is the largest real estate franchise company in North America, with 700 offices and 107,000 associates in more than a dozen countries around the world. In 2014, Keller Williams was named the No. 1 training organization in real estate and No. 2 training organization across all industries in the world by Training magazine. The company has grown exponentially since the opening of the first Keller Williams Realty office in 1983, and continues to cultivate an agent-centric, education-based, technology-driven culture that rewards associates as stakeholders. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information or to search for homes for sale visit Keller Williams Realty online at (www.kw.com). For more information about KWWorldwide, please visit kwworldwide.com.

About the Principal Financial Group:

The Principal Financial Group® (The Principal®)¹  is a global investment management leader offering retirement services, insurance solutions and asset management. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500®, the Principal Financial Group has $517.9 billion in assets under management² and serves some 19.4 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.