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Archive for real estate trends

training up stepsThis blog addresses another one of the 10 trends I’ve identified in the 5th edition of Up and Running in 30 Days.

This trend addresses segmentation: It’s no longer effective to market the same way to everyone. And, it’s no longer okay to try to appeal to all client segments. Even if you choose 3-5 segments, you must learn to speak to each in its own language.

This month, I’m featuring excerpts from this book. As a manager, read the thoughts on segmentation and ask yourself, “Am I teaching my agents how to identify their best markets? Am I helping them segment and market to that segment?”

{Click here to see the updates in my fifth edition of Up and Running in 30 Days.}

Now: Four Distinct Segmentations of Buyers

As a new agent, I know youa��re just concerned about finding someone who wants to purchase or sell a home! Yet, leta��s think past just that. There are now four distinct segmentations of buyers (meaning those who want to buy our services of buying or selling a home). As you think about these distinct groups, ask yourself, a�?How do I have to adjust my selling style, my technology, my communication, and my expectations for each of these distinct groups? Which groups will I naturally relate to?a�?

  1. Traditionalsa��those older baby-boomers who are retiring
  2. Baby-boomersa��getting ready for retirement, these folks make up the second largest buying population and have the greatest assets
  3. Gen-Xa��these folks have purchased first homes, but because of the housing bust, hadna��t been able to move up
  4. Millennialsa��(Gen Y) first-time home buyers, typically looking for affordable housing, such as condos, co-ops, and so on

In the National Association of Realtorsa�� 2015 report, Home Buyer and Seller Generational Trends, Gen Y (millennials) comprises the largest share of home buyers, at 32%. This trend will continue, as their large numbers combined with improving personal financial conditions will enable these buyers to move the market. Gen X has the largest share of first-time sellers at 68%. Read this report to see buyer and selling habits of these various a�?targeta�� (segmented) markets, and choose your markets carefully.

  • Positives: If you are able to adjust in the areas mentioned here, you can relate and sell to more people. To be successful, you must be flexible and sensitive to these differing needs and desires.
  • Watch out for: Dona��t try to lump all these needs into one. The average real estate agent is in his 50s; the average buyer is in his 30s. Also, minorities will account for many more clients in the future, yet minorities are a small part of the real estate community. In many areas, buyers are frequently more tech-savvy than agents (thata��s generally true in the Seattle area, where I live, because of MicrosoftA� and related businesses). Also, agents tend to work the market as theya��ve known it. They are relating to the past, rather than accessing trends and working the market theya��re given. Be sure to stay updated on where the market is going (your manager is a great source of this information).

* Big Idea: One size fits all is no longer applicable to real estate sales. Agents must specialize in each of the niches they want to serve.

Recruiting today depends on a new mindset. Here are four areas to a�?right turna�� your mindset:

  1. Hire to the ever more discriminating customer

According to the latest surveys, the client is not happy! We all know the client is more educated, more informed, and more demanding. We also know the client takes much longer to make a buying decision (from first Internet looks to decision take 9-28 months, according to industry leaders).

Your hires: Must be more dedicated and more tenacious to succeed.

2. Hire to a new business structure

The hire of today and tomorrow doesna��t want that old a�?exclusivea�� structure we all built. It wona��t work to say a�?You must be with us to succeed.a�? The desired structure is inclusive: Open, not hierarchical, and participative. So, drop the VP and the playing favorites to the old guard. They may be feeding you today, but theya��re dying tomorrowa��a��

Your hires: Want an inclusive atmosphere. That means more openness, independence, and diversity.

3. Hire to an interview process focused on the candidate.

The old a�?hard sella�� isna��t attractive to the hire of today and tomorrow. So, drop the 2-hour sales job and, instead, focus on getting to know the candidate.

Your hires: Get to really know each one in a well-crafted, question-focused interview process.

4. Hire as though you were actually excited to develop that individual.

The consumer is not impressed with the a�?fog the mirrora�� hiring method. The right turn is to be a�?solda�� enough on each new hire to help her create the skills and the career she wants. That means to focus on coaching and small group accountability training.

Your hires: Must want to, and be capable of, developing a career with your coaching and facilitation. Your clients expect that much.

Excerpted from Carla Crossa��s newest recruiting presentation and webinar, a�?Right Turnsa��: New Mindset and Strategies to Recruit to your Future.

Agents with two careers are on the rise. Are they harming your reputation? In Stefan Swanepoela��s publication, Trends Report 2010, he calls the real estate licensee with another job the a�?dual careera�� agent. Thata��s what we used to call the a�?part-timera��. Although a�?dual careera�� sounds much more important than a�?part-timea��, the result is the same: Less time to devote to the consumer. Being pulled in two directions is very difficult. The conflict that an agent feels when he has another job is causing the consumer to rate our service lower than ever before.

Dual Careerists Are a Growing Trend

More and more real estate agents are getting second jobs to make ends meet. In fact, the 2009 National Association of Realtorsa�� Member Profile says that 26% of Realtors stated that real estate was not their only occupation. (Ia��m sure that many more licensees who arena��t Realtors have other major sources of income). In addition, less than half of all Realtors surveyed reported that real estate was their primary source of household income.

Is the Dual Careerist Doing the Industry More Harm than Good?

Having been an agent, manager and owner a long time, I know how difficult it is at times for an agent to a�?hang in therea��, put their heads down, and keep working through tough times. Ita��s a great temptation, and a relief for many to take that other job just to a�?tide them overa��. From the brokera��s perspective, too, keeping the agent at least licensed with the brokerage to get that one transaction seems to be better than losing that one transaction.

Several problems accrue, when the agent gets another job:

  1. The agenta��s mind, energy, and dollars drift away from the needs of the consumer because the agent must focus on another job
  2. The agent cana��t keep up on the technical, legal, and business developments
  3. The consumer demands just cana��t be met when the agent is unavailable for large blocks of time
  4. The broker must carry a much bigger responsibility for the agenta��s transactions

If you are a broker who finds more and more of your agents getting other jobs, ask yourself, “What do I need to do to get these agents’ careers off the ground so they don’t need second jobs?” Now, get the game plans and coaching expertise you need to get on the ‘offensive’ with agents’ careers.