Monthly Archives: January 2018

How to Handle Asking Sellers to Lower the Price

How to Handle Requests for a Lower Selling Commission

Discount brokers are popping up nationwide, sporting “sell-to-the-commission” tactics. In today’s real estate selling tips, we’ll take a look into how this concept backfires for all parties, and how to explain to buyers why a fair commission will net a better all-around sales experience.

The Unalienable Truth of a Fair Commission:
Lower Sales Cost + Lower Commission = Shortage of Showings.
This also equates to confusion and frustration for buyers and sellers, who are left on the sidelines. If more buyers/sellers understood the following facets of agent commissions, they would finally understand why ‘you get what you pay for’ when it comes to sales commissions.

The Split:
In the typical 50/50 commission scenario, a 5% split would pay 2.5% each to the buyer’s and seller’s agents. With a discount broker, the buyer’s agent typically ends up shorted, getting 2% to the seller’s 2.5%. With an average home price of $250,000, sellers see that 0.5% saved as an extra $1,250 in-pocket. This miniscule portion, however, points agents representing buyers to other homes not nickel-and-diming agents.

The result? Less showings, with less potential sales. Less competition, with a lower possibility of the coveted ‘bidding war’. A longer time on the market, with buyers wondering what’s wrong with the home. A negative stigma, resulting in a lower purchase price, and lagging sale. It’s the same extended market time that overpricing leads to, which likewise kills the potential to get top dollar.

The Ridiculous Question
Ask your sellers to ask themselves, “Which house do you think a buyer’s agent will want to sell: A competing home willing to pay the typical commission, or a home listed by a ‘discount broker,’ which involves the same work for them, but pays less?”

Delve into the nitty-gritty of this argument in Part-2, exploring what you assume clients know, but often don’t, about commissions, and the real estate selling tips to break it down from Properties Online today.

How to Market Real Estate to Generation Z Buyers

How to Market Real Estate to Generation Z Buyers

With more mobile phone connections existing than people on the planet, real estate news points to changing teams – particularly when it comes to marketing to Generation Z buyers. As smartphones continue their climb to the top as the go-to marketing channel, how will you reach Gen Z buyers?

Small Screen, Big Impact
Over 50% of kids under 18 were raised in homes without a landline. And forget Tracphones – 85% of their phones are smart. This is having huge repercussions on marketing tactics for Gen Z buyers.

What’s the Best Way to Market to Gen Z?

– Not ‘Mobile-First’… ‘Mobile-Only…’
Because of Gen Z’s ‘mobile-only’ focus, mobile advertising will comprise one-third of advertising dollars in the next few years. How portable is your current realty campaign?

– Push-‘Em, Don’t Pull-‘Em
Push notifications, those app-base pop-ups that litter your smartphone, are three-times more likely to be opened than emails by Gen Z buyers, showing an opt-in rate of 36% in iOS real estate apps.

– App-Happy
90% of mobile device time is spent in apps, versus Internet browsers. A quick-and-dirty app won’t work though – Gen Z leaves frustrating apps roadside. Instead of buggy apps, look to marketing tools flexible enough to incorporate with today’s latest social networks.

– Short-Sighted
Multi-screen users, Gen Z browsers bounce from device-to-device, with an attention span of mere seconds. Tweet. Insta. Snap. If you can’t engage them fast – they’re gone. For this genre, YouTube video marketing is the medium of choice.

– Socially Commitment-Phobic
It’s hardly real estate news that Gen Z-ers spend a lot of time in social apps. But what may be news to older generations: They’re a fickle lot, with favored social platforms rapidly morphing. Without a flexible marketing platform that can rapidly shift, you’ll be left in the rearview.

Marketing to these ‘creatures of the moment’ taking you a blue moon? There’s a better way. Learn more about the latest integrative technology from PropertiesOnline today.

What Real Estate Agents Need to Know About Generation Z

What Real Estate Agents Need to Know About Generation Z

In buyer-centric real estate news, Gen Z is arriving on-scene, surprising the realty-selling masses with the fact that they’re already old enough to buy homes. New to the housing market, they are the largest generational group in the U.S., now comprising more than 21% of the American population.

How Does Gen Z Differ from Previous Generations?
Born from 1995-2010, the oldest, now 23-years-old, are entering the housing market as renters. Sharing the same opinion as previous generations, they continue to view home ownership as the American dream. According to BHG Real Estate, 97% believe they will own a home, with 57% considering buying while looking for their last rental.

Gen Z Shopping Tendencies:

– Limited Attention Spans
Generation Z is fast to fill out a rental app, but not much for the home search, spending less than a month seeking new housing.

– Strong Family Influence
Despite their social tendencies, Gen Z looks at online reviews as the opinions of strangers. Friend/family endorsements are trusted, with parents heavily influencing purchases.

– DO Want an Agent
Despite this perpetually Tweeting, Snapchatting culture, real estate news points to Gen Z as true tire-kickers, preferring to shop in-person and surprisingly, not online. 81% expect to enlist the help of an agent in the home buying process.

– Need Space
Gen Z craves square footage, with a bedroom for each kid, guest room, and even movie/game rooms – perhaps a reflection of their squeezed, multi-generational upbringing.

– Still Want to Stay Connected
Despite a desire for space, they crave communal amenities geared at bringing people together, and prefer living with others to living alone.

– Aren’t Impressed by New, Builder Grade Homes/Materials
Having grown-up glued to HGTV, Gen Z buyers are well-versed on homebuilding materials, and desire hardwood floors, granite counters, and high-end appliances.

How will the aspirations and preferences of Gen Z buyers continue to morph the national housing market? Stay-tuned for the latest real estate news from Properties Online.

Avert Crisis With This Information!

The Serious Impact of Flood Insurance on Real Estate Markets

Stronger storms have taken their toll across the U.S. Yet real estate news points to a National Flood Insurance Program (NFIP) in peril. Long-term reauthorization of the program remains in limbo, with yet another 4-week extension allotted by Congress. But this short-term fix gives little confidence to homeowners, who stand to lose access to flood insurance if the NFIP lapses.

FEMA Could Stop Selling/Renewing Policies Nationwide…
Stymying sales on properties with a flood insurance requirement to the tune of 40,000-sales/month nationwide. And though private insurers are popping-up, this option is not available in every state, limiting opportunities for Americans seeking to protect themselves from flood losses.

NAR Pushes for Five-Year Re-Authorization
A senior policy rep for the NAR is pressing for the passage of the 21st Century Flood Reform Act. The bill would provide money for helping homeowners mitigating flood risk, limit insurance rate hikes, and improve flood mapping, seen as key to success. Of the more than 180,000 Houston-area properties flooded by hurricane Harvey (10% of the property tax roll), only 15% were covered by a flood insurance policy. Many of the homes imperiled by Harvey’s historic 50-inch rainfall were outside federally-recognized flood zones, and were uncovered. Improved flood mapping would increase awareness of flood risk, alerting homeowners to the need for coverage in areas previously designated as outside flood zones.

What Will the Future Hold?
Imagine the future of markets without access to this insurance. Homeowners need confidence in the availability of flood insurance. Though a lapse in the NFIP is unlikely, and FEMA will continue to have the authorization to pay valid claims with available funds, the realty community and homeowners await upcoming NFIP real estate news. Congress has until January 19, 2018 to take its next step.

Suffering from the perfect storm of sales issues? Properties Online is here to help, with real estate news and technology to help keep you afloat. Learn more today.

New Year, New Issues: The Most Influential Factors of 2018

New Year, New Issues: The Most Influential Factors of 2018

Constantly ebbing and flowing with the day’s global events, real estate news seems to be always changing, making the task of keeping up with shifting trends a continuous challenge for agents. What trends are essential to your future success, and which are better left in the rearview mirror for the upcoming 2018 real estate selling season?

Real Estate Trends to Take Notice of in 2018
Of all the trends in real estate news to heed, these will be most influential to your sales success in the coming new year:

Online Marketing
Across the board, buyers and sellers are looking online first. Online sales and marketing are no passing trend, with those agencies with online branding dominating the realty arena, and those offering previously coveted inside information to everyday consumers leading the pack.

Social Networking
As with an online presence, marketing through today’s top social networks enables realtors to reach a far larger audience faster and with less hands-on effort. Providing information via casual online posts, photos, videos and links is now one of the ideal paths for marketing homes for all parties, from time-crunched agents to buyers and sellers.

Specialty Sales
Agents with a specialty genre will be center stage in the coming year, from those specializing in video listings to those showcasing luxury, ‘green’ and automated homes, and even agencies catering to Bitcoin purchases.

Home Automation
2018 will put home automation in the spotlight as technology becomes more affordable for the middle class – and more user friendly. Agents will need to stay ahead of the curve on this in order to put this technology to use to gain an edge over the competition.

Generation Z
Generation Z is entering the market, soon to snag the purchasing power of Gen-Y with yet to-be-determined habits.

What real estate news is on the radar for 2018? From trends and legislation to industry-leading tools and tech, stay at the forefront with PropertiesOnline.