The Fundamentals of the Three Kinds of Real Estate Markets

If you’re a first-time home buyer and you want to purchase a property from the available Boca Raton homes for sale, you must be aware of the three types of real estate markets. This is very important as the process of home ownership is quite complex and you need a plan to succeed in it; different markets require different strategies, which makes it essential for you to be aware of the differences of these marketplaces to know what you have to do to get that home you want.

Buyer’s Market

A buyer’s real estate market, also referred to as a cold market, is where there are a lot of buyers and only a few properties put up for sale. If you’re buying in this kind of marketplace, then you’re in an advantage since you will have a lot of choices and many sellers often take any offers into consideration. You may even buy a house lower than the list price and some sellers may possibly finance your closing costs.

To make sure that you’re in a buyer’s real estate market, you need to look for these signs:

– The houses in the inventory have stayed in the market for over six months.
– The number of homes of sale is higher than the preceding months or years.
– A smaller number of buyers are present, so the closed sale numbers are also lower.
– The comparable sale prices are much higher compared to the prices indicated in the active listing.
– The ads for real estate are growing bigger.
– There is a drop in the median sales price.
– The “For Sale” signs put up in properties stay longer, so the days on market or DOM is also longer.

Seller’s Market

In a seller’s market, also known as a hot market, there is a large number of buyers while there are only some houses available for sale. Sellers are generally at an advantage in this kind of market since they receive multiple offers. You will have a lot of competition if you’re planning on buying here, so you must be prepared to make your best purchase offer.

It is hard to enter in this competition where you may have a lot of competitors for the house you want; sellers don’t just consider any offer and bad ones are quickly rejected. They may even ask for some of your rights as a buyer to be waived. Because of this, you should seriously make a strategy that would make you win. However, if you are not that serious about purchasing that home, then it’s not wise to compete with others.

The following are the signs you need to look out for to determine if you are in a seller’s real estate market:

– The homes in the inventory have stayed in the marketplace for less than six months.
– The number of properties available is a lot smaller than the preceding months or years.
– Many buyers are present, so the number of closed sales is higher.
– The comparable sales price are much lower compared to the prices in the active listing.
– The ads for real estate are becoming smaller.
– There is a rise in the median sales price.
– The “For Sale” signs set up in houses stay only for a while and then immediately get a “Sold” or “Pending” sign attached to it.

Neutral Market

This type of real estate market is stable and normal, meaning it does not experience unpredictable swings. Here, the sellers and buyers are practically equal and the rates of interest are reasonably priced in general.

Purchasing a property in Boca Raton real estate is not very easy. You must first do some research and plan on what you should do. Understanding these three types of marketplaces is very important to help you succeed in buying the perfect home for you.

A Product Called You: 4 Ways To Stand Out For Real Estate Agents

Have you heard of ‘A2’ Milk?

Well last night anyone watching Seven’s Today Tonight Show will have.

This milk ‘product’ has broken away from the pack, it’s different and it’s getting a lot of attention (not to mention sales of ‘A2’ are booming).

‘A2’ Milk offers a really cool lesson for all would be TOP 5% REAL ESTATE AGENTS.

Here’s what we can learn from this…

Firstly, you’ve got to see your personal-brand as a product.

When you look at yourself in this way, the immediate realisation should be, hey if I’m a product so is every other real estate agent. And that’s either a good thing or bad thing in terms of you standing out and being noticed by your marketplace.

It’s a bad thing if ‘product-you’ is perceived by your marketplace to be no different than all the other ‘agent products’ out there.

It’s good, no, it’s spectacularly great if ‘product-you’ is perceived by your marketplace to be different and not only different but actually delivers them a better solution than the others.

So how can you become the ‘A2’ of your real estate marketplace?

Well, let’s take a few queues from the new milk success story, ‘A2’:

#1 – An Unfamiliar Name: The first clever thing about ‘A2’ from a positioning sense is its name, that is, ‘A2’ milk. It’s unfamiliar. Now I know I’ve said in my book and elsewhere that the ‘familiar’ win, and that’s true. But when it comes to a name or a label, often the use of an ‘unfamiliar’ in the description of something that is generally very familiar (e.g. milk) helps it to stand out. It ‘interrupts’ your thinking – when you see it for the first time you say, “What’s ‘A2’?”. That’s the first step in engaging someone.

How can you incorporate something interesting and a little unfamiliar to grab people’s attention?

HOT TIP: Here’s one way, change the term “Free Appraisal” which is very familiar and boring, you can do that by adding in an adjective. If you do, you better make sure you are offering something different to all the other agents who offer “Free Appraisals”. You’ll create more problems for yourself if you get people all hot and excited about your offer when they discover it’s the same old thing all other agents are doing.

#2 – Story: There’s a story behind ‘A2’ milk and it’s a pretty interesting one. As it turns out there’s this protein in some milk that originates from only some cows. ‘A2’ cows in fact. This protein is really good for you apparently. And to find the right cows that produce the ‘A2’ protein milk, cows undergo a DNA test, that’s right, all very CSI, haha. It’s this story that delivers on the promise of the ‘unfamiliar name’. The story engages the consumer. Tells them it really is different than all the other milk brands on offer.

What’s your unique story that makes you different from all the other agents?

HOT TIP: Come up with a 10 Point USP (‘unique selling proposition’). It doesn’t matter if several of your USP items are the same as others; you just need 3 or 4 that no one else is doing in your area, then claim them as your unique points of different and tell the world about it.

#3 – Controversy: A2′ milk stands out for another reason other than just the promise of a healthy protein. ‘A2’ have brought to our attention that the other protein that’s found in all other dairy milk products, that being ‘A1’ may be really bad for us. This is how they separate themselves from all other milk products. It’s controversial. It’s riled the likes of Dairy Australia, the peak industry body. They say the science is insufficient (and the consumers who buy ‘A2’ cynically think of course Dairy Australia would say that). ‘A2’ can’t lose. Doesn’t matter what their opposition throw at them, the more they try to undermine the ‘A2’ story, the more support ‘A2’ receives.

How can you be a little controversial?

HOT TIP: The easiest way is to know your ‘BIG Why’. When you know your ‘BIG Why’ it’s easy to make a stand for something. When you make a stand for something, there will be people in your marketplace that will support you and choose your side. That’s what we humans do. We like to choose the side we’re on.

WARNING: don’t be controversial just for the sake of standing out. That’ll back fire on you. You must only be controversial if it matches your ‘BIG Why’ and specifically your beliefs/cause/purpose/mission.

#4 – Consistency: ‘A2’ is going to great lengths via DNA testing to ensure the purity of their product. This aspect of their story alone is super powerful. In the minds of their consumers it provides certainty. They can feel confident that every bottle of ‘A2’ they buy has actually come from ‘A2’ cows. ‘A2’s consistent approach to testing creates certainty in the minds of their consumers and it’s this certainty that has built trust and loyalty.

How can you construct a system for doing what you do so that you’re consistent and so that your marketplace can feel confident you’ll deliver every time?

HOT TIP: Create your own ‘signature sales system’. It may well be auction. Or it could be private treaty. Doesn’t matter. Just break it down into steps. Explain what those steps are and help people see that your system is bullet proof and consistent.

The bottom line is, when you see yourself as a product, you can start packaging yourself up so that you stand out.

My final word on this is, and even though I’ve already said it, it’s worth reiterating… what ever you do follow your ‘BIG Why’ and be authentic with all of this.

Authentic agents win!

Seller Financed Real Estate Deals in Today’s Market Conditions

With stricter banking regulations because of fluctuating economic conditions and an unsteady real estate marketplace, real estate sellers today are carrying back private funding to make their property more salable. When an individual seller or broker finances a transaction out of pocket they are acting as the lender. This is beneficial to the process because the buyer doesn’t have to go through a rigorous approval process, which can prove to be very tedious because of the heightened banking standards today.

Over the past two years, the central bank has conducted several in-depth surveys of U.S. banks. The most recent survey of 55 U.S. banks’ current lending practices and standards revealed that the percentage of banks reporting tighter standards is near historic highs. One of these, found that about 75% of the banks surveyed indicated they had tightened their lending standards for prime, subprime and commercial mortgages. That was up from about 60% in the previous survey.

The Fed’s July survey covered 52 U.S. banks which hold about 80% of the residential mortgages on the books of all commercial banks. The Fed survey found that only seven of the banks said they were still participating in subprime mortgages, loans made to borrowers with weak credit histories. Of those seven, six said they had tightened lending standards on subprime loans with only one saying it had left standards basically unchanged.

Any experienced private lender recognizes this as an opportunity to salvage an unfavorable situation and turn it into a positive one. By utilizing seller financing, sellers can sometimes end up getting more money for their property and collecting interest on top of that. Seller financing can enable homeowners to receive the best selling price despite bad lending conditions. In addition, a home buyer with poor credit is able to become a home owner. It’s one of those rare situations where everyone at the negotiating table gets what they want!

Many real estate sellers never consider seller financing because they don’t understand the advantages or the process. There are also common misconceptions that it’s much too complicated to attempt to put together a seller financed deal, or that there are no buyers willing to sign a private loan. Not true! Once a seller takes the time to learn about the basic process and the advantages of offering private to sell their property, the benefits become very clear: bigger buyer pool, easy loan approval process, and a much quicker closing. Plus, a little education about seller financed loans will make it apparent that drafting a secured private loan is actually a very straightforward process.

The bottom line is seller financing can enable a real estate seller to get the best of both worlds: selling at the desired price, closing the deal quickly, and even receiving additional income from interest payments that the buyer makes.