Monthly Archives: April 2015
Selling Real Estate To Millennials – Are You Prepared?
Irene Green, Head of Harcourts Academy, was fortunate enough to attend a workshop with Casey Wright in California recently, a bright young Millennial, speaking on the next generation of homeowners.
Some of the data he shared was extremely interesting. Casey’s statistics are US based. That said, the Millennial population globally is following a very similar path. Here is a visual summary of the highlights to keep in mind when selling real estate to millennials.
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Summary
- 31% of home buyers right now are Millennials
- 76% of all first home buyers are Millennials
- They move every 5 years compared to the average 10 years
- Their agent ratings have the highest levels of satisfaction
- They refer more often than any other generation
Millennials, or Gen Y, are currently aged between 14 and 34. Their activity is strong in real estate purchase, and soon to be just as active in sales, so as agents it’s important for us to to prepare, adapt and adjust how we do business to meet the needs of our Millennial clients.
Casey stressed the most important trait they will demand from us is authenticity. A trait that goes a long way no matter which generation you fall into. Casey mentioned that the younger generation hate to be sold to and will need to connect with the real people. They want to know the people behind the brand in order to trust us.
At the end of the day, Casey’s findings proved equally relevant for any real estate professional dealing with a range of clients, so it makes sense to adopt at least some of these practises and really think about modernising our approach as agents.
So here are the rules:
1. Build trust through absolute honesty
Talk about the good and the bad. Admit when you don’t know something, don’t be afraid to be ‘real’. Provide advice that benefits them, not you.
2. Explain why
Most agents focus on what they do and how they do it. To really engage a Millennial client, explain why you do what you do to build trust and understanding.
3. Don’t call them on the phone
Email them or text them to ask for a good time to call. Millennials prefer interactions on their terms, when it’s convenient to them.
4. You can’t always match wants to property features
Sometimes it seems as though the Millennial generation aren’t always sure what they are looking for when it comes to property features. That’s why it’s so important for us to ask a lot more questions to find out the lifestyle they seek and why. Then we’re able to match our clients with the property that will meet their lifestyle.
5. Do not advertise property on Facebook
Do it once and every Millennial will block you. Instead provide information that is of value with photos and graphics. Be the go-to expert on real estate.
6. Educate them
Decades ago, the great dream was to own your own home. Today, that’s not always the case. Some commentators are making a case for renting well into our retirement years, and young people are settling down later in life. So we need to educate our Millennial clients on the benefits of owning a property rather than renting long-term. And that goes for educating our clients on finance as well. Some younger clients may not know the ins and outs of qualifying for a home loan. Go that extra step on explaining and demystifying the experience for them.
7. Involve them
Millennials love to feel included so invite them to help. With anything from, writing ads, assisting with photography, and discussing their favourite rooms. Ask them to list and send to you the ten things they want from their real estate agent. Involve
them in the process and always explain why.
Moving forward I believe as agents we need to get better at marketing our real selves, at connecting in an authentic way and communicating more by text and email. I am looking forward to working with the Casey Wrights of the world and the best idea is to ensure we have one or two Millennials on our team to help us along the way.
Buying Property To Renovate And Sell For A Profit
Have you been considering buying a property to renovate and then sell for profit? Sometimes it can be tricky to know where to start. There are a lot of considerations, from where to buy, to proper budgeting and ensuring you’re up-to-date with any restrictions and compliance.
Here, we take you through the first steps to help you buy, renovate and sell for a profit.
Scope your location
As is the case with buying any type of property, deciding on the right location is usually your first step towards finding the right property.
However, the location of a property you’re buying to rent, to live or to sell can vary greatly.
When it comes to buying a property to renovate and sell, there are a couple of considerations. Primarily, you’re looking for a location that has steadily been increasing in value, or one that shows signs of increasing in value in the very near future.
Some key things to look for:
Investment in infrastructure
Are new shopping centres, entertainment, or recreational centres popping up in the neighbourhood? This can be a sign of investor confidence, and in population growth which could indicate the area is becoming more popular.
New transport facilities
New bus terminals or train lines are a great indication of recent population growth, as investment in major public transportation usually occurs to support or attract a growing population.
Some areas increase in value quite substantially when new public transport facilities reduce the time it takes commuters to get into metro areas.
Quality schools and childcare
Families are willing to move and pay top dollar to be within the catchment areas of quality public schools and childcare facilities. Several Australian news articles ran recently stating some parents were willing to pay a premium on a home if it meant their children could attend the best local public schools.
Decide how long you’ll hold the property while you renovate and sell for a profit
If your plan is to renovate and sell the property, then the question becomes, “How long do we hold it for?” The answer really depends on your local market. So do your research.
When looking for properties, ask real estate agents about the local market and how it’s been tracking over the last few years and their thoughts on what’s contributed to any increases in property values.
Go online and check out any data you can find on your desired locations. There are lots of sites out there that now provide sales history on properties for free.
If you’re buying a home that requires a lot of work, but is in a great area, it might make sense to sell as quickly as possible after renovating, especially when considering holding costs.
If you buy in an ‘up and coming’ area, it may mean you need to factor into your budget the time it takes for the area to increase in value.
Understand any government restrictions and compliance
Once you’ve found and bought the perfect property, the next thing to do before you even consider possible renovations is to get familiar with any codes, restrictions and compliance involved in renovating the property.
Most government websites will have sections dedicated to information on building restrictions, so make sure your plans comply.
Plan your costs
Like any renovation, costs can blow-out really quickly. That’s why it makes sense to budget not only for the cost of the purchase and renovation costs, but any potential holding costs and any costs which may be unforseen. A good rule of thumb is to budget 20 percent more than you believe the renovation will cost.
Decide to do it yourself or employ contractors
Doing a lot of the work yourself will certainly save money initially, but make sure it’s something you can realistically take on. If it’s something you’re not confident you’ll be able to complete to a high standard or on time, it will only cost you more when you need to hire a professional to come in and redo the work.
The best scenario is one where you break tasks into those you’re positive you’re able to do yourself and those best left to the professionals.
Note also that some things need to be left to the professionals by law, like any electrical work for example, so make sure you’re across these restrictions before starting.
Lots of risk goes into buying a house to renovate and sell for a profit, but with careful planning, research, and budgeting, it can also come with some pretty great rewards.
Managing Your Finances On A Fluctuating Income
As a real estate agent, you have the luxury of determining your own income. While the sky is the limit, unforeseen events or a change in the housing market has the potential to leave you short. Implementing a few tactics to effectively budget and manage your finances can help ensure your chance of success in bad times as well as good. The key lies in knowing how to balance a fluctuating income while managing your finances. Here are our tips to get you started.
1. Create a personal budget
If you haven’t already, a great place to start is to set-up a stringent personal budget. There are plenty of handy online budgeting tools, or you could use a simple Microsoft Excel spreadsheet. Since your income as a real estate agent varies from month to month, your budget needs to be flexible. Begin by listing your itemised fluctuating income opposite your itemised expenses. If you can, use your worst month from 2014 as a conservative estimate of your monthly income and expenditure. Or, consider crafting two separate budgets – one for the solid months and one for the leaner months. Be conservative in your income expectations and be careful not to leave out any expenses. Refer to old bank statements regularly to ensure you are calculating realistic figures. From here, it’s simply a matter of balancing spending with the money you’ve got coming in. Having a well-thought out budgeting structure with plans to reduce debt will help you make smart business decisions without feeling a tremendous pressure to make money.
2. Have back-up funds in place
If you don’t already have one, an emergency fund is essential to cover you should something unexpected arise. This will also keep you from racking up credit card debt if you’re unable to cover all your monthly expenses. With a solid emergency fund, you can still comfortably cover rent, utilities and groceries while working to bring in more money.
Most experts recommend keeping at least six months worth of living expenses in your emergency fund. When you receive a big commission, bulk up your emergency fund before you start spending!
Consider an additional savings account of around 10-15 percent of your income for advertising, business cards and other personal marketing expenses. The old adage is, you need to spend money to make money. Even when money is tight you need to spend money on personal marketing so that you maintain an income pipeline. You should also consider adding education into your budget to attend local or nationwide conventions, courses or our own Harcourts Academy training courses and Annual Conferences and events.
3. Don’t over-do it
You want to make an impression on people, so they will want to call you the next time they buy or sell. But you don’t want to spend more than you have to, to do it. When it comes to paying for essential items such as client gifts, business cards, or refreshing your wardrobe, shop smart. Franchisees can often take advantage of deals from preferred suppliers to help keep costs down.
Final thoughts on fluctuating income
The key to living well with a fluctuating income is discipline. Implement a monthly budget and stick to it. Don’t overspend when you’ve had a good month. Give your budget at least three to four months to work itself out. You will have a much better idea of how much you are really spending and where you are able to make adjustments to suit.
if you’re interested in exploring franchise opportunities with Harcourts!
The Harcourts Foundation achieves three million dollar milestone
The charitable arm of Harcourts real estate group, The Harcourts Foundation has surpassed $3 million in funds raised to support local non-profit community groups across the country and internationally.
The Harcourts Foundation was established by Harcourts in 2008. The foundation operates as a charity 100 per cent, with all funds raised going directly to non-profit organisations.
The Foundation is funded through Harcourts employees’ salary sacrifice, ‘off the top’ contributions from commissions and organised fundraisers.
There are currently more than 264 of Harcourts global offices participating in the Harcourts Foundation programme, donating a percentage of every property sale.
Harcourts Managing Director Mike Green says that in just a short time the Harcourts Foundation has touched the lives of thousands of people throughout Australia, and across the globe.
“Internationally, the Harcourts Foundation has made more than 500 grants to community groups, helping with everything from supporting programmes for women affected by violence, at-risk youth, children with disabilities and to help make communities safer.
“Our Harcourts businesses are wholly committed to making a positive difference to the communities where they operate and we’re incredibly proud of the work The Harcourts Foundation is doing,” says Mr Green.
Harcourts employees including a National Board of Directors, Coordinator, Accountant and Regional Ambassadors all donate their time and expertise to oversee and administer The Harcourts Foundation.
This year, The Harcourts Foundation will once again partner with White Ribbon Australia to support the charity’s Breaking the Silence schools campaign, which supports principals and teachers to embed models of respectful relationships in school culture. The programme aims to prevent the perpetration of violence against women and girls.
To support White Ribbon’s cause, Harcourts offices across the country will take part in the Walk a Mile in Their Shoes event being held in each state. The walk encourages both men and women to don a pair of heels and walk a mile in a show of solidarity for those affected by violence against women.
Visit www.mycause.com.au/events/walkamileintheirshoes to find out more about the event, including how to support and participate.
For more information about The Harcourts Foundation, including information on individual grants made and the grant application process, visit www.harcourtsfoundation.org.
The Harcourts Foundation achieves three million dollar milestone
The charitable arm of Harcourts real estate group, The Harcourts Foundation has surpassed $3 million in funds raised to support local non-profit community groups across the country and internationally.
The Harcourts Foundation was established by Harcourts in 2008. The foundation operates as a charity 100 per cent, with all funds raised going directly to non-profit organisations.
The Foundation is funded through Harcourts employees’ salary sacrifice, ‘off the top’ contributions from commissions and organised fundraisers.
There are currently more than 264 of Harcourts global offices participating in the Harcourts Foundation programme, donating a percentage of every property sale.
Harcourts Managing Director Mike Green says that in just a short time the Harcourts Foundation has touched the lives of thousands of people throughout Australia, and across the globe.
“Internationally, the Harcourts Foundation has made more than 500 grants to community groups, helping with everything from supporting programmes for women affected by violence, at-risk youth, children with disabilities and to help make communities safer.
“Our Harcourts businesses are wholly committed to making a positive difference to the communities where they operate and we’re incredibly proud of the work The Harcourts Foundation is doing,” says Mr Green.
Harcourts employees including a National Board of Directors, Coordinator, Accountant and Regional Ambassadors all donate their time and expertise to oversee and administer The Harcourts Foundation.
This year, The Harcourts Foundation will once again partner with White Ribbon Australia to support the charity’s Breaking the Silence schools campaign, which supports principals and teachers to embed models of respectful relationships in school culture. The programme aims to prevent the perpetration of violence against women and girls.
To support White Ribbon’s cause, Harcourts offices across the country will take part in the Walk a Mile in Their Shoes event being held in each state. The walk encourages both men and women to don a pair of heels and walk a mile in a show of solidarity for those affected by violence against women.
Visit mycause.com.au/events/walkamileintheirshoes to find out more about the event, including how to support and participate.
For more information about The Harcourts Foundation, including information on individual grants made and the grant application process, visit harcourtsfoundation.org.