THE REAL ESTATE BUYING ZONE

The V Tool

If a real estate opportunity was knocking, would you know it and would you open the door? In real estate, everyone is always trying to time their purchase to what they feel is the “Bottom of the market.” The problem with this theory is you don’t know you have hit the bottom till you are already on your way up. In a recent seminar I attended, the gentleman who was speaking is involved in doing real estate statistical analysis in Arizona. One of the points he made that really made sense to me is that prices going back up is the last sign we see that we have hit the bottom. There are many other market indicators that show we have hit a bottom before we begin to see house values raise.

In my 30 years of real estate experience, I have to tell you that I have never seen a better opportunity to buy real estate than right now. I really don’t expect you to take my word for it, though. Jim Weichert, owner and founder of WEICHERT, REALTORS® came up with a tool called the “V TOOL.” As you can see from the graphic, the V Tool has two lines, one indicating home prices and one indicating interest rates. To help put things into perspective, place a dot on the Price line where you think home prices were in 2005. Now put a dot on the Rate line also indicating where you think interest rates were in 2005. You will more than likely have a dot in the “High” area along the Price line and maybe Mid-Range or a little under on the “Rate” line. Now do the same things for prices and rates today. I believe you will end up with both dots pretty close to where the “V” comes together at the bottom. If you draw a circle around this area, we call this the “BUYING ZONE.”

Now take a minute and think into the future and put dots where you think prices and interest rates will be a year from now, maybe even 5 years from now. Is there any reason to believe that there will ever be a better buying opportunity than now?

In Arizona, we are currently seeing the inventory of available homes coming down. We are also seeing multiple offers on homes that are extremely well priced. Some of the outlying areas like Queen Creek, Florence, Maricopa, and cities on the west side of Phoenix are seeing the most activity and the best prices. Other areas of the Phoenix valley are seeing prices we have not seen in years. Homes are affordable again and prices are also right for investors to buy these homes and watch them appreciate.

So I ask the question again, do you hear opportunity knocking and are you ready to answer the knock? Wheather you are a first time homebuyer, a move up buyer or an investor, I hope you will take advantage of this market and buy IN THE ZONE.

The ABC’s of Real Estate

 

THE ABC’S OF REAL ESTATE – For years real estate trainers have taught agents to put buyers into 3 categories depending on their urgency. An “A” buyer was one who was ready, willing and able and wanted to buy right now. A “B” buyer was one who would be ready in the next 30 to 90 days. A “C” buyer was typically one who is 6 months to a year away from being able to purchase a home. All three are good leads, they just have to be treated differently. The key with all of these types of buyers is doing the activities to stay in touch with them so you will be their REALTOR® of choice when they are ready to buy.

There is also another rating system for REALTORS® that deals with the daily activities of an agent. Remember, activity begets activity, therefore if you are not out there doing activities everyday, you will see no activity come your way. Hey that rhymes!

Anyway, for agents there are 4 primary “A” activities that will actually make you money.

1. Working with a Buyer
2. Working with a Seller
3. Negotiating a contract
4. Prospecting and lead generation

In the “B” category you have some of the following activities:

1. Working on your systems
2. Marketing yourself and your listings
3. Tracking the timelines on your listings, contracts and escrows
4. Tracking your sales, expenses and market trends

Finally you have “C” activities that would include some of the following:

1. Learning to use the software and programs you need to use on a daily basis
2. Learn to use new software’s and programs that can increase your prospecting and sales activities
3. Work to obtain professional designations
4. Attend state, national and franchise conventions
5. Attend seminars and training classes on a regular basis

So there you have it, the ABC’s of real estate. I hope you will take these to heart and as you look at your calendar each week, make sure you have activities in all of the categories penciled in. Concentrate on the “A” activities because they are the ones that will make you money. By staying focused on these primary activities you will be making the best use of your time and your resources.