Why List Your Home Now?

A lot of sellers are assuming they should wait until spring to list their homes. As you will see, this is a mistake.

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A lot of our agents are hearing their clients say, “I’ll just wait until after the holidays are over and catch the spring market next year.”

Here is the concern for those clients: year over year, when we look at our real estate market here in Southern California, we’ve got almost 20% less inventory across the board than we had this time last year. Generally, homes are selling over 20% faster than they were last year. Based on that, you’d expect prices to be going on a straight vertical climb. The reality, though, is that they’re only up 2%.

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If I’m a seller holding on to a property, I’m listing that property now.

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When we look at this trend and factor in interest rates being almost a full 0.75% lower, that means buyers have about 7.5% more purchasing power today than they did a year ago, and they’re only choosing to use 2.9% of that. This tells us that we may be right at the top of a market shift.

If I’m a seller holding on to a property that I want to get top dollar for, I’m listing that property now. Not tomorrow — right now. In fact, with our own personal portfolio of property, anything we don’t want to hold through another market cycle is either going on the market or has already been on the market.

If you have any questions about buying or selling, please feel free to get in touch with us. Just give me a call or send me an email, and I’d be happy to help you.

Why an Agent Can’t Be Over-Reliant on the MLS

Today I want to talk about how the MLS has changed in our real estate industry. Ten years ago, our value proposition was centered almost entirely on it.

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You may see what’s happening out there in the market, but I want to talk about a functional perspective of the MLS and how it’s changed our real estate industry.

Ten years ago, the value proposition of a real estate agent was basically just the MLS. We had access and everyone else didn’t. They had to go through us to get the info. That’s not the case anymore. The bar has been raised for what a great agent does. Now, I’m worried about agents who rely on the MLS as the cornerstone of their business.

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The bar has been raised for what a great agent does.

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In today’s fast-changing world, you’ve got to do what other agents aren’t willing to do to survive. This means knocking on doors, working your sphere of influence, and finding sellers before they know they’re sellers. That’s how you create the best opportunity for your buyers. You can’t rely on the MLS for that anymore.

If you have any questions, please feel free to drop me a line or shoot me an email.

Answering the Question of Why Do I Need a Real Estate Agent?

Not everyone will understand right away all the work we do on their transaction. A lot of professionals like to openly question why they should hire a real estate agent if they could just do everything online anyway.

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You’ve probably encountered this situation before.

You have a client come to an open house who is a professional, whether it be a lawyer, doctor, or accountant, and they say something like this: “You real estate agents sure make a lot of money. Why do I need to hire you if I can just use the internet and sites like Zillow to buy and sell homes?”

If you run into this situation, here’s what you have to do. You have to help them see it from a perspective that they can relate to. Let’s say the person asking you this question is a doctor. A good answer would be something like this. “As a physician, why would I need you? I can go to WebMD, figure out what kind of prescription I might need, go down to Mexico and get it, and medicate myself.”

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You’ve got to appeal to their professional side.

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Maybe it’s because there is a chance things could go wrong. Something bad could happen, and you could get really sick by trying to save a few bucks. Things can go wrong in the real estate transaction the same way. You might not get sick by not hiring an agent, but you could really get taken advantage of when buying or selling.

In order to win with a professional client, you need to establish yourself as a professional as well.

I hope this tip helps. If you have any questions for me, feel free to reach out and give me a call or shoot me an email. I hope to talk to you soon!

How to Protect Your Clients' Money From Wire Fraud

There is a new scam out there where hackers are watching your email while posing as real estate agents.

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Today, I want to talk about wire fraud and protecting your client’s money.

There is a new scam emerging out there where internet hackers are watching your email while posing as a real estate agent. They’re waiting for you to click on a certain link. You might see something come along one day from DocuSign, or your office, or another agent that you trust saying something along the lines of “Download this document,” or “Click here for more information,” or “Will you take this referral?”

Once you download this link, it will then ask you to sign into Google. What’s actually happening here when you “sign into” Google is that you’re giving away your username and password to these hackers. 

Initially, they don’t do anything with it. They just keep watching your email transactions, waiting patiently. The instant they see a set of wiring instructions, however, is when they strike. They take those wiring instructions and modify them to match their own banking information. They then send that information back to the escrow company, absconding with your client’s proceeds, earnest money, or sometimes even the bank’s proceeds. It’s a scary thing, and I’ve seen multiple escrow companies here in San Diego get hit to the tune of a million dollars each.

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Always verify attachment links that look fishy by calling the escrow company.

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So be aware, and be careful. Whenever you’re looking at an attachment that feels fishy, don’t hesitate to pick up the phone and call the escrow company. When your clients are sending wiring instructions or wiring money to the escrow company, talk to the escrow officer and confirm where they’re sending that money.

Hopefully, this helps you in your business. If you have any more questions, feel free to call us up or send an email.

What You Need to Know About DocuSign

One of my favorite tools to use in my business is DocuSign. When it came out, it meant I no longer had to carbon copy contracts, and that was a life-saver. It has saved us so much time and energy in not having to run back and forth to clients’ houses to get them to sign things. 

Because of the higher likelihood of fraud with DocuSign, it took our brokers a long time to accept it. Today I just want to make you aware of two things. One is a potential issue.

There is a group of attorneys who have made a cottage industry around unwinding transactions signed with DocuSign. Their argument is that since a client clicked on the DocuSign and signed the 10-to-20 page contract a few seconds later, they wouldn’t have time to read the whole thing before signing. They say since we know they didn’t read it and did nothing about it, we are liable for unwinding the transaction. The scary thing is that they are winning these lawsuits.

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This strategy comes straight from our legal counsel.

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So here’s how to avoid this problem. First, before you ever DocuSign something to a client, email them a set of pdfs outside of DocuSign. Ask them to review them thoroughly before signing the contract in DocuSign. Then give them some time, maybe an hour or two, to review the contracts. After that, you will get the DocuSign back and send them an email thanking them for signing it, and asking them to confirm that they read and fully understood everything they signed.

Those are the best practices, and they defend your business. It comes straight from our legal counsel here at KW. If you have any more questions for me, don’t hesitate to reach out. I’d love to be a resource for you and your career.

What Do Top Agents Do Consistently?

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As real estate agents, we have a lot of different tasks that we have to complete in order to go from the beginning to the end of a transaction. I’ve noticed one simple thing that my top agents do to make this process easier.

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Top agents have systems for everything.

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They create a system for anything that they have to do more than once. You can easily tell an agent’s production numbers by asking them what happens when they take a new listing.

A newer agent might rattle off a long list of processes that need to be completed. A more veteran agent would probably tell you that they drop the agreement on a coordinator’s desk and she then sends it on to the next person to schedule photoshoots, signage, and a pre-listing campaign, among other things.

The process is probably not always the exact same, but because they have a uniform plan, they can measure their performance back against their expectations.

The lesson is, what do you expect out of your business? Is your service standing up to your expectations?

If you have questions about this content, please reach out to me. I’d love to continue this conversation!

There Is One Key Difference Between Top Agents and Average Agents

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We have two of the top five agents in all of San Diego County in our office. What makes them different? What’s the difference between a $100 million producing agent and a $1 million producing agent? The answer is simple: it’s the way they think.

The $1 million agent gets to the office and focuses on whatever is in front of them, not what is most important. As the $1 million producer sees new ideas, strategies, and opportunities, they start to think, “Will this work? Can I do this?” They question their ability to perform at the next level.

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Top agents turn possibilities into reality.

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The $100 million producer asks fewer questions, however, the questions they do ask are better. Instead of asking if something can work for them or their market, they ask, “How can I make that work for me?” Then they find a way to implement the new idea quickly.

Top agents automatically know that things are possible for them. They just commit to turning possibilities into reality. They hear a great idea and they take action fast.

When you hear a great idea, you have 24 hours to take that next action step and implement the idea into your business. If you have any questions, give me a call or send me an email. The clock starts now!

How Are Appraisers Different than Real Estate Agents?

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Some of our clients confuse the roles of the real estate appraiser and the real estate agent. We will be clearing up those differences today, because they have two very different roles.

Once a buyer and a seller have agreed to the terms and the price of a home, the appraiser comes in and does a sort of ‘sanity check’. What we mean is that the appraiser makes sure that neither party is paying too little or too much for the home. They want to make sure that the deal makes sense, and that the home is not being overvalued.

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The appraiser comes in and does a sort of ‘sanity check’.

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Appraisers will look at similar homes in the neighborhood and see what they have sold for in the past. This is then used as a sort of measuring stick to ensure that the sale price is close to what it should be.

Real estate agents go a little further when they price homes because they look at comparables, but they also look at homes in competition with the one they are selling. Their goal is to set an appealing price for your home so that buyers will fight each other to purchase your home, and this slowly raises the sale price. If your agent managed to sell your home above the listed price, then they did a good job pricing it.

If you have any further questions, please don’t hesitate to contact me. I look forward to continuing this conversation with you!

Are You Prepared For the Impending Market Shift in San Diego?

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At the end of each quarter, the California Association of Realtors puts out a survey that tells us what percentage of people can afford to become homeowners of the average-priced home in each county in California. At the end of 2015, only about 24% of people in San Diego County can afford to buy the median priced home.

That’s not a huge cause for concern, as we saw this number hovering around 18% at the peak of the last cycle. Prices are up 2.5% so we’re seeing some nice appreciation, but it has leveled off a bit from the craziness of 2013-2014.

The big player for affordability is interest rates, and they’re still at historic lows.

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The big player for affordability is interest rates.

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We’re preparing our agents here at Keller Williams for an impending shift in the market. With affordability where it’s at, we know that all it will take is about a 1% change in interest rates to push us back to those bubble levels of 16-18% affordability. 

We know that the Federal Reserve’s goal is to raise rates. Usually to spur the economy the Fed would lower rates, but with rates as low as they are now, the Fed is out of tools.

Look for the Fed to raise rates, which will decrease affordability, which in turn will decrease demand, and increase inventory, and ultimately cause prices to suffer slightly. 

We never know how deep or dark a recession or economic downturn will be, but we do know our agents will be prepared. Our agents are getting prepared so they can thrive in the market we’re about to enter -- which we project to arrive in the next 18 months. 

Click the link below to set up a consultation or reach out to us today. We’d love to discuss what our agents are doing to prepare.

Is Your Business Handling the Hot San Diego Market?

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The real estate market we’re experiencing in San Diego is the best we’ve seen in a decade. Are you considering your business in the midst of this market?

Prices are up, homes are selling quickly, sellers are getting what they want, there are lots of buyers on the market, rates are low, and there are new agents joining the industry. Everything looks great.

What great agents know is that when things are great, and the wind is in your sails, you better make sure it’s your best year ever.

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You better make sure it’s your best year ever.

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I’d encourage you to look at your business. This is the best market we’ve been in for a decade - is your business the best it’s been in a decade?

If it is, that’s great. What are you doing to prepare for the shift in the market?

If your business isn’t the best it’s been in a decade, that’s a cause for concern. You want to look around and find out what other agents are doing. What are you missing out on? What opportunities could you be taking advantage of?

I’d be happy to share what our top agents are doing to make sure we’re maximizing the market we’re in today. Click on the link below or give us a call. I’d love to set up a consultation!

Good News in Carmel Valley

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Back in November 2015, we broke a threshold we’ve been pushing for years. We hit the one billion dollar mark! Our agents have listed and sold $1,041,758,014 worth of real estate, year to date. We couldn’t have done it without your support!

This is a testament to what we do in the area. We're an awesome resource for training, coaching, and technology systems. All three have given these agents the tools to succeed at the highest level. However, this is only the beginning!

If you’re interested in joining us with our two billion dollar push, give me a call or send me an email today!

Why Do Top Agents Spend More Time Searching for Talent than Prospecting for Listings?

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 A lot of top-producing agents spend most of their time finding top-tier talent to join their teams. But doesn't it seem counterproductive? Why spend time looking for employees instead of gaining leads?

Well, think of it like this. You can spend about ten hours lead-generating and cold-calling to find some listings. You'll probably sell one of those listings for $6,000 or $7,000, and you might get a referral and make another $6,000. That sounds good, doesn't it?

However, if you spend 10 hours finding a rock-solid addition to your team, you can probably sell 20 homes by hiring that individual. So, when they sell 20 homes and they make $100,000, you also receive $100K if you have a 50/50 split.

Top agents understand that people are your most appreciable asset. A great player on your team is worth many, many listings.

Recruit, Select, Train, Lead & Motivate! It's all about finding, hiring, identifying, training, and keeping highly motivated people. As always, if you have any questions for me, give me a call or send me an email. I would be happy to help you!

How to Handle Expired Listings in San Diego

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January 1st is expired listing day. It’s the single day of the year we can expect to have the most expired listings. It’s a great way to start off business in the new year. The good news about expired listings is that we know their scripts, but they don’t know ours. There are five common things an expired seller says:

• “I’m going to sell it myself.”
• “Where were you when my home was on the market?”
• “You’re 1 of 800 people calling me, why are you all bugging me?”
• “I’m going to re-list my property with my agent.”
• “We’re not moving.”

If you know how to respond to these rejections, you can master expired listings. Reach out to me if you’re interested in learning how to combat these responses! Give me a call today.

Rising Interest Rates in San Diego

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On December 18th, the Fed announced their first rate hike in nearly a decade. It’s going to take some time to affect long-term interest rates. However, we want our buyers and sellers to be conscious of one thing.

If rates today are at 4%, a .5% hike affects mortgage payments the same as a 10% jump in price. In San Diego, the median price for a single-family home was $702,000 last month. That means 10% of that would be $70,000! That’s $70,000 lost in purchasing power.

If you’re thinking about buying today, do it today before rates increase! Give me a call or send me an email today.