Thoughts from Real Estate News

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1. When actions speak louder than words
Have you ever heard the phrase “you never get a second chance to make a good impression”? As any successful salesperson will tell you, the ability to accurately interpret your prospect’s body language is an essential aspect to making that sale.


Real estate champions understand the importance of non-verbal communication during the sales process and adapt their sales techniques depending on their interpretation of the situation.


Body language is the oldest and one of the best communication tools we have, yet so few of us ever fully develop the necessary skills to actually make sense of it! Do you present yourself in the best possible light when prospecting? With research indicating that over 80 per cent of every conversation is conveyed through non-verbal communication, it may be a good idea to take a check on how you present yourself to your client during your first meeting.

Here are a few pointers to get you started…

First impressions count!

Whether we like it or not, research shows that we decide whether or not we like somebody within the first few seconds of meeting them. This works both ways - a positive first impression is vital to winning the prospect over to you as well, so take the time to make eye contact and smile at your client. Handshakes should be firm, not overpowering or too limp.

Mirroring

Creating an instant rapport with your client can be achieved by ‘matching and mirroring’ your prospect’s body language. The process of mimicking their gestures is an unconscious way of informing them that you agree with what they are saying. It is important to ensure that your actions are in congruence with the words you are saying as there is often a discrepancy between the two. When in doubt, experts advise you to trust the non-verbal communication!

Many sales trainers believe that an agent can deliberately build trust and rapport by subtly matching a person’s body language during the first 10-15 minutes of an appointment. If you notice that your prospect is subconsciously matching your body language, then the chances are that you have developed a positive relationship and they are interested in what you have to say. Congratulations!

Reading the signs

There are two fundamental categories of body gestures; open/closed and forward/backward. When a prospect is receptive to your ideas, they will generally have their arms unfolded, legs uncrossed and their palms exposed. However, should they turn their body away from you or show closed gestures then you may need to rethink your communication strategy.

As a general rule, the following gestures can indicate these scenarios…

• Rubbing eyes – deceit
• Rolling eyes – dismissive gesture
• Rubbing nose – dislike of the topic
• Hand or fingers blocking mouth – deceit
• Stroking the chin – making a decision
• Leaning back and closed – lack of interest
• Leaning back and open – contemplation and cautious interest
• Leaning forward and closed – potentially aggressive
• Leaning forward and open – interest and agreement

It is important to remember that isolated body gestures should not be taken out of context, so try to look at the overall pattern of your prospect’s behaviour as opposed to individual actions.

Non-verbal communication has a much greater impact and reliability than the spoken word; the ability to ‘listen with your eyes’ is a critical aspect of prospecting. If you can recognise when a prospect is interested, you can begin to make headway in closing the deal with them at the appropriate moment without applying too much “pressure”.

2. There’s no ‘I’ in team: or is there?
Effective teamwork is a vital component of building a successful real estate business, yet without individual characters and their varying personalities there would be no team! Does that sound confusing?

Unfortunately, team orientation can often come at the expense of the individual. In a collectivist, team-orientated company, people tend to be less adventurous; that is, they are less likely to deviate in directions that lead to innovation and creativity.

Without vivid and unique ‘I’s a team is flat, uniform and stereotyped. Does this sound like the type of team that you want to build? Of course not! A team without desire, passion and jealousy isn’t a team that is going to get results.
When putting a team together, it is important to remember to include a mix of very different characters – then resist the urge to suppress their individuality, but instead harness it to achieve collective goals!

During team development exercises we are taught to think and act as a team and work together to win, and if everybody plays their role as defined, the team will reach their desired aim. Conflict over issues within a team is not a bad thing; in fact, energetic discussions about issues are healthy when handled in the appropriate manner! It can also help to create understanding and confidence in the product or project, when objections are handled constructively.

So what factors do you need to take into consideration next time you are developing a team? Here are a few thoughts that you may want to take into account…

1.Does each member know the mechanics behind working as a team? Too few team members understand the dynamics needed to make a team function – it is a skill that needs to be learned and not left to chance. Individuals need to recognise that the strength of each individual is the key to success!

2.Are team members clear about their roles within the group? They should be assigned to tasks dependent on their skills. If they aren’t clear about the contribution that they bring to the group, their self-worth will be in doubt, which will in turn cause resentment towards other members.

3.Will the team member contribute effectively to the team? It is important for workers to uphold their share of what needs to be accomplished. Although it is important for members to retain their sense of individuality, the team needs to reach its goal.

4.Will each team member share responsibility when the chips are down? Make sure that you build a team that doesn’t adopt a blame culture and each person is accountable for their own activities. If a team member is not giving 100 per cent then they must be culpable for some of the problems.

Good teams, in whatever sphere of life, require a wide range of qualities that are in creative tension to function. The basic building blocks of a team are comprised of individual personalities – you can spell team with an ‘I’!

3. Virtually Yours – Is it time to hire a PREVA?

Wouldn’t it be great if you could have an assistant whenever you need one? Well, now you can! The dramatic rise in the use of the Internet since the 1990s has paved the way for the rise in the use of ‘personal real estate virtual assistants’ or ‘PREVAs’, who are outsourced and usually work off-site.

The Internet has enabled real estate agents to bypass much of the routine administrative tasks that they have no time to complete by enlisting the services of VA’s who are experienced in providing support to the industry.

A VA can be selected and hired on a project-by-project basis, by the hour or by task. It is completely up to your own need! Most are competent enough to perform a variety of tasks from general administration, making listing presentations, scheduling appointments and chasing up sales leads.

Why hire a VA?
Although the role of the VA is similar to taking on a temp, they are generally considered to be more entrepreneurial as they are self-employed, bill only the hours worked or by tasks completed, and are dependent on referrals and steady work flow.

Hiring a VA means that you get all the benefits of outsourcing – no equipment and rental costs, no insurance to cover for, no sick pay, vacations or other budget draining items to cover for.

If you know what you are willing to pay for the services of a VA, then their location is not a problem! You have the option of shopping around for VA’s located in areas where wages are more reasonable to keep the costs down.

Is it practical?
Hiring a virtual assistant is becoming a popular practice for real estate professionals who do not have the time to perform routine tasks. For an hourly fee of anywhere between $22 to $40 - less than the cost of temps or employees - agents can take advantage of professional assistance as and when they need it. VA’s are already well versed with computers, and can assist with your specific needs from traditional office support services to other areas such as web design.

Even if your VA resides on the other side of the state, all of the necessary technology is available these days to communicate with them as if they were in the next room. Work assignments can be delegated via e-mail, phone, fax or web-based tools like instant messenger.

How can I find a VA?
The Internet provides a wealth of information about VA’s. By simply entering ‘virtual assistant’ in your favourite search engine, you will find literally hundreds of sites dedicated to providing the services of a VA. These sites often contain searchable databases by industry, location, experience, skills and price so that you are able to find a suitable assistant reasonably quickly.

When you have found a VA that matches your requirements, it is considered good practice to contact them via email. After all – that is their world!


4. Phishy business
The incidence of online identity theft has climbed steadily over recent months and is proving to be a headache for financial institutions and online retailers as they struggle to curb the number of criminals coveting personal information and online account details from their customers.

The latest statistics are scary: there are approximately 81,000 known computer viruses and 500 new viruses detected each month. Over two billion spam email messages are posted each day, and 27 per cent of these have a hidden Customer ID to determine if they have been opened.
‘Phishing’ is a popular strategy devised by thieves to fool people into revealing passwords and other sensitive information by posing as a legitimate source such as a reputable bank.

The dynamic nature of e-crimes has meant that technology companies have needed to introduce a number of products and services onto the market aimed at significantly reducing the number of online threats. While these have been somewhat effective, identity theft still continues to be a problem, especially for the computer novice.

The good news is that many of these threats can be avoided by being vigilant and using the appropriate security software. Here is some practical advice that you can follow to help you protect yourself against identity theft!

Do not open or respond to unsolicited emails
You have probably already been the unsuspecting recipient of one of these ‘phishy’ emails that require you to provide personal information or passwords. They often use scare tactics to alarm you into responding. Remember – if in doubt, do not click the link on the email!

Look for the security padlock
You know when you’re in the secure part of a website as a small padlock appears in the bottom right hand corner of your web browser. This means that any personal information that you have entered cannot be seen by hackers.

Beware of ‘pharming’
This is one of the latest versions of online ID theft, whereby a virus or malicious program is secretly planted on your computer and hijacks your web browser. When you type in the address of a legitimate website, you’re taken to a fake copy of the site without realising it. Any personal information you provide at the phony site, such as your password or account number, can be stolen and fraudulently used. Once again, the best defense is to look for the security icon.

Protect your PC
Make sure that your PC is updated with all of the latest anti-spyware software, a firewall and spam filters. A firewall will prevent hackers and unauthorised communications from entering your computer, and spam filters will help to reduce the number of phishing emails that you get.

Passwords
You know that little box that pops up and asks if you want your computer to remember certain user names and passwords? Don’t tick it! Most passwords are stored on a Windows 95/98/ME system and even the most half-baked would-be hacker knows what it is. If you are not using a firewall it is pretty easy for these people to steal your password file and attempt to crack it at their leisure.

It is worth also noting that the best passwords often include a combination of letters and numbers – none of which have any resemblance to your name.


5. Industry News

Property market to remain strong despite reduction in first home owners grant
Last weekend's auction clearance rates remained strong with first-time buyers rushing to take advantage of the last week of the first home owners grant, despite a drop in volume numbers due to the AFL Grand Final.

But despite the drop in value of the grants, Australian Property Monitors senior economist Matthew Bell says the recent growth in the market will not be deterred.

"If you look at last weekend's rates, before this most recent one, it was very strong in terms of numbers. In Sydney we had the most amount of houses up for auction we've ever had, and we had great clearance rates, so although there is some movement of getting in for the last bit of the grants the market is still holding up well."

But Bell says despite the strength of the market, the disappearance of the first home owners grant next week and again after 31 December will have an impact in the market.

"The general view is that there is going to be a drop off in demand due to the grant expiring, but I don't think that's going to transfer to a big drop in prices across the board. Investors are coming back into the market, and I think that will fill some of the gap in terms of demand."

"I think we will see some flattening in prices, but I don't think we'll see any of the catastrophic drops that people used to predict when people talked about the grants when they first came in."

In Melbourne, auction results were solid despite only 135 properties reported for sale due to the Grand Final. Of those 113 were sold resulting in a clearance rate of 86%.

"The auction market picks up again next weekend with 500 homes going under the hammer and nearly 700 the weekend after," Real Estate Institute of Victoria chief executive Enzo Raimondo said in a statement.

In Sydney, 470 properties were put up for auction with 342 sold and 37 withdrawn resulting in a 67% clearance rate. Total sales reached $253 million.

In Brisbane, 30 properties went up for auction with a clearance rate of 67%, and total sales reaching $10 million. In Adelaide, only five properties went up for the auction, resulting in a clearance rate of 60% and sales worth $1.2 million..

Source www.smartcompany.com.au


Home sales surge; Resilient financial system
• The Housing Industry Association has reported that new home sales rose by a staggering 11.4 per cent in August to a 19-month high.
• Detached home sales rose by a considerable 11.8 per cent while apartment sales increased by 7.5 per cent across Australia. Detached home sales were mixed across the states, up by over 20 per cent in Victoria and Queensland however lower by over 11 per cent in NSW.
• The Reserve Bank has indicated that the strong state of household balance sheets has helped consumers weather the global financial crisis.
• The Reserve Bank has highlighted the success of listed companies in raising equity finance. Equity raisings in the first half of 2009 was equivalent to 6 per cent of GDP – double the average over the past 15 years.

Source CommSec

First Home Buyers Grant ends

THE END OF THE CURRENT FIRST HOME OWNERS GRANT CURRENT SCHEME HELPS

AGENTS TO ENJOY 100% AUCTION CLEARANCES !

The first home owners grant combined with low interest rates has helped Sydney and Melbourne enjoy bumper auction activity, with clearance rates riding high, week out.

Lori Collins, principal of Harcourts HomeZone Annerley and West End, has excelled in the curent market, hitting a 100 per cent clearance rate this month selling just under $5 million in property.

Ms Collins told Real Estate Business the housing market was currently enjoying stellar results thanks to a final push from first home buyers.

“The past quarter was brilliant, but I think the next quarter is poised to be even better. There is a lot of pent up demand in the market at the moment. The problem will now be finding the stock to cope with the demand,” she said.

Ms Collins attributes her personal success to her rigorous marketing and refusal to talk price.

“When marketing a property I always advise my clients never to talk price. They should not discuss price expectations with family, friends or neighbours because as soon as they do – they effectively put a price cap on their property,” she said.

Ms Collins said she advises her clients to let the market decide the value of a property.

“My client’s house may be close to facilities, in a great suburb or be freshly renovated, all of which would significantly add to its value. In my experience, properties tend to sell for more when there are no price expectations associated with them,” she said.

“If you trust the process, the process delivers and the process is marketing without a price.”

Another marketing strategy Ms Collins implements is auction day communications to prospective buyers.

“I always send an auction email alert to my database on the day of an auction. Similarly, I also advertise the property in the local press on the day of the auction. I like to hold my auctions late in the day so that the advertising can reach the greatest amount of people,” Ms Collins said.

“Agents should not slack off on the day of an auction. I run the same add from week one to week four.”

First Home Buyers make way for investors

Tuesday, 29 September 2009

Investor activity is ramping up, with Aussie Home Loans recording a 32 per cent increase in the number of investor enquiries via their website. Aussie founder and executive chairman Mr John Symond said as of Thursday the $14,000 grant for established homes is reduced to $10,500, and from $21,000 down to $14,000 for new homes. “Investors have been patiently waiting on the sidelines to see what happens after the First Home Owner’s Grant is reduced,” Mr Symond said. “There has been a price bubble created in some areas as first home buyers have paid over the odds for their properties. For investors in that same price range, it has been prudent to sit back and wait for the grant to be reduced.” Mr Symond said a number of factors had come into play making it a good time to enter the property investment market. “Increased consumer confidence, high rental yields and a continued shortage of housing is pointing to a “perfect storm” of conditions for property investors,” he said.

Reserve Bank and Interest Payments

RBA Board minutes; Reserve Bank patiently sits on the sidelines report

• Reserve Bank Board members agreed on “a wait and see” policy at the last interest rate meeting, noting the significant improvement in economic conditions in domestic and global economies and allowing market interest rates to price in rate hikes.
• There are two key factors holding the Reserve Bank from raising interest rates. The bank is still unsure about the sustainability of the recovery and is also concerned about the health of business balance sheets.
• Board members noted the “strong macro stimulus” and the strength in the Asian region has provided a considerable support to the Australian economy adding to concerns over the already relatively high levels of underlying inflation.
• Australia’s chief commodity forecaster, ABARE, expects Australian winter crop production to have increased by 3.4 per cent to 36 million tonnes. Forecasts for Australia’s 2009/10 wheat crop is expected to rise by 3.4 per cent to 22.7Mt.

What does it all mean?
• It is pretty clear from the minutes of the latest Reserve Bank Board meeting that the Board believes that the best approach is to hold off on any rate hikes until more concrete economic data is available in coming months. The Reserve Bank Board has confirmed that the Australian economy is on a recovery path with the “strong macro stimulus” and the strength in the Asian region supporting the Australian economy.

The Reserve Bank Board is in “wait and see mode” on interest rates. Board members are still not convinced that the economy can stand on its own two feet. The Board also believes that further repair work is necessary on bank and private company balance sheets. However a quiet confidence is perceived in the Board minutes with members noting that domestic economic conditions continued to evolve in line with bank forecasts. And as the risks to the global and domestic economy diminish, the board will no doubt become more relaxed about raising interest rates.

In particular members focused on the strength in the Asian economies in particular China. The pickup in car sales in China and increasing export volumes throughout the Asian region bodes well for the longer term fundamentals for the Australian economy. Importantly Board members believed that the Chinese economy would continue to record solid growth outcomes in the longer term.

•The Board clearly believed that with interest rates at 49 years lows and significant fiscal stimulus currently been undertaken, it was having an expansionary effect on the Australian economy. However with fiscal stimulus waning, the Board is likely to keep the monetary stimulus in place until the recovery gets a strong foothold. As a result the Reserve Bank decided the more prudent course was to keep rates on hold at the last meeting.
• Certainly the relatively high underlying measures of inflation, coupled with the stronger level of domestic economic activity will be a key concern going forward, and the likely barometer for the timing of rate hikes. The Board noted that the rise in market interest rates had effectively done part of its job already, adding to the borrowing costs for business and mortgage holders and restraining the momentum of the economy.
• At this stage the Reserve Bank looks likely to keep rates on hold in upcoming months. However CommSec is not ruling out the possibility of the first rate hike of 25 basis points taking place in December.
• The rural sector certainly did its part in ensuring that the Australian economy avoided a recession and will play a significant part in supporting the economy until the recovery gains a strong foothold. ABARE has revised up forecasts for Australia’s winter crop production by 3.4 per cent to 36 million tonnes.
• The one major risk to forecasts is the possibility of not enough healthy rain, especially in Queensland and Northern NSW. Already the lack of winter rains has had a critical effect on crop production. However improvement in weather patterns in Western Australia has helped to support the upgraded crop estimates. The combination of higher production, favourable prices will be offset by a stronger Australian dollar.

What do the figures show?
• The Australian Bureau of Agricultural and Resource Economics (ABARE) expects Australian winter crop production to have increased by 3.4 per cent to 36 million tonnes on a year ago.
• Forecasts for Australia’s 2009/10 wheat crop are expected to rise by 3.4 per cent to 22.7Mt. ABARE did note that the winter rainfall was below average in Queensland and Northern NSW, however widespread rainfall over the first week of Spring has provided a degree of improvement for crop production However further good rain is needed. Western Australian crop production is expected to fare better above average spring rainfall expected.
• Barley production is tipped to rise from 7.7Mt over 2009-10 to 7.9Mt. Canola crop production is estimated to hold steady at 1.7 million tonnes in 2009-10. Sorghum production will fall 4.6pct in the year to 1.85 million tonnes, while cotton seed production will fall 12 per cent to 531,000 tons in 2010.
Minutes from the May Reserve Bank Board meeting
Key Comments:
• “Members were briefed on the recent data for the Chinese economy, which had been somewhat mixed. Car sales had risen very sharply and export volumes had also been growing, including recently to the United States and Europe.”… “Overall, members observed that some slowing in the Chinese economy relative to the rapid pace in the June quarter had been inevitable but that the longer-term prospects were strong”
• “Of most significance to Australia, the Asian region had recorded strong growth in the June quarter. While this had been largely driven by domestic demand in these economies, reflecting strong economic stimulus, there were also recent signs of a pick-up in their exports...”
• “Outside Asia, most economies had experienced another fall in GDP in the June quarter, though more recent information suggested that the majority of these economies were now approaching a turning point.”
• “The US economy was expected to grow in the September quarter, after contracting by 4 per cent over the previous year”
• “In relation to housing markets, members observed that in countries that had experienced better economic outcomes and/or fewer financial sector problems (e.g. China, Canada, Norway and Australia), house prices now appeared to be rising quite solidly and were above or around earlier peaks. Even in the US and UK, which had earlier experienced significant falls in house prices, there had been some up-ticks recently”
• Retail sales: “Measures of sentiment had continued to strengthen. Consumer sentiment had risen sharply over the three months to August. Liaison with retailers suggested that household spending had softened somewhat in July but had been better in August.”
• Business investment: “The data for business investment in the June quarter indicated a strong rise in spending on plant and equipment, with a sharp increase in spending on a wide range of capital goods, including cars. However, this mostly reflected the bringing forward of spending to qualify for tax allowances. Car sales had subsequently fallen in July.”
• Exports: “The data for June quarter export volumes showed most categories were growing or holding up reasonably well. Manufacturing exports were the exception, and had fallen broadly in line with the falls seen in many other countries. On average, commodity prices had been broadly steady since the last meeting.”
• Financial markets: “There were some favourable signs in the Australian residential mortgage-backed securities market. The gap between secondary market yields and primary market yields was continuing to close, such that the prospect of issuance without the support of the Australian Office of Financial Management was increasing.”
• “Turning to banks’ funding, members noted that there had been a continuation of the strong competition for deposits. Together with an increase in term interest rates, which were rising because of expectations of monetary tightening, this was contributing to an increase in bank funding costs.”
• Outlook: “An important question for members was whether the global economic improvement would be sustained, or whether it was mainly a reflection of the strong macroeconomic stimulus that had been applied over the past year and might in due course fade. Members were also conscious that, even though financial market conditions had improved significantly and debt markets were beginning to function again, banks, corporates and households in many countries still faced significant balance sheet adjustments.”
• Policy decision: “As at the previous meeting, members noted that the policy decision in the near term involved balancing the risk of over staying an accommodative stance, and that of prematurely tightening and adversely affecting confidence and demand. The meeting concluded that the balance was best struck by leaving the cash rate unchanged for the time being, pending further evaluation of incoming information at future meetings.”

What is the importance of the economic data?
• The Reserve Bank releases minutes of its monthly Board meeting a fortnight after the event. The minutes give a guide to Reserve Bank thinking on interest rate settings.
• The Australian Bureau of Agricultural and Resource Economics (ABARE) release its Crop Report each quarter. The latest estimates on winter and summer crops assists investors in assessing conditions for the rural and resources sector and companies leveraged to these industries
What are the implications for interest rates and investors?
• CommSec is pencilling in the first rate hike within the first quarter of 2010. With longer term interest rates and funding costs for banks rising the Reserve Bank is more likely to hold of on any rate hikes and allow the market to price in higher cash rates.
• However if the domestic economy continues along the current recovery path a rate hike in December cannot be ruled out.

Source Savanth Sebastian, Economist, CommSec