Posts by "Ed Pattermann" http://www.EdPattermann.com Ed is the Owner and Designated Broker of Windermere Real Estate in Prescott, Arizona. Ed is also an AAR Director for 2011. Prior to Real Estate, Ed had a very active and interesting career in Technology and the Internet.

Real estate market statistics are an important tool for REALTORS® as we work with our clients. Timely statistics presented in a meaningful way can help communicate the history of the market, current trends and the reality of what buyers and sellers are facing today.

We have many useful statistics generally available to us, most from our MLS, such as:

• Median Price
• Homes (Units) Sold
• Dollar Volume Sold
• Listing Count
• Months of Inventory
• Days on Market

Another source I use for statistics is the House Price Index (HPI) from the Federal Housing Finance Agency (www.FHFA.gov).

The HPI indicates the rate of appreciation or depreciation for single-family homes, compared with one year ago, and is updated each quarter. From FHFA.gov:

The HPI is a broad measure of the movement of single-family house prices.  The HPI is a weighted, repeat-sales index, meaning that it measures average price changes in repeat sales or refinancings on the same properties. This information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac since January 1975.

The HPI serves as a timely, accurate indicator of house price trends at various geographic levels.  Because of the breadth of the sample, it provides more information than is available in other house price indexes. It also provides housing economists with an improved analytical tool that is useful for estimating changes in the rates of mortgage defaults, prepayments and housing affordability in specific geographic areas.

Here is detailed information on how the HPI is calculated and a good FAQ on the HPI. FHFA also provides a calculator to use the HPI to determine the change in value on a home, based on where it is located, when it was bought and for how much.

FHFA updates the House Price Index each quarter for the entire United States–9 regions across the country, all 50 states and over 300 Metropolitan Statistics Area (MSAs). There are 6 MSAs in Arizona:

• Phoenix, Mesa and Glendale
• Tucson
• Prescott
• Lake Havasu City/Kingman
• Flagstaff
• Yuma

I have taken the HPI data for the 6 Arizona MSAs and generated charts of the data. All 6 charts are available on www.ArizonaHPI.com. I also created charts for Arizona and the U.S.

They are unbranded charts, and you may use them however you would like.

Below is an example of the HPI chart for the Prescott MSA. Each bar represents the HPI for that quarter. Its value represents the appreciation or depreciation compared with one year ago. So a Q1 2011 value of -9.8 means that the House Price Index, or basically the value of a single-family home in the Prescott MSA, has gone down 9.8% from one year ago.

The values in the chart show whether the House Price Index has gone up or gone down from one year ago. Values above the line represent a time period where there is appreciation in the market. Values below the line indicated periods where home prices have depreciated from one year ago. The trends in the chart (the upward and downward movement) show whether we are heading in a positive direction or negative.

We as REALTORS® are often asked when will we see appreciation again in our market. I wish we had a crystal ball. But when we get close to that time, the HPI should be approaching zero, and when it does happen, the HPI will be a positive value.

And that is something we can all look forward to.

Visit www.ArizonaHPI.com for complete House Price Index charts for all 6 Metropolitan Service Areas in Arizona.

Posts by "Ed Pattermann" http://www.EdPattermann.com Ed is the Owner and Designated Broker of Windermere Real Estate in Prescott, Arizona. Ed is also an AAR Director for 2011. Prior to Real Estate, Ed had a very active and interesting career in Technology and the Internet.

Ever hear a REALTOR® say that?

When the market gets better …

What they typically mean is when they don’t have short sales anymore, when it’s not so hard to get a loan, when there are more cash buyers, when properties easily appraise, when foreclosures decrease, when people buy land again, when buyers walk in the office again, and when the buyers really come back to the market.

The REALTOR® means when some combination of these things go back to the way they used to be, then their business will come back.

A couple of thoughts on that:

• First of all, look around you. There ARE properties being bought and sold every day in your market. Are you part of that?
• Second, it is ill advised to wait for something else to occur, something outside of your control, for your business to improve.

In the the words of the renowned TV celebrity psychologist Dr. Phil:

“If you need a miracle, be a miracle.”

I will often say that the best thing a REALTOR® can do today is to forget everything they know about how the business used to be and learn the new real estate business.

“In times of rapid change, experience is your worst enemy.” – John Paul Getty

We all know the real estate business has changed. And although we were always used to cyclical real estate markets, it may be that we are experiencing a complete shift in our business that may never be reversed.

So my advice – assume that the way the real estate business is today is the new norm.

And then do what it takes to excel at it.

That applies to what is selling, how it is sold, where buyers are, and what buyers are looking for in their REALTOR®.

“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.” – Alvin Toffler

For those waiting for the market to get better, I suggest now is the time to unlearn, and then relearn, the business of real estate.

Posts by "Ed Pattermann" http://www.EdPattermann.com Ed is the Owner and Designated Broker of Windermere Real Estate in Prescott, Arizona. Ed is also an AAR Director for 2011. Prior to Real Estate, Ed had a very active and interesting career in Technology and the Internet.

It seems you can hardly pick up a magazine, read a Real Estate blog or news article, go to a Real Estate conference, attend a training class, or just talk with your colleagues, without the topic of Facebook or Twitter coming up.

In fact, it’s not just our Real Estate industry. Facebook and Twitter dominate cultures around the world when it comes to online activity and social media.

The question is raised and discussed over and over – what is the role of Facebook and Twitter for REALTORS®.

There are certainly lots of opinions on this subject. It goes from writers and consultants saying every REALTOR® should be on Facebook or have a Facebook Business Page, to articles which warn REALTORS® to “unfriend” their clients, or the cover article this month in REALTOR® magazine, which says “Are you over-friended – Social networking’s point of diminishing returns”.

What is the typical REALTOR® to do?

I can certainly give you my perspective. As I mentioned in a recent post, after spending almost 25 years in the hi-tech world, for the past 10 years I have been an active full-time residential real estate designated broker and brokerage owner. I supervise, manage and mentor around 60 residential REALTORS® on a day to day basis.

Also, my perspective is that the typical REALTOR® already has a lot on their plate. Sellers, Buyers, Escrows, Spheres, Email, Documents, Contracts, Forms, Digital Signatures, Transaction Management Systems, Photos, Videos, Listing Syndication, Websites, Leads, Lead Management, Advertising, Marketing, Continuing Education, REALTOR® designations, RPAC, local community, state and national issues,Office Meetings, Floor Time, Open Houses, Short Sales, Foreclosures, their broker , and so on.

The last thing REALTORS® need is a diversion that will consume their precious time and money, and not produce results. Anything new introduced into their business must be easy to learn, easy to use, and have a clearly measurable return on investment within a reasonable time frame.

In my experience, 10-15% of REALTORS® have the time, patience and knowledge to deal with the back and forth evaluation, dialogue and discussion about what to do and what not to do with technology and tools. Not only with Facebook, but with the constant barrage of technology being recommend to or pitched to REALTORS® today.

The rest are often times left feeling confused and further behind everyone else. They get that glazed-eye look 5 minutes into the discussion or presentation. I think writers and presenters should be cognizant of this. Mind you, these tools and technologies are impressive in the right hands. But they are not an undiscovered magic potion that every REALTOR® is missing out on. They are like other tools in our business, where if used correctly, and with significant time and expertise invested, can produce results.

So, my first advice to a REALTOR® is to make sure they are up to speed with the 3 Key Technologies for REALTORS®, which I laid out in a previous post. I consider those technologies critical for any REALTOR® today.

Now, what about Facebook and Twitter?

First of all, Twitter.

Twitter is revolutionary. Twitter IS, as we speak, changing our culture in how news and information is published, disseminated and consumed. The information can be breaking news, such as the recent protests in Egypt, public figures, such as celebrities, politicians or athletes, communicating with their fans, organizations  (such as NAR, Google, your local REALTOR® association) publicly communicating on any topic, and traditional news sources using an alternative path to disseminate information. And much more.

Twitter removes ALL publishing procedures and barriers from those with something to say. It is refreshing and liberating, yet dangerous at the same time.

What is it’s role for REALTORS® and their business?

Answer: None

I cannot see any expenditure of time for a REALTOR® to tweet that would produce a good return for their business.

The only exception would be the rare case where a REALTOR® has something unique to say, and an existing audience that wants to hear it. Tweeting about your local real estate market does not cut it. Some are trying, some misuse it. Let them. There are far better things a REALTOR® can spend their time on. IMHO.

[Twitter can be used as an effective way to blog authors to promote their blog, and for readers of the blog to be kept apprised of changes to the blog (instead of RSS). Google "Wordpress Twitter Plugin" for more info on that]

But, that said, you can use Twitter personally. I use it daily. I FOLLOW, not tweet. I use it to keep up with the world around me. A lot of info can be passed in just 140 characters. I don’t need to read a whole article. I follow my local paper, I follow NAR, I follow AAR, I follow Google Apps, I follow WordPress, I follow writers, musicians and artists I like, I follow the Wall Street Journal and Walt Mossberg, I follow software companies I like or use, I follow my local MLS (with updates on new features, downtime, etc), and so on. I follow over 76 people or companies right now.  Yes, I have to wade through some garbage posts, or needless retweets or self promotions, but on the whole, it’s  good use of time. I can check my tweets on my cell phone, iPad, or any computer, so it’s convenient.

If so inclined, Twitter is a very useful and efficient way to keep up with the world around you. You can personalize to just follow the information sources you want to.

So, in summary on Twitter.

1. A very important part of our culture today.
2. For REALTORS®, no value in tweeting.
3. For keeping up with the world around you, following the news sources of interest to you, personalized to what’s important to you, Twitter can be very useful.

Now, on to Facebook

Facebook is a phenomenon, and another revolution. It was even the subject of the recent Oscar-nominated best film, “The Social Network”. I love the response from Mark Zuckerberg, Facebook Founder and CEO, when asked if “The Social Network” would have any effect on his company, Facebook.  Zuckerberg replied, “We build products that 500 million people see… If 5 million people see a movie, it doesn’t really matter that much.”

Latest statistics (supplied by Facebook) are

1. Launched in 2004, reached 1 million users by the end of that year.
2. Today over 500 million active users
3. 150 million active users in the United States
4. 50% of  active users log on to Facebook in any given day
5. Average user has 130 friends, connected to 80 community pages, groups and events, and creates 90 pieces of content each month

In other words, this is a widely used website, where people create lots of their own content and interact with each other every day.

Should a REALTOR® be on Facebook?

Answer: Absolutely

Good chance people you know are on Facebook – people you went to school with, people you grew up with, people you used to work with, people you once showed homes to or listed their home, and so on.

Being on Facebook would be like being able to stand outside the grocery store, and while everyone in your social network are coming out with their groceries, you have the opportunity to stand there, in one place, and say hi, how was that vacation, congrats on the new grandkids, that was a great game last night, and so on. It makes it easy to connect with these people.

The nice thing about this, is once you get setup on Facebook, Facebook will do a lot of the work for you in establishing or reestablishing these connections.

Look at it this way – we each have our own unique social network. People we worked with in the past, went to school with, grew up with, as well as our friends and acquaintances today. It is not competitive. That social network is yours and yours alone. Facebook helps you connect and stay connected with all those people.

There is another benefit. NAR Research says that on average, every person will know 4 other people in a given year who will buy or sell a home. So using Facebook to connect with your social network can produce additional benefits as those people connect with other people they know, who might need a REALTOR®.

Facebook then allows you, the REALTOR®, to easily connect with people you know, or knew in the past, and make sure they all know that you remain an ACTIVE REALTOR® in your area.

Here are the 4 steps I recommend for doing this;

1. On your Facebook account, and first thing, setup a List called Personal. Go to Account -> Edit Friends -> Create a List to do this. The friends in my personal list are family, relatives, and very close friends. I would also create lists for “ClassMates”, “Business Colleagues”, “Real Estate Associates”,  “Friends”, and so on. It will help you organize your Facebook friends later on.
2. Second, setup your privacy settings under Account -> Privacy Settings.
   1. Pay special attention to who can see photos you upload, status updates, and your different profile sections.
   2. I use the following Customized Privacy Settings;
      1. Bio and Favorite Quotations, Website -> Everyone
      2. Family, Relationships, Interested In, Religious and Personal Views -> Personal List
      3. Posts By Me, Birthday, Places I check in to -> Friends Only
      4. For photos, I have some set to Everyone, some Friends Only, and some to the Personal list. By default, all photos and mobile uploads can only be seen by my Personal list, then later I can decide if I want others to see it.
      5. Note: I would not set any privacy level to “Friends of Friends”. You have no control over who your friends add as friends.
3. Once you have your Security settings set, now edit your profile.
   1. Click on the Profile link in the upper right hand corner, then click on Edit profile.
   2. Put in all the info you feel comfortable with (remember, you control who sees what via your privacy settings). But be sure to put in places you have worked in the past, and places you went to school.
   3. Make sure, in your Bio, that you state you are an ACTIVE REALTOR® in your area, and include a link to your website. That is who you are!
4. Finally, start sending some friend requests. Go to Account -> Edit Friends, and there is a link on the left hand side that says ‘Find Friends”. On this page, Facebook will let you find friends using your email contacts, and also  suggest friends for you based on the number of Mutual Friends. You can also click on “Other Tools”, and find friends based on the schools you attended and the previous places you worked. When you add a friend, you will have the opportunity to specify what list they should go in. Be sure to do this for each friend.

Now you have your Facebook account setup.

After that, I recommend 1 hour a week of Facebook maintenance, part of your “Prospecting Time”, broken up into two 30 minute segments (put it in your calendar – “Facebook Update Time”).

What you are going to do in each of these 30 minute segments is;

1. Respond to new friend requests. I recommend you add everyone that has a mutual friend. But, don’t add people you have no idea who they are, or have no mutual friends. When you add a friend, be sure to put them in the appropriate list (Personal, Business Colleagues, Classmates, etc). That way, based on your security settings, they will only see what you allow them to see. You will also see Friend recommendations that Facebook puts on your home page. This is where Facebook is constantly working FOR YOU, to find you friends.
2. Send out 10-20 new friend requests each time you login, using the “Find Friends” tool mentioned previously. That way you can continue to proactively build your friend list, and hence more people you can connect with and make aware your are still a REALTOR® in your area.
3. Like or Comment on your Friends posts. Each time you do this, you get some mind awareness with your friends. It’s like that example of standing out in front of the grocery store, seeing all your friends walk by. The more you can Like or Comment on a friends post, the more people will be reminded of you.
4. Post some content. No real estate listings please. Post information about what you are doing in your life that you feel comfortable in sharing. It can contain an occasional reference to your work, but should really be about you. Let your friends know a little bit about who you are.

So, my Facebook recommendation.

1. Definitely do it.
2. Take about an hour to setup your account, with the right lists and privacy settings.
3. Then budget two 30 minute segments each week to post something of interest, add new friends, and like and comment on your friends activities.

Many others promote doing your own Business Page more on Facebook. A Business Page is where a REALTOR® can then promote their business, their listings, solds, testimonials, and so forth (which you cannot do on your personal page). Is it worth it? It takes more time, and will likely involve additional expense as well. Will it generate new business? How much more will it do than the plan I’ve outlined above? Worth the additional time and investment? I am not saying no. I just am not sure.

I recommend you start with the plan above. Not a lot of time investment, certainly within most REALTORS® expertise, and has measurable results. After following these steps, you should see results in the form of contacts with people you haven’t contacted before, and maybe better connections with your existing sphere (that are on Facebook). If you are successful with continually adding friends, this will also raise your visibility amongst all your friends, contacts and people in your community. Not a bad thing for a REALTOR® to do. Give it three months – see if it improves your connection with your sphere, adds more people to it, and ultimately brings you more business.

That’s it for my perspective on Facebook and Twitter. I hope you have found it interesting.

Respectfully yours,

– Ed

[Note: One thing about Facebook: they are constantly changing they way they handle privacy, profiles, and lists. So depending on when you read this, something may have changed. For instance, they just introduced “Groups”, which are like Friend Lists, but different. I continue to use Friend Lists by the way. Keep that in mind in case  something is different in Facebook from what is said in this post. It’s a challenge for anyone to keep up.]

[Note: Ed will be speaking this week at the AAR Winter Conference in Prescott on Cloud Computing and Real Estate. ]

Posts by "Ed Pattermann" http://www.EdPattermann.com Ed is the Owner and Designated Broker of Windermere Real Estate in Prescott, Arizona. Ed is also an AAR Director for 2011. Prior to Real Estate, Ed had a very active and interesting career in Technology and the Internet.

Then things changed.

At the annual NAR Convention in San Diego in 2009, I attended the federal issues update session.

I heard firsthand the reports on efforts from a very talented team of individuals in the Government Affairs Division at NAR, led by Jerry Giovaniello, Senior VP of Government Affairs. I listened to presentation after presentation by Jerry’s team of senior lobbyists and heard the details of how they work for us REALTORS® every day on Capitol Hill with our lawmakers to keep REALTOR®  issues and private property rights at the forefront of the conversations in the highest levels of our government.

I have also since then witnessed first hand the extensive statewide efforts led by our own Arizona Association of REALTORS® and CEO Tom Farley and his team. Tom and AAR do a tremendous job working on a daily basis at the state level presenting our priorities and our concerns to our state lawmakers and representing what is best for private property owners in Arizona.

I also noticed, at each state or national conference I attended, the passion and drive with which our leadership and many fellow REALTORS® spoke about the importance of RAPAC. I figured these talented and successful individuals must know something I don’t.

These experiences, which have been continually reinforced over the past two years at the national, state and local levels, have allowed me to make the connection between:

The current issues our RAPAC dollars go towards are critical, such as defending the mortgage interest deduction (MID), short sale and foreclosure lender reform, opposing professional service taxes, Arizona Corporation Commission line extension issues, limitation of HOA transfer fees and many more. (See the links below for more details.) This list is a fast-moving target, requiring the dedication of skilled individuals at state and national levels to track it and ensure we, the REALTOR®, are always represented.

These issues directly affect our business and livelihood, and we can directly affect the outcome of these issues by contributing to RAPAC.

That is the connection.

I look at it this way: We all invest in our business. Each year, around this time, we do a business plan–where to budget dollars for education, technology, marketing, support, dues, travel, phone, computer, supplies and so on.

Add RAPAC to your budget.

There can be no better investment you can make in your business than making a contribution to RAPAC.  It will not only go to protect and sustain your business but to grow your business as well.

SO PLEASE:

• Make that connection.
• Support your career.
• Support your business.
• Support your industry.

Respectfully yours,

– Ed

Important Links:

• Arizona RAPAC Site:  http://www.aaronline.com/rapac
• National RPAC: http://www.realtor.org/government_affairs/rpac
• REALTOR® Party: http://www.realtoractioncenter.com/

Posts by "Ed Pattermann" http://www.EdPattermann.com Ed is the Owner and Designated Broker of Windermere Real Estate in Prescott, Arizona. Ed is also an AAR Director for 2011. Prior to Real Estate, Ed had a very active and interesting career in Technology and the Internet.

I had a long career in technology and had the privilege of doing lots of wonderful and exciting things.

For the last 10 years, I have been a real estate broker. I manage, mentor, support and supervise around 60 REALTORS® on a day-to-day basis. With my background, the agents I attract to my company tend to be the more experienced with technology or the more technically inquisitive.

From my perspective, the typical REALTOR®  today is confronted with too much technology.

I feel for them. The typical REALTOR® does not have a technical background or training. While trying to manage their day-to-day business, stay on top of their listings and escrows, keep in touch with their sphere and also grow their sphere and business, they feel pressured to keep up with the latest in technology that they see and hear about everyday. I am telling you, for most agents, it is just too much. So many end up wasting time and money on tools and software that they don’t use–or certainly do not get a good return on.

We all know the world is moving very fast. Consumers are becoming more and more sophisticated, and hence becoming more demanding. No question about it, REALTORS® must keep up to prosper. REALTORS®  today must have basic computer skills, such as knowing how to use email, websites, word processing and their MLS. They must also possess basic digital photography and video skills, meaning the ability to quickly and efficiently email photos (via Picasa Web Albums, for example) and videos (via YouTube or Vimeo)  to clients. That is a lot right there.

Beyond these basics, I work with my agents on three additional areas of technology–what I would consider key technologies that are important for REALTORS® to stay competitive, work efficiently and keep pace with the world we live in. We work on mastering these three areas before moving on to ANYTHING else.

These three areas are:

1. Move to the Cloud – Have one set of data (meaning email, contacts, calendar and docs) and be able to access this from ANYWHERE, meaning from any computer (anywhere in the world), your iPad or your smartphone (preferably Android or iPhone).

One set of DATA, in the CLOUD, always in SYNC, accessible from ANYWHERE.

The good news: compared with just a couple of years ago, today this is easy and inexpensive. (See Google Apps, preferably with your private domain.)

2. Lead-Generating Website and Software for Managing Leads – Have a clean, professional-looking website (or a blog for those inclined) whose primary focus is to generate leads. Keep it simple and focus on properties, not you. Use your own domain name and promote that domain name everywhere (on every email signature, flyer, postcard, etc.).

Then, make sure all your prospects, clients and sphere are in some type of software program – could just be a spreadsheet (in the cloud) or preferably one of the many web-based real estate CRM (Customer Relationship Management) systems out there. Just be sure you are using SOMETHING. This will help you keep track of, keep in touch with and manage all your prospects, clients and your sphere.

Real  estate has NEVER seen anything like the Internet for generating leads. You need to be using the Internet to gain new leads, manage those leads and keep in touch with your sphere.

3. Master the Digital Transaction Path – Conduct all of your transactions digitally, mastering the path from zipForm® to digital signatures to contract execution to online Transaction Management. AAR is making this easy for you. All these services are provided by AAR as a member benefit. It’s time! Time to phase out fax and paper. No more waiting. Do it now. You will be glad you did.

Then, honestly, forget everything else (for now). Don’t worry about it. Relax. Focus on these three areas. These technologies will help your business and produce a good ROI for the time you invest in them. You will then be equipped to work smarter not harder, keep up with your clients and prospects, and have the time to do everything else you need to do to run your business. Maybe even have some time left over!

Now for all of you asking, “What about ___________?” [Fill in your favorite tool or the latest technology being promoted this month, such as  Twitter, Facebook, LinkedIn, Zillow, Trulia, blogging, WordPress, SEO, Adwords, YouTube, videos, QR codes and Microsoft tags.] We can address those areas and more in future posts. But for now, my advice for the 95% of you just trying to keep up, grow your business and make your life easier, PLEASE just focus on the three items above.

Once those are implemented and you feel proficient with them, then look at additional technologies, social networks, websites and tools, and (carefully) assess if they can be utilized (with good ROI) to further assist your business and productivity.

At the end of the day, all this technology should WORK FOR YOU–and not the other way around.

Respectfully yours,

– Ed

[Ed will be doing a session on cloud computing at the AAR Winter Conference on March 10th in Prescott. Stay tuned for more details.]