rainmaker 7.19.2011

RAINMAKER

JULY 19, 2011

Monday, July 18, 2011

Activity ReportListings, Pendings, & Sold July 2011: Listings Pending Closed

Week 1 2 1 1

Week 2 4 2 3

Week 3 1 5 9

Week 4

Month Total 7 8 13

Goal 20 20 22

I must do the most productive thing possible at every given moment.

Tom Hopkins


JULY RAINMAKERSPUT IT IN PENDING!

WHO WILL TAKE JULY?

• Charlotte Beasley- 1

• Jacob Hartley- 2

• Wes Thornbury- 1

• Amber Harrison- 1

• Lindsay Gquest- 1

• Leslie Toups- 0.5

• Clark Girardeau- 0.5

STA

ND

ING

S


JULY RAINMAKERSPROPERTY MGT REFERRALS!

thank you!

• Marcile Sims- 4

• Rose Gibbs- 1

• Victoria Wood- 1

• Ed Phillips- 1

STA

ND

ING

S

You simply refer them to us and we do all the setup. It’s that easy!

PAYOUT

$100/perupon

leasing!


DiscussionAgenda


Work by Referral. Live the Good Life!™


Brian Bu!ni’s Real Estate Report PAGE 2

CONTENTSIndustry Facts PAGE 3

Mortgage Facts PAGE 4

Distressed Properties PAGE 4

Buyer Facts, Trends & Demographics PAGE 5

First-Time Home Buyer Facts PAGE 6

Seller Facts, Trends & Demographics PAGE 7

Transaction & Income Information PAGE 8

Real Estate Agent Facts PAGE 8

Real Estate in the New Era PAGE 9

Why Working by Referral Works PAGE 10

SOURCES:

National Association of REALTORS®, 2009, 2010, 2011

RISMedia, Inc., 2010, 2011

CNN Money, 2011

U.S. Bureau of Labor Statistics, 2009

National Association of Home Builders®, 2011

REAL Trends, Inc., 2010

The Nielsen Company, 2009

Forrester Research, Inc., 2010

Bu!ni & Company™, 2010

REALTOR and REALTORS are registered trademarks of the NATIONAL ASSOCIATION OF REALTORS. © 2011 Bu!ni & Company. All rights reserved.

Buying, selling or "nancing a home is one of the biggest decisions a person will make, so it’s only natural that they want to work with a knowledgeable professional they can trust. Remaining educated on the market and providing your clients with relevant and current information will give them peace of mind and help you secure their long-term business. That’s why I’ve compiled Brian Bu!ni’s Real Estate Report—updated for 2011—to inform you and help you exceed your client’s expectations.

Filled with facts and "gures on the industry, this report is a must-read for today’s professional. You’ll learn about current buyer and seller trends and changing demographics as well as gain insight about where the market is headed.

I hope you enjoy the report and put it to use in your business.

It’s a good life!

Brian Bu!niCEO & Founder, Bu!ni & Company,North America’s Largest Real Estate Coaching & Training Company



The typical home purchased was built in

1990

INDUSTRY FACTS

COMPARISON OF HOMES PURCHASED:

HOUSING INVENTORY:

9% condos

8% townhouses or rowhouses

6% some other kind of housing

34% of a person’s income (the largest portion) is

used for housing

It is now cheaper to buy than rent in nearly 3/4 of American cities

Northeast$237,300

Midwest$139,700

South$148,400

West$204,000

MEDIAN HOME PRICES:

In 2011, single-family home starts are forecast to increase

21% to 575,000

The national home ownership rate is nearly

67%

For the past 12 years, the average homeowner’s net worth has been

31 to 46 times that of the average renter

Decline of FSBO sales transactions in 2010:

Less than 1 in 10Housing is a key driver of the economy, accounting for 15% of the GDP

of homes sold were new homes

of homes purchased were in a subdivision or suburb

15%52%

December 2010 8.1 month supply

November 2010 9.5 month supply

77% single-family detached homes



MORTGAGE FACTS DISTRESSED PROPERTIES

8% median down payment for all

home buyers

4% median down payment for

"rst-time buyers

14% median down payment for

repeat buyers

Distressed homes make up

36% of the market 91% of buyers "nanced their

home purchase

95% of "rst-time home buyers

chose a "xed-rate mortgage

56% of "rst-time home buyers

"nanced their purchase with an FHA loan

7% used the VA loan program

HOUSING IS PREDICTED TO RECOVER THE QUICKEST IN THESE STATES:

North DakotaSouth DakotaIowaNebraskaOklahoma

By the end of the year, "xed mortgage rates are forecast to increase from

4.75% to

5.75%The majority of these buyers could not !nd the right home or thought the process was too di"cult or complex.

4% of buyers purchased a foreclosed home

6% of buyers purchased a short sale

50% of all buyers considered

purchasing a foreclosed home, but did not

57% of !rst-time buyers

considered purchasing a foreclosed home, but did not



BUYER FACTS, TRENDS & DEMOGRAPHICS

WHAT BUYERS NEED HELP WITH MOST FROM THEIR REAL ESTATE AGENT:

More than 1/3 of buyers did not make any compromises when purchasing their home

14% of buyers own 2 or more homes

Repeat buyers plan to hold their property for

15 years

More than 80% of buyers list energy e!cient heating, air conditioning and appliances as must have features in their new home

of "rst-time buyers are married couples

compromised on price

compromised on size

Buyers won’t compromise on storage space!

of repeat buyers are married couples

48% The typical buyer purchased a

3 bedroom/2 bathroom home

The average buyer searched for

12 weeksThe average buyer viewed

12 homes

19%19%

68%HOME BUYER DEMOGRAPHICS:

20%single women 12%

single men

1%other

8%unmarriedcouples

59%married couples

TOP FACTORS in"uencing where a buyer purchases:

1 Quality of the neighborhood

2 Convenience to work

3 A!ordability of the home

Finding the right home

Negotiating the terms of the sale

Negotiating the price

Completing the paperwork


First-time buyers

$152,000

Repeat buyers

$215,000


FIRST!TIME HOME BUYER FACTSPERCENTAGE OF BUYERS WHO WERE

FIRST"TIME HOME BUYERS: 2010

50% 2008

41% 2009

47%

MEDIAN PRICE PAID:

30 Typical age of #rst-time home buyer

First-time buyers searched an average of

2 weeks longer than repeat buyers

93% of #rst-time home buyers

used the #rst-time buyer tax credit

First-time home buyers plan to stay in their home for

10 years

The average income of a #rst-time home buyer was

$59,900The average square footage of a #rst-time home buyer’s house was

1,540And cost

$152,000


Project

Cleaning & De-cluttering

Lightening & Brightening

Home Staging

Landscaping

Repairing Electrical or Plumbing

Cost toHomeowner

$290

$375

$550

$540

$535

Sale PriceIncrease

$1,990

$1,550

$2,194

$1,932

$1,505

Return onInvestment

586%

313%

299%

258%

181%

The median age of a seller is

SELLER FACTS, TRENDS & DEMOGRAPHICS

49The typical seller has owned their home for

8 years

The typical home sold for

96%of the !nal listing price

43%27%

93%The median time for a home on the market was

8 weeks (down from 10 weeks in 2009)

OF SELLERS:

SELLER’S MOTIVATION FOR MOVING:

21%

home was too small

15%

job relocation

MEDIAN HOME PRICE RECEIVED BY SELLERS:

TOP 5 HOME IMPROVEMENT PROJECTS WITH BEST RETURN ON INVESTMENT:

Sold using a real estate agent

Sold directly by the owner

of sellers did not reduce their asking price

reduced it only once

of sellers listed their home on an MLS

50%28%

21%

traded up

bought a comparably sized home

traded down

$199,300

$140,000

Sellers generally move about

18 miles from their previous home

Brian Bu"ni’s Real Estate Report PAGE 7



TRANSACTION & INCOME INFORMATION REAL ESTATE AGENT FACTS

16 years or more experience

$52,300

2 years or less experience

$8,800

REALTOR® EARNINGS COMPARISON:

In 2009, the average gross income of a REALTOR® was

$35,500

Nearly 40% of REALTORS® reported gross incomes below $25,000 and only 16% reported incomes of $100,000 or more

In 2010, Bu!ni & Company One2One Coaching™ Members earned an average gross commission of

$180,542 and closed an average of 22 transactions

80% of REALTORS® do not have a personal assistant

91% own a home

93% use email every day

78% use a smart phone every day

60% have a website

11% don’t have a website but plan to develop one in the future

10% have a real estate blog

In 2009, real estate agents closed an average of

7 transactions

50% of REALTORS® use social media

OF REALTORS®:

76%workfull-time 24%

work part-time

REALTORS® spend about

5 years with a company



REAL ESTATE IN THE NEW ERAThere are approximately

80 million Echo Boomers

Echo Boomers

$200Billion

Baby Boomers

$125Billion

What is an Echo Boomer?

Considered the children of Baby Boomers, Echo Boomers are people between the ages of 18 and 31

Social networking websites more than doubled their prevalence as a resource in 2010

More than 80% of builders expect to do away with formal living rooms and the number of houses with 3 or more bathrooms and 4 bedrooms is dwindling

EARNING POWER COMPARED:

DECLINE OF NEWSPAPER ADVERTISEMENTS AMONG SELLERS WITH AN AGENT:

of buyers use the internet to search for homes

97% of them use social

networking sites like Facebook, LinkedIn, and Twitter every day

40% of them don’t have a land line

2009 37%

2010 28%

89%85% of buyers using the internet to search for a home purchased through a real estate agent

In 2011, as Echo Boomers move into the housing market, multi-family home starts are forecast to rise

16%



WHY WORKING BY REFERRAL WORKS

90% of consumers worldwide

are most likely to trust the recommendations of the people they know

84% of sellers would

recommend their agent or use the agent’s services again in the future

64% of buyers chose their

real estate agent based on a referral, or had worked with their agent in a previous transaction

90% of buyers would

recommend their agent to others

A referral from a friend, neighbor or relative is the most common method sellers use to !nd their real estate agent

35% of people feel reputation is the most important factor when choosing an agent

66% of sellers contacted

only one agent

Staying in constant contact with your database will keep you at the forefront of their mind!

Only 36% of REALTORS® have generated some business from holding an open house, a “traditional, transactional” lead-generation activity

There is no lead more powerful than one referred from someone you know—someone who knows you, trusts you and will put their name to you.”

—Brian Bu"ni

Each year, people share their opinions and recommendations about a brand, company or service provider

500 billion times

From their website,

61%of REALTORS®generated

0 to 5 leads


rainmaker 7.19.2011

Documents

contentsindustry facts

mortgage facts page

real estate agent facts

nis real estate report

trends demographics

real trends

brian bu

referral works page