Real Clues

[RealClues] #259: Trends (part 2)

SPECIAL ANNOUNCEMENT: If you are a female manager, broker/owner, or executive in a real estate brokerage or a company who provides services to the real estate industry, we have a very special conference for you. Click on www.ReallyAwesomeWomen.com to learn more. We have limited space at the resort, so this event is by invitation to women who meet the above criteria. (For those of you who are agents or guys, if you like the concept, let us know--we'll get to work on putting a conference together for you!)

This week at LuxuryClues: How to match luxury buyers and luxury sellers; information on the real estate futures market--is equity insurance and pricing based on the stock market in the future? Also, upcoming reports throughout the week from the Luxury Conclave at the beautiful St. Regis Hotel in Dana Point, CA.

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Table of Contents
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1. CoachingClues: Twenty-One Trends that Will Influence Your Business in 2007 (Part 2 of 5)
2. Welcome Notes: RealEstateCoach.com is Growing--We Need Your Help!
3. Reprise: Stop Hemorrhaging from Commissionectomies (Part 1 of 5)
4. Create a Better Life: Knowing What to Do Is Not Enough
5. Featured Products: Make More Money in 2007
6. Increase Your Production with Personal Coaching
7. Give Us Your Feedback on this Newsletter
8. How to Subscribe/Unsubscribe

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1. CoachingClues: Twenty-One Trends that Will
Influence Your Business in 2007 (part 2 of 5)
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The number of "traditional" buyers and sellers is rapidly shrinking. Have you made the necessary shifts to meet the needs of the 21st Century consumer?

Last week's article looked at three key economic trends that will affect your business in 2007. Today's article examines important demographic influences on your business.

#4: The changing face of the 21st Century real estate consumer
In 2007, 60 percent of all transactions will be with immigrants and minorities. This demographic is more likely to be composed of first time buyers. A challenge many of these first time buyers face is lack of a U.S. credit history. Few lenders have programs to address this problem. Consequently, closing these transactions can be difficult unless the purchase is all cash. On the other hand, we are also experiencing a major surge of foreign buyers for our most luxurious properties. Our industry continues to lag behind in providing both real estate and mortgage services in other languages to both of these groups.

Opportunity: Capitalize on this trend by creating a niche that serves first time buyers as well as those more affluent purchasers who lack a U.S. credit history. Identify lenders who will work with past rent history or other types of creative financing. Actively solicit immigrant and minority clientele by advertising in other languages. For example, consider having the property descriptions on each of your listings translated into the primary languages spoken in your service area. Offer this translated information in both print and web formats. Along the same lines, supply your sellers with a website that uses the property address as the URL and make it available in multiple languages. Also, consider advertising on foreign language radio and television stations. If you are not fluent in a foreign language, partner with an agent who is fluent.

#5: The Boomer effect: Boon or boomerang?
According to NAR, the number of sellers who were at least 45 years old or older in 2006 was 54 percent. This is the same percentage as for 2005. This means that Boomer activity has remained consistent. Furthermore, the age at which people reach their peak spending is 46.5. The largest proportion of Boomers was born in 1960; 2006 was the year this group should have hit its spending peak. This may partially account for why the market has been so strong for the last seven years as the bulk of the Boomers moved through their peak spending years. The current statistics also demonstrate that the prime time to purchase a second home is when the buyer is between the ages of 50 and 60. Currently, many Boomers are purchasing second homes in the Sunbelt with the idea of trying out the lifestyle while they are still working. When they retire, they will sell their big family home and make their second home their primary residence.

Opportunity: According to NAR, approximately 17 percent of the Boomers plan to purchase real estate in the near term. In 2007, look for the Boomer market to continue to be strong as those born in the late 1950s and the early 1960s purchase second homes in anticipation of retirement. Expect to see more of them selling their large family homes and trading for a property with better amenities and less maintenance. Golf course communities should continue to be popular as well as senior communities that cater to affluent and active seniors who want minimal property maintenance. If you are a Boomer, moving to one of these communities and becoming the local real estate expert can provide you with listings and sales for many years to come.

#6: The Great Divide: The Generational Communication Gap
A major challenge that we face as an industry is that the median age of Realtors(reg) in the U.S. is over 50. While there are over 79 million Boomers and Traditionalists (those born before 1964), our industry has been somewhat myopic in terms of meeting the needs of Gen X and Gen Y. The Gen X generation was born between 1965 and 1976, and makes up roughly 17% of the population or 40 million. Gen Y makes, born between 1977 and 1994, makes up about 25% of the population or 60 million people. Recently, the term Gen Y has been replaced with the term "Millenial" to indicate those born since 1982. This group, sometimes also called the "echo boomers" has just surpassed the Boomers in terms of numbers.

Opportunity: Boomers and Traditionalists did not grow up with computers. They prefer face-to-face, telephone, or email communication. In contrast, Gen X and Gen Y have used computers since elementary school. Mobile access is a way of life. "Email is the new snail mail." When you contact a Gen X and Gen Y, you better text message. When they contact you, they also expect instantaneous response. While Boomers and Traditionalists respond well to brand marketing, the Gen X and Gen Y crowd prefers lifestyle marketing. According to a study from California State University at Chico, "It's more important to be interactive and to show people having fun. Gen X and Gen Y want to be marketed with a strong dose of the truth coupled with irony and humor. For them, it's not about reaching the masses; it's about building a community." This is evidenced by the stellar growth experienced by such sites as SecondLife.com, UTube.com, and MySpace.com. Gen X and Gen Y want interactivity and these sites provide it. We are already seeing bricks and mortars stores showing up on SecondLife.com. Both agents and brokerages may want to consider moving some of their advertising dollars from traditional print advertising to these new venues. Also, since blogs are interactive, they provide the ideal way to reach Gen X and Gen Y.

Want to know more about how to capitalize on the trends for 2007? If so, see next week's article, "Digital Trends."

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2. Welcome Notes
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Welcome to our new subscribers this week. Each week RealClues provides you with great strategies to improve both your business and your life. If you find this issue of RealClues helpful, take a moment to hit the "forward" button and send it to another friend in the business.

RealEstateCoach.com is growing and we need your help in three areas:

1. Do you know someone who should be a member of our coaching team?
We are expanding this part of our business. To qualify, the coach must belong to the International Coach Federation and have completed formal coach training through an ICF approved training institution. A minimum of 5 years of experience in the real estate industry as an agent, broker/owner or manager is also required. Coaches with MCC or PCC designations will receive preference. (No exceptions on the professional coach training or real estate experience requirements.)

2. Business consulting program
A major part of our business plan for 2007 will be launching a business consulting program. This will differ from our coaching program in that it will be structured and provide specific advice on how to grow your business. As a result, we will have several openings for consultants who are flexible enough to work with our consulting model. To qualify, you must have experience as a manager/team leader, trainer, or top performer, a current business plan, and be up-to-date with the latest technology innovations.

3. Do you want to train our materials?
Over the last few days, I have had a number of people who have requested permission to train my material. This will take me several months of work to implement. Consequently, before moving forward, I want to evaluate how great the interest is. If there is sufficient interest, there will be a "train-the-trainer" program for people who have demonstrable training skills, an established base of clients (this would include if you manage an office or are a trainer for a company), and who are willing to pay a licensing fee to obtain the power points and supporting materials. I will also consider people who have specific niches where they want to train such as expired listings, distressed properties, relocation, luxury homes, etc.

If you are interested or know of someone who would be a good fit, please email me at ross.bernice@gmail.com with your resume, a copy of your 2007 business plan, and if you are a coach, the coach training school you attended as well as your ICF membership designation, number, or link on the ICF web page. Please note that our company uses an independent contractor rather than an employee model.

Have a great week!

Warmly, Bernice Ross, MCC, and Byron Van Arsdale, MCC
www.RealEstateCoach.com, www.LuxuryClues.com, www.RossdalePress.com, www.ConferenceCallTraining.com, and www.TeleconferenceLine.com

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3. Reprise: Stop Hemorrhaging from Commissionectomies
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This five part series of articles updates many of the ideas in Waging War on Real Estate's Discounters. With the market improving in many places, we still need to be vigilant when it comes to protecting our commissions. To learn more about what you can do to keep your commissions high, click on the link below:

http://www.realestatecoach.com/articles_archive/art20050711.html

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4. Create a Better Life: Knowing What to Do Is Not Enough
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Last week's article discussed how to overcome procrastination. Even when we know what to do, sometimes we find it difficult to do it. If you're struggling with procrastination, this article that first ran in 2004 can help.

http://www.realestatecoach.com/articles_archive/art_knowing.html

In case you missed last week's article, here's the link:

http://www.realestatecoach.com/articles_archive/art_procrastination.html

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5. Featured Products: Make More Money in 2007
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**Agents: Learn the Secrets of Master Motivators that Can Explode Your Business Now!
Neurolinguistic programming is a powerful psychological tool that can help you convert more listings and close more transactions. The key is knowing what to say and how to say it. Our powerful 11-hour audio CD training program, "List and Sell Real Estate Like Crazy" unlocks the secrets master motivators like Tony Robbins use to get their audiences to buy, buy, buy! If you're tired of working harder, then 2007 is the year to start working smarter with the best listing presentation materials in the business. For more details on this money-making program that also includes a five pound manual and forms CD, click on the link below:

http://realestatecoach.com/training/listandsell.html

Or to order:

http://www.profcs.com/app/netcart.asp?MerchantID=35347&ProductID=1294579

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6. Increase Your Production with Personal Coaching
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Looking for a well-trained coach who knows the real estate business? Our coaching team can help you increase your production and make your dreams come true! Send an e-mail to Shane@RealEstateCoach.com and we'll help find the right coach for you.

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7. Give Us Your Feedback On This Newsletter
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We want your feedback-to share your thoughts and suggestions, please e-mail us at Shane@RealEstateCoach.com.

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8. How to Subscribe/Unsubscribe
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Visit our Web site, http://www.RealEstateCoach.com to subscribe/unsubscribe to RealClues.

Copyright (c) 1996-2007, RealEstateCoach.com and Teleclass4U.com, LLC. All rights reserved. Permission is granted to reproduce, copy or distribute RealClues as long as this copyright notice and full information about contacting the contributors to this newsletter is attached.

Contributors to this newsletter:
Bernice Ross, MCC, and Byron Van Arsdale, MCC, Owners, www.RealEstateCoach.com, www.LuxuryClues.com, www.ConferenceCallTraining.com; www.RossdalePress.com; and www.TeleconferenceLine.com
Shane Bowlin, REC General Manager

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