Incredible Keller Williams Family Reunion this year! Atlanta GA is rocking, from the crazy annual Red Bash Party - featuring all-agent talent, and a rock-and-roll show with Keller Williams Founder Gary Keller and Vice Chairman Mo Anderson playing guitar and keyboards, respectively, on stage - to very insightful presentations on stage and in breakout sessions.
Thousands of KW agents, and their non-KW guests, who seem to be absolutely in awe of what is going on here, are friendly, sharing, and positive, even though many of their markets back home are in a sluggish state right now.
Still sorting out my 12 pages of handwritten notes - and we have 1 1/2 days left in the conference - but here are a few highlights.
1. The current state of the market is the result of cyclical forces many predicted several years ago by many experts, but ignored by many enjoying the recent boom market. The only thing that couldn't be predicted is WHEN the market would shift, and exactly what factors would occur in the shift.
For example, some thought early on that very liberal credit granting standards could cause high levels of default later on, but we chose, instead, as a nation, to focus on putting as many buyers in a house as possible, irregardless of the likelihood that they can pay their debt later on. Borrowers defaulted, lenders got far more cautious, buyers now running scared.
As many of us baby boomers remember, real estate market downturns have happened before, recently - the 1979-85 downturn, fueled by double-digit interest rates, as well as the recession-driven market fall-off in the early 1990's.
2. The true root of today's real estate sluggishness can be pegged, in large degree, to trends in home affordability. In sum, average household income has increased an average of 3.6% per year since 1981, while the average home price has increased 4.6% per year over that same period. This problem was exasperated since 1998, when the average income earner in many boom markets could not afford to by a home in the town in which they lived.
Today, a dose of payback - very high supply, fewer qualified buyers, and as much as 48 months inventory in markets experiencing incredible growth and ridiculous demand only a couple of years ago.
3. Want to THRIVE in 2008, and Beyond. The KW Folks, during their Mega Agent Sessions, outlined 12 common-sense principals you have to practice, or risk not being around when this cycle turns more positive - as it will, at some point -
- Get Clear on Your Role in Today's Market - quite simply, it's to generate leads, convert them, and service buyers and sellers!
- Get very tough with your business (and personal) expenses.
- Do MORE with LESS MONEY - work MORE EFFICIENTLY than when things were going crazy.
- Find the Motivated - Make Offers for Immediate Response.
- Capture and Convert Leads that will get you to the Kitchen Table to sign a listing, the Office Conference Table to sign a Buyer's Contract, or the Closing Table to get a compensation check, and a proceeds check for your client.
- Catch People in Your Web - Internet Lead Generation and Conversion.
- Price AHEAD OF THE MARKET - don't chase a roller coaster down hill!
- Stage Homes so they Stand Appart from the Competition.
- Create Urgency in Buyers.
- Expand the Options to Buy - Learn Creative Financing Techniques (legal ones, of course)
- Master the Market of Today - REO's, Foreclosures, and Short Sales
- Bulletproof the Transaction - PRE-FRAME Possible Problems.
More notes and thoughts in the coming few days!
Are you attending the Keller Williams Family Reunion here in Atlanta this week? Please add your thoughts!
Talk with you again soon!
DEAN & DEAN'S TEAM CHICAGO
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