US Home Sales Slow – indicating slow recovery

Recent data coming out of the US shows that prices for residential property seem to be stabilising, but that inventory rates are staying high, and even increasing slightly.

What does this all mean? There has been much said about the type of recovery the US is expected to have. Will it be a robust ‘boom’ as has occurred in the most recent recessions or a double dip recession or perhaps a slow and almost stagnant period of growth (similar to Japan’s economy over the past 10 years).

I think it is becoming clear that there is not going to be a strong recovery – or a ‘boom’. Whilst the jobless rate remains so high (9.9%) I can not see any strong growth in house prices. Looking at the most recent data from the Bureauof Labor Statistics, there really are mixed signally of what employment in the US is doing.

One one hand the jobless rate has increased (9.7% to 9.9%) however the participation rate has increased (.3%) indicating more people were looking for work, and yet the long term unemployed (known as discouraged workers) has increased by almost 5000,000 in the past 12 months.

For a solid rebound in home prices to occur  simply more people need to be employed. The US love of owning property has not changed. The dream of owning ones own castle will be flickering away, however that dream is just that, a dream, unless they can have stable employment.

So I have come to the conclusion that we can expect slow or non-existent growth in US residential house prices at least for the short to medium term.

See here for a press release from the National Association of Realtors on this point.

And visit here for Labor Statistics.

Domain.com.au taking private listings

A couple of interesting articles are circulating the web on the announcement that www.domain.com.au (Australia’s second most popular portal) will be accepting the upload of listings from the private seller site www.buymyplace.com.au. In this post a number of agents question why Domain would do this and how it will give a benefit to their major competitor www.realestate.com.au. See here.

I know agents have a vested interest in restricting the level of enquiry a private seller can get, but do they really expect marketing websites such as Domain not to take private listings? After all Fairfax (owner of Domain) have taken and continue to take private advertisements in their Newspapers so why would the website be any different.

It makes sense to have as much content on a Portal as possible so adding private sales, and increasing the depth of listings, can only help.

The real question here is how does a portal such as Domain reward its loyal trade customers i.e real estate agents? In every business model a loyal repeat customer is rewarded with discounted pricing, better service or a better product. If Domain is going to take private sales then they had better make sure they look after their core customer base and reward them appropriately.

I am sure all agents would be happy for Domain to take private listings if they (Domain) offered them (the Agent) something of value that a Private Seller could not obtain direct from Domain.

A few ideas could be:

– customer email alerts restricted to agent listings

– featured listings for just agents

Launch of Agent Portal by leading Property Developer

Brightfox is proud to announce the launch of the Divercity Waterloo agent portal to assist Becton in marketing this exciting new project to the World.

The Divercity Waterloo Agent Portal is a secure website developed exclusively to enable authorised real estate agents from around Australia and Internationally to login and view live availability on the project 24 hours a day 7 days a week. It provides an indepth and rich experience, giving the agent and their client all of the information they need to analysis the project and to determine which apartment best suits their needs. Agents can then perform a real time reservation on the Agent Portal, immediately reserving the apartment and taking it off the market, no matter what the time of day or night.

Agent Portals such as the Divercity Waterlook Agent Portal open up a whole new world of sales opportunities for Property Developers, enabling them to reach hundreds of agents around the World at all times. Gone are the days of selling a Project with a small sales team that is restricted to local sales and very expensive road shows.

If you would like to know more about how a Brightfox Agent Portal can help your next project to be a success, please don’t hesitate to contact us.

Interest Rates Up In Australia Again

Once again the Reserve Bank of Australia has raised interest rates by .25%. Recent business survey’s show that in general confidence from the business sector is still not great, so perhaps some interesting times ahead.

Dubai Investor Wins in Court

Interesting article published recently on the site www.propertycommunity.com referring to an investors win in a court case against a well known Dubai Developer ACI. The investor successful achieved an order for the refund of DHS 1 million invested in 2007 for 2 commercial units that are now 20 months behind there due date.

I am sure Developers (and Investors) across the UAE are looking into this judgement in depth as there are a huge number of delayed or late projects in the region.

What is comforting for all investors however is the fact that with this judgement the Court has shown that it is going to adjudicate fairly in property disputes. I think everyone was concerned that the judiciary would have been under considerable pressure to ‘support’ developers to provide stability to the property markets in the region. The fact that they will pass judgement against developers in this way does cause a risk of significant capital flight from the region, something it really doesn’t need right now. However I believe that all investors should take comfort from the fact that the decision was made notwithstanding this fact, and that ultimately the fair and right decision was made irrespective  of extraneous events.

This should give all investors a great deal of comfort and I believe shows a level of maturity in Dubai’s overall governance that many people have been concerned may not existed.

You can read the article here.

Qld Government to amend legislation on project covenants

Property Council Press Release:

“The Queensland Government will amend the legislation to reinstate the right of developers to enforce covenants that are not in conflict with achieving improved environmental outcomes.

 We welcome this announcement by the Government and acknowledge the work of the Minister for Infrastructure and Planning Stirling Hinchliffe and his Cabinet colleagues in recognising this as a major issue for the industry and moving to make appropriate changes.

 This is a major win for the Property Council and we look forward to working with Minister Hinchliffe in identifying appropriate amendments.”

Using Testimonials Effectively

In this article we are going to look at a simple but under-utilised and often misused marketing tool – testimonials!

Before we even start I want you to immediately throw away all of the preconceived notions you have on testimonials. As mentioned above, testimonials are generally not used well, so you should consider the possibility that what you are doing now is either not working or, at least, not maximising the opportunities that they offer your business.

Here are our 10 rules for making testimonials work in your business:

1. If you do not ask you shall not receive

Just like asking for referrals, asking for testimonials is not the easiest thing for a salesperson to do. Good salespeople are naturally looking for the next opportunity and want to start talking to the next prospect, however; you need to discipline yourself (or your team) to ask for testimonials as often as possible. We would suggest creating an automatic follow up plan in your CRM software to allocate tasks to the relevant people in your business to obtain a testimonial after a sale or purchase.

2. Time is not always kind to you

As we all know, time is not always kind to us. You need to ask for a testimonial fairly shortly after the completion of a transaction. The euphoria of the deal will wear off quickly, so ensure you ask for the testimonial within 14 days of completion to get the best testimonials.

3. Put your testimonials into context

Sliding a testimonial letter under a prospect’s nose can be effective, but not nearly as effective as providing the letter together with your ‘story’ on the nature of the transaction and what you did that made the client so impressed. A testimonial is an opportunity for you to prove that you will do what you say you do. It is an opportunity to show why you are different. You need to assume that the prospect will question the quality of the testimonial and the independence of the writer. Taking a few minutes to verbally describe the transaction and your relationship with the people providing the testimonial will make all the difference.

Another great way to provide a testimonial is to relate it to a historical sale that you are using in your CMA (comparative market analysis). First of all, talk about the property and the price achieved and then provide the testimonial. It is all about putting the testimonial into context which makes it far more meaningful and believable.

4. Testimonials are not just Client Testimonials

Now I know that when I say testimonial, you are immediately thinking client testimonial. This is the first misconception. Client testimonials are but a portion of all of the testimonials you should have. If you are a project marketer you should have testimonials from other agents that you have worked with, advertising agencies and other professionals such as finance brokers and accountants. If you are a residential brokerage agent get testimonials from franchise representatives, other agents and even respected members of the community. They all help to demonstrate your professionalism, credibility and trustworthiness.

5. Testimonials have a use by date

You need to include dates on your testimonials to provide them with credibility. Client testimonials in particular generally start losing their impact after 3 to 6 months. So replenish with new ones at least every 6 months.

6. Reward people who provide testimonials

A good testimonial is tantamount to a referral. You should reward people who provide you with a testimonial as a sign of gratitude. A voucher at a local coffee shop or a simple bunch of flowers will suffice.

7. Use the full testimonial

Don’t be tempted to cut the seemingly bad or irrelevant parts of a testimonial out. Provide the full testimonial with the full name and details of the provider (ensure you have confirmed it is ok to supply their details). It will make it far more believable.

8. Start thinking multimedia

Written testimonials are the most common and practical, but certainly not the only way to present a testimonial. Consider using audio and video as a means of delivering a testimonial. You can syndicate this content on iTunes and Youtube as well, providing additional marketing benefits.

9. Use testimonials on your website

Don’t limit testimonials to your marketing presentations only. Maximise the benefits by putting them on your website and even consider including some particularly positive comments in your print marketing material. If you are getting great testimonials you should ensure you use them.

10. Create marketing material requesting testimonials

Create a poster and put it in the reception of your office requesting testimonials. Add a call to action asking for testimonials to your website. Add it to your email signature. Use your existing marketing channels to actively generate testimonials.

Action Plan:
Print out this article and work your way through these 10 points. If, by the end of the week, you have implemented an element of each item, you will be well on your way to using testimonials effectively in your business.

Real Estate Agents warned against breaching Spam Act in Australia

We have long advocated the use of opt in only databases used for email marketing. You simply can get far too much negative feedback, poor publicity and can even get blacklisted if your email marketing becomes SPAM.

Regardless of how you built your database, you simply must always include the ability to unsubscribe or instructions on how to unsubscribe. This is simply good business practice, and in some countries, a legal requirement. In Australia it has been law for some years now to include the ability to unsubscribe from any bulk marketing email and it is not starting to be rigorously enforced.

The Australian Communications and Media Authority has issued a formal warning to an Australian Real Estate Agency for breaching the Spam Act. Danielou Pty Ltd, trading as Elders Real Estate Wollongong, breached the Spam Act by sending emails without an unsubscribe facility.

The full press release is provided below:

“Real estate agency breaches the Spam Act

The Australian Communications and Media Authority has issued a formal warning to Danielou Pty Ltd, trading as Elders Real Estate Wollongong, following an investigation that found the real estate agency breached the Spam Act 2003 by sending commercial electronic messages without an unsubscribe facility.

‘This is the first enforcement measure taken against a real estate agent since an ACMA awareness campaign about unsolicited communications targeted at the real estate sector,’ said Chris Cheah, acting Chairman of the ACMA.

The campaign was held in response to the ACMA’s concerns about widespread non-compliance with marketing obligations by members of the real estate sector. The ACMA wrote to more than forty head offices of leading real estate franchisors and companies in 2009, informing them of key obligations and providing links to online training and resources to increase awareness of legal obligations and of the consequences of non-compliance.

‘It is disappointing that some real estate agents do not appear to have taken the opportunity to understand the requirements for complying with the Spam Act,’ Mr Cheah said.

The ACMA has a tiered approach to compliance and enforcement. While education is the first step, stronger enforcement action will be used if compliance is not achieved.

‘Real estate agents should consider themselves to be on notice,’ Mr Cheah added. ‘Members of the industry need to understand that, even when they are dealing with potential buyers on a one-to-one basis, these interactions are commercial and they need to comply with spam and telemarketing laws.’

Commercial electronic messages must be sent with the recipient’s consent and include a statement that the recipient can use an electronic address, provided in the message, to send an unsubscribe request. During the course of this investigation, the ACMA identified messages sent by Elders Real Estate Wollongong that did not contain unsubscribe wording to this effect.

The ACMA has taken a wide range of enforcement action against non-compliant ‘spammers’ in the last twelve months, including recent action in the Federal Court which resulted in significant penalties being imposed on both individuals and companies.

Under the Spam Act, potential penalties of up to $1.1 million per day may be imposed by the Federal Court for repeat offenders”

The simple rule is always include the following text or something to this effect:

Important Information: If you are not the intended recipient, please ignore this email. This communication has been prepared by . To unsubscribe from this email please reply with ‘unsubscribe’ in the subject line.

Tallest tower in the world opens today

The long-awaited opening of the Burj Dubai is scheduled to take place today.

Although the final height is not yet known, it is expected to be over 800 metres high and substantially the tallest building in the world.

It also seems that the opening may help the level of confidence in and about Dubai. Dubai has been hit incredibly hard by the GFC, and it badly needs a boost in confidence for its residents and the thousands of foreign investors who own property in Dubai. Perhaps the launch of Burj Dubai, coming at the start of a new year and as the GFC ends, heralds the start of a new era in Dubai’s growth. Lets hope so.

To tweet or not to tweet!

The property industry has been pondering for some time the importance of being active on twitter. I personally have equally been skeptical as to its benefits. I really question agents or consultants who think that there are a large pool of people who want to be bombarded with regular tweets on new listings, price changes etc. As a consumer, and a technically orientated one at that, I just can’t see how I benefit from that. Email alerts will do just fine and I get to read them when I want (the one exception I would make here is for rentals in particularly tight markets. In some cities I know of instances where people pretty much fall over themselves to find out about new rental properties when they come available. A tweet would be great for that).

However, as a technical company, we needed to give it a go so we set up a couple of Twitter Accounts a few months ago and got started.

Not much feedback and quite a few followers and then, out of the blue, a genuine enquiry! Yes that is right, a genuine enquiry from a real estate agency that had come across one of our tweets and then contacted us.

So I guess the proof is in the pudding as they say. Not a huge number of leads but certainly it is a start. So maybe my thinking on twitter and the value it offers is starting to change…..

By the way you can find us at @brightfoxhq