Who are your buyers and sellers?

We just got the latest copy of New Jersey Realtor magazine and a report on the NJ homebuyer and seller profile for the current market was particularly interesting for new agent.  They broke down who is buying, how and what did they buy, and how did buyers and sellers find and use their real estate agent.  Though the report isn't yet on line (though you can read last year's here), there were a couple of bullet points we wanted to point out:

Who is buying?   
According to the report, 44% of buyers were first-timers

What does this mean for you?
With almost half of the buyers being newbies, you really need to know how to handle these special clients, understanding their unique needs and concerns.

What are they buying?
"The typical home purchased in NJ was 1700 square feet, built in 1974, has 3 bedrooms and 2 bathrooms." And almost half of buyers over the age of 50 bought a home in an adult community.

What does this mean for you?
The housing stock in NJ is historically older homes, so get to know the ins and outs of what makes these homes tick, especially being able to identify a house have good 'bones.'  Really understand the inspection process to understand the difference between a small problem that is easily remedied and a big problem to steer clear from.  Also, with so many older homeowners choosing adult communities, this could be a great opportunity for an agent to specialize in.

How did they find information?
According to the report 92% of buyers used the internet in some way during their home search.  57% used mobile and cell websites in their search.  But even though the internet was helpful, 99% of buyers viewed their real estate agent as a useful source of information.

What does this mean for you?
Even though the internet is a wonderful resource for buyers, it is clear that you as an agent still serve a vitally important role, so make sure you are up to date on the market.  You and your listings need to have a well-thought out presence on the internet, since so many of your buyers will reference it.  And, with mobile searches on the rise, make sure your website is optimized for use on cell phones and tablets.  This is particularly important as Google is making big changes in how they list sites based on their mobile accessibility.

What did their search look like?
NJ buyers searched for 12 weeks and saw 10 homes.

What does this mean for you?
Spend as much time as you can to get a really good sense of what exactly your buyer is looking for.  Ask questions... and ask questions again to truly understand their needs and then target your home search to their goals.  And, if you're struggling to find that house, sit down and re-assess to make sure what they say they want is really what they want.

How did they find their real estate agent?
36% of buyers and 26% of sellers found their agents through a referral.  Only 11% of buyers and 18% of sellers used an agent they had worked with previously, but a vast majority in both groups would use the same agent again and would recommend that agent to others.  About two-thirds of buyers and sellers only interviewed one agent before selecting them to be their representative.

What does this mean for you?
Referrals are key, so make sure the people you know know that you are a great agent and will recommend you to your friends.  Also, engage in meaningful follow up with your clients even after the closing to stay fresh in their mind as they think of others who might need your services.  Finally, since it is typical to only interview one agent, it is all the more critical that you get that meeting, and then your listing presentation is really yours to lose.  

The bottom line...
Whatever your market, do some research to understand who your clients are and how the process of finding or selling a home works for them.  You'll be able to serve them better when you know their needs.

Top 10 List for Newbies

In honor of the final episodes of the David Letterman show, we thought we would celebrate the legend in our (far less funny) way with a Top 10 list for new real estate agents...

10)  Real estate is a lot more than just looking at pretty houses!
In order to get your license, you have to take a class (at least in NJ).  There, you won't learn how to price or stage a house... instead, you'll learn a bunch of laws and regulations.  And take tests... A LOT of tests.  If you haven't been to school in a while, it can be a real adjustment going back into the classroom!

9)  Find the right agency... which means one that is the right fit for your work ethic and personality.  It's gotta feel right ...but also has to work with you in terms of commission splits.  Make sure you know how those work as well as all the monthly fees and other costs you'll incur.

8) ... and then find a mentor.  You've taken a class, you've taken the tests, but you really don't know what you're doing.  Try to find someone at your company who will take you under his or her wing.  Whether it's an informal or formal arrangement, get the help.  You'll need it!

7.   It's a business... run it like one!
You may be super eager to run out and find a buyer or a seller and start showing houses.  But to secure a long future in this field, make sure you lay the foundation for a strong business model first.  Prepare a business plan and map out exactly how many transactions you will need to make in order to first recoup your start up costs... and then to make some money!

6.  You'll shell out a lot of money before you make any. 
The early costs quickly add up - real estate school, state exam, fingerprinting, license fees, MLS membership fees, office admin fees.  And it will likely take at least a few months from the beginning of your journey before money will come in.  So, if this is going to be your main source of income, make sure to have a little nest egg to live on.

5.  Lots of people have the same idea as you. 
Let's face it, as the market improves, more and more people look at real estate as a great career option.  You're probably one of those people!  You'll see them at your classes, networking events and in your office... and ultimately, they're your competition.  But just think... roughly half of those people won't make it past the first year.  Be part of the half that sticks it out!

4.  The more prepared you are in the good market, the more prepared you'll be when the market turns ...and it will.
We all have fresh memories of the real estate boom of the early 2000s... and the collective trauma of the crash that followed at the end of the decade.  It is likely that prices in your neighborhood are rising, and in some places, you might even be seeing the bidding wars of the ol' days.  But as good as it is now, it is inevitable that it will get bad again.  You can stay afloat during the downtimes by being prepared and having a strategy to get you through them.

3.  It's all about networking and contacts.
Order tons of business cards and hand them out at every opportunity.  Strike up conversations with everyone you meet... keeping in mind, that for every 12 impressions, you'll hopefully get two contracts.  And social media is key!  Learn how to connect to your contacts through Facebook, Twitter, Instagram, blogs, and whatever new format comes along.  The more networks you work... the more people you will touch!

2)  It's not a part-time job. 
Lots of us are moms who come to the business looking for a part-time way to make money while taking care of their children.  The reality is that it takes tons of (wo)man hours to really make your business work... and bring in money.  The good news is that the hours are flexible, so it is possible to raise your kids while working.  And a good deal of the hours you put in is in the form of networking - at the PTA, with community groups, etc. - and are things that you are doing anyway.

And finally...

1)  Don't be afraid to make mistakes. 
There is so much to learn when you first start out and it can be completely overwhelming.  We are lucky because we are working together and can bounce ideas off each other while sharing the learning process.  But, like you, we are still feeling our way through the ins and outs of this field... and will surely make mistakes along the way.  It's those mistakes, however, that help us grow and ultimately succeed!

Good luck!

Amy and Jill

How we got here...

It all started by a pool...

Last summer, the kids were swimming in a backyard pool while we were sitting on the side with towels, snacks, and sunscreen at the ready.  That day, the conversation turned to where it so often went:  what was going on with the neighborhood real estate market.

Sure, we caught up on the latest local gossip and talked about the quirks and delights of our kids.  But we also spent a lot of time chatting about things like, did you see how quickly that house down the street sold?  Or, I wonder why that house is still sitting on the market after such a long time?  And, it looks like we are getting more and more young families coming out here from NYC; that can only be good for home prices here.

That day by the pool, the light bulb turned on...

We both like following the real estate market.  We both love our town and neighboring communities.  We both encourage all our friends still in NYC to come out and live the good life in the 'burbs.

Maybe we should do this for a living...

The timing couldn't have been better.  Our kids were getting older and in school full time.  Neither of us were particularly interested in going back to our earlier careers as entertainment executives.  Real estate, with its entrepreneurial focus and more flexible schedule, felt like the right answer.

So we did it.

We enrolled in a local real estate licensing school, crammed pages and pages of facts and information into our heads over a four week period, and took the requisite tests to get our licenses.

Next step, sign up with a broker and company.  We knew someone at the local Keller Williams office, so that's where we started our search.  As it happened, that's where we ended our search too because we both took to the company immediately and signed with them.

And now we find ourselves official real estate agents!  We've been at this for less than a month and find ourselves alternately excited by the prospect of being in this business and overwhelmed by just how much we still have to learn.

Through this blog, we invite you to join us on the journey of our first year as agents.  We hope to paint a picture of what it's like to start out in real estate and how we make our way through this new and exciting field.  Along the way, whether you're interested in a career switch or just in real estate in general, we hope that you will ask us questions and suggest topics to cover.

One of our teachers recently told us that half of the new agents in his classroom wouldn't last a year in the business.  And we know that for all of our enthusiasm and excitement, this first year is going to be a real challenge.  But we're ready to take it on.

After all, we started all this at a swimming pool, so there's nothing else to do but JUMP IN!

- Amy and Jill