As we look at the news, sometimes it causes pause.  Recently the news reported the softening of the resale market by 27%.  That is a large number and for some not in our Realty Executives family it may even scare them.  What we are seeing throughout the Region is the people who succeed well above average are those who persist in staying focused and continually building their business. The recent Good News Gazette articles focused on individuals who are working on building their business.  If you look at last months Eagles’ Edition newsletter you will see, that through July 2010 thirty-nine individuals have closed over $100,000 dollars in gross commission and there are 110 Executives that are on track to do the same by year end.  This is great news! 

   What can we do to build business?  One way is to meet four new people a day for five days each week and ask if you may have their name and email address, so that you can update them monthly on the local real estate market.  When there is negative news about the general real estate market, the homeowners are willing to find out what is happening to real estate in their local market.  Load their contact information into Executive Edge and create and send a flyer each month on their market.  If you keep building up that email file in Executive Edge over a forty week period, you could collect 800 emails.  Imagine if 3% of those people needed real estate help sometime during the next twelve months.  That would be 24 people needing your help to find a home or sell their house.  If all 24 people were helped by you, you would make over $100,000 in gross commissions during that time frame.  This is great news!  Now, each morning we know there is a task we need to complete each day and that is to collect four emails before the day is over. 

   “Let’s get to work” is the theme of a fellow running for governor here in Florida.  If we got to work and collected the names of four individuals along with their emails each day and then routinely send them information about the market conditions, we will be very successful even in a struggling market.  We want to encourage you to never give up!  If all of us got out into the marketplace and met people we did not know, to let them know what we do for a living, and we are here to help them with their real estate needs, our business will improve by leaps and bounds!  Remember, we are here to help those who need to buy or sell real estate; we just need to let them know that we are the professionals to help them.

Now let’s talk about real estate:  There is still good news on the horizon.  Here are a few very positive pieces of information we can share with our buying and selling public, which may help them to make a good decision to either buy or sell real estate.

• Even though unemployment is too high, it is forecasted to be in low double digit range for the next year, showing stability
• Since the end of last year Realtor membership in the following states is decreasing: FL -3.55%, GA -12.34%, NC -6.08%, TN -5.25% and SC -8.85%. This equates to less people working on the available market, leaving more for Executives and this trend will continue
• Florida and South Carolina are showing slight uptick in membership since January, also showing stability
• Slight price increases are occurring in most markets
• New construction is still flat, bringing the market to resale houses
• The ten year bond will continue in the 2.5% to 3% range, keeping interest rates very low showing affordability
• Credit card debt is decreasing, strengthening mortgage approval potential
• Credit is still tight
• Corporations are sidelining cash
• Corporate profits continue to improve
• Sale of corporate jets and turboprop aircraft is up 33% over last year
• GDP growth is still positive, yet has slowed to 1.6%, and will remain below 3% for 2010
• Corporate inventory is replenishing, future inventories replacement will be gradual
• Teenage unemployment will remain high
• Stock market will move up and down in the near term; however, long term the market will continue upwards to be above 11,000 sometime during 2010

• Banks profits continue to improve, most of the earnings are by borrowing from the Feds and then loaning the Feds money by purchasing T-bills and keeping the difference
• Mortgage companies are having difficulty closing loans, due to the requirements placed on them by the federal government, so be persistent
• Appraisals vary depending on whether the appraiser uses ”Short Sales” and “Foreclosures” or only owner occupied homes not in distress
• Move the loan to a different lender if the appraisal is way to low and you are willing to bet a new appraisal will come in higher
• Cost of a barrel of oil is below $80 per barrel, leaving money in the pockets of the consumer at the pump
• Unit number of foreclosures will continue to increase; however the peak is near
• inventories are replenishing, CSX and Landstar are moving more freight

   Let your buyer or seller know the truth.  There is a market in real estate and now is the best time to buy or sell! We appreciate you and we are very excited about the future, the survivors reap the rewards!

Now that you have reviewed the above, take a minute and set aside the dates on your calendar for the Annual Regional gathering to be held in Savannah, Georgia. Executives and Broker/Owners are invited this year. The program will be Outstanding! We will be holding the meeting at the Savannah Hyatt Hotel on the Savannah River. Please set aside October 7th & 8th with the 9th specifically for business management for Broker/Owners. Please plan to attend. We would like to see everyone there. The market is turning and what a great opportunity to embrace a new and powerful tool which will increase our performance. Come and have a ball with other real estate professionals. Mark your calendar today and plan to attend. Please call the Region at 888 540-5300 for details and registering.

The Moderator was Bob Bill, VP, General Manager of Broker Services, Market Leader, Inc. and the Panelists were:

* Ben Kinney, Keller Williams

* Jeff Lobb, EXIT Realty

* Jim Browning, Realty Executives Mainstream

Jim has been using the services of RealtyGenerator lead generating program and is eating the lunch of his competitors. He loves every moment of it. Great Job Jim!

On another positive note Jim and Tuesday just announced the opening of their third office in Florida. The new office address is Realty Executives Mainstream 3718 Tamiami Trail, #B Charlotte Harbor, FL 33952. Jim attributes his success and growth to focusing on the people who need real estate help and then finding them the best product for the price.

The reputation of their company is impeccable. Jim’s Executives treat their customers as if they are the only people on earth. The customer bonds with the Executive resulting in a wonderful relationship building strong loyalty between the customer and the Executive.

Now let’s talk about real estate:  There is some very good news on the horizon.  Here are a few very positive pieces of information we can share with our buying and selling public that may help them to make a good decision to either buy or sell real estate.

• Even though unemployment is too high, it is forecasted to be in low double digit range for the next year, showing stability
• Since the end of last year Realtor membership in the following states is decreasing: FL -3.55%, GA -12.34%, NC -6.08%, TN -5.25% and SC -8.85%. This equates to less people working on the available market leaving more for Executives
• Florida and South Carolina are showing slight uptick in membership since January 
• Real estate sales units are inching upward
• Slight price increases are occurring in most markets
• New construction is flat bringing the market to resale’s
• The ten year bond has and will continue to hover in the 3% range
• Interest rates will remain low for the foreseeable future
• Corporate profits continue to improve and many corporations had double digit profits
• Corporations are sidelining cash
• Credit is still tight
• GDP growth will be between 2.5 to 3% for 2010
• Corporate inventory is replenishing, future inventories replacement will be gradual
• Teenage unemployment will remain high
• Stock market will move up and down in the near term; however, long term the market will continue upwards to be above 11,000 sometime during 2010

• Banks profits continue to improve
• Mortgage companies are having difficulty closing loans due to the requirements placed on them by the federal government, be patient
• Appraisals vary depending on whether the appraiser uses ”Short Sales” and “Foreclosures” or only owner occupied homes not in distress
• Even with the oil spill the cost of a barrel of oil is still in the normal range and supply is still greater than demand
• Unit number of foreclosures will continue to increase; however the peak is near
• CSX and Landstar are moving more freight, showing inventories are being replenished

   Let your buyer or seller know the truth.  There is a market in real estate and now is the best time to buy or sell! We appreciate you and we are very excited about the future, the survivors reap the rewards!

Here is an example. Recently a friend told Tony that he had put an offer on a home at the beach which was over 100 miles away. The friend forgot to sign the termite letter and the seller sold the property to someone else. Tony asked if he could look for properties at the beach for his friend and the friend said okay. After driving to the area and doing a search, Tony found that the house next door to the one the buyer lost was for sale and the buyer was able to purchase that property for much less than the one next door he had tried to buy. The great news is this house had the identical floor plan of the one the buyer lost.

Tony visits with people all the time to find out if they would like to invest in real estate. He found investors that are very interested in the foreclosure and short sale market. Banks are softening their positions on property the longer they are on their books. Tony has found out that earlier the bank wanted one number and then all of a sudden there is a change at the bank and properties are available for much less. If you prepare your investors, they will be ready when an opportunity surfaces and the investor can take advantage of that opportunity. Tony has the investor/buyer sign a Buyers Agreement with him for his protection. Tony has a few investors that if the numbers are just right they will resell the property quickly. Wow, more commission!

Tony stays in touch with his client base even though there does not seem to be much interest on the part of the client to do anything at the moment. Tony knows that in time they will have a need.

Tony found out that many investors do not like to work the court house steps for properties that are being auctioned off for back taxes. Tony represents the investor at the auction and then once the investor owns the property, he handles the sale.

Tony wanted me to mention that he has a personal coach. His name is Rich Rudnick, Smart Sales Solutions, who helped Tony be disciplined and accountable. In June Tony passed all of last years production and is on track to equal or surpass the total business that he did in 2007.

Congratulations Tony, this is truly Good News!

Tom Esdale and Ken Durkee just returned from an International Broker/Owner meeting in Phoenix, AZ.  It was great to be with the folks from the Southern Region.  Those with us were Jen Dollar of Orlando, Fl; Oscar Marti of Miami, Fl; Charles Motley of Knightdale, N.C.; Steve Johnston of Greensboro, N.C. and Carlton Purvis of Athens, Ga.  A special “Thank You” to Rich Rector and Glenn Melton for delivering a fantastic meeting!  We all came away from the meeting with our heads swimming with the great strides Realty Executives International is making to place us well ahead of our competition.  Here are just a few highlights of a three and half hour presentation we received on how Realty Executives is positioning us to be at the top of the list with substance when it comes to real estate technology.

Web Platform

• FLASH – 93% of all buyers using a REALTOR researches first online to search for homes.
• Realty Executives International has developed a state-of-the-art web platform that will enable us to connect our international listings. The web platform is unique to the real estate industry because it will link all of us together moving our brand to the top of real estate search optimization.
• This system will be operational for everyone by the NAR Convention this November.
• The platform is as sophisticated as your i-Phone - giving us unlimited capability to expand our awareness though all the Social Media outlets available now and in the future.
• As part of the technology initiative, a brand new, highly upgraded and sophisticated Executive webpage is being developed that will be highly interactive with all Social Media systems.
• The new Executive webpage format can include your profile, IDX, Blog, Twitter, Facebook, a link to Realtor.com, SearchforHomes.com and other Social Media plus bookmarking capability.
• The Executive webpage will be available on two levels – one for the consumer and internally to other Executives looking for professionals to handle their referrals.
• Executive webpage’s won’t be available until later this summer.  In the meantime, please update all of your personal information now in our system!
• REI listing search will be modified so Google will more readily recognize our listings.
• REI websites will have a “feedback” button for immediate consumer feedback.
• RealtyExecutives.com will have a translation option so that you can read any of the Realty Executives foreign websites in any language REI permits.
• Anyone in the world will be able to search REI listing from anywhere in to world to any of our international locations.

SmartSigns/Tags

• A brand new signage program called “SmartSigns” using SmartTag technology. The SmartTags will be available for your yard signs, your billboards and in your print media that are read by any mobile device giving instant data over the web to your customer including virtual tours, videos, and web links of anything you want to link to the SmartTag.
• Once a customer scans the “SmartTag” with their mobile device, you capture their phone number for an opportunity to call them back on your listing!
• Visit www.gettag.mobi to download the application to your smart phone to start using SmartTag technology today.

Timelines for Delivery

• New websites will be in beta testing starting late June/early July.
• Full launch and training on website initiatives to begin by August 30^th.
• September 30 to December 30 – Launch of Executive websites
• Realty Executives is positioning themselves to begin a marketing campaign beginning at the NAR Convention to drive the customer to Realty Executives websites to search for your listings!
• SmartSigns/Tags to be available within 90 days.

During the recent G-20 meeting in Toronto, Canada, the European Union nations stated that they wish to reduce their deficits significantly by 2014.   If they are serious about reducing government spending, we would see some improvement in the world economy.  Additionally, Americans will need to wait to see if Congress will reduce the amount of additional spending, over and above current revenue to the treasury, without raising taxes.  Recent surveys of the consumer shows that their confidence level has fallen to below the level of March 2010 and has given up the gains for the last 90 days.  As consumer confidence softens, the amount of discretionary spending by the consumer also softens.  Below is an article written by CNNMoney.com for you to review.

NEW YORK (CNNMoney.com) — A key measure of consumer confidence fell in June, reversing a three-month gain, as Americans remain nervous about the job market.

   The Conference Board, a New York-based research group, said its Consumer Confidence Index dropped to 52.9 in June from 62.7 in May. It was the lowest level since March, when the index stood at 52.3.

   “Increasing uncertainty and apprehension about the future state of the economy and labor market, no doubt a result of the recent slowdown in job growth, are the primary reasons for the sharp reversal in confidence,” Lynn Franco, director of the Conference Board Consumer Research Center, said in a statement.

   Consumer confidence had been recovering slowly since the index hit a record low of 25.3 in February 2009, but the gauge is still far from a reading above 90, which indicates the economy is stable and 100 or above, which indicates strong growth.

   Economists pay close attention to measures of consumer confidence as a proxy for consumer spending, which drives the bulk of the U.S. economy.

   “Today’s report on confidence provides little reason to expect a meaningful pickup in consumer spending in the near term,” said Jim Baird, partner and chief strategist at Plante Moran Financial Advisors.       “Consumers are still exceedingly nervous about the jobs market.”

   “Although the economy is growing, consumers recognize that employers remain hesitant to hire and jobs are still hard to come by,” Baird said.

Economists expect the government’s monthly jobs report for June to show a decline of 100,000 jobs after temporary Census hiring led to the biggest monthly job gain in ten years during May.

   Meanwhile, the government said last week that the economy grew at a slower pace in the first three months of this year than previously estimated.

   Gross domestic product, the broadest measure of the nation’s economic activity, grew at an annual rate of 2.7% in the first three months of 2010, according to the Commerce Department, down from the previous reading of a 3% rise. 

What does all this mean?  For the past two months I have been searching information outlets looking for data so that a trusted forecast could be made to our members.  The data is sound.  Here are the facts:   

• New construction will near 300,000 units for 2010, the lowest in unit count in years.
• Sales of merchandise will soften.
• Housing inventories will inch upward in the near term.
• The median price is up 4% in the past year but will flatten near term.
• New hires in the private sector are minimal.
• Housing interest rates will continue to be very favorable near term.
• GDP growth was 2.7% for the first quarter adjusted downward.
• Commercial real estate will continue to soften during 2010.
• We will remain in a buyers market for some time.
• Frugal spending will return short term.
• Stock market closed below 9,000.  
• The value of the dollar may have reached its floor and is beginning to strengthen.

• The Fed Chairman continues to hold interest rates at their current rate.
• Inflation is still flat, but expect some movement upward later in the year.
• Banks profits continue to improve.
• Appraisals have become more realistic; however, some appraisers still use foreclosures and short sales in their mix of comparables forcing values downward.
• Cost of a barrel of oil is still trading in the normal range and supply is still greater than demand.
• Remember, the BP oil spill never made it to market.
• Unit number of foreclosures will continue to increase short term awaiting a rebound in the job market.

   The public is hopeful that following the November elections, the new Congress will rein in government spending substantially.  Until the elections, the pubic is unsure about their financial future and the financial future of their children and grandchildren.  A wait and see attitude will creep into individual thinking for the near term, causing further slowing of the economy.  

   Here is the great news.  Maslow’s Hierarchy of Needs demonstrates that there are three items that everyone must have.  Those items are: food, shelter and clothing.  Fortunately, we are shelter specialists.  If the economy slows further, they will need our services even more than before.  Isn’t it great that you are positioned to help those consumers that need your help now?  What the consumer needs to hear from you is that now is the time to buy or sell a home and you are just the right person to help them.  The Southern Region wishes everyone the best during 2010!

   Igor and Marina have been successful business owners and entrepreneurs in Ontario, Canada for many years, but they ultimately plan to relocate to Florida. During the time that they have been visiting Southwest Florida, they fell in love with the area and decided to buy a second home there. More recently, they have seen the potential that is available in areas such as Naples and recognized the opportunities that owning their own real estate company could provide their family. They have two daughters, one of whom is a University student attending college in Fort Myers.

   The new Naples real estate company will be known as “Realty Executives Signature” and they are currently looking at office locations. The plan is to be open for business in the next few months. Igor and Marina are very happy to be new members of the franchise owners “family” of Realty Executives Southern Region and we are all delighted to have them join us in Florida. We hope everyone will welcome them aboard and get to meet them at our Annual Regional Conference in October.