LIVE From
Companywide
Webinar
Weichert, Realtors Morris Plains,
NJ
Real Estate Market Update
Jacé Botti, Head of Residential Sales
2013 Even Better!
Welcome
Dominick Prevete
Carlo Siracusa
Regional Vice President
Northern New Jersey
Sales Manager
Corp Headquarters Res Sales, NJ
February 2013 Real Estate Headlines
February 2013 Real Estate Headlines
From Lawrence Yun, NAR chief economist. [NAR Release 2/11/13]
• “Unsold listing inventory is the lowest level in 12 years.”
• “In fact, buyer traffic is 40 percent above a year ago.”
• “Total housing inventory at the end of January fell 4.9
percent…which represents a 4.2 month supply. It’s the
lowest housing supply since April 2005.”
February 2013 Real Estate Headlines
February 2013 Real Estate Headlines
6.0%
4.0%
2.0%
5.5%
Year-over-Year Change in Prices
Increase of
7.3%
Jan for
Feb 2012
Mar
Apr
4.3%
3.6%
2.0%
May
1.1%
0.6%
0.0%
-0.5%
-2.0%
-1.7%
-2.5%
-4.0%
-3.9%
-3.5%
-6.0%
S&P Case Shiller 2/2013
Jun
Jul
Aug
Sep
Oct
Nov
Spring 2013 Market Conditions
• Dramatically reduced listing inventory levels.
• Multiple Offers on the vast majority of houses
going under contract.
• Greater number of Exclusive Listings taken by
competitors.
• Heavy buyer demand especially in the more
popular neighborhoods.
Absorption Rates by Region
Absorption Rate by Region
February 2013 vs February 2012
25
20.9
20
16.6
15
13.8
12.4
10
11.7
11.7
11.6
8.9
8.5
7.2
7.1
14.2
13.2
7.2
8.8
6.2
5
3
3.4
2.0
1.8
0
Ashby
Bixon
McDonald
Minsky
Bilek
Feb-12
Local MLS
Prevete
Feb-13
Waters
Williams
Green
Chappell
Most Affordable Listings
Virtually No Inventory
All Markets
Why is this
Happening?
Why is This Happening?
• Improved job market
• Fiscal Cliff behind us
• Consumer Affordability and stronger
consumer confidence
• Post election pent up demand
• Low interest rates
• Overall positive real estate industry news
• Wasn’t the world suppose to end on 12/21/12
according to the Mayan calendar?
2013 Real Estate Market
Mentally Shift
into a
Different
Gear
Get Listings
Go Out After Them
How?
Increase Our
Calling to Prospect
for Listings
When?
SIGN UP TODAY!
Your Sales Managers will be holding
TWO NEW CALL SESSIONS
EACH WEEK
New strategies for calling and getting appointments
Exclusive Weichert Listing Agreement
Local MLS
Exclusive Weichert Listing Agreement
Rules of the Road
What you can do:
What you cannot do:
• Install a lawn sign
• Sell to another Weichert Agent
• Sign Agreement period through
first Open House date
• Only accept Open House Guests
who will work with Weichert
Agent in Dual Agency Capacity
• List the Home on Weichert.com
• Conduct office caravan
Local MLS
• Sell to another Brand X
Agent
• Ignore MLS guidelines
to recording listing.
Let ‘Em Pay
Use An
Escalation Clause Addendum
on
EVERY Contract of Sale*
*in states where we can use them.
Weichert’s Unique Negotiation Technique
Escalation
Clause
Addendum
Escalation Clause Dialogue
Dialogue when speaking to buyers:
“When faced with these extremely low levels
of available inventory, there is a very real
chance there will be additional buyers for
the home you want.”
“This is why I include an escalation clause
in every contract of sale I present.”
Escalation Clause Dialogue
What is an escalation clause:
“An escalation clause is simple
language we include in your offer that
authorizes your predetermined bid
increments over all of the other bids
up to your maximum purchase price.”
Escalation Clause Addendum by State
FORM TITLE
WEICHERT OR BOARD
FORM
STATE
FORM #
CT
N/A
N/A
DC
1319
Escalation Clause
DE
T293
MD
1319
NJ
T293
Addendum to
Contract of Sale
(Multiple Offer
Escalation Clause)
Purchase Price
Board - Maryland
Escalation Addendum Association of
REALTORS®
Addendum to
Weichert Form
Contract of Sale
(Multiple Offer
Escalation Clause)
COMMENTS
No legal prohibition of the Escalation
Clause. Needs to be tailored to offer of
purchase industry practice.
Board - Greater
Capital Area
Association of
REALTORS®
Weichert Form
This form states for use in NJ and PA
only. We may need verification from Legal
as to whether it can be used in DE.
Under Policy and Procedure there is a
"Multiple Offer Addendum" policy
available.
Escalation Clause Addendum by State
FORM TITLE
WEICHERT OR BOARD
FORM
STATE
FORM #
NY
N/A
N/A
PA
T293
Addendum to
Contract of Sale
(Multiple Offer
Escalation Clause)
Weichert Form
VA
K1306
Escalation Addendum
Board - Northern
Virginia Association
of REALTORS®
COMMENTS
Escalation clauses can be used in form
documents containing language that
makes the clause subject to attorney
review and provides for limits on the
escalation of price offer(s). Agents
should avoid drafting escalation clauses
that are not fill-in-the-blank form
documents. Forms recommended by a
joint committee of the bar association and
realtors association in the applicable
county are acceptable, subject to
Weichert's approval.
Under Policy and Procedure there is a
"Multiple Offer Addendum" policy
available.
Escalation Clause
• NJ Form: Addendum to
Contract of Sale (Multiple
Offer Escalation) T-293
Forms Online
• PA Form: Addendum to
Contract of Sale (Multiple
Offer Escalation) T-293 Zip
Forms.
• MD/DC Form: GCAARMC
1319 form on Zip Forms.
• VA Form: K1306 form on
Zip Forms.
Have you ever used Ebay?
You don’t always pay your “maximum”
Increase your offer just enough to be
the high bidder:
You set your offer, the bid increments
and your maximum price up front:
Escalation Clause
Kevin Long
Sales Associate
Morristown East, NJ
• $449,000 Asking Price.
• 6 Offers.
• $460,000 Offer with
Escalation of $5,000 over
best offer up to $500,500.
• Highest other bid was
$468,000.
• Kevin’s buyer wins at
$473,000.
Call to Action
• Let ‘Em Pay!
• Plan on every offer being a multiple offer.
• Incorporate Escalation Clause Addendum with
every offer.
• Try to get Exclusive Listing until your first
Open House, there’s a good chance that you’ll
sell it yourself.
• Get Listings by going out after them.
• Participate in your newly formatted Listing
Prospecting Call Sessions.
Weichert’s Sales Leadership
Spring 2013
• New Weekly Call Sessions for Prospecting for
Listings.
– New techniques for making listing appointments
– Sales Managers provide names/telephone numbers
for local markets
• New Support of Weichert Exclusive Listings
– OSSii Exclusive System which provides our
exclusive listing inventory
– Sales Manager Training on how to get more
Weichert’s Sales Leadership
• New Training and Support for Escalation
Clause Addendum
– Dialogue for Buyers
– Sales Manager support overcoming objections.
“We are not confused
about what’s happening
here…the next 10 years
will be fabulous!”
Let us take you by the
hand and lead you
through it…
Jim Weichert
Founder and President
Thank You for Your Time Today