inbound - summer 2016
DESCRIPTION
A magazine for Realtors and real estate professionals in the central Georgia area.TRANSCRIPT
Cathy Lee Surveys Central Georgia’s Real Estate Horizon
A look at the inventory shortage and tips for surviving it.
Page 4
We get real about Customer Relationship Management systems and
why if you are not using one you are hemorrhaging leads.
Page 8
An introduction to the Gmail hosted CRM, Streak.
Page 12
Do you have a question about marketing? Ask me here!
Page 16
Looking for something? Check out this list of Realtor®-
recommended service providers in central Georgia.
Page 23
Wonder who put this magazine together? Find out here!
Inside Back Cover
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After this past year’s dramatic
24.7% spike in home sales
in Houston County, one might
assume that the market would
cool down slightly this year.
However, after four months we are
already seeing numbers that
suggest that this year may yield
even higher figures than the last.
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IN HOUSTON COUNTY, as
of April 30th, sales volume by units is up 1.5% and sales volume by price is up by 7.2% when compared to the first four months of last year - quite uncharacteristic of an election year which are notorious for a drop in home values. These numbers come in spite of what is probably the more notable characteristic of this year’s market – the ever shrinking inventory. The number of new listings since January is 12.9% lower than it was during the same period in 2015.
“New listings since January are 12.9% fewer than during the same
period in 2015.”
While at first this may be cause for some concern, the shortage of fresh homes doesn’t seem to be slowing the market down at all. In fact, this apparent drought has more in common with a cleansing rain, washing away both new listings and old ‘trouble’ listings without discrimination. Listings that have been on the market for more than 2000 days are being sold alongside listings that have been on the market for mere hours - the average and median days on market for this year’s sold residential properties is about 10 days fewer than last year. Less desirable homes are being sold (finally) and more desirable homes are being sold for an amount closer to their initial asking price, or higher. This has resulted in a 6.6% increase in the average sale price of local homes. But what does the inventory shortage mean for the rest of the year?
CONTINUED GROWTH FOR NEW
DEVELOPMENT First, it will continue to drive new development. Between the abundance of available land in the mid and southern parts of the county and the belief that Houston County and Veteran High Schools are the ‘right’ schools, the majority of this development will be in Bonaire and Kathleen. This will inevitably result in a change in zoning for these two schools and Warner Robins High School, potentially lowering the property values of certain border regions– but this is likely years away.
INCREASE IN RENT PRICES Second, apartment rental prices will go up as apartment complexes near capacity. This increase in demand for apartment rentals is a spillover from the demand for new development. For households waiting to purchase a newly built home it will still be cheaper to sign a one-year lease and go month to month as the finishing touches are placed on their new home than it would be to purchase a previously owned home only to have to sell it (probably in a contingency deal) a year (or more) later.
Figure 1: Rent increase over past 12 months. Price hikes correspond with points of lowest inventory.
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INCREASE IN ‘FLIPPING’ Third, private rentals (home rentals) will face mixed results. Properties that have been updated and well maintained will be able to follow the apartment complexes’ lead and fetch higher prices – even attached properties and properties in less desirable areas – while poorly maintained properties won’t be able to ask these higher prices. These less desirable properties will be forced to either sit uninhabited, be renovated, or be sold – most likely to an investor ready to renovate (flip) the property.
MORE HOUSEHOLDS CONSIDER BUYING
OVER RENTING Fourth, the limited supply of rental properties will push some households to consider a home purchase - but, the number of available homes is also limited. This is because of a number of factors. The primary source of residential listings come from existing occupied properties. However, many homeowners are either content with their current home (not likely to sell their home soon) or are waiting for the completion of new construction (will sell their home soon, but are waiting for their new home to be finished). Other sources of homes that normally supplement the housing inventory
include inherited homes and foreclosures. Unfortunately, many of these homes are being snatched up by investors at auction and never reach the market. Additionally, divorce rates are down. A lot. While this keeps the number of households seeking residences stable, it also means fewer homes are being put on the market as a result of divorces (it is common for judges to compel couples to sell their house during divorce proceedings). This also means that these two-income households have a higher combined income, meaning they can afford more expensive homes – i.e. new construction.
PRICES CONTINUE TO INCREASE AS
INVENTORY CONTINUES TO DROP Fifth, home prices will continue to climb as inventory continues to fall. The high demand for large homes in good condition
means that homes are likely to sell much faster and for a price that is closer to the initial asking price.
RESPONSE So how can one increase their personal inventory? The solution seems to come down to
good old-fashion prospecting.
COUNTY CLERK’S PUBLIC RECORDS Dig into the county clerk’s public records for inherited properties and foreclosures and
Figure 2: Housing prices continue to increase - but high end homes (top 5%) go down as builders focus on building more homes vs. building more expensive homes.
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pursue them aggressively. Convince the current owners that they can make more money listing the home on the MLS than by putting the home up for sale on an auction. Point out that there is a high demand due to a local housing shortage and that buyers are paying top dollar for local properties. You can also look for homes that are behind on property taxes.
NETWORK WITH INVESTORS You should also reach out to local investors as well as agents that have access to investors. This way, when you come across a home in bad condition that happens to be in a high demand area you can convince the owners to let an investor look at the property and make them an offer ‘as is’. The price should be well below the price of the neighbors (whose homes are presumably in far better condition) but more than they would fetch sending the house to auction. The investor won’t mind the slightly higher price if it guarantees they get first crack at a property likely to generate for them a high return on investment (ROI).
PAY PER CLICK ADS Use your Facebook Business Page or Google’s AdWords to take advantage of Pay Per Click ads that target certain demographics. With Facebook, you can
target people: by location (such as in Houston County, or in Warner Robins or by zip code), with certain relationship statuses (like ‘Divorced’ ‘It’s Complicated’ or ‘Separated’), with specific interests or jobs (real estate, investment, house flipping), and by age and gender. Google’s AdWords ads appear on Google Search results and Google Ads appear on webpages that share the keywords you selected when viewers
are viewing the site from a physical location that is within a geographical
area that you designate. Other restrictions can be applied to Google AdWords campaigns, but
may limit their
appearance on certain sites. These
two Pay Per Click systems let you create ads that only appear to people who meet your criteria (defined above) and you only pay for the ads when users click on them (not when they appear).
The ads typically cost a few cents, but when they use high competition keywords a bid system may be in place. These ads run for a
Figure 3: Suggested Ad Campaigns available on Facebook.
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set period of time or until a certain budget has been reached.
REACH OUT TO FSBOS Converting a for sale by owner is never easy - but if there were ever a time to try, it is when inventory is low.
SCOUT VACANT HOMES A quick look at Census data will give you an idea of just how many vacant housing units there are in an area. In 2010, Houston County had over eight thousand vacant residences. Most of these are likely apartments and rental properties, but many are residential properties that are ready to be flipped. Reach out to the owners of these abandoned residences and take them of their hands.
PARTNER WITH LOCAL BUILDERS As inventory continues to grow the more room there will be for new builders to enter the market. Make sure you are positioned to be their Realtor of choice when their time comes.
GET THE INSIDE TRACK WITH BANKS Banks can handle dozens, even hundreds of foreclosures a year. This can overwhelm even the largest of local banks. In a low inventory market these foreclosed properties can go for a much higher price than most banks believe, so build a
relationship with local banks. You can use this relationship to get access to foreclosures in-progress (like with the County Clerk’s public records) and point out which homes have the highest chances of selling for market value and in the shortest amount of time – allowing the bank to know which properties to fast track through their system and not send to auction.
CONCLUSION The inventory shortage isn’t going away anytime soon. Even if the perceivable demand is somehow met there is still the hidden demand (buyers that haven’t appeared on the market) to account for.
“The focus shouldn’t be on satisfying current buyers, but on cultivating
future leads.”
At this point, the focus shouldn’t be on just satisfying current buyers, but on cultivating future leads: revitalized vacant properties, flipping outdated rentals, forging partnerships and improving relationships, and fostering new builders.
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THE BIGGEST MISTAKE
REALTORS® MAKE By Joshua Hess
Customer Relationship Management (CRM) systems can streamline the process of taking a client from lead to close, but what happens after the transaction is complete? Most CRM systems offer tools to help a Realtor® keep in touch with past clients, but these tools are often underdeveloped or cumbersome to employ due to the lack of user feedback. As a result, many agents fail to maintain their relationships with clients past the point of sale, chosing to actively focus on existing leads at the expense of passively cultivating new leads. Every year, the National Association of Realtors diligently compiles statistical information into annual reports to aid Realtors® in prospecting leads and improving customer relationships. Included in these reports are things like: What percent of buyers would use their agent again and recommend their agent to others; What percent of buyers actually do refer their agent; What source buyers used
to find their Realtor®; and What percent of buyers actually do use their Realtor® again.
As a marketer, I pay close attention to all of the information that the NAR puts out – but the four pieces of information above I find incredibly telling. For example, while 88% of homebuyers say they would use their Realtor® again only about 12% actually do. Another statistic shows that in 2014 33% of all homesales were to first-time
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homebuyers, but 42% of home buyers that year used an agent that was referred to them by word of mouth. These statistics tell us that out of every 100 customers a Realtor® works with, 88 intend to work with them again, 12 actually do, at least nine go with a different Realtor® based upon someone’s recommendation, and 67 start their Realtor® search from scratch. (This, of course, is assuming that all 33% of first-time homebuyers rely exclusively on referrals and no other source such as internet searches, billboards, Zillow Premier agents, etc.)
So what causes those loyal 88% of customers to net out to just a 12% in repeat business? Poor after-sales custmer service. As you know, a new home isn’t something that most people purchase very often. In fact, the NAR statistics suggest that the average time between home purchases is around nine years. This suggets an average drop in customer loyalty of around 8.5% per year, based upon a straight line depreciation. However, it is far more likely that the erosion to loyalty is closer in rate to a double declining calculation – where the rate of loyalty loss starts high (in this case a drop of about 20% resulting in 68% loyalty after the first year) but tapers off in later years (another 15% in year two, 12% in year three, 9% in year four, 7% in year five, 6% in year six, etc).
Another effect of poor after-sales customer service is low referral rates. Think about how often you might hear someone recommend their church or hair stylist. Maybe you have heard people speak highly of a person or company that did some work on or around their home (remodel, fresh paint, new roof, landscaping). Perhaps you have heard someone mention an ‘honest’ mechanic that they use. What about that new restaurant that people seem to be talking about? People talk about these things because they have had good experiences and they are fresh on their minds. They go to church (presumably) once a week; their stylist about once a month; have their oil changed every couple of months; try new restaurants when one
opens up; have work done on their home as needed – but people only
buy a new home so often. People tend to give
referrals for about a month after the experience, sometimes longer if the experience was profoundly positive (first-time homebuyers tend to refer for longer
periods of time due primarily to the shear magnitide of the emotional/psychological experience). So while they may share their church experience everyweek indefinitely (due to the repeated exposure), they might only share their home buying experience (i.e. refer their agent) for a few weeks – maybe months – after the purchase.
With a well thought out, comprehensive, after-sales customer service system in place
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you can increase your chances of repeat customers, and prolong the period during which your customers continue to refer you. So what makes an after-sales customer service system comprehensive?
“CRMs can extend the period during which your customers continue to
refer you.”
IT BUILDS UPON AN EXISTING
RELATIONSHIP The first requirement of an after-sales customer service system is that the system enhances your existing relationship with your customers. If there is no existing relationship, or if you wait too long, then all you are doing is spamming their email and sending them junk mail – it’s not customer service, it’s harassment.
IT IS RELEVANT TO THE TARGETED
CUSTOMER
Sending the same email, postcard or otherwise using a cookie-cutter approach to keeping in touch with your past customers will make the contact less personal, less sincere, and thus less effective. Sending ‘graduation’ cards to every one of your past customers every year, regardless of the age of their children (if they even have children) or their personal accomplishments is just lazy. The contact needs to impact the individual, couple, or family. Younger people may appreciate an email more than older homeowners who might prefer a letter. Parents appreciate family oriented contact. Birthday cards are a cheap, but effective way to stay connected and make the contact relevant to the customer –
especially when there is a large family with birthdays spread throughout the year.
IT PROMOTES SHARING A hand-written birthday card is nice, but it isn’t the kind of thing that people share with friends. A gift card to a restaurant or to a favorite specialty retail place (such as GameStop, Academy Sports, or PetSmart) can create an experience that multiple people can experience or create a more lasting impact. Restaurants in particular are great for getting multiple people together - and people have a habit of saying who gave them a gift card and why. Tickets or coupons for group entertainment places like Six Flags, Gold Cup Bowling or Rigby’s can also be used to bring people together and create an opportunity for the Realtor’s® name to be dropped.
Do It Yourself (DIY) blogs and the like are also good sources of information worth sharing with customers that the customer might then share with their friends. The trick here is to make sure the DIY article leads them back to you. The easiest way to do this is to post the article on your Facebook Page (not profile) and then share it with your customer. Not only will they be able to easily share it with their Facebook friends, you will be able to track the interactions and pull new people to your page – often resulting in both post and page ‘likes’.
IT HAS LONGEVITY All too often people start things that they never finish. Realtors® are no exception – in fact, it seems like Realtors® are more prone to this than most, probably due in large part to their complex, ever changing, schedules. For a system to have longevity it must adapt. Doing the same thing over and over
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isn’t longevity, it’s repetition – and repetition isn’t memorable.
“Doing the same thing over and over isn’t longevity, it’s repetition – and
repetition isn’t memorable.”
This is why after-sales customer service systems are difficult to maintain. It is also why most large companies have an entire department devoted to it and why most small companies don’t have it all. Keep your content fresh, keep your contacts up-to-date, and don’t be afraid to change it up and incorporate new things.
IT MUST BE YOU There are a lot of Customer Relationship Management systems (CRMs) out there that can help, but you get out of them what you put in. Literally. If you don’t document your customers’ traits, then how can you rely upon the software to help you maintain and enhance your relationships with your customers? Many of the CRMs out there (like Top Producer) require a subscription to use, but they also tend to offer so many services that the average user rarely uses them all. These extra features tend to complicate the user interface making the software intimidating and exhausting to use. Other software (like Streak) may be free or cheap, but they lack the aesthetic appeal that many unjustly view as a measure of overall software sophistication – “it isn’t pretty therefore it isn’t as good”.
Ultimately, there isn’t going to be one single software that works for everyone – and there probably won’t be one piece of software that provides you with all of the features you want and none of the features that you don’t want. This is because everyone’s after-sales customer service system should be personalized not only to the customers it seeks to work with, but to the Realtor® that will be using it. The contact has to feel like the Realtor®, not like the software. That means that the overall system is likely to be made up of multiple software piecemealed together and held fast by a thick coating of ‘personal touch’. If the system isn’t you then it isn’t doing you any good – and it can’t be you if you didn’t play a strong role is its development.
CONCLUSION An effective after-sales customer service system can increase repeat patronage and prolong the period in which a past customer is likely to refer their Realtor®. The system must be personal and premeditated. It requires planning, evaluating, and adapting – and it can only be as effective as the Realtor® employing it allows it to be. Such a system can be time consuming, but if executed correctly it can streamline an entire career.
“CRMs can be time consuming, but if executed correctly it can streamline
an entire career.”
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PRODUCT REVIEW: STREAK – ‘CRM, INSIDE GMAIL’ By Joshua Hess
Google has done a lot to change the way we think about software integration. Now, thanks to Google’s Gmail API (Application Program Interface) you can plug your CRM right into your email.
Let’s face it, Google is everywhere. Aside from being the top search engine (by a wide margin) it offers a ton of free services and dozens of paid features. As if that wasn’t enough, programmers are finally taking advantage of Google’s API to create plugins (software that relies upon host software). One of my favorite plugins is Streak. With Streak I can keep track of all of my customers at a glance, set reminders, schedule email notifications, make appointments, track lead progress and much more, all from a customer-centered interface that is built right into Gmail – and it’s FREE!
Streak is a plugin for Gmail – that means you access it through your Gmail just like you would any of your Gmail folders. It only works in Chrome (for now) and requires the Streak extension (downloadable at Streak.com). Access to your Streak information can be granted to another Gmail user in the same way that you would share a file or folder in Google Drive (the interface is almost identical) – the user would have to have Streak installed and be accessing their Gmail through Chrome. This is incredibly useful for teams as it allows
everyone involved to access all information attached to specific transactions or events. There is not a smartphone app for Streak (yet). All data is stored in the cloud so a loss of hardware will not result in a loss of data.
GETTING STARTED Upon downloading Streak (which you can do from Streak.com) you will see a number of new options appear in your Gmail
interface in your left-side menu. To get started, look for ‘Pipelines’ and click ‘+New’. From
here you can select a template for your CRM or you can create a custom template – the Real Estate option is actually pretty good and, as you will see below, all of the templates are very customizable so there is no ‘wrong choice’ here.
STAGES AND BOXES Streak uses things called ‘Stages’ and ‘Boxes’. Boxes represent individual clients or projects. Visually, boxes resemble an entry in Gmail’s contacts, but with more available fields. Stages are steps that boxes move through as they progress. For example, you could set up a box to represent a specific listing. The earliest stage that it might appear in (where you create the box) might be the ‘Lead’ stage to denote that you have only recently acquired the lead – such as through lead router. As you contact the homeowners and they sign a listing agreement, receive offers, accept offers, and finally close their home, the box will move through the corresponding stages (‘listed’, ‘under contract’, ‘closed’ or however you name your stages). You have complete control over what stage the listing
Figure 4: Pipeline Menu
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is assigned to – you can even create new stages or skip stages as needed.
INTERFACE The stage interface can be color coded to your liking. (I use a Red to Green color scale to take clients from lead to active client.) You can even customize or add data fields to your ‘pipeline’. These fields will appear in all boxes in that pipeline (empty to begin with, but some fields may autofill over time). You can use these fields to track a variety of information from last contact, closing dates, primary agent (helpful for teams), and create formulas (in much the same way as Excel) that tally or compute information about that box.
The box interface has five sections. The first section contains a concise list of all of the pipeline fields – last contacted, what stage the box is in, etc.
The second section is for notes. This is a large area and has no character limit. Vast amounts of information or instructions can be added here.
The third, and probably the most useful section is the contents section. The contents section stores incoming and outgoing emails that relate to the box, files such as inspection reports, warranty info, listing contract, and photos (the files are actually stored in Google Drive, there is just
a link to those files here), meeting notes, phone call logs, and task/reminders associated with the box.
The fourth section is a quick-list of contacts associated with the box (from the example above it might include contact information for past offers, any repairs that were made, lenders, the homeowners, homeowner association representatives, builder/contractors, etc.).
The final section has links to other boxes related to the box – other listings by the same homeowner, the homeowner’s ‘buyer’ box, etc.
NEW FEATURES Streak also provides a number of new features for your Gmail interface. These features include: Email Tracking, Snippets (save portions of an email to be added to future emails), Snoozing (compose an email designate a time for it to be automatically sent), and a menu on your composition bar. If you need help using any of the features of this plugin just click the help menus attached to the feature or the master Streak menu at the top of the screen.
Figure 5: An example of a color coded Stage menu.
Figure 7: Pipeline Menu - Allows you to create/delete boxes and stages as well as generate progress reports and share the pipeline with other members of your team.
Figure 6: Streak Master menu - where you can find 'Help', 'Settings', 'Upgrade', and updates to the software.
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EMAIL TRACKING You will also see new options within the ‘Sent’ folder. These new options are:
Recently Viewed; All Tracked Emails; and Awaiting Reply. These options appear because of one
of Streak’s neatest features – email Tracking. I say neat because the feature’s value varies from user to user. Email tracking allows you to see who opens your
sent emails, when they open them (delivering a desktop notification within seconds of the email being accessed by anyone), where the user is physically located in the world (even mobile devices), what kind of device they are using (phone, laptop, electronic notepad), as well as other (seemingly) less usable information.
This feature is primarily useful as a means of confirming who has seen which emails and when. How one uses this information is up to
them.
The secondary purpose of this feature is to measure the
success of email campaigns. With this feature you can determine how many people open mass emails, how long after it is sent the email is opened, and who is the most interested in the content (you can tell how many times someone accesses the email. Because the tracking system also lets you know what kind of device certain users prefer as well as what email service they use. This information will help you tailor the format of your mass emails so that they have the greatest visual impact on your targets.
COMPOSITION MENU Finally, you will see new menu options on your messages during composition. These
options let you toggle tracking for that email, store portions of the email as ‘snippets’ which you can enter into future
emails, attach an email to one or more boxes, or set a timer (snooze) for the email so that is sent at a designated time in the future.
PROS & CONS Let’s start with the Cons. First, there is no app for mobile devices and the extension only works in the Chrome browser. This really impacts flexibility – preventing agents from maintaining Streak on the fly. It also only works in Gmail meaning that users of other email services such as Outlook or Yahoo will not be able to use the software. Streak also presupposes that the user has some basic coding/formula writing proficiency for users to make the most of ‘formula columns’ – but this has minimal impact on the over-all functionality of the software.
Figure 9: Email Tracker Display showing who accessed an email, when, how many times and where they were in the physical world when they opened the email.
Figure 8: Sent Mail menu with Streak options added.
Figure 10: Added Composition menu [Expanded].
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On the upside, Streak is fairly intuitive, has the best help interface I have ever seen and can be used for free without a trial period (but there are multiple paid versions – I suggest the Corporate Plan, if any – there is 14-day trial period for those who are curious). It has an import/export feature that allows you to take all of your data and import it to other software meaning that Streak plays well with other software like Mail Chimp (you can even use this export to create an import file for other email services) or import it from other email or CRM services so that nothing you have is lost. The email tracking services, snippet feature, and snooze features are also handy features that can save time and improve your customer responsiveness.
Overall, I would give Streak 4 out of 5 stars. Part of me feels that I am being generous, but I also feel as though I cannot stress enough the versatility of this software. Also, this software is living – it is still being developed – and is growing new features and expanding its own horizons as it does. Streak has the potential to become the ‘must have’ CRM for Google/Gmail users – but until it becomes more universally accessible (develops a mobile app) it will have to remain at four stars.
“Streak has the potential to become the ‘must have’ CRM for Gmail.”
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ASK A MARKETER Do you have a question about marketing? Just email: [email protected] or visit us on Facebook (Facebook.YourKickStart.org) or Twitter (Twitter.YourKickStart.org).
HOW MUCH SHOULD I SPEND ON
MARKETING?
“How much does marketing cost and where should I be spending my money?”
– Kathy Sellers, Coldwell Banker, SSK
How much you will need to spend on marketing and where those marketing dollars should go depends on your style of marketing. You don’t have to spend a lot to get a lot – you just have to spend a little the right way.
“You don’t have to spend a lot – you just have to spend a little the right
way.”
If you are the kind of person that prefers to work through referrals (friends of friends of friends) then paying for ‘Premier’ agent status on Zillow, or dumping money into Pay Per Click ads probably isn’t an efficient way to spend your money. Instead, focus on enhancing your relationships with your sphere of influence. According to the NAR, nearly 60% of leads are generated by word of mouth. Stay ‘top of mind’. Email blasts (MailChimp is both free and effective) can keep you in touch – as long as you offer your viewers a reason to keep opening those emails. Social media is another (free)
way to keep popping up in your sphere’s lives. If your customer base is a little older, then postcards or greeting cards may be the way to go. It may not be free, but if your sphere isn’t on Facebook or checking their email every day then you can’t rely upon those mediums to keep in touch. In this case, your exposure is equal to your sphere of influence. Your sphere will grow not only by adding clients, but also by your sphere itself being social. You are likely to spend less than $100 per month on marketing.
If you are new, or just don’t have a large sphere of influence from which to draw referrals, then your focus is likely on building your customer base. Pay Per Click ads, billboards, and ‘Premier’ agent status are great ways to be spotted over more established agents, but they can be VERY expensive. (I am told that being a premier agent on Zillow for our local 31088 zip code alone costs over $600 per month – and an effective PPC campaign can quickly add up to a 3 figure monthly bill.) Direct mail campaigns are fairly cheap and can make a positive impact on your marketing, but only if you know where to target. Digging into the county clerk’s public records for foreclosures and estate transfers is free and can generate some leads, but they are not likely to become a productive part of your sphere of influence. Social Media campaigns are free and can be effective, but you have to be dedicated to creating your own content and consistent in posting compelling content, which can be very time consuming and frustrating – especially if you are not familiar with these mediums. Sponsoring local events such as local sports teams, charity events, or community projects can create a lot of positive word of mouth, but if you don’t have an adequate web presence then the net result will be
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zero. (People may say good things about you, but they seldom remember contact info and if you can’t easily be found on the internet then how will anyone contact you?) In this case, your marketing costs are likely to be high – in terms of time or money or both. Either you are spending a lot of your time working with people and organizations to create ‘buzz’ or you are spending hundreds – even thousands of dollars a month to be seen on the internet. I suggest the former – not only will you generate leads, they will be backed by direct word of mouth and the social involvement can be a great escape from the stress.
There are dozens of ways to market yourself, but ultimately the long term benefits will correlate to the amount of immediate time, effort, and resources that you dedicate to them.
ARE PERSONAL WEBSITES WORTH
HAVING?
“I am considering having a real estate website built. How much should I spend
and is it worth it?” – Anonymous
The short answer is ‘No’, it is not worth it to have a personal website. Not because a real estate website can’t be worth the cost, but because of the amount of effort that goes into the long term maintenance of a website.
To have an effective website you must: continuously draw in new users; adjust your website to fit your target market; and create an environment conducive to conversion.
Drawing in new users is where most real estate websites fail. The sites fall short in two categories: SEO and target market. If you are considering a website, then you probably have heard of SEO – it stands for Search Engine Optimization. It is a general term for the dozens of things that must be done to increase your website’s ‘page rank’ and ensure relevant content. The first part, page rank, refers to a websites rank among all other websites and is measured by the number and value of the other websites that point to it. These are called ‘backlinks’.
The second part, relevant content, refers to the website’s indexable subject matter – text, images, videos – and is sometimes referred to under the umbrella term ‘keyword’. For your website to appear in a search engine query for ‘Real Estate in Warner Robins’ then the terms ‘Real Estate’ and ‘Warner Robins’ must appear multiple times in your website and its meta tag descriptions – otherwise the search won’t show your website.
The problem is that people view SEO as something that you either have or don’t have. However, SEO is actually specific to your target market. You can’t be search engine optimized without being optimized for something. This is where your target market comes in. When a real estate website falls short in terms of target market it is because they target individuals looking
“You can’t be search engine optimized without being optimized
for something.”
for real estate (or a Realtor®). It may seem like this is on point, but less than 5% of the
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population is likely to be looking for real estate at any given time. By focusing your marketing on this 5% today you are turning away the 95% that will be looking for real estate in the future. This means less web traffic and fewer leads. More to the point, this means that potential leads are likely to be picked up by another agent with a broader target market.
One of the best ways to organically broaden your website’s target market and simultaneously expand your relevant content is with a blog. Unfortunately, blogs have a lot of misconceptions about them. People tend to believe that to be a blogger you must be a great writer, have a lot to say, have a lot of time, or any number of other excuses they can come up with. Blogging isn’t hard – people just make it seem hard.
“Blogging isn’t hard – people just make it seem hard.”
It does require a measure of discipline, but it is actually pretty simple – especially for a Realtor®. Think about what a blog is. A blog is nothing more than a short story that informs the reader about a specific piece of information or subject matter. As a Realtor, this is what you do for your clients every day! Your entire job is to leverage your knowledge to their benefit. So unless you are rattling off facts and data like a robot, you are naturally sculpting the information into some kind of relatable framing device. You are creating a simple story – you are literally speaking the premise of a blog every time you answer a question. All you have to do is follow up your client interactions with a quick note session so
that you can flesh out that new blog article after taking care of your client. What’s more, using this method with help you identify both: areas of personal expertise and help you identify your marketing niche. By reflecting and elaborating upon your client experiences you will naturally define your own market segment and be better equipped to maximize your impact within that segment. More to the point, it will help you shape your website around your market’s needs.
Finally, you need conversion. Without it your website is useless. Conversion is the term for when consumers take that ‘next step’. They move just a little bit closer to being a customer. When websites fail to convert it is usually because they over reach - they ask too much of their potential client – or they use heavy handed methods of forcing conversion. Methods for conversion, by their nature, should not be subtle - but there is a huge difference in a big red button that reads ‘Order Now!’ and a popup (with an almost undetectable ‘cancel’ or ‘close’ button) that blocks out the entire website and demands that you offer up an email address to continue accessing the page. However, just because conversion shouldn’t be subtle doesn’t mean that it can’t be gradual. Websites over reach when the only way to convert customers is by calling the company or driving to a storefront. Not all potential customers are comfortable just jumping in like that. They want more information; they want more time to think. So when a website’s only means of conversion is ‘immediate contact’ they stand to lose leads. Websites that have multiple gradual conversion steps tend to yield better results than heavy handed websites. This is particularly true of websites that feature
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high dollar merchandise – like real estate. Instead of pressing someone to make immediate contact try and get them to subscribe to content – like a blog. You can continue to sculpt their knowledge and expectations regarding your industry and you can keep that ‘call now’ button on every page just waiting for them to be ready to act.
SHOULD I ADVERTISE ON A BILLBOARD?
“We were offered a spot on a digital billboard. Is a billboard good for
marketing?” – Anonymous
Billboards are great for marketing, but their application can be rather limited. Where billboards really shine is providing directions to a location – rarely are they effective as ‘call to action’ marketing. Think about the billboards you see on the interstate just outside of town – most of them are going to be directions to a location – “… ahead on left”, “Next Exit, then right”, “.7 Miles ahead”. There will, of course, be a few ‘top of mind’ billboards for places like restaurants. “Oh look. Those bipedal cows are offering swimming lessons in their shark infested, aboveground pool to beef eaters.” I even see, when elections are near, billboards for politicians – most of whom I have never heard of. When pertaining to marketing for real estate, however, I think that old real estate adage really applies – location, location, location. But first, let’s crunch some numbers.
For this example, we are going to use a specific billboard – a digital billboard by Lamar just south of Feagin Mill on S. Houston Lake Road facing north. The math
applied below is just an example of how to calculate potential marketing impact and should not be taken as an accurate count of households or traffic – it is just an estimate for the purposes of constructing a working model.
One of the first things we need to know before we can determine the value of a billboard is the number of potential leads that it can generate. According to Lamar’s website this billboard has a weekly exposure of 56,628 impressions. That (basically) means that 56,628 pairs of eyes may have looked at that billboard in a given week. We need to convert these sets of eyes into potential buyer units appropriate to real estate – households. The number of pairs of eyes is estimated based on traffic (probably counted through the use of a TIRTL or traffic cable), the social makeup of the area, and usage type. In this case, the area is a main thoroughfare for commutes to and from Robins AFB for residents south of Feagin Mill and west of Houston Lake. The homes in this area tend to be high priced and large (the household makeup is likely two income and multiple children). This all adds up to an estimated 1.6 people per vehicle meaning that the number of cars that passes through the area is close to 35,392. Since this area is primarily used for commutes it is likely that a large number of these cars are passing by five times a week for their commute and maybe a sixth time a week social obligations (although it is probably higher given how few large churches are on the south side). This means that the 35,392 cars that pass by are actually closer to 5,899 unique or different vehicles. For now, we are going to assume that we have whittled our 56,628 impressions down to 5,899 households. Now we need to figure out how many of
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these households are likely to sell their home during a time period relevant to a billboard’s ad time.
Normally the lease is a one-year lease, but for now we are going to measure in terms of a one-month cycle. In Houston County, the average annual home turnover rate is just over 4%. This particular area is a bit higher because of the higher demand and the short-lived purpose of living here – to put children through ‘the right’ high school. The average annual turnover rate for this area is actually closer to 5% - let’s call it an even 5%. That means that of those 5,899 households that pass by our billboard every day, only 295 are likely to sell their home this year – or less than 24 in any given month. So how many sellers find their Realtor® on a billboard? The NAR implies that less than 1% of sellers use an agent they saw on a billboard (the NAR doesn’t actually list ‘Billboard’ or other outdoor marketing – they simply list ‘Other’ for any marketing method that does not make up at least 1%). This would suggest that the billboard is likely to offer up less than 3 listings for the year – or .24 listings in a month. Unfortunately, this statistic is hard to rely upon since the use of billboards as a real estate marketing method is far from consistent across the country – but keep this little fact in mind for later.
Now let’s move away from the quantitative reasoning and into the qualitative. When one sees a billboard the brain automatically begins to prioritize the information. The brain processes (and consequently, more likely to recall) images before text, text before numbers. The brain will recognize and retain logos before faces (unless they know the person) but often ignore background images that are made of just
colors or abstract patterns. It will recognize and recall first names before last names unless the last name is prominent to the area (Matt Perry), has some other significance to the viewer, or can also be a first name (Mary Todd). The brain will recognize phone numbers as phone numbers and dollar amounts as dollar amounts because of context, but is not as likely to recall a phone number as it is a dollar amount. It will similarly sort website address and physical addresses. This means that when viewing a Realtors® billboard ad a person will remember things in roughly this order: Company Logo, Ethnicity/characteristics of the Realtor® (assumes a photo), a first name (but likely not the last name), that a phone number was present but likely only retaining the area code, the website address if the address is a phrase but less likely if the address is the Realtors® name or not recognizable as individual words that can be strung together as a thought. All of this means that if a Realtor is recalled at all from a billboard then their company logo and their first name are likely all that will be remembered. If this isn’t enough to track down the Realtor® then the billboard won’t do them any good.
A perfect example of the impact memory can make: the billboard used in this example is a digital billboard with 36 ads on 8 second rotations – meaning that a specific ad is displayed every 4 minutes and 48 seconds – so it is technically possible that commuters may never see a given ad slot, but unlikely. Of those 36 ads: 9 were for jewelry, 9 were for higher education and 18 were real estate related. Of those 18 real estate ads: 6 were for a specific Realtor®, 3 were for a different specific Realtor®, 3 were for a builder, and 6 were for 6
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different Realtors®. At first glance, it would seem that the Realtor® with 6 ad slots has the advantage, but that isn’t necessarily true. The second Realtor® mentioned, the one with 3 ad slots, and that last 6 Realtors® all work for companies with similar logos, Coldwell Banker. While the Realtors® know the difference between Robbins & Free and SSK, the average home seller has no clue. A Coldwell Banker office is a Coldwell Banker office in the same way that a McDonald’s is a McDonald’s. This becomes a significant factor for two reasons – one, the closest Coldwell Banker to the households in the target area is Robbins & Free and two, Robbins & Free is .7 miles ahead on the right after you pass the billboard. Home sellers, should they be so inclined, can, upon seeing the billboard, drive right into the first Coldwell Banker they see and get a Realtor® – regardless of which Realtor® they actually saw on the billboard. Even if they made it home and then looked for a Coldwell Banker, Robbins & Free is the closest office.
In conclusion, going back to the quantitative reasoning, those 15 real estate ad slots (the 18 mentioned sans the builder’s 3 slots), if divided evenly, would net around 19.7 leads per year per ad slot or 1.6 leads per month per ad slot. This, of course, assumes that all of these home sellers will rely exclusively upon the billboard and not use any other method of choosing a Realtor®. That means that no one finds an agent on Zillow, or gets a postcard in the mail or returns to the agent that sold them the house in the first place. You do the math.
WHAT IS THE DIFFERENCE BETWEEN
HIGH-DEF AND HIGH-RESOLUTION
IMAGES?
“My phone says it takes hi-resolution images. What does that mean, exactly?”
– Anonymous
Resolution is the number of pixels an image or screen has – hi-resolution means that the image has a resolution of 1920 x 1080 or greater. Resolution only means so much with regards to picture quality. Pixels in an image are equal in size, but pixels do not have a set size – they stretch or shrink depending on how the image is presented. Think about a brick wall. If I said that the brick wall was 10 bricks tall and 10 bricks wide how tall would the wall be? Well, that would depend on the size of the brick. If we are talking about cinderblocks, then the wall would be about 6’ 8” tall and 13’ 4” wide. If we were looking at ‘standard’ red bricks then the wall would be less than 2’ tall and 6’ 8” wide. (Neglecting mortar for both walls.) Resolution is not representative of the size of an image. Nor is resolution a true indicator of the quality (or clarity) of the image but the capacity for the quality of the image. The actual quality of the image is based on pixel density called definition.
To view an image, you must either see it on a screen or print it onto a surface. If viewing on a screen then the screen’s resolution and physical dimensions play a role in the clarity, or definition, of the image. For example, if you are looking at a small screen that has the same resolution of the image, such as the smart phone that you took the image with, then the image will probably look clear and crisp – it may even be hi
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definition (hi def). This depends upon the physical size of the screen. For an image to be considered ‘hi def’ it must achieve 300 ppi (pixels per inch). That means that for the image to considered hi def on your phone when your phone (and viewed image) have a resolution of 1920 x 1080, the standard (minimum) for hi-resolution, then the screen can be no larger than 6.4” x 3.6”.
Printing to a surface (like paper) is similar. For the printed image to be considered hi def it must still be 300 ppi (or greater). The difference between screen definition and printed definition is that where we were interested in the physical dimensions of the monitor and the monitor’s resolution, now we are focused on the physical printing size of the image and the printer’s maximum dpi (dots per inch) or lpi (lines per inch). (Dpi and lpi, for the purpose of this discussion, are essentially the same thing.)
Most ‘office’ printers have a maximum of 600 dpi or 1200 dpi. ‘Dots’, unlike pixels, have a set size. That size is relative to the printer’s maximum dpi – a 600 dpi printer has a dot size of 1/600th of an inch, a 1200 dpi printer has a dot size of 1/1200th of an inch.
Dpi is not the same as ppi. It is simply the maximum number of pixels that can be printed in an inch – it does not mean that the printer will automatically print an image at 600 ppi. The number of pixels per inch will still be restricted by the number of available pixels based on the size of image’s printing. For example, if we printed a 1” x 1” image – about the size of a person’s portrait or logo on a business card – and that image had a resolution of 300 x 300 then the image would be hi def as long as
the printer had the capacity to print 300+ dpi. If we printed this image on the above ‘office’ printer with 600 dpi, each of the image’s pixels would actually be printed to 4 ‘dots’ (a 2 dot by 2 dot square). If we took that same image and printed it as a 4” x 4” image, then we would have a 75 ppi image – which is common (but probably still a bit blurry). The pixels will now cover 64 dots (an 8 dot by 8 dot square).
At the end of the day the resolution of an image is the basis for image definition. To determine what resolution that is best (or minimum) for you then you need to know how you plan on using the photos. If you plan on printing playing card size images (roughly 3” x 2”) and expect (need) them to be hi def then you need to shoot the photos at 900 x 600 or greater (most cameras have a 960 x 640 setting). You may want to shoot at a slightly higher resolution if you plan on cropping the photo or if you plan on altering the image with software like Gimp or Photoshop (if you are not very good with these programs than you may want to shoot photos with very high resolutions – these programs tend to be more forgiving when there are more pixels to factor into alterations). You can always shrink an image after you have enhanced it, so don’t be afraid to shoot at a resolution far beyond what you need for your final result.
On a personal note, please don’t use phone cameras to take the majority of your photos. They are great for panoramas and ‘themed’ shots (such as a sepia filter) and taking selfies, but cell phone’s lack image quality. There is a reason that professional cameras cost more than cell phones. Need specific reasons? For one, you have no lens cap so there is no telling how clean your lens is – if you don’t know what I mean then
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look at your phone’s screen after you have been on it for just a few minutes, especially if you wear makeup or if you have been sweating or if there is a high pollen count that day or you don’t exclusively use a stylus. Think how protective you are of your screen and how often you clean your screen. Now think how often you clean your phone’s camera lens – which is on the other side of your phone from the screen you take such good care of. Want another reason? They are incredibly unprofessional. Imagine that you hire a contractor to build
an extension on to your home and he shows up without a hammer or saw and tries to hammer nails with his boot heel and cut boards with his car keys. Wouldn’t you lose confidence in his ability to get the job done correctly? Just like with the contractor, as a Realtor® you are the product – you are what people are buying when they hire you - your skills, your resources. If you don’t even have the right tools to do the job how can they trust you to do it correctly?
DIRECTORY Check out these services recommended by local Realtors®.
Are you a local Realtor® that would like to recommend a service provider in the central Georgia area? Submit your recommendation at: [email protected]
Accounting/Taxes
H&R Block, Gina McKinley www.hrblock.com (478) 953-4537
Appraisers No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Car Wash No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Carpet Cleaning No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Cleaning Services No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Construction No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Décor/Staging
Designed to Sell, January Smith www.StagedHomes.com/January (404) 580-9616 [email protected]
Fencing No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Flooring No Recommendations! Be the first to suggest a local provider for this service. [email protected]
HVAC
We Care Heating & Air, Matthew Collins www.WeCareHeatandAire.com (478) 218-CARE [email protected]
Home Inspectors
All Around Home Inspections www.AllAroundInspector.com (478) 333-6308 [email protected]
Home Repairs No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Insurance/Warranties No Recommendations! Be the first to suggest a local provider
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for this service. [email protected]
Landscaping No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Lenders
Bank of America, Geeta Shah Mortgage.BankofAmerica.com/GeetaShah (478) 335-1936 [email protected]
PHH Mortgage, Karen Camarota PHHMortgage.com/KarenCamarota (478) 997-9454 [email protected]
Locksmiths No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Marketing
Your KickStart, LLC www.YourKickStart.org (478) 714-1165 [email protected] “Check with us, grow with us!”
Movers
A Master Move, Jeremiah Helms www.amastermove.com (478) 256-6785 [email protected]
Good Guys Moving & Delivery www.GoodGuyMovers.com (478) 808-4566
Painters No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Pest Control No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Photography
7 Fifty Five Studios www.7FiftyFiveStudios.com (478) 954-8735 [email protected]
AA Photo Marketing Andrew Sleeth www.AAPhotoMarketing.com (478) 954-2146
Innovative Capture (478) 396-9552 [email protected]
Plumbing/Septic No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Pool Maintenance No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Roofers No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Tree Removal No Recommendations! Be the first to suggest a local provider for this service. [email protected]
Windows No Recommendations! Be the first to suggest a local provider for this service. [email protected]
RESOURCE LIST A growing list governing agencies in the central Georgia area. Long URLs may appear as ‘Click Here’ to save space and keep the page clean. Some secure links may require the user
to take additional steps or have access to a password to continue. See instructions where available. Submit corrections or additional information to: [email protected]
Bibb County
Board of Education www.bcsdk12.net Zoning Information Click Here
Chamber of Commerce maconchamber.com
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City Hall www.maconbibb.us
County Clerk Public Records Index Search Click Here (Sign in as ‘Guest’ and click ‘Index Records’.)
Tax Assessor Site www.qpublic.net/bibb/
Water Authority, Macon www.maconwater.org
Houston County
Board of Education www.hcbe.net Zoning Information Click Here
Chamber of Commerce – Perry www.perrygachamber.com
Chamber of Commerce – Warner Robins www.robinsregion.com
City Hall – Perry www.perry-ga.gov
City Hall – Warner Robins www.wrga.gov
County Clerk Public Records Index Search Click Here (Click the ‘Advanced’ tab at the top of the page.)
Tax Assessor Site www.qpublic.net/ga/houston/
Peach County
Board of Education www.peachschools.org Zoning Information Click Here
Chamber of Commerce www.peachchamber.com
City Hall www.byronga.com
County Clerk Public Records Index Search (Unknown. Submit at: [email protected])
Tax Assessor Site www.qpublic.net/ga/peach/ (Requires Password.)
Utilities
AT&T www.att.com
Cox Cable www.cox.com
Flint Electric www.flintenergies.com
Georgia Power www.georgiapower.com
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SPECIAL THANKS TO…
Cathy Lee
Roxana Shepley
Ilia Durham
Phyllis Barker
Donn and Donna Lewis
Julie Noel-Hastings
Beverly Hicks
Cindy Lasseter-Gibbs
Sandi Coburn
Jenny Bryant
Allen Hickman
Tim Bailey
FOR THEIR PATRONAGE Thank you for choosing Your KickStart, LLC in our first year and sticking with us ever since. Without you, our growth over the past two years, as well as our current success, would not be possible. We look forward to continuing to serve you in the future!
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ABOUT THE EDITOR By Carly Lee
Joshua Michaels Hess is the owner and founder of Your Kickstart, LLC. Josh leverages his background in mathematics, statistical analysis, logistics, and computer science to make real estate marketing more
accessible and efficient. He currently lives in Warner Robins, GA where he continues to build his business.
Your KickStart, LLC began as ‘KickStart’ in Macon, Georgia as part of the Central Georgia Homefront (part of the Veteran Leader Corps a division of AmeriCorps) as an entrepreneurial program for Armed Service Members transitioning out of the military and into the civilian workforce. Due to a lack of funding the program was delayed in favor of enhancing existing food, shelter and workforce development programs.
Josh founded Your Kickstart, LLC (in its current form) in 2013 (after completing his Veteran Leader Corps contract) as a way to make some money while working on his accounting degree at Macon State College (now Middle Georgia State University). He began his business by making postcards for real estate agents at the local Coldwell Banker, SSK. The business quickly took off and began morphing into a way to help agents market themselves through social media and direct mail campaigns.
Due to the success of Your Kickstart, LLC Josh decided to continue the business after he
graduated from Middle Georgia State University with a Bachelor’s of Science in Business & Information Technology with a focus in Accounting. Josh continues to make Your Kickstart, LLC a success with a loyal clientele, affordable prices, and exemplary work and attention to detail.
A huge part of Your KickStart, LLCs success is due to BuyNet, a recursive algorithm that compiles data from NAR statistics, local public records, and census data to determine the highest value residences for targeted direct mail campaigns.
Although Josh mainly works with agents at Coldwell Banker, SSK, he also assists local small businesses, and is looking to expand to other real estate offices.
