How to answer top 10 questions

Matt DollingerPresident and Founder, Gearbox Consulting

“The simple visualization of complex data for things like real estate trends empower the real estate professional to educate their consumer and positions the agent as THE reliable source for this information.”

Isn’t the market coming to a standstill? I hear things have

been very slow so far this year.

NAR 8/2014

EXISTING Home Sales

NAR 8/2014

PENDING Home Sales

19.3

26.2

43.946.1

44.542.5

54.8

0

5

10

15

20

25

30

35

40

45

50

55

January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014

reator.org

Foot Traffic (indicator of future sales)

Where will 30-year mortgage rates likely be in 12 months?

Mortgage Rate Projections Analyst Projected Rate

2015 3Q

Fannie Mae 4.6% Freddie Mac 4.8% Mortgage Bankers Assoc 5.2% National Assoc of Realtors 5.2%

8/2014

Decade Average Rate Payment1970s 8.86% $1,5891980s 12.7% $2,1661990s 8.12% $1,4842000s 6.29% $1,237Sept 2014 4.10% $966

The average 30-year fixed mortgage rates and the approximate payment for a $200,000 mortgage. Payments are principal & interest only, based on a $200,000 fully amortizing mortgage.All terms are assumed to be 30 years.

Freddie Mac 8/2014

Historic Mortgage Rates by Decade

Are home values approaching a new bubble or will prices

continue to appreciate?

Prices Back to 2005 1Q Prices

Case Shiller 8/2014

Mark FlemingChief Economist for CoreLogic

"This reversion to normality that we are finally experiencing is expected

to continue across the country and should further alleviate concern over diminishing affordability and the

risk of another asset bubble."

Prices & Time Since The Peak

Source: CoreLogic Market Pulse 8.2014

Home Price Expectation

SurveyA nationwide panel of

over one hundred economists, real

estate experts and investment & market

strategists.

Home Price Expectation Survey 2014 3Q

PROJECTED Mean Percentage Appreciation

Home Price Expectation Survey 2014 3Q

Cumulative House Appreciation by 2018

19.4%

27.8%

19.5%

11.2%Pre-BubbleTrend

Bulls All Projections

Bears

Is it better for a buyer to wait until they save a bigger down

payment before they purchase a home?

1/2013 8/2014

Freddie MacProjected Rates

August 2014 – 2015 4Q

Freddie Mac 8/2014

30 Year Fixed Rate Mortgages

Freddie Mac Rates January 2013 – August 2014

Date Mortgage Interest Rate* P&I**

Today $250,000 4.10 1,208.00

Sept 2015 $260,000 4.8 1,364.13

*Average Commitment Rate per Freddie Mac **Principal and Interest Payment

$156.13Difference in Monthly Payment

Monthly Annually Over 30 Years

$156.13 $1,873.56 $56,207

Date Mortgage Interest Rate* P&I**

Today $500,000 4.10 2,415.99

Sept 2015 $520,000 4.8 2,728.26

*Average Commitment Rate per Freddie Mac **Principal and Interest Payment

$312.27Difference in Monthly Payment

Monthly Annually Over 30 Years

$312.27 $3,747.24 $112,417

6.00 $ 1,199 $ 1,169 $ 1,139 $ 1,109 $ 1,079

5.75 $ 1,167 $ 1,138 $ 1,109 $ 1,080 $ 1,050

5.50 $ 1,136 $ 1,107 $ 1,079 $ 1,050 $ 1,022

5.25 $ 1,104 $ 1,077 $ 1,049 $ 1,022 $ 994

5.00 $ 1,074 $ 1,047 $ 1,020 $ 993 $ 966

4.75 $ 1,043 $ 1,017 $ 991 $ 965 $ 939

4.50 $ 1,013 $ 988 $ 963 $ 937 $ 912

$ 200,000 $ 195,000 $ 190,000 $ 185,000 $ 180,000 -2.5% -5% -7.5% -10%

Buyer’s Purchasing PowerR

ATE

Principal and Interest Payments rounded to the nearest dollar amount.

6.00 $ 3,597 $ 3,507 $ 3,417 $ 3,328 $ 3,237

5.75 $ 3,501 $ 3,414 $ 3,326 $ 3,239 $ 3,151

5.50 $ 3,407 $ 3,322 $ 3,236 $ 3,151 $ 3,066

5.25 $ 3,313 $ 3,230 $ 3,148 $ 3,065 $ 2,982

5.00 $ 3,221 $ 3,140 $ 3,060 $ 2,979 $ 2,899

4.75 $ 3,130 $ 3,052 $ 2,973 $ 2,895 $ 2,817

4.50 $ 3,040 $ 2,964 $ 2,888 $ 2,812 $ 2,736

$ 600,000 $ 585,000 $ 570,000 $ 555,000 $ 540,000 -2.5% -5% -7.5% -10%

RA

TE

Principal and Interest Payments rounded to the nearest dollar amount.

Buyer’s Purchasing Power

Why do I need an agent when I can just as easily find the

house online myself?

NAR 2014

found their HOMEon the Internet

Percentage of Buyers who…

NAR 2014

Percentage of Buyers who…

used an AGENT

Cameron FindlayChief Economist at Discover Home Loans

“The industry is becoming more transparent in an effort to help

homebuyers become informed about changes that may affect their process. The sheer amount of information can

lead to confusion and stress.”

Inundated with Information% that feels overwhelmed by the amount of information available on home financing

Discover Financial 2014

“Access to all this information isn’t always a positive force. Sometimes, it can stall a buyer or make them question whether or not they want to be a buyer.”

- Fox Business News

Why can't we list at a higher price? We can always drop the price later if it doesn't

sell.

50 50.647.8

27.7

19.3

26.2

43.9

0

5

10

15

20

25

30

35

40

45

50

55

September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014

reator.org

Foot Traffic during the fall and winter

Won't we save a lot of money if we FSBO instead of listing

with an agent?

$184K

$230K

By FSBO By AGENT

*The ‘typical’ price is actually the average price in the survey. However, studies have shown that people are more likely to FSBO in markets with lower price points.

Typical Sold Price*FSBO vs. Agent

NAR 2014

found their HOMEon the Internet

Percentage of Buyers who…

NAR 2014

Percentage of Buyers who…

used an AGENT

I’m not sure if home ownership is still the

American Dream. What do you think?

15 ‘MAJOR’ REASONS TO OWN A HOMEas per a survey by the Joint Center for Housing Studies at Harvard University

* the reasons are in no particular order

www.KeepingCurrentMatters.com/trial

Is buying a home still a good investment for my family?

Financial Reasons to BuyReason Quote from Harvard Report

Housing is the one leveraged investment

available

“Homeownership allows households to amplify any appreciation on the value of their

homes by a leverage factor.”

You're paying for housing whether you own or rent

“Homeowners pay debt service to pay down their own principal while households that rent

pay down the principal of a landlord.”

Owning is usually a form of “forced savings”

“Having to make a housing payment one way or the other, owning a home can overcome

people’s tendency to defer savings.”

There are substantial tax benefits to owning

“Homeowners are able to deduct mortgage interest and property taxes from income.”

Owning is a hedge against inflation

“Housing costs and rents have tended over most time periods to go up at or higher than

the rate of inflation, making owning an attractive proposition.”

5

Federal Reserve

OVER 30X greaterthan renters

Homeowners Net Worth…

$174,500

$5,100

Homeowner Renter

An American Family’s

Net Worth

Federal Reserve

Gallup 4/2104

Best Long Term Investment

Gallup 4/2104

How do I know which agent I can truly trust to help me and

my family?

Marc DavisonCo-Founder 1000WATT Consulting

"Focus on brand marketing, content marketing and other more

intelligent means of engaging homebuyers and sellers."

STOP with the

Cherry Pie Recipes

BRANDING

Direct MAIL

Alexa Silva typically has about a dozen pieces up telling a story. Three years ago she wasn't in real estate.

She will sell 50-60 homes this year.

KCMKCM on the go!on the go!

“Two in three people researched prospective agents extensively online prior to working with them.” - Google