TEAM EMPOWERMENT MORTGAGE CHATTER: Jan. 6: Employment and the affect on the Market; HOW SHOULD YOUR HOME BE MARKETED?

“People with goals succeed because they know where they are going… It’s as simple as that.”
– Earl Nightingale

Fixed-income prices went down yesterday, and rates moved higher, after the private-sector jobs report from ADP painted a brighter picture of the U.S. economy. The 10-yr yield hit 3.50%, although it finally closed at 3.48%, and current coupon mortgage-backed securities dropped by about .75 in price. 4.5% conventional securities, which would include 4.75-5.125% 30-yr mortgages, are trading around a 1.5 point premium (101.50). .

The report showed an expansion of 297,000 jobs in December, according to payroll processor ADP. That was nearly triple economists’ consensus forecast, and caused economist to ratchet up their estimates for tomorrow’s nonfarm payrolls data. Estimates now are coming in around 175,000 for a pick-up in non-farm employment instead of the 140,000 prior to the ADP number. Still, keep in mind that historically the ADP number has not had the best track record for predicting the government’s official report. Should the payrolls report tomorrow turn out to be strong, it is likely to raise questions about how much longer the Federal Reserve will conduct its Treasury buying program to stimulate the economy, and stimulate conjecture about the Fed possibly raising short term rates.

We were seeing a little bit of bounce here this morning after Wednesday’s sell-off, and the yield on the 10-yr had moved from a close Wednesday of 3.48% down to 3.43%. At 5:30AM PST we had our usual weekly jobless claims, which is about the only scheduled economic news for the day aside from next week’s auction amounts. Weekly Jobless Claims came in at 409,000 from a revised 391k, up 18k. The 4-week moving average dropped 3,500. After the number we find the 10-yr still sitting around 3.43% and MBS prices better by about .250.

HOW SHOULD YOUR HOME BE MARKETED?

Differentiating a home from the massive inventory is difficult. In a world of information overload, building excitement about a single home (when there are “three just like it“ for sale on the same block) is a monumental task. Really, MARKETING a home is an agent‘s primary job. I mean, agents don‘t determine price (the buyer does that), but agents know the role that price pays in a home‘s marketing.

Marketing is what gets prospective buyers to look at a home. Better marketing, more prospective purchasers see a home. More prospective purchasers (i.e. more demand) ensures the highest possible sales price for the sellers (because they have limited supply- their one home).

Most agents take a shotgun approach. Market the home in general print publications. Get on the local MLS. Promote the house on 50 different internet search websites. Drive traffic to their personal or company websites. Run the standard Open House. And your home is now “present” among the 1000s of other homes that are competing for buyer attention. You can kill your prey (that ONE perfect buyer for your home) with a shotgun, but you are going to have more success with a rifle..a rifle with a laser guidance system.

Some “outside the box“ approaches to Target Marketing:

Geographic Marketing – The best agents are aware of migration patterns. They know that “most people who buy in a neighborhood, come from___________.“ Usually people move from one part of town to another (an in-town upgrade). They already know the schools, shopping and houses of worship. That is obvious, isn‘t it? But, top agents know what other towns historically are feeding new buyers into your neighborhood. And they have a marketing plan that addresses that phenomenon.

Employment Marketing – In most marketplaces, there is a type of buyer profile that is moving into a neighborhood. It‘s logical because of income levels, job security, proximity to the place of work, and so on. Maybe it is law enforcement personnel, or teachers, or doctors. Is your agent finding unique publications, websites or Facebook Pages to promote your home on to make the type of likely employment of a buyer be cognoscente of your home?

Generational Marketing – Most homes have an appeal to buyers at a certain stage of life. Single, married, married with kids, empty nesters, etc. How does your agent‘s marketing plan excite someone based on their stage of life? 50 websites isn‘t enough. Facebook Fan Pages? Print publications that target that segment? Segmented databases (of renters, as an example)? Text messaging? Public Seminars?

By marketing in non-traditional ways to TARGET the most likely buyer of a home, you can escape the clutter of the arena everyone else is competing in AND increase the likelihood of grabbing the attention of an actual buyer. Geography, Employment and Generational approaches need to be examined. The professional agent of today has incorporated some, or all, of these concepts into their business. And today, you need the most professional of agent working on your behalf.