Holiday Speak

December 3, 2014

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CHAMBERSBURG OFFICE SALES

MEETING

2014 NARReport

HolidaySpeak

EscalationClauses

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PRICE ESCALATION CLAUSES

New Listing – The dreaded ‘cards on the counter’

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• Consider using a ‘Price

Escalation Clause’ Addendum

• If competing with another

offer, your original offer may

be modified to automatically

put your best foot forward

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Paragraph 1

Tells the Seller that if the original agreement is signed, the Price

Escalation Clause does not apply

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Paragraph 2

1. Indicates the amount that your Buyer’s offer may be

modified to beat out competing offers

2. Indicates the maximum that your Buyer will modify their

offer

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Paragraph 3

Indicates how your buyer will handle the mortgage amount in

the original agreement (check all that apply)

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Paragraph 4

• Mortgage Required – Always check off the box to make sure

that your Buyer doesn’t pay too much for the property

• Mortgage Waived – Use CAUTION

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Paragraph 5

If the Seller is bumping up the price indicated in your

agreement, they must provide proof of the highest competing

offer

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Paragraph 6

• If the Seller is bumping up the price indicated in your

agreement, they will insert the new price at the bottom of the

addendum and Buyer agrees to revise the original agreement

of sale accordingly. If Buyer does not revise original

agreement, they are in DEFAULT

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Signature Lines

• Buyer – Signs with offer

• Seller – Only signs if Buyers offer was modified and is

accepted

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2014 PROFILE OF HOMEBUYERS AND SELLERS

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PENT UP DEMAND

2000 2013

Existing Home

Sales

5.2 m 5.1 m

New Home Sales 880 K 430 K

Mortgage Rates 8.0% 4.0%

Payroll Jobs 132.0 m 136.4 m

Population 282 m 316 m

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TENURE REMAINS HIGH

6 6 6 6 6 6

7

8

9 9 9

10

0

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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COMPROMISES ON HOME PURCHASE

All

Buyers

First-time

Buyers

Repeat

Buyers

Price of home 23% 25% 21%

Size of home 20 27 17

Condition of home 18 19 17

Lot size 16 18 15

Style of home 16 18 14

Distance from job 14 18 11

Distance from friends or family 7 9 6

Quality of the neighborhood 5 6 5

Quality of the schools 4 7 2

Distance from school 2 3 1

None - Made no compromises 33 25 36

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AGENT ASSISTED SALES REMAINS HIGH

19 17 15 18 16 13 14 14 13 12 12 13 11 9 10 9 9 9

77 82 81 8077 79

83 82 85 84 85 84 85 88 87 88 88 88

4 1 4 47 8

4 4 2 3 3 3 4 3 3 2 3 2

0

10

20

30

40

50

60

70

80

90

100

All FSBO (For-sale-by-owner) Agent-assisted Other

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PERSONAL RECOMMENDATIONS ARE KEY

How buyers found agent:

40% referred by or is a friend, neighbor, relative

12% used agent they had previously worked with

Selling side:

38% referred by or is a friend, neighbor, relative

22% used an agent they had previously used to buy/sell a home

What you tell us:

21% of business from past consumers and clients

21% of business from referrals from past consumers and clients

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NUMBER OF AGENTS INTERVIEWED

0%

10%

20%

30%

40%

50%

60%

70%

One Two Three Four or more

67%

20%

8%4%

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FREQUENCY OF USE

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Holiday Speak

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HOLIDAY GATHERINGS MEAN . . .

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HOLIDAYS ALSO MEAN . . .

Conversations about

• kids

• job

• family

• and . . .

REAL ESTATE

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WHAT HAVE THEY HEARDTHIS YEAR?

New York TimesForeclosures Cripple Recovery

Los Angeles TimesShortage of Homes for Buyers in the Market

Washington PostReal Estate Tax Incentives on the Chopping Block

Chicago TribuneReal Estate Prices to Drop Again

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ARE YOU PREPARED TO TALKREAL ESTATE?

Will you look like this . . . ? . . . or this . . . ?

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PREPARATION

“If I had six hours to chop down a tree,

I’d spend the first hour sharpening the ax.”

Abraham Lincoln

How sharp is your ax?

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REAL ESTATE COURSE:PARTY SKILLS 101

Scenario: You’ve been invited to your spouse’s holiday

party. It’s a casual cocktail party with light snacks and

everyone seems to be having a good time. You find

yourself in a group of about seven people who are

talking about the economy. One person in the group

asks you what line of business you’re in. You reply

‘real estate’ and that you work for Berkshire Hathaway

Homesale Realty. Everyone grows silent as someone

asks:

“How’s the market?”

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YOU HAVE 45 SECONDS TO IMPRESS - - - GO!

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EVALUATION TIME

• Read what you wrote down

• How would you rate yourself

• Would you do business with you?

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REAL ESTATE MARKET(FRANKLIN COUNTY)

Remind people that all real estate is local

• Number of sales: Up 3.2%

• Average sale price: $152,000

• Length of time to sell a home: 4 months

• Sale Price to List Price Ratio: 92%

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WHERE ARE WE HEADED?

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DISTRESSED SALES?

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SHOULD I BUY?

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INTEREST RATES?

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HOW DOES THAT COMPARE?

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WHAT DOES THAT MEAN?

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WHAT DOES THAT MEAN?

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TOUGH TO QUALIFY?

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TOUGH TO QUALIFY?

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WHERE ARE PRICES HEADED?

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WHERE ARE PRICES HEADED?

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BE READY THIS YEAR

Download JPG’s from SlideShare

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‘FLOOD’ PARTY

Today from 4:00-6:00 PM @ the Office

Please RSVP to Kim

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ABOUT THE PRESENTER

Tom Blefko is a real estate broker with over thirty years

experience in all facets of the residential and commercial real

estate industry including sales, leasing, office management,

property management, development, construction and

training. During the course of his career, he has been an

award-winning salesperson and assisted other agents in

negotiating and closing over one thousand real estate

transactions.

Contact Information: Tom Blefko, Associate Broker

Berkshire Hathaway Homesale Realty

Office: (717) 267-3222

Cell: (717) 587-6600

E-Mail: [email protected]

mailto:[email protected]