Amid all the noise in the industry these days, legendary real estate coach Brian Buffini has a simple, three-letter recommendation for professionals who want to thrive and close more sales this year: P.H.W.
Pure. Hard. Work.
“It’s the kind of pure hard work that’s immune to market forces, lawsuits or anything else,” Buffini told a crowd of thousands of RE/MAX professionals at the RE/MAX R4 convention in Las Vegas. “And it’s the kind of work RE/MAX is known for.”
In a 90-minute address filled with humor, market insights and time-tested business tactics, Buffini said RE/MAX agents – with their high productivity and skills – are positioned to control the listing inventory moving forward.
“I’m here to remind RE/MAX agents that their sign in the yard is the most iconic symbol in this industry,” he said. “Over the past 25 years, no other real estate brand has come close to the listings generated by RE/MAX agents.”
Although he predicted things “will get bumpy” in the next six months (catch his special Facebook Live on April 1), Buffini encouraged affiliates to start working now – while competitors may be stressed about conditions they cannot control.
“It’s the law of the harvest – you reap what you sow. There are a whole bunch of people in this industry who are not planting seeds but are waiting for a harvest. It doesn’t work that way,” he said. “This is the season for you to be planting seeds with the faith that your hard work will pay off down the line. If you plant sparingly, you will reap sparingly. If you put three seeds in the ground, you can’t expect a full field.”
Planting those seeds, he added, means connecting with your database of contacts on a steady, regular basis – through mail, email, social media posts, calls and activities that communicate your value and demonstrate your care. And doing it now.
Buffini, bolstered by a dynamic team of researchers, offered a number of data-based reasons to expect a healthy harvest later this year and next:
• The two main factors in housing demand – employment and household formation – are both encouraging. Unemployment (currently 3.9%) is very low and household formation is on the verge of exploding due to an oncoming surge of 45 million millennials between the age of 26 (average age of moving out) and 35 (average age of buying a first home). These people are “on deck” to become homeowners, he said, borrowing a term from baseball.
“You’re in a business where the single largest number of people who want to buy your product are coming into the on-deck circle – and almost all of them are employed,” Buffini said. “Their goal is to own a home.”
• Homebuilders have determined that the “sweet spot” in interest rates – where buyers are intrigued enough to jump back into the market – is 6%. Buffini believes rates will be there by the end of the year.
• Last year’s 3.9 million existing home sales represented the lowest mark in 30 years, Buffini noted. In 1993, the U.S. population was 260 million. Today, it’s 340 million – a massive increase – and another reason Buffini predicts home sales will climb to 4.6 million this year (up 18%) and to 5.3 million in 2025 (up another 15%).
“We’ve made the business so complicated,” he said. “Ultimately, there are only two things in this business – buyers and sellers. We have a shortage of inventory and a little chaos in the industry. You can solve both problems with one approach.”
Where to start? P.H.W.
RE/MAX affiliates can enjoy special discounts and benefits through a strong relationship between the network and Buffini & Company. Buffini’s new “Do It N.O.W.” campaign, featured in the Super Session above, was a popular purchase in the R4 MarketPlace.
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Written by GEORGE WHITE
