Are buyers letting great opportunities pass them by? This month we look at why it might be the right time to buy a home. In addition, it's time to examine your website and make sure it is presenting the intended message. 

• Today's housing market - Why it may be time to buy
• Two special offers for our newsletter subscribers!
• Does your website have a perception problem?
• Announcing a new eNeighborhoods training class!

Today's housing market - Why it may be time to buy

This month, we'll take a look at today's housing market, including some reasons it may be a great time to buy. Everyone is aware of the challenges the housing market faces on a national level. But for real estate professionals, the challenge is to show buyers the long-term benefits of home ownership and the opportunities that exist in today's local markets.

1. Financing is favorable...for now

In volatile times, buyers and sellers may be scared to the sidelines by shifting home prices. As real estate professionals, it can be helpful to remind clients and prospects of two important things:

First, in a down market, it's easy to lose sight of the fact that real estate is a long-term investment. Historically speaking, it's one of the best investments you can make.

Second, interest rates are historically low right now, and they can have a much greater effect on affordability than home prices. For example, suppose your buyer is taking out a $300,000 loan, to buy a home with zero down at 6 percent (Let's also assume the buyers have excellent credit).

The principal, or cost of the home is $300,000. The interest, or cost of credit is $347,515 - more than the price of the home, even at a modest 6 percent rate.

Rates have risen in the first half of 2008, but in historical terms, mortgage financing is still a great bargain. From 1980 to today the 30-year fixed rate mortgage has ranged from more than 18 percent to less than 6 percent, says Jim Elfelt, a mortgage banker in Virginia Beach, Virginia. If you're waiting for a home prices to come down another $10,000, Elfelt says, you may be missing the big picture because a small increase in the cost of credit can quickly offset a reduction in a home's sale price.

For example, suppose you're applying for a 30-year, fixed-rate $300,000 mortgage. Note how a small change in rate can makes major difference in your monthly payment and the overall cost of your home through the years:

As you can see, a single percentage point on your mortgage has a huge effect on a home's affordability. The moral? When you're looking for a bargain, it's easy to focus on sales price, but be sure you're not losing sight of the big picture. If you try to time the market to save a few thousand on the price of a home, you might end up with a higher monthly payment and total overall cost of home ownership.

Does Your Website Have A Perception Problem?

First, your message passes through the Internet, a channel with its own challenges for online marketers. Then, the audience on the receiving end of the channel defines what your message means by the actions they take (or don't take). Your message is not what you intend, but what your audience perceives and acts upon.

So what can you do to make online marketing effective? One key is managing visitor perceptions. In fact, aligning three types of perceptions - personal, peer and credibility - provides a powerful formula to move prospects to take action. Think of these perceptions as a three-point strategy to improve response:

1. Personal perceptions

Personal perceptions are what website visitors think of you and your value proposition. Agents typically spend most of their time managing personal perceptions. The most important success factors include presenting information clearly, specifically, and in the right order. It sounds simple, but if you visit a dozen real estate websites, you will find lots of focus on wonderful agents and brokers, and considerably less information on benefits for prospects and clients.

- A clear value proposition should answer this important question for site visitors: Of all available agents, why should they choose to work with you?

- Use your Web presence to clarify the benefits of doing business with you. This goes back to your unique value proposition...can you do something for the website visitor better than everyone else? If so, make it clear. "Contact me for all your real estate needs" sounds vaguely positive, but it's a weak call-to-action if you want prospects to pick up the phone.

- Many agent websites also have no clear starting point to get visitors' attention, and no reason for them to become further engaged. Interactive marketing gurus Bryan and Jeffrey Eisenberg call the process of converting prospects to satisfied customers AIDAS - Attention, Interest, Desire, Action and Satisfaction. Jumping ahead to the Action without establishing Interest or Desire means trouble. In marketing, as they say, marriage is better than a one-night-stand.

2. Peer perceptions

Peers may include current and former clients, and other professionals involved in the real estate transaction. Peer reviews and testimonials can be critical to conversion success. A recent study by Deloitte Consumer Product Group found that 64 percent of online shoppers read reviews by other consumers in deciding whether to buy. More than 80 percent of the survey's respondents said reviews affected their buying decision, and a remarkable 98 percent found consumer reviews "very" or "somewhat" credible.

Adding testimonials can make your website more effective, especially if for newer or lesser-known agents. Be sure your testimonials are current, brief, and mention specific benefits you provided. "Fred is wonderful" is not as good as "Fred helped me find an affordable home near an A-rated elementary school." Adding client photos can help personalize a testimonial, particularly if that person is well-known in the community. The moral? Don't blow your own horn. Ask your loyal fans to do it for you.

3. Credibility perceptions

Accreditations and association memberships are important sources of credibility. For real estate professionals, these may include the REALTOR® designation, as well as various accreditations such as Accredited Buyer Representative (ABR), or certified residential Specialist (CRS). Also, don't forget to include academic degrees and other licenses and certifications that may help.

To make the most of credibility indicators on your website, be sure to explain their significance. Don't just add an e-Pro logo to your website, explain how that training benefits clients who work with you. Have other academic degrees? Use these on your Web site and in your promotional materials. Prospects may not know what a GRI is, but they are familiar with a CPA or MBA, and may have one of these designations themselves.

Even in traditional mass marketing, when there were three fuzzy television stations and no Internet, consumers controlled their perceptions of marketing messages. Today, consumers have even more control and more options to manage their media experiences. Digital video recorders, email filters, pop-up blockers and do-not call lists are all popular ways to fend off unwanted advertising. To make your marketing messages more successful, check them for perceived value and credibility before sending them out to the world.

eNeighborhoods new BuyerTour class

Learn how to turn browsers in buyers! The BuyerTour class focuses on turning leads into buyers with the highly customizable eNeighborhoods BuyerTour report. Learn how to create reports targeted to different types of buyers,
how to build buyer loyalty, deliver the information buyers are looking for, and to convey your value as a real estate professional.

Classes are held Mondays at 3pm Eastern Time. To attend, click here approximately 15 minutes before the class starts. For audio, dial the phone number posted in your meeting window and enter the access code provided. (Regular toll charges apply.)

Be sure to check out our full schedule of complimentary training classes and learn how to power up your prospecting, conversion and sales.