Coach’sTIPS

Jan. 2008

TO MAXIMIZE YOUR CLIENT APPRECIATION PROGRAM ™

5770 Armada Drive, Carlsbad, CA 92008 • ph 800.945.3485 • f 760.476.2786 www.buffiniandcompany.com

CONTACT C OMMUNITY
Today’s market offers a wide range of opportunity. The more knowledgeable Promoting home improvement is a great opportunity to host a fun and casual
you are, the better asset you are to your client. It is important for you to be mixer, such as a barbeque or cocktail party, where your clients can mingle with
well-versed and have an open and accurate perspective, so you can be a professionals who can help them revitalize their home.
trusted resource. This goes a long way in creating the types of relationships Ideas for business-to-business relationships include the following:
that are lasting and promoting referral business. Inviting one of your A+
clients to lunch and bringing January’s Item of Value to review is a great way · Interior designers and decorators
to set your client’s mind at ease about our current housing news. Be prepared · Landscape architects
by knowing market history and facts. Becoming an accurate source of knowl- · Contractors
edge is crucial to being a successful agent. Describing some of the ways that · Home exterior professionals
you are continuing to perform at a top level in the current market is such as designer painters, resurface
invaluable in gaining loyalty and promoting referral business. specialists and siding experts
Hosting a home improvement
event will give you a chance to add
these businesses to your endorsement database and can earn you valuable

Idea:
January is a great football month. Plan a party around
a major bowl game or NFL playoff game. Remember
to have plenty of things to do for people who may not
be interested in football.
© 2008 Buffini & Company All Rights Reserved. Used by Permission. LGK JANUARY CAP SL
referrals from these professionals in return.
Sample client call dialog:
“As part of the full service I provide my clients, I am always looking for
great businesses or resources to refer customers to. Do you know an
interior designer that you have used and would recommend?”
If you haven’t already established a cross-endorsement campaign with
any of these types of businesses, take this opportunity to search your
database for people willing to give you a referral.

Sample dialog for follow up on business-to-business referrals:

CARE “You were referred to me by one of my clients, John Smith. He told me
Even if your clients aren’t expecting to be moving anytime soon, it is always a good that you helped him remodel his kitchen, and that he was very pleased
idea to consider a remodel or home improvement venture. You can Pop By with with the quality of work and service you provide. As part of my full service
one of the following items that will help your clients plan or begin saving for real estate business, my clients often look to me to refer quality busi-
nesses and services such as yours. I would love to schedule some time to
a remodel or improvement project:
come by and meet with you to find out more about you and your busi-
· A handy calculator ness so that I can add you to my preferred vendor list. What would be a
good day and time for us to meet? I have Monday or Thursday available.”
· Home improvement guides or copies of Remodeling Magazine
· Worksheets that will help plot out savings and
budgeting plans Coaching Never endorse or refer any businesses you haven’t
researched yourself. Remember, you are putting your
· Piggy bank to promote savings goals Tip: name on the line.

The best remodels will realize a return on

investment almost immediately and will
certainly pay for themselves within a few years.
This 2007
Take A
Close
One thin
Millions of
g remains
Houses Sold
constan
t—real
esta te sales
go up ove
1970s

Look

In addition, a beautifully remodeled kitchen or :

1.6m r time.
1980s

3.0m
Low 3.9m

Home
Rebound 1.9m
1990s

1970 High
1976 3.6m
1978 Low 3.6m
1982 Rebound 3.2m
High

Month’s
1986 4.2m
1988 5.2m

Sales
Low

bathroom will make living in your familiar 1990 Rebound

1996 High
1999

During the

Fifth
90’s, there 70’s, 80’s and
changes were signific
in the ant

in His Best
some of economy,
which
in the housin were reflected

home a new and exciting experience. trend was g marke

The housin always the same.
and improv g market rode it out
t. The

tory were strong ed. 2005 and

sales, but years for 2006
home

CAP!
2007 was did you know that
actually the
in history fifth best
? “Existing
are projec home sales
GOOD NEWS this year ted at 5.92 million
When you
—The Housing Mark million in
(2007), rising
2008, compa to 6.27
buy and sell et Is Relat
January 2008
6.48 million
in 2006.” 1 red with
Taxes are structu ive
accommodat is relative.
e the premis
they are also e that red to
buying anothe when most people sell 2007 is on
track to be
There are financ r one becaus their home, year in the the
ial incentives e they need history of realfifth best Mortgage Rates
this timely encouraging a place to live. estate Are
U.S. EXISTI Historically

CAP Highlights:
reinve Mortgage availa
market conditi stment. So, regardless
NG HOME Very Low
2007 is on
pace Homes Sold S STATIS TICS 5 bility is restric
ons, buying of 1.15% increas to show a 2004
subprime lender ted, but that

Tagline
relatively close and selling Avg. Price s than fixed-r applies more
period of time in a sales price e in average 2005 6.7 million Despite 2007 ate mortgages to ARMs and
a high marke levels the playin 7.0 million $195,400 market fluctua from prime
Y CAP S

t, you are also g field—if 2006 $219,600 have stabiliz tions, rates lenders.
years ago, buying in a you sell in 6.4 million ed and are
the market 2007 (est.) long-term quite low by
has likely apprec high market. If you bough $221,900
JANUAR

5.5 million standa

iated signifi t $224,500 selective, and rds. Lenders are more
cantly—it you should
always does. you be, too.
n. LGK

MORE GOOD
The U.S. EconoNEWS—Look Beyond Seek the Advic
Permissio

the Headlines e of Professiona

Unemployme my Is Stabl
nt is low and e The prime
lenders
industry remain in the mortgage
ls
Good News About
. Used by

all but three has been holdin Be patient.

I can help you get the most out of your home!

years in the g steady at strong. Throug Good things
to grow in last 30. 2 U.S. about 4.6 percen professional ha
Reserved

2008. 4 personal income t for the last qualification will come.

held steady two years. provide marke process, they

the U.S. Economy

in 2007. 3 This is better t stability via
y All Rights

Gross Domes than lending policie sound

tic Product s. Seek their
20 is forecast traditional advice for
financing progra
Compan

7%
are best qualifi ms that will
15 6% projection
ed to “sort fit your needs
advice regard things long
%

ing home loans out for you” and provid term. They
Buffini &

5%
Interest Rate

10 2006 2007
2008 2009
and refinancing. e responsible
UPDATE
© 2008

5 Market
A modest recove The latest news
while pendin ry for existing-hom at time of publica

Oh, by the way®…if you know of anyone who would appreciate

0 tion:

Interest Rates,
g e sales is expect
1980 market will home sales indicate ed in 2008
1985 improv near-term
1990
1995 mortgage produc e from a steady stability. Lawre as the impact of
2000 unleas nce the credit
2005
for existing-hom ts. “Even with relativ hing of pent-up demanYun, NAR chief econom crunch subsides,
Interest Rates e sales. The ely low d ist,
Are Low an all-time
high set in median existin fourth quarter sales, and from a wide abund said the housing
The Federa g-home price 2007 ance

Historically Speaking
2006,
l Reserv ” Yun said. in 2007 will will be the fifth highes of safer
economy movin e Board adjusts interes

the level of service I provide, please call me with their name and
have fallen t
g. Over the t rates as a by less than year on record
high, causin last 20 years, means of holdin 2 percent from
g or compo during tight g inflation
unding the
rates genera
lly equate situation. Curren housing markets, inflatio in check while keepin There will always
a tight marke to lower house tly, interest n and interes g our be opport
payments and rates are t rates have and buy a unities to sell
t. home—make
may be a strong historically low. Lower been
right for you. sure the timing
interest

business number, and I’ll be happy to follow up and take great

motivator to is
sell or buy
during
1 Nat’l Assn.
2 http://w Realtors 09/07. http://w
3 http://w
4 http://w
ww.bls.gov/cps/p
ww.forecasts.org/ rev_yrs.htm
ww.realtor.org/R
ww.cbo.gov/ftpdo personal-income.
5 Nat’l Assn.
Realtors, Existingc.cfm?index=7731
htm
esearch.nsf/htmla
rchives/ResearchU
pdate091407 Trends & Updates
care of them. Homes Sales.
http://www.realt
or.org/Research.n
sf/files/ehsrepor
t.pdf/$FILE/EHSr
eport.pdf
“To be well-informed is to have the world
at your fingers.”
—Joseph Jones

Dear Friend,

Did you know that 2007 was actually the fifth highest year for home sales in history? Take a
closer look at the numbers and you will discover that the state of the real estate market may not be
everything the media leads you to believe. Sometimes we all need a little historical perspective to see
the big picture clearly.

Fortunately, I did all of the research and analysis for you already. This month’s Item of Value includes
a variety of interesting and informative statistics that illustrate why last year was a good year overall
for home sales. With mortgage rates historically low and new, innovative mortgage programs being
unveiled, there is even greater promise for home sales in 2008.

On the backside, you will find a noteworthy study on the rising trend of vacation home sales.
Nearly one-third of vacation homes are being purchased with the intent of becoming a full-time
residence upon the buyer’s retirement. With today’s mortgage rates, renting options and family
gathering advantages, buying a vacation home is a great option to consider.

With so much to take into account when you buy or sell a home, I am always available to help you
sort out what is best for you.

Sincerely,

Oh, by the way® …if you know of someone who would appreciate the level of service I provide, please call me with their
name and business number, and I’ll be happy to follow up and take great care of them.

You can download this cover letter from our website, so that you can customize it for each of your clients.
 One thing remains constant—real estate sales go up over time.
Millions of Houses Sold

1980s

1990s
1970s
1.6m 3.0m 3.9m 1.9m 3.6m 3.6m 3.2m 4.2m 5.2m
Take A Close Look: Low Rebound High Low Rebound High Low Rebound High

2007
1970 1976 1978 1982 1986 1988 1990 1996 1999

During the 70’s, 80’s and

Home
90’s, there were significant
changes in the economy,
some of which were reflected
in the housing market. The

Sales
trend was always the same.
The housing market rode it out
and improved. 2005 and 2006
were strong years for home

Fifth Best
sales, but did you know that
2007 was actually the fifth best
in history? “Existing home sales
are projected at 5.92 million

in History
this year (2007), rising to 6.27
million in 2008, compared with
6.48 million in 2006.”1

GOOD NEWS—The Housing Market Is Relative Mortgage Rates Are Historically Very Low
2007 is on track to be the fifth best

© 2008 Buffini & Company All Rights Reserved. Used by Permission. LGK JANUARY CAP S
When you buy and sell is relative. Taxes are structured to year in the history of real estate Mortgage availability is restricted, but that applies more to ARMs and
accommodate the premise that when most people sell their home, subprime lenders than fixed-rate mortgages from prime lenders.
U.S. EXISTING HOMES STATISTICS 5
they are also buying another one because they need a place to live. Homes Sold Avg. Price Despite 2007 market fluctuations, rates
There are financial incentives encouraging 2007 is on pace to show a 2004 6.7 million $195,400 have stabilized and are quite low by
this timely reinvestment. So, regardless of 1.15% increase in average 2005 7.0 million $219,600 long-term standards. Lenders are more
market conditions, buying and selling in a sales price 2006 6.4 million $221,900 selective, and you should be, too.
2007 (est.) 5.5 million $224,500
relatively close period of time levels the playing field—if you sell in
a high market, you are also buying in a high market. If you bought Seek the Advice of Professionals Be patient.
years ago, the market has likely appreciated significantly—it always does. The prime lenders in the mortgage Good things
industry remain strong. Through a will come.
professional qualification process, they
MORE GOOD NEWS—Look Beyond the Headlines provide market stability via sound
The U.S. Economy Is Stable lending policies. Seek their advice for
Unemployment is low and has been holding steady at about 4.6 percent for the last two years. This is better than
traditional financing programs that will fit your needs long term. They
all but three years in the last 30.2 U.S. personal income held steady in 2007.3 Gross Domestic Product is forecast
are best qualified to “sort things out for you” and provide responsible
to grow in 2008.4
advice regarding home loans and refinancing.

20 7% projection

15
6%
5%
Market UPDATE The latest news at time of publication:
2006 2007 2008 2009 A modest recovery for existing-home sales is expected in 2008 as the impact of the credit crunch subsides,
Interest Rate %

10 while pending home sales indicate near-term stability. Lawrence Yun, NAR chief economist, said the housing
market will improve from a steady unleashing of pent-up demand and from a wide abundance of safer
5 mortgage products. “Even with relatively low fourth quarter sales, 2007 will be the fifth highest year on record
for existing-home sales. The median existing-home price in 2007 will have fallen by less than 2 percent from
0
1980 1985 1990 1995 2000 2005
an all-time high set in 2006,” Yun said.

There will always be opportunities to sell

Interest Rates Are Low
The Federal Reserve Board adjusts interest rates as a means of holding inflation in check while keeping our and buy a home—make sure the timing is
economy moving. Over the last 20 years, during tight housing markets, inflation and interest rates have been right for you.
high, causing or compounding the situation. Currently, interest rates are historically low. Lower interest
rates generally equate to lower house payments and may be a strong motivator to sell or buy during
a tight market.

1 Nat’l Assn. Realtors 09/07. http://www.realtor.org/Research.nsf/htmlarchives/ResearchUpdate091407

2 http://www.bls.gov/cps/prev_yrs.htm
3 http://www.forecasts.org/personal-income.htm
4 http://www.cbo.gov/ftpdoc.cfm?index=7731
5 Nat’l Assn. Realtors, Existing Homes Sales. http://www.realtor.org/Research.nsf/files/ehsreport.pdf/$FILE/EHSreport.pdf
vacation Home Sales
are on the upswing.

A rising trend in the real estate market is the purchase of second homes. In fact, vacation home
sales rose nearly 5 percent in 2006. The average buyer’s age was 44, and one-third already had
plans to eventually make the vacation home their full-time residence.

There are several reasons why now is a good time to consider purchasing a house for your retirement:

The market is good. Competing bids are rare in today’s market, and sellers are
eager to make a deal. This gives you better bargaining power.

Sooner is better than later. You can be assured that the price of a home is lower
now than it will be in 10 years. Consider also that the prices of the most desirable
locations, such as waterfront and resort properties, are likely to rise even faster.
CONSIDER THESE THINGS
Mortgage rates are low. Now is a good time to get a great deal on a mortgage, and
you cannot be certain of rates down the line.
WHEN YOU ARE LOOKING
FOR A RETIREMENT OR
Time is on your side. Fortunately, you aren’t in the position to have to make a snap decision. Take the time to research VACATION HOME:
your purchase and the areas you are interested in living.
• Is it affordable? You obviously don’t
Sort out your finances now. Another added benefit of having time to plan your secondary home purchase is the want to spend more than you can afford.
ability to crunch the numbers ahead of time and figure out what you can afford and what your fixed expenses would be.
• Is it convenient to get to? Generally, it
Rent to own. You have the option to rent out the house to help decrease costs. This won’t necessarily make your vacation should be within three hours from a major city.
home a profitable venture, but it can make it more attainable. As a rule of thumb: if one week of peak rental income can
cover a month of mortgage expense, it is a good deal. • Can you rent it out? If you plan on renting
it out to lower costs, make sure you are
Establish your roots. Buying a retirement house early makes it easier to move into when the time comes. You will buying in an active vacation rental market.
already have an attachment to the home with sentimental memories, be familiar and comfortable with the area and
already know your neighbors and the community. • What is there to do? You’ll want to make
sure there is plenty to do around the area.
Create a family retreat. Owning a home in a vacation setting will quickly make it a top destination for quality family
• Is there room to grow? The most desirable
time. Buying while your children are still in the household will make them much more likely to visit on vacation with their
children after they move out. destinations are usually in the least
saturated markets.

5
• Is it both a winter and summer retreat?

Beautiful Places TO
1. White Mountains, Arizona

Own 2.
3.
Central Sierra Mountains, California
South Padre Island, Texas

On A Budget 4.
5.
Amelia Island, Florida
Murrells Inlet and Surfside Beach,
South Carolina
vacation Home Sales
are on the upswing.

A rising trend in the real estate market is the purchase of second homes. In fact, vacation home
sales rose nearly 5 percent in 2006. The average buyer’s age was 44, and one-third already had
plans to eventually make the vacation home their full-time residence.

There are several reasons why now is a good time to consider purchasing a house for your retirement:

The market is good. Competing bids are rare in today’s market, and sellers are
eager to make a deal. This gives you better bargaining power.

Sooner is better than later. You can be assured that the price of a home is lower
now than it will be in 10 years. Consider also that the prices of the most desirable
locations, such as waterfront and resort properties, are likely to rise even faster.
CONSIDER THESE THINGS
Mortgage rates are low. Now is a good time to get a great deal on a mortgage, and
you cannot be certain of rates down the line.
WHEN YOU ARE LOOKING
FOR A RETIREMENT OR
Time is on your side. Fortunately, you aren’t in the position to have to make a snap decision. Take the time to research VACATION HOME:
your purchase and the areas you are interested in living.
• Is it affordable? You obviously don’t
Sort out your finances now. Another added benefit of having time to plan your secondary home purchase is the want to spend more than you can afford.
ability to crunch the numbers ahead of time and figure out what you can afford and what your fixed expenses would be.
• Is it convenient to get to? Generally, it
Rent to own. You have the option to rent out the house to help decrease costs. This won’t necessarily make your vacation should be within three hours from a major city.
home a profitable venture, but it can make it more attainable. As a rule of thumb: if one week of peak rental income can
cover a month of mortgage expense, it is a good deal. • Can you rent it out? If you plan on renting
it out to lower costs, make sure you are
Establish your roots. Buying a retirement house early makes it easier to move into when the time comes. You will buying in an active vacation rental market.
already have an attachment to the home with sentimental memories, be familiar and comfortable with the area and
already know your neighbors and the community. • What is there to do? You’ll want to make
sure there is plenty to do around the area.
Create a family retreat. Owning a home in a vacation setting will quickly make it a top destination for quality family
• Is there room to grow? The most desirable
time. Buying while your children are still in the household will make them much more likely to visit on vacation with their
children after they move out. destinations are usually in the least
saturated markets.

5
• Is it both a winter and summer retreat?

Beautiful Places TO
1. White Mountains, Arizona

Own 2.
3.
Central Sierra Mountains, California
South Padre Island, Texas

On A Budget 4.
5.
Amelia Island, Florida
Murrells Inlet and Surfside Beach,
South Carolina
vacation Home Sales
are on the upswing.

A rising trend in the real estate market is the purchase of second homes. In fact, vacation home
sales rose nearly 5 percent in 2006. The average buyer’s age was 44, and one-third already had
plans to eventually make the vacation home their full-time residence.

There are several reasons why now is a good time to consider purchasing a house for your retirement:

The market is good. Competing bids are rare in today’s market, and sellers are
eager to make a deal. This gives you better bargaining power.

Sooner is better than later. You can be assured that the price of a home is lower
now than it will be in 10 years. Consider also that the prices of the most desirable
locations, such as waterfront and resort properties, are likely to rise even faster.
CONSIDER THESE THINGS
Mortgage rates are low. Now is a good time to get a great deal on a mortgage, and
you cannot be certain of rates down the line.
WHEN YOU ARE LOOKING
FOR A RETIREMENT OR
Time is on your side. Fortunately, you aren’t in the position to have to make a snap decision. Take the time to research VACATION HOME:
your purchase and the areas you are interested in living.
• Is it affordable? You obviously don’t
Sort out your finances now. Another added benefit of having time to plan your secondary home purchase is the want to spend more than you can afford.
ability to crunch the numbers ahead of time and figure out what you can afford and what your fixed expenses would be.
• Is it convenient to get to? Generally, it
Rent to own. You have the option to rent out the house to help decrease costs. This won’t necessarily make your vacation should be within three hours from a major city.
home a profitable venture, but it can make it more attainable. As a rule of thumb: if one week of peak rental income can
cover a month of mortgage expense, it is a good deal. • Can you rent it out? If you plan on renting
it out to lower costs, make sure you are
Establish your roots. Buying a retirement house early makes it easier to move into when the time comes. You will buying in an active vacation rental market.
already have an attachment to the home with sentimental memories, be familiar and comfortable with the area and
already know your neighbors and the community. • What is there to do? You’ll want to make
sure there is plenty to do around the area.
Create a family retreat. Owning a home in a vacation setting will quickly make it a top destination for quality family
• Is there room to grow? The most desirable
time. Buying while your children are still in the household will make them much more likely to visit on vacation with their
children after they move out. destinations are usually in the least
saturated markets.

5
• Is it both a winter and summer retreat?

Beautiful Places TO
1. White Mountains, Arizona

Own 2.
3.
Central Sierra Mountains, California
South Padre Island, Texas

On A Budget 4.
5.
Amelia Island, Florida
Murrells Inlet and Surfside Beach,
South Carolina