Mastering a Market with Too Few Listings: Spotlight on Keller Williams DTC

March 2015

Viewing posts from March , 2015

Mastering a Market with Too Few Listings: Spotlight on Keller Williams DTC

This article was featured in the Sunday edition of the Denver Post on March 29, 2015.

When Denver’s shortage of homes for sale declined to a startling level last month, the dearth showed up in a drastic drop of new listings filed by area real estate agents – down 47% percent on average from February 2014. However, over at what has long been the metro area’s very largest office — Keller Williams at 6300 S. Syracuse in the DTC — agents were seeing new listings drop only 9.2 percent; pretty modest considering the severity of the market-wide shortage.

That was no surprise to Keller Williams DTC’s Team Leader/CEO, Tony Carnesi, who was going over Denver area’s latest inventory stats Thursday morning: only around 4,100 homes, total; and for homes under $200,000, only 181 properties in the entire 7-county metro area. “We’ve gone from a 36-month supply in 2010 to about a 3-week supply now, and in some price ranges, it’s just days,” Carnesi says.

Hard to believe, Carnesi notes, that the oversupplied market a few years back was a good one for Keller Williams DTC. During the downturn the office took the Denver-area lead in numbers of sales-closed by a single office, and has held the title 77 consecutive months since. Last year the office did $908 million in sales, and grew to 447 agents (Carnesi expects that to be well over 500 by end of year).

Denver Post DTC

Can you spot Marty? He’s on the left in the back.

“We’ve always been focused on the idea that you have to master the market you’re in,” Carnesi says. The challenge of doing that now – with way too few listings instead of too many – Carnesi sees as a perfect opportunity matched to Keller Williams’ assets.

First among those is a culture that gives agents more incentive to perform and cooperate with other agents: Keller’s model sets a cap on commissions that the agent can pay the firm. When DTC agents Dan Polimino and Gary Lohrman made the very highest sale in the Denver area last year — $5.25 million – they paid zero commission to the office; they had already passed their cap.

Meanwhile, Keller DTC is huge on coaching and training, both for new agents (Keller gives 84 hours and converts 82 percent of ‘newbies’ into production, well beyond industry averages), but also for experienced ones (DTC has 14 master faculty instructors who give classes; backed by 1,500-plus national trainers and coaches). Some sessions are on basics essential in this market, when potential sellers need to be coaxed out of their reticence. “We teach our agents specific techniques to go find the listings the market needs,” Carnesi says.

All of that ends up very important to agents who can imagine a day when they’ll no longer work. “The average age of a Realtor is 56,” Carnesi adds. “What is their exit strategy, anyway?” Keller DTC turned $1 million in company profits back to its agents last year – and agents will continue profit-sharing when they move on (one national agent averages around $800,000 a year, for retirement).

And where do those new listings come from? “There are only two places,” Carnesi says. “You either teach your team to go out and get them, or you recruit experienced agents that already have them.”

Veteran agent Okie Arnot, who came to Keller DTC a decade ago, says the former method works great, but the latter works even better: “It was the best decision I ever made,” she says.

WHERE: Keller Williams DTC, Denver area’s largest real estate office, 77 months ranked for greatest number of units closed. 6300 S. Syracuse Wy, Ste 150, Centennial. Take Orchard Rd. west from I-25 1 long block to Greenwood Plaza Blvd., south 1 blk, continue onto S. Syracuse Way, half mile to Caley.

PHONE: 303-522-1161 or 303-829-5900

WEB: KW-DTC.com

(From http://www.denverpost.com/real%20estate/ci_27799608/mastering-a-market-with-too-few-listings:–keller-williams-dtc-office-does-that-with-a-different-kind-of-agent-culture)

New Listing in Northglenn

 

Stop the car! This ranch-style home has hardwood floors on the main level and an updated kitchen featuring new cabinets, new counters, and stainless steel appliances. Invite the family over and spread out in the fully finished basement with recessed lighting and new carpet. There’s an extra bedroom and bathroom in the basement perfect for guests, a hobby space, or home gym. The attached one-car garage is extra long so there’s tons of storage space for your toys and tools. Enjoy warm weather months in the backyard that has been beautifully landscaped with rock, grass, and brick – plenty of room for summer BBQ guests on the covered patio! Keep Fido in the dog run and a boat/RV in extra side parking!

10790 Carrol Ln, Northglenn CO 80233 – MLS 2098678

Contact me for showings at 720-891-9000 or Marty@GoodFitHomes.com. To view other Northglenn homes for sale, check out my home search website. I look forward to hearing from you!

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Home for Sale in Aurora, Sterling Hills

 

This is the one! This beautiful home in Sterling Hills offers an open floor plan with cozy fireplace, large dining area and breakfast bar for dinner guests, tile floors and tons of natural light. Enjoy cooking and baking in the spacious kitchen with large pantry. Escape to the huge master suite with dual sinks – take in the gorgeous mountain views from the private balcony. The walk-out basement is almost complete – all you have to do is pick the flooring and bathroom fixtures! Basement has been dry-walled and painted, recessed lighting and the ceiling already installed, brand new bathroom looks gorgeous, plumbed and wired for wet bar and under cabinet lighting! Entertain spring and summer guests on enormous, 3-story modern-style deck and patio.

19814 E Villanova Place, Aurora CO 80013 – MLS 8821049

Contact me for showings at 720-891-9000 or Marty@GoodFitHomes.com. To view other Aurora homes for sale, check out my home search website. I look forward to hearing from you!

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Low Inventory. Builders to the Rescue!

If you’ve recently been a buyer or seller in the Denver real estate market, you’ve felt the heat of this insane housing market firsthand. If you haven’t, prepare to hear some shocking news: according to the Denver Post and Denver Metro Association of Realtors, the 12-year average number of homes for sale at any time in the Denver area was 16,717. In February 2015, the number of homes for sale was 4,079.

Needless to say, such a shortage of homes has lead to some changes in the market for Metro Denver in recent months. The median home price has jumped 14.7% in the last year, the average Denver rental price is triple the US average, and homes are selling in a record number of days leading to bidding wars. What are buyers to do to find and win their dream home?

Builders think they have the answer. In Arapahoe and Adams counties, new communities are popping up left and right. But don’t consider them the “urban sprawl” of the past; these new communities plan on having everything today’s buyers want, including walking trails, hospitals, town centers with office buildings and retail shopping, and more. The biggest and most notable new communities are Prosper (9,000 homes), Sterling Ranch (12,000 homes), and Green Valley Ranch East (10,000 homes). Most have 20-30 year horizons to completion, similar to Highlands Ranch today which was originally built in the 1980s. Projections show that the Denver metro area will have 4.3 million people by 2040; these projects couldn’t have been started at a better time.

If you’re considering buying a new construction home, give me a call before you tour any model homes. You need someone on your side protecting your interests in a new build transaction.