Real Estate Forums

Jared · 10-30-2007, 01:18 PM

We have to face reality at some point and Realtors are going to be out of the business in the next two years if they don't prepare intelligently for such things as the market shifts. With all the buzz about the pending concerns over the secondary lending market going to hell, it's surprising people stress little concern as it so often appears. Some to the outer extreme both directions leaves middle of the road confusing and ineffective which in my assessment is where decisions will be made to do nothing which will prove costly.

Dangerous Lending Market?
I'm no alarmist, and the sky isn't falling but I'm smart enough to know that the best way to boil a live frog is slowly heating up the water until its too late for the little guy. Changes that are subtle are deceptive and all indicators in discussions with experts that seem well informed, stress serious concern for their futures as well as the future of the real estate market in general. The changes are present and they are persistent but what is dangerous is that its just warming up. The rolling boil could catch many off guard this much is true.

Isn't that contrary to what we've been recently told?
I've read many blogs in the last few days catching up after my long absence from this business and I simply do not agree with the notion that the concerns once stressed over the secondary lending market are in anyway minimized. Maybe I can look back on this post to boldly examine my arrogance in hopes that I'm proven wrong but there is more to the housing market than loans and employment.

The unfortunate thing is nay sayers and pessimists can stress opinions with little forethought as to the consequences. Negative press eager to burn down this nation so they have fresh blood to talk about, I fear falling into that negative mindset. But as present and influential as Real Estate is on the stock market, buyers market or any other national indicator of the economy, educated people also understand that Real Estate is macro economics and not micro economics and trends, short lived or not, do make shifts on the micro level that may adversely effect the market on the macro level.

What the hell did he just say?
I'm saying in summary that Real Estate as well as other markets in the nation normally experience a shift or surge during this period in time and small short term indicators of the market may be prematurely read. Mortgage lenders are in fact still going out of business daily. Realtors are taking jobs elsewhere and foolishly turning off their websites and hanging up the gold jackets.

The National Association of REALTORS® had reported unsettling figures related to the past two quarters regarding the resale figures. Does this validate the nay sayers about the pending issues in the market? We know better right? NAR reports figures we already suspected and changes in consumer confidence over the next 4 - 6 months will help, but wont be a solution to dig everyone out.

My motive in writing this post is singularly minded toward one simple thing that I'll reveal in subsequent posts. I'm eager and motivated to get this forum as well as the TBE forums living, active and used and I've got some clever ways of doing just that.

Your thoughts, objections and opinions are respectfully expected because thats what makes forums great.

~ Jared

NealRM · 10-31-2007, 09:57 AM

I do agree that real estate agent must prepare for change. The internet has completly turned the market on its ear. The internet is bring buyers and sellers together in a more effecent manner. Potentail buyers are doing more preliminary research on the web and are comming to the agents saying we want to see these properties. This means an agent spends less time finding a home for a buyer and can handle more listings. Depending on the extent of this trend, that mean the number of agent will either remain constant or slowly drop. It also may mean that agents will make less per listing.

For those agents that are ready this can be a period of growth. Those that are not ready will find their incomes dropping.

jessiesc · 10-31-2007, 07:56 PM

Quote:

Originally Posted by NealRM

It also may mean that agents will make less per listing.

In our market, we are actually raising our commission rates. The agents here show based on the commissions offered and the incentives to the agent.

Jared · 10-31-2007, 08:01 PM

Yep both of you nailed it. I mean one thing that is hard for some people to learn (were all hard headed now and again) is that the modern internet shopper or person or surfer is a great deal smarter and old tricks and trivial crap that use to impress simply wont anymore.

~ Jared

jessiesc · 10-31-2007, 08:13 PM

I sure hope we're right.

We do 99% of our marketing on the internet. It was actually a very easy decision... When we first started with our office, we took lots of classes. The overwhelming theme was 80% - 85% of real estate buyers shop on the internet first.

Well that's a no brainer isn't it? If 80-85% of the business is somewhere, and 15-20% is somewhere else, I want the 80-85%!

Now, the old timers still try and push us into farming, mail-outs etc. But honestly, we can't afford to market like that.

Did I miss something in the translation?

MarcinSarasota · 11-01-2007, 06:36 PM

Quote:

Originally Posted by jessiesc

In our market, we are actually raising our commission rates. The agents here show based on the commissions offered and the incentives to the agent.

The same thing is happening in Sarasota, Florida. We were primarily a 6% market but more and more listings are 7%.

Bama-Homer · 11-01-2007, 06:59 PM

Started a front ended 8% with the heavy side for the buyer's agent in first 45 days, which is working nicely....

Of course, I have heard that I'm nuts a few times....

lasvegasrealestate4u · 11-02-2007, 01:45 AM

As with any commodity, the markets have their ups and downs. Anybody who thought the latest real estate rage was going to continue forever is now waking up to reality. For us, it means being more effective in our advertising and cutting the junk that does not work and stopping the "we do it to appease the sellers" mentallity.

We've never believed in "buying listings" and anybody who is still doing this that truly provides a marketing and advertising service will not be in business very long.

Changes are inevitable and real estate agents that can adapt will survive.

LVH · 11-02-2007, 08:51 AM

Those who didnt hedge their bets while the markets were still good have to be suffering, real estate is a tough sale right now. I for one did just that. I put some income back, invested some and looked in to other business ventures that create income.

HomeSurfer.com · 11-03-2007, 02:45 AM

Quote:

Originally Posted by Jared

The National Association of REALTORS® had reported unsettling figures related to the past two quarters regarding the resale figures. Does this validate the nay sayers about the pending issues in the market? We know better right? NAR reports figures we already suspected and changes in consumer confidence over the next 4 - 6 months will help, but wont be a solution to dig everyone out.

I keep monthly graphs on existing home sales pace, inventory, interest rates, and median prices if it will help you to look the data as a "picture". If someone is interested, I'll come back to the thread to post the links. If not, that's okay, too.