As the year comes to a close, you read, see, and hear a lot of different things about our current real estate market. In one report you read foreclosures are going to crash on us like a tidal wave and in the next you read that foreclosure filings are down 4 straight months in a row. You hear that new home sales are skyrocketing as are their prices as buyers are flocking to new home sites because they are sick of losing out on multiple contracts in the resale market yet builder confidence is down to its lowest level ever in another article you read.
As you can tell, there are mixed messages in the media which is makes it easy to understand why the consumer is so unsure of what is happening out there in the market and as a result, they are sitting on the sidelines. It is my belief that you can also poll agents and you will get similar mixed messages. Where you stand on your beliefs about the market is in direct proportion to how involved you are in the business and whom you speak with on a regular basis. If you aren’t out showing properties, speaking with lenders, new home sales agents, other active agents (those listing and selling homes, not talking about selling homes), and even title companies who are closing sales – you are most likely getting your information from elsewhere. The elsewhere is the media, out of touch lenders, unproductive agents, non producing title companies and wherever else people get their information – neighbors, friends and coworkers. This elsewhere is typically providing uninformed and negative comments about our market. My suggestion is for you to get busy and get the facts. Communicate what is happening in the market and help people make informed decisions on whether now is the right time to buy or sell their home by seeking out the right people and getting the right information. If you aren’t out working the business, you won’t be able to communicate the accurate message to your clients.
He is a perfect example. I was on a listing appointment yesterday afternoon and after laying out the market conditions to our new clients they asked me if now was a good time to sell? My answer was yes. Why? There are buyers out in our market, the homebuyer tax credit has been extended as well as expanded, mortgage interest rates are low – albeit slightly on the rise recently- inventory levels are low, they have equity and they can take advantage of the market as buyers as prices are more affordable than over the last few years. The one caveat, they had to price their house to sell. Our market is extremely price sensitive today. Buyers are looking for bargains – not houses that are priced right. As a result, they have decided to price the property to get it sold after finding a home in Florida they feel comfortable living in there. Proper education, given in the right way based upon experience helped me help them.
So, what is your action item? Do your own research, write your own blog, call your people, communicate your message through what you have learned by speaking with productive, educated, active agents, new home sales agents, lenders, and title companies. Do your due diligence on the market by previewing houses – be observant as you drive to these homes. Do you see abandoned properties? Are there homes in total disrepair you notice as you drive around? Are there many for sale signs? Make a mental note that will help you tell the story about our market. Remember, real estate is local and the media portrays national news and trends. My advice is to get busy getting educated. Get it? Got it? Good!