*This is part III of a series of posts that I am writing regarding the "new" real estate market; in this new market, we as professionals have very different challenges than ever before. THE "NEW" REAL ESTATE MARKET: Do YOU Know Who You Are Dealing With? comes from the concern I have for all in our industry who are now dealing with a very different clientele in a very different market.
First, we are dealing with the possible acquisition, sale--or loss of the largest purchase that a person will ever make. Because of this we need to make good choices and decisions and we need to make sure we know who we are dealing with.
Second, we are in a buyers market now versus the decade long, sustained sellers market; this gives the brokerage community a whole new set of rules and guidelines that must be adhered to...it's a new world out there too! Life has changed to such a degree that most of the population is having a very hard time adjusting to the new ways. In real estate we have a new set of clients and customers to deal with; and they have a new group of aware agents to turn to, if we let them.
In this "new" real estate market, do you know who YOU are dealing with?
INFORMATION
I was reading Seth Godin's Blog (Frightened, Clueless, or uninformed?) and found him discussing these times of significant change and opportunity in our world and how, in order to assist people in our work, we need to understand just who we are dealing with. It is easy to point out the uninformed and the clueless; however, as real estate professionals, Do we have the know-how when dealing with the frightened?
Wisdom that comes from years of working with many people of many different persuasions is needed in a shifting market place; otherwise we lose our footing and find it very difficult to deal with the "new" paradigm. Having been in real estate for 17 years, I know that I have had broader experience than most agents who have been in the business for for a shorter stint. I want to share what I can with all of you. One thing that is fairly new to me in this new market and something that I have noticed quite a bit recently has to do with the fear that is out there, especially in real estate!
VALUABLE KNOWLEDGE AND WISDOM
I had a thought: As a service industry and as agents in service to the community, we need to truly "get" who and what we are dealing with day to day, especially in this economy. So, I asked myself: Do we have the right tools to assist the uninformed, the clueless and the fearful?
In applying an analysis of the "new" real estate market, it is interesting to see how the very charateristics that dominate the population as a whole, fit those of the current market conditions and those who make up the profile of customers, clients and agents alike in real estate:
Uninformed These people are those who need to learn what they can do with their home or if they should buy a home or not--they want to know and once educated to the facts of today's market, will understand the "new" real estate market more easily. This can apply to agents as well---those who stick with the tried and true without testing the waters of the new social media or internet sites fall into this category.
Clueless Contrary to the way it sounds, clueless people are simply those "who don't know what they don't know"--they need to start from the very beginning to truly get what real estate is all about...that would mean, of course, the person who has never owned or even looked to buy or sell real estate before. This is a clean slate and how they learn will determine for them the future of any successes or failures they may experience in their own real estate investments.
Fearful people are very hard to spot---they normally try to hide their fear; they don't want your help--at least they don't think they do. They have to be handled carefully and they will usually blame the agent for all the issues with their property and all the reasons they can't sell it. The agents that fall into this category also like to to blame fellow agents; anger is the manifestation of fear and the greater the level of fear the greater the danger. Bosses may fall into this category and because of their position, abusive behavior can result.
"THE ONLY THING WE HAVE TO FEAR IS FEAR ITSELF!"
What prompted my thought about this "new" market was a very vitriolic circumstance that I had recently with a buyer ....someone who is a top executive in real estate in new York City! What made his behavior so revealing to me is the idea that when people feel threatened in such a profound way as they do when they are dealing with large assets in today's world, the fear is palpable. Helping us to see what fear looks like helps us to deal with it better. Lifting the veil of fear is a powerful action--it is also very freeing to those of us who may want to flee in the face of fear.
DO WE HAVE THE KNOW-HOW WHEN DEALING WITH A FEARFUL MARKET???
What a relief it is to recognize that we are all in this together; those of us who need to serve in this service environment are vulnerable like never before and need a heads up on the ways to cope with the circumstances that arise now. Like never before, we have to have control of our own emotions and of the feelings of fear that we too may feel. I think that the tools we need are available to us in the very fact that we are the experts in our field and the faster we recognize it the better we are at dealing with others.
Using the valuable knowledge that we have garnered in our experiences gives us the advantage and the expertise to assist those who come to us with questions, problems and even personal issues, i.e, foreclosure.
- HELPING THE HOMEOWNER WHO WANTS TO SELL IN A DIFFICULT MARKET: This is the most common situation that we deal with on a day to day basis....How do we advise them correctly? Do we encourage them to list their home now or do we tell them the truth? Do we tell them it is wiser to wait if they can afford to do that?...or do we take the listing, and tell them that whatever price they want is OK? Do we carefully inform them of the comparable sales and in-contracts? Can we recognize the fear that may be present in a sellers behavior; how about in the attitude?
- ADVISING THE UNINFORMED AND THE CLUELESS: This would include real estate agents and others who have to deal with the public. The homeowner who has no idea of the market conditions is rare; most know the depth of this recession and therefore are very fearful of what they may hear from an expert...they usually are prepared to hear the worst. We, as their advisers need to be straight forward in our presentations and conversations with them. This will help to dispel most of the concerns and should be eye-opening to them when they hear from an expert that there are buyers out looking; but they are looking for value and good prices--In the case of buyers, we need to make sure they understand all the ramifications of buying in this kind of market; unless they can put down 50% or more on a property, it is almost certain that the deal will not happen. If they can pay cash, that is even better!
- ASSISTING THE FRIGHTENED HOMEOWNER ON THE BRINK OF FORECLOSURE: Our knowledge of just what is out there to aid the distressed homeowner is very confusing for the layman; however, as agents we need to be sopping up as much information as possible on what can be done for the seller who NEEDS to sell. Do NOT tell anyone in this position that you can't help; be prepared with names of lawyers, mortgage brokers, bankers, and social services that they can contact. In the event their situation is not dire, please, please, please DO NOT overprice their home. List it immediately at a price that is at or below market comparables. This will help to MOVE the property fast. Fear may bring on some aggressive behavior; blaming the agent is apt to be a form that their fear takes. Keep your wits about you---do not feed into the anger that fear engenders. Cool heads will prevail if you take a non-resistant position....let them vent, then leave.
We will get through this but it may not be for a very long time; meanwhile, lets not let the fear nor the uninformed lead the way...we do have a way to handle everything that comes our way. My favorite mantra in this market: It's not a problem unless we make it one.
The first 2 parts of my posts in how to deal with the "new" real estate, are below and both were featured posts; obviously they contain very timely and needed information. I hope this one is just as helpful as these:
*Part I: How Do YOU Handle The Seller Who Wants You To Over-Price Their Home?
*Part II: A FORMULA FOR DISASTER IN A FRAGILE MARKET PLACE:
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