Who Is Educating Your Customers?

BEWARE OF THE MEDIA!

Are you confused about where the market is heading? Well, if you are confused, then you can be sure that your customer is confused. It is logical to expect that your customer's opinion of the housing market is greatly influenced by what the media is declaring (either locally OR nationally).

As I was doing market research this week end, I decided to look on CNN.com to see what they were saying about the National Real Estate Forecast. This is CNN.com's front page of their Real Estate sections.

As I read through the articles, something curious jumped out at me (besides the obvious abundance of negative headlines). The lead story claims "Mortgage Delinquency Risk Rising", while a sub-headline claims "September Foreclosures Fall".  So, despite the fact that foreclosures fell in September, the winning head line focused that mortgage delinquency risk was rising.

These are confusing times for our customers. They don't know what to think about the Real Estate Market. Here is small example. I just met with a young couple from Orlando this week end. They began telling me that they wanted to lease-purchase a four bedroom home in a good school zone because they have four young children. They make about $90,000 a year and have great credit.

I asked them why they wanted to lease purchase. The answer was obvious to them, "We won't be able to sell our house in Orlando."

I asked, "Why do you feel as if you will not be able to sell your house?"

Them: "The market is terrible."

Me: "How long have you lived in your home?"

Them: "Nine years."

Me: "Have you refinanced recently?"

Them: "No....never."

Me: "How much do you owe on your house?"

Them: "About $75,000."

Me: "What do you think it's worth?"

Them: "Around $250,000."

Do you follow the point that I am trying to make? People are confused. In this case, we have a nice couple that earns $90,000 a year and has a house with $100,000 to $175,000 in equity, and their first reaction is to find a lease purchase situation. It makes no sense to anyone but them.

Now, you cannot blame them for being confused. Refer to the head-lines from CNN at the top of this email. These are confusing times. However, you have the opportunity to be the answer to your customer's problem. All you need is the knowledge and confidence to nudge them in the right direction.

If you are missing the knowledge or confidence, make sure you are at all training events that you can find!

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Joe Manausa, MBA, CRB, CRS | Broker / Owner | Century 21 First Realty

2365 Centerville Road | Tallahassee, Florida 32308 | (850) 386-2001 | http://www.manausa.com