I have been wondering if it is a good idea to tell current and perspective clients what you think of the future of the real estate market.  

Obviously all major economists think this is just the beginning - and I tend to agree.  But should I tell my clients to wait on buying as the prices will continue to decline?  Am I doing myself a disservice?  Am I doing my clients a disservice? 

I tend to be a very straight shooter and tell people what I think when asked.  

Sure, I do not want to dissuade someone who is very motivated from buying a home, but I have a lot of investors chomping at the bit for property.

What is your take on this? 


The Adam and Eric Team
Adam Brett
Orange County Real Estate
Tel: 714.496.8116 |  Fax: 714.849.5798
My profiles:
 FacebookLinkedInMySpaceTwitterYouTube
 

18 Comments on Do You Tell Your Clients Your True Feelings?

DEC
30
2007
337,556 Points 30 Featured Posts Localism Sponsor Outside Blog
Adam - It depends on the client, what we tell them about how we feel. Market information, though, are facts and we always tell everyone that. Good question, and best holiday wishes
10:25pm • #1
If you really, truely think the market will continue to drop in your area, then I believe you owe it to your customers to share that opinion. . .after all, you would want someone to level with you if the tables were turned.  I always preface my opinions on the market with the phrase, "I don't have a crystal ball. . ." so they are clear that what's coming is just a personal opinion (based on my professional sense of the market and local market indicators and therefore probably pretty acurate -- but, I could be wrong) LOL!
10:26pm • #2

If someone is looking to buy a house now and sell in a year or two it probably won't be the best time for them to make this investment.... but as everyone has told me in other posts lol "we do not have crystal balls" nor can we say for sure what the next year or two has in store for us.

But everyone will also tell you that when they bought a house in the 80's for $85K (WHICH WAS PRICED SO HIGH) and turned around and sold it in 2005 for $200K more than they bought it for... they had no real complaints... right?

So real estate is a cycle, unless some major unforseeable disaster occurs it will dive and regain value ... whether it is 10 or 15 years from now... who can really say.

If someone is looking for a place to call home, and a place to make "home... is it ever really a bad time to buy?
10:28pm • #3

And why wouldn't it be a good time for them to buy?  Every market is good for somebody.  This one is good for first time buyers, investors and move-up buyers, at least where I am.

The only argument for waiting is that prices and interest might go lower.  They might not, too.  And nobody will be on the news saying "The market will pick up again in 30 days." 

10:28pm • #4
745,208 Points 22 Featured Posts Outside Blog
I believe that you should tell them what you believe.  Many people will still continue to buy.  People go agianst your advice all the time.  But many people will like it and some may even remember what you said a year from now.
10:33pm • #5
114,310 Points
To be upfront. Yes when I am frustrated and they don't seem to be listening. But I am learning that is to late.
10:54pm • #6
DEC
31
2007
510,363 Points 13 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master
In my market I think it is a good time to buy. I think it all depends on your "local" area.
12:13am • #7
I tell mine that I am not an expert real estate analyst, and then I ask them what their purpose for wanting to buy a home is. If they are just propsecting and not really serious or need to buy right now, I tell them to take their time and find the perfect for them because they may find a better price on a better home in the future. If I have an investor and it is a first-time investor I lay out the numbers for him and ask him what his budgets look like. I become more of his informed advisor in helping him come to a conclusion that best fits his needs and budgets. I don't want to burn people by getting them in over their heads. There are plenty motivated clients out there who need to buy and sell now regardless of the market . -cem
12:20am • #8
1,273,389 Points 2 Featured Posts Outside Blog Hit Router

Adam

I always do; sometimes it gets me in trouble

Sincerely

Tom Braatz
12:25am • #9
243,011 Points 29 Featured Posts Localism Sponsor Outside Blog
Karen is right on the money.  Every market is good for somebody.  I think it's not only OK to give market advice, but our obligation.   Remember, we're the experts.  We obviously can't see into the future, but we can offer certain predictions based on both local housing stats and the health of local, state, national and global economies.  The caveat to that is to let them know that your opinion is just that... your opinion. 
2:36am • #10
296,366 Points 19 Featured Posts Outside Blog

Well first of all Adam, you don't have a crystal ball.  I am always careful of making any "predictions" about the market to anyone. 

Now I think you need to be honest with your folks.  If you have a flipper client you wants to fix and sell or someone looking to buy and sell in 2 years; I do think you should advise accordingly.  You may lose a sale - but you will gain a great amount of respect and trust.

However if someone wants to buy a home; get the tax benefits, start to build equity and get "settled-in" - why not encourage them to buy? 

9:17am • #11
123,941 Points 2 Featured Posts
Yes you should always tell your clients what you believe.  I also use the line about not having a crystal ball to tell the future.  However, everyone's situation is different and reason for buying is different.  You must help them analyze thier reaasons and based upon that determine if the time is right for them to buy now.  How will you know when the market has bottomed out? Wait until it starts going up again?  Historically if you are holding real estate for a long term investment you will always come out ahead. 
9:29am • #12
Localism Sponsor Hit Router

Well, in my opinion, NOBODY really knows what is going to happen in 2008 and beyond.  I would guess half of the economist think the real estate market will be flat in 2008, the other half think it is going to fall.

No matter what the predictions are, if someone loves a home and they are going to live in it for more than a few years- who cares what happens in the very near term?  I tell my Buyers that they cannot put a price a home they truly love!  Plus, remember it is true real estate is local.

True, your investors are more concerned because they may want to flip properties.  My answer to them would be that they should be used to taking on risks.....that's what investors do.

Bottom line, nobody has a crystal ball.  If they did, that crystal ball would be very expensive and located in a casino in Las Vegas.  :)  (just a little bit of humor)
10:03am • #13

The truth.  It all depends on what they want to do.  If you are looking to buy a home to live in, Its a great time too buy.  If you are an investor looking to hold the property, its a great time to buy.  Even those who want to buy rehab and sell quickly can get a great deal on the purchase, and still make a little on the resale. 

For the sellers, well if they have an unrealistic price in mind the house is not going to sell, simple as that, and I likely do not want the listing.  It makes me look bad. All my efforts are not going to produce results when the house is 20K overpriced. 

10:25am • #14
JAN
07
2008

I wanted to throw my two cents in too.  I think I would appreciate honesty and if I were an agent I would probably use the phrase, "if I were in your shoes, I might...."

It really is the homebuyer's decision ultimately.   
3:14pm • #15
1,327,581 Points 68 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Since I always tell them the truth the only thing left is for me to decide on is the phrasing based on their individual needs and time frames,  Karen Kruschka
3:19pm • #16
JAN
10
2008
601,535 Points 45 Featured Posts Outside Blog
I believe that your clients are looking to you for your expertise - they want (and need) to know your opinions. Yes, I tell them that I don't have a crystal ball, but I do tell them what I think, and why I think that. Whether it's a good time to buy depends on their objectives and their personal situation, such as whether they might be selling in a year or whether they plan to stay in the home until they are carried out.
7:17pm • #17
1,211,133 Points 194 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
I am really careful about speculating. In fact, I dont do that - not especially with my clients. There are just too many things at stake when I do that. My reputation for one. No doubt that my buyers constantly want to ask me what I think, I would tell them that I dont. If I had a crystal ball, I probably wouldnt be selling real estate. I would advise them to buy when they are ready - no matter how the market is. Not buying because of the external factors they cannot control.
7:56pm • #18


Captcha

Drag the tshirt to the circle on the side.

Image?id=2c9659b3215141890e6c4bd58192cbdab2582086 Image?id=dd3aac11500906d31c8f9c7127d61d575431871d Image?id=d77ae9100c9a73c9eadeb5a857030ff8b7b8f2b9 Image?id=d9a2b75ca3e1ce4080e83dfdd1110496fd39f4f5 Image?id=8d57d753e519b720bb7a8c4210e2e3a182ac8d19

Accessibility option: listen to a question and answer it!

Type below the answer to what you hear. Numbers or words, lowercase:
Leave a response…

(optional)
Captcha

Drag the clock to the circle on the side.

Image?id=ab173172b11758ae52d81e14c3c69635e515995d Image?id=711f6b6022aab6b94510f80f63a1931b1cd8789b Image?id=046018d30eb119ea00714eb7d8782fb72d18c7a9 Image?id=994df9450786455b630015dbf41edf11a088604c Image?id=35f021b0c9f25ffb56ea0863f891964a08801d7b

Accessibility option: listen to a question and answer it!

Type below the answer to what you hear. Numbers or words, lowercase:
 
Adam Brett - Fullerton, California Realtor, The Adam and Eric Team - Fine Homes (The Adam and Eric Team) Rainmaker_large

Adam Brett - Fullerton, California Realtor

The Adam and Eric Team - Fine Homes

Fullerton, CA

More about me…

The Adam and Eric Team

Address: 1431 Harbor Blvd # A Fullerton, Fullerton, CA, 92835

Office Phone: 800977ADAM

Cell Phone: (714) 496-8116

Email Me

Contact Me
Interested in selling your home? Contact me to get a professional estimate.
Profile picture for realtoradam
Adam Brett & Eric Urban
Call: 714.496.8116


View my..



Listings

Links

Archives

RSS 2.0 Feed for this blog