It dawned on me the other day, as yet another township confiscated our Open House signs (at $30 a pop)....that the community at large has no real clue how vital we are to the community. As they told me that the signs were thrown in the dumpster and unretrievable, a flush of red came over my face. Yesterday, at a broker open, another one of our realtors received a ticket for having an Open House sign during the week. Now, the reaility is that people find Open Houses by signs....take down the signs...and they hurt their own local economy. Why don't they get this?
As I look around at our damaged economy and meet with client after client in desparate financial straits, I wonder why REALTORS have such horrible reputations. While I agree that many practitioners are less than professional, I would argue that the vast majority are competent REALTORS who truly have their clients best interests at heart.
Why aren't we celebrated? Why don't people listen to what we have to say?
Consider that every home sale that a REALTOR successfuly procures has an enormous ripple effect throughout the economy. We create jobs, tax revenue, and advertising dollars for every municipality we practice in. "The economic repercussions of a home sale begin almost immediately", Jim Weichert points out. "In the interval from contract signing to closing, home buyers call upon a wide range of service suppliers that typically include home inspectors, termite/pest inspectors, mortgage lenders, appraisers, title companies, insurance companies, and lawyers. When home inspections turn up problems, a handyman is employed to do fix-ups. On moving day, both parties in the transaction will need truck rentals or moving services. Even the state in which the home sale takes place benefits, as the state government receives income from the real estate transfer tax." Citing National Association of Realtors® (NAR) chief economist Lawrence Yun, Weichert said, "Based on the income of service providers alone, the sale of a $417,000 home generates $37,500 in direct economic activity, or approximately nine-percent of the sale price.
The nation's economy continues to benefit after the new homeowner moves in. First-time buyers may go to a giant home center or local hardware store for new door locks, paint supplies, and maybe a power lawn mover. They may have carpets cleaned or replaced, and hardwood floors refinished. They'll need blinds and window treatments and may splurge on new appliances, kitchen countertops, furniture pieces, and any number of other items.
Not surprisingly, trade-up buyers spend even more. Weichert said that it's not uncommon for trade-up buyers to do high-end kitchen and master bath renovations and spend thousands of dollars on adding a deck or upgrading landscaping. Moving into a larger home also requires more furniture and accessories.
A report published in 2005 by the National Association of Home Builders (NAHB) found that in the first 12 months of ownership the typical buyer of an existing home spends $6,540 on home-related items, while new-home buyers average $8,642 - figures that would run higher today.
Housing's economic impact is even more apparent when you look at the new-construction industry itself, which not only provides employment for the carpenter, plumbers, electricians, and others who work on the new home, but also promotes job growth in industries that produce and distribute building materials, heating equipment, and other home-related products. According to that same NAHB study, building an average single-family home generates 3.47 jobs and $82,269 in tax and other government revenue.
The lagging housing market has literally driven this company into a recession. How important is housing? As the single largest segment of the U.S. gross domestic product - accounting for 33 percent of all U.S. economic growth in the past several years - housing historically has been the powerful engine that drives economic prosperity. REALTORS have MADE MILLIONAIRES. After all, a home has no intrinsic value. You cannot go into a bank with your deed and walk away with a check (or if you did, it would be about 70% of its true value). REALTORS create demand through marketing, negotiation, Open Houses, etc... We CREATE VALUE. And yet......no respect.
So...I ask one favor of our local municipalities......Can you stop throwing our Open House signs away so we can try and earn a living and generate some tax revenue for you? Thanks so much.
BUY A HOUSE AND SAVE THE ECONOMY!
All the best,
David Eisley
Weichert Realtors-Kingsland Properties
Director of Agent Development
Broker Associate
Mobile: 630.346.0098
weichertone@gmail.com
Interested in a Real Estate Career? www.WeichertCareerSite.com
My Featured Listing! http://www.postlets.com/res/889095
Other Links of interest:
www.weichert.com
www.weichert-illinois.com
www.myspace.com/weichertkingsland
www.activerain.com/weichertdave
www.zillow.com/profile/WeichertOne
www.realestateinchicagoil.com
www.wrri.com
www.Kingslandmtg.com
Naperville - 905 N. Main St, 630.416.4340
Wheaton - 2150 Manchester Rd, 630.665.1000
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In our community it isn't Open House signs that disappear, it's For Sale Signs. Between signs missing, shot gun blasted, run over with cars (or other vehicles), disassembled because someone liked the sign frame, etc. I have difficulty keeping a For Sale on a property. I've noticed that in our community realtors seem to be generally disliked. I am still new to this community and I work very hard for my buyers and sellers. I don't take advantage of my clients, I try to treat people with respect and yet I am lumped into that hated group called "those realtors." There are many in our profession that truly bring value to a community -- I try to be one of them. And, it doesn't take too many in our profession to spoil the broth. Locals get angry with the perceived high cost of commissions -- they don't realize how much money we spend on advertising, time spent talking to buyers, and now, money spent on fuel to ferry buyers about (We've been paying $4.69 p/gallon for regular here for over 2 months.) Guess what, when a $50 For Sale sign is stolen or irreparably damaged, when my $100 Post sign and panel are destroyed by a shot gun, that adds to my cost to doing business -- I may have to increase what I charge when I list. People in a community need to understand that when things cost us more money, it will be passed on to buyers and sellers -- we must do it. That's an example of the community creating a negative effect for themselves. And, yes, we are able to help the local economy -- when new residents come to the community, the tax base is increased.