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To My Realtor Colleagues - Gimme a Break!

Last weekend, I went into an Open House with one of my buyers that is really struggling with the 'Rent versus Buy' decision. The listing agent handed us an article by Orange County Register's Jonathon Lanser that shared the good news that home sales was up nearly 60% from a year ago. In the words of the listing agent, 'things are turning around'.

As I've said before on OC Voice, I'm not convinced that this is necessarily the turnaround I'm looking for. Most of this increase in sales is in the most distressed parts of our market. In addition, 60% increase in sales over the historic lows of 2007 is good, but clearly not great. We are still about 50% off in sales volume from 2003 numbers and we are back to 2003 pricing.

Do I think we are approaching a bottom? I do. Am I ready to tell my buyers, 'Hurry, before it's too late?' Not necessarily. I think it may be time for some buyers to take the leap, however there are a lot of factors that go into that decision (stay tuned for my post about renting versus buying in today's market).

But, I find it insulting when my colleagues reprint articles with a glimmer of hope, so that they may spread them far and wide with a 'Hurry and Buy Now' approach. Consumers are smart. Information is everywhere. My clients understand that sales may be up, but prices are down. My clients all have been watching the market, local trends, and values. To suggest that if they don't pull the trigger today, they'll 'miss the boat' insults their intelligence and frankly, it continues to diminish the level of professionalism of the industry as a whole.

Originally posted on OC Real Estate Voice.

Posted by Linsey Planeta - Your 'OC Real Estate Voice' on 11/23/2008 03:17 PM

Comments (93)

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93 Comments on To My Realtor Colleagues - Gimme a Break!

NOV

2008

I agree with your sentiments, but if the roles were reversed you are looking for every opportunity available.

I suppose that people are grasping at straws..trying to propel business anyway they can..

I understand your sentiments. But just to play "devil's advocate", think about this:

It doesn't matter whether you're insulted or not - what matters is whether or not your customers are insulted. Your job is to sell real estate - plain and simple.

Just a thought.

I'm a little mixed on this one, Linsey. On one hand the agent may be an agent of misleading information. But at the same time, consumers are being bombarded by the media telling them not to buy, anything we can do to put things in perspective should be applauded.

Glad to hear that a Realtor would not rush his/her clients into a decision in order to get paid. It is refressing that the downturn gives us a positive outcome of bringing the professionals to the top.

I believe Realtors have the moral obligation to inform not just the legal obligation of agency.

http://www.RonYarbrough.com

Linsey - in all markets there is, or there should be, that rent vs buy decision. Not all people are cut out to be homeowners, It is not my job to just sell real estate, it is to sell real estate with the best interests of the client/customer in mind.

I don't think I would blame the open house agent, as she is trying to get her sellers home sold and you are customers. Perhaps since she did not write the article she believes it, from her point of view. This is just as much as some believes the opposite. We all have to find our own belief and comfort zone.

Did the agent have Mr. Lanser's permission, for that matter, the newspapers', to reproduce that article and disseminate it to the public? I think not. That is copyrighted material, and you should mkae him aware that that is a violation. On the other hand, I do not give any marketing material to a buyer who is with an agent. That, too, is overstepping my bounds, I feel.

Linsey, I aplaud you looking after your clients. That said, I can see the other side as well - it is an effective marketing strategy that some utilize to move their listings.

I agree 100% percent. Home sales may be up to due to unfortunate circumstances. But we have not hit the bottom yet. I do think we will hit the bottom soon in the next few months.

I think this agent is just trying to do her job which is to sell her clients property, where as you were doing a great job for yours by not thinking of just the money but their best interests, which I am sure they will remember and appreciate when they do decide to buy.

I agree - when I am with my client - I don't want other agents to give them anything at all.

I totally agree! IF they do mislead clients, we will never be out of this mess! These are the same people who convinced buyers a couple years ago to buy when they really shouldn't have done so!

I agree with you it seems so desperate. I think your take on the market is a realistic one and a good one. It gives people insight and hope and dont feel like they are being sold somthing.

When I am with a client I get irritated when another Realtor offers their two cents. The Realtor was there to give facts about the house not otherwise in MLS. They should not speak until spoken to and not offer market input unless asked directly. That is that! How rude!

It seems the Agent was just trying to be a little on the positive side. I give her credit because quite honestly it's very difficult to have a positive twist on anything right now. If you have to do an open house - you have to be positive for all the people through and you are working for your seller--. I try to find something positive to talk about--maybe what the town has to offer or the school system or maybe just nothing.

Very interesting, Melodious. You almost sound like a mommy (LOL).

The media is slanted. Horribly. I think it is our responsibility to spread the good news. Even if it is a glimmer.

I go with realism.

"I know we are in a tough economic situation right now, but rent vs. buy?? No brainer! First time homebuyer tax credit. Prices are very attractive and more importantly, interest rates are favorable. Waiting for prices to drop further is a risky proposition because if interest rates go up, even just a point, you will more than offset any further gain in purchase price. Couple that with the tax deduction and not only is this a good time to buy, I would go so far as to say it is an EXCELLENT time to buy!"

Linsey,

I think you have a realistic view of the current market. And, it's true that most clients are pretty well educated with the amount of information available.

I don't think the market has stabilized yet, but is it a good time to buy it sure is. Will prices go down some more maybe, and should first time home buyers wait for a better deal?- If they can good for them. But if you are moving for a job, or always wanted into a particular neighborhood, then buy the best property available today and don't worry about value you got value when you where offered choice.

Yes, information is everywhere. Sales are on the uptick in our area. I do try to communicate that, but I also like to validate my opinions with articles. I think it's all in the style. People who know and trust you believe what you say because you have earned their trust. If you don't yet have trust, I find that the articles are helpful.

I think we all need to be up on the subject, but I do not think printing articles and handing them out is the way to go. Articles are usually to broad of a reading and as you said those percentages are skewed with short sales and foreclosures.

Linsey: I couldn't agree more with your point. I hate the article (after article) that have been thrust in my inbox for the past 18 months talking about how the turnaround is going to happen next month. Sales are up. Prices are soon to rebound. We are crying wolf here. No one knows for sure. Talk about what you do know, so you don't put your own credibility on the line with those journalists looking for the silver lining. And what DO you know? That a mortgage interest tax deduction can save someone who is renting A LOT of money. That interest rates are low and won't be this way forever. And that there is a lot to choose from. Isn't that enough good news?

I think it probably showed just how desperate the listing agent is.

You just have to read everything you can get your hands on, hire a professional Realtor and make the best financial decision you can. Don't listen to anybody you don't trust.

Wow - How fun to get up in the morning and see the fascinating response to this piece. Forgive me if I don't respond to each of you directly. I did read everyone's comments and appreciate that you took the time to leave one.

I absolutely appreciate the listing agent's desire to 'do his job' and get a listing sold. What I take issue with is the 'good news' piece and the spin that, 'things are turning around.' My client's reaction was that the agent was sugar coating the market with a 1/2 truth. Yes sales are up, but prices are way down. It's the conclusion, the picture painted by the agent that 'things are turning around' that leaves a bad taste in a client's mouth and in mine. We aren't there yet - close - but not yet.

Chris Ann - Maybe that's why it rubs me the wrong way. You've seen this method for 18 months! So have buyers I believe. It makes us look like we are simply 'salespeople' and not true experts in our field.

Give people the truth. They can take it and they'll trust us more.

Vickie - I too use articles. I think they exceptionally valuable in helping understand our market. The difference I have from the listing agent I met, I don't cherry pick the ones that just serve me.

C - I'm not sure I was shooting for Melodious, certainly not mommy, but I am one so it may come out sometimes.

Judy - I actually agree. There are lots of good things to talk about. Sales are up and inventory is down. That's great news. I just would love to see a more honest portrait of what that great news means to a buyer or seller. But, no question, you have to have the good news. And it's out there.

Agree - seems near bottom, and more should buy then are, due to fear. But doesn't mean everyone should buy.

Linsey -

I don't see the urgency to drop what you're doing and BUY NOW!

But there are good opportunities here, especially for those with good credit and no home to sell, that they may want to take advantage of.

The issue becomes cloudier with those needing to sell their home before they buy - they find this difficult, or will likely draw far less equity than they expected. Depending on their leverage position, this will usually result in a delay to the sell process, and, of course, the subsequent buy.

DEAN & DEAN'S TEAM CHICAGO

Hi Linsey -

If I do an open house, and an agent comes in with their buyer, I welcome them, then get out of their way. I hate it when an agressive agent wants to say or present anything to my buyer!

As far as handing out reprints of newspaper articles, and declaring that "Now is the time to buy or sell" - that just costs that agent their credibility! That is the mentality that got us where we are today with the famous quotes : "Real estate values always go up!" and "Don't worry, you just have to refinance this toxic loan later!"

Linsey - I disagree here. IF the news is good, it is our job to spread it, because the media sure as heck won't. I don't think it's valuable to be misleading, but if things are turning around, I will shout it from the rooftops. However, in the case you described, that is a relative increase over a bad year, not exciting or newsworthy, in my opinion. I guess I go for realism, and if I can truthfully be optimistic, I will do so.

Jason I'm not sure we disagree. Good news - I'm dying to spread it. This piece just didn't qualify. I think realism is exactly what I'm asking for.

Vicki - here, here!

Linsey - Right you are. I guess I wasn't disagreeing that strongly, but I really don't find it insulting when my colleagues reprint the hopeful stuff, because it's hard to find these days, and because the traditional media is so happy to focus on the car wreck that our economy has become, rather than allowing for some optimistic news on occasion.

However, the agent you described here was doing something that my wife likes to call "lying with statistics". That is doing no one any good.

I'm in the middle on this one... Although I'm not reprinting articles to spread far and wide, I do see hope in the sales increase. Sure, it is the bottom feeding from the distressed properties... but aren't those the properties that need to be sold in order to build a turn-around?

In order for the herd to run faster, the old and sick members have to be culled by the predator. The old and sick members of the inventory herd are the distressed sales.

All I require from a listing agent is Hello, Goodbye, a flyer, and a disclosure. I do not think I would be thrilled with adding additional info, That's why they have me...

Lindsey - I commend you for putting truth & client interest ahead of your own. I share your views and, like you, find it annoying to hear all the premature hype. But clearly now is a good time to buy for those looking for a home to live in. Investors looking for a quick "pop" may be in for disappointment.

Aloha, Richard

To suggest that if they don't pull the trigger today, they'll 'miss the boat' insults their intelligence and frankly, it continues to diminish the level of professionalism of the industry as a whole.

I know where you are coming from. I too am guilty of distributing articles about the silver lining in today's market. The reason I send them out is not to scare them or coerce them into buying, I am simply giving them the information that homes ARE selling. If your buyers are interesting in buying and have a home in mind, you may want to remind them of that fact that people ARE buying and to not be surprised if someone else makes an offer on it before they do.

Our job is simply to educate our buyers and sellers. If sales are up, GREAT, tell them that but also be sure to tell them they account for a lot of the distressed properties, or whatever the case may be. In this market, you want to teach people as much as possible, because they are getting loads of crap on the tv an other sensationalized news. We need to be the voice of reason to them. Give them hard facts and numbers from your local MLS- you can't argue with that information!!

Thanks for sharing, Nicole Weidauer

The Egerer & Weidauer Team, Keller Williams Realty North Seattle

Massaging the numbers fools no one these days.

Lane - Excellent point. It's a more full and real picture of the truth. I definitely see that.

Hi Linsey:

Here's my take on this....

If I'm escorting "my buyer" to an open house, I expect the listing agent to say hello and step aside so that I can try to sell the listing.

Please don't give me a flyer or article, because I am already prepared to show the property and have kept my buyers informed on the market. You can have the articles stacked on a counter, I'll pick one up if I feel that it's appropriate.

But please don't give my buyers anything, because that's just disrespectful to me as a fellow agent.

Linsey, I hope that the agent didn't give the article directly to your buyers...

Anyway, it sounds like that listing agent was trying the old "positive thinking" routine. Thinking positive is a good thing, and I don't have any problems with an agent printing articles, but just don't shove it down my throat in front of one of my clients.

As for the market itself, we can all only hope that it's turning around.

Have a Happy Thanksgiving,

I respectfully agree and disagree....there are properties "at the bottom" of their prie point that are seeing less than 30 days on the market.....if your buyer in THIS market wants a good deal....now IS the time..

I am not sure I am in step 100 percent with you on this. You got a bunch of comments. I tell folks interst rates are low prices are good inventory is good. Now is a good time to buy within your means if you plan on being in the home for a while. I think it is a great time to buy personally. But that is my market not necessarily yours

Hi Linsey...When taking a client into an open house we expect them to receive information on the property. I do not expect another agent to provide handouts on the state of the market. I would not do it to another agent.

Our clients have access to numerous forms of information. Another agent is not one of them.

Kate

In your nearly 10 years in real estate you haven't experienced anything other than an up market environment. Get ready...What you'll find is that challenging markets test character, they surely don't build character,

Guide your clients properly and don't be insulted by an agent who I perceive by your description as one in need a sale.

I think you have a realistic interpretation of the market. Of course agents want to sell homes, but it is up to the consumer to make the best decision - sounds like your client is getting appropriate input from you. I don't think that any of us can say we are at bottom, and things are turning around now.

I agree that when I am with a client, the other agent should not give them anything beside the listing sheet. Yes, it is a good time to buy now because the interest rate is still low but I won't tell them the market is turning around. We do not know that for sure.

Hello Lindsey, Your post was interesting but the responses are an added bonus. Balance may be the key word.

Linsey dont be insulted because some agents have no Ethics or will say anything to sell Real Estate- they become very apparent to everyone thats what they're doing very easily but that's their JOB- to sell Real Estate!

I agree. We should never "tell" our clients what to do. Our job is to guide them, not order them around. If we're going to pull the "buy now" tactic, then what makes us any different than used car sales people? In spite of what so many consumers think, I consider myself to be a professional, not a cheezy, pushy, tacky salesperson.

Michael - You're accurate in saying that in my nearly 10 years - I have not seen a market like this. But my business has been impacted along with my colleagues and there are times that I 'need the sale'. However, I still think that our guidance and behavior needs to be dictated by the needs of our clients and not our need. But, as you so aptly put, 'markets test character, not build character.'

Lisa - 'If we're going to pull the "buy now" tactic, then what makes us any different than used car sales people?' You said it. I guess that summarizes my point in one concise sentence. Thank you.

Linsey- I would expect the listing agent to step back when you bring a buyer client into the home and let you do your job in representing them. I have found most agents in my area are not tracking the stats for themselves and want to look at what the news paper is doing because they simply can't put together the information themselves. Why do I say this? Every month I manage to get hundreds of hits on my blog about the local market update. Someone is looking and I don't think it is just consumers.

I think that the agent was doing a proactive job for their seller and think it is good that they are counteracting the negative news of the media with some positive news. The numbers don't lie. Yes, numbers are still off from 2003, but if there is an increase in sales and it is the truth, then I don't have any problem with it.

I understand what you are saying...are you sure that Realtors are saying "You'll miss the boat if you don't buy now?"

Lisa - Is it true? Yes. Did it feel like a 1/2 truth? Yes.

Chuck - Fair enough.

Hi Linsey,

My market is different from yours. We are STILL going down around here - but the question is how much and for how long? I can't see that far ahead.

Sellers: My advice varies. Some pocekts aren't declining - YET. If they need to sell within the next 4 years - I'm telling these people to GET MOVING!!!!

Buyers: Where there has been substantial drop - I think they can buy and make it worth their while. This is in part due to the fact that rents are through the ROOF! Too many people wanting to sit it out on the sidelines has created a pay-day for landlords that make renting very expensive with no tax benefits. Yes, there may be more downside, but anything around NYC with easy train access and no more than 40 minutes to Grand Central Station has limited downside. If I can get it for them at 15% off the peak - its a good deal.

We won't know when the bottom is hit until things turn. In my market, the pent up need to buy is huge. When things do turn - prices will go up fairly fast.

BOTTOM LINE - When everyone is afraid - that's when you buy.

Linsey,

I refuse to pull the "BUY NOW" tactic with my client's. For the first reason it may not be their time to buy and for the second reason we dont have a crystal ball as to what the market will do in the next few months or years. Say the market gets worse and those client's that you pushed or used this tactic on were to buy now and then later on find that the home sales are still declining and they are looking at you saying "now is the time to buy". How will agents answer that question if they have used this tactic?

I applaud you!!

P.S. The way I handle a Open House when potential purchasers come in with a agent...I introduce myself and hand the agent a brochure / flyer and excuse myself saying "I'm here if you have any questions just let me know".

Just my thoughts!!

Lindsey,
I think you may be being a little hard on the agent. We are all so tired of hearing the bad news from the media, any good news is worth repeating. I don't think it was his intent to insult you or your clients. We are all looking for the silver lining and when it is so few and far between, we grasp whatever we can. Do I think it is a good time to buy? Yes. Do I tell my clients the time is now? I tell them that if they find a house they like, then buy it. It is certainly not a bad time to buy. Like the others said, just my thoughts as well.

PS If the agent approached your buyers, or you for that matter to give out a flyer, then they did overstep their bounds. They should have greeting you then gotten out of your way.

HI LINSEY!

You're right, consumers are smart. You can't force/scare them into rushing. And, it's about relationships!! If they take the time to develop a relationship with the consumer, in turn, they'll purchase/sell. It's because you've educated them via this relationship. They're not going to be convinced through one open house!

Hi Linsey, 'things are turning around'. is hardly overstating the case. That agent is trying to balance the overload of negative information our customers are exposed to. If that agent had greted you with " Now is a terrible time to buy..." what would your reaction be ?

How many blogs are in AR, where members are trying to persuade us that market is good, and if not the media, we would be simply terrific?

Hi Linsey

The market is in recovery with sales over last years levels, many customers who are waiting for the market to hit bottom may be missing the boat. Now is a great time to buy.

Good luck and success.

Lou Ludwig

You make a good point many people are unaware the majority of sales taking place today are distressed properties.

This is a subject close to my heart. I do believe that in a couple of cities where I work, it has bottomed out. Surrounding cities, maybe not. I do give my opinion to my buyers or anyone who asks. I explain to the public that it is their decision to make but here is my opinion. In the bay area there are many areas that are still getting multiple offers. Other areas many home are sitting there and devestated with short and REO sales. In the primary city in which I work, if the properties are not receiving multiple offers, the buyer can negotiate. I do believe now is the time to purchase if one has down payment and a good credit score. We do not have a crystal ball but I tell buyers that values will start appreciating little by little and interest rates could go up. My point is that all of us have different opinions about the market. I am also tired of the media giving out blanket negative and incorrect information as each city's market is different.

If I go to an open house with a client, I do not want the listing agent talking with my client unless, of course, it is about the features of the home. The only handout should be about the listing.

The only problem I see with any of the logic expressed here is that no one can time the market. Of any kind. Yes, I agree with Linsey that saying that every opportunity is a GREAT opportunity to buy is a bit salesy. But if we as Realtors told all of our clients to wait we wouldn't be in business. The name of the game is sales. Not market timing advice. If your client absorbs another 10% dip after buying the home he/she is still going to be in a better position than when the market returns. The tax implications are one aspect of my argument, but the other aspect that people don't seem to realize is that when the market truly does start to turn up buyers are going to be in bidding wars again. That's because builders have stopped building. So the only home that are going to be available for a while when the market does come back are resales. With all the pent up demand out there there is going to be a flood of home buyers all going after the same amount of supply. Don't bother trying to time the market, and try to tell your clients the same thing. Next thing they'll know they'll have missed the bottom. Best of luck.

Just a bit harsh I think Linsay, if this article is published in the News Media there is nothing wrong with handing it out. You are right the Public are intelligent, so why do we need to shelter them from the Media articles. They should e able to judge the information on it's own merits. Just because you Don't agree it doesn't mean that others don't. Our job is to represent our clients in the best way we can, the agent handing out the article was doing the best for his client the seller. It's the agent representing the seller that is responsible for protecting the seller. Just my opinion

Bill

its always a good time to buy, if you can afford it.

I couldn't agree with you more. I have posted articles about the unprofessional way Realtors are always on the positive side of things. I am not hearing that Realtors are buying up all of these great deals however. If we could think about what the customer is thinking, maybe they would have a better opinion of us.

I think the listing agent was doing everything she could to market the property. She can't and shouldn't assume that all consumers have an informed, competent agent. Hopefully, her presenation wasn't to pushy. Fred Doleac, RE/MAX Innovations - Boston Ma Real Estate

The customers are not stupid. But the good deals don't last. And there are bidding wars on properties. So it is a good time to buy. And on some really good deals they better act fast.

What i would find annoying is other agents giving my clients information at all. All the best.

I think you are right. No need to scare our buyers. God forbid it isn't the bottom and we fed them the "buy before it's too late" line. Can you imagine? Seems to me that buyers are much more informed than many agents give them credit for. Keep working with the ethics and morals that you are....you are doing it right:)

I use to agree with you

But here in Jupter Florida the Palm Beach Post writes so many negitive real estate articles that I have begun to copy positive articles. ( but its rare).

"To suggest that if they don't pull the trigger today, they'll 'miss the boat' insults their intelligence and frankly, it continues to diminish the level of professionalism of the industry as a whole."

That says it all. Some agents just don't get that the Internet has changed the industry. Consumers willing to put in the work have as much or more information about the market than real estate agents.

Agents that facilitate that spread of all real estate and real-estate related news, whether good or bad, will thrive going forward.

I am pretty sure the economy will continue its downward momentum into 2010. If you look at history. As for the last comment:

I have a website that puts you online at the same time as the public! Its a live chat website!!! Since 87% of buyers and sellers start online when looking to buy or sell its the perfect answer to capture them in real time chat!!

Check it out at www.AmericanAgentOnline.com Its free for the first zip code and the site has about 1,500 agents on it now. Get on and use it, you may get new clients from it!!

Richard

If all the numbers are right it will be February 2010 before it is stable and August before it starts going up. I can't wait to see what congress can do to mess it up. Bail outs will only prolong the agony.

Consumers read and hear the same news that we do.....let's give them credit for their intelligence.

I hate the hard sale brokers. (buy today or miss out) I do think that all of us need to do whatever we can to get positive news into the hands and heads of the buying and selling public. We have a huge crisis based media that loves to bust our business. In Denver we are just starting to get a little positive news from the media. I hope everyone hears it.

Linsey,

If it were me I'm sot sure I would have been all that upset because in the end it will be you that the buyers turn to for facts ,figures, and guidance, not the open house agent.

Hurry now to buy worked in the past....just not nowl. Integrity is one piece that matters nnow....

NOV

2008

I definitely agree that you want to be honest and up front with your clients, but if your real estate market is truly moving into recovery, you need to let them know and work to overcome the "generalized" "doom and gloom" statements that potential buyers hear on the national news.

I spent some time this weekend crunching numbers on speadsheets to study my local market. Your market echos what is going on in my area.

Linsey ... consumers are very smart and capable of finding information for themselves online and through the news!

Linsey,I like your post and opinion. Many often the time, realtors will treat their clients like idiots and become very pushy. I do not like that.

Linsey,

I thought your post was insightful and thought provoking. Who really knows where we are headed, but I do think to guess at this point or to feign knowing is sheer folly. We need to stay informed, question some of the ready information, and remain cautiously optimistic.

Guess we just have to look at one client at a time and their unique circumstances to evaluate whether it is the right time for them to buy or not. Hopefully, the economy will turn around soon, but if I had to guess I would say we are in for some overall challenging times. Happy Thanksgiving!

Congrats on the Feature! I am surprised that you didn't tell the agent how you feel about his article. :-)

Wow, I remember the good ol' days when only I and a few others would comment on your posts. Now I am number 89. Geez! Anyway, I agree with you. The pendulum of information tends to swing too far in each direction depending on momentum. I think you have to take a centrist approoach to keep your clients grounded. Just wait until the week after Thanksgiving and 50% of listings come off the market. All of the sudden inventory numbers are going to look great. Big picture is that it is still a difficult time. Getting better yes in some areas, but no need to break out the keg and party hats yet.

Rob - Damn! I'm so ready for the keg and party hats!!! Thanks for subscribing in those 'early days'!!

NOV

2008

Lane Bailey was right for directing me to your post. And you said it all concisely with no omissions. You have a new subscriber.

Ken - Wow. Thank you. I appreciate you reading!

JUN

2009

I came back to post another comment. I just showed ten properties to ready and willing buyers. The four they would really consider are already taken and are being moved into pending today. That's your sign.

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Linsey Planeta - Your 'OC Real Estate Voice'

Rancho Santa Margarita, CA

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