In 2004:
Your ad would read ...
I
have a house for sale. $300,000
NOW!
Call Immediately. Phone
#
(In 2004 that
house would
have been gone within a couple of days.
Most likely buyers would even pay $10,000 - $25,000 MORE just to get
it.)
In 2005:
Your ad would read ...
House
for sale. Cash
only.
Flip the contract. No
need to close.
Call Immediately. Phone
#
(And the house
would find
several buyers, each one increasing the value by a minimum of $25,000.)
In 2006:
Your ad would read ...
3
bedroom home, new, 1800
sq.ft.,
2 car garage. At
$289,995 it’s a deal!
Must close first. Investors
20% down.
Call for Details. Phone
#
(Remember, we are
talking
about the SAME imaginary house. The
difference is how the ads change when demand goes down.)
In 2007:
Your ad would read ...
Beautiful
home for sale in
superior neighborhood.
3 bedrooms 2 ½ baths, 2 car
garage, 1800 sq.ft.
Vacant, ready to move
in. $249,995 -
negotiable.
Builder offers huge
incentives and bonuses worth
$50,000. Call -
Phone #
(As you can see,
2007 has
come full circle since 2004. The same
house that sold at $300,000 and $400,000 for flippers came down to
$249,995. You cannot ignore the changes
- the timing and the real estate conditions.)
In 2008:
Your ad would read ...
No Bank Qualifying!
No Credit Needed!
No Job or Income
Verification!
Low Down Payment!
3 bedrooms, 2 ½ baths, 2 car
garage.
New, vacant, ready to move
in.
OWNER WILL CARRY!
Price: $279,995, monthly
payment
$1600 at 6% interest
amortized over
30 years. Call
TODAY - Phone #
(Creative
financing is coming
back into vogue! With increased qualifying
and down payment requirements by lenders, fewer buyes can qualify for
new
loans.)
In 2009:
Your ad would read ...
Short
Sale - Seller
Desperate!
Beautiful home for sale in
superior neighborhood.
3 bedrooms, 2 ½ baths, 2 car
garage. Formal
living
room, dining room, and family
room. Seller paid
$300,000 in 2004 - bank
willing to accept a short
sale of $235,000. Home
in pristine condition -
ready for you to move in
tomorrow.
Call - Phone #
As times change, Realtors must react to those changes. These are just examples show you that in the past few years how the ads for one house could affect your business. And you can expect more changes in 2009 and 2010 on the same imaginary house.
The Realtors' business is always "moving." What was true a year ago is no longer true this year. You cannot "fall asleep" behind the wheel. If you do, your competition will pass you by.
Pay attention to the changes around you! And then take advantage of those changes. Of course, I cannot talk about all the changes across the country. PAY ATTENTION to what's happening in YOUR area!
George Paukert, "Mr. Real
Estate"
Road
to Wealth Inc.
Phone: 561-883-2222
E-Mail: george@roadtowealth.com
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