"SIFTING THE CHAFF FROM THE WHEAT"....The LATEST trend in real estate sales???

By
Real Estate Agent with Douglas Elliman Real Estate 30HA0800896

SIFTING THE CHAFF FROM THE WHEATIn this very challenging real estate market, I thought it would be interesting to look at which agents are making deals come togetherand which agents are failing to make it happen. This is the most difficult time to make deals come together in this profession; so lets look at the facts.

"Sifting the chaff from the wheat"...that's what I call the latest trend in real estate sales. In my opinion, there are 2 kinds of agents out there: Those who do not fully understand what is really going on, who are still wallowing in the housing crisis; and those who have seen select segments of the market improve and have taken the position of informing anyone they work with--either buyer or seller, of these improvements. These agents have developed a system of what I call "Inform/Perform" and it is the way to get deals done now.

Those thinking that it is still a "Buyers Market" seem to think that National reports on falling prices applies to all markets--not so! In many markets, prices are slowly inching up and if a buyer doesn't step up and pay the price, someone else will surely do it!

THE FACTS: Prices have stabilized in many segments of the real estate market and are starting to shift upwards....Inventories are narrowing as prices have reached the lowest levels in years and sales took an upward trend in many markets. The older, more distressed houses that are selling right now are those that have been priced at the lowest levels in order to move them. It is working, and smart investors are fearless when it comes to buying these homes--the potential is tremendous for new development in these properties....builders are buying these homes, sometimes in multiples, in order to be in a postion to build when the market normalizes.  The areas that are still suffering are those feeling the after-effects of foreclosure--healing in these areas has been stifled by the negative affects on prices of neighboring properties. 

LET ALL AGENTS BEWARE: This is when you will be making a lot of money in real estate if you catch on to what is happening out there in the real world..Even though the real estate market remains shakey after the devastation of the recession, many investors and first time buyers have been buying and reaping the rewards of long term investing. These are the homeowners who will remain in place for many years and do not want to "flip" or even consider when they will be ready to move on. 

THE TREND RIGHT NOW (As I see it)

Who has the money to buy a house right now?.....All of those who have never bought one before--the Gen Y population!!...the Echo Boomers! They still have jobs--never lost theirs. They were cutting back and saving during the Great Recession. They have saved a lot of money!!! They are secure in their jobs and have never suffered from the setback in housing because they had no house to lose! THERE ARE ABOUT 51 MILLION IN THIS CATEGORY.

The next part of the population who are spending their money on real estate is the Baby Boomer who never splurged during their lives--just saved and move along in the system with a modest home, raised their families and now they are alone--as a couple or single. This segment of the population has money to spend because they never spent it before! They are looking to help out their adult children to have a home for the first time; they may even want a new home themselves--with plenty of room for an extended BUYERS WILL BE THE WINNERS AT THE END OF THE DAY!family member, like an aging parent. This category of buyer has been waiting for this moment--when they can buy a house at a price that they know they may never see again. This is the moment--the time that homeowners look back and say:

  • "I should have bought that house in 2011!!!"

OR:

  • "I am so happy I bought back in 2011!!!"

This does not happen by accident!--You can't force someone to buy now--you must have the know-how, the experience and the expertise that is necessary to make it clear to your buyers that they must act now or they will lose out!

  • KNOW-HOW--a way of organizing yourself to be prepared for the objections you will face from your buyer. ANY OBJECTION CAN BE OVERCOME!
  • EXPERIENCE--not necessarily a long time in the business; we start getting experience with each deal and the wise learn from each and every step! LEARN from your mistakes!
  • EXPERTISE--comes from your focus; your focus on the specifics of the market, like: what is selling, who is buying and what they are buying; what are the trends? Do you read every report you can get your hands on regarding the business? Expertise can be built!

It takes all the above attributes in order to win in this market--if you don't have it, seek out the help from the more senior agents...they know and they are making money. If they are not selling houses right now then they have no idea what is happening and should have left the business a long time ago!!! 

THESE ARE THE TIMES THAT WILL BE TALKED ABOUT IN PERPETUITY!!! THOSE WHO MAKE IT NOW WILL HAVE A LONG AND LUCRATIVE CAREER IN REAL ESTATE---

BE THE WHEAT!!!

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Re-Blogged 10 times:

Re-Blogged By Re-Blogged At
  1. Kirsten Lindquist 05/14/2011 05:02 AM
  2. Joanne Gillet &The Edge Of The Beach Team ---- Pawleys Island, SC 05/15/2011 02:43 AM
  3. C. Lloyd McKenzie 05/15/2011 06:12 AM
  4. Marte Cliff 05/15/2011 06:22 AM
  5. Dave Conners 05/15/2011 03:25 PM
  6. Brenda Hughes 05/16/2011 04:11 AM
  7. Gene Riemenschneider 05/16/2011 08:48 AM
  8. Gabe Sanders 05/17/2011 01:28 AM
  9. Karen Jones 05/18/2011 05:55 PM
  10. Ruby Lee Sweeting 05/18/2011 07:18 PM
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Rainer
154,163
Deb Espinoza
Stage Presence Homes, San Diego Real Estate - Ramona, CA
GRI, Broker, SRS,ABR ePro, SFR, CNE

I can testify to the truth in this post Gay. Young first time home buyers are out there and they are looking for someone to help them with the purchase of their first home.

May 16, 2011 04:31 AM #112
Rainmaker
502,928
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Paula, what a great and well written post and what superb vision on your part.  Wish I could say that my local market reflects yours.  What is the same is that those that have the money to invest will be glad they did.  But, for those gen y'ers they are having trouble getting approved for loans and those baby boomers need to sell before they can buy.  That does put a crimp in their style and your vision.

May 16, 2011 04:55 AM #113
Rainmaker
473,351
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Robert: I grew up on a farm in Michigan and I guess that may be where the analogy came from..thanks for reading!

May 16, 2011 05:14 AM #114
Rainmaker
473,351
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Beverly: If you add up the unemployed (we don't even know that real figure) and the people who are not citizens who lost their houses--you probably have a great number there---all I know is that there are huge numbers of Gen Y'rs who have NOT had financial trouble--and many many baby Boomers who have not gone wild with their money and there-in is the source of a good number if homebuyers.

HML: You got it! "Somewhere there is a Bull market!" says it all!

May 16, 2011 05:36 AM #115
Rainmaker
473,351
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Pamelyn: It looks like you are onto the idea of "hard work makes most successful agents successful" I find that the harder I work the more businesscomes in--it is not always the same amoount of business but if I take a week off to go away, I come back to the bottom dropping out of my business. So now I just take a few days here and there and that works for me.

Brenda: Thank you for getting the word out there! I must say that the brand new homes here are getting top dollar--by that I mean they are getting as much as they did at the height of the market. Lets hope this is a sign that we over the worst of it!

Debbie: It is a new "emerging market" as far as I can see. These are 20 somethings who want to settle into a home of their own and raise their families just like in the 50's I think!! 

May 16, 2011 05:46 AM #116
Rainmaker
473,351
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Lora: I have seen those older Baby Boomer houses sell for more than they paid for the property and they happily move on to a new house while the person who bought their home tears it down and builds new--perhaps for the ready willing and able Gen'yrs! 

May 16, 2011 05:49 AM #117
Rainmaker
959,255
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thanks for saying exactly what I've been thinking. Great post! Here in Phoenix we are seeing the tides turn as well. Although we still have foreclosures and short sales, the number of NOD is declining.  We are seeing more short sales, multiple offers on homes under $300,000, and homes selling quickly.  Our inventory has been cut in half during the last 2 1/2 years and our buyers have much, much less to choose from.  Agents who are still in business are doing well and we have shifted our business.  You have to keep your ear to the ground to survive in this business and I'm to have a good ear.  Best of luck to you!

May 16, 2011 06:01 AM #118
Rainmaker
266,144
Dan Derito
Success! Real Estate - Brockton, MA

Spot on, Paula, and very well constructed.  A home is not an investment first.  It is a home and it's a safe way to accrue a nest egg over the long term.

May 16, 2011 08:13 AM #119
Rainmaker
1,431,110
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

This is the best time every for investors.  I think it is getting easier for first time buyers, but my poor FHA buyers could not compete with the investors paying cash.

May 16, 2011 08:47 AM #120
Rainmaker
473,351
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Jan: Good for you! Keep up the good work and you will see what comes of it! Isn't it good to have to go looking for more inventory?? I love it....

Dan: I agree; most buyers who bought during the run up bought with the idea that they could not get hurt in real estate---Now we know we can and we are all better for it!... buyers, sellers and agents alike!

Gene: Lots of cash out there that would normally have gone into the stock market and securities! Nothing like the "tangible asset" of a house to get people to invest! It is sad about the FHA buyers but maybe something will open up for them too, to make it easier to get mtgs.

May 16, 2011 09:58 AM #121
Rainer
34,893
Dan Pinson
International Realty Partners - Phoenix, AZ
Broker,ABR,GRI,RSPS,SFR,TRC

Our Phoenix market under $150k is getting hot...down to less than 4 months inventory. The high end still has a lot of inventory. But it's moving and I have told everyone that will listen that this year is a great time to buy.

May 17, 2011 07:38 AM #122
Rainmaker
473,351
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Dan: You are so right! I do think this is the year to make it happen! Good luck and BE THE WHEAT!

May 17, 2011 09:58 AM #123
Rainer
83,335
Jayne Clement
Keller Williams Realty - Los Feliz, CA
Los Angeles Short Sale Agents

Loved your overview...agree 100% that those that are buying now will reap the benefits in the future.  Many buyers are still "waiting for the bottom" and are 100% sure of a second dip.  But the homes that are priced well (not the steals) are walking out the door to the fearless buyers.  ALWAYS, in history when we look back and see whatever the masses were doing was NOT the thing that made the big bucks.  The buyers that are standing on the sidelines and being freaked out by the barage of negative media (is there any other kind of media?), will still be standing there when interest rates are at 7%. 

May 18, 2011 08:50 AM #124
Rainmaker
473,351
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Jayne...Agree completely about those who are waiting and will still be waiting when prices start to rise! You can not always blame the forclosures because in many markets there are no foreclosures (or rather very few) to affect the prices of other properties. These are the "market leaders" to me--they are the markets that are showing the way out of the mess. Many foreclosures have not gone through to completion so how can they be affecting everything now? I believe it is the lack of good mortgages available to good solid and qualified citizens, more than anything else! In areas like The Hamptons, where people are confident of getting a mortgage and are paying cash when they find something and buying it without a contingency. All-cash deals are the only way houses are bought here! Prices have dropped far enough so that the buyers are saying to themselves "I can live in this comfortably for 10 years! Surely the housing market will come back by then!!!"...then they are stepping up, fearlessly I might add, and making the decision of a lifetime! Thanks for your observatipons!!

May 18, 2011 09:36 AM #125
Ambassador
1,907,802
Michelle Carr-Crowe Just Call 408-252-8900 Top 1%!
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

This would explain why I feel like I've been thru the thresher. :-)

May 18, 2011 06:00 PM #126
Rainmaker
473,351
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Michelle: Very good! ......let's just hope you are not the chaff!!! BE THE WHEAT! :)

May 18, 2011 09:08 PM #127
Rainmaker
508,014
Sylvie Stuart
Realty One Group Mountain Desert 928-600-2765 - Flagstaff, AZ
Home Buying, Home Selling and Investment - Flagsta

Every market is very local, but there is some great content in this! Thanks for the great post! There is opportunity in every market! We must not stay stagnant!

May 20, 2011 05:39 AM #128
Rainmaker
473,351
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

Sylvie: You said it! There is nothing worse in this profession than being stagnant. Those who move in the way that improves their connections with the public are those who stand the greater chance of growth in this very tough market. I am firm believer in the idea that WE create how our market moves. If we put our heads under the covers and out of fear, peek out now and then to see whats happening, then we are not leading and we are not growing either! 

May 21, 2011 12:42 AM #129
Rainmaker
1,767,713
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Paula, i did read your post before & it is so true that i'm finding many agents not making the difference in themselves to 'beef' up their knowledge but figure their biz will just go on...and so my post of agents who just don't understand which agent has a listing?? could be very funny but it is sad...be the best or work with someone who will bring you to the next level!

May 23, 2011 11:23 PM #130
Rainmaker
473,351
Paula Hathaway, REALTOR, LBA
Douglas Elliman Real Estate - Southampton, NY
...The Most Informed Agent In The Hamptons!

GInny: Sorry--I did know, and value your having read and commented here before---I just really got a kick out of your post and I feel like we are getting more than our share of "unthinking" individuals in this business....less than exceptional and it's not because they are stupid; I think they just don't get how effective they could be if they REALLY apply themselves..Thanks for commenting again!

May 23, 2011 11:39 PM #131
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Rainmaker
473,351

Paula Hathaway, REALTOR, LBA

...The Most Informed Agent In The Hamptons!
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