Will Lower Gas Prices Change How You Do Business?

By
Real Estate Appraiser with Donovan Group Realty

Gas in Orange County CA has gone down by a little more than 20 cents per gallon over the prior couple of weeks. I noted in a blog a couple of weeks ago that lower gas prices should help spur on our economy. That said, I am always surprised by those who say that they are going to let higher gas prices affect the way they do business.

As an appraiser, should I have only accepted assignments real close to home, or viewed less comparables in person and just relied on their MLS description?

As an agent, would you have asked clients to view fewer homes so you can save $2 worth of gas?

As a notary, would you have asked that clients come and meet with you so that you could lower your operating costs?

All of these ideas seem very counter productive to me. If you want to be able to absorb the higher cost of fuel, you just have to do everything possible to close more transactions.

Now that gas prices have come down noticeably, we should be showing more homes again, meeting more buyers again, and hopefully closing more transactions again! Hurry, before they tick back up!!

--Andrew

Posted by

Andrew McGrath - South Coast Metro Orange County

Comments (6)

Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

20 cents less a gallon is nothing to get excited about, IMO.

May 26, 2011 06:41 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I have seen over 35 cents a gallon here in South Orange County

May 26, 2011 06:49 PM
Andrew McGrath
Donovan Group Realty - Santa Ana, CA

Hi Pamela, I absolutely agree with you, but was trying to make the point that lots of blogs and  comments were written a month or so ago by people who were very excited about gas going UP 20 cents which I think is not worth getting excited about. I personally think it is silly when self employed real estate professionals say that they will have cut back services to their clients because gas goes up a few cents. That said , as an indicator of consumer confidence, any break in the price of commodities is good for our economy overall. thanks for your comment!

Hello Tim- that is good to see also, we ( as consumers ) could use a break from the higher costs weve been experiencing!

--Andrewu

May 26, 2011 07:15 PM
Carla Harbert
www.LorainCountyHomeSales.com - Avon, OH
RE/MAX Omega: Lorain-Medina County Area

I just wrote a short blog post about gas saving tips that we ALL should try - check it out. Plus I can't get away from driving so we cut back on our dinners out. I can make many great dishes at home - plus my husband appreciates a "home cooked/baked" meal. Saved gas and money!

May 26, 2011 07:23 PM
Andrew McGrath
Donovan Group Realty - Santa Ana, CA

Carla-Great idea, and I think everyone appreciates a home cooked meal! My wife has perfected the old style Olive Gardern breadsticks, zuppa tuscana and stuffed mushrooms so we can enjoy our favorites at home.

Thanks for commenting

--Andrew

May 27, 2011 10:43 AM
Pam Dent
Gayle Harvey Real Estate, Inc. - Charlottesville, VA
REALTOR® - Charlottesville Virginia Homes / Horse

Andrew - We haven't seen this price drop in my area of the country.  Since I deal with a lot of farms and country property it is not unusual for me to drive over a hundred miles in a day of showing property.

May 27, 2011 04:02 PM