Coming from nearly forty years in the business my perspective began in Bellingham, Washington (1973). We are in the Northwest corner of Washington State along Bellingham Bay. Bellingham currently has a population of 80,000 however when I began it was just 40,000. After thinking about Real Estate then and compared to now, three things came to mind. Prices, the transactional complexities and the influence the internet has had on our businesses.
People are always interested in comparing prices, from when I started in Real Estate, compared to today’s values. The best way is to give real examples. In 1973 I was selling homes for under $10,000. A newer home (built in the 60’s or 70’s) with a bay view would be $60,000-$70,000. A classic home (built prior to 1950) on our South Hill would sell for $30,000-$40,000 with a bay view! A new home in a nice residential subdivision would have been under $50,000 and $18 per square foot was the cost for a new home. My educated guess is that the average home sold for $20,000. My first sale was a bay and city view lot fully serviced for $7,500. Now the average price is $250,000.
Secondly, the transaction was much simpler. Back then a one page purchase and sale agreement was all you needed. Today 15 pages is the minimum including: disclosure, environmental, financing, inspection, septic, well and utilities addenda to name a few. Back then a transaction could be closed in ten days, now it takes a minimum of forty days, so the management of the transaction is critical. The reviewing of the title report, checking on the status of the appraisal and loan approval with lender, dealing with the work orders, and finally coordinating with escrow the closing are all critical components to a successful transaction which was much simpler forty years ago.
Finally, the internet has changed and is changing how we work with our clients. Everything is faster than it used to be. There’s lots more information and it is easier for the public to find facts and data on any home. Communication is so different with email, fax, texting, Twitter, Facebook and the entire social media platform. One of the best ways to establish trust is to communicate via the medium your clients prefer. In the early years I was taught to close, close, close. Whatever the buyer or seller said I could handle the objection with a scripted response. Now, lifestyle selling is important, by that I mean we are not just helping people buy and sell bedrooms and baths but rather we are helping them work through one of the biggest transitions they will ever make. Buyers and sellers are comfortable with Real Estate professionals to guide them through the process however the successful brokers are consultative selling and that means you have to listen and be knowledgeable. We must understand from our customers why they want to buy or sell, how committed they are to the process and what they feel they need to know in order to decide. Lifestyle selling takes time! It requires collaboration. It requires converting information into knowledge.
Hopefully, I have given you a little insight as to what has changed in forty years in my world. By no means is this every change but enough to enlighten.
-Gragg Miller, Bellingham
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