The most important things I have so say about real estate - today

By
Real Estate Agent with Better Properties Seattle

It's a mile marker post...hitting 200,000 points.  Makes you feel like you should say something of importance. 

The most important thing I have to say about real estate today is that we clearly are not "at bottom" as to the price of real estate.  No matter where you are, financing changes will have to be reckoned with by the free market.  That means prices will be going down further, to compensate for the reduced means to finance a purchase.

I do think we ARE "at bottom" as to volume of sales.  I do think that we will stay "at bottom" as to volume of sales for the forseeable future.  So we at least have something to plan around.

The most important thing an agent can do as a result, is to re-do their business plan and enlarge their service area to capture a larger audience, based on reduced volume.  If you do 20 sales a year in X area, and volume is down 40%, then expand you geographic area by 40%.  That will at least bring you up to an even playing field.

ALSO, given the diminished number of sales, look for the areas that are only down 15% vs. 40%, and work harder to get listings in areas that have the higher level of demand and lower level of supply.  Supply and Demand are key.  You don't want to have the 20th listing on market in an area that only sells 5 a year!  You want to have the 5th listing in an area that sells 8 a year.

Don't sit home and wait for your check.  If you have a pending sale, stick to it like glue!  More and more sales are not making it to the end.  Buyers will jump ship at the drop of a hat...don't let the hat that drops be YOUR hat.  Stay in touch with all aspects of the transaction.  With volume of sales down, you can't afford to have a high ratio of failed sales.  Take better care of that bird in the hand.

Last but not least, watch your Karma.  A market like this can make you lean and mean, the competition will get fiercer and fiercer as we move into "off season".  Protect your relationships with the industry professionals around you.  Clients come and go...but your Broker, your Company, your peers, your staff, your support services, your mentors and your apprentices...are the relationships that will endure. 

Don't claw your way through this market, or it surely will come back to bite you in the ass one day.

Count your blessings, and applaud the blessings of those around you ALL at the same time.  A tough message to put into practice.  Be happy when the guy next to you enjoys a successful, closed transaction.  Be as happy about that as you would your own sale.  Watch your Karma.

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Rainmaker
659,594
Randy Prothero
eXp Realty - Mililani, HI
Hawaii REALTOR, (808) 384-5645

Good tips, with sales volume down you need to expand your marketing.

Aug 27, 2008 05:58 AM #1
Rainmaker
1,244,581
Steven L. Smith
King of the House Home Inspection, Inc. - Bellingham, WA
Bellingham WA Home Inspector

Congrats on 200K, Ardell. That is a whole lot of points. I praise you for doing it with your own blogging and thoughts, not copying or posting quips and quotes to make points for free as so many others do. It is ALL your material.  You are a great blogger and one of a kind.

Aug 27, 2008 07:15 AM #2
Rainmaker
167,750
Mary Pope-Handy
Sereno Group Real Estate - Los Gatos, CA
CRS, CIPS, ABR, SRES, Silicon Valley

Your "Karma Comment" should be preached at office meetings nationwide. Too many agents do not realize that the importance of the internet does not diminish the importance of relationships. I'm in an escrow now where the other side has been pushing my side to perform above and beyond, while that side is late for every obligation. This is causing my clients undue stress in an already difficult situation. It's not right and it's not something I will forget.

Aug 27, 2008 07:29 AM #3
Rainer
42,621
Craig W. Barrett
RE/MAX 100 - Hughesville, MD
Hughesville MD Real Estate

I understand as you describe the market. I've been preaching sit and wait to some of my buyers for awhile as my colleagues scoff.

 

Aug 27, 2008 08:01 AM #4
Rainmaker
44,255
Rob Graham
Windermere Real Estate - Seattle, WA
Rob Graham

All hail the Queen of Seattle RE Blogging.  Congrats on 200K.  I couldn't agree more about Karma being real.

Aug 27, 2008 09:14 AM #5
Rainmaker
593,907
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate

Oh crapola...Margaret Rome called me last night to tell me that I broke 300,000 ...so does that mean I don't have to write anything about RE anymore?:)

Aug 27, 2008 09:58 AM #6
Rainmaker
304,760
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA

Thanks Rob!  Karma is so very real...

Aug 27, 2008 09:58 AM #7
Rainmaker
304,760
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA

No Neal, it means you can only postulate from on high about really important crap...for about 10 seconds :)

Aug 27, 2008 01:02 PM #8
Rainer
71,403
Anita Beach
RE/MAX Select Real Estate - Maple Valley, WA
Real Estate Assistant - Maple Valley, WA

Congrats on 200,000 points - I'm just getting started so I'm a ways from that but someday I'll get there. I couldn't agree with you more on karma and I agree with Mary that it should be preached nationwide.

Aug 27, 2008 02:58 PM #9
Ambassador
1,090,784
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE

I like the 'don't claw' scenario...yup...good relationships with everyone in our industry will continue on into the future.....this island is way small...and can you believe some just scream, claw and scratch? :)

Aug 27, 2008 05:04 PM #10
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Rainmaker
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ARDELL DellaLoggia

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