Within the past 24 hours, I came across two very interesting bits of information. The first was an informal survey conducted by Ramit Sethi, a recent graduate of Stanford University and co-founder of a Silicon Valley Start-Up. He was asking people what they were doing to respond to the looming "threat" of an economic recession. It was fascinating window of insight to the various coping mechanisms for belt tightening when times get tough. Here's the Slideshare show. Update: Unfortunately, the link is not working properly for the embeded show, so here are links to watch it on a different site:
Later, I was reading the book Microtrends, by Mark Penn which dishes up wonderful nuggets of insight about our society and how little things are making a huge impact in all of our lives. This statement struck me:
"In 1992 when Bill Clinton won the presidency based on worries about the economy, the statistics that came out after the election showed that the period leading up to November had actually been a period of record growth. Attitudes had been most negative at a time the economy was actually turning around."
Remember those words from James Carville: ITS THE ECONOMY STUPID...well, it turns out that it's a little more than that. This is more like it actually is: IT'S YOUR ATTITUDE! And...I refuse to call you Stupid. I think that when people actually LOOK at the FACTS, they arrive at the right conclusions. What's unfortunate is that most of us depend on others to look at the facts and interpret them to us.
If you're in real estate, depending on other people to sift through and interpret information for you will consistently place you behind the curve. It is only when you are armed with the facts about your local market and know what is really happening, you can refute the misguided notions which trap people in a haze of negative assumptions and biased thinking. Just like the scenario that preceded the 1992 elections, the turn-around in the real estate industry will NOT be readily reported on the nightly news. It will only be observed by careful, intelligent analysis of real estate sales in local communities.
Tracking your statistics has never been more important. Where do people find out about your services? How many parties come to your Open Houses? How often are homes being shown? How often are they pre-viewed on line at different sites? It will be about touching base with your mortgage reps to see if their application rates are up or down and keeping in touch with your appraisers to ask if they are appraising more or less bank foreclosed properties.
The most potent defense our industry can offer against a barrage of negative economic news is to call it like it is. If your area is not doing well...don't sugar coat things and hide your head in the sand. Learn to take aim and shoot to hit the target dead center with the facts!
Tell people what they will need to do to sell their homes or frankly let them know that they should wait. Give them the raw numbers so they can see for themselves. The point is...become the Local Expert. Every area will be affected differently. Specialization is your most valued asset.
Counsel buyers intelligently about the fact that home owners will not be rolling out the red welcoming mat to give away their homes...even if the new owner is the bank. These are simply naked realities of life. They're the facts.
If you choose to engage this challenge by hiding, distorting, manipulating or faking it...you won't last. It's about the FACTS...They make true professionals, armed and dangerous to the changing whims of tide & circumstance.
Copyright 2008 Audu Real Estate All Rights Reserved
Visit this Link to read more about Grand Rapids, Michigan and the real estate climate in West Michigan.
Lola Audu, is the Designated Broker & Owner of Audu Real Estate. Our company specializes in helping people buy and sell homes in the greater Grand Rapids, West Michigan area. You can contact us via e-mail @ info@auduhomes.com or by phone at 616-791-0511. Thanks for visiting our blog. Here are links to some of our most popular posts for you to enjoy!
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Excellent post.......I think that you're right regarding your premise to be forthright with your clients...it will serve you well in the long run.
Bob Mitchell
ValueList Real Estate Services, Inc.
I agree with you Lola. I'm fortunate that my market is still solid and home values continue to be on the increase. We are still encountering bidding wars and yet with each new client, I discover that they 'believe' the market is bad. It just isn't! But whatever it IS, I will always be brutally honest and have a strategy to succeed within it.
Good agents succeed in ANY market!
Absolutely Gary, So often we allow someone else's opinions determine our course of action or response. Each of us needs to take responsibility for digging to find the truth for ourselves...and this will differ in your market vs. mine. The lazy agent approach to business has never worked very well...it will be an absolute disaster in these times.
Your so right.. Lola.. In my area I have a Realtor that is over pricing the homes and they are not selling and when he has an open house ...I'm so tempted to tell him that he has over priced the home. I think he's not from this area...but what can we do.. we have to just do our part and hope that the seller will wake up soon and move on...
My views are if your selling a home to move on to the next home in the neighborhood you are gaining too from buying that home. You lower your price to sell.. and when you buy your making a low offer.... It's a win win situation, but not for the home owner who has used all his equity before selling.....
We have to just prepare ourselves for the future and remember that trouble don't last always.
The most potent defense our industry can offer against a barrage of negative economic news is to call it like it is. If your area is not doing well...don't sugar coat things and hide your head in the sand. Learn to take aim and shoot to hit the target dead center with the facts!
With all due respect, Lola, the real estate industry hasn't been "calling it like it is" since sometime in 2005. 2006 was the year of denial. 2007 was the year of monthly "we've hit bottom" and "The worst is behind us now!" and 2008 is shaping up to be the year of the lie - Yun is predicting an up year? Someone needs to drug test him.
You want the facts? Real estate is dead and getting deader every quarter. We're maybe halfway through this. It'll be 2-3 more years before prices turn upward, no matter how deeply the Fed cuts rates or Congress hands out stimulus checks.
The truth isn't pretty, but it is the truth.
The vast majority of the buyers out there with good credit and down payments already know how bad the market is, so this shouldn't be a revelation, except maybe to the sellers out there, with Saint Christophers buried in their yards, who want to believe their house's value didn't really drop 20% and isn't going to drop another 20%.
Good luck to you, the next few years will be tough.
Thanks for you comment Zen.
Denise, I'm glad you found this helpful.
Dick...I think most people who are given the facts know what they need to do. Thanks for the comment.
AAAAAh, the psychology of recession...it is kind of like the lemmings following the leader off of the cliff!!! If one, just one, started running in a different direction, it would save the whole group!
Keep up the GREAT WORK of running in a different direction, I'm with YOU!
Thanks for the post, Loved IT!
Live good. Be happy.
-Mimi
Mimi Osterdahl / The Muljat Group Realtors / Bellingham, Washington
2008 President, Northwest Washington Women's Council of Realtors