In business there is so much that is out of our control. Unemployment rates, interest rates, and housing prices. Don’t ever get caught waiting for those factors to influence your personal income. There’s only one market you can master and that’s the six inch market - otherwise known as the space between your two ears.
There are many new agents currently doing well because they don’t know how the market is supposed to be. There are many veterans waiting for the market to turn to “normalcy”.
This is normal.
In each of the last five decades, there has been price growth and retraction; high and low unemployment; wars and peacetime. People are still going to buy and sell homes. In 2008, somewhere between 4.5 and 5 million homes will be purchased on the resale market. How many are you going to sell?
It’s a good life!
Brian
Currently rated 4.6
A pretty normal week this week for the Buffinis: four kids in basketball, one riding competitive dressage and the twins in ballet. Eight practice sessions, two piano recitals, one three-day horseshow and a partridge in a pear tree! On the side, I get to create curriculum, present events, and run a 250 employee company. There are definitely days I go to work for the rest.
The truth of the matter is that you’re hectic too. We’re all so busy being busy sometimes that we can forget there’s more to life than just doing. There’s being.
The great King Solomon once said that life is just a puff of smoke…so on a regular basis in the Buffini family we call a timeout. For us, that means Hawaii. This is a place where the whole family knows how to chill out and just hang with each other. No agenda, no lists, no worries. It may not be Hawaii for you and yours, but whatever total relaxation looks like, call timeout and get there.
Tonight, I’m at Chuck-E-Cheese’s for the birthday party of one of my kid’s friends. I know I can survive this because tomorrow it’s aloooooohaaa!!
Currently rated 4.4
Recent data distributed by Realtytrac, a company that compiles data on home foreclosures, showed that foreclosures are not a national crisis, but more of a regional problem.
There are pockets, places such as Stockton, CA and Las Vegas, NV where the foreclosure rate is in excess of 4%, however, the national average is 1.033%. Considering the fact that 30% of all homes are actually free and clear of any mortgage, the true foreclosure rate is actually seven tenths of 1% of all homes.
Although the media loves bad news, organizations such as MSN, Time Magazine and others are now starting to report factual data such as this to give the market some perspective. They whip everybody up into a frenzy and are then able to present a counter balance story. Either way, know your facts, know your numbers and give your clients perspective.
Great sources for data on the web are NAR, AARP and MSN Money. In print, check out Realtytrac, Swanepoel Trends Report, and Money Magazine. I’ll also be doing my best to distribute solid data so that you can keep perspective and help your clients do the same. Keep your head down working hard.
Currently rated 4.3
Why is it that it’s so hard to consistently do the things that are good for us? I had an early morning appointment with my personal trainer. I enjoy the workouts, I enjoy his company and I always feel better afterwards. As I lay in bed, however, I came up with at least six really creative excuses, stories and screenplays to tell him why I wasn’t going to make it. My internal monologue immediately chastised me for my lack of integrity, so my mind immediately came up with three business reasons why I shouldn’t go.
In the end, I went out of duty; not devotion. When I showed up my attitude was less than stellar, my physical energy was low and my knees were hurting. When I left, I felt better. I knew I would.
Sometimes it’s hard to do the things that we need to do the most. I don’t know why that is but my encouragement today is, some days you feel like it; some days you don’t…do it anyway! Some days you win; some days you don’t…but keep trying.
Oh no…I’m at lunch now. Is it the salad or the cheeseburger? My mind is off to the races again. Stay tuned…
Currently rated 4.5
I think it was Mark Twain who said, “On St. Patrick’s day there are only two types of people in the world; those who are Irish and those who want to be.” I always liked that guy!
One of the things St. Patrick is known for is driving the snakes out of Ireland. If St. Pat were alive today, however, he would say that this market adjustment has driven the snakes out of the real estate market. There were a small number of sub-prime lenders who made promises to their clients that couldn’t be kept and speculators who wanted to buy and flip real estate to double their money overnight.
Real estate is the single greatest investment in history. It meets financial and investment needs while providing emotional comfort and physical security. For those of us who love this business, believe in the value of real estate and get a thrill from helping someone who never thought they could afford to buy a home, this market is like St. Patrick’s Day every day.
Dia dhuit agus choladh saibh! (God be with you and sleep well!)
Nationally, the market is correcting itself and becoming more "normal". I have lived through this and seen the animal before. In the nineties in San Diego, our prices dropped over 30% and many agents were forced to leave the business.
There are two magic words you must remember: market share.
This may mean you do fewer deals, but proportionately you will actually be doing more. You’ll always hear me talking about not comparing yourself to others, but this is the one time it’s good to do that. Look around you. You might be down to one deal a month but keep perspective. There are people doing nothing.
Right now, make a commitment to your career. You might be doing fewer deals and making a little less money but it’s time to expand market share. Everyone is in a different place but it’s time to increase your percentage of the transactions going on around you. Intensify your commitment to the activities in the Referral Systems and you will come out of this market in a great spot.
While it is natural to feel bad for anyone facing foreclosure or a short sale it’s VERY important that you don’t over-own your clients’ problems. Whether they made some bad choices in the past or are responsible folks who have been put in a difficult situation because of job loss or market changes you can’t own it. The best way you can help them is to listen for their concerns and then help them get to and stay on the solution side of the problem.
In a tough market like this, your clients will see you sticking it out and their level of trust and confidence in you will increase. You’ll become the trusted advisor to their database and a professional they and their friends can count on.
Currently rated 4.1
Today, many of you are dealing with clients who are hesitant about getting into the market, or wary about moving up to a new home. The reason these people are on the fence is because they are afraid of paying too much for a house. They feel like they’re at a store and want to make a purchase, but they’ve been told the store is having a sale next month. Fact is nobody knows where the bottom of the market is. We’ll only know after it has already corrected itself and is on the way back up.
Ask your clients why they are buying a home. Determine what their motivation is and help them through any concerns they have. Let them know that now is a great time to buy because:
Waiting often doesn’t pay. Buyer opportunities have never been better so help your clients build long-term wealth with a home and watch your own business grow at the same time.
Currently rated 4.8
Have you ever noticed when the Fed cuts rates and there’s such a big deal about it in the media that many times it doesn’t show up in a reduced mortgage rate? The only problem with this is that the typical consumer thinks that the Fed rate and the mortgage rate are the same.
It’s a good thing to always be prepared to let your clients know that the Fed rate is the rate at which banks borrow money; not the rate at which they loan money.
Right now, what the market needs is not another rate cut but a loosening of the mortgage restrictions so that more folks can qualify for a home. But don’t worry…every time the market goes through a correction and banks get scared tightening up their lending criteria they eventually loosen up the purse strings again. It’s a gradual process and not one you’ll particularly notice but trust me, banks need to lend money to make money. So folks with decent credit and a good job who may not have large down payments will be able to get back in the game very soon. The recent legislation to expand the conforming loan amounts will certainly help entry level buyers in the more expensive states.
Once first time buyers can buy, move-up clients can sell and the high end will loosen up as well. This is all a very predictable cycle that’s been happening for over fifty years. Stay the course, build your business…there are plenty of opportunities out there.
I’ve always had fun with technology over the years; I appreciate its possibilities, and am excited to be moving into cyberspace with this new blog. This space will be a great opportunity for me to connect with you on a more frequent basis and to share some of my thoughts on business and the market. It’ll be a new dimension to our relationship.
If you’ve ever been to one of our nationwide events, you know how strongly I believe in cultivating relationships as the way to build a rock solid business. Relationships are the cornerstone to working by referral and the surest path to a long-lasting and fulfilling career.
This blog will be somewhat conversational and written in more of a stream of consciousness. If you’re interested in receiving it automatically, click on the RSS Feed button at bottom right and you’ll receive the blog automatically as we update it.
So I’m glad to finally join the blogosphere and keep in touch on a regular basis.
Currently rated 3.0