Stop hyping my market
Inman blog scan
By Inman News, Friday, June 27, 2008.
Charlotte real estate not as rosy as media reports
Realtor magazine senior editor Wendy Cole was recently surprised by the reaction of real estate agents in Charlotte, N.C., when she traveled there with the intention of reporting on the "upbeat news out of ... a major financial hub committed to smart growth."
The Charlotte market has "stayed strong and steady" through the downturn, Cole said, but the media has made such a big deal about it that agents "say they feel enormous stress about meeting the expectations of sellers who have also read those same cheery headlines. It seems all the positive buzz is making it harder for practitioners there who say the market really isn't as rosy as it seems."
Veteran Chicago Tribune real estate reporter Mary Umberger took note of irony of the situation. "More than once, I have conversed with frustrated members of the National Association of Realtors who genuinely seem to believe that there's a media conspiracy to suffocate the housing market by publishing the data its own offices churn out monthly," Umberger wrote on her own blog.
Umberger's tongue-in-cheek promise to go along with the request to stop reporting good news generated another response on the Realtor magazine blog, Speaking of Real Estate. Realtors aren't trying to have it both ways, Stacey Moncrieff insists. "Our seemingly insatiable desire for 'best' and 'worst' lists ... doesn't really offer us much in the way of meaning," Moncrieff posits. "When attention is focused on any market -- be it a local real estate market, a stock sector, or some other investment -- that attention has the potential to oversimplify reality and even cause a psychological shift, either creating new demands or causing people to wonder 'how long will it last?' "
--Speaking of Real Estate
Sacramento to star on HGTV's "House Hunters"
HGTV's "House Hunters," which focuses on "the emotional experience of finding and purchasing a new home" and takes "viewers behind the scenes as individuals, couples and families learn what to look for," is coming to Sacramento, Calif. While Sacramento has become known as one of the hottest areas for distressed property and foreclosure sales, HGTV is actually looking to produce a show on a "green home" or a million-dollar-plus property, blogs RE/MAX Gold Associate Broker Gena Riede.
--Sacramento Real Estate Voice
Trolling for FSBOs
Robyn Hardy, a "real estate technology strategist" and the former owner of Prudential Aegis Realty in Tucson, Ariz., is preparing to launch a system where she'll use buyers as bait to troll for FSBOs on the Internet.
If you have "a ready, willing and able buyer," why wouldn't you show them all the homes on the market, including FSBOs? Hardy asks. Beginning Aug. 1, she'll deploy a system where buyers and agents post their needs on the Web, allowing potential sellers to look for a match before they even put their homes on the market. Buyers will be prequalified and assigned to agents who will also send out "House Wanted" postcards.
"All requests for contact info regarding the buyers must come through my business development team, which generates an opportunity to share with my agents," Hardy says. She hasn't decided whether she'll require a buyer broker agreement -- she has "not found that approach to be effective in the past."
--RealBlogging
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Submitted by Wenceslao Fernandez Jr, BS, Realtor, CDPE on June 27, 2008 - 6:08pm.
The Charlotte report seems to have been written with me in mind. I tend to attempt to paint a picture that will entice buyers to get off the fence by bolsting about the positive strides we're making in our Miami real estate market.
You see, overall, and although inventories have continued to rise over the last 6 months, we have also seen a steady increase in the number of sold properties as well as those pending (under contract).
This has caused our months of available inventory to drop from a high of 57.8 months in January to a low in May of 42.8 months (based on Closed Sales) and from a high of 51.5 in December to a low of 27.4 in May (based on Pending Sales). Not bad for a market that went supernova and then plunged.
It is true that the effect is that sellers expect this to mean their property should sell tomorrow at peak prices. However, what it really means is - buyers beware.
If they (buyers) don't get off the fence and start playing soon, the next article they read may report that the market is finally in a recovery stage and that everything is rosy, just as everyone wants it to be.
What this would actually mean for them is that, while waiting for it...they've missed the bottom!
In contrast, when approached professionally and properly presented, a good Realtor should be able to explain and persuade sellers to remain cooperative, keep prices in check and their property staged and in show condition.
Buyers still rule and the faster they sell, the faster they can become a buyer themselves to take advantage of their next super purchase.
My experience has shown that this helps sellers quickly forget the pain of selling as they enjoy the power of buying in this market.
As a metaphore, I compare it to childbirth (only from what I can gather as a dad but...here it is).
If it was soooo painful, why have more? Typically, because the rewards outweigh the pain. I feel that going from upset sellers to happy buyers have similar long term pleasure points.
The natural childbirth process typically promotes the use of a coach (usually the dad or a significant other), to get through the painful process. In comes the professional Realtor.
After the delivery, comes the emotional festivity and celebration of the miracle of life. Isn't it somewhat (even remotely?) similar to how it feels when you first turn the key in the front door keyhole of your new home?
So then, let's get through the process, and let's focus on the intended reward before its too late.
Let's do this before we have to start paying higher prices and possibly, higher interest rates that will not only increase our payments, but will very likely keep many from affording real estate...again?!
www.MiamiRealEstateKing.com
Certified Distressed Property Expert
Miami-Dade County, Florida.