The Glass is Half Full

An insider recounted the conversations of a meeting of multi-office real estate brokers that took place recently in Seattle, WA.  To paraphrase, not only have a goodly number of large, well-established real estate firms recently been shuttered, but more firm failures are on the way.

Large firms are sprinting to cut costs while maintaining state of the art technological advances.  They continue to recruit new agents while at the same time culling the dead weight.  Training, technology, and yes, good old-fashioned nose to the grindstone methods are what is proving successful for agents and firms even in today's trying market.

The market itself still has some water to bail before the ship is righted.  The peak of the foreclosure activity is predicted to occur in Q1 or Q2 of 2012.  It will likely be summer of 2012 before the pace of sales (units sold) will slowly start to see an increase of 2%-3% annually.  Even when the numbers start trending upward, it is still likely that prices will continue to see downward pressure as foreclosures and short sales set the comps in otherwise healthy areas.  Nationally, the prediction is 10%-15% off today's pricing; regionally I don't believe the SE North Carolina Coast has much room to fall, but who am I!

You'll recall that back in '07 I predicted the "bottom" for Q2 2010.  Looks like I missed it just a bit, but I think the Feds and their 1st time Home Buyers program only delayed the inevitable while pushing my forecast off track a good bit.

Bottom line, buyers rule the roost, and cash is king!  Well qualified buyers are still coming to our market from both directions (North and South).  Taxes are driving NE buyers to Wilmington, and the heat, congestion and crime are driving Southern buyers "half-back" from whence they came.

Customer service in the brokerage business is proving to be a key ingredient in success or failure of individual agents.  A recent client of mine told this story;

      "I visited Wilmington and drove through a neighborhood that I found particularly appealing.  In that neighborhood, there were three homes with for sale signs in the yard advertising three agents with two different firms.  I called all three.  Only one agent called me back the same day, and I never heard from the other two at all!"

That client shopped for two days, made an offer that was accepted and closed within 21 days.  Nearly a week after my client had moved into his home, one of the other two agents he had called sent an email to him acknowledging his inquiry, and encouraged him to email her back if he would like further information.  Really?

To paraphrase Julia Roberts, "Big.  Big mistake."  I am somewhat amazed that in this market an agent would wait thirty days to contact a potential buyer, and then via email.......  Note to self: Take some of the $7000 I made on that transaction and take her to coffee!  Maybe she'll turn her phone off while we chat!

I still find direct mail advertising to have some benefit.  JUST SOLD, JUST LISTED, etc postcards have resulted in at least five transactions this year, and being relatively new to general brokerage has done wonders to my "street cred."

When I was in the hospitality industry I regularly preached the following:  "Everyone in the food business sells a cheeseburger.  What is going to make someone on the street want your cheeseburger over someone else's?"

As a REALTOR, I am not the prettiest of cheeseburgers, but my clients choose me over some of my peers because I just plain work hard.  I pick up the phone, I return calls, and I do what I say I am going to do when I say I am going to do it."

As a dedicated buyer's agent, here is my take- the grill is full of burgers right now.  They are hot and ready to eat.  Best of all, if you're well qualified or have cash, the owner of the cheesburger stand will make you one heck of a deal.  As a good freind of mine likes to say, "you gotta eat when the buffet is open."

Well friends, the table is set and the food is prepared. 

Bon Apetit!

Kirk Pugh
Coldwell Banker Sea Coast Realty
http://www.searchingwrightsvillebeach.com/