Market is changing, not dying
Letters to the Editor
By Inman News, Tuesday, November 4, 2008.Bookmarking Sites
Re: 'Realtors' jobs are on the line' (Nov. 3)
Dear Editor:
Succeeding in this market requires experience and a willingness to continue to expand market expertise.
Agents with little experience will not be able to benefit from unique marketing opportunities such as short sales, bank-owned properties, renovation properties, limited financing opportunities, special financing opportunities, etc.
Experienced brokers and agents will thrive in this market because we are able to identify new opportunities and target our marketing to viable market segments.
Rather than the usual "move up" listings, smart agents have learned to market short sales, foreclosures, fixer-uppers, etc.
Smart buyer's agents have learned to identify special financing for buyers, have developed expertise in selling distressed properties, and have pursued new home opportunities that didn't exist four to five years ago.
Our market is not dying -- our market is merely changing.
Lenn Harley
Broker-owner
Homefinders.com
Rockville, Md.
***
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Submitted by Robert A. Hulme on November 4, 2008 - 2:55pm.
I agree with Lenn, the Market is going through a transition period. It is forcing Realtors to change how they do their business. The one thing it will do is force out most of the part-timers, at least until things settle down a little. I think this is setting us up for some good things to come, but it is going to take a little patience and understanding to adapt.
Robert A. Hulme
Realtor, GRI, e-PRO
Prudential Utah Real Estate
robert@RobertHulme.com
www.UtahCountyRealEstate.us
801-885-2586
Submitted by Teresa Boardman on November 4, 2008 - 3:13pm.
Lenn - agree with you on this except I am finding in my market the agents are not marketing the short sales or foreclosures, they are just listing them. That seems to be how the system works here, charge the bank little, do nothing and if you get enough of the listings as an agent you make a living.
Submitted by Chad Lariscy on November 4, 2008 - 4:16pm.
Hey Lenn,
I agree, it is a changing market without doubt. Most of the calls I receive are for information on the short sales, distressed sales and REO's. However n my market, which is in the Georgia Mountains, a second home and resort market, we have many listings on the open market that are beter deals than most Foreclosed homes.
Either way, it can't hurt to market to those buyers. Thanks for thought provoking post.
Chad
Submitted by Jack W. Dopp on November 4, 2008 - 5:40pm.
Jack W. Dopp These experts are pretty much correct in their attitudes. I find most "old-timers" are thought resistant, and don't seem to realize that the most exciting change is in learning to use the loan modifications that are appropriate when using regulation Z as a tool with the lenders. Forget about beating down the lender's loan balance--let them keep it in place [thereby showing no asset loss] and get the rate set at 4-4 1/2 % fixed for 30 years. The payments will be less than rent. If they put the property into a revocable Land Trust, they can rent-sell it without fear of triggering due-on-sale clauses which will be enforced again when interest rates start going up. I'm 82 [almost] and when I get old I'll probably be limited in thought-as some of "them" are.
Submitted by Michael Reilly on November 5, 2008 - 6:17am.
One big problem with this analysis... The TARP bailout legislation is putting a crimp on short sales for now. There have been 5 or 6 homes that I know of that were listed as short sales that have now been taken off the market while the current owner tries to "re-work" the loan. One of the homes had 3 offers that were waiting an answer from the lender. The Realtor who did the work handling the marketing, offers and waiting on an answer from the bank... he get's nothing. In other cases, the banks are not responding to a lot of short sale offers until they get a handle on how much TARP tax bailout money they are going get based on their number of bad loans. If they accept the short sale, they risk getting less money from the bailout. Personally, I'll stick with normal deals and let the "innovative" agents deal with that mess.
Michael Reilly, REALTOR
Great Austin Properties, LLC
Website Great Austin Properties
Search Austin Homes For Sale
Submitted by Steve Hicks on November 5, 2008 - 7:46am.
Set aside "DUE ON SALE" clauses and whatch the houseing market come back! This cost nothing and will create millions of buyers now. 4% to 6% will be saved in closing cost on all transactions. Sales can be negociated and closed in hours, not months. It is win,win,win. The buyer becomes a home owner, the seller gets rid of the property, and the lender has the loan brought current.
Submitted by zia montesi / OuterBanksNC on November 5, 2008 - 1:49pm.
Changing Market, yes yet Short Sales / Foreclosure OPS seem to continue to frighten qualified Joe investor who's fascinated by the low prices here at the beach. This past season, a primarily investment / second home market resales I offered a limousine ride, free hot coffee w/piping fresh made donuts &'tour' with a Lender, Licensed Builder & experienced Buyer Agent / Me weekly! Good response and 4 Potential Buyers later I plan to repeat next season. We are shopping still and 3 have admitted they were waiting for the election to make a serious O to P. When gas hit $3.80+ / gallon I did have to drop the limo and stick to my SUV. Marketing for those 3 mos increased hits on all listings available through my website links and continue to stimulate interest. ZZ