Selling Real Estate in FL and NY with over 12 years experience can have it's up's and downs. The only way for a Realtor to survive in this type of situation is take any kind of deal you can and not to have a big head along the way. Thats the method to my madness and I ended the year better than I thought. It's really hard when you are struggling to make ends meat.
If I look back now at 2007 I remember that all I heard was the market sucks and there is no business out there. That might be true but I have to tell you that I haven't post as many blogs as I normally do because of two things...first I haven't had as many ideas to write about and secondly because I was actually busy. Ok...what is the definition of being busy in Real Estate you might ask? Well to me it's a combined effort to try and make things happen. Plant a seed and watch it grow. Just so you understand where I'm coming from I will just tell you that I have been extremely nonstop busy trying to put s few deals together. These are not very big deals but they are deals and I always take anything to keep my sphere of influence going and to keep a bunch in the hopper just to keep me occupied.
My question is to all of you out there...are you struggling because you turn down the little deals or are you taking anything that possibly has a pulse? I do. Right now I look back over the last month and I'm already ahead of the game and that tells me there is business out there. I rarely get anything handed to me but once in a while things just happen from other venues and that is generating business for me in Real Estate.
I know what you are thinking...the media is saying the market sucks and every home is going into foreclosure and the sub-prime market destroyed all these homeowners from keeping the American dream of owning a home. But there were some that abused that privilege and now some of the innocent people have suffered. But I also have read that rates are slowly coming down and there are actually buyers out there that can truly qualify to buy. There are renters that can truly afford to rent and there are sellers that are starting to become more serious about selling.
Sellers are finally coming to the conclusion that if they do not help correct the market then they will just sit and waste time. The more we accept the fact that there will never be the crazy returns we were all reaping in reward and the sooner we shall see more and more business opportunities out there. The only problem is how many can hang on. I'm even getting to the point where I am virtually going to pass up taking more and more listings unless they are somewhat realistic with the selling prices they are wishing for.
A pure example of one is something that happened recently to me. The property was not a very high priced property. We had it for 6 months and we spent lots of attention trying to sell it and also watched the property for the sellers who were elderly and were out of the area. Over time they decided to reduce their asking price and finally we could see activity and offers started to come in. In the last few weeks we had the listing we presented at least 4 offers on the property. It doesn't matter what these offers were but they were in my opinion offers that could have been entertained. They weren't and the sellers didn't even want to negotiate any of them...that's fine with me...they own the property and I wasn't going to influence or force them into anything they didn't feel comfortable doing. I made a few suggestions but in the end they just said they were willing to wait for the values to go up. "Go up?" I don't have a crystal ball but I can tell you this...it will be a long time before we see values go up...we still haven't hit the bottom yet.
I guess you can't force someone into doing something even if you believe it is the right decision and so now they can just continue to wait.
I have another client who was hoping for that certain price and I di get it but the property didn't appraise. She realized that in reality she is still going to well in the end. I figured ot that she owned the home for 5 years and will end up with about a 6% return a year so the end result will be about a 33% return. That's not too bad ....don't you think? But it was over time....not overnight. I didn't have to try to convince her....she could see it.
I wish I could tell you things will change overnight but it can't. This is not the stock market...this is the Real Estate market. The stock market is much more volatile and you can buy a stock today for $50 a share and in two hours it can be at $1.50 a share. I think the public should understand that the Real Estate market didn't just go down over night...its been going on for 3 years .....they just didn't notice it...and thats why we are still trying to catch up. No one can actually predict what will happen.
So think of it this way...when you buy a home your general reason is to have a roof over your head and enjoy having a place to call your home and if you are lucky enough to have it for 5 or more years and then sell it at a profit then you should be happy that you enjoyed your time there and you walked away with a few bucks. The normal return on a home can be anywhere from 5-8% a year. If you can do that then you should be proud of yourself. but if you get spoiled by making a 25% return in lets say 3 months then all you are doing is speculating. This is where the problem lies.You can call it a home or you can call it Real Estate....it's your choice.
Right now the buyers make our market and they will only pay what they think it is worth to them. Florida market values might still be dropping but they are only dropping to where they should have been in the first place. We all want to make money but it truly was spiraling out of control and that's where we are now....back to normal and that's the way it is ...like it or not.
Stop worrying too much and before you know it things will adjust and you will see and hear from more and more realistic people.
Please contact Neal The Real Deal Bloom
-Realtor® /Remax Hometown
2500 Weston Road ,Suite 103
Weston FL 33331
(954)608-5556
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Neal, I was wondering where you were, just a few minutes before this popped up. Neal, we HAVE to do what we HAVE to do to make it in this market. Unfortunately your sellers are not being realistic about when the market is going to come back. Who the heck knows? I wish I had a crystal ball. I spent yesterday getting price reductions AGAIN from my sellers that have moved and need to sell.
I am negotiating an offer and the buyer and seller are 6000.00 off in an area of 360-550K homes. Both are being stubborn. Very frutstrating, but I'm not throwing commission at it. It was listed in March 2007 by another Realtor, they have had carrying costs for 11 months. I don't get it, do you?
I love your saying Real Estate is not as volatile as the stock market. No, it is not.
Neal-
Very good post. I agree w/ you re: transactions are out there if you choose to just take a look. 3-4 years ago, I would NEVER have considered showing anyone a rental property; I would've just referred them to our Property Mgmt. Division. However, I received another check from a rental fee in January. Rental commissions are small here in Orlando but it'll pay to fill up my tank of gas once. :) I would've also referred a couple of small deals last year but chose to keep working with them and they bought, too. Who knows about this market? I spent about 3 months last year trying to figure it out; now that I'm focused on continuing to help people who really want to buy or sell, I'm just doing my thing and actually helping them, regardless of what the market is doing. :0)
Neal.... I honestly think that many of us are busy and very busy. And yes, busier than I was this time last year. I am not hearing as much negative info about today's market. Especially since many of us here on the 'Rain' have been writing positive pieces.
In regards to the sellers negotiating and being stubborn, especially in Florida, where prices in some areas are still going down, they will just price themselves right out of the market. Sure, things could change around, but why take that chance in today's market. Having an experienced professional as yourself should help, but that doesn't always make a difference. As you know, some people just have a mind of their own. Good luck and enjoy your day.
Missy,
I'm here lurking:)
I would rather tell people to take it off the market if they aren't will to see what's happening.
Lisa,
I'm never too big to take a rental. Unless it's just too far to travel to.
Jeff,
Something must be going on because there are actually people buying homes.
Neal: I have had clients that weren't paid attention to or ignored because the agent wanted instant gratification. I have been working with people relocating for a year or more at a time and they do pay off...so all those that I worked with in 2006 came in 2007 and one from 2007 is coming in two weeks. Our office picked up in January and still going. Congratulations with your being busy...it only comes from good ole hard work and effort......with plenty of motivation!
Neal,
We're all having to work harder and smarter these days. I have a seller that needs to come off their price but they are refusing to budge, while still paying mortgage payments on a home they are not living in. What sense does that make? We're going to have a "Come to Jesus meeting this week".
Great post! We are taking listing with realistic seller at realistic prices. Our listings are getting showings. Buyers are also venturing out a little to test the water, and hey that is all part of real estate. It is all up, and it is not all down. Reality is what counts for the buyers and sellers. If they perceive they are making the right move...the market will start to move again! It starts with their real state professionals like yourself that are not afraid to tell your clients the truth!
The market certainly is changing. There are opportunities for buyers -- It is all about doing the right thing for each individual situation. One size does not fit all. I have been very busy in January and it is great. I am optimistic. I think with information, both buyers and sellers can win in his changed market.
Neal, I'm always busy. I may not always be doing deals but there is always something I can do to move my business forward. I get up and go to work everyday without exception. I also do the little deals. In fact, for me, the thrill is in the deal so I really don't care what size it is. I just like to keep busy
My numbers for 2007 were down quite a bit but I still probably made more than my doctor so I can't complain. I do hope 2008 is better thought. But if not......well it will give me more time to blog and work on my tan:)
Neal, I am waiting for the lull!!! There is always something going on even in a down market. People are still buying and selling and there are still many other avenues in Real Estate. I have heard some reports from friends in Florida though, maybe exagerated about being ten 4 sale signs on every street! I know numerous people who eventually want to get a place in Fl so I don't expect it to last too long. If a seller can wait it out then they should. It's the sellers who are trying to get 2004 prices that are wasting time. Glad you are busy:)
Sally,
Thats it...you can't be expecting to always close a deal very quick...you have to establish trust and it takes time even if you lose them in the end you can sleep at night knowing you did what you were supposed to do.
Cynthia,
They are probably wasting both your time and theirs...I'm really starting to walk away.
Jim,
Just like Dave Lininger said..when they ask you to take it for 3 months just tell them you would rather turn them down now instead of letting them down in 3 months.
Joan,
I was a bit concerned in the back of my mind at first....but I always seem to hope it will work out and we were able to finish 2007 with a few deals and start 2008 with a few in the hopper.
BB,
I'm usually always busy too even if it isn't making deals..my marketing and other things keep me from glooming about the problems..that why we survive. We take what we can get under the circumstances. Hey we survived and we can still continue to blog too!
Karen,
Think of it this way...if we stay in the game and the competition doesn't then we have the better chance of converting
Nice to see you Neal! I have seen a bit mor on the buyers side recently and little more reasonability from all. Still not quite where I would want, but getting better. Take all deals if they can be worked!
Neal- This is the market that will position you for the next good market. You help your clients with everything and anything that makes them know you are the expert in your field. Even terrible markets have little spots of sunshine..
Neal: How right you are. This is indeed a buyers market and the sellers are finally realizing they have to price their home right from the beginning
Neal - you just gotta figure out what they want and how they want it - find it and write it
Vanessa,
I'm working a few tough ones this week but hoping a few will pan out so just keep going!
Kaye,
That's right because when it gets good again ..they will call us for standing by them now instead of some agents abandoning the consumers because they just can't take their lumps.
Diane,
I just got rid of another...I'm glad they didn't renew sorry to say...I don't want it until they get where they are supposed to..they know but can't admit it.
Thesa,
Thats all I ask from them...give me something to go in with!
It is a buyers market.Jessica Cordell
You have to build your business, the market doesn't matter. The best will always be OK
Jessica,
I would think so:)
Rick,
I'm not worrying onr bit. I'm busy.
Neal-Roger that. The agents that sit around complaining about how bad the market is should look for new employment. If you have the desire, motivation and dedication to be successful and go out to find business, real estate continues to be a very lucrative profession. Hats off to all those die hards that don't complain and go out each day and make stuff happen. Aloha.
David,
I'm used to it...but since I'm busy with little stuff...I guess you can say....I'll be weathering the storm.
I agree with David. Real estate is still a lucrative profession, full of opportunities. During the good years, realtors simply waited for customers to call. Now, you have to go out and look for those customers and that is what some realtors don't want to do.
Joesph,
There are always ways to keep you in business.