One of the hardest parts of being a Real Estate Agent, is that one minute we are advising a Seller and the next minute we are advising a buyer. I will not make light of that...it is very difficult to be in that position and where understanding what Fiduciary means becomes so very important.
I just finished writing two articles on my blog.
Should I sell my house NOW or should I WAIT?
One of the best tests of determining whether your advices are best for YOU or for you clients, is to write you own posts like this, back to back.
Now go back and read them to yourself.
Is the answer the best answer for you in each post?
Did you say "NOW is a GREAT TIME TO BUY!" to the buyers and then turn around and say "NOW is the BEST TIME TO SELL!" to sellers?
Did you apply the same outlook for the future of real estate value when you were talking to buyers as when you were talking to sellers?
Of course there are some people who SHOULD buy now and there are some people who SHOULD sell now. That is true in any market. But if your answer is always and to all people the answer that results in a "sale" for YOU, then you do not understand what Fiduciary means. Simple as that. Yes, it would make you a good salesman and if that is what you are, then good - just be honest about that.
Don't call yourself a Fiduciary on your website and in your promotional materials, and then act like a salesman with your clients.
If this makes you stop and think and not know how you are differing in your advices to buyers vs. sellers, then take the challenge. Write a post to buyers about whether now is the best time to buy; and then write one to sellers about whether now is the best time to sell. Then look at the picture in this post and ask yourself if what you wrote sounds like it came from two different poeple :)
Great post, Ardell. I am not sure that a lot of agents understand the meaning of fiduciary. Not really. I have often thought about the point you make hear. How can it be a great for everyone to buy or to sell? "Now is a great time to Buy" means what - it can't be if it means in terms of savings on a buy or maximizing a sale. What if it means something else, it is a great time to get on with your life? Buy high, buy low?
Miriam,
Like I said in my article, it's like asking if it's a great time to get married or the best time to have a baby. If you have to ask someone else...then likely the answer is no.
Ardell, We rarely work with buyers. We take pride in being listing agents. But here in Florida, it is presumptuous that we are not fiduciary in our duties, we are transaction brokers unless we specifically enter into a single agent relationship. In a transaction relationship saying it is a great time to buy to a buyer and a great time to sell to a seller is not a problem. It is being a good salesperson. I am proud to be in sales. IT is a matter of perspective. I have always been one to whom seeing both sides comes naturally and easily, because I am empathetic in nature. That is not two sided, that is seeing something from different perspectives. Happy 4th of July Independence Day!
Ardell, This should not be a dilemma for an agent. Seriously, if you disclose that you represent both sides to the other and if you are comfortable with full disclosure to the point that you do not create an advantage or disadvantage for either side then it is a plus to both sides.
"In a transaction relationship saying it is a great time to buy to a buyer and a great time to sell to a seller is not a problem."
It's not a problem for whom, Katerina? I think it is a problem for the person asking the question, don't you? If the answer to one or the other is a lie...then it is not "being a good salesperson". If you are saying the same thing to a buyer as to a seller, then likely you are lying to one or the other, and honesty is required just about everywhere, fiduciary or not.
Bill,
You sound like you are talking about Dual Agency. I'm not talking about Dual Agency. I'm talking about in the morning you have a buyer asking if it's a good time to buy right now...and in the afternoon you have a seller asking you if it's a good time to sell right now.
Two different people...two different houses...same answer?
Say someone says "Should I buy this year or next year?" Then someone says "should I sell this year or next year"? NOW picture them in the same room when you answer the questions :)
One way that it could be a great market for both buyers and sellers (at least in certain markets -- like mine), is this:
Sellers have had homes appreciate much faster than usual for most of the millennium. Although prices have gone down, they are still going to get to take advantage of that appreciation if they sell today ... provided that they bought prior to 2003 or so. Now, if they are upside down and took every penny of equity out of their home at every turn ... well, that's their fault and they need to deal with that on their own.
For buyers, it is always about buying low and selling high. Only very recently did a "flip" bring a buyer so much money so quickly (sometimes through double closings), but before the era of free money you had to buy a house and actually hold onto it and ride the next wave of appreciation. Since none of us have a crystal ball, it is up to the buyer to decide if prices have come low enough for them.
It all comes down to your client's needs (it's not about our needs, but theirs) and whether they see the glass as half empty or half full. If their situation dictates that they want or need to buy or sell, then nothing should stop them from doing so.
Our job is to present them with information to make an informed decision -- not the make the decision for them.
Interesting image -- it could be one face looking directly at us, or two people looking at each other. Just like the image, whether or not it's a good time to buy or sell is all a matter of perspective. There is no universal answer, everyone's scenario is unique. And doing what's best for the buyer or seller in the long run will always be best for the agent.
I agree John, as long as you would be most comfortable telling the Seller it's the best time for them to sell and the buyer it's the best time for them to buy IF THEY WERE IN THE SAME ROOM AT THE SAME TIME, then you likely have hit the right balance and achieved honesty.
But if you wouldn't answer the question to the seller in front of the buyer, or vice versa...then not.
"It all comes down to your client's needs (it's not about our needs, but theirs) and whether they see the glass as half empty or half full."
Interesting point, Jesse, and likely more true of your market than mine. In my opinion, our glass is 93% full :) Just as different agents will have different answers, different markets will as well.
Ardell, I believe that understanding what "fiduciary" truly means is what may be lacking with some agents. I don't see them trying to play one against the other like I use to. You hit the nail on the head when you said," understanding what Fiduciary means becomes so very important."
I must respectfully disagree about the word "salesman".
I don't think the word is indicative of "take their money and run!"
I am proud to be a "salesperson" in many ways! I love having the sales skills needed to "read" people and intuitively guide them the right direction...to be able to ask the right questions and "hear" with more than my ears. A great salesperson ALWAYS places their client's interests before their own. At times your client needs you to ask for the sale!
I strongly feel there is a difference between a "professional salesperson" and door to door-one time close salesmen.
I believe in COMPENSATION (earned) vs: Commission...
and, I'm proud to be in my profession of sales/marketing and I'm Proud to be a Realtor!
I think that if a person is dishonest...you could call him President or a Buyer's Representative but if it walks like a duck and quacks like a duck...we should call it a duck!
Happy 4th of July and thanks for the "thinker"...I don't mean to be a stinker!
Later in the rain~Deb
Ardell, For anyone who knows me or has read my posts they know or come to learn that I don't believe in "me" telling others when is a good or bad time to buy or sell. Everyone's situation is different. Only "you" can predict for "you" when it's a good or a bad time to sell. When one needs my overall view of the market, that's when I can give them an overview.
Very interesting topic. I think when the agent focuses on the clients personal needs and goals that is what is ultimately important and I take pride in that. We are on the listing side more often than the buy side but either way, whatever side we are on, we are hired to help that individual client with that individual's goals. We will always help people by being consultative and maybe even recommend a seller not to put the house up if they are not ready and if a buyer is not showing their commitment to move foward or if the mortgage payment would obviously stretch them too thin, we will recommend a different option. I think if you look at each case seperately and are acting in the best interest of your client, than you are a true advocate. We like to think ourselves as the best advocates of buyers and sellers in Philadelphia.
ARDELL, I have way too many thoughts on fiduciary for one comment but let me give you a few of them.....
OK that's it for now:)
Deb,
I won't argue with you...you did a good job of arguing with yourself :)! Happy 4th of July!
Mana,
And when they want that overview, what do you tell them about this year vs. next year?
Christopher and or Stephanie,
Only you can answer what you may tell a buyer if they ask if they should buy now or wait. That is the question. If they aren't asking the question, then that is buyer is not the subject of this particular post.
If the buyer wants to buy and the seller wants to sell and neither is asking you if NOW is best...then that is not the subject of this post.
BB,
"Fiduciary is too high of a standard for most agents."
I do not disagree with this. It's like NEVER telling a lie being different from ALWAYS doing our best to be honest.
Always trying our best is all that anyone can expect, and I hope posts like this one keep people moving in the right direction.
It should always come down to what is best for an individual buyer or seller. I do listen to my clients and advise them based on what their goals are. I don't think sales are my strongest point so I do much better with people who have already made up their mind to either buy or sell. I don't really want to spend a lot of time with people who are unsure if they want to buy or sell.
I am addicted to real estate and real estate news. My mind is like a sponge and I try to absorb everything and anything out there.
If you go back through my blogs, you may get the impression that I do not have a solid view on whether it is a good time to buy or a good time to sell. I am the first to admit that I have no idea where we are going to be in six months (I have an opinion but we all have them) so I have no idea what is good for whom without an individual assessment. That is why I encourage people to evaluate their needs, wants, expectations and ability today. Tomorrow is never promised. If we all waited for tomorrow we'd never get anything done.
Based on facts though, in a market like mine, Maryland, I can see the positives on being on either side of the fence. There are bargains to be had for buyers and sellers who didn't buy at the height of the boom or refi irresponsibly should not have to come to the closing table with a check. Will that change? Your guess is as good as mine!
Plus, as long as someone isn't upside down, immediately purchasing again and staying within the same geographic area, it should be all relative -- the seller may end up selling for less than they would have two or three years ago, but they are also going to be able to buy more house for less money. Ideally, it should all work itself out.
Someone I just got an amazing (we're talking at least $150k below FMV) for his new primary residence. If you ask him, he is happy that he got such a great deal. If you ask the seller, he'll probably express how happy he was to get rid of the house -- he owned it for so long and did not need to make a profit. It's all about perspective.
Ardell, with the prevalence of Internet and media coverage on the logistics and climate of buying or selling homes, I believe that customers and prospecive clients are aware of the Buyer's Market.
It is not a good time to sell, but a great time to buy, in general. However, this depends on the individual and accompanying set of circumstances, i.e, credit score, cash flow, employment stability, etc.
Some folks would like to sell or need to sell their homes in this buyer-slanted market. If so, it is my duty to help them achieve the most rapid sale for the maximum price.
I do not practice dual agency for the reasons you so aptly stated.
In theory, I work from the facilitator and counselor perspective, rather than from the sales-driven model.
Finally, I try to listen to my clients carefully and help them determine their needs, goals, and challenges. If they need more time or information to make an informed decision, then I will accommodate.
I am still learning...every single day.
Thank you for a thought-provoking post which I tshall take to heart.
Have a Happy and Safe 4th of July.
Ardell, I am my best friend! Later in the rain~Deb :)
P.S. I would like to argue the fact that I was not arguing...
I know several that are. It's definitely a tight rope walk. However, I always try to be as honest as possible regarding the market to both buyers and sellers.
I was at an open house last weekend and I heard and agent talk about the same fact. They said to the seller of the house how great of a time it was to sell your house. Then as they were walking through the house I heard the same agent say to her buyers that this is a great buyers market.
Now I knew that she was at least 50% right. It was either one or the other. But if I was the buyer and heard both the statements it would concern me what was the real intention this Real Estate Agent had.
Great Post!
Like many either or questions, in real estate the best answer is often "it depends". It depends which geographic area, it depends on the price range, it depends on whether someone's asking about new construction or resale property. I try to help my clients with their goals, not mine. In my market we've had some great appreciation over the long term. We all have short memories, but homes were still bought and sold when interest rates were 18% with a 2-3yr inventory backlog. It was just a different kind of a transaction with different solutions. Buying a home is still a great investment, but so much more. In my market if you're selling moving to a lower priced market like Florida, your happy.
I'm with you Carolyn, except when the answer is more obvious. When it's grey...it's their life, not mine.
But I will show them where black becomes grey and where white becomes grey...for THEM, if they are overlooking something that they do not know, and I do.
"If you go back through my blogs, you may get the impression that I do not have a solid view on whether it is a good time to buy or a good time to sell. I am the first to admit that I have no idea where we are going to be in six months..."
Jesse, there will alwyas be times when we are more sure and when we are less ure and when things are in such a state of flux that we have no idea! As long as we are honest in the moment at all times, then we are doing the right thing. If we have felt the same since we started blogging years ago...well that would be a sign of dishonesty.
It is in the way we change as facts change that we show honesty...consistency is not a requirement of blogging. Open mindedness and the willingness to change opinion...is more important than being consistent.
You don't need to justify yourself to me...just answer these two questions for yourself:
"I'm only planning to own for a year or two...should I buy?
"I'm thinking of waiting until next year to sell because the market is soft right now, should I wait and if so how long should I wait?"
If you tell the seller that this year is better than next year, then how would you justify telling the buyer to buy? If the market will be lower next year for the seller, won't it also be lower next year for the buyer?
That is what I am asking everyone to think about.
"It is not a good time to sell, but a great time to buy, in general."
I would not say that is true here in the Seattle Area, Roseanne. I also think the credit crisis will affect all markets for a few years, regardless of how low (or not) they have gone to date and before the credit crisis.
Tracy,
That is clearly the best any of us can do. Maybe we should record ourselves and listen to it at night before bed :)
Bruce! Thank you so much for that real life example! I'm going to re-post it in bold in case anyone missed it:
"I was at an open house last weekend and I heard and agent talk about the same fact. They said to the seller of the house how great of a time it was to sell your house. Then as they were walking through the house I heard the same agent say to her buyers that this is a great buyers market.
Now I knew that she was at least 50% right. It was either one or the other. But if I was the buyer and heard both the statements it would concern me what was the real intention this Real Estate Agent had."
THAT's what I'm talking about...exactly.
Judy,
I totally agree with you. I spent most of my youth on Lancaster Avenue. Did you know it was the first paved road in the United States?
Ardell, My overview is The Truth backed up with a lot of proof. Way before I turned to Real Estate, I was a math major. I love working with stats and numbers. However, I always tell them the ultimate choice is "their choice".
Mana,
I am glad that most of our clients do not put that decision in our hands. Most come to us to buy or sell with their minds already made up about what they want to do. It's only when they are dealing in the short term that we find outselves needing to be a voice of reason.
If someone says, "I want to buy for one or two years and then sell for more than I paid...well, all I can say is they better buy a really ugly something in good shape, and put in some sweat equtiy. There's always a good answer for everyone...just not the same answer.
Ardell, I think I have been fortunate. My clients have been mostly first time home buyers who do not plan to sell in 1-2 years.
Please do not get me wrong, I do direct my clients and give out my opinion, but I leave the decision making to them. In some cases after I have come to know my clients better I have talked them out of their move, and have kept them updated on the market. As I said earlier, everyone's situation is different and as their agent I have to respect that.
Ardell - it's a very interesting question you pose.
I haven't read your two blog posts so this may not be a fair comment but your question seems to suppose that the only relevant factor is the state of the local real estate market. But there are always other things at play, so it seems to me the question you are grappling with is essentially hypothetical. On reflection, my view is that as tempting as it may be sometimes to answer questions like that, it is impossible to do in the abstract. Until all of the client's relevant facts and circumstances are known to the agent, a 'yes' (or a 'no') answer may quickly be revealed to be incorrect, once the facts come home to roost. Those are my thoughts, for what they're worth.
Ardell, None of us have a crystal ball. How do we REALLY know what the market will do in the future? We REALLY have no way of knowing. We DO have educated ideas.
There is no "great time" answer, for buyers or sellers right now, in my opinion. I know in my market, Huntsville, Alabama, we are still appreciating, in most areas, but a few pocket areas had no appreciation last year. Those areas did not LOSE value either.
I advise my buyer OR seller, according to the area, subdivision, etc., that they are interested in. I can only advise them on what I know to be factual, and that is today's market, with the facts I can present to them, up front. It may be a "buyers market" in one subdivision, but not in the next. Same with price range, etc. We all know this.
It is my job to educate my clients, and let them decide for themselves. I would NEVER push anyone to buy or sell, never. If I feel it is not in their best interest, I am the first one to stand up and tell them.
What a thought provoking post. Good job!
Elizabeth,
If your market is stable, then I agree, and you are indeed the exception.
Ardell...
Well Blog Boy has this one covered. That being the case this comment is a park and follow the thread zone :)
TLW...ROAR!
Ardell-I like that word, Fiduciary. In fact I had my Agents go back to the COE and read it, then we role played scenarios that would show if the Agent was actually in a fiduciary capacity to their client. Amazing how a couple of them needed this over and over. No matter how many times I thought they got it, they would do something that made me cringe. Yes, many agents don't get the concept very well....that's my opinion, and I'm sticking to it :) :)
Oh, to answer the question I tell most sellers if they don't need to sell, or they need more than the market will bare, to wait if they can. It's not the best time for many sellers, depending on the local market of course, along with other considerations. To buyers I tell them it is a good time to get a good deal.
Kathy,
If you do any market updates on your area, I'd be interested in seeing them. Palm Springs; Palm Desert: West Palm Springs. I never heard of West Palm Springs until now and would like to know the price variations between those three areas for the same type of property.
When you have time, of course.
I'm thinking Redondo Beach, Kim's thinking Vegas...seems Palm Springs would be the in between zone...no?
Regardless of classifying yourself as fiduciary or transactional broker, I believe a great litmus test to your intentions is to ask yourself when was the last time that you recommended something to a potential customer that was adverse to you earning a fee/commission.
If you can't remember, then you are probably not making legit recommendations. You are potentially making only self serving recommendations. You don't need to be a martyr, you just need to look out for people that rely on you.
Great thougth provoking post.
Ardell- Are you guys thinking of opening down here? I will do the market updates for you (actually I sent your request to my VA :) But even before it comes in I will give you the simple unofficial version. West Palm Springs is cheaper, then Palm Springs, then Palm Desert.....not in all cases of course...but generally speaking. It really depends on what type of RE........same as up there I am sure.
As a transaction broker in Florida, I do not have any fiduciary duties to seller and/or buyer. I have worked with seller and buyer in the same transaction and I don't feel it was any more difficult than working only on one side of the transaction.
It's no different than being the referee in a tennis match. You sit on the net, your feet never touch either side. The main thing to keep in mind is that whatever you make, whatever your commission is, never enters your mind. It's not about the sale, it can't be. I must always be about your client and in the case of a transaction broker having both sides of the transaction, it's about the seller AND the buyer. It's that simple.
Ardell, even in the best of markets I advised my clients that there are no guarantees in real estate investments and they have to examine their risk tolerance when buying a home. Being a conservative investor myself I advocate caution, but some buyers were willing to take more risks. When people ask if it's the right time to buy or sell, it implies that they have other options, i.e. they don't have to sell or buy. Evaluating these options and understanding the clients' needs as well as the market and other alternatives is part of the agent's role.
There is one easy test to consider in regard to being a client's fiduciary. For example: if a client's house is not selling and there is a financially beneficial opportunity for them to rent the house out, would an agent recommend this alternative. I came across this recently and was surprised by what I found.
You are raising a very important topic and we could all benefit from this discussion and introspection.
I think the key here , ARDELL, at least for me is that it really does vary per property and person and situation. I can't really apply generalizations for every situation, but I do have an ability to see all of the influencing factors and have on many occasions told people to rent rather than buy or rent their house out rather than sell it. It really just depends and I would answer my buyer in the morning and my seller in the afternoon in one way - consistent honesty. Is that what you mean? In the mean time, I guess I sell houses either from one side or the other... Happy 4th:)
Ardell - I've not had time to read the comments, but I did read both of your other posts. I believe you have covered this well. As you much more eloquently noted, the answer to both questions is, 'it depends.' Every buyer and every seller faces a different set of circumstances. So, yes, a situation could occur where a buyer and a seller were in the same room (not talking about the same property) and the answer to each could be yes. The fiduciary part is the key. That affirmative response must be based on the interests of the client regardless of the interests of the agent.
I have always represented both buyers and sellers, and would never have problems with both sides hearing the advice I am giving either. Regardless of the market, there are people that gain an advantage by buying, and others that will gain an advantage selling. And others that won't. Of course, there are some that have to buy or sell regardless of whether it is a "good idea."
As long as I maintain the needs and situations of my buyers and sellers instead of the current ad of the NAR or C21, I know that the advice that I give is intended to help my clients.
I'd say Peeples is a People Person :)
"Of course, there are some that have to buy or sell regardless of whether it is a "good idea."
Abolutely correct, Lane.
Ardell- NO, I am not lying. IT is a matter of perspective. IT is a good time to buy right now if you are a buyer because you can get some great deals right now, interest rates are still near historic lows and the list goes on at the very same time it is a great time to sell if you have to sell your home as a short sale because you can no longer pay your payments and have a hardship because until the end of 2009 you will not get 1099'd if this is your primary residence and the lenders are wanting work outs. I AM NOT LYING! and I do take offense that anyone would claim that saying this is a lie. IT is all in the way one looks at the situation and if you are really trying to help people. I can tell a short sale seller that this is a great time to sell at the same time telling the buyer who wants to buy that short sale that this is a great tim to get this at a reduced price. That is not lying! It all depends on the motivation of the buyer and of the seller.
Everyone is a salesperson. A child is, a wife is, a husband is. There is not a person in this land that has not sold something tangible or idea or whatever, at one time or another. A good salesperson will lead a prospect to discover their need and then fill it. That is very honorable. Without sales, the ecomony of the world would just about stop.
Of course, Dual Agency should be eliminated. The Brokers and Team Members are also mixed up in the "Deal". And, outside people (like Appraisers, Inspectors, Title Company personnel, etc.) are "influenced by one side or the other.
It is several individuals and not just one person.
Will eliminating the Dual Agency eliminate the Scam problem? Not really, there is a deeper problem to this dual/quad representation/Real Estate structure.
Ardell.....it is all about what is best for the client at that particular time. As you said "fiduciary" is what our relationship should be about.
Hi Ardell,
Great discussion. Oh boy...there are as many answers to that question as their are buyers and sellers. No one is exactly the same!
I have one couple for whom selling and moving up would be a win-win....naturally, they are paralyzed and won't act. Condos and cooperatives have done well where this couple would be selling and moving up. They would be buying into weakness in the SF market. What's stopping them? The credit crunch. They want "more" house then they can now get a loan for. Nothing will change that and its only going to get worse before it gets better. Meanwhile they are in a small 2 BR cooperative with two kids crammed in like sardines.
In another case, I have someone looking to buy, but its for the very long haul. Monthly payment is more the issue for them. Since interest rates look to be heading north - buying now to lock in a good rate would probably make sense. Temporary gyrations are not an issues in this purchase.
One first time buyer wants nothing but new construction and they are mostly in cash....buy now? Not a good idea since they aren't thinking past the next 3-4 years and are not willing to deal with a fixer.
Katerina, sorry to upset you. But I can tell you that most people reading this sentence:
"In a transaction relationship saying it is a great time to buy to a buyer and a great time to sell to a seller is not a problem. It is being a good salesperson."
is one of the reasons they question the validity of advices from agents.
Jay,
This is not about Dual Agency. It's about having a seller client in the morning and a buyer client in the afternoon. Two separate and unrelated situations.
There's another lesson in this. Ask people who aren't in the business. My sister came to see the fireworks and couldn't believe anyone would tell one person it's a good time to buy, and in the same statement tell someone it's a good time to sell. "time" being NOW. She thought it was hugely unethical.
What we think doesn't always sync with what people generally think. I'd like to see us get on their page just a bit more.
There's always the YES Agents:
Q. Is it a good time to sell?
A. YES
Q. Is it a good time to buy?
A. Yes
Q. Should I make a full price offer?
A. Yes
Q. Should I accept this lower than full price offer?
A. Yes
Q. I this a good deal?
A. Yes
Etc,etc, etc, etc, ........
Michael,
too funny.
Hi Michael!
Happy 4th of July! I'm posting some photos of the fireworks for you that I just took from my bedroom window.
What time is it in Iraq? What day is it in Iraq :)
Ardell, I do 99% of my business in a one square mile area. It is a good time to sell for those who can't afford the taxes and the increase of values that come with the gentrification of an area. I was one of those and I sold my home in my market area. However, it is a good time to buy as this area will increase in value with the new Black Rock train station in 2010 and if you buy a home where you can afford the taxes. I downsized and bought a home in a multifamily area with no views of the water. The home I sold and the home I bought are both within the one square mile area.
I don't advise people to sell, who shouldn't sell now. I've told some of my clients to wait until the new train station is in. For others who can't afford to pay their taxes or need to sell because of relocation, I am there to help them sell. I don't advise everyone to buy in my market area, especially those on fixed incomes who can't afford future tax increases. The values are rising and thus the assessments are rising as well.
Gentrification creates change and causes some to sell and others to buy. This means business for me, but I still try to advise my clients with regards to selling or buying based on their individual circumstances.
Ironically, because of an invitation to a Fourth of July party, I spent this afternoon in my former home of 20 years that I had to leave because I was priced out by increasing values and thus increased taxes. The couple who moved in have updated my old home and are now adding on a beautiful addition that will take advantage of the water views. I'm not upset by this because the alternative would be for my market area to decline in desirability and value. This time, however, I have a plan. I'm in an area zoned for multi-family properties and will convert the top floor to an apartment which will pay for my taxes in my old age. Of course with no pension and a sizable mortgage, I'll have to keep selling real estate into my 80's, which again, is not a bad thing.
Gail! Into your 80s? WOW! I don't think I've seen someone selling real estate at that age. Take a picture when you get there and send it to me :)
Great B L O G.
Couldn't agree with your argument more..
Ardell, ok, so here goes. It IS a great time to buy because interest rates and prices being this low at the same time gives them a lower payment and just like the stock market ... when it's down is when you should buy. For the same reasons the below is true for a move up seller, it is true for a buyer.
IF a seller wants to know if it's a good time to sell, depending on what they are doing, the answer would be something like this. IF your home was worth $300,000 3 years ago and you buy up to $500,000 that's a $200,000 difference. The down payment at 20% of the $500,000 purchase price is $100,000 and your payments are based on $400,000 loan amount.
IF your property has dropped 20%, then your home now is worth $240,000 and you sell and the property you are buying is $400,000 because it dropped 20% too, then the difference is $160,000 and the 20% down payment on $400,000 is $80,000 and the payments are based on a $320,000 loan. Isn't that a good time to sell for the move up seller? You bet it is, YES they take less but buy for less and their property taxes are less, payments are less for 30 years, etc.
I don't see a conflict and NO I am not a two faced agent. I am helping them analyze the market to assist them in THEIR decision making in terms of what they can do with their investment and their purchase or sale. That's my job, the decision is up to them.
Terrylynn Fisher, Contra Costa County, California Realtor, CRS, SRES etc...
Good comback there Terrylynn.
Let's say it is the seller that is buying down and a first time buyer. Try that one.
I think I just like to get an agent to say to someone, anyone, that now is not a good time...sometimes :)
Actually I do. Circumstances like this. Last 12 listing appointments, my advice has been 4 to list, 8 to wait. The wait were various reasons, often something like this scenario.
If they are retiring and moving to the last place or already own the place they are going to I would say think about not selling now if you don't have to. Why? IF you hang in there, using the stock market analogy of ups and downs again...how we tolerate them, etc. But better yet, we keep your property, rent it out and you now have some income or break even situation, you have nothing to loose. And, who do you know that could save $25,000, $50,000 or $100,000 in the next ten years from their salary or income? I don't know many people in that category.
So, why would you not keep the property and let it grow, while renting it out for income, using your tax deduction, etc. and then perhaps moving into it again to get the exclusion when you sell? Just something to think about. But there are lots of scenarios where it is better to hold on to the property IF you believe real estate is a good investment and I DO. So, as Realtors our advice comes from our experience and bias', that's just the way it is in any kind of sales. The clients that are attracted to me want my advice and counsel. We play devil's advocate, pros and cons and they decide. It's my job to give them boths sides of the coin. It's their job to decide which benefits them most.
That's a five star answer Terrylynn!!!
It's Saturday morning about 10:50am here ARDELL, should about 11:50pm there. We're not big on fireworks over here, so send the pics. It's a little cooler today, about 115.
I already posted them for you...before midnight!
http://www.activerain.com/blogsview/579120/Fireworks-from-Kirkland-to
Hi Ardell! - Yep, knew about Lancaster Pike being the first paved highway in the US. Have had family in this area since the 1700's; not me personally :-) No such thing as a "former" Philadelphian. You know it's in your DNA when you crave decent pizza, good bread, a real cheesesteak, a Tastycake or great ice cream and you wouldn't be caught dead saying "Philly"! I agree with you. Your basic premise is so true that if you have never advised a client of ALL of their options, including those options that aren't self-serving, then you are not living up to your true professional responsibilities. Most people are perfectly capable of making their own decisons if they have all of the information when they need it. That's my professional responsibility - an informed Buyer or an informed Seller.
Thanks for the pix ARDELL, wish I could have been there.
Ardell,
You raised some tough issues----judging from the amount of responses you received, one can see that it is thought provoking. Good Job!
Best is an interesting word...and that needs I think, to be interpreted in light of whatever the individual circumstances are for the buyer or seller...Best because....I can't afford the mortgage, I want a tax deduction, I need the cash for assisted living, I am being relocated and don't want to be an absentee landlord. Just as real estate is by neighborhood....it is also very individual.
.Hello Ardell - Congrats on your featured post and generating so much discussion! I read every comment - I think the discussion and the thought process it provokes is a good thing.
As you and others have stated, whether it's a good time to buy/sell or not is a complex personal decision. I just wouldn't make a statement like that either way. It may be generally true, but not true for this client.
My job is to give them the facts that help them make a personal decision either way. Facts include market conditions, recent trends, current prices.
I don't have a crystal ball: I can't tell them if prices will go up or down in my market. I can tell them what some market experts are saying. I can quantify certain impacts e.g. if prices go down by x% but rates rise by x%, what does that do to a mortgage payment.
This information will help a buyer/seller make that decision. And if their decision is that it is not a good time to buy or sell for them, I hope that they will be future clients.
Just tell your sellers to price it right or it will sit...then they make the decision. Most don't want to hear what the real value is. Buyers are entitled to receive the same market info and if they see what the inventory looks like and what the values are at that moment then they make the final decision. I can't force a person to make an offer just because I say it's a good time to buy. It's a good time if I think I would buy it.And motivation makes the seller decide which way they want to go. In the back of our minds we hope feel the same.
Ardell, I'm not sure that is either a yes or no, because it depends on the individual seller and the individual buyer. Sometimes good time to sell is not about fidicuary. If a seller has been transfered then they must sell, rent or sell in the current market conditions.
For buyers if they have been renting and now prices are down where they can afford then yes it is a good time to buy.
We do tell buyers that are moving to Ann Arbor for 2 years or less it is probably better to rent, unless they want to take the risk of the market not coming back or appreciating in the next 2 years.
When we use to appreciate 8% every year they would break even, but there is no guarantee right now, in fact our market has gone down.
So it totally and absolutlely is more about the selling condition and the buying the condition of the people.
Great article. Reminds me that I do things right because I love what I'm doing.... Helping people. When we do things to make a buck, eventually we get caught in a web. I know I'm supposed to make money, but I believ if I keep doing the right things, I will be rewarded.
Ardell,
I agree with you. It is SO important to make sure what comes out your mouth/written word is TRUE. But even in the same market real estate agents say completely different things.
This man called me last week and after talking with me for about 10 minutes said, "You are the the 6th agent from Cape Coral I've called today and you are the first one to say anything intelligent." Why? Well because I tell people the truth whereas I think many others just say whatever they think that customer wants/needs to hear.
I have no problem telling someone that NOW many NOT be the time to sell or buy. You'll generate more business in the long run. Who is going to be a repeat customer or referral source when they feel misled so an agent could make a sale sooner than later?
I'm in this for the long haul. Even though we are in a transaction relationship here in Florida, it is still about doing/saying what's right.
Great post, I enjoyed it - makes people THINK.
Ardell, I absolutely HATE this market. I'm finding, in the absence of being able to encourage a purchase with the notion that it's a "great time" (in NY, things may look bleaker with Wall Street layoffs looming), the personal enthusiasm is not present for me right now. Additionally, we don't take listings that are going to sit, so being the bearer of bad news is just, well, deflating. That said, I look forward to a return to a time where it WILL be a great time to buy or sell- until then, I feel much like a facilitator for those that are seeking property with the understanding conveyed that things could well get a bit worse before they get better. For those that have bought, it's been with full disclosure of our "take" on the market, and the understanding that buyers need to plan on spending time in the house of choice if they take the plunge. Fortunately, there are those that have needs beyond a bit of lost equity.
Most of my work is with buyers but in any case being honest to all parties is a must.
Most of my work is with buyers but in any case being honest to all parties is a must.
There isn't a one-size-fits-all answer for this. For some, this is the best time to sell, even in a down market for their reasons. I have told some people to just wait if they really can't clear what they want - but for those who are upsizing - it's a fantastic time to sell, even if they take a major loss. They are going to make money when they buy, depending on how far up they are climbing. One couple I know saved 300k on their purchase - any loss they take will be absorbed readily. For some it is a terrible time to buy because they just are too financially wobbly to keep up what got them qualified for a loan - that call is not for us to make. As a fiduciary, we can advise, but that's not our decision.
I understand you are trying for an edge with the two-faced agent comment, and you seem somewhat sincere - but I think you are too cavalier with the representation of your colleagues in this post. Obviously, there are different legitimate trains of thought that you don't agree with...there are some comments/words you've posted here that I feel are potentially damaging to yourself and others.
That's too bad. I think this discussion will be misleading to a number of agents and clients reading it.
Great question, but for me the answer is really easy
it is a great time to buy and it is NOT a great time to sell.
You have to be true to your words and believes
I have my ASR and my ABR designation and I get questions like
Well, what side are you on?
I am on my clients side the one a represent in this particular transaction.
Anne Hensel
Real Estate Broker ABR, E-PRO,
C-CREC, TRC, ASR, RECS, AHS
St. Petersburg Florida
www.AnneHensel.com
I cannot tell you how much "commission" I have either sent to another agent or just flushed down the toilet all-together because I tell it like I see it. If I would not do it (buying or selling) than that is exactly what I tell my clients. I will never get rich this way, but I sleep very well at night.
It seems that many of us are trying to view home ownership solely through the lense of an appreciating investment. I'm not sure that's the best perspective and it might be part of what caused the problems we have at present.
Now is a good time to buy if you want the intangible benefits of ownership vs. renting: pride, stability, security, something which you can modify or adapt to suit your personal needs. It's a good time to buy if it will be a blessing rather than a curse, i.e. it is something you can afford rather than something you are really stretching to pay for because you think (fear?) you will be priced out of "the market" soon. If it goes up in value over time (which real estate does tend to do), super; that's a nice bonus.
It's a good time to sell if you are moving on to a different phase of your life and the home you own would be a burden to that rather than a blessing.
Unless you are buying/selling solely for investment purposes, those, I think, should be one's primary considerations. Life considerations, not "the market" should be the reasons for buying or selling.
If you are the LISTING AGENT on a House, you shouldn't be representing a Buyer on that same house. Just stick the sign in the ground and do the Disclosures properly. It may or may not be the best time to sell and it may or may not sell. Your disclosure specifies that you are representing the best interests of the SELLER(s) to sell it at the Highest Price in the least amount of time. Do the Contracts coming in even get to the Seller; probably not in a lot of cases.
If you are on the BUYERS SIDE, you are showing SEVERAL HOUSES and let the Buyer(s) decide on which property they like best. You assist them on the terms and conditions of the contract to best protect them and provide as many credits as possible.
To tell either party that it is a good time to buy or to sell is SILLY. The BANK is usually the one with all of the money and is the one that is really running the Show anyway.
Dual Agency is the dangerous situation; the Agents are not actually like a 1099 separate little company...they are usually part of a much larger organization, team, etc. When it is the SAME PROPERTY that is where the problem lies. Are their Good & Honest Agents out there that can handle this situation...Yes!!! Are there 2-Faced types mixed in...Yes!!!
Do you go to Walmart and ask the Salesperson if it is a Good time to Buy?
Yes, I just heard a Realtor state that we are at the "Bottom" of this depressed market and it is the time for Buyers to Buy and Sellers to Sell. (The Realtor represented Bank's REO Properties)
It also has to do with what area the home is located in. Here in Houston, some neighborhoods are great for buyers and some are selling well. The style and age is also a determeining factor if you should buy or sell. Therefore, If you understand this concept you can represent your client.
Dawn,
"..but I think you are too cavalier with the representation of your colleagues in this post....Obviously, there are different legitimate trains of thought that you don't agree with..."
Actually Dawn, I feel exactly the opposite of Anne Hensel, yet I believe that what she has said is true for her market and the opposite is true for my market. Real Estate is Local.
What matters is that whatever your belief about your current market conditions, that belief should not change depending on which side your bread is buttered.
The fact that Bruce heard this statement himself:
"I was at an open house last weekend and I heard and agent talk about the same fact. They said to the seller of the house how great of a time it was to sell your house. Then as they were walking through the house I heard the same agent say to her buyers that this is a great buyers market.
Now I knew that she was at least 50% right. It was either one or the other. But if I was the buyer and heard both the statements it would concern me what was the real intention this Real Estate Agent had."
is my point. If I have caused even one agent to think harder before doing that...then I HAVE represented my colleagues well. We don't represent our industry well by pretending, we do it by encouraging best behavior.
We may get paid when something sells, but we do not sell for a living...we represent people in their most important asset for a living. I believe that as do most of the people who are buying and selling property. If I can change the way agents talk to one another, to get them to stop calling people "leads" and stop all the "sell, sell, sell" mentality, I would.
I always remind an agent when they say "the deal fell apart", that talk like that is about the agent. What really happened is about the seller and the buyer. If either is better served by closing not taking place, then it is a good thing. If neither were better served by closing not happening, then it is a bad thing.
Upgrading the industry as a whole, by causing people to stop and think before they say things that are potentially harmful to the buying and selling public, is not misrepresenting our industry. In fact, I think ALL States should outlaw the use of "puffery", which most States permit. Pretending the market is better than it is, or worse than it is, so as to sell more is wrong. To do one and then the other both in the same day...well...at best...it's "puffery" and at worst it's lying.
Steve,
Liked your comment, and of course it's true.
"Unless you are buying/selling solely for investment purposes, those, I think, should be one's primary considerations. Life considerations, not "the market" should be the reasons for buying or selling."
And yet I have had several people who want me to tell them that the property will be worth more in two years and frankly there are times when I have answered yes to that...but now isn't one of them.
One of the things that really bothers me is that I see the same agents who told people that prices would go up (and they were correct) several years ago, now saying "they don't know'. When they truly believe the market will go up, they are screaming it from the rooftops. But when they truly believe it will go down, they all of a sudden don't know anything.
Maybe "I don't know" is its own answer. But I was amazed at how many people (agents included) believed that home prices could never go down, before it did. I have actually met people who truly believed that the price of a home could not be less than what they paid for it.
Ardell,
Working as an inspector, I know this can be a slipper slope for agents. As with all things in life, it seems that some of them navigate the waters better than others.
Ardell,
Bruce's comment: "I was at an open house last weekend and I heard and agent talk about the same fact. They said to the seller of the house how great of a time it was to sell your house. Then as they were walking through the house I heard the same agent say to her buyers that this is a great buyers market. is indicative of a market which is becoming balanced. But Bruce and you seem to think the agent is lying, to suit the audience. A balanced market is what happens in between market shifts, and it comes and goes, and we are having that in our market. Just because someone doesn't understand the speaker's meaning, doesn't mean it is a lie.
Your comment: "We may get paid when something sells, but we do not sell for a living...we represent people in their most important asset for a living..." is strictly incorrect in respect to selling. We do sell for a living, whether that fits with your personal view of yourself, I don't know. But it is the truth. And there is nothing disagreeable about it.
For you to say we do not sell for a living is patently ridiculous and just playing with words.
We do represent people in their most important asset, that is true and must be kept at the forefront. If it was kept in the forefront by all agents, perhaps our profession would not have a low esteem with the public. However, removing the sales portion of our field is not the answer.
You seem to be having issues with being in sales. Being an ethical, compassionate salesperson is completely respectable. I don't know why you are denigrating the profession. "Leads" and other word choices aren't our challenge. Calling agents two faced is not a solution. Calling marketing wording, otherwise known as "puffery", LYING, is silly. Under this point of view, then staging is lying, merchandising is lying, opinion writing is lying - only telling the absolute, unvarnished facts qualifies as truth.
And REALTORS(r) are sales people. And it's okay, of course.
Dawn,
It's only a lie if you don't believe it or if it is totally contradictory to what came out of one's mouth five minutes ago.
I believe what I say. It makes it my truth...and my hope for others. I've been in real estate for 18 years. I've been in the business of representing others in a fiduciary capacity for 35 years. I have never been a salesperson.
I am reminded of the time a huge red stain in the carpet was covered with an area rug and the agent said "that's staging and it's up to the home inspector to find it". I have never seen a home inspector lift up an area rug under a coffee table.
Under the guise of "everyone's doing it" many people don't look inside to find their highest purpose and best method. Sometimes you have to write the post that suggests that EVERYONE is NOT doing it.
I was once asked to help an agent assist a client. The client then revealed that she was only planning to live in the area for one year and planned to sell the property at the end of one year. Without giving the particulars here, I can tell you that there was no way in hell that particular property would sell for more than she was offering in one year's time. What do you do with that? Do you help someone with that? The buyer wanted to buy it. The agent wanted to sell it, and also needed a commission badly. The buyer wasn't asking if she could sell it for more in a year...at least not while I was in the room. Do you pretend you didn't hear it?
We face many challenges in this business. I saw another agent saying there is no way real estate can ever go down! Saying that to a client. If that client buys five properties from that agent, do we say Great Job!!! and High Five him? Some will. Some will continue to do so after reading this. But a few will think about it differently having read this.
I write for those few.
That is not my experience, Dawn.
I was deeply moved by this comment from "Options Realty".
"Ardell, I absolutely HATE this market. I'm finding, in the absence of being able to encourage a purchase with the notion that it's a "great time" (in NY, things may look bleaker with Wall Street layoffs looming), the personal enthusiasm is not present for me right now. Additionally, we don't take listings that are going to sit, so being the bearer of bad news is just, well, deflating. That said, I look forward to a return to a time where it WILL be a great time to buy or sell- until then, I feel much like a facilitator for those that are seeking property with the understanding conveyed that things could well get a bit worse before they get better. For those that have bought, it's been with full disclosure of our "take" on the market, and the understanding that buyers need to plan on spending time in the house of choice if they take the plunge. Fortunately, there are those that have needs beyond a bit of lost equity."
At the very least I hope that I have helped someone understand that the enthusiasm is to be focused on helping someone make the best decision they can make at this time. If you think it is your job to sell something to the one person who isn't seeing what everyone else is knowing, then you will not be happy.
"It's only a lie if you don't believe it or if it is totally contradictory to what came out of one's mouth five minutes ago." That comment isn't the average person's definition, the dictionary definition or legal definition - that is based on relativism.
I wasn't saying" Everyone's doing it so it's okay." I meant, lying is not confined to agents - it is a human issue. Of course EVERY HUMAN doesn't lie - but it's not uncommon.
Are you lumping all agents into the category of those who shoehorn and say whatever it takes to get a sale? That is the impression I am getting from the tone of your writing. Please correct me if I am wrong, for I am also understanding that I am in with those other agents since I don't agree with you.
You are a salesperson, Ardell. Like it or lump it, you sell real estate.
What's wrong with that?
With that, I leave the final word to you. It's your post.
Here's my last word, Dawn - WWJD? I ask that of you, and no one else.
"Are you lumping all agents into the category of those who..."
This is one of those "if the shoe fits" posts. I'm not lumping anyone together with anyone. In fact that's one of the biggest lies in Real Estate, isn't it? That we are all the same?
Great stuff Ardell,
I am to hosest myself so it is very hard for me to be two-faced.
I really believe that there are so many agents today, (sorry) some have gone back to their old jobs. That sometimes will say what ever they can to make the sale, that means even bending the truth.
I myself tell the sellers or buyers exactly what might be in their best interests on the investment end. Life is to short and at my age, I am not going to express to my seller that it is a good time to sell if it's not. Or that it's a great time to buy when it's not.
There are enough agents out there doing this and I have to live with myself knowing I may have screwed someone over.
My wife always tells me how stupid I am for speaking the truth to clients, but that's my job.
Robert Swetz
In Indianapolis, it is a great time to buy, however it is in fact a great time to sell as well if you think about what it might be in six months...it could be worse! We are a fairly seasonal geographic location, so once August/September comes...you want to be on the market and not wait until November or December. We have pockets in our area as well that consistently sell well. As a buyer's agent...it maybe a great time to buy depending on the sellers motivation on the home they want to buy. I think there are SO many factors that enter into whether it is a good time to buy or sell that you could say it is a great time to both a buyer and a seller in the same day.
Ardell...
I just had to swing back by and let you know that I have read every single comment via my email. These are the types of conversations that will, in the foreseeable future, change the way we conduct our businesses. Once again, I say...I'm proud to be able to call you a friend :)
P.S. Would anyone in their right mind want you as an enemy? That's a rhetorical question :)
TLW...ROAR!
Ditto TLW.
" My wife always tells me how stupid I am for speaking the truth to clients, but that's my job."Robert Swetz
That's very sad, Robert. If it means anything to you...I don't think you are stupid at all. Any man who can look himself in the mirror every night is clearly NOT a stupid man.
Dear Ardell,
That is a great post, hence all the responses. I believe it's in the nature of our business to "face" different scenarios in different ways. As you mentioned sometimes it is the best time to sell for a prospect even in a market that's not that favourable for sellers in gneneral, but perhaps the seller has their own agenda, i.e. relocation, downsizing or even upgrading (which I believe is the best thing to do in a buyer's market, just read my blog for this post on that topic ). I do believe that we need to be honest to our prospective customers and help them with only their goal in mind. I think that's the only way one can measure succes in as a Realtor, by how you actually have helped your prospective customer/ client. It should be a win-win situation regardless, because if they don't decide to sell, they'll realize that you've been very honest with them and this needless to say will work out best for the Realtor as well and if you can only think of that "closing check" than this should motivate you as well, because a well served prospect is more likely to refer customers to you. I had this experience once with a guy that would do the hardwood floors of one of my clients, when he came in he mentioned that nothing needed to be done but an inexpensive treatment, this was in my Realtor haydays, so I was just very impressed by his honesty, that I have refferred him out since.
There are customers that I advice to lease their apartment and see if at the end of the lease term the market is more favourable to selling. I can guarantee you that because of this advice this particular customer will see my advice next year as well.
In short if you're in Real Estate for the long run than you will serve yourself well by always keeping you prospective clients goal in mind before anything else. If not you'll might make a quick buck, but you'll never become the RTealtor of choice in your market place, becasue news travels fast and that's besides some legal ramifications that dishonesty as a professional might have.
Best regards,
Anoir Redouane
Hoboken NJ
Anoir,
I didn't mean to...but it seems to some extent I have apparently drawn a line in the sand. Glad to have you on my side of that line :)
There is a thin line between being a salesperson (aka: salesman), and facilitating a sale as a consultant. A salesman closes deals, overcomes objections, and their sole goal is to make sure the potential buyer becomes a buyer. When people rate salesmanship, they often say things like "He/she could sell ice to an Eskimo", obviously meaning they're so good, they can sell something to someone they have no need for, and would be a fool to buy.
Sales is about making sales, and thats it. For example, if you were a car salesperson, and you were overheard by the manager dissuading someone from buying a car (for any reason), when they could easily get the loan and liked the car, you would likely be fired.
A consultant is asked for a professional unbiased opinion (by the potential buyer) so that the client can make a informed decision with a higher level of confidence. To the consultant, it's irrelevant whether or not the person buys or doesn't buy. A good agent helps their client make an informed decision, and if they decide to move forward with purchase, makes sure everything is handled properly.
Every person that facilitates a sale, isn't a salesperson; it's how you go about "making" the sale that makes the distinction.
ARDELL's distinction between the two is that we (as agents) have a higher calling and greater obligation than merely closing the deal.
ARDELL has made it clear that she isn't a salesperson, and Dawn is certain that she (Dawn) is.
Neither are wrong.
(now you ladies play nice)
LOL, Michael. Well Dawn can certainly be certain that Dawn is. She just can't be certain what I am :)
Ardell- You said it yourself, real estate is very local. In our area, it is a great time for buyers to buy, and sellers who HAVE to sell to sell for whatever those reasons are , short sale, divorce, death, etc.
I was clarifying and clearing up what I mean by my first comment in my second comment. You only went back to my first comment and must have missed what I was saying in my second comment.
I can say to a buyer that this particular house is a great opportunity right now to buy it at 50 cents on the dollar. The prices are still going to go down so let's make sure we get this house for you for 2003 prices. Now how long are you going to stay in the house, 5 years? That's great, that will work for you. If you are planning on selling in one year, no way should you buy now, you should rent.
I can say to the seller of that same house, you just got served foreclosure papers. You say you don't want to do the foreclosure and your bank turned down your refi and your mortgage modification? Oh, so your attorney told you to call us because doing a short sale is in your best interest? Great, this is the best time to sell your home as a short sale because we will be able to get multiple offers on your property in a short period of time, we will be able to negotiate the short sale with your lender now. Oh, you lived in the house 2 out of the last 5 years? Great, President Bush signed a bill in December so you won't get 1099'd. This is the best time for you to sell before your house is lost in foreclosure. Just like your attorney said!
Now that scenario does happen here. We are in a totally different market than you. AND I AM NOT LYING! When I told this to both the buyer and the seller.
We do work that no other agent in our can or wants to do. We work extra hard setting up donation funds for some of our sellers, give them the numbers for food stamp applications and VA help for paying their bills, etc. These sellers are left with no choice but to sell.
Then we have high end sellers who are trading up. They are financially intelligent and decide for themselves that they are taking a loss right now in this market but gaining on their new purchase. This is a good time to sell here in our area for that reason. Our luxury market is much different than most places.
That was the point I was trying to make. Don't take my words out of context, please.
When the market was booming here with out of this world price increases, Nestor told me we were not going to be selling residential real estate because we do not want to be a party to the bust. We had buyers coming up to us asking us to sell them 2,3,4 houses in pre construction phases so they could flip the houses before they were sold. We asked them, can you carry the payments should the market crash, can you take care of the payments if you don't get renters if you do have to close. Of course, they could not, so we said, we will not be your agent. You should not be a flipper unless you are financially capable of being one. Well, they got other agents to do it for them and they spent the nights camping out in front of new construction developments to be first in line to buy when the sales offices opened, because the prices would go up $1,000 PER HOUR! PER HOUR! It was crazy.
Well, those same people are crying to us now because they are losing all those flipper houses they bought and got stuck with when the market here crashed with a big bang. Nestor predicted the bust was around the corner, we told our BNI members to not to buy anything! The mortgage person was very upset with us for saying that. He said we were hurting his business. We said, it is the truth and it is worth telling.
What did we do during the hay day? We put together land assemblages for builders like Centex and Lennar and Pulte Homes. We got the buyer, the developer and the sellers, the landowners together to make some big deals that were win/win for both parties.
I can look at myself in the mirror every day and know that I follow my principles and values. We sleep well at night.
As my wife would say "my goodnes!".
Katerina,
I very much appreciate your taking the time to elaborate. It is important that there be a record beyond what the public surmizes that we do. What we REALLY do doesn't make it's way out into the public enough.
I know it took emotion and time to set the record straight, I write the hard posts that can't be answered without effort. Thank you for contributing that effort.
Hey Michael,
Not your typical "nice post" comments, I'd say. Hope you're enjoying this over there in Iraq. I think it's cool that we can still stay in touch.
Ardell and Michael- Everyone is in sales.
A great read on that is Dale Carnegie, How to win friends and influence people. Sales is about relationships. It is now called relationship marketing, relationship sales. Whether you are a 4 year old trying to convince your mom to buy you a new toy or a wife and husband trying to sell each other on Mexican or Italian food tonight, to facilitating a transaction, to solving a problem, to calming down an irate person, we are all 'selling' all the time.
The Denver Business Journal has a great article about this. But the book is the best.
In this article the author is addressing that every person from your receptionist who answers your phones to the bookeeper who cuts the checks, they are all a part of a salesteam. They are representing your company and that is selling.
Here is a quote from the article that explains it better than I can say,
Yo