Robert H. Bouknight

A broker, just like the agent's that work underneath them, is largely motivated by sales volume and expansion. Just as in any sales business, numbers count and without them there is no business to speak of. In life, there are always motivational forces driving us behind the actions we take, constantly taunting us to succumb to temptation and lose sight of our goals and our vision for the future. In Real Estate, brokers and agents alike are driven by the same numbers game, and often lose sight of all else, hindering a greater understanding of economic growth. Unlike many other professions, Real Estate training is virtually non-existent and typically amounts to little more than weekly meetings and informational sessions. For every agent that is successful in the Industry, there are many that don't make the cut. As a business, taking on additional partners is a necessity to boost sales volume although there is never a guarantee that a new associate will become an assett. In short, there is no guarantee because many brokers do not take the time to actively train and oversee the activities of their agents.

Having worked for multiple brokerages in the Real Estate Industry and several companies, I have been provided with some insight into the failings of agent recruitment and sales growth. The professional development of agents, whether they are new to the business or weathered experts, should be the priority of any brokerage. Weathered agents will, no doubt, have more experience and therefore require less training as well as have a larger client base. New and younger agents will have less experience and a smaller client base, requiring more training and development to meet the needs of the industry and the consumer. However, it is younger agents that will be more likely to employ technology in their business and provide for the future success of any brokerage. Taking a step away from sales growth and investing time and resources in the development of these younger agents is key to sustaining growth. Brokerages, by taking on a Real Estate Licensee, are taking on a business partner and all the responsibilities that come along with it. It is detrimental that these new recruits are afforded the opportunities and education necessary to gain standing and success in today's Real Estate market.

Agents and Brokers are partners with the same goals, and if the brokerage is the right fit, the same vision of what is to come in the future. I was fortunate enough to find an office and broker that viewed this partnership in the same light, and took training and development very seriously. Darrin J. Friedman, Branch manager of the Branch Vice President of Coldwell Banker's Chevy Chase Office, is one of these forward thinking individuals. Under Darrin, training and development is a part of the daily interworkings of the office. Technology is the future of this industry and Coldwell Banker, as well as The Chevy Chase Office, has taken the steps necessary to advance.

Staging a home correctly is one of the most critical aspects of the home selling process. It can either make or break a deal, and has the potential to attract buyers or send them running towards another listing in the neighborhood. It may even bring buyers to question whether they want to live in that neighborhood in the first place. When it comes to an open house, presentation is everything and without taking precautionary steps to make it a success, it can truly be a disaster.

To begin with, avoiding clutter in your home is the first step to providing a warm, desirable atmosphere. No one wants to enter what could be there future home and find clothing or other odds and ends laying around. Make sure that all personal belongings are tucked away and out of sight, as this can be an eye sore for anyone who decides to take a look at your home. This does not necessarily mean taking down picture frames and other decorative items that may provide a homely presence and inspire a connection between both parties. Although it is important to minimize the presence of such items, in some cases, they can allow for a warm, friendly environment. A sterile home, void of any personal touch, is never a good representation of a family home, although it may be conducive to younger couples or individuals looking in the market for a townhome or condo.

Staging, or enhancing the aesthetic value of your home, is secondary to removing clutter and can only allow for an effective presentation if all clutter has been alleviated. Consulting a Real Estate agent on this matter should be the first step in determining the proper staging technique for a given property. This will vary widely depending on demographic and location although simplicity is always key. An over-staged home will seem cluttered and overwhelming which will surely not be conducive to a sale unless the property is listed far below market value. In some cases, a home staging company may be beneficial to a sale and your Real Estate Agent may suggest looking into this option. In most cases, this option should be avoided as it is costly and not necessarily going to improve the appearance of the home. Higher-end properties and those with large interiors are more likely to benefit from hiring a home staging company.

Effective lighting is vital to the overall appearance of each and every room within a home. Make sure that all lights are in working order and for rooms without overhead lighting, a lamp can suffice. Dark rooms, regardless of their location within the home, are never going to provide the ambience a future owner will be in search of. Lamps and many interior lights can be purchased at low cost and will give you an edge on the competition. During an open house, it is vital that the Agent running the open, stage the lighting of each and every room to show it effectively.

Temperature control, or use of a.c. or heat depending on the given environment, is also an important aspect of showing a property. Make sure that all units are functioning correctly and that you're agent knows how to operate the system. Buyer's will not only be uncomfortable in an overly cold or warm property, but will also question the working condition of the home's cooling and or heating system.

All homes vary widely when it comes to their electrical systems, but it is never a good idea to leave wires out in the open. If there is no immediate solution for this, make sure they are wrapped up and sanctioned off from the main area's of the room. Exposed wiring will lead to questions about the home's condition and may worry potential buyer's with children as they are going to be looking for potential hazards in each property they view.

Finally, utlitiize natural light in any room has large windows or may otherwise be relatively dark. Natural light is something most potential buyers will be evaluating in their home search, and something most individuals seek in a home. Curtains and blinds should always be open and consistency in their presentation is very important.

Above I have outlined several issues that I have seen in the presentation of properties throughout my career in the Real Estate Field. These guidelines are simple and effective when employed, yet many seller's and agents do not seem to understand their importance. Most are utterly free and time-efficient and for those that are not, they are neither costly nor time-consuming.

Concern of Europe's impending debt crisis and less than satisfactory job growth in the U.S. markets has driven investors to a safer option: government bonds. In turn, the U.S. is seeing mortgage rates that are at their lowest in the course of the past four decades. According to Freddie Mac, the average rate for a 30-year fixed loan dropped to 4.12 percent from its original low of 4.22 percent. Respectively, the average 15-year rate fell to 3.33 percent from its previous 3.39 percent.

Indications that the U.S. economy has come to a stand still and Europe's failure to contain it's debt crisis has also resulted in lower yields on 10-year treasury bonds, a foundation of consumer loans including mortgages, conluding in an all time low on September 6th. Although lower borrowing costs are prevalent in today's market, the staggering unemployment rate has overshadowed this potentially postive trend in the housing market, instead creating what has resulted in a slump. Consumers, fearful of security in their various jobs, are weary of taking on new financial comittments and therefore reluctant to purchase new homes.

Growth in the housing market, at this stage, is largely dependent on consumer confidence in the U.S. economy and job security. In a rapidly evolving market, such as the current market Realtor's are operating in, it is vital to maintain confidence and dissolve concerns over investments that are so essential to prosperity. The housing market is central to the growth of the economy and responsible for many forms of employment that are adversally affected by such concerns. In order to alleviate consumer doubt, it is essential that the government take a step forward in the direction of providing job security and job opportunities to both small businesses and the individual.

One of the vital aspects in the role of a Real Estate agent is to inform your clients of the current economic conditions in your given market and accurately reflect these conditions in your valuation of a home. I find that many realtors, as a result of desperation to secure a listing or pure negligence, list homes above market value in the hopes that a transaction may be closed, appeasing an owner's false sense of home value in a dwindling market. The reality is that many homes simply sit on the market for prolonged periods of time, drawing on both the home owner's and agents resources, as an overpriced home is certainly not going to sell in this market. It is vital, in the course of listing any property, that the home is priced to sell, and not priced for comission gain or to satisfy a client's ego. I find that many agents make this mistake time and time again, resulting in the owner's expectations not being met and the Realtor having to deal with unnecessary stress relative to a home that is simply sitting on the market.

The goal here, for both the listing agent and the seller, is to sell a listing quickly and negotiate a price that reflects the current market value. As any agent that is familiar with the real estate market knows, home prices fluctuate depending on supply and demand, a simple economic principle that covers all aspects of both micro and macro economic systems. Another important aspect of this pricing scenario is the appraisal process. In this market, seller's and buyer's alike will run into a stalemate in a transaction if the home does not appraise for the negotiated price. This is anothe factor that contributes to the importance of pricing a home correctly, as a low appraisal will most surely affect the closing of any transaction. If a buyer cannot secure a loan for the full purchase price of a property, they are most likely to walk. In this scenario, neither party benefits and most notably, the listing price of the property may need to be changed accordingly.

Moreover, upon initial consultation with any seller, it is the responsibility of the agent to give their client an accurate reflection of the current market conditions and a suggested sales price that reflects the market. If a client is unrealistic about their expectations from the sale of their home it is the agent's obligation to dissuade them of these expectations and negotiate for a more realistic sales price for the listing. Agents are not obligated to take any listing and should stray away from sellers with unrealistic expectations and an unwillingness to come to terms with the current climate in the Real Estate Market.