Archive for the ‘Real Estate perceptions’ Category

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Generational real estate selling and other minsinformation.

April 28, 2011

We live in a time when people want quick answers and quick resolutions to all their questions. How many times a day do you see articles with “Five ways to Happiness” or “Seven steps to selling your home”? Here’s a fact: there aren’t any quick or fast steps to doing anything. It’s just the use of a catch phrase to get your attention. Imagine how great life would be if we could solve things in three easy steps? It just not that simple.

One of the main things I see is that realtors are being misled to believe that their clients are now internet social butterflies and that so much business is done via the web. This is simply not true. While more than 80% may look on the web for a home; the majority of individuals still rely on word-of-mouth or personal relationships to find a realtor to assist them. For instance, a recent fact published by the American Affluence Research Center reflects that only 12.5% of affluent clients even use social media. That’s not very good odds for those seeking to attract the luxury market via the web, through Facebook or other social networking venues.

The other common mistake I see in today’s real estate world is labeling clients. Of course, you know about “boomers” but now we have the newest which is the Millenial generation. The Millenial Generation was born between 1977 and 1998 and has approximately 75 million members. REALTORS are being led to believe that this age group is the next big wave of buyers. Let me assure you – I don’t see this happening. Why? Because I personally have millenials (with college degrees) living under my roof and they can’t find jobs that pay enough to afford a home. Fact: College degrees don’t guarantee a high-paying job thereby making home ownership affordable. I have friends who also have children who graduated college, who are hard-working and driven BUT who are also waiting tables and working part-time at corporations just to get an opportunity for full-time employment. Where do they live? At home with their parents! In addition, many of my friends have not only their grown children living at home but also their parents. These are the people who are helping to support the Millenials. I wish more people would write about that fact.

Millenials and Gen “X” and “Y” are watching the world economy in turmoil and they are scared for their future. I’m not sure they see the value in home ownership and they may just wait it out for a few years and see how the United States government (and lending instituions) respond to our economic crisis.

What is factual? At the end of the day it is still about relationships. Get out from behind your computer and meet people. Stay in touch with friends and former clients. While I personally have a blog, Facebook page and I tweet like a maniac, I do so for fun. I don’t expect business to boom because I do all my social networking. People will buy homes because they need a place to live. But as for me – know any investors or better yet – let’s do lunch?

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Every Man A King – Perception in the Real Estate Market

March 28, 2009

As a student of history, one of my favorite research topics was the legendary politician, Huey Long from the great State of Louisiana. He was basically not the most politically correct man on the planet and yet he accomplished great things for Louisiana. It’s a case of a leader who accomplished good deeds while remaining corrupt. Mr. Long is still remembered and revered in many parts of Louisiana – he’s a loveable train wreck. For added effect, Huey Long ran on the concept that “Every Man a King” and he had his loyal “subjects” believing this. Huey Long KNEW ABOUT THE VALUE OF PERCEPTION.

So it goes with our current economic and real estate markets where, like a textbook history lesson, PERCEPTION is King.  Everyone thinks THEY are special.

We can tell Sellers the truth about market conditions and we can also share with buyers that every home is NOT depressed or in foreclosure but they have a different perception based on news media and print publications.

Sadly, no matter how much you educate the listing client, they still cannot grasp the severity of our current real estate market and the concept of declining values. After all, their home is the ONE home that is different and worth more than all the others regardless of what statistics and facts we present.

The buyers on the other hand treat all homes the same – as a foreclosure or short sale. While sales executives know that every home is different and unique, many buyers have the misguided notion that every home is a “steal”.

To educate the sellers is an absolute necessity. The same can be said for buyers. Sadly, it does not always work. However, in the immortal words of Winston Churchill, “If you are going through hell, keep going.”