Posts Tagged ‘Future of real estate’

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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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Foreclosure Stigma Won’t Last

March 9, 2010

In a recent article, Inman News reported that foreclosed borrowers may get loans again. Inman reported that “Banks haven’t been very forthcoming on this issue. However, knowledgeable observers of the situation say that while it may take some time, the situation will right itself for most people.”

I have said it before – you cannot shut out a majority of homeowners who have been making loan payments for years but due to economic crisis and financial downturns have experienced a severe loss of income and ability to pay on their mortgage debts. So many individuals have found themselves in a position that they never believed possible and they are sincerely remorseful.  Foreclosure for these borrowers was quite simply, a method of survival.

When the economy recovers – and it will, these borrowers will be the prime people to consider for new loans. Why? Because they have jobs, have been making timely rental payments and will (if smart) have saved a sufficient amount for a 20% down payment. They will be a good risk next time because they will be smarter about their ability to repay their debt.

I predict the banks will charge repentant borrowers a higher rate of interest (because they can) and because this particular borrower will be so pleased to have a loan that they will be willing to pay a higher interest rate for the opportunity to be a homeowner once again.

As Inman reports “The lender who figures out how to do more of this case-by-case stuff cost-effectively is going to end up ahead of the pack,” Riegler says.

You simply cannot pass up on this (formerly foreclosed) borrower of the future – there are simply TOO MANY of them and they will need a loan and a place to live. They are going to be the buyers of tomorrow. The dream of homeownership lives on…

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Predicting the Future

November 11, 2009

 

I’m not a true prognosticator but I am a person who looks to the future and frankly, things are looking good to me.

When I started selling real estate, it was a “calling” for me and a service to my clients. Somewhere it became a little bit (just a tad) about awards and dollar volumes and I lost something. Not anymore.

The good thing about the new world order in the real estate market is the chance for me to again realize that helping people buy a home, especially in today’s market, is VERY rewarding on so many levels. The challenges are extraordinary but the satisfaction of helping people navigate the process is fantastic. I LOVE my job.

It’s not easy to sell real estate – but it’s still the best job in the world and you really don’t need a crystal ball to see this clearly!

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There is nothing to fear but fear itself…

February 7, 2009

As a student of history during my college years, one of my favorite subjects was President Franklin D. Roosevelt who in his inaugural address said “So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.”

FDR brought our nation out of one of the most tragic crashes in history and restored American pride and self-confidence. He knew that to restore consumer confidence and control the “fear factor” would mean success for his Presidency but more importantly, for the American public. Fear can simply be a paralyzing force in our lives.

I find today that people remain fearful. Tonight, I just wanted to say…Don’t be afraid. We will come through hard times just as we have come through hard times before now. The market will correct itself, homes will not go empty and we will all live with a sense that nothing can wear us down.

I work with fearful agents, fearful owners, fearful buyers and it’s all so sad to me. Life is too short to be filled with fear about our future. We have a future, we have hope and we will persevere.

So hang in there real estate friends. It’s going to get better – I promise and this I believe!