Andi Grant's Blog - Everyday Real Estate with a Twist

For anyone representing first-time home buyers in the Southern California areas in the price range of $500K and under, you know we are facing an unbelievable multiple offer situation that has gone beyond the rational lines of thinking for most. One Southern California home in an average area was reported to have received over 125 multiple offers two weeks ago!  Whoever "won" that home, more than likely got a closing gift in the form of 30 years of buyer's remorse to boot.  How much over asking did they have to bid up to "win" this average home, in an average area with an average school system?

A possible $8000 First-time home buyer tax credit reward is a drop in the bucket compared to the $40-60,000 sales price increases we are experiencing since the $8000 tax credit stimulus rush.  This same increase when calculated with interest over a 30-year mortgage term is going to end up costing the buyers thousands upon thousands of dollars over their stimulus reward.  Apprasials may ultimately drop under the highest-and-best-offer accepted, but most are still coming in well beyond asking price as recent sold numbers come in from the first round of multiple offer homes that have now closed.

This situation begs the question, "Has this $8000 first-time home buyer stimulus hurt our first-time homebuyers more than helped?"  In regards to the economy, is it creating another economic bubble again that will burst after the April escrow deadline?  Will we have unrealistic sellers once again flippantly replying to our price adjustment talks, "Well Zillow says...?"  Can you sincerely counsel your buyers to possibly risk losing the possible $8000 tax credit by waiting until after the stimulus frenzy to save in the long run, when you cannot guarantee prices will necessarily drop again to significant levels afterwards? 

Sure the $8000 first-time home buyers tax credit has been great for sellers and our office sales again, but has this truly been a benefit and gain for the first-time home buyers to whom it was supposedly intended?

A few weeks ago, this newspaper was hand-delivered to my office by an "operative."  I was surprised and just a little giddy at having something hand-delivered to me in such a fashion, after all I live a pretty boring life!  I untied the leather ribbon, opened the newspaper and out fell a TOP SECRET assignment and dossier with instructions to attend a Murder Mystery Dinner event as an undercover secret agent.  It turned out to be a very creative birthday party invitation from a good friend of mine!  My code name was to be "MacGyver" for the duration of the evening. Why MacGyver?  According to the Superior Officer (birthday girl) I was very creative (the turn lemons into lemonade; turn a rubber-band and staple into a hammock type of gal).   It was also interesting to hear the other attendees operatives code names as well because they were based on the Superior Officer's observations of them.  I had so much fun operating as a secret agent for a night!

Well the other day, I was attending a loft grand opening and networking event and came across a colleague who had been in the real estate business for about 6-7 years (we'll call him Agent B).  We began to discuss the industry and the more the room filled, the more our little circle grew.  A guy interested in purchasing a loft asked everyone what they thought about the market forecast of doom and gloom.  I shared some of my thoughts and was asking Agent B his thoughts so that I wouldn't hog the conversation.  Agent B's answers were very vague and non-engaging.  There were no silver-lining answers, or open-ended questions to keep the discussion flowing.  Towards the end of the discussion, I handed the guy my business card and Agent B reached into his back pocket for his wallet and handed him one as well.  The guy looked a little surprised and said, "Oh, I didn't know you were a real estate agent too."  OUCH!!  

A little while later, I asked Agent B what happened during the conversation earlier.  Apparently it boiled down to him losing his "Mojo." He said that he would rarely say he was an agent unless someone specifically asked him what he did for a living and/or was serious about buying or selling. He was still in business based on referrals.  He went on to say that he was sick of everyone's negative attitude of the real estate market and its agents. I was speechless.  If my undercover secret agent name was "MacGyver," was his name "Defeated?"  I told him how it was also a great chance to enlighten them with facts regarding the highs and lows of the real estate market in past years and to see this as a great opportunity and time to invest. 

His response: Perhaps

Mine: 

I hesitated to write this blog, but the more I thought about it, the more I wondered was this an effect of having started in the business during the meaty times? How many other agents are going "undercover" because of the lack of confidence in either the market or themselves?   I wholeheartedly admit that when I first started off, I was very shy when it came to mentioning I was a real estate agent because I felt I was too new and feared a person would ask me a question that I couldn't answer.  My solution to that?  In addition to surrounding myself with a GREAT team of mentors, I started reading about real estate everyday!  The more informed you are about any business your in, the more confident you'll become on where things were yesterday, are today and what they will be tomorrow!  You are not doing yourself, your clients, your business or this industry any favors by being a secret agent hiding in a corner until the market is easy and favorable again.  Unless a person has just recently met you, they should already know that you are an informed and active real estate agent or Realtor®, ready to guide them through making the most of any real estate transaction during these challenging times.

A Blog Post Here, a Blog Post There, Everywhere a Blog Post...

Like so many others here, blogging and ActiveRain is new to me.  I'm still finding my ActiveRain blogging voice and I can't help but to see new blog material in everything now.  It's not that I'm necessarily looking for it, its just that situations present themselves.  Even others are seeing the potentiality for blog material.  Just the other day, my friend stopped herself mid-laugh to ask, "You..you aren't gonna blog about this are you?"  

Take for instance yesterday, I was in line at the grocery store and a woman in front of me was very indecisive...she started putting things back and adding things and after the fourth item, it started to become very frustrating for those of us in line behind her.  I saw that she had a list of the items that she came with. I'm sure she wouldn't have had this problem if she had of JUST STUCK TO THE LIST.  I had to hand it to the cashier though, she was the epitome of patience.  I thought to myself, am I being just as patient when a buyer is adding new property criteria to a search after I have found properties that has met his/her home search criteria perfectly for the 10th, 15th, 20th time? I'd like to think that I am, after all it isn't a hunk of cheese or a carton of milk, its a 30 year investment!

As the lady departed she thanked cashier "Linda" for her patience and Linda in turn thanked her by name "Ms. Barbara" and added, "... and thanks again for the Christmas gift."  WOW!  The two had obviously formed a great friendship.  I was to learn shortly afterwards after complimenting the cashier about her great customer service and patience with the buyer, that 'Ms. Barbara' always sought her out when choosing a line and that her friends (referrals) would come in and say, "Ms. Barbara told us to tell you hello."  She said that it would make her day.  Again WOW!  

This was simply a customer who met a nice person in the service field that demonstrated great customer service and patience with her.  Although the lesson is much bigger than this next real estate related statement, imagine if that same cashier decided to make a career change to Realtor®.  How many family, friends and neighbor referrals would she have gotten from 'Ms. Barbara' - a satisfied customer, hm? 

Go the extra mile.  You don't know how much it means to the client and how it will pay itself forward full circle spiritually, emotionally and as a possible fringe benefit, maybe even financially.

Social Media Networking:  Is it increasing the public's trust of Realtors®?

*chants* "We must - we must - we must - we must increase their trust!"

In addition to self-promotion, are real estate agents also using social media networking sites such as Facebook and ActiveRain as a public relation excercise to reshape the general masses' perception of the average Realtor®?  When people think of real estate agents, are they still thinking of the "Glenngary Glenn Ross" commission-hungry real estate agent or now seeing the hard working professional who has their best interest at heart? 

Real Estate blogging and social media networking sites are voyeuristic snapshots into the lives of agents beyond the fixed smiles seen at open houses or listing presentations.  The question now is whether or not potential buyers and sellers are relating to these individuals who have now exposed themselves to be simple mortals balancing both career and a personal life?  The same individuals who are also sharing very strong opinions re other agents, clients and the market as a whole? 

Will agent insights and reflections posted on social media sites help to diminish the negative stereotypes long associated with the real estate profession?  Or will the same insights add fuel to the fire when the ugly side of in-house bickering over commissions, the unethical activities of other agents, etc. are also exposed?  Are we headed in the right direction in successfully using social media marketing to build public trust while also being transparent?