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Steve, Other/Just Looking in Centreville, MD

At what point will realtors/broker industry significantly step up training in Sale/Selling Skills and end

Asked by Steve, Centreville, MD Fri Jan 9, 2009

this Order-taking mindset such that price reduction is no longer the first 15 answers to sellers? Agents have told me, we don't set the market, until I remind them about bidding wars they perpetuated setting many of these valuations and prices? This is EVERYONE's problem to fix as the continued de-valuation spiral of this primary asset is crushing everyone and will hurt agents and the industry going forward!? Thanks

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Steve,

I can understand your frustration. I am a realtor and also have my own home for sale. In a declining market price and condition will rival location in determining what sells when. I have had to lower my price based on feedback from the market.

Many of my sellers will not get out in front of price declines, but choose to trail the market. With a limited number of buyers, say 3 looking at your neighborhood where 10 might be for sale, the competition is stiff. Buyers want a steal today. Many of my buyers keep waiting for further price delines and they have been rewarded so far. This becomes self fulfilling if everyone is waiting.

There are many reasons for the real estate bubble. Government interference thru social engineering, artificially low interest rates from the Fed, lax underwriting standards. The biggest was when Fannie & Freddie disassociated the underwriting risk from the loan and bought or guaranteed any/all loans performance. The lenders will make 2% all day long if the risk is zero. Wall Street bundled them all up and sold them and kept the cash revolving. I am conveting to Libertarian now.

Live and Learn. Jon Tucker, RE/MAX 100, 443.538.4316
0 votes Thank Flag Link Fri Jan 9, 2009
Steve
I realize you are frustrated. Join the crowd.
I would like to respond with two points:
"Bidding wars they perpetuated setting many of these valuations". We, the Realtors, had nothing to do the the bidding wars. Your Senate Finance Committee, head by Chuck Shumer and Chris Dodd, led the committee expand homeownership by relaxing the underwriting standards and forced lenders to accept loan applications from people who previously would not have qualified under the old standards.

Interestingly, Barney Frank, head of the house of representatives banking committee (who had jurisdiction over Fannie Mae), had a signficant other, Herb Moses, who worked for Fannie Mae in product initiatives from 1991-1998. He made millions in bonuses.

Also, when banks balked at making loans to people that had only "stated income, stated assets", guess what organization picketed the homes of bank presidents? ACORN. So when Obama's resume reads "community activist", one of their roles was to make sure that banks followed the relaxed guidlines passed down by congress or else....

By allowing more people access to homeownership, the people that became "entitled" to own a home were by and large people that would vote Democratic officials, who helped them "get their fair share". See the link below for details.

So, as Realtors, we applaud expanding home ownership, but only to qualified people. I cannot tell you how many people I talk to who say "Yeah, I got this home with stated income, stated asset, zero down. It's just a pain owning a home. I'm going back to renting".

It may be EVERYONE's problem, but the source of the problem lies with Chuck Schumer, Harry Reid, and Barney Frank. IMHO somebody should do time for having caused this mess.
3 votes Thank Flag Link Sat Jan 10, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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Thanks for a lot of good advice, answers and response. Tossing aside blame and cause, my point was that everyone who makes a living in the industry must figure how to step up and HELP stop the de-valuation, THE number one factor in this Recession. As a seller that speaks daily with other sellers, in the past 2 years not one of us heard other ideas, suggestions or answers except reduce your price? Having a single answer, a single 'arrow in your quiver' is foolish every time. I hope a re-focus and return to real estate's mantra - Location, Location, Location occurs, now. So, were I a realtor and a potential buyer asked, "will the seller go lower", I'd answer with comments diverted to the value and location of the offering. Tell them how much its already come down, what its likely to return to soon, show the location value- proximity to job markets, city access and roads, services, schools, shopping, airports, quality of life, etc. A return to focus on 'Location value' (1st through the 100th answer) and a plethora of other value considerations should be the diverter answers and done emphatically; they are just as legitimate especially in this Recession 'protected' market (Annapolis-DC). IF De-valuation does not stop, we are all in for serious trouble hence I also look at this as a way to protect your own industry and marketplace. Its called selling. The panic occuring now is the exact same human emotion as the Euphoria on the way up; why aren't those that stand to gain working to get this reversed? That was my point....Thanks again to all!
1 vote Thank Flag Link Wed Jan 28, 2009
All the frustration and angst in the world isn't going to change the way market works. Sure, for maybe a few years when the government steps in and oils the pump with money the nation doesn't have the market may act a certain way for sure. With a basic understanding of Economics you would know that it's the Buyers that set the market , not all the wishing and hoping and frustration posted on this blog. You should have sold during the Bubble.
0 votes Thank Flag Link Sat Apr 18, 2009
Not all firms take education as a priority. Research will show you which companies take education very seriously, having said that, not all agents are interested in learning, "you take a horse to the water, but cannot make him drink it" Just a thought.
Web Reference: http://www.aniamiller.com
0 votes Thank Flag Link Fri Feb 20, 2009
Steve:

The price, list post a sign and put on the MLS system of selling is broken and does not work.

Auctions have been regulated for over 2000 years; the word auction comes from the Latin ‘Auctionarium’ which was the designated place to conduct auctions by the Roman Empire.

Auctions have a proven track record of delivering results in good, bad or tepid markets. People don’t “buy” property at auction; they “win” the property and are happy knowing they only paid one bid more than someone else was willing to pay for the property.

The National Association of Realtors and the National Auctioneers Association both predict that within the next 5-years one out of five properties will be sold at auction.

Take a look at the numbers; they really speak for themselves:

1.4 million Members of the National Association of Realtors sold about 5 million properties during 2008 or about 3 ½ properties each or about 1 sale every 4 months. (If averaged)

5,000 Members of the National Auctioneers Association (with less than 350 holding the AARE designation) and there were over 1-million properties sold at auction during 2008, which spread equally would average about 200 each or 16 properties a month each.

Who would you want to sell your property in this market?
0 votes Thank Flag Link Wed Jan 28, 2009
Steve,

I really appreciate your frustration with this market. Some things we have control over somethings we don't. \

There are many reasons a home doesn't sell, only one of which is price. If there are any other homes in your area for sale, the best home at the right price is the one that will get a contract.

There are some things your agent should be doing to get your property noticed. They should know who to market the home to. Who is the most likely buyer for your property. They should be marketing to those buyers regularly.

There may also be things that can be done by you at little or no cost that make the house more appealing. Sometimes it a matter of taking away some of the personal items so buyers can see themselves in that home. Staging can help, or minor sprucing up to the exterior can help with first impressions. Buyers are focusing on whatever negatives they can in order to get the sellers to take a lower price. Unfortunately many buyers think a buyers market gives them all the leverage and sellers just have to take it.
0 votes Thank Flag Link Wed Jan 28, 2009
Answer deleted and will be posted in more appropriate section
0 votes Thank Flag Link Wed Jan 28, 2009
Two weeks of classes and passing the test is not equivalent to graduating high school and the GRI and CRS are not equivalent to a Masters or Doctorate..

GRI and CRS are additional and more advanced courses and I have nothing but respect for anyone who has completed them, but I think your comparision may be flawed..If this is your example of how the RE industry has stepped up training, then what % of agents have been certified as taking these courses?
0 votes Thank Flag Link Fri Jan 9, 2009
I agree Steve! Unfortunately it is the same problem found in every single profession out there! No matter what field you are in or what service professional you are looking for some graduate at the top and some slide by. Three years ago I sought the help of an ENT surgeon to remove a cyst that ended up comming back - I recently had it removed again by a different surgeon who explained to me why it came back and what was not done that should have been done! A relative of mine just basically wasted a lot of money on a lawyer that "specialized" in bankruptsy only to find out from the next lawyer she had to hire that most of what she had been through could have been avoided had the first lawyer done certain things. My point here is that I think there is only so much an industry can do to educate and train people -- it is up to the individual as to what to make of their education and training, how to apply it and improve on it by seeking continued education and experienced training opportunities. So where does that leave the consumer? How do we know which one is the best one to pick? Many times I have asked friends and collegues to recommend someone, other times I have used the internet to research. In your case, it sounds like you picked the agent who gave you the highest valuation on your home, instead of qualifying them by their track record of conversion ratio, days on the market and advanced education of a GRI and CRS degree. Agents that have invested the time, money and worked for the success of these programs are the educational equivalent of a Masters degree or Doctorate. Earning a real estate license in two weeks by attending class and passing a test is the equivalent of Graduating from High School. So the Real Estate Industry has stepped up in training, unfortunately the general public has not become aware that there is a difference.
0 votes Thank Flag Link Fri Jan 9, 2009
Pricing is based on 6 months of closed sales in a given area. Therefore agents appraisers use those figures determine value of home either list for sale, or submitting an offer.

Banks cant lend money on overvalued homes .

Home foreclosures based on many families lose of jobs could no longer afford live in their homes .
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Fri Jan 9, 2009
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