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Jeff Mays, Real Estate Pro in Glen Allen, VA

What's your biggest challenge in real estate right now?

Asked by Jeff Mays, Glen Allen, VA Mon Jan 21, 2008

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My biggest challenge, in today's market, is managing the expectations of both buyer and seller.

Buyers are expecting to get unbelievable bargain, and make offers at deep, deep discounts, and are often frustrated when they find they may be unsuccessful. It's very difficult to advise and not be perceived as "working for the seller"

Sellers are still holding on to home values from boom years gone by, and are reluctant to re-evalutate based on "today's living marketplace". Again, here, it's difficult to bring the seller's into today's market pricing, without looking like you're giving it away without a fight.
3 votes Thank Flag Link Tue Jan 22, 2008
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Saturation! With the glut in inventory I see buyers passing up great deals because they are affraid of missing out on something they have not even seen and may not exist.
2 votes Thank Flag Link Wed Jan 23, 2008
How about ....agents having to improve their skills at handling new objections/concerns they've never had to address before or haven't heard in a long time. Basically, learning to sell again. Great answers all around.
1 vote Thank Flag Link Tue Jan 29, 2008
By far I believe the media inspired hysteria that the real estate market is going to crash and burn any second.... or to quote a byline seen all the time on my favorite news aggregate site Fark:
"EVERYBODY PANIC!"

Real estate is by and large local. Let me state that again ,because it is worth noting: Real estate is by and large local. There are markets all over the countrty that are appreciating as we speak (type). There are Buyers getting great deals and there are Sellers poised to make big profits. The only truly "bad" market will arrive when everyone stops buying property, or the government decides to take away our property rights.

The second biggest challenge I have relates to personal habits in general- a complete lack of personal responsibility by many in society today. Everyone has an excuse for why someone else is to blame. Look in the mirror- odds are that whatever ails you can be traced to a decision you made or an action you took. Rates are the lowest in years, the ceiling on loan limits is about to be raised- what more could you ask for? The easy money may be gone in most real estate markets, but last time I checked contracts are still closing- in fact I have one due up on Tuesday.

/rant
1 vote Thank Flag Link Fri Jan 25, 2008
How about challengeS???
1. Media
2. Buyers on the fence
3. Buyers looking for steals
4. Sellers living in yester-year
5. Did I mention the media?
1 vote Thank Flag Link Fri Jan 25, 2008
Good thing I read the responses before I answered. You can just copy and paste Elvis' response for me.
Managing expectations is absolutely the challenge for both sellers and buyers.

It is my experience that sellers can't accept the information provided by the media and the buyer's do not realize much of the media isn't specific to the neighborhood they want to buy in.

CJ
1 vote Thank Flag Link Fri Jan 25, 2008
Getting sellers to accept the numbers the comps come up with, and getting them to list at a saleable price.
1 vote Thank Flag Link Tue Jan 22, 2008
Blaming solely the media for the problems we're now in is not entirely fair. Haven't the agents sold many homes in the past few years by telling people how they will be left out if they don't buy now and how buying a home is such a great investment? Maybe you were not one of them. But, some agents should take part of the blame for this. Also, it's not just about housing and the media. There is a growing budget deficit in the United States, fueled by incompetent economic policies of the current administration; then there is China and its impact; decline of the dollar; etc. etc. --- all of which have created this macroeconomic instability. The media are just part of the problem, and probably one of the smaller parts. There is much more going on in the economy than the media.
But I agree with you on one point: buying home is primarily about providing a nice environment for you and your family to grow and share. Looking at buying a home as an investment should only be done by investors, which is a minority of all home buyers. So, both the media AND the agents need to re-emphasize this.
1 vote Thank Flag Link Tue Jan 22, 2008
Dear Michael and Bonbon jus a quick reminder : the question is What is YOUR biggest challenge... and we all have different subjective views, and experience different challenges.
0 votes Thank Flag Link Sun Jan 27, 2008
Great question Jeff. You are getting a lot of good responses. I really think Evlis has a great point. One of the most difficult challenges is getting the seller to be realistic about what his house is worth in today's market, and getting the buyers to realize that sometimes they really are getting that great deal.
0 votes Thank Flag Link Sat Jan 26, 2008
Obviously its the credit crunch. That is NOT something you can blame on the "Media". It hit in late august and our sales have not gone over 240 for our County since. They are off 50%+ year to date. We are in the "high-priced" areas which hopefully will be given a 1-year repreieve by congress and maybe get our conforming loan limit kicked up to $650 or even $750,000!! That would be huge. But will it save folks from the foreclosure impact? I dont' thnk so. We've had speculators, non-qualifying Silly Money Lending practices for over 4 years, so I don't think the folks will qualify and I also think we have NO equity for those who want to!
Conversely, if we have big foreclosure numbers will we also, with the new underwriting guidelines and drop in values (hence increasing affordability) bring NEW buyers into the market from the Fence to take advanage of the new conforming loan limits?? Hmmmmmmmmm??!!
0 votes Thank Flag Link Sat Jan 26, 2008
The media is in business to sell ads and they do that by beating a drum (news) and attracting the eyes to those ads. While our local Hearst paper has been predicting doom and gloom in the our market for the past five years they have only now been right and now the news (drum beat) is about how to survive.
The biggest challange I face is low sales. Our unit sales has dropped off and we have more agents here then lawyers so there is too little business to go around. Looking at the numbers we still have a very low absorbtion rate for condos and single family but every property is in jumbo loan land and the buyers are waiting to see what shakes out.
I support a system where Freddie and Fannie both buy loans at a percentage of a regional median rather then a fixed number. Average price for a 2/1 house in San Francisco is way over 417K . What could you buy in your market with a 417K loan? The new proposed structure of up to 125% of median as conforming is the right way and the fair way to accomplish their mission of funding the secondary market and freeing capital.
Web Reference: http://www.JedLane.com
0 votes Thank Flag Link Sat Jan 26, 2008
Jed Lane; Fog…, Real Estate Pro in San Francisco, CA
MVP'08
Contact
I was complaining when they were trumpeting them up, too. The media just likes to jump on whatever trend it thinks it sees. The other day there was a huge spread in Newsday about how "everyone" is moving to towns now, and getting away from single family/1 acre home ownership. You can bet they will be beating this drum till it breaks. Probably 95% of the homes on Long Island are NOT located within walking distance of towns, but they see this as the new "trend", and I'm not disputing that there are people now who DO want to be in town, but I see it mostly as occuring closer to NYC in commuting areas.
0 votes Thank Flag Link Sat Jan 26, 2008
Thank you, J R! How come nobody was complaining when the media was helping propel the prices up? You live by the media in both good and bad times.

Most people here make it sounds as if the media have an agenda to make the things look worse than they are. A kind of conspiracy theory here! I think many people are giving too much credit to the media. What has happened is that people have assumed so much debt and now they need to service it. Since the home prices are not going up anymore, they can't borrow against their homes. The result is that they stop spending money on anything but the essentials, while putting most of their income to servicing those debts. The media didn't make that happen -- the people did! So, it's a payback time.

I strongly believe that if the home prices were to go 10-20% down, the demand would pick up and the things would start balancing out. Until that happens, the buyers will wait as they don't want to end up with overpriced homes that could potentially lose value in the near future. So, the sooner all of us--the agents, sellers, and buyers--find that equilibrium, the sooner we'll be out of the woods. Just my 2 cents!
0 votes Thank Flag Link Sat Jan 26, 2008
Brenda wrote:
How about challengeS???
1. Media
2. Buyers on the fence
3. Buyers looking for steals
4. Sellers living in yester-year
5. Did I mention the media?
~~~~~~~~~~~
LOL Brenda. Does anyone remember when the media was pumping prices UP? I wasn't too crazy about that either.
0 votes Thank Flag Link Sat Jan 26, 2008
Ian, can you be more specific as to what misinformation you have in mind? I think the national media won't focus too much attention on local markets. They'll look at national trends instead. However, the local media does talk about local markets, at least here in DC-Baltimore area.
0 votes Thank Flag Link Thu Jan 24, 2008
Dealing with misinformation from the media...and the scare tactics of "the sky is falling" without giving consideration to localized real estate markets.
Web Reference: http://iansellsnola.com
0 votes Thank Flag Link Thu Jan 24, 2008
Working through a huge inventory and getting buyers to make a decision
Web Reference: http://www.darinprovost.com
0 votes Thank Flag Link Thu Jan 24, 2008
I'd have to agree with Elvis, I see low-ball offers from buyers that really aren't worth writing up. I do see that sellers have adjusted more to this market now. But beyond the market my biggest challenge to building my business is skilling up to achieve my online strategy; and realistically integrating that into my time blocking. I've also just moved to a new brokerage, and that adds to my to-do list!
0 votes Thank Flag Link Thu Jan 24, 2008
The media and their influence on the people.
With constant coverage that addresses “The Real Estate Bubble” and “Market Downturn” people have become more reluctant to spend their money. Perhaps there is another bargain coming up, they think, but they seem to have forgotten that they are buying a home not an investment portfolio.
The “Hi- Tech Stock Bubble” is probably in many peoples minds but honestly you can not compare a house with a stock, or can you???

The media sensationalism is just annoying. They should focus more on Brittany, and stop creating bubbles.
0 votes Thank Flag Link Mon Jan 21, 2008
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