When the Going Gets Tough

The NAR reports are in the news again this week, and it isn't pretty. Nationwide, inventory of used houses stands at about an eight and a half month supply. That's a lot, especially in the parts of the country which experience seasonal slow downs. The lending news continues to spiral downward, with many sub-prime lenders closing their doors; and some heavy hitters (Countrywide) in serious trouble as far as their quarterly earnings and activity go. Around the country, you have people in our industry wringing their hands. Don't sit there wringing your hands--get off your duff and go sell some real estate. Everything is either a threat or an opportunity--and what it ends up being depends more on your perspective than anything else. If you view this market as a problem, it will be a problem. If you view it as an opportunity, it will be one. Here's how this market is an opportunity: if you are an agent, your ranks will thin. In most areas, this happens at the end of the year (connected with dues payments) or the end of the CE cycle (when people decide not to renew their license and go get a 'real' job). So, you already have opportunity, because some of those agents who showed up at the office meetings solely for the donuts will be gone.  If you are a buyer, it's a great opportunity. You can now have your pick of listings (in most markets) and you should be able to negotiate a lot of extras. Ask for the seller to pay for your inspections. Ask them to pay some closing costs. Ask for a home warranty. If you are a seller, your opportunity is to be realistic about your house and your market, and to be encouraged by the idea that most of you, after you sell, will also be buyers, and will get a better deal on the next house. If you are a currently listed seller, start looking at the competition--and your house--like a buyer. Be objective. See how you stack up. Fix what you can. Price competitively. Have a home inspection done ahead of time, and address the issues you can. Consider offering a bonus commission, home warranty, rebate for closing costs. Finally, investors should be coming out of the woodwork, but if they aren't, the agents should invite them out. Scan the public ownership records and see who already owns more than one parcel in your market area. These folks are investors. Contact them with your latest 'great deals'. Finally, stay positive. No one is going to buy a house from a Sad Sack that sits around whining about how tough the market is. Remember, as the saying goes: "When the going gets tough...the tough get going." Have a great day!

Melanie J. McLane, ABR, CRB, CRS, ePRO, GRI, RAA, SRES, 32 year veteran of the real estate industry. Offering training, speaking and consulting throughout the industry, I teach everything from ABR to USPAP. Certified ePRO Instructor. To contact me, email me at: melanie@TheMelanieGroup.com or visit my website: www.TheMelanieGroup.com