Since moving to the Prescott area and becoming involved in real estate you hear opinions from everyone on growth. Most of the people in this area seem to be opposed to growth once they have relocated here. This is fascinating because the assumption is that growth results in an unhealthy environment and no growth results in healthy living. Well the truth really lies somewhere in the middle. Living in a small isolated community with limited medical resources can be unhealthy. Having fewer choices in goods and service providers results in a higher cost of living, and sometimes even inferior food products. But unbalanced growth can bring undesired results that may include higher real estate prices without appropriate higher level job opportunities, or the other end, standing home inventory because of speculators that result in price crashes. Also, unchecked squandering of resources because of shortsighted politicians is bad for the environment and the lifestyles of our citizens. Like many of the current residents of this area I came from California. I have seen the best and worst of growth and one thing I have come to realize, that like it or not, you grow or die. How you grow is the question. That decision is the most crucial and often not considered seriously until the growth pattern is set in motion. Once it begins growth takes on a life of its own and can become the enemy.
I came to this area to enjoy clean air, kind people, a slower pace and an affordable lifestyle. These attributes are not necessarily in competition with growth. There are many companies, housing planners and civic groups that have achieved all of these things and produced thriving communities that allowed the children born and raised there to find meaningful and lucrative work while at the same time maintaining a lifestyle that will fulfill the desire for balance in ones life.
In later blogs I will explore some of these towns and how they accomplished their goals as well as companies who are looking for such a place to provide jobs.
Northern Arizona is one of the last areas in the United States that has embraced change and growth while maintaining its frontier spirit. This is the attraction that brings us here. Let’s not deny this experience to others but be guardians of what is good and change what can make us better.
With Arizona’s average days of sunshine around 350 a year our Governor may want to explore some of the positive steps California is taking. According to Lennar Homes spokesperson Charles Schein, installing rooftop solar electric power system as standard equipment on their new homes is expected to cut energy bills 40% to 60%. The 2.3-kilowatt system would cost between $15,000 and $20,000 to install on an existing house. Home buyers also get a one-time tax credit of $2,000.
Lennar officials said they are not increasing the prices of the houses to absorb the additional cost but do get a break by purchasing the systems in bulk. The company also is eligible for a state rebate that is equal to about 30% of the cost of the system, said Bill Kelly, general manager of the new homes division of SunPower, the San Jose business that provides the solar systems. (source Fresno Bee).
Instead of just waiting out this economic slowdown in real estate why not use the time to strategically plan for the future and set a new standard for building that is in line with economic realities like higher energy prices and resource shortages.
I was not around last time the “short sale” slammed into the economy. So I attended a seminar this week from a very knowledgeable lender to learn just what was coming my way.
In addition to the technical terminology and ins and outs of dealing with lenders, sellers and buyers I learned something very valuable, Realtors must once again be ready to educate our clients and be the source of the source, pointing them in the direction where they can receive sound advice to make decisions that impact their lives.
Of course, in seminars such as these there is always one doomsayer that recalls how he has been involved with these and how horrible it is, taking up time with his tales of woe.
If my business is going to thrive in this tumultuous time I need to be informed so that I can inform. Home staging class here I come!
This seems like such an over discussed topic but my business partner wondered aloud this week, after yet another delay on a project by someone he hired, “I wonder how much money businesses lose just by being sloppy”. We both came to the conclusion that it had to be potentially millions when you add up referral business from a client that you have successfully serviced. Then why do businesses fail to meet deadlines, proactively communicate and practice active listening?
If there was ever a formula to achieve success that is it. But not all businesses achieve success. Many fail even with a superior product or service and some limp by just barely making enough to keep the lights on.
There has been the notion that clients are fickle and will jump ship regardless of how much service you provide. That will always be the case with some people but most clients just want three things from you, 1) Customer Service 2) Good Prices 3) Good Product or Service. They need all three. If you don’t provide these you may hold on to them for a while but they will always be ready to jump if someone else comes along and is willing to provide them with these basics. I know right now my partner is looking for a good company to make our signs…
I recently had the opportunity to read the book by Gary Keller (of Keller Williams fame) entitled “The Millionaire Real Estate Agent” (see my review on Amazon.com). This book has been out for a while but the lessons to be learned are more timely than ever. As a business strategist and organizational consultant I have seen my share of talented people who have outstanding skills in a certain field and decide that they should run a business doing what they are good at and love. In real estate this skill is usually sales. On the whole successful real estate agents love people, are good at making the deal, are educators and client relationship managers. Normally talented sales people do not possess strong business skills. When deciding to become an agent we enter into our own business. If business skills are not learned and cultivated we are limiting ourselves on how successful we can be. Certainly signing with a good broker is helpful but in the end we are independent agents (business owners) and need to understand all that this entails. “The Millionaire Real Estate Agent” touches on many of these issues. As we continue to experience the changing market conditions and the redefinition of how and what an agent contributes to the Real Estate industry it is of vital importance that we run our businesses as professionally and successfully as possible.
My personal answer to this was to join a team. In doing this we could bring in diverse skills and abilities, increase our overall income and provide our clients with an entire organization dedicated to achieving success for them. This is not an easy proposition and has been time consuming (over 2 years). But any successful business takes time and effort to build. Some of the obvious benefits to our team is that we are not the sole contact for our clients. We can go on vacations, attend to our children and avoid burn-out. We attract a more diversified client base because we have team members in place to meet their needs. This includes commercial, investment and subdivision developers. By being involved in so many aspects of Real Estate we can get a big picture outlook on where the future of our business will be.
Aug. 16, 2007 - Marketing Green Materials in Housing
There are many features that buyers look for in purchasing a home. One of the most interesting is the “green” materials. Materials are considered "green," when they generally help reduce energy use more than conventional materials or are manufactured in a way that has less of an impact on the environment. Energy efficiency has come in to focus recently with rising costs and concerns about global warming. It doesn’t matter anymore whether you personally believe it or not, people are talking about it everyday and I am seeing more clients asking informed questions regarding construction and use of materials.
Sales of such materials such as foam insulation and faux wood shingles are stronger than ever and a survey last June from the National Association of Home Builders and McGraw-Hill Construction projected increases of green homes to be between 5% and 10% of US housing starts by 2010, up from 2% in 2005. (Source:RealEstateJournal.com).
This trend is not going away so now is the time to familiarize ourselves with these products and their benefits. Highlighting the use of green materials when selling a house can make an impact and provide an edge in this market.
Aug. 15, 2007 - Do real estate professionals really understand this market?
An incident this week has me wondering. Unless you have been living in a cave for the past 6 months you know that the lending industry is in disarray. The freewheeling mortgage qualifications are gone and we are back in the button down days of 20% down and full documentation. That is just the start. As lenders try to conform to underwriters changing requirements there is going to be a lot of strange requests and cautious double checking.
But from the attitudes I have witnessed on a current transaction you would think that buyers are pulling lenders in from outer space. A lender asked for documentation on a trust and the escrow officer and sellers agent were so insulted that the deal almost fell apart. Where have these people been? Have they not seen the mortgage fraud issues and understood the fall out of the sloppy documentation that has resulted in some of the sub-prime debacle? Have the past few years of easy money in the high flying real estate market made us nothing more than paper pushers?
If we want to help this industry get back on its feet we had better explain to our clients up front that this is a new era and many things will be asked of us that were not thought of even a few months ago.
Education for our clients and now it seems, for our associates is going to be critical. That means understanding more than just our local market. We all knew that the role of the real estate agent was going to change in the future. I think the future is now.
Dishing it up- information and opinons on market trends, issues, technology and advances in Real Estate and related industries by Vicki Brannock, e-pro, ABR.
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