We spent a good deal of the morning brainstorming about recruiting. Nationally, and for us, the average real estate agent is in his/her late 50s. Since the market is now being driven by first-time homebuyers, and since they are mostly in their 20s and 30s, there is a disconnect between professionals and clients. Most of the agents are digital immigrants, and might have kids the same age as the buyers, so it would certainly be good to develop a pool of younger agents. Younger buyers, and sellers, have vastly different expectations about technology, about time, about how to shop for anything, and about risk.
When we thought about recruiting agents to match this profile, we realized that there are many aspects of a real estate career that would appeal to Gen Xers and Millenials. Unlike the Greatest Generation, they aren't expecting one steady career for a lifetime, so the ups and downs of a commission-based agent wouldn't necessarily trouble them. Unlike older workers, they aren't tied to an office or a standard work day--they could start at noon if they were serving sellers and buyers who shared their hours! They wouldn't be limited to two weeks of vacation every year, and their dress code would be flexible. In all those ways, it's a perfect career for a younger person. And, if their parents have to support them in this job market, as they graduate and look for work, why not enter a field where hiring--and potential--are unlimited?
Thursday, May 31, 2012
Thursday, May 24, 2012
Are Prices Starting to Rise?
As with many things, prices are local--very local. In addition, price indices are rarely apples-to-apples comparisons. They usually take prices on one date and compare them to prices as a whole on another date. For example, the Case-Shiller Index actually takes the total sales of all the property in a city and compares it to the total value of the property sold in that city in an earlier period, to calculate the rise or fall of real estate values over a period of time. That means that it's hard to know what would happen to one specific property when it got sold or resold.
In the current market, sales are being driven by first-time homebuyers and are strongest at the low end of the price spectrum. Overall, prices are flat or still falling slightly, although this does lag in time, due to reporting delays. However, we are beginning to see appraisal problems again, which had not been occurring in recent months. That indicates that prices are rising, thereby pushing up sales prices above levels of past reported sales, which are used by appraisers to calculate value.
What's the bottom line? Prices at the lower end are being squeezed by supply and demand factors, and are probably heading up. Higher-end sales are still waiting for that phenomenon to take place.
In the current market, sales are being driven by first-time homebuyers and are strongest at the low end of the price spectrum. Overall, prices are flat or still falling slightly, although this does lag in time, due to reporting delays. However, we are beginning to see appraisal problems again, which had not been occurring in recent months. That indicates that prices are rising, thereby pushing up sales prices above levels of past reported sales, which are used by appraisers to calculate value.
What's the bottom line? Prices at the lower end are being squeezed by supply and demand factors, and are probably heading up. Higher-end sales are still waiting for that phenomenon to take place.
Tuesday, May 15, 2012
Cell Phone Etiquette
We brought up an interesting issue in our sales meeting this morning. Often our clients expect that we will answer our cellphones at any time and in any place that we might be, because, of course, to them their issues are urgent and our input is often necessary. Unfortunately, those are sometimes the very same people who complain when we are with them that we shouldn't be taking other calls.
Agents tend to feel one way or the other. Either they take all their calls, and tell you as the client that you can always reach them, or they hold their calls while they are with clients, and tell clients calling that they will have to wait. I can see both sides of this issue, and was wondering how you readers feel.
Of course, like all parents, I'm always afraid not to take a call from my kids. In my case, especially since the time that my daughter's school called right back while I was in an important meeting, so I let it go to voice mail and she spent the whole day in the nurse's office....I'm sure it will come up someday, when she wants to make me feel even worse! In the meantime, I'm going to try to turn my phone off more often. And you?
Agents tend to feel one way or the other. Either they take all their calls, and tell you as the client that you can always reach them, or they hold their calls while they are with clients, and tell clients calling that they will have to wait. I can see both sides of this issue, and was wondering how you readers feel.
Of course, like all parents, I'm always afraid not to take a call from my kids. In my case, especially since the time that my daughter's school called right back while I was in an important meeting, so I let it go to voice mail and she spent the whole day in the nurse's office....I'm sure it will come up someday, when she wants to make me feel even worse! In the meantime, I'm going to try to turn my phone off more often. And you?
Tuesday, May 8, 2012
Lots of Cash
Many more real estate sales lately are for cash. While it's true everywhere in the country, it's particularly true in Connecticut. Can you guess the percentage of people who close with cash? If you guessed 39%, you're right!
While that seems like a lot, and it is, it makes some sense when it's so cumbersome to fill out the paperwork for a mortgage, and when the restrictions are so much tighter. I suspect that some number of those buyers later apply for, and receive, mortgages, especially with rates so low (although they're certainly not losing much in the way of interest on cash, and they don't have a great deal of stability in the stock market).
When there is no mortgage, the closings often happen much sooner. We see people closing in a couple of weeks, once all the inspections are finished. Getting a mortgage later really speeds the process up.
One tricky question, however, is how to know whether the buyer is serious and qualified, without the help of the mortgage qualification letter. It seems strange, but it's sometimes easier to believe that someone is really going to buy if they are borrowing the money, than when they say that they have it in the bank. Not a bad issue to have, I guess, but it has been arising more frequently. The danger of real damage is less, however, when the closing is quick. Nothing's perfect, but cash is king!
While that seems like a lot, and it is, it makes some sense when it's so cumbersome to fill out the paperwork for a mortgage, and when the restrictions are so much tighter. I suspect that some number of those buyers later apply for, and receive, mortgages, especially with rates so low (although they're certainly not losing much in the way of interest on cash, and they don't have a great deal of stability in the stock market).
When there is no mortgage, the closings often happen much sooner. We see people closing in a couple of weeks, once all the inspections are finished. Getting a mortgage later really speeds the process up.
One tricky question, however, is how to know whether the buyer is serious and qualified, without the help of the mortgage qualification letter. It seems strange, but it's sometimes easier to believe that someone is really going to buy if they are borrowing the money, than when they say that they have it in the bank. Not a bad issue to have, I guess, but it has been arising more frequently. The danger of real damage is less, however, when the closing is quick. Nothing's perfect, but cash is king!
Tuesday, May 1, 2012
Activity Abounds
Finally, spring has sprung, and the real estate market has responded. I hear stories every day about listings that have sold in one day, listings that have not sold for two years and now have two offers in one week, listings that are having showings right and left, and buyers that are finally moving off the fence.
The market continues to be driven by first-time homebuyers, and there are still people moving here from other places that are choosing to rent before buying, but the activity is clearly on the upswing, and there is much more of a sense that things are beginning to recover. While we have more inventory than many other regions of the country, even we are seeing quick turnover in some neighborhoods and price ranges. For instance, Guilford still has 275 homes on the market, which is a 50% increase over last year, but houses are selling quickly there when they come onto MLS. East Rock in New Haven has 30 houses for sale, but one of our agents just sold one in a single day.
Have you been waiting for the market to turn so that you could buy or sell? Have you been waiting for prices to bottom out? Have you just been waiting? Wait no more. The time is now!
The market continues to be driven by first-time homebuyers, and there are still people moving here from other places that are choosing to rent before buying, but the activity is clearly on the upswing, and there is much more of a sense that things are beginning to recover. While we have more inventory than many other regions of the country, even we are seeing quick turnover in some neighborhoods and price ranges. For instance, Guilford still has 275 homes on the market, which is a 50% increase over last year, but houses are selling quickly there when they come onto MLS. East Rock in New Haven has 30 houses for sale, but one of our agents just sold one in a single day.
Have you been waiting for the market to turn so that you could buy or sell? Have you been waiting for prices to bottom out? Have you just been waiting? Wait no more. The time is now!
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