Real Estate - Competition is Hot and Heavy

On July 25, 2006, testimony was given regarding the real estate industry at a hearing before The House Financial Services Subcommittee on Housing and Community Opportunities. The National Association of Realtors presented a picture of the business all too obvious to those who call this our profession. This is a dog-eat-dog business. Company to company, office to office, and agent to agent - competition is fierce. Even more intensified during a market that we now experience.

This was recently brought to the forefront in my own dealings with a client. Agencies and agents will say almost anything to capture business. Unfortunately, the public too often believes what they are told or buy into an innuendo that is all but hinted at. Casting doubt on other agencies and agents is nothing new, but in this indecisive business environment is ratchet up several notches.

Don't get caught in the crossfire of competing agents. We are all independent contractors for the agencies we work with. No one pays us for our time, our advice, our experience, our phone bill, or puts gas in our car. Our payment comes when a transaction is completed - a property bought or sold. Our thanks for a job well done is in the form of a happy buyer or seller, and an endorsement to their relatives, friends and acquaintances. And, always remember, a referral is only a starting point in deciding who will represent you in this very valuable transaction.

But, bottom line, the most important things to consider are not the lines of gossip delivered by the business-hungry agent or agency. It's the facts and nothing but the facts. My advice is basic and doesn't change. Don't hire an agent or agency for the wrong reasons. (Please read the Three Marketeers post)

If the agent you choose knows the marketplace, presents statistical information regarding listings/sales in your area, communicates well, is easily understood and provides you with necessary services, you have probably made a good decision.

New Jersey is Some Place to Live !

It's official, despite New Jersey's recent rush to national tabloid headline, we are not listed as the
winners in this year's "Best Places to Live."

Money's yearly competition lists will be the subject of their July 24 edition of the magazine.
Fort Collins, Colorado was the winner and there were five New Jersey towns that made the runner's up list.

Here are the Garden State's noted better places and their rankings:

Parsippany-Troy Hills, 17; Edison, 28; Wayne, 32; Cherry Hill, 47; and Middletown, 50.

While we all might feel that it's hotter than a blazing barbeque pit, New Jersey did not make the "Hottest Places to Live" list either. That category was wrapped up by Arizona, Nevada, and California locations.

And talk about H - O - T! Their average July highs are 105 and up.

You would think that New Jerseyans would soar in the highest median income per household category. Wrong again. We don't even make top twenty. Someone please notify Governor Corzine!

Check out the lists at www.cnnmoney.com

Real Estate - From "Boom" to "Kaboom"

Looks like the real estate "boom" has gone "Kaboom." We are now solidly in the midst of a buyer's market. But, as a real estate agent, I must ask "Where are all the buyers?"
The normal slowdown we experience from July until the end of August is in full swing. Buyers are on vacation, enjoying family time, beaching it and generally immersed in the freedom of summer.
The summer ebb was preceded by growing housing inventory and blase buyer interest. Deals were being made and transactions completed, but the pace had hit turtle speed.
The National Association of Realtors is predicting that existing home sales for 2006 will be down 6.8% and new home sales will be down 13.47% across the nation.
What does that mean for buyers and sellers?
For sellers, the increased inventory means that there is more competition. What must now be assessed, more than ever, is comparison with your neighbor. Has your home kept up with the times, been maintained, and have amenities that will spark a buyer's interest? A professional real estate agent will know if you don't. Good consumers consider quality and price. If you pale in comparison, your price should reflect that. The increased marketing time will bring prices down, as those that must sell will lower their asking price to distinguish themselves from the herd of other more costly properties.
With mortgage interest rates on a gradual rise (it is forecast that they will reach no more than 7%) a buyer will downgrade the price they are able to pay for housing. The cost of money will offset the declining housing cost.
Are there right times and wrong times to sell or buy? Every situation is different. It depends on the motivation of the buyer/seller, the wheres, the whys and the wherefores; and must be answered on an individual basis. Sitting down with a real estate professional can help the buyer/seller assess the marketplace, and view the facts statistically. No "smoke and mirrors," no "my neighbor said," or any other ideas that have no basis in reality.