12/15/08
Looking back, the West Michigan Lakeshore Association of REALTORS stormed into 2008 with the theme that ‘Things would be great in 2008!’ The harsh reality is, we’re now approaching another new year and 2008 was not quite what we had hoped for in terms of real estate sales. However, it was not……I repeat, NOT, a total disaster as much of the media and even some WMLAR members would like everybody to believe. In fact, the numbers indicate some REALTORS have managed quite well during what certainly has been a tumultuous year.
First some hard core facts: Let’s hone in on Residential real estate for purposes of this report….that means single family homes, townhouses, condo’s. I the WMLAR MLS, we find that REALTORS helped over 7,762 families in the buying or selling of a home. Not a ‘banner year’ but nonetheless, a lot of activity. Depending on which specific market area you look at, the percentage of sales and average sales price is down somewhat over previous years – generally in the 15-22% range. However, spin it the other way around – if a market is ‘down 20%’ over previous year(s), that still means the remaining 80+% is legitimate activity with people buying and selling homes.
For BUYERS the current market offers some of the most outstanding opportunities ever. Not to be confused with ‘fluff marketing’ this is simply a cold hard fact and REALTORS that are ‘Selling The Opportunity’ have managed to get their arms around this concept quite well. Interest rates at historic lows, tremendous selection and an inventory of homes at prices that have flattened out – why would anybody not want to jump in and buy? Okay, fear of job loss and the dirty word ‘recession’ are factors to consider but if we get too hung up on the negative then we’ll all be living in tents. Scrap the notion of a nice roof over our heads and the American Dream and let’s just camp out in a pup tent.
We all need to be focusing on and accentuating the positive and stop dwelling on the negative aspects that surround us.
For SELLERS the current market may not be very good. We’ve become conditioned over the years to believe that real estate ‘always appreciates in value’ and prices will ‘always rise.’ That sort of thinking is in need of adjustment. By paying a mortgage payment each month you build equity that way, not necessarily building it thanks to inflation. So, the home the seller is selling may not bring the higher price the seller has conditioned themselves to want or accept……but wait, there’s an upside to this! They may not get what they want on the SALE but they’ll likely pick up the benefit of today’s market on the next home they BUY from a seller that is in the same situation! Do the math and things generally work out well, to the point that the ‘trade up’ seller/buyer is $$ ahead when all is said and done. Savvy REALTORS will help the public better understand this.
For REALTORS today’s market offers challenges that can be met and one word sums up what it will take to be successful. The word is WORK. As a rookie in the real estate business over 30 years ago I entered the industry looking at it just as REALTORS often look at it today – with illusions of grandeur. The thought often has been that being a REALTOR is easy work, lots of free time, making boatloads of money with business just dropping into one’s lap and the idea of having to WORK HARD was unthinkable! I connect with REALTORS daily….I know what’s going on out there. I know many who are sitting back crying in their beer, waiting for things to happen and for the phone to ring. Reality is, that’s a sure fire way to fail. Those doing well are working harder and longer and with more steadfast determination. What is the difference between a $1 million dollar producer, a $5 million dollar producer or a $10-20 million dollar producer? They all have the same number of hours in a day to work, the same number of days in a week, months in a year, so what sets them apart? Back to that word again, WORK.
I won’t even bother to hone in on my frequently heard ‘Sell the Sizzle’ idea…..those in the know understand exactly what that’s about. The top selling REALTOR in our Association closed over $30 Million in sales this year! 32 of our members have closed over $5 million, 165 have closed in excess of $2 million, and so it goes……I’m sure Einstein if he were alive would be able to engineer a mathematical equation between hard work + dedication + creativity and how it relates to SUCCESS.
So, things may not have been Great in 2008…..I’ll give you that. But 2009 is ahead of us and those who look for and grab the opportunity may well be able to say, by year’s end as we approach 2010, that Things were rather fine, in 2009!
All the best to you, be you a buyer, seller or valued member of the West Michigan Lakeshore Association of REALTORS.
Dale P. Zahn, CEO
