I got a call this afternoon from Matt Fagioli with Diamond Dwellings. His brokerage is a presenting sponsor of the REtech South Conference which is coming to Atlanta on March 27th, 2008.
(ok, ok, this is an industry event… but I have some local industry readers…)
Basically, it is a
I used to work in the retail world. I managed a store. We did a bit less than $2m/year. It was part of a mid-sized chain. We were quite focused on our specific niche. We sold a particular type of product.
(Am I being too vague here?)
A couple of years before I left, we were purchased by a bigger specialty retailer. They specialized in the same niche we specialized in… On the surface, it didn’t seem like it would be a big deal for our clientèle… but it was.
Instead of concentrating on our niche and demonstrating that we were THE experts in our field, they expanded the product lines. No longer were we to be identified as a niche company. We should be more things to more people.
No longer were the sales people to be the most knowledgeable about one thing. It wasn’t about knowing the market for the niche. It was now about knowing a bit less about more.
My Dad often told me something. It has stuck with me for a long time:
A specialist knows more and more about less and less until he knows everything about nothing.
A generalist knows less and less about more and more until he knows nothing about everything.
A specialist retailer has to carefully balance expertise with market breadth. As does a real estate agent.
WalMart doesn’t staff with experts on anything (at least on the floor… unless it is just luck). Bob’s Left-handed Pen Emporium doesn’t have much of a market… of course, with the internet there is room for Bob.
Look around at the choices for real estate agents. There are a lot of generalists.
… of the NAR. Here is a link to the post. Dick Gaylord, the President of the NAR, raises some very good points, but I had to rebut the post as a whole.
The first thing I need to say is that I am proud to be a REALTOR®. I love the work that I do. I love helping clients buy and sell houses at the various stages of their lives. Seeing their goals realized is incredibly satisfying.
As you know, NAR has been criticized in the news media for our “rosey” outlook for the real estate market. More often than not, they say we are too positive about the prospects for housing values in the future.
…
Terry gave his clients and agents a look at how accurate the news media has been about previous housing cycles. Below is the e-mail he forwarded to me, which shows how various media outlets have consistently predicted a long-term decline in home values since the 1940s. Yet, every time, the so-called decline was short-lived.
The email has quotes from various media outlets over the last 60 years. In each case, the quote points to a long term prediction based on short term information.
And I agree with both Mr. Gaylord and Mr. Forsberg. I think that the media does give real estate the short stick… but they do the same thing to EVERYONE else. In fact, let’s look at the VERY recent past. This isn’t real estate, but it shows the mindset.
The media (in general) wants to be first to break the story. So, they often make wild jumps in order to get the conclusion before anyone else. That would be why the results of an election are projected based on 1% of precincts reporting… That would be why Hillary Clinton was presumed to be the nominee of the Democrat Party… and Rudy Guliani was to be the Republican nominee… and then it was Barak Obama and Mitt Romney. Now we find John McCain the actual nominee, and Hillary hasn’t quit… and isn’t that far out of contention.
But, back to the subject at hand… the NAR and their rosy predictions, ostensibly to counter the negative spin from the media…
Here is my complete reply to the post at the NAR blog. I do not know if it will clear moderation.
But you have to admit that 5 or 6 quarterly reports that say “the worst is behind us” each time… while the market continues to erode is a little tiring.
We all know that the media’s market readers keep preaching that whatever is happening in the short term will last forever. But the NAR hasn’t been too realistic about the short term. Instead of telling people that the market looks challenging, the NAR message has been “Prices are up, it’s a great time to buy.” or “Prices are down, it’s a great time to buy.” The truth is that it is a great time to buy for some people. It is a lousy time to buy for others. Consumers should consult with THEIR REALTOR(R) to find out which camp they are in.
If you want to know if this is your time… call me, and we’ll talk. I would also recommend talking with a good mortgage broker. Feel free to let me know if you need a few names.
I just posted up the January/February Market Report for Gwinnett County on Garage Homes USA. I wish I could say that the market has turned, but I can’t.
But I can say that there are some killer deals…
How about an for an investor looking for a cash flowing property…
The seller is retiring… has several to sell over the next couple of years.
So, the market gives with one hand…
And my wife would be happy to provide a list… But, this is about real estate. Specifically, short sales.
A short sale in real estate is selling a property below the mortgage payoff, and getting the bank to take the loss. They are done, but they are pretty rare… and I ran across a great post about short sales from FranklyRealty.
photo credit: Eric I. E.
He knows a lot more about these beasts than I do. For that reason, I don’t take on short sales. Unfortunately, there are a lot of agents that have figured out that being a “Short Sale Expert” might be real profitable right now. It leads to a lot of listings… which can net a lot of buyer leads. In other words, they aren’t really worried about the short sale, just the buyers they might get while trolling the listings. To pile on, there are a load of classes so that agents can talk the talk… even if they can’t walk the walk… Three hours does not an expert make!
I refer out short sales to agents that are experienced in making them happen… and they CAN happen. They just aren’t likely to happen with “Experts” that have never done one before.
So, if you are in a short sale situation, feel free to give me a call, and I’ll find an agent that can help you… just about anywhere (I have a pretty good database). If you are looking to buy a short sale, I can help with that too.
Honestly, for buyers, they may not represent the best deal. Focus on the value, rather than discount from list price… that is a whole different post.