Realty World Northern California & Nevada

I’ve had the blessings of great mentors and teachers in my life. A very wise gentleman I have the utmost respect for once told me during a tough time that “Nothing very bad or very good lasts for very long.” I have reflected on this lesson quite often over the years and even more so lately. I think many of us have had a tough go of it over the last year or so and it’s very easy to think that when times are tough, you’ll never see the end. But history repeatedly tells us that this just isn’t so.

I remember, as some of you might, that the early 80’s were real tough times, especially for those of us in the real estate profession. Prime lending rates were 21%, nothing was selling, and the only mortgage products available were 30-year fixed rate mortgages at 18% or “creative financing.” Adjustable/variable rate mortgages came later as a result of that difficult market. Many of us who went through that period thought it would never end, but it did! Actually, the end took only a couple of years and then the good times started to roll and continued for almost 2 ½ decades, with a few bumps in the middle.

See … nothing bad lasts for very long and, therefore, you and I should find great comfort in this valuable lesson.

So what about the flip side? Nothing GOOD lasts for very long. That’s not very reassuring, is it? This lesson, in my opinion, is more important than the former. When times are good, as they will be again soon (some say it’s starting now), we should be acutely aware that they won’t last forever. Many of us get caught up in the good times which is extremely easy to do. Then euphoria kicks in and we wind up making some pretty dumb mistakes due to arrogance or ego.

So what should we do when times are good?

1. Take advantage of all the opportunities presented before you.
2. Be positive and aware.
3. Be prudent in business and personal decisions.
4. Be grateful for the good times when they’re here.
5. Most importantly, be prepared for the next correction.

If we prepare, plan, and carefully keep our egos in check during the good times, the inevitable down cycle indeed will not be that bad at all! Make this year your “good” year!

Scott Gill
Senior Vice President
Scott.Gill@rwnc.net

I was at a meeting a couple of weeks ago at the Santa Clara County Association of REALTORS® (SCCAOR) where the President of that Association, Quincy Virgilio, Realty World-California Property Network and Gov Hutchinson, Assistant General Counsel and Staff Vice President of the California Association REALTORS® (CAR) outlined the various benefits of being a member of the local, State and National Associations of which there are many. I was actually surprised to learn that there are some real estate brokers who choose not to associate, primarily due to costs. Times are tight and I understand that; however, as I mentioned in an earlier blog article titled “Are You In or Out of the Real Estate Business?” Part 2,  there are certain costs associated with real estate that are necessary in order to function as a business and effectively compete. I believe this is one of those costs.

The annual combined membership dues at SCCAOR, including CAR and the National Association of REALTORS® (NAR) are $474.00 per year. Some of the services include the use of the REALTOR® Trademark, CAR legal counseling services, access to group medical and insurance plans, free tech support services, etc. The legal hotline at CAR is worth the annual fee alone. How many times have you had a legal question and struggled where to get a quick and accurate answer, much less how to pay for it? Well, as a member of CAR, you can call their legal hotline and get your answers for FREE within 24 hours… it’s a bargain! If you’re a broker licensee, most of the time you will get your answer that same day. Ever have a computer problem? At SCCAOR, you can have it fixed (minus parts, if required) by their tech support team for no charge. Of course, Local Associations vary somewhat in services so make sure to ask your Association exactly what services they include. In the long run, if you’re serious about your real estate practice, keep these memberships active. They are very useful.

Scott Gill
Senior Vice President
Scott.Gill@rwnc.net

There was a wonderful article written recently by Bernice Ross titled “Gen X, Gen Y Buyers Rule Market” that identifies this huge demographic, second only to the Baby Boomers (at least for now). The article briefly discusses where these generations are relative to entering the housing market and how they engage in their unique forms of communication.

Due to the decline in valuation of home prices, the glut of REO inventory, and historically low mortgage rates, this is the perfect set of circumstances for this young group of savvy buyers to jump in and get their piece of the American Dream. And, it seems they are starting to do just that!  The real estate cycle of homeownership does not move forward until first time buyers get into the market. Real estate inventory starts to be absorbed once the first time buyer purchases their first home, generally an entry-level property. At this point, the former owner can move up and so goes the cycle’s forward momentum. This is why it’s important for Gen X &Y consumers to engage in homeownership… and this Baby Boomer, for one, is thankful they are.

For professionals in the real estate business, it would be prudent to deploy a strategy to help Gen X & Y consumers today. However, if you think traditional sales and marketing approaches will work to attract them, you will be disappointed in your results. Generations X & Y consumers communicate, respond and engage quite differently through the use of technology and online social networking. If you are not using these new methods of communication, don’t despair. However, it would be wise to retool your approach and start communicating with Gen X & Y buyers. They’re out there in huge numbers and they’re looking for you to help them buy their first home!

Scott Gill
Senior Vice President
Scott.Gill@rwnc.net