Friday, December 14, 2007

Realtors Help in Flood Relief

I am a Realtor. Not all real estate salespeople belong. But, for those of us who do, each of us ascribes to a written code of ethics, higher than what is required by the state's department of licensing. We also work within our communities to further the interests of real property owners. Of late, our organization has spearheaded continual efforts by the State Legislature to increase the excise tax on the sale of all real estate throughout the state. When I started in 1972, the excise tax was one percent and the medium sale price of homes sold was considerably less than it is today. Since then, the excise tax has grown to well over 1.8% in many communities of the state. Obviously, the medium sale price of a home likely exceeds many hundreds of thousands of dollars.

As I said, not all real estate salespeople are Realtors. I am proud to hold that distinction. This week I am particularly proud to be a Realtor because of our efforts to help flood stricken communities with aid and assistance. I received the following email from Pat Maddock, President of the Tacoma Pierce County Association of Realtors, concerning our continuing efforts to provide relief.

The email states, “Yesterday, the Executive Committee of the Washington REALTORS voted to deliver $50,000 in assistance to the local REALTOR associations in the Washington Flood damaged counties. So, they could help the REALTOR families whose lives have been so severely disrupted by the recent flooding. Sitting in that meeting I was very impressed by the unanimous vote by our state leadership to do the right thing, at the right time. During that meeting it was announced that the Louisiana Association of REALTORS has already been in contact and they are sending a check to help in the relief effort, too. They did not hesitate to do so, remembering that the Washington REALTORS (that's you and me) were the first to send assistance following Hurricane Katrina and that was more than $70,000. Also during that discussion a call came in from the Seattle King County Association President, Dan Kennedy, saying that SKCAR, with their 8,000 members would add $5,000 to this cause. Immediately Karen Schweinfurth, the Snohomish County-Camano Island Association President added $2,500 from her association and this morning, your Board of Directors here at the Tacoma-Pierce County Association of REALTORS voted to match the Snohomish donation. I was equally proud of them but they went a step farther and that's where you and your adult family members come in. In fact, we can't pull this off without YOU!

“As a former FEMA employee, I can attest that following a major flood event there is an endless list of unmet needs. They take many, many forms and they are real and some are dire. Well, having spent hours on the phone with emergency management officials from federal, state and local agencies over the past twenty-four hours I can tell you that in some ways they are desperate...desperate for help. Yes. The cash donations go a long way but they need helping hands, too. They need bodies and they need them now. The media hasn't even scratched the surface in terms of the length and breadth of this most recent Washington disaster and the degree to which it has affected families throughout the area. We can help.”

Yes, through the efforts of all people, wonderful things can be accomplished.

Wednesday, December 12, 2007

A Holiday Visit!

As a Realtor, one of the most enjoyable things I do is deliver a Holiday Thank You Baskets to all of my clients I’ve had since I reactivated my broker’s license in 2001. I say it’s fun because I usually get invited into their home and we are able to chat about their year and important developments that may have occurred. They also want to know about my year and whether I have any more grandchildren. Most everyone is interested more in life and living; raising their families or enjoying retirement than in the negative news concerning real estate or the economy.

Although I enjoy it immensely, it does require an extraordinary effort to get to everyone and spend time visiting with them. You know, there are only so many days between Thanksgiving and Christmas. But, I can assure you, I certainly enjoy it immensely. What’s more important, most of my clients have come to look forward to my Christmas Basket and my visit.

Tuesday, December 11, 2007

Who's Your Real Estate Agent?

When listing a home with a real estate agent, how many sellers ask about how many listings does that agent carry? Is your real estate agent an individual or a team? Will you be working with the real estate agent you selected or someone else or maybe even a less qualified assistant? Or, is there anyone who will know everything about my property listing and sale?

As I watch the daily posting of new listings, I’m always intrigued by sellers’ who select agents who carry thirty, forty, fifty, sixty and even more listings at any given time. These agents give every appearance of being great superstars. But, is it reality or simply an illusion?

As for myself and my business model, I am not a team and I don’t have any assistants. I have no one other than myself to rely on for complete and total knowledge or support about any given property listing or sale. As to the number of listings I carry, being committed to personalized and individual service, it’s hard for me to imagine myself with more than 10 to 15 listings at any given time; sometimes, depending on the circumstances, far fewer. For instance, I currently have two high-end properties where I have to be present to open the house for anyone interesting in viewing either property. Of course, such a commitment can sometimes be a waste of time. Yet, for me, they allow me to distinguish myself above and beyond my competitors. It’s my personal commitment to my clients. Besides, who knows more about those properties, me or an assistant or another associate?

Of course, these are decisions every seller has to make for themselves. But I’m unsure whether most sellers have given much thought to the value of personal attention in the processing of their home sale or purchase. With my business model, I believe I provide a great value to my clients. Perhaps it’s something I need to talk about more often.

Don't be fooled ...

Although my intent has always been to provide significant daily updates about the real estate world in Pierce County, Washington, thus far there have been way too many distractions. For this I apologize. However, I’ve had more projects and clients which required my immediate attention. In other words, being busy has been a good thing for me.

As to the real estate world in Pierce County, it seems to be in a conundrum; interest rates are at the lowest point in months and there is a great inventory of well priced new and used homes. Yet many buyers have positioned themselves firmly and squarely on the fence. Content to see if the bubble bursts or the bottom falls.

Sorry folks, I hate to burst your bubble but that fence you’re sitting on will likely fall before anything else will. Plainly and simply put, the real estate market is too important to our overall economy to let it continue to falter. I believe that, since Reagan’s Presidency, where he inherited double digit inflation with excessive interest rates, you could make a great case that our entire economy is being controlled; like hot water coming from a facet. If it gets too hot, someone has been there to cool it down. And when it’s too cold, someone has been there, monitoring it carefully, to help heat it. So it’s always the right temperature. I believe the same will happen with our real estate market.

Now realize, what’s happening here in Pierce County isn’t at all comparable with what is happening in other parts of the country. So don’t get caught up in all the hype. Our economy is still good. Employment is still good. And we have ever reason to remain confident in ourselves and our work product.

But for those of you who are still fence sitters, here’s my sense of a likely and logical scenario. One day, without any warning at all, you’ll awake and find that the whole scope of the real estate market has changed and prices have returned to normal expected levels. While those levels may not be as high as had occurred in the past several years, they will return. And all of those great prices that you were content to watch are no longer available. Interest rates might even be higher.

If you continue to hesitate, you will surely wake up and find you missed an excellent opportunity. All in all, now is a great time to purchase a home or an investment property.