Real Estate and Reston, VA: August 2007

In response to my own negative postings, I decided it is time to talk about some positives in the real estate market. Not generally a negative person, I think that there are some good (better) things going on:

1) I actually heard 2 financial specialists talk positively about the real estate market this morning, on the Early Show and on Good Morning America. They said it was a geat time to buy!

2) My listing clients understand how difficult marketing their homes can be in this market and are extremely responsive to my suggestions and open to discussing offers.

3) This one is personal, but I finally had some time to clean out my storage area and guest room.  I recognize that it is August, but I was able to sort through all of the ski pants and gloves thrown in a laundry basket last snow storm (a scary long time ago)!

4) There is a real spirit of cooporation among all parties to a transaction.  Realtors, lenders, settlement agents, buyers and sellers are all working together to make sure that the deals work!

5) The Realtors, lenders, and settlement agents who stick this out will be full-timers (or at least fully committed) who see real estate as a career, not just an extra revenue stream.

Feel free to share your feelings about the current state of the real estate market.

I work in Northern Virginia, outside of Washington D.C..  For ease of reference, we are often clumped by the press  into the "Washington,DC" market, but our market behaves differently than either DC or Maryland.

For the past year, I have watched the local and national reporting about the real estate market cause things to jump around and behave very strangley. Is it only me, or do other folks believe that the press is acting very irresponsibly by creating panic in markets that would not otherwise be as problematic as they have been?  I am in the trenches every day working with buyers, sellers, lenders, appraisers and settlment agents and I have seen over and over again the changes in the market coming almost immediately AFTER specific problems have been reported.  I understand that the press looks at a small situation and forecasts what it COULD mean for the broader market, but come on, I think the press is jerking us all back and forth!

Just this week, it was reported that the Washington,DC market was down, both sales prices and transactions. Well, guess what?  Virginia sales figures were up!  That was not reported in the same article. My clients read these articles and panic.  Buyers don't want to buy and sellers don't want to sell. 

I know that the downturn is news--believe me, no one pays more attention to these stories than I do--but how about an occasional positive slant? There are some real positives for buyers. Even sellers can be sure that the buyers are serious candidates. 

Does anyone else have any thoughts on this? Does anyone else think that real estate reporting has become very irresponsible?

There is no question that REALTORS get a "bad rap."  As in every profession, those who behave badly are remembered and those who do not ride quietly onto the next transaction. I do think however, that there are some misconceptions about REALTORs that I would like to address.

1. We are all rich.  Like the rest of you, we are just trying to earn a living.  Unlike (most of) the rest of you, our pay is 100% commission.  We don't receive a salary, we don't get bonuses, and to top it all off, we pay ALL of our own expenses and taxes (nothing withheld, stroke a check).  If we have a nice car, we have to pay for it. If we have a nice office, we  pay for it.  If we take you to lunch, we pay for it. If you spend a week looking for a house and then buy it from someone else, we have just spent one week of time UNPAID, but with expenses, trying to find you a home.  We also missed out on working with another client or doing marketing for future clients.
2. REALTORs are people who cannot do anything else. Most successful REALTORS spend a significant amount of time on education.  We come from all types of backgrounds.  Many of us are former corporate-types who just want to do something different.  Despite what you might think, many of us have a PASSION for Real Estate. Believe me, there are easier ways to earn a living!
3. It is easy work. This is almost a universal belief, and one that is completely untrue!  I have not had a vacation in several years where I did not work a good bit of the time.  Consumers who want to "sell it themselves,"  are often disdainful of the work that we do. I encourage them to try it...it takes a lot of time, effort, research, paperwork and organziation.  If it was so easy, why would anyone pay me?
4. We are all 'hustlers.' I can't tell you how many people back away when I tell them I am a REALTOR.  What do you think I am going to do?  Put the hard sell on you to buy or sell a house?  FYI, our role is really more as a facilitator than salesperson; no one can be talked into buying or selling a house unless they are ready to.  When I need to work hard on your behalf, you will see me 'hustle.'  I 'hustle' to keep my marketing consistent and timely.  Another way of saying this is that I am a hard worker.
5. Commissions are too high...we are all greedy. Each Firm sets it's commission rate.  Different Firms give different degrees of flexibility to agents to negotiate this rate. One thing holds true for every agent and every firm; part of every commission goes to the Firm.  The amount that goes to the firm varies from agent to agent, but rarely/never does an agent receive all of the commission.  Further, they must pay all of their own expenses, licensing fees, education, office fees and supplies out of the remainder.  So after they pay their broker, their expenses and their taxes, the balance is their take home pay.  It is not nearly as lucrative as it sounds!

I will concede that there are reasons for these sterotypes, but I would contend that you will find incompetence in every profession.  For the most part, I have found that REALTORs are a professional group of individuals who care deeply for their communities and the standard of living of their clients.  I have had the pleasure of working with many agents for whom I have admiration and respect for their approach to business. Each of us does it for a different reason, but I think you will find that most REALTORs take great pride in the level of service they provide.