News crews started lining up on Saturday afternoon outside IndyMac’s headquarters in Pasadena, California. By Monday morning there were so many vans and news people ready to provide live feeds that they needed a parking valet. Everyone was hoping to see an angry mob and a good old fashioned run on the bank, not seen since the 1930’s. However things were mostly uneventful and low key. Due to the rising appreciation and availability of home equity loans over the last several years, it was estimated that none of the IndyMac depositors’ had funds in excess of $100,000, well within the government guaranteed limits. Many of the bank customers had recently begun dipping into their savings accounts to pay for gasoline as Californian’s have the privilege of paying some of the highest fuel prices in the nation.
Miss USA Predicts Housing Market Direction
Just like Punxsutawney Phil can tell us if winter is over, Miss USA can tell us the direction of the housing market. When Miss USA parades herself for the judges, slips and falls on her housing bubble, well folks the news is just not favorable. Last year when Miss USA fell for the first time, we had hoped that our new Miss USA could turn the other cheek. Apparently not, our housing situation will continue to be the butt of many untold tails. Would someone please place some rubber soles on the shoes of next years contestant?
And to add insult to injury, this week’s issue of Barron’s, right there on the front cover proclaims “Home Prices Are About To Bottom“. Now that is what I call foresight.
And finally, the “Wall Street Journal” chimes in,
Today’s special feature “How to Sell A House, When You Have to Sell It” provides readers with 7 timely tips which include:
Fix it and Clean it up
Price it Cheaply
Hire a top real estate agent
Now I can understand why this is one of the most respected newspapers in the nation. Wait a minute; I think we have covered much of the same material.
Occasionally I will see something that looks a little outrageous and decide to bring it to your attention. Maybe you agree with me or maybe you don’t. This weeks offering has to do with this picture. This photo was actually used in a listing photo of a house for sale with the caption “wine cellar”. Looks to me like someone set up a wine rack in the basement and euphemistically called it a “wine cellar”. Is it genius or is it grasping for something to say?
Telling the truth attractively and with a positive spin is an art form. It has been used very effectively for Budweiser and their Real Men of Genius advertising campaign. So we thought we would start another and call it “Real Estate Agent of Genius”.
Up2date Presents Real Agents of Genius
Today we salute you, Real Estate Agent of Genius:
Armed with your disposable camera and 25 hours of continuing education, you set out to make your mark. Open the aperture and eliminate the dark, you sultan of the shutter.
You’re really onto something with this wine cellar idea, Stir up the dust to make the bottles look old and valuable; did someone say “Two Buck Chuck”? What’s next an old table next to the street your calling a sidewalk cafe? You were born to sell.
These home sellers should be glad they have you on their side you maven of marketing. You were the head of your correspondence class. So snap open a cold Bud Light, you Ansel Adams of the basement.
Today, we salute you, prince of the photo, and illusionist of the image, Real Estate Agent of Genius
When I search Pasadena homes for sale, I can come across some real doozies. Not just in the actual properties, but in how real estate is listed and sold. Many real estate agent’s will use, fanciful, descriptive and yes, even deceitful information in an attempt to sell their properties which are listed for sale. With so many houses available today, agents are looking for that unique phrase that will catch people’s attention, become memorable and hopefully create an interest where a potential buyer will want to take a look at the house that is for sale. Puffing is a term used to describe an exaggerated listing usually indicating the description of a property is much, much nicer that the property itself. Yesterday, I came across the blue ribbon winner for 2007. The description stated:
Beautiful triplex featuring a classic craftsman with 3 beds and 2 baths in the front. Two cozy 1 bed, 1 bath units in the back. All of the units need some TLC, but have great potential. Perfect for the owner who wants to live in the front and rent the two units in the back for extra income
Use Ugly To Your Advantage
Rather than trying to paint an idyllic picture of this property, the agent should have gone ugly early. Ugly Sells! It indicates a distressed property that could be picked up at below market. Instead people go over to the house expecting one thing and being extremely disappointed. The lady I showed the house to commented “I have been looking at property for 30 years and I have never seen anything like this”. It was awful.
The description which would have been more indicative of the condition should have read:
Craftsman property in need of re-crafting. Bring your Bio-Hazard suit. Enter at your own risk and be careful you do not twist an ankle on the buckled and termite infested wood floors. If skid row is your ideal of cozy, then you will adore the units in the back. Be careful of the pit bull (Named Killer) in the back. He is usually chained.
Now, if this were the description, then potential buyers would be very impressed because their expectations have been set so low that there was no where to go but up. It lets them know that the term “fixer” is far to mild for the condition and this is not for the faint of heart. Sometimes all you have is all you have and no matter what flowered description you put on it, it just won’t help.
Whatever is good for General MotorsStarbucks, is good for the US economy.
I cannot think of any US companies that have been able to build a brand that has become so ubiquitous. And in the manner in which they have done it. Think about it. When was the last time you saw a Starbucks ad or flier in the newspaper offering a discounted price on a cup of coffee to get you into the store? What if Target or Best Buy could generate increased store traffic week after week without those fancy colorful 12 page Sunday circulars? It just can’t be done. The American economy is built on advertising and promotion. However, their strategy is to blanket an area with retail stores and forgo the advertising. Or at least it was.
Has Starbucks become the new American icon?
Here in Pasadena I count 9 freestanding Starbucks stores to only 3 McDonald’s. Some of the stores are so close you can walk from one to the other. However there may be storm clouds brewing. Starbucks introduced this week a national TV campaign and indicated that sales growth may be slipping. Other fast food competitors see the margin to be made in a $2.00 cup of coffee and who better to go after than the company that created it. Is the sale of a single cup of coffee impacted by competition or by the economy?
Has the Housing Market affected Starbucks?
A slowing housing market impacts many industries. It may not be felt immediately but over time its bound to catch up. Consumers have a choice to make in the morning. Spend $3.50 on a jumbo half caf, double down latte or buy a gallon of gas. Spend $4 for an extra espresso shot or buy a gallon of milk. There comes a point when external forces place too much financial pressure on the American consumer, then they step back and say UNCLE. No mas. Enough already.
Could this be the scenario in the housing market? Are consumer’s saying prices are too high, and homes are unaffordable? The price of money is fairly inexpensive and thereby the housing market should be much more bullish if past history would be any indication. Consumers may just be feeling uneasy about the economy and thereby avoiding a 30 year commitment in the form of a mortgage.
As we drift into unchartered water, consumer buying habits may become harder to predict. Gas prices previously flirted with $3.50 to $4.00 a gallon, but last time we had a housing market. Oh well, enough analysis for the evening. It’s getting late and if I am going to finish my other projects tonight, I need a cup of coffee.
Sometimes I just have to ask myself “What do people expect”? In these days of ever increasing homes for sale, I am continually amazed at what some people will do in an attempt not to sell their house.
For instance, take the home seller who continually proclaims that they must sell, yet when agents call and try to set an appointment to view the house, repeated calls to the owner’s home, or the two cell phone numbers go unreturned. The lockbox still sits empty because the seller refuses to make it easy for an agent to show the home and allow easy access.
Take the seller who has refinanced and taken money out of the house several times only to find themselves owing more that the house is currently worth. Hoping beyond hope that someone will offer a higher than market price for the home, because that is what is needed in order for them to walk away with some cash.
More from the excuse file: “Well my house is a wreck and I did not have a chance to clean it, therefore I cannot have anyone show it today”. “We have people over this afternoon, so now is not a good time”. “Unfortunately, I did not get to paint it as we discussed”. “You need to give me at lease a 24 hour notice before you can show it.”
The list goes on, but now you get the idea. Selling a home is a partnership between the agent and the homeowners. Some homeowners get it, some are slow to catch on and sometimes, oh well. These days it is a must to capitalize on every opportunity. That means forget your schedule and time frame. If you really need to sell your house then bend over backwards if necessary in order to comply with an agent who is attempting to show and sell your home. Drop the mentality that is “me vs. them”, because if you don’t there is probably a house just around the corner that is ready to go into escrow.
Selling you home will be an inconvenience at times. Albeit a minor inconvenience. Your regular routine will be interrupted for a while. Accept it and keep the end goal in mind when an agent calls and says that they are just around the corner and will be there in 15 minutes.
I met with a couple the other day and was greeted outside by the husband. He immediately informed me that his wife had a tremendous dislike for real estate agents. Actually that is not news. Right or wrong, just or unjust, most people have an immediate opinion of people in the real estate profession. We’re in good company though. Right up there with telephone solicitors, used car salesmen and lawyers. I don’t understand how lawyers made it into this elite field.
Maybe I was being placed on notice, or I was in for the good guy bad guy routine. I’m thinking “who called who here”? They approached me. They ask me to come meet with them.
I learned early on in my career not to take anything personally. Many times people will chide you or say things to see what kind of reaction it solicits. There are very few things that anyone can say to me that I take personally or get upset with.
Maybe the deeper issue here is “Why do people have a dislike for real estate salespeople or salespeople in general? I have seen salespeople practice hit and run tactics including here today, gone tomorrow or anything to make a sale. Quite frankly I don’t hold these people in high regard either, but that does not mean one size fits all.
A consultive salesperson, one that can truly advise you and represent your best interest is an amazing ally. Come to think of it that is the relationship you should have if you work with a Realtor. The reason is simple, a Realtor has an obligation to act in a fiduciary capacity.
So the next time you find yourself in a situation, a negotiation, a purchase decision or just plain conversation, ask yourself, “Is the other party looking out for my best interest, or their own”?
New Entries
By Monday morning there were so many vans and news people ready to provide live feeds that they needed a parking valet. Everyone was hoping to see an angry mob and a good old fashioned run on the bank, not seen since the 1930’s. However things were mostly uneventful and low key. Due to the rising appreciation and availability of home equity loans over the last several years, it was estimated that none of the IndyMac depositors’ had funds in excess of $100,000, well within the government guaranteed limits. Many of the bank customers had recently begun dipping into their savings accounts to pay for gasoline as Californian’s have the privilege of paying some of the highest fuel prices in the nation.
