Archive for December, 2014
I wanted to wish every one a very happy holiday season – whether you celebrate Christmas, Hanukkah or another holiday. I hope that you are able to take some time off and spend time with loved ones and friends, in order to appreciate what is most important in life. I will be taking time off this week to do the same!
I wish you all a New Year filled with love, laughter, prosperity and good health. Thank you to all of those who have helped make 2014 a fantastic year in real estate. I love this business and value each and every one of my clients. I feel blessed to have such a great group of people with whom to work, and look forward to an amazing 2015!
It never fails – every year I always think I will have a quiet holiday season and be able to catch up on personal errands and have extra family time. But every November things always start to heat up in my real estate business. Offers on listings tend to increase (often multiple offers), there tend to be a flurry of showings, and buyers step out in force to see properties.
I hear many real estate agents say that the end of the year is accompanied by a slow down in the real estate market, but I have not yet found that to be the case. Those agents who decide to not work as hard or to take a break miss out on the plethora of opportunities at this time of year. But for those who continue to work hard with existing clients, answer their phones and tap into their client base, this time of year can be lucrative.
Busy Time for Sellers
As for sellers, I have written blogs over the years as to why the holiday time is a great time to sell. The main reason is that there is not a lot of competition, so the buyers who are out there searching for homes (and believe me, there are many) don’t have as many options. If you list your home at this time and it is priced and shows well, you may be surprised at the amount of interest you get… and of course there is the potential for multiple offers. If you are a seller, make sure to speak with your agent about the best way to market and stage your home during the holidays, because that will have an impact on its selling potential.
The other reason it is a great time for sellers is because interest rates and inventory are still low. This makes it an optimal time for buyers who may have otherwise decided to wait until Spring.
Finally, it is fair to say that the majority of buyers who are out there looking at this time of year are very serious, not just looky-loo buyers. Many people would rather not focus on purchasing a home during the holidays, so as they say “the early bird gets the worm.”
Busy Time for Buyers
The end of the year/holiday season is a great time for buyers, for many of the same reason outlined above. There is less competition, the listings that are active are usually placed there by serious sellers who need to sell, and right now interest rates are still very low. In my opinion many properties are priced more accurately at this time of year than say in the Spring, when many sellers test out the market to see how high they may be able to list above comparable sold properties.
Buyers, sellers and agents can all benefit during the last quarter and during the holidays if they continue to work extra hard into the New Year. Happy buying and selling, and I hope everyone has a prosperous and happy holiday season!
I find the old adage that 20% of people do 80% of the work to be true in the real estate sales profession. The industry exemplifies the average/exceptional delineation: the average agent sells 4-6 homes a year (personally I think it’s probably more like 2-3), and makes $34,000-45,000. The main reason is most agents are part-timers, which means they have other jobs and consider real estate a second (or third) job, or even a hobby. They do not put in enough hours and dedication to make real estate a profession, for many because it is a tough thing to do and income is never consistent (except for those who are top producing agents).
To excel at any job one needs to put in sweat and time, and real estate is no exception. Those who spend years building relationships with clients will eventually benefit from referral business; those who stick to their own proven way of doing business and work hard at it on a daily basis will see results, which will allow them to climb out of the average category. This is true in any profession. The question becomes”is average good enough for you?”
Many real estate agents and brokers lament over average agents and the problems that can accompany them – mostly issues related to ethics, not working hard enough or not being careful enough from a legal standpoint. After all, there are legal ramifications galore in this business, so one can ever be too careful, stop learning, or fail to stay on top of current laws and rules. I have written many blogs about the need for stricter rules and licensing standards in the industry, so I will not go into that here, but the irony is that if those things existed the profession would be treated more like a profession, and people would have to hold themselves to higher standards (brokers too would have to hold salespeople to higher standards).
So, are you average in your industry and want to get out of that rut? If so, you may want to ask yourself why you feel that way. If you are a person who strives to be above average but are not in that space, you should figure out how to excel. Evaluate your business, make a business plan, educate yourself further, reach out to all your clients and find a mentor. There is no need to be an average agent. On the other hand, if you are happy where you are then stay there, but make sure you do not ignore important issues like learning new rules, laws and forms. Either way, decide where you want to be and be the best you can be in that position.
The chart below shows the latest existing home sale numbers for October, as well as median home prices, unsold inventory index, median time on market, and the housing affordability index. The National Association of Realtors reported a 2.5% increase for the homes sold in October, compared to the same month a year ago. This makes it the first month in 2014 to see a significant yearly increase in home sales. The reasons for the increase were cited as lowering of mortgage interest rates (which dipped under 4% in October) and the slowing of home price appreciation.
Interestingly, several reports I have read indicate that housing prices are not going down, and that this trend will continue into 2015, with many states hitting new all-time highs as the housing recovery continues. Of course, much will depend on inventory levels, mortgage rates and other factors that we cannot predict, but the positive note is that properties are definitely going into escrow. Most escrow agents, home inspectors and appraisers I have spoken with are busy.
Chart provided by the California Association of Realtors.