Why You Can't Possibly Listen To What They Say Now

By
Real Estate Agent with Joe Manausa Real Estate 8508880888
http://actvra.in/5MV

No They PictureThey say that now is the time to buy (if they have something to sell). They say two out of three aint bad. They say that “where there’s a will, there’s a way,” but I suspect that this is just a marketing conspiracy created by estate attorneys.

They say that the early bird gets the worm (but my son Max asked “what about the worm?”). They say that 80% of the work is done by 20% of the people (which I have disproved for the real estate profession in an analysis of closed sales two years ago). They say that “love don’t pay the rent,” but they might not have visited a (well, you know).

The point is, “they” say a whole lot of things, and as a society we have learned to accept a lot of common expressions and sayings as truths in our lives. For the most part, this is harmless and quaint.

But “they” also have a tendency to travel in packs in the news world. When a reporter is covering an issue that he or she does not understand (or one that does not personally excite them), we see a tendency of these people to just report the half-truth spins of industry lobbyists. And this is where harm does occur.

What-They-Say-About-Real-Estate-Image

 

It is time for a self-policing action by the professionals in the real estate industry. We can no longer be the “they” that is spouting the garbage that causes our collective voice to have little or no creditable value among consumers. If NAR continues to publish half-truths and lies in an effort to stimulate the market, won’t OUR voice eventually carry no weight at all with consumers?

When we report on conditions in the Tallahassee housing market, we do our best to isolate trends and provide an opinion of what it means to the short-term and long-term expectations of homeowners. Just like NAR, my ability to earn a living for my family is based upon the number of homes that my company is able to sell each and every day. I want to sell homes. I have a vested and passionate interest in all of the homes for sale in Tallahassee.

But I also have a vested interest in the Tallahassee community. NAR personnel come, and NAR personnel go, so “they” do not live in the community in which they  “serve.” But I do.

I am a bull on real estate. I believe real estate investing will absolutely blow the doors off of any other passive investment for most people. But only if it is done correctly. And only if the investor pays attention and watches market cycles. The frenzy of the boom market 6 years ago was caused by many factors, and “they” were at the heart of it.

Don’t listen to “they,” the advice is toxic. Take in your own readings. Find trusted advisers. Learn to spot trends. And then do the opposite of what “they” are doing. Real estate is not rocket science and it is something that most people have to deal with in their lives anyway … so it is a natural vehicle for smart, safe investment.

Real estate investment, when done correctly, is not flash and it is not exciting. But it certainly can be rewarding. If you think common-sense investing could be the right answer for you, just let me know and I will show you the smartest way to get started.

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Topic:
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Location:
Florida Leon County Tallahassee
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"Whacked"!!!
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Rainmaker
765,274
Joe Manausa
Tallahassee Real Estate
Joe Manausa Real Estate

Larry, I agree in part. I am optimistic and actually think now is a great time to buy. Unfortunately, that mantra was shoved down everybody's throats in '05 and '06 and (forever) that it is not a viable marketing concept. What value (credibility) do you have if your message about the market never changes?

Nowhere do I advocate telling people "don't buy, don't buy," what I said is to report responsibly. Had this been done in the past, our cycle imbalance would not have been so great, and the recovery would already be complete.

February 24, 2011 08:25 AM
Rainmaker
159,176
Howard and Susan Meyers
The Hudson Company Winnetka and North Shore

Great post Joe.  The NAR was guilty of waving the "buy flag" the entire time the ship was sinking....think 2005-2007.  Seems they were looking at different data then we all were.   One might suppose that this is the role of a lobbying organization. On the same token, maybe they could have been a bit more forward thinking in their agenda.

You can't repeat this mantra too many times..."All real estate is local."

The biggest problem that this NAR policy has created for us is a perspective from the public that diminishes our credibility

For those of us who feel that there is currently a great opportunity in residential real estate, we are trying to influence a public that questions our integrity and motives. 

 

February 24, 2011 09:04 AM
Rainmaker
765,274
Joe Manausa
Tallahassee Real Estate
Joe Manausa Real Estate

Thank you Howard & Susan. Exactly the point we need to spread among our peers.

February 24, 2011 09:07 AM
Rainmaker
259,264
Coral Gundlach
Century 21 Redwood Realty, Arlington Virginia

I say over and over, and recently wrote a blog about it - you cannot decide if it is a right time to buy based on market conditions.  Personal circumstances outweigh market conditions any day.   Just as national sales figures are basically meanlingless, so are talking heads telling the whole country it's a good time to buy.  It is if you are ready, and have your act together.  If you don't, it's not.

February 24, 2011 09:47 AM
Rainmaker
596,433
Petra Norris
Realtor, Lakeland FL Homes for Sale
CDV TransAtlantic, Inc.

Joe - Amen! Well spoken.  I'm first to admit that I jumped on the "time2buye" bandwagon - I have learned a lot since then.  I was so wrong. Real Estate remains local and we as Realtors need to do everything to educate the consumer and the media. 

Great Job!

February 24, 2011 10:01 AM
Anonymous #9
Anonymous
Anonymous

First off- you made an excellent choice naming your son.

Market data is a tricky thing. As with most anything when it comes to statistics you can spin the data to your liking. Most weeks we get conflicting data, and depending on the authors vested interest, you can typically set some expectations on the commentary. NAR bullish data regularly contradicts other market reports. This week is a perfect example.  Case Schiller supports a double dip, and NARexisting home sales points up. HPI later today probably will show flat, just to keep things interesting. The data isn't always right, nor will we always be right as professionals in our opinions.

Data is localized. Investing is client specific and situational based on suitability.  Up, down, sideways, people make money in real estate in any market. It is our job as professionals to guide consumers through the process and help them make the right decisions, at the right time for the right reasons.

Clearly you are doing that. Thanks for the great post.

February 24, 2011 10:08 AM
Anonymous #10
Anonymous
Anonymous

First off- you made an excellent choice naming your son.

Market data is a tricky thing. As with most anything when it comes to statistics you can spin the data to your liking. Most weeks we get conflicting data, and depending on the authors vested interest, you can typically set some expectations on the commentary. NAR bullish data regularly contradicts other market reports. This week is a perfect example.  Case Schiller supports a double dip, and NARexisting home sales points up. HPI later today probably will show flat, just to keep things interesting. The data isn't always right, nor will we always be right as professionals in our opinions.

Data is localized. Investing is client specific and situational based on suitability.  Up, down, sideways, people make money in real estate in any market. It is our job as professionals to guide consumers through the process and help them make the right decisions, at the right time for the right reasons.

Clearly you are doing that. Thanks for the great post.

February 24, 2011 10:08 AM
Rainer
222,521
Geoff ONeill
John L. Scott Medford

I threw away the crystal ball many moons ago.  At this point, we can give our buyers and sellers a good snapshot of the current market, and let them know what it is going to take to either buy or sell.  Keep in mind that your information needs to be accurate, and like Max said in the previous post "Data is Localized".

February 24, 2011 10:15 AM
Rainmaker
589,116
Margaret Goss
Chicago's North Shore & Winnetka Real Estate
Baird & Warner Real Estate

If "they" were only right once in a while, we'd listen.  We have to be the knowledgeable ones about our markets and be the authority on what's going on.

February 24, 2011 10:32 AM
Rainmaker
216,353
Chris Sloan
Tooele Utah Real Estate
Group 1 Real Estate

I prefer to be the "they" that my clients listen to. While I love the legislative advocacy that NAR provides, in my neck of the woods, no one knows who "they" (NAR) is anyway. If there is a housing question in my town, I love that the newspaper calls me to comment on it, allowing me to be the "they". My info is based on what is happening in my market, not on what a talking head says 3000 miles away. It is a great time to buy...for some people. It's also a great time to sell...for some people. Let NAR keep working on lobbying. I'll work on being the "expert" in my area. Great post!

February 24, 2011 11:02 AM
Anonymous #14
Anonymous
leon

Wow. Wisdom from the survivors. Spread the word.

February 24, 2011 11:06 AM
Rainmaker
37,168
Joe Yates
The Atlas Group

I had a friend/sales trainer that used to say "Prescription without diagnoses is malpractice". 

The meaning of course is that we have to evaluate each individual situation and the determine if it IS in fact a good time to buy. 

In 2005 and 2006 there was something that was just as sad as seeing people buy more house than they should have and that was watching people that had lived and worked in our community for years that were COMPLETELY priced out of the market. We all saw it and it didn't seem very fair.

For the individual that DOES have the dream of being a homeowner, has steady income and buys within their means, it very well may be the best opportunity they will get to buy for quite some time.

Yes, we need to be the professional to help guide them to make a smart purchase. 

Ps- I went to a Sales Conference in Los Angeles in January of 2005 and listened to "experts" say that 2005 was going to be a dificult year. WOW... slight miss on that one.

Don't put much stock in what "They" say.

Make it a great day!

 

February 24, 2011 12:06 PM
Rainmaker
655,342
Pamela Seley, REALTORĀ®
Menifee Lakes California Real Estate
REALTY EXECUTIVES OTF

Joe, I'd be interested in knowing your analysis about the 80/20 rule.  That's been drummed into my head for years now.  NAR advertises on local radio that our market is rebounding and now is a great time to buy. I've heard that 2011 will be the worst year for real estate. Do I believe what they say?  They've also been saying the next wave of foreclosures is coming, and that's been said for the last 2 years, or more, and there is no second wave.

February 24, 2011 12:39 PM
Rainer
122,248
Cory Barbee
Broker (760) 563-4022

Great post Joe. I depends of the financial goals of the buyer. There are always buyers and sellers in every market...we need to ask the right questions and make sure we are doing are best as professionals and quit looking at the commissions....

February 24, 2011 12:41 PM
Ambassador
784,557
Charlie Ragonesi
Homes - Big Canoe, Jasper, North Georgia Pros
AllMountainRealty.com

Joe I wrote a blog along the same lines about a week or so ago and I could not agree with you more in your analysis of NAR

February 24, 2011 01:27 PM
Rainmaker
570,044
Bill Gillhespy
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos
16 Sunview Blvd

Hi Joe,  Like you I remember the spin coming from NAR and some of the state boards.  It certainly put a definite spin on the market and in the end sounded desperate !

February 24, 2011 02:50 PM
Ambassador
983,269
Craig Rutman
Raleigh, Cary, Apex area Realtor
Helping people in transition

Perhaps if NAR spent as much time letting the public know why buyer agency is a good thing as they do spouting off that "Now is a great time to buy", we wouldn't have to spend so much effort convincing buyers that having representation doesn't cost them anything and it's to their benefit to do so.

February 24, 2011 05:08 PM
Ambassador
1,227,260
Erica Ramus
MRE, Schuylkill County PA Real Estate
Erica Ramus - Ramus Realty Group - Pottsville, PA

The "now is a great time to buy" ad campaign was just that: an AD campaign. No wonder why many people don't trust us?

February 24, 2011 06:19 PM
Rainer
160,675
Don Hintz
2D-enterprises / HAUS Design, LLC

Joe,

The difference between "they" and "YOU" is you know what your talking about.  20% of the 80% of they don't have a clue.

February 24, 2011 08:46 PM
Rainmaker
746,265
Carol Zingone
Global Realtor Based in Jax Beach, FL
Berkshire Hathaway Home Services Florida Network Realty

Everything with a grain of salt - for some, now is the best time to buy, for some it's the best time to sell. Real estate is local, so national and regional stats are flawed as they can disguise true local supply and demand, and here in FL, we are very subject to the media's perception of the market on a state wide basis.

February 24, 2011 10:24 PM
Anonymous
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Rainmaker
765,274

Joe Manausa

Tallahassee Real Estate
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