I contend that while the current market is challenging and as a whole, movement on sales is slow, there are still deals closing and still people making money. Not everyone, but they are out there.
You see, the market is slow... NOT STOPPED.
WHY ARE PEOPLE WHINING? There are people out there working very hard to use the current market conditions as an excuse for their own failures or lack of effort or lack of creativity. And any agent or lender that explains to every potential client, friend, neighbor, and vendor how awful the market is and how "nothing" is moving right now is likely to scare away the potential deals that are still available.
So, the problems only get worse for the whiners (and probably for their clients too)!
These so called "professionals" fail to see an important point. Even if a client (or potential client) understands how they can make money in the current market, they are going to avoid the doom-n-gloom agents and lenders. These clients want a professional that understands the market cycles and does not have a deer-in-the-headlights look of confusion due to a naturally occuring market cycle.
To whine makes one look uninformed, uneducated and unprofessional!
I am not saying you have to feel good about the market. And you clearly should not pretend all is super great. But a rational understanding and explanation for clients about how money can be made in each phase of market cycles is a big part of being a trusted adviser that people will seek out for business deals.
In a capitalistic market, each period of the natural cyles of boom and bust is a period where some people make money and, yes, some lose money. If the economy is good, new wealth may also be created.
It is Economics 101. Almost every day there is either too much supply or too much demand. That can mean:
* Too many properties or not enough properties.
* Too many agents (or lenders) or not enough good ones that don't soil the industry.
* Too much money (can you say "sub-prime" and "loose requirements?") or not enough money available.
The market cycles are natural. Learn how they work and make money. People do this every day inspite of markets.
If you feel you are powerless to the market and all you can do is whine to anyone that will listen just to prove it's not your fault, do everyone else a favor and take a look at yourself and how this appears to others. Does it help you be successful in anyway? If not, maybe whining about it is not such a good idea. It is a great opportunity to mature as a business professional!
You are right about that. When I get asked the question, how are sales in the market? I say, they are still selling but at a slower pace. You, the seller have to make sure your home is in tip top condition so the buyer has no excuse not to buy your home.
Nice blog post. It is very important to maintain a very good understanding on what is going on in your local markets, and even try to understand what is happening nationally and how it may impact your market. Above all, maintain a positive attitude about what is going on, look to the bright side so to speak.
I just finished up one here at Active Rain basically talking about Doom & Gloom, and how I just love it. Check it out if you like.
Jim
Glenn. You are so right. We have to keep our head up no matter what. It will get better. Thanks for posting. Royal..
Angelia Garcia (Francesca Realty.LLC) Angelia, you got it! Focus on success and help the client do the same will make deals happen in any market!
New Jersey Real Estate James Boyer Morris, Essex & Union County NJ Realtor (RE/MAX Properties Unlimited, Real Estate) Jim you bring a point I missed. Local vs. National. Some local markets are doing better than the national average. And those that accept the national average as the gospel of their local market need to look at local data harder than the evening national news. Great point!! G
Royal Goodman @ GI Group, LLC (GI Group, LLC.) Royal, it is about keeping one's head up... but also about not losing one's head due to headlines and mob theory. You are very right... it will get better. That too is part of the normal cycles of free market economics. It is interesting how few people understand and remember this. Thanks for reminder for all of us!
I couldn't agree more with your post, Glenn! I posted an article earlier today about ATTITUDE... Seems to fit right in!
I try to focus on the positive aspects of the market by pointing out what a great time it is to buy. The media is already doing enough to scare the public with doom and gloom.
Spot on!!!
I love your comment:
But a rational understanding and explanation for clients about how money can be made in each phase of market cycles is a big part of being a trusted adviser that people will seek out for business deals.
Great post!
Another great blog by Glenn... several years ago at a time when the market here in Denver was pretty bad, I was told by a seller client to "Stop Whining and get to work!" Talk about embarrassing! This was someone I"d done a lot of business with, but since that transaction closed, I've never heard from her again. I was SO unprofessonal with all my "The market sucks" whining that I lost her business. HUGE learning experience.
Paul Ochtrup (William Ryan Homes) (William Ryan Homes of Wisconsin, Inc.) Paul, yes, attitude and your own blog post are right on!
Thomas Tolbert (Coldwell Banker Platinum Partners) Thomas, it is indeed a great time to buy. We just bought a house at it met our number one objective... make money on the buy. People are so easily directed by mass media.
KMG Mortgage Group Hi Kevin and/or Maryellen! From the mortgage side, you guys get to see the crazy stuff people think about money even more than the real estate agents. They need rational coaches like you guys to get throught the fear and onto the way to deal with money. Thanks for visiting!! G
Jennifer Allan, Author of Sell with Soul (Sell with Soul) Hey, hey, hey Jennifer. Wow what a great story... and lesson! It is great you share these things with everyone! Talk soon! G
I wouldn't say that whining is as much of a problem as creating false postives about the state of the economy might appear to be, especially when the statistics are in black and white. There's an abundance of phony enthusiasm in the wake of detestable, odiously confirmable data, and some agents refuse to appear as cheerleaders with pom poms for a publicly acknowledged faultering industry until they have the reliable information they need to support their levels of confidence.
Glenn - I agree "To whine makes one look uninformed, uneducated and unprofessional!" A great positive attitude goes a long way in any market and causes us to experience life differently. You make some great points - thank you.
David Saks - Real Estate Broker (The Real Estate Mart of Tennessee, Inc.) David, great point! People in denial work very hard to stay in denial and to convince others to join them. But for these folks, accepting an uncomfortable truth will require they make uncomfortable changes. Tough thing to do for many and in the mean time a disservice to their clients and their industry. Thanks ! G
Kathleen Daniels (San Jose ~ Silicon Valley Real Estate ) Kathleen, positive and accurate together are attributes of the successful! G
Glenn-thanks for writing this. It brought to mind someone who I heard complaining a couple of years ago when our local market was still booming. She was saying that it was no use farming for listings in certain communities because Agent XYZ had that market "all sewn up". That remark made me think about that agent differently. I knew that Agent XYZ was very active in those communities, but I also knew I had seen other real estate signs out there. Another agent could get listings in that area, it would just take a little extra work or a different approach. I like that you used the word "challenging" at the beginning of your post. Every market - fast or slow- presents its own unique challenges. Will we rise to meet the challenge?