Things Are Looking Up (The Market Report)

There’s just no other way to say it, the market is looking up! Various news reports over the past months have pointed to this eventuality, but it’s nice to finally see some supporting stats.

RMLS released the June 2009 Market Action report and there are some extremely positive points to be noted:

• Same month pending sales were up for the first time since Dec 2006 (June 2009 vs June 2008 – pending sales up 8.4%)

• Inventory is at it’s lowest point since Aug 2007 – 8.2 months (great news!)

• Closed sales June vs May are up 24.5% (wow!)

I’ve been arguing for quite some time that the market had found equilibrium and it was just a matter of time before we saw some mild improvement. Inventory has been one of my major indicators, saying that once we saw inventory in the 8 month range, we’d see a marked improvement in the overall market. It certainly looks like that’s coming to fruition.

Of course, not everything is so rosy. The 12-month sales price is down nearly 10%. However, when looked at through the prism of the national real estate market, a 10% decline is very acceptable.

I expect the market to continue to improve through the rest of summer and early autumn. It will be interesting to see if the momentum will hold through late autumn and winter when the weather gets cold and gray. In the meantime, though, the $8000 tax credit available for first time buyers has certainly helped prop up sales in the $200,000 to $350,000 market. Close-in properties listed below $300,000 are still moving relatively quickly.

However, the tax credit is nearing it’s expiration date. Close of sale must occur before the end of November in order for buyers to tax advantage of the tax credit. With longer “shopping” times and a higher rate of sale fails, it’s imperative that first time buyers eager to realize the $8000 tax credit start the search and home buying process now.

Heard It Through The Grapevine (or the power of social networking)

Quick question, do you Twitter?  Are you active on Facebook?  If so, did you hear about Dave Chappelle’s impromptu performance at Pioneer Square last night?

If you didn’t, you’re one of the few.  Apparently Chappelle had a prearranged gig at a local venue.  Well word got out that he was going to do an after-hours, non-advertised, session at Pioneer Square.  He expected a couple hundred loyal fans to show. 

But the gifted comedian didn’t take into account the new found power of social networking.  So through word of mouth, both real world and virtual, thousands of rabid fans descended upon Pioneer Square to catch their favorite comic in action. 

No official count has been released or is expected, but anecdotal evidence reports that the place was straight packed! 

Chappelle, at one point, announced how proud he was of Portalnd when, “People can stand this close together and not be angry.”  So kudos to you, Portland

Now what do you think of Twitter?  Thinking about jumping on board now?  If you’d like to come along for the ride, you can follow me at twitter.com/jesse_knight…or you can just click the link to your right.

Three Types of Agents or Rethinking Exclusive Buyer Service Contracts

Sorry for the verbose title. I, admittedly, had a little trouble self-editing that one.

I received a Dear Jesse email today from a buyer client who was letting me go. Actually, he had recently started working with a new agent, his third. I was his second. He regretted to inform me that even though I had been, “exceptionally helpful and selfless” he felt that our schedules were no longer in alignment. Now this was neither a new age yoga reference nor an admission that our Zodiac signs did not mesh (note: I am a very happy Pisces!). No, he simply felt that my availability to show houses did not match with his availability to see houses. Fair enough. Except that I had been extremely flexible with time and had already shown him houses on the previous Saturday, Sunday and Tuesday evening. So what was the real problem? Turns out that he was upset that I wasn’t able to change my schedule on extremely short notice for him. He had sent me a text message just after 1 AM Friday night asking if I could please show him some properties that Saturday. It’s true. I know.

See what happened is that I was already booked up with other clients. Sue me for being successful. I stick to one simple rule; first come, first served. In this case, I was already booked up.

Let me take this opportunity to explain my view that there are three types of agents. First, agents who are extremely available and willing to meet buyers at any time and any place. Of course, they’re so flexible since they don’t have any other clients. Second, the extremely “successful”, so-called “top”, agent that says they’ll match your schedule, work nights and weekends, etc. Of course, after your initial meeting you’ll never actually see them again, as you’re pawned off to their assistants or buyers’ agent.

Then there’s the third type of agent. Agents like myself who are full time real estate professionals. Agents who make a nice living and are successful and, therefore, relatively busy. These are the best agents. Agents who know the business backwards and forwards, but still care enough to give the client their undivided attention. You see, I will never pawn my clients off to my assistants. Call me old fashioned, but I just don’t believe in it. I believe that if you hire me, it’s because you actually want to work with me…not my buyers’ agent. Unfortunately, there is a price to doing business this way. From time to time an agent like myself will be unable to drop everything and meet a buyer at his preferred time. While we do the best we can to be flexible, between having other clients, other business obligations and, yes, an actual life of our own, sometimes we can’t meet you on Friday night with twelve minutes’ notice. We try. We really try.

This leads me to Exclusive Buyer Service Contracts. Unlike when working with sellers, I do not require my buyers to sign a contract with me. Obviously there’s an inherent risk in not having a contract, but I’m a big believer in reciprocal respect and loyalty. I believe that if I give my best, then there is no need for an exclusive contract. If I treat you with respect and loyalty, I expect to receive the same. Listings are different. Listings require a contract to set terms, etc. But with buyers, there’s really no such need. However, I do see the logic in why many other agents do require these Exclusive Buyer Service Contracts. It definitely hurts to have spent so much time and haven given so much of myself simply to have this buyer walk away because I couldn’t meet him one day. However, it almost never happens to me. Again, I believe that if I work as hard as I can and treat people with extreme respect, I’ll receive respect and loyalty in return. Usually it does work that way

By the way, the buyer did actually offer to continue working with me, even though he’d already started working with a new agent, if I promised to be available whenever he was. I replied, “While I appreciate the offer and am flattered that you would like to continue working with me, I have to decline as I believe it to be unethical to solicit a client who is already working with another agent. So, in the interest of adhering to my personal and professional ethics, I cannot in good faith ask you to leave the agent you’re currently working with.” See, you can’t put a price on loyalty and respect.