Excellent Realtors Stand Up And Give Me Your Opinions!

It's that time of the year for "The Award of Excellence." Everyone is busy filling out applications, and the award police are auditing forms. Soon we will know not only who is excellent, but just how excellent they are as distinguished by the precious metal with which they will be honored.

For many years now I feel like the guy at the football stadium who stands up with hands held high to start the wave and no one joins in. So, I stand up once again to ask why as members of the Sumner County Association do we continue with this annual event. Let me give a few reasons why I think " The Award of Excellence" should go!

The Association of Realtors has a goal to promote the memberships as respected professionals, somehow elevating us in the public eye above used car salespeople. Don't take offence if you are in the used car business. One of the most professional sales people I have ever know was the late Austin Chambers who sold me 3 cars while representing the best in customer service, honesty, and professionalism. I am only speaking of public perception.

But, what other professionals do you know that give self congratulatory awards based on dollar amount of production? Clearly you do not judge the excellence of your doctor by the income his practice takes in, or the excellence of your attorney by the numbers of hours he or she bills. Measuring excellence by the volume of sales sends the wrong message to the public.

At least we no longer call the award "Million Dollar Sales Club." The public thought we made millions and had the perception that we were glorified chauffeurs who made too much money for the work we do.

Also using dollar amounts for determination of excellence has little to do with the meaning of the word. Is the realtor who sells nine $100,000 homes to first time buyers less excellent than the realtor who might sell one million dollar home?

More progressive associations have dropped these awards, however we not only promote them, but spend countless hours documenting then auditing applications. I think the associations could find better ways to use their time and resources. Doesn't the term Realtor imply honesty? Just ask the realtor which award they observe and give it to them.

So, another year passes, and since I once again did not fill out the application, I will not be among the excellent. That's OK since I think excellence should be judged by the clients we serve.

Well enough of my ranting. Next week I will blog about puppies and kittens, but until then is there anyone who would like to stand up with hands held high and start a wave.

"Damn I Could Have Bought That Property For...."

OK everyone over the age of 30 can complete this sentence and probably have an interesting story to tell at the cocktail party or their church social.

Let me quickly tell you my story: At the age of 22 I decided it would make more sense to buy than rent. I found a little house on 4 acres of land in south Nashville for $33,000 that I thought would be a good first home and called my father for advice. He came from Pulaski to Nashville looked at the property and said, "Son look at these crocked floors and swagging roof. I would never buy this house if I were you." I DIDN'T!

Fast forward 14 years when I just started a real estate career. I drove by the same house which had a commercial real estate for sale sign on it. Out of curiousity I went to a pay phone(remember them) and called the agent. The price was $475,000. That would be about a million and half in todays market.

So, grasshoppers, what lessons can we learn from this? Lesson one: If you are a first time buyer seeking well meaning advice from your parents, just remember they may not have bought a home in twenty years, and during that time the real estate landscape completely changed.

Lesson two: Opportunity is knocking right now. You can buy property for investment or to live in at a 15% discount over 2006 value at a time when inventories are excellent, and interest rates are in the 5% range and take advantage of the Federal Tax credit if you qualify.

I would also like to suggest that you use me as your Realtor, and ten years from now you won't be saying, "Damn I Could Have Bought That Property For...."

"It Really Makes Sense If You Don't Think About It"

This is my new favorite quote from John Oliver. We are so bombarded with facts and information but few people look behind the facts and buzz words for the true picture. Weather you are talking about Sarah Palin "Death Squads" or December Real Estate Statistics there are the facts and there is the truth behind the buzz words and facts.

Headlines: Real Estate Sales were up 27% in December. The fact is true however the 27% increase was a comparison with Dec. 2008 figures which was a period when everyone thought the entire economy was going into the toilet and sales were at all time lows. Maybe all time lows is an overstatement. As a matter of fact I just made that part up, but doesn't it look authoritative in print.

Also the medium price per sale fell from $178,500 in Dec. of 2008 to $166,000 in 2009 in Sumner County. So the truth behind the fact is yes we sold more homes last month than a year ago but they were for less expensive properties. Thank God for the first time buyers Tax Credit (but remember statistics are not proof only associations.) So taking a philosophical approach instead of a scientific approach, Real Estate business must be getting better because I can't imagine it getting any worse.

Next week I will do a few comparisons from the heady years of 2005, 06, and 07. Until then seek the truth.

2010 New Year Same Old Problems

Well it’s a new year and a new set of resolutions that are the same as my 2009 resolutions. Loose 10 pounds, sell a half million dollars worth of real estate a month and show all the people important in my life that I love them. It’s ditto on the resolutions and ditto on the direction of real estate from 09 to 2010.

As we start the new year interest rates are fabulous, there has never been a better time to buy a home. That is especially true if you qualify for the $8,000 tax credit.

On the other hand several major problems still exist and my persist throughout the new year.

The first problem is consumer confidence. We are herding animals that run in packs, sometimes right off a cliff. There is a lot of fear and uncertainties and people are holding off on large purchases.

Second problem is over supply making it difficult to sell a property in order to buy another one. From 2000 to 2006 lots of people from Florida and California were moving to Tennessee. When their markets crashed, the greater Nashville market was affected. Also move up local buyers wanting to take advantage of a great buy can’t sell their current home quick enough to make it happen.

The third problem is banking and foreclosures. Foreclosures have hurt everyone’s values and banks have reacted by making lending guidelines much more stringent.

Well before you jump out the window or slit your wrist, take heart. 2010 may be challenging, however properties will be sold, inventories will be reduced,consumer confidence will increase. And the best news is anyone who owns a home they hold for a reasonable period of time always has a great investment.

And just remember your home is an investment that keeps the rain off your head and is the store house of your best family memories.

Have a great 2010!