Real Estate Profitability

I'm really optimistic about 2007. I think that a lot of the buyers that were holding back around the holidays are starting to re-enter the market. Mortgage applications are up in my area and prices seem to have stabilized. Of course it is more important now to price a home right the first time. The homes that are priced right are percieved as the cream of the crop and outsell their competition. I work with my sellers to achieve the highest realistic price for their home, and I impress upon them that it's the market that sets their price, not their need or greed.
Oh, and another thing. I used to counter low ball offers in a sarcastic tone. If they came in at $20K below the asking price, I would counter back at $20K over the asking price, and let the selling agent know that my sellers were deeply insulted. Since our market has cooled since 2005, I have a different tone. I look at any offer and think, "well,here's a starting point, let's put this together". That strategy has paid off for me. Sometimes you just have to roll with the punches.

The Best of Times

These are the times that try men's souls. Baloney!!!!!!
Welcome one and all to the reality of Real Estate. As a Realtor in a consistently hot market, let me tell you that this cool down that we are experiencing is a welcome one. For the last 3 years, my sales territory has experienced unprecedented growth. This has been great from a volume standpoint. From a customer-care standpoint it has been less than glorious.
I built my business on a client based business model. I have many years in various service industries where the customer is always right and that's hard to ignore. Many businesses have poor products, but if the perception of quality is instilled in the consumer, they will succeed. This is especially dificult in hot Real Estate markets. Try to explain to long time residents of a community that rising housing prices have driven them out of the market. "If I had only bought five years ago" is the cry of the first time buyer.
So what is the secret? How can everyone benefit from a hot market that is slowing?
Here it is.........Are you ready?............Do you have a pen and paper?..........
Don't wait for the bubble to burst!! There is no such thing!! Don't wait to pay off your fancy car!! Trade it in for something practical!! Clean up your credit and get pre-qualified!!
There I'm done yelling at you. Now that I have your attention, here's some sound advise. Real Estate will always blow hot and cold. Be patient. Just like the stock market there are always ups and downs. Buy now when it's cooler and when it heats up again, sell. You will still make money even if we don't see double digit appreciation every year. It's still cheaper than renting and it's an investment in your retirement. (but that's another story)
What makes this such a great time to invest in a home or investment property is that sellers have to get real. They can't price their property as agressively, and have to look reality in the face. Gone are the days of the multiple offer situation. We can actually fit the home to the buyers' needs and avoid pressurring our clients into a "buy it now or lose it" scenario. Let's all breathe a sigh of relief and get back to service with a smile. It's a wonderful time to be in this business.