Thread: Real Estate Crisis?

Originally Posted by TRD

Realtors What Is The Biggest Problem You Have With Your Real Estate Business In This Real Estate Meltdown?


Thanks,
TRD

The change from an easy credit market to that of a tight credit market demanding buyers to come to the table with a downpayment. This makes things difficult because consumers have been in the habit of spending every dime they make. So, now that downpayments are required they find themselves unable to buy a home. This then prevents sellers from selling and using their equity to buy a larger home. Concluding in a lack of sales across the board.

The biggest problem is people's fear. Many buyers fear they will lose money if they get into the market right now. Many sellers fear they won't be able to sell in a slow market. This fear is overhyped by the media. Yes, the real estate market is different from a few years ago. But still there are a lot of activities. The media tend to generalize one market's condition to the nationwide market. From our experience, there are many markets that are doing okay and some markets are actually growing. Also, the price drops are not all the same for different price ranges.

And TV programs are throwing oil on fire in regard of this fear. That doesn't help for sure...
Majority of people just believe what's said and wait...

Are there any other issues that is a concern?

Inadequately trained & inexperienced agents is the biggest issue for me. It results from the relatively low/fast/cheap barrier of entry into the real estate profession in the first place. Pay a relatively small fee, take a 2 week class, pass a test - and BAM! You are now a real estate "professional".


Its like 16 year olds getting their driver's license, and then thinking they are ready for the Indy 500.


And then you end up having to spend hours doing THEIR job, as well as yours because they simply don't know better.

Hi Malok thanks for the feedback, what are some of the inadquate issues you see each day?

Cheers,
Trd

Originally Posted by TRD

Hi Malok thanks for the feedback, what are some of the inadquate issues you see each day?

Cheers,
Trd

Pretty much everything to be honest. From an inability to correctly fill out the paperwork (just inexcusable IMO), to a lack of understanding on protocols (working multiple offers, etc).

I recently had 1 deal where the agent would only work the offers UNTIL RESOLUTION (i.e. accepted) in the order that they were received. The agent's clients ending up accepting an offer that was $10,000 less than what my client was offering - but they never saw our offer.

Originally Posted by Malok

Pretty much everything to be honest. From an inability to correctly fill out the paperwork (just inexcusable IMO), to a lack of understanding on protocols (working multiple offers, etc).

I recently had 1 deal where the agent would only work the offers UNTIL RESOLUTION (i.e. accepted) in the order that they were received. The agent's clients ending up accepting an offer that was $10,000 less than what my client was offering - but they never saw our offer.

Wow, that to me is not right and you do make a very good point. So would you say that the industry in a whole needs to do a better job on training the rookies coming in?

Originally Posted by TRD

Wow, that to me is not right and you do make a very good point. So would you say that the industry in a whole needs to do a better job on training the rookies coming in?

Correct. The barrier of entry is too low (all you have to do is pay a fee, take a 2 week class, & pass a test but it does NOT make that person a real estate professional IMO).

And a mentoring program of some sort would be hugely beneficial. Even persons learning to drive a car get a "permit" where they have to be with a licensed driver for a period of time (6 months, or whatever).