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Realtors in other Areas

by Team for YOUr Dreams

By Tim Burrell -  In most areas of the United States, 10% of the Realtors sell about 90% of the houses.  It is a variation of the 20% do 80% rule that applies in many other industries.

I stay in touch with Realtors all over the United States, with several networks.  While Real Estate is a local business, and you need to know the local market, you have to watch what is happening in other parts of the United States.  Why? If they cannot sell their house in Maryland, they cannot buy a house in the Triangle.

For example, you might enjoy Brett Ellis, an old friend in South West Florida.  You can meet him at http://www.topagnet.com .  He tells me that the market their has declined in the past, bottomed out, and it is starting to look better.  To see the information directly, go to http://www.topagent.com/housestat.htm . 

So, if you are thinking of moving to any other area in the United States, you can try to find a Realtor to help you by yourself.  The statistics say you have a one in ten chance of getting a top agent.  Or, you can send me an email at tim@TimBurrell.com and I can find a good one for you.

 

Sixty Minutes Version of Real Estate

by Team for YOUr Dreams
By Tim Burrell - Sixty Minutes did a report on Real Estate last Sunday, which caused me to lose my respect for Sixty Mintues.  Other Realtors are mad about it, while I found it hilarious, like a bad Saturday Night Live parody.  Sixty Minutes was complaining that the National Association of Realtors was stifling the market, forcing everyone to pay 6% commissions, and not allowing other forms of Real Estate Brokerage to use the Internet to their advantage.  I found every one of those claims ridiculous, as they went into a virtual advertisement for Redfin, a firm that uses the Internet only to sell houses, and does it by using the homes listed by hard working, full service Realtors.   In other words, their own show contradicted their claims.
Sixty Minutes had a young lady, who claimed she had once been a successful full service Realtor, state that she took a $12,000 commission for one sale where she worked for only 4 hours.  I particularly liked the fact that she talked like the Valley Girl on the recording by Moon Unit Zapa.  I have been a Realtor for 27 years and have never had a sale that took only 4 hours of  time.  For example, the time spent the day before closing and at the closing is normally more than four hours, and that is the quick finish of weeks of work.  So if the full service she delivered took only four hours, I can see why she had to get a low paying salary job working for Redfin, as no one would pay for her level of service.
Redfin does not show homes to buyers.  They let the buyers look on the Internet, something any buyer can do on their own.  Then, when they find one they like, Redfin gets the full service Realtor who has listed it to show it to their client.  So they use the full service Realtor's time to do their job.  Then, Redfin rebates 2/3 of the commission to their buyer.   Can you imagine buying a house where your Realtor has not even seen it?  What kind of advice could they give you?  For that level of service, they should give back more than 2/3 of the commission.
The presentation by 60 mintues was so full of misinformation it made everything they said unbelieveable.  They claimed that the National Association of Realtors is the governing body for real estate brokers.  It is just a trade association, each state has governing bodies for its real estate agents.   This misinformation came after they spent days with the National Association of Realtors, yet failed to mention any information they got from that source.  If you would like to see the full response by the National Association of Realtors go to http://www.realtor.org/about_nar/NARRespondsToSixtyMinutes.html .
If you saw this program, and you have a sense of humor, you will love this video from UTube, by some young people who knew what a parody Sixty Minutes was doing.  Take a look at http://www.youtube.com:80/watch?v=ZZzbrftTF0g and let me know what you think.
Real Estate sales is more competitive than any other business I know, with more different business models and pricing options than any other service industry.  For example, there are about 11,000 active listings in the Triangle Multiple Listing Service, and there are about 11,000 Realtors in that same area.  There are full service companies, part time companies, discount companies, "put you on the MLS only companies", "you chose the services you want from a menu" companies, and a huge range of payment plans.  You can imagine the competition. I am happy that so many clients value my service that I can be one of the top full service agents in such a competitive market.
It is too bad that there may be some people out there so poorly educated in Real Estate that they might believe Sixty Minutes story.  The story did one great thing for me, I spend my time on Sunday evenings reading instead of watching Sixty Minutes, and I thank them for that.

Submitted by Tim Burrell :

Clients always ask, is it a Buyer's market or a Seller's market?  In the Triangle, that depends on the price.  A Realtor's rule of thumb for the line between a Buyer's market and a Seller's market is when you have a six months supply of homes.  In other words, if homes keep selling at the same rate, if it will take more than 6 months to sell all of the propeties currently on the market, then it is a Buyer's market.

If you have a home priced over $400,000 in the Wake Forest area, there is a 14 month supply of competition, creating a strong Buyers market.  If you have a home priced from $150,000 to $250,000 in the Cary/Apex area, there is a two months supply for a strong Seller's market.

But, what is it like overall?  Balanced between a Buyer's and Seller's market.  For the four county area, there are 11,521 active listings, an increase of 10.7% from last year.  Most of the increase is in new homes for sale, with 23% increase, while resale homes have increased by only 4.4%.  At the rate all the homes are selling, there is a 6 months supply of homes.  Last year, there was a 5 months supply.  So, the market on the average has shifted, but you do not buy the average, you buy only one home.

So, the price range determines whether you are operating in a Buyer's market or a Seller's market.

Displaying blog entries 191-193 of 193

Contact Information

Photo of Team For Your Dreams, Inc. Real Estate
Team For Your Dreams, Inc.
REMAX United
7721 Six Forks Road, Suite 110, Raleigh, NC 27615
Raleigh NC 27615
919-846-3272
919-812-5111
Fax: 310-347-4041