Friday, August 15, 2008

Where are the challenges of the market coming from?

I’m disappointed at what I hear from experienced real estate and mortgage lending professionals in recent weeks. Let me change that. I’m disappointed in what I am NOT hearing from these same people. I’m not hearing the positive.

Those of us on the inside realize that there are more challenges than ever before in the real estate market. But we have the choice of responding rather than accepting. As a consumer, I tune to the electronic media and check for information online just like the next guy. It seems like all I hear, see, and read, is the negative. Where is the response?

New stories pop up every day about how many banks are now struggling because of problems with outstanding mortgage loans, foreclosures, and funding sources. It seems the perfect opportunity for established mortgage lenders to advertise and promote “All we do are local mortgages. We do not have the problems your local bank faces.” Instead, the media keeps story after story about the banks in crisis going day after day.

Same thing on the real estate side. I’ve been seeing realty boards and association monthly statistics report “June sales down 15%” or whatever it is. Why can’t they report that 5,740 homes sold in just the Dallas-Ft. Worth Metroplex for the month of June? Even if that amount is lower than previous years, realty firms need to point out that homes ARE selling in the area.

Instead, without specifically looking, I found several stories about problems with realty agents and crime. Here are a few from the past few days: (You can look if you want to, but this is to make my point.),0,5752132.story?track=rss,5143,700250103,00.html

Let me put this another way. The news is overflowing with reports about banks and sub-prime lenders in serious trouble over hundreds of millions of dollars. Realty firms are downsizing and closing, and professionals are finding legal trouble on a regular basis.

Yet, most of what I hear and see is about dealing with a challenged market. Don’t you wonder where the “challenge” really is?

This is the time for creative advertising and marketing. Mortgage brokers and realty agents can and should bury the hatchet and truly work together. With gas prices still outrageous, even working to find someone the “same” house 10 miles closer to work can be presented as monthly savings. Consumers could get the tax advantages of a move, and a new mortgage even for the same amount brought by a local move brings a realty agent commission and a mortgage where a refinance isn’t justifiable.

In the days to come, I’ll try and share specific stories of creative real estate and mortgage business. If you can contribute to the positive, please let me know. I’m happy to share!

No comments: