PAY NO ATTENTION TO DWEEBS…..

Media hype sells to some of the folks some of the time, but propaganda does not rule the day with all of the folks all of the time. I recently attended a huge company seminar at Gillette Stadium in Foxboro where the giants in our real estate industry flew in to address us New England Realtors and Broker Owners on market perspective. They came all this way in order to dispel some of the annoying myths and rumors that may sell papers, but frighten consumers.
One of the executives is in charge of all company franchises in Canada; another is in charge of our franchises in 69 other countries all over the world. These two men who have lived through several “down markets” over a thirty year period offer an amazing world perspective that is most instructive to those of us in the business. In my opinion, it is our business to share it with you and it comes from the top of the real estate world.
When the executives arrived at Logan Airport, the morning headlines in a major newspaper fresh off the press read in large bold letters “Housing BAILOUT”. Another headline read “Real Estate-Economic Disaster”. In tiny print on page 27, however, they found evidence of what they knew… “Housing market up 7.4%”.
In Europe, the rules and regulations as well as the practice of real estate is vastly different from our real estate industry in the USA and Canada. We know, for example, that when we put our photos on our yard signs and marketing, that the consumer will take notice more so than when we do not. In Europe and other countries outside North America, the men in the real estate industry tell women NOT to put their photos on their signs for “safety” reasons. It is no coincidence that the men as a rule have more real estate business than the women in these other countries.
In the USA and Canada, we are licensed as agents, Realtors and Brokers. In Europe and other countries, there is no licensing requirement. In the USA and Canada, we do more financing of property. In Europe and other countries, “cash is king”. In the USA and Canada, we require that clear title be passed from the seller to the buyer. In Europe and other countries, the title can be “foggy” as a result of the wartime deaths and displacement of 45 million deeds. One can never be sure that his title is secure. In the USA and Canada we practice “exclusive listings” whereby the seller contracts with one Realtor to market the home for sale to everyone. In Europe and other countries, they practice “open listings” that result in a free for all with no true representation of the seller.
Europe and other countries are now experiencing far more difficulties than we are today in the USA and Canada in large part due to a system that does not lend itself to clarity. The economic crisis is worldwide. It will not be resolved until the housing crisis is resolved. The housing crisis will be resolved only when the inventory on the market is reduced. The market inventory is reduced by selling the homes. The homes ARE selling despite what these annoying little dweebs are “reporting”.
What would hamper the recovery would be the “dumping” of more bank owned properties (REO’s) onto the market thereby increasing the inventory and diminishing the value of all properties even further.
As a result of lawsuits against a major lending institution, a major bank announced a strategy that would keep millions of families in their homes by lowering the interest rates, reducing principle, and forgiving penalties. If this strategy is adopted by other lenders, the housing crisis will not be exacerbated by the millions of foreclosures that would follow were these measures not employed.
If you are threatened by foreclosure, you may find yourselves in a better place if you qualify for the loan modification. If you are a homeowner who struggles to pay down your debt and you do not qualify for such a program, you may be understandably resentful and frustrated. Know, however, that if your neighbor’s home forecloses, it will directly impact the value of your home and the housing crisis will proliferate if we can not keep these foreclosures to a minimum.
Presently, because we must at all costs avoid growing inventories that slash and burn our home values and equity, the whole world has turned to the Realtors and implores us to “SELL THESE PROPERTIES.” As a Realtor, I turn to you and say “WHEN WE PRICE THEM CORRECTLY, THEY ALWAYS DO.” Just don’t look for it on the front page of most media.