If you have been listening to NPR as super Tuesday approaches, you have heard mention of housing needing to be discussed by the candidates. Why you might ask?
Well as the closing of 2019, senior economist George Ratiu says:
Real estate fundamentals remain entangled in a lattice of continuing demand, tight supply & disciplined financial underwriting. Accordingly, 2020 will prove to be the most challenging year for buyers, not because of what they can afford, but rather what they can find."
In 2019 numerous class action lawsuits were filed again NAR (National Association of Realtors), who control the MLS.
The lawsuit alleges NAR & the named real estate brokers & franchisors have violated the Sherman Antitrust Act by “agreeing, combining and conspiring to impose, implement and enforce anticompetitive restraints that cause home sellers to pay inflated commissions on the sale of their homes.”
This lawsuit effectively claims the MLS is pricing fixing commission rates & weakening the bargaining power of sellers. The seller & the the agents are the ones feeling the brunt of this current system. The median gross income of realtors has been falling, down from $55,000 in 2012 to $39,800 in 2017, according to the national association.
Internet-age companies that aren’t part of the MLS, are small in numbers, but some like Opendoor & REX are slowly chipping away at the status quo from a variety of angles, albeit for the high-end market only.
The residential real estate industry might not be a tear-down, but it’s definitely overdue for a complete renovation.
Watching all the outcry makes me appreciate the difference between a realtor and real estate agent, and being the later.
Hello from Florence & Venice, Italy! I am here with 15 students learning about business & culture. And eating.
In our wanders, I am also perplexed & curious about how the housing market works here, Venice specifically.
TOURISM is the name of the game here, with only 53,000 residents living here & most choosing to AirBNB their home given the cost of housing here.
In our walk about around the city, I found three different real estate agents. This island was settled (reported at least) in the 6th century, with the 'NEW' homes beings after 1794 (when Napoleon invaded). So 'NEW' is still 250+ years old.
Along with AGE of home, Venice is SINKING. That is right, sinking. The city was built on lagoon & large wooden pile-ons. That wood is starting to decompose (shocker right, its only 1000 years old) along with changing weather pattern, the AQUA ALTA is occurring more frequently. They have special metal barriers they place in front of their doors and all residents own waders (see pic below).
Totally sold you right? YOU WANT TO BUY IN VENICE RIGHT?
Now here is the kicker, its extremely costly. The AVERAGE PRICE for a 2 bedroom, 1 bathroom, living room & kitchen is 550,000 euros (8,000-10,000 euros per square meter). Sorry, no boat 'garage' included.
I don't know the cost to maintain a 250+ year old home, but it seems like it would be high due to the moisture & flooding issues. I have yet to find an insurance agent here.....I shudder to think how much that costs, or if its even available. Which then makes me wonder how you get a mortgage loan on a home here.
Coupled with this fun filled fact, the average annual wage is $36,658 per person. Compared to the US, with an annual income of $60,558 per person. WOW right. How does that work?
One final note, street art. LOVE street art. Come to Italy for street art. And food. And wine. Not the real estate.
Sorry my post is late this week peeps..busy in Venice!
Have a great week!
Are YOU brand loyal?
What are you brand loyal to? Why?
What keeps you so loyal?
People who are brand loyal tend to make multiple purchases, even at the same point of sale.
Do you always get the same type of toothpaste? Jeans? Trucks?
How many times do you purchase toothpaste in your lifetime?
A LOT right?
The same CANNOT be said about Real Estate. On average, each of us will buy 1.71 houses in our lifetime. Given that a house costs A LOT more than toothpaste, this not surprising.
So, is there value in having customer loyalty in Real Estate if the average person makes less than 2 purchases during their lifetime?
My opinion in that there is. Both both agent & client.
Customer loyalty is the result of consistently positive EMOTIONAL experience, & perceived value of an experience, which includes services. In real estate, its all about the experience, a great deal of it, an education on how to buy or sell a house.
Average age of 1st time home buyer: 32
Median number of houses sold per agent in 2017 was 11 houses/yr, with this number being lower in the state of Iowa. That equates to a PERSONALIZED, one-on-one experience for the client for weeks or sometimes months. You get to know your agent, & them you. That BOND is where the value of the transaction takes place.
Research says that customer loyalty is changing, partly due to a crowded marketplace. Key findings: Make your customer better and Personalization is paramount.
Buyers who would use their agent again
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You go & share your excitement & get the look of WTF?
Then you find yourself questioning your judgement, questioning your point of view.
Take this picture for example. Its a 'patch' on a floor discovered when pulling up carpet. Part of me wants to know what is under the patch, but the other part of me is thinking, its been there for 70+ years, its working, leave it alone. It has so much character. Its amazing. Its beautiful. Then I immediately start thinking, how can the floors be refinished to showcase this long hidden gem?
So how do you get past the WTF moment?
That can be frustrating or eye opening. Like it or not, that can & does happen in real estate.
You go to show a property, you are excited to share with someone else. Sometimes the client is excited too, sometimes not. So, how do you align your perspective of real estate beauty with that of the client? Well, that is when understanding the client is KEY. Taking the time to get to know each other is part of the process. Maybe that means meeting up in a coffee shop and chatting (or a pub if coffee is not your thing), texting pinterest ideas you love to your realtor, or becoming friends on facebook or instagram.
This means the real estate agent also has to open up & share with YOU (the client). Comfort & understanding is mutual for the agency agreement to be most productive.
So don't think your agent is being nosy, they are just trying to understand your perspective of beauty.
Hi, I am Summer, real estate agent in NE Iowa. This blog is about life, of which Real Estate is a part of. Happy reading!