Real Estate News

Ten years ago, in 1998, Dr. Spencer Johnson wrote the book entitled, “Who Moved My Cheese?” It was a cute little story about Hem and Haw and various other rodents who reacted completely differently when the traditional sources and locations of their favorite food, namely cheese, were changed. This best seller raised our awareness about the real world paradigm shift created by information, technology and the internet. It also sought to teach us how to more effectively deal with change.

“Change” became the buzzword for the new millennium. As Realtors, we had to deal with new web based MLS systems, web based lead generation, online marketing and for the first time ever, and online competition. The expectations of consumers changed as did their buying patterns, as real estate listing information became ubiquitous.

Realtors reacted by creating websites, using Blackberries, experimenting with online advertising and creating CRM and online lead follow-up systems. Just about the time when we think we have put systems in place to effectively deal with the changing demand of consumers, the cheese is moving again!

There is now a new market paradigm, namely declining market values. Never during the careers of most current practitioners has anyone seen sustained declines in housing values. This phenomenon has caused some to go hungry, because they can no longer find their cheese!

Historical pricing practices developed during inflationary markets do not work today. The business habits developed by order takers during past sellers markets do not work today, either. Nor do low customer service levels and weak advocacy skills.

Getting your share of the cheese today requires a new value proposition. Technology proficiency is now a given. True real estate skill and knowledge, however, is not. The ability to effectively advise your clients and negotiate on their behalf are skills that will get you to the cheese.

Regardless of whether you were pleased or not with the outcome of last week’s national and local elections, the good news is that they are over.

History has shown us that purchases of big ticket items, such as autos and houses, always suffer in the midst of uncertain times. While there is certainly enough continuing uncertainty on Wall Street to be of concern, the significant uncertainty of who will hold the highest office in our nation has been eliminated.

Pleased or not with President-elect Obama’s agenda, his deft leadership skills cannot be denied. One can hope that, despite his anti-business taxation policies, his ability to bring the country together may create a greater sense of well being among the public (i.e., consumers). That would be good for business.

The post election period will also afford an opportunity for the lame duck Congress to get back to work on the additional economic stimulus proposals which are currently under consideration. These include significant enhancements to the current home-buyer tax credit program and revised mortgage lending guidelines.

Obama’s election may also very likely create the opportunity for changes in leadership at the highest levels in our State government. That can only be a good thing for Michigan and our local economy.