Real Estate News

It’s no secret that the average age of a Realtor is a bit higher than the average age of most employees in other business sectors. Worse yet, the average age of brokerage owners is even higher. No wonder that the real estate profession sees the world through older, typically Baby Boomer, eyes.

Because the Baby Boomers are 77 million strong, they tend to view the world as “boomer centric.” They have been told for 20 years that they are the most impactful generation yet. Many Baby Boomers tend to be oblivious to the 82 million person bulge, known as Generation Y, or the Echo Boomers, just now entering their prime consumption years. There are, indeed, more of them than us!

This is important because, as anyone with children between the ages of 12 and 32 knows, the Echo Boomers think and behave differently from any generation that preceded them. They communicate differently and their expectations for consumer relationships are different.

Witness the proliferation of on-line sales versus traditional retail sales patterns over the past five years. Smart retailers have observed and reacted to this by offering consumers choices. They offer an interactive on-line shopping experience as well as traditional bricks and mortar stores. Those of us crafting the real estate brokerage business models of the future must do the same. Our future depends on it.

Two questions come to mind regarding the public’s perception about our role. First, do they understand the entire scope of what we do and how we get paid? And second, if not, why not, and how do we educate them?

Let’s start at the beginning. There is no doubt that some consumers are confused about how Realtors work. Why wouldn’t they be? In the current service model, which has been in existence for over 100 years, buyers have been able to utilize Realtors’ services with virtually no conversation about compensation, since seller s traditionally pay the commission.

What other highly skilled professional service does the public get “for free?” In many cases, buyers have been afraid to ask and, for some reason, agents have been afraid to bring it up. Agents’ failure to discuss compensation with buyers has actually helped to create the perception among some consumers that real estate agents must be getting paid a salary by their brokerage firms!

While buyer agency and agency disclosure laws have now been with us for 17 years, many real estate agents still seem reluctant to broach the subject with buyers. We are very comfortable talking frankly with sellers about representation and compensation, but old habits apparently die hard when it comes to having the same conversation with buyers. This lack of clarity has created some undesirable consequences, typified by scenarios such as agents providing free taxi service for waffling buyers who look at hundreds of properties before they choose to buy.

Unclear expectations can lead to indecisive buyers and a fuzzy decision making process.

As professionals, we must do a far better job setting forth the parameters of the agent-client relationship right from the beginning. It is our responsibility to set clear expectations about service levels, communication frequency and format, time commitments, compensation and, yes, client loyalty. By doing so, everyone’s experience will be better.

Pulte Homes Inc. agreed to acquire Centex Corp. Wednesday in a stock-for-stock deal valued at $1.3 billion that will create the nation’s largest homebuilding company.
Pulte President and Chief Executive Officer Richard J. Dugas Jr. was optimistic that the combination “puts us in an excellent position to navigate through the current housing downturn.”

The combined company will use the Pulte name and will be based in Bloomfield Hills, Michigan, the current headquarters of Pulte. Upon completion of the transaction, Dugas will assume the positions of chairman, president and chief executive officer of Pulte Inc.

It has been said that there are only two kinds of real estate brokerages today; those that have proactively right sized their brick and mortar operations to reflect current economic conditions and thereby remained profitable and those that waited until after they filed Chapter 11 to downsize.

The “virtual office” concept has been utilized successfully in other business sectors for many years and is now being adopted by real estate brokerages. Technology supported by broker provided intranet services and mobile MLS service allows agents to operate effectively from anywhere.

Because real estate inventory by its nature is scattered about the marketplace, real estate agents have always spent much of their time away from their offices. But until recently, agents were tethered to the office when they needed to prepare and present documents and presentations or do significant market research. Affordable and efficient technology has eliminated that need for many.

Brick and mortar space still has a place in some company cultures, but the role of the office is changing. Conference rooms and communal meeting areas are being utilized differently and private offices and desks designated to specific agents are being occupied less. Shared common areas and private, but shared, meeting rooms appear to be trends in future office architecture.

Because this model better utilizes brokerage resources, support for agents and clients can be improved in other areas. Watch for things like web based transaction management platforms which are accessible to both agents and their clients to replace agent specific desk space. As brokerages evolve, agents will become much more efficient and their clients will be better served.

Most experts agree that the market is still going lower, however, we are far closer to the bottom than the top. No one can predict the exact time the market will bottom out and most experts also agree that for people that want to buy a home, there is no better time than now. We will not know that we have reached the bottom until prices have already begun to climb. In addition to today’s extremely low home prices there are many other reasons to buy now. They include very low interest rates, the first time buyer tax credit, which expires on December 2009, and an excellent selection of great homes available right now. One of our trusted advisors would be glad to discuss this market in more detail with you. If you would like us to put you in touch with one of them, please let me know.

REMINISCENT OF GRAND HOMES OF PACIFIC NW
841 Highwood
Bloomfield, MI 48304
$1,700,000

Reminiscent of the grand homes of the Pacific Northwest! Builder’s own home! Features include: 1st floor master, exceptional finished walkout w/theater/in law suite, wine closet. Screened sun porch. 6 car heated garage. Lots of wood, slate & glass. One of a kind. Must see!!
MLS# 29046565

Price: $1,700,000
Approx. SF: 4498
Bedrooms: 5
Full Bathrooms: 4
Half Bathrooms: 2

It has been said that there are only two kinds of real estate brokerages today; those that have proactively right sized their brick and mortar operations to reflect current economic conditions and thereby remained profitable and those that waited until after they filed Chapter 11 to downsize.

The “virtual office” concept has been utilized successfully in other business sectors for many years and is now being adopted by real estate brokerages. Technology supported by broker provided intranet services and mobile MLS service allows agents to operate effectively from anywhere.

Because real estate inventory by its nature is scattered about the marketplace, real estate agents have always spent much of their time away from their offices. But until recently, agents were tethered to the office when they needed to prepare and present documents and presentations or do significant market research. Affordable and efficient technology has eliminated that need for many.

Brick and mortar space still has a place in some company cultures, but the role of the office is changing. Conference rooms and communal meeting areas are being utilized differently and private offices and desks designated to specific agents are being occupied less. Shared common areas and private, but shared, meeting rooms appear to be trends in future office architecture.

Because this model better utilizes brokerage resources, support for agents and clients can be improved in other areas. Watch for things like web based transaction management platforms which are accessible to both agents and their clients to replace agent specific desk space. As brokerages evolve, agents will become much more efficient and their clients will be better served.

Homes successfully marketed
by Weir Manuel Realtors
in Birmingham/Bloomfield

291 Linden, Birmingham
Listed and sold in one day!
Sold: 3/4/2009
Listed at: $950,000
Listed by: Jennifer Zachary

987 Bennaville, Birmingham
Sold: 3/20/2009
Listed at: $519,000
Listed by: Tim Holden

673 Vinewood, Birmingham
Sold: 3/31/2009
Listed at: $500,000
Listed by: Marty Barrett

120 Guilford, Bloomfield Hills
Sold: 3/12/2009
Listed at: 350,000
Listed by: Kathy Manoogian

323 Wimbleton, Birmingham
Sold: 3/24/2009
Listed at: $280,000
Listed by: Robert Taylor