In every corner of Central Florida, signs of the worsening real estate crisis are looming large: dozens of for-sale signs in neighborhoods, overgrown and abandoned foreclosures, short sales, auctions and plummeting prices.
There is no doubt that homeowners (such as this one, who has one mortgage too many and has yet to throw the current house into this scary market because the timing just hasn’t seemed right) are feeling the pinch. It can be downright scary.
But what about the realtors? With unprecedented inventory and the slowest movement seen in years, how are they earning a living and feeding their children?
I’ve been talking with a couple of realtors and have chosen one (for whenever I decide to put my house on the market). The first thing she told me when I told her I was debating between her and another realtor last fall was that her commission was negotiable and that she’d pay for a staging company to consult.
That helps me potentially but what does it mean for her? And what does it mean for the marketing efforts and additional work she is willing to put in to sell the house?
From the New York Times comes this article, “That 6% is getting harder to earn,” by Hope Reeves.
You can read the article here: http://www.nytimes.com/2008/03/30/realestate/30cov.html?ref=realestate
Filed under: NYT, random thoughts
[...] Vickie McGovern wrote an interesting post today onHere’s a quick excerptAnd what does it mean for the marketing efforts and additional work she is willing to put in to sell the house? From the New York Times comes this article, “That 6% is getting harder to earn,” by Hope Reeves. … [...]
Good point Geral! I am in West Toronto realtor team and situation in Canada is “so far, so good”, but I read lot of US real estates blogs and often ask, how are US agents getting on with their living. But on the other hand, this period is good to “clean” the market – of bad real estates, but also of bad real estate agents. I believe the chance to make profit is everywhere, you just have to be on the right place in the right time. Good agent sees abandoned foreclosures as a oportunity, not obstacle. But you have to know what are you doing and what is your goal.
Hi West Toronto: I agree with you about driving the not-so-competent realtors into some other profession. I’ve had my share of the bad ones too (seller’s agents when I was purchasing).
The market correction is also necessary because prices had grown so artificially and so fast in Florida.
So, it’s probably a situation we need to go through — just unfortunate for those with one mortgage too many. Thanks for writing.
Realtor friend of mine was just laid off as his office paired down about 2/3 of their staff when they didn’t get a large facilities management position they were interviewing for and lost several as building managers were looking to do more management in house to save money in this very tight and expensive market. Things are bad. And he was a good realtor. Doesn’t necessarily have anything to do with their talents if the buyers just aren’t in the area.
Hi Pamela: You have a good point. In Central Florida very good people in all sorts of fields are being laid off because the economy is contractly so tightly.
It has nothing to do with their skills, attitude, experience, education or expertise. It’s all about the bottom line.
The state budget is forcing the layoffs of teachers and municipal employees. Banks are shedding employees like fleas. Real estate, construction and allied fields are in the same boat. The insurance crisis is wreaking havoc for health care reimbursement which impacts the hospitals and doctors. Malpractice legislation has sent doctors fleeing. We almost lost a Level One trauma center because the fed-up doctors were recruited to another state.
Our major economic driver — hospitality (the theme parks, restaurants, hotels, transportation, etc., mostly hourly jobs that don’t provide a fair living-wage) — is seeing the impact. Rising gasoline prices mean fewer vacationers.
It’s hitting all industries and disciplines here. Want to move to Florida???
I think West Toronto was making the observation (which was true here too) that when the real estate market was hot and growing exponentially year after year, everyone wanted to become a realtor. I know three people who were nurses or teachers and changed careers in the last five years because it seemed like a no-lose proposition. Houses used to sell before the sign hit the street, often for way over asking. Speculators came in for quick flips but now they can’t find a buyer and the house is worth less than they paid for it. Mortgages are harder to get (this is a good thing). It’s not a pretty sight right now. I suspect those who headed toward realty because it seemed exciting will be returning to their original fields if there are spots open.
Thanks for responding. I’ll be dropping by your blog soon. Have a great rest-of-the-weekend.
Take care. g