How to Combat Media Doom and Gloom

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What should brokers and agents be doing to counter negative spin? Real estate leaders offer advice.

RISMEDIA, December 28, 2006-For many people, a new year brings about hope for change-a change in the market, new enhancements to help better the consumer experience and new thoughts on the public's perception of the real estate market. Here, two real estate practitioners discuss how industry professionals can battle the negative press surrounding us.

Dispelling the Myth

Tom Kunz
President and CEO
Century 21 Real Estate
www.century21.com

It's no secret that the media has created some noise around the idea of the downside in the changing real estate market. For those of you who have lived through more challenging economic times and have seen the cyclical nature of real estate, you know this is a foolish and potentially damaging idea.

It is our responsibility to dispel this myth of doom and gloom, and replace the media's rhetoric with some hard facts. We have been making a concerted effort to equip CENTURY 21® System members with compelling positive messages about real estate to prepare them for dealing with tough questions from consumers and reporters.

What we hope to convey to consumers is that the industry is still experiencing single-digit interest rates, one of the best indicators to buy. We also need to insert some context on today's market: In coming down from a nine-year record high, this is still a positive and normal market.

Unfortunately, the sales associates who have entered the real estate market in the last few years don't know what it's like to deal with today's environment. We've responded by creating training specifically designed for this market. New courses are available for working with buyers, staging a home, and one course called "Capitalizing on Market Dynamics," that deals directly with today's real estate environment.

We've also made it easier for consumers by providing informative podcasts on home-buying and -selling, along with tools like Century 21 Mobile, which allows consumers to search for listings from the convenience of their Internet-enabled cell phone or Blackberry.

As is expected, the agents with solid business and marketing plans for listings, great reputations for providing fantastic service to clients, and strong referral bases will continue on. These are the quality agents we hope to attract and keep with our tools and programs. By taking an assertive stance and giving our System members some strong resources, we are poised to keep up our momentum.

A Hiss, Not a Bang

Julie Mategrano
Director, Industry Relations/Compliance
Birdview Technologies, Inc.
www.birdview.com

Some bubbles "burst" with a loud bang and the bubble disintegrates. Some bubbles just "hiss" a little and go flat. The latter, I believe, more accurately reflects today's "deflating" real estate market. As consumers react to negative press about drops in sales, falling market values and homes staying on the market much longer, agents and brokers need to help consumers maintain a broader, more holistic perspective.

Real estate is always cyclical; thus today's market conditions must be considered historically, not just in the context of the last five years. Brokers and agents must be the experts, armed with information and insight to help buyers and sellers understand market changes and interpret market statistics in the context of their individual circumstances.
We must interpret today's media hype in a positive way and provide sound advice that grounds consumers in reality, helps them avoid pitfalls and encourages them to keep an eye toward the future.

Although today's real estate market seems favorable to buyers, they must still beware of enticing incentives such as all-expense-paid vacations that inflate home values. Agents should understand actual home values but also help buyers and sellers avoid gimmicks that do not improve them.

Another media-hyped concern for buyers is rising interest rates. While any rate below 10% is considered good, agents must use historical data to explain the current rate's advantages to hesitant potential buyers.

Further, a strong marketing plan that increases exposure of listings nationally and regionally via other Internet-based media outlets is essential.

The process of buying and selling real estate has undergone numerous fundamental changes over the past few years. New tools and techniques have entered the landscape and will keep brokers and agents at the forefront of creating positive experiences for
consumers.

Source: Real Estate magazine, December 2006

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