The Market You’ve Got

Commentary by Margaret Kelly

RISMEDIA, Nov. 15, 2007-The Fed’s half-point rate cut in September raised many consumers’ expectations. But the move isn’t a market savior.

Although borrowers with home-equity lines of credit will realize benefits from the cut, it offers little immediate relief for borrowers with ARMs tied to the most commonly used indexes. The rate cut didn’t make loans easier to get, and savers and income investors will probably start seeing smaller returns. The September rate cut was simply about the economy on a larger scale.

The truth is: The market you’ve got is the market you’ve got.

So, you have got to cope with your market conditions in a competent way while you anticipate the next market cycle. As a real estate expert, you have the responsibility to evaluate the market, devise a business strategy and work hard to see it through.

If you’re in a buyer’s market, as much of the country is, you’re most likely dealing with a high inventory, adjusting prices and overly optimistic buyers. All that is normal. Here’s what you might have forgotten in your attempt to save money and time:

-The old adage that advertising in a good market is smart while advertising in a bad market is critical. Don’t stop marketing, but make sure you’re targeting your best sources of business.

-Educating your clients also is critical. Realism is the only way to keep your business alive. Working with unrealistic customers is rarely smart. If you educate them using statistics, charts and examples, you are doing them a great service. Be prepared-you might lose customers to over-ambitious agents who agree to anything. That’s OK. You’ll likely win the clients back when their expectations aren’t met.

-In this market, consumers need you more than ever. Remind customers of your strong negotiating and marketing skills, and that you’ve been through markets like this before. Properties need the right exposure and pricing to sell. We enjoyed a great ride in an active real estate market for nearly nine years. Now it’s time to show buyers and sellers that real estate experts are worth what they’re paid. Your professionalism, experience and strategic prowess matter-and you are in demand. RE

Margaret Kelly, CRB, is chief executive officer of RE/MAX International. She joined RE/MAX as a financial analyst in 1987.

For more information, please visit www.remax.com.

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