SILVAR  :  Newsroom  : Real Estate Articles

Real Estate Articles

For Market to Rebound, REALTORS® Need to be Part of Solution

Realtors need to continue sharpening their skills, educating themselves about the market, so they can better educate their clients.

Wednesday, January 21, 2009

Acknowledging that 2009 will be a challenging year, Sally Anderson, a longtime Realtor and expert in the real estate industry, told her colleagues at last week's Silicon Valley Association of Realtors tour meeting in Los Gatos, "Agents need to make a decision either to be part of the problem, or to be part of the solution."

2009 marks Anderson's 40th year in real estate. A Realtor with Alain Pinel Realtors in Saratoga, Anderson said in order to succeed in this market and bring back buyer confidence, agents need to work together and not be adversaries.
 
"We must work together and be better advocates for our clients," Anderson said. "We need to educate our buyers and sellers better and do so by educating ourselves about what's happening in the market."

Anderson cited Sept. 14, 2008, when the Dow Jones fell 500 points, as a turning point for the economy. Despite the trials, she continues to be optimistic. She has seen a number of market downturns in her 40 years in business. The difference today is the massive job losses, which has hurt buyer confidence.

In order to succeed in this market, Anderson said first and foremost, Realtors need to know and understand the market by analyzing the numbers and seeing the inventory. "We are in a market that is unforgiving," she reminded agents. "So you need to know the pluses and minuses, and you can't know that without actually seeing the property."

Anderson indicated since September 14, price per square foot of property has dropped by $100, but there are pluses and minuses also to consider based on location, design, backyard, type of ceilings, other qualities that make a property unique.

Anderson said since Sept. 14, 10 percent of properties that sold in Saratoga and Los Gatos sold at or above the listing price within a period of 10 days. "In these transactions, the agents got it right and were able to relay proper information to the sellers in order for them to make important decisions," Anderson said. "Ninety percent, however, lost between 20 and 30 percent of the listing price."

It takes an average of 120 days to three years for sellers to negotiate with themselves and get the price right, according to Anderson. "We have to narrow that time line. If you educate sellers and give them the right information and tools, we can shorten that period of time. … Give your sellers the advantage they need to sell their property," she told Realtors.

"Your clients want to be led; you are the Pied Piper of real estate," Anderson continued. "They need you to show them the way. This means you have to take responsibility to lead. Be ready to lead."

Personal communication these days is a must. Anderson believes "every offer deserves a counter offer" and all parties should personally come to the table and discuss the offer. Agent and seller need to present the offer face to face with the buyer and the buyer's agent. At the table, sellers can be educated properly with the buyers' agent present, learn about the buyer's limitations and strengths, and how it will work for everyone.

"We need to work together and help each other with each transaction," Anderson said. "With each transaction, confidence in the market increases. … It takes communication and a lot hard work to succeed; it just doesn't happen."



The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

» Back to Real Estate Articles

Site Navigation