Event Coverage
C.A.R. President Takes Realtors into the Future
C.A.R. President Colleen Badagliacco is pictured with SILVAR President-elect Leannah Hunt, SILVAR President Mark Burns, and SILVAR Past President and Region 9 Chair Willi Krauss.
Last week, as guest speaker at SILVAR's Broker/Manager meeting held at the Palo Alto Golf Course, California Association of REALTORS® President Colleen Badagliacco updated SILVAR members on the economic situation, changing demographics and legal issues impacting Realtors today. Then she took them into the future, discussing challenges ahead and directions towards success.
Badagliacco said the overall California real estate market has slowed down, and it's impacting different people at different levels.
"People are not buying at the same level and the general public is seeing prices go up year over year," Badagliacco indicated.
"Overall, the economy for our area is terrific. Silicon Valley is in an awesome position economically, compared with the rest of the state, with more job growth and continued innovation – the downside is affordability with younger buyers and those who are stuck and can't move up," said Badagliacco.
Realtors today are dealing with different demographics, with consumers from different age groups with different needs and expectations that need to be addressed differently, Badagliacco said. Each generation has its own way of approaching real estate:
• The over 65 age group, who is looking for senior housing.
• The baby boomers, who have built up equity and are retiring, but not in the way their parents did. They are buying second homes.
• The younger generation, known as Gen X and Y, "that's seeing prices rise and is hesitant about stepping in, or they are stuck and can't step up, which in turn, puts a damper on the market."
Gen X and Gen Y are tech savvy in text messaging, e-mail, MySpace. They are doing quite a bit of comparison shopping; they are more cautious; and they are more skeptical, Badagliacco noted.
The C.A.R. president told brokers and managers they need to give their agents the tools to educate this group and let them know that there are still good loans out there. Realtors need to bring the statistics and market to this group "so that they understand that the market is not falling, and educate them about higher comforming loan limits, exchanges, equity and the value of long-term investment. Kids need a way to buy a home and build equity and value," she said.
Badagliacco said C.A.R. is addressing raising the conforming loan limits by metropolitan areas so loans can be assessed at better rates. C.A.R. is also seeking to improve FHA loans. These steps would open up better loan products for people, and give Realtors tools for first time homebuyers.
Despite the change in market conditions, Badagliacco said there are still more licensees than there are transactions. Sooner or later the numbers will decrease, but for now, the competition is stiff.
"We have 80,000 to 100,000 more than we need," she announced.
With all this in mind, Badagliacco challenges Realtors to make 2007 the Year of Realtor 2.0.
"We live in a time and place where we need to be on top of our game," she noted.
She described Realtor 1.0 as an agent with a cell phone, an e-mail address, with a Web site which is static, with posted photos and information and perhaps, even virtual tours of properties. Realtor 2.0 goes a step further - with an attractive, interactive, easy to use Web site which gives the consumer the ability to search for property in multiple ways. Realtor 2.0 is equipped with professional e-mail, an e-mail signature, access to online forms and online transaction management, as well as a PDA with e-mail on the road.
"If you are not faster than the competition, you're falling behind," she warned. "You need to integrate technology more seamlessly in your business, so the consumer has a better experience."
Badagliacco encouraged Realtors to improve their skills and take classes, network the areas, upgrade business practices to better serve the consumer, "so you can deliver the value. Then you'll be in alignment, because today's client isn't going to wait."
"We've got to get ourselves away from the attachment with paper. The Web is shaping these transactions. Your client may be here today, but in Singapore tomorrow. Your clients are out there. Their world is there. If it's on the Internet they can see and find it there. Realize it is about the consumer. We're handling the most important transactions in peoples' lives. It's a stressful transaction; getting information to them faster will cut down on the stress," she advised.
"When someone meets with a Realtor, it's got to mean more," Badagliacco continued. "You are a trusted advisor with people skills for the 65 years and over group as well as the 25-year-olds. You don't want them to discount you. Be a bridge so we can maintain the market share we have. Integrate all technology tools as it makes sense as an industry. We have to become more efficient."
In closing, Badagliacco remarked, "Andy Warhol once said, 'Time changes things,' but I believe it's people who change things. Not time. Now that there is a little calmness in the market, you need to focus on improving yourselves and your skills, so the next time you get a wave of people you can meet them in their own terms."
She recommends the following readings:
Wikinomics by Don Tapscott, Change or Die by Alan Deutschman and Made to Stick: Why Some Ideas Survive and Others Stick by Chip Heath and Dan Heath
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.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.