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Heather OSullivan

Market conditions perpetuated by media induced perception?

By: Heather OSullivan
Friday, January 25, 2008 11:10 AM

I've recently had this conversation with a number of people in our industry. We all know that the market is suffering right now. Some areas much more than others. I just wonder how much of it is "real" and how much is being driven by public perception thanks to the media. Granted, the subprime market is what it is, but what about all of the folks out there who don't need the subprime market? How many people are afraid to buy because they don't THINK they can get a loan, or because they have HEARD so much about how bad the market is, they are terrified to try and sell?

I believe that we should be countering this in mass by educating the consumer/our clients and potential customers that there are lenders lending, and buyers buying, and sellers selling! Do you think that if we all as a huge group, saturated the market with more positive information, we have the power to turn it around? I'm not suggesting that we lie! Don't get me wrong. I do believe that there are a lot of advantages out there for the consumer in this market. Look at how many are in higher rate loans. Look at the recent spike in the refi market.

I am suggesting that instead of sending "just listed" postcards, we should be sending "just sold" or "just closed" postcards. Pointing out that if you sell your lower priced home at a 5% discount for example and buy up at that same discount, you are "making" not "losing" money. Even more so if you are getting that new loan at a better rate. 

If we "advertise" the activity that IS going on (ie. loans approved, sales written, closings,etc) that could wechange public perception at the local level??

I believe that by doing that on an individual level as a group, then on a national level, we could have a very powerful effect. Can't hurt! The alternative would be to just sit around and watch!

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Comments

Mike Farmer
Member Since '03

Mike Farmer said:

I'm with ya, girlfriend - let's lick some stamps!

You've inspired me to write a blog. Coming shortly.

January 25, 2008 12:05 PM
Cathy  Clark
Member Since '06

Cathy Clark said:

Heather, you are so right!  My lenders of choice are so busy right now they don't have time to make their usual rounds.  And the majority of their business right now is not refi's, but resales.  Lenders are lending, rates are very good and prices are reasonable.  

Welcome, by the way!

January 25, 2008 12:25 PM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

[Heather sez: instead of sending "just listed" postcards, we should be sending "just sold" or "just closed" postcards.]

That's what we always do and have always done. Nothing succeeds like success.

We're the media. Welcome to Web 2.0!

January 25, 2008 1:25 PM
Betty Piatt
Member Since '06

Betty Piatt said:

It has always worked to get the word out. Postcards and telling folks. I too believe there is to much bad press out there . I am so tired of hearing it. Our market is not and has not been bad. Knock on wood. With all the news out there people are fishing for lower prices on the homes listed. Then suprised they are not getting them. We educate all the time. But the media is fouling things up. Let it be report facts not fiction. Keep it to the markets you are reporting in.

Please I know some markets are way off and people are hurting. I just feel it should be reported market by market not lumped together.

Betty

January 25, 2008 2:12 PM
Gregory Bain
Member Since '03

Gregory Bain said:

Heather, I didn't see anyone on the real estate blogs complaining three years ago that buyers where uncontrollable and buying every piece of garbage fixed to a piece of land. You can't blame the media for reporting what has taken place.

As for post card mailing, they have always been sent out as listed, under contract and sold. If you want to help change the perception of buyers, start putting up "under contract" riders on the lawn signs and moving the listing out of available to pending category.

That's what we did the last time the cycle started over. The wheel remains round.

January 25, 2008 2:56 PM
Nate Covington
Member Since '07

Nate Covington said:

Heather, Welcome to P2 and the world of Relib.

I think we as Real Estate Agents need to be accurate with our info and we also need to educate the media.  

You may be able to contact your local association and have the media representative talk to the media for your area.  We did in our areas across Idaho.

The media had been reporting us down, but we actually had the best year in our history, even better than '05.

My part of the state was at a 20% growth rate, but our local media had us down.  Go figure??

January 25, 2008 8:50 PM
Vicki Owens, ABR, CRS, GRI
Member Since '04

Vicki Owens, ABR, CRS, GRI said:

Just had to quickly put my 2 cents in here. IMHO, NAR could do A LOT better with the media campaign they have on targeted at buyers. Sorry, but the lady they have as our "spokes model" could have been chosen more wisely or at least directed to crack a friendly smile thru the script.  She seems cold. Think of yourself as a home buyer when you see that ad run. Quite frankly it would scare me to ever contact an agent.  Who makes those decisions on who to cast? Yikes, I would just keep renting after seeing that! Too scary! I would think every Realtor was just not too friendly. Can't we do some warm fuzzy American Dream stuff or something?  Happy selling all!

January 26, 2008 7:11 AM
Sue Berger
Member Since '05

Sue Berger said:

Heather ~ I'm with you. Listening to all the negative hipe on the tube is enough to depress anyone.  Negativity breeds negativity.  We're showing here in Gladwin in January,  last year and the year before it was about the middle of summer before things started picking up.  I think the buyers that are coming out now are realizing that seller's are at about their lowest,  interest rates are fantastic,  and there is plenty of inventory out there to choose from.  They get the pick of the best. It's a great time to buy!

January 26, 2008 2:30 PM

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Heather OSullivan
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Heather OSullivan
Member Since '07

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