What I Love About this Market…

Jul
2011
02

posted by on Reflections From a Difficult Market

Before I go any further, let me acknowledge that the Denver, Colorado real estate market isn’t that bad. We HAVE qualified buyers and many of our sellers have enough equity to escape from their mortgages. If a home is well-priced and well-presented, it’s likely to sell, even in a bidding war (got one of those going on right now).

However, it’s certainly not anywhere near what it was in the mid-to-late-90’s and some of the early 2000’s. Where there might have been ten buyers up for grabs then; today there are maybe three. Amateur investors don’t have $100k of “free money” in their personal homes to play with; even if they did, they may not be able to access it via those handy-dandy HELOCs of past. Fickle home- buyers who simply change their minds about the home they bought six months ago aren’t able to unload it and still afford to pay their Realtor® the way they used to be able to. The only fix-n-flippers left are the ones who do it very aggressively and professionally, and they typically don’t need or want no stinkin’ Realtor. 

In other words, there are simply fewer real estate commission dollars to go around. Where in years past I could make $200k by simply showing up; today, I fight (and pray) for every dollar that finds its way to my bank account.face

So, what on earth is there to love about this market? Bear with me as I get all confessional on y’all.

I was Very Spoiled during the majority of my real estate career. I was profitable my first year and doubled my income every year after that until I was consistently making… well… plenty. I remember wrinkling my nose at $2,000 paychecks. I remember being ripped off by a printer to the tune of $500 and not even bothering to protest. I remember arrogantly saying “I don’t get up in the morning for less than $1,000!”

Ahhhh, but I sing a different tune today. I got a royalty check yesterday from an old Sell with Soul account for $424 and did a little happy dance. I’m still awaiting my Alabama tax refund check of $488 and will smile when it (finally) arrives. My last closing resulted in a $1,677 paycheck and I was tickled.

Not only have I rediscovered an appreciation for “smaller” paychecks, but I’ve also learned to maximize every opportunity for new business that presents itself to me. I check back in with people who called off my signs last week (and apparently no one else is doing this because I’ve converted 100% of them to clients!). I hang out at the office more and actually TAKE floor calls or walk-ins. I’ll show my listing way across town instead of simply referring the caller to a nearer-by agent. I’ll do open houses even if my seller isn’t expecting me to.

In short, it appears that the current state of market has jolted me out of my complacency and given me back the enthusiasm and energy of a rookie. And I tell ya… when the good days return… I shall never take a paycheck for granted again. Maybe that’s the lesson in all this!