To Protect and Serve

Avery-Hess recently posted on our Facebook Fan Page an article that explored the idea that 80% of our results are generated from 20% of our activities. The post in essence gave a Real Estate twist to the Pareto Principle. There were a lot of good tidbits in the post, and certainly some good takeaways for folks in any industry, not just real estate. That said, there was something about the post that just didn’t sit well with me. The headline. And theme of the post. The assertion of:

Realtors, Do Less and Accomplish More.

That statement makes my skin crawl. It makes me bristle and fume at its very notion. It is wrong, on so many levels, and certainly sends the wrong message to a lot of constituencies, not just Realtors.

Real Estate is a demanding profession, of that there is no doubt. It is not easy. In my opinion, it is crazy to even consider the notion that Real Estate professionals can “Do Less and Accomplish More.” That sounds like a catchy hook used by vendors who hope to entice the casual reader with catchy buzzwords and marketing jargon in order to have them sign up for a subscription for their platinum services or consulting package. I contend if your Broker was providing support and assistance, helping you navigate the Real Estate waters teeming with vendors, self-appointed experts and peddlers of unsavory and useless wares, you would not need these “Platinum Membership” subscriptions. But that’s a different topic for a different post…

So Why’d you Post the Article on Facebook?

This one’s easy. Because it was a good article, other than the headline that soured my disposition. There’s a lot of good information in the article, and many points are valid and should be taken under consideration. That said…

Real Life ain’t Easy, and Real Estate is Hard Work

There I said it. Why folks in Real Estate seem to gloss over this fact is beyond me. Real Estate is a challenging profession. It takes expertise, and know how, and determination, and passion, and about 4,000 other things to be successful in this business. Most of all, it takes an unwavering commitment to be hyper-focused on servicing the needs of the Consumer. Your client(s). Your clients are making the BIGGEST financial decision of their lives. Be dogged in your representation of them and their interests. Understand and anticipate problems and issues before there are problems and issues. Make sure, doubly sure, that your clients are protected.

Real Estate is not about you, and how you can do less and accomplish more.

It’s about your clients. And how you can do more, way more. Way more than is necessary to ensure that they have an unbelievable Real Estate experience. I think the post that served as the inspiration for my dialogue certainly has a lot of valid points about how Realtors and professionals can increase business efficiencies. I think the post also has a lot of good information on effective usage of time, and skirts around the issue of time management (which the post really should have been about). There is no shame in wanting to manage time better in order to increase business efficiencies, but to me that is a LOT different that doing less and accomplishing more.

-Amit

Search for Homes and find a Real Estate Professional  to Protect and Serve Your Interests: www.averyhess.com

A Brighter Outlook for Commercial Real Estate? It is up to the Regulators!

Last week Federal Reserve Chairman Ben Bernanke said:

…commercial real estate loans should not be marked down because the collateral value has declined.  It depends on the income from the property, not the collateral value.

Why he didn’t come out and say this in 2008 will always be a mystery. If he had said it then, the world and particularly the US might have avoided this financial crisis.

In November 2007, FASB (Financial Accounting Standards Board) reinstated mark-to-market accounting for the first time since 1938. This rule uses the last price of a similar asset sale to value assets. This caused the market for asset-backed securities to dry up. The prices of bonds and mortgages that were still current in their payments fell by 1/3 to 1/2. In a roundabout way, this had the effect of wiping out regulatory capital, causing bankruptcies and creating a vicious downward spiral in the economy.

Last April, FASB told banks they could use asset cash flow to value bonds and mortgages. This fixed the immediate problems in the system, and the economy and financial markets have been on a tear since.

However, now we read that bank regulators are enforcing their own version of mark-to-market accounting by using the appraisal process. Regulators are forcing banks to write down loan values and increase loan-loss reserves by using appraiser-driven valuations. Appraisers? Aren’t they the same people that over-valued properties five years ago?

To the bank regulators, it does not matter if the loan is still being paid on time. Additionally, it does not matter to them if the lower valuation of the collateral will make the bank require that the borrower put up additional cash. The result is decreased bank lending that is hurting small business and making it more difficult to reduce unemployment, which is not necessary. Most banks are well capitalized today, better in fact than they were in the 1980s when banking losses were very high. In the 1980s we did not have mark-to-market rules, so if a loan was being paid on time, the bank did not have to set aside much in the way of reserves for it.

We need bank regulators to get on the same page with the Chairman of the Federal Reserve.

Post written by David Hess, Executive Vice President and Managing Broker

Search for homes in all of the DC Metro: www.averyhess.com

Judy Radvanyi Featured in The Washington Times

Last week, Avery-Hess’ very own Judy Radvanyi was profiled in a piece in The Washington Times. Judy appeared in the paper’s “Realtor Profile,” which features local real estate professionals. She’s been with Avery-Hess, Realtors since 1999 and is currently teamed with Albert Crider. Together, the duo is known as The Match Masters–matching people with their homes. To learn more about Judy, check out the video interview we did with her a few months ago and follow the link to her profile in the Times.

To read the entire article: click here

Search for homes in all of the DC Metro: www.averyhess.com

Leesburg, VA Market Report – 3/2/10

The market in Leesburg is hot. With houses of every size, age and type imaginable, a buyer can certainly find what they want at a price of their choosing. The report below represents the market conditions in Leesburg, Virginia.

• Homes for sale: 497 (down from 543 two months ago, and 625 one year ago)
• Closed sales: 54 (down from 112 in November when the first round of tax credits expired, and down from 117 in December when everyone was trying to close before the year end.)
• Average sold price: $363,410 (down $373,530 from two months ago, but up from $277,169 one year ago)
• Average days on market: 60 (stable over past two months and half the time it took one year ago)

Prices in Leesburg are up 29% from one year ago and bouncing around and still trending up. It is estimated that approximately 40% of the sales in Leesburg are either bank owned or short sales, where the bank has agreed to take a payoff that is less than the outstanding mortgage loan.

Downtown Leesburg is a Historic District of quaint old town where the architecture has been preserved. It is a vibrant business hub that includes shops, restaurants, art galleries, the Loudoun County Courthouse, and numerous small offices.  In addition, there are are multiple hospitals that service Leesburg. Part of the attraction to living in Leesburg is the easy access to employment areas that are within a reasonable drive, including the Route 7 biotech corridor, Tysons Corner, and Route 28.

Market data and  commentary provided by David Hess, Executive Vice President and Managing Broker.

Search for homes in Leesburg, and all of the DC Metro: www.averyhess.com

Sterling, VA Market Report – 2/26/10

It is very normal for the number of closings in January to be lower than totals in the month of December. At the end of  the year it’s typical for people to race to get into their new home before the holidays, leaving January figures to pale in comparison.

The following represents the real estate market in Sterling, Virginia:

• Homes for sale: 383 ( up from 374 last month)
• Closed sales: 71 (down from 121 last month)
• Median sold price: $274,000 (up 18% from one year ago)
• Average days on market: 36 ( down from 39 days last month)

Almost every month the median sales price in Sterling has been going up. In fact, it’s now 18% higher than one year ago. Plus, the time it takes to sell a house in Sterling is down to 36 days, improving on last month’s 39 days. Available inventory is now down 32% from a year ago, reducing the housing selection for potential buyers.

Investors and first-time buyers had previously been competing to buy the same houses on the market, which drove up house prices. Changes in policy on the sale of Fannie Mae and Freddie Mac foreclosures that will give owner occupant buyers first preference. This should result in making it easier for owner occupants to purchase without having to pay more than the original asking price.

Market data and commentary provided by David Hess, Executive Vice President and Managing Broker.

Search for homes in Sterling, and all of the DC Metro: www.averyhess.com

Gaithersburg, MD Market Report – 2/25/10

• Homes for sale: 697
• Closed sales: 108 (down 24% from December 2009)
• Average sold price: $298,534 (median price is up 4.8% from same time one year ago)
• Average days on market: 81

The 24% drop in the number of closings from December 2009 to January 2010 is nothing to fear. There is always a rush to close at the end of the year and the result is that January is almost always a relatively low closing month.

Meanwhile, almost any home priced under $350,000 in Gaithersburg is receiving multiple offers. Furthermore, the average days on market was 126 days one year ago, 73 days last month, and 81 days and this month.  It takes on average, about 75 days for a well-priced house in good condition to sell.

Market data and commentary provided by David Hess, Executive Vice President and Managing Broker. To give you an idea about the wide range of prices in Gaithersburg, David’s two-acre home has four bedrooms, 2.5 baths, a side load two car garage, a huge screen porch on the back of the house and is is for sale for $689,00. Call Seema Rodriguez at (301) 922-1770 for more information.

Search for homes in Gaithersburg, and all of the DC Metro: www.averyhess.com