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Business and Economy

The Real Estate Market

by Larry D. McGee, Denver Realtor on November 15, 2008

We stopped taking the newspaper a few months ago. What I miss most about the daily rag is the comics, which I guess goes to show you just how valuable the daily was in my life. Oddly enough, about the same time, I stopped watching the 10 o’clock news, which is now the “all the time” news, so I am no longer in touch with the talking heads of broadcast media. So, it was a bit unusual that as I was waiting for my plane home after an out of town conference a few days ago, I was idly watching a talking head on a television in the terminal. The talking head was speaking in sad tones about the state of the economy and mentioned in passing the national real estate market having lost XXX trillions of value in the last few years. It suddenly occurred to me that the talking head did not understand the concept of a market, as he was just reading the script. So goes my inspiration for this article.

According to Webster, a market (from the Latin -mercatus), is “a meeting together of people for the purpose of trade by private purchase“. Further, a market is a geographic area of demand for commodities or services. Real Estate is defined as property in buildings or land. So, a “real estate market” is “a meeting together of people in a geographic area for the purposes of purchasing buildings or land“. What the media is constantly referring to as “the real estate market” is really a reference to housing data compiled from thousands of markets to present simple and reportable national averages that can be addressed in 30 or 60 second sound bites.

In the Denver area real estate market, as with most markets nationwide, there are really many “markets”. Certainly there are many geographic markets, with values in neighborhoods such as Washington Park remaining steady, and values in Green Valley Ranch plummeting due to excessive foreclosures.There are new development projects such as The Landmark in Greenwood Village that are selling as fast as the builder can finish them, and other new home projects that are not selling at all. There are also markets stratified by price. Today, in Metro Denver, the price bracket of $100,000 to $200,000 is actually a sellers market, with multiple offers presented on some properties, and sales well over asking price on many bank owned homes. However, there is a glut of million dollar plus homes, with sales slowed to the level of watching grass grow.

And the “real estate market” is very dependent on another market, the “monetary” or “credit” market. With the worldwide money market in complete disarray, the housing market, as well as every other market, is captive to the lack of available credit.

The “real estate market” is much too individually specific, much to complicated, and much to local to accept what the talking heads are spewing on the nightly news. If you have need to buy or sell real property, you must take time to understand the market as it applies to your specific needs. You might want to spend time with a knowledgeable Realtor® and have an extended conversation about how your specific needs relate to the “market”.

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What We Already Know

by Larry D. McGee, Denver Realtor on October 20, 2008

In the process of creating my new “Command Center” in the walkout level of our Lone Tree town house, I was forced to move a very full bookcase 2 feet to the west to accommodate the printer stand. This really large bookcase is the repository of approximately 250 books of various description. This morning I re-shelved all 250, taking care to establish some sort of order from our former chaotic shelving approach. A few books of fiction, but most addressing real estate, business, sales, personal well being, travel, and our 2 wheel pedal passion. As I touched and briefly reflected on each book, I was amazed at how much I have read and have knowledge of.

Books

We have sales books describing every type of sales approach; motivational books; real estate technique books; esoterica of feeling good about self; travel books from 20 countries; and 15 books on pedaling off somewhere and leaving it all behind. We have Dummie books, Idiot books, exercise books, and make money books. Bunches of books about all kinds of positive things. So, what is the point?

Tune out the Negative

One point is that with the exception of economists, most authors write books to improve an aspect or skill of the reader, or at least entertain the reader. Economists write books to depress the reader. In trying to predict the unpredictable, most economists tend to err on their side of caution, which is usually gloomy. So stop listening to the economists.

A Moderate Lifestyle

The second, and far more important point is that most of the how-to books have the same message. Life, living, business, real estate, health, and politics are really served well by moderation. When too many people drink alcohol before driving a car, the accident rate goes up. When almost anyone can obtain a mortgage loan, house prices rise excessively. When one political party ignores the a thing that negatively affects the citizens, the other party gains power. When too many people make too much money without providing value, the market crashes.

Selling Simplified

And lastly, selling is simple. Here is how it works:

1.)Find another person to talk to.

2.)Ask that person about the things that matter, family, occupation, recreation, and dreams (F.O.R.D.).

3.) Listen.

4.)Determine if there is a need for the the thing you are selling.

5.)If so, sell it, if not, bid a pleasant goodbye and find another person to talk to.

We have 30 books on selling techniques, and they all boil down to that level of simplicity.

Live!

We all know a great deal about many things. We have great anchors and experiences. Enjoy them and share them. Reach out and touch your friends and family, and talk about babies and marriages. Speak of baseball and apple pie. Ride your bike, climb a mountain, LIVE! Talk about politics and faith. Agree, or agree to disagree. Share what you would really like out of your life. Take a deep breath, slow down a minute, and realize that you are really OK. The stock market will recover, politics will change (but not really that much), people will still need homes, and life will be OK, if we just remember what we already know, and do something with that knowledge. And please stop being afraid. We have developed a culture of fear in this country that does not serve us well. It is time we change that negative culture.

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