A couple weeks ago, my colleague Jason Steele wrote an article describing the odyssey he and his wife had survived in selling their home. For me, that article began a series of misunderstandings that could only happen in our socially-networked age as a number of friends (and some family) falsely believed that I had suddenly been forced to sell my house due to the difficult economy. Since my parents and two of my three brothers live in various corners of Europe, this seemed entirely plausible; as serious as things are for many, they seem to somehow be getting an over dramatized version of the news. For all they’ve heard and read, our entire economy has screeched to a complete and utter standstill.
How did this misunderstanding happen?
As part of a conscious effort to “spread the word”, many of us at BH&G RE link our social networking sites to this blog. For example, when a new blog article posts it is automatically populated onto our “News Feeds” on Facebook. This is one way to reach a broader audience. The update only shows the title of the post (without indicating who the actual author is). If someone wants to read more, they simply click on the hyperlink and follow the story.
As an industry, we are all suffering right now in large part because too many people over a long period of time checked their ethical compasses at the door. Whether we like it or not, we are all caught up in this mess and few people are differentiating the players - since we are part of the system, we are perceived by many as therefore being part of the problem.
At this point in time, confidence and trust in all aspects of our business are challenged. Simultaneously, the financial environment for many brokers and agents has never been more difficult and the temptation to compromise company and personal values has never been higher. As brokers and agents, this is the time to stand up in defense of your ethical principles.
I spent yesterday at the Better Homes and Gardens Real Estate Wilkins & Associates office in Stroudsburg, PA. They told me it was a typical day in the office, but what does a typical day in a real estate office look like these days?
If you based your answer on what you hear in the media about the economy and housing market you might think a typical day in a local real estate office is quiet, to say the least. That was not what I witnessed yesterday.
…you don’t decide when to stop. As I chatted recently with a colleague about the collapse of Bear Stearns, he observed that the United States is now coming to grips with what individual European nations wrestled with a generation ago: we do not control our own destiny, nor will we ever again. The stark reality of the global economy is being hammered home by the day in ways we are only beginning to appreciate.
We must now accept that whenever it is that we pull out of this (presumed) recession, it will be driven in large part by global forces. Like it or not, the US economy will improve thanks to the efforts of far-away corporations and governments (either directly by buying Treasuries or indirectly through investments by sovereign wealth funds). The fact is our banks’ cash positions have so dwindled due in large part to toxic mortgage-backed securities that many are too thin to make even good loans. To get cash the banks will have to either rely on government bailouts or more interest rate reductions (though, as this WSJ blog notes, the Fed can only go to the well so many times) or raise capital that will often come from foreign sources.
The increasing influence of sovereign wealth funds is clearly starting to make some people nervous. I refuse to take a blanket isolationist view; the idea of an open worldwide market can and should be embraced. At the same time, I cannot help but lament the areas where foreign trade is just a euphemism for foreign dependence: imported oil, exported jobs, and non-existent manufacturing, to name a few. Nor do I understand the consumer-driven, borrow-to-the-hilt mentality that runs from individuals to corporations to our governments. We have collectively lost our discipline. I cannot help but to connect the dots from these places to what happened to our dear, overleveraged Bear Stearns.
What message does this young curmudgeon have to tie this back to our housing woes? For starters, whether you’re a homebuyer, homeowner, agent, or broker: recognize that our economic troubles run far deeper than the subprime crisis and therefore require a more introspective look at what ails us. We need a return to the fundamentals at the government, corporate, and individual levels. Washington must lead the charge by getting its house in order. With a national debt nearing $10 trillion, we are seriously overleveraged and in real danger of having our Treasury bond ratings lowered. At the corporate level, to our real estate brokers: now is the time to rethink your model. Trash many of the old ways and the expenses that go with it. Deliver the finest customer service you ever imagined. If you feel really daring (and now is the time for radical thinking), there are some great ideas in this 1000watt blog post. Buyers: find an agent who works with you to find a properly-priced home that’s within your means. Your investment will appreciate in the long-run and an agent worth keeping is ready to wait many years for your repeat business if they so earned it.
This bear ain’t done dancing yet, folks.What happened over the weekend matters to all of us but the full story runs much deeper.Each of us needs to recognize our role in the troubles and then contribute our part to the recovery.
If all else fails, you can either laugh or cry along with this entirely different perspective from Steven Colbert:
A couple weeks ago, my colleague Jason Steele wrote an article describing the odyssey he and his wife had survived in selling their home. For me, that article began a series of misunderstandings that could only happen in our socially-networked age as a number of friends (and some family) falsely believed that I had suddenly been forced to sell my house due to the difficult economy. Since my parents and two of my three brothers live in various corners of Europe, this seemed entirely plausible; as serious as things are for many, they seem to somehow be getting an over dramatized version of the news. For all they’ve heard and read, our entire economy has screeched to a complete and utter standstill.
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