When I am asked about how the real estate business is doing in Coweta County Georgia, I typically respond that “with great prices and historically low interest rates, there has never been a better time to buy real estate.”
But if I am specifically asked if I am BUSY, my response is generally something along the lines of “we are busier than ever, because every deal is hard!”
Because it is a fact that each transaction requires a lot more time and diligent effort in order to achieve a successful close. These days, we see more inspection issues, multiple documentation requests and additional addenda right up until closing.
In addition, frustrated buyers and sellers need to be reassured after each and every bump in the roadway. This requires constant communication on a regular basis.
We persist because we are good at what we do. As generals we direct the troops during every skirmish along the way in hopes of one day winning the battle!
And when we triumph, we know that it was all worth the effort!
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Isn't that true? I feel like I've given birth after many transactions. And then when I get that one that progresses flawlessly, the way it's supposed to, I almost feel guilty.
Richard, I know you have been in the business a good while as well. I have never seen such a challenge, even back when the interest rates were in the double digits we had more success and less headaches.
Sometimes these deals do involve "little skirmishes along the way!" Hard work - never harder!
Richard - well said - it's funny that so many people think we're not busy since the # of transactions are down!
I am SUPER busy, and not just because each and every deal takes more time, I just have a lot of activity on both the buying and selling side right now,which I'm very appreciative of. Yes, many transactions take longer, and yes, I cancel more deals, but my buyers find another house and move forward.
So very true Richard. I can't remember the last "easy" transaction I had.
Richard...You said it, the deals go back and forth multiple times before a contract is accepted, then each aspect is under the microscope...mortgage, inspections, title...and forget about the short-sale transaction.
Good morning Richard,
We are working for our money in today's market! However, people always need to move and if we are diligent and take good care of each client one transaction at a time our business continues to grow! Never a better time to obtain a larger market share!
I hear that Richard.
Busier than ever and every buck that much harder to come by.
Absolutely! Thank goodness I, for the most part, adore my clients. The complications in each transaction have grown exponentially. It makes closing all the more sweet!
Learning to work smart, and associate with smart, dedicated professionals is important always, but more so during times like this. Not every lender can help the buyer navigate the underwriting process with success. Some inspectors can instill a fear of buying, rather than a plan of maintenance. Family and friends often have less than sane advice.
We have to be careful with this message. I had a buyer once who spoke with a lender who was going on and on about how difficult things were these days. Before I knew it, I was on the phone with the buyer and he said, "From the sounds of it, I don't even think I'll be successful. I'm going to wait till another time."
Richard, I was thinking about blog fodder yesterday as I was working on a listing. Back a third time for photos, working on the advertising now. I spend hours on my marketing, hours. Did I say hours?
We are an attorney state here, often the extra load falls to them. Just getting it to that point is more time consuming.
Great post!
LOL I always say "living the dream" even though it is more of a nightmare!
Yea you are right Richard...Many of the deals put together don't even get off the ground, and the rest are a constant challange!
Great analogy, Richard. It does feel like a battle everyday. I may have to use that response myself.
Sorry to be gne so long ... I've been "busy" today with some ongoing transactions!
Hi Richard. I am hoping for a few more "triumphs" this year!:)
Thanks for writing,
Ken
The title says it all Richard. Exactly my sentiments and very well put. Thanks!
yes, every transaction now seems to have many potholes along the way. It is rare to have what used to be a "normal" transaction.
Thank you
Perfectly said, Richard! So many transactions these days leave me feeling "rode hard and put up wet." But, oh, the experience I'm gaining...Might ALMOST be worth it.
Richard.. I actually found this blog because Gabe Sanders reblogged... not because I don't read your stuff, but that I saw Gabe's post first.
In any case, some of us in my mortgage group have talked about this for a year now. Yes, it has gotten tougher and harder on each transaction, for the most part. thanks for getting the word out.
The good news is if we know each transaction is harder then this means we are working. I have strings of emails for each and every deal that are pages long. It's crazy but I'm also thankful that I have the deals going and heading towards closing even if they are difficult.
Richard, this is so very TRUE! I say, "Never have so many worked so hard for so little." Sort of joking, but not so much. I'm primarily a listing agent and I'm finding the the time between contract to closing has become so much longer than it used to be due to all the reasons you stated above. However, during that time, you have to reassure, check back, hold hands and redo everything almost daily, so the deal takes twice as much work as it once did.
We are extremely busy in my office and looking forward to finding ways to manage a few more deals in order to actually see a profit again.
Hi Richard,
No truer words have been spoken - every deal is hard these days. We feel like we have mortgage companies, appraisers, inspectors, and townships throwing up roadblocks every step of the way. All deals need complete handholding right up until settlement. Speaking of which, I have to go call Norristown Borough again...
~Lisa
LOL, You guys are my clients, imagine how it has been for me lol: I always reply:
"If it was any better I would not believe it!"
Richard - I started real estate in 2004 and I can attest that each year deals get more and more difficult. This business takes more creativity, ability to negotiate and hard work than ever before.
Amen Brother Richard
I find it helps to be a good "poker player"...anticipate the next move.
Richard...
What a great post!
We certainly are living up to facing challenges that I have never imagined.
Thank You for continuing to inspire us and keep us motivated to get to the closing table.
Wishing You Continued SUCCESS.
Good point Richard. One solution is to have volume so the ups and downs are even out at the end. For example, first-time homebuyers are generally the hardest but repeat buyers are not.
Excellent post Richard!
Each transaction now presents its own set of challenges. Agents now have to poised, persistent, and skilled more now than ever.
Good post. Every transaction has become increasingly difficult. It seems the rules of the game change frequently, particularly with short sales and foreclosures. Difficult as it is, I am thankful to be working with clients each and every day.
so so true!! even the cash deals aren't slam dunks anymore!! at least we ARE busy though.. better than no clients at all i guess (well at least sometimes it's better :) )
Can't argue with that AT ALL. Seems like my job is now 'chief-fire-putter-outer'
Yes, every transaction seems to come with difficulties. My philosophy is to warn my buyers or sellers of where the spped bumps are, the roadblocks and anticipate what to do when we eventually get there. Whether it be an unrealistic appraisal, or a borrower having trouble getting a loan, anticipate the worst, plan for the best. We can control the outcome!
A teacher asked me about the real estate business this morning while I dropped my daughter off. I now wish I had read this blog before I answered and I could have known exactly what to say ;) I did tell her we've been extremely busy, but not as much work is getting to the closing table. Thanks for the verbage!
I can definitely relate. Same goes here in the window industry. But I am definitely happy to be busy :)
The last 2-3 years has definitely been tougher as lending guidelines have tightened. Trying to get the borrowers, and sometimes the agents, to understand can be a challenge. Those who have purchased before can sometimes be tougher since they have something to measure against. A first time home buyer is sometimes easier to work with since they don't know how things used to be on getting a mortgage approved.
When it comes to underwriting conditions, we can only anticipate so much. Title and appraisal issues are for the most part, out of our hands.
You really made a good point here. It seems like some of us are working harder to keep our deals together with tougher financing and low appraisals and lots more inventory to show on the market.
Hi Richard, Just got off the phone doing some follow-up on a small ( $100k ) deal and commenting to an agent that I'm spending way more time doing that " Mother Hen " thing than ever before.
You are so right! Every deal is full of weird glitches that I've never seen before. When things are going smoothly, I keep waiting for the next shoe to drop.
Agreed! I just had a very easy, smooth closing (that was sooo sweet!) -- but I know the next one will be that much harder just to make up for it!!
It's almost seems that the lower the price, the harder it gets!
Jeff #23, you are luckey that you have found it difficult for only the past year. At my company, Empire Home Mortgage Inc., we have found the last 2.5 years tough.
Richard,
Clients need constant hand holding.
So true, Richard! These days every single transaction has its own quirks and kinks, and it's up to us as the professionals to help our clients navigate through to closing without having a meltdown.
Silvia, You are so right about the lower priced homes being the hardest to close!
I started in the real estate world right when it started down, so I've never experienced an easy time. (I hear stories about the good times though). This past year has definitely been the hardest; each deal takes far more effort to get to the closing table.
I feel like there is drama in every close! The lenders seem to require more and more detail. They want explanations for every deposit with proof.
As I work through these transactions wtih drama, I wonder how FSBO's do it. If there is an agent on one side of these, they are probably doing the work of two agents and being careful about what they do.
It does keep me busy...
So True!! I have been saying this very thing for at least the past 9 months now! Every deal is indeed MUCH harder these days & I can say that at year 14! That said - I celebrate each and every one of these victories, and all of yours as well! More this year than in the past two, but I am betting we could all use a bigger boost and some "easier deals" right about now. Think getting out and voting would make any difference? Hmmm - rolling the dice & hoping - Here's to the return of better times for us all!
Richard, we are busier because of the service we provide and because of sercice, we will get busier.
Ty
Good Points Richard! I fully agree. When the rare deal goes off without a significant hitch these days due I feel I am waiting for the other shoe to drop!
Richard, I like what your wrote. This business keeps changing everyday. I have a suggestion. All offers should include...for the agent....Pepto Bismol, wine and a massage after closing.
Amen, brother! and our service has to be impeccable!
Every deal is difficult on the financing side also. With new licensing rules, underwriting guidelines changing daily and lenders putting overlays on those guidelines, it's a jungle out there.
All the sweeter at the end!
Two things come to mind as I read this... One is that I'm glad that I don't have to face your challenges!
When writing copy I deal with one individual at a time. I never have to juggle the wants, needs, and demands from the number of people you deal with, nor do I have to find solutions for the multitude of things that can go wrong before you get to the closing table.
The other thing is that those of you who get through this tough period will be "set" to lead your markets when the crisis is finally over.
You'll not only know how to handle all the "little" problems that come up with things are normal - you will have earned both self confidence and the respect of your peers. AND... the clients you helped during the tough times will recommend you to others.
Amen Brother! The emotional drain is horrendous! But when a deal is done it's definately a high :-) EVERY client tells me how greatful they are for my tenaciousness, and they are glad I'm on their team- makes it all worthwhile.... I think... haha
25 years in the business, and I cannot recall a time like this. As Don said in post #2, even during the days of double digit rates, GPMs, Negative Amortization Loans, you could still push a deal through fairly easily.
Today the only easy ones are cash deals contingent on clear title and inspections. And even then, there is nail biting and holding onto the edge of the seat until the day of closing.
But you know the saying, "When the going gets tough, the Tough get going".
Boy, that's the truth. NOTHING is easy these days. Used to be if you got into escrow you were pretty much home free. NOT ANYMORE! They can jerk the rug out the day of funding! It's sure sucked a lot of joy out of the whole process. There is almost no part of this that is fun anymore. ;-)
Between the caution of buyers, the extra demands by lenders and the shock and suffering by sellers in this market, it is no wonder. No quick update phone call- everything is a 30 minute counseling session. We are reassuring, double checking and negotiating in places where we used to just check in and update on progress.
As much as I want to whine about how hard it is I have to admit that it's been a great thing! it has helped weed out a lot of undesirables and non committed types. All that's left are the real deal- US!
Interesting. As an agent with eighteen months in the busines I just thought all transactions were expected to be difficult! Margaret C.
Now THAT is an understatement! Every deal is so much harder than it should be, mostly because of the new lending criteria and appraisal guidelines - buyers and sellers are still very much the same, at least in my market.
Work harder and Thank God every day for what we have.
George Cruz Sr
Port St Lucie Fl
Hi Richard -- I think your view definitely reflects my reality. Exhausting at times, yet also very rewarding. To see the smile and sense of satisfaction on a client's face...speaks volumes.
Even the simple loans are now hard. I'm sure everyone is having trouble these days. The banks are now going totally in reverse and making it so difficult.
Amen to that! I always say "It takes a great agent to put a deal together, but it takes a better agent to keep it together". We are feeling it here as well. Working twice as hard. Whew!
The deals really are much harder these days. They require persistence, patience and knowledge.
I've always heard that for every hard, hair pulling deal you survive that you get 10 easy ones! HA!! If thats true then the next 700 years should be a piece of cake from here on out. Most deals are hard! But usually fun when you finish!
Good post!
It's not a done deal until it's a done deal with the money in hand :)
Thanks,
Mario
Richard,
I prepared a business model at the beginning of this year and calculated I needed to work 295% of what I did as recently as 2008. Little did I know I was being optimistic.
This analysis took into consideration
I've been fortunate that I could give good service and get referrals from all my clients, even those who did not complete a transaction (who are running triple a typical year).
Kirk Knight REALTOR Gallagher & Lindsey inc. REALTORS, Alameda, CA
True in my area too. Everybody is stressed from Buyers, Sellers, Mortgage Consultants, Title Agents and Realtors.
Richard:
I remember when things were easy. Really, I do. But we are building such character now, aren't we?
Ahmen to that brother.
Isn't that the truth. I'm learning that normal is just a setting on your dryer
Richard:
Amen and Amen! It seems like everyone is on edge and stressed. We try very hard to bring that stress level down and make smooth transactions, but sometimes its an uphill battle.
Nevin (#62) made a good point - with regard to real professionals in the business. It is becoming ever more needful to be sure your loan officer is licensed and if you can find a mortgage company that has all their Underwriters qualified and in house, things will be a bit smoother.
Thank you so much for writing this!
Silver lining - my clients seem to be more appreciative now than ever before. I'm finding the value is in our interactions more than in my bank account for the time being. The other day a client said they wanted to thank me and opened their arms wide for a big hug. At the end of the day, I feel really good inside about what I do for a living. How many salaried employees can say that?
I like your response to the questions. Good answer, because it's absolutely true.
Many extra things to do now.
You remember the old saying..."Hi I'm from the government and I'm here to help you". Yeah, right!
true here north of 49 too
So glad I am not the only one....nearly every deal has been a struggle from buyers with cold feet, to appraisers that are not familiar with the area, to underwriters that want to peek under rocks the buyer cannot even find.
Some days it is all I can do to keep those plates spinning.
However, can't imagine doing anything else that would be as fun, challenging, or rewarding.
It seems like every single transaction has been difficult lately, especially, short sales! When you finally get to the closing table and have happy clients, it's all worth it.