lake zurich...and beyond

A while ago I posted a blog entitled Helping Buyers Make Educated Decisions - Is it Really the Right Time to Buy a Home? Within that post I mentioned that a good source of information on housing market trends is Data Quick. I thought I would revisit the market trend graphs for the Lake County, Illinois area and ask you this question: What are you waiting for?

Below are two graphs showing the Data Quick snapshot of the market for the Lake County, Illinois area; one for the 1st Quarter of 2007 and the second graph for the 2nd Quarter of 2007. Now let's compare them, shall we?

First of all, the first thing I notice is that overall (all homes), in Lake County, the median price is higher than it was during the same period one year ago. That's right, folks, higher. If you look at Q1 vs. Q2 numbers you will see that the median home price overall is higher as well...by $3820.

Overall sales volume is certainly down, inventory is up, but prices overall are higher?

Hmmm...maybe you should buy a house now?

Now, what do you think would happen if the Sellers (fed up as some of them are) decided to take their homes off the market? You see, most won't reduce their prices unless they absolutely have no other choice - they would rather take their homes off the market and try again when the market is more favorable. If they did remove their homes from the market, would that result in an increase in the sales volume? If so, would the increase in sales volume drive the prices up again? Supply and demand.

Hmmm...maybe you should buy a house now?

The reason I pose these questions is not because I know the answers. I'm certainly no economist and I don't know your particular situation or market area of interest. It's just to make you think. The media is doing a very good job of spreading gloom and doom about the market but the reality is that overall in Lake County, the prices are holding steady for the most part (although some areas are admittedly down).

The question is this: What might Q3 show? I wouldn't have predicted that Q2 would show an overall higher median price. If you intend to buy a house, are you going to continue to wait? Are you going to take that risk? Interest rates are low, the economy overall is favorable, and prices are holding steady or...gasp!...higher.

What I am asking you to do, as a buyer, is to take a look at the graphs above and study the trends. Depending upon the area in which you want to buy, the choice may be clear. The time to buy is now.

I know what I'm doing...touring new listings! Tuesday is the broker tour day in Lake Zurich, Hawthorn Woods, Kildeer, Long Grove, Deer Park & Barrington (my main market areas...although it is tour day in other areas as well). It is a day set aside for agents to tour other agent's listings.

In my opinion, touring is one of the best ways for an agent to keep abreast of what is happening in the market. Proper pricing requires market knowledge. All the pictures in the MLS can't take the place of actually being inside the house...after all, how many buyers will buy a house without seeing it in person? It's also a great opportunity for agents to easily preview listings they think their buyers would want to see.

Another benefit of touring is that you are networking with (and supporting) other agents and establishing good working relationships with them...a vital component to the success of any agent. See you out there!

In an interview in the October 2007 REALTOR Magazine, best-selling author and marketing entrepreneur Seth Godin stated that in order to succeed in this business you have to be the "best in the world." The theory behind this is that given the chance, the consumer will seek out the superstar agent...you know, the one that "has the reputation of being over-the-top good, more honest than anybody else, and has been doing it longer than anybody else."

While I agree with this theory about public perception and striving for excellence, I take offense at the notion that the superstar agent is the one that has been "doing it longer than anybody else."

Correct me if I'm wrong, but since when does "doing it longer" equal "doing it better?"

I've been licensed since 2003. In no way can I profess to be the most experienced agent out there, particularly if experience equals years in the business. Reputation and honesty aside, I am experienced enough to know that experience alone is not going to get your house sold, especially in today's market. It's unfortunate when people choose an agent based on the fact that he or she has been in business for a very long time...instead of choosing an agent based upon the marketing plan being presented.

Ladies and gentlemen...interview your agents! Getting your home sold is about marketing your home; positioning your home for success. A big name or fancy car...or an agent who has been in the business for 20 years does not mean that the agent has a fantastic marketing plan. The agent who has been in the business for 20 years has, most likely, sold many more homes than the agent who has been in the business for 5 years by simple virtue of number of years in the business. So what? It's not about who has sold the most homes...it's about who is the best agent to sell your home.

I'd be wary of an agent whose main pitch is:

"I'm the #1 agent in my office"

"I've been selling homes for 20 years"

"I have more experience than anyone else"

In other words...if the pitch is all about the agent, instead of focused on the marketing plan for your home, then that is probably not the right agent for you. An agent should present his or her marketing plan and explain why and how he or she will position your home for a successful sale. If the agent tells you that he or she will put your home in the MLS, on realtor.com, and in the newspaper...then your response should be, "what else?"

You see, the old-fashioned ways of advertising/marketing a home are no longer the most effective. That is why simply choosing the "most experienced" agent no longer cuts it in today's market. Before you make your decision on who you choose to represent you in one of the biggest financial transactions of your life, you need to dive in a little deeper and make certain that the agent you choose is someone who is innovative, internet focused, technologically savvy, has excellent communication skills, is constantly learning and totally focused on your success. What other websites does the agent maintain? Where else will your home be listed? Does the agent blog? Network? What do the marketing materials look like? Are they professional? Does the agent have a good internet presence? (Google him or her to find out). What else does the agent do that may help your home sell faster? How does the agent target buyers as well as other agents in his or her marketing?

The underlying problem with the implication that the "superstar" agent is the one that "has been doing it longer than anybody else" is that it seems to be based on the assumption that all agents are alike and do the same things. Nothing could be further from the truth.

Take the time to interview agents and compare marketing plans, read client testimonials and ask the agent for his or her statistics (average time on the market, average list price to sales price). Then make your decision. I'll bet you discover that the best agent for you...is not the one with the most experience after all.

One of the best things about moving to a new home is the opportunity to start fresh.

Our lives are constantly changing and our tastes and needs change accordingly. Every time you move you get a new perspective on your stuff...and your stuff therefore gets a new life in its new home.

It's not just about your stuff, however. YOU get a new perspective on yourself as well. Your needs are different when you are single and young, married with children, divorced or an empty-nester. When you change your surroundings as you change your life, you are actually embracing the life you live now and that is a very healthy thing.

Instead of viewing your move as an onerous challenge, view it as an opportunity to leave your baggage behind (both literally and figuratively) and embrace your new life!