A recent article from Ron Phillips 2012 Immediate past president of the National Association of Realtors said a June survey of Economists indicated we have hit bottom and are now on the rebound. He mentioned that before the crash the majority of the work agents put in for their client was prior to contract and fall out was non-existent. However, in today’s real estate world, especially here in the Lake Lanier Real Estate market, there is more time put in after the contract and fallout is much greater.
Having come from the New Homes in the Buford Ga Real Estate arena it had always been the later for me. I can remember in the mist of the housing boom we had to sell 3 houses to get one closed. We wrote many contracts that never made it to the closing table. We were used to working hard so when the economy crashed we stepped to the plate and made corrections so we could continue our business.
I have seen many offices for the major real estate brokerages go out of business, maybe that is why?!. No longer do you have to affiliate with the big name Brokerages to have a successful business. The Lake Lanier Real Estate and Buford Ga Real Estate consumer realized that it was never the Brokerage that sold their home it was the agent! This gave all of us successful agents a chance to step away from the high costs required by major Brokerages and finally get the attention we deserved for a job well done.
As Realtors we should help protect our housing economy, including educating the consumer in making the best decision when considering the purchase of a home, (our fiduciary responsibility). The economy and housing values both have cycles. It has been more than eighty years since the difference between the top and the bottom was so great. With the news of the economy moving in the right direction, we need to do so cautiously so we do not repeat the last 10 years. Below are 10 lessons Ron Phillips mentioned that came to mind. I think he is dead on.
- The economy cannot recover without housing.
- Everyone needs shelter, but not everyone needs to own their shelter.
- High homeownership rates are important but they must be sustainable.
- Home prices go up and go DOWN.
- The process of purchasing / financing a home is more complicated.
- Sound underwriting of mortgages is critical.
- Home equity should not be used for ordinary living expenses.
- Financial reserves for family, companies, and countries are necessary.
- Homeowners confidence in the economy is directly related the value of their own homes.
- The economy is global.
What is important is that we remember what happened as we prepare to write the future. Most importantly, we should also have a sense of accomplishment that we endured these life lessons.
Let us all remember there is the good the bad and in the last 10 years the ugly to our economy, it all cycles. Personally, I am ready for some good again. As a good Southerner would say “God bless your heart “for doing better next time. Visit us often at AtlantaHomeConnections.com to see the latest Real Estate in Buford, GA and Lake Lanier Real Estate.