Notes on Real Estate

“President George W. Bush declared June, National Homeownership Month as a way to encourage public and private entities to increase minority homeownership. In support of this initiative, MAAR is leading programs and events in honor of National Homeownership year-round. Initiatives includes, first ever local Home Ownership Fair (April), MAAR’s Foundation grants contributions (Aug/Sept), launch of Emerging Markets Homeownership Initiative (end of June), At Home w/Diversity certification, Habitat for Humanity project (Sept/Oct) and more.” (MAR report)

So, whether you like W or not, one must applaud this declaration. Now, nobody can say he never did anything right (unless you figure he waited too long to do it). I personally believe that there are smart people in government who recognize how much a healthy vital real estate market is to the overall economy.

In the latest assessment from Popular Science Magazine Minneapolis ranked # 1. “These rankings were based on 36 measures that fell into six categories: transportation, connected citizens, education, medical, jobs and energy. Minneapolis took the top rank because it performed well in all categories, and was especially strong in its use of technology in the transportation and energy fields. Rounding out the top five overall were Atlanta, Washington DC, Boston and San Diego.” Source: Business Briefing, Minneapolis Regional Chamber of Commerce

It’s often all about infrastructure. When Tolstoy wrote his Fall of the Twenty One Great Empires, one of the three causes for decline was erosion of the infrastructure, though he didn’t use that precise term. Although we see other troublesome areas of potential decay, a healthy economy that has some of its foundation in the provision of shelter via home ownership gives a positive prognosis. When an economy is supported by its technological advances and stabilities, and when they are measured in terms of how well they support the six critical areas mentioned above, being number one in that area is a very good thing. Equitably, this sort of stability also becomes the underpinning for the support of a healthy housing environment.

Since I started this real estate business rolling two years ago, my wife, Shelley, has been the hub of the wheel. She really likes to do many of the things I hate to do, and the same holds true in reverse. She’s a great administrator. She’s also an Internet goddess. My web site is usually #1 in Yahoo when you search Minneapolis real estate, and we’ve maintained that position in three other search engines. Shelley has made that happen.

There are limitations, legally as to what she can do as my assistant without a Realtor license. For example, if you call up and ask the price of a home we have listed, she can’t tell you. (Well, she could say, “If you look on the MLS listing via our web site, you’ll see that the home is listed for…” But that gets strange.) She can’t hold an open house. She can’t help you fill in a purchase agreement. It makes sense that non-realtors should be restricted from doing most of these things.

Not so long ago, I remember her saying to me, “I sure couldn’t be a Realtor. I could never do the things you do, all the phone calls, rejections, and meeting people at odd times of night at some of the places you have to go.”

That was then. In large part, our new association with Coldwell Banker Burnet’s Minneapolis Lakes Office had a major influence on her change of heart. Nothing against Camden Homes; I am forever indebted to Tom Bain and broker/owner Tom Svendsen for their tutelage.

The dynamic of the Lakes Office is something else again. We are in an office with over 300 agents, reputedly the biggest and largest dollar volume office in the country (and if it’s not, and there’s a top 3, we’re in it), and yet we can chat with the heavy-hitters as if they were old friends, go to weekly meetings where the tremendously successful come and share their perspectives with us, and its an office where the office managers and office VP treat us as if we are as important to them as the people doing million dollar listings. From day one, Shelley, as my assistant, was treated with full and equal respect, her name on the in-boxes, her phone calls with questions or needs given 100% consideration. She said she would not have made the decision if it were not for the positive energy and ambiance of the Lakes Office.

So, when she said to me a week ago, “I think I want to get my license,” I was thrilled beyond words. Shelleys’ getting her license will add to our ability to generate business and serve our clients geometrically.

After searching high and low, spending money to use and evaluate, we believe we’ve found the Internet lead generating company that really works. It’s so good, I’m not naming it here. We “bought” the Southwest Minneapolis territory. It’s a big chunk of town, and includes the east edges of Lakes Harriet and Calhoun, plus twenty two neighborhoods, including what you would think of as Washburn and Southwest High School districts (my old stomping grounds). It’s exciting because we get many people from out-of-state who need help and guidance in matching their needs to a neighborhood. 70 + percent of the people who are shopping for homes go to the Internet first – that’s today’s market place, and we’re in it. Selling your home? We’ve got the hungry buyers. It’s sort of like computer dating.

Consequently, our new slogan is going to be, “Your Expert Home Matchmakers.” Any thoughts on a logo?

It didn’t happen suddenly, although some folks feel like it did. Continued favorable interest rates and a strong new construction market has leveled the playing field, put a stop on the over-zealous inflation that has real estate gurus still chirping about “bubbles”. In some parts of the country, the stop has been brutal, a blow to the solar plexus of folks who were dreaming of some non-stop, dizzying escalation of their homes’ value (emphasis on “dreaming”). In other areas, I believe like our own, it has been more gradual. Don’t expect a bidding war on your house. Don’t hire a Realtor based on who tells you your home is worth the most (versus makes an actual market comparison). Realize that in a stabilized market, if people are paying less for your house, then you will be paying comparatively less for your next house.

I’d really enjoy answering any real estate questions you might have. I think that would be a great addition to this newsletter. I get real estate newsletters via the Internet that have Q & A sections by their “experts”, and they deal with real issues of concern, from home maintenance to selling and buying tips to… well, everything. I’m not an expert, but I know where to find the answers, and I have had a great many encounters with situations that might give me the ability to provide some insights. As far as giving an opinion goes… turn me loose!

That’s it for now. Except this:

1. If you have interests or questions, please e-mail me or give me a call.
2. Check out my website HERE

The opinions expressed in this newsletter are solely those of Tom Crone and others being quoted and do not necessarily reflect the opinions of Coldwell Banker Burnet or its affiliates.