Notes on Real Estate

My new designation as a Certified Negotiation Specialist via the Coldwell Banker Burnet Continuing Education program. I've been interested in negotiation skills for many years, as they are complementary to both interpersonal communications skills and judo. I've taught interpersonal communications to corporate folks over the years; and as many of you know, I'm a lifetime judo aficionado.

Judo is all about yielding, giving way, using the other person's power against them while economizing and reserving your own strength, using it as the situation dictates. Is that negotiating, or what?

I believe among the paramount skills a REALTOR® can bring to the relationship are negotiating skills. Spouse Shelley is designated as an E-Pro, which puts her at the top of the mountain when it comes to both garnering leads and marketing for our clients. Once the game is afoot, most realtors are armed with the same tools. Being associated with a powerhouse company like Coldwell Banker Burnet is massively advantageous for our clients. Above and beyond that, ask yourself what other major skill could a REALTOR® bring to the table. Negotiating certainly tops my list. Without these, many REALTORS® are relegated to becoming mere messengers between parties.

Long ago, I read "Getting to Yes", authored by one of the principles of The Harvard Project on Negotiating. I've looked at just about everything out there, including the University of Notre Dame's Mendoza College of Business Executive Certificate in Negotiation. Most of these programs are simply high- powered and "hands-on" interactive versions of the same stuff. It was a bonus to take a course that was real estate specific.

Speaking of Judo…

REALTORS® are among the most at risk of professions. Police, active military, and prostitutes, who are still the number one target of serial killers, top the list. Late night convenience store attendants and taxi drivers fit in here, as well. All of them are aware of the risks of their jobs. REALTORS® are guilty of some naiveté, denial, and in the case of far too many of the men, overly macho. Still, they meet total strangers at houses, sometimes vacant ones, hold open houses to a parade of strangers, and meet unknown people at their often deserted offices and elsewhere on a regular basis. If that doesn't satisfy a predator's shopping list, what does?

The class provides enlightening information to enhance awareness and alertness, as well as 90 minutes of practical, doable self-defense techniques that the students get to physically perform, in class, and which are easy to remember, take home and practice. They can follow up, if they desire, by attending my Friday Noon Japanese Jujitsu Class at Warrior's Cove in St. Louis Park (open to the public).

Things are not as bad as some people (many media columnists / reporters in particular) would let on. Interest rates are still low. If they go to 6.9%, as some experts have predicted, that's still darn good. Remember, it's a teeter-totter. When rates go up, prices go down, and visa-versa. It's the old equation, multiplier, multiplicand = product. The idea is to look at the big picture, the thing after the =.

  Monday, Feb 26, 8:34 AM ET: Former Federal Reserve Chair Allen Greenspan said the U.S. economy has been expanding since 2001 and that there are signs the current economic cycle is coming to an end. He points to signs indicating a potential recession, although it may not come to fruition until 2008. Greenspan also said he has seen no economic spillover effects from the slowdown in the U.S. housing market.

So, if there is a slowdown in the economy, let's see how many pundits endeavor to point the finger at the real estate market.

Home prices are adjusting downward, as a buyer's market takes a grip on its side of the equation. Anybody who doesn't like a balanced market, where fair prices are asked and reasonable accommodations to the deal are reached (via negotiating – couldn’t resist that), is a little unbalanced themselves, in my never humble opinion.

Note that the media, unable to complain any more about overpriced properties and having seen its "bubble" flatten rather than burst, is sharpening its knives on mortgage fraud, foreclosures, supposed unfair use of the Multiple Listing Service (MLS) by those who in fact created it in the first place, and any other alarmist item they can find. Again, in my never humble opinion, those things which created mortgage fraud and foreclosure vulnerability were the action of criminals, not the standard real estate broker or REALTOR®. If the media wanted to truly serve its readers, listeners and viewers, it could have started informative and cautionary reporting long ago.

Since the buying and selling of real estate is such a critical and financially massive part of most people's lives, I'd like to recommend we make it part of the required high school curriculum. Consumer Real Estate Skills 101-A. The field trips would be a lark.
Of course, the result might look more like this. Never mind!

What Kind Of Solution Is this?
Housing Solutions Act Increases State Deed Tax rate by 50%

* Time to Tell Your (REALTORS®) Sellers more BAD NEWS!
* Act raises the cost of housing during a market downturn. Your Minnesota State Senate is considering an increase in the State Deed Tax in a bill referred to as The Housing Solutions Act - SF442 (Cohen; Anderson; Marty; Skoe - DFL). The bill would increase the state deed tax rate by 50% costing the typical Minnesota Home Seller upwards of $1,000 just to transfer their property in Minnesota.

Maybe there is a need for sellers to pay higher taxes when they sell?

That is what the Affordable Housing Lobby is going to be telling your legislators next week. They believe that your (REALTORS®) sellers should pay higher taxes in order to help them fund a host of "Affordable Housing" programs, including one that helps those "poor Minnesota families" that earn up to $63,000 - $85,000 a year.

Deed tax makes housing LESS affordable.
Deed Tax is Regressive. The deed tax carries a heavier burden on lower income individuals.
A Deed Tax increase does nothing to fix the structural cost drivers of housing.
Deed taxes are non-deductible, unstable and unaccountable.

So, if you're chatting about the state of real estate around the water cooler, don't forget to add these tidbits of accountability.

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.