If you’ve been following the national news recently regarding the bankruptcy of Lehman Brothers, the stock market getting hit and Fannie and Freddie being taken over by the government, these are all the classics signs of the bottom of a market correction.

Right now, we don’t have so much of a real estate problem as we do a banking one. Prices have mostly stabilized across the country and in the short sale and foreclosure market we’re seeing multiple offers. Although I do believe there are a couple more banks in trouble and there’s not yet a full complement of mortgage products to satisfy all the buyers in the market, trust me that will get sorted out. For thousands of years lending money has been one of the most profitable businesses in the world. Banks make money by lending; not by deposits. So they will figure out ways to package loans and get cash into the hands of consumers. I believe this is the final cleansing process and in the next six months we’ll start to come out on the other side of this.

Make sure your clients don’t get caught in the “cudda shudda wudda” of taking advantage of this market. Make sure all your investor clients are fully aware of all the deals that exist and if there’s any way possible, see if you can pick up one of these real estate deals as part of your own investment strategy. We won’t know what the bottom is until after but I believe it’s pretty close. Keep your head down working hard.

It’s a good life!

Brian

On my travels this year, I’ve noticed a lot of people working harder than ever to make the same or even less money. And myself and the staff at Buffini & Company have been doing everything we can to try to encourage, motivate, challenge and train all of our great Members. However there’s one element that you must introduce regularly to your mental diet and that’s a good belly laugh.

Studies have shown its physiological healing qualities, researchers have analyzed its psychological benefits, however it just seems to me that at times like this there’s nothing like putting your head back and allowing yourself to have a good laugh. This was part of the thinking that went into the "Referral Brothers" skit Joe Niego and I did this year at this year's MasterMind. We had just received the first copies of our new book, Work by Referral. Live the Good Life! and we wanted to come up with a creative way not only to gift our audience with the first edition, but also provide some comic relief and allow people to throw their heads back and just enjoy.

So make sure you put yourself in an environment or spend time with someone you know will provide a good laugh. And if you don’t have anything planned for today, check this YouTube clip out and maybe it’ll do the trick.

Keep working, keep trying, and keep laughing.

It’s a good life!

Brian

One observation I have of our society at large today is the extraordinary lengths to which people go to avoid pain at all costs. It seems as though any discomfort must be remedied immediately. As markets tighten and the fed rushes to change rates, people feel the pinch and the government sends out billions in rebate checks, and the many borrowers who overextended themselves begin to use their house as an ATM, it can seem like the only solution to search for a bail out.

The real estate business is going through a time of challenge and stress but it’s part of the natural order of things. Prices go up, prices flatten out. There’s no inventory followed by too much of it. I’ve always said it’s a good life; not a great life. Sometimes we have to realize that part of this life requires us to endure discomfort and persevere through tough times, feel fear and all we can do it suck it up, put one foot in front of the other and do the best we can for that day.

Don’t look for someone else to solve your problems. Don’t wait for the market to correct. Don’t expect a government program to bail you out. As you persevere and push through you’ll be strong, better and more resilient on the other side. You’ll have a better business and be more equipped for life.

It’s a good life!

Brian

Inman News just reported the first decline in NAR membership since 1998. From 1998 to 2007 membership was up 89.6%. However, there are 100,000 fewer members today than there was 12 months ago.

This is just the tip of the iceberg.

People who got into this business because they thought it was easy money and not a lot of work have now woken up to the fact that it requires determination, perseverance and a whole lot of character. I expect that this business will lose 200-250,000 agents in the next two years.

Although I don’t wish hard luck on anyone, I have too much respect for this business and what it takes to be a true professional to feel bad about people who came into this industry, stuck their toe in the water, and treated it like the gold rush without truly making a commitment to their clients or the good name of this industry.

It’s time for all of us who view this as our career and profession to knuckle down, work hard and be there for our clients who need us more than ever before. For those of you who make the cut, your market share will increase and two years from now, you’ll have a business you can be proud of.

It’s a good life!

Brian

With the news media in full throttle, using terms such as “MELTDOWN”, “CRISIS” and “RAVAGED” to describe our industry, it’s easy to understand why buyers and sellers feel a little skittish. With terms like "recession", "stagflation" and "global slowdowns", it’s easy to understand why so many people lack confidence in the market.

News flash! More millionaires are created in downturns than upswings.

Bulletin! The goal of economic gain is to buy low and sell high.

This just in! While your competition is shrinking and pulling back, this is the time to strategically grow.

At times like this, you need to lean into the most innovative and creative parts of your nature, let out your inner entrepreneur and build a plan for success.

Nelson Rockefeller was, in his time, the wealthiest man in the world. He stated that the time to buy real estate was when the blood was flowing in the streets. That was as true for the turn of the 20^th century as it is today in the 21^st. This is what opportunity feels like; lean into it, embrace it and conquer it.

It’s a good life!

Brian

In 1974, Morris Albert recorded this Grammy award winning song. At that time, it was considered one of the most strongly emotive and moving melodies. As time has gone by, when viewed in hindsight, the same lyrics that won a Grammy have often been lampooned as the sappiest song ever written.

Whether you like the song or not, feelings can be very dangerous for your business. In today’s market, there are lot of emotions; fear, anxiety, frustration and regret. Maybe you don’t know where your next commission check is coming from. Maybe you’re consumed with fear about where the economy and this market are going. Maybe you’re dealing with frustrated sellers who constantly focus on how much their home used to be worth as opposed to what’s it’s worth today. Perhaps you even have a ready, willing and able buyer who’s just afraid to pull the trigger because they don’t want to pay too much for a house.

The answer for a professional is to manage their emotions by keeping perspective. You need to know the historical trends of this business, how good of an investment real estate is (check out www.housingmarketfacts.com), and keep track of your own daily activities so you know you’re doing your best each day.

Feelings are great things. They let you know you’re alive. Personally they deliver the highs and the lows of the human experience. When it comes to your business, feelings don’t help at all. Manage your emotions, manage your business and manage your success.

How many calls, notes, Pop-Bys and business to business meetings are you having?

It's a good life!

Brian

Recent data distributed by Realtytrac, a company that compiles data on home foreclosures, showed that foreclosures are not a national crisis, but more of a regional problem.

There are pockets, places such as Stockton, CA and Las Vegas, NV where the foreclosure rate is in excess of 4%, however, the national average is 1.033%. Considering the fact that 30% of all homes are actually free and clear of any mortgage, the true foreclosure rate is actually seven tenths of 1% of all homes.

Although the media loves bad news, organizations such as MSN, Time Magazine and others are now starting to report factual data such as this to give the market some perspective. They whip everybody up into a frenzy and are then able to present a counter balance story. Either way, know your facts, know your numbers and give your clients perspective.

Great sources for data on the web are NAR, AARP and MSN Money. In print, check out Realtytrac, Swanepoel Trends Report, and Money Magazine. I’ll also be doing my best to distribute solid data so that you can keep perspective and help your clients do the same. Keep your head down working hard.

It’s a good life!

Today, many of you are dealing with clients who are hesitant about getting into the market, or wary about moving up to a new home. The reason these people are on the fence is because they are afraid of paying too much for a house. They feel like they’re at a store and want to make a purchase, but they’ve been told the store is having a sale next month. Fact is nobody knows where the bottom of the market is. We’ll only know after it has already corrected itself and is on the way back up.

Ask your clients why they are buying a home. Determine what their motivation is and help them through any concerns they have. Let them know that now is a great time to buy because:

• There are a lot of homes for sale which means buyers have many choices and they’ll be able to find a home they really love.
  
• Prices have adjusted approximately 12% - more in some markets, less in others. So let your buyers know…the store has already had its sale!
  
• Interest rates are good.

Waiting often doesn’t pay. Buyer opportunities have never been better so help your clients build long-term wealth with a home and watch your own business grow at the same time.

It’s a good life!

Brian

I’ve always had fun with technology over the years; I appreciate its possibilities, and am excited to be moving into cyberspace with this new blog. This space will be a great opportunity for me to connect with you on a more frequent basis and to share some of my thoughts on business and the market. It’ll be a new dimension to our relationship.

If you’ve ever been to one of our nationwide events, you know how strongly I believe in cultivating relationships as the way to build a rock solid business. Relationships are the cornerstone to working by referral and the surest path to a long-lasting and fulfilling career.

This blog will be somewhat conversational and written in more of a stream of consciousness. If you’re interested in receiving it automatically, click on the RSS Feed button at bottom right and you’ll receive the blog automatically as we update it.

So I’m glad to finally join the blogosphere and keep in touch on a regular basis.

It’s a good life!

Brian