Orange County California Real Estate Blog: June 2010

Who says California is a buyers market?

The media has made it very clear that California is in the midst of a huge buyers market in real estate. Foreclosures soar, short sales everywhere, prices plummet, houses sit. Although this is true, I still don't see a buyers market.

I have been a real estate broker for quite some time now, but I can't help but wonder what criteria is used to define a buyers market. Here is my perspective. My brokerage represents mostly buyers and we constantly find ourselves in bidding wars. It seems to me that every property that is priced at market, has multiple offers on it until we get up to the jumbo loan category. So what if prices are down, it's still a sellers market. The buyers are still at the mercy of the demands of the seller who can choose one of many offers it most situations. If fact, this market does not seem much different then the boom 4 years ago. The only difference is now people are upside down on their homes (which certainly does not stop them from selling them).

Can anyone share with me the reasons we are in a "buyers" market?

Oxford Realty

Good Realtors have GREAT relationships with lenders.

Two years ago, I opened the doors of my own real estate estate brokerage, Oxford Realty. Since that time I have been bombarded with calls from lenders trying to solicit business. They all want to "partner" with us. For a long time I was very skeptical of these people who wanted a piece of the pie ... for nothing. They all e o have higher ates or fees then discount lenders and I saw no value in partnering with them. I felt like I was cheating my clients by steering them to someone who charged more. Then I had a string of deals fall through due to mistakes or incompetency by the lender. I began to realize that there is so much more to a great lender than cheap rates and fees. The ultimate measurement of a great lender is ARE THEY ABLE TO CLOSE THE LOAN? If the answer is a confident YES, then you have a great lender! I now have a relationship with a lender who is amazing. His prices are fair (although not the cheapest) and his service is top notch. I would strongly recommend forming a partnership with a great lender once you find one.

Oxford Realty

What amI?

I have my California real estate broker license - but I am not a real estate agent. I help people buy and sell homes - but I am not a sales person. I own my real estate brokerage - but I am not a business owner. I have agents work for me - but I am not a boss... I am a teacher. My primary objective in every single one of those roles is to teach. 

I believe that if this is how I view each of the previous roles, I cannot fail. In fact, I cannot be anything short of exceptional. I believe that when you educate clients and let them choose what is best, you are beyond a sales person. You have empowered them to decide what is best for them rather than trying to direct them to a property that you think fits their needs. 

I believe that as a boss, my job is not to command. My role is to give my agents the tools and knowledge to be successful and then simply hold them accountable for the results. My role is to tell the agent where they are right now (point A) and tell them where they need to be (point B). I must define point B very clearly and with a lot of detail. Then I must tell my agents they can get to point B however they choose (while abiding by the ethics and values of the company). This takes me out of the boss role and puts me into the role of a teacher. The agents will use my expertise and be open to my ideas but at the end of the day, it is their own creativity and work ethic that will define their success. This is a very common and powerful technique used by some of our counties best classroom teachers. Studies have shown time after time, that students will achieve more, faster when a teacher uses this style of educating.

I believe that if you view yourself as a teacher, your clients will respect you more (more referrals), your employees will respect you more (harder work), and you wil be more proud of what you do ( greater sense of satisfaction from your career).

Oxford Realty

What is the MLS?

As a real estate broker, I sometimes forget that Realtors have their own language. Escrow, DTI ratio, pre qual, MLS, ECT... I was meeting with a potential client the other day trying to earn his business and list his home. I was explaining to him that my website offers free MLS searches for potential buyers. He stopped me mid sentence and asked "What is the MLS"? For a moment it took me by surprise. How can a home owner not know what the MLS is? But, as I explained it, I realized that it is actually quite complicated.

MLS stands for Multiple Listing Service and it is the electronic platform that real estate brokers use to share listing information with eachother. Properties that are for sale are uploaded to the MLS and can be accessed by other brokers who are representing a home buyer. Today, many brokers offer patial MLS access directly to buyers and sellers. It is an easy way to search for availible properties before you go out looking.

For a more complete explaination of MLS click here

Oxford Realty

Here are the top three reasons to purchase a house in Orange County this summer:

1. Prices are very low. Due to the high rate of foreclosures and short sales, prices are at historic lows in the Orange County area.

2. Interest rates are very low. Interest rates are the lowest they have been in many, many years. Currently, a 30 year fixed rate mortgage is under 5%!

3. California home buyer tax credit. It is a first come, first serve tax credit. It is worth thousands of dollars.

Oxford Realty