“Three years ago, Phoenix could have put a sign for sale in front of a cardboard box and sold it.” Jay Thompson, a real estate broker at Thompson’s Realty in Phoenix, Arizona, says.
Of course, today, in both Phoenix and the rest of the real estate industry, things are a little different. But the phoenix will eventually rise from the ashes. And Thompson is a brave survivor, for good reason. He started his mediation in 2008 on the last day of the desperate real estate bubble. The industry hung itself, just as he hung his first single. But Thompson saw it coming.
“What goes up and goes down,” he says. But I think we are now bouncing along the bottom. The question is how much it bounces along the bottom.
“We had a home value that was rising 50-60% each year. It’s unsustainable. You can’t lengthen it. I can tell you dozens of stories. You can. People deposit a lot of deposits to build a new home and look back and sell it-sell a lot-the home hasn’t been built yet-and will make $ 30,000 to $ 40,000 in two months. Anyone with half the senses would have seen it come. You knew it had to pop. “
The recent momentum may not be a bit enthusiastic, but Thompson keeps his cool and keeps his door open by remembering the old school rules.
“After all, people are still buying homes,” he says.
He survives well throughout all the dramas. How?
“There are three things to sell a home,” says Thompson. “Price, place, condition. You can’t do anything about the location. The house is where it is. It gives the seller two levers: condition and price.
“You need to aggressively price your home, but you have to be realistic and overcome the idea that” my home is the best home in the neighborhood. ” I think everyone has the best home in the neighborhood. Not all of them can be the best homes in the neighborhood. So you have to price it correctly.
“At least in our market, the condition should be as perfect as possible. It may be trivial: wash the windows. Clean the carpet. Tidy. These old standbys Everything is very important in this market.
“At least in the Phoenix market, many are old schools. They are very high in stock, lacking foreclosures and sales. And whether you admit it or not, you are competing with your neighbors. His house was vacant for six months because it was seized.
“So small things like curb charm are huge. Curb charm has always been important. With 47,000 lists on the market these days in Phoenix, your home needs to stand out. That’s the charm of the curb: condition. “
The advice may seem simple, but surprisingly many sellers don’t take this into account and lose the game before they start playing.
“It’s all about education,” says Thompson, emphasizing the importance of learning, especially for first-time homebuyers. “You need to understand everything you can do about how real estate works. I don’t care what market you are in.
“Many of the people I know don’t handle. A process means the steps you take to buy a home, get a loan, and buy a home. You need to understand the dynamics of the market. They must understand that their homes are not going to be automatically grateful through the roof.
“For first-time homebuyers, it’s hard because they think,” If you buy this home now, it’s worth it in five years, you can sell it, and you can buy a bigger home. ” Well, maybe not. That’s where I think a lot of people got into trouble during these ridiculous gratitude preparations during the boom. People started using homes such as ATM machines and refinancing. Therefore, education is very important for everyone, especially for first-time homebuyers. “
The challenge he faces on the other side is the unrealistic seller. He states: [seller] “A year ago, my neighbor sold his house for $ X!” And I say,’Well, that was a year ago, $ X doesn’t matter. It doesn’t matter what happened a year ago anymore. You have to see today.
“It’s hard to get sellers to realistically understand the value of their home in this market. It’s getting a little better because there are lots of media and media outlets about the market, but people still don’t want to believe it. [their actual home value].. Convincing people of the true market value of a home is probably the most difficult task we have when it comes to selling. “
Real estate professionals are strongly encouraged to the power of the internet and the vital importance of social media to maximize sales and communication. Young agents know this through penetration, but some experienced professionals are having a hard time warming up to this strange new digital world. Thompson discovered the Internet early, but most of the industry was still looking at hardcover list directories.
“Before real estate, I was in the semiconductor manufacturing industry, a very technological industry,” he says of his life in the early days of the digital age. “I have been transferred several times and was very dissatisfied with what I couldn’t find on the internet. [real estate listings]Because I was an internet guy.
“So when I’m transferred, I’ll say,’Now, let’s go find a house. Let’s find an agent.'” I lived in Austin and intended to move to Phoenix. I was shocked at how few I found on the internet.
“Then, the semiconductor manufacturing industry was hit by a big recession. I just fired people and closed the factory, knowing that I was in human resources and it was only a matter of time before I was fired. That was when I decided. I’m tired of working for the guy. I’m going to get a real estate sales license. And I’ll be internet based. “
“I said so from day one, because I know there is a need. And that didn’t mean there wasn’t real estate on the internet. There were some, but that’s to me. It makes sense. I talked to many real estate professionals who knocked on doors, chilled postcards and newsletters, and mailed them, but I thought this wasn’t efficient at all. So I started building my first website before I got the license. I taught myself HTML. I’m not a coder or a developer as far as I can imagine, but basically a template I learned how to operate it and built it.
“Then I started blogging about five and a half years ago because I always liked to write and needed a place to write. I thought blogging was perfect for that. Writing a blog about real estate. In 2005, there weren’t many real estate blogs. A few, but not so many. You really had to look to find a real estate blog. And probably one since you started it. Years later, it just started to take off. Taking off means getting leads, contacts, and prospects from there. ” [The Phoenix Real Estate Guy]
The result was a real estate adventure that included just a few of everything Phoenix had to offer.
“We sell whatever we can do in this market,” he says. “It’s all about reselling homes. His wife and I used to do land transactions. [now] The land is dead here. Therefore, it is usually a resale and sells anything from a $ 40,000 condo to a $ 700,000 home. And everything in the meantime. “