2009: Reflections in the Rear-View Mirror

I’ll probably do a ‘looking ahead’ post soon, but 2009 was an interesting year (for me anyway) and I thought I’d share a look back.

I changed agencies right around the turn of the year. I didn’t really talk about it at the time or since, because I don’t think most consumers really care. But it was a good change for me and I will share more about why soon.

The start of 2009 really scared me. From November 2008 through January 2009, homebuyers just plain disappeared. With the economic turmoil at the time, I didn’t blame them, but I wondered if I was being prudent by staying in the industry (so did my family!). But around mid-January, my phone started ringing heavily, and soon I began to wonder if I would need an assistant or partner to help me.

Whereas 2008 was more of a ‘listings’ year for me, in 2009 it was all about buyers. I showed over 600 homes through the year. My auto miles increased by around 10,000 miles over 2008. Most buyers wanted to be close-in — near transit or bike commute routes. That meant I didn’t spend as much time in the suburbs this year.

As an agent I had my best year ever in terms of clients and transactions, but it was also the most expensive year I’ve had, too. I earned a number of referrals from other agents and partners, who all received a sizable portion of my compensation. I’m working a strategy to earn more business ‘organically’ and raise my bottom line to something more manageable.

I did not close even one short sale transaction. All of my offers expired after at least 8 weeks of waiting for an answer from the lender. My buyers did not want to wait. In one case, the prospective home had a rain gutter overflow along the foundation wall and seep into the brand-new basement, causing a 4-foot high mold bloom in the sheetrock. Even though the bank offered an additional $7,000 discount, my clients walked away.

Every bank-owned property (REO) that I wrote an offer for (many) had multiple offers, and the winning bids were usually cash transactions with minimal inspection contingencies and quick closing timeframes. My clients, with their FHA financing (usually) had no shot, even if our offer was slightly higher than the cash bid.

Tighter lending standards and underwriting reviews added considerable friction to the process. Every transaction I had where a mortgage was involved was delayed by no fewer than 3 days, sometimes a week or more. In a couple cases, I had clients in moving trucks with no home to put them in. Everyone survived, but it wasn’t fun. Let’s just say I enjoyed working with clients in all-cash positions!

Around mid-year, one of my clients volunteered to participate in HGTV’s “My First Place”. While it was mostly a fun experience being on camera, it added tens of hours to the process of actually viewing and buying a home. At times I just wanted to take my clients aside for some productive, un-filmed conversation and advising. They started out looking at single-family homes, but ended up with a cool, modern-style condo — which shook up the storyline for sure. I’m not sure when the show will air, but I will let you know.

Late in the year, I was appointed to the RMLS Board of Directors and will be heading up the Technology Committee for RMLS. Looking forward to both of those roles and working more closely with the staff there.

On the downside, I damaged a potential client’s car in October to the tune of $550. My associates have urged me to tell that story here, so expect a post about that sometime. Worst Realtor day, ev-ah!

Things look good going into 2010. I have activity and transactions in escrow, even an offer to be written on New Year’s Eve. My business is more balanced between advising buyers and sellers, which I prefer.

The market will probably be stable through the first half of the year, but rates are predicted to rise and government stimulus programs will expire. And we need jobs, but that’s fodder for a New Year’s post.

Thanks for indulging me today, and for reading re:PDX this year. I look forward to the New Year. How about you?

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December 31, 2009 · Filed Under Forecasts, Market Activity

Comments

5 Responses to “2009: Reflections in the Rear-View Mirror”

  1. Parker Logan on December 31st, 2009 10:44 am

    I’m a huge fan of Ron Ares.

  2. Garron Selliken on December 31st, 2009 10:55 am

    PLEASE…PLEASE tell the story of the car damage. Quite possibly the best real estate fiasco story ever! and you tell it well.

    really enjoy working with you.

  3. Ron Ares on December 31st, 2009 10:58 am

    Garron,

    I’ve actually been contacted by screenwriters to turn that client meeting into a full-length, apocalyptic IMAX film starring John Cusack. Keep an eye out for it.

  4. Molly on December 31st, 2009 3:08 pm

    Ron, it’s been fun getting to know you this year. I’d love to send you a client referral and take a chunk of your commission!
    Happy New Year!

  5. Ron Ares on December 31st, 2009 3:32 pm

    Thanks Molly, likewise.

    I hope the paragraph about expenses wasn’t perceived as a complaint. I was thankful for the extra opportunities sent my way.

    And you’ll be the first to get my Columbia County business. Don’t plan on listing out there again!

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