I started a small marketing company in 1996, leaving behind the fascinating and glamorous world of retail and restaurant management. I was 25 years old, and I was tired of working for someone else. Much of our focus for my fledgling venture was on selling marketing and printing services to real estate agents. I quickly realized that many of our customers were making really good money, and some (most?) of them weren't even that sharp. Real estate couldn't be rocket science, right?
Right.
The truth is, real estate isn't all that difficult, as long as you understand a few key concepts, namely:
- It's an emotional decision when someone buys a house, whether it's their first or their 51st home.
- People want their agent to communicate with them....often.
- It's important to be flexible. Things don't always go as you might think they will.
- It's critical not to take things personally. Some "clients" will take advantage of your time and expertise. Period.
But I digress. I have a larger point I wanted to make here.
I was thinking about the current apparent upswing in our market, at least here in Austin, and the old advertising and marketing adage certainly applies to our industry:
Perception Is Reality.
What does this mean, though?
Well, in the world of marketing, it means that whatever your potential customer or client perceives to be the truth becomes the truth about your business. If you're considered to be reputable and service-driven, your business will likely grow accordingly. Conversely, if your company is known to be filled with ripoff artists, I'm sure you can guess what your long-term prospects will be.
There's one thing that I've witnessed for years in this business, and it's intriguing to me. I'll do my best to explain it within the confines of this post. Basically, our economy is simpler than pundits would have you believe. I don't intend to simplify it to the point of inaccuracy, but local and national economies often rise and fall based on one simple item: Perception.
If people think that the sky is falling, they retreat into their home and stop spending money. This applies to real estate, perhaps even more than the majority of other industries. I saw this most clearly in the wake of 9/11, when just about all non-necessary moves were put on hold for months. The stock market fell precipitously as well. Why? Perception. The infrastructure of our country wasn't destroyed, but people were understandably afraid, and it sent shockwaves through the economy.
Conversely, when the home buying public perceives that "things are getting better or "the market is picking up steam", they begin to buy again, or even to invest in property (side note: you might as well invest in real estate - it's better than any bank return out there today). When people spend, it magically gets better. Amazing, huh?
I'm not the type of real estate broker who always tells my friends and clients that things are going well. We've made it through a really rough patch and survived a downturn, and we're not out of the woods yet. Old-school real estate training taught me to always say, "Great!" when asked about how the market is going. I can't do that. I can now say, however, that things are truly busy for me right now, and I hope it continues.
Thanks for reading!
Jason:
Great post and excellent point. Have a super week.
Fantastic Post Jason!
I'm not the type of real estate broker who always tells my friends and clients that things are going well. We've made it through a really rough patch and survived a downturn, and we're not out of the woods yet. Old-school real estate training taught me to always say, "Great!" when asked about how the market is going. I can't do that. I can now say, however, that things are truly busy for me right now, and I hope it continues.
Soooo what do you say?
Perception of the market, seller side or buyer side, is very powerful Jason. People observe lots of things often incorrectly and the REALTOR armed with the FACTS can give them a better more realistic view of things.
Jason, I like this post on several levels - especially your layers of thought in the "perception is reality" segment. I too think it's important to be positive - but honest. Right on - Dude.
Jason, good post; perception is really important in the way we communicate too.
Hi Jaon,
This is a a very good post. Perception is Key in our business. Also learing how to be a good listener.
Jason - While perception and reality coincide to human kind, the "truth" for us real estate agents is key to our success.
Perception can become truth. If enough people drink the kool-aid it can influence real life until it becomes true.
Jason, I truly believe if our media printed more of the uplifting stories people would believe that things are not as bad as they think. Yes, perception is everything.
Pippa - That IS what I say. :)
Loved the article Jason. I'm looking forward to when the perception shifts entirely to "Now is a good time to buy!" I am working to change that. My most powerful endorsement? I plan on buying a home in the next year.
☂My Lord Jason, you are so right 'on' IMHO - leave it to you; Our economy is simpler than pundits would have you believe. I don't intend to simplify it to the point of inaccuracy, but local and national economies often rise and fall based on one simple item: Perception. I'm going to the RE side of this point... IF our local news would stop reporting on real estate 'globally' it would find a common ground 'locally' And we all know it's local.
Jason - awesome post! I'm right there with you. Rose colored glasses really don't look that great on me. The harsh reality, whether that be good or bad, seems to be the perfect accessory in our business. :)
Crouch - Seems to me that the title of this post not only fits the context of the words that followed, but the very reality in which we live. I still listen to pundits from both sides of seemingly different worlds just to get my blood boiling enough to do 50 push-ups in between commercials. But the reality is The Media, in all its various forms, alters our perception. Probably more so than any Politician. I've grown to watch all that as I would an episode of Jerry Springer. My own perception and reality is what truly matters in this world I'm in. Plus, I'm not entirely sold on the idea that we don't just love watching car crashes, lions tear into men, and lives destroyed ... as long as it is not us.
As far as Real Estate, if it ain't (you love that word, I just know it) Local ... it probably is not an accurate reflection of anything. What is happening in Allentown may be entirely different than what is going on in Austin. Live accordingly, my friends ...
and I'm glad things are busy for you:)
So true. I also was advised to respond "Great," when asked how the market is. But I can't do that either, because it is not true. I want to have some credibility. I could say "unbelievable," which is true.
Jason, my market maybe seeing some light at the end of the tunnel but not much. I do like your outlook.
Sardi - I couldn't agree more. You probably won't remember this post of mine (both because it's among 1100+ others, and it was written three years ago), but I once compared the media to rubberneckers on the highway:
Please Don't Read This Post! - that's the actual title, by the way. :)
Sandy - I thought of that "unbelievable" response, but that seems misleading, since it's synonymous with "Great!". I heard a trainer mention that years ago, but I'm just too darn honest.
Jason, so rightly said - perception is reality. Some buyers run away with a small non-existant fear or a comment on CNN - and if we can prove it otherwise, they'd still go ahead. As long as we make them 'percieve' the 'reality'...
Jason, you made some great points here. Perception is so important in this business
Jason...this is an exceptional post. Most of the comments have been about the "perception is reality" portion which is right on the money.
We also like the four key concepts you discuss at the beginning. The only thing that we are beginning to see a bit differently is that we are seeing many buyers who seemed detached from the "emotional" component of their real estate purchase. There seems to be a lot of buyers out there who are more driven by "trying to get a deal" rather than their emotional tie to the property.
It's actually amazing how true this is- my reality, your reality, and the incredible difference in them when we just view the fcts. I have clients that think a recovery is a week away, and other that I have to talk off a ledge. And yet, a few good and bad events in their worlds could have them switch places.
Good stuff, Jason. Thanks for the great list of things people perceive, and I've seen them in my own business. Keep posting!!
Jason, you make an excellent point. Perception is why the media has a large impact on the public.
The last time I looked the country was a pretty big spread. So markets vary. The gloom and doom may be heavy duty in your market. But in another smaller safer rural market it is even more attractive, moving. Regardless of the market you are in, blogging with a far reaching voice and indicating the way it is in your market applies to the rest of the red, white and blue needs to be qualified. But public relations dictates to find the good in the market that is and stay positive. Promote, keep moving and don't get depressed or bogged down. Too much of that on line, on air.
This is so right on! This is one reason in healthy markets that we have to constantly bombard our local media outlets with the facts. Otherwise, they will just piggyback the "doom and gloom" housing market "news" that their national parent organization is spewing!
Andrew - While I appreciate the input, I think I would be hard pressed to remember the last time you commented on a post without disagreeing with me in some form or fashion. Where in this post did I indicate that the way it is in my market "applies to the rest of the red, white and blue"? You might consider reading the post a bit closer before you make comments like this. Perhaps you expected me to say something that I didn't.
I agree with all the commentors above that mention the "doom and gloom" view espoused by the national media. I've said it before, I'll say it again ... the fact that we have 24/7, 365 days of the year coverage has hurt us mentally in regards to this recession. Too much time and "airwaves" to fill. And "doom and gloom" is so much more sensational and reaps more dollars. Local news provides some relief from that and at least provides some pockets of positive. Our country is depressed mentally ... we need a good dose of positive more often to heal us ...
Gene
Jason, I was a little late in reading this, but went to hit Suggest and Voila, it was already featured!!! Yea. You said all the right things in my mind. I DO believe it's simple, and I will most definitely use your simple term of perception. This is why I don't buy into the stock market because others' perception of the world economy sways their need to take my money and I don't have control over that. I have ALWAYS believed in real estate, and ALWAYS WILL.
I am hearing that Texas has been in an upswing...I'm hoping for it to infiltrate back my way. I have made it through the last four years, a time when many others bailed and that's when I STARTED-Ha! It'll come back. The ole pendulum.
Im a little behind in reading. Was going to submit for feature, but I see thats already been taken care of... plus its been a few days now. Oh well, good post anyway.
Jason- Really good insights and reminder of how important perceptions are. The media and all the ways it now infiltrates everyones' life can certainly do a number on positive perception, so having facts and being prepared to back up comments with facts is all the more important.
Jason, I absolutely support & believe your views here. I think that we can have an impact and that it is a balancing act to work with people and their perceptions that they bring while also working with our own. Very refreshing to read & congratulations on the Austin market making the national news.
Excellent point!!!!!! thanks for the great list of things people perceive keep posting like this..........
Excellent point!!!!!! thanks for the great list of things people perceive keep posting like this..........