Dear Ms. Combs (NAR Pres), can I suggest a new focus for NAR? It will help everyone in the long run and help the deteriorating Realtor image.
Have a campaign around: “Is Buying Right for You, Right Now?”

Here is the email sent to Realtors today:

Dear REALTOR®, I am pleased to announce the launch of the 2007 Public Awareness Campaign. This will be an exciting year, highlighted by the integration of the “Buy Now/Sell Now” messaging into the already successful Public Awareness Campaign, and an expansion of the campaign, keeping REALTORS® top-of-mind with consumers through radio and television placements from January through November. I hope you’ll be pleased with the results. I wanted to give all of our members a special preview of the 2007 campaign materials. This e-mail includes links to the recently redesigned Public Awareness Campaign Web site, where you can view and download the new campaign materials, see the 2007 media buy schedule, and learn about the 2006 research results. This year the campaign aims to drive business directly to REALTORS® with a new call-to-action, “Every market’s different, call a REALTOR® today.” The campaign speaks directly to today’s home buyers and sellers to convince them that REALTORS®‘ expertise and experience are invaluable in the current real estate environment of increased inventories, stabilizing prices, and historically low interest rates. The campaign will begin airing nationally January 15 on network television. Radio will follow three weeks later. To view this year’s new materials click here. To view the 2007 media schedule click here. To view the 2006 research results click here. The campaign includes Web banners, presentation materials, and other resources that you can use to enhance your business activities, so please visit the Web site, and share the campaign with your clients and colleagues. Thank you for your continued support. Sincerely, Pat Vredevoogd Combs, ABR®, CRS®, GRI, PMN 2007 NAR President

The link goes to a page showing a family and reasons for it being a “Good Time to Buy” and another ad saying “Know How to Sell”.

First note that the email says “Buy Now, Sell Now” but the ad does not say it is a good time to sell. Instead they focus on what you need to know to sell. It would have been just absolutely nuts if they really had a TV spot on why you should buy, while another spot says you should sell now.

I think NAR needs to change their mission statement. Instead of selling the “American dream” and convincing people to buy without disclosing all the bankruptcies, potential net worth liquidation, they instead should have a campaign of:

“Is Buying Right for You, Right Now?”

And continue to go over the PROS and CONS of buying. Not just perpetuating the PROS and ignoring the risks, or mumbling them under your breathe. I take a different approach with my clients. I play devil’s advocate. I try and talk/scare them OUT of buying or at least fully digest the risks. If they survive that and still want to buy, great, I’ll help them.

Will this new ad finally convince those on the fence to buy? Discuss…

- Written by Frank Borges LL0SA- Broker/Owner FranklyRealty.com
703-827-4OO6

Click for PDF of ad

The ad talks about the benefits of buying today, yet it says “or sell”!

Here are the benefit of “buying or selling” as explained
in the ad:

1) INTEREST RATES NEAR RECORD LOWS
Frankly comment: While rates are low compared to the last 40 years, rates are higher than just a year or two ago. As a percentage as much as 50% higher with ARMs! So the buying power for a $600k house is now about $400k for a buyer using a 5 year ARM (note that the 5 year ARM is about the same price as a 30 year fix, so far fewer people are buying ARMs). On the flip side, will rates go up more? If they go from 6 to 7%, it isn’t a 1% increase, it is a 16% DECREASE in buying power. So this point DOES have some merit for a reason to buy and should be considered.

2) LARGE INVENTORY WON’T LAST
Frankly comment: Ok, so there are a ton of homes on the market. And since it is taking longer to sell, there are MORE homes every month (excluding seasonality). They aren’t going anywhere (except delisting if sellers don’t get their price and decide to rent). I disagree with the notion that you should, “hurry up the market is flooded with inventory that will go away soon.” Actually I think that is kind of silly.

3) PRICES OVERALL HAVE STABILIZED
Frankly comment: I don’t believe these numbers. In part because they don’t include the seller subsidy, which is now near 2%! (up from nearly zero 2 years ago)
I continue to see prices drop. Buyers need to make sure they are aggressive and getting a great price to help shelter any possible further decline.

4) POSITIVE OUTLOOK
Frankly comment: Uncertain. There are 5 reports that show houses will decline for the 5 reports that show they will increase. I don’t see any immediate and significant bounce upward. Overall, the economic outlook is strong.

5) REAL ESTATE IS A GREAT INVESTMENT
Frankly comment: True, as long as you
a) buy aggressively getting a great price and
b) your horizon is long enough.
If you have a horizon of over 10 years, if history repeats itself, there has never been a decline. But 10 years is a long time. You MUST be prepared for the “what if” you need to sell early and “what if” prices go down. Can you absorb that? And watch out for the “I’ll just rent it” excuse.

6) DON’T DELAY
Frankly comment: Don’t try and time the market. If you buy for the right reasons and with a long enough of a horizon, you should be fine. As for the “Don’t Delay”, I would agree with that……….. NOT.

How can you have an ad that says it is a good time to buy and a good time to sell at the same time?

No wonder T-Mobile made fun of us with this TV ad:

(note that they talk about “Real Estate Agents” and not “Realtors”, I’ll let you figure out the difference)

I have sent an official complaint to NVAR (local) for embracing this ad.

• Their reply was: “Thank you for your feedback and suggestions.”

I have sent an official complaint to NAR (national) for creating this ad:

• Their reply was: “Actually, the word I have is that the ad is tremendously effective and highly popular. Sorry that we dont agree that more buyers will make it a great time to sell as well as buy.”

So in case you didn’t read the NAR response carefully, they are claiming that there are more buyers now and thus a great time to sell. Does that clarify things for everyone? Is this ad more clear?

Please post your thoughts on this ad. Does it make sense to you to advertise that it is a good time to buy and sell? Meanwhile only listing benefits for buying?

- Written by Frank Borges LL0SA- Broker/Owner FranklyRealty.com
703-827-4006

Videos at YouTube.FranklyRealty.com
Keywords: Housing bubble? Arlington, Alexandria, MLS, MRIS, homesdatabase,
Homes, Real estate, Virginia, Alexandria, 22201, 22314, Fairfax Va, DC Realty, Realtor