What Company Do You Work For?

Invariably, the very FIRST question I am always asked when I mention to someone that I am a Realtor is, "What company do you work for?"

My answer goes something like this:

• I don't work for "them", I split my commissions with and I pay my broker; my broker does not split his commissions with me and he does not pay me - I PAY HIM!  I am not an "employee" of the company, but am an independent contractor and sole proprietor. Unlike any other licensed profession (doctor, lawyer, CPA, Translator/Interpreter, etc) the real estate industry was set up whereby a real estate licensee or agent must be tethered to or affiliated with a broker and cannot operate independently, even though the licensee or agent is already licensed and meets all the safeguards and protections to the public that are required by a Department of Professional & Occupational Regulation.  

• The real estate broker company that I am affiliated with is not the one who is either going to be driving you around looking at houses if you're a buyer and writing the sales contract for you. The "company" is not the one who will be listing your home for sale if you are the seller.  The "company" is not going to come and take the pictures of your home, put up a for sale sign and a lockbox, tell you what the market value of your home is by conducting a Comprehensive Market Analysis (CMA) or "comps", and handling every aspect of your transaction all the way through closing.   The "logo" or the "brand" is not going to do all that.... I AM.

• What "flag" I fly under is completely irrelevant really. There is some minor value in the company name or logo; but the real value is MY expertise, knowledge and experience in the local market.   

• Now, lets talk about MY experience and MY professional background and why MY unique talents and skills make ME, the Realtor of Choice...  (regardless what name or logo is on my business card)

I fully understand why "brand" or "branding" matters, however.  A company's brand or logo is very important when it comes to tangible products like automobiles, watches, clothing, restaurants, etc because the consumer learns to associate those brands, logos or trademarks with a quality product. Conversely, the consumer or the public will also stay away from a certain brand or logo based on either actual, objective and empirical knowledge, or first hand experience with a product or company; or based on their own subjective perception of brand quality.

But how does "brand" or "branding" work with something intangible like a professional service?  

A Realtor is providing a professional SERVICE to you.  THAT is the "product" that you are actually consuming. 

The product is ME and MY services, and NOT those of the real estate broker franchise. People use me as a Realtor for and because of ME and MY services, and not for the services of the real estate broker franchise. 

What makes illogical sense is for a consumer to base their decision solely on what company name or logo is on a Realtor's business card. Furthermore, the real estate broker franchise name and logo on my card is NOT MY OWN but is someone Else's "brand" or logo. So, why should choosing ME be based on someone Else's brand or logo?!  

As Mr. Spok from Star Trek would say, "that's highly illogical"

Middle Class Homebuyers Getting Priced Out of the Market

Here is a good article below which describes the plight of affordable housing for even the middle class, let alone those who are marginalized.  This article reminds me of a news story in Fairfax County, Virginia a few years back when then Fairfax County District Superior Sharon Bullova headed up a task force on "boarding houses" particularly in the Springfield area and was obviously also "profiling" or targeting Hispanics.  While this is a valid zoning issue - why didn't Supervisor Bullova tackle the underlying problem of affordable housing instead ??!!  Treat the cause... not the symptoms Mrs. Bullova!!  (She does not have a college education or degree by the way)

The National Low Income Housing Coalition (NLIHC) publishes some great reports which breaks down what the "hourly housing wage" is in their "Out of Reach" reports. 

In Virginia, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,078. In order to afford this level of rent and utilities – without paying more than 30% of income on housing – a household must earn $3,592 monthly or $43,108 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a Housing Wage of $20.72.

In Virginia, a minimum wage worker earns an hourly wage of $7.25. In order to afford the FMR for a two-bedroom apartment, a minimum wage earner must work 114 hours per week, 52 weeks per year. Or a household must include 2.9 minimum wage earners working 40 hours per week year-round in order to make the two-bedroom FMR affordable.

In Virginia, the estimated mean (average) wage for a renter is $15.79. In order to afford the FMR for a two-bedroom apartment at this wage, a renter must work 52 hours per week, 52 weeks per year. Or, working 40 hours per week year-round, a household must include 1.3 workers earning the mean renter wage in order to make the two bedroom FMR affordable.

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Middle-Class Buyers Getting Edged Out?

Daily Real Estate News | Sunday, October 13, 2013

Middle-class home buyers are struggling to find enough affordable homes on the market as rising prices, higher interest rates, and flat incomes limit their choices.

More than half of homes for sale this month in 14 of the 100 largest metros were out of reach for middle-class home buyers, according to a new study by Trulia. The real estate company based affordability rates on a monthly payment — after a 20 percent down payment as well as taxes and insurance costs — that was less than 31 percent of the metro area’s median household income.

The number of affordable homes for middle-class buyers has decreased or stayed flat in 99 metros since October 2012, Trulia found. Rochester, N.Y., was the only metro to see a gain.

Places like Orange County, Calif., have seen the worst tightening of affordable inventory for middle-class buyers. In 2012, 44 percent of homes there were affordable to the middle class; that has fallen to 23 percent this year.

A big drop in foreclosures and lower-priced homes is a major catalyst of the shift. The percentage of existing home sales nationwide that were distressed properties selling at discounts has fallen from 23 percent last year to 12 percent as of August, according to the National Association of REALTORS®.

Though housing affordability for the middle class appears to be the most problematic in California, other metros are also seeing affordability lessen by big margins. In Boston, middle-class buyers now can afford 41 percent of homes on the market, down from 53 percent last year. In Denver, the percentage has fallen from 70 percent to 55 percent. Seattle has gone from 66 percent to 55 percent

The following are the markets with the least number of affordable homes for the middle class, according to Trulia’s study:

1. San Francisco
   Percentage of homes affordable to middle class: 14.2%
   Maximum affordable home price: $409,000
2. Orange County, Calif.
   Percentage of homes affordable to middle class: 23.1%
   Maximum affordable home price: $373,000
3. Los Angeles
   Percentage of homes affordable to middle class: 24%
   Maximum affordable home price: $271,000
4. New York
   Percentage of homes affordable to middle class: 25.3%
   Maximum affordable home price: $274,000
5. San Diego
   Percentage of homes affordable to middle class: 28.4%
   Maximum affordable home price: $309,000

Despite the drops, overall housing affordability nationwide still remains high historically. In 40 of the 100 metro areas, 70 percent or more of the homes remained within reach to middle-class buyers. Also, home prices remain 5 percent undervalued based on long-term price, income, and rent levels, Jed Kolko, Trulia’s chief economist, told USA Today.