The horrific events that took place on September 11, 2001 have deeply effected us all. Many of us have taken this opportunity to reconnect with loved ones, friends and neighbors—and we’ve all been grieving our nation’s enormous loss together. This is also an important time to contact current and past clients, in order to offer support and service if they are needed. Current clients need reassurance from you at this time and both current and past clients will appreciate your thoughtfulness during this emotional time.

The future of the real estate market

There has been a heightened level of concern about the future of our economy and the real estate market because of what has happened to our country. This is completely understandable, but I would like to attempt to put some of your fears to rest.

Low interest rates are the foundation of economic recovery. The Federal Reserve announced a half a point interest rate cut on September 17, and when they meet again on October 2, I have confidence they will do whatever it takes to support our economy. The Federal Government is committed to improving the economy and moving it forward in order to create job growth. They’re lowering interest rates to near-historical levels, creating an enormous opportunity for all home owners.

Leading up to the events on September 11 we were experiencing record sales for the month of September and year to date. Yes, everything came to a screeching halt the morning of September 11, as is expected, and it remained that way for a couple of days. Since that time our sales have slowly begun to pick up again and eventually we will be back to normal activity. I tell you all of this to help reassure you that the market will get gradually stronger with every day and week that goes by. As people begin to heal and their confidence grows, home buyers will begin to return to the market.

Buyers drive the real estate market

It’s important to understand that the real estate market is buyer driven. Real estate and communities are in perpetual motion. Imagine staring down into your community from ten miles up with a time-lapse camera. In so doing, you would actually be able to see the continuous movement of your community, such as first-time buyers moving from apartments into homes, people selling their homes to move into other homes, people relocating into and out of your community. The point is that communities, and therefore the real estate market, are in perpetual motion that never stops. It’s a continuous cycle that takes place every minute of every day—and it will continue to do so even in light of recent events.

There are a substantial number of potential home buyers out in the market who simply need a confidence boost. Our job right now is to find out what their motivation is and what kind of time table they have in mind for buying a home. They may have decided to put off purchasing a home because of the recent events and the threat of a slowing economy. We should be communicating with these potential buyers to help them understand the current state of the market. NOW is a great opportunity for all home owners; first time buyers, move-up buyers and home owners who want to refinance.

Position yourself for buyers as they re-enter the market

In order to position ourselves as the first point of relationship for home buyers as they re-enter the real estate market, we need to be proactive. A great way to connect with buyers is to hold first-time home buyer courses. Low interest rates have been driving first time buyers into the market in large numbers and will continue to do so when the market bounces back again.

Open houses are another great way to put yourself out in the market so that you can make contact with home buyers in your community. These buyers will be in the investigation stage, which includes driving around and going to open houses. Hosting open houses is an opportune way for you to reconnect with these buyers as they re-enter the market. The point is, we need to do whatever it takes to be visible in our communities right now. This will help reassure home buyers that we have confidence in the future of the market.

Get face-to-face with your sellers

If you haven’t already done so, it’s extremely important to contact your sellers as soon as possible. Some of you may have already called them, but you should now follow up with a personal visit. Your sellers are probably experiencing a certain level of anxiety at the state of the market and it’s important to reassure them through this time. You could also take this opportunity to do a market update for your sellers, meeting with them to provide statistical information and local real estate activity. Obviously the crisis back East is still at top of mind for most of us, so we need to be sensitive to that fact when talking with our clients. But perhaps instead of dwelling too much on the events of September 11 and their impact on the market, you could focus on the overall success of the real estate market to date, quoting from the MLS stats for the month of August. When addressing the impact of current events, reassure your clients that the market will get stronger with each passing week that goes by, and with time, we will be right back where we were before.

Reconnecting with your sellers also provides you with an opportunity to readdress the five rights of selling a home: house right, yard right, price right, marketing right and the right agent. They already have the right agent, but it might be worth revisiting the other rights to a sale and ensure that you and your sellers have taken the necessary steps to market their home effectively. Remember, at John L. Scott we have the best real estate marketing in the nation, and this will help us to attract buyers as they move back into the market.

Getting back to “normal”

What happened in New York, Washington D.C. and Pittsburgh is extremely tragic, but now is the time for all of us to place trust in our nation’s leaders to lead us through to an appropriate response and outcome. Eventually we will grow from all that has happened and we will move on—it’s human nature. The President has asked us all to try and get back to a “normal” way of life. Following the lead of the stock market and professional sports, I believe the rest of the nation, including real estate, will soon follow.

Published: September 25, 2001

Use of this article without permission is a violation of federal copyright laws.

J. Lennox Scott is the third-generaton president of John L. Scott Real Estate, founded in 1931. During his twenty-year tenure, the Seattle-based company has more than quintupled in size. With over 41,000 closed transactions last year, John L. Scott grossed more than 7.8 billion dollars in volume and has over 2,600 sales associates operating in 103 offices throughout Washington, Oregon and Idaho. J. Lennox Scott is a leader who has pioneered real estate into the electronic age. His company's award-winning website, www.johnlscott.com , receives over 20 million hits per month, including 280,000 unique visitors.