Low inventory creates good opening for reluctant sellers

(As seen in the 11/1/19 Ledger column)

The next two months will be telling in the world of local residential real estate. There is the possibility that the year will end with a record-setting number of closings. Most real estate brokers say the number would be much higher with more inventory, an issue that has plagued the area since 2014.

There is concern – with the holiday season weeks away – that inventory could shrink even more as many homeowners prefer to await the spring market to sell. This is the year for sellers to sell in what was formerly known as the offseason. There is gold in the hills, be they oak or green or forest.

As the competition is gobbled up by the influx of Turkey Day buyers, home prices could soar. Additionally, the holidays allow even more out-of-town buyers to flood the airports, hotels, Airbnbs and hotels as the pedal taverns slow (we can hope).

Perhaps managing brokers are noticing these trends and will send their troops into the field to garner listings. Unfortunately, managing brokers often have similar traits to the head football coaches in the National Football League.

During the first eight games of this football season, Titan head coach Mike Vrabel has made some calls that have baffled fans and media alike. Vrabel was a standout player in the NFL and helped lead the New England Patriots to several Super Bowl championships, all under the watchful eye of Bill Belichick, who was not a player but has won 69% of the games he has coached.

There are numerous examples of players failing as coaches and managers. The same situation applies to many real estate firms.

Several years ago, one of the nation’s leaders in real estate came to Nashville to speak to a group of brokers and told of a scenario playing out nationally.

Top producers, he explained, are tiring of paying a percentage of their earnings to their real estate companies and are deciding to go into business for themselves. Shortly after opening their firms, they learn their ability to broker real estate does not translate into management, training, recruiting and the running of their businesses.

Rather than finding persons with a sound business background and experience in management, the owners hire another top producing real estate broker. In several months, they, too, learn they lack the skills required to lead a firm. They repeat the cycle.

History has shown that mediocre players often make the best managers, perhaps since they lacked the abilities and skills that the stars had been able to develop or had exhibited since birth. That would not seem to work in real estate.

Richard Courtney is a licensed real estate broker with Fridrich and Clark Realty and can be reached at [email protected].