Tight Inventory continues to Depress the Market and Agents
A tight inventory continues to depress the
market. I am working with buyers who
have cash or financing in place, are reasonable in their expectations and ready
to close quickly but due to the lack of inventory are unable to secure a
purchase. 2019 1st quarter
total number of sales of all property types are down by 10% compared to
2018. Lakefront home sales under $1 million
decreased 9%, Offshore homes decreased 13% and condo sales decreased 11%. Average sale prices are beginning to show a
slight decrease in both lakefront homes and condos, while offshore home average
prices are continuing to increase. At
the same time, the number of new agents joining our local, lake area Multiple
Listing System continues to accelerate.
To use a frequently used but true
phrase: The Lake of the Ozarks is a
great place to live, work and play. It
entices so many to make the move here full time (plus more who dream and plan
for the same). Many agents at the lake
come from a variety of previous occupations and many embark in the real estate
business as second careers. Quite a few
undertake a part time real estate career and many still work other jobs. There are also a good number of agents who
are initiating a real estate career at the start of their professional lives.
Our current roster in our Multiple
Listing System (MLS) shows a total of 711 Realtor members. To put this in perspective, there have been
547 sales closed in the first quarter of 2019.
I share this information not to dissuade you from embarking on a career
in real estate nor to make you feel sorry for me or any of your agent
friends. Although, you might want to
take a moment to give your agent a hug.
I am sharing this to inform you there is a level of service that is due to you by a real estate agent and
to impress upon you how important it is to choose an agent with experience or
that is backed by an experienced broker/mentor.
Licensed sales agents are obligated by
Missouri State Statutes, guided by the Missouri Real Estate Commission, to
provide you with a certain level of service and to be honest and forthright. Further, REALTORS are obligated to do more in
the form of our Code of Ethics. Both
exist to protect the public. The details
are too numerous to include here but if you’d like more information, please let
me know. I promise I will share them at
no obligation to you.
While I am a proponent of a career in real
estate, I am also a proponent of agents acquiring the education and knowledge
necessary to truly be able to guide their clients in making the best possible
decision in purchasing at the lake. The facts
required to pass the real estate exam and obtain a license exist primarily of
state and national laws and basic real estate terms.
To gain the additional working knowledge
that I consider vital to do right by a customer can be achieved by obtaining additional
education AND enlisting the help of an experienced agent as a mentor or
choosing a broker willing to teach and guide.
I assure you, from my own personal experience, this will make life so
much better than hacking through each circumstance as it arises. I had a great mentor/broker at the start of
my career and I still appreciate the time she gave to assist me.
There
is not a course that I am aware of that teaches the specific knowledge needed
to navigate real estate transactions in our unique lake location. Permitting for docks, seawalls, boat ramps,
decks, etc. are just a drop in the lake compared to all items specific to our
area that can occur during the sales process.
It’s unfortunate but not surprising that the number of agents who fail
in the first year is 75% to 87% depending on the source.
Real
estate purchases are usually the largest a person will make in their lifetime. Choosing
an agent to work with is every bit as important as the decision about a
property purchase. Be sure you find one
that has your best interest in mind and is capable of guiding you through the
buying or selling process.
Michael Elliott has been selling real
estate at the Lake of the Ozarks since 1981.
He is one of the most respected brokers in the area. If you would like to work with Michael in the
sale or purchase of property, or have interest in a career in real estate, contact
him at 573.365.SOLD or cme@yourlake.com or stop by C.
Michael Elliott & Associates, 3738 Osage Beach Parkway. View thousands of lake area listings at www.YourLake.com.