Laurence Harmon - Marketing Residential Properties: The Science and the Magic

As this book heads to publicationits now Fall 2007were suffering through the continued worsening of the countrys housing market. For years the market has been plagued by overbuilding, artificially inflated housing values, unrealistically low interest rates, and shoddy lending practices. The latter are characterized by sub-prime, junk mortgages awarded to those who cannot qualify for the best market interest rates. This practice has produced historic highs in foreclosures, the bankruptcy of some of the countrys largest lending institutions, a jolt to the stock market, and troubles for the nations homebuilders and home supply retail outletsindeed every segment of our economy that depends upon the stability of the housing market. Everybody feels the impact of this housing bubble.

Here in the Twin Cities, where we live and work, the bubble phenomenon is jarring, though not entirely unexpected. We enjoy a diversified economy that allows us to avoid most of the precipitous downturns that affect other parts of the country. One of our problems is an oversupply of for-sale housing, particularly condominiums. Some experts believe that there may be as many as ten thousand unsold condos here in the seven-county metropolitan area, an unprecedented glut. Rumors abound that much of this product is being targeted for acquisition by vulture funds at bargain prices for later conversion to apartments.

True or notand were very confident its notthis kind of chatter, which we hear both nationally and locally, is definitely unsettling. Bad as it is now, some wonder, is it going to get worse? Maybe we should just sit back and wait for the market to get better. It will get better, wont it? Frankly, its probably human nature to shut down sales and leasing activities in expectation of better times.

We strongly disagree with this strategy, which is the main reason we wrote this book. A housing market in utter collapse, with bushels of unsold units and truckloads more on the way, all competing at the extreme top end of the market, is, to us, nirvana in disguise. People need shelter, whether theres a recession in the industry or not. There are qualified buyers (and renters) out there, looking for housing, thinking about upgrading, needing professional help and counsel. So much the better, frankly, if the competition has surrendered. We wrote this book to help housing marketers, sellers, and leasing agents who havent given up and who, like us, see uniquely appealing opportunities in a challenging environment. After all, the housing market is inherently cyclical. It always rebounds. As serious as it seems at the time, the housing bubble, although inevitable, is always temporary.

Fifteen short years have passed since we wrote our first book for IREM, Contemporary Apartment Marketing: Strategies and Applications. We followed up with two others, The Resident Retention Revolution and its fraternal twin, The Tenant Retention Solution. In the interim, we have continued to be employed in various capacities in the housing business, consulting, developing, selling, and leasing residential properties. Weve learned a lot, and weve worked to impart this knowledge to our readers in this new book. It is a significant expansion of our previous books and the many articles weve written on the subject of residential marketing.

Inspiration has come to us in many forms. Over the years weve found remarkable sources of inspirationnot only in each other, but also, especially, from two marvelous women. It is to them that we dedicate this book.

The first is the late, beloved Caroline Scoulas, editor of our previous IREM textbooks. Truly a blessing to us, Caroline literally taught us how to writecajoling, castigating, encouraging, and finally, belatedly, approving our efforts. We think of her, and thank God for her, every day of our lives.

The second inspiration is Catherine Lily Antil, mother to one of us, and mother-in-law and mother-in-fact to the other. Inquisitive and supportive by nature, shes been a trusted foundation, a reliable gauge and celebrant of our success, and a true friend in times of need. We love her, think lovingly of her, and thank God for her every day of our lives.