Editorial
Front Page - Friday, August 14, 2009
Pat Zaby to teach Realtor courses at CAR office in August
Samara Litvack
Nationally-renowned real estate instructor Pat Zaby is making a trip to the Scenic City this summer, and will be teaching two courses for the Chattanooga Association of Realtors, which he says are both relevant to the current industry climate.
The first, which is free to CAR members, is the “Low-to-No Cost Marketing” course, to be held Wed., August 19, from 9 a.m. until noon at the association office. While this course offers no continuing education credits, it will still be greatly beneficial to attendees.
“One of the things that we know for sure is that when (people cut) their operating expenses because of challenging times, one of the things they cut (is) marketing,” says Zaby. “And marketing directly affects the amount of business you get.”
To remedy that unfortunate trend, this three-hour course offers ideas that participating agents can implement immediately, which have either low cost or no cost and will help them increase their business.
“So many people get into a spiraling situation where they cut back on expenses because revenue is stopped,” says Zaby. When that happens, they have less people coming into their offices, which then further reduces revenue and continues this spiral effect.
“What we’re trying to do is show them ways that they can go out, stay in touch, provide valuable services to their buyers and sellers that don’t cost money.”
Zaby recently taught the same course in Knoxville to a packed house, he says, and had a similar turnout in Lexington, Ky., a couple months prior.
“It’s exactly what agents need to get their business back on track and get in the game,” he says.
His second course, “Financing and Tax Advantages for Agents and Their Clients,” to be held August 20 and 21 from 8:30 a.m. until 5 p.m., is a different approach to the same issue. Zaby refers to this course as “probably the most important course an agent can take right now, especially prior to the expiration of the tax credit for first-time homebuyers, because this course really is more about helping buyers get off the fence.”
For the several years, agents easily got consumers approved for home loans, regardless of their credit ratings, ability to earn or anything else, he says. Now, Realtors have to really understand the tax laws and be willing to look at financing more creatively, and that’s where this second course comes into play.
“It really helps agents to be able to communicate the tax advantages, financing alternatives and investment aspects of homeownership,” Zaby says.
For example, if a person has a $250,000 home on the market, what could an agent do to make the home sell more quickly? If the seller were willing to reduce the price by $5,000, or 2 percent, it wouldn’t make much difference to the customer. Zaby uses a more relatable consumer analogy to illustrate this theory.
“If you got a postcard from Dillard’s saying that they were having a 50 percent off sale, you’d run down there,” he says. “But if you got a card saying they were having a 2 percent off sale, you might not even start the car. And that’s what we’re doing when we reduce a home a small amount.”
That same $5,000 reduction could be put to better use by applying it toward financing concessions, such as a 2-1 buy down, which would allow the buyer to get a fixed rate mortgage.
“It would allow the buyer to get in, get the things in the home that they need,” says Zaby, “and ease into making the payments.”
The “Financing and Tax Advantages” course was created in 1986, but may have never been more relevant than it is today. In its prime, the course was extremely popular. It began as a two-day course, was reduced to a one-day and was recently brought back to a two-day by CRS.
“We’ve had many, many testimonials from agents who have taken the course that said they were able to apply principles and the techniques that they learned in the class immediately and were able to put transactions together,” he says.
Zaby also mentions the current $8,000 tax credit for buyers who have not owned a primary residence in the past three years. While only one section of the course covers tax credits, he stresses the importance of that section and the relevance to today’s market.
“Right now, the reasons a person should be buying a home, the reasons they need to get off the fence is because the selection of homes is greater than it has been in many, many years,” he says. “The interest rates are at generational lows. They haven’t been this low since Eisenhower was in office. They’ll probably never be this low again.
“The values are above the prices they’re having to pay because of the increased inventory on their homes, so it’s a great time to be buying a home.”
Zaby says considering these three points, along with the tax credit and other tax incentives, makes a strong argument for buyers who are sitting on the fence. Attending his “Financing and Tax Advantages” course will equip Realtors with the knowledge and confidence to encourage such buyers and help them become homeowners.
For more information on this course or the aforementioned “Low-to-No Cost Marketing” course, contact the association office at 423-698-8001.
Zaby graduated from the University of North Texas with a bachelor’s degree in real estate, and holds a variety of designations, including CCIM, CRB, CRS and GRI. He has been involved in sales, management, commercial and property management since he began his career in real estate in 1968. He has taught courses nationally for nearly 25 years through the CRS and GRI programs, and has spoken at the National Association of Realtors annual convention each year since 1978. Zaby has been a featured speaker for several state associations and national franchises. Visit www.patzaby.com for a complete list of his accolades.
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