LOS GATOS, Calif.--(BUSINESS WIRE)--Audrey Sutton Shilling, President of Asante Real Estate Group, Inc., expresses her concern with respect to the sudden closure of Alliance Title Company.
Many people were shocked to learn about the massive closure of Alliance Title Company in Northern California, particularly since Alliance Title earned $370 million just two years ago with 2,500 employees in California.
We at Asante Real Estate were not at all surprised by this development, and I fully anticipate that several major players in the Title, Lending and Real Estate field will also become victims of the stagnant housing market in the near future.
During the past year and a half, the total number of single-family home sales in Santa Clara County has dramatically declined to just 60 percent of the historical average transaction volume. Accordingly, nearly all aspects of the housing industry (Real Estate Agents, Title Companies, Builders and Lenders) have shrunk in response to this market downturn. Some optimistic news for homeowners is that home values have remained fairly steady in most parts of the San Francisco Bay Area and Santa Clara County. However, any way you slice and dice these trends, this exceptionally low transaction volume means continuing challenges for the providers of real estate services in Santa Clara County and Northern California.
In order to survive and continue to serve customers, Real Estate Companies need to adapt and evolve to the ever-changing real estate market trends and realities while providing exceptional service at a fair price. Those real estate companies that fail to evolve and adapt will likely share the same fate as Alliance Title Company – they will become extinct.
In order to meet the changing market conditions and the needs of home buyers and sellers, Asante Real Estate Group has massively reduced the high cost of buying and selling real estate by selling homes with Full Service at a Fair Price. Specifically, Asante provides Full Real Estate Services for only 1% of the total purchase price (plus the buyer's agent's commission). Asante also gives buyers up to 2/3 of our buyer's agent's commission when they find their own home – for the purchase of an $800K home, the buyer will receive up to $16,000 after close of escrow.
Most of our competitors are retrenching or going out of business in the midst of this unsettled housing market. In sharp contrast, as a direct result of our Full-Service at a Fair-Price business model, Asante Real Estate is growing rapidly in this market, having opened seven (7) additional offices in the San Francisco Bay Area and Northern California just in the past four months. And Asante is now rapidly expanding with Franchise Offices throughout California, because we have adapted and evolved to meet market conditions by providing a better value proposition that leaves more money in the hands of home buyers and sellers.
And more good news – we believe that the housing market has hit bottom and has started to rebound. The Buyer Demand has never gone away – it has just been latent (or unspent) for quite some time now. We are now seeing a resurgence of buyers back into the market and expect that Buyers will move aggressively in 2008 as interest rates continue to stay reasonably low. Even though the market has turned, it may still take six to nine months before most people figure that out. We find that our Buyers are coming back into the market even faster and stronger because we rebate 2/3 of our commission to Buyers who find their own home. This means that they get a much better value on the home they purchase.
At all events, we at Asante Real Estate Group believe that with the right strategy and effective methods that truly serve the best interests of our clients, the short-term challenges facing the real estate company can be readily tackled.
For more information: www.asanterealestate.com.