I am a Realtor
Dubuque man picks a challenging time to jump into the business, but others say local market is about to take off
BY BEKAH PORTER TH STAFF WRITER


Photo by: Jessica Reilly
James Patterson is a real estate agent, but also works as a bouncer at the Mississippi Moon Bar at the Diamond Jo Casino. Patterson picked a difficult economic time to start that career, but he says he's had some success.
The band blares.
Pumping, throbbing, pulsating -- the music captivates the crowd.
While the audience inside the Diamond Jo Casino's Mississippi Moon Bar sways, one man stands apart.
"I am a bouncer," he said, "but it's my night job."
While James Patterson's eyes remain alert and on the crowd, his mind wanders to his day job.
"I have houses to sell," he said.
'I like a challenge'
In September, America's bubble burst, and the resounding "pop!" echoes across the nation. When the recession struck, it hit the housing market first -- and it hit hard.
A record 1.8 million Americans were ousted from their homes in the first half of this year, according to RealtyTrac Inc. In May alone, officials reported 300,000 foreclosure filings.
That means for-sale houses flood the market in a time of rising unemployment and shrinking incomes.
"Everybody knows the real estate business is tough nowadays," Patterson said.
In October, Patterson completed his classes
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and received the certificate that makes him an official real estate agent.
"What can I say?" he said. "I like a challenge."
'Some interesting trends'
Dubuque real estate agent Rob Cook craved that challenge when he jumped into the industry six years ago, and with each passing day, he notices a shift.
"I won't say that it's a difficult market now, but I will say it's a different market," he said. "Just look at the numbers."
Cook compiles statistics for his real estate blog, riverbankstocornfields.com, and the numbers speak for themselves, he said.
In 2006, Dubuque area Realtors assisted in the sale of 496 homes between January and June. In 2007, that number dropped to 449. Last year, 344 houses were sold in the six-month period, and this year, sales lag with 321 homes in the Dubuque area having been sold so far.
"But they are still selling," he said. "And while they are selling, they are showing some interesting trends."
Sales are down, but the average selling price for a Dubuque home is up. According to Cook's figures, the average sale price increased from $140,798 to $155,285 from June of 2008 to June of 2009 .
"That doesn't mean that house values have gone up that much, but the houses that are selling -- and granted, there aren't many of them -- are selling at a higher price this year," he said.
'Now was the time'
Everybody told him to wait before becoming a real estate agent.
"Even my financial adviser said now was a bad idea," he said.
Some dreams don't die, though.
"I've wanted to do this since I was a kid. Some boys dream of being a fireman or a police officer or a professional athlete. I wanted to sell houses," he said. "So I decided now was the time, and it was just a matter of ignoring the people who told me not to do it. I wanted to prove them wrong, and I'm doing just that."
Patterson took a position with Ruhl & Ruhl Realtors in Dubuque. On Dec. 15, he closed his first deal, and since starting, he has sold eight houses.
'Your body, your soul'
Being the best takes time, said Dubuque agent Gwen Kosel, of Re/Max Advantage Realty.
"You will most likely lose money the first year," she said. "The second year, you might make a little bit of profit. But around here, people have the idea that you become a real estate agent, and you make a ton of money. That's not the case. You have to figure that there's a five-year ramp, and during those five years, you are going to be pouring into it 24/7 your whole body, your whole soul."
Kosel maintains the career is worthwhile, and those dedicated to it can find success.
'Selling yourself'
Patterson knows the battle will be fought uphill.
According to local real estate agents, 15 percent of homes on the active market are selling monthly. An estimated 370 houses remain unsold in the Dubuque area.
"Nobody's saying it's not hard," Patterson said. "This isn't for everybody. You have to be dedicated, and I mean really dedicated. This is definitely a tough business to be in."
Home values dropped 3.3 percent nationally at the end of last year, according to the Federal Housing Finance Agency. Iowa ranks 11th best in maintaining home values, only having fallen 1.2 percent in the last year.
Another obstacle is finding new clients looking to purchase in the poor economy, but here's where Dubuque differs from other American cities, local Realtors say.
'No matter'
Kosel's and Cook's combined 10 years of experience tell them the same thing: Dubuque's housing market is primed to peak.
Both talk about the one group ready to take Dubuque's market to the next level -- the incoming IBM employees.
"If it weren't for the IBM folks, our housing numbers would be much worse off," Cook said. "Those IBMers are the driving force behind our housing market."
Cook specializes in corporate relocation work, which means he helps business people moving in and out of town buy and sell their houses.
"Right now, I have a couple who wants to move here, and they have even found some houses they absolutely fell in love with," he said. "The problem is that the housing markets are terrible where they live, and they can't sell their houses there."
The problems run deeper than the troubled national economy.
"Good agents recognize that no matter what the economic conditions are, there is still stuff going on," Cook said. "Divorces, deaths, young couples starting families, older couples downsizing -- this happens all the time, no matter what the local or national economy is doing, and we have to be there to help our clients."
'Make it work'
Patterson grasped onto this concept when he signed up for his job.
"I can make a go of this," he said. "You just have to make a plan and stick to it."
But making it takes time. The 31-year-old family man works solely on commission. "You do what you have to do to make it work," he said.