Recession, depression, or compression in the Real Estate market? It doesn’t really matter!

Many of the economic pundits are predicting that our economy will weaken over the next couple of years. Many more have said we will see a recession that could impact the Real Estate sector. I actually heard one of the popular analysts compare what he thinks is coming to a depression like 1929! Does any of this really impact you as a real estate professional? Let’s examine this a little further.

The Housing Market

First, mortgage rates are at a historic low. Under 4% for a 30-year loan and the Fed says they will cut further which could cause a slight additional drop. Second, housing demand is at a low compared to housing availability. We simply aren’t starting enough new homes to have enough available to the new entrants into the housing market. That means that supply is low and demand is high with more people able to qualify with lower loan payments! Sounds like a solution, not a problem!

How to prosper

That means even if only the same number of houses sell next year, the agents that set a business plan in motion to let people know that they can purchase first time, move-up to something better, or capture their equity and down-size easier than at almost any time in recent history will continue to succeed. If the market drops off a little, those who aren’t consistently pushing their relationships and marketing are the ones who will decline in the number of sales. Don’t let the market have any effect on you. Set your target, figure out the best approaches to hit your target and break down each approach to the little things that need to be done consistently to succeed in each approach. Once you have done that, track what you do for each of the little things and the approach becomes successful and the target gets hit, regardless of what the economy does!

Carpe Diem!!

Today, more than ever, buying or selling real estate is like trying to win a football game. To win the game, every player involved must do their part. There is the offense to move the ball toward accomplishing the goal of scoring. There is the defense whose job it is to keep the game going toward our goal, not the opponents! Then, often overlooked, there are the special teams. Designed to provide strategic positioning on the field these are specialists whose job is to do one thing extremely well.

 This is the time of year that we first start looking to see where we stand on our production goals. Statistics show that we should have closed or have in the pipeline as much as 40% of our entire year. Many of us suddenly have to wonder why we aren’t on pace to reach our goals. Others will say they are on track if they can simply continue as they have. For both, the determining factor is really the same, can we make the decisions to take the necessary action to pick up the pace and finish out the year strong. What actions are you willing to do to finish the year strong. Will you take the time to do those calls? How about getting out to do a pop-by to those important contacts? This time of the year sees many agents taking it back a notch because it is the beginning of summer, graduations are near, and summer vacations are at hand. While few are out there in our space, the time is ripe to make noise and make up ground. However, the point is if you aren’t prepared to take action, you won’t make up any ground and hit your goal. If you are still waiting to get it just right or still trying to figure out what you should do, don’t wait any longer. Make the decision to take action, move forward and find food. That’s right, it is a conscious decision that only you are in control of. If you don’t finish the year the way you wanted to and you didn’t take action each and every day, you have no one to blame but you. Remember, the legs feed the wolf and like the wolf you only eat if you run towards the prey. It is even better when there are fewer wolves to compete with.

A great Real Estate agent is like a great Caddy! A professional golfer’s caddy is trying to help his
employer navigate the golf course, to give him the opportunity to use the right clubs to make the right
shots to make the right decisions, and win the round. Caddies have enormous “local knowledge” as they
walk the course making notes on distances from the tee to the green. They need to know from
landmarks on the course how far a shot must go to help the golfer select the right club. It is their job to
know intimately the slope of the green to or away from the pin and to be fully aware of the terrain. A
great Caddy accompanies their pro to the driving range to study the distance the golfer gets consistently out of each club.

That helps the Caddy offer wisdom to the Pro on the course. More information gives more knowledge which when combined with the Caddy’s experience allows the Caddy to help the Golfer make the proper decision based on good judgement. The Golfer still has to make the final decision!

Are you like the Caddy? Have you properly prepared to undertake representing your client knowing
everything about the playing surface, the rules, the course, and about your clients wants and needs? A
good agent knows what is available in a neighborhood, what has sold, what hasn’t sold, and details
about the neighborhood. A good agent will advise the client on the real condition of the property and
the things that add to or detract from the price of the home and provide multiple looks at pricing. They
provide proper documentation, communication on every hole, and try to keep ther client in control of
the process!

Great agents have learned enough from the client to understand their expectations and
their real needs to help them apply experience, knowledge, and good judgement in making their
decisions. Perhaps you should watch the Golf channel and pay particular attention to the caddies. They
depict the great “Realtor” we all want to be and you can learn a great deal about properly serving your
clients and participating in their “win.” Or… you could just carry the clubs and be replaced by a golf cart.

The choice is yours.