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Your 2008 Real Estate Budget: How Has It Changed?

By
Real Estate Agent with Christie's International Real Estate Sereno 01153805

In nearly every market across the U.S., the real estate market has become challenging. There are fewer sales happening (but not necessarily an exodus of agents from the industry). In many places, there are more listings and longer holding times. Buyers tend to wait (even though these are ideal buying conditions!).  

It's more expensive to be a Realtor now than ever.  So how are you responding...in terms of your budget for 2008?

 Are you increasing your marketing and expenses on advertising? Are you pulling back?  Doing more of the low-cost methods (open houses, calls, doors)?  Will you attend more training in 2008, or less - feeling it's an extra expense? Some will spend more - some less - in times like these.

When sales are more sluggish and times are tough, there are a few ways to increase your take-home. It is very important that when slicing and dicing the budget, you don't cut expenses that don't impact your reach with clients. I would suggest that it is important to stay in touch with your sphere of influence now more than ever.

One example of a way to cut expenses but not cut down your connection with clients is to take on transaction coordination yourself, if you have time, rather than spend $400 to $500 per transaction for this service (which is the going rate in my market).  Another is to do client appreciation events with other agents or affiliates and share the expenses.  Do you have non-producing websites? I had one and just cut it.

My 2007 has been good relative to our market (I'm about in the top 5% of agents for the area), but I'm working harder than ever to get the results and am also working on my 2008 plan with the idea that I need to keep more of what I make. Nothing - no line item - will go without scrutiny! Each one needs to pass the test of "is this helping me to make more money" or "is this a drain on my budget"? 

An expense that has helped make me more productive in this market has been having a coach (Joeann Fossland). It's a cost to have a coach, but this is one expense which more than pays for itself. Sometimes folks say "I can't afford a coach". It's like saying "I can't afford to pay someone to do my taxes". And it's a bit like home sellers saying "I can't afford a Realtor", so I'm selling without representation. A good tax person will save you money (and time). A good Realtor will net the seller more money. And a good coach will help you to be more productive.

So, Active Rain: what can you keep? what might you add? what should you cut loose for 2008? I value your input!

 

Posted by
 
 
 
Mary Pope-Handy
Realtor, CRS, CIPS, ABR, SRES
 
CalBRE # 01153805
 
(408) 204-7673   | ValleyOfHeartsDelight.com      
SanJoseRealEstateLosGatosHomes.com   | Move2SiliconValley.com      
LiveInLosGatos.com      
 
mary@popehandy.com   popehandy.com  
 
     

Comments (11)

Steve Glose
Keller Williams Legacy - Orlando, FL
TRC, CIPS, 407-616-7286, Orlando Real Estate, Orla
I have revised my budget several times this year. Im running as slim as possible without cutting too much into my advertising.
Nov 13, 2007 01:50 AM
Cheryl Johnson
Highland Park, CA
Print advertising for the most part is more costly than online advertising..... I wouldn't mind dropping some of it ...... but if we drop too much of the print stuff I think we lose some of that "visibility/recognition/branding" factor.  It's a tough call.
Nov 13, 2007 02:06 AM
Peter Thompson
Downers Grove, IL
Chicago Mortgage Insight
Mary, I have increased my spending this year, and my budget for next year is higher. It is painful in a down market, but these are the times when you have a chance to increase market share. When the market comes back, those who push hardest now will reap the benefits.
Nov 13, 2007 03:26 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate
I already don't do print ad's, I dropped enhanced listings on r dot c. I get my calls anyway, at Remax all listings calls go to the listing agent. Going to blog more. I will keep my lead generation, pay-per-click site as it brings me results.
Nov 13, 2007 10:12 AM
Joeann Fossland
Advantage Solutions Group - Tucson, AZ
Master Certified Coach to Motivated Agents
Mary! Thank your and of course I totally agree with you!
Nov 13, 2007 10:31 AM
Sharon Simms
Coastal Properties Group International - Christie's International - Saint Petersburg, FL
St. Petersburg FL - CRS CIPS CLHMS RSPS
Don't cut anything that may affect your client services and don't cut anything that helps you be productive and healthy. Analyze your time, and concentrate on the most productive activities. If you aren't doing something productive at work, go to the beach and clear your mind so that new creative ideas can come in.
Nov 13, 2007 11:46 AM
Sandi Bauman
Chico Homes Real Estate - Chico, CA
Chico CA Realtor
Mary-  Thanks for the timely post.  I really need to sit down and re-examine a few things!  I cut a few unnecessary expense a while ago, but need to make sure I'm not being sloppy and paying for things that aren't worth their weight.
Nov 13, 2007 03:48 PM
Mary Pope-Handy
Christie's International Real Estate Sereno - Los Gatos, CA
CRS, CIPS, ABR, SRES, Silicon Valley
Steve - great!

Cheryl - you're right. I've gone too far the other way...need to add it back in.

Peter - there's a lot to be said for increasing exposure now!

Missy - I haven't tried PPC but may throw that into the mix. Thanks :-)

Joeann - yup!

Sharon - I agree that sometimes what you need is not more work, but more rest!!

Sandi - You are very welcoem. I've been analysing all of this for the last couple of weeks...like I said, nothing is sacred... People sometimes assume that the biggest line items are not negotiable - but you'd be surprised what might be!
Nov 13, 2007 04:05 PM
Teresa Boardman
Boardman Realty - Saint Paul, MN
Last year I cut most of my newspaper advertising, I think I'll cut the rest of it out of next years budget, except for the neighborhood non-profit paper.  Had to buy a lot of hardware this year, i am not buying any next year.  Gee I guess I need to focus on what I am going to spend money on. :)
Nov 14, 2007 11:27 AM
Ray Saenz
Exit Realty Laredo - Laredo, TX
Homes for Sale in Laredo, TX - Texas, Realtor

Mary,

I have read all comments :) and your blog, great one to think about it,  also I want to add to those comments that if we use a  Signature Pad  it will save us many bucks,   Paper, Ink and Time, a good one costs around 200 bucks, but if will save you a lot.

Ray Saenz

 

Nov 18, 2007 05:21 PM
Mary Pope-Handy
Christie's International Real Estate Sereno - Los Gatos, CA
CRS, CIPS, ABR, SRES, Silicon Valley
Teresa - I cut mine 4 years ago, and after carefully analyzing everything, I'm adding some back in this year. I moved away from print and went nuts on the web. Buyers buy houses, but sellers buy image. In my market (I don't know about yours), I'm afraid that image is still somewhat tied to the papers. I will let you know in a year if the change helped me or not!

Ray - thanks so much - I know my clients would love to have a signature pad to use :-)
Nov 29, 2007 02:18 PM