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!
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