This week, I've noticed a lot of posts about real estate agents who are thinking about throwing in the towel. And I'll admit to having shared theses feelings a few times in my long career. So here are some thoughts on what's made it work for me over the long haul.
Throughout you career, you'll probably work best in the type of market you came into. I started when the market was really, really awful - like interest rates just starting to fall from 19 percent. I had to learn really quickly to navigate a buyers' market with complicated deals that got negotiated to death before they could be made to work. My rookie year (1983-84) I sold $5.5 million. I don't know what that is in 2007 dollars, but it's a lot. Then everything changed and the market got hard - for me, at least.
The market will change often, and you'll have to change business strategies to shifting conditions. In 1986, things really heated up, and I was in trouble. I was still attracting buyers, but my offers were not going through. They kept getting out-bid. so I had to regroup - get more listings and get my buyers to be more competitive. Complicated - bad! Clean - good! There was no time to negotiate! The offer had to be perfect the first time or someone else's buyers got the house. So negotiating skill had to go on the shelf and I had to cultivate new skills. I didn't starve that year, but I did lose a lot of weight!
The new rookies loved it and made big bucks.
A couple of years later, I was blessed! Marian Barry, recently out of the slammer after a cocaine sentence, became DC's new mayor. People fled to the Maryland and Virginia suburbs. The market here went down the toilet and I got a gift from God!
Many of my colleagues were crying the blues, but I made big bucks! At least until the 10-year soar that started in 1996. Then, back to the drawing boards!
In any market, try to keep your real estate practice "balanced". You need both buyers and sellers. In a buyers' market, you may decide that listings are a waste of time. They aren't. Same thing in a sellers market - you still need buyers. See, things can change any second!
Be careful about putting too much emphasis on technology, at the expense of personal contact! An agent in my office was hesitant to call a prospect who was not answering her emails. When she finally did pick up the phone, she learned that he didn't hate her! His computer was in the shop.
Sure, most people start their search on the Internet. But when they are ready to buy, they'll do business with an agent they've met fact-to-face, from a referral, at an Open House or at a cocktail party. It's hard to create chemistry on any web site.
A buyers' market can give you an opportunity to establish a great geographic farm - there could be less competition for listings! I've got that in my 2008 business plan. Right now, the dominant listing agent in your fantasy farm may be getting discouraged. His clients may be getting discouraged. It's an opportunity, and when the market shifts back, you'll be prepared!
You have to have a plan - a new one each year! 2005 strategies just won't work in a 2008 market. Writing it all down forces you to focus on strategies to overcome whatever challenges your local market is handing you right now.
Keep it simple! The agents I see suffering the most are the heads of super teams who employ lots of agents and assistants and who have huge overhead. Sure, the team might do a gazillion dollars a year in business, but what is the super-agent's net income?
If, at the end of the day, real estate just doesn't work for you, it's ok! This life isn't everyone's cup of tea. If it's not working for you, and if you don't think you can make it work, don't torture yourself - or your clients and colleagues. Think it through, and make a business decision that is smart for you!
Patricia Kennedy — Search Listings!
Posted by
Patricia, this is a very good post. And so true. Our markets are constantly changing and we have to learn to be flexible and change with the times. I think most of us that have been at this for awhile have been through several cycles and we have learned how to adjust. I was just talking with one of my peers yesterday who have been in the business for quite awhile. We were talking about how 12 years ago it ALWAYS took a year or more to sell a listing in Poinciana. That was just normal at the time and we did fine. Then we got spoiled over the last few years.
You are also right on about it being the perfect time to gain market share when it comes to listings. At least in my area listings are a dime a dozen. The only hard part is finding ones that aren't over financed! I have spoken to many REALTORS(R) who are backing off from taking listings because they say it's too hard keeping sellers happy month after month when things are so slow. So for someone with good communication skills this market is perfect.
Well done Patricia. Very helpful.