How many times have you talked to someone who has said "I would like to buy a house someday."            Dream or goal?

       DREAM

A Dream is a desire lacking a plan.

     "I plan to buy a home for under $250,000 by Decmeber of 2008."

        Goal- It has a specific time frame attached to it.

A goal is specific in nature.  Too often people are sidelined by dreams thinking they are goals and fail to accomplish them.   They fail primarily because they do not have a working plan which will allow them succeed.

           An open ended question

 "How much money would you like to make"? Can actually prevent someone from making it.  It opens the door to dreaming and not planning. Without a plan the goal cannot be met.  This results in frustration, procrastination and eventually abandonment of the goal leaving it to become a hollow unfulfilled dream.

        Business Plans for instance, project what need to occur in order to reach the desired goal. Too often they are unrealistic and set too high to ever be accomplished.  Failure to accomplish that unrealistic expectation can eventually lead to termination if it has been committed to writing. A grievous error.

        While it is improtant to work through the exponential details of how many contacts, touches, and contracts one would need to sell a million dollars, the variables change daily.A variable is not something you can control. Quantifying them bewilders the mind.

        So, instead of asking the question of "How much money would you like to make?"  Perhaps it is best to calculate how much you will need to survive.     Let me say that again. Calculate how much you will need to survive.

        Realtors fail and bail out because they cannot make ends meet. They are not making ends meet because the Market is Adjusting Daily. Prices are are changing on a daily basis and sales are low. Expenses however are on the rise.   By bringing the basics into the equation, you eliminate the dream and deal with reality.

        "I need X dollars a month to meet bills."  In order to get X dollars,  I have to have one closing per month. One closing per month is achievable.  If you have been in Real Estate the one thing have learned is nothing is guaranteed.  It could be many months before a closing or your next closing. We have all had deals blow up at the closing table. This lost income can make or break you.

           Precarious Times Call For Cautionary Budget Planning

           A major pitfall of REALTORS®  is the precarious tightrope we walk and uncertainty of when the next deal will close.  As the guidelines on loans tightened and the pool of qualified buyers receeded, many Real Estate related professionals found themselves drowning in their own debt. This lead to a massive bailout as they sought more fertile income generating occupations.  Commission based occupations force more careful budgeting than salaried positions.

         One must have a reserve from which monthly expenses can be drawn on an as needed basis. Most Realtors failed to plan for long periods without a transaction closing.  This lead to many falling behind in their own personal expenses and unable to meet monthly obligations.

         The instability in the Real Estate Market and its wide spread ripple effect have devastated the economy.  This can caused local government to look at the way they spend tax dollars, and lead to Property Tax reform here in Florida.  Osceola County, and in particular St. Cloud and surrounding communities like Poinciana have felt this trendously over the past year.

          Realistic Expectations

             Rather than asking yourself how much money you want to make, ask how much you need to survive. If at all possible when that next deal closes put a two month reserve away.  Cut back on all unnecessary spending. Throw away your want list and replace it with a survival list.  Work on reducing your credit card debt. Many professionals will need to  look for ways to generate additional income. 

          In the end it is not how many touches you make, it is how many properties you can sell to survive in tough times. We will work harder.  We need to spend less and work a lot smarter.  There are good buyers out there. Pre-screening them will save you a lot of time. A genuine buyer has a plan. They have a budget and a time frame. They have money saved for downpayment and closing. And for them the Market is prime for picking. 

           Good Luck and Sell Well!