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Plop....Plop....Fizz....Fizz.... Is There No Relief? Ours Is Temporary

By
Services for Real Estate Pros with RE/MAX Executive Realty - Happily Retired 104763

The real estate business is a survival business, but I don’t need to tell any of you real estate agents that fact.  This is an industry that changes like the weather.  If someone in Washington has a “gas pain,” we all suffer; if there is turmoil in another country, it will eventually influence our income; and with all of this and more, we are expected to move forward and continue to be productive.

Alan May wrote a post this morning titled “…and then there were none” and he reflected the true picture of the profession that we chose.  It’s difficult to continually maintain a full pipeline of business.  We each have our weak moments and our void months, no matter how productive and successful we may be.

The key to surviving in our business is budgeting and creating a reserve account from those plentiful months that will carry us through the tough times.  We need to be conscious of the fact that our business changes before we can prepare for it, so we need to constantly assume that a change will be coming. 

We need to have a reserve that will allow us to continue to work our way through the tough times.  If we can do that we will always survive; and if we cannot budget properly, we will have panic and possibly not survive the storm.  Reassess your financial picture, and if there’s room for improvement, make the adjustments now.  Prepare for that future gas pain!!

Posted by

 

 

Barbara Todaro, Great Grandmother to Caleb, Santino, Aiden and Gianni       

Todaro Team - Retired

508-918-9148

               

             Copyright © 2009 - 2021 Barbara Todaro

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Comments (22)

Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Hi Shannon.... and that's why you'll be a survivor in this horrible economic fiasco....

Sep 12, 2012 01:49 AM
Ashley Connolly
Northeast Water Wells Inc - Jaffrey, NH

Hi Barbara

I couldn't agree with you more being a small business owner that offers a service. It is very unpredictable and at one moment you are running around like a chicken with your head cut off, while another you are just waiting for the phone to ring. It is important to have a back up plan just in case and to help you through those not so pleasant months.

Sep 12, 2012 01:54 AM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Barbara, when I came into the business in late 2007 the market had already started to turn here. I did pretty well in 2008. Especially, considering I didn't spend any money on marketing. But the next few years were difficult. There wasn't much to put aside.

Fortunately, my husband gets a nice pension and that kept me in the business. I am having my best year to date. I am putting money away but I also have two kids in college. I have been able to pay for their school with cash. No college debt for us.

So my goal is to use the money in a way that will bring in more business such as a new website and then direct mail. I am trying to get as many email addresses as possible because it cuts down that direct mail cost. At least, to my sphere. As always good advice here.

Sep 12, 2012 01:56 AM
Anita Clark
Coldwell Banker Access Realty ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

Barbara...it is the nature of our business.  When business is booming we need to squirrel away funds for those months were closings are slim (or non-existent).

Sep 12, 2012 01:59 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Ashley.... it's very important to have a reserve and prepare for the worst....

Tammie.... it sounds like you have a firm plan of attack and a purpose to keep it in place.... smart move paying cash for college....the kids will certainly appreciate that later with no student loans to pay off.....

Sep 12, 2012 01:59 AM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

None of us is more than "X" closings removed from bankruptcy. The key is making "X" as big as possible :)

Sep 12, 2012 02:00 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Anita.... it's not unheard of in our business to have void months.... the plentiful ones make up for it.... closings get moved around and sometimes that creates the void....

Sep 12, 2012 02:00 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Doug..... that's exactly right..... we're on the wheel every day and need to keep it moving.....

Sep 12, 2012 02:02 AM
Erika Rogers
Red Rock Real Estate ~ Southern Utah's Largest Independent Brokerage - Saint George, UT
St George Utah Real Estate & Relocation Specialist

What a timely reminder.....there were twice as many real estate agents in St George during those boom years but most of them didn't save up for the inevitable void months.  This is definitely an unpredictable business, but with some planning we can weather to lulls.  Suggested!

Sep 12, 2012 02:39 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Hi Erika.... if we prepare properly financially, we can survive anything...... even Washington's gas pains....

Sep 12, 2012 02:41 AM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

How very true!! One of they tools as you wrote on another post is to keep track of your $$$ you need to know what's coming in and what's going out but yet many Realtors don't.

Also, always remember it's not a done deal till it's "CLOSED" in our worlds, anything could happen to prevent us from collecting that check we were counting on to pay bills.

Well said, suggested!!

Sep 12, 2012 02:51 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Hi Beth..... it not done until it's closed is a statement to remember forever.... anything can happen....I had a new construction deal that didn't close and it fell apart a few days before closing....the couple decided to get divorced and were not speaking....everyone had attorneys...fortunately it was a good market...my builder gave them back their money and I sold it again for more money.... everyone was happy, especially the divorce attorneys!!! 

Sep 12, 2012 02:56 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Hi Barbara. This is so true and so well written. Nicely done.

Sep 12, 2012 03:07 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Thank you, Sheila.... it's actually a sad story for many....but it's realistic for our industry....

Sep 12, 2012 03:09 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Corinne.... when you're in business, it can be to your advantage to not have the pressure of producing to run the household....but there is plenty of pressure that comes with working in real estate and maintaining your business.... I've seen many agents working diligently to pay that horrendous tuition bill every month.... Lorraine has three in college....

Sep 12, 2012 03:42 AM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Barbara...

I read Alan's post and we have all "been there," and I agree that having a little something set aside is the key to long term survival.

Featured in the Group "Whacked!!!"

Sep 12, 2012 04:01 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Hi Richard..... thank you for the feature.... yes, we've all been there and there will always be more of it....we need to be prepared for it.

Sep 12, 2012 04:04 AM
Steven Cook
No Longer Processing Mortgages. - Tacoma, WA

Barbara -- Thank you for a timely reminder that things are very cyclical in this business.  Have a great week!

Sep 12, 2012 05:20 AM
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa
Any agent that has made it through their first renewal has a pretty good idea of when they are busy and when they are not. In other words, they know exactly WHEN they start to get lazy. There, I said it. We all get lazy sometimes. We are busy and we decide not to blog, not to prospect. Times are good. Then we wake up on day and we have nothing on the horizon right now. Horrible cycle to be in. Best way to stay out of it is to stay focused and motivated on filling that pipeline. Jump starting your business in the last quarter to create a fabulous first quarter while other agents are doing their yearly hibernation between Thanksgiving and OMG! Is it Spring already? You may chuckle, but I hear this same thing every year from agents that have been in the busy for a lot longer than me that are still caught on the hamster wheel. They may NEVER figure it out! :)
Sep 12, 2012 02:32 PM
Liz Wallace
Century 21 Sherlock Homes - Rockville Centre, NY
Broker C21 Sherlock Homes, Rockville Centre, LI, N

I tell the Agents this all the time.  When you get that big commission it is very tempting to go crazy but there is always a refrigerator box down the line if you don't behave.

Sep 13, 2012 04:32 AM