The practice of real estate sometimes likens itself to a feast or famine situation. Frank Sinatra sang it best in his hit, “That’s Life,” where he sang, “You're riding high in April, shot down in May; but I know I'm gonna change that tune when I'm back on top, back on top in June.”
The feast or famine theory of practicing real estate has been around well before I ever entered the arena in 1983. I was told immediately to avoid the feast or famine mindset and to be consistent at all costs. As a REALTOR®, if I was not feasting on buyers, I had one thing on my mind, and that was listing. When my listing inventory increased, feasting became easier and famine was seldom seen at our household.
The real estate market has enjoyed the feast for the past several years, having survived the famine of the bubble crisis. Consumers have gotten used to interest rates below 5%, and the thought of rates increasing scares most consumers, especially buyers of real estate. What we are seeing, though, is fear of rising interest rates pushing prospective buyers out of their comfort zone and into the buying arena. Former students are reporting back to us that they are handling multiple offers regularly!
So, let’s assume we are in the “feast” stage of the market. Buyers are easy to find, interest rates are still low, and sellers are having fun with multiple offers. Everything is right with the world. What happens, though, when that changes? We all know what goes up must come down, and we all agree we cannot feast forever. The bubble crisis was a great example of famine for the real estate industry. How did real estate agents survive? After all, not everyone in the business ended up leaving the industry. There were plenty of REALTORS® and real estate agents who survived the crisis. How did they do it?
If you got your license after the financial crisis started turning around about 2011, you probably did not see the exodus or did not watch the decline of business for career real estate practitioners. It was sad for some, and others actually not only survived, but thrived. It’s all about one thing. As a real estate practitioner, you must have something to sell! The only products you should be interested in are listings. I’ve said it over and over, “He who lists, lasts.”
When the market turns, buyers (and there will still be buyers) will need houses. Since buyers will not be as plentiful as they are now, you should concentrate on building a listing inventory of well-priced, saleable properties. If you maintain a good inventory, other REALTORS® and real estate agents will have no choice but to show your inventory!
Now is the time to get your real estate license if you have any desire to practice real estate. Don’t wait until the economy changes. Position yourself now to float with the economy. Contact TEAM Hughes Real Estate School to take the first step toward your financial security. We’ll get you going!
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