I have the privilege of working with many fine entreprenurial minds with in the EXIT Family. One of my collegues Bruce Caruth, Regional Owner of EXIT Realty of Washington, Oregon, Kansas and Missouri gave a wonderful presentation on how to prepare for a positive turn in the Real Estate Market. These strategies are simple and straightforward. Something each of us can do to make quality adjustments and elevate our business at the same time.
Caruth's three strategies are:
1. Understand how and why the end is in sight. "Banks are beginning to realize that it is better for them financially to do a workout on a mortgage if possible than to foreclose," he commented. "Existing home sales have stabilized nationally keeping inventories relatively flat or even recently reducing them. Interest rates remain at historically low levels and homes are now affordable again for the entry-level buyer."
2. Reduce overhead. "In order to ensure that you can take advantage of this opportunity, the brokerage, as well as the real estate professional, needs to make sure they are among the survivors. To accomplish this they need to reduce overhead to levels at or below that of their current revenue stream."
3. Improve the skill level and production of the primary asset of the brokerage - the real estate professional. "To increase the skill level of the agent the key is training, training, training," said Caruth. "Most serious full time agents desire great training and company-provided leads. If an office provides [quality leads] the chances of recruiting a serious full time agent increases significantly. "
For those of us that will make it to the other side, our focus must be to provide the best in service to the client. Brokerages must raise the expectations on the unique service proposition that their agents provide to the client. We are poised to adjust and become more proficient masters at our craft. Gone are the days of lone-wold real estate model. Future success will come from a more empathy oriented model of real estate professionals working arm in arm to achieve common goals.
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