So why are you worried about the market worsening in the coming year?  Really why?

According to the book SHIFT by Gary Keller, there is a direct correlation between the number of commissions available on the market to the number of agents in the market. Note the graph on the cover of the book.

shift

This is the 4th down cycle I have been through, and each time, there is the opportunity to gain more market share during a down market than there is during an up market.  Of course, I did not learn this during the first down market and ran away from the problem. 

This will sound very cold and mean spirited, but the reality is that we will lose a massive percentage of agents that will be leaving the business in the coming year.  At your next meeting....look to the left....look to the right.....look ahead, as there will be only one of you left in the coming years.

Either take that as a means to scare you out of the business, or let it be a means for you to understand the reality that MOST OF YOUR COMPETITION WILL BE OUT OF BUSINESS IN 2010.  Now you can see the opportunity of how you can plan 2009 to be the year to gain market share.  You may or may not make as much money next year, but the key is to gain market share and you will end up on top in 2010.

We have watched our little group that was barely on the radar screen for Keller Williams International to pop up in the top 20 this year.  I do have to give alot of credit to my agents, but just as much credit has to be given to those who either threw in the towel or, mostly, over extended themselves and our now financially out of the picture.  i.e. Having a flat year can actually be outstanding, as it was for us.

Keep costs in check and start dominating your market.....

 

4 Comments on Why are you worried about a down market?

DEC
14
1 Featured Post Localism Sponsor

With as many realtors in the business in my area, Charleston, SC, this is actually a good thing in the long run for true professionals. The part-timers are dropping out left and right which creates more business for the experts. Take this time to build your business through referrals, people want a qualified agent now, not their neighbor anymore.

Randall Sandin, 843-209-9667, rsandin@carolinaone.com, http://www.charlestonpierpartners.com

 

3:54pm • #1
14 Featured Posts

I agree Tim.  Times like these are where we need to dig our heels in and stay strong, while many of our competitors pack up and go into other industries, leaving more opportunities for those of us that stick around to grab up.

Thanks for sharing!

3:55pm • #2
314,293 Points 1 Featured Post Outside Blog

Tim, it may sound cruel, but it is the nature of a market economy.  It is usually beneficial to a healthy market to thin out the ranks every few years.

3:55pm • #3

I must admit, I am a little nervous.  I have been in the Development side of the industry for many years.  I made the decision to capitalize on the shifting market to move into general real estate the first of the year.  I have a great coach who is helping me get prepared to dominate the St. Augustine market.  Wish me luck - and good luck to all that continue to work hard and work through this cycle.

PS: Although I have not read the book. I plan on ordering a copy.  Thanks

4:01pm • #4

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Tim Moncrief, Co-Owner-Bartlett RE Group

Austin, TX

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Keller Williams Realty Austin, Texas

Address: River Place, Steiner Ranch, Austin, TX, 78732

Office Phone: (512) 418-1435

Cell Phone: (512) 576-7344

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