Over the past month I have had long private conversations with the associates in my brokerage, and many others outside my company. I continue meeting and speaking with Realtors in the Denver market, but following are what I believe are the consistent themes of those conversations:
- 1. All of you are questioning at some level the market and your relationship to that market, the real estate business and the long term health of your business.
- 2. Most of you are struggling at least a bit, and you feel alone.
- 3. The looming changes forecast for the structure of the industry is both shocking and a bit frightening, but most professionals understand the need and are managing the change.
- 4. Most everyone feels a bit isolated.
- 5. Everyone is getting push back from their consumer base when discussing real estate.
So here are my suggestions on meeting the market head on and thriving next year:
- A. The local Denver market segment priced under $200K has become a seller’s market. (There is probably some segment of your local market functioning in some way.) As the nation recovers from a systemic shock to the entire economy, the most functional real estate market will be at the lower price range. That will be properties that are purchased by investors for rehab and flip, the flip to first time buyers, and private sellers with enough protected equity to price to compete for a sale to that first time buyer. If, which may very well happen, there is a federal program established to mandate a 4.5% mortgage interest rate, we will see a healthier market from $200K to $400K, but jumbo funds will not return at a convenience level until the overall credit markets recover.
- B. You are not alone. If you feel that way, call 1, 2 or 3 of your compatriots and have a meet up. At The Berkshire Group, we are having weekly meetings on marketing, dialog, solutions and investor programs, with more such gatherings to come. These meetings are associate, not management inspired.
- C. Much of the real estate industry is discussing or acting on "no office" operating models. The discussion is no longer about the purpose and need for office space, the discussion is turning to company culture, purpose and value delivery.
- D. That feeling of isolation. Read and act on "B" above.
- E. Sign up and read Inman News. There is at least one topic a day that is of interest to the consumer that owns a home or wants to buy one. Take that topic and share it with 5 people in your consumer base. That means you will have to call on the phone, knock on a door, text message, or in some way initiate a 2-way conversation with a possible buyer, seller, or referral source 5 times every day.
I am off now to call 5 people. There were some interesting things on today’s Inman News to chat about.
Hi Larry...Wonderful advice. No wonder I subscribe to you.
As long as REALTORS get together to think of positive things and do not just lament on the negatives. Make sure they are upbeat, productive sessions while still being realistic. It is possible.
Kate