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A Recession is a Terrible Thing To Waste: 6 Lessons From a Real Estate Veteran

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Managing Real Estate Broker with Register Real Estate Advisors Conroe 0511875

Original content by The Team at EXIT Realty

Bob McKinnon EXIT Realty Corp. InternationalA commentary by Bob McKinnon, Senior Regional Consultant, EXIT Realty Corp. International

We in real estate experience a recession every seven years on average, twelve of them since 1929. Each downturn is different in nature due to compounding economic factors of the time, but the effect is the same for our industry. Recently, I heard Brian Buffini use this title phrase and it sent me reflecting on some truths of our business that may possibly help you now or in the future.

No pain no gain. Pain, if properly framed will always bring about gain. What a frustrating place to be to have lots of pain with no gain at all. Remembering real estate is always first in and first out of a recession, here are six lessons from my experience.

Expect the cycles and plan for them. Planning ahead is what good leaders and business people do. We have an echo boom coming which will bring a whole new opportunity to our industry. As surely as it is coming it will go or geo-political events will interrupt it. OK? Think, read and be ready.

Save and develop reserves in the good times. I believe we are entering a period of national frugality which is so smart. We REALTORS® love to drive, wear and live in our reserves which may prove very foolish in the future when we could be turning them into equity and investments instead.

Brail the marketplace and know where it is trending. Take a macro view of things by being active in REALTOR® groups, reading REALTOR® publications and attending local business or networking meetings. Reading and paying attention to the business news from reliable sources is a must. When you see and feel bad business practice, know it will not end well for anyone no matter what the temporary gain.

Realize the opportunity in any market. Remember life itself (marriage, divorce, births, deaths, transfers etc.) continues to drive the majority of the demand for REALTORS®. Always have faith that real estate will continue to change hands, so seek and find the opportunity to bring more value to your marketplace.

React quickly to changing trends. Those who read the market got in early and are still there with consistent flow of business while the Johnnys-come-lately pound on the door wanting into a room that is already full. Some never see the changing trends but sadder yet some see them and do nothing about it. So how to you boil a frog? Don’t tell him the water is getting hotter and he will do nothing about it!

Basics will always win. Sound vision and leadership - the discipline of daily execution of basic activities like recruiting, prospecting, practicing skills; innovative marketing and branding - these are the things that still win in the battle for market share. True innovation is rare, but it is there, and usually it is just a slightly different approach to some age-old business and personal practices.

We have been through a very tough time that has hurt so many. If you are ready to move on, even grow from this experience, realize there is always gain from pain. With great respect and regard for my fellows I say, seek the gain and win the day.

Bob McKinnon is an experienced and mature business person and has been teaching sales and management for over 45 years. A California real estate broker for 40 years, Bob has sold real estate, owned and managed portions of five real estate companies, has been a franchisor, a corporate manager and Director. For the last twelve years, Bob has been a personal development coach to top agent teams, businesses and regions. As EXIT Realty’s Senior Regional Consultant, he brings his experience and that of hundreds of others to help clarify vision and action that improves both careers and lives.

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