When I was a freshman in college in Colorado I used to plan my classes around skiing. I was never more than an intermediate skier but I was a good sport about trying more advanced runs.
Then I went to Seattle on spring break to ski with one of my friends. When we got up to the top of the mountain for the first time it looked steep but I thought I was up to the challenge. About 10 feet down I knew I was in trouble. Unlike the dry, well-manicured slopes of Colorado, the snow in Washington was not only heavy but there was a good 6"-8" of fresh powder. I simply couldn't turn!. While I could fake it on the slopes of Colorado I didn't have the talent, strength, ability or training to handle the wet powder. I actually side-stepped and scooted on my butt most of the way down. One run and done.
I share this story because it is such a great analogy for our current market. These past 5-10 years of a booming real estate market, selling real estate has been like skiing on a perfectly groomed mountain. Honestly, a lot of real estate professionals could get to the bottom without having to be very good. That's why the number of real estate licensees has quadrupled since the mid 1990's.
Now we are at the top of a mountain facing so much wet snow that many are scared because they don't know how to get down successfully. Many simply don't have the training or the experience to be successful during a down real estate market. My guess is that a lot of the fair-weather agents will leave the business. Us old-timers will dust off our recession-handling skills and move forward knowing it is just another business cycle and that we have survived them in the past and with some hard work can survive this one too.
What about you real estate professionals who are willing to learn how to survive this market? Take a BIG gulp of humility and, starting with the basics, fine-tune every aspect of your real estate practice. There are no short-cuts or easy answers.
If you are a listing agent analyze your entire listing process. Are you thinking outside the box when it comes to marketing? Read Jeff Turner's Sex and Real Estate - The Conclusion and ALL of the comments. Listings don't sell themselves anymore do they? So, who is your target buyer for each listing and how are you going to best reach them? And, by the way, plan to spend YOUR money on marketing because many of your sellers won't be willing or able to do so. Figure out a way to make each of your listings stand out enough that the few buyers out there will not only want to see them but will want to make an offer.
Buyers aren't just for newbies anymore! I used to be primarily a listing agent but 13 of my last 14 sales I have represented buyers. Read Jim Crawford's Home Buyers Sitting on the Fence/ Reluctant Home Buyers are Waiting for What? As Jim wrote "Trying to identify the new buyers needs and niche market will remain a daunting task for many a real estate professional..." He raises great questions and solicits great comments!
So you real estate professionals who really want to survive this market don't despair, just work really hard at gaining the expertise to be successful in all of this wet powder and I'll see you at the bottom of the mountain for a hot spiced wine!
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