Is your financial situation affecting how you run your real estate business? The answer, for most of us, is probably yes. It isn't necessarily a bad thing by the way. There are several ways a real estate professionals current financial status affects the way they conduct their real estate sales business. Some of those decisions may cause us to lose business, while some may make us more efficient.
If you read or listen to opinion pieces regarding real estate sales, you would think each and every one of us, attempt to slam buyers into the most expensive houses, and tell sellers to slash prices; so that we can make a quick buck. Any of us who have been in this business, for any length of time, know that simply is not a fact. But we must be careful, not to fall in to little habits, that cause us to hurt our clients (if only a little) for our own financial gain. This could occur when we push buyers along, to overlook repair issues on an inspection. On the flip side of that, do we sometimes encourage our sellers to concede on ridiculous repairs to get the deal done? How about the agent speeds thru a walk thru, or doesn't suggest one altogether, so there is no risk to delaying that closing? After all, that car payment is looming, and we have to get that closing check.
Going In To Battle Unarmed
Let's face it, the real estate business requires some fairly expensive tools. A quick list would include: a nice automobile, a user friendly website, smart phone, mobile computing capability, pricey mls dues, business cards, decent clothing, and other miscellaneous costs. Sure, there are people who succeed with an old car that has been well taken care of. Or the agent that sees no need for a smart phone or computer of any type. There are also athletes that don't run very fast or jump very high too, I just can't name too many. The fact is, there is a financial barrier to enter this business, and there is most certainly one to stay in it. Maintaining the requisite tools to be successful in this business is a financial investment we all have to make, even if it means cutting back on other things.
Financial Decisions Aren't Always Bad
When we ask how financial situations affect our business, there is a tendency to question our financial health. But the truth is, examining one's financial status is more likely to be a positive, if done correctly. A person who cannot afford to take on a client who will waste there time, is really deciding that their budget will not allow for such a cost. Some of us have arrived at the question of being able to afford an assistant. Upon further review, we may realize that we can't afford not to hire someone to help out. We may be literally losing thousands of dollars trying to not spend money.
We constantly seem to talk about dollars in regard to real estate. But rarely do we examine the state of our personal finances, and how it affects how we conduct business. Perhaps it should be a priority, as we prepare our business planning for 2012.