Preparing for Impact

By
Real Estate Broker/Owner with Beam & Branch Realty TREC #547752

Today I was on a busy road and was stopped while waiting to exit the off-ramp. I could see a truck coming up behind me at a high rate of speed and it looked as if a direct rear-end collision was going to happen. I could feel myself preparing for impact.

Thankfully, the driver was able to maneuver away and missed me by a hair. My heart rate was high, my hands gripped the wheel, and I said a prayer. After the near-miss, I was on high alert. I am sure many of you have been there.

This afternoon as I was pondering how fortunate I was that the impact was avoided, I started to think about the impact of a sudden change in our world of real estate. I was just 3 years into my new real estate career when 2008 changed the course of real estate overnight. Truly, we were all faced with a sink or swim situation.

As we braced for this shift, many jumped ship from real estate while some of us braced for impact and kept swimming. Personally, at the time, I was a single Mom, and giving up was simply not an option. I had to do some quick thinking and brace myself quickly to avoid failure.

At the time I was in the Houston, Texas area and the foreclosures and short sales were rampant. I figured out that if I were going to remain afloat, I better embrace this part of the business. I quickly took the necessary certification for the SFR, began sending letters out to my local bankers, and found myself with more work than ever.

This work was very different from what I had been doing previously in real estate but, it created an income stream and provided me with an entirely new skill-set. I avoided a devastating impact by preparing myself to do business in a new way.

As we continue to see mortgage rates climb, gasoline prices quadruple, and the cost of food skyrocket, I believe it is vital that those of us in real estate, we must begin to brace ourselves for a potential impact. We've watched things change overnight before and it can happen again.

Are you preparing for impact? Take stock of your current skill-set and determine if there are areas you could be working on in the event of a sudden market change. Being prepared is always a great strategy.

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Comments (33)

Ginger Harper
Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

Excellent and great advice.  We did the SEO's when market was tight.  Still have some of those skills. 

Jun 07, 2022 10:44 AM
Pat Skow
PARKS Realty - Nashville, TN
Your Realtor for Life!

Paula:

Great post and you are spot on! In the real estate business, you need to prepare for anything!  Our economy cannot sustain this inflation so something has to give.  Here in Nashville, TN our market is still active but that maybe just a matter of time before it changes.  I just paid $5.01 per gallon for gas! That is a first for me.  Not sure how the average working person is going to be able to afford those prices let alone the prices we are seeing for food and other things.  

Jun 07, 2022 11:32 AM
Dr. Paula McDonald

Do you know MaryAnn Palise? 

Jun 07, 2022 12:14 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

So glad to see this post Featured Dr. Paula McDonald 

We darn well better continue to pray and brace ourselves for the impact. It will be more hard-hitting for some than others.

Jun 07, 2022 11:49 AM
Wayne L. Brown
Franklin Advantage Inc. - Alpine, CA

Paula

Been on the mortgage side since 87.  Trust me, I've seen a lot.

This time is just "Different" in so many ways.  Many in my industry are saying the same.  Many of us just use the word "Strange".

It's a solemn reminder that one thing is always Constant- Change.

We either adapt like you explained, or we go down like those that don't.

Timely post.

Thanks for the insight and reminder that so many of us in the industry need during these crazy times. 

Best of luck out there.

Jun 07, 2022 12:36 PM
M.C. Dwyer
Melody Russell Team at eXp Realty of California, Inc. - Felton, CA
MC Dwyer-Santa Cruz Mountains Property Specialist

So glad they missed you!   My hubby accidentally rear-ended a woman who stopped on the highway because her baby was choking.    She didn't have on her hazards, didn't pull over to the side, and he was didn't see her soon enough as he rounded the corner.    Amazingly no one was hurt!

We all have to be on the lookout for change - it's the only constant.   Looks like many of us figured out how to survive that 2007-2009 period.      This career is never dull!

Jun 07, 2022 03:36 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Just coming back to this one to see some of the comments and it’s good to know that a lot of people have somebody’s back that way. :

Jun 07, 2022 10:22 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Excellent message on keeping an eye on our environment and preparing for what we see coming.

Jun 08, 2022 05:35 AM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I've been in a similar situation as you re: driving--feel like you are going to get hit and it's so so scary!  We have to try and prepare best we can, in business and in life!

Jun 08, 2022 08:31 AM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

Whew!  So glad you were saved from that impact!  I was not as lucky and was prepared for impact due to a trustworthy seatbelt, however, it did not end well for the guy who hit and ran!

In the meantime, I am prepared for whatever happens in the next few weeks, months or years.  We must be diversified. Great Post!  Thank you!

Jun 08, 2022 09:19 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Excellent post!  And so true.  Going back to the basics for listings and looking for problems to solve is top of mind! 

Jun 08, 2022 02:31 PM
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

There's nothing I hate more than being blindsided or hit in a rear end collision. My preparation has always been to have my mirrors all working in harmony to give the most broad view of the situation as possible. Crashes cannot always be avoided although preparation may offer those precious few seconds to have a fighting chance.

Jun 08, 2022 09:00 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

One thing I quickly learned at the beginning of my 40 years as a Realtor, is that real estate is a cyclic realm.  I learned to put resources aside, for down cycles.  And, as Clint Eastwood said, in the movie, Heartbreak Ridge, "You gotta improvise, adapt, overcome!"

Jun 08, 2022 09:23 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

CONGRATULATIONS Paula, on having this blog FEATURED in the Old Farts Club group!  

Jun 08, 2022 09:25 PM
Gary J. Muccio, Associate Broker
Keller Williams of Central PA - Camp Hill, PA
Exceptional Customer Service!

Thank you for sharing, Paula and thankfully you were able to avoid the accident. Yes, 2008 was a game changer and the ability to pivot is key. Continued success to you!

Jun 10, 2022 03:57 AM
Jim Patton
Aspire Home Real Estate 209-404-0816 - Modesto, CA
Realtor - Stanislaus ,Merced, San Joaquin Counties

Hi Dr. Paula McDonald I started out in real estate in 2004.  Like you I learned to do short sales and how to negotiate them with the banks.  I also connected with several banks to list REO properties.  We need to learn to adapt in this business.

Jun 10, 2022 04:22 PM
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Hi Paula- I am so glad that this was featured. It has been a busy and glorious ride but anyone who was around in 2008  (heck I remember the late 70s too) needs to remember the lesson. I remember in 2008 speaking with an agent in Palm Beach County who did not want to take listings below a certain price point and refused short sales. 

 

Jun 11, 2022 04:48 PM
Wendy Rich-Soto, Realtor/Broker Associate
Keller Williams Realty, South Bay - San Pedro, CA
Getting you to your next with a zero failure rate!

Here we "grow" again!  This time will be different than 2008 but there is a correction already underway.  We will find a way to adjust our sails just like we always have. Thanks for this post and I am glad you are safe!

Jun 11, 2022 05:29 PM
Eva B. Liland Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service 661-714-1643

Very timely for your post! It's an ever changing market, you have to adapt and diversify. Gas here now in Southern California is last time I checked (yesterday), $6.39, my cat food went from 43 cents a can to 80 cents, not to talk everything else. The market has slowed down but prices still going up. Everybody wants a million and a half even though interest rates keeps climbing.

Jun 13, 2022 11:28 AM
Eva B. Liland Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service 661-714-1643

Forgot to subscribe, my apologies for double-posting!

Jun 13, 2022 11:29 AM
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

This is an excellent post with great information. Thanks for sharing it.

Have a super fantastic week!
Joe Jackson, Realtor-KWCP

Jun 27, 2022 09:03 AM