Saturday, October 07, 2006

The Real Estate Slow Down - What Is A Realtor To Do?

With the real estate market changing there are two important thoughts for a Realtor to consider.

  • Don't slip into denial.

  • Change your techniques as the market changes.

I was a Realtor during the last great inflationary period. Interest rates on a new mortgage were at 15%. Real estate offices were closing, companies were going broke, Realtors were going extinct.

The company I worked for closed dozens of offices - including the one I managed. Rather than continuing managing I went back to selling - and had some of the best months of my career. In one month I put together 12 single family home transactions.

In fact during that time I referred to myself as a Jack of all trades & a master of one - real estate. I've since been humbled. I guess now I could refer to myself as a Jack of all trades, and I've been mastered by many.

There is one particular pleasure I enjoyed in the real estate profession - constant change keeps you fresh. It is fun evolving with the new rules, laws, regulations, court decisions, and market conditions. The pendulum however can swing a long way.

What happened?




As good as many Realtors were, they only evolved with markets, revolutionary change created a die off. Unable to adapt they kept doing more and more of what they had done successfully before - and disappeared.

Let me suggest two thing with hard times possibly ahead for Realtors.

Keep on keeping current in the real estate industry, but dabble in other knowledge and technology also.

Make some big changes if what you were succeeding with is starting to fail, there are some powerful tools to make revolutionary changes in your capabilities, use them.

Real estate markets can go up or down, I've watched as houses went down by double digits for years. I've seen bankers offering terms of no payments for a year on a property well under appraised value trying to unload foreclosed (REO) inventory - and having no takers.

Under these conditions, Realtors can still make good money, you will just not be able to make it the same way you did last year.


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