Real Estate – How to Survive in the Current Real Estate Market

Sunday, July 26th, 2009 Blog, Real Estate by admin

Real Estate – How to Survive in the Current Real Estate Market

Date: July 19, 2009

It can be tough to survive in the current real estate market but it can be done. If you have even taken a glance at reading the headlines you know there is bad news everywhere. The United States is in a recession. The economy is down. Companies are asking for bailouts. Bad news seems to be everywhere.

We are all looking forward to the economy bouncing back. The question on the mind of everyone right now is “When will things get better”?  Traditionally, real estate has been one of the most secure long-term investments that you can make. After all, everyone needs a place to live. For most people that means either home ownership or renting. A few lucky people will have a home included with their job. Even then, it comes down to the same choice of own or rent.

With the headlines of today the future for the real estate market looks bleak. We are in the beginning stages of one of the largest recessions to plague the United States in memory. People are scared. Financially, most people do not know what to do or where to turn. People are losing jobs and are losing (or in danger of losing) their homes.

But, in the middle of this economic turmoil is opportunity. Some people have the funds and want to take advantage of the lower housing prices and lower interest rates. There are looking for that just right opportunity to purchase real estate at rock bottom prices. These people know that when the market gets better and the economy improves people will want to start buying real estate again. When that happens they want to be the ones with property to sell and they will need real estate agents to help them to do.

Until then, it’s important to make a plan for yourself on how to survive in the current real estate market. First, you need to know that this situation is temporary. It will not last forever but it may get worse before it gets better. However; there are ways to get through this crunch. The following tips in this e-book will help you weather this financial storm with your business intact.

Have you ever heard the saying “When in danger or doubt, run in circles, scream and shout”? Too many people seem to follow that advice today instead of calming down. No matter how bad things seem to be now is not the time to panic. The first thing you want to do in any crisis (real estate markets and otherwise) is to calm down.

In reality, most economic situations are survivable if you make a plan. When you are in a panic state it is almost impossible to make a good decision. So take a few minutes to breath deeply. Walk around the block as many times as you need to. In short, do whatever it takes to clear your head of any rushing thoughts and feel in control.

Find the bright side. Look for it and treasure it. While this may be easier said than done it is essential to success. Studies have shown that people tend to get what they expect out of life. If you expect to fail then you will. Turn the tables. Expect not just to survive in the current real estate market but also to succeed. Times are going to be tough. There is no way of getting around it. People everywhere in the housing market are losing their jobs. This is just as true for entry-level construction workers as it is for high dollar investors. Keeping a positive attitude is your ticket to weathering this storm. Plus, it can help you find avenues of success that you would otherwise overlook.

Stay focused. Sit down with a paper and pen and evaluate the situation. Ask yourself what a customer might want. Try to look at your business from all the different perspectives that you can. Take the time to think like a customer. Is there a new way of marketing that you could try? Is there a new market opening up? Make notes on anything that comes to mind.

Think outside of the box. Now is the time to be flexible and creative with ways to survive in the current real estate market. If the old ways of doing business are not working anymore it is time to change them. If you had time to change one thing about your business what would it be? Would you learn a new computer software program that would help you keep books differently? Would you reorganize the office? Take advantage of the slow period in your business to try something new. Taking the time to make a change can help you feel more in control.

Guess what? When you feel more in control of your life you almost always become more productive. In this case, being more productive means making a sale. If you have been putting something off because you didn’t have the time now is the time to try it. Using the extra time that you may have can lead to a positive permanent change!

Let’s face it. Some listings will sell quickly. Some will take up all of your time and yield nothing for your labors. Be choosy about which listings you take and which ones you walk away from. In this market the sellers who are the most motivated are the ones who are going to sell their real estate. Pick the listings that you can be reasonably sure will move. Politely decline to take the ones that won’t.
At first, the thought of walking way from a listing may sound harsh or strange.. The temptation in a bad market is to take all the listings you can in the hopes that some of them will sell. It’s sort of”real estate roulette”. Ultimately, being choosy will improve your reputation and it may encourage sellers to be more willing to work with you. Until then, do not spend your time on listings that you feel might go nowhere.

Listen to the customer before telling them to go talk with a lender. When a potential buyer comes to you sit down and talk with them. Help them to honestly assess where they are financially. Make suggestions where you feel they need it. Once you do this you can send them to the lender you feel will give them the best shot at success. It may seem tedious but it will give you the best chance for closing the deal. When the buyers tell their friends what great service you gave you will get even more business. Taking time with a buyer is almost always worth the investment.

Be realistic. You know the real estate market is tough right now. Do not expect to triple last years sales. In fact, you may not even reach last year’s sales goals. Look at the big picture. Decide what you feel like you can reasonably do in the current market and make that your goal. Whatever your goal is keep it reasonable. Hopefully, you will surprise yourself and exceed your mark!

Learn from others. Some people are still selling houses (a few at least). Look at what they are doing and how they are doing it. Apply what you can use in your real estate business. Don’t merely copy others. Adapt their successful techniques using your own unique style.

Identify any resources that you have not tapped and use them. You have spent a lot of time and effort to build your knowledge base. Now is the time to make it work for you by sharing what you know with others. Fortunately, there are lots of free web hosting and blog opportunities online that can help you do just that.

Research the internet and provide buyers with the research they need to make decisions. Do you have a blog? Create one and post tips so potential buyers can learn about financing options in the current real estate market. Post information so sellers can better understand what a buyer is looking for in real estate right now. Make sure blog visitors know how to contact you to actually close the deal.

Keep your advertising as up to date as possible. This tip cannot be stressed enough. When people are ready to buy a home they need to know you are there and they will need to how to reach you. The only way they will know is if you advertise. Your advertising may need to change but it should not stop. Finding ways to be creative in getting the word out about your business will yield more customers for the long haul.

Some ways to advertise your real estate business might be to sponsor Little League jerseys. Alternatively, you could drop business cards absolutely everywhere (if you don’t already!). Why not offer to donate part of the profit of a home sale to a well-respected community charity? Tell the charity that for every quality listing that you get from them that sells you will give them a certain percentage of your fee. The charity may be very happy to help you promote your real estate business and the press may give you free publicity.

Another plus is that by donating a portion of your commission to charity you will get a tax write-off. In some cases, that tax-write off could wind up helping you more than just getting a sale. Check with your tax professional for more information.

Take good care of yourself both physically and mentally. This is not the time to neglect your personal care needs. You need to be alert and able to make decisions at all times. Those tasks are much harder to do if you are not feeling well. To strengthen your immune system make sure you eat right, exercise and get the rest you need.

One thing is for sure in life, stress happens. Find constructive ways to deal with it. Pay attention to any signs that you beginning to get overstressed. If you find yourself snapping at others more than usual you may be too stressed. Other problems can include trouble concentrating or problems sleeping. Getting regular exercise can be a great way to handle stress. Listening to calming music or getting some fresh air may also help. No two remedies work to relieve stress for everyone. Keep experimenting until you find the methods that work the best for you.

When business is bad it is easy to get depressed. If you have lost interest in doing the activities that you love, and if this lasts for two or more weeks you may have developed depression. This is a treatable medical condition. Not all depression requires medication. Sometimes lifestyle changes are all that is needed. Depression is not a sign of weakness or of some moral failing. You may be at slightly higher risk of developing depression if you have a family history of the condition. If you think you may be depressed talk to your health care professional. They can help you decide on the best treatment options to help you to feel better as quickly as possible.

Don’t forget to use all of your resources to help you survive in the current real estate market. Friends are an often-overlooked resource. If you have friends that could open doors or lend expertise ask them to do so when appropriate. You might just be surprised at how much help they are willing to give.

Speaking of friends, if you have not already developed a network of friends this is the time to do so. Friends can help balance the bad days with good ones. They can keep you focused and help you keep sight of what is the most important. A few close friends can give you the support you need when you need it most. Take the time to reach out to your friends or develop new ones if you have not already done so.
Now that you have these great tips there can be no question. You will survive in the current real estate market. In fact, you’ll not just survive but with the tips from this article I think you are going to soar!