The Market Is Shifting. Are You Prepared?

Hello:

In 2007, the world ended and it was nearly impossible to sell real estate because buyers sensed a shift in the market and realized that if they waited, it was likely that they could get the property cheaper. In the years leading up to this time, buyers knew two things, if they were breathing they could get a loan. and, if they held the property for just a few short months, they could expect a substantial profit as their reward.

Much the same as in the Great Depression of the 1930's, it was pure greed that fueled the runaway market and, drove its collapse.

Realtors were not immune to the effects of this collapse. Many lost their families, their homes, and, their businesses. Many of those have yet to recover today.

In our offices this past week we spent a great amount of time analyzing the lessons that we learned from the demise of this seemingly never-ending (we now know that they always end) real estate cycle.

The following are the lessons that we learned. I share them with you in the hopes that you use this information to insulate yourself from the effects of this shifting market.

1: IGNORE THE NOISE: When the market shifts, everyone around you will have opinions about its cause. A few will have thoughts on its survivability. You have to ignore them all. Your focus should be on finding the motivated buyers and sellers that exist in every market. Your energy should be spent doubling down on your lead generation efforts. Sifting through the multitude of leads to find the few who are ready today. In a shifted market you do not have the luxury of working with the unmotivated.

2: CASH IS KING: Brian Buffini says get checks ahead. And, I cannot think of better advice. Pay yourself only what you need to meet your monthly expenses. Bank the rest in your business account to the winter storm that is surely on the horizon. While your eyes may tell you that you have time, your brain has to recognize that you do not. Build a war chest for the future.

3: BEWARE THE EXPERTS: In a shifting market, experts are everywhere. Listen to those who have a vested interest in your success. Coaches, mentors, and, mastermind groups will keep you accountable to your goals because your success is tied to theirs. Everyone else should be disregarded as white noise in the background. You cannot allow yourself to be distracted from your primary responsibilities, lead generation, and, lead conversion.

4: DON'T DRINK THE KOOL AID: People will tell you that you are too big to fail. Rest assured you are not. Stay focused, recognize your vulnerabilities, and stay on task. 

5: SEIZE OPPORTUNITY: In a shifted market opportunity doesn't tap you on the shoulder to present itself. It does, however, answer both the door and, the phone. This is a time when you must sharpen your lead generation and conversion skills. 

6: REDUCE DEBT: Now is not the time to purchase a new car. It is the time to reduce debt. Pay down (or off) your credit card debt. Don't take on any new debt. And lower your monthly expenses at all cost.

7: GRAB MARKET SHARE: Contracting Markets present the best opportunity to gain market share that will carry forward when the market starts to expand. Double down on your marketing and prospecting efforts. And build your brand and your footprint in your market. 

8: PAY ATTENTION TO THE WARNING SIGNS: They are all around us.  Don't ignore them. Recognize them. And begin inoculating yourself from the effects of the emerging market by positioning your business to capitalize on the opportunities that will be present as the market shifts.

9: CREATE VALUE: In a shifted market those who survive must be able to articulate and deliver exceptional value. In a shifted market experience matters. Spend money only on trainings that will enhance your knowledge base and skill sets. 

Finally, number 10 is simple. Understand that there is opportunity in every market. recognize it. Capitalize on it. And, don't rest on your laurels, continue to seak out the emerging opportunities as the market continues to evolve. 

#WeekendWishes

Proud to be in business with you.

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