Are You Ready to Thrive if Real Estate Market Shifts?

By
Real Estate Broker/Owner with Cam Realty and Property Management
https://staging.activerain.com/droplet/4VjB

Are You Ready to Thrive if Real Estate Market Shifts?

Those who have been in the real estate industry for a while have seen the ups and downs. Most of us are in it to win it, others only do well during sunny days. Which category do you fall in?


Are you ready to thrive if the real estate market shifts? What are your plans? Did you do well during the housing market bubble crash in 2005?

I was lucky to find out about short sales prior to the crash in 2005. One of my sellers owed more than the value of their home, their lender(Wells Fargo) suggested we do a short sale. It was new, not too many heard about it but after the crash, it seemed like we were all talking about Short Sales. I shifted my efforts to assist homeowners who fell into this category as Florida was one of the states that suffered a great deal. When market shifted in 2005, my local  market was driven by short sales and REO’s. Most agents stayed away from short sales, others used it as an opportunity and became experts at it.

I’m not an economist but I know we’re getting close to that “cycle” when the market will start to shift. If it doesn’t, that’s great!

If you follow your local market closely, you know how which market segments you should concentrate on if the market starts to decline.
During the housing crash, most of my listings were short sales, I marketed to investor buyers as luxury homes weren’t selling as fast as sellers wanted to sell them. I also reached out to asset managers I’ve worked with in the past to list their REO properties.
Another segment of the market that did well regardless of the crash was 55+ adult communities. I never marketed to this group in the past but I will be doing so starting September first.

Here are some ideas you can explore if there’s a downshift in the real estate market;


-Market to 55+ adult communities. Do a mail-out to those who owned their homes at least five years as well as absentee owners. Your first mail piece could be a postcard with a market update or a newsletter. Whichever you decide, be sure to come from contribution rather than “I LOVE ME..I’m the greatest Realtor”. List local events, new businesses, upcoming garage sales in the area. Follow up with a handwritten card two weeks after your first mailout. Your third piece can be a postcard(I like jumbo cards, they stand out).

-If you’re willing to work with short sales, learn anything and everything you possibly can about them, become the expert. Find a good, local real estate attorney to work with on your short sales. I do not negotiate my own short sales, I team up with a real estate attorney who has the staff to do just that and homeowners get a free one-hour consultation with him.
Once you feel confident, check lis pendens and market to these homeowners. Keep in mind, not every distressed homeowner will end up in a successful closing. Again, come from a place of contribution and help these homeowners to avoid foreclosure. I hope we never ever..ever..ever experience as many short sales and REO’s again but what if? It’s best to be prepared.

-Work rental properties. There will always be a demand for rental homes. Reach out to absentee homeowners via mail-outs and Facebook ads.

-Do BPO’S. It is possible to make $3000.00 to $5000.00 a month just by doing broker price opinions. I know it’s possible as I’ve done it. Some of the companies I suggest are Clear Capital, RRReview, Core Logic, Ocwen/Altisource. There are many others, these are just a few I worked with and who pay.

-Stay away from purchasing shiny objects. Go over your monthly subscriptions and cancel the ones you’re not using or haven’t brought you any business within the past twelve months.

-If you are an ActiveRain “Rainer”, seriously think about becoming a Rainmaker. I understand you many not be comfortable to put your posts out to the general public but you have to get over that fear at some point. Reach out to any of the Rainmakers who have been blogging and ask their opinion, they will freely share it.

-Work a farm or two, become an Ambassador of those neighborhoods. Organize a garage sale, ice cream truck, do at least one mail out each month. Get a sign made that reads “Yard of the Month chosen by ABC Realty” and reward one homeowner a month with a Starbucks gift card, coupons to local restaurants(you have to actually visit restaurants and share your idea to get the coupons), flower seeds and hand deliver them with a market update to the winner.

There you have it, just a few ideas. It’s best to be prepared for the worst then not have any business. Stay positive and know that you have what it takes to make it in any market, all it takes is a plan. Once you have your plan, work it each and every day.

Are You Ready to Thrive if Real Estate Market Shifts?

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Tony and Suzanne Marriott, Associate Brokers 08/22/2016 08:53 PM
  2. Ginger Harper 08/28/2016 10:53 AM
  3. Winston Heverly 11/25/2016 10:32 PM
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Rainmaker
976,085
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

In the Clermont, FL Real Estate market? Talk to (407) 929-1852 Beth Atalay, Real Estate Broker/Owner with Cam Realty and Property Management.

Aug 23, 2016 04:33 AM #65
Rainmaker
2,375,016
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Having the knowledge and experience prior to a shifting market is so important. Having said that, our short sale listings is .03% of our current market.  But I am ready if the need returns.

Aug 23, 2016 04:56 AM #66
Ambassador
1,286,506
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORs® in Clark County, WA

No wonder this is a feature - great advice and post, Beth. We also did short sales and BPO's during the downtown - it's how we kept in business. We are always carefully monitoring our market and making adjustments to ensure business. D 

Aug 23, 2016 05:36 AM #67
Rainmaker
371,516
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Specializing in Brookside, Waldo, Prairie Village

Practical advice!  For a long time now I have been focusing on helping seniors who need to downsize--that has proven to bring me some good extra business.

Aug 23, 2016 08:07 AM #68
Rainer
203,291
Derrick Guevremont
Counselor Realty of Rochester - Rochester, MN
Rochester MN Homes for Sale

Truly helpful advice from someone who has obviously tried many systems.  Thank you for this post.

Aug 23, 2016 10:06 AM #69
Ambassador
2,137,168
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Beth. I'm glad you got this post featured. It's a great post and has wonderful information for all of us. 

Aug 23, 2016 12:08 PM #70
Rainmaker
139,538
John Van Hogen
Keller Williams Realty Professionals - Beaverton, OR

A market change is definitely looming Beth. During the last downturn, I clearly remeber all the agents who said they avoided short sales because they were a hassle! We helped many sellers avoid a foreclosure, buyers purchase a new home, and investors find highly profitable opportunities. Glad to have been part of the Realtor team that slowly put the housing market back on it's feet. Don't want to see that again anytime soon...but ready to go if needed.   

Aug 23, 2016 03:22 PM #71
Rainer
131,896
Kathy Goldman
REVA Online | SEO Boost For Real Estate, Social Media Marketing for Real Estate and Real Estate Blogging Expert - Waukesha, WI
Social Media & Marketing for Real Estate

I think the hardest part of the shifting market is not that the agent is unprepared, it's that the consumers are. No matter how many posts I have written for my clients about interest rates and market shifts, they don't seem to understand that nothing lasts forever. Your article was spot on and I loved it!

Aug 24, 2016 05:37 AM #72
Rainer
131,896
Kathy Goldman
REVA Online | SEO Boost For Real Estate, Social Media Marketing for Real Estate and Real Estate Blogging Expert - Waukesha, WI
Social Media & Marketing for Real Estate

BTW, great first article and welcome to ActiveRain! Our Rainers are the best and they know an awful lot! Thanks for sharing! I have clicked the "Follow" button on your profile so I can catch additional posts! 

Catch ya later. Ciao!

Remember our Real Estate Blog Experts Motto:  

"If it doesn't make you money, you shouldn't be doing it!"

Aug 24, 2016 05:38 AM #73
Rainmaker
1,784,382
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Hi Beth... I've lived through so many economic cycles over the past 25 years, I believe I can make a go of it no matter what... and all things considered I did not do badly at all during the most recent downturn.

Aug 24, 2016 08:33 AM #74
Rainmaker
42,795
BARB KELLEY
NextHome Realty Center - Cypress, TX
The 'Golden' Experience Team!

Great post!  Congrats on the feature!  You do lead with confidence and seek to provide relevant information!  I also farm to 55+ and hold the SRES designation. It's very rewarding and a large part of my business -- so many 'Baby Boomers' are downsizing or moving to retirement communities.   

Aug 25, 2016 12:45 AM #75
Rainmaker
160,115
Will Allen
Long Beach, CA
I deliver successful results,results that move you

Nice article and I'm 'in it to win it' . . .  came through the last cycle smelling like a rose . . .  it was when the REOs dried up that I had a bit of the tough trasition.  You've shared some good ideas, thank you very much!

Aug 25, 2016 01:13 AM #76
Rainer
3,090
Kevin Wall
Cincero Investment Properties - Duncanville, TX
Real Estate Developer and Builder in DFW

Everything runs in cycles.  The reason I started building is because investing in existing properties is too expensive.  I make my own discounts.  I like buying land at tax sales and developing it.  

If the market turns and people can't afford houses, I will still have rentals.  Down markets are a great time to buy non-performing notes.  

I like your attitude.  Down markets are natures way of accomplishing real estate Darwinism.

Aug 26, 2016 10:42 AM #77
Rainmaker
247,583
Michael Mahoney
Keller Williams Realty Serving Greater Boston - Boston, MA
Boston Realtor with Keller Williams Real Estate

I keep coming back and re-reading this. Thanks again for the reminder of what goes up must come down. Mike

Aug 26, 2016 09:36 PM #78
Rainmaker
444,117
Jon Quist
REALTY EXECUTIVES TUCSON ELITE - Tucson, AZ
Tucson's BUYERS ONLY Realtor since 1996

Well written. Our situation here is amazingly low inventory, even at higher price ranges. Sellers market for sure. Not sure if that qualifies as a "Market Shift" but it sure is a pain in the you know where!

Aug 28, 2016 02:04 AM #79
Ambassador
385,993
Emily Medvec
Realty One of Santa Fe - Santa Fe, NM
Realtor | Serving Santa Fe & Northern NM

Yes, shifts always happen. Good tips for those of us in our industry. Where I see the impact hitting the hardest in any shift (up or down) is for the home owners. For some reason, they often are the least in the loop. The future is impossible to predict. What can be done is to keep all customers and clients informed. Thank you. 

Aug 28, 2016 08:02 AM #80
Rainmaker
192,970
Sham Pathania
Save Max Real Estate Inc. Brokerage - Mississauga, ON

Great tips. Assisting 10 renters a year means a lot for those who are not busy. Some of these clients will come back when they are ready to buy! That means, part of your next year's business is ready. It hard and more time consuming but that's the strategy one easily adopt for future business.

Aug 28, 2016 10:40 AM #81
Rainmaker
775,882
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Excellent ideas!  I love your shift to 55+ homeowners who will be ready to either downsize or relocate nearer grandchildren.  Kudos to you for learning about short sales.  Ditto on that topic!

Aug 29, 2016 05:08 AM #82
Rainmaker
259,085
Kim & Kristine Halverson
www.LiveWorkSiliconBeach.com, Santa Monica Real Estate :) - Santa Monica, CA
Realtors

An excellent thought provoking question, and one we discuss at our team meetings. In the last down market we did short sales in Santa Monica and Los Angeles. It's tough to predict when the market will shift, but being prepared is half the battle. 

Thank you for asking!

The goal is not only survive, but to thrive.

Aug 29, 2016 06:21 AM #83
Rainmaker
2,967,793
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Hi Beth Atalay ,

I was so glad Winston Heverly re-blogged this post. I missed it because we were out of the country on vacation. Well written and something everyone needs to think about. Those of who have seen the cycles and survived have often thrived as well. Consumers want a professional even more when the going is tough.

Nov 26, 2016 04:29 AM #84
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Beth Atalay

Cam Realty of Clermont FL
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