Real Estate Crystal Ball

By
Real Estate Agent with Metro Brokers Realty Oasis-BrokerIPTV

Crystal_ball

If you find yourself planning for the new year and wondering where we are heading, well we can only look at the past to go forward in the future.  This link is as practical and readable a report as I have seen.  I believe this article has the basic and fundamental historical facts to be on the money and will remind us veterans,  that this is a business based on cycle after cycle. It is long and full of graphs and charts, but worth a look in figuring out what you may want to do with your business in 2007.

http://www.financialsense.com/Market/pretti/2007/0105.html

In the past booms and busts, the Denver area and Colorado market conditions have been very counter cyclic to the rest of the country.  While many areas of the nation have been posting gains of 10%-12%-18% a year...Denver (excluding the mountain communities) has only kept up with the basic 3%-5%  appreciation, depending on the area.  While other states and cities like Phoenix, AZ,  will see some big declines...Colorado and it's bubble landed five years ago!

My advice; hunker down, batten the hatches and tough it out before the next "Colorado" cycle. The number one item that the Denver and the surrounding communities needs is job growth...and  I don't mean working at Burger King or more real estate brokers.

1.  Keep your office overhead and office costs well managed and or reduced (people don't care about offices)

2.  Look for other sources of income...affiliated business arrangements (title and banking)

3.  Keep more of the commission income you earn and give away less per deal (splits are for part timers)

4.  Increase points of contact with your clients and shore up your relationships (Statistic based newsletters)

5.  Use technology to keep you in as many places as you can be at any given time (Web, Blog, email, vidieo)

6.  Enroll in as many education classes as possible, and not just the industry standards like GRI..but collage level courses in technology and new forms of electronic permission based marketing.

For those of us that have been in this business long enough, we know that there is no such thing as a crystal ball.  The only thing that is certain for sure is change.  Change will be the biggest news item for the next five years. The Crystal ball says get ready to CHANGE.

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Show All Comments
Rainmaker
1,086,461
Bryant Tutas
Bryant Tutas-Tutas Towne Realty, Inc - Poinciana, FL
Broker/REALTOR, Tutas Towne Realty, Inc
Mark, there a lot of newbies and oldies that would benefit from reading this post. Personally I have been doing the same stuff for almost 12 years. Even when business was booming I continues to do the things that made me successful. When it slowed up I did not have to go back and build momentum again, it was already there. RE is a marathon not a sprint. I do have to make minor adjustments in my marketing but nothing drastic. I have added more Buyer specific ads to my biz plan and hired a Buyer's agent but other than that I just keep moving forward. Business has been excellent.
January 15, 2007 11:19 AM #1
Rainmaker
299,082
Brian Brady
San Diego VA Home Loans/858-777-9751 - San Diego, CA
VA Home Loans/San Diego

Look for other sources of income...affiliated business arrangements (title and banking)

Were you aware that broker ABAs are more costly to the consumer? 

January 15, 2007 12:02 PM #2
Rainmaker
451,192
Allison Stewart
St.Cloud Homes - Saint Cloud, FL
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904
We have been where you are going...Bryant is right-stay the plan and it is a marathon I agree.
January 15, 2007 12:06 PM #3
Rainer
51,429
John Hruska
Homes Charlotte, LLC - Charlotte, NC

Mark,

Great post.  I'm going to share with my broker owner.  Thanks.

January 15, 2007 01:04 PM #4
Rainmaker
1,511,275
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate
Good suggestions for a challenging market. It's interesting to note that your technology suggestions in 5 and 6 play a big role in successfully achieving 1-4.
January 19, 2007 04:33 PM #5
Rainmaker
362,705
Colleen Kulikowski
MJ Peterson - Buffalo, NY
Creative Real Estate Solutions...
Great post!  I just discovered it today while doing some research of my post... 
February 11, 2007 06:27 AM #6
Show All Comments
Rainmaker
97,508

Mark Eibner

CRS, ePro,GRI
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