What happens when the market shifts?
Home prices dropping?
Interest rates rising?
Buyer leads dry up?
Let me cut to the chase. I was an agent in 2008 when the market crashed. I made $3,000 that year. Racked up over $50,000 in credit card debt and hustled to find part time work to make ends meet.
The last market crash CRUSHED me financially. I swore I would do everything I could to never let that happen to myself and my family ever again.
While I don’t think another 2008 crash is coming, I do think that market corrections and shifts are a healthy part of any real estate market and it helps to plan ahead. I am always planning ahead for a dry season.
The first area of concern I closely watch is my monthly budget for the business. What is the return on investment on my lead sources (ROI)? Are you tracking this? Is it something you pay attention to? If not, go back 6 months and track where your money is going. This is incredibly important and a hallmark of any successful business owner. Put the items on a spreadsheet and start tracking!
In the same vein as the previous ROI research suggestion, I also look at my systems and the cost associated with them. I know some agents that pay for four CRM’s. And while I sympathize with wanting all the greatest features, are ALL of them necessary? Especially during a market shift? I can see paying for two CRM’s in certain situations but I can’t imagine a scenario where you need FOUR. What I am not saying, however, is cancel all your products and services. You need systems, and leveraging tech is a HUGE part of that. But if you aren’t using the system, either use it to leverage yourself or cancel the service. Waste is your enemy during a market shift.
Another helpful exercise is exploring new venues for growing your business. Looking for new referral sources like Homelight or MyAgentfinder.com would be a great first start. Along with referral sources, I would also recommend looking at how to get on an REO list of some kind. Vendors like Fannie Mae, Freddie Mac, HUD, and the Veterans Administration all have a process in place so you can be added to the list to receive assignments.
Connect with the Best
The last, and what I feel is the most important of all, is find a group of agents that are striving for the same thing and are currently successful to mastermind with. Connecting with other agents that are crushing it is the single most valuable resource I have in my business. You will never run out of ideas, motivation, or creativity when you collaborate with others!