The real estate market is evolving. How can real estate professionals position themselves to win in the months ahead?
Gary Keller, head of the country’s largest real estate brokerage recently joined those warning that a shift in the market is coming. In a recent address he wasn’t bullish on the market in the short term, but he didn’t seem worried about the future of his company.
Michigan is perhaps uniquely positioned to ride out any new correction. It has more affordable real estate, and a highly entrepreneurial population. But real estate CEOs and individual professionals need to be proactive about taking care of positioning themselves and their businesses to survive and thrive.
So what smart moves can you be making now and sharing with others?
1. Marketing Budgets
The last thing you want to do in a downturn is to stop marketing. Instead start mounting up marketing reserves to do more during softer months. Specifically look for tech savvy moves and ways to boost your productivity.
Diversify income streams to make up for volume. Can you add some luxury deals? Rentals? Property management?
3. Keep An Eye Out For Opportunities
Keep eye on opportunities to dominate market sectors, grab discounts on marketing spots, seize new industry relationships and referral partners, pick up clients and market share, and take over online real estate such as domain names, as well as toll free numbers with existing business.
4. Align Yourself With The Best Partners
One of the most important moves to make is to align with the best business partners. You need agents, lenders, and title insurance companies who aren’t going to take short cuts, and who are solvent enough to make it through too.
5. Keep A Handle On Overhead
One of the top killers in the last correction was overhead. This may not be the best time to be taking on big new leases or extra square foot and more staff than your volume can handle. Make sure you can easily scale your business up and down.
6. Make Sure Your Team Has The Right Mindset
Make sure your team is on the page to do business right, no matter the pressure and temptations. That doesn’t just mean well, but avoiding the temptation to take short cuts and get too close to committing fraud. You can be sure that once banks start losing money or start getting hit by regulators they are going to pass the blame down right on to the little guy who can’t afford a multi-million dollar legal team.