If you are a Realtor, Loan Originator, Builder/Contractor then get ready for what could possibly be the biggest surge in Real Estate activity since 2005.
The overall trends I am seeing across the country with my real estate clients are:
- Buyer demand is very strong
- Listing inventory is very low
- Hot Buyer Prospect pipelines are in holding patterns waiting for something to buy
- Almost every transaction is a multi-bid
- Most every listing pends within a few days of going on the market
Last year the Real Estate market was better than most had seen in years. However, the greatest activity was in the first eight months. Fall transactions trended down while inventory and time to sell increased. Interest in buying picked up again in the New Year only to find seasonally adjusted lower inventory and then (for northern climates) winter storm and cold sent buyers back inside.
My gut instinct suggests that since the market cooled last fall, and the weather which delayed transactions, will now “spring” up and the next 120 days could see the best real estate market and demand since 2005. My hunch was confirmed at a Realty Expo I attended in January and a recent article I read that predicted the same:
The danger and potential challenge to consider with an upswing is not being able to scale with demand if the faucet turns on wide open. If the last 90-120 days have been tough with a light pipeline, less sales and even lower optimism and attitude; you could miss the opportunities before you. Any strategic partnership or relationship that is not solidified in the next 30 days will most likely not be until conditions slow down. Here are 6 steps you need to do now to ensure you are ready to capitalize:
1- Make your checklist on what systems, processes, resources need to be in place if business volume/demand doubles or triples in the next 60-90 days. You need to make room for increase and the worse scenario is not being able to properly follow up or feel you can’t process anymore business. Turning business away is a death sentence that will eventually haunt you. Start making the changes now so you can be ready when the demand hits.
2- Shore up your key strategic relationships now. Make a list of the key players you want to receive referrals from and set a time to meet and solidify the value of sending business to each other or having your services available to their clients. You don’t want to watch the train leaving the station without you on it.
3- Lock in your time management disciplines. Demand for your time will be higher than you have experienced in years. If you don’t tighten up now – you will find “Tyranny of the Urgent” taking over and a lid will be placed prematurely before you have a chance to reap. Start by building your Ideal Week, then time block daily planning your day the night before. Identify and block time daily your High Payoff Activities and schedule your clients/prospects when you are available- not when they are available.
4- Schedule time to prospect and lead follow up daily. This is extremely crucial. Most abandon this immediately primarily because they don’t like doing it but also because they fear not being able to properly serve or handle the business. While that may be a valid concern- the solution is to work on number 1 and 3 above so you can process more business and continue prospecting so you can get a paycheck three, six and twelve months from now.
5- Overcome complacency before it arrives. For many of us, complacency becomes our driver if all of a sudden it is ducks on a pond. No matter how much we suffered after the last down turn and swore to our family that if given another chance at a boom, things will be done differently; we all of a sudden find ourselves kicking back and riding the tide. I am not implying that you can’t or shouldn’t enjoy the moment. Allowing laziness and taking everything for granted this time will lead you back to where you were last time. Get accountability or coaching to help with goal setting, time blocking and staying in your business disciplines.
6- Save and don’t spend your money. Discipline yourself to increase your cash reserves, keep your spending low and pay off debt. You need to watch your money and track your production. If you don’t have a budget get one and if you don’t manage your expenses get Quick Books and generate monthly profit-loss statements. The biggest tragedy is to see expenses climb at or higher than your income and when the dust settles, net less than you did last year. It is easy to spend when money is coming in faster than ever. Resist the urge to increase your lifestyle to your new earning level. The market is very volatile and can easily turn for the worse as quickly as it heated up.