National Association of Realtors hardly was the reason to smile with it’s the latest update on real estate market. Across the country the home sales plunged 27%. Boom! Upside down that is.
As I was watching MSNBC report, I kept wondering why the announcers kept smiling? And why this was presented to the public as something completely unexpected?
The reason number one according to them is the fact that government has ended tax credits to home buyers. The announcer, a lady with earrings the size of the basketball ring, has indicated that home sales prices were falling before the end of tax credits and the fact that there could be “some other factors” in our economy that contributed to these numbers.
Excuse me, “some other factors”? And “could be”? Is this reporter located on some lunar base? Or she was teleported a minute ago straight from the 60s? How about the fact that America has received the third nation status rating from the United Nations? What about the fact that almost everything we buy has a stamp “made in China” on it? How about the fact that we have the highest unemployment rates since depression? I could go on and on but I’m not going to because we clearly will never get the real picture from MSNBC and almighty networks.
What does it mean to real estate agents? The inventory goes up and prices will go down, you know it. Your commissions therefore will go down also, and perhaps you seriously should considering working for broker who offers 100% real estate commissions. You also have to realize that the competition between real estate agents will become fierce.
Since Internet is the most affordable way to promote yourself online you should start focusing on your individual promotion via search engines and social media networks.
Every real estate agent has to realize, this is critical. Let’s just say that your income is reduced by 27% on average in conjunction with overall market. That is approximately a third of it. What are you going to do about it? Rely on your broker to handle it and provide you with all the leads you can handle?
It is a historically proven fact that people who rely on someone else during harsh economic times perish and people who take control of their actions have much better chance of surviving. Survival is a strong word but I have chosen it for a reason because there are no indicators whatsoever that things get better. If you can name one reason please, please let me know.
If you think about it, the tax credit was just the patchwork and it held real estate market temporarily, kind of like a duck tape. And whoever designed it also knew that it will work like pain pill to relieve the symptoms but not to cure the cause. If you have a car and the engine is not running and that’s what our economy is, the engine, duct tape ain’t gonna do much. Many think that tax credit should be extended or even increased to keep the market going but that again will not change the fundamental conditions of real estate market because the truth is Americans are running out of money fast and realtors are not an exception.
Let’s think about it long and hard what can you do personally as a professional to leverage this indefinite market decline and leave the smiling and blithering up to MSNBC talking heads.