June 21, 2022
Opportunity Knocks & Information is Power
Fortunes are made in times of adversity. Changing real estate markets, adverse equity markets, and rising interest rates all contribute to opportunity.
This is when opportunity knocks. A time for leadership to stand tall!
This is my third adverse economic cycle in residential real estate since 2006:
- 2007 to 2010 subprime & equities meltdowns and the deleveraging of America.
- 2020 COVID pandemic and the “closed” economy.
- 2022 equities & housing markets’ erosion in its current state.
Prepared and focused leaders are leaning into these adversities versus watching them go by on CNN or CNBC.
In my writing on March 29th, I cited a heads-up to course correction – never did I see it coming so very fast.
Now more than ever your real estate and mortgage professionals need your leadership and guidance. Every social gathering has real estate conversations, current market questions, and predictions for the future, whether three months or three years out.
In the 2007 to 2010 time frame and again in 2020, we published market-based facts to our real estate professionals twice weekly, in visual graphic formats so they could be shared with clients. Our new escrow openings, our escrow cancellations and newly ratified agreements or listings – all the life blood of a real estate operation. I was often asked, “why are you being so transparent with what could be bad news?”
My response was “this is not bad news; this is the news based on facts and our real estate professionals’ clients appreciate these reports 110%.” This is not about good news and bad news, it about fact-based advice for our clients.
With facts, each of us can make 1,000 decisions a day and be very smart with consumers. With facts, we become experts. Storytelling is somewhat worthless. Our opinion is one among 1.6 million real estate professionals.
With the facts our clients can:
- As a seller, decide to set the comparable prices vs react to market pricing.
- As a buyer, know when to say, “no bid.”
- Make informed decisions and measure the risk of doing nothing.
Some of the toughest decisions in real estate are when to say no and when to say yes.
I reflect on the Great Recession and the onset of the COVID pandemic and having dozens of conversations with so many clients. Many felt their “issues” where their own, when in reality these forces impact all of us.
A few of my favorite quotes were:
- “When the sky falls, everyone gets hit in the head,” and
- “If you have to catch a falling knife, it hurts a lot less if you catch it early.”
The guidance is to publish facts to your real estate professionals. They in turn will educate their clients to make informed decisions. This drives market share and brand awareness!
Its proven! It works!
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