Is your business plan in real estate simply to "wait for the market to improve?"
If so, with all due respect, let me say, "ARE YOU FREAKING KIDDING ME? That is not a plan. That is an admission you have no idea what you are doing and the poor market just 'outed' you."
Perhaps a better question for is, do you even have a plan? I mean, a written plan that you believe, update and follow.
At my first job our department's staff would split time between bemoaning and joking about management and management's avoidance of the "P-Word".... PLANNING! Eventually, after several rounds of layoffs that company folded. (I was let go in round three or four but had expected it and had a plan.) Much of the company's failure can be attributed to the lack of a plan. And without a plan, how would any of us ever know where we needed to go?
I enjoy Jennifer Allen's blog and she has a great post Are You in this for the Long Haul? (Or are you planning to quit in six months?) This post is really about Jennifer's plan for flourishing in the current market. I think it is a great plan. And Jennifer is a great example of a dynamic successful professional that offers a candid view of how she succeeds. Your plan can be different but you better have one.
There is success in any market conditions in any industry. Using the market as an excuse while others are still making money shows how emotional justification is used to justify one's failure to be good at a job and a failure to work to be better. But I digress...
A great plan is a living document. It changes as conditions change, as situations change and as we learn.
And, if you are going to work on a plan but not keep it current, you are committing to dangerous paths.
For instance, if you were driving across the state and you came upon a washed out bridge, you'd alter your plan, right? Same goes for business and markets!
How would you feel if you were sick and your doctor decided you should just wait to feel better before he will see you? Likewise, are you sending signals to clients that they all just need to wait for the market to improve before you can be of much help?
I say that approach is crap. It declares you are powerless to do your job. If I were a customer, my take away from that would be...
"Well, if that agent/broker is powerless when things are tough (and when I need them the most), then their implied message is they are powerless regardless of the market. Now exactly why am I paying them if they are so powerless?"
Would you want someone with no plan to perform surgery on you? Or sell your house? What about try to get you a loan? Or drive you cross country?
No plan usually equals waste, cost, aggravation and often failure.
Will a plan insure success... or survival? No. But it sure will improve your chances! And at the end of the day, this is one of the best way to influence your own success (and the success of your clients)!
Good post, most agents are just letting the current take them along, and not stepping up and taking control of their business.
Great post. You have to keep working your plan, and prospecting every day. The people you talk to today may be your closing next month or next year. In the famous words of George Michael "You gotta have faith!" AND you have to work at it. Nothing worth having is ever easy.
Betina
Great message. A plan is what seperates the haves from the have nots.
I have heard people being advised by their Realtor to take their home off the market till the market improves. I have tried to get those listings (3 in last 3 months) and unfortunately they are loyal to their listing agent and won't move. Do have some bullet statements to use at those listing appointment calls
Those who can survive in the current market will thrive when the market recovers. Those who thrive in the current market will become superstars when the market recovers.
Great post. Very relevent for today's market. We started working on an alternative way to keep good income in real estate about 2 years ago, and it is paying off very well right now. We are expanding the reach of that same program to grow it more.
Glen, waiting for something to happen /change, etc. is not a plan. Prospects do not just pick up the phone or do an Internet search to buy a house, find a mortgage, find a title company, they respond to the hard work of an agent or representative that gets their name out there. Plain and simple.
Great post. You know form my previous post that we are definitely on the same sheet of music.
Thanks
Bo
Home Realty Group Dale, exactly... "just letting the current take them along" I wonder how many would never accept that from the people they do business with.
Betina Foreman (Keller Williams Realty, Inc.) Betina, it is indeed about that plan to keep the pipeline of opportunity for next month and next year flowing!
Real Estate Fergus Falls, MN 56537 Ryan Field (998home.com Real Estate) Hi Ryan, you are right and made great summary!
Stanley Stepak - Northeast Ohio Realtor (Avon Lake, Bay Village, Westlake, OH) (Real Living / Realty One - Avon Lake, OH) That is interesting. For people to leave their house off the market based on an agent's advise shows those agents have positioned themselves, right or wrong, as trusted advisers. It can be so hard to convince someone to consider other options at that point and is why we work so hard to become trusted advisers. Unfortunately, as in the cases you noted, sometimes the trust may or may not be well placed.
If these folks really want to sell, then the cost of having the home off the market will possibly be more than they will gain by selling later at a higher price. But you have to earn the right to explain this and to be sure of their goals.
Mike Wong Realtor, GRI (Keller Williams Realty Southwest) Mike, you nailed it... survival of the fitest. While not comfortable, the fit and smart know that down market cycles help clean out many folks that should never have been in the industry.
Jim Crawford ~ Atlanta Real Estate-ABR E-PRO (RE/MAX Greater Atlanta) Jim, thanks for dropping by. I always enjoy your blog! From reading your posts, I could tell you were working from a plan and were updating your plan as things change. Smart, smart, smart... and, even better, paying off!!
Great post. unfortunately there are too many agents that think sitting and waiting is an option. My company has stepped up the advertising and marketing when most other cut down on their advertising. Now, that the market is improving, we are busy, they are not
Anne
I haven't given up just trying to find buyers. Still seeing a lot more listings than buyers.
I beleive "Waiting for the market to change" is certainly a plan. It's just it's a plan for failure. Anyone not be proactive in this curent market will fail. It's just a question of when. I've already changed directions twice this year and may do it again if necesary. I'm looking for my sweet spot :)
Bo Hussung/ Title services in all 50 states (Cogent Closing Associates) Bo!!! Indeed, it is about trusted relationships that are earned and few are earned by accident...most by effort following a plan! Right on!
I am sorry but there is nothing wrong with the market, at least not in my area. I welcome the challenge. Bring it on. I am seeing agents having their best years ever. it is what you make and nothing less.
GREAT POST !!!!!!!!!!!!!!!!!!!!!!! Sure beats all the "woe is me" features I've been reading here! And our market is GREAT!
I am doing fine in today's Northern Virginia market. I work hard everyday to find creative ways to connect with clients and potential clients. Blogging is part of it and flexibility is another. The email leads are coming in and the phone is ringing. No woe is me here!
I noticed a lot of people have seem to hit a wall around here. Its funny to me because I am just starting so this market is all I know.
Thanks for the coaching tips! My plan is written, implemented, crossed out, updated, and doing reasonably well. I just have to remember where I put the plan and which revision version I'm on today.
HELLO!!! This is one great post! People are still buying and selling, just go git em!
You are so right-- if a person is just sitting and waiting -- then they likely will go out of business. Our 2 cents.
Glenn.. Great post... We have to get out and find the business... it is not going to just find you
Glenn - this is a great post. I've helped a number of clients with their business plans, but I must confess: I don't have a written business plan. It's been on my list since I started my business in 2006, but I never got around to it. I can only imagine where me and my business would be if I had.
I'm making a public goal to have my preliminary business plan complete and in writing by October 15. And I'll be visiting Jennifer's post shortly. Thank you for the great reminder and the kick in the pants!
PS... I'm an Alabama gal. I was born in Decatur. I'll definitely be following your blog.
Glenn - Thanks for the link! And congrats on the gold star - well-deserved. It's funny, though, because I actually DO accept the idea that the market significantly affects my success - well, not my success so much as the end-of-the-year volume of it. My Denver market is relatively stable, but I definitely see a difference in the amount of business that is up for grabs. And I'm okay with that - in the boom years, business WAS relatively easy to come by because everyone and their dog was buying, selling, flipping and investing. These days, people are much more circumspect about spending their real estate dollar. I, personally, am NOT beating the streets any harder than I did before and while I'm not suffering, I do see a difference in the amount of potential business that crosses my path. But I'm okay with that - some years, $250k is relatively easy to come by, some years it won't be. I'm with the crowd that believes that once we're through this dip, the slow & steady tortoise who has a PLAN will survive and thrive, and enjoy the heck out of selling real estate again (and be very well compensated for it). In the interim, I'm not going to freak out about market conditions I can't control.
Again, thanks and congratulations!
We have increased our visibility to four states and we now partner with three other brokers. We actually receive MORE leads than we did two years ago. i.e. think outside the box....
Glenn: The answer is no. The true professionals are working and, yes, sometimes making a fraction of what they used t. But, nevertheless, they're working it as they should. If the commitment and passion is there, it's easy to offer your services!
Paul
This business is constant hard work! I am hoping that the hard work will pay off when the market improves!
Anne Hensel Real Estate Professional buy or sell St. Pete Anne, you folks are very smart. Marketing dollars are often the first to get cut by many folks but it is tough times when those dollars and effort are needed the most and provide the most opportunity to gain market share. Congrats!!
John Walters (Specialized Real Estate) John, yes there are many more listings than buyers.. and when the cycle changes, that will flip around. There is always too much supply or too much demand. Each is either a problem or an opportunity.
Bryant Tutas-Tutas Towne Realty, Inc Bryant... smart to adjust your plans... very smart! G
Overland Park Homes & Real Estate:: Michael Russell (Overland Park KS Realty Executives ) Michael, great to here your market is great! There are pockets of this everywhere, so best of luck for this continuing in your area! G
Cape Coral Real Estate Broker | Susan Milner | Florida-Future-Realty.com (Florida Future Realty, Inc.) Susan, hope your market is continuing to do well!! G
Glenn - You are absolutely right!
Jeff and Lisa Sellers (The Sellers Realty Lubbock,TX) Well, I hope so! All the best! Thanks! G