In an entertaining take on "cyclical failure", Inman News columnist Kris Berg, discusses the overwhelming treadmill-effect of the real estate world. "Realtors are just as busy today, as they were five years ago," says Berg, "the difference being, we got paid for our efforts."

photo credit: mmwm

It used to be easier to bounce back from the lows in real estate 10 years ago when hard work and commitment paid off.  Today's market is less forgiving.  People are not moving as often as they used to because they can't sell their house for what it was once worth.

Berg says she feels like the nightly news anchor full of bad news:

    * "No, your home is not worth more than it was in 2006. Yes, I know you added those ceiling fans, but still ..."

    * "No, your home isn't worth what you paid in 2005. Well, sure, you could just wait until Thursday to list. Yes, more people generally start looking in the spring, but still..."

Buyers have their own set of problems, qualifying for loans with tougher requirements:

    * "Yes, I know you make a lot of money, but you started your new job yesterday and ..."

And finding new ways to tell a seller that listing times will be longer, the buyers will be fewer and prices are flat, can take its toll on the real estate agent. It's hard to be out there delivering the same bad news every day.

"Fatigue happens." says Berg. How to overcome it and avoid all-out failure is the question."  

"One minute, we are on top of the world, flush with listings or buyer clients, reveling in the ecstasy that is positive cash flow. The next, we are wondering how we will eat in 45 days. If you have been licensed for more than two closing cycles, you know this feeling too well. If you have lived through a couple hundred or more transactions, you know it can wear you thin." says Berg.

Managing your cash flow is an important aspect of avoiding failure.  Bernice Ross, CEO of RealEstateCoach.com, offers 5 Ways to Avoid the Real Estate Cash Flow Crunch and the best ways to handle it when you find yourself struggling.

Take a breather. "You can't win if your head's not in the game." says Berg. "Catch up on your industry reading, tinker with your website, retool your listing presentation, or rewrite your business plan. Preview homes, research and study market trends, write a blog post or comment on a post. Engage in a little group therapy at the office."

Stay focused and rethink how to do business in this tough market. The two best tools for success, you already have in your business arsenal...your mind and a simple spreadsheet.

Think about what's best for you and your business. Be honest about a listing's potential, even if it means losing that listing. Have an unrealistic buyer? Declining to represent him leaves you more time to really focus on the more serious clients.

Analyze your business reach and chart it on a spreadsheet.  Focus on the data that pertains to your business.  Who are you reaching and who are you helping?

"This market is going to be with us for a while, and what that means is that the opportunities will be fewer and more difficult. But it doesn't mean that we can't each survive and thrive -- both professionally and personally." stated Berg.

Read the full article at Inman News.

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Posted in Headlines, Traditional Marketing, Blogging, Real Estate Market Conditions, Real Estate Industry

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