For my Fellow Agents: What challenges are your facing??

Question

I am not seeing much draw back form my current sphere and previous clients with regards to desire to buy a home or investment property. If anything my investor circle are looking more now than even a month ago. I am curious to see what other challenges Realtors are facing these days?

In my business, things have slowed down a bit. Understandably due to the season and rate increases, but I am currently struggling with this restless feeling of not knowing. I want to steer my clients in the right direction and give the best advice, based off the data, that I possibly can. This is my FIRST down turn market cycle though and I know staying the course and doubling down on the basics will get me through this, I've been seeing it work in my business!! :-)... I just don't want to give potentially bad advice and feel the sting afterwards. Even after looking at all the data and listening to the top people in the industry. I still feel a little uneasy since this is my first time in real estate and in a possible down turn. I am curious for anyone that was working in 08'-12' as a realtor and investor what helped you get rid of the uneasy feeling and sleep better at night knowing you are giving sound advice to your sphere and clients??

TIA! :-D

Matt M. · Answer

We did 400+ foreclosures in 2008, and we are not there yet and may not get there. There were also 50k+ listings on the market, which is 10x what is there now here in Denver.

You can't time the market. If they are going to hold for 5+ years, then price is irrelevant. Sure everyone wants to buy at the bottom, but they'll miss it more than likely.

Seasonality is clouding what's actually happening, but the next few months will really show how deep this is going. The fed will keep tightening for the next few months with its effects lagging behind. 2023 will be slow, but deals will get done. Unemployment is still low, so things just might not get as bad as the click bait people are saying.

Bruce Lynn · Answer

#1 Read the book SHIFT, excellent business book, but also specifically geared towards real estate agents.

#2 Many buyers and investors just can't get over following the crowd.

Peter Lynch, who formerly managed the high-flying Fidelity Magellan Fund from 1977 to 1990, is a legendary investor. Under his management, the fund averaged an astounding annual return of 29%. It would seem all you had to do was ride along with Lynch and you would earn phenomenal returns. But that didn't happen. According to Fidelity Investments, the average Magellan Fund investor lost money during Lynch’s tenure there.

You have to show them things like this.....and explain to them....want to buy when everyone else is buying? or buy when no one else is buying and show them why vs buying when everyone else is jumping in.

Shiela R. · Answer

@Brandon Elliott, hello fellow Boulder County agent :)

Downturns are awesome for buying investments because things are discounted. IMHO, we are nowhere near the bottom. While historically, Boulder City does great and Boulder County does okay, in a downturn Erie and Longmont are hit the hardest.

The fact that you are asking means you care. <3 I go with honesty. We are transitioning from a white hot sellers market to a more even "normal" market where active and sold listings are pretty even in numbers.

I started investing in 2000 and got licensed in 2005. I've seen some literal s$@#. Most investors I know, including myself - are piling cash to swoop in and buy real deals (25%+ off of FMV). Retail clients need to be educated that gone are the days of 35 showings in 2 hrs with multiple, above price cash offers. Sellers need to be more reasonable and buyers can be a little more aggressive.

Matthew Irish-Jones · Answer

My advice to clients when it comes to predicting the market is, I can't predict the market. I help them break each potential deal based on all the nuts and bolts of the deal. Best and worst case scenario rent rolls, operating budgets, variable costs, etc.. We then compare it to the micro market they are looking in. If the micro market is offering a 6% cash on cash and we found one for 8%, its probably a sound deal in any market. If we sell it to them and the market goes down the next day, we have lost equity, but the asset should still perform based on our numbers unless rents also take a hit.

If rents go down significantly, home values drop significantly and operating expenses go up significantly there are some MAJOR global issues and we are all screwed anyway. Most likely stocks will have also taken a huge hit so no one is really safe. In that scenario I would still rather own Real Estate than stocks because at least you have a solid asset that should bounce back eventually.

Solid investments that are properly analyzed are solid investments in any market. Trying to do much beyond analyzing an investment with the data that is available is speculating. When it comes to speculating we are all making an educated guess. Best not to guess when other people's money is involved.

Katie Miller · Answer

Shift is a great book! Another really good read for agents looking to produce more is 6 Steps to 7 Figures by Pat Hiban

Eliott Elias · Answer

Time to get entrepreneurial. Start buying deals yourself or finding clients deals, retail is taking a big hit. And if you're a realtor living off commissions it's going to be very tough

Jenny L. · Answer

Complacency is my biggest enemy.

For my Fellow Agents: What challenges are your facing??

For my Fellow Agents: What challenges are your facing??

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