The ebb and flow of the housing market is as guaranteed as death and taxes, with about just as much predictability as the former. However, a housing bubble burst doesn’t need to mean doom and gloom. Many markets face downturns, and if you learn to spot your opportunities, you can be one of the few who make it work in your favor.
Seasoned property professionals know that this up-and-down flow is normal and expected, and they also know how to prepare. For those who are less practiced, it is crucial to learn some essential skills in order to stay afloat, if not thrive.
According to Forbes, “while home prices and sales have certainly gone up in recent years, new home building activity never recovered to the highs seen pre-2008—meaning the housing supply is extremely limited right now.”
With the most recent downturn this May, it is time again to discuss ways to combat this unfortunate phenomenon.
Tip No. 1: Stay logical
Many experts say that this downturn is nowhere near as devastating as 2008. In fact, a certain level of optimism might be the ticket to all of us staying financially healthy during this time. Panic causes irrationality, and maintaining a level head is crucial during this time.
I recommend consulting with a couple of trusted advisors before making any big decisions. Groupthink, in larger cases, can cause calamity, but having one or two people you trust to be candid with about business choices can make or break you.
You may hear advice to ‘trust your gut,’ but in situations that tend to induce anxiety, our intuition can be tricky to read. If you feel absolutely sure about something, that is one thing, but if you have that fluttery feeling that raises ‘what if’s,’ get a second opinion.
Tip No. 2: Look outside the box
Research shows that not all housing markets are currently in distress. Additionally, homes you may have previously ignored because of low commission rates might turn out to be your new bread and butter.
Try looking in neighboring areas if you are not averse to moving and don’t ignore the small fries. It might even be time to expand your offerings. Do you know any contractors you can partner with to create custom home buying/renovation deals?
Remember that your limiting beliefs are the only thing stopping you. You don’t need anyone’s permission (within legal reason) to try new ways of making money in this industry!
Tip No. 3: Pivot your partners
As stated previously, it can help to have a reliable partnership with whom to discuss business decisions. Further, though, it can be even more helpful to align yourself with brokerages that will have your back during uncertain times.
Rudy Kusuma, of Your Home Sold Guaranteed in Southern California, takes a vested interest in empowering his real estate agents by teaching them not to ignore the smaller listings on the MLS. He even has a course coming up that will teach agents how to make the best of any housing market situation.
Tip No. 4: The inspiration-determination cocktail
When we’re at the top of our game, inspiration and determination are in abundance without us even thinking about them. Conversely, when we are discouraged, inspiration disappears, and determination is fleeting.
What I call the Inspiration-Determination Cocktail is the only thing you should be drinking during a housing market burst. Use online sources, social media, and your local community to align yourself with industry leaders and motivated colleagues.
Absorb as much ‘You Can Do It’ juice as you can. Hype yourself up by enlisting as many mentors as you can to help you. The beauty of social media is they don’t have to say ‘Yes’ to being your mentor, they are right there at your fingertips!
Then, turn around and pour that newfound inspiration into the boring, menial tasks that you rarely had to do during the heydays. I’m talking about cold-calling, market research, and robust marketing tactics (online and on paper.)
Shake and serve over ice; repeat to stay cool
Remember that the housing market rises and falls like the stock market, and if we prepare and educate ourselves, stay inspired, and remain calm, we can all come out on top. Don’t be afraid to try new things, absorb new information, and give yourself permission to be inventive.
Market crashes are only as devastating as you let them be. Someone always finds a way to bank on it. That person can be you.
Victoria Kennedy is CEO of Atman Real Estate. Connect with her via email.
