ad bad luck. They bought at the peak of the market and now, due to job transfers or lay offs or whatever, they must sell. Yet they have zero equity or are upside down on their mortgage. They did nothing wrong necessarily - they just simply had poor timing. There are other stories too of outright abuses of lending and money management but let's not forget those people who truly were victims of the "system" that the government is now "bailing out."It is unfortunate that many people freely lump these folks into one category as "irresponsible" without understanding all the dynamics that came into play in the last few years.
We as Americans have grown up in a culture where credit uses and abuses are commonplace. Need something big? Finance it. Taking a trip? Charge it. But this situation that we find ourselves in today affects even the most conservative of Americans who didn't do those things - who paid cash for trips and goods but simply financed their homes and now find themselves in financial peril. Many of these people did so with little or nothing down but we in the real estate and mortgage industry ushered them through the process with a smile and pat on the back for the great investment they were making. We ourselves believed that to be true!
It is also apparent that many of us in the real estate and lending industry have ourselves fallen upon hard financial times. Our losses don't show up in the unemployment rates or in the job loss statistics - our income just simply dries up. I have seen many a seasoned professional either leave the business after many years or, at the very least, thought about it seriously.
But there is no real estate agent or mortgage lender bailout coming this way - even though licensed real estate agents accounted for 1.2 million Americans in 2006. Yes that's just too many real estate people and many of those SHOULD leave the business. But it leaves those who are in this career field with some hard choices - quit or find a way to fight through the challenges and make it work. There is no free lunch on the horizon.
I don't have the answers to our current economic crisis but each of us in the real estate biz is in one way or another facing our own personal crisis. Our business has been permanently altered. As a result, we must change too and formulate a plan to conduct ourselves as professionals in light of these changes and yet continue to make a living.
So I have decided to come up with my own "bailout plan." If you have read previous blogs then you are probably aware of my search for motivation and meaning in my work and daily life. I still continue to work on those things but in these serious times I believe that we must also focus on our "survival plan." Brian Buffini stated at his Turning Point Retreat that Success in 2009 is simply Staying in Business.
I have elected to stay in business. I want to help my fellow agents also stay in business - those who want to and who seek the best way to continue to effectively serve our clients while also having food with their meals! I see a few simple truths at this point:
1. Things are never and will never be like they used to be. The long-term experienced agents whom I see leaving the business are those that in many cases have been waiting for things to go "back to normal." I do not believe that our "normal" will ever be what it used to be. This is a new economic climate with an uncertain future and we cannot afford to sit and wait to see how it will all pan out. We need to dive in and understand the needs of this new age of client and what resources we can offer them in this financially challenging time.
2. The Internet has permanently impacted the real estate business in such a way that the traditional value of an agent finding a home or advertising a home is no longer the value we represent. The customer can put their own home on the MLS in very easy and inexpensive ways and has access to finding properties freely through the Internet. We need to truly understand our own value and unique selling points in this new age of real estate and lending. Bottom line: we need to add value and communicate it to the client. We no longer have a monopoly on information.
3. The idea that investing in property is a safe and sure bet for a return on your investment is no longer valid. People who are buying now do so because they NEED a house or they are investing for rental income in the long term. We need to better understand how we serve the needs of these buyers and how to serve those sellers who are upside down in their equity proposition. Essentially, we need to become experts not simply door openers and photographers for posting listings on the MLS. This is the age of the professional and wow it's a lot of hard work!
4. Agents need to pull together to share resources, better educate one another, understand the techniques to employ and the resources to rely on to serve today's client best. Let's eliminate posturing and poor business practices that have plagued us in the past. We need to pull together as a community of professionals and re-learn our craft in the best way we can. Sharing of resources, understanding the impacts of the Internet and adjusting our business to this marketplace are just a few of the items we need to consider doing now.
So I ask all of you now to begin crafting your bailout plan too - your success map for staying in business in 2009. Please share your ideas with me and I will share them with others in a future blog or e-mail. Get involved in your REALTOR Associations who lobby for us on Capital Hill, educate yourselves and stay in close contact with positive-minded associates who are really working on being successful and serving their clients well rather than rubbing elbows with those who find it easier to complain and justify their demise.
I have a dream! A dream that the real estate industry will come out of this crisis stronger and with a much more professional impact on our clients than the previous used car salesman opinion that many have had of our industry. I believe that we can accomplish that but only by actually stepping up to the plate as an industry and making the necessary changes. We need to increase our standards for licensure, have better education requirements and take personal responsibility for how we become true experts in our industry to name a few.
My bailout plan is in the works and I would love your input. Please share your thoughts too. May success and happiness be yours in 2009!





