A survey of about 5000 U.S. real estate agents has been conducted recently by Real Estate Bees. In this survey, they wanted to find out if realtors believe in a looming economic recession and how those who do are preparing for it.
Real Estate Bees published the results of their survey as an extensive article. It features statistical data and answers to various related questions given by expert realtors. My answer to the question “What Measures Can Agents Take to Survive the Upcoming Recession and Perhaps Even Benefit from It?” is included as well:
In real estate, there will always be buyers and sellers. There will always be investors looking for opportunities. As realtors, we are business owners. The realtors who know this and act accordingly will thrive in every market.
I have experienced a lot of economic changes in my 31 years of real estate. In every market shift, the same people always rise to the top. They quickly change to the market, waiting on no one to give them permission, and get back on top.
The survey makes an emphasis on short sales as one of possible consequences of an economic recession. Since the Great Recession of 2008 brought a large influx of them, Real Estate Bees wanted to find out if realtors expect that the same scenario could repeat itself next time.
Here are the answers to the question “Do you think in the potential recession we will see a similar influx of short sales to the one caused by the recession of 2008?”
- I think the number of short sales will be lower: 56.6%
- I think the number of short sales will be higher: 13.2 %
- I think the number of short sales will be the same: 13.2 %
- I don’t believe the recession is coming: 15.1 %
- I’ve never thought about it until this survey 1.9%
Most realtors also said that they were prepared enough for a situation if the history repeats itself, as they close short sales from time to time and have the necessary skill to do it in a crisis situation.
However, there are also 28.1% who said they would consider incorporating a short sale closing process answering the question “Knowing that the 2008 Great Recession resulted in millions of underwater properties forcing thousands of realtors out of business, what would you do to prepare yourself this time around?”
Talking about short sales in general, 59.7% of real estate agents surveyed said they “gladly take on a short sale opportunity” whenever they come across one. And only 11.5% have never come across a short sale deal.
Returning to the measures agents can take to protect their business in an economic recession, the professionals suggested the following ways:
- Studying short sales and incorporating a streamlined short sale closing process in the business.
- Focusing on distressed homeowners and offering to help them.
- Partnering up with other real estate professionals such as short sale attorneys and short sale processing companies to exchange prospects and particularly bringing them short sale clients and having them process short sales for you.
- Constantly staying in touch with your local community, particularly past and potential clients – contacting them and educating them about the local market through social media and your own website.
- Saving money and reviewing your business economy.
- Being versatile and constantly looking for ways to adjust to current market conditions.
- Mastering digital marketing and other modern technologies.
- Doing your best providing the highest quality service to your clients.
- Never stopping to educate and develop yourself as a professional.
- Investing in real estate.