Why You Should Not Quit the Real Estate Business
The real estate market has been experiencing some strong fluctuations in the past couple of years. This included strong buyer demand as people sought to escape tyrannical rents, to an equally strong reversal when mortgage rates increased.
Turbulence in the market can be stressful. According to The National Association of Realtors, the agent failure rate is at 87%. Just 13% of realtors are still in the business 5 years later. If you’re struggling in your current business, here’s some solid reasons why you shouldn’t quit just yet.
A Cooling Market May Be A Positive Sign
The market has been red hot lately, but there are signs that market is now cooling. This doesn’t mean fewer opportunities to sell homes, but rather that the demographic of who can own a home is changing. Instead of helping rich families buy another vacation home, you can help middle class families get their first starter home.
There is still plenty of demand for housing, but you will need to connect with the right people in order to get those buyers. Loan officers may suffer the same problems, with the need to connect with the right people a struggle.
Focus on Value
One reason why many realtors quit is because the struggle to generate their own business was unexpected. Unlike when you are employed by a company, you are responsible for bringing in your own business.
With the mindset of younger people being one of self service, there’s less reason to ask a realtor for help finding a home. They would much rather look on the internet and find their own home.
When it’s easy to look for available buildings, there’s less reason to hire a person to find them. You’ll need to give them a reason why they need your help.
When you offer value to the customers, they’ll be more inclined to work with you, and more willing to recommend you to others.
Make Mortgages Easy
One method to add value to your business is to connect with a loan officer and recommend them for helping navigate a home loan. Most first time home owners need a mortgage in order to pay for it. It can take months or even years to jump through all the hoops required of a mortgage. By the time someone has finished building their credit or fixing other details, they may have given up on owning a house entirely.
Having a loan officer you can recommend as a realtor makes the process smoother, and helps add value to you. When you are able to help them get pre-approved for a mortgage, shopping for a house in their budget is easier.
This is a stressful time to be in Real Estate, but it’s not necessarily the time to quit. If you focus on your business and add value to your business, chances are you can still thrive in these new market conditions. This is certainly a different time in the market, but it doesn’t need to be a bad one for you or your team.
References:
https://www.easyagentpro.com/blog/thinking-quitting-real-estate-hold-thought/
www.easyagentpro.com/blog/thinking-quitting-real-estate-hold-thought/