RISMEDIA, Dec. 3, 2008-EXIT Realty Corp. International CEO & Founder, Steve Morris, announced recently that he expects the real estate market to begin to turn around in the second quarter of 2009. With this in mind, EXIT asked some of its key regional leaders, “With the bottom of the real estate market being formally announced by the end of the 2nd quarter of 2009, what 3 strategies would you give both a broker and a sales representative to prepare accordingly?”
“The first thing everyone needs to realize is that yes, there is light at the end of the tunnel. Numerous activities are currently being put in place to open the credit markets and stabilize the housing industry,” stated Bruce Caruth, regional owner of EXIT Realty of Washington, Oregon, Kansas and Missouri in a presentation at EXIT Realty’s 10th Annual Convention held at the Gaylord Opryland Resort & Convention Center in Nashville, TN.
Caruth’s three strategies are:
1. Understand how and why the end is in sight. “Banks are beginning to realize that it is better for them financially to do a workout on a mortgage if possible than to foreclose,” he commented. “Existing home sales have stabilized nationally keeping inventories relatively flat or even recently reducing them. Interest rates remain at historically low levels and homes are now affordable again for the entry-level buyer.”
2. Reduce overhead. “In order to ensure that you can take advantage of this opportunity, the brokerage, as well as the real estate professional, needs to make sure they are among the survivors. To accomplish this they need to reduce overhead to levels at or below that of their current revenue stream.”
3. Improve the skill level and production of the primary asset of the brokerage – the real estate professional. “To increase the skill level of the agent the key is training, training, training,” said Caruth. “Most serious full time agents desire great training and company-provided leads. If an office provides [quality leads] the chances of recruiting a serious full time agent increases significantly. ”
“As many real estate brokerages have gone out of business and numerous agents have left the real estate industry, the opportunity for increasing market share has never been better,” Caruth concluded. “There will be far less competition by next summer and greater opportunity for those that are left standing.”
For more information, contact Bruce Caruth, EXIT Realty of Washington, Oregon, Kansas and Missouri by calling 520.975.8297 or visit www.exitrealty.com.