Let’s face it. There are a lot of factors at play in real estate that you can’t control as an agent. You have no influence on changing interest rates, adjustments to financing rules, hysteria about global events., a lack of available inventory and other variables. How do you prepare your realtor business for things outside of your control? We’re discussing the topic of insuring your real estate income against outside variables in today’s ULC Blog on Building Agents’ Business.
As DC housing prices continue to go up and as interest rates rise (they will!), it is going to become harder and harder to compete for listing and buyer business. “As an agent, you future-proof your business now by starting to focus on business channels that increase during times of economic problems,” said Gerard DiRuggiero, Principal Broker of UrbanLand Company. “What it means in simpler terms is – don’t look down on rental business today; the rental sector can save you as an agent during a downturn. ”
It may seem silly to divert your attention away from chasing lucrative home buyer and seller transactions now while times are good. The returns and commissions are phenomenal if you’re strong on follow-up and capturing referrals. If you’ve ever been frustrated by multiple settlements delaying or problems with financing holding back your deals, add rentals to your volume mix as an easy(ier) source of real estate transactions.
“It doesn’t matter if it is handling rental listings or working with actual tenants looking for their next rental,” commented DiRuggiero. “These are quick, easy transactions without the barriers of mortgage, lenders, formal home inspectors or appraisals. The side benefit is your rental transactions now are also your future for-sale transactions if you’re a follow-up all-star.”
The other thing you can do in terms of preparing for the future is to develop your business in overall lower-priced markets. “We’re wrapping up our first Baltimore office in Hampden, opening up very soon,” said Gerard. “There are easier transactions with lower average closing prices up north while still in the same MRIS for agents. This market will explode with transactions and will have lots of activity even during downturns due to the lower costs of entry. We’re there now recession-proofing the brokerage!”
If you’re an agent and worried about the future, give us a ring at 202.759.4114! We’re actively recruiting and happy to share what else we do to Build Your Business in a sustainable fashion at UrbanLand Company!
Our in-house Agent Leads Generation Program naturally maximizes your in-the-field exposure as an agent. It doesn’t matter if you’ve been licensed 5 minutes or for 5 years. Our firm’s Program for lead generation and realtor development is highly effective. The main requirement for entry into the Leads program here is 2 things – your time commitment and a desire to max out your in-the-field exposure as an agent with the public.
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Here’s some recent closings from our Agent Leads Generation Program!