Has the Real Estate Market Hit Bottom?
Since you're on this website, we'll assume that your a licensed real estate agent. And if so, at least some portion of your income is derived from the sale of real estate. This would lead me to the conclusion that the real estate market is very important to you, and to some extent, you're financial well being. So let me ask you a question...
Has the real estate market hit bottom?
The news seems to indicate that our market has hit bottom and is now slowly starting to recover. Do you believe this? I don't. The unemployment rate is too high for our market to improve significantly.
The reason why I'm asking such an important question is because I'm trying to get you to think strategically about your business. Your answer to the market bottom question will dictate the actions you take within your business. If you feel the market has bottomed out, you'll happily focus on selling more homes to increase the revenue to your business.
However, what would you do if the market hasn't hit bottom yet? Would you handle things differently?
If the market hasn't hit bottom, home sales and market values will continue to decline. Some experts don't believe we'll hit bottom until 2015. This would mean another 4 to 5 years of falling commissions.
Scary, I know.
Although this is scary, it's critically important to think accurately about the real estate market and your business. To maintain the same level of income in a falling market, you'll need to do more transactions or you'll need to create alternate sources of income that are NOT dependent upon home sales. Don't simply sit around hoping things get better, because they may not. Take action now!
It might be helpful to simply think about new income streams as a hedge (or back-up plan) for your business. You really have nothing to lose and everything to gain by hedging against further losses to your commission income. If the market has hit bottom and things are starting to get better, these new income streams will be a bonus. However, if we haven't hit bottom, you'll be protecting yourself from additional losses.
One way to protect yourself is to consider generating recurring monthly revenue in your business. And, believe or not, you have an excellent opportunity to do this. You can watch a 16-minute video that will show you how at http://www.ContinuityIncomeforAgents.com. In this video, you'll learn how to create predictable monthly income each and every month.
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