Has The Real Estate Market Hit Bottom?

This is part two to my previous article titled, “The State of the Union Address for the Real Estate Market.”

Before we get to the point of this post, we’ll assume that you’re reading my blog because 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 bottomed out? Watch this powerful video to find out:

The news seems to indicate that our market has hit bottom and is now slowly starting to recover. Do you believe this?

The reason why I’m asking such an important question is because I’m trying to get you to think strategically about your business. You’re 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 today? If the market hasn’t hit bottom, home sales and market values will continue to decline. As noted in the video within this post, the market may not hit bottom until sometime between 2012 and 2015. This would mean another 2 to 5 years of falling commissions.

Scary, I know.

Although this is scary, it’s critically important to think your dependence on commission income. If the market hasn’t hit bottom, you need to be proactive about finding alternate sources of income. Don’t simply sit around hoping things get better, because they may not. Take action now to start generating new income streams.

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 as this video suggests, you’ll be protecting yourself and your financial well being.

As you probably know, I’m going to be releasing a new program for real estate agents that will help them start property management. The goal of the program is to help you diversify your income away from home sales. Whether or not you decide to pay attention to property management or not, you should definitely take action now to create new income streams that are not dependent on home sales. I know property management isn’t for everyone, but protecting yourself is.

If you are interested in the recurring revenue available through property management, you might want to sign up for my early notification list for my new property management program. You’ll receive priority access. Sign up here:

http://www.NotificationList.com

6 Comments

  • Del

    Reply Reply November 4, 2010

    My Question, Who pulled the strings on the FED to continue the cheap money from 2000 on, if they are responsible to ensure bubbles of this nature don’t occur. Where there those on the inside that were going to profit from this mess? Was it the political entity in power? I’m tired of hearing there is a little blame to go all around. If what your saying is a bottom maybe in late 2012, what I just read in the Wall ST. journal, at the rate of banks cleaning the sheets, where 107 months away from a bottom, about 9 years. What gives? Who knows?

  • David Rangel

    Reply Reply November 3, 2010

    Of course it’s not easy to become a property manager, no one is suggesting that it’s easy. Was it easy to become a real estate agent? However, you must spread your eggs out in different baskets and, this might be one way.

  • Pat Yoest

    Reply Reply November 3, 2010

    It’s not that easy to become a property manager. Your broker has to be licensed and you have to be licensed and you have to be educated in property management. You can’t just say I want to be a property manager. It’s mich easier to refer to someone who is already a property manager.

  • Isaac Bensussen

    Reply Reply November 3, 2010

    One word. Brilliant.

  • Christian

    Reply Reply November 3, 2010

    very very interesting post. Thanks for sharing.

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