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The Bridge

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The Bridge

Do you want to amp up your company generated business game? The Bridge is where the real estate, relocation and mobility industry can discover how taking a new path doesn’t have to be scary. Teresa R. Howe is an expert in her field with years of successful program and services development and management. She has a passion for helping companies be the best they can be. Do you want more revenue, more customers and better experience management? Get tips on how to compete more effectively in a world of constant change and disruption. You might also come across some random thoughts that just pop into her head.

When Real Estate Sales Suffer, We All Suffer

I was reading an article by 1000watt the other day and they featured the above post from Jeff Weniger, an Investment Strategist. It really hit home with me. Real estate sales represent a huge chunk of the GDP, and we in real estate are all feeling the outcome of high interest rates and low inventory. But we need to think about all the small and not-so-small businesses also affected by the current market conditions. The tentacles of the impact of real estate sales (or lack thereof) are very long.

Jeff Weniger’s list is compelling, but there are so many more entities affected. He left out the entire mobility niche that is not included above: relocation directors and their departments, relocation management companies, destination services providers, temporary housing entities, immigration and tax attorneys, insurance providers, consultants, stagers, utility hook-up companies, furniture rental, language training solutions, technology/software providers, broker referral networks, spousal assistance providers, specialized movers (cars, boats, and pets), home warranty programs and the actual corporation itself.

The corporations are also impacted.

If people don’t want to move for a job because they have a 2% interest rate on their home loan or they fear they can’t find a home that suits them in their price range, then they may pass on a job that only five years ago they would have jumped at. That leaves employers scrambling to find local talent or upping the ante to get a prospect to take the job.

If they can’t find the right talent locally or get prospects to move, that leaves companies with a handful of choices. They have to throw money at it, either through mortgage buy-down programs, cost of living adjustments, or bonuses to cover the increased costs. Or they have to make their peace with remote workers if it makes sense for the position.

So what can we do as real estate professionals to help? Here are some things that might help us weather this market and economic correction.

  • Educate corporate mobility and relocation management professionals about what is happening in your local market regarding available housing and strategies to help transferees when buying or selling.

  • Get your relocation agent team up to speed on the thousands of home assistance programs available today. When you type in ‘Housing Assistance Programs’ into Google, 3,890,000 results pop up. Most agents are not knowledgeable about the various programs available.

  • Build some local affinity real estate rewards programs for employees of corporations, members of organizations, or military personnel to assist with the financial burden.

  • Align with a variety of affiliated service providers such as mortgage, title, escrow, home warranty, etc. to determine how they can partner with you financially to assist buyers and sellers in a legal and meaningful way.

  • Target first-time homeowners. If they haven’t bought a home before, they aren’t accustomed to specific interest rates. Hold forums in partnership with mortgage brokers to begin the educational process so that when they are ready to buy, you will be there.

  • Focus on seniors and their families. Seniors have been around long enough to remember 18% interest rates. When they are ready to downsize or to go into assisted living, interest rates are not likely to hold them back for long from making that move.

  • Become the local experts for all things happening in the market. People are desperate for direction and reliable information. The media can be all doom and gloom. Paint the most positive picture possible with facts and be solution-oriented.

We must do whatever we can to remind people of the importance of homeownership and how you and your company are a resource to help them achieve that dream. It’s not just about what happens to real estate brokers and their salespeople, it’s about all of the small businesses that support the real estate and relocation process to keep the economy moving along.

“Real estate is the locomotive that pulls the train of our economy. When it slows down, so does everything else.” — Anonymous

Teresa Howe