Why Experience Matters
Our market is changing today as quickly as it changed in the fall of 2020. People went from being paralyzed by Covid, to being rabidly focused on where they might move for a variety of personal and professional reasons. We didn’t question it, we just breathed a collective sigh of relief and got to work facilitating domestic corporate and self-moves. That respite was a gift. We worked with agents and our sources of business to safely help people buy and sell homes during a worldwide pandemic. It was challenging and rewarding at the same time.
The memories are vivid
We are facing a new reality that feels different than anything we have seen in a while or maybe ever. I remember when I moved to California in 1988 and interest rates were high (they hovered around 10%+) and foreign buyers were piling into California to buy properties. I also have crystal clear memories of the mid-1990s when we carried over 300 REO properties in inventory every month. I can remember quite vividly in 2006 when the market shifted. We buckled down and changed our direction and amped up marketing on our paid settling-in, rental assistance, and candidate tour programs, and expanded our local affinity and property donation programs to go national.
While I learned something from each of those economic events, they were all a bit different and motivated by a different set of circumstances. We could only use what we learned from our past experiences and just wing the rest of it. But all of those experiences built our tribal knowledge. All of us that have been through challenging markets learned things that others cannot instinctively anticipate.
For those of you that have been in the industry a long time like me, you have the bonus of historical intelligence. You have seen downturns before and you know how to avoid the pitfalls of the past. For those who have not and for some unknown reason appear to be shocked at what is happening, they had better figure out ways to cut spending and amp up revenue quickly.
What I do know, is that my department made a profit every single year no matter what the economy was doing. And almost every year we actually increased profits year over year. How did we do it? We pivoted. In the 90s I took some of my staff and turned them into REO Managers. We brought on interns to help us manage all of the property management demands. I secured the Freddie Mac account and managed properties for them throughout the western states, even where we didn’t have branches. I was lucky to have a bright and flexible staff.
Go to the dark place
So as we face the uncertainty that is swirling around us, we have to think about how we are going to get through it. Actually not just how to get through it, but how to shine during this time. I am known to always think about the worst thing that could happen in any situation. Some people might say that is negativity, but I like to think of it as anticipatory problem-solving. I reverse engineer every scenario. By doing that, I can prepare for the worst, which usually never happens. Everything is so much easier when you have thought through the worst.
It is time to dust off those skills and lessons from our past and figure out how to reapply them in this new environment. Every one of you is a local expert. You know your market better than anyone and certainly better than someone sitting on the other side of the country. So look at what is happening in your local market area--where are the opportunities?
Think about what you and your department bring to the table for your broker
Ask yourself these questions:
What is my value proposition right now?
Do I have a flexible staff or are they stuck in a rut and have no interest or capability to change directions?
Have I handled corporate inventory and REOs before and am I prepared to handle them again?
There are certain to be mergers and acquisitions ahead, how might I get involved?
How might I help in recruiting efforts?
Am I willing and able to take on different roles and lines of business in the company based on the need?
Am I open to creating new programs and services?
Am I and my leadership willing to get help from an outside resource to strategize my department’s path forward?
You can either step up and shine right now or wait in the shadows hoping for the market to recover. There are many in our industry who possess a lot of tribal knowledge that can be very helpful during challenging times. It’s ok to seek help from the outside, sometimes a unique perspective is just what the doctor ordered. If you don’t work collaboratively with your broker owner and leadership to strategize your own future, then they may decide it for you.
“History, despite its wrenching pain, cannot be unlived, however, if faced with courage, need not be lived again.” – Maya Angelou, American memoirist, popular poet and author, and civil rights activist.
