Down Market Opportunities

Down Market Opportunities

How can a real estate professional survive in a down market? A broker should always make money as long as there is activity. Unfortunately as prices drop activity usually declines as well. What about developers. Can they keep building when people stop buying? What happens to unsold product? How do they keep their people together if they don’t keep building?
We can look at the long term situation and study the actual market dynamics. The fact is in most of the world, demand for housing still exceeds supply. The problem being that the people who need the housing cannot buy it. For brokers and developers the most important question is, “What can they buy?” The second important question is “How can they buy?” The brokers and developers who answer these questions will not only survive in a down market they will thrive.
There are many who will say, “There are no answers to these questions in my market.” These are my favorite competition. They will go to work in a convenience store and leave the real estate business to me and my friends. There are always answers to these questions. Look at drug addicts. They always manage to get what they need. Are they smarter than we are? On a trip to Sao Paulo, Brazil after the devaluation of the Real, I expected to see financial disaster. Instead, I saw building cranes. Next blog will tell what they did to survive and thrive.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com