“The new normal,” after unprecedented events in history, is an overstated and overrated phrase. That especially rings true in the real estate industry.
Real estate professionals have been innovating, adapting and evolving for generations.
Here we go again!
Let’s leave the elephant in the room—the global pandemic—out of the picture and have a look at what is shaping up in the world of real estate in 2021:
– Our country experienced a recession. Period, end of story.
– We are in a seller’s market on steroids.
– Residential real estate is holding strong once again in uncertain times, but agents are having angst from a dire inventory shortage and sky-rocketing home prices.
– Who would have ever thought that listings on the market without offers for three weeks would be sending real estate agents into a panic, or that hard, earnest money is becoming the norm?
– Seasonality, once the bedrock of our business planning, budgeting and strategy has been derailed by home schooling, virtual classrooms, postponed vacations and uncertainty of attending industry events.
– Fear abounds that interest rates will climb and inflation will inevitably rear its ugly head.
– Headlines continue to swirl with the likes of iBuyers, W2 agents, Zillow, CoStar, ShowingTime and CoreLogic leading the charge.
– Mergers, acquisitions, private equity courtships and SPACs (Special Purpose Acquisition Companies) are all the rage.
Newsflash: This time-tested and resilient industry has been there and done that!
It’s time to blend a little bit of “old-school” tactics with the exciting innovations that have refreshingly fast-forwarded the entire settlement-service industry over the past year.
Thriving agents, brokers and teams have become “market makers.” They continue to generate marketshare with an intense focus on mining past relationships, and re-engineering traditional and online lead-generation techniques. Differentiating your services is now driven by a proactive vs. reactive mindset. We now reach out to close deals in a virtual world or implement safety protocols for in-person meetings.
The “lifeblood” of a productive agent hinges on a database of closed, pending or active clients. Past customers and their spheres of influence continue moving up, moving out or moving in.
The Bottom Line
The 2020 economic crisis was the first in American history where consumers had more income on average during a recession due to stimulus checks, small business grants, generous unemployment benefits, etc. There is still money in the street. The current National Association of REALTORS® seasonally adjusted-annual rate sales projections indicate there will be 6.4 million existing homes sold this year. That’s over 800,000 more than last year, folks. This year will not go down in history as “the new normal”—2021 will be defined as the year the real estate industry helped lead this nation back from the brink with good, old-fashioned service, ingenuity and hard work.
Mike Ryan is a partner with the Rainmakers Group, an advisory firm serving the real estate and settlement service industries with global insight, talent and technology. For more information, please visit rainmakersgroup.com or call 303-570-5140.
