Home Inspection and Real Estate in a Slow Economy
Posted by Deanne Gillock in Real Estate Business
I recently asked Charlie Rouse, from Associate Master Inspectors (AMI), his thoughts on how home inspectors survive when the real estate housing market is sluggish. Sometimes I forget and think it is just the Realtor® impacted. So, if you are thinking about getting your real estate license or if you are already a real estate salesperson or broker, but need some encouraging news, here are Charlie’s ideas and suggestions for surviving a slow real estate market.
HOME INSPECTION AND REAL ESTATE IN A SLOW ECONOMY
Both the Real Estate and the Home Inspection professions, among many others, rely on an active real estate market where property ownership can change hands freely. When markets are in turmoil, sales activity will fluctuate and real estate professionals will encounter a different set of challenges. Inability to adapt to new challenges can result in business failure for individuals and companies, which is devastating for those failing but beneficial to those who survive. Therefore, it is important that we know how to survive.Basic to the operation of any business is the realization that all markets are constantly in a state of change and for us to be successful, we need to recognize these changes and fine tune our business model accordingly. Real estate can be a buyers market or a sellers market. This is vital information if you are a Realtor and working with sellers and buyers. As the individual markets cycle, so do the local, regional, national and world economies.
As independent business people, we need to develop an economic awareness so that we can learn to anticipate danger and respond proactively rather than reactively. We need to enjoy the good times, but we need to realize that not-so-good times are inevitably going to follow and we need to plan for them as well.
Taking care of oneself is basic to surviving any prolonged period of hardship. Your physical, mental and emotional health is the foundation for a positive attitude. A positive mental attitude is absolutely required for any type of business success and should be our first priority.
As of this writing, May 2009, real estate sales are slow overall in the Portland metro area. There are, however, good financial incentives for first time buyers. Additionally, first time buyers have no existing house to sell and are not burdened by that contingency. Consequently, there is good activity in the first time buyer segment of the market. There are bargain shoppers in both the commercial and residential markets. This is an excellent time to buy houses if you are a rehabber and your price point is first time buyers. The rental market is currently strong and investors are finding good values.
Tax deferred exchanges is another area where real estate is changing ownership and a transaction is not necessarily contingent on the sale of an existing property. Unfortunately, when times are tough the divorce rate goes up which often results in the sale of a home to the departing spouse that is not contingent on the sale of an existing home. As you can see, by analyzing the market we can find spots of activity to work in and create income.
Whether you are new to the profession or a seasoned veteran, the slow times of the year or down turns in the economy provide you with time to fine tune your business plan and gear up for better times. Communicate with your support team of related professionals. Fine tune your processes and your transactions will be smoother and sale fails will be fewer. You can learn from them and gain valuable insight, as they can from you. Be ready for when things turn and you will survive.
Charlie Rouse is Oregon Certified Home Inspector #002 and may be reached at charlierouse@comcast.net or 503-708-3211. He welcomes your questions.
www.amipdx.com
503-236-1812
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