6 ‘survival’ secrets for BROKERS to overcome difficult times

The global economy in general and the Vietnamese economy in particular are suffering many negative fluctuations, of which the most significant impact is probably on the real estate sector. Now is an important time for real estate brokers and businesses to find new directions to overcome this difficult period. Below are the top 6 secrets for brokers to “survive” after economic crises.

Truth: We’ve been through recessions before

America in particular and the world in general are facing the risk of entering a period of economic recession. But in reality it cannot be said that the real estate market is going down. In the period before the crisis, real estate prices were on the rise with a low inventory ratio.

Currently, the number of houses for sale on the market is less than in the previous period. Many homeowners are still waiting until the market stabilizes and recovers to sell at a better price. This causes supply to decrease while housing demand remains high.

It is an admitted truth that if bank interest rates increase, real estate lending room is limited, inflation continues to increase, businesses continue to close… it can lead to a global economic recession. bridge. At that time, most of the demand for real estate will actually decrease because many people will lose their jobs.

We are facing serious economic instability, the stock market is “on fire”. Meanwhile, the Government must use different economic stimulus packages to slow down the economic decline.

A similar situation has happened before and we overcame it! In 1989, the world witnessed an economic recession. By 2008, the Great Recession had taken hold globally. In addition, we have also experienced small recessions such as the dot-com and the recession after 9/11.

The current recession has many similarities with previous recessions. Therefore, we just need to make efforts to overcome this short period of crisis to achieve long-term victory!

6 secrets for Realtors to overcome difficulties due to economic recession

“Brokers overcome recessions like race car drivers overcome curves”

In general, the process of real estate brokers and businesses overcoming economic recession is similar to a racing athlete overcoming a curve. When racing, each racer runs around a pre-designed track. It’s as easy for a racing driver to run on a straight line as it is for a broker to operate when the market is stable. However, running in a straight line cannot show off the racer’s skills. Only at the turns is the moment that determines the ranking of each racer in the competition.

The closer they get to the bend, the more excited the racers become. They will accelerate and find ways to overtake other racers despite the influence of inertia and the danger of falling off the track! To do this, they must strategize in advance as well as equip skills through arduous training. The turns are an opportunity for racers to demonstrate their skills.

The real estate industry in particular and the economic market in general often encounter problems. We have had a decade with many positive growth points from 2009 to present. Now, in 2022, we are going through a major turning point and facing the risk of a global economic recession.

This is the “bump” in the racetrack for real estate brokers and businesses. After this recession, only strong brokers and well-driven real estate businesses can continue to survive. And below are 6 factors – 6 top secrets to help you overcome the “bump” and continue moving towards victory.

1. Adapt to market changes

As a broker, you need to capture market information and make changes to fit its “rotation”. Try to be creative and innovative to adapt to the current situation. Your normal business operations must change if you don’t want to be “swallowed” by difficulties. Creativity is the key to change.

Many people hate change, they find it too difficult and uncomfortable because they are too familiar with the current way. But you need to know that this change will help you feel comfortable again one day. For example, a racer cannot continue to control the car in a straight line if he wants to overcome the turn and win high rankings in the competition.

Watch the market situation, you will realize where you need to change. The immediate goal of real estate businesses is to “survive” the recession! You have to find different ways to operate your business and maintain it in a volatile market.

Many real estate businesses have focused on finding new, more suitable and more cost-effective ways of operating. For example, they have posted online listings, organized online events, and consulted online instead of spending a lot of money on offline activities. They also build new systems and processes to help complete transactions smoothly. In addition, we also see the emergence of real estate subdivision models to find more customers…

Meanwhile, some people are “waving the white flag”. They refuse to change, they just stick to the way they operate during the stable market period. Doing this causes them to be left far behind, even having to accept leaving the race!

2. Speed ​​up and work with greater efficiency

You need to work harder than ever. You even have to temporarily put aside the concept of work-life balance! Agree that maintaining this balance is important, but not at this time, we need trade-offs!

Right now, finding new customers is extremely difficult, it seems like everything is making you lose your motivation to work. But, that is not an excuse for you to stop striving. You need to double your productivity to survive this real estate downturn.

You need to spend more time finding and converting potential customers. Your business must close or restructure to fit the market and overcome this recession. Now is the time for heroes to stand up and create miracles. Now is the time to work more than ever!

3. Improve workflow to be more flexible

Just as a lightweight racing car reduces the impact of friction, a flexible workflow easily adapts to market changes. This is the time to sit down and calculate your business’s operating costs for the next few months.

In the worst case, the crisis could last a long time. You need to estimate how much it will cost to keep the business running as smoothly as in the previous period. That’s the amount of cash you’ll need if nothing else happens. In case you do not have enough cash in reserve, you and your business should think about maximizing savings and even cutting costs.

If the required expenses are still not enough, you should consult and look for external capital support options, such as credit funds. You can also seek short-term loans from qualified relatives.

Estimate now to clearly understand the financial situation of your business, as well as know whether your business needs help from outside capital sources or not. If the recession actually lasts longer than expected, getting a loan will be much more difficult than it is at this point. Therefore, if you really need it, you should borrow from now on, don’t wait until the last step!

4. Change your work schedule to be more suitable

If you are ahead, you should drive more cautiously, maintaining your position on curves so that others cannot overtake you. If you fall behind, you have to change your strategy. You need to quickly adjust your strategy when entering a turn to get ahead.

The same goes for real estate brokers and businesses. During this recession, you need to change your work habits and schedule to suit the market as well as cope with new situations.

“Surviving” after a real estate downturn means “surviving” after changing daily habits!

This may make you uncomfortable at first but it will soon be fine! A new work schedule will become more and more comfortable when we strictly follow it every day. Otherwise, everything will become chaotic!

Don’t allow yourself to lose control just because of “pessimistic” market news. Changing schedules and work habits is an urgent need to improve one’s “resistance” to market fluctuations.

5. Strengthen connections with organizations

You need to ensure that your team will operate smoothly like teammates in the race. Someone will calculate how many liters of gasoline to pour. Someone will change the tire when you enter the pit-stop (*). Someone will signal when you need to enter the pit-stop. You and your team will work together smoothly to overcome this recession together.

Work with your customers

Chat and ask questions to help you connect with customers more often and easily. At least once a week, you should inform the homeowner about the status of their home for sale. With buyers, you need to exchange even more information than that. Know that your customers are also looking for ways to overcome this recession because their real estate and finances are also affected.

Work with your lenders and partners

You should discuss with the lender and partner weekly with a specific schedule. Don’t wait until a problem arises to think about contacting them. You must proactively promote relationships to connect and work together for the long term.

Work with your team

If you are the leader of a department or a team, you need to organize regular meetings. These can be short meetings of 15 – 30 minutes but they are necessary. Meetings are not only to exchange work and learn from each other, but also to motivate and encourage each member’s spirit to overcome the recession together.

6. Set boundaries to improve productivity

A good racer certainly knows their race car inside and out. They will know the technical specifications and controls by heart. To be able to quickly close the gap between themselves and other racers, they need to understand the size of the car and its available speed. They also understand the technical limits of their car.

And so are you! Setting your boundaries is really important at this time, it’s the key to working at maximum productivity.

Do you find that your ability to concentrate is challenged when others keep hovering over you and chattering aimlessly? This is the time to have a conversation and set boundaries, the time you need to focus on work rather than “gossip” sessions.

You need to analyze and explain so they understand that they need private space to focus on working at maximum capacity and get through this difficult period. Clearly state your schedule and work habits, relatives or teammates will be willing to understand and support you.

You also need to have a dialogue with your team members so they can apply the same. We need to set goals and levels of urgency at each end. Promote the spirit of focusing on work to be able to “survive” through difficult times.

We tend to work more after work and on weekends when working from home is set up. That’s fine and that’s probably necessary to survive in this case. You have to make sure everyone knows this, make sure they agree, and enforce it. This is also part of the reason why team meetings are so important.

“Survive” a real estate downturn: You can!

Need to do more to survive, to win this race. What you have to do right now is determine where you are and what you need to do to overcome the crisis. Strictly follow the 6 secrets above and you will beat the recession!