Recession Impacts 73% Of Americans – How Will That Affect Your Business

A new survey just released shows that 3 out of every 4 American’s have been affected by the recession.

The report, prepared by Rutgers professors Carl Van Horn and Cliff Zukin, find that 73% of Americans have either been unemployed themselves (14%) or saw an immediate family member (12%), another member of their family (30%) or a close friend (17%) lose a job. via the Huffington Post

Sobering news for sure, but since this is a real estate blog the question that comes to my mind is this;

What is the best way to model my real estate business to handle today’s clients?

We can all be optimists and expect things to turn around next quarter, but when our future clients are feeling this pessimistic that does not make a whole lot of sense. And let’s be honest, there will still be millions of homes sold in the coming year. But to be a great real estate salesperson these days you need more than a business card and a smile.

Here are a couple bits of advice that I have to offer.

1. Be Honest and Realistic – Let’s face it, between the advertising by the NAR and other agents, there is a great deal of scepticism amongst the general public over optimistic pronouncements by real estate agents. Most people put real estate agents in the same level of trust as used car dealers and Congressman.

However, coming to a client with an honest and accurate portrayal of the market will get you good clients. Maybe not as many clients as someone else will be eager to blow smoke up their tailpipe, but  the ones you will get will trust you and work with you. And when the deal is done they will not feel used. In fact, this is the best way to get recommendations.

2. Understand Where The Seller is Coming From – Most people in this market are going to have a very good reason why they are selling. The days of moving to lock in equity are gone for now for most people. Typically there is a life changing event that is causing the move and it is not always because of the fear of losing the house. If the seller is moving to a new market for their job, research the market where they are moving too, it may have also taken a hit with their housing prices and you can explain why selling the home for less than they expected quickly is a much smarter move in the long term.

3. Be Empathetic – If your seller is a short seller or trying to get out of the home because they are unemployed, show empathy. Leave your sympathy at the door as it is a wasted emotion. Being empathetic means you understand the pain the seller is going through but you also are part of the team and will work to alleviate the suffering.

Folks, 5 years ago your typical clients were optimistic and eager. Now they are more likely to be scared and paranoid. To be a great agent you need to spend the time to understand the client, provide amazing service and communications, and be a trusted source of honesty.

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