This famous Warren Buffett quote applies to today’s real estate industry.
Recently, a friend of mine brought up a famous Warren Buffett quote: “Only when the tide goes out do you discover who’s swimming naked.”
What does Buffett mean by that? It’s no secret that the current real estate market is bananas. Looking back to 2011 when people were buying homes at trustee sales then flipping them for profit, we can see that the market was bananas back then, too. At that time, if our performance numbers were off, the market appreciation would always bail us out—I think that is what Buffett was referring to in his quote.
It’s difficult to tell right now if our strongest real estate successes are the results of our skills as agents, or simply the result of the market’s current state. I’m not trying to burst your bubble; this really is a great market. But as it starts to shift, ask yourself if, for example, you’re prepared to turn down an overpriced listing. Do you know how to have that conversation? If you happen to take that overpriced listing because the market shifted on you, do you know how to ask for a price reduction?
“When the market shifts, those who aren’t prepared will be exposed.”
We don’t think about a lot of these things, but being able to do them is what makes for an amazing listing agent. In order to run a real estate business, you have to become a listing agent. Buyers can be fun, but they consume a lot of your time. You can list dozens of homes each month just by adding leverage; you’re not required to be in every place at once like you would be with buyers.
I encourage you to take this time while the market is hot to educate yourself about what it means to be an amazing listing agent. That includes experience engaging with things like price reductions and your listing presentation, as well as how to reckon with the fact that accepting an overpriced listing devalues and minimizes your income.
When the market shifts, those who aren’t prepared will be exposed. It’s time to be prepared.
If you have any questions about today’s topic, would like more tips on building your business, or if you’re interested in attending our workshops or trainings, don’t hesitate to reach out to me via phone or email. I’d be happy to meet with you.
