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REAL Trending Episode 73: Getting Close To Your People, Preserving Cash, And How To Bet On The Future

Apr 14, 2020 8:40:10 AM

From REAL Trends, the trusted source for real estate industry news and trends. This is REAL Trending episode 73. We're analyzing the most important trends affecting brokerage companies and their agents.

I'm Steve Murray, president of REAL Trends. Today, we're discussing getting close to your people, preserving cash, but a new topic, how to bet on the future. What do these trends mean and how can brokerage firms best deal with them?

Steve Murray:

Okay. You've heard me before last week talk about the two most important things a brokerage company can do. First is to get close to your people. We're about ready to produce on LinkedIn and other channels a list of more detailed steps we're recommending to brokers in terms of how and when to use text, phone, email, social media, LinkedIn, Zoom or Skype or Google Hangouts. Every one of them can serve a purpose. Every one of them is a different communications channel. Every one of them can be used differently from the other.

Steve Murray:

For an example, since you can't get together with people personally these days much, what do you use text for versus, let's say, a Zoom call? Well, text is to touch base If you're not using phone, maybe it's just to say, "How are you doing?" We recommend that to leaders and owners. How about just 20 to 30 to 40 to 50 texts or phone calls a day asking someone how they're doing?

Steve Murray:

On the other hand, you might use email to gather information from your agents as to what's actually going on with their practice and what are some best practices. Of course, you could also do that on a Zoom call or, as I said, Google Hangouts or Skype, two different channels, two different objectives to get information or just to convey that you care.

Steve Murray:

In terms of preserving cash, the news is out about the cares program and the payroll protection program. We recorded earlier a whole video about this. We recommend that if you haven't talked to your banker about the Payroll Protection Program or the PPP, do it now. Do it as fast as you can. Yesterday would be timely. This could give you a lifesaver up to two and a half times your regular monthly payroll as long as you're using it to retain people or to pay rent payments, mortgage interests, utilities, et cetera.

Steve Murray:

Preserve cash. Look at everything you're spending. Whatever you don't have to spend, don't spend it. But let's get to the third part of this special REAL Trending episode, which is what's your bet on the future and when this turns around? There are lots of opinions on this. Lots of opinions. It'll be 60 days. It'll be 90 days. It'll be six months. It'll be a V-shaped recovery. It'll be a hockey stick recovery. What do all these things mean?

Steve Murray:

People believe that there's going to be huge pent-up demand, and they could be right. Record low mortgage rates, probably a buildup of inventory, and a backlog of people who either want to sell or have to sell. All kinds of things point to it could be a nice little bull market once we get through this.

Steve Murray:

However, history also tells us that after a housing recession, when there have been big, big levels of unemployment, it takes time for that shock to wear off with people. In fact, we looked at the recession of 1980 to '82, 1988 to 1991, and of course 2006 to 2010. Ladies and gentlemen, every one of those recovery was more like a hockey stick down fast and then a slow steady recovery.

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Steve Murray:

As someone smart once said, "The race is neither to the swiftest nor the battle to the biggest, but that's the way to bet." History teaches us we should probably pray and hope for more of a V-shaped recovery, and we may get it. The way to bet is a slow steady recovery. This housing recovery, we could within three to four weeks have 15 to 20 million Americans unemployed, and I get it.

Steve Murray:

Between state unemployment and subsidies from the federal government, certain people would be making more being unemployed than they were making it their prior jobs. Good. I'm happy for them. I'm happy that the governments, both federal and state, are taking these stances to help these people.

Steve Murray:

But I don't know that somebody that's doing pretty well on unemployment is going to be rushing out to buy a home, and you get that. I think the way to bet is about 90 days. We'll see a steadiness reappear will be through the worst of it, will start to climb a little bit again. People will be going back to work. Retail stores slowly but surely reopening. Restaurants slowly but surely reopening perhaps in three or four months. Things will start looking a little more normal or feeling a little bit normal.

Steve Murray:

Ladies and gentlemen, it's this editor's belief that this will be slow and steady recovery. I hope I'm wrong. I actually pray I'm wrong, but that's the way I'm betting.

Steve Murray:

Learn more about industry trends and successful tactics for brokerage firms, agents and teams, as well as listen to past REAL Trending on Apple podcast, Spotify, Google Play, and others. Visit www.realtrends.com/channels/. This has been Steve Murray hoping you are safe and healthy.

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