Economic activity across the world has come to a shuddering halt due to the coronavirus outbreak. Stock markets have plummeted, while conferences, dining, lodging and travel are all being cut back or canceled altogether.
The crisis may cause real estate professionals to start making plans in case the outbreak leads to a slowdown in home buying, realtor.com reported.
That’s good advice no matter if you’re just starting out on your career, or getting close to retirement, said George Ratiu, a senior economist at realtor.com. He suggests that professionals start by assessing their financial situation first of all, comparing their earnings to monthly outgoings such as housing, utilities, food, transportation, travel, entertainment and other expenses. He advises people to see if there’s anywhere they can cut back on their spending, if they feel it is necessary. In addition, he advises to build up a cash reserve to sustain yourself through any tough times ahead. Most experts say it’s a good idea to have enough cash to cover at least three months’ of expenses.
Should a recession take place and sales begin to slump, Carrie B. Reyes writes in First Tuesday that real estate pros can consider another business niche to bring in some extra revenue. Ideas include taking on relocations, referrals, exchanges or even property management. Another idea is to consider getting more education to help build revenue streams. The National Association of Realtors offers several courses. Expand your farm area to additional neighborhoods and increase the delivery and frequency of your marketing to get messages out about the market and record low mortgage rates to reassure buyers and sellers about conditions.
Economists say that low mortgage rates could soften the impact on sales this spring. “Although most people think of recessions with dread, it is worth keeping in mind that they can also be periods of opportunity, especially if you are prepared,” Ratiu writes. “As the last recession demonstrated, while asset markets declined, many prepared buyers found treasures, often in low-priced homes.”