The Secret To Surviving the Coming Recession

Were you a Realtor during the 2008 recession? How did that go? Do you have clients who might not be prepared for the coming economic downturn? I bet there is, and you should be preparing them. I have the secret to not just surviving but winning big during this coming recession and today I’ll share them with you.

Most experts agree that the U.S. is heading toward a recession.The question isn’t if but when and how long. The Federal Reserve is making bold moves with rates to fight inflation that’s at a 40-year high. Some project that the federal funds rate could climb as high as 3.5% by the end of the year, a nearly unprecedented rise from our current rate of around 0.75%. 

It’s too early to tell what impact this may have on mortgage rates and home prices, but it’s not too early to start communication with your database. Start doing that right now before it’s too late (and it will be too late soon). They’re getting their information from someone; if it’s not you, then who?

Times like these cause lots of uncertainty as people try to get ready for the coming storm. I recommend you share some tips and strategies to help those close to you recession-proof their lives and their real estate. Here are a few ideas:

1. Tell them to review their expenses. Advise them to go through credit card statements and see what they can cut. I find new stuff each time I do this.
    
2. Advise them to consider diversifying their investments. Crypto, stocks, cash savings, and real estate are all great options. Diversification really helps during recessions. 
    
3. Ask about their cash reserves. Do they have six months of expenses set aside in case of a layoff? Do they even know what their average monthly expenses are?
    
4. Ask about any emergency supplies. Could they function without internet for a month? Do they have maps and extra food and water?

I’m sure you could come up with tons of recommendations to send to your clients. If you’d like our list, we’d be happy to send it your way. Consider making a video series, and make sure you send these messages out however you can.

“When times turn, people look to experts to help guide them.”

When times turn, people look to experts to help guide them. Are you that expert? If you are, not only will your clients turn to you for help, but you might also gain new ones. This is another opportunity, like just before the pandemic, to get in touch with more people and secure your relationships. 

It’s times like these when good and great Realtors increase their market share. If you have any questions, feel free to call or email us. We would love to help you.