When the going gets tough, the tough step it up.
Real estate companies stand to face big hits when the market is down. With loads of inventory and just a few buyers, supply and demand dictates the price will go down. Most real estate groups make money as a percentage of the sale price on a home. Low prices, low fees. Darwinism (the strong survive) exists in all aspects of society, including industry. In an industry that fluctuates so much such as real estate, the smartest and most cunning know how to weather the bad years. Here’s a good example:
There’s a hundred articles about the Z House Realty Group in Orlando, FL. I picked the AP version posted through AOL Money because of the layout and pictures. AP also interviewed a few people for the piece.
So Z House Realty realized selling houses in a vacation hotspot was going to become increasingly difficult for 2008 and no better in 2009. They started offering tours. $45 gets you breakfast, lunch, and a bus tour of local foreclosures. The tour takes potential buyers around Orlando where they can visit featured houses. Mortgage consultants, lawyers, and maybe a contractor or two are available to help answer questions (and no doubt hand out business cards).
I share the sentiment of one potential buyer. She feels no remorse for buying houses other couldn’t afford in the first place. She didn’t go so far as to say she’s doing a service to her local economy, but in a way she is. The foreclosure prowlers are the one’s that reset market prices. They provide everyone a base on which to compare.
This post is kept short because I want you to read the article. Its a perfect example on how to make money in a down market. I applaud the creativity.
 By The Weakonomist |
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