Real estate agents are being advised not to fear the economic fallout from COVID-19 with agents still able to make deals in a boom or bust economy.
During a recent episode of What’s Making Headlines real estate expert, trainer and founder of Real Estate Gym, Tom Panos highlighted the real estate industry will still have transactions regardless of the market.
“Here’s the deal. You got to understand, if you’re a real estate agent, if the market is booming, the vendor that you represent gets a boomed price. And then that vendor then goes off and buys another property at a boom price. And you get paid because they did a deal,” Mr Panos told real estate agents.
“Now, if the market is in a slump, that person sells a house at a lower figure, but goes off and buys a house at a lower figure again. And you still do the deal.”
He also explained that consumers do not only buy and sell properties for financial reasons, meaning deals will be done even in a downturn.
“You got to get out of your head that the way that the market operates is only when it’s booming,” Mr Panos said.
“People actually move home. So they can actually have an extra bedroom. They move home because they want to move into a school zone.
“They move home because they’re sick and tired of living in the rat race. They move home because they busted their partner cheating and they’re separating.
“They move home because they’ve got a death in the family. People move home not because there’s a bloody boom. You know what I mean? And I think sometimes we forget that is the role.”
The real estate expert actually predicts it could be a good time for agents and mortgage brokers in the market.
“People want solutions to problems. People are [overagonising], Oh, what’s my interest, rate? What can I do? Oh, well, what are the catches with that? This is a golden opportunity for both mortgage brokers and real estate agents because people have got more problems. They need [problem-solvers],” Mr Panos concluded.