 So what happens is as the market's going up, everybody's pricing it higher, as it flattens out, that strategy doesn't work, and now a lot of agents get scared because what's working isn't working anymore and then they don't know what to do. What's up everybody? Ricky Caruth here, welcome back to my channel. So today I wanna talk about recessions, crashes, market crashes for real estate agents. And I wanna let you know right this second that there's no such thing. That's right. There's no such thing as a recession, as a market crash, as a downturn for real estate agents. The economy has downturns, the start market has crashes, okay? So on and so forth, prices go down, inventory fluctuates, days on the market, all these things change constantly, but one thing remains solid and that's that closings happen every single day regardless of market conditions. So what I want you to do is I want you to be very weary of people that are trying to advise you or YouTube videos or other coaches that are trying to talk to you about the crash and what's gonna happen and how it's gonna affect us and everything like that. Okay, I want you to be very, very careful when you're listening to these gurus, these coaches, your other agents, even people that aren't even real estate agents, okay? Because I want you to listen to me right this second. I want you to remember this for the rest of your life. There are only three different kinds of markets for real estate agents. There's a buyer's market, there's a seller's market, and there's a balanced market, kind of mixed where it's balanced between buyers and sellers, okay? A seller's market is where a seller has the power. They can ask kind of whatever they want to a certain extent, and the buyer's in a situation where there's not a lot of inventory. If they want to buy it, they have to buy that piece of property, the seller has the power. A buyer's market is the other way around. The buyers have the power. There's a lot of inventory, days in the market are really high, prices are really low, there's a lot of comps that support even lower prices maybe, and the buyer can go in and say, look, this is all I'm gonna pay. You can take it or leave it. I'll go buy another property right down the road. There's a lot of stuff for sale, okay? So that's a buyer's market. And a mixed market is where there's not a lot of, nobody really has any power. It's kind of mixed. It's like, you know, there's, you know, the prices are pretty level between the buyers and sellers. There's an argument either way. There's some lower comps and there's some higher comps, and so the seller's gonna say, oh, well look at these higher comps. The buyer's gonna say, look at these lower comps, okay, and we're probably gonna meet somewhere in the middle. There are other options. There's a little more inventory, not as much as a buyer's market, as a true buyer's market, but there are some other options. So the seller says, if I wanna sell, I better try to make this work. However, there's not a whole lot of options. So the buyer is probably looking at that property thinking that's really the one I want out of the other two that are available. So I might wanna try to make something work. And so it's more of a balanced market. Now, why is this interesting to us as real estate agents? This is, these are the three different kinds of markets as a real estate agent, okay? As the market's going up, that's called a seller's market. When it starts leveling off, like we're in right this second at the current market, we're kind of leveled off. This is kind of a balanced market. And then from here, the market could turn and keep going up or it could stay balanced for a little longer or it could start coming down. No one knows which way it's gonna go. However, it doesn't matter to us as real estate agents. Closings continue to happen every single day. Now, if the market does decline, number of transactions will go down some, okay? But that still does not eliminate the fact that they're still happening. And they're still happening at a high enough volume whereas there's more than you as a single agent, even as a team, as an entity. Let's just say you as an entity, a real estate entity, even a real estate company, more than you can handle, okay? Forever, there's more than you can handle. I was talking to a big time agent and coach and franchise owner the other day and I was talking to him about this, business is unlimited, philosophy of mine. And he said, absolutely not, it's not unlimited. There's only so many, so many deals. There's only so many transactions. I said, yeah, but there's not one entity that can do all the transactions. There's not one entity that could come in and take all of those transactions. There's no way. That's why it's unlimited. Sure, there's only so many per year, but it's such a process. Every deal is such a process. So it turns into a situation where you can't handle every single deal. No entity can. So you have to go through the process on this deal, you go through the process on that deal and now your success now becomes predicated on how much can you handle at one time, okay? Overwhelm yourself with business, figure out where you stand, okay? How much can you handle at once? Then we're gonna stay right there, right under, exactly. We're gonna put ourselves in a situation where we have just enough business to where we can hold that pace for the longest amount of time. Now when the market's coming up, everybody's using the same strategy. Let's price it a little higher, a little higher, a little higher. And then when the market shifts, that strategy doesn't work anymore. We now have to go with the flow of the market. We have to start pricing our listings a little more competitive compared to the comps, maybe right at the comps, maybe even a little bit under the comps. I'm even pricing a few of my condos and houses and land and commercial and all the different properties I list, a little bit under the comps here lately. Not all of them just depends on the situation. Right, I'm gonna look at days on the market, inventory, everything that's happening. I wanna see the whole spectrum of the market when I'm pricing a listing, but some of them I'm pricing right at. Some a little bit higher and some even a little under, just depending on the situation. But I'm keeping what's going on the market in mind. So what happens is as the market's going up, everybody's pricing it higher, as it flattens out, that strategy doesn't work. And now a lot of agents get scared because what's working isn't working anymore and then they don't know what to do. So they get scared and all it takes is a little bit of fear to hold yourself back and now you start to become behind on your bills. If you miss a month or so of closings, you're thinking, man, it's going downhill, I gotta get out of the business. Whereas if you would stay in the business, continue making your calls and start consulting your clients around the current market that we need to be more competitive with their price if you really want to sell. And that's another thing. It's all about what the clients want, what, why they're doing what they're doing. Why do you want to sell? How can I help you do that? All right, and then here's what we have to do in the current market for that to happen. Here's the game plan. Let's go. So as the market changes, as it shifts, I want you guys to shift with it. I want you to start going with the flow of it. I don't want you to get out of the business because you watch your MLS. Closings are gonna continue to happen every day. So from here, we don't know which way the market's gonna go. We never do. No one ever knows which way the market is gonna go. All we need to know is that if we continue to be consistent with making our calls, doing our marketing, doing our weekly email, following everything to a T, talking to the most people, then we're going to win. It's all about who's talking to the most people with the best intentions and who builds their personal brand on the backside of those conversations. That's it. Who is throwing the biggest net out there to talk to the most people with the best intentions that they're here to help people and then through those connections, build your personal brand around those connections forever. That's how you become the number one agent. It's the only way to become a number one agent so that everyone, as many people as you can find, knows who you are and that you're here to help them at any moment. So please, please, please don't worry about a market crash. Don't worry about a market downturn. Don't worry about this, don't worry about that. Your closings will temporarily suffer, right? The number of transactions will temporarily suffer as the market shifts, okay? Because it shifted, kind of caught us off guard, maybe caught us in the middle of a deal or middle of a listing, okay? But that's temporary. That's when we have to actually turn the heat up, okay? When it slows down and maybe we're not showing as many properties and stuff, now we need to really turn the heat up with that extra time we're getting. Call more people, inform them of this new market change that we're in and see what we can do to help them. So I really hope this video helps you a lot. Understand the market, how this game really works. You don't have to worry about a recession, a downturn, a crash. It just doesn't exist for us agents, especially the agents who are working hard. Understand that it's about connections, how many people we're talking to and what we're trying to do to help these people and what we need to do with these connections. Please hit the like button and comment below and let me know what videos you want me to make next. I'm here to help you. So if there's anything in the world I can do for you, hit me up on Instagram or leave me a comment here. We'll see you on the next video, let's go.