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“With relatively few barriers to entry the real estate industry can become flooded with practitioners during a prolonged sellers’ market (an upshift). Larger and larger numbers of agents are attracted to the industry and this increases the competition for the existing business. When the amount of business then declines (a downshift) the competition becomes untenable. There are more people but less business and fewer deals. Fewer deals mean less money and less money means lower income for everyone—and eventually it means fewer people doing business. If you can ride out (survive) this initial lag period as more and more people get out of the business you can find yourself in a less competitive market. There is now more business relative to the number of people working to get it. This is the time to thrive.

How long it takes to get from survive to thrive can vary greatly from time to time and from person to person. There is the market’s shift and its lag time, and then there is your shift and your lag time. If you don’t shift fast, your lag time will parallel the market and you may be at risk. To thrive in the upshift you must first survive the downshift.”

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