The real estate market is challenging throughout the United States.  For the first time in nearly thirteen years, U.S. home prices experienced a quarterly decline, according to the Office of Federal Housing Enterprise Oversight (OFHEO, November 29, 2007).  Additionally, single family home sales fell by 13 percent in 2007, which was the largest drop in 25 years (CNNMoney.com, January 24, 2008).  Credit markets are in turmoil and the stock market is down from last Summer.  As a result, it is harder to make a living representing buyers and sellers as a real estate agent.

So, what are your options?  Well, you can press forward pursuant to your current business plan, or you could tweak that business plan to accommodate the changing market.  However, the transactions may not be there no matter the adjustments you make.  Maybe you should consider changing careers?  But you have invested so much time and money into your real estate career, leaving it would seem short sighted.  How can you make this work?  How can you survive this market and set yourself up to benefit when the market dynamic turns around?

What if you could develop revenue streams related to your real estate business, but not in the form of commissions associated with buying and selling real estate?  These revenue streams would not detract from your real estate career, but instead leverage the time, money, learning and expertise you have developed as a real estate agent.  In fact, if properly considered, these supplemental revenue streams could reinforce your core real estate business and set you up for growth as the market turns around.

Taking into consideration your own strengths, consider exploring these supplemental revenue streams: 

1.   Are you a good writer?  If you enjoy and often get compliments on your writing, consider writing for the local newspaper, magazine or real estate publication.  Study the real estate market, interview the different players and report on it.  You have likely spent money advertising in the local publications so they should be receptive to your suggestion.  You might also consider developing a blog with contextual advertising.

2.   Do you love sales?  If you love to sell, as many real estate agents do, consider developing a neighborhood website, newsletter or blog and selling advertising space on it.  Connecting Neighbors offers a program, including marketing collateral and coaching for this revenue stream today.  There are many real estate agents using the Connecting Neighbors program that make hundreds of dollars per month or more selling local advertisements.  In addition to generating revenue, you can form valuable partnerships with local business owners that often result in referrals or clients, thereby reinforcing the core real estate business.

3.   Have you noticed an increase in foreclosures in your area?  If so, there is money to be made in the foreclosure market.  Perhaps you could partner with a local bank to help prepare and market properties it has repossessed.  The bank may be willing to pay you as a consultant for this rather than through commissions at closing.  Additionally, individuals may need advice and help relocating, so consider providing one-on-one consulting, seminars or information to these individuals.  You may also partner with a rental company to help them find renters among those losing their homes.

The goal for any of these suggestions would be to supplement your income by $1,000-$3,000 per month.  This is no time to leave the real estate market.  Remember, the National Association of Realtors® estimates there will be 5.7 million home sales by the end of 2008 (Robert Freedman, REALTOR.org, January 1, 2008), but to make some of those sales your own, you need to get creative.  Assess the skills and assets of your entire business.  Where can you add value to others? 

Check back soon for additional supplemental revenue ideas!