Real Estate Agent Podcast Episode 59: A Stress-Free New Year
You need to space out time to relax and do other things other than servicing clients. Otherwise, what's the point of all of this?
About This Episode
2020 was a turbulent year, and everyone is devoted to helping 2021 be a more positive and happier one. In this episode, we make some predictions for the upcoming Presidential administration and review the major changes made by policymakers that have affected the real estate markets of the past.
On the polar side of things, we also break down some ways to de-stress and relax while still networking and growing your real estate business.
Download our free ebook, De-stress While Building Your Market Strategy here.
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JON: All told, 2020 was actually a pretty great year for real estate. While agents tried to navigate seeing and showing homes during a global pandemic, limited inventory and low interest rates pushed prices to record levels in markets across the country. But even though business was good, it’s hard not to wish things would just go back to normal.
JON: I don’t need to tell you that 2020 was an odd year. For those of us who lived through it, we’ll likely be talking about it for decades to come, and while many of the things that made it so unpleasant have persisted into 2021, there is plenty of hope that better days lie ahead.
JON: Hello and welcome to Shop Talk: The Real Estate Show. I’m Jon Forisha, and on this episode we take a look at how government policies can affect real estate (but I promise we won’t go down the political rabbithole), and we look at some ways that you can use this new year to de-stress and relax - for the good of your business.
JON: So 2021, obviously a lot of stuff has been happening in politics. We don't want to get into any of the nitty gritty there, but do you want to talk about what governments can do to affect the real estate industry? So joining me to talk about it is Jeff Erbert, the Regional Content and Social Media Specialist at The CE Shop. Hey Jeff, thanks for joining me.
JEFF: Hey, thanks Jon, for having me back on the show.
JON: Yeah. Happy to have you. So, you know, with President Biden being inaugurated on January 20th, what kinds of changes to the real estate industry can we expect?
JEFF: Yeah. So interesting you bring that up, Jon, because presidents and policy can actually have quite a large impact on real estate markets as we'll find out about this podcast, but more specifically with President-elect Biden. I know that he and the Democrats are really looking to push the caring for Americans with supplemental help act of 2020, or CASH, which you've probably heard about in the news, but that's the bill that proposes a $2,000 stimulus check for individuals and $4,000 for married couples who filed joint tax returns. It's super important from a real estate standpoint.
JEFF: Just because as it sits currently, housing costs in the United States are the highest they've ever been with the average rent in the US being currently at $1,463 a month. Hence I think where they kind of get this $2,000 figure, obviously it varies from region to region, but as anyone who's studied economics or has been keeping their eye on things for the past couple of decades or so will tell you, economies are complicated and fragile beasts. So when money stops flowing through them, they begin to kind of tumble and stumble and avalanche into a big economic catastrophe. So I think the purpose of the stimulus check is just to keep things lubricated kind of like how you want to keep oil in your engine. You don't want to run your engine without oil. Also unemployment numbers are nearly doubled from this time last year. So I guess like the stimulus is just going to try and he'll put a bandaid on things until we can get the vaccine out and try and achieve some level of normalcy.
JON: Which hopefully is very soon. Yeah.
JEFF: And actually, Jon, I just want to add one one more point to the stimulus checks too. It's, it's also important for consumers to maintain their credit scores for lending in the future. So, or in the near future rather. So hopefully by getting this out to Americans it can help to avoid defaulting on mortgage or rent payments and kind of hurting their consumer credit. Yeah. I just wanted to add that.
JON: Yeah. And $2,000 you know, especially if it's a couple looking at buying a house, $2000 each could be a nice little dent on a down payment.
JEFF: Yeah. Definitely with the way lending is currently. I mean, you know, depending on your situation, you don't really have to put as much money down as you might think. I know the real estate professionals listening now will definitely second that. And the Dow Jones is currently over 30,000 points too. So you know, kind of keeping things lubricated is definitely good for people like me because when I buy a house someday, a lot of my down payment is going to come from investments that I've made in the market. And you know, as a rational self-interested individual, I definitely want that value to remain. So, absolutely. And another one other thing I wanted to add too, another change we might see under the Biden administration is improved funding for housing and urban development. I don't want to get too deep into the minutia of HUD because it's an extremely complex and obfuscated organization, but nonetheless, they do grant a lot of money to local municipalities for infrastructure improvements and other projects which can actually dramatically improve property values in the area. So yeah, a lot of things to keep on the dashboard for 2021. Absolutely. Yeah.
JON: All right. Well looking historically at the past, what are some changes that past presidents have enacted upon the end?
JEFF: Oh boy. So as you know, real estate affects everybody; it's a part of everybody's life. So there's kind of this inherent bond between politics and real estate. Regardless of which party you kind of follow. But there've been a lot in history. I mean, we could go back as far as the Louisiana Purchase, which is probably the greatest real estate deal in the history of the world. Or the Homestead Act of 1862, which was signed by President Lincoln and that granted people about 160 acres, if they live on the land and improve it which in total turned out to be around 270 million acres worth of land that was just given to people from the government. Now who those lands were taken from, that's, you know, that's another dissertation which we want in touch right now.
JEFF: But kind of, I guess, like speeding up things a little bit in the ‘30s through the Great Depression you had a lot of I guess progress made. That's when Franklin Roosevelt formed the Federal Housing Administration. So we definitely hear a lot about that today with FHA loans and stuff like that. So that was major and helping give banks the confidence to lend and kind of keep that all-important money flowing through the economy. And then there's the, of course we can't just fly over the Fair Housing Act in 1968 obviously signed by Lyndon B Johnson, President Lyndon B Johnson, which prohibited the discrimination in advertising lending or renting based on a person's race, color, religion, or national origin real estate. If you want to do some more research on your own you'll find it’s inherently valuable for helping people kind of rise out of poverty and kind of fight some of the inequalities that we experienced and still experience today.
JEFF: That was definitely more recent, probably in the memories of a lot of our listeners. Of course there's big governmental sponsored enterprises, like Freddie Mac and Fannie Mac which were part of the Nixon era, which were fairly relevant in 2008. So yeah, that's just, that's just to name a few, you know, you could probably do a whole doctorate on the relationship between politics and real estate.
JON: And something to point out too is, you know, real estate agents have existed for a long time. And even through all these changes, real estate continues, you know NAR was formed in 1908, somewhere around there. So obviously obviously agents have made it through all of these previous changes, so whatever comes it's going to be okay.
JEFF: That's a great way to think of it.
JON: So, Jeff, do you anticipate any changes in the markets due to the ongoing pandemic in the next few months?
JEFF: You know, from everything I'm seeing and reading I'm not seeing an immediate like outstanding change only that I think that it's gonna get even better. We're going to see continued demand for suburban homes. People wanting to spread out in Sunbelt states for people who just got new work remote positions, and they don't want to live, you know, in Buffalo, New York they'd rather live in Hollywood, Florida, or something like that. So yeah, I think we're just gonna kind of see the same trends. Rent might drop a little bit in dense urban areas as people kind of spread out or you know, obviously if the stimulus doesn't doesn't pass or doesn't get out to Americans quick enough. And in the case where, you know, the $2,000 is not enough to keep people afloat, we could see some rents come down. We're already seeing that a little bit. But overall though 2021 is going to be a fantastic year for real estate markets nationwide.
JON: Excellent. That is great to hear. So can we expect interest rates to change at all in the next few months?
JEFF: Yeah, so I personally don't think so. Like I said, economies are intricate and fickle beasts. It would be reckless for banks to raise interest rates. If we do see that it will probably be more towards the end of the year, if not next year. I know Dr. Fauci is anticipating that if all goes well and we roll out the vaccine by Q3 of this year, we can kind of reach some level of normalcy which would be fantastic for everyone. But yeah, then after that, we might start to see things trickle up a little bit, as far as interest rates go and unemployment kind of drops. But until then interest rates are going to be low and demand is going to be high. All the markets I'm looking at nationwide are probably going to err on the side of a sellers markets. But then again, that doesn't mean it's not a good time to buy. It just means that yeah, it's going to be a great time to be a real estate professional.
JON: Cool. All right. Well thank you Jeff.
JEFF: Thank you, Jon.
JON: After the break, we’ll break down some proven methods for unwinding, de-stressing, and recharging.
JON: New year, new you! You’ve heard it a million times, but have you ever lived it? If you’re considering changing careers into real estate, might I just say that January is a perfect time to do it? The CE Shop’s online courses can teach you what you need to know so that when spring rolls around, you’re ready to start wheeling and dealing and creating your dream career. Use promo code SHOPTALK for 25% off the most convenient real estate education there is.
JON: So we just talked politics and what to expect in the next year with Jeff. Now we're going to distance ourselves from all of that and go with the opposite side of things. De-stressing for the new year. Joining me to talk about this is Zach Levine, Content Specialist at The CE Shop. Hey Zach, thanks for joining me.
ZACH: Thanks for having me.
JON: Yeah, thanks for coming back. So what are some impacts that stress can have on your body?
ZACH: When it comes to the body itself? It's like the obvious indicators, headaches, fatigue, change, and sex drive, sleep problems with long-term issues, being cardiovascular disease and obesity. However, it's not the body that is so much concern as the influence it could have on your actions as an agent. You have to always be energized thinking on your feet when you're in the industry. And when you add stress to the equation, you're more likely to have angry outbursts or resort to coping mechanisms like overeating or alcohol abuse. So those are the effects on the body. Behaviors is best, but it all leads to one thing you're not performing as well in the job and in other aspects of your life,
JON: Yeah. That would be really bad for your business. How do you know that you're stressed?
ZACH: How you're feeling and your overall behavior are clear indicators of stress. If you find yourself short tempered or with increased tension in your back and traps, you’re probably feeling the effects. That being said, it depends on you as a person. Most people would agree that they know when their stress is taking a hold of them. They know it, they know when it's coming. Sometimes it's a little bit delayed, but for the most part, you know, it's happening.
JON: Yeah. And stress can do weird things to your body. I mean, you outlined a lot of them, but I've seen all kinds of articles about like, is this happening to you? You know, like some unexplainable vision problem, maybe it's stress, some weird breathing thing, maybe it's stress.
ZACH: Well, you're going to go down a Web MD rabbithole, and then you're going to think you have some sort of brain tumor, you know.
JON: Yeah, exactly. Well, and with the pandemic still ongoing you know, stresses of how many times a month do you think, maybe I've actually got COVID now. Like it's constant with stress and anxiety. So, what are some ways that people can de-stress?
ZACH: So for me, exercise is my main trick, but playing sports games, socializing with friends, meditation, lounging around for eight hours watching Netflix, obviously with some movement thrown in here and there, not just sitting still because that will make it worse. But these are great ways to find your equilibrium. And, you know, at the end of the day, I find the constant of all these to be is getting your mind elsewhere. You know, being able to break away from what the norm is of what your daily, your life daily routine, and be able to just be yourself, be, I don't want to say Zen, but you know, you're in that de-stressed state where nothing else is bothering you and you’re thinking of the task at hand, not the task that's happening at the office. You need to always be bringing your a-game as an agent, but if you're stressed, that might be limited.
JON: Yeah. And if you're super stressed, I mean, your clients are going to pick up on it. They're going to see, you know, this agent really doesn’t know what they're doing. They seem frazzled and it's not a good look.
ZACH: Unprofessional comes through. That's what happens.
JON: So a lot of agents, you know, the entrepreneurial mindset, there's this motto of “I'll sleep when I'm dead,” you know, who needs to sleep when I could be out making more money? Why is that a bad motto?
ZACH: Because you'll be dead sooner than you think. You need some space out time to relax and do other things other than servicing clients. Otherwise, what's the point of all of this? It's good to be a hard worker, but it's also effective to take breaks and some days off to enjoy life, giving yourself that pause and to be more productive or actually giving yourself that pause will lead to you being more productive and actually be better at your job. It's good to take a nice break. And I've noticed that even with, you know, what I do, and as a writer I, you know, I took a week off a few weeks ago. It was amazing that I came back and like looking at my work ethic and determination coming back and how easy it was to flow back into it. Just having that time off is really good for your brain and your body.
JON: Absolutely. for someone who feels like they have to be doing something all the time and want to network, even while they relax, what are some methods?
ZACH: You combine the two activities, which I discussed in my soon-to-be Pulitzer prize winning book, De-Stress While Growing Your Marketing Strategy, which everyone can check out on our Agent Essentials page. So it's about embracing yourself in de-stressing activities while creating content or a conduit for engagement that reaches out to followers, leads, and clients. What does this all mean? So a good example would be, I love playing chess. It's my favorite game and it's become very popular because of The Queen's Gambit TV show. So what you do is you'd create a chess club when you post about it on social and you try to get your clients involved, you could put it on your business card, your chess username, it's about taking those activities and bringing it into your business life. So you can combine the two and actually create engagement and great business while de-stressing.
JON: Yeah. We talked two episodes ago on the podcast about social media and being yourself. And I think this is a big part of it. You know, bringing your personality into your business persona.
ZACH: I'm always a big fan of, you know, agents in some ways are salesmen, and you have to be passionate about what you're doing and people can see through that fakeness when it's not there. So when you do something that is yourself, it's very easy to be passionate. It's just easy. It's natural. And that's what makes it so effective.
JON: Awesome. All right, Zach. Well, thanks.
ZACH: Thanks for having me.
JON: That’s it for this episode, thanks for listening! If you enjoyed the chat, you can subscribe to us and review us on Apple Podcasts. Shop Talk is a production of The CE Shop.