Residential real estate agents contend with winter slump

The holiday slump is famous in the residential real estate field. But is the slump truth or legend? The last quarter of the year is not the only slow one, according to Central Pennsylvania real estate agents and economic data. In fact, the first months of the year can be the hardest time to sell a

In the first quarter of each year since 2001, real estate agents in southcentral Pennsylvania have sold about the same number or fewer homes versus the previous quarter, according to the Pennsylvania Association of Realtors' quarterly home sales reports from late 2000 until early 2005. Those declines occurred during a real estate boom, where a second quarter showed sales increases as high as 20 percent (see "Can you spare a quarter?" page 9).

Real estate agents have developed a few techniques to keep commissions coming in during slower times. Working independently, each agent has his or her own strategy.

One way to buffer the usual problems in the year's bookends is to build up a clientele of property investors.

"Investors are interested in buying (at the end of the year) because they're getting their tax write-offs immediately," said Drew Smith, a real estate agent with Coldwell Banker Bob Yost Homesale Services in Springettsbury Township. Smith sells 300 to 400 homes each year and said his sales are fairly steady throughout the year. He sells to homeowners and residential property investors. Agents without an investment element are more likely to see a lull in business from Thanksgiving to early January, he said.

"It's like you can set yourself on fire and run down the street, and no one would see you because of the fat red man behind you," Smith said. At the same time, agents perpetuate the lethargy of the season, he said.

When they focus on their families instead of work, agents will get less business.

Some agents lie low during the holidays, then try to spark buyer interest with a marketing blitz in early January.

"Advertising is terrific because it catches the eye of people who are not actively looking," said Joe Musti, also a real estate agent with Coldwell Banker Bob Yost.

RSR Realtors' regional sales manager, Jamie Berrier, uses slower times to work on strategy in her Lemoyne office and get organized.

"At this time, I try to regroup and anticipate next year and set priorities," Berrier said.

Still, it is possible to bring in a commission. Agents can pound the pavement while competitors relax during the "slow time." Most admit that their perspective of the holidays is limited to their own experiences. Some agents keep occupied throughout the entire calendar year. Smith of Coldwell Banker and real estate agent brothers Greg and Garrett Rothman of RSR Realtors all professed busy winters.

"January has always been my best month," said Greg Rothman. "I always thought the reason was that I had set my goals for the year and was eager to get them accomplished."