When the real estate market starts to change and become slower, the initial reaction of many people is to panic. Newer real estate agents may be tempted to join them, while experienced agents know there are ways to tackle this new market without losing momentum in their businesses. As C21 Redwood Realty Arlington agent Gary Hughes shares, “Once you decide you will be one of the survivors, you can move forward eager to manage the change and embrace new experiences.”
Where to start? Here are some tips to help you thrive in your next changing real estate market:
Go Back to Basics
One of Coach Tom Ferry’s top tips for confronting a changing market is to diversify your lead generation strategy. You’ll have to work harder to attract buyers and sellers from a variety of sources, and you may even have to go back to certain basics of real estate like working For Sale By Owners (FSBOs) and expired listings. Diversifying also applies to new price points. Rethink the price point you work in and review whether you may want to explore other price points as well.
C21 Redwood Gaithersburg agent Jeannie Nguyen says working the basics and going the extra mile for her clients is what works for her in a slower market. She says: “I just physically passed out my yearly calendars to my past clients and asked them for business and referrals. I got two new potential buyers from that! Back to basics works!”
Understand Your Market
When a market starts to change, the first inclination of many real estate agents is to start cutting back on their marketing and anything else that may require extra funds. C21 Redwood agent Gary Hughes starts working with a bookkeeper to analyze his spending to determine which expenditures have been investments and which have been expenses. This data helps him make wiser decisions with ongoing investments, like getting rid of a lead source because the ROI was too low.
Gary also reads up on economic projections. “Figure out where the up is going to be; there is always an up, or there wouldn't be a down,” he says. “Then, just like in sports, get to the spot and wait for the ball to come to you. It will also give you great credibility to explain what is going on in more depth than the customer can get on the evening news.”
Improve Your Communication
Now, more than ever, it’s essential to stay in consistent contact with all of your clients – past, present, and potential. One of the best ways to do that is to make sure you’re utilizing your Client Relationship Management (CRM) system to its fullest advantage. An effective CRM, like what we use at CENTURY 21 Redwood Realty – Contactually, will enable you to provide information and value to your target audiences on a regular basis. As Gary notes, “getting a referral is less costly than buying a lead.”
The most important thing to remember is that in any market, people will still buy and sell houses. Going back to real estate basics, intimately understanding your local housing market, and brushing up on your communication skills will help you not only survive but thrive in a changing market.
Does the market shift have you considering a change? We have some amazing opportunities coming up for agents, including attending Sales Edge with Bill Pipes for free. We'd love to have you there!