Whether we like it or not, it’s undeniable, the market is shifting and it will continue to change for quite some time. At this point, most real estate professionals understand that the landscape is changing. Days on market are creeping up, multiple offers now mean four instead of forty, and buyers aren’t as keen to pay higher interest rates and also offer substantially above market value. We all knew this day would come, and yet, what have we been doing to prepare for a market contraction? How have we set ourself up for success when the tides suddenly turn, the buyer pool dries up and fewer homes sell? Here’s what we’ve been doing to make sure that we don’t just survive the shift, we take territory and thrive.
First, we’ve been taking a hard look at our business and making sure that we’re as efficient as possible. We’ve been streamlining our systems and automating where we can so that we can free up our time to focus on what’s important – working with clients. We’ve also been looking at our marketing and making sure that it ‘s laser focused on our ideal client. We want to make sure that we’re attracting the right people and not wasting time, money or energy on those who are just tire kickers.
These are key mistakes that many real estate agents make. They spend too much time on non-dollar productive activities rather than automating or leveraging, and marketing is usually a shotgun approach rather than being hyper-targeted.
Second, we’ve been studying the market and trying to understand where it’s going. This doesn’t mean that we’re making decisions based on guesses or hunches , but we are paying attention to the data and the trends so that we can make more informed decisions. We’re also trying to be as nimble as possible so that we can adjust our strategies on the fly as needed.
The agents that are going to thrive in a shifting market are the ones that see where opportunity is showing up. For example, there has been between a 40% and 50% ratio of new listings to price reductions in the MLS the last 7 days. That means sellers are showing motivation, understanding that prices are leveling out and still choosing to sell. Meanwhile, buyers that missed out during the frenzy of the last eighteen months now have a shot at finding the right home with a lower level of competition. This is great news for agents that recognize these trends and take massive action.
Third, we’ve been going as deep as possible with the people that already know, like, and trust us. We’re staying in touch with our past clients, our sphere of influence and our referral partners. We’re letting them know that we’re here for them and that we’re still the experts that they can rely on, even in these shifting times.
We take the very simple approach that every 12 solid contacts in our database should net us two deals per year. With that in mind we’re focusing on pouring into our top 150 to 200 people in each of our agents individual databases and placing specific focus on coming from contribution and getting face to face with every one of our people.
As the market continues to evolve, there is one key principle that we keep in focus at all time. Opportunity never disappears, it simply shows up differently. There is always the same amount of opportunity in any market, the tactics to take advantage of it are what need to change to keep your business moving forward.