The market is changing.
NAR predicts home sales will drop 9% this year. Fannie Mae predicts a “modest recession” on the horizon in 2023. The inflation rate is at a 40 years tall.
While economists point out that we are not heading into another 2008, we seem to be over the days of every home on the market receiving double-digit non-contingent offers.
The good news for dedicated agents is that a weaker market can be a great time to gain market share. Greener part-timers tend to drop out of the industry when the going gets tough.
It is possible to exit a bear market stronger than you entered it, but only if you have taken the time to plan for it. Here are three steps you need to take now so you can approach the changing market from a position of strength.
Reorganize your business plan to focus on the pipeline
First, you need a business plan. Too many agents are throwing different strategies at the wall, hoping something will stick. But it’s an inefficient way to run a business.
The most effective way to achieve your goals is to a) write them down and b) create a detailed plan of the steps you will take to achieve them.
Second, building a pipeline should be the main focus of your business plan for the rest of this year.
“So many agents haven’t followed their marketing or hit their spheres,” said Cathy Treviño, Texas chief broker at Side and president-elect of the Houston Association of REALTORS®. “It may have worked when houses were flying out of MLS, but agents who don’t double down on lead generation, marketing and connecting with their spheres are going to struggle in a slower market.”
The market has been so hot for so long that it might have been a while since you made a real investment in strengthening your database. Now is the time to change that.
“Take a close look at where your leads are coming from right now,” said Donnie Pingaro, Side Florida’s Chief Broker and AREAA National President-elect for 2024. “Identify the most effective channels and commit to them. Stop spending on tactics that you can’t prove help generate revenue. »
Automate and outsource low value-added tasks
Once you have a solid business plan tailored to the realities of this market (i.e. building your pipeline), identify the most important activities you will need to complete to achieve your goals.
Then identify which of these activities you can automate or outsource to someone else.
“You need to focus on working $300/hour, not working $20/hour,” Donnie said. “And the $300/hour job, the most valuable thing you can do with your time is connecting with your customers — not posting on social media or sending postcards.”
So many agents lack practice in deceptively simple tasks that become essential to success in a slower market, like keeping your seller informed of the status of their listing. That is why it is essential that you take the time now to streamline your back office (i.e. all the administrative work) so that you can prepare to spend more time in your front office (interacting with customers).
Find a support network
To thrive in a bear market, you need to be creative, resourceful, and open to new ideas. And ideally, you will have a community of like-minded agents in your corner to support you.
“It’s so important to be in an environment where everyone knows they’re in this game together and are willing to help each other,” said Nicole Solari, founder of Improve real estate. “I can’t tell you how many people from Side’s partner community have come up to me and said, ‘Hey, you’re doing a great job. How can I help you with your business?’ And especially when the market is slow, this collaboration makes such a difference.
This process will be different depending on where you are in your career. This could mean joining a highly productive team and being mentored by an expert who has already thrived on market changes. Or it could mean doubling down on continuing education, seeking out mastermind groups, and committing to making more connections at industry events.
If you don’t have a group of agents you can turn to for advice and empathize with when the going gets tough, let yourself be guided to find one.
About the side
Side is a behind-the-scenes brokerage platform that partners exclusively with the most successful independent agents, teams, and brokers to create and grow their own boutique brands without the cost, time, or risk of running a broker. Side’s proprietary technology platform and best-in-class support solutions enable its agent partners to be more productive, grow their business, and focus on serving their customers.