It's no secret that the real estate market has struggled since interest rates are rising due to the economy. Is thriving during these challenging times still possible? The good news is that there are still plenty of opportunities for agents who know how to adapt and change with the market. This article shares 6 tips on how to thrive in a down market.
- Build a Good Foundation System
Building a sound foundation system is one of the most important things you can do to set yourself up for success in a down market. This system should allow you to easily plug new agents into your team to continue growing your business even when the market is struggling.
- Teach New Agents How to Sell Houses
You probably have taken some real estate courses in preparing for your license exam. Although these courses are great for learning the basics about real estate, they usually don't teach you how to sell houses. It is only by watching seasoned agents work their magic that you learn the ropes. So if you want your new agents to hit the ground running, make sure you teach them how to generate leads, follow up, and close deals.
- Follow Up with Potential Clients
Did you know that 90% of your business comes from following up with potential clients? Although it may take several follow-up contacts with potential leads before they're ready to buy or sell a house, staying in touch is crucial. You'll be top of mind when they're ready to make a move by keeping them updated on what's happening in the market. While most agents give up after their fourth contact, you need to be persistent if you want to succeed in a down market. So while other agents drop off, your continuous effort will allow you to increase your chance of scoring business within the same clientele.
- Use Technology to Help You Work Smarter
Although many real estate agents have spreadsheets to help them keep track of their business goals, profits, and expenses, this system can quickly become outdated and difficult to manage. With the introduction of management systems, such as ClarityNOW, you can work smarter by using technology to provide you with real-time data and analytics. This will help you stay on top of your business goals and see market trends and your gap reports so that you can adjust your targets and strategies accordingly.
- Hire Assistants to Find Motivated Buyers and Sellers
One of the best ways to succeed in a down market is to have a team of motivated assistants working to find motivated buyers and sellers. Instead of asking each agent to find potential clients in a sea of thousands, the assistants can help narrow it down to a manageable list of 500 or 1,000. Your agents can focus on meeting and working with potential clients through customer-facing work.
- Create an Off-Market MLS
Another great way to thrive in a down market is to create an off-market MLS. An off-market MLS is a list of properties not currently listed on the open market. This list can be used by agents to market properties to their buyers without competing with other agents who may also be trying to sell the same property. Creating an off-market MLS can give all your agents a competitive advantage over other agents and help your company close more deals.
The real estate market may be down, but that doesn't mean there aren't still opportunities for agents. You can continue growing your business by working smarter with assistants and leveraging technology, making persistent follow-ups with potential clients, and focusing on motivated buyers and sellers. These are just a few ways to succeed in a changing market. If you are looking for more tips from the pros, be sure to check out our other blog posts and our ClarityNOW podcast series.