Real estate agents know firsthand how difficult it is to grow your business in a recession market where potential clients seem to be few and far between. Luckily, real estate entrepreneur Gene Arant sat down with real estate coach Craig Zuber to discuss how to sell in a recession market successfully. Below are some of their key takeaways that you can implement to help you continue to grow your business even in the middle of a recession:
Adopt Effective Marketing Strategies
Competition in the current market is fierce, and if you want to succeed, you need to implement marketing strategies to help you gain an edge over your competitors. One of Gene's secret weapons: The Golden Letter.
Gene goes over how the Golden Letter approach has amplified his business success. This marketing strategy uses a specific type of Letter and envelope that stands out from other marketing pieces. The Letter is hand-addressed to sellers within a particular target area and is designed to look as if someone you know is sending you a personal letter.
Gene further explains the importance of understanding your target demographic and then coming up with an effective strategy to reach them. The "Golden Letter’s" personalized presentation compels the recipient to open the envelope. Then the actual letter is just as important. For example, letting the recipient know about a recent sale in their neighborhood and what opportunities await the prospect. A specific message gives that homeowner a reason to call Gene and his team.
The strategy is highly effective and Gene has confirmed that more customers open their Golden Letters compared to other marketing approaches. The approach has turned the tables on their marketing. Instead of endless hours doing outbound calls, now qualified prospects call them.
One remarkable fact about the Golden Letter campings is the ROI it generates. On average, the cost to send out a letter is about 90 cents apiece. By his calculations on actual tracked expense vs. return, an investment of $100K will yield a million dollars of GCI. Gene is getting an ROI of 10X in lead generation dollars spent. He can predictably count on this approach to business growth and can scale, knowing exactly what he will get in return.
The Golden Letter is only second to his referrals and repeat business, his #1 income generator. However, feeding his pipeline of current customers with the Golden Letter keeps growing his referral and repeat business for him. So it is truly a win-win all around.
Focus on Building Relationships
You must build solid relationships with your clients for any business to grow. In a recession market, this can be challenging since people are a bit more hesitant to seek or invest in a home.
Gene's strategy is to focus on providing excellent customer service. He ensures that his customers are well taken care of by providing them service with care and transparency. Gene believes these qualities help him develop a reputation as an honest and trusted agent who puts the customers first. This, in turn, will allow him to attract more customers and grow his business.
When dealing with customers in a recession market, it's important to manage everyone's expectations. When buyers start to feel that they're not getting the best deal possible, their interest in your property can quickly diminish.
Therefore it's essential to be upfront with buyers about what they can expect from their purchase. Gene suggests providing buyers with a detailed list of the features and benefits of the purchase and any potential issues or drawbacks. This will help keep expectations realistic, prevent buyers from feeling like they're being taken advantage of, and prevent misunderstandings.
The same thing applies to sellers. In today's market, it makes no sense to list a home in less than top condition and price it above other comparable properties. That's a thing of the past two or more years, but it's over now. Nobody will benefit from taking listings that sit on the market unsold and perhaps chasing the market if prices keep coming down.
Know When to Walk Away
In a recession market, it's important to be able to walk away from a deal if it isn't in everyone's best interest. Gene believes that, in some cases, it's better to walk away from a deal rather than to make a compromise on price or other terms of the transaction.
He believes that it's important to be honest with yourself and your clients about the potential of a deal and don't rush into something without considering the long-term consequences. This will help to ensure that your real estate business is profitable and successful in a recession market.
Adapt Your Strategies To The Market
Finally, it's important to be able to adapt your strategies to remain relevant to your customers. Gene believes that real estate agents should look for new ways to attract sellers, list homes and market their properties and adjust the strategies they're using to remain competitive.
Keep in mind that there is no one-size-fits-all approach when it comes to selling in a recession market. Utilizing the tactics outlined above, along with your experience and expertise, will help you develop an effective strategy tailored to your individual needs. With the right approach, selling in a recession market can be both profitable and rewarding.
Tune in to Craig Zuber's podcast as he interviews top real estate professionals to learn how to successfully sell property in a recession market. It will provide you with the necessary tools and strategies to remain competitive in a recession market.