The current economy is on uncertain footing. On the one hand, there are signs of a weakening economy as the gross domestic product (GDP) has declined for two consecutive quarters. The Mortgage Bankers Association estimates a 50% chance that the U.S. economy will enter a mild recession over the next 12 months. But on the other hand, job growth, wages, and the housing market remain strong. In fact, home prices have continued to surge in many markets across the country. This article will discuss how you can stay ahead of the curve and create success in the changing real estate market.
How Is the Current Real Estate Market Changing?
The U.S. real estate market has been booming for the past few years. But this could soon end as the economy weakens and mortgage rates rise. This put a damper on sales in the coming months as some buyers may no longer be able to afford their dream homes.
Change in Customer Market
The current real estate market is also changing regarding who is buying homes. The millennials (those aged 22 to 37 in 2018) now make up 43% of homebuyers, overtaking baby boomers (aged 54 to 72). And this trend looks set to continue as more millennials enter the housing market. Unlike the baby boomers, the millennials have access to many more resources and technologies that make buying a home easier. They are also more likely to use the internet and social media to research their options and connect with real estate professionals.
Mistakes Agents and Real Estate Business Owners Make
Anyone in the real estate industry knows it's a tough, ever-changing business. What worked last year may not work this year, and what works in one market may not work in another. That's why it's important to be aware of the potential mistakes you could make in your efforts and how to avoid them. Here are the five biggest real estate marketing mistakes and how to stay ahead of the curve.
1. Thinking That the Market Won't Change
If you think that the market will get better when people return from their vacation or when the weather cools down, you're fooling yourself. The market is changing daily, and you will get left behind if you're not adapting to the latest changes.
2. Focusing on One Area and Not Diversifying Your Services
Diversification is critical in any business, but it's especially important in real estate. You can reach a broader range of potential clients by offering various services and meeting their needs.
3. Ignoring Onboard Training of your Hired Agents
You may have the best team of agents in the world, but if they're not adequately trained, they will not be able to help your business succeed. Make sure you invest in onboard training for all new hires so that they can hit the ground running and start contributing to your bottom line.
4. Poor Customer Service
One of the essential soft skills in real estate to have is excellent listening skills. Your clients are likely making one of the most significant purchases of their lives, and it is your job to truly listen to their needs and help them find the best possible solution. If you're not providing excellent customer service, you'll lose clients to someone who does.
5. Not Being Proactive
The best way to stay ahead of the curve in real estate is to be proactive rather than reactive—in other words, don't wait for things to happen; make them happen. If your strategy is not working, fix it before it becomes a bigger problem blocking your success.
Simple Strategies to Succeed in the Current Real Estate Market
As someone in the real estate industry, you may feel the effects of the current market. The business has slowed down for many of us, and it can be tough to stay afloat, let alone succeed. However, there are still opportunities out there for those who are willing to adapt and work hard. Here are four simple strategies that will help you succeed.
- Slow Down and Analyze Your Problems
If your business is going through a tough time, take a step back and analyze the situation. What is causing the problem? Is it the market, location, price, or something else? Once you know the problem, you can start looking for solutions.
- Invest in Teaching and Training Your Hired Employees
When you have good employees, never stop investing in them. Without proper onboard training and ongoing education, your staff will not be able to provide the best possible service to your clients. In the worst-case scenario, they become the problem that blocks your business from thriving.
- Simplify Your Daily Routine with CRM Technology Tools
The mornings are the golden hours of lead generations and finding listings. You should maximize this time by using a customer relationship management (CRM) system to automate and keep track of your tasks. This way, you can make the most of your day and increase productivity.
- Persevere through Boredom and Repetitive Tasks
Making calls to connect with clients and finding listings is the #1 task that keeps bringing in business and income. Over time, you may get bored with this task. But it is vital to persevere. If you have difficulty focusing, a way to stay on track is to set daily or weekly tangible goals and make yourself accountable to someone, such as your coach, peers, or even your family members.
The current real estate market is tough, but there are still opportunities for those willing to work hard and keep learning. If you want more advice on succeeding, keep checking on our ClarityNOW podcast series. In every episode, we interview the top-producing agents, real estate business CEOs, and rainmakers from around the country to discuss their success strategies, past failures, and what they are doing to stay ahead of the curve. Their stories will inspire you to stay positive and fast-track your way to success. ClarityNOW can also help you streamline your business, get out of cumbersome spreadsheets, and help you to become a better business owner.