How Prepared Agents Thrive in a Real Estate Market Downturn
Stronger on the Other Side - How to Thrive in the Real Estate Downturn
Recently, Brett Jennings of Real Estate Experts, Vikki Bartholomae of Side Real Estate, and Deanna Whipp of Stroyke Properties came together at the California Association of Realtors' Reimagine conference to discuss how the real estate market is changing and how market shifts and trends are impacting your business today. They shared some actionable advice about how to boost your marketing performance and accelerate your business in a changing market.
Set Yourself Apart From Other Realtors
20% of California real estate agents do not expect to be in business in 2021. That’s a sobering number, which shows how vital it is to be aware of ways to differentiate yourself from the competition. 40% of agents left the business in the last correction, so seize your market share now to stay ahead of the game. An increase in per-agent productivity is actually common in market shifts!
A market shift is actually a great time for agents to shine. Buyers and sellers alike are looking for an agent they can trust. With such rapid growth in the technology sector, connect with clients as individuals by showing them that you’re not an AI program. When buyers tell you they’re waiting, they’re waiting for YOU!
One way to stand above is to let your numbers tell the story. Create a visual that compares your numbers to the local or national average. These could be median home price point, median sale to list ratio, number of days on market, transaction numbers, or anything else that shows off your skills and savvy to separate yourself from the others.
Another skill to set you apart would be getting certified in negotiation. Consumer fee negotiation continues to be a huge value point and is well worth your time. You should master the market of the moment and find ways to multiply your skills.
Five steps to stay ahead during a real estate downturn
There are five clear steps to thrive through the market shift and manage the new competitive landscape. Brett Jennings shares how he gained market share during the last downturn at www.sideinc.com/talks.
- Get lean - Cancel any recurring subscriptions that you don’t use. Shift fixed expenses to be more incremental. For example, you could replace a full-time assistant with hourly or transactional service providers.
- 2X lead gen - Track your leads, know your ROI, and double down on the top three to four sources. Cancel everything else.
- 3X conversion - To increase conversions, create urgency with more hustle and more frequent touch points. The general standard is two hours of prospecting per day, and work on Saturday if you haven’t kept up during the week.
- 4x training - If you want to get paid like a pro, train like a pro. What do you think is the ratio of practice hours versus game time for athletes? Many times it is hundreds of hours for minutes of play. Script out various responses and role play so that you are prepared when the time comes. Practice doesn’t make perfect. Perfect practice makes perfect.
- Be visible - Stay in your clients’ inboxes, phone messages, and mailbox. Set up property alerts for them and follow up regularly.
Show your value through your realty marketing
In today’s society, it is imperative to build and execute a tactical marketing plan to dominate the changing real estate market. Side takes agents and helps them own their brand and own their business. They believe that local agents make real estate, not national brands. People trust individual people more than they trust corporations.
It’s more important than ever to articulate your value. Ask yourself “What’s my core? Who am I? What am I putting out there?” Take the time to ensure the quality of your branding and message to develop trust with your clients.
Picture yourself as a storefront. You’re on Main Street and competing with four other stores. What color is your door? What’s in your display window? Are you hanging a 40% off banner? All of these pieces are important parts of your complete branding package and what sells your value to your clients.
With regards to your messaging, speak to your clients’ pain points. Question your material and drill deeper to communicate your value in a way that serves your clients. For example, for sellers who want the most money in the least amount of time and hassle, catch their eye with “Proven track record selling homes faster and for more than the competition.”
Some branding tips to consider:
- Tell YOUR story. Your brand should not sound like a discount or mass brokerage.
- Sell the idea of “you get what you pay for”. What makes you stand out?
- Use visuals to show the significant differences in service and results.
- Visually articulating your value with 1 image is better than a 4-page brochure.
- Does your Instagram grid shout your value prop?
Staying flexible and organized through the market shift while focusing on what works will ensure that you come out the other side even stronger. It is important to work harder and use the shift as an accelerant. Trim the fat, double down on what’s working and let go of some of your efforts on the others. To learn more about how to keep yourself organized during the downturn, visit our overview page. We help agents and teams stay disciplined and execute against their plan. And remember, success is not a straight line up and growth through a downturn is possible!