Brrrr… agents how many of you felt that chill in the market? Winter is coming! Rates are now approaching 7.5%. In my local market, I’ve already seen more listings sit longer than one week. I’ve noticed more properties that went under contract return back to the market. I’ve seen more listing agents cite buyer’s failure to secure financing. Even a few of my own buyers have stopped their home search blaming rates as a concern. Rates have got them spooked.
If you recall, last year the 4th quarter was also very tough. Rates jumped from 5% all the way to 7% at the end of 2022. It was a really rapid increase over a short span of 3 months! It felt like someone had literally turned off the faucet on the market. Homes that would have sold easily in the first weekend, were now sitting for weeks and months. Prices were being slashed until they were low enough that buyers would purchase.
This fall and winter is predicted to be even worse as rates are already approaching 7.5% at the time of this writing. And it looks like rates are going to keep climbing throughout the rest of this year and into early next year. This means it’s going to be a painful last quarter.
How will agents fare? Well, NAR said in 2023 that 30% of agents will be out of the business. 60% of the agents will do the bare minimum to survive. 10% of the agents will own the markets they are in. Where do you want to be?
Don’t wish it was easy, wish you were better. If you want to thrive in this shifting market you will need to adjust and improve your skills. What does that mean? Here are some things you can work on immediately.
- Improve your skills, especially communication. Effective communication with your clients and other professionals is of the utmost importance. If you cannot communicate effectively your business will struggle. As an agent, you need to set expectations for your clients and represent your client’s interests to others. Consider investing in your business, taking sales and communication courses, or hiring a coach. Take the DISC behavior test. In order to effectively communicate with others, you must first understand how you best communicate vs. how others communicate. You must know how to adjust your communication style to fit the DISC profile of others.
- Marketing, now more than ever you will need to be able to build your brand and generate leads for your business. As the market shifts, it’s going to get more challenging to find clients who are motivated to make a real estate move. In order to succeed during these tough times, it will be a numbers game. The more conversations you have, the more leads you will find to keep your funnel full and have the opportunity to work. If you’ve been implementing strategies that have not worked to generate leads, then perhaps it’s time you shift gears and try something new. Sometimes you need to do the strategies that you have been avoiding the most. Such as video content marketing or cold calling. It’s time to eat that frog and do the uncomfortable to achieve the results you want.
- Revisit your past clients. It’s as simple as an email, text, or a phone call. During difficult times, people who trust you look to you as that source of knowledge. It doesn’t have to be a sales call. Just call them and find out what they’ve been up to. Are there any new changes in their work or life? They know what you do already. Naturally, the conversation will shift to real estate. Answer any questions they might have or educate them during this economic shift in the market.
- Collaboration! Stay connected with your network of real estate professionals such as other agents, loan officers, insurance agents, and contractors. Every real estate professional will feel the pain in a tough market. When you are able to stay in touch with others in different professions, you will learn from each other and be able to help one another. All you need is one new idea, one new perspective. If you can help each other to survive and thrive, you will build invaluable relationships that will continue to give you future business.
- Find your tribe. Whether it’s your broker, agents at your brokerage, or agents at other brokerages. Surround yourself with others who are not only surviving but thriving. Success leaves clues. It is also contagious, by being part of a group of rockstar agents and a community of agents who support you. It will push you to take action and step your performance up. You don’t need to feel like you’re on an island, ask for help.
- Riches are in the niches. During times of market shifts, sometimes you need to shift your strategy and specialize in a niche. Customers will shift with the market so you will need to know which customers you need to focus on in these cycles. When rates are high or the market is unfavorable retail buyers will scatter. And when a crisis occurs, it’s the investors that are looking for opportunities. Consider learning how to work with investors. Other things you can learn are commercial real estate, relocation expert, property management, or tenant representation.
- Business Management. What gets measured is what gets done. You must start keeping track of your daily activities. And by this, I don’t mean track your amount of leads generated or sales. Stop tracking the lagging indicators, start tracking the leading indicators, How many emails, how many phone calls, how many posts, and how many videos have you made?
- Mindset. It is never the market that you need to overcome, you need to overcome YOU! I’ve given you 7 strategies to implement. If you’ve read this entire blog but don’t end up putting a single one of these strategies to work. Then the information is completely useless. You must be intentional and purposeful about your business. Consistent work and discipline are the most important. If you aren’t doing the work that you’re supposed to, don’t be mad about the lack of results that you didn’t achieve.
Following these steps will help you get through the tough real estate times that are coming ahead. Not only will you make it through the storm, but you will come out stronger and better. You don’t need more strategies, you need to get to work! If you need more help join my private FB group that helps agents take their business to the next level, ElevAgents!