Mike Price – IDX Trainer
How will you approach your real estate market in this unprecedented time?
I have been doing a lot of research over the past few days to get a line on what the REAL impact of the global health crisis will be. In situations like this there isn’t a crystal ball, just uncertainty about what the future holds. But, as uncomfortable as uncertainty is, it doesn’t mean we are powerless. We can still focus on action that prepares us for the eventual return to regular life.
Most markets have been doing extremely well. The biggest problem has been low inventory at most price levels. Historically-low interest rates have created conditions that have been part of a healthy, thriving market. (I got that news directly from Captain Obvious.)
When the markets are hot and the multiple offers flowing, many agents start to neglect their marketing funnels and fail to establish meaningful follow up relationships with prior clients. I recall one stat that said that 80% of buyers and sellers were never contacted again by their agent after closing. (Sadly, the follow-up problem is an issue no matter what the state of the market). Some agents will eliminate important marketing processes and tools, usually with the excuse that they are just too busy or don’t want to spend money on something they perceive as not being either necessary or not having time for it.
In short, when the good times are rolling, many agents jettison the tools and practices that got them there and forget to nurture the people that will help them when the tide turns.
There’s a pretty good chance we’re headed for a financial downturn. (That’s another news bulletin from the Captain). Many of the talking head real estate economists that represent big box brokers and large associations are saying that the impact of a recession on real estate will be “moderate”. It would appear that a popular talking point will be to compare it to 2001 which was indeed moderate if stood up next to 2008. They also like to point out that 2008 was a result of the industry having “internal problems” as opposed to outside economic issues caused by things like those we are experiencing now. I am quite certain that you have some internal dialogue taking place right now, so if you feel the need, pause a bit before you read on. 🙂
That said, ignoring reality isn’t an option, neither is losing all hope. (We’ll get to that soon.)
Regional Impact Is Highly Likely
Whether or not it is moderate, it doesn’t take an economist to see that the impact will be felt in most markets but it’s clearly too soon to know to what level. If you’re in markets with economies that rely heavily on tourism and energy, there is no doubt that it will be challenging.
Mistakes we make from fear: jettisoning vital tools for long-term market resilience
No matter the industry, the smartest gals and guys in the room will tell you that regardless of market conditions, you keep your foot on the pedal and continue to invest in strengthening the most important components of your marketing plan (like your IDX website). Position yourself to increase market share. By maintaining a meaningful client follow-up system that connects (not a tickler system that just sends birthday and Christmas cards) you can hunker-down to weather whatever storm is coming and emerge on a major upswing that could position you to have some of your best years ever.
So, when things are slow, what do you do?
Re-read the previous paragraph. Doubling down puts you in a position to capitalize during a downturn. Some of your competition will be woefully unprepared. 2008 was a great example. A large number of agents disappeared from the industry roles, many never to return. The question is: which agent do you want to be in the coming months?
If you’re working from your home office right now, resist the temptation to react from a place of fear. Look ahead to where you want to be when this all shakes out. Spend your time making smart decisions about how to move yourself into that possibility, not wringing your hands. Take this time to create meaningful experiences for your leads and clients online, so that they can connect with you and learn to trust you without having to shake your hand. Write great and honest blog posts, Facebook posts, and emails, let people know you care. Create relationships, not automations. You’ve got some more time on your hands, use it wisely.
Our brand new Success Academy has a ton of free resources to help you get started.
Download our great guides to building a great website. Shore up your social media calendars. Create some killer hyper-local marketing content. Write a series of blog posts. Do some competitive analysis. Then wash your hands. Go out and grab some awesome photos and videos of points of interest in the neighborhoods you farm. Check on your elderly neighbors. Take a deep breath of some fresh air on a walk in nature.
It’s going to be ok.
Please let us know how we can continue to support you and your success in these strange times. We may not be able to tell you where you can find toilet paper, but we can do our level best to help you with your marketing plan , whether times are good or bad.
Here’s To Your Success