Predicting change in real estate is challenging, we often don’t know we are in a new cycle until it is upon us. One thing is certain: The pace of sales and the rate by which homes are increasing in price have slowed. The National Association of Realtors has reported declining sales for the past six months. While prices have risen for 79 months in a row, they are now inching up by single percentage points or even dropping in some markets.
Agents have enjoyed a long cycle of low inventory, multiple offers, low interest rates and a fast market. As the market slows in many areas, it’s an opportunity to dig deeper into the business, strengthen relationships with your client base and help both sellers and buyers navigate a changing world. While the first reaction may be to panic and cut back on expenses, a more proactive approach is to consider how you can grow your business in a down market. This is a chance to future-proof your business by developing a strategy that takes these changes into account.
1. Plan for longer campaigns: Advertising and marketing campaigns may need to run longer as homes remain on the market. It may make sense, as you build your marketing plans, to allocate more funds toward these efforts. As part of your listing presentation, you can share with your sellers what your plan is not just when the property launches, but as it progresses.
2. Advertise sold properties: When marketing is shifting, a lot of narratives surface that may not reflect reality. Potential sellers may feel like it’s not a good time to sell if they are reading national media stories. Sharing success stories is important. Target your local market and also share if a property sold over the asking price or within a short time period. A combination of print and online advertising is most effective.
3. Don’t be shy about price reductions: If homes are listed for longer, price reductions may be inevitable. A lower price is an opportunity to refresh a listing and reach more potential buyers. Consider changing the order of the pictures and choosing different images for your advertising campaigns.
4. Double down on your sphere: When markets are changing, people may be interested in moving or exploring other locales. Real estate investors may be preparing for the chance to buy properties that have suddenly become more affordable. Letting your clients know that you are available to help with all real estate needs, locally and elsewhere, is crucial.
When the real estate market is going through a change, many homeowners may wonder what is going to happen to the future value of their homes. It can be an excellent time to meet and have coffee and share an update on recent sales in the neighborhood.