This article was originally published in August 2022. This advice applies to any real estate market.
I've worked in real estate for 25 years and have seen many ups and downs, including the economic crisis of 2008. Experiences like that really change your perspective on the economic uncertainty we face.
We've been blessed with great business over the past few years, but we all knew that wouldn't last, so we need to always keep in mind the extraordinary circumstances that occurred from the spring of 2020 through the spring of 2022. Now is a time when our clients really need our support to stay informed and aware of what's going on in their local markets and what's affecting their property values and their ability to buy.
“Stay focused on facts, whether good or bad.”
It is important to read and educate yourself on local and national real estate news. Some clients may hear something about the national real estate market and assume it applies locally. However, at the local level, they may be in an entirely different market with a stronger local economy and areas with more wealth and income.
The only way to break out of the negative news cycle is to educate yourself, talk to other agents in the business, read the local news, look at the MLS to see what’s selling, and do your own analysis.
People who pay attention to what's going on move away from the “mob” mentality of “the sky might be falling” or how tough things are. If you stay focused on the facts, good or bad, you can at least speak intelligently in your customer conversations.
As real estate agents, we are responsible for our clients' greatest assets. When times are sluggish or the economy is going through a downturn, we carry a heavy burden, so we have to maintain a balance. I maintain that balance by being mindful and not shying away from or getting drawn into the negative news.
Slow down to make up for lost time
When things slowed down a bit in 2018 I decided it was time to spend some money and tweak some aspects of my program. I had the time and wanted to use it to make changes, but I knew it wouldn't last and I'd get busy again… as it always does!
I worked on my website, a new birthday program, cleaning up the database, cleaning up the office – all time-consuming tasks that you just don't have time to tackle when we're all working at breakneck speed like we have for the past two years.
“80% of my clients contact me when…”
Our new birthday program has been a phenomenal success with 80% of my clients saying thank you after receiving their gift. It's a fun and unique surprise that gets a great response, creates a connection with us, and makes my clients feel special and appreciated.
At this point, it's all about referrals and repeat business for me. I'm doubling down on that effort by treating these clients with extreme gratitude. I'm doing more home visits for retired clients who love to chat and catch up, giving Christmas gifts to their families, hosting a client appreciation night for families over the holidays this year, and hosting a happy hour night at a client's place who owns a winery. It's all about making it fun.
Taking advantage of opportunities
The new opportunities I found during the 2008 economic downturn, and every economic downturn since, were opportunities to be better than others. I don't mean to be critical, but fear sets in and people close their minds.
Our proactive and upfront approach to customers and other agents conveys the positive energy and confidence our customers deserve from us. Above all else, our customers come first.
We always say we make a lot of money, but sometimes we forget that. A good exercise is to record the number of hours you spend with a client, from the time you start the job until you finish it, and divide it by your salary to see how much you make per hour. There are times when you feel like you're losing money. We all have those experiences, but overall, the numbers are big… Let's put things into perspective.
Consistency is key
Success in real estate requires consistency. This is true of most things in life, so I can't claim this is a silver bullet. We all struggle with being consistent, oddly enough.
One way agents can maintain consistency during these times is by coming into the office regularly to interact with other agents. We're all used to working from home, but working in person with your colleagues gives you a connection to the business and industry, and allows you to learn more from other people's perspectives.
Whether it's a new program for clients or a daily routine at the office, if you can create a routine and stick to it, you'll be more likely to stick with it in the long run and weather the ups and downs.
Julie Scozzafave
Real Estate Broker, Windermere Real Estate/East, Inc.
scozzafave.com
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