The market is undeniably shifting throughout the country. As such, brokerage, team and agent leaders need to apply different approaches to guide their businesses successfully in an environment with new challenges, characteristics and opportunities.
Given the shifting market, I consulted with the T3 Sixty brokerage leadership team to provide some tips and suggestions for adapting well at this time. (I also shared these insights in a Twitter thread, if you want to comment and share there.)
Our team came up with twelve tips and approaches real estate leaders should apply amidst this shift. They are:
- Get creative in closing transactions
- Set price expectations with sellers
- Price listings right
- Get pricing feedback quickly
- Carefully manage cashflow
- Negotiate regular expenses
- Look for opportunities
- Refocus lead generation and advertising
- Spend more time with less-experienced agents
- Protect against “secret agents’
- Some of your top agents could use a break
- Don’t panic
Get creative in closing transactions
Show your agents how to use rate buy downs and seller concessions to keep deals.
Set price expectations with sellers
The market has changed, and most sellers aren't "in it" as much as your agents. Show your agents how to generate reports for list/sell, comparable sales and on market competition "now," and to set pricing expectations.
Price listings right
Coach agents on how to take price reductions, including how to use updated market comparables, showing activity and inquiries, and coop feedback to help sellers understand the current market.
Get pricing feedback quickly
Get price and condition feedback quickly: Use "unsold listings" broker caravan to get feedback. Have agents from your office tour all your unsold listings and give price and condition feedback. Use this to support any needed price reductions or repositioning.
Carefully manage cashflow
"Red light" on new expenses, opportunistic or unplanned hires, and capital investments that can be delayed. If you can wait on something, take a beat. Kudos to Gary Keller for teaching this to so many years ago.
Negotiate regular expenses
Review software, advertising and other contracts and leases and look for renewal dates and terms - be ready to negotiate these if cash flow gets tight.
Look for opportunities
There are always opportunities in a market slowdown; you may be able to acquire, fold in, tuck in, or recruit another business during this time.
Refocus lead generation and advertising
With inventory growing and able buyers become harder to come by, you may want to refocus to find an even mix of able and ready buyers and homeowners that need to sell.
Spend more time with less-experienced agents
Spend more time with less-experienced agents: If you have agents that have only worked in one type of economy in their career, now's the time to spend more time with them and see how you can help.
Protect against “secret agents”
Don't let your sales team become "secret agents". Now it the time for agents to stay visible and let their people know that the sky is not falling, and that sales are still happening. Promote open houses, new listings and sales vigorously
Some of your top agents could use a break
Very few people take enough time off in this business, and some of your busiest agents have been slugging it out in a high velocity market the last two years. Now could be a good time to coach them to take a well-earned vacation from the hustle while the market cools. They’ll come back refreshed and ready to get back at it.
Markets shift all the time, and the key is to respond and be proactive. Talk to your network, reach out to your agents, and be present.
Real estate leaders can find success, uncover new opportunities and even get stronger in a more “challenging” market, with smart, careful adjustments and business discipline. So, as the market shifts, leverage some of these tips and others to sharpen and grow. If you need a trusted sounding board or partner, T3 Sixty is here for you.