It’s no secret that times are tough in the real estate and mortgage industry right now. But hey, without the bad times, we couldn’t have the good times. We had an amazing two years, but unfortunately we’re seeing an inevitable downswing. The good news is, now is a great time to refocus, reassess, and refine aspects of your business so you can keep up with anything the market throws at you. Here are some of our top tips for staying afloat in a tough market.
1. Revisit your budget.
When money is flowing, we tend to lose track of what a normal budget might look like. We start getting used to spending more, our restrictions loosening as a false sense of security sets in. The time has come once again to start being more conservative with your spending. Here are some things to think about:
Is this a necessary expense for my business?
Am I seeing enough results to justify this expense?
Is this an expense that needs to be monitored or can I cut it right away?
Obviously if something is working for you and helping you bring more business in, it’s not something you need to get rid of. In fact, certain investments may be what is allowing you to hold the edge over your competition in a tough market. Additionally, there may be more areas in which you need to reallocate spending. For example, many agents downsized their marketing budget in ‘21-’22 because business was flowing with minimal effort due to the high demand. But now that the market has thinned out from almost every angle, it might be worth reinvesting in ways to get your name out there.
2. Reassess your marketing tactics.
Like we touched on above, where you’re allocating your marketing budget has become even more important. Take some time to really sit down and go over all of the marketing tactics you’re pouring your time and money into. If you can, figure out what your return on investment has been with each of these (or estimate it based on general results and observations) and figure out if there are things you can do to streamline your marketing plan.
3. Thin out and streamline processes.
Efficiency is key in this market. The goal is to do more with less. For example, examine your CRM systems: are your lead sources delivering? Are you able to consolidate any processes down to one, centralized software, platform, channel or whatever it may be?
You may also want to revisit things like your listing process. In a cutthroat market, every little detail counts.
4. Stay ahead of the competition.
Throughout history, those who come out on top are those who are able to pivot and adapt when the time calls. It may be tempting to get lazy when you’ve been in the business for many years, wrongly assuming that your experience will carry you. While hands on experience is important, the industry is always morphing and changing and you do not want to be the last to know about major shifts.
Take some time out of your mornings to brush up on the latest real estate news and trends. But don’t just get your news from anywhere. Certain news media outlets love to put out sensationalized articles and segments with attention-grabbing headlines that may or may not reflect what is actually going on. Make sure you always fact check your sources and do your research through reputable thought leaders in the industry such as the National Association of Realtors or Inman.
5. Build strategic partnerships and leverage relationships.
Great partners can help eliminate a lot of the stress of a tough market. Being able to trust the people who work alongside you at your job goes a long way in keeping you grounded and retaining an edge over the competition. For example, trading referral business with a reputable lender can be an excellent and reliable lead source.
The Derek Evans team does the due diligence for your buyers upfront, including income and employment review, so that there are no surprises once you’re under contract. We have a longstanding history of quick closes, reliable service, and client satisfaction. We’re also a purchase-first lender, meaning the majority of our business is with purchase transactions (as opposed to refinance) — in other words, we’re experts in what you need. Some other perks of working with us:
- Our team is available to assist you or your buyer 24/7.
- We follow up with your clients while they are shopping for a home.
- We send milestone updates to you and your clients once under contract.
- We have do-it-yourself co-marketing materials.
- Easy and straightforward application process.
- Automations like followups and updates are triggered during the process.