When the housing market changes, agents must adjust their strategies to take advantage of new opportunities and serve evolving client needs. Homesellers seem to need reassurance as we enter an era of significant market shifts fueled by changing inventory and fluctuating interest rates.
According to a study by my brokerage, Clever Real Estate, approximately 88 percent of homeowners say they have fears about selling their home, with 85 percent worrying they’ll be pressured to accept a lowball offer and 46 percent afraid their home will sit on the market too long. Savvy agents note that today’s clients need comfort as much as expert advice.
The thing about a shifting market is that while it can feel uncomfortable, it can also be a time of great opportunity for agents who can adapt quickly. Let’s explore some of the best ways agents can flourish during market changes.
Work on your positioning
For clients who are reluctant to enter a changing market, putting more emphasis on what they stand to lose through inaction can help shift their thinking. For prospective buyers inclined to continue to rent rather than enter a high-priced market, agents should stress the costs of waiting.
Would-be buyers who decide to stay on the sidelines are missing out on building home equity, not to mention significant tax benefits. Once you crunch the numbers for them, many reluctant buyers will realize that getting into a home is more advantageous than they realized.
Agents should also explain to them that if interest rates drop, demand for homes will increase in equal proportion, causing prices to spike. As expensive as the market may feel today, it will become much pricier soon.
Double down on your local market
Agents know that national market dynamics don’t always apply to your local area. In the hottest national seller’s market, there are always pockets of low demand. In a national buyer’s market, there will always be markets where low inventory or other factors keep the market tilted in favor of sellers.
The point is that agents should closely monitor their local conditions and be ready to explain to clients what is happening in their neighborhood.
Local factors always have outsized effects on the housing market, such as upcoming transportation projects, unique seasonal changes, local elections or batches of new housing inventory. All can send consequential but distinct ripples through your area.
Monitor local news and happenings, talk to your fellow agents, and develop a detailed, localized market profile for your clients. Your expertise and experience are even more attractive to potential clients in an uncertain market.
Consider investors
When many buyers and sellers sit out the market, investors often swoop in to grab promising properties. Establishing relationships with some local investors can be a great way to keep business going during a market lull and open up a whole new industry segment for yourself.
Leave your comfort zone
A quiet market is the perfect time to look at what neighborhoods might be next and get in on the ground floor. Figuring out the next high-demand neighborhood is as much art as science, but there are a few things you can look for.
Areas undergoing notable demographic shifts (like becoming younger or more affluent) or attracting more families or professionals are often primed to appreciate. You should also look for big-picture changes like private investment (significant office buildings or shopping centers opening up), public amenities like new transportation projects or recreation centers, or government incentives like rezoning or tax credit programs.
Once you’ve identified an area on the rise, ensure you’re marketing to the relevant demographics. Do your research and micro-target your message to reach the appropriate clients.
Telegraph your expertise and accomplishment
In a shifting economic landscape, potential buyers and sellers may need an extra nudge to enter the market, especially when developments, like the recent $418 million National Association of Realtors settlement, have shaken up the commission system in ways they may not fully understand yet.
A good way to attract these clients is to position yourself as a local expert. A robust content marketing operation, including regular email newsletters, a blog and social media, can establish you as a reassuring and knowledgeable expert and an agent they can trust. The key here is specificity; clients will most appreciate localized, up-to-date market insights into what’s happening where they live.
Reinvest in yourself
If you find yourself with more time on your hands, this can be an excellent opportunity to level up as an agent. Expand your knowledge base by earning specialized certifications and entering new industry segments.
You could also take your business to the next level by integrating AI tech, like automated customer service chatbots, advanced analytics, virtual staging and document management into your operations.
Many agents are also introducing virtual reality and augmented reality home tours, which can be a big selling point for younger, tech-savvy clients.
Step up your outreach
In a slower market, referrals and walk-ins may not generate enough leads anymore. Revisit your marketing plan to see if there’s a way to reach more potential clients. This could mean increasing your ad spending or widening the audience for those ads.
Reevaluate your lead generation, from direct mailers to calls to action in your social media posts and newsletters. How effective are they, and can you make them more effective? Look at channels you may have neglected; if you’re not running Facebook ads, that could be a profitable avenue to explore.
Make sure you’re correctly handling and nurturing the leads you gather. It sometimes takes a few months to develop a full lead, so make sure you have a steady stream of communications going out.
When you’ve identified an active lead, reach out to cultivate them. Personal touches can be very effective here; a phone call or handwritten letter is a great way to distinguish yourself from the other agents.
Luke Babich is the CEO of Clever Real Estate in St. Louis. Connect with him on Facebook or Twitter.
