How to Succeed as a Real Estate Agent Economic Uncertainty
Going through uncertain times is nothing new for most real estate agents. You are working on 100% commission terms, trying to succeed in an 'eat what you kill' industry.
However, things can be very different during economic downturns and times of uncertainty. With most agents already burning out of the business within the first year, adding a looming recession can be the "icing on the cake."
The last time we faced uncertain times like this was only two years ago, right at the beginning of the pandemic. Real estate volumes went to a halt, with the sales volumes in both residential and commercial real estate hitting record lows.
People were afraid to see each other in person, let alone establish relationships and conduct business with new faces.
However, those that stuck through the uncertain times have broken the glass ceiling, with many agents around us hitting record years.
Luckily, we have some insights as to what agents should do in order to weather this type of storm.
1. Focus on your clients
Compile your efforts into providing your clients with value - while this may sound cliché, it's not to be overlooked.
Your clients are facing uncertain times just like yourself, and they expect you, the expert in your industry, to be able to guide them through uncertain times.
Are you able to provide your clients with valuable information? - do you have accurate market data on what's happening around their property? Are you able to provide your client with information on what other investors are thinking of doing?
As a real estate agent, whether you are commercial or residential, you are the one that's talking to investors and developers day-in and day-out. Your clients will appreciate your ability to provide them with the overarching picture as to what others in the same position as him are doing.
2. Touch base consistently
Sure, there's economic uncertainty, and your clients might not be looking to make any moves for the next few months or even years. However, you need to consistently touch base with your customers. It's a relationship business, and relationships are built off time and energy.
Set up continuous reminders to reach out every 60 to 90 days. This doesn't always have to be a phone call or an in-person meeting. You can send also send post cards or magazines to keep your name at the top of their heads.
3. The 80/20 Rule
This refers to the Pareto principle, stating that for many outcomes, roughly 80% of consequences come from 20% of causes. This is an essential theory practiced in business.
Another way to describe this is that 80% of your results will come from only 20% of your work. Re-evaluate what your day-to-day consists of. Which daily or weekly tasks are you doing that's bringing you the most business and results?
Once you've broken that down, you are now able to see which 20% of your activities is what's bringing you 80% of your success. Focus on these tasks and focus on improving them.
During times of crisis, people look to those who are experts in the field. They expect experts to know what's going on in their industry, and to advise them on how to proceed. While this isn't easy, this is your responsiblity to lead your clients to both financial and emotional safety.
While we don't know what's going to happen with the housing market in the next few moths, we can start preparing and acknowledging this uncertainty, and be the early ones to take action.