Welcome to 2020! This year is expected to have the biggest shortage of housing inventory in U.S. history. According to the 2020 National Housing Forecast from Realtor.com, the national housing shortage will continue in the New Year, possibly reaching “a historically low level.” Currently, only one out of every 10 markets is seeing inventory growth. That’s down from the start of 2019, when two out of every three markets were growing, according to Forbes.com.
Some may see a record-breaking housing shortage as a crisis for their business, but savvy REALTORS® know that economic changes like this are what separates the wheat from the chaff. With this forecast in mind, make plans to overcome this crisis & rise in your market share while unprepared competitors struggle. Book your Double My Business Strategy Session today to find out virtual assistant services from MyOutDesk can help!
Top-performing Real Estate businesses that thrive when inventory is low known what they need to do. They have plans set in place and road maps on how to execute their plans. Following in their steps with a positive mindset can do wonders for you and your business.
Regardless of what the market looks like, don’t forget this key sales data:
- Companies with a well-defined sales process experience 33% more successful than those that don’t
- Companies that align sales and marketing achieve a 25% higher success rate
- Top performers are typically 250% better at qualifying leads, which means they spend more time being productive
- Successful sales organizations study the competition for ideas and strategies
- Sales teams that have a business plan achieve quota more often than those that don’t
This is the best time to be innovative and think outside the box. Sometimes, a little creativity is all you will need to ensure that you never lack in business.
Have a strong business plan. A common downfall for Real Estate agents during difficult shifts in the industry is that they do not have a strong business plan. They lack foresight and strategy, therefore, cannot cope. Real estate agents need a business plan. After all, you are an independent contractor. You have overhead expenses, sales, marketing, and operational costs, like any other business.
A well-made business plan will prepare you for ups and downs in the market and give you insights to help you make the best decisions in any given circumstance. When preparing your business plan, consider the following:
- Branding: Is my value proposition clear and consistently conveyed?
- Marketing: Am I investing in the right marketing strategy (digital, direct marketing, networking, etc.)? Am I targeting the right audience with the right message?
- Resources: What technology am I currently having success with? What tools could I be using to be more efficient, more productive?
- Knowledge: Is there additional education I need to make me more capable and effective?
- Support: Do I have a strong team to support my clients – (photographer, stager, mortgage broker, appraiser, etc.)?
- Budget: How should I allocate my finances? Can I reduce/eliminate any of my current expenses?
- Neighborhood turnover rate: Does my neighborhood have enough turnover to sustain my business?
- Competitors: Have I studied the top performers on my farm? What strategies/tools are the top agencies using to build success?
- Lead Generation: What is my strategy for building relationships on my farm and cultivating those contacts frequently?
- Sales: Do I have a daily/weekly/monthly target for cold calls? How many hours each week will I commit to lead generation?
Real Estate coach Tom Ferry discusses several listing sources for agents struggling in a low-inventory market. Here are a few of them:
- Past clients – are you cultivating the contacts in your database? How frequently do you communicate with previous contacts to drive referral business? You should contact them every quarter.
- Open houses – invite everyone relevant to your contact list, as well as everyone on your farm! Make it an event, not just a walk-through.
- Geographic farms with sustainable neighborhood turnover rate.
- Agent networks to drive referrals – Parkbench has a network of over 1000 agents across North America!
- Listing portals – Zillow, Trulia, Realtor.com where buyers/sellers search for homes
- Expired Listings – overpriced, under-marketed, poorly photographed
- Online seller lead generation – offer free home valuations (takes avg 18 months to convert) using Facebook Ads
- Real estate investors who own multiple properties may be seeking to offload some of those properties.
- Builders (New home construction, commercial, rental properties)
Fortunately, it’s not all bad news, forbes.com reports. Mortgage rates will likely remain low in 2020, with experts predicting rates below 4% across the year. Additionally, home prices will moderate. In some cities, they may even decline. (Realtor.com predicts a 4% decline in Kansas City and a 3.2% decline in Scranton, Pennsylvania.) Still, buyers will have to find a home first. And as the forecasts show, that’s not getting any easier.
More than ever, finding a cost-efficient way to have the support you need to get through this shifting market is so imperative. You need to make sure that you have a team that can roll with the punches and has your back no matter what happens. MyOutDesk offers solutions for your online staffing needs. Make sure you schedule your Double My Business Strategy Session today!