Instead of making big changes to the real estate business, brokerage owner Gavin Payne recommends making small tweaks to navigate the changing market wisely.
Recently, I often hear the word “headwind”. The literal definition, the wind that is blowing toward you and slowing your forward movement, applies while flying or sailing. , often arriving late. Or you need more power to arrive on time.
in an economic sense, Headwinds come in the form of events or circumstances that slow or make it difficult for an economy to grow.In today’s real estate industry, there are rising mortgage rates, rising inflation, and declining housing starts.
The term headwind is usually negative. But if you, like me, have been through several real estate cycles, changing market conditions mean just that. they are changing. It doesn’t mean you have to be kind.
When faced with a barrage of sensational and fear-inducing data interpretations, many real estate professionals contemplate making major changes to overcome the headwinds. Brokers can decide to start paying prospects or close offices, while agents can invest in fancy new websites.
Rather than major changes, we recommend making smaller adjustments or adaptations as a way to navigate a changing market more effectively.
Do not add or subtract.reassignment
One of the changes we’ve all experienced in the last two years has been the shift to working remotely. Ten years ago, an agent coveted her office privately. Because there was no other way to do business effectively. Agents don’t need an office today as much as they used to.
We’ve noticed a decline in walk-in businesses as consumers become accustomed to buying online instead of in person. As a broker, one of the things I tweak is how he allocates fixed costs like office space and personnel.
In today’s new world of working from home and buying online, you can cut rent and redistribute those dollars to hire more support staff, such as agent personal assistants and transaction coordinators.
Similarly, an agency may decide to reallocate the cost of sending postcard mailers so that it can invest more in virtual tours.
double about what worked in the past
A period of high headwinds is not the right environment to change your overall business philosophy or strategic approach. Instead, focus on the tactics and specific activities that have brought you success in the past.
Considering headwinds can slow you down, you may need to invest more time in proven tactics that have historically helped you reach your goals. It works in the market too. What you have to change is your focus and effort.
obtain Leading the Conversation Before the News Cycle
Many media outlets focus on grabbing attention through sensational headlines and horror-based stories. Unfortunately, their goal is not always to provide information.
Many prospective customers may be intimidated by rising mortgage rates. Get them back in the game by sharing information about interest only loans.
Ultimately, we cannot control the market, but we must remember that we can control activity. Don’t get distracted. Focus on building relationships, serving clients, and taking leadership roles in your field.
The more consistency you have, the more stability you expect, which leads to credibility and trust. We simply have to stay on course and adapt to the times. People are always buying and selling homes and need a trusted advisor to guide them.
Gavin Payne is the broker-owner of Better Homes and Gardens Real Estate HAVEN properties located in San Luis Obispo, Morro Bay, Paso Robles and Santa Maria, CA. Connect with him on Facebook.