The entire U.S. is talking about a recession. It will hit every industry out there, and it will definitely impact how consumers buy and sell real estate. So my team sat down and devised eight power rules for real estate agents during a recession.
Use these rules to guide your business so you can take market share, take advantage of the land grab, and not be one of the 648,000 agents who have yet to sell a home in 2022.
Power Rule 1: Motivation Matters
You must be working with folks that are motivated to transact. If you set an appointment with a buyer searching for the perfect home, or a seller expecting a sky-high price, you might be wasting your time. And in this market, time is at a premium.
Highly motivated buyers and sellers are ready to transact. They are aware of the economic conditions and are serious about moving. There will always be people out there that move no matter what the market conditions are.
Your job is to find them.
Power Rule 2: List to Last
Buyers are going to be looking at more homes right now. They will check out 10, 15, maybe even 20 homes instead of writing an offer on the second property they see. And that can take up time—again, time is a finite asset.
So if you’re not listing homes consistently, you need to work on your skills and get better at listing properties.
Because the more homes you list, the more the market you control. You’ll be able to take control of your schedule and time, get more inbound inquiries, and leverage your position as the real estate agent who sold the most recent homes in the neighborhood.
In order to list more homes, you need to over-index these skills:
- listing presentation
- appointment setting ability with sellers
- making price adjustment phone calls
- managing listings
- objection handling
- getting people to sign contracts with you
These skills have gotten lost because most people just fell into business in the past 24 months. This will be a time when skills will shine through and enable you to get more listings.
Power Rule 3: Trust the process and follow up
Most agents don’t follow up—we all know this. They also don’t prepare appropriately for their appointments.
Following up and trusting the process are critical. You need to ask for the appointment seven or eight times before seeing conversion. And if you don’t get a signature at the appointment, follow up again. Send a video and call the next day. Be sure you pick up the phone and call them instead of texting and emailing—you don’t want to come across as a lazy agent.
Your pre-and-post appointment processes are critical and should be clearly spelled out. There’s no room to let a prospect slide through the cracks with a clear process. You will be following up constantly and getting people the information they need.
Follow-up is where all the money—especially when homes aren’t selling for $100,000 above the asking price in a day.
Power Rule 4: The bigger the pool, the bigger the business
You probably don’t have enough clients right now to achieve your goals.
This goes for any agent out there. Over the past few years, many agents worked with five hot buyers at a time. That was all they could handle because they were going out and showing homes constantly.
That market is no longer here. We are seeing price adjustments. We’re seeing buyers look at more homes, and we’re seeing days on market increase.
As a result, you need a bigger pool of people to increase your odds of hitting your monthly sales numbers. Not all of these people will be ready to transact immediately. It’s going to take time, and you must follow up with everyone (back to Power Rule 3).
Remember, whoever talks to the most people, will go on the most appointments, write the most offers, and sell the most houses. It’s that simple.
Power Rule 5: Plan the day, Plan the week, Win the month, Win the year
Most people spend 45 to 50 minutes getting ready to work before they actually start working. And they lost all that productivity time. An ideal day is time blocked out in your calendar.
The easiest way to time block an ideal day is to prospect and set appointments in the morning—don’t let anything get in the way of that. Then run the appointments in the afternoon.
Have a Sunday CEO session every week where you plan out each day. Of course, there will be other things you need to fit in—trainings with your team or a coffee meeting with an estate attorney. But when you plan out your week, and follow that plan, you won’t let prospecting and follow-up fall by the wayside.
That’s how you build a scalable and repeatable business so you can win the month and, eventually, the year.
Power Rule 6: Proactive is greater than reactive
The agent who waits for the phone to ring or for the ideal lead to appear will go out of business.
Agents who are proactive and call all their leads, (calling, not texting and emailing) are the agents who are going to win. So, pick up the phone daily, and call expired listings, for sale by owners, your sphere, and neighbors of your most recent sale.
Proactively taking action always beats reacting.
Power Rule 7: Drive productivity and profits
It’s really easy to get busy in this business and not be productive. You can work hard and stay busy but not be productive.
Productivity involves tying your goals to math. When you are driving productivity, your goals are income-producing goals. All your productivity should be around income-producing activities, which drive profits for your business.
The four most productive things to do as an agent are:
- Making contacts
- Setting appointments
- Going on appointments (and converting at them)
- Writing and negotiating contracts
Focus on these things and watch your business scale.
Power Rule 8: Keep everyone moving forward
When your clients lose out, or something goes wrong, you must keep everyone moving forward.
We are going to run into a lot of losses. This super hot market is over. And it is your personal responsibility to keep folks pushing harder and keep yourself moving ahead. Stay in a state of motion and continue to move forward. Whether you need to nudge yourself, your clients, or your staff—it doesn’t matter. Moving forward is what counts.
Lastly, you’ve got to use positive self-talk, knowing that you have goals in place that you’re going to hit. When you take a loss, it’s just one step closer to a yes, to a win. That’s going to keep you moving forward.
Follow these eight rules as we enter the second half of 2022 in this new market shift, and you’re going to win. Plain and simple.