The Cyclical World of Real Estate Sales
By Judy LaDeur
The world of real estate is one of cycles. What goes up, must come down. We had enjoyed a strong real estate market for about five years, but will that bubble burst again this year, or next? No one knows and it’s impossible to predict what will happen, but you can be prepared.
Interest rates have increased and may increase again. Some say that rates will go as high as 6% by the end of the year. For those of us who have been around a while, we are smiling as we remember the days of 20% rates, and how we dreamed of a day when rates would fall below 10% again. It’s not really about how high the rates are or will be. It’s about how that information is delivered to the agents and how they perceive the market. After all, perception is reality. As the Broker, you are the captain of the ship. The person in charge of the information that is distributed, as well as how it is perceived. You are also responsible for the routing of the journey. As the captain of the ship, if you saw that there was a potential storm on the horizon, would you alter your course? Would you start to make plans and prepare? Of course, you would. A real estate office is no different. Regardless of what happens in the market, there are things on the horizon that you should be planning for today.
Things that you know will happen such as:
- Agents will have lots of closings in the next 30 days and they’ll be planning their summer holidays, meaning they might not work as hard the next few months. How will that affect your company revenue in September and October?
- Most agents start September with an empty pipeline of business, which makes it easier for them to change offices. That makes you vulnerable as a Broker but also creates opportunities as a Recruiter. What are you doing today to prevent your agents from leaving, and what are you doing to position yourself as the Broker agents think of when making a move at the end of summer?
When you look forward, you can be better prepared for whatever the market does. Here are a few tips to help navigate through any storms on the horizon.
- Schedule training for your agents, to begin September 1, designed to re-launch their business for a strong finish to 2018.
- Host some fun events, or contests, in the month of July to keep your agents focused on business, even in the summer months!
- Create marketing pieces for your agents to use to position themselves in front of their clients for those fall listings.
- Remind your agents that there is no better time to stay consistent with their Monday morning messages to their clients than the summer. Everyone is talking to and visiting friends and family. Stay top of mind for additional business opportunities.
- Don’t forget to send your Monday Morning Motivation Messages to your recruits each week. Summer is especially important for you, as the Broker, to stay positioned with potential recruits. September is one of the strongest recruiting times of the year.
And don’t forget, there are always changes and cycles in this business. You can change the size of the wave, but you can learn to surf!
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