How To Be Prepared for a Housing Market Shift
It's no secret that the housing market is ever-changing. What may be true today might not be tomorrow. As a successful real estate agent, it's essential to stay ahead of the curve and be prepared for potential housing market shifts that could occur in 2022.
Housing markets are constantly changing from year to year. To stay ahead of those changes and become prepared for 2022, real estate agents can prepare themselves for the possibility of a housing market shift in a few ways. Below, we're breaking down what you need to do to prepare yourself for pivots as a real estate agent to ensure your business is sustainable.
Review Past Market Shifts
It's not uncommon for real estate agents to go through multiple market shifts throughout their careers. If you haven't experienced this already, you will at some point. You can benefit yourself by reviewing what has happened in housing markets throughout the last few decades.
By looking back at housing market shifts that have occurred recently, real estate agents can establish a benchmark for housing price increases or decreases. Quite possibly, there were changes that could have been made if another housing market shift had occurred. This information may help individuals to prepare themselves for 2022 housing market trends ahead of time.
Now that you understand what a real estate listing presentation is, let's dive into some listing presentation tips on how to create a seller presentation that wins you more contracts.
Learn About Financial Markets
Another important thing that real estate agents should do is learn about financial markets and how they affect housing markets. Being knowledgeable about what goes on with these markets will allow real estate agents to understand housing markets more thoroughly and encourage better communication with their clients.
The housing market is greatly affected by the financial market. If real estate agents stay on top of the housing and financial news, they can be prepared for housing shifts that could occur in 2022. Overall, it's crucial to learn as much as you can about how the financial market affects the real estate industry so that you are properly prepared for a housing shift if one occurs.
Don’t be afraid of asking for help here and contacting a financial advisor who can offer professional advice if this area is new to you. Having trustworthy experts in your network will allow you to stay on top of the changing market.
Conquering Challenges in a Housing Market Shift
At this point, there is no telling what future housing market trends will look like or what kind of challenges those trends may bring. It's important for real estate agents to have strategies in place to handle these possible challenges that could arise from a housing market shift in 2022.
Real estate agents may have to provide better services to clients as well as spend a little more time and money on housing transactions. Even though these challenges might not be desirable, they can be conquered if real estate agents have the right mindset going into this housing market shift. Here are some ways that real estate agents can conquer the challenges that may present themselves during a shifting real estate market.
Watch Your Monthly Spending and Create Financial Goals
COVID-19 has affected many people's income and cash flow, which has caused a trickle-down effect across the board. Set aside time 1-2 times per week to review your spending and determine if you need to make cuts anywhere, as well as understanding how your marketing investments impact your success.
It's also essential that real estate agents establish solid financial goals to keep their spending under control. Being prepared and staying financially literate is the best way to handle housing market shifts that could occur in 2022.
Return on Investments
Consider how the investments you've made serve your needs. Consider how they help you fulfill your objectives. Think about whether there are any expenses that you'll have to eliminate when making a financial plan. The question you need to be able to answer for yourself is, "what will my financials look like in the next quarter if things don't change?"
Just like reviewing your own financials weekly, successful agents understand the expenses of their business and their corresponding impact. If particular marketing channels are not affording you the referrals, testimonials, or reach you desired, be sure to reevaluate. Continuing to invest your hard-earned money into business strategies that do not deliver is a result in not understanding your ROI.
What Tools Can be Combined
Oftentimes, as real estate agents, we tend to purchase similar products because each one has a feature we love that the other doesn't. Make a list of all the tools you're using to review which ones can be combined to cut down on spending. Technology is always advancing and allows you to stay competitive and efficient.
Stay Up-to-Date on Local Trends
To be prepared for any housing market shift, it's crucial to stay up-to-date on your local market, not just the national news. Whether you work with buyers, sellers, or both, real estate agents must have a clear understanding of the demographics of consumers moving into their areas of service and how the available inventory is affecting the local market. Spend time every day reviewing the available inventory in your area and how long homes in different areas are staying on the market.
In addition to staying current on the housing inventory, top real estate agents also spend time reviewing changes coming to the community. Make sure you're setting aside time to review changes to city ordinances, what businesses are moving into the area, and other relevant city news.
Don't Cut Back on Marketing Efforts
Don't cut back on the services you provide to your clients. You'll still need professional photos, and you’ll have to cover the cost of necessary staging for a property. By continuing to care for your clients, you'll be able to provide a higher level of service and have a better chance of being referred to your client's friends and family.
You also don't want to cut back on your market efforts that affect your lead generation. While you may have to shift how some of the efforts are put out, your business cannot survive without a steady supply of leads. As the market changes, you will want to review your campaigns and messaging to ensure it stays relevant.
Consider How You Interact With and Produce Leads
Whether it's because of changes in technology or the pandemic, the way we generate leads is constantly evolving. It's critical to keep in touch with clients and inquire how they're doing. As marketing shifts, your network will likely have questions or issues that you can assist with. It's also a good idea to get in touch with past customers and referrals.
HWorking through the pandemic has provided its own set of obstacles for real estate agents to overcome. From doing housing tours through FaceTime to signing closing documents in vehicles to remain socially distant from each other, real estate agents have been forced to get more creative over the past few years.
Learning What You Can From Others
Even though it's important for real estate agents to develop strategies of their own, it can be beneficial to learn from what has worked for other agents in the past as well. You can ask veteran agents who have experienced housing market shifts themselves to share their knowledge about how they navigated housing market shifts in the past and what they learned during these shifts so you are better prepared when the next shift takes place.
Keeping yourself in the loop with housing trends and learning from knowledgeable people will serve you well if a housing shift occurs in 2022 or beyond.
Bottom Line
Housing markets are constantly evolving, so it's vital that real estate agents are prepared to overcome the challenges presented. One thing to always remember is that no one thing has complete control over the housing market trends, and there's no exact formula for knowing what will happen from year to year. That's why as a Realtor®, you should stay alert to the changes that are happening in housing markets and work through the possible challenges that may arise.
