As a real estate coach, I count it such an honor to have a “wizard of oz” moment with you. In other words, the nature of coaching requires agents and brokers to pull back the curtain and reveal the “magic” of their business operations.
As some of us begin to feel a financial squeeze in various parts of the nation, I am seeing something harmful to their continued business success.
This harmful habit is sticking with the same marketing strategy no matter what, and it may make the difference between thriving during a downturn or not.
Several agents have voiced their desire to stay the course and continue to exclusively market to attract new listings. That may not work as rates rise, contracts are being canceled, and days on market increase.
Whenever the market shifts, your marketing should shift!
This market shift is revealing that cash buyers are king and queen. Why? Because they are not beholden to interest rates rising. Who should also be on the short list, depending on where you located, is the re-introduction of international, cash buyers, picking up after a pandemic slowdown.
Also, becoming a wiz at connecting prospective homebuyers with down payment assistance may help to get buyers impacted by rising interest rates off the fence and in a new home. Did you know that 33% of declined loans reportedly would have likely closed with down payment support? Currently 84% of down payment assistance programs are funded making them a great opportunity as the market shifts away from a hot seller’s market.
As the “Fair Housing Equalizer” (a fun moniker my friends at Atlantic Bay Mortgage Group gave me as a national fair housing advocate and corporate trainer), I would be remiss to not explain how to shift your marketing as the market shifts all the while upholding fair housing.
Here’s another simple proverb: Describe your resources, not the people
That way we never turn anyone away. Everyone has a right to fair housing.
Thus, in our marketing, we can describe the resources that we have for cash buyers, whether international or local. We can describe the down payment support programs in our area that cater to teachers, first-responders, and the like.
Perhaps you have a specific designation or certification, promote it more. Additionally, you can and should share — on social media and in other marketing — your testimonies from satisfied and past clients who were helped by these specific resources. Be sure to name those resources.
By sharing your specific resources — this is your unique selling proposition — and how those resources have served well, you will attract more folks who need those specific resources.
Does all this mean we completely abandon listings? Of course not! But most of us have a finite marketing budget, so I encourage you to spend your limited time and dollars on those who stand to benefit the most from the changing market conditions.
We can and must adjust our marketing anytime a market adjustment happens. With each market shift, identify the local market changes and then speak to your resources that compliment this shift. This is almost like tailoring a resume to fit different jobs. It is not that you fib about your experience, resources or strengths on different resumes.
Instead, you just highlight what is most relevant for this particular opportunity. I have seen agents and brokers thrive in the worst of times over the last decade and a half as we hold on to these lessons.
By the way, if you do not have any such resources that speak to this market shift, it’s time to go back to school.
Dr. Lee Davenport is a real estate coach and consultant. Contact her at email@example.com.