The End of an Era:
Real Estate Industry Prepares for Massive Downturn. Is Your Business Prepared?
“An economic slowdown is underway and the greatest recession risk to the real estate industry could result in 2.4 million less existing home sales in the next 12-24 months – which is what happened in the last recession in 2008.”
New concerns about a collapse in housing demand are prompting real estate agents to rethink their business priorities.
Demand for existing-home sales plunge as mortgage interest rates continue to rise – senior economists caution a “meaningful recovery is still a long way off.”
Real Estate Agents on Verge of Cliff…
Real estate agents…this may be the most important (and maybe painful) business story you have ever read. It is based on three simple facts:
- The average real estate agent will see a 37% or greater decline in their income in the next 24 months. Most real estate agents will see their business decline even more, and worse – hundreds of thousands of the current 3 million active licensed real estate agents will be out of business for good.
- The 80/20 rule “rules real estate.” It means that 80% of all homes sold every year are done by only 20% of agents. You don’t stand a chance if you’re not in the 20%. It’s mission-critical to learn how to maximize your success with the 80/20 Rule: Focus 80% of your efforts on the 20% of activities that yield the greatest results!
- The 3% rule is in effect – which states that only 3% of real estate consumers (buyers and sellers) are actively in the market to buy or sell at any given time. Savvy agents can use this rule to their advantage but only if the “message to market” is correct.
Add these three simple facts together and you’ve got a near-perfect real estate storm in the works.
Why Real Estate Agents Are at Risk of Going Broke And What You Can Do About It.
Let’s face it, the real estate business is tough (even in good markets!), super competitive and undergoing massive disruption.
In fact – hundreds of billions of dollars have been invested in the last decade to transform real estate, but in this case, “transformation” means the “PropTech Disruptors” want their share of the over $80 trillion dollars of commissions paid out every year.
Besides the prevailing market conditions, agents face competition from all sides – online search portals capturing all the leads and selling them back to you, Zillow becoming both a brokerage and mortgage company – taking an even bigger share of your commissions with referral fees, direct to consumer iBuyer platforms, discount brokerages, FSBO’s, and the list goes on and on!
And to matters worse – home sales have an extraordinarily long sales cycle, as homeowners typically stay in their homes for 8 years on average, and that number is creeping up every year.
It’s pretty bleak out there, to say the least!
Despite all of this, and saddest of all, the biggest reason most real estate agents fail, don’t grow, and drift aimlessly in the “sea of lost agents” is that they don’t have a business plan and strategy for growth.
That’s why only 2 out of every 10 agents make a “real” living selling real estate.
But there is some good news out there…
…for the agents who shift their priorities and change their strategy…
…giving them the opportunity to change their results.
Success Leaves Clues…But Only if You’re Paying Attention!
When asked about the “most important trait” they look for in an agent, prospective home sellers chose “professional reputation” more than any other trait.
So – if you want to sell more homes, the goal is simple:
When it comes time for residents to buy or sell real estate in your target community, you want to be positioned as the only logical choice.
You accomplish this with a deliberate and strategic focus on your…
…market, media, and message.
And best of all, when your marketing is focused on building your “professional reputation” in your local market you’ll soon have clients coming to you instead of you chasing them…
…because your “professional reputation” precedes you in your market.
It’s only when the market knows you by name, market position, and status that agents have a competitive advantage in their market.
Real Estate Agents Who Are Most Visible With Local Homeowners Out-Earn + Out-Perform the Competition.
Simple, yes. Easy, no.
Because if you want to “increase,” “grow,” or “accelerate,” anything, (listings, leads, sales, transactions, etc.) – you need a force multiplier.
A force multiplier is “a factor that dramatically increases the effectiveness of the force.”
It’s the secret science that we embedded in DIGS magazine when we launch over 12 years ago – leveraging a “stacked media” approach combined with “frequency of message to market” that’s allowed us to create an 8-figure media and marketing business in real estate.
And why thousands of agents have partnered with DIGS to secure their “20%” market position so they enjoy doing “80%” of the business…
…and get their “message to market” formula right so they can influence the market and magnetize their target audience…
…and use market downturns to their advantage to gain market share.
Agents planning to curtail marketing spending And “Sit This Market Out” will miss out on the biggest opportunity to gain market share in the last 15 years!
It’s decision time.
But before you do anything, consider this:
“There are three kinds of people in this world:
people who make it happen, people who watch what happens,
and people who wonder what happened.” Tommy Lasorda
The choice is yours!
If you want to take decisive action and “make it happen” – pay close attention to what we recommend that you do next:
- Partner with a company that has been in business for at least 10 years, with a proven track record, and who has built a creditable real estate brand themselves. Results matter!
- Make sure your marketing strategy includes a force multiplier and “stacked media” so that your “professional reputation” is amplified and omnipresent in your local market.
- Partner with a media company that focuses exclusively on the real estate space so that your messaging is on-point and your media content they create is relevant to your audience.
- Make sure your advertising is community focused and reaches local homeowners wherever they are (in-home, in the community, offline + online, on Streaming TV, etc.)
- Include a referral system that allows you to send personalized media to your database so that you can stay in touch with your past clients on an ongoing basis.
- Work with your partner company to create a monthly marketing plan and calendar so that you are consistent with your market outreach and building momentum for your business.
DIGS is hosting an online 90-Minute workshop for select agents who want to recession proof their business in 2023 and capitalize on today’s turbulent market conditions.
Sign-up for our “How to 2x Your Real Estate Business in 2023” workshop today!