Is the recession coming? It sure doesn’t look like it and pseudo day-traders keep pretending like all is well in the stock market even as they try to hold onto their hat. But let’s face it, recessions happen and the ones who pay are Realtors. Especially since the Great Recession of 2008 is one that we all wish we could just forget. But that memory is not going anywhere and if anything , it’s an experience we would do well to remember for this next round.
Whether you get your news from Forbes Magazine or some random Twitter channel, the next recession is expected to either hit later this year or sometime in 2020 if it’s not here already. What this means for the housing market and real estate agents is that it’s no longer a matter of making it rich, it’s a matter of survival. So how does an agent survive a stalled housing market?
You keep your costs low and your commission splits even lower. The time for blowing cash on grand marketing ventures is gone. It’s now about cutting costs and targeting your audience with bullseye precision. This can be done two ways. One is to evaluate your broker. Make sure they are earning every slice of your commission. If they’re not, get rid of them and shop around for a more cost effective and nimble brokerage. We suggest and maybe we’re biased in this suggestion, but we suggest a virtual brokerage. Virtual brokerages are great options for the independent agent that already knows what they want.
The second biggest expense next to commission splits for a real estate agent is marketing. Marketing is a term that encompasses a lot of categories from print, radio/TV, websites, and social media promotion. In other words, it’s big and expensive. When times like recessions or slumps in the market happen, it’s important to evaluate what has worked for you and what were the circumstances of why something didn’t work in the past. Understand your audience and what’s important to them. Use that information and stack it with a solid marketing plan.
Whether you choose to spend your marketing budget on all print or choose to split the budget halfway on promoting social media and the other half on lead generation, stick to it. The biggest mistake Realtors make is that they quit too soon. The general rule for marketing is that you won’t see effects for anything you do for three months so it’s not a quick on and off thing.
Here at UNiQ Realty, we work with real estate agents by acting as a virtual brokerage to help them achieve their goals for success. Whether it’s to simply lower your E&O rate or to find the support you deserve, we work with you to make sure everything you need is at your fingertips.