The early bird gets the worm. Many real estate professionals have opened up shop early this year, and there’s excitement building as open homes through January have been busy, signalling that home buyers are back!
Many of my clients have expressed that they, too, are excited about 2023 and have returned to their offices with renewed energy and enthusiasm.
Wanting to ensure that I gained a broader picture of how real estate professionals feel this summer, I reached out to several real estate coaching friends to ask for their insights and feedback.
This article will give you some renewed excitement toward your business (and helps you overcome any fears you may be facing). Remember, you are not alone. As business owners, we are all in the same boat – even me, my team and the coaches!
Where is the real estate market heading in 2023?
Caroline Bolderston shares;
“I always look to the past to gain insights for the future, and there is a distinct pattern that we know to be true. After every property boom, there is;
- A period of market contraction where buyers and sellers pull back, and prices decline and re-adjust.
- Followed (usually) by a period of sideways movement in market growth, and prices start stabilising.
- Finishing (usually) with a period of strength where demand picks up, and prices increase until we reach the peak again.
“I am confident this pattern will play out; we just can’t predict the time in each period.
“One thing I know for sure is that there is ALWAYS a market, transactions will ALWAYS take place, so it’s a matter of taking a higher share and staying sharp on your campaign processes to ensure that no matter what the real estate market conditions, you continue to transact.
“You can have your best year in a down market. I’ve seen it numerous times.”
Hayley Mitchell adds;
“Unlike sales agents, property managers and commercial agents had a challenging ride during the pandemic. Notably in 2020, when tenants were defaulting on rents, and leases were being broken. Property Managers and Asset Managers were working harder for no extra pay.
“We lost a lot of people from property management over the last three years, so we want to attract great talent back into the industry in 2023.”
How are buyers, sellers, tenants and investors behaving right now?
Home buyers and sellers are poles apart in property price expectations.
Jet Xavier shares;
“Market forces are making consumers nervous and stalling property transactions.
“The public is cautious about buying; many think the real estate market will go down further, and they should wait and buy then.
“Homeowners are feeling the interest rate pinch, and some are starting to get impacted by it. Many home sellers still believe they can get early to mid-2022 property prices, but they need to be more realistic.”
Josh Phegan adds;
“2023 will be a year filled with turbulence; interest rate rises, growing inflation, and new government policy will continue to shift buyer demand.
“Low housing stock levels will allow home prices to remain steady once homeowners adapt to the initial shock of the 2022 interest rate increases.”
Hayley Mitchell shares;
“Savvy property investors are re-entering the marketing whilst property prices are stable and rental rates are rising. Property investors are no longer impeded by the banks requiring principal payments on loans.
“There is much regulatory discussion, and the current government wants to make its mark. So, property managers have their work cut out, keeping abreast of the changes at a federal and state level.
“Tenants are finding it tough to secure properties, and there have been some concerns about silent auctions, but the regulators are clamping down on a few agencies that have tried this method of leasing.
“As an industry, we must advocate doing the right thing by both parties in the transaction: the landlords and the tenants.”
How are real estate professionals feeling?
Caroline Bolderston shares;
“Since starting my agent coaching sessions again in early Jan, the general vibe is acceptance and renewed determination. Most real estate agents realise that the current property market conditions might be the ‘new norm’ for some time, so they need to work within it to create opportunities.
“Many real estate professionals identified that they need to be less complacent and reignite some of their campaign processes and standards for service again. The wake-up call was losing some business and failing to clear all their stock at the end of 2022.
“Many real estate agents used the word ‘reset’ with me, which I love to hear as I genuinely believe every agent can have a cracking year this year if they ‘get out of their own way’ and stick to the business fundamentals.
“There has also been some renewed excitement as open homes through January were very busy – one client had over 100 groups through a new listing that he launched. A very positive sign!”
Jet Xavier adds;
“The real estate market will be tighter, but there is still a market. It’s ‘what you do about it, not how the market is’ that matters. Agents face more competition and thus have to raise the bar in their relationship-building, follow-up times, and overall professionalism.”
Josh Phegan agrees;
“Our best clients have listed well, with many launching campaigns on Boxing Day, kicking back into gear with opens throughout January and auction events at the end of the month; this strategy is driving strong leads for first-quarter transactions.
“Declining property prices and bottom-of-market cycles force agents to focus on their marketing and to integrate deeply with their relationships. Marketing in isolation won’t produce the results it did. Agents must double down on property marketing and bringing buyers from previous campaigns (i.e. relationships).
“Video will be the tool of choice to convey real estate brands and client experiences.”
Hayley Mitchell shares;
“We are seeing more specialist property management-only businesses popping up across the country. These businesses must rely on something other than sales relationships to secure landlord clientele. They do not have the luxury of finding their next landlord at rental home-opens.
“Great property managers or principals with property management divisions know that this is a time to reflect on the learnings from the last few years.
“Now is a great time to focus on ways to retain good people, and to put in place clear processes to make the role of property management streamlined and enjoyable.”
Melanie Hoole adds;
“From a marketing point of view, through 2021 and 2022, whilst the real estate market was running hot and prices were increasing, our clients saw fantastic results from lead campaigns that sought to keep homeowners informed on their rising home value.
“But once property prices turned, request an appraisal type lead campaigns plummeted. Finding out much equity you’ve gained is clearly more exciting than learning how much you’ve lost, even if it is only on paper until you make a transaction.”
What should property professionals do to set themselves up for success?
Jet Xavier shares;
“My clients focused on becoming better humans, which in turn will equal better business. The idea is to focus on getting YOU right, and everything else will follow.”
Josh Phegan recommends;
- Know your market: “Strong real estate market knowledge will allow more trusted advisor-style conversations.
- Analyse pricing data: “Pricing will be critical as buyers, sellers, and agents anticipate the new pricing levels.
- Stick to your core activities: “Great agents do 45-minute call sessions at the start of each day in order to book three appointments a day and create a recession-proof business.”
Caroline Bolderston adds;
- “Be enthusiastic and optimistic about market possibilities. Your mindset and the energy an agent brings to any conversation with a buyer or seller must give people the confidence to get involved.
- “It’s imperative to adopt the mentality of curiosity about people and their situations. Never assume to know what is happening for someone, as in life, ‘things change’. Be prepared to find those who have had a recent change in their situation and need help.
- “Speak to 100 property owners, and you will likely uncover four opportunities. The statistic that is a powerful one to remember is that, on average, 4% of the population is considering moving at any moment in time. Start the conversation with prospects, and then ensure you have ENOUGH conversations.
- “Build consistency with a perfect week: The number 1 reason agents struggle to fill their pipeline is that they have not built consistency into their business.”
How should property professionals promote themselves and keep their agency (or their name) front-of-mind with prospects?
Josh Phegan shares;
“Consumers turn to brands and people they trust. They look for confidence. So project confidence and be professional in your marketing.
“Great real estate agents will maximise existing relationships (past clients, market appraisals, home buyers, and landlords) to drive future opportunities.”
Caroline Bolderston recommends that you;
“Share the good news! There is always an upside to every market and situation. Real estate agents must find the truth in the good news and take that to their prospects in an empowered and proactive way.”
Hayley Mitchell agrees;
“It’s time to celebrate the successes we see in property management. The more we share the rewarding and fulfilling experiences of property managers, the more people we will attract to the real estate industry.
“Digital marketing has become a key component to promoting property management services, attracting landlords and growing a profitable rent roll.”
Jet Xavier suggests;
“Look at all digital avenues … go to where the eyes are!”
Melanie Hoole adds;
“Use digital marketing to surface the top 100 prospects you need to call right now. You can do this in the following ways;
- Add a scoring system to your marketing activities and track people in your database. Award them 1 point for opening an email, 5 points for clicking to read an email, 10 points for every page you track them visiting on your website. Prospects with the greatest score over the last week or month are the ones to call right now!
- Monitor people’s behaviour and cold-call them accordingly. Install a website pixel to track which of your contacts visit your ‘about’, ‘services’ or ‘contact us’ page (but have yet to get in touch). Or maybe they checked out your ‘sold listings’ or ‘leased properties’ to see what prices you are achieving. That’s the true power of digital marketing – reading a prospect’s mind through their online actions.
- Grow your contact list. Make sure you regularly export the contacts from your phone into your master contact list in your CRM. Make sure that list includes everyone you meet; past clients, market appraisals, buyers, landlords, buyers agents, conveyancers, and industry suppliers. These people are your biggest advocates. Don’t let them forget you exist. Export your list and upload it into your Meta, LinkedIn and Google advertising accounts. Professional marketers can get you in front of everyone in your database multiple times a month. No cold calling is required.
- Use digital marketing to be in many places at once. Print marketing is costly, and your hard-earned dollars go straight into the bin. Whereas digital marketing lives on forever, it’s searchable and reaches thousands (not hundreds) of people. Best of all, it works for you whilst you sleep. Never let good content or marketing go to waste … recycle, recycle, recycle!
- Tell stories about previous clients. People want to see that you have helped people in the exact same situation as them. They want to know that you have been there, done that and still wear the t-shirt. Expand on your testimonials, wrap the client’s feedback and review in detail about the particular case study, how the game played out and the ultimate ‘win’. Show them your experience through storytelling.
- Build trust through video marketing. Help people get to know like and yes (dare I say it) trust you. Trust and confidence in your abilities grow through experience dealing with you (or listening to your advice). Telling someone to trust you comes off as disingenuous. Give away free advice, provide market insights to the masses, offer practical tips and tricks, and answer frequently asked questions through video. You will be several steps ahead of your competition as your listing presentation would have already started … online!
Real estate professionals should run their own race
So, as you can see, there is nothing to fear. People still need to buy, sell and rent homes. They still need to buy, sell or lease business premises. And property investors are firmly back in play, looking for new opportunities.
Ignore the Chicken Little story that always plays out in the news media, telling everyone that the sky is falling in. Encourage residents in your neighbourhood to listen to YOU as the source of truth and to follow your updates for what property market movements are happening at a micro level.
You are the master of your destiny, and if you keep your head clear and work hard, following those all-important processes, you’ll nail 2023.
Remember, “repetition creates recognition”.
Here’s to a great year for everyone. Me, my team and the coaches included!
If you’d like help creating a marketing strategy that increases your visibility at a local level and creates warm leads for your real estate business, book a FREE 1-hour consultation with me, Melanie Hoole.