No matter which part of Australia you’re in, there’s one thing that’s likely true: market conditions have changed. And as any experienced agent knows, change is inevitable. In fact, it’s often the only thing you can count on.
Some signs the market has changed are:
- Fewer properties are coming onto the market
- Properties are spending more time on the market
- Auction clearance rates are lower
- More circumspect buyers
- Fewer overseas investors
And if all of these things happen in addition to conservative credit conditions, then it’s easy to feel as though things are slipping out of your hands as an agent.
But it doesn’t need to be this way. You can still survive in a changing market, and here are four ways to help you do it:
Work Your Buyers
- Figure out how to follow up with the last years’ worth of prospective buyers and OFI attendees
- Make a manageable list of buyers using your CRM, and then dedicate three hours per day calling this group. Write down what people say and then use this info to create further follow up plans
- Send people accurate, relevant email alerts from your CRM.
- Contact “hot” buyers (those who want to buy something within three months) and “warm” buyers (those looking to purchase within six months) at least once a month.
- Help buyers understand that now is the time to buy; there’s less competition and vendors are more open to negotiation.
Serve Your Vendors
- Vendors are uncertain during a shifting market, so make sure you’re communicating with them constantly to educate them and keep them calm.
- But what vendors really want to hear is what buyers who walk through the door are saying. So, make sure to create and distribute a detailed vendor report regularly to keep your vendor apprised and motivated.
Build Your Rent Role
- Jump on every opportunity you have to add existing clients’ properties to your rent roll, as these will be your saving grace in an unstable and changing market.
- Have investment information available for purchasers, including rental appraisal and recent rents achieved for similar properties.
- Show some sort of proof that your property management company is the only one to work with.
Make Your Agency More Efficient
- What can you do to improve your business that also reduces costs?
- Perform an audit of your different systems and processes to see where you could be doing better. Are there tasks being done that could be automated? Is there technology that can help make you faster and more accurate? A good CRM is a great example, as it allows you to organise all the information you have on your customers into one organised database.
The key to surviving a changing real estate market is to commit to a considered plan. It’s time to put in the work, and then it’s time to communicate, communicate, communicate!