Mark Cipolletti Knows How to Market His Business
Bulletproofing Your Business: Being a Real Estate Agent During a Recession or Bad Market
Updated August 9, 2023
As a real estate agent, your job depends a lot on the balance of supply and demand as well as the state of the economy. Because these both fluctuate regularly, being a real estate agent isn’t always the most stable of jobs, but it doesn’t mean you are in big trouble when the economy or the market takes a nosedive. Learn how you can bulletproof your business so you can find success no matter the circumstances.
Is Being a Real Estate Agent Recessionproof?
Some people argue that being a real estate agent is recessionproof because people will always sell and buy homes regardless of the state of the economy. While this may be true, a recession affects the real estate industry in various ways and can significantly impact an agent’s business.
You determine your own salary for the year based on the number of deals you do as well as the size of those deals. During a recession, agents may be doing fewer deals or seeing less in commission because house prices drop. As a result, some agents may see a significant decrease in their annual earnings during a recession or need to work harder to earn the same amount. In the end, being a real estate agent may be recessionproof because there will always be a need for this service, but being a successful one may be a lot harder.
How Does the Market Impact Your Business
Just like the economy, the state of the market can also significantly affect an agent’s success. The real estate market is a delicate balance of supply and demand that is also impacted by other factors like interest rates, house prices, government policies, and more. Together these conditions can create “good” or “bad” markets depending on who you are.
Some agents may struggle during a buyer’s market when houses can sit on the market for weeks or even months at a time because there is a surplus in houses being sold compared to people looking to buy. This slow turnaround time can dig into the number of deals an agent makes and consequently, their annual income.
The 2023 market is a mix of high interest rates, low inventory, and a slowdown in new construction. While we are still in a seller’s market, it has cooled off significantly from the peak of the pandemic. Because of this, some agents may be seeing a decrease in their income compared to the last few years since homes are taking longer to sell or selling for a lower price. If trends continue in this direction, agents may feel even more of these effects.
How To Bulletproof Your Real Estate Business During a Recession or Bad Market
With a teetering economy and a seller’s market that is slowing down, being a real estate agent may feel like an uphill battle at times. Although the circumstances might not be ideal, it doesn’t mean you can’t be wildly successful. The best real estate agents make money during a recession or bad market because they are willing to put in the extra work and adapt.
If you are currently struggling, that is okay. With the right tools and approach, any agent can learn how to make money in real estate regardless of the circumstances. Follow these tips on being a real estate agent during a recession, bad market, or other tough situation.
Market Yourself
If you want to make money in real estate during a recession or bad market, you need to make sure your marketing strategy is working. Think of marketing your business as an investment in your future. If you are struggling, you may not have a big marketing budget, but that is okay. Your marketing strategy doesn’t have to cost a lot of money. Work on building your brand or growing your social media presence. If something is working well, see how you can capitalize on it more.
If something is not seeing great results, it is likely time to pivot. Those tactics that worked well in a booming economy may not have the same effect during a recession. Now is the time to get creative. Our real estate marketing toolkit may be able to help you realize some new ideas.
Choose the Right Brokerage
Not all brokerages are the same, and the one you work with could have a big impact on your success. While once sufficient, the firm you are currently with may no longer be suiting your needs in a recession or bad market. Consider finding a new brokerage firm. Besides looking at commission rates and account fees, you should also consider their other services and perks that could be especially beneficial during tough times.
A concierge service (like us) is one such perk from a brokerage firm that can help you win listings as well as sell houses for a higher price to boost your commission.
Search for New Opportunities
Being a real estate agent during a recession or bad market means being willing to adapt. When the market is tight, it may be time to look for new opportunities to expand your business’s reach. If your local market starts to cool, the same may not be true of nearby markets. Expanding your service area could lead to both short- and long-term gains.
You should also look into reaching a new audience. Look outside your normal price ranges for new clients. Additionally, you may want to consider targeting a niche audience that you may not currently do a lot of business with. Getting related designations and certifications can help you establish yourself as an expert for that audience and get you more business.
With Curbio, we make home updates more accessible for more people so you can increase your reach.
Nurture Your Relationships
Any real estate agent worth their salt will tell you that relationships drive this industry. Working in real estate in a recession or bad market means these relationships become even more important. Nurturing long-lasting relationships is the way to foster your referral business, and your referrals are likely to produce the best source of revenue for your business, especially when times get tough.
Remember during uncertain times to take a person-first approach to your clients. You’re also living in the same inflation/interest rates/recession/layoffs world as them. Leading with compassion will help keep your connections authentic and consequently be more beneficial for your business.
At Curbio, we are a new relationship worth cultivating. Our contractors are experienced and vetted so you do not have to spend the time and energy finding trusted contractors on your own and nurturing those relationships.
Go Above and Beyond
A big part of being successful in real estate is getting referrals. Especially when the market is tough, you will want to go the extra mile. If you only do an okay job, you are much less likely to be recommended. Instead, take a few extra moments to make sure your clients are satisfied.
At Curbio, our turnkey approach to home improvement makes going the extra mile a little easier. We take project management off your plate and streamline the entire home improvement process so you can focus on making sure your clients are happy.
Set Yourself Apart
Being a real estate agent during a recession or bad market may not be your only problem. In recent years, the number of agents has grown significantly making it harder to stand out against the competition. Especially if you are newer to the industry, you may not have a large referral base to fall back on. The best way to stand out regardless of the circumstances is to offer something unique to your clients.
The Simplest Way to Bulletproof Your Real Estate Business
With the market now teetering, we want to help. As the agent’s pay-at-closing general contractor, our services help agents like you bulletproof your business regardless of the circumstances. We not only make pre-sale updates more accessible for all of your listings but also take away the hassle traditionally associated with home improvement. You and your clients can rest easy knowing that there is no money due until closing and we will be there to manage the project from start to finish. To get started, try a free home improvement estimate for your listings.
Sources:
- Curbio (2022). Preparing to Sell: 2022 Home Improvement Report
