Your Midyear Checkup

A midyear check-up to keep your sales business healthy and strong!

How’s Business?

That question should be on everyone’s mind right now. Many current business plans were based on data and assumptions from months ago, and could probably use a little freshening up. So let’s review three things every real estate pro should be doing right now to get ready for the second half of the year.

1. Check your Playbook

You’ve probably heard predictions of significant pitfalls for REALTORS in the next few months. The National Association of REALTORS expects membership to drop 15% in 2023; some data shows, 60,000 REALTORS have already left this year.

We don’t like to see any REALTORS leaving (unless it’s for a well-deserved vacation), so the prospect of another 180,000 salespeople exiting is a call to action. Time to update plans, fast! Strategies built on systems and habits for the hot market need to go. If you want more inventory, focus 101% on that. Pause, review and anticipate what you need to do for the rest of the year because, as the 20th century business guru Peter Drucker once said:

There’s nothing more useless than doing efficiently, that which should not be done at all!

New conditions need new playbooks

Play to current conditions. While every market is “different” it’s fairly clear that many markets in the US and Canada show a lot of resilience in two key areas:

1. We remain in a sellers market (even if price growth has slowed).

2. We need more inventory to sell. Everywhere.

The Unicorns have Left the Building

So what do we need when there’s a sellers-market with significant listing scarcity? Let’s start with what we don’t need:

1. We don't need more buyers.

2. We don’t need to wait for the Fed to tip the economy into a buyers’ market.

So, what should we do?

Only One Thing Adds Inventory: Listing Appointments

Which means many agents need to change gears fast - before they burn out. Not only to create growth, but make the best use of tightening marketing budgets. If your current strategy is tilted towards buyers, you’re headed towards a cliff.

In every market, buyer-centric agents are dependent upon listing agents. In a tight sellers-market, they’re even more at risk. This is why buyer-centric agents usually learn (just in time) to focus on taking listings, before they burn out from running around with buyers all day — without pay.

Even in the best of times.

Calculate Your Ratio

You can analyze the strength of your playbook with three pieces of data. First, the number of agents in your local market. Second, the percentage of agents who are buyer centric. Third, the percent of your own recent efforts that have been seller-sided or buyer-sided.

Do the math. (I go over the full calculations in the video below)

Multiply the total number of agents in your market by the percent of agents you think are buyer-centric. Take an honest guess: 60%? 70? 80% That’s the number of agents you are competing against for the same chance at a sale, if you’re heavily buyer-centric.

Alternately, multiply the total number of agents by the remaining percent of agents who are focused on getting listings. 10%? 20%? That’s the total number of agents you are competing against for new inventory, if you’re working a seller-centric strategy.

In the same market.

But wait, there’s more

A seller usually purchases a home in the same market; let’s say, at least half of the time. So every seller is also a paying buyer (they paid you already for their sale). That’s two deals per client. Most stand-alone buyers are done in one.

A listing lets you go on vacation. Someone will gladly watch your listings for a referral, if a deal comes together. Nobody wants to drive your buyers around for a week while you’re at the beach.

A listing is also a source of personal marketing: Online, neighborhood signs, open houses. People see you doing business. A buyer gives you…. zero marketing visibility.

That’s why buyer-centric business strategies are, in a sellers’ market, a formula for exhaustion.

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2. Talk to the right people

Sellers haven’t left the planet. Nor are they stuck in low-interest rate mortgages. Millions have sold since rates rose (more than 13,000 per day, in fact). Many had interest rates lower than they could get today. Or no mortgage at all. They sold anyway. How dare they put an end to the myth that people place the mortgage first when it comes to moving.

They don’t. The top 10 reasons people move has remained qualitative not quantitative for decades. Life moves on: Marriages, divorces, babies, off-to-college, retirements, job relocations, pandemics, work-from-anywhere and more. Affordability is second, maybe tenth on the list. We watch buyers overbuy their budgets all the time. And decades of data describe people moving in far, far worse interest-rate conditions than we enjoy today.

Don’t worry. The pundits will catch on. In the meantime, don’t let them psych you out.

Or your potential sellers.

Hello, Sellers

Your sellers need to hear from you. They need your advice, data, and encouragement. But where are they? They are out there. Every listing in the market today came from somewhere. That’s where you have to point out your conversations.

Here are five sources of sellers:

1. Your sphere of influence

2. Your Past clients

3. Expired listings in the last 6-12 months

4. For Sale by Owners in every market

5. Landlords / Investors

(I have listed another fifteen seller sources in the video below.)

Watch listing-centric colleagues to see where they are finding sellers. Ask your manager: they have plenty of ideas. Take a listing class for a refresher. Ask people online. Sellers won’t fall into your lap, but will answer your phone/text/email/DM/door-knock/mail. If you prospect in the right places.

3. Share a Strong(er) Story

What’s your home worth?
Should you sell today?
How is your local market doing?

Blah. Blah. Blah.

When it comes to prospecting, there’s only one rule:

Never forget you’re trying to make a sale. - David Ogilvy

Sellers don’t need academic arguments right now. They need confident direction and support. That time is now for you to show up and say, “I understand your concerns. I have your back. We’re helping hundreds of people sell every month at our company. Let’s make it happen for you!”

Get Bold about Success

Your neighbor did it; now, you.
Get multiple offers.
We moved the Smiths in 27 days.
Your friends are working from anywhere.
Lots of people want your home - today.

That’s what you want sellers to do. See the possibilities. Act. Not overthink it, hesitate, and feel powerless.

A strong headline does 80% of the work.

Decades ago, David Ogilvy, the master of advertising noted that five times as many people will read the headline as will read the copy of an ad. So don’t overdo your message. But don’t under-do it either.

Pick ONE headline and stick to it. Like a broken record. Don’t worry - nobody noticed the first time. Or second, or third. Over time, something will happen. It always does. And you’ll be there to fill in the “rest” of the story when notice it.

The story about what? Not moving. Not buying.

Selling!

Healthy, Wealthy and Wise

Last week, I received three text messages. The first was my dentist: Time for my six-month cleaning. The second was my car dealer: Time for the six-month oil change. The third was my accountant: Time for midyear tax planning.

They know what you know. If you want to remain healthy, then you need to keep things running smoothly. Make adjustments. Focus your efforts. Strengthen your message.

Most of all, make sure that the next six months become your best six months.
Not because the market will suddenly change direction.

But because YOU did!

Upgraded subscribers: Enjoy more info on seller sources, calculation example and additional marketing resources below. 👇👇👇👇