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What should real estate agents do in a market downturn?

It's all over the news; we're in a real estate market downturn, or "softening" depending on what you want to call it.

The good news, according to this Reuters story by David Lawder (at the time of this writing), is that we've only "softened" to January 2004 levels. This was still in the midst of a good market, if you recall. One broker friend said to me recently, "Yes, it's cooled, but it's cooled to 98 degrees." By the time you read this, perhaps it's cooled to 95 degrees, or maybe even 90 degrees in your market.

Nevertheless, it's wise to take steps to ensure that you not only survive, but thrive in a cooling market. There are still plenty of home buyers and sellers out there, it will just take a little more work to find them and match them up.

Start preparing now to stay ahead of your competition

In any economic shift, there are those who are perceptive and start to make adjustments early, and those who refuse to acknowledge the changes underway until it's too late. Although we remain in a decent market, those who take steps early to adjust for changing real estate market conditions will be rewarded by steady sales.

A cooling market is actually when true professionals really shine. During a heated market, customers are more tolerant of agents who have unprofessional habits or websites that are less than informative. They need to get that hot property before the next buyer comes along. But as the market cools, every party in the sales process has to work harder to earn and keep the trust and the business of the other parties.

Buyers become more skeptical and demanding. Sellers become more nervous that their buyers will walk out on the transaction. Agents have to work a little harder to earn the trust of sellers wanting to get the best price for their properties. It takes a great deal of trust to sign a contract listing your property. The agent will be rewarded who works to build a relationship with a potential client from the very first click on the agent's website.

Real estate agents who recognize early the approaching slowdown will benefit the most. In fact, there is a niche that can be carved out by agents who perform well in these types of markets.

Trim your (unnecessary) expenses

This may seem self-evident, but it's worth taking seriously. During times when sales are coming easily and quickly, it is easy to accrue expenses that look unnecessary or even extravagant in hindsight.

Review your monthly overhead, advertising, and other marketing expenses. Open up a spreadsheet, make a list, and start filling in numbers. Just don't get so bogged down in details that you don't accomplish your goal of assessing your expenses. Don't let perfection become the enemy of completion!

Chances are good that you will find a lot of fluff that has built up over the years. Get rid of it! Streamline and focus on what works.

Look for measurable results from your marketing initiatives

How do you focus on what works if you don't know what works? The issue of accountability and measurability is a huge factor in the growth of online forms of marketing. While companies used to look at the online media with suspicion in this regard, the increase in measurability for online marketing has measurably increased the value of the medium.

Are you able to measure any of your results from your marketing efforts? Is your website bringing in leads, and if it is, what can be done to boost its efficiency? If you don't think it's doing well enough, now's the time to get started fixing it, before other agents get a step ahead of you.

In a market that is no longer over-heated, the stakes are higher than they were before. Leads will start going to your competitors if you don't have a website that performs well.

You might also consider pay per click advertising programs where you pay for each click (visitor) to your website. While many are afraid to try this, those who do have discovered a incredibly powerful way to generate leads for their real estate business. You have absolute control over how much you spend, and best of all, it is fully accountable. You can measure your return on investment (ROI) and make adjustments as necessary to keep the leads flowing.

Use the cooling period to invest in your website

Use this period of cooling home sales to invest in your website and other marketing infrastructure. This may seem counterintuitive at first, but it's not. As sales slow, competition among agents will obviously grow. There are fewer sales and the same amount of agents working to close them. So investing in your website is an investment in what could be your most powerful sales channel.

When big corporations cut back during periods of economic slowdown, they rarely cut their sales staff. They are the last to go, because they are the ones producing revenue for the company.

Let us build a website for you that produces leads

You need to consider your website to be your top sales channel. If you invest in it and keep it running smoothly, it will keep bringing in the sales for you. During a slowdown, that's exactly what will keep your real estate business profitable.

I specialize in producing websites that not only look good, but are designed to pay for themselves. I want you to be able to see and measure the value in what I do. I'd love the opportunity to talk to you about your website plans, so please give me a call @ (208) 249-8893.

Need a website or some web marketing help? Please fill out this form, and I'll get in touch with you to discuss your needs. First Last Company Name Street Address City State Zip E-mail Phone Type of Business Comments or Questions? I was referred by Timeframe for project = Required

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