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As the market continues to slow, many real estate agents are wondering how to cope with the return to a reality where posting record consecutive years will require more effort than putting a listing on the Multiple Listing Service (MLS).
While the next few years will be challenging, Philadelphia-based Keller Williams team leader Jim Roche and Terrence Murphy Companies founder Terrence Murphy said agents can still achieve immense success if they’re willing to switch. mindset and overcome the competition.
“This is no longer the market where you will launch something [the MLS] and set it and forget it, “Roche told the Connect Now virtual audience on Thursday.” There are people who are just riding the wave, and it won’t work. “
Change your mindset
Although analysts predict another two years of slowing home sales and falling selling prices, Roche said agents need to focus on the opportunities offered by a recession, primarily the ability to develop skills that will put them light years ahead of the competition when the market will recover.
“The biggest word[s] I’m really focused on opportunity and growth, “he said.” That starts from the top with the CEO or team leader. This is the person who is really promoting and bringing the energy and establishing the culture. “
Roche said leaders will need to help their agents identify opportunities to expand their skills, create a new niche, or find additional income streams that complement their existing business portfolio.
“We love the recession in the markets, not in the sense of seeing someone get hurt, but it gives me the opportunity to really walk away and separate myself as a leader from my competition,” he said.
Focus on the fundamentals
In addition to a change in attitude, Roche and Murphy said agents need to get back to basics to deliver excellent service, something they may have slowed down over the past couple of years as homes often sold with little effort.
“I’ll go back to my athletic background,” said Murphy, who spent several years in the NFL. “When the going gets tough, you rely on the fundamentals, whether you’re a golf or football player or a basketball player preparing to hit those free throws and have the winning shot on the line.”
He added: “As the stakes increase, you have to lean on the fundamentals.”
For both team leaders, the fundamentals include time blocking, lead generation, negotiation, and learning masterful contract analysis.
“I think we need to focus on reading the contracts. Let’s skip over, because there’s nothing sexy about that, right? “Murphy said.” But if you really understand your contracts, this will go to that competence, which will build trust. “
“Number two would freeze time,” Murphy added. “You must have real estate conversations. This market will not fall on your lap. You have to be proactive and you have to keep up. I think as real estate agents, we try to do too much, too fast and we run out. This is a marathon, not a sprint ”.
While Murphy is a contract and time lock fanatic, Roche said it’s all about helping his agents build a solid lead generation plan.
“Let’s go back to basics, baby,” he said excitedly. “You know, talking on the phone, standing in front of people and getting really direct; that kind of real estate style fighting [that’s] belly to belly and focused on understanding people “.
Understanding the basics isn’t enough: Roche said agents need to take a proactive approach to serving their current customers and finding new ones.
“You have to be able to have those difficult conversations, handle those objections, and be able to orient yourself and respond to the problems that arise,” he said. “As everyone has seen with COVID, the transaction became much more difficult and the best agents were the ones who were able to rotate, control and grow their market share.”
For Keller Williams’ team leader, becoming a proactive agent comes down to one thing primarily: accessing and leveraging insights.
“I think the people who do the best in tough markets and tough times have the knowledge,” he said. “We had our great team meeting on Wednesday and what we did was sit down and dig into the numbers.”
“I felt like my agents walked out of there with more confidence to be able to talk about anything with anyone at any time,” he added. “Understand the stats of your new building system, understand how much the markets of the day have changed in higher value condos. Understanding your numbers and being able to talk about them every single day: it will demonstrate how much more you invest in your business than the competition. “
Train, train, train
In addition to getting into the weeds with market data, Roche and Murphy said leaders need to create opportunities for their agents to collaborate and learn from each other.
“We are hyper-focused and are recovering [agent training] groups, “Roche said.” There are $ 30 million producers out there, and sometimes they don’t want to go in and re-read the sales agreement and write down the terms, but [our training sessions are] making him take a step back, evaluate the landscape and understand ‘Hey, are we also dealing with the same problems and how do we fight them together?’ “
For team leaders who don’t have the luxury of leading the lineup in person, Murphy, who has more than 20 teams in the US and Canada, said creating video and audio content is the way to go.
“I sat down and said, ‘I need to create a podcast, I need to create a place where people in my organization can go and get content,'” he explained. “I had to start leveraging myself and started courses to guide agents through the process of building their own business and building a team.”
Master your money
Finally, Murphy said agents need to get their personal and business finances in order.
“I have a heart for real estate agents just like I have a heart for athletes, right? We don’t get the credit we deserve. We work so hard; we sacrifice so much, “she said.” But I always look to the end and we have no exit strategy. We can’t get off this hamster wheel.
He added: “As the market changes, we will see many people who will be forced to leave the business because they have not created other streams of income.”
Email Marian McPherson