A listings slump will create all types of problems for agents and brokers with commissions and lead generation. If you are in a listings slowdown then it is time to consider the strategies that can move you ahead and out of the ‘hole’.
The property market works in cycles and has lag times; the only way you can combat that problem is to have a listing strategy that takes you through slumps and challenges with sales, leasing, and inquiries.
Before going too much further it is worth considering what your local property market is doing right now. An assessment of that would be based around available listings, time on market, trends in prices and rentals, together with the supply and demand for extra space. Look at the history of the market and the trends over time. Will the property market be experiencing an upturn soon that is expected to be sustained? Perhaps your local business community is experiencing ‘patches’ of activity around certain industry segments; understanding those facts will help your prospecting and new business efforts greatly.
Real Estate Strategy and Timing
The property market for real estate agents is largely based around strategy and timing. It directly follows that we really should keep a close eye on the trends. There are lead and lag times to sales and leasing activity; both are underpinned by the local economy and business sentiment in your town or city.
So how can you get out of a listings slump? Focus and effort will help you. Determination will get you on track.
There are some things that you can do to solve the problem:
- Look around your area for other agents listings both those that are on the market currently and those that have expired or been sold. In finding those listings you can talk to surrounding property owners to see if they want to compete. If that is the case you can be the alternative agent to take their property forward in the market.
- The good clients that you have served previously are likely to have a few properties in other locations. Stay close to your clients to help with larger and diverse property issues.
- Revisit your database and call up the people that you already know in locations and by category. Systematically work through them to see what help they may need now or in the future with property issues.
- Listings that are being marketed for sale or lease by owners are worth following through with. Some of those owners could be struggling in one way or another to get interest. Be careful when dealing with these owners as many of them have an inflated view of price or rent and will want to ‘stack’ the commission you charge on an already highly priced or rented property. Only work on these listings if the property is of interest and competitively priced.
- Determine the focus of the property market today. Is it a seller’s market? Is it a buyer’s market? The same questions should be raised on leasing with landlords and tenants. The answer to those simple questions will help you with cold calling dialogue and the gathering of market evidence.
Most ‘listing slumps’ are self-generated, perhaps due to lack of prospecting, poor cold calling, or too much focus on deals rather than listing stock. In our commercial property industry, we really do need to be careful on how we focus our efforts and time. Top agents in the market have achieved their results by working on the most important issues in a consistent way.