Let's talk shift!
The bubble is bursting. The bottom is dropping out. The sky is falling.
Alarmist language doesn't help anyone… especially when it comes to real estate. And especially when it's not true!
Let's look at the most recent numbers from TREB - home prices are up 2.6% over the same time last year. Despite what a lot of people are saying, that is still growth. That's reasonable, healthy growth. Sure it's not the same kind of explosive, surprising 'thirty percent year over year' growth that we've been seeing recently… but it's healthy.
And home sales area down over last year. But it would have been hard to top last September's explosive home sales numbers.
But there is no doubt that the Toronto Real Estate Market we've gotten to know over the last few years is changing. It's a shift… and we should welcome it!
The kind of preparation you can do to ready yourself for a shift is the kind of work that can set you up for continued success to last a long time.
With that in mind, we've put together five critical action items agents should do now to pave the way for not just a profitable year, but a profitable career.
When a market shifts, there is only one thing you can do: SHIFT WITH IT.
Action 1 - Find Your Profit Through Expense Management
Now is the time to lower your expenses and make every dollar count. “To generate revenue, you generate leads, but to make a profit, you manage expenses,” says Gary Keller.
If you don't already, adopt the following behaviours:
- Maintain a monthly budget that matches your shifting revenue.
- Re-margin your personal expenses so that your business and personal life live within their means.
Action 2 - Do More with Less Through Leverage
As you manage your expenses and make necessary cuts, you will need to get creative to do more with less and make every person on your team count. The same way that a rainy day makes you pick up that book, or watch that show you've been meaning to watch, a shift forces you into actions you might have been putting off. This is a gift of the shift.
Follow these guidelines to help get your entire team in shift mode:
- Be visible and communicate to set the tone.
- Ramp up your training to upgrade everyone's skills.
- Re-tool your systems for efficiency and focus.
- Increase your recruiting to excellent personnel.
Action 3 - Lead Generate to Find the Motivated
The race is on to find the ready, willing and able clients to buy, because in a shift, there is less business to go around. A shift presents an opportunity to find the truly motivated, but you need to make every activity count.
No matter what is going on in the market, there are always people looking to buy and sell. While the market may change, the reasons people buy homes don’t, so find those motivated buyers!
Action 4 - Improve Lead Conversion to Get to the Table
Good leads are great, but leads that become appointments with motivated people are the only leads that matter in a shift. Make sure you take the time and do the activities to make every lead count. It's not enough to get someone's email or 'have a chat.' If you've got a motivated client, get into conversation immediately.
Action 5 - Leverage Your Market Center / ALL HANDS ON DECK
It’s time for all hands on deck because, as we know, no one succeeds alone. Your market centre provides you with an entire team at your disposal. Find out what services they might offer that you're not taking advantage of.
- Share timely information.
- Take advantage of training on key concepts.
- Take advantage of all technology, marketing and personnel services on offer.
- Partner recruiting with the team leader and other associates.
These steps are the key concepts that will ensure that GREAT agents survive no matter what the market is doing.
And if you want more information about the other 7 steps in the book SHIFT!, or if you'd like to chat with our team leader about more ways to insulate your business against a market shift, call or email us today!