It’s no secret that the market is slowing down in many areas. Between the increased cost of living and the rising price of energy bills, fears from those looking to get onto the property ladder (or move up it) are starting to affect many agents, as well. While some agents are considering curbing agency costs in an effort to save money, cutting down your marketing spending will actually have more negative repercussions than positive ones. The very best agents will thrive in a more difficult market with the right strategy and tools in place.
A common analogy used by many agents is the importance of ‘digging the well before you get thirsty’. Rather than waiting for your leads to run dry - and your well getting empty - actually upping your marketing efforts means your agency can weather the storm when things start getting a bit tough. It may seem counterintuitive to invest more right now, but ramping up your marketing (and adjusting your prospecting strategy to take into consideration everything that’s happening in the outside world) will ensure your agency continues to thrive in the months and years to come.
Adjust your focus
As mortgage rates increase and house price growth begins to slow, the cost of living crisis isn’t the only outside factor affecting homebuyers. In order to keep thriving in the upcoming months, it’s important for agents to not just continue prospecting, but to adjust their focus and narrow down their target reach. While there are more homeowners contemplating if now is the right time to join the market, there are still thousands of motivated sellers who want and need to move in the immediate future. It’s just knowing where to find them.
A great way to discover motivated sellers is by targeting certain groups with your prospecting efforts. For example, homeowners that have reduced their listing price from fear of the market slowing down will more likely switch agents if you can promise to help them get the maximum value for their home. Those whose sale has fallen through or who have been on the market for over eight weeks are also more inclined to consider changing agents to secure a quick sale.
Share positive ‘Sold’ messages
For off-market direct mail, 20:20s (or sold-in-your-area) letters and postcards can help you use the softening of the market to your advantage. Running with the idea that even though house sales are slowing down your agency is continuing to sell homes nearby, will help ease reluctant homeowners of their worries about joining the market, and quickly turn them into motivated sellers ready to list their property. Using intelligent tools powered by artificial intelligence, like Spectre, also means you can predict which homes will be most likely to come onto the market next - so you can add these addresses to your radar as well.
Use deadlines to your advantage
With the updated energy price cap coming into force on the 1st of October, many agents and homeowners now fear impending due dates - and their effects on the housing market. However, taking deadlines in your stride can actually help push valuations and instructions over the line, and in turn, multiply your leads. Letting homeowners know they ideally need to instruct now in order to have a chance of completion by Christmas will encourage them to sell their home with you. For agencies experienced in finding homes for first-time buyers, the upcoming end date for applications for the Help to Buy scheme on the 31st of October will also open up a wide pool of buyers looking for someone to help them get onto the property ladder.
Make the most of intelligent software
While ramping up your marketing spend is the best way to save money in the long run, there are certain ways to cut costs - and still see rewards. By using smart filters, automation and triggers offered by intelligent prospecting tools, you can quickly identify motivated and disgruntled sellers and save labour costs by automating (and targeting) your canvassing efforts.
As well as making the most of intelligent tools like Spectre to ramp up your prospecting and beat the market slump, free property platforms like Street Insights are also powerful assets to add to your prospecting toolkit. By generating impressive property reports full of local market knowledge, you can not only save labour costs by preparing for valuations in mere seconds, but you can increase your fee by charging for a more knowledgeable agent. The tracked reports available on Street Insights also make this platform a no-cost way to track and capture leads, before converting them into customers and increasing your convection rates and ROI even further.
While there’s no avoiding the fact that the next few months will be a rough ride ahead for many agents, the slowdown of the market doesn’t have to mean a slowdown in profits. Instead, by increasing your prospecting efforts and targeting motivated sellers, you can help new and existing clients weather the storm - and make sure your leads are still coming in hot.
