Our latest market report revealed price reductions in the UK have surged by 6% compared to Q1 2023 and a staggering 115% compared to 2022. Estate agents are facing mounting challenges in gaining new instructions and increasing market share.
A high-reduction market can create opportunities for agents to win second instructions, with over 50% of vendors changing agents before concluding their property sale.
Wary of declining property values and prolonged time on the market, vendors are being more careful than ever. They seek reassurance, expertise, and a tangible reason to trust an agent with their most valuable asset. This is where direct mail campaigns step in as a strategic weapon, offering estate agents a unique opportunity to not only survive, but thrive.
What do increased reductions mean for agents?
The rise in reductions could mean several things, often attributed to uncertainties in the lending market and ongoing high mortgage rates, meaning vendors are having to adjust their prices to meet buyer affordability.
There are also potentially lingering unrealistic price expectations from the house price inflations felt during and post-pandemic in 2021-2022. Vendors have seen their local area pricing increase during this period and want to achieve similar results as their former neighbours.
How can estate agents maximise this opportunity to gain new listings?
Direct mail campaigns offer a distinct advantage in winning instructions by providing a tangible, personalised touchpoint.
Unlike email or online ads, which can easily be overlooked or dismissed, targeted direct mail campaigns command attention and leave lasting impressions. However, the key to success lies in crafting compelling direct mail messaging that resonates with vendors and differentiate an agent from the competition.
Using prospecting tools, agents can enhance their current prospecting strategies and increase instructions using a number of data fields to create hyper-targeted campaigns to not only reduce costs, but also increase market share.
Statistic-led messaging
When vendors have pulled out of the market, the best and most effective way to encourage them back onto the market is leading with statistics and positioning your agency as the experts to trust to tackle/navigate the local market conditions.
But what should you include?
In our recent blog about withdrawals, we covered statistic-led messaging and why it's so important for your agency to be seen as a leader in the market.
The same applies for reductions.
Vendors who have had to reduce are likely on their way to becoming, or are already unhappy, with their current agent. This gives you an opportunity to capitalise on their concerns,, and switch to an agent who is knowledgeable with their finger on the pulse of the local market, including hooks such as:
- “Did you know you're 34% more likely to sell if you switch agents after 8 weeks than if you reduce your price? You’ll also achieve a 12% higher price on average too!”
- “In Q1 2024 (make relevant to year and quarter sending in) we sold X of our properties, achieving asking price or above for % of those properties”
- “On average, we sell X% of our properties within 12 weeks”
- “We achieve average X% of original asking price for properties”
Nurture vendors
Such headlines grab vendor attention as they speak to their specific concerns or frustrations.
However, if vendors are still hesitant to return to market, you still have other tricks up your sleeve to keep you top of mind, when they do consider returning.
Agents could leverage QR codes placed on marketing materials. These QR codes could lead vendors to a dedicated landing page brimming with valuable local market insights.
From recent sales data to pricing trends and neighbourhood developments, vendors will feel like they’re getting the inside scoop on the local market and set your agency apart from the competition.
But why stop there? Personalised property reports add another layer of sophistication to your marketing. These bespoke reports are tailored to the vendor's property, offering a comprehensive analysis of market value, market demand, and strategic pricing suggestions.
It's not just about information—it's about demonstrating a commitment to understanding their unique needs and providing tailored solutions. By incorporating different marketing tactics, you're not only showcasing your agency’s professionalism but also building trust and rapport with cautious vendors.
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OK, You’ve sent direct mail campaigns but what next?
The personal touch
If you see vendors engaging with your prospecting, then get in contact with them, spend time finding out why they withdrew from the market and use tools like our market report, other industry reports or your own data to speak expertly about the market to validate or educate them on any concerns they may have with re-listing in current market conditions.
By leveraging direct mail campaigns to target withdrawn properties using the techniques above, agencies can maximise on other agents' missed opportunities and cement their positions as trusted local partners, driving growth and expanding their market share. .
Want to see how easy all of this is to do with Spectre?
Spectre’s suite of marketing tools has everything you need to win instructions and grow your agency. Get in contact with one of our representatives and we will arrange a demo of Spectre for you.
